(40 ILCS 5/Art. 1 heading) ARTICLE 1.
GENERAL PROVISIONS:
SHORT TITLE, EFFECT OF CODE AND OTHER PROVISIONS
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(40 ILCS 5/1-101) (from Ch. 108 1/2, par. 1-101)
Sec. 1-101.
Short title.
This Code shall be known and may be cited as the Illinois Pension Code.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/1-101.1) (from Ch. 108 1/2, par. 1-101.1)
Sec. 1-101.1.
Definitions.
For purposes of this Article, unless the context
otherwise requires, the words defined in the Sections following this Section
and preceding Section 1-102 shall have meanings given in those Sections.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-101.2)
Sec. 1-101.2. Fiduciary. A person is a "fiduciary" with respect to a
pension fund or retirement system established under this Code to the extent
that the person:
(1) exercises any discretionary authority or | ||
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(2) renders investment advice or renders advice on | ||
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(3) has any discretionary authority or discretionary | ||
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(Source: P.A. 96-6, eff. 4-3-09.)
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(40 ILCS 5/1-101.3)
Sec. 1-101.3.
Party in interest.
A person is a "party in interest" with
respect to a pension fund or retirement system established under this Code if
the person is:
(1) a fiduciary, counsel, or employee of the pension | ||
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(2) a person providing services to the pension fund | ||
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(3) an employer, any of whose employees are covered | ||
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(4) an employee organization, any members of which | ||
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(5) an employee, officer, or director (or an | ||
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(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-101.4)
Sec. 1-101.4.
Investment adviser.
A person is an "investment adviser",
"investment advisor", or "investment manager" with respect to a pension fund or
retirement system established under this Code if the person:
(1) is a fiduciary appointed by the board of trustees | ||
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(2) has the power to manage, acquire, or dispose of | ||
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(3) has acknowledged in writing that he or she is a | ||
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(4) is at least one of the following: (i) registered | ||
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(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-101.5)
Sec. 1-101.5. Consultant. "Consultant" means any person or entity retained or employed by the board of a retirement system, pension fund, or investment board to make recommendations in developing an investment strategy, assist with finding appropriate investment advisers, or monitor the board's investments. "Consultant" does not include non-investment related professionals or professionals offering services that are not directly related to the investment of assets, such as legal counsel, actuary, proxy-voting services, services used to track compliance with legal standards, and investment fund of funds where the board has no direct contractual relationship with the investment advisers or partnerships. "Investment adviser" has the meaning ascribed to it in Section 1-101.4.
(Source: P.A. 96-6, eff. 4-3-09.) |
(40 ILCS 5/1-101.6) Sec. 1-101.6. Transferor pension fund. "Transferor pension fund" means any pension fund established pursuant to Article 3 or 4 of this Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/1-102) (from Ch. 108 1/2, par. 1-102)
Sec. 1-102.
Continuation of prior statutes.
The provisions of this Code insofar as they are the same or
substantially the same as those of any prior statute, shall be construed as
a continuation of such prior statute and not as a new enactment.
If in any other statute reference is made to an Act of the General
Assembly, or a Section of such an Act, which is continued in this Code,
such reference shall be held to refer to the Act or Section thereof so
continued in this Code.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/1-103) (from Ch. 108 1/2, par. 1-103)
Sec. 1-103.
Effect of headings.
Article, Division and Section headings contained herein shall not be
deemed to govern, limit, modify or in any manner affect the scope, meaning
or intent of the provisions of any Article, Division or Section hereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/1-103.1) (from Ch. 108 1/2, par. 1-103.1)
Sec. 1-103.1.
Application of amendments.
Amendments to this Code which have been or may be enacted shall be
applicable only to persons who, on or after the effective date thereof, are
in service as an employee under the retirement system or pension fund
covered by the Article which is amended, unless the amendatory Act
specifies otherwise.
(Source: P.A. 77-1415.)
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(40 ILCS 5/1-103.2) (from Ch. 108 1/2, par. 1-103.2)
Sec. 1-103.2.
The amendatory provisions of this amendatory Act of 1987
which provide for benefit increases effective July 1, 1987 or January 1,
1988 are intended to be retroactive to the dates specified therein,
notwithstanding the provisions of Section 1-103.1.
(Source: P.A. 85-941.)
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(40 ILCS 5/1-103.3)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 1-103.3. Application of 1994 amendment; funding standard.
(a) The provisions of Public Act 88-593 that change the method of
calculating, certifying, and paying the required State contributions to the
retirement systems established under Articles 2, 14, 15, 16, and 18 shall
first apply to the State contributions required for State fiscal year 1996.
(b) (Blank).
(c) Every 5 years, beginning in 1999, the Commission on Government Forecasting and Accountability, in consultation with the affected retirement systems and the
Governor's Office of Management and Budget (formerly
Bureau
of the Budget), shall consider and determine whether the funding goals
adopted in Articles 2, 14, 15, 16, and 18 of this Code continue to represent appropriate funding goals for
those retirement systems, and it shall report its findings
and recommendations on this subject to the Governor and the General Assembly.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 1-103.3. Application of 1994 amendment; funding standard.
(a) The provisions of this amendatory Act of 1994 that change the method of
calculating, certifying, and paying the required State contributions to the
retirement systems established under Articles 2, 14, 15, 16, and 18 shall
first apply to the State contributions required for State fiscal year 1996.
(b) The General Assembly declares that a funding ratio (the ratio of a
retirement system's total assets to its total actuarial liabilities) of 90% is
an appropriate goal for State-funded retirement systems in Illinois, and it
finds that a funding ratio of 90% is now the generally-recognized norm
throughout the nation for public employee retirement systems that are
considered to be financially secure and funded in an appropriate and
responsible manner.
(c) Every 5 years, beginning in 1999, the Commission on Government Forecasting and Accountability, in consultation with the affected retirement systems and the
Governor's Office of Management and Budget (formerly
Bureau
of the Budget), shall consider and determine whether the 90% funding ratio
adopted in subsection (b) continues to represent an appropriate goal for
State-funded retirement systems in Illinois, and it shall report its findings
and recommendations on this subject to the Governor and the General Assembly.
(Source: P.A. 93-1067, eff. 1-15-05.)
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(40 ILCS 5/1-104) (from Ch. 108 1/2, par. 1-104)
Sec. 1-104.
Cross references.
Where, in this Code, reference is made to a Section, Division or Article
by its number and no Act is specified, the reference is to the
correspondingly numbered Section, Division or Article of this Code. Where
reference is made to "this Article" or "this Division" or "this Section"
and no Act is specified, the reference is to the Article, Division or
Section of this Code in which the reference appears. If any Section,
Division or Article of this Code is hereafter amended, the reference shall
thereafter be treated and considered as a reference to the Section,
Division or Article as so amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/1-104.1) (from Ch. 108 1/2, par. 1-104.1)
Sec. 1-104.1.
Gender.
Words or phrases as used in this Code that import the masculine gender
shall be construed to import also the feminine gender, unless such
construction would be inconsistent with the manifest intention of the
context.
(Source: P.A. 78-1129.)
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(40 ILCS 5/1-104.2) (from Ch. 108 1/2, par. 1-104.2)
Sec. 1-104.2. Beginning January 1, 1986, children not conceived in
lawful wedlock shall be entitled to the same benefits as other children,
and no child's or survivor's benefit shall be disallowed because of the fact that the child was born out of wedlock; however, in cases where the father is the
employee
parent, paternity must first be established. Paternity may be
established by any one of the following means: (1) acknowledgment by the
father, or (2) adjudication before or after the death of the father, or (3)
any other means acceptable to the board of trustees of the pension fund or
retirement system.
(Source: P.A. 94-229, eff. 1-1-06.)
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(40 ILCS 5/1-104.3)
Sec. 1-104.3. Adopted children. Notwithstanding any other provision of this Code to the contrary, beginning on the effective date of this amendatory Act of the 95th General Assembly, legally adopted children shall be entitled to the same benefits as other children, and no child's or survivor's benefit shall be disallowed because the child is an adopted child. The provisions of this Section apply without regard to whether the employee or member was in service on or after the date of the adoption of the child.
(Source: P.A. 95-279, eff. 1-1-08.) |
(40 ILCS 5/1-105) (from Ch. 108 1/2, par. 1-105)
Sec. 1-105.
Partial invalidity.
The invalidity of any provision of this Code shall not affect the
validity of the remainder of this Code.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/1-106) (from Ch. 108 1/2, par. 1-106)
Sec. 1-106. Payment of distribution other than direct.
(a) The board of trustees of any retirement fund or system operating
under this Code may, at the written direction and request of any annuitant,
solely as an accommodation to the annuitant, pay the annuity
due the annuitant to a bank, savings and loan association,
or any other financial institution insured by an agency of the federal
government, for deposit to the account of the annuitant, or to a bank,
savings and loan association, or trust company for deposit in a trust
established by the annuitant for his or her benefit with that bank, savings and
loan association, or trust company. The annuitant may withdraw the direction
at any time.
(b) Beginning January 1, 1993, each pension fund or retirement system
operating under this Code may, and to the extent required by federal law
shall, at the request of any person entitled to receive a refund, lump-sum
benefit, or other nonperiodic distribution from the pension fund or retirement
system, pay the distribution directly to any entity
that (1) is designated in writing by the person, (2) is qualified under federal
law to accept an eligible rollover distribution from a qualified plan, and (3)
has agreed to accept the distribution.
(Source: P.A. 96-586, eff. 8-18-09.)
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(40 ILCS 5/1-107) (from Ch. 108 1/2, par. 1-107)
Sec. 1-107.
Indemnification of trustees, consultants and employees of
retirement systems and pension funds. Every retirement system, pension
fund or other system or fund established under this Code may indemnify and
protect the trustees, staff and consultants against all damage claims
and suits, including defense thereof, when damages are sought for negligent
or wrongful acts alleged to have been committed in the scope of employment
or under the direction of the trustees. However, the trustees, staff and
consultants shall not be indemnified for wilful misconduct and gross negligence.
Each board is authorized to insure against loss or liability of the trustees,
staff and consultants which may result from these damage claims. This insurance
shall be carried in a company which is licensed to write such coverage in this State.
(Source: P.A. 80-1364.)
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(40 ILCS 5/1-108) (from Ch. 108 1/2, par. 1-108)
Sec. 1-108.
(a) In any proceeding commenced against an employee of a pension
fund, alleging a civil wrong arising out of any act or omission occurring
within the scope of the employee's pension fund employment, unless the court
or the jury finds that the conduct which gave rise to the claim was intentional,
wilful or wanton misconduct, the pension fund shall indemnify the employee
for any damages awarded and court costs and attorneys' fees assessed as
part of any final and unreversed judgment and any attorneys' fees, court
costs and litigation expenses incurred by the employee in defending the
claim. In any such proceeding if a majority of the board or trustees who
are not a party to the action determine that the conduct which gave rise
to the claim was not intentional, wilful or wanton misconduct, the board
or trustees may agree to settlement of the proceeding and the pension fund
shall indemnify the employee for any damages, court costs and attorneys'
fees agreed to as part of the settlement and any attorneys' fees, court
costs and litigation expenses incurred in defending the claim.
(b) No employee of a pension fund shall be entitled to indemnification
under this Section unless within 15 days after receipt by the employee of
service of process, he shall give written notice of such proceeding to the pension fund.
(c) Each pension fund may insure against loss or liability of employees
which may arise as a result of these claims. This insurance shall be carried
by a company authorized to provide such coverage in this State.
(d) Nothing contained or implied in this Section shall operate, or be
construed or applied, to deprive the State or a pension fund, or any other
employee thereof, of any immunity or any defense heretofore available.
(e) This Section shall apply regardless of whether the employee is sued
in his or her individual or official capacity.
(f) This Section shall not apply to claims for bodily injury or damage
to property arising from motor vehicle crashes.
(g) This Section shall apply to all proceedings filed on or after its
effective date, and to any proceeding pending on its effective date, if
the pension fund employee gives notice to the pension fund within 30 days
of the Act's effective date.
(Source: P.A. 102-982, eff. 7-1-23.)
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(40 ILCS 5/1-109) (from Ch. 108 1/2, par. 1-109)
Sec. 1-109. Duties of fiduciaries. A fiduciary with
respect to a retirement system or pension fund established
under this Code shall discharge his or her duties with respect to the
retirement system or pension fund solely in the interest of the participants
and beneficiaries and:
(a) for the exclusive purpose of:
(1) providing benefits to participants and their | ||
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(2) defraying reasonable expenses of | ||
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(b) with the care, skill, prudence and diligence | ||
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(c) by diversifying the investments of the retirement | ||
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(d) in accordance with the provisions of the Article | ||
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(Source: P.A. 102-558, eff. 8-20-21; 103-464, eff. 8-4-23.)
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(40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
Sec. 1-109.1. Allocation and delegation of fiduciary duties.
(1) Subject to the provisions of Section 22A-113 of this Code and
subsections (2) and (3) of this Section, the board of trustees of a
retirement system or pension fund established under this Code may:
(a) Appoint one or more investment managers as | ||
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(b) Allocate duties among themselves and designate | ||
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(2) The board of trustees of a pension fund established under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not transfer its investment authority,
nor transfer the assets of the fund to any other person or entity for the
purpose of consolidating or merging its assets and management with any other
pension fund or public investment authority, unless the board resolution
authorizing such transfer is submitted for approval to the contributors and
pensioners of the fund at elections held not less than 30 days after the
adoption of such resolution by the board, and such resolution is approved by a
majority of the votes cast on the question in both the contributors election
and the pensioners election. The election procedures and qualifications
governing the election of trustees shall govern the submission of resolutions
for approval under this paragraph, insofar as they may be made applicable.
(3) Pursuant to subsections (h) and (i) of Section 6 of Article VII of
the Illinois Constitution, the investment authority of boards of trustees
of retirement systems and pension funds established under this Code is declared
to be a subject of exclusive State jurisdiction, and the concurrent exercise
by a home rule unit of any power affecting such investment authority is
hereby specifically denied and preempted.
(4) For the purposes of this Code, "emerging investment manager" means a
qualified investment adviser that manages an investment portfolio of at
least $10,000,000 but less than $10,000,000,000 and is a
"minority-owned business", "women-owned business" or "business owned by a person with a disability" as those terms are
defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.
It is hereby declared to be the public policy of the State of Illinois to
encourage the trustees of public employee retirement systems, pension funds, and investment boards
to use emerging investment managers in managing their system's assets, encompassing all asset classes, and increase the racial, ethnic, and gender diversity of its fiduciaries, to the
greatest extent feasible within the bounds of financial and fiduciary
prudence, and to take affirmative steps to remove any barriers to the full
participation in investment opportunities
afforded by those retirement systems, pension funds, and investment boards.
On or before January 1, 2010, a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall adopt a policy that sets forth goals for utilization of emerging investment managers. This policy shall include quantifiable goals for the management of assets in specific asset classes by emerging investment managers. The retirement system, pension fund, or investment board shall establish 3 separate goals for: (i) emerging investment managers that are minority-owned businesses; (ii) emerging investment managers that are women-owned businesses; and (iii) emerging investment managers that are businesses owned by a person with a disability. The goals established shall be based on the percentage of total dollar amount of investment service contracts let to minority-owned businesses, women-owned businesses, and businesses owned by a person with a disability, as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. The retirement system, pension fund, or investment board shall annually review the goals established under this subsection. If in any case an emerging investment manager meets the criteria established by a board for a specific search and meets the criteria established by a consultant for that search, then that emerging investment manager shall receive an invitation by the board of trustees, or an investment committee of the board of trustees, to present his or her firm for final consideration of a contract. In the case where multiple emerging investment managers meet the criteria of this Section, the staff may choose the most qualified firm or firms to present to the board.
The use of an emerging investment manager does not constitute a transfer
of investment authority for the purposes of subsection (2) of this Section.
(5) Each retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall establish a policy that sets forth goals for increasing the racial, ethnic, and gender diversity of its fiduciaries, including its consultants and senior staff. Each retirement system, pension fund, or
investment board shall make its best efforts to ensure that
the racial and ethnic makeup of its senior administrative
staff represents the racial and ethnic makeup of its
membership. Each system, fund, and investment board shall annually review the goals established under this subsection. (6) On or before January 1, 2010, a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall adopt a policy that sets forth goals for utilization of businesses owned by minorities, women, and persons with disabilities for all contracts and services. The goals established shall be based on the percentage of total dollar amount of all contracts let to minority-owned businesses, women-owned businesses, and businesses owned by a person with a disability, as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. The retirement system, pension fund, or investment board shall annually review the goals established under this subsection. (7) On or before January 1, 2010, a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall adopt a policy that sets forth goals for increasing the utilization of minority broker-dealers. For the purposes of this Code, "minority broker-dealer" means a qualified broker-dealer who meets the definition of "minority-owned business", "women-owned business", or "business owned by a person with a disability", as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. The retirement system, pension fund, or investment board shall annually review the goals established under this Section. (8) Each retirement system, pension fund, and investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall submit a report to the Governor and the General Assembly by January 1 of each year that includes the following: (i) the policy adopted under subsection (4) of this Section, including the names and addresses of the emerging investment managers used, percentage of the assets under the investment control of emerging investment managers for the 3 separate goals, and the actions it has undertaken to increase the use of emerging investment managers, including encouraging other investment managers to use emerging investment managers as subcontractors when the opportunity arises; (ii) the policy adopted under subsection (5) of this Section; (iii) the policy adopted under subsection (6) of this Section; (iv) the policy adopted under subsection (7) of this Section, including specific actions undertaken to increase the use of minority broker-dealers; and (v) the policy adopted under subsection (9) of this Section. (9) On or before February 1, 2015, a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall adopt a policy that sets forth goals for increasing the utilization of minority investment managers. For the purposes of this Code, "minority investment manager" means a qualified investment manager that manages an investment portfolio and meets the definition of "minority-owned business", "women-owned business", or "business owned by a person with a disability", as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. It is hereby declared to be the public policy of the State of Illinois to
encourage the trustees of public employee retirement systems, pension funds, and investment boards
to use minority investment managers in managing their systems' assets, encompassing all asset classes, and to increase the racial, ethnic, and gender diversity of their fiduciaries, to the
greatest extent feasible within the bounds of financial and fiduciary
prudence, and to take affirmative steps to remove any barriers to the full
participation in investment opportunities
afforded by those retirement systems, pension funds, and investment boards. The retirement system, pension fund, or investment board shall establish 3 separate goals for: (i) minority investment managers that are minority-owned businesses; (ii) minority investment managers that are women-owned businesses; and (iii) minority investment managers that are businesses owned by a person with a disability. The retirement system, pension fund, or investment board shall annually review the goals established under this Section. If in any case a minority investment manager meets the criteria established by a board for a specific search and meets the criteria established by a consultant for that search, then that minority investment manager shall receive an invitation by the board of trustees, or an investment committee of the board of trustees, to present his or her firm for final consideration of a contract. In the case where multiple minority investment managers meet the criteria of this Section, the staff may choose the most qualified firm or firms to present to the board. The use of a minority investment manager does not constitute a transfer
of investment authority for the purposes of subsection (2) of this Section. (10) Beginning January 1, 2016, it shall be the aspirational goal for a retirement system, pension fund, or investment board subject to this Code to use emerging investment managers for not less than 20% of the total funds under management. Furthermore, it shall be the aspirational goal that not less than 20% of investment advisors be minorities, women, and persons with disabilities as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. It shall be the aspirational goal to utilize businesses owned by minorities, women, and persons with disabilities for not less than 20% of contracts awarded for "information technology services", "accounting services", "insurance brokers", "architectural and engineering services", and "legal services" as those terms are defined in the Act. (Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17; 100-902, eff. 8-17-18.)
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(40 ILCS 5/1-109.2) (from Ch. 108 1/2, par. 1-109.2)
Sec. 1-109.2.
Extent of Cofiduciary Duties.
(a) (1) Except to the extent
otherwise required in subsection (b) of this Section, a fiduciary of a
retirement
system or pension fund to whom a specified duty has not been allocated shall
not be responsible or liable for an act or omission, in connection with
that duty, by the fiduciary to whom that duty has been allocated, except
to the extent that the allocation, or the continuation thereof, is a violation
of Section 1-109 of this Code. Nothing in this paragraph (1) shall be
construed
to relieve a fiduciary from responsibility or liability for any act by that
fiduciary.
(2) Except to the extent otherwise required in subsection (b) of this
Section a fiduciary shall not be responsible or liable for an act or omission,
in connection with a specific fiduciary activity, by any other person who
has been designated to carry out that fiduciary activity, except to the
extent that the designation, or the continuation thereof at any time under
the circumstances then prevailing, is a violation of Section 1-109 of this
Code. Nothing in this paragraph (2) shall be construed to relieve a fiduciary
from responsibility for any act by that fiduciary.
(b) With respect to any retirement system or pension fund established under this Code:
(1) Each trustee shall use reasonable care to prevent any other trustee
from committing a breach of duty; and
(2) Subject to the provisions of Section 22A-113 of this Code, all trustees
shall jointly manage and control the assets of the retirement system or pension fund.
Nothing in this subsection (b) shall be construed to attribute a duty to
a trustee which would be inconsistent with the appointment of, and delegation
of authority to, an investment manager in accordance with paragraph (a)
of Section 1-109.1 of this Code.
(Source: P.A. 82-960.)
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(40 ILCS 5/1-109.3) Sec. 1-109.3. Training requirement for pension trustees. (a) All elected and appointed trustees under Article 3 and 4 of this Code must participate in a mandatory trustee certification training seminar that consists of at least 16 hours of initial trustee certification at a training facility that is accredited and affiliated with a State of Illinois certified college or university. This training must include without limitation all of the following: (1) Duties and liabilities of a fiduciary with | ||
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(2) Adjudication of pension claims. (3) (Blank). (4) Trustee ethics. (5) The Illinois Open Meetings Act. (6) The Illinois Freedom of Information Act. The training required under this subsection (a) must be completed within the first year that a trustee is elected or appointed under an Article 3 or 4 pension fund. Any trustee who has completed the training required under Section 1.05 of the Open Meetings Act shall not be required to participate in training concerning item (5) of this subsection. The elected and appointed trustees of an Article 3 or 4 pension fund who are police officers (as defined in Section 3-106 of this Code) or firefighters (as defined in Section 4-106 of this Code) or are employed by the municipality shall be permitted time away from their duties to attend such training without reduction of accrued leave or benefit time. Active or appointed trustees serving on the effective date of this amendatory Act of the 96th General Assembly shall not be required to attend the training required under this subsection (a). (a-5) In addition to the initial trustee certification training required under subsection (a), all elected and appointed trustees who were elected or appointed on or before the effective date of this amendatory Act of the 101st General Assembly shall also participate in 4 hours of training on the changes made by this amendatory Act of the 101st General Assembly. For trustees of funds under Article 3, this training shall be conducted at a training facility that is accredited and affiliated with a State of Illinois certified college or university. For trustees of funds under Article 4, this training may be conducted by a fund, the Department of Insurance, or both a fund and the Department of Insurance. This training is only required to be completed once by each trustee required to participate. (b) In addition to the initial trustee certification training required under subsection (a), all elected and appointed trustees under Article 3 and 4 of this Code, including trustees serving on the effective date of this amendatory Act of the 96th General Assembly, shall also participate in a minimum of 8 hours of continuing trustee education each year after the first year that the trustee is elected or appointed. (c) The training required under this Section shall be paid for by the pension fund. (d) Any board member who does not timely complete the training required under this Section is not eligible to serve on the board of trustees of an Article 3 or 4 pension fund, unless the board member completes the missed training within 6 months after the date the member failed to complete the required training. In the event of a board member's failure to complete the required training, a successor shall be appointed or elected, as applicable, for the unexpired term. A successor who is elected under such circumstances must be elected at a special election called by the board and conducted in the same manner as a regular election under Article 3 or 4, as applicable.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/1-109.5) Sec. 1-109.5. Prohibition on employment for board members. Except as otherwise provided in this Section and in accordance with Section 5-45 of the State Officials and Employees Ethics Act, no individual who is a board member of a pension fund, investment board, or retirement system may be employed by that pension fund, investment board, or retirement system at any time during his or her service and for a period of 12 months after he or she ceases to be a board member. If a senior administrative staff position becomes vacant and no executive member of the staff is willing to accept the position, an individual serving as a board member may temporarily serve as an interim member of the senior administrative staff of the fund under the following conditions: (1) the senior administrative staff position is | ||
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(2) a majority of the board of trustees of the fund | ||
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(3) the board-designated interim member of the senior | ||
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(4) the board-designated interim member of the senior | ||
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(5) the trustee vacates his or her position as a | ||
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(Source: P.A. 102-603, eff. 1-1-22.) |
(40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
Sec. 1-110. Prohibited Transactions.
(a) A fiduciary with respect to a retirement system, pension fund, or investment board shall
not cause the retirement system or pension fund to engage in a transaction if
he or she knows or should know that such transaction constitutes a direct or
indirect:
(1) Sale or exchange, or leasing of any property from | ||
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(2) Lending of money or other extension of credit | ||
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(3) Furnishing of goods, services or facilities from | ||
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(4) Transfer to, or use by or for the benefit of, a | ||
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(b) A fiduciary with respect to a retirement system or pension fund
established under this Code shall not:
(1) Deal with the assets of the retirement system or | ||
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(2) In his individual or any other capacity act in | ||
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(3) Receive any consideration for his own personal | ||
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(c) Nothing in this Section shall be construed to prohibit any trustee from:
(1) Receiving any benefit to which he may be entitled | ||
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(2) Receiving any reimbursement of expenses properly | ||
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(3) Serving as a trustee in addition to being an | ||
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(d) A fiduciary of a pension fund established under Article 3 or 4 shall
not knowingly cause or advise the pension fund to engage in an investment transaction when the fiduciary (i) has any direct interest in
the income, gains, or profits of the investment adviser through which the investment transaction is made or (ii) has a business relationship with that investment adviser that would result in a pecuniary benefit to the fiduciary as a result of the investment transaction. Violation of this subsection (d) is a Class 4 felony.
(e) A board member, employee, or consultant with respect to a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2, shall not knowingly cause or advise the retirement system, pension fund, or investment board to engage in an investment transaction with an investment adviser when the board member, employee, consultant, or their spouse (i) has any direct interest in the income, gains, or profits of the investment adviser through which the investment transaction is made or (ii) has a relationship with that investment adviser that would result in a pecuniary benefit to the board member, employee, or consultant or spouse of such board member, employee, or consultant as a result of the investment transaction. For purposes of this subsection (e), a consultant includes an employee or agent of a consulting firm who has greater than 7.5% ownership of the consulting firm. Violation of this subsection (e) is a Class 4 felony.(Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
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(40 ILCS 5/1-110.5)
Sec. 1-110.5. (Repealed).
(Source: P.A. 94-79, eff. 1-27-06. Repealed by P.A. 95-521, eff. 8-28-07.)
|
(40 ILCS 5/1-110.6)
Sec. 1-110.6. Transactions prohibited by retirement systems; Republic of the Sudan. (a) The Government of the United States has determined that Sudan is a nation that sponsors terrorism and genocide. The General Assembly finds that acts of terrorism have caused injury and death to Illinois and United States residents who serve in the United States military, and pose a significant threat to safety and health in Illinois. The General Assembly finds that public employees and their families, including police officers and firefighters, are more likely than others to be affected by acts of terrorism. The General Assembly finds that Sudan continues to solicit investment and commercial activities by forbidden entities, including private market funds. The General Assembly finds that investments in forbidden entities are inherently and unduly risky, not in the interests of public pensioners and Illinois taxpayers, and against public policy. The General Assembly finds that Sudan's capacity to sponsor terrorism and genocide depends on or is supported by the activities of forbidden entities. The General Assembly further finds and re-affirms that the people of the State, acting through their representatives, do not want to be associated with forbidden entities, genocide, and terrorism.
(b) For purposes of this Section: "Business operations" means maintaining, selling, or leasing equipment, facilities, personnel, or any other apparatus of business or commerce in the Republic of the Sudan, including the ownership or possession of real or personal property located in the Republic of the Sudan. "Certifying company" means a company that (1) directly provides asset management services or advice to a retirement system or (2) as directly authorized or requested by a retirement system (A) identifies particular investment options for consideration or approval; (B) chooses particular investment options; or (C) allocates particular amounts to be invested. If no company meets the criteria set forth in this paragraph, then "certifying company" shall mean the retirement system officer who, as designated by the board, executes the investment decisions made by the board, or, in the alternative, the company that the board authorizes to complete the certification as the agent of that officer.
"Company" is any entity capable of affecting commerce, including but not limited to (i) a government, government agency, natural person, legal person, sole proprietorship, partnership, firm, corporation, subsidiary, affiliate, franchisor, franchisee, joint venture, trade association, financial institution, utility, public franchise, provider of financial services, trust, or enterprise; and (ii) any association thereof. "Division" means the Public Pension Division of the Department of Insurance.
"Forbidden entity" means any of the following: (1) The government of the Republic of the Sudan and | ||
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(2) Any company that is wholly or partially managed | ||
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(3) Any company (i) that is established or organized | ||
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(4) Any company (i) identified by the Office of | ||
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(5) Any publicly traded company that is individually | ||
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(6) Any private market fund that fails to satisfy the | ||
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Notwithstanding the foregoing, the term "forbidden entity" shall exclude (A) mutual funds that meet the requirements of item (iii) of paragraph (13) of Section 1-113.2 and (B) companies that transact business in the Republic of the Sudan under the law, license, or permit of the United States, including a license from the United States Department of the Treasury, and
companies, except agencies of the Republic of the Sudan, who are certified as Non-Government Organizations by the United Nations, or who engage solely in (i) the provision of goods and services intended to relieve human suffering or to promote welfare, health, religious and spiritual activities, and education or humanitarian purposes; or (ii) journalistic activities. "Private market fund" means any private equity fund, private equity fund of funds, venture capital fund, hedge fund, hedge fund of funds, real estate fund, or other investment vehicle that is not publicly traded.
"Republic of the Sudan" means those geographic areas of the Republic of Sudan that are subject to sanction or other restrictions placed on commercial activity imposed by the United States Government due to an executive or congressional declaration of genocide.
"Retirement system" means the State Employees' Retirement System of Illinois, the Judges Retirement System of Illinois, the General Assembly Retirement System, the State Universities Retirement System, and the Teachers' Retirement System of the State of Illinois.
(c) A retirement system shall not transfer or disburse funds to, deposit into, acquire any bonds or commercial paper from, or otherwise loan to or invest in any entity unless, as provided in this Section, a certifying company
certifies to the retirement system that, (1) with respect to investments in a publicly traded company, the certifying company has relied on information provided by an independent researching firm that specializes in global security risk and (2) 100% of the retirement system's assets for which the certifying company provides services or advice are not and have not been invested or reinvested in any forbidden entity at any time after 4 months after the effective date of this Section. The certifying company shall make the certification required under this subsection (c) to a retirement system 6 months after the effective date of this Section and annually thereafter. A retirement system shall submit the certifications to the Division, and the Division shall notify the Director of Insurance if a retirement system fails to do so. (d) With respect to a commitment or investment made pursuant to a written agreement executed prior to the effective date of this Section, each private market fund shall submit to the appropriate certifying company, at no additional cost to the retirement system:
(1) an affidavit sworn under oath in which an | ||
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(2) a certificate in which an expressly authorized | ||
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(e) With respect to a commitment or investment made pursuant to a written agreement executed after the effective date of this Section, each private market fund shall, at no additional cost to the retirement system: (1) submit to the appropriate certifying company an | ||
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(2) enter into an enforceable written agreement with | ||
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(f) In addition to any other penalties and remedies available under the law of Illinois and the United States, any transaction, other than a transaction with a private market fund that is governed by subsections (g) and (h) of this Section, that violates the provisions of this Act shall be against public policy and voidable, at the sole discretion of the retirement system.
(g) If a private market fund fails to provide the affidavit or certification required in subsections (d) and (e) of this Section, then the retirement system shall, within 90 days, divest, or attempt in good faith to divest, the retirement system's interest in the private market fund, provided that the Board of the retirement system confirms through resolution that the divestment does not have a material and adverse impact on the retirement system. The retirement system shall immediately notify the Division, and the Division shall notify all other retirement systems, as soon as practicable, by posting the name of the private market fund on the Division's Internet website or through e-mail communications. No other retirement system may enter into any agreement under which the retirement system directly or indirectly invests in the private market fund unless the private market fund provides that retirement system with the affidavit or certification required in subsections (d) and (e) of this Section and complies with all other provisions of this Section. (h) If a private market fund fails to fulfill its obligations under any agreement provided for in paragraph (2) of subsection (e) of this Section, the retirement system shall immediately take legal and other action to obtain satisfaction through all remedies and penalties available under the law and the agreement itself. The retirement system shall immediately notify the Division, and the Division shall notify all other retirement systems, as soon as practicable, by posting the name of the private market fund on the Division's Internet website or through e-mail communications, and no other retirement system may enter into any agreement under which the retirement system directly or indirectly invests in the private market fund.
(i) This Section shall have full force and effect during any period in which the Republic of the Sudan, or the officials of the government of that Republic, are subject to sanctions authorized under any statute or executive order of the United States or until such time as the State Department of the United States confirms in the federal register or through other means that the Republic of the Sudan is no longer subject to sanctions by the government of the United States. (j) If any provision of this Section or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this Section that can be given effect without the invalid provision or application.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/1-110.10)
Sec. 1-110.10. Servicer certification. (a) For the purposes of this Section: "Illinois finance entity" means any entity chartered under the Illinois Banking Act, the Savings Bank Act, the Illinois Credit Union Act, or the Illinois Savings and Loan Act of 1985 and any person or entity licensed under the Residential Mortgage License Act of 1987, the Consumer Installment Loan Act, or the Sales Finance Agency Act. "Retirement system or pension fund" means a retirement system or pension fund established under this Code.
(b) In order for an Illinois finance entity to be eligible for investment or deposit of retirement system or pension fund assets, the Illinois finance entity must annually certify that it complies with the requirements of the High Risk Home Loan Act and the rules adopted pursuant to that Act that are applicable to that Illinois finance entity. For Illinois finance entities with whom the retirement system or pension fund is investing or depositing assets on the effective date of this Section, the initial certification required under this Section shall be completed within 6 months after the effective date of this Section. For Illinois finance entities with whom the retirement system or pension fund is not investing or depositing assets on the effective date of this Section, the initial certification required under this Section must be completed before the retirement system or pension fund may invest or deposit assets with the Illinois finance entity. (c) A retirement system or pension fund shall submit the certifications to the Public Pension Division of the Department of Insurance, and the Division shall notify the Director of Insurance if a retirement system or pension fund fails to do so. (d) If an Illinois finance entity fails to provide an initial certification within 6 months after the effective date of this Section or fails to submit an annual certification, then the retirement system or pension fund shall notify the Illinois finance entity. The Illinois finance entity shall, within 30 days after the date of notification, either (i) notify the retirement system or pension fund of its intention to certify and complete certification or (ii) notify the retirement system or pension fund of its intention to not complete certification. If an Illinois finance entity fails to provide certification, then the retirement system or pension fund shall, within 90 days, divest, or attempt in good faith to divest, the retirement system's or pension fund's assets with that Illinois finance entity. The retirement system or pension fund shall immediately notify the Public Pension Division of the Department of Insurance of the Illinois finance entity's failure to provide certification.
(e) If any provision of this Section or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this Section that can be given effect without the invalid provision or application.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/1-110.15)
Sec. 1-110.15. Transactions prohibited by retirement systems; Iran.
(a) As used in this Section: "Active business operations" means all business
operations that are not inactive business operations. "Business operations" means engaging in commerce
in any form in Iran, including, but not limited to,
acquiring, developing, maintaining, owning, selling,
possessing, leasing, or operating equipment, facilities,
personnel, products, services, personal property, real
property, or any other apparatus of business or commerce. "Company" means any sole proprietorship,
organization, association, corporation, partnership, joint
venture, limited partnership, limited liability partnership,
limited liability company, or other entity or business
association, including all wholly owned subsidiaries,
majority-owned subsidiaries, parent companies, or affiliates
of those entities or business associations, that exists for
the purpose of making profit. "Direct holdings" in a company means all
securities of that company that are held directly by the
retirement system or in an account or fund in which the retirement system
owns all shares or interests. "Inactive business operations" means the mere
continued holding or renewal of rights to property previously
operated for the purpose of generating revenues but not
presently deployed for that purpose. "Indirect holdings" in a company means all
securities of that company which are held in an account or
fund, such as a mutual fund, managed by one or more persons
not employed by the retirement system, in which the retirement system owns
shares or interests together with other investors not subject
to the provisions of this Section. "Mineral-extraction activities" include exploring,
extracting, processing, transporting, or wholesale selling or
trading of elemental minerals or associated metal alloys or
oxides (ore), including gold, copper, chromium, chromite,
diamonds, iron, iron ore, silver, tungsten, uranium, and zinc. "Oil-related activities" include, but are not
limited to, owning rights to oil blocks; exporting,
extracting, producing, refining, processing, exploring for,
transporting, selling, or trading of oil; and constructing,
maintaining, or operating a pipeline, refinery, or other
oil-field infrastructure. The mere retail sale of gasoline and
related consumer products is not considered an oil-related
activity. "Petroleum resources" means petroleum, petroleum
byproducts, or natural gas. "Private market fund" means any private equity fund, private equity fund of funds, venture capital fund, hedge fund, hedge fund of funds, real estate fund, or other investment vehicle that is not publicly traded.
"Retirement system" means the State Employees' Retirement System of Illinois, the Judges Retirement System of Illinois, the General Assembly Retirement System, the State Universities Retirement System, and the Teachers' Retirement System of the State of Illinois. "Scrutinized business operations" means business operations that have caused a company to become a scrutinized company.
"Scrutinized company" means the company has
business operations that involve contracts with or provision
of supplies or services to the Government of Iran, companies
in which the Government of Iran has any direct or indirect
equity share, consortiums or projects commissioned by the
Government of Iran, or companies involved in consortiums or
projects commissioned by the Government of Iran and: (1) more than 10% of the company's revenues produced | ||
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(2) the company has, on or after August 5, 1996, made | ||
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"Substantial action" means adopting, publicizing,
and implementing a formal plan to cease scrutinized business
operations within one year and to refrain from any such new
business operations. (b) Within 90 days after the effective date of this
Section, a retirement system shall make its best efforts to identify all scrutinized companies in which the retirement system has direct or indirect holdings. These efforts shall include the following, as appropriate in the retirement system's judgment: (1) reviewing and relying on publicly available | ||
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(2) contacting asset managers contracted by the | ||
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(3) Contacting other institutional investors that | ||
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The retirement system may retain an independent research firm to identify scrutinized companies in which the retirement system has direct or indirect holdings. By the first meeting of the retirement system following
the 90-day period described in this subsection (b), the retirement system
shall assemble all scrutinized companies identified into a
scrutinized companies list. The retirement system shall update the scrutinized
companies list annually based on evolving information from,
among other sources, those listed in this subsection (b). (c) The retirement system shall adhere to
the following procedures for companies on the scrutinized
companies list: (1) The retirement system shall determine the | ||
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(2) For each company identified in item (1) of this | ||
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(3) For each company newly identified in item (1) of | ||
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(4) If, within 90 days after the retirement system's | ||
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(d) If, after 90 days following the retirement system's first
engagement with a company pursuant to subsection (c), the
company continues to have scrutinized active business
operations, and only while such company continues to have
scrutinized active business operations, the retirement system shall
sell, redeem, divest, or withdraw all publicly traded
securities of the company, except as provided in paragraph
(f), from the retirement system's assets under management within 12
months after the company's most recent appearance on the
scrutinized companies list. If a company that ceased scrutinized active
business operations following engagement pursuant to subsection (c) resumes such operations, this subsection (d) immediately
applies, and the retirement system shall send a written notice to
the company. The company shall also be immediately
reintroduced onto the scrutinized companies list. (e) The retirement system may not acquire
securities of companies on the scrutinized companies list
that have active business operations, except as provided in
subsection (f). (f) A company that the United States
Government affirmatively declares to be excluded from its
present or any future federal sanctions regime relating to
Iran is not subject to divestment or the investment
prohibition pursuant to subsections (d) and (e). (g) Notwithstanding the
provisions of this Section, paragraphs (d) and (e) do not apply to
indirect holdings in a private market fund.
However, the retirement system shall submit letters to the managers
of those investment funds containing companies that have
scrutinized active business operations requesting that they
consider removing the companies from the fund or create a
similar actively managed fund having indirect holdings devoid
of the companies. If the manager creates a similar fund, the
retirement system shall replace all applicable investments with
investments in the similar fund in an expedited timeframe
consistent with prudent investing standards. (h) The retirement system shall file a report with the Public Pension Division of the Department of Insurance that includes the scrutinized companies list
within 30 days after the list is created. This report shall be
made available to the public. The retirement system shall file an annual report with the Public Pension Division, which shall be made available to the public, that includes all of the following: (1) A summary of correspondence with companies | ||
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(2) All investments sold, redeemed, divested, or | ||
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(3) All prohibited investments under subsection (e). (4) A summary of correspondence with private market | ||
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(i) This Section expires upon the occurrence
of any of the following: (1) The United States revokes all sanctions imposed | ||
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(2) The Congress or President of the United States | ||
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(3) The Congress or President of the United States, | ||
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(j) With respect to actions
taken in compliance with this Act, including all good-faith
determinations regarding companies as required by this Act,
the retirement system is exempt from any conflicting statutory or
common law obligations, including any fiduciary duties under this Article and any obligations with
respect to choice of asset managers, investment funds, or
investments for the retirement system's securities portfolios. (k) Notwithstanding any
other provision of this Section to the contrary, the retirement system
may cease divesting from scrutinized companies
pursuant to subsection (d) or reinvest in
scrutinized companies from which it divested pursuant to
subsection (d) if clear and convincing evidence shows that the value of investments in scrutinized companies with active scrutinized business operations becomes equal to or less than 0.5% of the market value of all assets under management by the retirement system. Cessation of
divestment, reinvestment, or any subsequent ongoing investment
authorized by this Section is limited to the minimum steps
necessary to avoid the contingency set forth in this
subsection (k). For any cessation of divestment, reinvestment, or
subsequent ongoing investment authorized by this Section, the
retirement system shall provide a written report to the Public Pension Division in advance of initial reinvestment, updated
semiannually thereafter as applicable, setting forth the
reasons and justification, supported by clear and convincing
evidence, for its decisions to cease divestment, reinvest, or
remain invested in companies having scrutinized active
business operations. This Section does not apply to reinvestment
in companies on the grounds that they have ceased to have
scrutinized active business operations. (l) If any provision of this Section or its
application to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of
the Act which can be given effect without the invalid
provision or application, and to this end the provisions of
this Section are severable.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/1-110.16) Sec. 1-110.16. Transactions prohibited by retirement systems; companies that boycott Israel, for-profit companies that contract to shelter migrant children, Iran-restricted companies, Sudan-restricted companies, expatriated entities, companies that are domiciled or have their principal place of business in Russia or Belarus, and companies that are subject to Russian Harmful Foreign Activities Sanctions. (a) As used in this Section: "Boycott Israel" means engaging in actions that are | ||
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"Company" means any sole proprietorship, | ||
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"Company that is subject to Russian Harmful Foreign | ||
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"Contract to shelter migrant children" means entering | ||
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"Direct holdings" in a company means all publicly | ||
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"Expatriated entity" has the meaning ascribed to it | ||
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"Illinois Investment Policy Board" means the board | ||
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"Indirect holdings" in a company means all securities | ||
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"Iran-restricted company" means a company that meets | ||
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"Private market fund" means any private equity fund, | ||
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"Restricted companies" means companies that boycott | ||
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"Retirement system" means a retirement system | ||
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"Sudan-restricted company" means a company that meets | ||
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(b) There shall be established an Illinois Investment Policy Board. The Illinois Investment Policy Board shall consist of 7 members. Each board of a pension fund or investment board created under Article 15, 16, or 22A of this Code shall appoint one member, and the Governor shall appoint 4 members. The Governor shall designate one member of the Board as the Chairperson. (b-5) The term of office of each member appointed by the Governor, who is serving on the Board on June 30, 2022, is abolished on that date. The terms of office of members appointed by the Governor after June 30, 2022 shall be as follows: 2 initial members shall be appointed for terms of 2 years, and 2 initial members shall be appointed for terms of 4 years. Thereafter, the members appointed by the Governor shall hold office for 4 years, except that any member chosen to fill a vacancy occurring otherwise than by expiration of a term shall be appointed only for the unexpired term of the member whom he or she shall succeed. Board members may be reappointed. The Governor may remove a Governor's appointee to the Board for incompetence, neglect of duty, malfeasance, or inability to serve. (c) Notwithstanding any provision of law to the contrary, beginning January 1, 2016, Sections 1-110.15 and 1-110.6 of this Code shall be administered in accordance with this Section. (d) By April 1, 2016, the Illinois Investment Policy Board shall make its best efforts to identify all Iran-restricted companies, Sudan-restricted companies, and companies that boycott Israel and assemble those identified companies into a list of restricted companies, to be distributed to each retirement system. These efforts shall include the following, as appropriate in the Illinois Investment Policy Board's judgment: (1) reviewing and relying on publicly available | ||
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(2) contacting asset managers contracted by the | ||
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(3) contacting other institutional investors that | ||
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(4) retaining an independent research firm to | ||
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The Illinois Investment Policy Board shall review the list of restricted companies on a quarterly basis based on evolving information from, among other sources, those listed in this subsection (d) and distribute any updates to the list of restricted companies to the retirement systems and the State Treasurer. By April 1, 2018, the Illinois Investment Policy Board shall make its best efforts to identify all expatriated entities and include those companies in the list of restricted companies distributed to each retirement system and the State Treasurer. These efforts shall include the following, as appropriate in the Illinois Investment Policy Board's judgment: (1) reviewing and relying on publicly available | ||
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(2) contacting asset managers contracted by the | ||
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(3) contacting other institutional investors that | ||
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(4) retaining an independent research firm to | ||
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By July 1, 2022, the Illinois Investment Policy Board shall make its best efforts to identify all for-profit companies that contract to shelter migrant children and include those companies in the list of restricted companies distributed to each retirement system. These efforts shall include the following, as appropriate in the Illinois Investment Policy Board's judgment: (1) reviewing and relying on publicly available | ||
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(2) contacting asset managers contracted by the | ||
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(3) contacting other institutional investors that | ||
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(4) retaining an independent research firm to | ||
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No later than 6 months after the effective date of this amendatory Act of the 102nd General Assembly, the Illinois Investment Policy Board shall make its best efforts to identify all companies that are domiciled or have their principal place of business in Russia or Belarus and companies that are subject to Russian Harmful Foreign Activities Sanctions and include those companies in the list of restricted companies distributed to each retirement system. These efforts shall include the following, as appropriate in the Illinois Investment Policy Board's judgment: (1) reviewing and relying on publicly available | ||
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(2) contacting asset managers contracted by the | ||
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(3) contacting other institutional investors that | ||
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(4) retaining an independent research firm to | ||
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(e) The Illinois Investment Policy Board shall adhere to the following procedures for companies on the list of restricted companies: (1) For each company newly identified in subsection | ||
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(2) If, following the Illinois Investment Policy | ||
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(3) For a company that is domiciled or has its | ||
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(4) For a company that is subject to Russian Harmful | ||
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(f) Except as provided in subsection (f-1) of this Section the retirement system shall adhere to the following procedures for companies on the list of restricted companies: (1) The retirement system shall identify those | ||
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(2) The retirement system shall instruct its | ||
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(3) The retirement system may not acquire securities | ||
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(4) The provisions of this subsection (f) do not | ||
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(f-1) The retirement system shall adhere to the following procedures for restricted companies that are expatriated entities or for-profit companies that contract to shelter migrant children: (1) To the extent that the retirement system believes | ||
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(2) Subject to any applicable State or Federal laws, | ||
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(3) The retirement system shall report on its | ||
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(4) If the engagement efforts of the retirement | ||
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(f-5) Beginning on the effective date of this amendatory Act of the 102nd General Assembly, no retirement system shall invest moneys in Russian or Belarusian sovereign debt, Russian or Belarusian government-backed securities, any investment instrument issued by an entity that is domiciled or has its principal place of business in Russia or Belarus, or any investment instrument issued by a company that is subject to Russian Harmful Foreign Activities Sanctions, and no retirement system shall invest or deposit State moneys in any bank that is domiciled or has its principal place of business in Russia or Belarus. As soon as practicable after the effective date of this amendatory Act of the 102nd General Assembly, each retirement system shall instruct its investment advisors to sell, redeem, divest, or withdraw all direct holdings of Russian or Belarusian sovereign debt and direct holdings of Russian or Belarusian government-backed securities from the retirement system's assets under management in an orderly and fiduciarily responsible manner. Notwithstanding any provision of this Section to the contrary, a retirement system may cease divestment pursuant to this subsection (f-5) if clear and convincing evidence shows that the value of investments in such Russian or Belarusian sovereign debt and Russian or Belarusian government-backed securities becomes equal to or less than 0.05% of the market value of all assets under management by the retirement system. For any cessation of divestment authorized by this subsection (f-5), the retirement system shall provide a written notice to the Illinois Investment Policy Board in advance of the cessation of divestment, setting forth the reasons and justification, supported by clear and convincing evidence, for its decision to cease divestment under this subsection (f-5). The provisions of this subsection (f-5) do not apply to the retirement system's indirect holdings or private market funds. (g) Upon request, and by April 1 of each year, each retirement system shall provide the Illinois Investment Policy Board with information regarding investments sold, redeemed, divested, or withdrawn in compliance with this Section. (h) Notwithstanding any provision of this Section to the contrary, a retirement system may cease divesting from companies pursuant to subsection (f) if clear and convincing evidence shows that the value of investments in such companies becomes equal to or less than 0.5% of the market value of all assets under management by the retirement system. For any cessation of divestment authorized by this subsection (h), the retirement system shall provide a written notice to the Illinois Investment Policy Board in advance of the cessation of divestment, setting forth the reasons and justification, supported by clear and convincing evidence, for its decision to cease divestment under subsection (f). (i) The cost associated with the activities of the Illinois Investment Policy Board shall be borne by the boards of each pension fund or investment board created under Article 15, 16, or 22A of this Code. (j) With respect to actions taken in compliance with this Section, including all good-faith determinations regarding companies as required by this Section, the retirement system and Illinois Investment Policy Board are exempt from any conflicting statutory or common law obligations, including any fiduciary duties under this Article and any obligations with respect to choice of asset managers, investment funds, or investments for the retirement system's securities portfolios. (k) It is not the intent of the General Assembly in enacting this amendatory Act of the 99th General Assembly to cause divestiture from any company based in the United States of America. The Illinois Investment Policy Board shall consider this intent when developing or reviewing the list of restricted companies. (l) If any provision of this amendatory Act of the 99th General Assembly or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this amendatory Act of the 99th General Assembly that can be given effect without the invalid provision or application.
If any provision of Public Act 100-551 or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of Public Act 100-551 that can be given effect without the invalid provision or application. If any provision of Public Act 102-118 or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of Public Act 102-118 that can be given effect without the invalid provision or application. If any provision of this amendatory Act of the 102nd General Assembly or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this amendatory Act of the 102nd General Assembly that can be given effect without the invalid provision or application. (Source: P.A. 102-118, eff. 7-23-21; 102-699, eff. 4-19-22; 102-1108, eff. 12-21-22.) |
(40 ILCS 5/1-110.17) Sec. 1-110.17. Expiration of prohibited transactions. If, at least 4 years after the effective date of an amendatory Act that initially establishes a prohibited transaction under this Article, the Illinois Investment Policy Board concludes that divestment is no longer necessary due to achievement of the underlying goals of the amendatory Act establishing the prohibited transaction, changes in status surrounding the prohibited transactions, or other verifiable reasons, the Illinois Investment Policy Board may cease actions to require divestment, identify restricted companies, or prohibit transactions by a majority vote of the Illinois Investment Policy Board if: (1) no less than one year prior to the change in policy, the Illinois Investment Policy Board notifies, in writing, the General Assembly of the change in policy and lists the reasons for changing the policy; and (2) the General Assembly does not, before the change in policy, adopt a House Resolution or a Senate Resolution instructing the Illinois Investment Policy Board to not change the policy.
(Source: P.A. 102-118, eff. 7-23-21.) |
(40 ILCS 5/1-111) (from Ch. 108 1/2, par. 1-111)
Sec. 1-111.
Ten Per Cent Limitation of Employer Securities.
A plan may
not acquire a security issued by an employer of employees covered by
the retirement system or pension fund, if immediately after such acquisition,
the aggregate fair market value of such employer securities held by the
retirement system or pension fund exceed 10 per cent of the fair market value
of the assets of the retirement system or pension fund.
(Source: P.A. 81-948.)
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(40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
Sec. 1-113. Investment authority of certain pension funds, not including
those established under Article 3 or 4. The investment authority of a board
of trustees of a retirement system or pension fund established under this
Code shall, if so provided in the Article establishing such retirement system
or pension fund, embrace the following investments:
(1) Bonds, notes and other direct obligations of the | ||
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(2) Obligations of the Inter-American Development | ||
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(3) Obligations of any state, or of any political | ||
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(4) Nonconvertible bonds, debentures, notes and other | ||
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(5) Obligations guaranteed by the Government of | ||
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(5.1) Direct obligations of the State of Israel for | ||
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(a) The total investments in such obligations | ||
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(b) The State of Israel shall not be in default | ||
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(c) The bonds, stock or notes, and interest | ||
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(d) The bonds shall (1) contain an option for the | ||
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(e) The investment in these obligations has been | ||
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(f) The fund or system making the investment | ||
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(6) Notes secured by mortgages under Sections 203, | ||
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(7) Loans to veterans guaranteed in whole or part by | ||
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(8) Common and preferred stocks and convertible debt | ||
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(a) the common stocks, except as provided in | ||
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(b) the securities are of a corporation created | ||
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(c) the corporation is not in arrears on payment | ||
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(d) the total book value of all stocks and | ||
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(e) the book value of stock and convertible debt | ||
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(f) the straight preferred stocks or convertible | ||
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(g) that any common stocks not listed or quoted | ||
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(9) Withdrawable accounts of State chartered and | ||
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No bank or savings and loan association shall receive | ||
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(10) Trading, purchase or sale of listed options on | ||
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(11) Contracts and agreements supplemental thereto | ||
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(12) Conventional mortgage pass-through securities | ||
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(13) Pooled or commingled funds managed by a national | ||
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(14) Pooled or commingled funds managed by a national | ||
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(15) Investment companies which (a) are registered as | ||
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(16) Up to 10% of the assets of the fund may be | ||
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The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
Any limitations herein set forth shall be applicable only at the time
of purchase and shall not require the liquidation of any investment at
any time.
All investments shall be clearly held and accounted for to indicate
ownership by such board. Such board may direct the registration of
securities in its own name or in the name of a nominee created for the
express purpose of registration of securities by a national or state
bank or trust company authorized to conduct a trust business
in the State of Illinois.
Investments shall be carried at cost or at a value determined in accordance
with
generally accepted accounting principles and accounting procedures
approved by such board.
(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/1-113.1)
Sec. 1-113.1.
Investment authority of pension funds established under
Article 3 or 4. The board of trustees of a police pension fund established
under Article 3 of this Code or firefighter pension fund established under
Article 4 of this Code shall draw pension funds from the treasurer of the
municipality and, beginning January 1, 1998, invest any part thereof in the
name of the board in the items listed in Sections 1-113.2 through 1-113.4
according to the limitations and requirements of this Article. These
investments shall be made with the care, skill, prudence, and diligence that a
prudent person acting in like capacity and familiar with such matters would use
in the conduct of an enterprise of like character with like aims.
Interest and any other income from the investments shall be credited to the
pension fund.
For the purposes of Sections 1-113.2 through 1-113.11, the "net assets" of a
pension fund include both the cash and invested assets of the pension fund.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-113.2)
Sec. 1-113.2.
List of permitted investments for all Article 3 or 4 pension
funds. Any pension fund established under Article 3 or 4 may invest in the
following items:
(1) Interest bearing direct obligations of the United States of America.
(2) Interest bearing obligations to the extent that they are fully
guaranteed or insured as to payment of principal and interest by the United
States of America.
(3) Interest bearing bonds, notes, debentures, or other similar obligations
of agencies of the United States of America. For the purposes of this Section,
"agencies of the United States of America" includes: (i) the Federal National
Mortgage Association and the Student Loan Marketing Association; (ii) federal
land banks, federal intermediate credit banks,
federal farm credit banks, and any other entity authorized to
issue direct debt obligations of the United States of America under the Farm
Credit Act of 1971 or amendments to that Act; (iii) federal home loan banks and
the Federal Home Loan Mortgage Corporation; and (iv) any agency created
by Act of Congress that is authorized to issue direct debt obligations of the
United States of America.
(4) Interest bearing savings accounts or certificates of deposit, issued by
federally chartered banks or savings and loan associations, to the extent that
the deposits are insured by agencies or instrumentalities of the federal
government.
(5) Interest bearing savings accounts or certificates of deposit, issued by
State of Illinois chartered banks or savings and loan associations, to the
extent that the deposits are insured by agencies or instrumentalities of the
federal government.
(6) Investments in credit unions, to the extent that the investments are
insured by agencies or instrumentalities of the federal government.
(7) Interest bearing bonds of the State of Illinois.
(8) Pooled interest bearing accounts managed by the Illinois Public
Treasurer's Investment Pool in accordance with the Deposit of State Moneys Act,
interest bearing funds or pooled accounts of the Illinois Metropolitan Investment Funds, and interest bearing funds or pooled accounts managed, operated, and
administered by banks, subsidiaries of banks, or subsidiaries of bank holding
companies in accordance with the laws of the State of Illinois.
(9) Interest bearing bonds or tax anticipation warrants of any county,
township, or municipal corporation of the State of Illinois.
(10) Direct obligations of the State of Israel, subject to the conditions
and limitations of item (5.1) of Section 1-113.
(11) Money market mutual funds managed by investment companies that are
registered under the federal Investment Company Act of 1940 and the Illinois
Securities Law of 1953 and are diversified, open-ended management investment
companies; provided that the portfolio of the money market mutual fund is
limited to the following:
(i) bonds, notes, certificates of indebtedness, | ||
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(ii) bonds, notes, debentures, or other similar | ||
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(iii) short term obligations of corporations | ||
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(12) General accounts of life insurance companies authorized to transact
business in Illinois.
(13) Any combination of the following, not to exceed 10% of the pension
fund's net assets:
(i) separate accounts that are managed by life | ||
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(ii) separate accounts that are managed by insurance | ||
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(iii) mutual funds that meet the following | ||
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(A) the mutual fund is managed by an investment | ||
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(B) the mutual fund has been in operation for at | ||
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(C) the mutual fund has total net assets of $250 | ||
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(D) the mutual fund is comprised of diversified | ||
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(14) Corporate bonds managed through an investment advisor must meet all of the following requirements: (1) The bonds must be rated as investment grade by | ||
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(2) If subsequently downgraded below investment | ||
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(Source: P.A. 96-1495, eff. 1-1-11.)
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(40 ILCS 5/1-113.3)
Sec. 1-113.3.
List of additional permitted investments for pension funds
with net assets of $2,500,000 or more.
(a) In addition to the items in Section
3-113.2, a pension fund established under Article 3 or 4 that has net assets of
at least $2,500,000 may invest a portion of its net assets in the following
items:
(1) Separate accounts that are managed by life | ||
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(2) Mutual funds that meet the following requirements:
(i) the mutual fund is managed by an investment | ||
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(ii) the mutual fund has been in operation for at | ||
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(iii) the mutual fund has total net assets of | ||
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(iv) the mutual fund is comprised of diversified | ||
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(b) A pension fund's total investment in the items authorized under this
Section shall not exceed 35% of the market value of the pension fund's net
present assets stated in its most recent annual report on file with the
Illinois Department of Insurance.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-113.4)
Sec. 1-113.4. List of additional permitted investments for pension funds
with net assets of $5,000,000 or more. (a) In addition to the items in Sections 1-113.2 and 1-113.3, a pension fund
established under Article 3 or 4 that has net assets of at least $5,000,000 and
has appointed an investment adviser under Section 1-113.5 may, through that
investment adviser, invest a portion of its assets in common and preferred
stocks authorized for investments of trust funds under the laws of the State
of Illinois. The stocks must meet all of the following requirements:
(1) The common stocks are listed on a national | ||
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(2) The securities are of a corporation created or | ||
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(3) The corporation has not been in arrears on | ||
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(4) The market value of stock in any one corporation | ||
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(5) The straight preferred stocks or convertible | ||
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(6) The issuer of the stocks has been subject to the | ||
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(b) A pension fund's total investment in the items authorized under this
Section and Section 1-113.3 shall not exceed 35% of the market value of the
pension fund's net present assets stated in its most recent annual report on
file with the Public Pension Division of the Department of Insurance.
(c) A pension fund that invests funds under this Section shall
electronically file with the Public Pension Division of the Department of Insurance any reports of its investment activities
that the Division may require, at the times and in the format required by the
Division.
(Source: P.A. 103-426, eff. 8-4-23.)
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(40 ILCS 5/1-113.4a) Sec. 1-113.4a. List of additional permitted investments for Article 3 and 4 pension funds with net assets of $10,000,000 or more. (a) In addition to the items in Sections 1-113.2 and 1-113.3, a pension fund established under Article 3 or 4 that has net assets of at least $10,000,000 and has appointed an investment adviser, as defined under Sections 1-101.4 and 1-113.5, may, through that investment adviser, invest an additional portion of its assets in common and preferred stocks and mutual funds. (b) The stocks must meet all of the following requirements: (1) The common stocks must be listed on a national | ||
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(2) The securities must be of a corporation in | ||
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(3) The market value of stock in any one corporation | ||
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(4) The straight preferred stocks or convertible | ||
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(c) The mutual funds must meet the following requirements: (1) The mutual fund must be managed by an investment | ||
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(2) The mutual fund must have been in operation for | ||
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(3) The mutual fund must have total net assets of | ||
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(4) The mutual fund must be comprised of a | ||
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(d) A pension fund's total investment in the items authorized under this Section and Section 1-113.3 shall not exceed 50% effective July 1, 2011 and 55% effective July 1, 2012 of the market value of the pension fund's net present assets stated in its most recent annual report on file with the Public Pension Division of the Department of Insurance. (e) A pension fund that invests funds under this Section shall electronically file with the Public Pension Division of the Department of Insurance any reports of its investment activities that the Division may require, at the time and in the format required by the Division.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/1-113.5)
Sec. 1-113.5. Investment advisers and investment services for all Article 3 or 4 pension funds.
(a) The board of trustees of a pension fund may appoint investment advisers
as defined in Section 1-101.4. The board of any pension fund investing in
common or preferred stock under Section 1-113.4 shall appoint an investment
adviser before making such investments.
The investment adviser shall be a fiduciary, as defined in Section 1-101.2,
with respect to the pension fund and shall be one of the following:
(1) an investment adviser registered under the | ||
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(2) a bank or trust company authorized to conduct a | ||
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(3) a life insurance company authorized to transact | ||
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(4) an investment company as defined and registered | ||
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(a-5) Notwithstanding any other provision of law, a person or entity that provides consulting services (referred to as a "consultant" in this Section) to a pension fund with respect to the selection of fiduciaries may not be awarded a contract to provide those consulting services that is more than 5 years in duration. No contract to provide such consulting services may be renewed or extended. At the end of the term of a contract, however, the contractor is eligible to compete for a new contract. No person shall attempt to avoid or contravene the restrictions of this subsection by any means. All offers from responsive offerors shall be accompanied by disclosure of the names and addresses of the following: (1) The offeror. (2) Any entity that is a parent of, or owns a | ||
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(3) Any entity that is a subsidiary of, or in which a | ||
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Beginning on July 1, 2008, a person, other than a trustee or an employee of a pension fund or retirement system, may not act as a consultant under this Section unless that person is at least one of the following: (i) registered as an investment adviser under the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.); (ii) registered as an investment adviser under the Illinois Securities Law of 1953; (iii) a bank, as defined in the Investment Advisers Act of 1940; or (iv) an insurance company authorized to transact business in this State. (b) All investment advice and services provided by an investment adviser
or a consultant appointed under this Section shall be rendered pursuant to a written contract
between the investment adviser and the board, and in accordance with the
board's investment policy.
The contract shall include all of the following:
(1) acknowledgement in writing by the investment | ||
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(2) the board's investment policy;
(3) full disclosure of direct and indirect fees, | ||
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(4) a requirement that the investment adviser submit | ||
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(b-5) Each contract described in subsection (b) shall also include (i) full disclosure of direct and indirect fees, commissions, penalties, and other compensation, including
reimbursement for expenses, that may be paid by or on behalf of the investment adviser or consultant in connection with the provision of services to the pension fund and (ii) a requirement that the investment adviser or consultant update the disclosure promptly after a modification of those payments or an additional payment. Within 30 days after the effective date of this amendatory Act of the 95th General Assembly, each investment adviser and consultant providing services on the effective date or subject to an existing contract for the provision of services must disclose to the board of trustees all direct and indirect fees, commissions, penalties, and other compensation paid by or on
behalf of the investment adviser or consultant in connection with the provision of those services and shall update that disclosure promptly after a modification of those payments or an additional payment. A person required to make a disclosure under subsection (d) is also required to disclose direct and indirect fees, commissions, penalties, or other compensation that shall or may be paid by or on behalf of the person in connection with the rendering of those services. The person shall update the disclosure promptly after a modification of those payments or an additional payment. The disclosures required by this subsection shall be in writing and shall include the date and amount of each payment and the name and address of each recipient of a payment. (c) Within 30 days after appointing an investment adviser or consultant, the board shall
submit a copy of the contract to the Public Pension Division of the Department of Insurance.
(d) Investment services provided by a person other than an investment
adviser appointed under this Section, including but not limited to services
provided by the kinds of persons listed in items (1) through (4) of subsection
(a), shall be rendered only after full written disclosure of direct and
indirect fees, commissions, penalties, and any other compensation that shall or
may be received by the person rendering those services.
(e) The board of trustees of each pension fund shall retain records of
investment transactions in accordance with the rules of the Public Pension Division of the Department of
Insurance.
(Source: P.A. 103-426, eff. 8-4-23.)
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(40 ILCS 5/1-113.6)
Sec. 1-113.6. Investment policies. Every board of trustees of a pension
fund shall adopt a written investment policy and file a copy of that policy
with the Department of Insurance within 30 days after its adoption. Whenever a
board changes its investment policy, it shall file a copy of the new policy
with the Department within 30 days.
The investment policy shall include a statement that material, relevant, and decision-useful sustainability factors have been or are regularly considered by the board, within the bounds of financial and fiduciary prudence, in evaluating investment decisions. Such factors include, but are not limited to: (1) corporate governance and leadership factors; (2) environmental factors; (3) social capital factors; (4) human capital factors; and (5) business model and innovation factors, as provided under the Illinois Sustainable Investing Act. (Source: P.A. 101-473, eff. 1-1-20.)
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(40 ILCS 5/1-113.7)
Sec. 1-113.7.
Registration of investments; custody and safekeeping.
The
board of trustees may register the investments of its pension fund in the name
of the pension fund, in the nominee name of a bank or trust company authorized
to conduct a trust business in Illinois, or in the nominee name of the Illinois
Public Treasurer's Investment Pool.
The assets of the pension fund and ownership of its investments shall be
protected through third-party custodial safekeeping. The board of trustees
may appoint as custodian of the investments of its pension fund the treasurer
of the municipality, a bank or trust company authorized to conduct a trust
business in Illinois, or the Illinois Public Treasurer's Investment Pool.
A dealer may not maintain possession of or control over securities of a
pension fund subject to the provisions of this Section unless it is registered
as a broker-dealer with the U.S. Securities and Exchange Commission and is a
member in good standing of the National Association of Securities Dealers, and
(1) with respect to securities that are not issued only in book-entry form,
(A) all such securities of each fund are either held in safekeeping in a place
reasonably free from risk of destruction or held in custody by a securities
depository that is a "clearing agency" registered with the U.S. Securities and
Exchange Commission, (B) the dealer is a member of the Securities Investor
Protection Corporation, (C) the dealer sends to each fund, no less frequently
than each calendar quarter, an itemized statement showing the moneys and
securities in the custody or possession of the dealer at the end of such
period, and (D) an independent certified public accountant
conducts an audit, no less frequently than each calendar year, that reviews
the dealer's internal accounting controls and procedures for safeguarding
securities; and (2) with respect
to securities that are issued only in book-entry form, (A) all such securities
of each fund are held either in a securities depository that is a "clearing
agency" registered with the U.S. Securities and Exchange Commission or in a
bank that is a member of the Federal Reserve System, (B) the dealer records the
ownership interest of the funds in such securities on the dealer's books and
records, (C) the dealer is a member of the Securities Investor Protection
Corporation, (D) the dealer sends to each fund, no less frequently than each
calendar quarter, an itemized statement showing the moneys and securities in
the custody or possession of the dealer at the end of such period, and (E) the
dealer's financial statement (which shall contain among other things a
statement of the dealer's net capital and its required net capital computed in
accordance with Rule 15c3-1 under the Securities Exchange Act of 1934) is
audited annually by an independent certified public accountant, and the
dealer's most recent audited financial statement is furnished to the fund. No
broker-dealer serving as a custodian for any public pension fund as provided by
this Act shall be authorized to serve as an investment advisor for that same
public pension fund as described in Section 1-101.4 of this Code, to the
extent that the investment advisor acquires or disposes of any asset of that
same public pension fund.
Notwithstanding the foregoing, in no event may a broker or dealer that is a
natural person maintain possession of or control over securities or other
assets of a pension fund subject to the provisions of this Section. In
maintaining securities of a pension fund subject to the provisions of this
Section, each dealer must maintain those securities in conformity with the
provisions of Rule 15c3-3(b) of the Securities Exchange Act of 1934 (Physical
Possession or Control of Securities). The Director of the Department of
Insurance may adopt such rules and regulations as shall be necessary and
appropriate in his or her judgment to effectuate the purposes of this
Section.
A bank or trust company authorized to conduct a trust business in Illinois
shall register, deposit, or hold investments for safekeeping, all in accordance
with the obligations and subject to the limitations of the Securities in
Fiduciary Accounts Act.
(Source: P.A. 92-651, eff. 7-11-02.)
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(40 ILCS 5/1-113.8)
Sec. 1-113.8.
Limitations on banks and savings and loan associations.
A
bank or savings and loan association shall not receive investment funds from
a pension fund established under Article 3 or 4 of this Code, unless it has
complied with the requirements established under Section 6 of the Public Funds
Investment Act. The limitations set forth in that Section 6 are applicable
only at the time of investment and do not require the liquidation of any
investment at any time.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-113.9)
Sec. 1-113.9.
Illegal investments.
A person registered as a dealer, salesperson, or investment adviser under the
Illinois Securities Law of 1953 who sells a pension fund a security, or engages
in a transaction with a pension fund, that is not authorized by this Code,
shall be subject to the penalty provisions of Subsection E of Section 8 of the
Illinois Securities Law of 1953, if (1) the dealer, salesperson, or investment
adviser has discretionary authority or control over the fund's assets and has
acknowledged in writing that it is acting in a fiduciary capacity for the fund,
(2) the fund has requested the investment advice of the dealer, salesperson, or
investment adviser and has provided the dealer, salesperson, or investment
adviser with its investment policy, and the dealer, salesperson, or investment
adviser acknowledges in writing that the fund is relying primarily on the
investment advice of that dealer, salesperson, or investment adviser, or (3)
the dealer, salesperson, or investment adviser knows or has reason to know that
the fund is not capable of independently evaluating investment risk or
exercising independent judgment with respect to a particular securities
transaction, and nonetheless recommends that the fund engage in that
transaction.
A bank or trust company authorized to conduct a trust business in Illinois or
a broker-dealer,
and any officer, director, or employee thereof, that advises or causes a
pension fund to make an investment or engages in a transaction not authorized
by this Code is subject to the penalty provisions of Article V of the Corporate
Fiduciary Act.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-113.10)
Sec. 1-113.10.
Legality at time of investment.
The investment limitations
set forth in this Article are applicable only at the time of investment and do
not require the liquidation of any investment at any time. However, no
additional pension funds may be invested in any investment item while the
market value of the pension fund's investments in that item meets or exceeds
the applicable limitation.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-113.11)
Sec. 1-113.11.
Rules.
The Department of Insurance is authorized to
promulgate rules that are necessary or useful for the administration and
enforcement of Sections 1-113.1 through 1-113.10 of this Article.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1-113.12)
Sec. 1-113.12. Application. (a) Except as provided in subsection (b) of this Section, Sections 1-113.1 through 1-113.10 apply only
to pension funds established under Article 3 or 4 of this Code.
(b) Upon the transfer of the securities, funds, assets, and moneys of a transferor pension fund to a fund created under Article 22B or 22C, that pension fund shall no longer exercise any investment authority with respect to those securities, funds, assets, and moneys and Sections 1-113.1 through 113.10 shall not apply to those securities, funds, assets, and moneys.(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/1-113.14)
Sec. 1-113.14. Investment services for retirement systems, pension funds, and investment boards, except those funds established under Articles 3 and 4. (a) For the purposes of this Section, "investment services" means services provided by an investment adviser or a consultant other than qualified fund-of-fund management services as defined in Section 1-113.15. (b) The selection and appointment of an investment adviser or consultant for investment services by the board of a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2, shall be made and awarded in accordance with this Section. All contracts for investment services shall be awarded by the board using a competitive process that is substantially similar to the process required for the procurement of professional and artistic services under Article 35 of the Illinois Procurement Code. Each board of trustees shall adopt a policy in accordance with this subsection (b) within 60 days after the effective date of this amendatory Act of the 96th General Assembly. The policy shall be posted on its web site and filed with the Illinois Procurement Policy Board. Exceptions to this Section are allowed for (i) sole source procurements, (ii) emergency procurements, (iii) at the discretion of the pension fund, retirement system, or board of investment, contracts that are nonrenewable and one year or less in duration, so long as the contract has a value of less than $20,000, and (iv) in the discretion of the pension fund, retirement system, or investment board, contracts for follow-on funds with the same fund sponsor through closed-end funds.
All exceptions granted under this Section must be published on the system's, fund's, or board's web site, shall name the person authorizing the procurement, and shall include a brief explanation of the reason for the exception. A person, other than a trustee or an employee of a retirement system, pension fund, or investment board, may not act as a consultant or investment adviser under this Section unless that person is registered as an investment adviser under the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.) or a bank, as defined in the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.). (c) Investment services provided by an investment adviser or a consultant appointed under this Section shall be rendered pursuant to a written contract between the investment adviser or consultant and the board. The contract shall include all of the following: (1) Acknowledgement in writing by the investment | ||
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(2) The description of the board's investment policy | ||
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(3) (i) Full disclosure of direct and indirect fees, | ||
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(4) A requirement that the investment adviser or | ||
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(5) Disclosure of the names and addresses of (i) the | ||
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(6) A disclosure of the names and addresses of all | ||
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(7) A description of service to be performed. (8) A description of the need for the service. (9) A description of the plan for post-performance | ||
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(10) A description of the qualifications necessary. (11) The duration of the contract. (12) The method for charging and measuring cost. (d) Notwithstanding any other provision of law, a retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall not enter into a contract with a consultant that exceeds 5 years in duration. No contract to provide consulting services may be renewed or extended. At the end of the term of a contract, however, the consultant is eligible to compete for a new contract as provided in this Section. No retirement system, pension fund, or investment board shall attempt to avoid or contravene the restrictions of this subsection (d) by any means. (e) Within 60 days after the effective date of this amendatory Act of the 96th General Assembly, each investment adviser or consultant currently providing services or subject to an existing contract for the provision of services must disclose to the board of trustees all direct and indirect fees, commissions, penalties, and other compensation paid by or on behalf of the investment adviser or consultant in connection with the provision of those services and shall update that disclosure promptly after a modification of those payments or an additional payment. The person shall update the disclosure promptly after a modification of those payments or an additional payment. The disclosures required by this subsection (e) shall be in writing and shall include the date and amount of each payment and the name and address of each recipient of a payment. (f) The retirement system, pension fund, or board of investment shall develop uniform documents that shall be used for the solicitation, review, and acceptance of all investment services. The form shall include the terms contained in subsection (c) of this Section. All such uniform documents shall be posted on the retirement system's, pension fund's, or investment board's web site. (g) A description of every contract for investment services shall be posted in a conspicuous manner on the web site of the retirement system, pension fund, or investment board. The description must include the name of the person or entity awarded a contract, the total amount applicable to the contract, the total fees paid or to be paid, and a disclosure approved by the board describing the factors that contributed to the selection of an investment adviser or consultant.
(Source: P.A. 98-433, eff. 8-16-13.) |
(40 ILCS 5/1-113.15) Sec. 1-113.15. Qualified fund-of-fund management services. (a) As used in this Section: "Qualified fund-of-fund management services" means either (i) the services of an investment adviser acting in its capacity as an investment manager of a fund-of-funds or (ii) an investment adviser acting in its capacity as an investment manager of a separate account that is invested on a side-by-side basis in a substantially identical manner to a fund-of-funds, in each case pursuant to qualified written agreements. "Qualified written agreements" means one or more written contracts to which the investment adviser and the board are parties and includes all of the following: (i) the matters described in items (1), (4), (5), (7), (11), and (12) of subsection (c) of Section 1-113.14; (ii) a description of any fees, commissions, penalties, and other compensation payable, if any, directly by the retirement system, pension fund, or investment board (which shall not include any fees, commissions, penalties, and other compensation payable from the assets of the fund-of-funds or separate account); (iii) a description (or method of calculation) of the fees and expenses payable by the Fund to the investment adviser and the timing of the payment of the fees or expenses; and (iv) a description (or method of calculation) of any carried interest or other performance based interests, fees, or payments allocable by the Fund to the investment adviser or an affiliate of the investment adviser and the priority of distributions with respect to such interest. (b) A description of every contract for qualified fund-of-fund management services must be posted in a conspicuous manner on the web site of the retirement system, pension fund, or investment board. The description must include the name of the fund-of-funds, the name of its investment adviser, the total investment commitment of the retirement system, pension fund, or investment board to invest in such fund-of-funds, and a disclosure approved by the board describing the factors that contributed to the investment in such fund-of-funds. No information that is exempt from inspection pursuant to Section 7 of the Freedom of Information Act shall be disclosed under this Section.
(Source: P.A. 96-1554, eff. 3-18-11.) |
(40 ILCS 5/1-113.16)
Sec. 1-113.16. Investment transparency. (a) The purpose of this Section is to provide for transparency in the investment of retirement or pension funds and require the reporting of full and complete information regarding the investments by pension funds, retirement systems, and investment boards. (b) A retirement system, pension fund, or investment board subject to this Code and any committees established by such system, fund, or board must comply with the Open Meetings Act. (c) Any retirement system, pension fund, or investment board subject to this Code that establishes a committee shall ensure that the majority of the members on such committee are board members. If any member of a committee is not a member of the board for the system, fund, or board, then that committee member shall be a fiduciary. (d) A retirement system, pension fund, or investment board subject to this Code, except those whose investments are restricted by Section 1-113.2, shall maintain an official web site and make available in a clear and conspicuous manner, and update at least quarterly, all of the following information concerning the investment of funds: (1) The total amount of funds held by the pension | ||
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(2) The asset allocation for the investments made by | ||
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(3) Current and historic return information. (4) A detailed listing of the investment advisers for | ||
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(5) Performance of investments compared against | ||
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(6) A detailed list of all consultants doing business | ||
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(7) A detailed list of all contractors, other than | ||
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(8) Any requests for investment services. (9) The names and email addresses of all board | ||
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(10) The report required under Section 1-109.1 of | ||
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(11) The description of each contract required under | ||
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(e) A pension fund whose investments are restricted by Section 1-113.2 of this Code shall make the information required in subsection (d) of this Section available on its web site or in a location that allows the information to be available for inspection by the public. (f) Nothing in this Section requires the pension fund, retirement system, or investment board to make information available on the Internet that is exempt from inspection and copying under the Freedom of Information Act.
(Source: P.A. 96-6, eff. 4-3-09.) |
(40 ILCS 5/1-113.17) Sec. 1-113.17. Investment sustainability. Every retirement system, pension fund, or investment board subject to this Code shall adopt a written investment policy and file a copy of that policy with the Department of Insurance within 30 days after its adoption. Whenever a board changes its investment policy, it shall file a copy of the new policy with the Department within 30 days. The investment policy shall include material, relevant, and decision-useful sustainability factors to be considered by the board, within the bounds of financial and fiduciary prudence, in evaluating investment decisions. Such factors shall include, but are not limited to: (1) corporate governance and leadership factors; (2) environmental factors; (3) social capital factors; (4) human capital factors; and (5) business model and innovation factors, as provided under the Illinois Sustainable Investing Act.
(Source: P.A. 101-473, eff. 1-1-20.) |
(40 ILCS 5/1-113.18)
Sec. 1-113.18. Ethics training. All board members of a retirement system, pension fund, or investment board created under this Code must attend ethics training of at least 8 hours per year. The training required under this Section shall include training on ethics, fiduciary duty, and investment issues and any other curriculum that the board of the retirement system, pension fund, or investment board establishes as being important for the administration of the retirement system, pension fund, or investment board. The Supreme Court of Illinois shall be responsible for ethics training and curriculum for judges designated by the Court to serve as members of a retirement system, pension fund, or investment board.
Each board shall annually certify its members' compliance with this Section and submit an annual certification to the Public Pension Division of the Department of Insurance. Judges shall annually certify compliance with the ethics training requirement and shall submit an annual certification to the Chief Justice of the Supreme Court of Illinois. For an elected or appointed trustee under Article 3 or 4 of this Code, fulfillment of the requirements of Section 1-109.3 satisfies the requirements of this Section.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/1-113.20) Sec. 1-113.20. Investment strategies; explicit and implicit costs. Every pension fund, retirement system, and investment board created under this Code, except those whose investments are restricted by Section 1-113.2 of this Code, shall instruct the fund's, system's, or board's investment advisors to utilize investment strategies designed to ensure that all securities transactions are executed in such a manner that the total explicit and implicit costs and total proceeds in every transaction are the most favorable under the circumstances.
(Source: P.A. 96-753, eff. 8-25-09.) |
(40 ILCS 5/1-113.21) Sec. 1-113.21. Contracts for services. (a) Beginning January 1, 2015, no contract, oral or written, for investment services, consulting services, or commitment to a private market fund shall be awarded by a retirement system, pension fund, or investment board established under this Code unless the investment advisor, consultant, or private market fund first discloses: (1) the number of its investment and senior staff and | ||
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(2) the number of contracts, oral or written, for | ||
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(3) the number of contracts, oral or written, for | ||
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(b) The disclosures required by this Section shall be considered, within the bounds of financial and fiduciary prudence, prior to the awarding of a contract, oral or written, for investment services, consulting services, or commitment to a private market fund. (c) For the purposes of this Section, the terms "minority person", "woman", "person
with a disability", "minority-owned business", "women-owned business", and
"business owned by a person with a disability" have the same meaning as those
terms have in the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act. (d) For purposes of this Section, the term "private market fund" means any private equity fund, private equity fund of funds, venture capital fund, hedge fund, hedge fund of funds, real estate fund, or other investment vehicle that is not publicly traded.
(Source: P.A. 100-391, eff. 8-25-17.) |
(40 ILCS 5/1-113.22) Sec. 1-113.22. Required disclosures from consultants; minority-owned businesses, women-owned businesses, and businesses owned by persons with a disability. (a) No later than January 1, 2018 and each January 1 thereafter, each consultant retained by the board of a retirement system, board of a pension fund, or investment board shall disclose to that board of the retirement system, board of the pension fund, or investment board: (1) the total number of searches for investment | ||
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(2) the total number of searches for investment | ||
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(3) the total number of searches for investment | ||
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(4) the total number of searches for investment | ||
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(5) the total dollar amount of investment made in the | ||
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(b) Beginning January 1, 2018, no contract, oral or written, for consulting services shall be awarded by a board of a retirement system, a board of a pension fund, or an investment board without first requiring the consultant to make the disclosures required in subsection (a) of this Section. (c) The disclosures required by subsection (b) of this Section shall be considered, within the bounds of financial and fiduciary prudence, prior to the awarding of a contract, oral or written, for consulting services. (d) As used in this Section, the terms "minority person", "woman", "person with a disability", "minority-owned business", "women-owned business", and "business owned by a person with a disability" have the same meaning as those terms have in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.
(Source: P.A. 100-542, eff. 11-8-17; 100-863, eff. 8-14-18.) |
(40 ILCS 5/1-113.23) Sec. 1-113.23. Required disclosures from consultants; compensation and economic opportunity received. (a) As used in this Section: "Compensation" means any money, thing of value, or economic benefit conferred on, or received by, a consultant in return for services rendered, or to be rendered, by himself, herself, or another. "Economic opportunity" means any purchase, sale, lease, contract, option, or other transaction or arrangement involving property or services wherein a consultant may gain an economic benefit. (b) No later than January 1, 2018 and each January 1 thereafter, a consultant retained by the board of a retirement system, the board of a pension fund, or an investment board shall disclose to the board of the retirement system, the board of the pension fund, or the investment board all compensation and economic opportunity received in the last 24 months from investment advisors retained by the board of a retirement system, board of a pension fund, or investment board. (c) Beginning January 1, 2018, a consultant shall disclose to the board of a retirement system, the board of a pension fund, or an investment board any compensation or economic opportunity received in the last 24 months from an investment advisor that is recommended for selection by the consultant. A consultant shall make this disclosure prior to the board selecting an investment advisor for appointment. (d) Beginning January 1, 2018, no contract, oral or written, for consulting services shall be awarded by a board of a retirement system, board of a pension fund, or an investment board without first requiring the consultant to make the disclosures required in subsection (c) of this Section.
(Source: P.A. 100-542, eff. 11-8-17.) |
(40 ILCS 5/1-113.24) Sec. 1-113.24. Contracts for investment services with emerging investment managers through a qualified manager of emerging investment managers services. (a) As used in this Section: "Emerging investment manager" has the meaning given to that term in subsection (4) of Section 1-109.1. "Investment services" has the meaning given to that term in Section 1-113.14. "Qualified manager of emerging investment managers services" means the services of an investment adviser acting in its capacity as an investment manager of a multimanager portfolio made up of emerging investment managers. (b) Consistent with the requirements of Section 1-113.14, all contracts for investment services shall be awarded by the board of a pension fund or retirement system or investment board using a competitive process that is substantially similar to the process required for the procurement of professional and artistic services under Article 35 of the Illinois Procurement Code; however, an exception to the requirements of Section 1-113.14 shall be allowed for contracts for investment services with an emerging investment manager provided through a qualified manager of emerging investment managers services. Based upon a written recommendation from an investment adviser providing qualified manager of emerging investment managers services for the selection or appointment of an emerging investment manager that has been providing investment services in the multimanager portfolio for at least 24 months, the board of a pension fund or retirement system or investment board may select or appoint such emerging investment manager. All exceptions to Section 1-113.14 granted under this Section must be published on the pension fund's, retirement system's, or investment board's website, which shall name the person authorizing the procurement and shall include a brief explanation of the reason for the exception. (c) A qualified manager of emerging investment managers services shall comply with the requirements regarding written contracts set forth in subsection (c) of Section 1-113.14.
(Source: P.A. 102-97, eff. 1-1-22.) |
(40 ILCS 5/1-114) (from Ch. 108 1/2, par. 1-114)
Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any person who is a fiduciary with respect to a retirement system or
pension fund established under this Code who breaches any duty
imposed upon fiduciaries by this Code, including, but not limited to, a failure to report a reasonable suspicion of a false statement specified in Section 1-135 of this Code, shall be personally liable to make
good to such retirement system or pension fund any losses to it resulting
from each such breach, and to restore to such retirement system or pension
fund any profits of such fiduciary which have been made through use of assets
of the retirement system or pension fund by the fiduciary, and shall be
subject to such equitable or remedial relief as the court may deem appropriate,
including the removal of such fiduciary.
(b) No person shall be liable with respect to a breach of fiduciary duty
under this Code if such breach occurred before such person became a fiduciary
or after such person ceased to be a fiduciary.
(Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/1-115) (from Ch. 108 1/2, par. 1-115)
Sec. 1-115. Civil enforcement. A civil action may be brought by the
Attorney General or by a participant, beneficiary or fiduciary in order to:
(a) Obtain appropriate relief under Section 1-114 of | ||
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(b) Enjoin any act or practice which violates any | ||
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(c) Obtain other appropriate equitable relief to | ||
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Notwithstanding any other provision of the Administrative Review Law or this Code to the contrary, a civil action may be brought by the Attorney General to enjoin the payment of benefits under this Code to any person who is convicted of any felony relating to or arising out of or in connection with that person's service as an employee under this Code. (Source: P.A. 98-1137, eff. 6-1-15.)
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(40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
Sec. 1-116.
Federal contribution and benefit limitations.
(a) This Section applies to all pension funds
and retirement systems established under this Code.
(a-5) All pension funds and retirement systems established under this
Code shall comply with the applicable contribution and benefit limitations
imposed by Section 415 of the U.S. Internal Revenue Code of 1986 for tax
qualified plans under Section 401(a) of that Code.
(b) If any benefit payable by a pension fund or retirement system
subject to this Section exceeds the applicable benefit limits set by
Section 415 of the U.S. Internal Revenue Code of 1986 for tax qualified
plans under Section 401(a) of that Code, the excess shall be payable only
from an excess benefit fund established under this Section in accordance
with federal law.
(c) An excess benefit fund shall be established by any pension fund or
retirement system subject to this Section that has any member eligible to
receive a benefit that exceeds the applicable benefit limits set by Section
415 of the U.S. Internal Revenue Code of 1986 for tax qualified plans under
Section 401(a) of that Code. Amounts shall be credited to the excess benefit
fund, and payments for excess benefits made from the excess benefit fund, in
a manner consistent with the applicable federal law.
(d) For purposes of matters relating to the benefit limits set by Section
415 of the U.S. Internal Revenue Code of 1986, the limitation year may be
defined by each affected pension fund or retirement system for that fund or
system.
(Source: P.A. 90-19, eff. 6-20-97; 91-887, eff. 7-6-00.)
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(40 ILCS 5/1-116.1)
Sec. 1-116.1.
Required distributions.
Notwithstanding any other provision
of this Code, all pension funds and retirement systems established under
Articles 2 through 18 of this Code have the authority to make any
involuntary distributions that are required by federal law under Section
401(a)(9) of the Internal Revenue Code of 1986, as now or hereafter amended. A
distribution shall be deemed to be required if failure to make the distribution
could affect the qualified plan status of the pension fund or retirement system
or could result in the imposition of a substantial penalty on the taxpayer or
on the pension fund or retirement system.
(Source: P.A. 89-136, eff. 7-14-95.)
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(40 ILCS 5/1-117)
Sec. 1-117.
Annual earnings limitation.
(a) Notwithstanding any other provision of this Code, except as provided in
subsection (b), beginning on the first day of the plan year beginning in 1996,
the annual earnings of a person that may be taken into account in any year
for any purpose under this Code shall not exceed the maximum dollar limitation
specified in Section 401(a)(17) of the Internal Revenue Code of 1986, as that
Section may be amended from time to time and as that compensation limit may be
adjusted from time to time by the Commissioner of Internal Revenue.
(b) In the case of a person who first began participating in a pension fund
or retirement system governed by this Code before the first day of the plan
year beginning in 1996, the dollar limitation under Section 401(a)(17) of the
Internal Revenue Code of 1986 does not apply to the extent that the earnings
that may be taken into account by that fund or system under this Code would be
reduced below the amount that was allowed to be taken into account under its
governing Article of this Code or under Article 1 or Article 20 of this Code,
as those Articles were in effect on July 1, 1993.
(c) This Section takes effect on December 31, 1995.
(Source: P.A. 89-136, eff. 12-31-95.)
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(40 ILCS 5/1-118)
Sec. 1-118. Veterans' rights. (a) All pension funds and retirement systems
subject to this Code shall comply with the requirements imposed on them by the
federal Uniformed Services Employment and Reemployment Rights Act (P.L.
103-353).
(b) All pension funds and retirement systems subject to this Code shall comply with the federal Heroes Earnings Assistance and Relief Tax Act of 2008 (P.L. 110-245). (Source: P.A. 97-530, eff. 8-23-11.)
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(40 ILCS 5/1-119)
Sec. 1-119. Qualified Illinois Domestic Relations Orders.
(a) For the purposes of this Section:
(1) "Alternate payee" means the spouse, former | ||
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(2) "Death benefit" means any nonperiodic benefit | ||
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(3) "Disability benefit" means any periodic or | ||
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(4) "Member" means any person who participates in or | ||
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(5) "Member's refund" means a return of all or a | ||
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(5.5) "Permissive service" means service credit | ||
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(6) "Qualified Illinois Domestic Relations Order" or | ||
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(7) "Regular payee" means the person to whom a | ||
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(7.5) "Regular service" means service credit earned | ||
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(8) "Retirement benefit" means any periodic or | ||
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(9) "Retirement system" or "system" means any | ||
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(10) "Surviving spouse" means the spouse of a member | ||
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(11) "Survivor's benefit" means any periodic benefit | ||
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(b) (1) An Illinois court of competent jurisdiction in a proceeding for
declaration of invalidity of marriage, legal separation, or dissolution of
marriage that provides for support or the distribution of property, or any proceeding to
amend or enforce such support or property distribution, may order that all or any part
of any (i) member's retirement benefit, (ii) member's refund payable to or on behalf
of the member, or (iii) death benefit, or portion thereof, that would otherwise be payable to the member's death benefit beneficiaries or estate be instead paid by the retirement system to the
alternate payee.
(2) An order issued under this Section provides only for the diversion to
an alternate payee of certain benefits otherwise payable by the retirement
system under the provisions of this Code. The existence of a QILDRO shall
not cause the retirement system to pay any benefit, or any amount of benefit,
to an alternate payee that would not have been payable by the system to a
regular payee in the absence of the QILDRO.
(3) A QILDRO shall not affect the vesting, accrual, or amount of any
benefit, nor the date or conditions upon which any benefit becomes payable,
nor the right of the member or the member's survivors to make any election
otherwise authorized under this Code, except as provided in subsections (i)
and (j).
(4) A QILDRO shall not apply to or affect the payment of any survivor's
benefit, disability benefit, life insurance benefit, or health
insurance benefit.
(c) (1) A QILDRO must contain the name, mailing
address, and social
security number of the member and of the alternate payee and must identify
the retirement system to which it is directed and the court issuing the order.
(2) A QILDRO must specify each benefit to which it applies, and it must
specify the amount of the benefit to be paid to the alternate payee. In the case of a non-periodic benefit, this amount must be specified as a dollar amount or as a percentage as specifically provided in subsection (n). In the case of a periodic benefit, this amount must be specified as a dollar amount per month or as a percentage per month as specifically provided in subsection (n).
(3) With respect to each benefit to which it applies, a QILDRO must specify
when the order will take effect. In the case of a lump sum benefit payable to an alternate payee of a participant in the self-managed plan authorized under Article 15 of this Code, the benefit shall be paid upon the proper request of the alternate payee. In the case of a periodic benefit that is
being paid at the time the order is received, a QILDRO shall take effect
immediately or on a specified later date; if it takes effect
immediately, it shall become effective on the first benefit payment date
occurring at least 30 days after the order is received by the retirement
system. In the case of any other benefit, a QILDRO shall take effect when
the benefit becomes payable, unless some later date is specified pursuant to subsection (n).
However, in no event shall a QILDRO apply to any benefit paid by the retirement
system before or within 30 days after the order is received. A retirement
system may adopt rules to prorate the amount of the first and final periodic
payments to an alternate payee.
(4) A QILDRO must also contain any provisions required under subsection (n)
or (p).
(5) If a QILDRO indicates that the alternate payee is to receive a percentage of any retirement system benefit, the calculations required shall be performed by the member, the alternate payee, their designated representatives or their designated experts. The results of said calculations shall be provided to the retirement system via a QILDRO Calculation Court Order issued by an Illinois court of competent jurisdiction in a proceeding for declaration of invalidity of marriage, legal separation, or dissolution of marriage. The QILDRO Calculation Court Order shall follow the form provided in subsection (n-5). The retirement system shall have no duty or obligation to assist in such calculations or in completion of the QILDRO Calculation Court Order, other than to provide the information required to be provided pursuant to subsection (h). (6) Within 45 days after the receipt of a QILDRO Calculation Court Order, the retirement system shall notify the member and the alternate payee (or one designated representative of each) of the receipt of the Order. If a valid QILDRO underlying the QILDRO Calculation Court Order has not been filed with the retirement system, or if the QILDRO Calculation Court Order does not clearly indicate the amount the retirement system is to pay to the alternate payee, then the retirement system shall at the same time notify the member and the alternate payee (or one designated representative of each) of the situation. Unless a valid QILDRO has not been filed with the retirement system, or the QILDRO Calculation Court Order does not clearly indicate the amount the retirement system is to pay the alternate payee, the retirement system shall implement the QILDRO based on the QILDRO Calculation Court Order as soon as administratively possible once benefits are payable. The retirement system shall have no obligation to make any determination as to whether the calculations in the QILDRO Calculation Court Order are accurate or whether the calculations are in accordance with the parties' QILDRO, agreement, or judgment. The retirement system shall not reject a QILDRO Calculation Court Order because the calculations are not accurate or not in accordance with the parties' QILDRO, agreement, or judgment. The retirement system shall have no responsibility for the consequences of its implementation of a QILDRO Calculation Court Order that is inaccurate or not in accordance with the parties' QILDRO, agreement, or judgment.
(d) (1) An order issued under this Section shall not be implemented
unless a certified copy of the order has been filed with the retirement
system. The system shall promptly notify the member and the alternate
payee by first class mail of its receipt of the order.
(2) Neither the retirement system, nor its board, nor any of its employees
shall be liable to the member, the regular payee, or any other person for
any amount of a benefit that is paid in good faith to an alternate payee in
accordance with a QILDRO.
(3) Each new or modified QILDRO or QILDRO Calculation Court Order that is submitted to the retirement system
shall be accompanied by a nonrefundable $50 processing fee payable to the
retirement system, to be used by the system to defer any administrative costs
arising out of the implementation of the order.
(e) (1) Each alternate payee is responsible for maintaining a current
mailing address on file with the retirement system. The retirement
system shall have no duty to attempt to locate any alternate payee by any
means other than sending written notice to the last known address of the
alternate payee on file with the system.
(2) In the event that the system cannot locate an alternate payee when a
benefit becomes payable, the system shall hold the amount of the benefit
payable to the alternate payee and make payment to the alternate payee
if he or she is located within the following 180 days. If the alternate
payee has not been located within 180 days from the date the benefit
becomes payable, the system shall pay the benefit and the amounts held
to the regular payee. If the alternate payee is subsequently
located, the system shall thereupon implement the QILDRO, but the interest
of the alternate payee in any amounts already paid to the regular payee
shall be extinguished. Amounts held under this subsection shall
not bear interest.
(f) (1) If the amount of a benefit that is specified in a QILDRO or QILDRO Calculation Court Order for
payment to an alternate payee exceeds the actual amount of that benefit
payable by the retirement system, the excess shall be disregarded. The
retirement system shall have no liability to any alternate payee or any
other person for the disregarded amounts.
(2) In the event of multiple QILDROs against a member, the retirement
system shall honor all of the QILDROs to the extent possible. However, if the
total amount of a benefit to be paid to alternate payees under all
QILDROs in effect against the member exceeds the actual amount of that
benefit payable by the system, the QILDROs shall be satisfied in the order
of their receipt by the system until the amount of the benefit is
exhausted, and shall not be adjusted pro rata. Any amounts that cannot be
paid due to exhaustion of the benefit shall remain unpaid, and the
retirement system shall have no liability to any alternate payee or any
other person for such amounts.
(3) A modification of a QILDRO shall be filed with the retirement system in
the same manner as a new QILDRO. A modification that does not increase the
amount of any benefit payable to the alternate payee, as that amount was designated in the QILDRO, and does not expand the
QILDRO to affect any benefit not affected by the unmodified QILDRO, does not
affect the priority of payment under subdivision (f)(2); the priority of
payment of a QILDRO that has been modified to increase the amount of any
benefit payable to the alternate payee, or to expand the QILDRO to affect a
benefit not affected by the unmodified QILDRO, shall be based on the date on
which the system receives the modification of the QILDRO.
(4) A modification of a QILDRO Calculation Court Order shall be filed with the retirement system in the same manner as a new QILDRO Calculation Court Order.
(g) (1) Upon the death of the alternate payee under a QILDRO, the QILDRO
shall expire and cease to be effective, and in the absence of another
QILDRO, the right to receive any affected benefit shall revert to the
regular payee.
(2) All QILDROs relating to a member's participation in a particular
retirement system shall expire and cease to be effective upon the issuance
of a member's refund that terminates the member's participation in that
retirement system, without regard to whether the refund was paid to the
member or to an alternate payee under a QILDRO. An expired QILDRO shall
not be automatically revived by any subsequent return by the member to service
under that retirement system.
(h) (1) Within 45 days after receiving a subpoena from any party to a
proceeding for declaration of invalidity of marriage, legal separation, or
dissolution of marriage in which a QILDRO may be issued, or after receiving a
request from the member, a retirement system shall provide in response a statement
of a member's accumulated contributions, accrued benefits, and other
interests in the plan administered by the retirement system based on the data
on file with the system on the date the subpoena is received. If so requested in the subpoena, the retirement system shall also provide in response general retirement plan information available to a member and
any
relevant procedures, rules, or modifications to the model QILDRO form
that have been adopted by the retirement system.
(1.5) If a QILDRO provides for the alternate payee to receive a percentage of a retirement benefit (as opposed to providing for the alternate payee to receive specified dollar amounts of a retirement benefit), then the retirement system shall provide the applicable information to the member and to the alternate payee, or to one designated representative of each (e.g., the member's attorney and the alternate payee's attorney) as indicated below: (A) If the member is a participant in the | ||
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(B) For all situations except that situation | ||
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(i) The date of the member's initial membership | ||
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(ii) The amount of permissive and regular service | ||
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(iii) The gross amount of the member's | ||
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(iv) The gross amount of the member's refund or | ||
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(v) The gross amount of the death benefits that | ||
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(vi) Whether the member has notified the | ||
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(vii) If the member has provided a date that he | ||
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(C) For all situations except that situation | ||
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(i) The member's effective date of retirement.
(ii) The date the member commenced benefits or, | ||
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(iii) The amount of permissive and regular | ||
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(iv) The gross amount of the member's monthly | ||
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(v) The gross amount of the member's refund or | ||
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(vi) The gross amount of death benefits that | ||
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(D) If, and only if, the alternate payee is entitled | ||
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(2) In no event shall the retirement system be required to furnish to any
person an actuarial opinion as to the present value of the member's benefits or
other interests.
(3) The papers, entries, and records, or parts thereof, of any retirement
system may be proved by a copy thereof, certified under the signature of the
secretary of the system or other duly appointed keeper of the records of the
system and the corporate seal, if any.
(i) In a retirement system in which a member or beneficiary is
required to apply to the system for payment of a benefit, the required
application may be made by an alternate payee who is entitled to all
of a termination refund or retirement benefit or part of a death benefit that is payable
under a QILDRO, provided that all other
qualifications and requirements have been met. However, the alternate payee
may not make the required application for death benefits while the member is alive or for a member's refund or a retirement
benefit if the member is in active service or below the minimum age for
receiving an undiscounted retirement annuity in the retirement system that has
received the QILDRO or in any other retirement system in which the member has
regular or permissive service and in which the member's rights under the Retirement
Systems Reciprocal Act would be affected as a result of the alternate payee's
application for a member's refund or retirement benefit.
(j) (1) So long as there is in effect a QILDRO relating to a member's
retirement benefit, the affected member may not elect a form of payment that
has the effect of diminishing the amount of the payment to which any alternate
payee is entitled, unless the alternate payee has consented to the election in
a
writing that includes the alternate payee's notarized signature, and this written and notarized consent has been filed with the retirement system.
(2) If a member attempts to make an election prohibited under subdivision
(j)(1), the retirement system shall reject the election and advise the member
of the need to obtain the alternate payee's consent.
(3) If a retirement system discovers that it has mistakenly allowed an
election prohibited under subdivision (j)(1), it shall thereupon disallow that
election and recalculate any benefits affected thereby. If the system
determines that an amount paid to a regular payee should have been paid to an
alternate payee, the system shall, if possible, recoup the amounts as provided
in subsection (k) of this Section.
(k) In the event that a regular payee or an alternate payee is overpaid, the
retirement system shall have the authority to and shall recoup the amounts by deducting the overpayment from
future payments and making payment to the other payee. The system may make
deductions for recoupment over a period of time in the same manner as is
provided by law or rule for the recoupment of other amounts incorrectly
disbursed by the system in instances not involving a QILDRO. The retirement
system shall incur no liability to either the alternate payee or the regular
payee as a result of any payment made in good faith, regardless of whether the
system is able to accomplish recoupment.
(l) (1) A retirement system that has, before the effective date of this
Section, received and implemented a domestic relations order that directs
payment of a benefit to a person other than the regular payee may continue
to implement that order, and shall not be liable to the regular payee for
any amounts paid in good faith to that other person in accordance with
the order.
(2) A domestic relations order directing payment of a benefit to a
person other than the regular payee that was issued by a court but not
implemented by a retirement system prior to the effective date of this
Section shall be void. However, a person who is the beneficiary or alternate
payee of a domestic relations order that is rendered void under this subsection
may petition the court that issued the order for an amended order that complies
with this Section.
(3) A retirement system that received a valid QILDRO before the effective date of this amendatory Act of the 94th General Assembly shall continue to implement the QILDRO and shall not be liable to any party for amounts paid in good faith pursuant to the QILDRO.
(m) (1) In accordance with Article XIII, Section 5 of the Illinois
Constitution, which prohibits the impairment or diminishment of benefits
granted under this Code, a QILDRO issued against a member of a retirement
system established under an Article of this Code that exempts the payment of
benefits or refunds from attachment, garnishment, judgment or other legal
process shall not be effective without the written consent of the member if the
member began participating in the retirement system on or before the effective
date of this Section. That consent must specify the retirement system, the
court case number, and the names and social security numbers of the member and
the alternate payee. The consent must accompany the QILDRO when it is filed
with the retirement system, and must be in substantially the following form:
CONSENT TO ISSUANCE OF QILDRO
Case Caption: ...................................
Court Case Number: ....................
Member's Name: ..................................
Member's Social Security Number: ........................
Alternate payee's Name: .........................
Alternate payee's Social Security Number: ...............
I, (name), a member of the (retirement system), hereby irrevocably consent to the
issuance of a Qualified Illinois Domestic Relations Order. I understand
that under the Order, certain benefits that would otherwise be payable to me,
or to my death benefit beneficiaries
or estate, will instead be payable to (name of
alternate payee). I also understand that my right to elect certain forms of
payment of my retirement benefit or member's refund may be limited as a result
of the Order.
DATED:.......................
SIGNED:......................
(2) A member's consent to the issuance of a QILDRO shall be irrevocable,
and shall apply to any QILDRO that pertains to the alternate payee and
retirement system named in the consent.
(n) A QILDRO
issued under this Section shall be in substantially the
following form (omitting any provisions that are not applicable to benefits that are or may be ultimately payable to the member):
QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER
...................................
(Enter Case Caption Here)
...................................(Enter Retirement System Name Here) THIS CAUSE coming before the Court for the purpose of the entry of a Qualified Illinois Domestic Relations Order under the provisions of Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119), the Court having jurisdiction over the parties and the subject matter hereof; the Court finding that one of the parties to this proceeding is a member of a retirement system subject to Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119), this Order is entered to implement a division of that party's interest in the retirement system; and the Court being fully advised;
IT IS HEREBY ORDERED AS FOLLOWS: I. The definitions and other provisions of Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119) are adopted by reference and made a part of this Order. II. Identification of Retirement System and parties:
Retirement System: ............................
(Name) ............................ (Address)
Member:
............................
(Name) ............................ (Mailing Address) ............................ (Social Security Number)
Alternate payee: ............................
(Name) ............................ (Mailing Address) ............................ (Social Security Number) The alternate payee is the member's .... current or former spouse/ .... child or other dependent [check one].
III. The Retirement System shall pay the indicated amounts of the member's retirement benefits to the alternate payee under the following terms and conditions: (A) The Retirement System shall pay the alternate | ||
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(1) $...... per month [enter amount]; or (2) .......% [enter percentage] per month of the | ||
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(3) ........% [enter percentage] per month of the | ||
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(B) If the member's retirement benefit has already | ||
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(1) .... as soon as administratively possible | ||
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(2) .... on the date of ........ [enter any | ||
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(C) If the member's retirement benefit has not yet | ||
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(D) Payments to the alternate payee under this | ||
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(1) .... upon the death of the member or the | ||
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(2) .... after ........ payments are made to the | ||
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IV. If the member's retirement benefits are subject to annual post-retirement increases, the alternate payee's share of said benefits .... shall/ .... shall not [check one] be recalculated or increased annually to include a proportionate share of the applicable annual increases. V. The Retirement System shall pay to the alternate payee the indicated amounts of any refund upon termination or any lump sum retirement benefit that becomes payable to the member, under the following terms and conditions: (A) The Retirement System shall pay the alternate | ||
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(1) $..... [enter amount]; or (2) .....% [enter percentage] of the marital | ||
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(3) ......% [enter percentage] of the gross | ||
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(B) The amount payable to an alternate payee under | ||
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(C) The alternate payee's share of the refund or lump | ||
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VI. The Retirement System shall pay to the alternate payee the indicated amounts of any partial refund that becomes payable to the member under the following terms and conditions: (A) The Retirement System shall pay the alternate | ||
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(1) $...... [enter amount]; or (2) ......% [enter percentage] of the marital | ||
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(3) ......% [enter percentage] of the gross | ||
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(B) The amount payable to an alternate payee under | ||
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(C) The alternate payee's share of the refund under | ||
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VII. The Retirement System shall pay to the alternate payee the indicated amounts of any death benefits that become payable to the member's death benefit beneficiaries or estate under the following terms and conditions: (A) To the extent and only to the extent required to | ||
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(1) $...... [enter amount]; or (2) ......% [enter percentage] of the marital | ||
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(3) ......% [enter percentage] of the gross | ||
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(B) The amount payable to an alternate payee under | ||
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(C) The alternate payee's share of death benefits | ||
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VIII. If this Order indicates that the alternate payee is to receive a percentage of any retirement benefit or refund, upon receipt of the information required to be provided by the Retirement System under Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119), the calculations required shall be performed by the member, by the alternate payee, or by their designated representatives or designated experts. The results of the calculations shall be provided to the Retirement System via a QILDRO Calculation Court Order in accordance with Section 1-119 of the Illinois Pension Code. IX. Marital Portion Benefit Calculation Formula (Option to calculate benefit in items III(A)(2), V(A)(2), VI(A)(2), and VII(A)(2) above). If in this Section "other" is circled in the definition of A, B, or C, then a supplemental order must be entered simultaneously with this QILDRO clarifying the intent of the parties or the Court as to that item. The supplemental order cannot require the Retirement System to take any action not permitted under Illinois law or the Retirement System's administrative rules. To the extent that the supplemental order does not conform to Illinois law or administrative rule, it shall not be binding upon the Retirement System. (1) The amount of the alternate payee's benefit shall | ||
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"A" equals the number of months of .... regular/ | ||
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"B" equals the number of months of .... regular/ | ||
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"C" equals the gross amount of: (i) the member's monthly retirement benefit | ||
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(ii) the member's refund payable upon | ||
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(iii) the member's partial refund, including | ||
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(iv) the death benefit payable to the | ||
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whichever are applicable pursuant to Section III, V, | ||
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"D" equals the percentage noted in Section | ||
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(2) The alternate payee's benefit under this Section | ||
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X. In accordance with subsection (j) of Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119), so long as this QILDRO is in effect, the member may not elect a form of payment of the retirement benefit that has the effect of diminishing the amount of the payment to which the alternate payee is entitled, unless the alternate payee has consented to the election in writing, the consent has been notarized, and the consent has been filed with the Retirement System. XI. If the member began participating in the Retirement System before July 1, 1999, this Order shall not take effect unless accompanied by the written consent of the member as required under subsection (m) of Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119). XII. The Court retains jurisdiction over this matter for all of the following purposes: (1) To establish or maintain this Order as a | ||
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(2) To enter amended QILDROs and QILDRO Calculation | ||
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(3) To enter supplemental orders to clarify the | ||
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DATED: ...................... SIGNED: ..................... [Judge's Signature]
(n-5) A QILDRO Calculation Court Order issued under this Section shall be in substantially the following form:
QILDRO Calculation Court Order...................................
[Enter case caption here]
...................................[Enter Retirement System name here] THIS CAUSE coming before the Court for the purpose of the entry of a QILDRO Calculation Court Order under the provisions of Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119), the Court having jurisdiction over the parties and the subject matter hereof; the Court finding that a QILDRO has previously been entered in this matter, that the QILDRO has been received and accepted by the Retirement System, and that the QILDRO requires percentage calculations to allocate the alternate payee's share of the member's benefit or refund, the Court not having found that the QILDRO has become void or invalid, and the Court being fully advised; IT IS HEREBY ORDERED AS FOLLOWS: (1) The definitions and other provisions of Section 1-119 of the Illinois Pension Code [40 ILCS 5/1-119] are adopted by reference and made a part of this Order. (2) Identification of Retirement System and parties:
Retirement System: ............................
(Name) ............................ (Address)
Member:
............................
(Name) ............................ (Mailing Address) ............................ (Social Security Number)
Alternate payee: ............................
(Name) ............................ (Mailing Address) ............................ (Social Security Number) The Alternate payee is the member's .... current or former spouse/ .... child or other dependent [check one].
(3) The following shall apply if and only if the QILDRO allocated benefits to the alternate payee in the specific Section noted. The Retirement System shall pay the amounts as directed below, but only if and when the benefits are payable pursuant to the QILDRO and Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119). Parties shall see QILDRO Section IX for the definitions of A, B, C and D as used below. (a) The alternate payee's benefit pursuant to QILDRO | ||
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(......./.......) X ....... X .............. = ............[Enter A] [Enter B] [Enter C] [Enter D] [Monthly Amount] (b) The alternate payee's benefit pursuant to QILDRO | ||
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(......./.......) X ....... X .............. = ............[Enter A] [Enter B] [Enter C] [Enter D] [Amount] (c) The alternate payee's benefit pursuant to QILDRO | ||
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(......./.......) X ....... X ............. = ............[Enter A] [Enter B] [Enter C] [Enter D] [Amount] (d) The alternate payee's benefit pursuant to QILDRO | ||
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(......./.......) X ....... X .............. = ............[Enter A] [Enter B] [Enter C] [Enter D] [Amount]The Retirement System's sole obligation with respect to the equations in this paragraph (3) is to pay the amounts indicated as the result of the equations. The Retirement System shall have no obligation to review or verify the equations or to assist in the calculations used to determine such amounts.
(4) The following shall apply only if the QILDRO allocated benefits to the alternate payee in the specific Section noted. The Retirement System shall pay the amounts as directed below, but only if and when the benefits are payable pursuant to the QILDRO and Section 1-119 of the Illinois Pension Code (40 ILCS 5/1-119). (A) The alternate payee's benefit pursuant to QILDRO | ||
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.................... X ............... = .................[Gross benefit amount] [Percentage] [Monthly Amount] (B) The alternate payee's benefit pursuant to QILDRO | ||
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..................... X ............... = .................[Gross benefit amount] [Percentage] [Amount] (C) The alternate payee's benefit pursuant to QILDRO | ||
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..................... X ............... = .................[Gross benefit amount] [Percentage] [Amount] (D) The alternate payee's benefit pursuant to QILDRO | ||
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..................... X ............... = .................[Gross benefit amount] [Percentage] [Amount]The Retirement System's sole obligation with respect to the equations in this paragraph (4) is to pay the amounts indicated as the result of the equations. The Retirement System shall have no obligation to review or verify the equations or to assist in the calculations used to determine such amounts.
(5) The Court retains jurisdiction over this matter for the following purposes: (A) to establish or maintain this Order as a QILDRO | ||
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(B) to enter amended QILDROs and QILDRO Calculation | ||
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(C) To enter supplemental orders to clarify the | ||
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DATED: ...................... SIGNED: ..................... [Judge's Signature]
(o) (1) A court in Illinois that has issued a QILDRO shall retain
jurisdiction of all issues relating to the modification of the QILDRO as indicated in Section XII of the QILDRO and in accordance with Illinois law. A court in Illinois that has issued a QILDRO Calculation Court Order shall retain jurisdiction of all issues relating to the modification of the QILDRO Calculation Court Order as indicated in Section 5 of the QILDRO Calculation Court Order and in accordance with Illinois law. (2) The
Administrative Review Law and the rules adopted pursuant thereto shall govern
and apply to all proceedings for judicial review of final administrative
decisions of the board of trustees of the retirement system arising under this
Section.
The term "administrative decision" is defined as in Section 3-101
of the Code of Civil Procedure. The venue for review under the Administrative
Review Law shall be the same as is provided by law for judicial review of other
administrative decisions of the retirement system.
(p) (1) Each retirement system may adopt any procedures or rules that it
deems necessary or useful for the implementation of this Section.
(2) Each retirement system may by rule modify the model QILDRO form provided
in subsection (n), except that no retirement system may change that form in a way that limits the choices provided to the alternate payee in subsections (n) or (n-5). Each retirement system may by rule
require that additional information be included in
QILDROs presented to the system, as may be necessary to meet the needs of
the retirement system.
(3) Each retirement system shall define its blank model QILDRO form and blank model QILDRO Calculation Court Order form as an original of the forms or a paper copy of the forms. Each retirement system shall, whenever possible, make the forms available on the internet in non-modifiable computer format (for example, Adobe Portable Document Format files) for printing purposes. (4) If a retirement system in good faith implements an order under this Section that follows substantially the same form as the model order and the retirement system later discovers that the implemented order was not absolutely identical to the retirement system's model order, the retirement system's implementation shall not be a violation of this Section and the retirement system shall have no responsibility to compensate the member or the alternate payee for moneys that would have been paid or not paid had the order been identical to the model order.
(Source: P.A. 93-347, eff. 7-24-03; 94-657, eff. 7-1-06.)
|
(40 ILCS 5/1-120)
Sec. 1-120.
Payment to trust.
(a) If a person is a minor or has been
determined by a court to be under a legal disability, any benefits payable
to that person under this Code may be paid to the trustee of a trust created
for the sole benefit of that person while the person is living, if the
trustee of the trust has advised the board of trustees of the pension fund or
retirement system in writing that the benefits will be held or used for the
sole benefit of that person. The pension fund or retirement system shall not
be required to determine the validity of the trust or of any of the terms of
the trust. The representation of the trustee that the trust meets the
requirements of this Section shall be conclusive as to the pension fund or
retirement system. Payment of benefits to the trust shall be an absolute
discharge of the pension fund or retirement system's liability with respect
to the amounts so paid.
(b) For purposes of this Section, "minor" means an unmarried
person under the age of 18.
(c) This Section is not a limitation on any other power to pay benefits to
or on behalf of a minor or person under legal disability that is granted under
this Code or other applicable law.
(Source: P.A. 91-887, eff. 7-6-00.)
|
(40 ILCS 5/1-122)
Sec. 1-122. Service with the Legislative Ethics Commission or Office of the Legislative Inspector General. Notwithstanding any provision in this Code to the contrary, if a person serves as a part-time employee in any of the following positions: Legislative Inspector General, Special Legislative Inspector General, employee of the Office of the Legislative Inspector General, Executive Director of the Legislative Ethics Commission, or staff of the Legislative Ethics Commission, then (A) no retirement annuity or other benefit of that person under this Code is subject to forfeiture, diminishment, suspension, or other impairment solely by virtue of that service and (B) that person does not participate in any pension fund or retirement system under this Code with respect to that service, unless that person (i) is qualified to so participate and (ii) affirmatively elects to so participate. This Section applies without regard to whether the person is in active service under the applicable Article of this Code on or after the effective date of this amendatory Act of the 93rd General Assembly. In this Section, a "part-time employee" is a person who is not required to work at least 35 hours per week.
(Source: P.A. 93-685, eff. 7-8-04.) |
(40 ILCS 5/1-123) Sec. 1-123. Service as legal counsel. Notwithstanding any provision in this Code to the contrary, if a person is a participant under Article 18 and files a written election by July 1, 2005 with the Judges Retirement System of Illinois, then that person may serve either as legal counsel in the Office of the Governor or as Chief Deputy Attorney General and (A) no retirement annuity or other benefit of that person under Article 18 is subject to forfeiture, diminishment, suspension, or other impairment solely by virtue of that service and (B) that person does not participate in any pension fund or retirement system under this Code with respect to that service. This Section applies without regard to whether the person is in active service under Article 18 of this Code on or after the effective date of this amendatory Act of the 93rd General Assembly.
(Source: P.A. 93-1069, eff. 1-15-05.) |
(40 ILCS 5/1-125)
Sec. 1-125. Prohibition on gifts. (a) For the purposes of this Section: "Gift" means a gift as defined in Section 1-5 of the State Officials and Employees Ethics Act. "Prohibited source" means a person or entity who: (i) is seeking official action (A) by the board or | ||
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(ii) does business or seeks to do business (A) with | ||
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(iii) has interests that may be substantially | ||
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(iv) is registered or required to be registered with | ||
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(b) No trustee or employee of a retirement system, pension fund, or investment board created under this Code shall intentionally solicit or accept any gift from any prohibited source as prescribed in Article 10 of the State Officials and Employees Ethics Act. The exceptions contained in Section 10-15 of that Act, other than paragraphs (4) and (5) of that Section shall apply to trustees and employees of a retirement system, pension fund, or investment board created under this Code. Solicitation or acceptance of educational materials, however, is not prohibited. For the purposes of this Section, references to "State employee" and "employee" in Article 10 of the State Officials and Employees Ethics Act shall include a trustee or employee of a retirement system, pension fund, or investment board created under this Code. (c) A municipality may adopt or maintain policies or ordinances that are more restrictive than those set forth in this Section and may continue to follow any existing policies or ordinances that are more restrictive or are in addition to those set forth in this Section. (d) To the extent that the provisions of this Section conflict with the provisions of the State Officials and Employees Ethics Act, the provisions of this Section control. (e) Violation of this Section is a Class A misdemeanor.
(Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.) |
(40 ILCS 5/1-130)
Sec. 1-130. No monetary gain on investments. No member or employee of the board of trustees of any retirement system, pension fund, or investment board created under this Code nor any spouse of such member or employee shall knowingly have any direct interest in the income, gains, or profits of any investments made on behalf of a retirement system, pension fund, or investment board created under this Code for which such person is a member or employee, nor receive any pay or emolument for services in connection with any investment. No member or employee of the board of trustees of any retirement system, pension fund, or investment board created under this Code shall become an endorser or surety, or in any manner an obligor for money loaned or borrowed from any retirement system or pension fund created under this Code or the Illinois State Board of Investment. For the purposes of this Section, an annuity otherwise provided in accordance with this Code or any income, gains, or profits related to any non-controlling interest in any public securities, mutual fund, or other passive investment is not considered monetary gain on investments. Violation of this Section is a Class 3 felony.
(Source: P.A. 96-6, eff. 4-3-09.) |
(40 ILCS 5/1-135)
Sec. 1-135. Fraud. Any person who knowingly makes any false statement or falsifies or permits to be falsified any record of a retirement system or pension fund created under this Code or the Illinois State Board of Investment in an attempt to defraud the retirement system or pension fund created under this Code or the Illinois State Board of Investment is guilty of a Class 3 felony. Any reasonable suspicion by any appointed or elected commissioner, trustee, director, or board member of a retirement system or pension fund created under this Code or the State Board of Investment of a false statement or falsified record being submitted or permitted by a person under this Code shall be immediately referred to the board of trustees of the applicable retirement system or pension fund created under this Code, the State Board of Investment, or the State's Attorney of the jurisdiction where the alleged fraudulent activity occurred. The board of trustees of a retirement system or pension fund created under this Code or the State Board of Investment shall immediately notify the State's Attorney of the jurisdiction where any alleged fraudulent activity occurred for investigation. For the purposes of this Section, "reasonable suspicion" means a belief, based upon specific and articulable facts, taken together with rational inferences from those facts, that would lead a reasonable person to believe that fraud has been, or will be, committed. A reasonable suspicion is more than a non-particularized suspicion. A mere inconsistency, standing alone, does not give rise to a reasonable suspicion.
(Source: P.A. 96-6, eff. 4-3-09; 97-651, eff. 1-5-12.) |
(40 ILCS 5/1-140) Sec. 1-140. Identification of deceased annuitants. Every pension fund or retirement system under this Code, except for a pension fund established under Article 3 or 4 of this Code, shall develop and implement, by no later than June 30, 2017, a process to identify annuitants who are deceased. The process shall require the pension fund or retirement system to check for any deceased annuitants at least once per month and shall include the use of any commonly used methods to identify persons who are deceased, which include, but are not limited to, the use of a third party entity that specializes in the identification of deceased persons, the use of data provided by the Social Security Administration, the use of data provided by the Department of Public Health's Office of Vital Records, or the use of any other method that is commonly used by other states to identify deceased persons.
(Source: P.A. 99-683, eff. 7-29-16.) |
(40 ILCS 5/1-145)
Sec. 1-145. Contingent and placement fees prohibited. No person or entity shall retain a person or entity to attempt to influence the outcome of an investment decision of or the procurement of investment advice or services of a retirement system, pension fund, or investment board of this Code for compensation, contingent in whole or in part upon the decision or procurement. Any person who violates this Section is guilty of a business offense and shall be fined not more than $10,000. In addition, any person convicted of a violation of this Section is prohibited for a period of 3 years from conducting such activities.
(Source: P.A. 96-6, eff. 4-3-09.) |
(40 ILCS 5/1-150)
Sec. 1-150. Approval of travel or educational mission. The expenses for travel or educational missions of a board member of a retirement system, pension fund, or investment board created under this Code, except those whose investments are restricted by Section 1-113.2 of this Code, must be approved by a majority of the board prior to the travel or educational mission.
(Source: P.A. 96-6, eff. 4-3-09.) |
(40 ILCS 5/1-160) (Text of Section from P.A. 102-719) Sec. 1-160. Provisions applicable to new hires. (a) The provisions of this Section apply to a person who, on or after January 1, 2011, first becomes a member or a participant under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this Code, notwithstanding any other provision of this Code to the contrary, but do not apply to any self-managed plan established under this Code or to any participant of the retirement plan established under Section 22-101; except that this Section applies to a person who elected to establish alternative credits by electing in writing after January 1, 2011, but before August 8, 2011, under Section 7-145.1 of this Code. Notwithstanding anything to the contrary in this Section, for purposes of this Section, a person who is a Tier 1 regular employee as defined in Section 7-109.4 of this Code or who participated in a retirement system under Article 15 prior to January 1, 2011 shall be deemed a person who first became a member or participant prior to January 1, 2011 under any retirement system or pension fund subject to this Section. The changes made to this Section by Public Act 98-596 are a clarification of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-889), notwithstanding the provisions of Section 1-103.1 of this Code. This Section does not apply to a person who first becomes a noncovered employee under Article 14 on or after the implementation date of the plan created under Section 1-161 for that Article, unless that person elects under subsection (b) of Section 1-161 to instead receive the benefits provided under this Section and the applicable provisions of that Article. This Section does not apply to a person who first becomes a member or participant under Article 16 on or after the implementation date of the plan created under Section 1-161 for that Article, unless that person elects under subsection (b) of Section 1-161 to instead receive the benefits provided under this Section and the applicable provisions of that Article. This Section does not apply to a person who elects under subsection (c-5) of Section 1-161 to receive the benefits under Section 1-161. This Section does not apply to a person who first becomes a member or participant of an affected pension fund on or after 6 months after the resolution or ordinance date, as defined in Section 1-162, unless that person elects under subsection (c) of Section 1-162 to receive the benefits provided under this Section and the applicable provisions of the Article under which he or she is a member or participant. (b) "Final average salary" means, except as otherwise provided in this subsection, the average monthly (or annual) salary obtained by dividing the total salary or earnings calculated under the Article applicable to the member or participant during the 96 consecutive months (or 8 consecutive years) of service within the last 120 months (or 10 years) of service in which the total salary or earnings calculated under the applicable Article was the highest by the number of months (or years) of service in that period. For the purposes of a person who first becomes a member or participant of any retirement system or pension fund to which this Section applies on or after January 1, 2011, in this Code, "final average salary" shall be substituted for the following: (1) (Blank). (2) In Articles 8, 9, 10, 11, and 12, "highest | ||
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(3) In Article 13, "average final salary". (4) In Article 14, "final average compensation". (5) In Article 17, "average salary". (6) In Section 22-207, "wages or salary received by | ||
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A member of the Teachers' Retirement System of the State of Illinois who retires on or after June 1, 2021 and for whom the 2020-2021 school year is used in the calculation of the member's final average salary shall use the higher of the following for the purpose of determining the member's final average salary: (A) the amount otherwise calculated under the first | ||
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(B) an amount calculated by the Teachers' Retirement | ||
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(b-5) Beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (b-10) Beginning on January 1, 2024, for all purposes under this Code (including, without limitation, the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant under Article 9 to whom this Section applies shall include an annual earnings, salary, or wage cap that tracks the Social Security wage base. Maximum annual earnings, wages, or salary shall be the annual contribution and benefit base established for the applicable year by the Commissioner of the Social Security Administration under the federal Social Security Act. However, in no event shall the annual earnings, salary, or wages for the purposes of this Article and Article 9 exceed any limitation imposed on annual earnings, salary, or wages under Section 1-117. Under no circumstances shall the maximum amount of annual earnings, salary, or wages be greater than the amount set forth in this subsection (b-10) as a result of reciprocal service or any provisions regarding reciprocal services, nor shall the Fund under Article 9 be required to pay any refund as a result of the application of this maximum annual earnings, salary, and wage cap. Nothing in this subsection (b-10) shall cause or otherwise result in any retroactive adjustment of any employee contributions. Nothing in this subsection (b-10) shall cause or otherwise result in any retroactive adjustment of disability or other payments made between January 1, 2011 and January 1, 2024. (c) A member or participant is entitled to a retirement annuity upon written application if he or she has attained age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article. A member or participant who has attained age 62 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article may elect to receive the lower retirement annuity provided in subsection (d) of this Section. (c-5) A person who first becomes a member or a participant subject to this Section on or after July 6, 2017 (the effective date of Public Act 100-23), notwithstanding any other provision of this Code to the contrary, is entitled to a retirement annuity under Article 8 or Article 11 upon written application if he or she has attained age 65 and has at least 10 years of service credit and is otherwise eligible under the requirements of Article 8 or Article 11 of this Code, whichever is applicable. (d) The retirement annuity of a member or participant who is retiring after attaining age 62 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section). (d-5) The retirement annuity payable under Article 8 or Article 11 to an eligible person subject to subsection (c-5) of this Section who is retiring at age 60 with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 65. (d-10) Each person who first became a member or participant under Article 8 or Article 11 of this Code on or after January 1, 2011 and prior to July 6, 2017 (the effective date of Public Act 100-23) shall make an irrevocable election either: (i) to be eligible for the reduced retirement age | ||
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(ii) to not agree to item (i) of this subsection | ||
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The election provided for in this subsection shall be made between October 1, 2017 and November 15, 2017. A person subject to this subsection who makes the required election shall remain bound by that election. A person subject to this subsection who fails for any reason to make the required election within the time specified in this subsection shall be deemed to have made the election under item (ii). (d-15) Each person who first becomes a member or participant under Article 12 on or after January 1, 2011 and prior to January 1, 2022 shall make an irrevocable election either: (i) to be eligible for the reduced retirement age | ||
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(ii) to not agree to item (i) of this subsection | ||
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The election provided for in this subsection shall be made between January 1, 2022 and April 1, 2022. A person subject to this subsection who makes the required election shall remain bound by that election. A person subject to this subsection who fails for any reason to make the required election within the time specified in this subsection shall be deemed to have made the election under item (ii). (e) Any retirement annuity or supplemental annuity shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15); and beginning on July 6, 2017 (the effective date of Public Act 100-23), age 65 with respect to service under Article 8 or Article 11 for eligible persons who: (i) are subject to subsection (c-5) of this Section; or (ii) made the election under item (i) of subsection (d-10) of this Section) or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 102-263 are applicable without regard to whether the employee was in active service on or after August 6, 2021 (the effective date of Public Act 102-263). For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 100-23 are applicable without regard to whether the employee was in active service on or after July 6, 2017 (the effective date of Public Act 100-23). (f) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant who first became a member or participant on or after January 1, 2011 shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death. In the case of the death of a member or participant who has not retired and who first became a member or participant on or after January 1, 2011, eligibility for a survivor's or widow's annuity shall be determined by the applicable Article of this Code. The initial benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A child's annuity of an otherwise eligible child shall be in the amount prescribed under each Article if applicable. Any survivor's or widow's annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the annuity. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. (g) The benefits in Section 14-110 apply if the person is a fire fighter in the fire protection service of a department, a security employee of the Department of Corrections or the Department of Juvenile Justice, or a security employee of the Department of Innovation and Technology, as those terms are defined in subsection (b) and subsection (c) of Section 14-110. A person who meets the requirements of this Section is entitled to an annuity calculated under the provisions of Section 14-110, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 60, regardless of whether the attainment of age 60 occurs while the person is still in service. (g-5) The benefits in Section 14-110 apply if the person is a State policeman, investigator for the Secretary of State, conservation police officer, investigator for the Department of Revenue or the Illinois Gaming Board, investigator for the Office of the Attorney General, Commerce Commission police officer, or arson investigator, as those terms are defined in subsection (b) and subsection (c) of Section 14-110. A person who meets the requirements of this Section is entitled to an annuity calculated under the provisions of Section 14-110, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, regardless of whether the attainment of age 55 occurs while the person is still in service. (h) If a person who first becomes a member or a participant of a retirement system or pension fund subject to this Section on or after January 1, 2011 is receiving a retirement annuity or retirement pension under that system or fund and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, except for those members or participants exempted from the provisions of this Section under subsection (a) of this Section, then the person's retirement annuity or retirement pension under that system or fund shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity or retirement pension payments shall resume and be recalculated if recalculation is provided for under the applicable Article of this Code. If a person who first becomes a member of a retirement system or pension fund subject to this Section on or after January 1, 2012 and is receiving a retirement annuity or retirement pension under that system or fund and accepts on a contractual basis a position to provide services to a governmental entity from which he or she has retired, then that person's annuity or retirement pension earned as an active employee of the employer shall be suspended during that contractual service. A person receiving an annuity or retirement pension under this Code shall notify the pension fund or retirement system from which he or she is receiving an annuity or retirement pension, as well as his or her contractual employer, of his or her retirement status before accepting contractual employment. A person who fails to submit such notification shall be guilty of a Class A misdemeanor and required to pay a fine of $1,000. Upon termination of that contractual employment, the person's retirement annuity or retirement pension payments shall resume and, if appropriate, be recalculated under the applicable provisions of this Code. (i) (Blank). (j) In the case of a conflict between the provisions of this Section and any other provision of this Code, the provisions of this Section shall control.(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff. 5-6-22; 103-529, eff. 8-11-23.) (Text of Section from P.A. 102-813) Sec. 1-160. Provisions applicable to new hires. (a) The provisions of this Section apply to a person who, on or after January 1, 2011, first becomes a member or a participant under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this Code, notwithstanding any other provision of this Code to the contrary, but do not apply to any self-managed plan established under this Code or to any participant of the retirement plan established under Section 22-101; except that this Section applies to a person who elected to establish alternative credits by electing in writing after January 1, 2011, but before August 8, 2011, under Section 7-145.1 of this Code. Notwithstanding anything to the contrary in this Section, for purposes of this Section, a person who is a Tier 1 regular employee as defined in Section 7-109.4 of this Code or who participated in a retirement system under Article 15 prior to January 1, 2011 shall be deemed a person who first became a member or participant prior to January 1, 2011 under any retirement system or pension fund subject to this Section. The changes made to this Section by Public Act 98-596 are a clarification of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-889), notwithstanding the provisions of Section 1-103.1 of this Code. This Section does not apply to a person who first becomes a noncovered employee under Article 14 on or after the implementation date of the plan created under Section 1-161 for that Article, unless that person elects under subsection (b) of Section 1-161 to instead receive the benefits provided under this Section and the applicable provisions of that Article. This Section does not apply to a person who first becomes a member or participant under Article 16 on or after the implementation date of the plan created under Section 1-161 for that Article, unless that person elects under subsection (b) of Section 1-161 to instead receive the benefits provided under this Section and the applicable provisions of that Article. This Section does not apply to a person who elects under subsection (c-5) of Section 1-161 to receive the benefits under Section 1-161. This Section does not apply to a person who first becomes a member or participant of an affected pension fund on or after 6 months after the resolution or ordinance date, as defined in Section 1-162, unless that person elects under subsection (c) of Section 1-162 to receive the benefits provided under this Section and the applicable provisions of the Article under which he or she is a member or participant. (b) "Final average salary" means, except as otherwise provided in this subsection, the average monthly (or annual) salary obtained by dividing the total salary or earnings calculated under the Article applicable to the member or participant during the 96 consecutive months (or 8 consecutive years) of service within the last 120 months (or 10 years) of service in which the total salary or earnings calculated under the applicable Article was the highest by the number of months (or years) of service in that period. For the purposes of a person who first becomes a member or participant of any retirement system or pension fund to which this Section applies on or after January 1, 2011, in this Code, "final average salary" shall be substituted for the following: (1) (Blank). (2) In Articles 8, 9, 10, 11, and 12, "highest | ||
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(3) In Article 13, "average final salary". (4) In Article 14, "final average compensation". (5) In Article 17, "average salary". (6) In Section 22-207, "wages or salary received by | ||
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A member of the Teachers' Retirement System of the State of Illinois who retires on or after June 1, 2021 and for whom the 2020-2021 school year is used in the calculation of the member's final average salary shall use the higher of the following for the purpose of determining the member's final average salary: (A) the amount otherwise calculated under the first | ||
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(B) an amount calculated by the Teachers' Retirement | ||
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(b-5) Beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (b-10) Beginning on January 1, 2024, for all purposes under this Code (including, without limitation, the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant under Article 9 to whom this Section applies shall include an annual earnings, salary, or wage cap that tracks the Social Security wage base. Maximum annual earnings, wages, or salary shall be the annual contribution and benefit base established for the applicable year by the Commissioner of the Social Security Administration under the federal Social Security Act. However, in no event shall the annual earnings, salary, or wages for the purposes of this Article and Article 9 exceed any limitation imposed on annual earnings, salary, or wages under Section 1-117. Under no circumstances shall the maximum amount of annual earnings, salary, or wages be greater than the amount set forth in this subsection (b-10) as a result of reciprocal service or any provisions regarding reciprocal services, nor shall the Fund under Article 9 be required to pay any refund as a result of the application of this maximum annual earnings, salary, and wage cap. Nothing in this subsection (b-10) shall cause or otherwise result in any retroactive adjustment of any employee contributions. Nothing in this subsection (b-10) shall cause or otherwise result in any retroactive adjustment of disability or other payments made between January 1, 2011 and January 1, 2024. (c) A member or participant is entitled to a retirement annuity upon written application if he or she has attained age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article. A member or participant who has attained age 62 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article may elect to receive the lower retirement annuity provided in subsection (d) of this Section. (c-5) A person who first becomes a member or a participant subject to this Section on or after July 6, 2017 (the effective date of Public Act 100-23), notwithstanding any other provision of this Code to the contrary, is entitled to a retirement annuity under Article 8 or Article 11 upon written application if he or she has attained age 65 and has at least 10 years of service credit and is otherwise eligible under the requirements of Article 8 or Article 11 of this Code, whichever is applicable. (d) The retirement annuity of a member or participant who is retiring after attaining age 62 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section). (d-5) The retirement annuity payable under Article 8 or Article 11 to an eligible person subject to subsection (c-5) of this Section who is retiring at age 60 with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 65. (d-10) Each person who first became a member or participant under Article 8 or Article 11 of this Code on or after January 1, 2011 and prior to July 6, 2017 (the effective date of Public Act 100-23) shall make an irrevocable election either: (i) to be eligible for the reduced retirement age | ||
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(ii) to not agree to item (i) of this subsection | ||
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The election provided for in this subsection shall be made between October 1, 2017 and November 15, 2017. A person subject to this subsection who makes the required election shall remain bound by that election. A person subject to this subsection who fails for any reason to make the required election within the time specified in this subsection shall be deemed to have made the election under item (ii). (d-15) Each person who first becomes a member or participant under Article 12 on or after January 1, 2011 and prior to January 1, 2022 shall make an irrevocable election either: (i) to be eligible for the reduced retirement age | ||
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(ii) to not agree to item (i) of this subsection | ||
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The election provided for in this subsection shall be made between January 1, 2022 and April 1, 2022. A person subject to this subsection who makes the required election shall remain bound by that election. A person subject to this subsection who fails for any reason to make the required election within the time specified in this subsection shall be deemed to have made the election under item (ii). (e) Any retirement annuity or supplemental annuity shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15); and beginning on July 6, 2017 (the effective date of Public Act 100-23), age 65 with respect to service under Article 8 or Article 11 for eligible persons who: (i) are subject to subsection (c-5) of this Section; or (ii) made the election under item (i) of subsection (d-10) of this Section) or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 102-263 are applicable without regard to whether the employee was in active service on or after August 6, 2021 (the effective date of Public Act 102-263). For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 100-23 are applicable without regard to whether the employee was in active service on or after July 6, 2017 (the effective date of Public Act 100-23). (f) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant who first became a member or participant on or after January 1, 2011 shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death. In the case of the death of a member or participant who has not retired and who first became a member or participant on or after January 1, 2011, eligibility for a survivor's or widow's annuity shall be determined by the applicable Article of this Code. The initial benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A child's annuity of an otherwise eligible child shall be in the amount prescribed under each Article if applicable. Any survivor's or widow's annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the annuity. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. (g) The benefits in Section 14-110 apply only if the person is a State policeman, a fire fighter in the fire protection service of a department, a conservation police officer, an investigator for the Secretary of State, an arson investigator, a Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, a security employee of the Department of Corrections or the Department of Juvenile Justice, or a security employee of the Department of Innovation and Technology, as those terms are defined in subsection (b) and subsection (c) of Section 14-110. A person who meets the requirements of this Section is entitled to an annuity calculated under the provisions of Section 14-110, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 60, regardless of whether the attainment of age 60 occurs while the person is still in service. (h) If a person who first becomes a member or a participant of a retirement system or pension fund subject to this Section on or after January 1, 2011 is receiving a retirement annuity or retirement pension under that system or fund and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, except for those members or participants exempted from the provisions of this Section under subsection (a) of this Section, then the person's retirement annuity or retirement pension under that system or fund shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity or retirement pension payments shall resume and be recalculated if recalculation is provided for under the applicable Article of this Code. If a person who first becomes a member of a retirement system or pension fund subject to this Section on or after January 1, 2012 and is receiving a retirement annuity or retirement pension under that system or fund and accepts on a contractual basis a position to provide services to a governmental entity from which he or she has retired, then that person's annuity or retirement pension earned as an active employee of the employer shall be suspended during that contractual service. A person receiving an annuity or retirement pension under this Code shall notify the pension fund or retirement system from which he or she is receiving an annuity or retirement pension, as well as his or her contractual employer, of his or her retirement status before accepting contractual employment. A person who fails to submit such notification shall be guilty of a Class A misdemeanor and required to pay a fine of $1,000. Upon termination of that contractual employment, the person's retirement annuity or retirement pension payments shall resume and, if appropriate, be recalculated under the applicable provisions of this Code. (i) (Blank). (j) In the case of a conflict between the provisions of this Section and any other provision of this Code, the provisions of this Section shall control.(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff. 5-13-22; 103-529, eff. 8-11-23.) (Text of Section from P.A. 102-956) Sec. 1-160. Provisions applicable to new hires. (a) The provisions of this Section apply to a person who, on or after January 1, 2011, first becomes a member or a participant under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, 7, 15, or 18 of this Code, notwithstanding any other provision of this Code to the contrary, but do not apply to any self-managed plan established under this Code or to any participant of the retirement plan established under Section 22-101; except that this Section applies to a person who elected to establish alternative credits by electing in writing after January 1, 2011, but before August 8, 2011, under Section 7-145.1 of this Code. Notwithstanding anything to the contrary in this Section, for purposes of this Section, a person who is a Tier 1 regular employee as defined in Section 7-109.4 of this Code or who participated in a retirement system under Article 15 prior to January 1, 2011 shall be deemed a person who first became a member or participant prior to January 1, 2011 under any retirement system or pension fund subject to this Section. The changes made to this Section by Public Act 98-596 are a clarification of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-889), notwithstanding the provisions of Section 1-103.1 of this Code. This Section does not apply to a person who first becomes a noncovered employee under Article 14 on or after the implementation date of the plan created under Section 1-161 for that Article, unless that person elects under subsection (b) of Section 1-161 to instead receive the benefits provided under this Section and the applicable provisions of that Article. This Section does not apply to a person who first becomes a member or participant under Article 16 on or after the implementation date of the plan created under Section 1-161 for that Article, unless that person elects under subsection (b) of Section 1-161 to instead receive the benefits provided under this Section and the applicable provisions of that Article. This Section does not apply to a person who elects under subsection (c-5) of Section 1-161 to receive the benefits under Section 1-161. This Section does not apply to a person who first becomes a member or participant of an affected pension fund on or after 6 months after the resolution or ordinance date, as defined in Section 1-162, unless that person elects under subsection (c) of Section 1-162 to receive the benefits provided under this Section and the applicable provisions of the Article under which he or she is a member or participant. (b) "Final average salary" means, except as otherwise provided in this subsection, the average monthly (or annual) salary obtained by dividing the total salary or earnings calculated under the Article applicable to the member or participant during the 96 consecutive months (or 8 consecutive years) of service within the last 120 months (or 10 years) of service in which the total salary or earnings calculated under the applicable Article was the highest by the number of months (or years) of service in that period. For the purposes of a person who first becomes a member or participant of any retirement system or pension fund to which this Section applies on or after January 1, 2011, in this Code, "final average salary" shall be substituted for the following: (1) (Blank). (2) In Articles 8, 9, 10, 11, and 12, "highest | ||
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(3) In Article 13, "average final salary". (4) In Article 14, "final average compensation". (5) In Article 17, "average salary". (6) In Section 22-207, "wages or salary received by | ||
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A member of the Teachers' Retirement System of the State of Illinois who retires on or after June 1, 2021 and for whom the 2020-2021 school year is used in the calculation of the member's final average salary shall use the higher of the following for the purpose of determining the member's final average salary: (A) the amount otherwise calculated under the first | ||
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(B) an amount calculated by the Teachers' Retirement | ||
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(b-5) Beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (b-10) Beginning on January 1, 2024, for all purposes under this Code (including, without limitation, the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant under Article 9 to whom this Section applies shall include an annual earnings, salary, or wage cap that tracks the Social Security wage base. Maximum annual earnings, wages, or salary shall be the annual contribution and benefit base established for the applicable year by the Commissioner of the Social Security Administration under the federal Social Security Act. However, in no event shall the annual earnings, salary, or wages for the purposes of this Article and Article 9 exceed any limitation imposed on annual earnings, salary, or wages under Section 1-117. Under no circumstances shall the maximum amount of annual earnings, salary, or wages be greater than the amount set forth in this subsection (b-10) as a result of reciprocal service or any provisions regarding reciprocal services, nor shall the Fund under Article 9 be required to pay any refund as a result of the application of this maximum annual earnings, salary, and wage cap. Nothing in this subsection (b-10) shall cause or otherwise result in any retroactive adjustment of any employee contributions. Nothing in this subsection (b-10) shall cause or otherwise result in any retroactive adjustment of disability or other payments made between January 1, 2011 and January 1, 2024. (c) A member or participant is entitled to a retirement annuity upon written application if he or she has attained age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article. A member or participant who has attained age 62 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article may elect to receive the lower retirement annuity provided in subsection (d) of this Section. (c-5) A person who first becomes a member or a participant subject to this Section on or after July 6, 2017 (the effective date of Public Act 100-23), notwithstanding any other provision of this Code to the contrary, is entitled to a retirement annuity under Article 8 or Article 11 upon written application if he or she has attained age 65 and has at least 10 years of service credit and is otherwise eligible under the requirements of Article 8 or Article 11 of this Code, whichever is applicable. (d) The retirement annuity of a member or participant who is retiring after attaining age 62 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section) with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section). (d-5) The retirement annuity payable under Article 8 or Article 11 to an eligible person subject to subsection (c-5) of this Section who is retiring at age 60 with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 65. (d-10) Each person who first became a member or participant under Article 8 or Article 11 of this Code on or after January 1, 2011 and prior to July 6, 2017 (the effective date of Public Act 100-23) shall make an irrevocable election either: (i) to be eligible for the reduced retirement age | ||
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(ii) to not agree to item (i) of this subsection | ||
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The election provided for in this subsection shall be made between October 1, 2017 and November 15, 2017. A person subject to this subsection who makes the required election shall remain bound by that election. A person subject to this subsection who fails for any reason to make the required election within the time specified in this subsection shall be deemed to have made the election under item (ii). (d-15) Each person who first becomes a member or participant under Article 12 on or after January 1, 2011 and prior to January 1, 2022 shall make an irrevocable election either: (i) to be eligible for the reduced retirement age | ||
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(ii) to not agree to item (i) of this subsection | ||
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The election provided for in this subsection shall be made between January 1, 2022 and April 1, 2022. A person subject to this subsection who makes the required election shall remain bound by that election. A person subject to this subsection who fails for any reason to make the required election within the time specified in this subsection shall be deemed to have made the election under item (ii). (e) Any retirement annuity or supplemental annuity shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15); and beginning on July 6, 2017 (the effective date of Public Act 100-23), age 65 with respect to service under Article 8 or Article 11 for eligible persons who: (i) are subject to subsection (c-5) of this Section; or (ii) made the election under item (i) of subsection (d-10) of this Section) or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 102-263 are applicable without regard to whether the employee was in active service on or after August 6, 2021 (the effective date of Public Act 102-263). For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 100-23 are applicable without regard to whether the employee was in active service on or after July 6, 2017 (the effective date of Public Act 100-23). (f) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant who first became a member or participant on or after January 1, 2011 shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death. In the case of the death of a member or participant who has not retired and who first became a member or participant on or after January 1, 2011, eligibility for a survivor's or widow's annuity shall be determined by the applicable Article of this Code. The initial benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A child's annuity of an otherwise eligible child shall be in the amount prescribed under each Article if applicable. Any survivor's or widow's annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the annuity. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. (g) The benefits in Section 14-110 apply only if the person is a State policeman, a fire fighter in the fire protection service of a department, a conservation police officer, an investigator for the Secretary of State, an investigator for the Office of the Attorney General, an arson investigator, a Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, a security employee of the Department of Corrections or the Department of Juvenile Justice, or a security employee of the Department of Innovation and Technology, as those terms are defined in subsection (b) and subsection (c) of Section 14-110. A person who meets the requirements of this Section is entitled to an annuity calculated under the provisions of Section 14-110, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 60, regardless of whether the attainment of age 60 occurs while the person is still in service. (h) If a person who first becomes a member or a participant of a retirement system or pension fund subject to this Section on or after January 1, 2011 is receiving a retirement annuity or retirement pension under that system or fund and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, except for those members or participants exempted from the provisions of this Section under subsection (a) of this Section, then the person's retirement annuity or retirement pension under that system or fund shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity or retirement pension payments shall resume and be recalculated if recalculation is provided for under the applicable Article of this Code. If a person who first becomes a member of a retirement system or pension fund subject to this Section on or after January 1, 2012 and is receiving a retirement annuity or retirement pension under that system or fund and accepts on a contractual basis a position to provide services to a governmental entity from which he or she has retired, then that person's annuity or retirement pension earned as an active employee of the employer shall be suspended during that contractual service. A person receiving an annuity or retirement pension under this Code shall notify the pension fund or retirement system from which he or she is receiving an annuity or retirement pension, as well as his or her contractual employer, of his or her retirement status before accepting contractual employment. A person who fails to submit such notification shall be guilty of a Class A misdemeanor and required to pay a fine of $1,000. Upon termination of that contractual employment, the person's retirement annuity or retirement pension payments shall resume and, if appropriate, be recalculated under the applicable provisions of this Code. (i) (Blank). (j) In the case of a conflict between the provisions of this Section and any other provision of this Code, the provisions of this Section shall control.(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff. 8-11-23.) |
(40 ILCS 5/1-161) Sec. 1-161. Optional benefits for certain Tier 2 members under Articles 14, 15, and 16. (a) Notwithstanding any other provision of this Code to the contrary, the provisions of this Section apply to a person who first becomes a member or a participant under Article 14, 15, or 16 on or after the implementation date under this Section for the applicable Article and who does not make the election under subsection (b) or (c), whichever applies. The provisions of this Section also apply to a person who makes the election under subsection (c-5). However, the provisions of this Section do not apply to any participant in a self-managed plan, nor to a covered employee under Article 14. As used in this Section and Section 1-160, the "implementation date" under this Section means the earliest date upon which the board of a retirement system authorizes members of that system to begin participating in accordance with this Section, as determined by the board of that retirement system. Each of the retirement systems subject to this Section shall endeavor to make such participation available as soon as possible after the effective date of this Section and shall establish an implementation date by board resolution. (b) In lieu of the benefits provided under this Section, a member or participant, except for a participant under Article 15, may irrevocably elect the benefits under Section 1-160 and the benefits otherwise applicable to that member or participant. The election must be made within 30 days after becoming a member or participant. Each retirement system shall establish procedures for making this election. (c) A participant under Article 15 may irrevocably elect the benefits otherwise provided to a Tier 2 member under Article 15. The election must be made within 30 days after becoming a member. The retirement system under Article 15 shall establish procedures for making this election. (c-5) A non-covered participant under Article 14 to whom Section 1-160 applies, a Tier 2 member under Article 15, or a participant under Article 16 to whom Section 1-160 applies may irrevocably elect to receive the benefits under this Section in lieu of the benefits under Section 1-160 or the benefits otherwise available to a Tier 2 member under Article 15, whichever is applicable. Each retirement System shall establish procedures for making this election. (d) "Final average salary" means the average monthly (or annual) salary obtained by dividing the total salary or earnings calculated under the Article applicable to the member or participant during the last 120 months (or 10 years) of service in which the total salary or earnings calculated under the applicable Article was the highest by the number of months (or years) of service in that period. For the purposes of a person to whom this Section applies, in this Code, "final average salary" shall be substituted for "final average compensation" in Article 14. (e) Beginning on the implementation date, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings, salary, compensation, or wages (based on the plan year) of a member or participant to whom this Section applies shall not at any time exceed the federal Social Security Wage Base then in effect. (f) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained the normal retirement age determined by the Social Security Administration for that member or participant's year of birth, but no earlier than 67 years of age, and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article. (g) The amount of the retirement annuity to which a member or participant is entitled shall be computed by multiplying 1.25% for each year of service credit by his or her final average salary. (h) Any retirement annuity or supplemental annuity shall be subject to annual increases on the first anniversary of the annuity start date. Each annual increase shall be one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-w for the 12 months ending with the September preceding each November 1 of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-w for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. For the purposes of this Section, "consumer price index-w" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by Urban Wage Earners and Clerical Workers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (i) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant to whom this Section applies shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death. In the case of the death of a member or participant who has not retired and to whom this Section applies, eligibility for a survivor's or widow's annuity shall be determined by the applicable Article of this Code. The benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A child's annuity of an otherwise eligible child shall be in the amount prescribed under each Article if applicable. (j) In lieu of any other employee contributions, except for the contribution to the defined contribution plan under subsection (k) of this Section, each employee shall contribute 6.2% of his her or salary to the retirement system. However, the employee contribution under this subsection shall not exceed the amount of the total normal cost of the benefits for all members making contributions under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll and certified on or before January 15 of each year by the board of trustees of the retirement system. If the board of trustees of the retirement system certifies that the 6.2% employee contribution rate exceeds the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), then on or before December 1 of that year, the board of trustees shall certify the amount of the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll, to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contribution under this subsection shall be reduced to that amount beginning July 1 of that year. Thereafter, if the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll and certified on or before January 1 of each year by the board of trustees of the retirement system, exceeds 6.2% of salary, then on or before January 15 of that year, the board of trustees shall certify the normal cost to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contributions shall revert back to 6.2% of salary beginning January 1 of the following year. (k) In accordance with each retirement system's implementation date, each retirement system under Article 14, 15, or 16 shall prepare and implement a defined contribution plan for members or participants who are subject to this Section. The defined contribution plan developed under this subsection shall be a plan that aggregates employer and employee contributions in individual participant accounts which, after meeting any other requirements, are used for payouts after retirement in accordance with this subsection and any other applicable laws. (1) Each member or participant shall contribute a | ||
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(2) For each participant in the defined contribution | ||
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(3) Employer contributions shall vest when those | ||
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(4) The defined contribution plan shall provide a | ||
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(5) The defined contribution plan shall provide a | ||
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(6) To the extent authorized under federal law and as | ||
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(7) Each retirement system shall reduce the employee | ||
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(8) No person shall begin participating in the | ||
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(l) In the case of a conflict between the provisions of this Section and any other provision of this Code, the provisions of this Section shall control.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/1-162) Sec. 1-162. Optional benefits for certain Tier 2 members of pension funds under Articles 8, 9, 10, 11, 12, and 17. (a) As used in this Section: "Affected pension fund" means a pension fund established under Article 8, 9, 10, 11, 12, or 17 that the governing body of the unit of local government has designated as an affected pension fund by adoption of a resolution or ordinance. "Resolution or ordinance date" means the date on which the governing body of the unit of local government designates a pension fund under Article 8, 9, 10, 11, 12, or 17 as an affected pension fund by adoption of a resolution or ordinance or July 1, 2018, whichever is later. (b) Notwithstanding any other provision of this Code to the contrary, the provisions of this Section apply to a person who first becomes a member or a participant in an affected pension fund on or after 6 months after the resolution or ordinance date and who does not make the election under subsection (c). (c) In lieu of the benefits provided under this Section, a member or participant may irrevocably elect the benefits under Section 1-160 and the benefits otherwise applicable to that member or participant. The election must be made within 30 days after becoming a member or participant. Each affected pension fund shall establish procedures for making this election. (d) "Final average salary" means the average monthly (or annual) salary obtained by dividing the total salary or earnings calculated under the Article applicable to the member or participant during the last 120 months (or 10 years) of service in which the total salary or earnings calculated under the applicable Article was the highest by the number of months (or years) of service in that period. For the purposes of a person who first becomes a member or participant of an affected pension fund on or after 6 months after the ordinance or resolution date, in this Code, "final average salary" shall be substituted for the following: (1) In Articles 8, 9, 10, 11, and 12, "highest | ||
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(2) In Article 17, "average salary". (e) Beginning 6 months after the resolution or ordinance date, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant to whom this Section applies shall not at any time exceed the federal Social Security Wage Base then in effect. (f) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained the normal retirement age determined by the Social Security Administration for that member or participant's year of birth, but no earlier than 67 years of age, and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article. (g) The amount of the retirement annuity to which a member or participant is entitled shall be computed by multiplying 1.25% for each year of service credit by his or her final average salary. (h) Any retirement annuity or supplemental annuity shall be subject to annual increases on the first anniversary of the annuity start date. Each annual increase shall be one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-w for the 12 months ending with the September preceding each November 1 of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-w for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. For the purposes of this Section, "consumer price index-w" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by Urban Wage Earners and Clerical Workers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (i) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant who first became a member or participant on or after 6 months after the resolution or ordinance date shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death. In the case of the death of a member or participant who has not retired and who first became a member or participant on or after 6 months after the resolution or ordinance date, eligibility for a survivor's or widow's annuity shall be determined by the applicable Article of this Code. The benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A child's annuity of an otherwise eligible child shall be in the amount prescribed under each Article if applicable. (j) In lieu of any other employee contributions, except for the contribution to the defined contribution plan under subsection (k) of this Section, each employee shall contribute 6.2% of his or her salary to the affected pension fund. However, the employee contribution under this subsection shall not exceed the amount of the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll and determined on or before November 1 of each year by the board of trustees of the affected pension fund. If the board of trustees of the affected pension fund determines that the 6.2% employee contribution rate exceeds the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), then on or before December 1 of that year, the board of trustees shall certify the amount of the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll, to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contribution under this subsection shall be reduced to that amount beginning January 1 of the following year. Thereafter, if the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll and determined on or before November 1 of each year by the board of trustees of the affected pension fund, exceeds 6.2% of salary, then on or before December 1 of that year, the board of trustees shall certify the normal cost to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contributions shall revert back to 6.2% of salary beginning January 1 of the following year. (k) No later than 5 months after the resolution or ordinance date, an affected pension fund shall prepare and implement a defined contribution plan for members or participants who are subject to this Section. The defined contribution plan developed under this subsection shall be a plan that aggregates employer and employee contributions in individual participant accounts which, after meeting any other requirements, are used for payouts after retirement in accordance with this subsection and any other applicable laws. (1) Each member or participant shall contribute a | ||
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(2) For each participant in the defined contribution | ||
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(3) Employer contributions shall vest when those | ||
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(4) The defined contribution plan shall provide a | ||
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(5) The defined contribution plan shall provide a | ||
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(6) To the extent authorized under federal law and as | ||
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(7) Each affected pension fund shall reduce the | ||
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(8) No person shall begin participating in the | ||
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(l) In the case of a conflict between the provisions of this Section and any other provision of this Code, the provisions of this Section shall control.
(Source: P.A. 100-23, eff. 7-6-17; 101-81, eff. 7-12-19.) |
(40 ILCS 5/1-165) Sec. 1-165. Commission on Government Forecasting and Accountability study. The Commission on Government Forecasting and Accountability shall conduct a study on the feasibility of: (1) the creation of an investment pool to supplement | ||
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(2) enacting a contribution cost-share component | ||
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The Commission shall issue a report on its findings on or before December 31, 2011.
(Source: P.A. 96-1495, eff. 1-1-11.) |
(40 ILCS 5/1-166) Sec. 1-166. Proportional annuity liability. (a) If a participant's final average salary in a participating system under the Retirement Systems Reciprocal
Act, other than the General Assembly Retirement System, is used to calculate a proportional retirement annuity for that participant under the General Assembly Retirement System, if that final average salary is higher than the highest salary for annuity purposes of that person under the General Assembly Retirement System, and if the participant retires after the effective date of this Section with less than 2 years of service that has accrued in that participating system since his or her last day of active participation in the General Assembly Retirement System, then the increased cost of the proportional annuity paid by the General Assembly Retirement System that is attributable to that higher level of compensation shall be paid by the employer of the participant under that other participating system to the General Assembly Retirement System in the form of a lump sum
payment determined by the General Assembly Retirement System in accordance with its annuity tables and other actuarial assumptions. (b) For the purposes of this Section, "final average salary in a participating system under the Retirement Systems Reciprocal
Act, other than the General Assembly Retirement System," includes: (1) In Section 1-160 and Articles 16 and 18, "final | ||
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(2) In Articles 7 and 15, "final rate of earnings". (3) In Articles 8, 9, 10, 11, and 12, "highest | ||
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(4) In Article 13, "average final salary". (5) In Article 14, "final average compensation". (6) In Article 17, "average salary". (7) In Section 22-207, "wages or salary received by | ||
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(c) If an employer fails to pay the amount required under this Section to the General Assembly Retirement System for more than
90 days after the payment is due, the System, after
giving notice to the employer, may certify to
the State Comptroller the amount of the delinquent payment and the
Comptroller shall deduct the amount so certified or any part thereof
from any payment of State funds to the employer and shall pay the amount so deducted to the System. If State
funds from which such deductions may be made are not available, then the System
may proceed against the employer to recover the
amount of the delinquent payment in the appropriate circuit court.
(Source: P.A. 97-967, eff. 8-16-12.) |
(40 ILCS 5/1-167) Sec. 1-167. Prohibited disclosures. No pension fund or retirement system subject to this Code shall disclose the following information of any members or participants of any pension fund or retirement system: (1) the individual's home address (including ZIP code and county); (2) the individual's date of birth; (3) the individual's home and personal phone number; (4) the individual's personal email address; (5) personally identifying member or participant deduction information; or (6) any membership status in a labor organization or other voluntary association affiliated with a labor organization or labor federation (including whether participants are members of such organization, the identity of such organization, whether or not participants pay or authorize the payment of any dues or moneys to such organization, and the amounts of such dues or moneys). This Section does not apply to disclosures (i) required under the Freedom of Information Act, (ii) for purposes of conducting public operations or business, or (iii) to a labor organization or other voluntary association affiliated with a labor organization or labor federation or to the Municipal Employees Society of Chicago.
(Source: P.A. 103-552, eff. 8-11-23.) |
(40 ILCS 5/Art. 1A heading) ARTICLE 1A.
REGULATION OF PUBLIC PENSION FUNDS
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(40 ILCS 5/1A-101)
Sec. 1A-101.
Creation of Public Pension Division.
There is created in the
Department of Insurance a Public Pension Division which, under the supervision
and direction of the Director of Insurance, shall exercise the powers and
perform the duties and functions prescribed under this Code. The Division
shall consist of an administrator, a supervisor, a technical staff trained in
the fundamentals of public pension fund planning, operations, administration,
and investment of public pension funds, and such other personnel as may be
necessary properly and effectively to discharge the functions of the
Division.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1A-102)
Sec. 1A-102. Definitions. As used in this Article, the following terms
have the meanings ascribed to them in this Section, unless the context
otherwise requires:
"Accrued liability" means the actuarial present value of future benefit
payments and appropriate administrative expenses under a plan, reduced by the
actuarial present value of all future normal costs (including any participant
contributions) with respect to the participants included in the actuarial
valuation of the plan.
"Actuarial present value" means the single amount, as of a given valuation
date, that results from applying actuarial assumptions to an amount or series
of amounts payable or receivable at various times.
"Actuarial value of assets" means the value assigned by the actuary to the
assets of a plan for the purposes of an actuarial valuation.
"Basis point" means 1/100th of one percent.
"Beneficiary" means a person eligible for or receiving benefits from a
pension fund as provided in the Article of this Code under which the fund is
established.
"Consolidated Fund" means: (i) with respect to the pension funds established under Article 3 of this Code, the Police Officers' Pension Investment Fund established under Article 22B of this Code; and (ii) with respect to the pension funds established under Article 4 of this Code, the Firefighters' Pension Investment Fund established under Article 22C of this Code. "Credited projected benefit" means that portion of a participant's projected
benefit based on an allocation taking into account service to date determined
in accordance with the terms of the plan based on anticipated future
compensation.
"Current value" means the fair market value when available; otherwise, the
fair value as determined in good faith by a trustee, assuming an orderly
liquidation at the time of the determination.
"Department" means the Department of Insurance of the State of Illinois.
"Director" means the Director of the Department of Insurance.
"Division" means the Public Pension Division of the Department of Insurance.
"Governmental unit" means the State of Illinois, any instrumentality or
agency thereof (except transit authorities or agencies operating within or
within and without cities with a population over 3,000,000), and any political
subdivision or municipal corporation that establishes and maintains a public
pension fund.
"Normal cost" means that part of the actuarial present value of all future
benefit payments and appropriate administrative expenses assigned to the
current year under the actuarial valuation method used by the plan (excluding
any amortization of the unfunded accrued liability).
"Participant" means a participating member or deferred pensioner or annuitant
of a pension fund as provided in the Article of this Code under which the
pension fund is established, or a beneficiary thereof.
"Pension fund" means any public pension fund, annuity and benefit fund, or
retirement system established under this Code.
"Plan year" means the calendar or fiscal year on which the records of a given
plan are kept.
"Projected benefits" means benefit amounts under a plan which are expected
to be paid at various future times under a particular set of actuarial
assumptions, taking into account, as applicable, the effect of advancement
in age and past and anticipated future compensation and service credits.
"Supplemental annual cost" means that portion of the unfunded accrued
liability assigned to the current year under one of the following bases:
(1) interest only on the unfunded accrued liability;
(2) the level annual amount required to amortize the | ||
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(3) the amount required for the current year to | ||
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"Total annual cost" means the sum of the normal cost plus the supplemental
annual cost.
"Transition period" means the period described in Section 22B-120 with respect to the pension funds established under Article 3 of this Code and the period described in Section 22C-120 with respect to the pension funds established under Article 4 of this Code. "Unfunded accrued liability" means the excess of the accrued liability over
the actuarial value of the assets of a plan.
"Vested pension benefit" means an interest obtained by a participant or
beneficiary in that part of an immediate or deferred benefit under a plan
which arises from the participant's service and is not conditional upon the
participant's continued service for an employer any of whose employees are
covered under the plan, and which has not been forfeited under the terms of the
plan.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/1A-103)
Sec. 1A-103.
Rules.
The Department is authorized to promulgate rules
necessary for the administration and enforcement of this Code. Except as
otherwise provided under this Code, these rules shall apply only to pension
funds established under Article 3 or Article 4 of this Code. Rules adopted
pursuant to this Section shall govern where conflict with local rules and
regulations exists.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1A-104)
Sec. 1A-104. Examinations and investigations.
(a) Except as described in the following paragraph with respect to pension funds established under Article 3 or 4 of this Code, the Division shall make periodic examinations and investigations of all
pension funds established under this Code and maintained for the benefit of
employees and officers of governmental units in the State of Illinois.
However, in lieu of making an examination and investigation, the Division
may accept and rely upon a report of audit or examination of any pension fund
made by an independent certified public accountant pursuant to the provisions
of the Article of this Code governing the pension fund. The acceptance of the
report of audit or examination does not bar the Division from making a further
audit, examination, and investigation if deemed necessary by the Division.
For pension funds established under Article 3 or 4 of this Code: (i) prior to the conclusion of the transition period, the Division shall make the periodic examinations and investigations described in the preceding paragraph; and (ii) after the conclusion of the transition period, the Division may accept and rely upon a report of audit or examination of such pension fund made by an independent certified public accountant retained by the Consolidated Fund. The acceptance of the report of audit or examination does not bar the Division from making a further audit, examination, and investigation if deemed necessary by the Division. The Department may implement a flexible system of examinations under
which it directs resources as it deems necessary or appropriate. In
consultation with the pension fund being examined, the Division may retain
attorneys, independent actuaries, independent certified public accountants, and
other professionals and specialists as examiners, the cost of which (except in
the case of pension funds established under Article 3 or 4) shall be borne by
the pension fund that is the subject of the examination.
(b) The Division or the Consolidated Fund, as appropriate, shall examine or investigate each pension fund established
under Article 3 or Article 4 of this Code. The schedule of each examination shall be such that each fund shall be examined once every 3 years.
Each examination shall include the following:
(1) an audit of financial transactions, investment | ||
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(2) an examination of books, records, documents, | ||
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(3) a review of policies and procedures maintained | ||
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(4) a determination of whether or not full effect is | ||
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(5) a determination of whether or not the | ||
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(6) a determination of whether or not proper | ||
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(7) a determination of whether or not the | ||
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In addition, the Division or the Consolidated Fund, as appropriate, may conduct investigations, which shall be
identified as such and which may include one or more of the items listed in
this subsection.
A copy of the report of examination or investigation as prepared by the
Division or the Consolidated Fund, as appropriate, shall be submitted to the secretary of the board of trustees of the
pension fund examined or investigated and to the chief executive officer of the municipality. The Director, upon request, shall grant
a hearing to the officers or trustees of the pension fund and to the officers or trustees of the Consolidated Fund, as appropriate, or their duly
appointed representatives, upon any facts contained in the report of
examination. The hearing shall be conducted before filing the report or making
public any information contained in the report. The Director may withhold the
report from public inspection for up to 60 days following the hearing.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/1A-105)
Sec. 1A-105.
Examination and subpoena of records and witnesses.
The
Director may administer oaths and affirmations and summon and compel the
attendance before him or her and examine under oath any officer, trustee,
agent, actuary, attorney, or employee connected either directly or indirectly
with any pension fund, or any other person having information regarding the
condition, affairs, management, administration, or methods of conducting a
pension fund. The Director may require any person having possession of any
record, book, paper, contract, or other document pertaining to a pension fund
to surrender it or to otherwise afford the Director access to it and for
failure so to do the Director may attach the same.
Should any person fail to obey the summons of the Director or refuse to
surrender to him or her or afford him or her access to any such record, book,
paper, contract, or other document, the Director may apply to the circuit court
of the county in which the principal office of the pension fund involved is
located, and the court, if it finds that the Director has not exceeded his or
her authority in the matter, may, by order duly entered, require the attendance
of witnesses and the production of all relevant documents required by the
Director in carrying out his or her responsibilities under this Code. Upon
refusal or neglect to obey the order of the court, the court may compel
obedience by proceedings for contempt of court.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1A-106)
Sec. 1A-106.
Advisory services.
The Division shall render advisory
services to the pension funds on all matters pertaining to their operations
and shall recommend any corrective or clarifying legislation that it may deem
necessary. These recommendations shall be made in the report of examination of
the particular pension fund and in the biennial report to the General Assembly
under Section 1A-108. The recommendations may embrace all substantive
legislative and administrative policies, including, but not limited to, matters
dealing with the payment of annuities and benefits, the investment of funds,
and the condition of the books, records, and accounts of the pension fund.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1A-107)
Sec. 1A-107.
Automation of services.
The Division shall automate its
operations, services, and communications to the fullest practical extent. This
automation shall include, but need not be limited to, the acquisition, use, and
maintenance of electronic data processing technology to (i) automate Division
operations as necessary to carry out its duties and responsibilities under this
Code, (ii) provide by FY 2000 electronic exchange of information between the
Division and pension funds subject to this Code, (iii) provide to pension funds
and the general public and receive from pension funds and the general public
data on computer processible media, and (iv) control access to information when
necessary to protect the confidentiality of persons identified in the
information.
The Division shall ensure that this automation is designed so as to
protect any confidential data it may receive from a pension fund. This Section
does not authorize the Division or the Department of Insurance to disclose any
information identifying specific pension fund participants or relating to an
identifiable pension fund participant.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1A-108)
Sec. 1A-108. Report to the Governor and General Assembly. On or before
October 1 following the convening of a regular session of the General Assembly,
the Division shall submit a report to the Governor and General Assembly setting
forth the latest financial statements on the pension funds operating in the
State of Illinois, a summary of the current provisions underlying these funds,
and a report on any changes that have occurred in these provisions since the
date of the last such report submitted by the Division.
The report shall also include the results of examinations made by the
Division of any pension fund and any specific recommendations for legislative
and administrative correction that the Division deems necessary. The report
may embody general recommendations concerning desirable changes in any existing
pension, annuity, or retirement laws designed to standardize and establish
uniformity in their basic provisions and to bring about an improvement in the
financial condition of the pension funds. The purposes of these
recommendations and the objectives sought shall be clearly expressed in the
report.
The requirement for reporting to the General Assembly shall be satisfied by
filing copies of the report as required by
Section 3.1 of the General Assembly Organization Act, and filing additional
copies with the State Government Report Distribution Center for the General
Assembly as required under paragraph (t) of Section 7 of the State Library
Act.
Upon request, the Division shall distribute additional copies of the report
at no charge to the secretary of each pension fund established under Article 3
or 4, the treasurer or fiscal officer of each municipality with an established
police or firefighter pension fund, the executive director of every other
pension fund established under this Code, and to public libraries, State
agencies, and police, firefighter, and municipal organizations active in the
public pension area.
(Source: P.A. 100-1148, eff. 12-10-18.)
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(40 ILCS 5/1A-108.5) Sec. 1A-108.5. Economic opportunity investments.
(a) For the purposes of this Section: "Economic opportunity investment" means a qualified investment, managed passively or actively by the pension fund, that promotes economic development within the State of Illinois by providing financially prudent investment opportunities in or through the use of (a) Illinois businesses or (b) Illinois-based projects that promote the economy of the State or a region of the State, including without limitation promotion of venture capital programs, coal and other natural resource development, tourism development, infrastructure development, real estate development, and job development within the State of Illinois, while producing a competitive rate of return commensurate with the risk of investment. "Illinois business" means a business, including an investment adviser, that is headquartered in Illinois. "Illinois-based project" means an individual project of a business, including the provision of products and investment and other services to the pension fund, that will result in the conduct of business within the State, the employment of individuals within the State, or the acquisition of real property located within the State.
(b) It is the public policy of the State of Illinois to encourage the pension funds, and any State entity investing funds on behalf of pension funds, to promote the economy of Illinois through the use of economic opportunity investments to the greatest extent feasible within the bounds of financial and fiduciary prudence.
(c) Each pension fund, except pension funds created under Articles 3 and 4 of this Code, shall submit a report to the Governor and the General Assembly by September 1 of each year, beginning in 2009, that identifies the economic opportunity investments made by the fund, the primary location of the business or project, the percentage of the fund's assets in economic opportunity investments, and the actions that the fund has undertaken to increase the use of economic opportunity investments. (d) Pension funds created under Articles 2, 14, 15, 16, and 18 of this Act, and any State agency investing funds on behalf of those pension funds, must make reasonable efforts to invest in economic opportunity investments. (e) In making economic opportunity investments, trustees and fiduciaries must comply with the relevant requirements and restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, and 1-111 of this Code. Economic opportunity investments that otherwise comply with this Code shall not be deemed imprudent solely because they are investments in an Illinois business or Illinois-based project.
(Source: P.A. 96-753, eff. 8-25-09.) |
(40 ILCS 5/1A-109)
Sec. 1A-109. Annual statements by pension funds. Each pension fund shall
furnish to the Division an annual statement in a format prepared by the
Division. The Division shall design the form and prescribe the content of the
annual statement and, at least 60 days prior to the filing date, shall furnish
the form to each pension fund for completion. The annual statement shall be
prepared by each fund, properly certified by its officers, and submitted to the
Division within 6 months following the close of the fiscal year of the pension
fund.
The annual statement shall include, but need not be limited to, the
following:
(1) a financial balance sheet as of the close of the | ||
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(2) a statement of income and expenditures;
(3) an actuarial balance sheet;
(4) statistical data reflecting age, service, and | ||
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(5) special facts concerning disability or other | ||
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(6) details on investment transactions that occurred | ||
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(7) details on administrative expenses; and
(8) such other supporting data and schedules as in | ||
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For pension funds under Article 3 or 4 of this Code, after the conclusion of the transition period, the Consolidated Fund shall furnish directly to the Division the information described in items (1) and (6) of this Section and shall otherwise cooperate with the pension fund in the preparation of the annual statement. A pension fund that fails to file its annual statement within the time
prescribed under this Section is subject to the penalty provisions of Section
1A-113.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/1A-110)
Sec. 1A-110.
Actuarial statements by pension funds established under
Articles other than 3 or 4.
(a) Each pension fund established under an Article of this Code other than
Article 3 or 4 shall include as part of its annual statement a complete
actuarial statement applicable to the plan year.
The actuarial statement shall be filed with the Division within 9 months
after the close of the fiscal year of the pension fund. Any pension fund that
fails to file within that time is subject to the penalty provisions of Section
1A-113.
The board of trustees of each pension fund subject to this Section, on
behalf of all its participants, shall engage an enrolled actuary who shall
be responsible for the preparation of the materials comprising the actuarial
statement. The enrolled actuary shall utilize such assumptions and methods
as are necessary for the contents of the matters reported in the actuarial
statement to be reasonably related to the experience of the plan and to
reasonable expectations, and to represent in the aggregate the actuary's best
estimate of anticipated experience under the plan.
The actuarial statement shall include a description of the actuarial
assumptions and methods used to determine the actuarial values in the
statement and shall disclose the impact of significant changes in the
actuarial assumptions and methods, plan provisions, and other pertinent
factors on the actuarial position of the plan.
The actuarial statement shall include a statement by the enrolled actuary
that to the best of his or her knowledge the actuarial statement is complete
and accurate and has been prepared in accordance with generally accepted
actuarial principles and practice.
For the purposes of this Section, "enrolled actuary" means an actuary who (1)
is a member of the Society of Actuaries or the American Academy of Actuaries
and (2) either is enrolled under Subtitle C of Title III of the Employee
Retirement Income Security Act of 1974 or was engaged in providing actuarial
services to a public retirement plan in Illinois on July 1, 1983.
(b) The actuarial statement referred to in subsection (a) shall
include all of the following:
(1) The dates of the plan year and the date of the | ||
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(2) The amount of (i) the contributions made by the | ||
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(3) The total estimated amount of the covered | ||
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(4) The number of (i) active participants, (ii) | ||
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(5) The following values as of the date of the | ||
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(i) The current value of assets accumulated in | ||
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(ii) The unfunded accrued liability. The major | ||
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(iii) The amount of accumulated contributions for | ||
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(iv) The actuarial present value of credited | ||
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(6) The actuarial value of assets.
(7) Any other information that is necessary to fully | ||
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(8) Any other information regarding the plan that the | ||
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(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/1A-111)
Sec. 1A-111. Actuarial statements by pension funds established under
Article 3 or 4.
(a) For each pension fund established under Article 3 or 4 of this Code, a complete actuarial statement applicable to its plan year shall be included
as part of its annual statement in accordance with the following:
(1) Prior to the conclusion of the transition period, | ||
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(2) After the conclusion of the transition period, | ||
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(a-5) Prior to the conclusion of the transition period, the actuarial statements may be prepared utilizing the method for calculating the actuarially required contribution for the pension fund that was in effect prior to the effective date of this amendatory Act of the 101st General Assembly. After the conclusion of the transition period, the actuarial statements shall be prepared by or under the supervision of a qualified actuary retained by the Consolidated Fund, and if a change occurs in an actuarial or investment assumption that increases or decreases the actuarially required contribution for the pension fund, that change shall be implemented in equal annual amounts over the 3-year period beginning in the fiscal year of the pension fund in which such change first occurs. The actuarially required contribution as described in this subsection shall determine the annual required employer contribution. (b) For the purposes of this Section, "qualified actuary" means (i) a
member of the American Academy of Actuaries, or (ii) an individual who has
demonstrated to the satisfaction of the Director that he or she has the
educational background necessary for the practice of actuarial science and has
at least 7 years of actuarial experience.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/1A-112)
Sec. 1A-112. Fees.
(a) Every pension fund that is required to file an annual statement under
Section 1A-109 shall pay to the Department an annual compliance fee. In the
case of a pension fund under Article 3 or 4 of this Code, (i) prior to the conclusion of the transition period, the annual compliance
fee shall be 0.02% (2 basis points) of the total
assets of the pension
fund, as reported in the most current annual statement of the fund, but not
more than $8,000 and (ii) after the conclusion of the transition period, the annual compliance fee shall be $8,000 and shall be paid by the Consolidated Fund. In the case of all other pension funds and
retirement
systems, the annual compliance fee shall be $8,000. Effective July 1, 2023, each pension fund established under Article 3 or 4 of this Code shall pay an annual compliance fee of at least 0.02% but not more than 0.05% of the total assets of the pension fund, as reported in the most current annual statement of the fund, to the Department of Insurance unless the appropriate Consolidated Fund agrees to conduct an audit or examination of all pension funds as provided in Section 1A-104. The Department shall have the discretion to set the annual compliance fee to be paid by each pension fund to cover the cost of the compliance audits. The Department shall provide written notice to each Article 3 and Article 4 pension fund of the amount of the annual compliance fee due not less than 60 days prior to the fee payment deadline.
(b) The annual compliance fee shall be due on June 30 for the following
State fiscal year, except that the fee payable in 1997 for fiscal year 1998
shall be due no earlier than 30 days following the effective date of this
amendatory Act of 1997.
(c) Any information obtained by the Division that is available to the public
under the Freedom of Information Act and is either compiled in published form
or maintained on a computer processible medium shall be furnished upon the
written request of any applicant and the payment of a reasonable information
services fee established by the Director, sufficient to cover the total cost to
the Division of compiling, processing, maintaining, and generating the
information. The information may be furnished by means of published copy or on
a computer processed or computer processible medium.
No fee may be charged to any person for information that the Division is
required by law to furnish to that person.
(d) Except as otherwise provided in this Section, all fees and penalties
collected by the Department under this Code shall be deposited into the Public
Pension Regulation Fund.
(e) Fees collected under subsection (c) of this Section and money collected
under Section 1A-107 shall be deposited into the Technology Management Revolving Fund and credited to the account of the Department's Public Pension
Division. This income shall be used exclusively for the
purposes set forth in Section 1A-107. Notwithstanding the provisions of
Section 408.2 of the Illinois Insurance Code, no surplus funds remaining in
this account shall be deposited in the Insurance Financial Regulation Fund.
All money in this account that the Director certifies is not needed for the
purposes set forth in Section 1A-107 of this Code shall be transferred to the
Public Pension Regulation Fund.
(f) Nothing in this Code prohibits the General Assembly from appropriating
funds from the General Revenue Fund to the Department for the purpose of
administering or enforcing this Code.
(Source: P.A. 103-8, eff. 6-7-23.)
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(40 ILCS 5/1A-113)
Sec. 1A-113. Penalties.
(a) A pension fund that fails, without just cause, to file its annual
statement within the time prescribed under Section 1A-109 shall pay to the
Department a penalty to be determined by the Department, which shall not exceed
$100 for each day's delay.
(b) A pension fund that fails, without just cause, to file its actuarial
statement within the time prescribed under Section 1A-110 or 1A-111 shall pay
to the Department a penalty to be determined by the Department, which shall not
exceed $100 for each day's delay.
(c) A pension fund that fails to pay a fee within the time prescribed under
Section 1A-112 shall pay to the Department a penalty of 5% of the amount of the
fee for each month or part of a month that the fee is late. The entire penalty
shall not exceed 25% of the fee due.
(d) This subsection applies to any governmental unit, as defined in Section
1A-102, that is subject to any law establishing a pension fund or retirement
system for the benefit of employees of the governmental unit.
Whenever the Division determines by examination, investigation, or in any
other manner that the governing body or any elected or appointed officer or
official of a governmental unit has failed to comply with any provision of that
law:
(1) The Director shall notify in writing the | ||
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(2) Upon receipt of the notice, the person notified | ||
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(3) If the person notified fails to comply within a | ||
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(4) If upon hearing the Director determines that good | ||
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(5) If evidence of compliance has not been submitted | ||
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The Director shall develop by rule, with as much specificity as
practicable, the standards and criteria to be used in assessing penalties and
their amounts. The standards and criteria shall include, but need not be
limited to, consideration of evidence of efforts made in good faith to comply
with applicable legal requirements. This rulemaking is subject to the
provisions of the Illinois Administrative Procedure Act.
If a penalty is not paid within 30 days of the date of assessment, the
Director without further notice shall report the act of noncompliance to the
Attorney General of this State. It shall be the duty of the Attorney General
or, if the Attorney General so designates, the State's Attorney of the county
in which the governmental unit is located to apply promptly by complaint on
relation of the Director of Insurance in the name of the people of the State of
Illinois, as plaintiff, to the circuit court of the county in which the
governmental unit is located for enforcement of the penalty prescribed in this
subsection or for such additional relief as the nature of the case and the
interest of the employees of the governmental unit or the public may require.
(e) Whoever knowingly makes a false certificate, entry, or memorandum upon
any of the books or papers pertaining to any pension fund or upon any
statement, report, or exhibit filed or offered for file with the Division or
the Director of Insurance in the course of any examination, inquiry, or
investigation, with intent to deceive the Director, the Division, or any of its
employees is guilty of a Class A misdemeanor.
(f) Subsections (b) and (c) shall apply to pension funds established under Article 3 or Article 4 of this Code only prior to the conclusion of the transition period, and this Section shall not apply to the Consolidated Funds.(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/1A-201)
Sec. 1A-201. Advisory Commission on Pension Benefits. (a) There is created an Advisory Commission on Pension Benefits. The Commission shall consist of 15 persons, of whom 8 shall be appointed by the Governor and one each shall be appointed by the President and Minority Leader of the Senate and the Speaker and Minority Leader of the House of Representatives. Four of the persons appointed by the Governor shall represent different statewide labor organizations, of which 2 shall be organizations that represent primarily teachers and 2 shall be organizations that represent primarily State employees other than teachers. The Directors of the retirement systems established under Articles 14, 15, and 16 of this Code shall be ex officio members of the Commission. (b) The Commission shall consider and make its recommendations concerning changing the age and service requirements, automatic annual increase benefits, and employee contribution rates of the State-funded retirement systems and other pension-related issues as determined by the Commission. On or before November 1, 2005, the Commission shall report its findings and recommendations to the Governor and the General Assembly.
(c) The Commission may request actuarial data from any of the 5 State-funded retirement systems established under this Code. That data may include, but is not limited to, the dates of birth, years of service, salaries, and life expectancies of members. A retirement system shall provide the requested information as soon as practical after the request is received, but in no event later than any reasonable deadline imposed by the Commission.
(Source: P.A. 94-4, eff. 6-1-05.) |
(40 ILCS 5/Art. 2 heading) ARTICLE 2.
GENERAL ASSEMBLY RETIREMENT SYSTEM
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(40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
Sec. 2-101.
Creation of system.
A retirement system is created to provide retirement annuities,
survivor's annuities and other benefits for members of the
General Assembly, certain elected state officials and their beneficiaries.
The system shall be known as the "General Assembly Retirement System".
All its funds and property shall be a trust separate from all other
entities, maintained for the purpose of securing payment of annuities and
benefits under this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-102) (from Ch. 108 1/2, par. 2-102)
Sec. 2-102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 2-103 through 2-116, except when the
context otherwise requires.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-103) (from Ch. 108 1/2, par. 2-103)
Sec. 2-103.
System.
"System": The General Assembly Retirement System.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-104) (from Ch. 108 1/2, par. 2-104)
Sec. 2-104.
Board.
"Board": The board of trustees of the system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
Sec. 2-105.
Member.
"Member": Members of the General Assembly of this
State including persons who enter military service while a member of the
General Assembly and any person serving as Governor,
Lieutenant Governor, Secretary of State, Treasurer, Comptroller, or Attorney
General for the period of service in such office.
Any person who has served for 10 or more years as Clerk or Assistant Clerk
of the House of Representatives, Secretary or Assistant Secretary of the
Senate, or any combination thereof, may elect to become a member
of this system while thenceforth engaged in such service by filing a
written election with the board. Any person so electing shall be
deemed an active member of the General Assembly for the purpose of validating
and transferring any service credits earned under any of the funds and systems
established under Articles 3 through 18 of this Code.
(Source: P.A. 85-1008.)
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(40 ILCS 5/2-105.1)
Sec. 2-105.1. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 103-8, eff. 6-7-23.)
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(40 ILCS 5/2-105.2)
Sec. 2-105.2. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 103-8, eff. 6-7-23.)
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(40 ILCS 5/2-105.3) Sec. 2-105.3. Tier 1 participant; Tier 2 participant. "Tier 1 participant": A participant who first became a participant before January 1, 2011. "Tier 2 participant": A participant who first became a participant on or after January 1, 2011.
(Source: P.A. 103-8, eff. 6-7-23.) |
(40 ILCS 5/2-105.4) Sec. 2-105.4. Tier 1 retiree. "Tier 1 retiree" means a former Tier 1 participant who has made the election to retire and has terminated service.
(Source: P.A. 103-8, eff. 6-7-23.) |
(40 ILCS 5/2-106) (from Ch. 108 1/2, par. 2-106)
Sec. 2-106.
Eligible member.
"Eligible member": Any member other than one who has elected not to
participate.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
Sec. 2-107.
Participant.
"Participant": Any member who elects to
participate; and any former member who elects to continue participation
under Section 2-117.1, for the duration of such continued participation.
(Source: P.A. 86-1488.)
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(40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-108. Salary. "Salary": (1) For members of the General Assembly,
the total compensation paid to the member by the State for one
year of service, including the additional amounts, if any, paid to
the member as an officer pursuant to Section 1 of "An Act
in relation to the compensation and emoluments of the members of the
General Assembly", approved December 6, 1907, as now or hereafter
amended.
(2) For the State executive officers specified
in Section 2-105, the total compensation paid to the member for one year
of service.
(3) For members of the System who are participants under Section
2-117.1, or who are serving as Clerk or Assistant Clerk of the House of
Representatives or Secretary or Assistant Secretary of the Senate, the
total compensation paid to the member for one year of service, but not to
exceed the salary of the highest salaried officer of the General Assembly.
However, in the event that federal law results in any participant
receiving imputed income based on the value of group term life insurance
provided by the State, such imputed income shall not be included in salary
for the purposes of this Article.
Notwithstanding any other provision of this Code, the
annual salary of a Tier 1 participant for the purposes of this Code shall not
exceed, for periods of service in a term of office beginning on
or after the effective date of this amendatory Act of the 98th
General Assembly, the greater of (i) the annual limitation determined
from time to time under subsection (b-5) of Section 1-160 of
this Code or (ii) the
annualized salary of the participant on the last day of that participant's last term of office beginning before that effective date. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-108. Salary. "Salary": (1) For members of the General Assembly,
the total compensation paid to the member by the State for one
year of service, including the additional amounts, if any, paid to
the member as an officer pursuant to Section 1 of "An Act
in relation to the compensation and emoluments of the members of the
General Assembly", approved December 6, 1907, as now or hereafter
amended.
(2) For the State executive officers specified
in Section 2-105, the total compensation paid to the member for one year
of service.
(3) For members of the System who are participants under Section
2-117.1, or who are serving as Clerk or Assistant Clerk of the House of
Representatives or Secretary or Assistant Secretary of the Senate, the
total compensation paid to the member for one year of service, but not to
exceed the salary of the highest salaried officer of the General Assembly.
However, in the event that federal law results in any participant
receiving imputed income based on the value of group term life insurance
provided by the State, such imputed income shall not be included in salary
for the purposes of this Article.
(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
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(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever of
the following is applicable to the participant:
For a participant who first becomes a participant of this System before August 10, 2009 (the effective date of Public Act 96-207):
(1) For a participant who is a member of the General | ||
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(2) For a participant who holds one of the State | ||
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(3) For a participant who is Clerk or Assistant Clerk | ||
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(4) For a participant who is a continuing participant | ||
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For a participant who first becomes a participant of this System on or after August 10, 2009 (the effective date of Public Act 96-207) and before January 1, 2011 (the effective date of Public Act 96-889), the average monthly salary obtained by dividing the total salary of the participant during the period of: (1) the 48 consecutive months of service within the last 120 months of service in which the total compensation was the highest, or (2) the total period of service, if less than 48 months, by the number of months of service in that period. Except as otherwise provided below, for a Tier 2 participant who first becomes a participant of this System on or after January 1, 2011 (the effective date of Public Act 96-889), the average monthly salary obtained by dividing the total salary of the participant during the 96 consecutive months of service within the last 120 months of service in which the total compensation was the highest by the number of months of service in that period; however, for periods of service in a term of office beginning on or after January 1, 2011 and before the effective date of this amendatory Act of the 98th General Assembly, the highest salary for annuity purposes may not exceed $106,800, except that that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding each November 1. "Consumer price index-u" means
the index published by the Bureau of Labor Statistics of the United States
Department of Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city average, all
items, 1982-84 = 100. The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of the Department of Insurance and made available to the Board by November 1 of each year until there is no longer any such participant who is in service in a term of office that began before the effective date of this amendatory Act of the 98th General Assembly. Notwithstanding any other provision of this Section, in determining the highest salary for annuity purposes of a Tier 2 participant who is in service in a term of office beginning on or after the effective date of this amendatory Act of the 98th General Assembly, the Tier 2 participant's salary for periods of service in a term of office beginning on or after that effective date shall not exceed the limitation on salary determined from time to time under subsection (b-5) of Section 1-160 of this Code. (b) The earnings limitations of subsection (a) apply to earnings
under any other participating system under the Retirement Systems Reciprocal
Act that are considered in calculating a proportional annuity under this
Article, except in the case of a person who first became a member of this
System before August 22,
1994 and has not, on or after the effective date of this amendatory Act of the 97th General Assembly, irrevocably elected to have those limitations apply. The limitations of subsection (a) shall apply, however, to earnings
under any other participating system under the Retirement Systems Reciprocal
Act that are considered in calculating the proportional annuity of a person who first became a member of this
System before August 22,
1994 if, on or after the effective date of this amendatory Act of the 97th General Assembly, that member irrevocably elects to have those limitations apply.
(c) In calculating the subsection (a) earnings limitation to be applied to
earnings under any other participating system under the Retirement Systems
Reciprocal Act for the purpose of calculating a proportional annuity under this
Article, the participant's last day of service shall be deemed to mean the last
day of service in any participating system from which the person has applied
for a proportional annuity under the Retirement Systems Reciprocal Act.
(Source: P.A. 97-967, eff. 8-16-12; 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-108.1. Highest salary for annuity purposes.
(a) "Highest salary for annuity purposes" means whichever of
the following is applicable to the participant:
For a participant who first becomes a participant of this System before August 10, 2009 (the effective date of Public Act 96-207):
(1) For a participant who is a member of the General | ||
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(2) For a participant who holds one of the State | ||
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(3) For a participant who is Clerk or Assistant Clerk | ||
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(4) For a participant who is a continuing participant | ||
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For a participant who first becomes a participant of this System on or after August 10, 2009 (the effective date of Public Act 96-207) and before January 1, 2011 (the effective date of Public Act 96-889), the average monthly salary obtained by dividing the total salary of the participant during the period of: (1) the 48 consecutive months of service within the last 120 months of service in which the total compensation was the highest, or (2) the total period of service, if less than 48 months, by the number of months of service in that period. For a participant who first becomes a participant of this System on or after January 1, 2011 (the effective date of Public Act 96-889), the average monthly salary obtained by dividing the total salary of the participant during the 96 consecutive months of service within the last 120 months of service in which the total compensation was the highest by the number of months of service in that period; however, beginning January 1, 2011, the highest salary for annuity purposes may not exceed $106,800, except that that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding each November 1. "Consumer price index-u" means
the index published by the Bureau of Labor Statistics of the United States
Department of Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city average, all
items, 1982-84 = 100. The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of the Department of Insurance and made available to the Board by November 1 of each year. (b) The earnings limitations of subsection (a) apply to earnings
under any other participating system under the Retirement Systems Reciprocal
Act that are considered in calculating a proportional annuity under this
Article, except in the case of a person who first became a member of this
System before August 22,
1994 and has not, on or after the effective date of this amendatory Act of the 97th General Assembly, irrevocably elected to have those limitations apply. The limitations of subsection (a) shall apply, however, to earnings
under any other participating system under the Retirement Systems Reciprocal
Act that are considered in calculating the proportional annuity of a person who first became a member of this
System before August 22,
1994 if, on or after the effective date of this amendatory Act of the 97th General Assembly, that member irrevocably elects to have those limitations apply.
(c) In calculating the subsection (a) earnings limitation to be applied to
earnings under any other participating system under the Retirement Systems
Reciprocal Act for the purpose of calculating a proportional annuity under this
Article, the participant's last day of service shall be deemed to mean the last
day of service in any participating system from which the person has applied
for a proportional annuity under the Retirement Systems Reciprocal Act.
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
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(40 ILCS 5/2-109) (from Ch. 108 1/2, par. 2-109) (Text of Section before amendment by P.A. 103-746) Sec. 2-109. Military service. "Military service": Service in the United
States Army, Navy, Air Force, Marines or Coast Guard or any women's auxiliary
thereof.(Source: P.A. 87-794.) (Text of Section after amendment by P.A. 103-746) Sec. 2-109. Military service. "Military service": Service in the United States Army, Navy, Air Force, Space Force, Marines or Coast Guard or any women's auxiliary thereof.(Source: P.A. 103-746, eff. 1-1-25.) |
(40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
Sec. 2-110.
Service.
(A) "Service" means the period beginning on the day when a
person first became a member, and ending on the date under consideration,
excluding all intervening periods of nonmembership following resignation or
expiration of any term of office.
(B) "Service" includes:
(a) Military service during war by a person who | ||
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The amendment to this subdivision (B)(a) made by this | ||
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(b) Service as a judge of a court of this State, but | ||
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(c) Service as a participating employee under | ||
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(d) Service, before October 1, 1975, as an officer | ||
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(e) Service rendered prior to January 1, 1964, as a | ||
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(f) Service before January 16, 1981, as an officer | ||
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(C) Service during any fraction of a month shall be considered as a
month of service.
Service includes the total period of time for which
a participant is elected as a member or officer, even though
he or she does not complete the term because of death, resignation,
judicial decision, or operation of law, provided that the contributions
required under this Article for such entire period of office have been made
by or on behalf of the participant. In the case of a participant appointed
or elected to fill a vacancy, service includes the total period from
January 1 of the year in which his or her service commences to the end of
the term in which the vacancy occurs, provided the participant contributes
in the year of appointment an amount equal to the contributions that would
have been required had the participant received salary for the entire year.
The foregoing provisions relating to a participant appointed or elected to
fill a vacancy shall not apply if the participant was a member of the other
legislative chamber at the time of appointment or election.
(D) Notwithstanding the other provisions of this Section, if
application to transfer or establish service credit under paragraph (c) or
(e) of subsection (B) of this Section is made between January 1, 1992
and February 1, 1993, the contribution required for such credit shall be an
amount equal to (1) the contribution rate in effect for participants at the
date of membership in this system multiplied by the salary then in effect
for members of the General Assembly for each year of service for which
credit is being granted, plus (2) interest thereon at 6% per annum
compounded annually, from the date of membership to the date of payment by
the member, less (3) any amount transferred to this system on behalf of the
member on account of such service credit.
(Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)
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(40 ILCS 5/2-110.1) (from Ch. 108 1/2, par. 2-110.1)
Sec. 2-110.1.
Service credit for elected county, township or
municipal official. An active participant having no creditable service as
a participating employee under Article 7 of this Code may establish service
credit in this system for periods during which the participant held an
elective office in a county, township or municipality, (including the
full term for which elected if he or she resigned such office to enter the
armed forces of the United States), provided the member cannot establish
service credit under Article 7 for such periods because the county,
township or municipality did not and does not subscribe to coverage for
that office under that Article. Credit for such service may be
established in this system by the participant paying to this system an
amount equal to (1) the contribution rate in effect
for participants at the date of membership in this system multiplied by the
salary then in effect for the members of the General Assembly for each year
of service for which credit is allowed, plus (2) the State's share
of the normal cost of benefits under this system expressed as a percent
of payroll, as determined by the system's actuary as of the date of the
participant's membership in this system multiplied by the salary then in
effect for members of the General Assembly, for each year of service for
which credit is allowed, plus (3) interest on (1) and (2) above at 4% per
annum compounded annually from the date of membership to the date of payment
by the participant.
However, if application for such credit is made between January 1,
1992 and April 1, 1992, the applicant need not pay the amount indicated in
item (2) above, but only the sum of items (1) and (3).
(Source: P.A. 87-794.)
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(40 ILCS 5/2-110.2) (from Ch. 108 1/2, par. 2-110.2)
Sec. 2-110.2.
Age enhancement.
Any member or former member who
receives any age enhancement under Section 14-108.3 of this
Code shall be entitled to use such age enhancement under the Retirement
Systems Reciprocal Act for the purpose of establishing eligibility for and
calculating the amount of a retirement annuity payable under this Article,
notwithstanding the provisions of subsection (b) of Section 14-108.3.
(Source: P.A. 87-794.)
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(40 ILCS 5/2-111) (from Ch. 108 1/2, par. 2-111)
Sec. 2-111.
Annuity.
"Annuity": A series of monthly payments payable at
the end of each calendar month during the life of an annuitant. The first
payment shall be prorated for a fraction of a month to the end of the first
month. The last payment shall be made for the whole calendar month in which
death occurs.
(Source: P.A. 86-273.)
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(40 ILCS 5/2-112) (from Ch. 108 1/2, par. 2-112)
Sec. 2-112.
Annuitant.
"Annuitant": A person receiving a retirement annuity
or survivor's annuity.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-113) (from Ch. 108 1/2, par. 2-113)
Sec. 2-113.
Refund beneficiary.
"Refund beneficiary": The person entitled to receive refunds of a
deceased participant's contributions.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-114) (from Ch. 108 1/2, par. 2-114)
Sec. 2-114. Actuarial tables.
"Actuarial tables": Tabular listings of assumed rates of death,
disability, retirement and withdrawal from service and mathematical
functions derived from such rates combined with an assumed rate of interest
based upon the experience of the system as adopted by the board upon
recommendation of the actuary.
The adopted actuarial tables shall be used to determine the amount of all benefits under this Article, including any optional forms of benefits. Optional forms of benefits must be the actuarial equivalent of the normal benefit payable under this Article. (Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/2-115) (from Ch. 108 1/2, par. 2-115)
Sec. 2-115.
Prescribed rate of interest.
"Prescribed rate of interest": 3% per annum compounded annually, or such
other rate determined from the actual experience of the system as may be
prescribed by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-116) (from Ch. 108 1/2, par. 2-116)
Sec. 2-116.
Fiscal year.
"Fiscal year": The period beginning on July 1 in any year and ending on
June 30 of the next succeeding year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
Sec. 2-117.
Participants - Election not to participate.
(a) Every person who was a member on November 1, 1947, or in military
service on such date, is subject to the provisions of this system beginning
upon such date, unless prior to such date he or she filed with the board a
written notice of election not to participate.
Every person who becomes a member after November 1, 1947, and who is
then not a participant becomes a participant beginning upon the date of
becoming a member unless, within 24 months from that date, he or she has
filed with the board a written notice of election not to participate.
(b) A member who has filed notice of an election not to participate
(and a former member who has not yet begun to receive a retirement
annuity under this Article) may become a participant with respect to the period
for which the member elected not to participate upon filing with the board,
before April 1, 1993, a written rescission of the election not to participate.
Upon contributing an amount equal to the contributions he or she would have
made as a participant from November 1, 1947, or the date of becoming a member,
whichever is later, to the date of becoming a participant, with interest at the
rate of 4% per annum until the contributions are paid, the participant shall
receive credit for service as a member prior to the date of the rescission,
both before and after November 1, 1947. The required contributions shall be
made before commencement of the retirement annuity; otherwise no credit for
service prior to the date of participation shall be granted.
(Source: P.A. 86-273; 87-1265.)
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(40 ILCS 5/2-117.1) (from Ch. 108 1/2, par. 2-117.1)
Sec. 2-117.1.
Participants - Election to continue participation.
(a) Any person who has served as a member for 4 or more years or who has
elected to become a member pursuant to Section 2-105, and who is employed
in such a position as to be eligible to actively participate in one of the
retirement systems established under Articles 5 through 18 of this Code or
under the authority of the Illinois Housing Development Act, and who earns
in that capacity, at the time of making an election under
this subsection, an amount at least equal to the minimum salary provided by
law for members of the General Assembly, may elect after he or she ceases
to be a member, but in no event after June 1, 1992, to continue his or
her participation in this System for up to 4 additional years instead of
participating in such other retirement system, by making written application
to the board.
(b) A person who elects to continue participation under this Section shall
make contributions directly to the board, not less frequently than monthly,
at the rates specified for participants under Section 2-126. The State
shall continue to make contributions on behalf of persons participating
under this Section on the same basis as for other participants.
Creditable service shall be granted to any person for the period, not
exceeding 4 years, during which the person continues participation
under this Section and continues to make contributions as required.
(c) A person who elects to continue participation under this Section may
cancel such election at any time, and may apply to transfer
the creditable service accumulated under this Section to any one of the
retirement systems established under Articles 5 through 18 or the Illinois
Housing Development Act in which he or she is eligible to participate.
Upon such application, the board shall pay to such retirement system (1)
the amounts credited to the participant under this Section through
participant contributions, including interest, if any, on the date of
transfer, plus (2) employer contributions in an amount equal to the
amount determined under clause (1). Participation in this System as to any
credits transferred under this Section shall terminate on the date of transfer.
(Source: P.A. 86-272; 86-1488; 87-794.)
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(40 ILCS 5/2-117.2) (from Ch. 108 1/2, par. 2-117.2)
Sec. 2-117.2.
Transfer of creditable service to Article 8, 9 or 13
fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the
people who is a participant in a pension fund established under Article 9
of this Code, and any elected sanitary district commissioner who is a
participant in a pension fund established under Article 13 of this Code,
may apply for transfer of his or her creditable service accumulated under
this System to such Article 8, 9 or 13 fund. Such creditable service
shall be transferred forthwith. Payment by this System to the Article
8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts credited to the participant under | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in this System as to any credits
transferred under this Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner who has credits and creditable service under the
System may establish additional credits and creditable service for periods
during which he could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the System
of an amount equal to the contributions he would have made if he had
elected to participate, plus interest to the date of payment.
(c) Any such elected city officer, county officer or sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a refund, by payment to the System of the amount
of the refund plus interest thereon to the date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/2-117.3) (from Ch. 108 1/2, par. 2-117.3)
Sec. 2-117.3.
Payments and Rollovers.
(a) The Board may adopt rules
prescribing the manner of repaying refunds and purchasing any optional
credits permitted under this Article. The rules may prescribe the manner
of calculating interest when such payments or repayments are made in
installments.
(b) Rollover contributions from other retirement plans qualified under
the U.S. Internal Revenue Code may be used to purchase any optional credit
or repay any refund permitted under this Article.
(Source: P.A. 86-1488.)
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(40 ILCS 5/2-118) (from Ch. 108 1/2, par. 2-118)
Sec. 2-118.
Participants subject to survivor's
annuity. Every male participant in service after August 2, 1949 and each
female participant in
service after July 1, 1971 shall be subject to the provisions relating to
a survivor's annuity.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-119. Retirement annuity - conditions for eligibility. (a)
A participant whose service as a
member is terminated, regardless of age or cause, is entitled to a retirement
annuity beginning on the date specified by the participant in
a written application subject to the following conditions:
1. The date the annuity begins does not precede the | ||
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2. The participant meets one of the following | ||
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For a participant who first becomes a participant of | ||
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(A) He or she has attained age 55 and has at | ||
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(B) He or she has attained age 62 and terminated | ||
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(C) He or she has completed 8 years of service | ||
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For a participant who first becomes a participant of | ||
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(a-1) Notwithstanding subsection (a) of this Section, for a Tier 1 participant who begins receiving a retirement annuity under this Section on or after July 1, 2014, the required retirement age under subsection (a) is increased as follows, based on the Tier 1 participant's age on June 1, 2014: (1) If he or she is at least age 46 on June 1, 2014, | ||
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(2) If he or she is at least age 45 but less than age | ||
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(3) If he or she is at least age 44 but less than age | ||
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(4) If he or she is at least age 43 but less than age | ||
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(5) If he or she is at least age 42 but less than age | ||
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(6) If he or she is at least age 41 but less than age | ||
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(7) If he or she is at least age 40 but less than age | ||
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(8) If he or she is at least age 39 but less than age | ||
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(9) If he or she is at least age 38 but less than age | ||
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(10) If he or she is at least age 37 but less than | ||
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(11) If he or she is at least age 36 but less than | ||
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(12) If he or she is at least age 35 but less than | ||
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(13) If he or she is at least age 34 but less than | ||
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(14) If he or she is at least age 33 but less than | ||
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(15) If he or she is at least age 32 but less than | ||
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(16) If he or she is less than age 32 on June 1, | ||
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Notwithstanding Section 1-103.1, this subsection (a-1) applies without regard to whether or not the Tier 1 participant is in active service under this Article on or after the effective date of this amendatory Act of the 98th General Assembly. (a-5) A participant who first becomes a participant of this System on or after January 1, 2011 (the effective date of Public Act 96-889) who has attained age 62 and has at least 8 years of service credit may elect to receive the lower retirement annuity provided
in paragraph (c) of Section 2-119.01 of this Code. (b) A participant shall be considered permanently disabled only if:
(1) disability occurs while in service and is
of such a nature
as to prevent him or her from reasonably performing the duties of his
or her office at
the time; and (2) the board has received a written certificate by at
least 2 licensed physicians appointed by the board stating that the member is
disabled and that the disability is likely to be permanent.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-119. Retirement annuity - conditions for eligibility. (a)
A participant whose service as a
member is terminated, regardless of age or cause, is entitled to a retirement
annuity beginning on the date specified by the participant in
a written application subject to the following conditions:
1. The date the annuity begins does not precede the | ||
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2. The participant meets one of the following | ||
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For a participant who first becomes a participant of | ||
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(A) He or she has attained age 55 and has at | ||
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(B) He or she has attained age 62 and terminated | ||
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(C) He or she has completed 8 years of service | ||
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For a participant who first becomes a participant of | ||
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(a-5) A participant who first becomes a participant of this System on or after January 1, 2011 (the effective date of Public Act 96-889) who has attained age 62 and has at least 8 years of service credit may elect to receive the lower retirement annuity provided
in paragraph (c) of Section 2-119.01 of this Code. (b) A participant shall be considered permanently disabled only if:
(1) disability occurs while in service and is
of such a nature
as to prevent him or her from reasonably performing the duties of his
or her office at
the time; and (2) the board has received a written certificate by at
least 2 licensed physicians appointed by the board stating that the member is
disabled and that the disability is likely to be permanent.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01)
Sec. 2-119.01. Retirement annuities - Amount.
(a) For a participant
in service after June 30, 1977 who has not made contributions to this System
after January 1, 1982, the annual retirement annuity is 3% for each of the
first 8 years of service, plus 4% for each of the next 4 years of service,
plus 5% for each year of service in excess of 12 years, based on the
participant's highest salary for annuity purposes. The maximum
retirement annuity payable
shall be 80% of the participant's highest salary for
annuity purposes.
(b) For a participant in service after June 30, 1977 who has made
contributions to this System on or after January 1, 1982, the annual
retirement annuity is 3% for each of the first 4 years of service, plus 3
1/2% for each of the next 2 years of service, plus 4% for each of the next
2 years of service, plus 4 1/2% for each of the next 4 years of service,
plus 5% for each year of service in excess of 12 years, of the
participant's highest salary for annuity purposes. The maximum retirement
annuity payable shall be 85% of the participant's highest
salary for annuity purposes.
(c) Notwithstanding any other provision of this Article, for a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889), the annual
retirement annuity is 3% of the
participant's highest salary for annuity purposes for each year of service. The maximum retirement
annuity payable shall be 60% of the participant's highest
salary for annuity purposes. (d) Notwithstanding any other provision of this Article, for a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) and who is retiring after attaining age 62 with at least 8 years of service credit, the retirement annuity shall be reduced by one-half
of 1% for each month that the member's age is under age 67. (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) Except as otherwise provided in this Section, a participant who retires after June 30, 1967, and who has not
received an initial increase under this Section before the effective date
of this amendatory Act of 1991, shall, in January or July next following
the first anniversary of retirement, whichever occurs first, and in the same
month of each year thereafter, but in no event prior to age 60, have the amount
of the originally granted retirement annuity increased as follows: for each
year through 1971, 1 1/2%; for each year from 1972 through 1979, 2%; and for
1980 and each year thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of this amendatory
Act of 1991 shall continue to receive their annual increases in the same month
as the initial increase.
(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), for a Tier 1 retiree, all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $1,000 multiplied by the number of years of creditable service upon which the annuity is based. Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (a-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 participant who has not begun to receive a retirement annuity under this Article before July 1, 2014: (1) the second automatic annual increase payable | ||
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(2) the second, fourth, and sixth automatic annual | ||
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(3) the second, fourth, sixth, and eighth automatic | ||
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(4) the second, fourth, sixth, eighth, and tenth | ||
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For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (b) Beginning January 1, 1990, for eligible participants who remain
in service after attaining 20 years of creditable service, the increases
provided under subsection (a) shall begin to accrue on the January 1 next
following the date upon which the participant (1) attains age 55, or (2)
attains 20 years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service; such increases
shall become payable on January 1 or July 1, whichever occurs first, next
following the first anniversary of retirement. For any person who has service
credit in the System for the entire period from January 15, 1969 through
December 31, 1992, regardless of the date of termination of service, the
reference to age 55 in clause (1) of this subsection (b) shall be deemed to
mean age 50. The increases accruing under this subsection (b) after the effective date of this amendatory Act of the 98th General Assembly shall accrue at the rate provided in subsection (a-1).
This subsection (b) does not apply to any person who first becomes a
member of the System after the effective date of this amendatory Act of
the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Section, a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of each year thereafter, but in no event prior to age 67, have the amount of the retirement annuity then being paid increased by an amount calculated as a percentage of the originally granted retirement annuity, equal to 3% or one-half of the annual unadjusted percentage increase (but not less than zero) in the Consumer Price Index for All Urban Consumers for the 12 months ending with the preceding September, as determined by the Public Pension Division of the Department of Insurance and reported to the System by November 1 of each year, whichever is less. The changes made to this subsection (b-5) by this amendatory Act of the 98th General Assembly shall apply to increases provided under this subsection on or after the effective date of this amendatory Act without regard to whether service
terminated before that effective date. (c) The foregoing provisions relating to automatic increases are not
applicable to a participant who retires before having made contributions
(at the rate prescribed in Section 2-126) for automatic increases for less
than the equivalent of one full year. However, in order to be eligible for
the automatic increases, such a participant may make arrangements to pay
to the system the amount required to bring the total contributions for the
automatic increase to the equivalent of one year's contributions based upon
his or her last salary.
(d) A participant who terminated service prior to July 1, 1967, with at
least 14 years of service is entitled to an increase in retirement annuity
beginning January, 1976, and to additional increases in January of each
year thereafter.
The initial increase shall be 1 1/2% of the originally granted retirement
annuity multiplied by the number of full years that the annuitant was in
receipt of such annuity prior to January 1, 1972, plus 2% of the originally
granted retirement annuity for each year after that date. The subsequent
annual increases shall be at the rate of 2% of the originally granted
retirement annuity for each year through 1979 and at the rate of 3% for
1980 and thereafter. The increases provided under this subsection (d) on or after the effective date of this amendatory Act of the 98th General Assembly shall be at the rate provided in subsection (a-1), notwithstanding that service
terminated before that effective date.
(e) Except as may be provided in subsection (b-5), beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and who has not
received an initial increase under this Section before the effective date
of this amendatory Act of 1991, shall, in January or July next following
the first anniversary of retirement, whichever occurs first, and in the same
month of each year thereafter, but in no event prior to age 60, have the amount
of the originally granted retirement annuity increased as follows: for each
year through 1971, 1 1/2%; for each year from 1972 through 1979, 2%; and for
1980 and each year thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of this amendatory
Act of 1991 shall continue to receive their annual increases in the same month
as the initial increase.
(b) Beginning January 1, 1990, for eligible participants who remain
in service after attaining 20 years of creditable service, the 3% increases
provided under subsection (a) shall begin to accrue on the January 1 next
following the date upon which the participant (1) attains age 55, or (2)
attains 20 years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service; such increases
shall become payable on January 1 or July 1, whichever occurs first, next
following the first anniversary of retirement. For any person who has service
credit in the System for the entire period from January 15, 1969 through
December 31, 1992, regardless of the date of termination of service, the
reference to age 55 in clause (1) of this subsection (b) shall be deemed to
mean age 50.
This subsection (b) does not apply to any person who first becomes a
member of the System after the effective date of this amendatory Act of
the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article, a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of each year thereafter, but in no event prior to age 67, have the amount of the retirement annuity then being paid increased by 3% or the annual unadjusted percentage increase in the Consumer Price Index for All Urban Consumers as determined by the Public Pension Division of the Department of Insurance under subsection (a) of Section 2-108.1, whichever is less. (c) The foregoing provisions relating to automatic increases are not
applicable to a participant who retires before having made contributions
(at the rate prescribed in Section 2-126) for automatic increases for less
than the equivalent of one full year. However, in order to be eligible for
the automatic increases, such a participant may make arrangements to pay
to the system the amount required to bring the total contributions for the
automatic increase to the equivalent of one year's contributions based upon
his or her last salary.
(d) A participant who terminated service prior to July 1, 1967, with at
least 14 years of service is entitled to an increase in retirement annuity
beginning January, 1976, and to additional increases in January of each
year thereafter.
The initial increase shall be 1 1/2% of the originally granted retirement
annuity multiplied by the number of full years that the annuitant was in
receipt of such annuity prior to January 1, 1972, plus 2% of the originally
granted retirement annuity for each year after that date. The subsequent
annual increases shall be at the rate of 2% of the originally granted
retirement annuity for each year through 1979 and at the rate of 3% for
1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/2-120) (from Ch. 108 1/2, par. 2-120)
Sec. 2-120.
Reversionary annuity.
(a) Prior to retirement, a participant may elect to take a reduced
retirement annuity and provide, with the actuarial value of the
amount of the reduction in annuity, a reversionary annuity
for a spouse, parent, child, brother or sister. The option shall be
exercised by the filing of a written designation with the board prior to
retirement, and may be revoked by the participant at any
time before retirement.
The death of the participant or the designated
reversionary annuitant
prior to the participant's retirement shall automatically
void this option. If
the reversionary annuitant dies after the participant's
retirement, the reduced
annuity being paid to the retired participant shall remain
unchanged and no
reversionary annuity shall be payable.
(b) A reversionary
annuity shall not be payable if the participant
dies before the expiration of 2 years
from the date the written designation was filed with the board even though
he or she had retired and was receiving a reduced retirement annuity under this
option.
(c) A reversionary annuity shall begin on the first day of the month
following the death of the annuitant and
continue until the death of the reversionary annuitant.
(d) For a member electing to take a reduced annuity under this Section,
the automatic increases provided in Section 2-119.1 shall be
applied to
the amount of the reduced retirement annuity.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
Sec. 2-121. Survivor's annuity - conditions for payment.
(a) A survivor's annuity shall be payable to a surviving spouse or
eligible child (1) upon the death in service of a participant with at least
2 years of service credit, or (2) upon the death of an annuitant in receipt
of a retirement annuity, or (3) upon the death of a participant who terminated
service with at least 4 years of service credit.
The change in this subsection (a) made by this amendatory Act of 1995
applies to survivors of participants who die on or after December 1, 1994,
without regard to whether or not the participant was in service on or after
the effective date of this amendatory Act of 1995.
(b) To be eligible for the survivor's annuity, the spouse and the
participant or annuitant must have been married for a continuous period of at
least one year immediately preceding the date of death, but need not have
been married on the day of the participant's last termination of service,
regardless of whether such termination occurred prior to the effective date
of this amendatory Act of 1985.
(c) The annuity shall be payable beginning on the date of a
participant's death, or the first of the month following an annuitant's
death, if the spouse is then age 50 or over, or beginning at age 50 if the
spouse is then under age 50. If an eligible child or children of the
participant or annuitant (or a child or children of the eligible spouse
meeting the criteria of item (1), (2), or (3) of subsection (d) of this
Section) also survive, and the child or children are under
the care of the eligible spouse, the annuity shall begin as of the date of
a participant's death, or the first of the month following an annuitant's
death, without regard to the spouse's age.
The change to this subsection made by this amendatory Act of 1998
(relating to children of an eligible spouse) applies to the eligible spouse
of a participant or annuitant who dies on or after the effective date of this
amendatory Act, without regard to whether the participant or annuitant is in
service on or after that effective date.
(c-5) Upon the death in service of a participant during the 90th General Assembly, the survivor's annuity shall be payable prior to age 50, notwithstanding subsection (c) of this Section, provided that the deceased participant had at least 6 years of service. This subsection (c-5) applies to the eligible spouse of a deceased participant without regard to whether the deceased participant was in service on or after the effective date of this amendatory Act of the 96th General Assembly, and retroactive benefits may be paid for periods of eligibility after February 28, 2009. (d) For the purposes of this Section and Section 2-121.1, "eligible child"
means a child of the deceased participant or annuitant
who is at least one of the following:
(1) unmarried and under the age of 18;
(2) unmarried, a full-time student, and under the age | ||
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(3) dependent by reason of physical or mental | ||
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The inclusion of unmarried students under age 22 in the calculation of
survivor's annuities by this amendatory Act of 1991 shall apply to all
eligible students beginning January 1, 1992, without regard to whether the
deceased participant or annuitant was in service on or after the effective
date of this amendatory Act of 1991.
(e) Remarriage of a surviving spouse prior to attainment of age 55
shall disqualify the surviving spouse from the receipt of a survivor's
annuity, if the remarriage occurs before the effective date of this
amendatory Act of the 91st General Assembly.
The changes made to this subsection by this amendatory Act of the 91st
General Assembly (pertaining to remarriage prior to age 55) apply without
regard to whether the deceased participant or annuitant was in service on or
after the effective date of this amendatory Act.
(Source: P.A. 95-279, eff. 1-1-08; 96-775, eff. 8-28-09.)
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(40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
Sec. 2-121.1. Survivor's annuity; amount.
(a) A surviving spouse shall be entitled to 66 2/3% of the amount of
retirement annuity to which the participant or annuitant was entitled on
the date of death, without regard to whether the participant had attained
age 55 prior to his or her death, subject to a minimum payment of 10% of
salary. If a surviving spouse, regardless of age, has in his or her care
at the date of death any eligible child or children of the participant, the
survivor's annuity shall be the greater of the following: (1) 66 2/3% of
the amount of retirement annuity to which the participant or annuitant was
entitled on the date of death, or (2) 30% of the participant's salary
increased by 10% of salary on account of each such child, subject to a
total payment for the surviving spouse and children of 50% of salary. If
eligible children survive but there is no surviving spouse, or if the
surviving spouse dies or becomes disqualified by
remarriage while eligible children survive, each
eligible child shall be entitled to an annuity of 20% of salary, subject
to a maximum total payment for all such children of 50% of salary.
However, the survivor's annuity payable under this Section shall not be
less than 100% of the amount of retirement annuity to which the participant
or annuitant was entitled on the date of death, if he or she is survived by
a dependent disabled child.
The salary to be used for determining these benefits shall be the
salary used for determining the amount of retirement annuity as provided
in Section 2-119.01.
(b) Upon the death of a participant after the termination of service or
upon death of an annuitant, the maximum total payment to a surviving spouse
and eligible children, or to eligible children alone if there is no surviving
spouse, shall be 75% of the retirement annuity to which the participant
or annuitant was entitled, unless there is a dependent disabled child
among the survivors.
(c) When a child ceases to be an eligible child, the annuity to that
child, or to the surviving spouse on account of that child, shall thereupon
cease, and the annuity payable to the surviving spouse or other eligible
children shall be recalculated if necessary.
Upon the ineligibility of the last eligible child, the annuity shall
immediately revert to the amount payable upon death of a participant or
annuitant who leaves no eligible children. If the surviving spouse is then
under age 50, the annuity as revised shall be deferred until the attainment
of age 50.
(d) Beginning January 1, 1990, every survivor's annuity shall be increased
(1) on each January 1 occurring on or after the commencement of the annuity if
the deceased member died while receiving a retirement annuity, or (2) in
other cases, on each January 1 occurring on or after the first anniversary
of the commencement of the annuity, by an amount equal to 3% of the current
amount of the annuity, including any previous increases under this Article.
Such increases shall apply without regard to whether the deceased member
was in service on or after the effective date of this amendatory Act of
1991, but shall not accrue for any period prior to January 1, 1990.
(d-5) Notwithstanding any other provision of this Article, the initial survivor's annuity of a survivor of a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall be in the amount of 66 2/3% of the amount of the retirement annuity to which the participant or annuitant was entitled on the date of death and shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if
the deceased member died while receiving a retirement annuity or (2) in
other cases, on each January 1 occurring on or after the first anniversary
of the commencement of the annuity, by an amount equal to 3% or the annual unadjusted percentage increase in the Consumer Price Index for All Urban Consumers as determined by the Public Pension Division of the Department of Insurance under subsection (a) of Section 2-108.1, whichever is less, of the survivor's annuity then being paid. The provisions of this subsection (d-5) shall not apply to a survivor's annuity of a survivor of a participant who died in service before January 1, 2023. (e) Notwithstanding any other provision of this Article, beginning
January 1, 1990, the minimum survivor's annuity payable to any person who
is entitled to receive a survivor's annuity under this Article shall be
$300 per month, without regard to whether or not the deceased participant
was in service on the effective date of this amendatory Act of 1989.
(f) In the case of a proportional survivor's annuity arising under
the Retirement Systems Reciprocal Act where the amount payable by the
System on January 1, 1993 is less than $300 per month, the amount payable
by the System shall be increased beginning on that date by a monthly amount
equal to $2 for each full year that has expired since the annuity began.
(g) Notwithstanding any other provision of this Code, the survivor's annuity payable to an eligible survivor of a Tier 2 participant who died in service prior to January 1, 2023 shall be calculated in accordance with the provisions applicable to the survivors of a deceased Tier 1 participant. Notwithstanding Section 1-103.1, the changes to this Section made by this amendatory Act of the 103rd General Assembly apply without regard to whether the participant was in active service before the effective date of the changes made to this Section by this amendatory Act of the 103rd General Assembly. (Source: P.A. 103-8, eff. 6-7-23.)
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(40 ILCS 5/2-121.2) (from Ch. 108 1/2, par. 2-121.2)
Sec. 2-121.2.
Reduction of disability and survivor's benefits for
corresponding
benefits payable under Workers' Compensation and Workers' Occupational Diseases
Acts. Whenever a person is entitled to a disability or survivor's benefit
under this Article and to benefits under the Workers' Compensation Act or
the Workers' Occupational Diseases Act for the same injury or disease, the
benefits payable under this Article shall be reduced by the amount of benefits
payable under either of those Acts. There shall be no reduction, however,
for payments for medical, surgical and hospital services, non-medical remedial
care and treatment rendered in accordance with a religious method of healing
recognized by the laws of this State, and for artificial appliances, and
fixed statutory payments for the loss of or the permanent and complete loss
of the use of any bodily member. If the benefits deductible under this
Section are stated in a weekly amount, the monthly amount for the purposes
of this Section shall be 4 1/3 times the weekly amount.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-121.3) (from Ch. 108 1/2, par. 2-121.3)
Sec. 2-121.3. Required distributions. (a) A person who would be
eligible to receive a survivor's annuity under this Article but for the
fact that the person has not yet attained age 50, shall be eligible for a
monthly distribution under this subsection (a), provided that the payment
of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987, (ii) December
1 of the calendar year immediately following the calendar year in which the
deceased spouse died, or (iii) December 1 of the calendar year in which the
deceased spouse would have attained age 72, whichever occurs last, and
shall remain payable until the first of the following to occur: (1) the
person becomes eligible to receive a survivor's annuity under this Article;
(2) the end of the month in which the person ceases to be eligible to
receive a survivor's annuity upon attainment of age 50, due to remarriage
or death; or (3) the end of the month in which such distribution ceases to
be required by federal law.
The amount of the distribution shall be fixed at the time the
distribution first becomes payable, and shall be calculated in the same
manner as a survivor's annuity under Sections 2-121, 2-121.1 and 2-121.2,
but excluding: (A) any requirement for an application for the distribution;
(B) any automatic annual increases, supplemental increases, or one-time
increases that may be provided by law for survivor's annuities; and (C) any
lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall be deemed to be
required by federal law if: (1) directly mandated by federal statute, rule,
or administrative or court decision; or (2) indirectly mandated through
imposition of substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member need not be
in service on or after the effective date of this amendatory Act of 1989
for the member's surviving spouse to be eligible for a
distribution under this Section.
(Source: P.A. 102-210, eff. 7-30-21.)
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(40 ILCS 5/2-122) (from Ch. 108 1/2, par. 2-122)
Sec. 2-122. Re-entry after retirement. An annuitant who re-enters service as a member shall become a
participant on the date of re-entry and retirement annuity
payments shall cease at that time. The participant shall resume contributions
to the system on the date of re-entry at the rates then in effect and shall
begin to accrue additional service credit. He or she shall be entitled
to all rights
and privileges in the system, including death and disability benefits,
subject to the limitations herein provided, except refund of retirement
annuity contributions.
Upon subsequent retirement, the participant shall be entitled
to a retirement
annuity consisting of: (1) the amount of retirement annuity previously
granted and terminated by re-entry into service; and (2) the
amount of additional retirement annuity earned during the
additional service based on the provisions in effect at the date of such subsequent
retirement. However, the total retirement annuity shall not
exceed the maximum retirement annuity applicable
at the date of the participant's last
retirement. If the salary
of the participant following the latest re-entry
into service is higher than
that in effect at the date of the previous retirement and the
participant
restores to the system all amounts previously received as
retirement annuity payments, upon subsequent
retirement, the retirement annuity shall be recalculated
for all service credited under the system as though the participant
had not previously retired.
The repayment of retirement annuity payments
must be made by
the participant in a single sum or by a withholding from
salary
within a period of 6 years from date of re-entry and in any event before
subsequent retirement. If previous annuity payments have not been repaid
to the system at the date of death of the participant,
any remaining
balance must be fully repaid to the system before any further annuity
shall be payable.
Such member, if unmarried at date of his last retirement, shall also
be entitled to a refund of widow's and widower's annuity contributions,
without interest, covering the period from the date of re-entry into
service to the date of last retirement.
Notwithstanding any other provision of this Article, if a person who first becomes a participant under this System on or after January 1, 2011 (the effective date of Public Act 96-889) is receiving a retirement annuity under this Article and becomes a member or participant under this Article or any other Article of this Code and is employed on a full-time basis, then the person's retirement annuity under this System shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity shall resume and, if appropriate, be recalculated under the applicable provisions of this Article.(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
Sec. 2-123.
Refunds.
(a) A participant who ceases to be a member, other than an annuitant, shall,
upon written request, receive a refund of his or her total contributions,
without interest. The refund shall include the additional contributions for
the automatic increase in retirement annuity. By accepting the refund, a
participant forfeits all accrued rights and benefits in the System and loses
credit for all service. However, if he or she again becomes a member, he or
she may resume status as a participant and reestablish any forfeited service
credit by paying to the System the full amount refunded, together with interest
at 4% per annum from the time the refund is paid to the date the member again
becomes a participant.
A former member of the General Assembly may reestablish any service
credit forfeited by acceptance of a refund by paying to the System on or
before February 1, 1993, the full amount refunded, together with interest at
4% per annum from the date of payment of the refund to the date of repayment.
When a member or former member owes money to the System, interest at
the rate of 4% per annum shall accrue and be payable on such amounts owed
beginning on the date of termination of service as a member until the
contributions due have been paid in full.
(b) A participant who (1) has elected to cease making contributions for
survivor's annuity under subsection (b) of Section 2-126, (2) has no eligible
survivor's annuity beneficiary upon becoming an annuitant,
or (3) terminates service with less than 8 years of service is
entitled to a refund of the contributions for a survivor's annuity, without
interest. If the person later marries, a survivor's annuity shall
not be payable upon his or her death, unless the amount of the
refund is repaid to the System, together with interest at the rate of 4% per
year from the date of refund to the date of repayment.
(c) If at the date of retirement or death of a participant who
served as an officer of the General Assembly, the total period of
such service is less than 4 years, the additional contributions made
by such member on the additional salary as an officer shall be refunded
unless the participant served as an officer for at least 2 years and has
contributed the amount he or she would have contributed if he or she had
served as an officer for 4 years as provided in Section 2-126.
(d) Upon the termination of the last survivor's annuity payable to a
survivor of a deceased participant, the excess, if any, of the total
contributions made by the participant for retirement and survivor's annuity,
without interest, over the total amount of retirement and survivor's annuity
payments received by the participant and the participant's survivors shall be
refunded upon request:
(i) if there was a surviving spouse of the deceased | ||
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(ii) if there was no eligible surviving spouse of the | ||
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(e) Upon the death of a participant, if a survivor's annuity is not
payable under this Article, a beneficiary designated by the participant
shall be entitled to a refund of all contributions made by the participant.
If the participant has not designated a refund beneficiary, the surviving
spouse shall be entitled to the refund of contributions; if there is no
surviving spouse, the contributions shall be refunded to
the participant's surviving children, if any, and if no children
survive, the refund payment shall be made to the participant's estate.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
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(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with the contributions of
participants, interest earned on investments, and other income
will meet the cost of maintaining and administering the System on a 90%
funded basis in accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and the
prescribed rate of interest, using the formula in subsection (c).
(c) For State fiscal years 2012 through 2045, the minimum contribution
to the System to be made by the State for each fiscal year shall be an amount
determined by the System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the required State
contribution shall be calculated each year as a level percentage of payroll
over the years remaining to and including fiscal year 2045 and shall be
determined under the projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution. A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be
implemented: (i) as already applied in State fiscal years before | ||
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(ii) in the portion of the 5-year period beginning in | ||
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For State fiscal years 1996 through 2005, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments so that by State fiscal year 2011, the
State is contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2006 is $4,157,000.
Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2007 is $5,220,300.
For each of State fiscal years 2008 through 2009, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $10,454,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable. Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011 pursuant to Section 2-134 and shall be made from the proceeds of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2011, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable. Beginning in State fiscal year 2046, the minimum State contribution for
each fiscal year shall be the amount needed to maintain the total assets of
the System at 90% of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the required State
contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and
certified under Section 2-134, shall not exceed an amount equal to (i) the
amount of the required State contribution that would have been calculated under
this Section for that fiscal year if the System had not received any payments
under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus
(ii) the portion of the State's total debt service payments for that fiscal
year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined
and certified by the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General
Obligation Bond Act, so that, by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.
(d) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows: As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date. In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year. (e) For purposes of determining the required State contribution to the system for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the system's actuarially assumed rate of return. (Source: P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-125. Obligations of State; funding guarantee. (a) The payment of (1) the required State contributions, (2) all benefits
granted under this system and (3) all expenses of administration and
operation are obligations of the State to the extent specified in this
Article.
(b) All income, interest and dividends derived from deposits and investments
shall be credited to the account of the system in the State Treasury and
used to pay benefits under this Article.
(c) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law. Notwithstanding any other provision of law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment. If the System submits a voucher for contributions required under Section 2-124 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher. This subsection (c) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 2-124. (d) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and, if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be. If the State fails to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be. This subsection (d) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act. The obligations created by this subsection (d) expire when all of the requirements of subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met. (e) Any payments and transfers required to be made by the State pursuant to subsection (c) or (d) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations.(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-125. Obligations of State. The payment of (1) the required State contributions, (2) all benefits
granted under this system and (3) all expenses of administration and
operation are obligations of the State to the extent specified in this
Article.
All income, interest and dividends derived from deposits and investments
shall be credited to the account of the system in the State Treasury and
used to pay benefits under this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-126. Contributions by participants.
(a) Each participant shall contribute toward the cost of his or her
retirement annuity a percentage of each payment of salary received by him or
her for service as a member as follows: for service between October 31, 1947
and January 1, 1959, 5%; for service between January 1, 1959 and June 30, 1969,
6%; for service between July 1, 1969 and January 10, 1973, 6 1/2%; for service
after January 10, 1973, 7%; for service after December 31, 1981, 8 1/2%.
(b) Beginning August 2, 1949, each male participant, and from July 1,
1971, each female participant shall contribute towards the cost of the
survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity beneficiary may elect
to cease making contributions for survivor's annuity under this subsection.
A survivor's annuity shall not be payable upon the death of a person who has
made this election, unless prior to that death the election has been revoked
and the amount of the contributions that would have been paid under this
subsection in the absence of the election is paid to the System, together
with interest at the rate of 4% per year from the date the contributions
would have been made to the date of payment.
(c) Beginning July 1, 1967 and, in the case of Tier 1 participants, ending on June 30, 2014, each participant shall contribute 1% of
salary towards the cost of automatic increase in annuity provided in
Section 2-119.1. These contributions shall be made concurrently with
contributions for retirement annuity purposes.
(d) In addition, each participant serving as an officer of the General
Assembly shall contribute, for the same purposes and at the same rates
as are required of a regular participant, on each additional payment
received as an officer. If the participant serves as an
officer for at least 2 but less than 4 years, he or she shall
contribute an amount equal to the amount that would have been contributed
had the participant served as an officer for 4 years. Persons who serve
as officers in the 87th General Assembly but cannot receive the additional
payment to officers because of the ban on increases in salary during their
terms may nonetheless make contributions based on those additional payments
for the purpose of having the additional payments included in their highest
salary for annuity purposes; however, persons electing to make these
additional contributions must also pay an amount representing the
corresponding employer contributions, as calculated by the System.
(e) Notwithstanding any other provision of this Article, the required contribution of a participant who first becomes a participant on or after January 1, 2011 shall not exceed the contribution that would be due under this Article if that participant's highest salary for annuity purposes were $106,800, plus any increases in that amount under Section 2-108.1. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 2-126. Contributions by participants.
(a) Each participant shall contribute toward the cost of his or her
retirement annuity a percentage of each payment of salary received by him or
her for service as a member as follows: for service between October 31, 1947
and January 1, 1959, 5%; for service between January 1, 1959 and June 30, 1969,
6%; for service between July 1, 1969 and January 10, 1973, 6 1/2%; for service
after January 10, 1973, 7%; for service after December 31, 1981, 8 1/2%.
(b) Beginning August 2, 1949, each male participant, and from July 1,
1971, each female participant shall contribute towards the cost of the
survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity beneficiary may elect
to cease making contributions for survivor's annuity under this subsection.
A survivor's annuity shall not be payable upon the death of a person who has
made this election, unless prior to that death the election has been revoked
and the amount of the contributions that would have been paid under this
subsection in the absence of the election is paid to the System, together
with interest at the rate of 4% per year from the date the contributions
would have been made to the date of payment.
(c) Beginning July 1, 1967, each participant shall contribute 1% of
salary towards the cost of automatic increase in annuity provided in
Section 2-119.1. These contributions shall be made concurrently with
contributions for retirement annuity purposes.
(d) In addition, each participant serving as an officer of the General
Assembly shall contribute, for the same purposes and at the same rates
as are required of a regular participant, on each additional payment
received as an officer. If the participant serves as an
officer for at least 2 but less than 4 years, he or she shall
contribute an amount equal to the amount that would have been contributed
had the participant served as an officer for 4 years. Persons who serve
as officers in the 87th General Assembly but cannot receive the additional
payment to officers because of the ban on increases in salary during their
terms may nonetheless make contributions based on those additional payments
for the purpose of having the additional payments included in their highest
salary for annuity purposes; however, persons electing to make these
additional contributions must also pay an amount representing the
corresponding employer contributions, as calculated by the System.
(e) Notwithstanding any other provision of this Article, the required contribution of a participant who first becomes a participant on or after January 1, 2011 shall not exceed the contribution that would be due under this Article if that participant's highest salary for annuity purposes were $106,800, plus any increases in that amount under Section 2-108.1. (Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
Sec. 2-126.1.
Pickup of contributions.
(a) The State shall pick up the participant contributions
required under Section 2-126 for all salary
earned after December 31, 1981. The contributions so picked
up shall be treated as employer contributions in determining tax treatment
under the United States Internal Revenue Code. The State shall pay these
participant contributions from the same source of funds which is used in
paying salary to the participant. The State may pick up these
contributions by a reduction in the cash salary of the participant.
If participant contributions are picked up
they shall be treated for all purposes of this Article 2 in the same manner
as participant contributions that were made prior to the date that the
pick up of contributions began.
(b) Subject to the requirements of federal law, a participant may elect to
have the employer pick up optional contributions that the participant has
elected to pay to the System, and the contributions so picked up shall be
treated as employer contributions for the purposes of determining federal tax
treatment. The employer shall pick up the contributions by a reduction in the
cash salary of the participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant.
The election to have optional contributions picked up is irrevocable and the
optional contributions may not thereafter be prepaid, by direct payment or
otherwise. If the provision authorizing the optional contribution requires
payment by a stated date (rather than the date of withdrawal or retirement),
that requirement shall be deemed to have been satisfied if (i) on or before the
stated date the participant executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the picked-up
contributions are in fact paid to the System as provided in the election.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
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(40 ILCS 5/2-126.5) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 2-126.5. Use of contributions for health care subsidies. The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-599, eff. 6-1-14.) |
(40 ILCS 5/2-127) (from Ch. 108 1/2, par. 2-127)
Sec. 2-127. Board created. The system shall be administered by a board
of trustees of 7 members as follows: 3 members of the
Senate appointed by the President; 3 members of the House of
Representatives appointed by the Speaker; and one person elected
from the member annuitants under rules prescribed by the board. Only
participants are eligible to serve as board members. Not more
than 2 members of the House of Representatives, and not more than 2 members
of the Senate so appointed shall be of the same political party. Appointed
board members shall serve for 2-year terms. If the office of President of
the Senate or Speaker of the House is vacant or its incumbent is not
a participant, the position of trustee otherwise occupied by such officers
shall be deemed vacant and be filled by appointment by the Governor with a
member of the Senate or the House, as the case may be. This appointment
shall be of the same political party as the vacated position.
Elections for the annuitant member shall be held in January of 1993 and
every fourth year thereafter. Nominations and
elections shall be conducted in accordance with such procedures as the
Board may prescribe. In the event that only one eligible person is
nominated, the Board may declare the nominee elected at the close of the
nomination period, and need not conduct an election. The annuitant member
elected in 1989 shall serve for a term of 4 years beginning February 1,
1989; thereafter, an annuitant member shall serve for a period of
4 years from the February 1st immediately following the date
of election, and until a successor is elected and qualified.
Every person designated to serve as a trustee shall take an oath of
office and shall thereupon qualify as a trustee. The oath shall state that
the person will diligently and honestly administer the affairs of the
system, and will not knowingly violate or wilfully permit the violation of
any of the provisions of this Article.
(Source: P.A. 101-307, eff. 8-9-19.)
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(40 ILCS 5/2-128) (from Ch. 108 1/2, par. 2-128)
Sec. 2-128.
Board vacancy.
A vacancy in the office of an appointed or ex-officio member occurring
during the session of the General Assembly shall be filled by appointment
for the unexpired term in the manner provided in Section
2-127 for the initial selection of such members. A vacancy occurring during the
interim recess of the General Assembly shall be filled by the Governor for
the unexpired term.
An annuitant trustee shall be disqualified to serve as trustee upon
removal of his or her permanent residence from the State of Illinois.
A vacancy in the office of an annuitant member shall be
filled for the unexpired term by the remaining members of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-129) (from Ch. 108 1/2, par. 2-129)
Sec. 2-129.
Board voting.
Each trustee is entitled to one vote on any action of the board.
Not less than 4 concurring votes shall be necessary for action by the board at
any meeting. No decision or action shall be effective unless so approved by
the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-130) (from Ch. 108 1/2, par. 2-130)
Sec. 2-130.
Board powers and duties.
The board shall have the powers and duties stated in Sections 2-131 through
2-143, in addition to the other powers
and duties provided in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-131) (from Ch. 108 1/2, par. 2-131)
Sec. 2-131.
To hold meetings.
To hold regular meetings at least
twice in each year, and special meetings at such times as are deemed
necessary by the board. At least 10 days' notice of each meeting shall be
given to each trustee. All meetings shall be open to the public and shall
be held in the office of the board.
(Source: P.A. 86-273.)
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(40 ILCS 5/2-132) (from Ch. 108 1/2, par. 2-132)
Sec. 2-132.
To authorize payments.
To consider and pass on all applications for annuities and refunds; to
authorize the granting of all annuities and refunds; to suspend any
payment or payments, all in accordance with this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-133) (from Ch. 108 1/2, par. 2-133)
Sec. 2-133.
To certify interest rate and adopt actuarial tables.
To certify in the records of the board the prescribed interest rate, and
to adopt all necessary actuarial tables in accordance with recommendations
of the actuary.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134) Sec. 2-134. To certify required State contributions and submit vouchers. (a) The Board shall certify to the Governor on or before December 15 of each year until December 15, 2011 the amount of the required State contribution to the System for the next fiscal year and shall specifically identify the System's projected State normal cost for that fiscal year. The certification shall include a copy of the actuarial recommendations upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year. On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and every January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking into account the amounts appropriated to and received by the System under subsection (d) of Section 7.2 of the General Obligation Bond Act. On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly. On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date. By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (b) Unless otherwise directed by the Comptroller under subsection (b-1), the Board shall submit vouchers for payment of State contributions to the System for the applicable month on the 15th day of each month, or as soon thereafter as may be practicable. The amount vouchered for a monthly payment shall total one-twelfth of the required annual State contribution certified under subsection (a). (b-1) Beginning in State fiscal year 2025, if the Comptroller requests that the Board submit, during a State fiscal year, vouchers for multiple monthly payments for advance payment of State contributions due to the System for that State fiscal year, then the Board shall submit those additional monthly vouchers as directed by the Comptroller, notwithstanding subsection (b). Unless an act of appropriations provides otherwise, nothing in this Section authorizes the Board to submit, in a State fiscal year, vouchers for the payment of State contributions to the System in an amount that exceeds the rate of payroll that is certified by the System under this Section for that State fiscal year. (b-2) The vouchers described in subsections (b) and (b-1) shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year. If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this Section, the difference shall be paid from the General Revenue Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (c) The full amount of any annual appropriation for the System for State fiscal year 1995 shall be transferred and made available to the System at the beginning of that fiscal year at the request of the Board. Any excess funds remaining at the end of any fiscal year from appropriations shall be retained by the System as a general reserve to meet the System's accrued liabilities.(Source: P.A. 103-588, eff. 6-5-24.) |
(40 ILCS 5/2-136) (from Ch. 108 1/2, par. 2-136)
Sec. 2-136.
To provide for examination of disability annuitants.
To provide for the examination of disability annuitants at least once
each year during the continuance of disability prior to age 60. The
examination shall be by one or more licensed physicians designated by the
board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-137) (from Ch. 108 1/2, par. 2-137)
Sec. 2-137.
To establish an office.
To establish an office or offices with suitable space for the meetings
of the board and for the necessary administrative personnel. All books and
records shall be kept in such offices.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-138) (from Ch. 108 1/2, par. 2-138)
Sec. 2-138.
To hire employees.
To appoint a secretary and employ such other actuarial, medical,
clerical or other help as shall be required for the efficient
administration of the system and to determine and fix their rate of pay.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-139) (from Ch. 108 1/2, par. 2-139)
Sec. 2-139.
To keep records and accounts.
To keep a permanent record of all proceedings of the board, a separate
account for each individual member and such additional data as are specified
by the actuary as necessary for required calculations and valuations.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-139.1) Sec. 2-139.1. To request information. To request from any member, annuitant, beneficiary, or employer such information as is necessary for the proper administration of the System.
(Source: P.A. 99-450, eff. 8-24-15.) |
(40 ILCS 5/2-140) (from Ch. 108 1/2, par. 2-140)
Sec. 2-140.
To have an audit and submit statements.
To have the accounts of the system audited at least biennially by a
certified public accountant designated by the Auditor General and to submit
an annual statement to the Governor as soon as possible after the end of
each fiscal year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-141) (from Ch. 108 1/2, par. 2-141)
Sec. 2-141.
To accept gifts.
To accept any gift, grant or bequest of any money or securities. If the
grantor specifies the purpose of providing cash benefits for some or all of
the participants or annuitants of the system, the gift shall be so used; if
no such purpose is designated, the gift shall be used to reduce the costs
of the State for providing benefits.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-142) (from Ch. 108 1/2, par. 2-142)
Sec. 2-142.
To submit individual statement.
To submit an individual statement to any participating member upon the
member's request. The statement shall show the amount of accumulations
to the member's credit as of the latest date practicable.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-143) (from Ch. 108 1/2, par. 2-143)
Sec. 2-143.
To establish rules.
To establish rules necessary for the efficient administration of the
system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-144) (from Ch. 108 1/2, par. 2-144)
Sec. 2-144.
Secretary.
The secretary shall be in charge of the administration of the
detailed affairs of the system and, in addition to such other powers and
duties as are delegated by the board, shall:
(1) Collect and record the receipt of all income of the system,
including participants' contributions, State contributions, interest and
principal collections on investments as they become due and payable,
and other income accruing to the system, and immediately deposit them
with the State Treasurer for the account of the system;
(2) Sign vouchers requesting the State Comptroller to draw warrants
upon the State Treasurer in accordance with resolutions of the board,
authorizing payments of benefits, refunds and expenses out of the funds
of the system;
(3) Certify to the State, the names of the persons from whose salary deductions
are to be made and the amounts or rates to be so deducted.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-145) (from Ch. 108 1/2, par. 2-145)
Sec. 2-145.
Treasurer.
The State Treasurer shall be ex-officio the
treasurer of the system and shall:
(1) Act as official custodian of the cash and securities of the system
and provide adequate safe deposit facilities for the preservation of such
securities, and hold such cash and securities subject to the order of the
board;
(2) Receive from the secretary all items of cash belonging to the
system, including participants' contributions, State contributions,
interest and principal on investments and other income accruing to the
system, and deposit all such amounts in a special trust fund for the
account of the system;
(3) Make payments for purposes specified in this Article upon warrants
or direct deposit transmittals of the State Comptroller drawn in accordance
with vouchers signed by the secretary pursuant to resolutions of the board;
(4) Submit to the board at least once each month a statement of all
receipts for the account of the system and all payments chargeable to the
system;
(5) Furnish a corporate surety bond acceptable to the board in such
amount as the board shall designate. The bond shall indemnify the board
against any loss which may result from any action or omission of the
Treasurer or any of the Treasurer's agents. All reasonable charges
incidental to the procuring and giving of the bond shall be paid by the board.
Any cash accruing to the system not required for current
expenditures by the system shall be transferred to the Illinois State
Board of Investment for purposes of investment.
Until such transfer is made, those funds shall be invested temporarily by
the Treasurer on behalf of the system and interest earned thereon shall be
credited to the trust fund of the system.
(Source: P.A. 86-273.)
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(40 ILCS 5/2-146) (from Ch. 108 1/2, par. 2-146)
Sec. 2-146. Actuary. The actuary shall be the technical advisor of the
board and, in addition to supplying general information on technical matters, shall:
(1) Make an investigation at least once every 3 years | ||
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(2) Make an annual valuation of the liabilities and | ||
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(Source: P.A. 99-232, eff. 8-3-15.)
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(40 ILCS 5/2-147) (from Ch. 108 1/2, par. 2-147)
Sec. 2-147.
State Comptroller.
The State Comptroller in drawing salary warrants on payroll vouchers
for members shall draw such warrants to participants for the
salary specified less the member contributions to be deducted,
as certified
in the vouchers, and shall draw a warrant to the system for
the total of the contributions so withheld on each such payroll voucher.
The warrant drawn to the system, and the additional copy of the payroll,
shall be transmitted immediately to the secretary.
The Comptroller shall draw warrants or prepare direct deposit transmittals
upon the State Treasurer payable
from the funds of this system for purposes of this Article
upon the presentation of vouchers approved by the secretary in
accordance with resolutions of the board, and in
the exercise of the investment authority, upon presentation of vouchers
approved by the director of the Illinois State Board of Investment in
accordance with the order and direction of said board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-148) (from Ch. 108 1/2, par. 2-148)
Sec. 2-148.
Speaker of House - President of Senate.
The Speaker of the House and the President of the Senate, in the
preparation of payroll vouchers for payments of salary to participants,
shall indicate in addition to other things: (1) the amount of contributions
to be deducted from the salary of each
participant included in each voucher, (2) the
net amount payable to each
participant after such deductions
and, (3) the total of
all participant contributions so deducted. An additional
certified copy of each
payroll voucher certified by the State shall be prepared and forwarded
along with the original payroll voucher to the State Comptroller for
transmittal to the board as herein provided.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-149) (from Ch. 108 1/2, par. 2-149)
Sec. 2-149.
Authorization.
Each participant shall, by virtue of the payment
of the participant contributions paid
to the system, receive a vested
interest in the refunds provided herein, and in consideration of such vested
interest agrees to and authorizes the deductions from
salary of all contributions required under this Article.
Payment of salary as prescribed by law, less the required participant
contributions, shall, together
with the vested rights in the refunds,
be a full and complete discharge of all claims of payments for service rendered
by a participant during the period covered by any such payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-150) (from Ch. 108 1/2, par. 2-150)
Sec. 2-150.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this
Code, is adopted, and made a
part of this Article; provided, (1) that where there is a direct conflict in
the provisions of such Act and the specific provisions of this Article,
the provisions of this Article shall prevail, and
(2) that Section 20-131 shall be applicable to this system only if
a participant has rendered at least 6 years of service as a member and,
(3) that in the case of any participant who would have
been eligible to have his or her retirement
annuity computed under Section 20-131, the survivor's annuity payable
in the event of the participant's death under Section
2-121 to the surviving spouse shall be computed on the
basis of the retirement annuity to which the participant
would have been entitled under the provisions of Section
20-131 if such computation would result in a greater survivor's
annuity.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-151) (from Ch. 108 1/2, par. 2-151)
Sec. 2-151.
No compensation.
Trustees shall serve without compensation, but shall be reimbursed for
reasonable traveling expenses incurred in attending meetings
of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-152) (from Ch. 108 1/2, par. 2-152)
Sec. 2-152.
No monetary gain on investments.
No trustee or employee of the board shall have any direct interest in
the income, gains or profits of any investments made in behalf of the
system, nor receive any pay
or emolument for services in
connection with any investment. No trustee or employee of the board shall
become an endorser or surety, or in any manner an obligor for money loaned
or borrowed from the system. Whoever violates any of the provisions of this
Section is guilty of a petty offense.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-153) (from Ch. 108 1/2, par. 2-153)
Sec. 2-153.
Undivided interest.
The assets of the system shall be invested as one fund, and no
particular person, group of persons or entity shall have any right in any
specific security or property, or in any item of cash, other than an
undivided interest in the whole as specified in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-154) (from Ch. 108 1/2, par. 2-154)
Sec. 2-154.
Assignment.
Except as provided in this Article, all moneys
in the fund created by this Article, and all securities and other property
of the System, and all annuities and other benefits payable under this
Article, and all accumulated contributions and other credits of
participants in this system, and the right of any person to receive an
annuity or other benefit under this Article, or a refund or return of
contributions, shall not be subject to judgment, execution, garnishment,
attachment or other seizure by process, in bankruptcy or otherwise, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable.
However, a person receiving an annuity or benefit, or refund or return of
contributions, may authorize withholding from such annuity, benefit, refund
or return of contributions in accordance with the provisions of the "State
Salary and Annuity Withholding Act", approved August 21, 1961, as now or
hereafter amended.
The General Assembly finds and declares that the amendment to this
Section made by this amendatory Act of 1989 is a clarification of existing
law, and an indication of its previous intent in enacting and amending this
Section. Notwithstanding Section 1-103.1, application of this amendment
shall not be limited to persons in service on or after the effective date
of this amendatory Act of 1989.
(Source: P.A. 86-273.)
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(40 ILCS 5/2-155) (from Ch. 108 1/2, par. 2-155)
Sec. 2-155.
Fraud.
Any person who knowingly makes any false statement, or falsifies or
permits to be falsified any record of this system, in any attempt to
defraud the system, is guilty of a petty offense.
(Source: P.A. 77-2560.)
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(40 ILCS 5/2-155.1) Sec. 2-155.1. Mistake in benefit. If the System mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid. If the benefit was mistakenly set too high, the System may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if (1) the amount of the benefit was mistakenly set too high, and (2) the error was undiscovered for 3 years or longer, and (3) the error was not the result of incorrect information supplied by the affected member or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the System the excess amounts received in error. This Section applies to all mistakes in benefit calculations that occur before, on, or after the effective date of this amendatory Act of the 98th General Assembly.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/2-156) (from Ch. 108 1/2, par. 2-156)
Sec. 2-156. Felony conviction. None of the benefits herein provided for shall be paid to any person who
is convicted of any felony relating to or arising out of or in connection
with his or her service as a member.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the member from whom the benefit results. This Section shall not operate to impair any contract or vested right acquired
prior to July 11, 1955 under any law or laws
continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All participants entering service subsequent to
July 11, 1955 shall
be deemed to have consented to the provisions of this Section as a
condition of participation, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/2-157) (from Ch. 108 1/2, par. 2-157)
Sec. 2-157.
Administrative review.
The provisions of the Administrative Review Law,
and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the retirement board
provided for under this Article. The term "administrative decision" is as
defined in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/2-158) (from Ch. 108 1/2, par. 2-158)
Sec. 2-158.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/2-160) (from Ch. 108 1/2, par. 2-160)
Sec. 2-160.
Savings clause.
The repeal or amendment of any Section
or provision of this Article by this amendatory Act of 1984 shall not affect
or impair any pensions, benefits, rights or credits accrued or in effect
prior thereto.
(Source: P.A. 83-1440.)
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(40 ILCS 5/2-161) (from Ch. 108 1/2, par. 2-161)
Sec. 2-161.
Application of amendments.
The amendments to Sections 2-119.1
and 2-126 of this Code made by this amendatory Act of 1993 shall apply to
persons who are active contributors to this System on or after November 30,
1992. A person who was an active contributor to the System on November 30,
1992 but is no longer an active contributor may apply for any additional
benefits authorized by those amendments until 60 days after the effective date
of this amendatory Act of 1993; if the person is an annuitant, the resulting
increase in annuity shall begin to accrue on the first day of the month
following the month in which application for the benefit and any required
contribution are received by the System.
(Source: P.A. 87-1265.)
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(40 ILCS 5/2-162)
Sec. 2-162. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after the effective date of this amendatory Act of the 94th General Assembly. (b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law. (e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including without limitation a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/2-163) Sec. 2-163. Termination of plan. Upon plan termination, a participant's interest in the pension fund will be nonforfeitable.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/2-165)
Sec. 2-165. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/2-166)
Sec. 2-166. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/Art. 3 heading) ARTICLE 3.
POLICE PENSION FUND - MUNICIPALITIES
500,000 and UNDER
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(40 ILCS 5/3-101) (from Ch. 108 1/2, par. 3-101)
Sec. 3-101. Creation of fund. In each municipality, as defined in Section 3-103, the city council or
the board of trustees, as the case may be, shall establish and administer a
police pension fund, as prescribed in this Article, for the
benefit of its police officers and of their surviving spouses,
children, and certain other dependents. The duty of the corporate authorities of a municipality to establish and administer a police pension fund shall be suspended during any period during which the fund is dissolved under Section 3-144.6 of this Code.
(Source: P.A. 97-99, eff. 1-1-12.)
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(40 ILCS 5/3-102) (from Ch. 108 1/2, par. 3-102)
Sec. 3-102.
Terms defined.
The terms used in this Article have the meanings
ascribed to them in Sections 3-103 through 3-108.3, except when
the context otherwise requires.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/3-103) (from Ch. 108 1/2, par. 3-103)
Sec. 3-103.
Municipality.
"Municipality": (1) Any city, village or incorporated town of 5,000
or more but less than 500,000 inhabitants,
as determined from the United
States Government statistics or a census taken at any time by the city,
village or incorporated town and (2) any city, village or incorporated
town of
less than 5,000 inhabitants which, by referendum held under Section 3-145
adopts this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-105) (from Ch. 108 1/2, par. 3-105)
Sec. 3-105.
Board.
"Board": The board of trustees of the police pension fund of a
municipality as established in Section 3-128.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-105.1) (from Ch. 108 1/2, par. 3-105.1)
Sec. 3-105.1.
Deferred Pensioner.
"Deferred Pensioner": a police officer
who has retired having accumulated enough creditable service to qualify for
a pension, but who has not attained the required age.
(Source: P.A. 84-1010.)
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(40 ILCS 5/3-105.2)
Sec. 3-105.2.
Self-Managed Plan.
"Self-managed plan": The defined
contribution retirement program established for eligible employees under
Section 3-109.3. The self-managed plan includes disability benefits as
provided in Sections 3-114.1, 3-114.2, 3-114.3, and 3-114.6 (but disregarding
disability retirement annuities under Section 3-116.1). The self-managed plan
does not include any retirement annuities, death benefits, or survivors
insurance benefits payable directly from the fund under Section 3-111, 3-111.1,
3-112, 3-114.1, 3-114.2, 3-114.3, 3-114.6, or 3-116.1 or any refunds determined
under Section 3-124.
(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-106) (from Ch. 108 1/2, par. 3-106)
Sec. 3-106.
Police officer, officer.
"Police officer" or "officer":
Any person who (1) is appointed to the police force of a police department
and sworn and commissioned to perform police duties; and (2) within 3 months
after receiving his or her first
appointment and, if reappointed, within 3 months thereafter, or as
otherwise provided in Section 3-109, makes written application to the board
to come under the provisions of this Article.
Police officers serving initial probationary periods, if otherwise eligible,
shall be police officers within the meaning of this Section.
(Source: P.A. 89-52, eff. 6-30-95.)
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(40 ILCS 5/3-107) (from Ch. 108 1/2, par. 3-107)
Sec. 3-107.
Gender.
"Gender": The masculine gender whenever used in
this Article includes the female gender unless manifestly inconsistent with
the context.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-108) (from Ch. 108 1/2, par. 3-108)
Sec. 3-108. Child or children. "Child" or "children": "Child" or "children" includes a police officer's
natural and legally adopted
children.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/3-108.1) (from Ch. 108 1/2, par. 3-108.1)
Sec. 3-108.1.
Dependent parent.
"Dependent parent": A parent who furnishes
satisfactory proof that the deceased police officer at the time of his or
her death was the sole support of the parent or that the parent was the
dependent of the deceased police officer for federal income tax purposes.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-108.2)
Sec. 3-108.2.
Participant.
"Participant": A police officer or deferred
pensioner of a pension fund, or a beneficiary of the pension fund.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/3-108.3)
Sec. 3-108.3. Beneficiary. "Beneficiary": A person receiving benefits from
a pension fund, including, but not limited to, retired pensioners, disabled
pensioners, their surviving spouses, minor children, disabled children, and
dependent parents. If a special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time, has been established for a disabled adult child, then the special needs trust may stand in lieu of the disabled adult child as a beneficiary for the purposes of this Article.
(Source: P.A. 96-1143, eff. 7-21-10.)
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(40 ILCS 5/3-109) (from Ch. 108 1/2, par. 3-109)
Sec. 3-109. Persons excluded.
(a) The following persons shall not be eligible to participate in a fund
created under this Article:
(1) part-time police officers, special police | ||
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(2) any police officer who fails to pay the | ||
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(3) any person who has elected under Section 3-109.1 | ||
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(b) A police officer who is reappointed shall, before being declared
eligible to participate in the pension fund, repay to the fund as required
by Section 3-124 any refund received thereunder.
(c) Any person otherwise qualified to participate who was
excluded from participation by reason of the age restriction removed by
Public Act 79-1165 may elect to participate by making a written application
to the Board before January 1, 1990. Persons so electing shall begin
participation on the first day of the month following the date of
application. Such persons may also elect to establish creditable service
for periods of employment as a police officer during which they did not
participate by paying into the police pension fund, before January 1, 1990,
the amount that the person would have contributed had deductions from
salary been made for such purpose at the time such service was rendered,
together with interest thereon at 6% per annum from the time such service
was rendered until the date the payment is made.
(d) A person otherwise qualified to participate who was excluded from
participation by reason of the fitness requirement removed by this amendatory
Act of 1995 may elect to participate by making a written application to the
Board before July 1, 1996. Persons so electing shall begin participation on
the first day of the month following the month in which the application is
received by the Board. These persons may also elect to establish creditable
service for periods of employment as a police officer during which they did not
participate by paying into the police pension fund, before January 1, 1997, the
amount that the person would have contributed had deductions from salary been
made for this purpose at the time the service was rendered, together with
interest thereon at 6% per annum, compounded annually, from the time the
service was rendered until the date of payment.
(e) A person employed by the Village of Shiloh who is otherwise qualified to participate and was excluded from
participation by reason of his or her failure to make written application to the Board within 3 months after receiving his or her first appointment or reappointment as required under Section 3-106 may elect to participate by making a written application to the
Board before July 1, 2008. Persons so electing shall begin participation on
the first day of the month following the month in which the application is
received by the Board. These persons may also elect to establish creditable
service for periods of employment as a police officer during which they did not
participate by paying into the police pension fund, before January 1, 2009, the
amount that the person would have contributed had deductions from salary been
made for this purpose at the time the service was rendered, together with
interest thereon at 6% per annum, compounded annually, from the time the
service was rendered until the date of payment. The Village of Shiloh must pay to the System the corresponding employer contributions, plus interest.
(f) A person who has entered into a personal services contract to perform police duties for the Village of Bartonville on or before the effective date of this amendatory Act of the 96th General Assembly may be appointed as an officer in the Village of Bartonville within 6 months after the effective date of this amendatory Act, but shall be excluded from participating under this Article. (g) A person employed by the Village of Glen Carbon who is otherwise qualified to participate and was excluded from
participation by reason of his or her failure to make written application to the Board within 3 months after receiving his or her first appointment or reappointment as required under Section 3-106 may elect to participate by making a written application to the
Board before January 1, 2011. Persons so electing shall begin participation on
the first day of the month following the month in which the application is
received by the Board. These persons may also elect to establish creditable
service for periods of employment as a police officer during which they did not
participate by paying into the police pension fund, before July 1, 2011, (i) employee contributions that the person would have contributed had deductions from salary been
made for this purpose at the time the service was rendered, (ii) employer contributions that the employer would have contributed had deductions from salary been
made for this purpose at the time the service was rendered, plus (iii) interest on items (i) and (ii) at the actuarially assumed interest rate, compounded annually, from the time the
service was rendered until the date of payment. (Source: P.A. 95-483, eff. 8-28-07; 96-775, eff. 8-28-09; 96-1252, eff. 7-23-10.)
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(40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
Sec. 3-109.1. Chief of police.
(a) Except as provided in subsection (a-5), beginning January 1, 1990, any person who is employed as the chief
of police of a "participating municipality" as defined in Section 7-106 of this
Code, may elect to participate in the Illinois Municipal Retirement Fund rather
than in a fund created under this Article 3. Except as provided in
subsection (b), this election shall be irrevocable, and shall be
filed in writing with the Board of the Illinois Municipal Retirement Fund.
(a-5) On or after January 1, 2019, a person may not elect to participate in the Illinois Municipal Retirement Fund with respect to his or her employment as the chief of police of a participating municipality, unless that person became a participating employee in the Illinois Municipal Retirement Fund before January 1, 2019. (b) Until January 1, 1999, a chief of police who has elected under this
Section to participate in IMRF rather than a fund created under this Article
may elect to rescind that election and transfer his or her participation
to the police pension fund established under this Article by the employing
municipality. The chief must notify the boards of trustees of both funds in
writing of his or her decision to rescind the election and transfer
participation. A chief of police who transfers participation under this
subsection (b) shall not be deemed ineligible to participate in the police
pension fund by reason of having failed to apply within the 3-month period
specified in Section 3-106.
(Source: P.A. 100-281, eff. 8-24-17.)
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(40 ILCS 5/3-109.2)
Sec. 3-109.2.
Retirement Program Elections.
(a) For the purposes of this Section and Section 3-109.3:
"Eligible employee" means a police officer who is hired on or within one
year after the effective date of the self-managed plan established under
Section 3-109.3.
"Ineligible employee" means a police officer who is hired before or more
than one year after that effective date.
(b) Each eligible employee may elect to participate in the self-managed plan
with respect to all periods of covered employment occurring on and after the
effective date of the eligible employee's election. The election must be made
in writing, in the manner prescribed by the fund, and within 6 months after
the later of (i) the date upon which the self-managed plan takes effect or
(ii) the date of hire.
The election, once made, is irrevocable. If an employee terminates
employment after making the election, then upon his or her subsequent
re-employment under this Article with the same municipality, the original
election shall automatically be reinstated.
A police officer who does not elect to participate in the self-managed plan
within the permitted time shall participate in the defined benefit plan
otherwise provided under this Article.
The employer shall not remit contributions to the fund on behalf of an
eligible employee until the earlier of the expiration of the employee's 6-month
election period or the date on which the employee submits a properly completed
election to the employer or to the fund.
(c) Each eligible employee shall be provided with written information
prepared or prescribed by the fund, describing the employee's retirement
program choices. The eligible employee shall be offered an opportunity to
receive counseling from the fund prior to making his or her election. This
counseling may consist of videotaped materials, group presentations, individual
consultation with an employee or authorized representative of the fund in
person or by telephone or other electronic means, or any combination of these
methods.
(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-109.3)
Sec. 3-109.3. Self-managed plan.
(a) Purpose. The General Assembly finds that it is
important for municipalities to be able to attract and retain the most
qualified police officers and that in order to attract and retain these police
officers, municipalities should have the flexibility to provide a defined
contribution plan as an alternative for eligible employees who elect not
to participate in a defined benefit retirement program provided under this
Article. Accordingly, a self-managed plan shall be provided, which shall offer
participating employees the opportunity to accumulate assets for retirement
through a combination of employee and employer contributions that may be
invested in mutual funds, collective investment funds, or other investment
products and used to purchase annuity contracts, either fixed or variable,
or a combination thereof. The plan must be qualified under the Internal
Revenue Code of 1986.
(b) Study by Commission; Adoption of plan.
The Illinois Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) shall study
and evaluate the creation
of a statewide self-managed plan for eligible employees under this Article.
The Commission shall report its findings and recommendations to the General
Assembly no later than January 1, 2002.
In accordance with the recommendations of the Commission and any action
taken by the General Assembly in response to those recommendations, a statewide
self-managed plan shall be adopted for eligible employees under this Article.
The self-managed plan shall take effect as specified in the plan, but in no
event earlier than July 1, 2002 or the date of its approval by the U.S.
Internal Revenue Service, whichever occurs later.
The self-managed plan shall include a plan document and shall provide for the
adoption of such rules and procedures as are necessary or desirable for the
administration of the self-managed plan. Consistent with fiduciary duty to the
participants and beneficiaries of the self-managed plan, it may provide for
delegation of suitable aspects of plan administration to companies authorized
to do business in this State.
(c) Selection of service providers and funding vehicles. The principal
administrator of the self-managed plan shall solicit proposals to provide
administrative services and funding vehicles for the self-managed plan from
insurance and annuity companies and mutual fund companies, banks, trust
companies, or other financial institutions authorized to do business in this
State. In reviewing the proposals received and approving and contracting with
no fewer than 2 and no more than 7 companies, the principal administrator shall
consider, among other things, the following criteria:
(1) the nature and extent of the benefits that would | ||
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(2) the reasonableness of the benefits in relation to | ||
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(3) the suitability of the benefits to the needs and | ||
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(4) the ability of the company to provide benefits | ||
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(5) the efficacy of the contract in the recruitment | ||
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The principal administrator shall periodically review each approved company.
A company may continue to provide administrative services and funding vehicles
for the self-managed plan only so long as it continues to be an approved
company under contract with the principal administrator.
(d) Employee Direction. Employees who are participating in the
program must be allowed to direct the transfer of their account balances among
the various investment options offered, subject to applicable contractual
provisions. The participant shall not be deemed a fiduciary by reason of
providing such investment direction. A person who is a fiduciary shall not be
liable for any loss resulting from such investment direction and shall not be
deemed to have breached any fiduciary duty by acting in accordance with that
direction. The self-managed plan does not guarantee any of the investments in
the employee's account balances.
(e) Participation. An eligible employee must make a written election in
accordance with the provisions of Section 3-109.2 and the procedures
established under the self-managed plan. Participation in the self-managed
plan by an eligible employee who elects to participate in the self-managed plan
shall begin on the first day of the first pay period following the later of the
date the employee's election is filed with the fund or the employer, but in no
event sooner than the effective date of the self-managed plan.
A police officer who has elected to participate in the self-managed plan
under this Section must continue participation while employed in an eligible
position, and may not participate in any other retirement program administered
by the municipality while employed as a police officer by that municipality.
Participation in the self-managed plan under this Section shall constitute
membership in an Article 3 pension fund.
(f) No Duplication of Service Credit. Notwithstanding any other provision
of this Article, a police officer may not purchase or receive service or
service credit applicable to any other retirement program administered by a
fund under this Article for any period during which the police officer was a
participant in the self-managed plan established under this Section.
(g) Contributions. The self-managed plan shall be funded by contributions
from participants in the self-managed plan and employer contributions as
provided in this Section.
The contribution rate for a participant in the self-managed plan under
this Section shall be a minimum of 10% of his or her salary. This required
contribution shall be made as an "employer pick-up" under Section 414(h) of
the Internal Revenue Code of 1986 or any successor Section thereof. An
employee may make additional contributions to the self-managed plan in
accordance with the terms of the plan.
The self-managed plan shall provide for employer contributions to be credited
to each self-managed plan participant at a rate of 10% of the participating
employee's salary, less the amount of the employer contribution used to provide
disability benefits for the employee. The amounts so credited shall be paid
into the participant's self-managed plan accounts in the manner prescribed by
the plan.
An amount of employer contribution, not exceeding 1.5% of the participating
employee's salary, shall be used for the purpose of providing disability
benefits to the participating employee. Prior to the beginning of each plan
year under the self-managed plan, the principal administrator shall determine,
as a percentage of salary, the amount of employer contributions to be allocated
during that plan year for providing disability benefits for employees in the
self-managed plan.
(h) Vesting; Withdrawal; Return to Service. A participant in the
self-managed plan becomes fully vested in the employer contributions credited
to his or her account in the self-managed plan on the earliest to occur of the
following:
(1) completion of 6 years of service with the | ||
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(2) the death of the participating employee while | ||
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A participant in the self-managed plan who receives a distribution of his or
her vested amounts from the self-managed plan upon or after termination of
employment shall forfeit all service credit and accrued rights in the fund of
his or her employer; if subsequently re-employed, the participant shall be
considered a new employee. If a former participant again becomes a
participating employee and continues as such for at least 2 years, all such
rights, service credit, and previous status as a participant shall be restored
upon repayment of the amount of the distribution without interest.
(i) Benefit amounts. If a participating employee who is fully vested in
employer contributions terminates employment, the participating employee shall
be entitled to a benefit which is based on the account values attributable to
both employer and employee contributions and any investment return thereon.
If a participating employee who is not fully vested in employer contributions
terminates employment, the employee shall be entitled to a benefit based on the
account values attributable to the employee's contributions and any investment
return thereon, plus the following percentage of employer contributions and any
investment return thereon: 20% after the second year; 40% after the third year;
60% after the fourth year; 80% after the fifth year; and 100% after the sixth
year. The remainder of employer contributions and investment return thereon
shall be forfeited. Any employer contributions
that are forfeited shall be held in escrow by the company investing those
contributions and shall be used as directed by the municipality for future
allocations of employer contributions or for the restoration of amounts
previously forfeited by former participants who again become participating
employees.
(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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(40 ILCS 5/3-109.4) Sec. 3-109.4. Defined contribution plan for certain police officers. (a) Each municipality shall establish a defined contribution plan that aggregates police officer and employer contributions in individual accounts used for retirement. The defined contribution plan, including both police officer and employer contributions, established by the municipality must, at a minimum: meet the safe harbor provisions of the Internal Revenue Code of 1986, as amended; be a qualified plan under the Internal Revenue Code of 1986, as amended; and comply with all other applicable laws, rules, and regulations. Contributions shall vest immediately upon deposit in the police officer's account. A police officer who participates in the defined contribution plan under this Section may not earn creditable service or otherwise participate in the defined benefit plan offered by his or her employing municipality, except as an annuitant in another fund or as a survivor, while he or she is a participant in the defined contribution plan. The defined contribution plan under this Section shall not be construed to be a pension, annuity, or other defined benefit under this Code. (b) If a police officer who has more than 10 years of creditable service in a fund enters active service with a different municipality, he or she may elect to participate in the defined contribution plan under this Section in lieu of the defined benefit plan. A police officer who has elected under this subsection to participate in the defined contribution plan may, in writing, rescind that election in accordance with the rules of the board. Any employer contributions, and the earnings thereon, shall remain vested in the police officer's account. A police officer who rescinds the election may begin participating in the defined benefit plan on the first day of the month following the rescission. (c) As used in this Section, "defined benefit plan" means the retirement plan available to police officers under this Article who do not participate in the defined contribution plan under this Section.
(Source: P.A. 100-281, eff. 8-24-17.) |
(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
Sec. 3-110. Creditable service.
(a) "Creditable service" is the time served by a police officer as a member
of a regularly constituted police force of a municipality. In computing
creditable service furloughs without pay exceeding 30 days shall not be
counted, but all leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a police officer has
received no disability pension payments under this Article shall be counted.
(a-5) Up to 3 years of time during which the police officer receives
a disability pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6
shall be counted as creditable service, provided that
(i) the police officer returns to active service after the disability for a
period at least equal to the period for which credit is to be established and
(ii) the police officer makes contributions to the fund based on the rates
specified in Section 3-125.1 and the salary upon which the disability pension
is based. These contributions may be paid at any time prior to the
commencement of a retirement pension. The police officer may, but need not,
elect to have the contributions deducted from the disability pension or to
pay them in installments on a schedule approved by the board. If not
deducted from the disability pension, the contributions shall include
interest at the rate of 6% per year, compounded annually, from the date
for which service credit is being established to the date of payment. If
contributions are paid under this subsection (a-5) in excess of those
needed to establish the credit, the excess shall be refunded. This
subsection (a-5) applies to persons receiving a disability pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on the effective date of this
amendatory Act of the 91st General Assembly, as well as persons who begin to
receive such a disability pension after that date.
(b) Creditable service includes all periods of service in the military,
naval or air forces of the United States entered upon while an active police
officer of a municipality, provided that upon applying for a permanent pension,
and in accordance with the rules of the board, the police officer pays into the
fund the amount the officer would have contributed if he or she had been a
regular contributor during such period, to the extent that the municipality
which the police officer served has not made such contributions in the
officer's behalf. The total amount of such creditable service shall not
exceed 5 years, except that any police officer who on July 1, 1973 had more
than 5 years of such creditable service shall receive the total amount thereof.
(b-5) Creditable service includes all periods of service in the military, naval, or air forces of the United States entered upon before beginning service as an active police officer of a municipality, provided that, in accordance with the rules of the board, the police officer pays into the fund the amount the police officer would have contributed if he or she had been a regular contributor during such period, plus an amount determined by the Board to be equal to the municipality's normal cost of the benefit, plus interest at the actuarially assumed rate calculated from the date the employee last became a police officer under this Article. The total amount of such creditable service shall not exceed 2 years. (c) Creditable service also includes service rendered by a police
officer while on leave of absence from a police department to serve as an
executive of an organization whose membership consists of members of a
police department, subject to the following conditions: (i) the police
officer is a participant of a fund established under this Article with at
least 10 years of service as a police officer; (ii) the police officer
received no credit for such service under any other retirement system,
pension fund, or annuity and benefit fund included in this Code; (iii)
pursuant to the rules of the board the police officer pays to the fund the
amount he or she would have contributed had the officer been an active
member of the police department; (iv) the organization pays a
contribution equal to the municipality's normal cost for that
period of service; and (v) for all leaves of absence under this subsection (c), including those beginning before the effective date of this amendatory Act of the 97th General Assembly, the police officer continues to remain in sworn status, subject to the professional standards of the public employer or those terms established in statute.
(d)(1) Creditable service also includes periods of | ||
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(2) If the board of the pension fund to which | ||
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(3) Except as provided in paragraph (4), the | ||
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(4) If the police officer dies in service before | ||
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(5) If the additional contribution that is required | ||
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At the time of paying a refund under this item (5), | ||
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Transferred credit that is not granted due to failure | ||
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(6) The Public Pension Division of the Department of | ||
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(e)(1) Creditable service also includes periods of | ||
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(2) If the board of the pension fund to which | ||
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(3) The Public Pension Division of the Department of | ||
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(4) Until January 1, 2010, a police officer who | ||
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(Source: P.A. 103-426, eff. 8-4-23.)
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(40 ILCS 5/3-110.2) (from Ch. 108 1/2, par. 3-110.2)
Sec. 3-110.2.
Transfer of creditable service to General Assembly Retirement
System. (a) An active member of the General Assembly Retirement
System may apply to transfer his or her credits and
creditable service accumulated
in any police pension fund under this Article to the General Assembly Retirement
System. Such transfer shall be made forthwith. Payment by the police
pension fund to
the General Assembly Retirement System shall be made at the same time and
shall consist of:
(1) the amounts credited to the
applicant, through employee contributions on the date of transfer; and
(2) municipality contributions equal to the accumulated employee contributions
as determined under subparagraph (1) above. Participation in the
police pension fund shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service and
creditable service terminated upon receipt of a refund, by payment
to the fund of the amount of the refund together with interest thereon
at the rate of 6% per year to the date of payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-110.3) (from Ch. 108 1/2, par. 3-110.3)
Sec. 3-110.3.
Transfer to IMRF.
(a) Any person who has made an election under Section 3-109.1, and until
July 1, 1993, any active member of the Illinois Municipal Retirement Fund who
is a county clerk, may apply for transfer of his creditable service accumulated
in any police pension fund under this Article to the Illinois Municipal
Retirement Fund. The creditable service shall be transferred upon payment by
the police pension fund to the Illinois Municipal Retirement Fund of an amount
equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in this Fund shall terminate on the date of transfer.
(b) Any person who has made an election under Section 3-109.1, and
until July 1, 1993, any such county clerk, may reinstate service which was
terminated by receipt of a refund, by payment to the police pension fund of the
amount of the refund with interest thereon at the rate of 6% per year,
compounded annually, from the date of refund to the date of payment.
(Source: P.A. 86-273; 87-1265.)
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(40 ILCS 5/3-110.4) (from Ch. 108 1/2, par. 3-110.4)
Sec. 3-110.4.
Transfer of creditable service to Article 8, 9 or 13 fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the people who is
a participant in a pension fund established under Article 9 of this Code,
any chief of the County Police Department or undersheriff of the County
Sheriff's Department who has elected under subparagraph (j) of Section 9-128.1
to be included within the provisions of Section 9-128.1 of Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in
a pension fund established under Article 13 of this Code, may apply to
transfer his or her credits and creditable service accumulated in any
police pension fund established under this Article to such Article 8, 9
or 13 fund. Such transfer shall be made forthwith. Payment by the police
pension fund to the Article 8, 9 or 13 fund shall be made at the same
time and shall consist of:
(1) the amounts credited to the applicant through | ||
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(2) municipality contributions equal to the | ||
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Participation in the police pension fund shall terminate on the date of
transfer.
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary district commissioner may reinstate credits and creditable service
terminated upon receipt of a refund, by payment to the fund of the amount
of the refund together with interest thereon at the rate of 6% per year,
compounded annually from the date of refund to
the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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(40 ILCS 5/3-110.5) (from Ch. 108 1/2, par. 3-110.5)
Sec. 3-110.5.
Transfer to Article 14 system.
(a) Until January 1, 1990, any active member of the State Employees'
Retirement System who is a State policeman and until July 1, 1998, any active
member of the State Employees' Retirement System who is a security employee of
the Department of Corrections may apply for transfer of his or her
creditable service accumulated in any police pension fund under this
Article to the State Employees' Retirement System. Such creditable service
shall be transferred only upon payment by such police pension fund to the State
Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in this Fund shall terminate on the date of transfer.
(b) Until January 1, 1990, any such State policeman and until July 1,
1998, any such security employee of the Department of Corrections may
reinstate service which was terminated by receipt of a refund, by payment to
the police pension fund of the amount of the refund with interest thereon at
the rate of 6% per year, compounded annually, from the date of refund to the
date of payment.
(Source: P.A. 90-32, eff. 6-27-97.)
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(40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
Sec. 3-110.6. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement System who is
a State policeman, an investigator for the Secretary of State, a conservation police officer, an investigator for the Office of the Attorney General, an investigator for the Department of Revenue, an investigator for the Office of the State's Attorneys Appellate
Prosecutor, or a controlled substance inspector may apply for transfer of
some or all of his or her creditable service accumulated
in any police pension fund under this Article to the State Employees'
Retirement System in accordance with Section 14-110. The creditable
service shall be transferred only upon payment by the police pension fund to
the State Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in the police pension fund with respect to the service to be transferred shall terminate on the date
of transfer.
(b) Any person applying to transfer service under this Section may reinstate service that was
terminated by receipt of a refund, by paying to the police pension fund the
amount of the refund with interest thereon at the actuarially assumed rate of interest,
compounded annually, from the date of refund to the date of payment.
(Source: P.A. 95-530, eff. 8-28-07; 96-745, eff. 8-25-09.)
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(40 ILCS 5/3-110.7)
Sec. 3-110.7.
Transfer between Article 3 funds.
(a) An active member of a pension fund established
under this Article may apply for transfer to that fund of his or her creditable
service and related contributions accumulated in any other police pension fund
established under this Article, except that a police officer may not transfer
creditable service under this Section from a pension fund unless (i) the
police officer actively served in
the police department under that fund for at least 2 years, (ii) the police
officer actively served in the police department under that fund for less than
2 years but was laid off or otherwise involuntarily terminated for a reason
other than the fault of the officer, or (iii) the police officer was not in
service in the police department under that fund on or after the effective date
of this Section.
Upon receiving the application, that
other
pension fund shall transfer to the pension fund in which the applicant
currently participates an amount equal to:
(1) the amounts actually contributed by or on behalf | ||
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(2) an amount representing employer contributions, | ||
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Participation in that other pension fund shall terminate on the date of
transfer.
(b) An active member of a pension fund established
under this Article may reinstate service in any other pension fund established
under this Article that was terminated by receipt of a refund, by paying to
that other pension fund the amount of the refund plus interest thereon at the
rate of 6% per year, compounded annually, from the date of refund to the date
of payment.
(Source: P.A. 90-460, eff. 8-17-97.)
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(40 ILCS 5/3-110.8)
Sec. 3-110.8. Transfer to IMRF. (a) Until 60 days after the effective date of this amendatory Act of the 97th General Assembly, any active member of the Illinois Municipal Retirement Fund may apply to transfer up to 10 years of creditable service in a police pension fund under this Article to the Illinois Municipal
Retirement Fund. The creditable service shall be transferred upon payment by
the police pension fund to the Illinois Municipal Retirement Fund of an amount
equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Creditable service transferred to the Illinois Municipal Retirement Fund under this Section shall terminate on the date of the transfer.
(b) Until 60 days after the effective date of this amendatory Act of the 97th General Assembly, any active member of the Illinois Municipal Retirement Fund may reinstate all or any portion of his or her service that was
terminated by receipt of a refund, by payment to the police pension fund of the
amount of the refund with interest thereon at the actuarially assumed rate,
compounded annually, from the date of refund to the date of payment.
(Source: P.A. 97-273, eff. 8-8-11.) |
(40 ILCS 5/3-110.9) Sec. 3-110.9. Transfer to Article 9.
(a) Until 6 months after the effective date of this amendatory Act of the 95th General Assembly, any active member of a pension fund established under Article 9 of this Code may apply for transfer of up to 6 years of his or her creditable service accumulated in any police pension fund under this Article to the Article 9 fund. Such creditable service shall be transferred only upon payment by such police pension fund to the Article 9 fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in the police pension fund shall terminate on the date of transfer. (b) Until 6 months after the effective date of this amendatory Act of the 95th General Assembly, any active member of an Article 9 fund may reinstate service that was terminated by receipt of a refund, by payment to the police pension fund of the amount of the refund with interest thereon at the rate of 6% per year, compounded annually, from the date of refund to the date of payment.
(Source: P.A. 95-504, eff. 8-28-07; 95-876, eff. 8-21-08.) |
(40 ILCS 5/3-110.10) (Text of Section from P.A. 102-857)
Sec. 3-110.10. Transfer from Article 7. Until January 1, 2009, a person may transfer to a fund established under this Article up to 8 years of creditable service accumulated under Article 7 of this Code upon payment to the fund of an amount to be determined by
the board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the fund
under Section 7-139.11 and the amounts that would have been contributed had such
contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the
date of payment.
No later than 6 months after July 23, 2021 (the effective date of Public Act 102-113), a person may transfer to a fund established under this Article creditable service accumulated under Article 7 of this Code for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district upon payment to the fund of an amount to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the fund under Section 7-139.14 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment. No later than 6 months after the effective date of this amendatory Act of the 102nd General Assembly, a person may transfer to a fund established under this Article creditable service accumulated under Article 7 of this Code for service as a county correctional officer or as a person employed by a participating municipality to perform administrative duties related to law enforcement upon payment to the fund of an amount to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the fund under Section 7-139.14 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment. (Source: P.A. 102-113, eff. 7-23-21; 102-857, eff. 5-13-22.) (Text of Section from P.A. 102-1061) Sec. 3-110.10. Transfer from Article 7. Until January 1, 2009, a person may transfer to a fund established under this Article up to 8 years of creditable service accumulated under Article 7 of this Code upon payment to the fund of an amount to be determined by
the board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the fund
under Section 7-139.11 and the amounts that would have been contributed had such
contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the
date of payment.
No later than September 30, 2023, a person may transfer to a fund established under this Article creditable service accumulated under Article 7 of this Code for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, law enforcement officer employed on a full-time basis by a forest preserve district, or person employed by a participating municipality or instrumentality to perform administrative duties related to law enforcement upon payment to the fund of an amount to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the fund under Section 7-139.14 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment. (Source: P.A. 102-113, eff. 7-23-21; 102-1061, eff. 1-1-23.) |
(40 ILCS 5/3-110.11) Sec. 3-110.11. Transfer of creditable service from Article 5 fund. For a period of 60 days after the effective date of this Section, a person may transfer to a fund established under this Article up to 10 years of creditable service accumulated under Article 5 of this Code upon payment to the fund of an amount to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the fund under Section 5-237.5 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment.
(Source: P.A. 97-326, eff. 8-12-11.) |
(40 ILCS 5/3-110.11a) Sec. 3-110.11a. Optional credit under Article 5. A police officer may establish optional credit for up to 5 years of service as a participant under Article 5, provided that the police officer (i) was certified under the law governing the certification of police officers at the time the service was rendered, (ii) applies in writing on or before December 31, 2023, (iii) supplies satisfactory evidence of the employment, (iv) completes 10 years of contributing service as a police officer as defined in Section 3-106, and (v) pays into the fund the amount the police officer would have contributed if he or she had been a regular contributor during such period, plus an amount determined by the Board to be equal to the municipality's normal cost of the benefit, plus interest at the actuarially assumed rate calculated from the date the employee last became a police officer under this Article. A police officer may not establish credit under this Section for any service for which the police officer is eligible to receive benefits under Article 5 of this Code.
(Source: P.A. 102-342, eff. 8-13-21.) |
(40 ILCS 5/3-110.12) Sec. 3-110.12. Transfer to Article 4 fund. (a) At any time during the
6 months following the effective date of this Section, an active member of an Article 4 firefighters' pension fund may apply for transfer to that fund of up to 6 years of his or her creditable service accumulated
in the police pension fund under this Article that is administered by the same unit of local government if that active member was not subject to disciplinary action when he or she terminated employment with that police department. The creditable service shall be transferred upon payment by
the police pension fund to the Article 4 fund of an amount
equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in the police pension fund with respect to the transferred creditable service shall terminate on the date of transfer. (a-5) At any time during the
6 months following the effective date of this amendatory Act of the 102nd General Assembly, an active member of an Article 4 firefighters' pension fund may apply for transfer to that fund of up to 8 years of his or her creditable service accumulated
in a police pension fund under this Article that is administered by a unit of local government if that active member was not subject to disciplinary action when he or she terminated employment with that police department. The creditable service shall be transferred upon payment by
the police pension fund to the Article 4 fund of an amount
equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in the police pension fund with respect to the transferred creditable service shall terminate on the date of transfer. (b) At the time of applying for transfer of creditable service under this Section, an active member of an Article 4 firefighters' pension fund may, for the purpose of that transfer, reinstate creditable service that was
terminated by receipt of a refund, by payment to the police pension fund of the
amount of the refund with interest thereon at the rate of 6% per year,
compounded annually, from the date of the refund to the date of payment.
(Source: P.A. 102-63, eff. 7-9-21.) |
(40 ILCS 5/3-110.13) Sec. 3-110.13. Transfer from Article 15. No later than June 30, 2023, a person may irrevocably apply under Section 15-134.4 to transfer to a fund established under this Article creditable service accumulated under Article 15 of this Code for service as a police officer upon payment to the fund of an amount, to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the fund under Section 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment.
(Source: P.A. 102-1061, eff. 1-1-23.) |
(40 ILCS 5/3-110.14) Sec. 3-110.14. Transfer to Article 7. On and after July 1, 2022 but no later than December 1, 2023, a participating employee who is actively employed as a sheriff's law enforcement employee under Article 7 may make a written election to transfer up to 10 years of creditable service from a fund established under this Article to the Illinois Municipal Retirement Fund established under Article 7. Upon receiving a written election by a participant under this Section, the creditable service shall be transferred to the Illinois Municipal Retirement Fund as soon as practicable upon payment by the police pension fund to the Illinois Municipal Retirement Fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in the police pension fund with respect to the service to be transferred shall terminate on the date of transfer. This Section does not allow reinstatement of credits in this Article that were previously forfeited.
(Source: P.A. 102-1061, eff. 6-10-22.) |
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
Sec. 3-111. Pension.
(a) A police officer age 50 or more with 20 or
more years of creditable service, who is not a participant in the
self-managed plan under Section 3-109.3 and who is no longer in service
as a police officer, shall receive a pension of 1/2 of the salary
attached to the rank held by the officer on the police force for one year
immediately prior to retirement or, beginning July 1, 1987 for persons
terminating service on or after that date, the salary attached to the rank
held on the last day of service or for one year prior to the last day,
whichever is greater. The pension shall be increased by 2.5%
of such salary for each additional year of service over 20 years of service
through 30 years of service, to a maximum of 75% of such
salary.
The changes made to this subsection (a) by this amendatory Act of the
91st General Assembly apply to all pensions that become payable under this
subsection on or after January 1, 1999. All pensions payable under this
subsection that began on or after January 1, 1999 and before the effective date
of this amendatory Act shall be recalculated, and the amount of the increase
accruing for that period shall be payable to the pensioner in a lump sum.
(a-5) No pension in effect on or granted after June 30, 1973 shall be
less than $200 per month. Beginning July 1, 1987, the minimum retirement
pension for a police officer having at least 20 years of creditable service
shall be $400 per month, without regard to whether or not retirement occurred
prior to that date.
If the minimum pension established in Section 3-113.1 is greater than the
minimum provided in this subsection, the Section 3-113.1 minimum controls.
(b) A police officer mandatorily retired from service
due to age by operation of law, having at least 8 but
less than 20 years of creditable service, shall receive a pension
equal to 2 1/2% of the salary attached to the rank he or she held on
the police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or after that
date, the salary attached to the rank held on the last day of service or
for one year prior to the last day, whichever is greater, for each
year of creditable service.
A police officer who retires or is separated from service having at least 8
years but less than 20 years of creditable service, who is not mandatorily
retired due to age by operation of law, and who does not apply for a refund of
contributions at his or her last separation from police service, shall receive
a pension upon attaining age 60 equal to 2.5% of the salary attached to the
rank held by the police officer on the police force for one year immediately
prior to retirement or, beginning July 1, 1987 for persons terminating service
on or after that date, the salary attached to the rank held on the last day of
service or for one year prior to the last day, whichever is greater, for each
year of creditable service.
(c) A police officer no longer in service who has at least one but less
than 8 years of creditable service in a police pension fund but meets the
requirements of this subsection (c) shall be eligible to receive a pension from
that fund equal to 2.5% of the salary attached to the rank held on the last day
of service under that fund or for one year prior to that last day, whichever is
greater, for each year of creditable service in that fund. The pension shall
begin no earlier than upon attainment of age 60 (or upon mandatory retirement
from the fund by operation of law due to age, if that occurs before age 60) and
in no event before the effective date of this amendatory Act of 1997.
In order to be eligible for a pension under this subsection (c), the police
officer must have at least 8 years of creditable service in a second police
pension fund under this Article and be receiving a pension under subsection (a)
or (b) of this Section from that second fund. The police officer need not be
in service on or after the effective date of this amendatory Act of 1997.
(d) Notwithstanding any other provision of this Article,
the provisions of this subsection (d) apply to a person who is not a participant in the self-managed plan under Section 3-109.3 and who first
becomes a police officer under this Article on or after January 1, 2011. A police officer age 55 or more who has 10 or more years of service in that capacity shall be entitled at his option to receive a monthly pension for his service as a police officer computed by multiplying 2.5% for each year of such service by his or her final average salary. The pension of a police officer who is retiring after attaining age 50 with 10 or more years of creditable service shall be reduced by one-half of 1% for each month that the police officer's age is under age 55. The maximum pension under this subsection (d) shall be 75%
of final average salary. For the purposes of this subsection (d), "final average salary" means the greater of: (i) the average monthly salary obtained by dividing the total salary of the police officer during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period; or (ii) the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual salary
based on the plan year of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. Nothing in this amendatory Act of the 101st General Assembly shall cause or otherwise result in any retroactive adjustment of any employee contributions. (Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly pension of a
police officer who retires after July 1, 1971, and prior to January 1, 1986,
shall be increased, upon either the first of the month following the first
anniversary of the date of retirement if the officer is 60 years of age or over
at retirement date, or upon the first day of the month following attainment of
age 60 if it occurs after the first anniversary of retirement, by 3% of the
originally granted pension and by an additional 3% of the originally granted
pension in January of each year thereafter.
(b) The monthly pension of a police officer who retired from service
with 20 or more years of service, on or before July 1, 1971, shall be
increased in January of the year following the year of attaining age 65 or
in January of 1972, if then over age 65, by 3% of the originally granted
pension for each year the police officer received pension payments. In each
January thereafter, he or she shall receive an additional increase of 3% of
the original pension.
(c) The monthly pension of a police officer who retires on disability or
is retired for disability shall be increased in January of the year
following the year of attaining age 60, by 3% of the original grant of
pension for each year he or she received pension payments. In each January
thereafter, the police officer shall receive an additional increase of 3%
of the original pension.
(d) The monthly pension of a police officer who retires after January
1, 1986, shall be increased, upon either the first of the month following
the first anniversary of the date of retirement if the officer is 55 years
of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first anniversary of
retirement, by 1/12 of 3% of the originally granted pension for each full
month that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in January of each year
thereafter.
The changes made to this subsection (d) by this amendatory Act of the 91st
General Assembly apply to all initial increases that become payable under this
subsection on or after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and before the
effective date of this amendatory Act shall be recalculated and the additional
amount accruing for that period, if any, shall be payable to the pensioner in a
lump sum.
(e) Notwithstanding the provisions of subsection (a), upon the first
day of the month following (1) the first anniversary of the date of
retirement, or (2) the attainment of age 55, or (3) July 1, 1987, whichever
occurs latest, the monthly pension of a police officer who retired on or after
January 1, 1977 and on or before January 1, 1986, and did not receive an
increase under subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that has elapsed
since the pension began, and by an additional 3% of the originally granted
pension in each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection (a).
(f) Notwithstanding the other provisions of this Section, beginning
with increases granted on or after July 1, 1993, the second and all
subsequent automatic annual increases granted under subsection (a), (b),
(d), or (e) of this Section shall be calculated as 3% of the amount of
pension payable at the time of the increase, including any increases
previously granted under this Section, rather than 3% of the originally
granted pension amount. Section 1-103.1 does not apply to this subsection
(f).
(g) Notwithstanding any other provision of this Article, the monthly pension of a
person who first becomes a police officer under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted pension. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the pension shall not be increased. For the purposes of this subsection (g), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds. (Source: P.A. 96-1495, eff. 1-1-11.)
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(40 ILCS 5/3-111.5) Sec. 3-111.5. Membership date; previous IMRF service with the same municipality. A police officer who previously participated in the Illinois Municipal Retirement Fund (IMRF) for service as a member of the police department of a municipality and was transferred to that municipality's police pension fund upon its creation under this Article shall, for the purposes of determining the applicable tier of benefits under this Article, be deemed to have become a police officer and member of that municipality's police pension fund on the date that he or she first participated in IMRF as a member of the police department of that municipality, notwithstanding whether that start date was before January 1, 2011.
(Source: P.A. 101-627, eff. 1-24-20.) |
(40 ILCS 5/3-112) (from Ch. 108 1/2, par. 3-112)
Sec. 3-112. Pension to survivors.
(a) Upon the death of a police officer entitled to a pension under Section
3-111, the surviving spouse shall be entitled to the pension to which the
police officer was then entitled. Upon the death of the surviving spouse,
or upon the remarriage of the surviving spouse if that remarriage
terminates the surviving spouse's eligibility under Section 3-121, the police
officer's unmarried children who are under age 18 or who are dependent because
of physical or mental disability shall be entitled to equal shares of such
pension. If there is no eligible surviving spouse and no eligible child, the
dependent parent or parents of the officer shall be entitled to receive or
share such pension until their death or marriage or remarriage after the death
of the police officer.
Notwithstanding any other provision of this Article, for a person who first becomes a police officer under this Article on or after January 1, 2011, the pension to which the surviving spouse, children, or parents are entitled under this subsection (a) shall be in an amount equal to the greater of (i) 54% of the police officer's monthly salary at the date of death, or (ii) 66 2/3% of the police officer's earned pension at the date of death, and, if there is a surviving spouse, 12% of such monthly salary shall be granted to the guardian of any minor child or children, including a child who has been conceived but not yet born, for each such child until attainment of age 18. Upon the death of the surviving spouse leaving one or more minor children, or upon the death of a police officer leaving one or more minor children but no surviving spouse, a monthly pension of 20% of the monthly salary shall be granted to the duly appointed guardian of each such child for the support and maintenance of each such child until the child reaches age 18. The total pension provided under this paragraph shall not exceed 75% of the monthly salary of the deceased police officer (1) when paid to the survivor of a police officer who has attained 20 or more years of service credit and who receives or is eligible to receive a retirement pension under this Article, (2) when paid to the survivor of a police officer who dies as a result of illness or accident, (3) when paid to the survivor of a police officer who dies from any cause while in receipt of a disability pension under this Article, or (4) when paid to the survivor of a deferred pensioner. Nothing in this subsection (a) shall act to diminish the survivor's
benefits described in subsection (e) of this Section. Notwithstanding Section 1-103.1, the changes made to this subsection apply without regard to whether the deceased police officer was in service on or after the effective date of this amendatory Act of the 101st General Assembly. Notwithstanding any other provision of this Article, the monthly pension
of a survivor of a person who first becomes a police officer under this Article on or after January 1, 2011 shall be increased on the January 1 after attainment of age 60 by the recipient of the survivor's pension and
each January 1 thereafter by 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's pension. If the annual unadjusted percentage change in
the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the survivor's pension shall not
be increased. For the purposes of this subsection (a), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds. (b) Upon the death of a police officer while in service, having at least
20 years of creditable service, or upon the death of a police officer who
retired from service with at least 20 years of creditable service, whether
death occurs before or after attainment of age 50, the pension earned by
the police officer as of the date of death as provided in Section 3-111
shall be paid to the survivors in the sequence provided in subsection (a)
of this Section.
(c) Upon the death of a police officer while in service, having at least
10 but less than 20 years of service, a pension of 1/2 of the salary attached
to the rank or ranks held by the officer for one year immediately
prior to death shall be payable to the survivors in the sequence provided
in subsection (a) of this Section. If death occurs as a result of the
performance of duty, the 10 year requirement shall not apply and the
pension to survivors shall be payable after any period of service.
(d) Beginning July 1, 1987, a minimum pension of $400 per month shall
be paid to all surviving spouses, without regard to the fact that the death
of the police officer occurred prior to that date.
If the minimum pension established in Section 3-113.1 is greater than the
minimum provided in this subsection, the Section 3-113.1 minimum controls.
(e) The pension of the surviving spouse of a police officer who dies (i)
on or after January 1, 2001, (ii) without having begun to receive either a
retirement pension payable under Section 3-111 or a disability pension payable
under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a result of
sickness, accident, or injury incurred in or resulting from the performance of
an act of duty shall not be less than 100% of the salary attached to the rank
held by the deceased police officer on the last day of service, notwithstanding
any provision in this Article to the contrary.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/3-113.1)
Sec. 3-113.1.
Minimum retirement, survivor, and disability pensions.
(a) Beginning January 1, 1999, the minimum retirement pension payable
to a police officer with 20 or more years of creditable service, the minimum
disability pension payable under Section 3-114.1, 3-114.2, 3-114.3, or
3-114.6,
and the minimum surviving spouse's pension shall be $600 per month, without
regard to whether the police officer was in service on or after the effective
date of this amendatory Act of the 91st General Assembly.
In the case of a pensioner whose pension began before the effective date
of this amendatory Act and is subject to increase under this subsection (a),
the pensioner shall be entitled to a lump sum payment of the amount of that
increase accruing from January 1, 1999 (or the date the pension began, if
later) to the effective date of this amendatory Act.
(b) Beginning January 1, 2000, the minimum retirement pension payable
to a police officer with 20 or more years of creditable service, the minimum
disability pension payable under Section 3-114.1, 3-114.2, 3-114.3, or
3-114.6,
and the minimum surviving spouse's pension shall be $800 per month, without
regard to whether the police officer was in service on or after the effective
date of this amendatory Act of the 91st General Assembly.
(c) Beginning January 1, 2001, the minimum retirement pension payable
to a police officer with 20 or more years of creditable service, the minimum
disability pension payable under Section 3-114.1, 3-114.2, 3-114.3, or
3-114.6,
and the minimum surviving spouse's pension shall be $1000 per month, without
regard to whether the police officer was in service on or after the effective
date of this amendatory Act of the 91st General Assembly.
(d) This Section does not grant a pension to any surviving spouse who
is not
otherwise eligible to receive a pension under this Article.
(e) No survivor benefits are payable to a participant in the self-managed
plan.
(Source: P.A. 91-466, eff. 8-6-99; 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-113.2) Sec. 3-113.2. Dependent beneficiaries; payment to trust. Any benefit to be received by or paid to a dependent beneficiary may be received by or paid to a trust established for such dependent beneficiary if the dependent beneficiary is living at the time such benefit would be received by or paid to such trust.
(Source: P.A. 96-484, eff. 8-14-09.) |
(40 ILCS 5/3-114.1) (from Ch. 108 1/2, par. 3-114.1)
Sec. 3-114.1.
Disability pension - Line of duty.
(a) If a police officer as the result of sickness, accident or injury
incurred in or resulting from the performance of an act of duty, is found to be
physically or mentally disabled for service in the police department, so as to
render necessary his or her suspension or retirement from the police service,
the police officer shall be entitled to a disability retirement pension equal
to the greatest of (1) 65% of the salary attached to the rank on the
police force held by the officer at the date of suspension of duty or
retirement, (2) the retirement pension that the police officer would be
eligible to receive if he or she retired (but not including any automatic
annual increase in that retirement pension), or (3) the pension provided
under subsection (d), if applicable.
A police officer shall be considered "on duty" while on any assignment
approved by the chief of the police department of the municipality he or she
serves, whether the assignment is within or outside the municipality.
(b) If a police officer on disability pension dies while still disabled,
the disability pension shall continue to be paid to his or her survivors in the
sequence provided in Section 3-112.
(c) From and after July 1, 1987, any pension payable under this
Section shall be at least $400 per month, without regard to the fact that
the disability or death of the police officer occurred prior to that date.
If the minimum pension established in Section 3-113.1 is greater than the
minimum provided in this Section, the Section 3-113.1 minimum controls.
(d) A disabled police officer who (1) is receiving a pension under this
Section
on the effective date of this amendatory Act of the 91st General Assembly, (2)
files with the Fund, within 30 days after that effective date and annually
thereafter while the pension remains payable, a written application for the
benefits of this subsection, including an affidavit stating that the applicant
has not earned any income from gainful employment during the most recently
concluded tax year and a copy of his or her most recent Illinois income tax
return, (3) has service credit in the Fund for at least 7 years of active duty,
and (4) has been receiving the pension under this Section for a period which,
when added to the officer's total service credit in the Fund, equals at least
20 years, shall be eligible to receive an annual noncompounded increase in his
or her pension under this Section, equal to 3% of the original pension.
The Fund may take appropriate steps to verify the applicant's disability
and earnings status, and for this purpose may request from the Department of
Revenue a certified copy of the applicant's Illinois income tax return for any
year for which a benefit under this Section is payable or has been paid.
The annual increase shall accrue on each anniversary of the initial pension
payment date, for so long as the pension remains payable to the disabled police
officer and the required annual application is made, except that the annual
increases under this subsection shall cease if the disabled police officer
earns income from gainful employment. Within 60 days after accepting an
initial application under this subsection, the Fund shall pay to the disabled
police officer, in a lump sum without interest, the amounts resulting from the
annual increases that have accrued retroactively.
This subsection is not limited to persons in active service on or after its
effective date, but it applies only to a pension that is payable under this
Section to a disabled police officer (rather than a survivor). Upon the death
of the disabled police officer, the annuity payable under this Section to his
or her survivors shall include any annual increases previously received, but no
additional increases shall accrue under this subsection.
(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-114.2) (from Ch. 108 1/2, par. 3-114.2)
Sec. 3-114.2.
Disability pension - Not on duty.
A police officer who
becomes disabled as a result of any cause other than the performance of an act
of duty, and who is found to be physically or mentally disabled so as to render
necessary his or her suspension or retirement from police service in the police
department, shall be entitled to a disability pension of 50% of the salary
attached to the officer's rank on the police force at the date of suspension of
duty or retirement.
If a police officer on disability pension dies while still disabled, the
disability pension shall continue to be paid to the officer's survivors
in the sequence provided in Section 3-112.
From and after July 1, 1987, any pension payable under this Section shall
be at least $400 per month, without regard to the fact that the disability
or death of the police officer occurred prior to that date.
If the minimum pension established in Section 3-113.1 is greater than the
minimum provided in this Section, the Section 3-113.1 minimum controls.
(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
Sec. 3-114.3.
Heart attack or stroke suffered in performance of duties.
Any police officer who suffers a heart attack or stroke as a result of the
performance and discharge of police duty shall be considered as having been
injured in the performance of an act of duty and shall be eligible for the
benefits provided under this Article for police officers injured in the
performance of an act of duty or, if applicable, the benefits provided in
Section 3-114.6.
(Source: P.A. 90-766, eff. 8-14-98; 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
Sec. 3-114.4.
Return to active duty after disability.
A police officer
who receives a disability pension under Section 3-114.1, 3-114.2, or 3-114.6
for more than 2 years and who returns to active
duty must remain in active police service for at least 5 years before becoming
eligible for a disability pension greater than the pension paid for the prior
disability.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/3-114.5) (from Ch. 108 1/2, par. 3-114.5) Sec. 3-114.5. Reduction of disability and survivor's benefits for corresponding benefits payable under Workers' Compensation and Workers' Occupational Diseases Acts. (a) Whenever a person is entitled to a disability or survivor's benefit under this Article and to benefits under the Workers' Compensation Act or the Workers' Occupational Diseases Act for the same injury or disease, the benefits payable under this Article shall be reduced by an amount computed in accordance with subsection (b) of this Section. There shall be no reduction, however, for any of the following: payments for medical, surgical and hospital services, non-medical remedial care and treatment rendered in accordance with a religious method of healing recognized by the laws of this State and for artificial appliances; payments made for scheduled losses for the loss of or permanent and complete or permanent and partial loss of the use of any bodily member or the body taken as a whole under subdivision (d)2 or subsection (e) of Section 8 of the Workers' Compensation Act or Section 7 of the Workers' Occupational Diseases Act; payments made for statutorily prescribed losses under subdivision (d)2 of Section 8 of the Workers' Compensation Act or Section 7 of the Workers' Occupational Diseases Act; and that portion of the payments which is utilized to pay attorneys' fees and the costs of securing the workers' compensation benefits under either the Workers' Compensation Act or Workers' Occupational Diseases Act. (b) The reduction prescribed by this Section shall be computed as follows: (1) In the event that a person entitled to benefits | ||
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(2) If the benefits deductible under this Section are | ||
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(Source: P.A. 84-1472.) |
(40 ILCS 5/3-114.6)
Sec. 3-114.6.
Occupational disease disability pension.
(a) This Section applies only to police officers who are employed by a
municipality with a combined police and fire department and who have regular
firefighting duties in addition to their law enforcement duties.
(b) The General Assembly finds that service in a police department that also
has firefighting duties requires officers to perform unusual tasks in times of
stress and danger; that officers are subject to exposure to extreme heat or
extreme cold in certain seasons while performing their duties; that they are
required to work in the midst of and are subject to heavy smoke fumes and
carcinogenic, poisonous, toxic, or chemical gases from fires; and that these
conditions exist and arise out of or in the course of employment.
(c) An active officer with 5 or more years of creditable service who is
found to be unable to perform his or her duties in the department by reason
of heart disease, stroke, tuberculosis, or any disease of the lungs or
respiratory tract, resulting from service as an officer, is entitled to an
occupational disease disability pension during any period of such disability
for which he or she has no right to receive salary.
An active officer who has completed 5 or more years of service and is unable
to perform his or her duties in the department by reason of a disabling cancer,
which develops or manifests itself during a period while the officer is in the
service of the department, is entitled to receive an occupational disease
disability benefit during any period of such disability for which he or she
does not have a right to receive salary. In order to receive this occupational
disease disability benefit, (i) the cancer must be of a type that may
be caused by exposure to heat, radiation, or a known carcinogen as defined by
the International Agency for Research on Cancer and (ii) the cancer must (and
is rebuttably presumed to) arise as a result of service as an officer.
An officer who, after the effective date of this amendatory Act of 1998,
enters the service of a combined police and fire department and has regular
firefighting duties shall be examined by one or more practicing physicians
appointed by the board. If the examination discloses impairment of the heart,
lungs, or respiratory tract, or the existence of cancer, the officer shall not
be entitled to an occupational disease disability pension under this Section
unless and until a subsequent examination reveals no such impairment or cancer.
The occupational disease disability pension shall be equal to the greater
of 65% of the salary
attached to the rank held by the officer at the time of his or her removal
from the municipality's department payroll or (2) the retirement pension that
the police officer would be eligible to receive if he or she retired (but not
including any automatic annual increase in that retirement pension).
The occupational disease disability pension is payable to the officer
during the period of the disability. If the disability ceases before the
death of the officer, the disability pension payable under this Section
shall also cease and the officer thereafter shall receive such pension
benefits as are provided in accordance with other provisions of this Article.
If an officer dies while still disabled and receiving a disability pension
under this Section, the disability pension shall continue to be paid to
the officer's survivors in the sequence provided in Section 3-112.
(Source: P.A. 90-766, eff. 8-14-98; 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-115) (from Ch. 108 1/2, par. 3-115)
Sec. 3-115.
Certificate of disability.
A disability pension shall not be paid unless there is filed with
the board certificates of the police officer's
disability, subscribed and sworn
to by the police officer if not under legal disability, or by a
representative if the officer is under legal
disability, and by the police
surgeon (if there be one) and 3 practicing physicians selected by the
board. The board may require other evidence of
disability. Medical examination of
a police officer retired for disability shall be made
at least once each year
prior to attainment of age 50, as verification of the continuance
of disability
for service as a police officer. No examination shall
be required after age 50.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-116) (from Ch. 108 1/2, par. 3-116)
Sec. 3-116. Examination and emergency service. A police officer whose duty is suspended because of disability may be
summoned to appear before the board, and to submit to an examination
to determine fitness for duty. The
officer shall abide by the board's decision. If a police officer retired
for disability, except one who voluntarily retires after 20 years' service,
is found upon medical examination to have recovered from
disability, the board shall certify to the chief of police that the member
is no longer disabled and is able to resume the duties of his or her
position. In case of emergency, a disabled police officer
may be assigned to and shall perform such
duty without right to compensation as the chief of police or chief officer
of the municipality may
direct. This Section does not apply to a police officer who has attained the age of 60.
(Source: P.A. 103-33, eff. 6-9-23.)
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(40 ILCS 5/3-116.1) (from Ch. 108 1/2, par. 3-116.1)
Sec. 3-116.1.
Disability pension option.
A police officer age 50 or
older who is receiving a disability pension may by written application to
the board, elect the disability pension option if the period during which
a disability pension was paid when added to the period of active service
equals at least 20 years. The election shall permit the officer to continue
to receive a retirement pension for the remainder of his or her life of
1/2 of the salary at the date of the retirement on disability in lieu of
any amounts which would have been payable to the officer under Section 3-111.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-117) (from Ch. 108 1/2, par. 3-117)
Sec. 3-117.
Police officers over age 50.
This Article shall not be
construed to require the retirement at age 50 of any police officer capable
of performing his or her duties.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-117.1) (from Ch. 108 1/2, par. 3-117.1)
Sec. 3-117.1.
Waiver.
A retired police officer or surviving spouse may
execute a written waiver of the right to receive all or part of his or her
pension. A waiver shall take effect upon its being filed with the board and
may be revoked only within the first 30 days after it is filed with the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-120) (from Ch. 108 1/2, par. 3-120)
Sec. 3-120. Marriage after retirement.
(a) If a police officer marries subsequent to retirement on any pension
under this Article other than a pension established under Section 3-109.3,
the surviving spouse and the children of such surviving
spouse shall receive no pension on the death of the officer, except as
provided in subsection (b) or (c).
(b) Notwithstanding Section 1-103.1 of this Code, this Section shall
not be deemed to disqualify from receiving a survivor's pension the
surviving spouse and children of any police officer who (i) retired from
service in 1973, married the surviving spouse during 1974, and died in
1988, or (ii) retired on disability in October of 1982, married the
surviving spouse during 1991, and died in 1992. In the case of a person
who becomes eligible for a benefit under this subsection (b), the benefit
shall begin to accrue on July 1, 1990 or July 1 of the year following the
police officer's death, whichever is later.
(c) This Section does not disqualify a surviving spouse from receiving a survivor's pension if (i) the police officer was married to the surviving spouse for at least 5 years prior to the police officer's death and (ii) the surviving spouse has attained age 62. For a person who becomes eligible for a benefit under this subsection (c), the benefit shall begin to accrue on the effective date of this amendatory Act of the 102nd General Assembly or the first day of the month following the police officer's death, whichever is later. Notwithstanding any other provision of this Code, the benefits for a surviving spouse who qualifies under this subsection shall terminate no later than 15 years after the benefits begin to accrue. For the purposes of Section 1-103.1 of this Code, this subsection is applicable without regard to whether the police officer was in active service on or after the effective date of this amendatory Act of the 102nd General Assembly. (Source: P.A. 102-811, eff. 1-1-23.)
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(40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
Sec. 3-121.
Marriage and remarriage.
The pensions provided in Sections
3-112, 3-114.1, 3-114.2, and 3-114.6 shall not be paid to a child
or dependent parent after marriage or remarriage of the child or dependent
parent following the death of the police officer.
The pensions provided in Sections 3-112, 3-114.1 and 3-114.2 shall not be
paid to a surviving spouse after remarriage following the death of the police
officer, if the remarriage occurs (i) prior to January 1, 1974 or (ii)
after December 31, 1974 but before the effective date of this amendatory Act
of 1995. Remarriage on or after the effective date of this amendatory Act of
1995 does not affect the surviving spouse's eligibility for those pensions,
regardless of whether the deceased police officer was in service on or after
that effective date. A surviving spouse whose pension was terminated due to
remarriage during 1974, and who applies for reinstatement of that pension
before January 1, 1990, shall be entitled to have the pension reinstated
beginning on January 1, 1990.
(Source: P.A. 89-408, eff. 11-15-95; 90-766, eff. 8-14-98.)
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(40 ILCS 5/3-122) (from Ch. 108 1/2, par. 3-122)
Sec. 3-122.
Pensions to survivors of male and female police
officers. All provisions of this Article relating to pensions
to a surviving spouse, children
or dependent parents of a police officer shall
apply with equal force to
the surviving spouse, minor children and dependent parents of male and
female police officers without any modification whatsoever.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-123) (from Ch. 108 1/2, par. 3-123)
Sec. 3-123.
Non-resident pensioner.
A pensioner under this Article
who resides
outside of Illinois shall from time to time furnish the board such proof
or affidavits as the board may require
concerning compliance with the provisions of this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-124) (from Ch. 108 1/2, par. 3-124)
Sec. 3-124.
Refund.
A police officer who is separated from police
service after June 30, 1953 with less than 20 years of service is entitled
to a refund upon request of all
contributions made by the officer to the police pension
fund.
Acceptance of a refund shall bar the police officer and
his or her dependents
from any further participation in the benefits of this Article subject
to restoration upon re-entry into service and repayment to the fund of
the refund together with interest at 2% per annum from the
date of refund until
the date of repayment.
If a police officer dies with less than 10 years of police service,
the officer's
contributions to the police pension fund shall, upon the
written request of his or her surviving spouse, be refunded
to the spouse without interest. If
upon the death of a police officer, there is no surviving spouse, the
excess of the officer's contributions to the fund over
any pension payments shall be refunded to his or her heirs or estate.
Acceptance of this refund shall bar the police officer's
dependents or estate
from any further participation in the benefits provided under
this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
Sec. 3-124.1. Re-entry into active service. (a) If a police officer who is
receiving
pension payments other than as provided in Section 3-109.3 re-enters active
service, pension payment shall be suspended
while he or she is in service. When he or she again retires, pension payments
shall be resumed. If the police officer remains in service after re-entry
for a period of less than 5 years, the pension shall be the same as upon
first retirement. If the officer's service after re-entry is at least 5
years and the officer makes the required contributions during the period
of re-entry, his or her pension shall be recomputed by taking into account
the additional period of service and salary. (b) If a police officer who first becomes a member on or after January 1, 2019 is receiving pension payments (other than as provided in Section 3-109.3) and re-enters active
service with any municipality that has established a pension fund under this Article, that police officer may continue to receive pension payments while he or she is in active service, but shall only participate in a defined contribution plan established by the municipality pursuant to Section 3-109.4 and may not establish creditable service in the pension fund established by that municipality or have his or her pension recomputed.
(Source: P.A. 100-281, eff. 8-24-17.)
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(40 ILCS 5/3-124.2) (from Ch. 108 1/2, par. 3-124.2)
Sec. 3-124.2.
Deduction for group plans.
If a municipality sponsors
a group hospital and medical plan which includes retired police officers
and their spouses, upon written request of a retired police officer, deductions
shall be made from the pension payments of the officer in the amounts which
the officer is required to contribute toward the group plan in order to
obtain such coverage.
Whenever continued group insurance coverage is elected in accordance
with the provisions of Section 367g of the Illinois Insurance Code, as now
or hereafter amended, the total monthly premium for such continued group
insurance coverage or such portion thereof as is not paid
by the municipality
shall, upon request of the person electing such
continued group insurance coverage, be deducted from any monthly pension
benefit otherwise payable to such person pursuant to this Article, to be
remitted by the pension fund making such deduction to the insurance company
or other entity providing the group insurance coverage.
(Source: P.A. 84-1010.)
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(40 ILCS 5/3-124.3) Sec. 3-124.3. Authority of the fund. Subject to Section 3-141.1, the fund shall retain the exclusive authority to adjudicate and award disability benefits pursuant to Sections 3-114.1, 3-114.2, and 3-114.3, retirement benefits pursuant to Section 3-111, and survivor benefits under Sections 3-112 and 3-113.1 and to issue refunds pursuant to Section 3-124. The exclusive method of judicial review of any final administrative decision of the fund shall be made in accordance with Section 3-148. The Police Officers' Pension Investment Fund established under Article 22B of this Code shall not have the authority to control, alter, or modify, or the ability to review or intervene in, the proceedings or decisions of the fund as otherwise provided in this Section.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
Sec. 3-125. Financing. (a) The city council or the board of trustees of
the municipality shall annually levy a tax upon all
the taxable property of the municipality at the rate on the dollar which
will produce an amount which, when added to the deductions from the salaries
or wages of police officers, and revenues
available from other
sources, will equal a sum sufficient to meet
the annual requirements of the police pension fund. The annual
requirements to be provided by such tax levy are equal
to (1) the normal cost of the pension fund for the year involved, plus
(2) an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2040, as annually updated and determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. In making these determinations, the required minimum employer contribution shall be calculated each year as a level percentage of payroll over the years remaining up to and including fiscal year 2040 and shall be determined under the projected unit credit actuarial cost method. The tax shall be levied and
collected in the same manner as the general taxes
of the municipality, and in addition to all other taxes now or hereafter authorized to
be levied upon all property within the municipality, and shall be in
addition to the amount authorized to be levied for general purposes as
provided by Section 8-3-1 of the Illinois Municipal Code, approved May
29, 1961, as amended. The tax shall be forwarded directly to the treasurer of the board within 30 business days after receipt by the county.
(b) For purposes of determining the required employer contribution to a pension fund, the value of the pension fund's assets shall be equal to the actuarial value of the pension fund's assets, which shall be calculated as follows: (1) On March 30, 2011, the actuarial value of a | ||
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(2) In determining the actuarial value of the | ||
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(c) If a participating municipality fails to transmit to the fund contributions required of it under this Article for more than 90 days after the payment of those contributions is due, the fund may, after giving notice to the municipality, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in fiscal year 2016, deduct and remit to the fund the certified amounts or a portion of those amounts from the following proportions of payments of State funds to the municipality: (1) in fiscal year 2016, one-third of the total | ||
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(2) in fiscal year 2017, two-thirds of the total | ||
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(3) in fiscal year 2018 and each fiscal year | ||
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The State Comptroller may not deduct from any payments of State funds to the municipality more than the amount of delinquent payments certified to the State Comptroller by the fund. (d) The police pension fund shall consist of the following moneys which
shall be set apart by the treasurer of the municipality:
(1) All moneys derived from the taxes levied | ||
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(2) Contributions by police officers under Section | ||
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(2.5) All moneys received from the Police Officers' | ||
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(3) All moneys accumulated by the municipality under | ||
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(4) Donations, gifts or other transfers authorized by | ||
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(e) The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the General
Assembly on or before January 1, 2013. To the fullest extent possible, the study shall include, but not be limited to, the following: (1) fund balances; (2) historical employer contribution rates for each | ||
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(3) the actuarial formulas used as a basis for | ||
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(4) available contribution funding sources; (5) the impact of any revenue limitations caused by | ||
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(6) existing statutory funding compliance procedures | ||
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(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1)
Sec. 3-125.1.
Contributions by police officers.
Each police officer
shall contribute to the pension fund the following percentages of salary
for the periods stated: Beginning July 1, 1909 and prior to July 23, 1943,
1% (except that prior to July 1, 1921 not more than one dollar per month
shall be deducted, and except that beginning July 1, 1921 and prior to July
1, 1927 not more than $2 per month shall be deducted); beginning July 23,
1943 and prior to July 20, 1949, 3%; beginning July 20, 1949 and prior to
July 17, 1959, 5%; beginning July 17, 1959 and prior to July 1, 1971, 7%;
beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%; beginning
July 1, 1975 and prior to January 1, 1987, 8 1/2%; beginning
January 1, 1987 and prior to January 1, 2001, 9%; and beginning
January 1, 2001, 9.91%. Such sums shall be paid or deducted monthly.
Contribution to the self-managed plan shall be no less than 10% of
salary.
"Salary" means the annual salary, including longevity, attached to the
police officer's rank, as established by the municipality's appropriation
ordinance, including any compensation for overtime which is included in
the salary so established, but excluding any "overtime pay", "holiday
pay", "bonus pay", "merit pay", or any other cash benefit not included in
the salary so established.
(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-125.2) (from Ch. 108 1/2, par. 3-125.2)
Sec. 3-125.2.
Pick up of contributions.
A municipality may pick up
the police officers' contributions required by Section 3-125.1 for all salary
earned after December 31, 1981. If a municipality decides not to pick up
the contributions, the required contributions shall continue to be deducted
from salary. If contributions are picked up, they shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code. However, the municipality shall continue to withhold Federal
and State income taxes based upon these contributions until the Internal
Revenue Service or the Federal courts rule that pursuant to Section 414(h)
of the United States Internal Revenue Code these contributions shall not
be included as gross income of the police officers until such time as they
are distributed or made available. The municipality shall pay these contributions
from the same source of funds which is used to pay the salaries of police
officers. The municipality may pick up these contributions by a reduction
in the cash salary of the police officer or by an offset against a future
salary increase or by a combination of a reduction in salary and offset
against a future salary increase. If contributions are picked up they shall
be considered for all purposes of this Article as police officers' contributions
made prior to the time that contributions were picked up.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127)
Sec. 3-127.
Reserves.
The board shall establish and maintain a reserve
to insure the payment of all obligations incurred under this Article
excluding retirement annuities established under Section 3-109.3. The
reserve to be accumulated shall be equal to the estimated total actuarial
requirements of the fund.
If a pension fund has a reserve of less than the accrued liabilities of
the fund, the board of the pension fund, in making its annual report to the
city council or board of trustees of the municipality, shall designate the
amount, calculated as a level percentage of payroll, needed annually to
insure the accumulation of the reserve to the level of the fund's accrued
liabilities over a period of 40 years from July 1, 1993 for pension funds then
in operation, or from the date of establishment in the case of a fund created
thereafter, so that the necessary reserves will be attained over such a period.
(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/3-128) (from Ch. 108 1/2, par. 3-128)
Sec. 3-128.
Board created.
A board of 5 members shall constitute a board of trustees to administer the
pension fund and to designate the beneficiaries thereof. The board shall be
known as the "Board of Trustees of the Police Pension Fund"
of the municipality.
Two members of the board shall be appointed by the mayor or president of
the board of trustees of the municipality involved. The 3rd and 4th
members of the board shall be elected from the active participants of
the pension fund by such active
participants. The 5th member shall be elected by and from the
beneficiaries.
One of the members appointed
by the mayor or president of the board of trustees shall serve for
one year beginning on the 2nd Tuesday in May
after the municipality comes under this Article. The other
appointed member shall serve for 2 years beginning on the same date. Their
successors shall serve for 2
years each or until their successors are appointed and qualified.
The election for board members
shall be held biennially on the 3rd Monday in April, at such place or
places in the municipality and under the Australian ballot system and such
other regulations as shall be prescribed by the appointed members of the
board.
The active pension fund participants shall be entitled to vote only
for the active participant members of the board. All beneficiaries of
legal age may vote only for the member chosen from among the
beneficiaries. No person shall be entitled to cast more than one ballot at
such election. The term of elected members shall be 2 years,
beginning on the 2nd Tuesday of the first May after the election.
Upon the death, resignation or inability to act of any elected board
member, his or her successor shall be elected for the
unexpired term at a special election, to be called by the board and
conducted in the same manner as the regular biennial election.
Members of the board shall neither receive nor have any right to
receive any salary from the pension fund for services performed as trustees
in that office.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-129) (from Ch. 108 1/2, par. 3-129)
Sec. 3-129.
Rooms.
Suitable rooms for board offices and meetings shall be assigned
by the mayor or city council or board of trustees of the municipality.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-130) (from Ch. 108 1/2, par. 3-130)
Sec. 3-130.
Board meetings.
The board
shall hold annually regular quarterly meetings in
July, October, January and April, and special meetings as called
by the president.
At the regular July meeting, the board shall select from its members a
president, vice-president, secretary, and assistant secretary to serve for
one year and until their respective
successors are elected and
qualified.
The vice-president shall perform the duties of president
during any vacancy in that office, or during the president's absence
from the municipality, or if he or she is by
reason of illness or other causes unable to perform the
duties of the office.
The assistant secretary shall act for the secretary whenever necessary
to discharge the functions of such office.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-131) (from Ch. 108 1/2, par. 3-131)
Sec. 3-131.
Powers and duties of board.
The board shall have the powers and duties stated in Sections 3-132 through
3-140.1 in addition to the other powers and duties provided
under
this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-132) (from Ch. 108 1/2, par. 3-132)
Sec. 3-132. To control and manage the Pension Fund. In accordance with the
applicable provisions of Articles 1 and 1A and this Article, to control and
manage, exclusively, the following:
(1) the pension fund,
(2) until the board's investment authority is | ||
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(3) all money donated, paid, assessed, or provided by | ||
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All money received or collected shall be credited by the treasurer of the
municipality to the account of the pension fund and
held by the treasurer of the municipality subject to the order and
control of the board. The treasurer of the municipality shall maintain a
record of all money received, transferred, and held for the account of the
board.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/3-132.1) Sec. 3-132.1. To transfer investment authority to the Police Officers' Pension Investment Fund. As soon as practicable after the effective date of this amendatory Act of the 101st General Assembly, but no later than 30 months after the effective date of this amendatory Act of the 101st General Assembly, each transferor pension fund shall transfer, in accordance with the requirements of Section 22B-120, to the Police Officers' Pension Investment Fund created under Article 22B for management and investment all of their securities or for which commitments have been made, and all funds, assets, or moneys representing permanent or temporary investments, or cash reserves maintained for the purpose of obtaining income thereon. Upon the transfer of such securities, funds, assets, and moneys of a transferor pension fund to the Police Officers' Pension Investment Fund, the transferor pension fund shall not manage or control the same and shall no longer exercise any investment authority pursuant to Section 3-135 of this Code, notwithstanding any other provision of this Article to the contrary. Nothing in this Section prohibits a fund under this Article from maintaining an account, including an interest earning account, for the purposes of benefit payments and other reasonable expenses after the end of the transition period as defined in Section 22B-112, and funds under this Article are encouraged to consider a local bank or financial institution to provide such accounts and related financial services.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/3-133) (from Ch. 108 1/2, par. 3-133)
Sec. 3-133.
To order payments and issue certificates.
To order the payment of pensions and other benefits and to issue certificates
signed by its president and
secretary to the beneficiaries stating
the amount and purpose of
the payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-134) (from Ch. 108 1/2, par. 3-134)
Sec. 3-134.
To submit annual list of fund payments.
To submit annually to the city council or board of trustees at the close
of the municipality's fiscal year, a list of persons entitled to payments
from the fund, stating the amount of payments, and their purpose, as
ordered by the board. It shall also include items of income accrued to the
fund during the fiscal year. The list shall be
signed by the secretary
and president of the board, and attested under oath. A resolution or order
for the payment of money shall not be valid unless approved by a majority of
the board members, and signed by the president and secretary of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-135) (from Ch. 108 1/2, par. 3-135)
Sec. 3-135.
To invest funds.
Beginning January 1, 1998, the
board shall invest funds in accordance with Sections 1-113.1 through 1-113.10
of this Code.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/3-136) (from Ch. 108 1/2, par. 3-136)
Sec. 3-136.
To subpoena witnesses.
To compel witnesses to attend and testify before it upon all matters
connected with the administration of this Article, in the manner provided
by law for the taking of testimony in the circuit courts
of this State. The president, or any board member, may administer oaths to
witnesses.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-137) (from Ch. 108 1/2, par. 3-137)
Sec. 3-137.
To appoint clerk.
To appoint a clerk and define his duties. No person drawing a pension
under this Article shall be employed by the Board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/3-138) (from Ch. 108 1/2, par. 3-138)
Sec. 3-138.
To pay expenses.
To provide for the payment from the fund of all necessary expenses,
including clerk hire, printing and witness fees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/3-139) (from Ch. 108 1/2, par. 3-139)
Sec. 3-139.
To keep records.
To keep a public record of all its proceedings.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/3-140) (from Ch. 108 1/2, par. 3-140)
Sec. 3-140.
To make rules.
To make necessary rules and regulations in conformity with the
provisions of this Article, and
to publish and transmit copies from time to time to
all pensioners and contributors.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-140.1) (from Ch. 108 1/2, par. 3-140.1)
Sec. 3-140.1.
To accept donations.
To accept by gift, grant, transfer,
or bequest, any money, real estate, or personal property. Such money and
the proceeds from the sale of or the income from such real estate or personal
property shall be paid into the pension fund.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-141) (from Ch. 108 1/2, par. 3-141)
Sec. 3-141.
Annual report by treasurer.
On the 2nd Tuesday in May annually, the treasurer and all other
officials of the municipality who had the custody of any pension funds
herein provided, shall make a sworn statement to the pension board,
and to the mayor and council or president
and board of trustees of the municipality, of all moneys received and paid out by
them on account of the pension fund during the year, and of the amount of
funds then on hand and owing to the pension fund. All surplus then
remaining with any official other than the treasurer shall be paid to the
treasurer of the municipality. Upon demand of the pension board, any
official shall furnish a statement relative to the official method of
collection or handling of the pension funds. All books and
records of that
official shall be produced at any time by him for examination and
inspection by the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-141.1) Sec. 3-141.1. Award of benefits. Prior to the board's determination of benefits, the board shall provide, in writing, the total amount of the annuity for a member and all information used in the calculation of that benefit to the Treasurer of the municipality. If the Treasurer is of the opinion that the calculated annuity is incorrect, the Treasurer shall immediately notify the board. The board shall review the Treasurer's findings, and if the Board concurs that an error exists it shall re-determine the annuity so that it is calculated in accordance with the Illinois Pension Code.
(Source: P.A. 95-950, eff. 8-29-08.) |
(40 ILCS 5/3-142) (from Ch. 108 1/2, par. 3-142)
Sec. 3-142. Payment of benefits - funds insufficient. Any police officer and any eligible surviving spouse, child or children,
or dependent parent
of the officer to whom the
board has ordered benefits to be paid, shall receive a yearly benefit
payable in 12 equal monthly installments, which shall be the aggregate
amount to which they are entitled.
If at any time there is not sufficient money
in the fund to pay the
benefits under this Article
the city council or board of
trustees of the municipality shall make every legal effort to
replenish the fund so that all beneficiaries may receive the amounts to
which they are entitled.
(Source: P.A. 96-1517, eff. 2-4-11.)
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(40 ILCS 5/3-143) (from Ch. 108 1/2, par. 3-143)
Sec. 3-143. Report by pension board. (a) The pension board shall report annually to the city
council or board of trustees of the municipality on the condition of the
pension fund at the end of its most recently completed fiscal year. The
report shall be made prior to the council or board meeting held for the levying
of taxes for the year for which the report is made.
The pension board shall certify and provide the following information to the city council or board of trustees of the municipality:
(1) the total assets of the fund in its custody at | ||
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(2) the estimated receipts during the next succeeding | ||
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(3) the estimated amount required during the next | ||
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(4) the total net income received from investment of | ||
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(5) the total number of active employees who are | ||
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(6) the total amount that was disbursed in benefits | ||
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(7) the funded ratio of the fund; (8) the unfunded liability carried by the fund, along | ||
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(9) the investment policy of the pension board under | ||
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Before the pension board makes its report, the municipality shall have the assets
of the fund and their current market value verified by an independent certified
public accountant of its choice.
(b) The municipality is authorized to publish the report submitted under this Section. This publication may be made, without limitation, by publication in a local newspaper of general circulation in the municipality or by publication on the municipality's Internet website. If the municipality publishes the report, then that publication must include all of the information submitted by the pension board under subsection (a). (Source: P.A. 100-863, eff. 8-14-18.)
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(40 ILCS 5/3-144) (from Ch. 108 1/2, par. 3-144)
Sec. 3-144.
Application to certain police officer's
annuity and benefit funds. As of July 20, 1949, the pension fund established
under this Article superseded and replaced any annuity and benefit fund
in operation under "An Act to
provide for the creation, setting apart, maintenance and administration of
a policemen's annuity and benefit fund in cities having a population of not
less than one hundred thousand and not more than two hundred thousand
inhabitants", approved June 12, 1931, as amended, which Act was repealed
in 1949. Any such superseded fund was merged into and became a part of the
pension fund established under this Article.
All annuities, pensions and other benefits granted under any such superseded
fund or any pre-existing police pension fund, and claims pending
under such funds which were approved by the board of the superseding funds
shall be paid by the board of trustees of the funds established under this
Article according to the law under which the annuities, pensions or other
benefits were granted.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-144.1) (from Ch. 108 1/2, par. 3-144.1)
Sec. 3-144.1.
All pensions, refunds or disability pension benefits granted
under this Article, and every portion thereof, shall be exempt from attachment
or garnishment process and shall not be seized, taken, subjected to, detained
or levied upon by virtue of any judgment, or any process or proceedings
whatsoever issued out of or by any court for the payment and satisfaction
in whole or in part of any debt, damage, claim, demand or judgment against
a pensioner, refund applicant or other beneficiary hereunder.
(Source: P.A. 84-546.)
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(40 ILCS 5/3-144.2) (from Ch. 108 1/2, par. 3-144.2)
Sec. 3-144.2. Mistake in benefit. (a) If the Fund commits a mistake by setting any benefit at an incorrect amount, it shall adjust the benefit to the correct level as soon as may be practicable after the mistake is discovered. The term "mistake" includes a clerical or administrative error executed by the Fund or participant as it relates to a benefit under this Article; however, in no case shall "mistake" include any benefit as it relates to the reasonable calculation of the benefit or aspects of the benefit based on salary, service credit, calculation or determination of a disability, date of retirement, or other factors significant to the calculation of the benefit that were reasonably understood or agreed to by the Fund at the time of retirement. (b) If the benefit was mistakenly set too low, the Fund shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the rate prescribed by the Public Pension Division of the Department of Insurance from the date the unpaid amounts accrued to the date of payment. (c) If the benefit was mistakenly set too high, the Fund may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient as is indicated by the recipient. If the overpayment is recovered by deductions from the remaining benefits payable to the recipient, the monthly deduction shall not exceed 10% of the corrected monthly benefit unless otherwise indicated by the recipient. However, if (i) the amount of the benefit was mistakenly set too high, and (ii) the error was undiscovered for 3 years or longer, and (iii) the error was not the result of fraud committed by the affected participant or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the Fund the excess amounts received in error.
(Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/3-144.5)
Sec. 3-144.5. Fraud. Any person, member, trustee, or employee of the board who knowingly
makes any false statement or falsifies or permits to be falsified any
record of a fund in any attempt to defraud such fund as a
result of such act, or intentionally or knowingly defrauds a fund in any manner, is guilty of a Class A misdemeanor.
(Source: P.A. 95-950, eff. 8-29-08.) |
(40 ILCS 5/3-144.6) Sec. 3-144.6. Dissolution and reestablishment of inactive police pension funds. The corporate authorities of a municipality for which a pension fund has been established under this Article may, by resolution or ordinance, dissolve the fund if an independent auditor has certified to the authorities that the fund has no liabilities, participants, or beneficiaries entitled to benefits, and the authorities shall reestablish the fund if a police officer of the municipality seeks to establish service credit in the fund or if reestablishment of the fund is required upon a former police officer's reinstatement of creditable service under subsection (b) of Section 3-110.7 of this Code. The Public Pension Division of the Department of Insurance shall adopt rules regarding the process and procedures for (i) dissolving a pension fund under this Section and (ii) redistributing assets and reestablishing the fund if reestablishment of the fund is necessary.
(Source: P.A. 97-99, eff. 1-1-12.) |
(40 ILCS 5/3-145) (from Ch. 108 1/2, par. 3-145)
Sec. 3-145. Referendum in municipalities less than 5,000. (a) This Article
shall not be effective in any
municipality having a population of less than 5,000 unless the
proposition to adopt the Article is submitted
to and approved
by the voters of the municipality in the manner herein provided.
Whenever the electors of the municipality, equal in number to 5% of
the number of legal votes cast at the last preceding general municipal
election, petition the city, village or town clerk to submit the proposition
whether
that municipality shall adopt this Article, the officer to whom the
petition is addressed shall certify the proposition to the proper election
officials who shall submit the proposition in accordance
with the general election law at a regular election in the municipality
provided that notice of the referendum, if held
before July 1, 1999,
has been given in accordance with the provisions of Section
12-5
of the Election Code in effect at the time of the bond referendum, at least
10 and not more than 45 days before the date of
the election, notwithstanding the time for publication otherwise imposed by
Section 12-5.
Notices required in connection with the submission of public questions
on or after July 1, 1999 shall be as set forth in Section 12-5 of the Election
Code.
If the proposition is not adopted at
that election, it may be submitted in like manner at any regular election
thereafter. The
proposition shall be substantially in the following form:
Shall the city (or village orincorporated town) of.... adopt YESArticle 3 of the "Illinois Pension Code", pertaining to the creation NOof a police pension fund?
If a majority of the votes cast on the proposition
is for the proposition, this Article is adopted in that municipality.
(b) For a period of 60 days after the effective date of this amendatory Act of the 96th General Assembly, if a municipality having a population of less than 5,000 has adopted this Article in accordance with the provisions of subsection (a), the municipality may elect to terminate participation under this Article if all of the following conditions are met: (1) An independent auditor certifies that the fund | ||
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(2) The corporate authorities of the municipality, by | ||
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If the conditions of this subsection (b) are met and the closed fund contains assets, those assets shall be transferred to the municipality for its general corporate purposes.
If a municipality that terminates participation under this Article in accordance with this subsection (b) wants to reinstate the fund, then the proposition to re-adopt the Article must be submitted to and approved
by the voters of the municipality in the manner provided in subsection (a).
(Source: P.A. 96-216, eff. 8-10-09.)
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(40 ILCS 5/3-147) (from Ch. 108 1/2, par. 3-147)
Sec. 3-147. Felony conviction. None of the benefits provided in
this Article shall be paid to any person who is convicted of any felony
relating to or arising out of or in
connection with his or her service as a police officer. None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the police officer from whom the benefit results.
This Section shall not impair any contract or vested right acquired prior
to July 11, 1955 under any law
continued in this Article, nor
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All persons entering service subsequent to July
11, 1955 are deemed to have consented to the provisions of this Section as a
condition of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/3-148) (from Ch. 108 1/2, par. 3-148)
Sec. 3-148. Administrative review. Except as it relates to any time limitation to correct a mistake as provided in Section 3-144.2, the provisions of the Administrative Review Law,
and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the retirement board
provided for under this Article. The term "administrative decision" is as
defined in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/3-149) (from Ch. 108 1/2, par. 3-149)
Sec. 3-149.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/3-150) (from Ch. 108 1/2, par. 3-150)
Sec. 3-150.
Applicability of home rule powers.
A home rule
unit, as defined in Article VII of the 1970 Illinois Constitution or any
amendment thereto, shall have no power to change, alter,
or amend in any way the provisions of this
Article. A home rule unit which is a municipality, as defined
in Section 3-103, shall not provide for, singly or as a part of any
plan or program, by any means whatsoever, any type of retirement
or annuity benefit to a police officer other than through
establishment
of a fund as provided in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/3-152) (from Ch. 108 1/2, par. 3-152)
Sec. 3-152.
Savings clause.
The repeal or amendment of any Section
or provision of this Article by this amendatory Act of 1984 shall not affect
or impair any pensions, benefits, rights or credits accrued or in effect
prior thereto.
(Source: P.A. 83-1440.)
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(40 ILCS 5/Art. 4 heading) ARTICLE 4.
FIREFIGHTERS' PENSION FUND
MUNICIPALITIES 500,000 AND UNDER
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(40 ILCS 5/4-101) (from Ch. 108 1/2, par. 4-101)
Sec. 4-101. Creation of fund. In each municipality as defined in Section 4-103, the city council or
the board of trustees, as the case may be, shall establish and administer
a firefighters' pension fund as
prescribed in this Article, for the
benefit of its firefighters
and of their surviving spouses,
children and certain other dependents. The duty of the corporate authorities of a municipality to establish and administer a firefighters' pension fund shall be suspended during any period during which the fund is dissolved under subsection (c) of Section 4-106.1 of this Code.
(Source: P.A. 97-99, eff. 1-1-12.)
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(40 ILCS 5/4-102) (from Ch. 108 1/2, par. 4-102)
Sec. 4-102.
Terms defined.
The terms used in this Article
have the meanings ascribed to them in Sections 4-103 through
4-106, except when the context otherwise requires.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
Sec. 4-103.
Municipality.
"Municipality": (1) Any city, township, village or incorporated town
of 5,000 or more but less than 500,000
inhabitants, and any fire protection district having any full-time
paid firefighters, and (2) any city, village,
incorporated town or township of less than 5,000 inhabitants having a full-time
paid fire department which adopts the provisions of this article
pursuant to the provisions of Section 4-141. The term "city council" or
"board of trustees" includes
the board of trustees of a fire protection district and the board of town
trustees or other persons empowered to
draft the tentative budget and appropriation ordinance and the electors of
such a township acting at the annual or special meeting of town
electors.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-104) (from Ch. 108 1/2, par. 4-104)
Sec. 4-104.
Firemen's pension fund act of 1919.
"Firemen's pension fund act of 1919": "An Act to create a firemen's
pension fund in cities, incorporated towns, villages, townships and fire
protection districts having a population of not less than 5,000 nor more
than 200,000 inhabitants", filed July 11, 1919, as amended. That Act was
repealed in 1963.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-105) (from Ch. 108 1/2, par. 4-105)
Sec. 4-105.
Board.
"Board": The "Board of Trustees of the Firefighters' Pension
Fund" of a
municipality as established in Section 4-121.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-105a) (from Ch. 108 1/2, par. 4-105a)
Sec. 4-105a.
Deferred Pensioner.
"Deferred pensioner": a firefighter
who has retired having accumulated enough creditable service
to qualify for a pension under this Article but who has not attained
the required age for commencement of the pension.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-105b) (from Ch. 108 1/2, par. 4-105b)
Sec. 4-105b.
Permanent Disability.
"Permanent disability": any physical
or mental disability that (1) can be expected
to result in death, (2) has lasted for a continuous period of
not less than 12 months, or (3) can be expected to last for
a continuous period of not less than 12 months.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-105c)
Sec. 4-105c.
Participant.
"Participant": A firefighter or deferred
pensioner of a pension fund, or a beneficiary of the pension fund.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/4-105d)
Sec. 4-105d.
Beneficiary.
"Beneficiary": A person receiving benefits from
a pension fund, including, but not limited to, retired pensioners, disabled
pensioners, their surviving spouses, minor children, disabled children, and
dependent parents.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)
Sec. 4-106.
Firefighter, firefighters.
"Firefighter, firefighters":
(a) In municipalities which have adopted Division 1 of Article 10 of the
Illinois Municipal Code, any person employed in the municipality's fire service
as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician
or scuba diver; and in any of these positions where such person's duties also
include those of a firefighter as classified by the Civil Service Commission of
that city, and whose duty is to participate in the work of controlling and
extinguishing fires at the location of any such fires.
(b) In municipalities which are subject to Division 2.1 of Article 10 of the
Illinois Municipal Code, any person employed by a city in its fire service as a
firefighter, fire engineer, marine engineer, fire pilot, bomb technician, or
scuba diver; and, in any of these positions whose duties also include those of
a firefighter and are certified in the same manner as a firefighter in that
city.
(c) In municipalities which are subject to neither Division 1 nor Division
2.1 of Article 10 of the Illinois Municipal Code, any person who would have
been included as a firefighter under sub-paragraph (a) or (b) above except that
he served as a de facto and not as a de jure firefighter.
(d) Notwithstanding the other provisions of this Section, "firefighter"
does not include any person who is actively participating in the State
Universities Retirement System under subsection (h) of Section 15-107 with
respect to the employment for which he or she is a participating employee in
that System.
(e) This amendatory Act of 1977 does not affect persons covered
by this Article prior to September 22, 1977.
(Source: P.A. 90-576, eff. 3-31-98.)
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(40 ILCS 5/4-106a) (from Ch. 108 1/2, par. 4-106a)
Sec. 4-106a.
Gender.
The masculine gender wherever used in this Article
includes the female gender unless manifestly inconsistent with the context.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-106.1) (from Ch. 108 1/2, par. 4-106.1)
Sec. 4-106.1. Discontinuation of fire protection district; annexation
to fire protection district; dissolution and reestablishment of inactive firefighters' pension funds. (a) Whenever a fire protection district which has established
a pension fund under this Article is discontinued under the Fire Protection District Act, and the municipality assuming
the obligations of the district is required to and has established
a Firefighters' Pension Fund under this Article, the assets of the fund
established by the district shall be transferred to the Board of Trustees
of the Firefighters' Pension Fund of the municipality. The Firefighters'
Pension Fund of the municipality shall assume all accrued liabilities of
the district's pension fund, and all accrued rights, benefits and future
expectancies of the members, retired employees and beneficiaries of the
district's fund shall remain unimpaired.
(b) If a municipal fire department for which a pension fund has been
established under this Article is discontinued and the affected territory
is annexed by a fire protection district, and the fire protection district
is required to and has established a firefighters' pension fund under this
Article, then the assets of the firefighters' pension fund established by the
municipality shall be transferred to the board of trustees of the pension fund
of the fire protection district. The firefighters' pension fund of the fire
protection district shall assume all liabilities of the municipality's
firefighters' pension fund, and all of the accrued rights, benefits, and
future expectancies of the members, retired employees, and beneficiaries of
the municipality's firefighters' pension fund shall remain unimpaired.
(c) The corporate authorities of a municipality for which a pension fund has been established under this Article may, by resolution or ordinance, dissolve the fund if an independent auditor has certified to the authorities that the fund has no liabilities, participants, or beneficiaries entitled to benefits, and the authorities shall reestablish the fund if a firefighter of the municipality seeks to establish service credit in the fund or if reestablishment of the fund is required upon a former firefighter's reinstatement of creditable service under subsection (g) of Section 4-109.3 of this Code. The Public Pension Division of the Department of Insurance shall adopt rules regarding the process and procedures for (i) dissolving a pension fund under this Section and (ii) redistributing assets and reestablishing the fund if reestablishment of the fund is necessary.(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/4-107) (from Ch. 108 1/2, par. 4-107)
Sec. 4-107.
Qualifications.
(a) A firefighter who has not contributed to the fund during the entire
period of service, to be entitled to the benefits of this Article, must
contribute to the fund the amount he or she would have paid had deductions
been made from his or her salary during the entire period of his or her
creditable service.
(b) Any person appointed as a firefighter in a municipality shall, within
3 months after receiving his or her first appointment and within 3 months
after any reappointment make written application to the board to come under
the provisions of this Article.
(c) A person otherwise qualified to participate who was excluded from
participation by reason of the age or fitness requirements removed by this
amendatory Act of 1995 may elect to participate by making a written application
to the Board before July 1, 1996. Persons so electing shall begin
participation on the first day of the month following the month in which the
application is received by the Board. These persons may also elect to
establish creditable service for periods of employment as a firefighter during
which they did not participate by paying into the pension fund, before January
1, 1997, the amount that the person would have contributed had deductions from
salary been made for this purpose at the time the service was rendered,
together with interest thereon at 6% per annum, compounded annually, from the
time the service was rendered until the date of payment.
(d) A person described in subsection (h) of Section 15-107 shall not
participate in any pension fund established under this Article with respect
to employment for which he or she is a participating employee in the State
Universities Retirement System.
(Source: P.A. 89-52, eff. 6-30-95; 90-576, eff. 3-31-98.)
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(40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
Sec. 4-108. Creditable service.
(a) Creditable service is the time served as a firefighter of a
municipality. In computing creditable service, furloughs and leaves of
absence without pay exceeding 30 days in any one year shall not be counted,
but leaves of absence for illness or accident regardless of length, and
periods of disability for which a firefighter received no disability
pension payments under this Article, shall be counted.
(b) Furloughs and leaves of absence of 30 days or less in any one year may
be counted as creditable service, if the firefighter makes the contribution
to the fund that would have been required had he or she not been
on furlough or leave of absence. To qualify for this creditable service,
the firefighter must pay the required contributions to the fund not more
than 90 days subsequent to the termination of the furlough or leave of
absence, to the extent that the municipality has not made such contribution
on his or her behalf.
(c) Creditable service includes:
(1) Service in the military, naval or air forces of | ||
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(1.5) Up to 24 months of service in the military, | ||
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(2) Service prior to July 1, 1976 by a firefighter | ||
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(3) Up to 8 years of service by a firefighter as an | ||
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(4) Time spent as an on-call fireman for a | ||
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Except as provided in Section 4-108.5, creditable | ||
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(5) Time served between July 1, 1976 and July 1, 1988 | ||
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(6) Service before becoming a participant by a | ||
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(7) Up to 3 years of time during which the | ||
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(8) Up to 6 years of service as a police officer and | ||
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(9) Up to 8 years of service as a police officer and | ||
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(Source: P.A. 102-63, eff. 7-9-21; 103-426, eff. 8-4-23.)
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(40 ILCS 5/4-108.1) (from Ch. 108 1/2, par. 4-108.1)
Sec. 4-108.1.
Transfer of creditable service to General Assembly Retirement
System. (a) Any active member of the General Assembly Retirement System
may apply for transfer of credits and creditable service accumulated
in any firefighter's pension fund under this Article to
the General Assembly Retirement System. Such transfer shall be made
forthwith. Payment
by the firefighters' pension fund to the General Assembly
Retirement System shall be made at the same time and shall consist of:
(1) the amounts credited to the
applicant through employee contributions; and
(2) municipality contributions equal to the accumulated employee contributions
as determined under (1) above. Participation in the firefighters'
pension fund shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service and
creditable service terminated upon receipt of a refund, by payment
to the firefighters' pension fund of the amount of the
refund with interest thereon at the rate
of 6% per year to the date of payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-108.2) (from Ch. 108 1/2, par. 4-108.2)
Sec. 4-108.2.
Transfer of creditable service to Article 8, 9 or 13
fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the
people who is a participant in a pension fund established under Article 9
of this Code, and any elected sanitary district commissioner who is a
participant in a pension fund established under Article 13 of this Code,
may apply for transfer of his credits and creditable service accumulated in
any firefighters' pension fund established under this Article to such
Article 8, 9 or 13 fund. Such transfer shall be made forthwith.
Payment by the firefighters' pension fund to the Article 8, 9 or 13
fund shall be made at the same time and shall consist of:
(1) the amounts credited to the applicant through | ||
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(2) municipality contributions equal to the | ||
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Participation in the firefighters' pension fund shall terminate on the
date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a refund, by payment to the firefighters'
pension fund of the amount of the refund with interest thereon at the rate
of 6% per year, compounded annually from the date of refund to the date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/4-108.3) (from Ch. 108 1/2, par. 4-108.3)
Sec. 4-108.3.
(a) Until July 1, 1989, any active member of the
Illinois Municipal Retirement Fund who is a county sheriff may apply for
transfer of up to 80 months of creditable service accumulated in any
pension fund established under this Article to the Illinois Municipal
Retirement Fund. Such creditable service shall be transferred only upon
payment by such pension fund to the Illinois Municipal Retirement Fund of
an amount equal to:
(1) the amounts accumulated to the credit of the applicant on the books
of the fund on the date of transfer; and
(2) employer contributions in an amount equal to the amount determined
under subparagraph (1); and
(3) any interest paid by the applicant in order to reinstate service.
Participation in such pension fund as to any credits transferred under
this Section shall terminate on the date of transfer.
(b) Until July 1, 1989, any such sheriff may reinstate creditable
service terminated upon receipt of a refund, by payment to the
firefighters' pension fund of the amount of the refund, with interest
thereon at the rate of 6% per year, compounded annually from the date of
refund to the date of payment.
(Source: P.A. 85-941.)
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(40 ILCS 5/4-108.4)
Sec. 4-108.4. Transfer of creditable service from Article 7 fund.
(a) Any firefighter who was excluded
from participation in an Article
4 fund because the firefighter earned credit for that service under Article 7 of this Code and who is a participant in the Illinois
Municipal Retirement
Fund may become an active participant in that firefighter pension fund by
making a
written application to the Board. Persons so applying
shall begin
participation on the first day of the month following the month in which the
application is
received by the Board. An employee who makes application for
participation
shall not be deemed ineligible to participate in the firefighter pension fund
by reason of
having failed to apply within the 3-month period specified in subsection (b) of
Section 4-107.
(b) A firefighter who was excluded
from participation in an Article
4 fund because the firefighter earned credit for that service under Article 7 of this Code and who is a participant in the Illinois Municipal Retirement
Fund may also elect to establish creditable service for
those periods of employment as a firefighter during which he or she was excluded from
participation in an
Article 4 fund by paying into the fund the amount that
the person
would have contributed had deductions from salary been made for this purpose at
the time the service was rendered, together with interest thereon at 6% per
annum, compounded annually, from the time the service was rendered until the
date of payment, less any amounts transferred from the Illinois Municipal
Retirement Fund under Section 7-139.10.
(c) In no event shall pension credit for the same service rendered by an
employee be accredited in more than one pension fund or retirement system under this Code. If an employee applies for service credit under subsection (b), then any creditable
service time accumulated in the Illinois Municipal Retirement Fund for the same
period must be transferred to the Article 4 fund under Section 7-139.10.
(Source: P.A. 93-689, eff. 7-1-04.) |
(40 ILCS 5/4-108.5) Sec. 4-108.5. Service for providing certain fire protection services.
(a) A firefighter for a participating municipality who was employed as an active firefighter providing fire protection for a village or incorporated town with a population of greater than 10,000 but less than 11,000 located in a county with a population of greater than 600,000 and less than 700,000, as estimated by the United States Census on July 1, 2004, may elect to establish creditable service for periods of that employment in which the firefighter provided fire protection services for the participating municipality if, by May 1, 2007, the firefighter (i) makes written application to the Board and (ii) pays into the pension fund the amount that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, plus interest thereon at 6% per annum compounded annually from the time the service was rendered until the date of payment. (b) Time spent providing fire protection on a part-time basis for a village or incorporated town with a population of greater than 10,000 but less than 11,000 located in a county with a population of greater than 600,000 and less than 700,000, as estimated by the United States Census on July 1, 2004, shall be calculated at the rate of one year of creditable service for each 5 years of time spent providing such fire protection, if the firefighter (i) has at least 5 years of creditable service as an active firefighter, (ii) has at least 5 years of such service with a qualifying village or incorporated town, (iii) applies for the creditable service within 30 days after the effective date of this amendatory Act of the 94th General Assembly, and (iv) contributes to the Fund an amount representing employee contributions for the number of years of creditable service granted under this subsection (b) based on the salary and contribution rate in effect for the firefighter at the date of entry into the fund, as determined by the Board. The amount of creditable service granted under this subsection (b) may not exceed 3 years.
(c) This subsection applies only to a person who was first employed by a municipality in 2008 to provide fire protection services on a full-time basis as a firefighter or fire chief, but was prevented from
participating in a pension fund under this Article until 2015 by reason of the employing municipality's delay in establishing a pension fund as required under this Article. Such a person may elect to
establish creditable service for periods of such employment by that municipality during
which he or she did not participate, by applying to the board in writing and paying to the pension fund the employee contributions that he or she would have made had deductions from
salary been made for employee contributions at the time the service was rendered,
together with interest thereon at the rate of 6% per annum, compounded annually, from the
time the service was rendered to the date of payment; except that the granting of such creditable service is contingent upon the consent of the governing body of the municipality and payment to the pension fund by the municipality of the corresponding employer contributions, plus interest. For the purposes of Sections 4-109, 4-109.1, and 4-114, and notwithstanding any other provision of this Article, for a person who establishes creditable service under this subsection (c), the date upon which the person first became a participating firefighter under this Article shall be deemed to be no later than the first day of employment for which such creditable service has been granted. (Source: P.A. 100-539, eff. 11-7-17.) |
(40 ILCS 5/4-108.6) Sec. 4-108.6. Transfer of creditable service to the Firemen's Annuity and Benefit Fund of Chicago. (a) Until 6 months after the effective date of this amendatory Act of the 100th General Assembly, any active member of the Firemen's Annuity and Benefit Fund of Chicago may apply for transfer of up to 10 years of creditable service accumulated in any pension fund established under this Article to the Firemen's Annuity and Benefit Fund of Chicago. Such creditable service shall be transferred only upon payment by such pension fund to the Firemen's Annuity and Benefit Fund of Chicago of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in such pension fund as to any credits transferred under this Section shall terminate on the date of transfer. (b) An active member of the Firemen's Annuity and Benefit Fund of Chicago applying for a transfer of creditable service under subsection (a) may reinstate credits and creditable service terminated upon receipt of a refund by payment to the Firemen's Annuity and Benefit Fund of Chicago of the amount of the refund with interest thereon at the actuarially assumed rate, compounded annually, from the date of the refund to the date of payment.
(Source: P.A. 100-544, eff. 11-8-17.) |
(40 ILCS 5/4-108.7) Sec. 4-108.7. Transfer of creditable service from the Firemen's Annuity and Benefit Fund of Chicago. Until 6 months after the effective date of this amendatory Act of the 101st General Assembly, any active participant in a fund established under this Article may transfer to that fund creditable service accumulated under Article 6 of this Code upon payment to the Article 4 fund, within 5 years after the date of application, of an amount equal to the difference between the amount of employee and employer contributions transferred to the Article 4 fund under Section 6-227.1 and the amounts determined by the Article 4 fund in accordance with this Section, plus interest on that difference at the actuarially assumed rate, compounded annually, from the date of service to the date of payment. The Article 4 fund must determine the firefighter's payment required to establish creditable service under this Section by taking into account the appropriate actuarial assumptions, including without limitation the firefighter's service, age, and salary history; the level of funding of the Article 4 fund; and any other factors that the Article 4 fund determines to be relevant. For this purpose, the firefighter's required payment should result in no significant increase to the Article 4 fund's unfunded actuarial accrued liability determined as of the most recent actuarial valuation, based on the same assumptions and methods used to develop and report the Article 4 fund's actuarial accrued liability and actuarial value of assets under Statement No. 25 of Governmental Accounting Standards Board or any subsequent applicable Statement.
(Source: P.A. 101-474, eff. 8-23-19.) |
(40 ILCS 5/4-108.8) Sec. 4-108.8. Transfer of creditable service to the State Employees' Retirement System. (a) Any active member of the State Employees' Retirement System who is an arson investigator, investigator for the Department of Revenue, investigator for the Illinois Gaming Board, or investigator for the Secretary of State may apply for transfer of some or all of his or her credits and creditable service accumulated in any firefighters' pension fund under this Article to the State Employees' Retirement System in accordance with Section 14-110. The creditable service shall be transferred only upon payment by the firefighters' pension fund to the State Employees' Retirement System of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in the firefighters' pension fund with respect to the service to be transferred shall terminate on the date of transfer. (b) Any person applying to transfer service under this Section may reinstate service that was terminated by receipt of a refund, by paying to the firefighters' pension fund the amount of the refund with interest thereon at the actuarially assumed rate of interest, compounded annually, from the date of refund to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-856, eff. 1-1-23.) |
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of creditable
service, who is no longer in service as a firefighter, shall receive a monthly
pension of 1/2 the monthly salary attached to the rank held by him or her in
the fire service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of such
monthly salary for each additional month over 20 years of service through 30
years of service, to a maximum of 75% of such monthly salary.
The changes made to this subsection (a) by this amendatory Act of the
91st General Assembly apply to all pensions that become payable under this
subsection on or after January 1, 1999. All pensions payable under this
subsection that began on or after January 1, 1999 and before the effective date
of this amendatory Act shall be recalculated, and the amount of the increase
accruing for that period shall be payable to the pensioner in a lump sum.
(b) A firefighter who retires or is separated from service having at
least 10 but less than 20 years of creditable service, who is not entitled
to receive a disability pension, and who did not apply for a refund of
contributions at his or her last separation from service shall receive a
monthly pension upon attainment of age 60 based on the monthly salary attached
to his or her rank in the fire service on the date of retirement or separation
from service according to the following schedule:
For 10 years of service, 15% of salary; For 11 years of service, 17.6% of salary; For 12 years of service, 20.4% of salary; For 13 years of service, 23.4% of salary; For 14 years of service, 26.6% of salary; For 15 years of service, 30% of salary; For 16 years of service, 33.6% of salary; For 17 years of service, 37.4% of salary; For 18 years of service, 41.4% of salary; For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who first
becomes a firefighter under this Article on or after January 1, 2011. A firefighter age 55 or more who has 10 or more years of service in that capacity shall be entitled at his option to receive a monthly pension for his service as a firefighter computed by multiplying 2.5% for each year of such service by his or her final average salary. The pension of a firefighter who is retiring after attaining age 50 with 10 or more years of creditable service shall be reduced by one-half of 1% for each month that the firefighter's age is under age 55. The maximum pension under this subsection (c) shall be 75%
of final average salary. For the purposes of this subsection (c), "final average salary" means the greater of: (i) the average monthly salary obtained by dividing the total salary of the firefighter during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period; or (ii) the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual salary
based on the plan year of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. Nothing in this amendatory Act of the 101st General Assembly shall cause or otherwise result in any retroactive adjustment of any employee contributions. (Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly pension of a
firefighter who retires after July 1, 1971 and prior to January 1, 1986, shall,
upon either the first of the month following the first anniversary of the date
of retirement if 60 years of age or over at retirement date, or upon the first
day of the month following attainment of age 60 if it occurs after the first
anniversary of retirement, be increased by 2% of the originally granted monthly
pension and by an additional 2% in each January thereafter. Effective January
1976, the rate of the annual increase shall be 3% of the originally granted
monthly pension.
(b) The monthly pension of a firefighter who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased, in January of the year
following the year of attaining age 65 or in January
1972, if then over age 65, by 2% of the originally granted monthly
pension, for each year the firefighter received pension payments.
In each January thereafter, he or she shall receive an additional
increase of 2% of the original monthly pension. Effective
January 1976, the rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving
a disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each
year he or she received pension payments.
In each January thereafter, the firefighter shall receive an additional
increase of 2% of the original monthly pension. Effective January 1976,
the rate of the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit payable on that
date under Section 4-110 or 4-110.1 shall be increased by an amount equal to
1/12 of 3% of the amount of the benefit, multiplied by the number of months for
which the benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or 4-110.1 shall be
increased by 3% of the amount of the benefit then being paid, including any
previous increases received under this Article. These increases are not
subject to any limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on behalf of a minor
or disabled surviving child that is payable on that date under Section 4-114
shall be increased by an amount equal to 1/12 of 3% of the amount of the
pension, multiplied by the number of months for which the benefit has been
payable. On July 1, 2005, July 1, 2006, July 1, 2007, and July 1, 2008, every pension payable to or on behalf
of a minor or disabled surviving child that is payable under Section 4-114
shall be increased by 3% of the amount of the pension then being paid,
including any previous increases received under this Article. These increases
are not subject to any limitation on the maximum benefit amount included in
Section 4-114.
(d) The monthly pension of a firefighter who retires after January 1,
1986, shall, upon either the first of the month following the first
anniversary of the date of retirement if 55 years of age or over, or
upon the first day of the month following attainment of
age 55 if it occurs after the first anniversary of retirement, be increased
by 1/12 of 3% of the originally granted monthly pension for each full
month that has elapsed since the pension began, and by an
additional 3% in each January thereafter.
The changes made to this subsection (d) by this amendatory Act of the 91st
General Assembly apply to all initial increases that become payable under this
subsection on or after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and before the
effective date of this amendatory Act shall be recalculated and the additional
amount accruing for that period, if any, shall be payable to the pensioner in a
lump sum.
(e) Notwithstanding the provisions of subsection (a), upon the
first day of the month following (1) the first anniversary of the date of
retirement, or (2) the attainment of age 55, or (3) July 1, 1987, whichever
occurs latest, the monthly pension of a firefighter who retired on or after
January 1, 1977 and on or before January 1, 1986 and did not receive an
increase under subsection (a) before July 1, 1987,
shall be increased by 3% of the originally granted monthly pension for
each full year that has elapsed since the pension began, and by an
additional 3% in each January thereafter. The increases provided under
this subsection are in lieu of the increases provided in subsection (a).
(f) In July 2009, the monthly pension of a
firefighter who retired before July 1, 1977 shall be recalculated and increased to reflect the amount that the firefighter would have received in July 2009 had the firefighter been receiving a 3% compounded increase for each year he or she received pension payments after January 1, 1986, plus any increases in pension received for each year prior to January 1, 1986. In each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid. The changes made to this Section by this amendatory Act of the 96th General Assembly apply without regard to whether the firefighter was in service on or after its effective date. (g) Notwithstanding any other provision of this Article, the monthly pension of a
person who first becomes a firefighter under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted pension. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the pension shall not be increased. For the purposes of this subsection (g), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds. (Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
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(40 ILCS 5/4-109.2) (from Ch. 108 1/2, par. 4-109.2)
Sec. 4-109.2. Minimum pension.
(a) Beginning January 1, 1984, the minimum
disability pension granted under Section 4-110 or 4-111, the minimum
surviving spouse's pension, and the minimum retirement pension
granted to a firefighter with 20 or more years of creditable service,
shall be $300 per month, without regard to whether the death, disability
or retirement of the firefighter occurred prior to that date.
Beginning July 1, 1987, the minimum retirement pension payable to a
firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110 or 4-111, and the minimum
surviving spouse's pension shall be $400 per month, without regard to
whether the death, retirement or disability of the firefighter occurred
prior to that date.
Beginning July 1, 1993, the minimum retirement pension payable to a
firefighter with 20 or more years of creditable service and the minimum
surviving spouse's pension shall be $475 per month, without regard to
whether the firefighter was in service on or after the effective date of
this amendatory Act of 1993.
(b) Beginning January 1, 1999, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $600 per month, without regard to
whether the firefighter was in service on or after the effective date of this
amendatory Act of the 91st General Assembly.
In the case of a pensioner whose pension began before the effective date
of this amendatory Act and is subject to increase under this subsection (b),
the pensioner shall be entitled to a lump sum payment of the amount of that
increase accruing from January 1, 1999 (or the date the pension began, if
later) to the effective date of this amendatory Act.
(c) Beginning January 1, 2000, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $800 per month, without regard to
whether the firefighter was in service on or after the effective date of this
amendatory Act of the 91st General Assembly.
(d) Beginning January 1, 2001, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $1000 per month, without regard to
whether the firefighter was in service on or after the effective date of this
amendatory Act of the 91st General Assembly.
(e) Beginning July 1, 2004, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $1030 per month, without regard to
whether the firefighter was in service on or after the effective date of this
amendatory Act of the 93rd General Assembly.
(f) Beginning July 1, 2005, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $1060.90 per month, without regard
to whether the firefighter was in service on or after the effective date of
this amendatory Act of the 93rd General Assembly.
(g) Beginning July 1, 2006, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $1092.73 per month, without regard
to whether the firefighter was in service on or after the effective date of
this amendatory Act of the 93rd General Assembly.
(h) Beginning July 1, 2007, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $1125.51 per month, without regard
to whether the firefighter was in service on or after the effective date of
this amendatory Act of the 93rd General Assembly.
(i) Beginning July 1, 2008, the minimum retirement pension payable
to a firefighter with 20 or more years of creditable service, the minimum
disability pension payable under Section 4-110, 4-110.1, or 4-111, and the
minimum surviving spouse's pension shall be $1159.27 per month, without regard
to whether the firefighter was in service on or after the effective date of
this amendatory Act of the 93rd General Assembly.
(Source: P.A. 93-689, eff. 7-1-04.)
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(40 ILCS 5/4-109.3)
Sec. 4-109.3. Employee creditable service. (a) As used in this Section:
"Final monthly salary" means the monthly salary attached to the rank held by
the firefighter at the time of his or her last withdrawal from service under a
particular pension fund.
"Last pension fund" means the pension fund in which the firefighter was
participating at the time of his or her last withdrawal from service.
(b) The benefits provided under this Section are available only to a
firefighter who:
(1) is a firefighter at the time of withdrawal from | ||
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(2) has established service credit with at least one | ||
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(3) has a total of at least 20 years of service under | ||
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(4) is in service on or after the effective date of | ||
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(c) A firefighter who is eligible for benefits under this Section may elect
to receive a retirement pension from each pension fund under this Article in
which the firefighter has at least one year of service credit but has not received a refund under Section 4-116 (unless the firefighter repays that refund under subsection (g)) or subsection (c) of Section 4-118.1, by applying in
writing and paying the contribution required under subsection (i).
(d) From each such pension fund other than the last pension fund, in lieu
of any retirement pension otherwise payable under this Article, a firefighter
to whom this Section applies may elect to receive a monthly pension of 1/12th
of 2.5% of his or her final monthly salary under that fund for each month of
service in that fund, subject to a maximum of 75% of that final monthly salary.
(e) From the last pension fund, in lieu of any retirement pension otherwise
payable under this Article, a firefighter to whom this Section applies may
elect to receive a monthly pension calculated as follows:
The last pension fund shall calculate the retirement pension that
would be payable to the firefighter under Section 4-109 as if he
or she had
participated in that last pension fund during his or her entire period of
service under all pension funds established under this Article (excluding any period of service for which the firefighter has received a refund under Section 4-116, unless the firefighter repays that refund under subsection (g), or for which the firefighter has received a refund under subsection (c) of Section 4-118.1).
From this hypothetical pension there shall be subtracted the original amounts
of the retirement pensions payable to the firefighter by all other pension
funds under subsection (d). The remainder is the retirement pension payable
to the firefighter by the last pension fund under this subsection (e).
(f) Pensions elected under this Section shall be subject to increases as
provided in Section 4-109.1.
(g) A current firefighter may reinstate creditable service in a
pension fund established under this Article that was terminated upon receipt of
a refund, by payment to that pension fund of the amount of the refund together
with interest thereon at the rate of 6% per year, compounded annually, from the
date of the refund to the date of payment. A repayment of a refund under this
Section may be made in equal installments over a period of up to 10 years, but
must be paid in full prior to retirement.
(h) As a condition of being eligible for the benefits provided in this Section, a person who is hired to a position as a firefighter on or after July 1, 2004 must, within 21 months after being hired, notify
the new employer, all of his or her previous employers under this Article, and
the Public Pension Division of the Department of Insurance of his or her intent to receive the benefits provided under this Section.
As a condition of being eligible for the benefits provided in this Section, a person who first becomes a firefighter under this Article after December 31, 2010 must (1) within 21 months after being hired or within 21 months after the effective date of this amendatory Act of the 102nd General Assembly, whichever is later, notify the new employer, all of his or her previous employers under this Article, and the Public Pension Division of the Department of Insurance of his or her intent to receive the benefits provided under this Section; and (2) make the required contributions with applicable interest. A person who first becomes a firefighter under this Article after December 31, 2010 and who, before the effective date of this amendatory Act of the 102nd General Assembly, notified the new employer, all of his or her previous employers under this Article, and the Public Pension Division of the Department of Insurance of his or her intent to receive the benefits provided under this Section shall be deemed to have met the notice requirement under item (1) of the preceding sentence. The changes made to this Section by this amendatory Act of the 102nd General Assembly apply retroactively, notwithstanding Section 1-103.1. (i) In order to receive a pension under this Section or an occupational disease disability pension for which he or she becomes eligible due to the application of subsection (m) of this Section, a firefighter must
pay to each pension fund from which he or she has elected to receive a pension under this Section a contribution equal to 1% of
monthly salary for each month of service credit that the firefighter has in
that fund (other than service credit for which the firefighter has already
paid the additional contribution required under subsection (c) of Section
4-118.1), together with interest thereon at the rate of 6% per annum, compounded
annually, from the firefighter's first day of employment with that fund or the first day of the fiscal year of that fund that immediately precedes the firefighter's first day of employment with that fund, whichever is earlier. In order for a firefighter who, as of the effective date of this amendatory Act of the 93rd General Assembly, has not begun to receive a pension under this Section or an occupational disease disability pension under subsection (m) of this Section and who has contributed 1/12th of 1% of monthly salary for each month of service credit that the firefighter has in
that fund (other than service credit for which the firefighter has already
paid the additional contribution required under subsection (c) of Section
4-118.1), together with the required interest thereon, to receive a pension under this Section or an occupational disease disability pension for which he or she becomes eligible due to the application of subsection (m) of this Section, the firefighter must, within one year after the effective date of this amendatory Act of the 93rd General Assembly, make an additional contribution equal to 11/12ths of 1% of
monthly salary for each month of service credit that the firefighter has in
that fund (other than service credit for which the firefighter has already
paid the additional contribution required under subsection (c) of Section
4-118.1), together with interest thereon at the rate of 6% per annum, compounded
annually, from the firefighter's first day of employment with that fund or the first day of the fiscal year of that fund that immediately precedes the firefighter's first day of employment with the fund, whichever is earlier. A firefighter who, as of the effective date of this amendatory Act of the 93rd General Assembly, has not begun to receive a pension under this Section or an occupational disease disability pension under subsection (m) of this Section and who has contributed 1/12th of 1% of monthly salary for each month of service credit that the firefighter has in
that fund (other than service credit for which the firefighter has already
paid the additional contribution required under subsection (c) of Section
4-118.1), together with the required interest thereon, in order to receive a pension under this Section or an occupational disease disability pension under subsection (m) of this Section, may elect, within one year after the effective date of this amendatory Act of the 93rd General Assembly to forfeit the benefits provided under this Section and receive a refund of that contribution.
(j) A retired firefighter who is receiving pension payments under Section 4-109 may reenter active service under this Article. Subject to the provisions of Section 4-117, the firefighter may receive credit for service performed after the reentry if the firefighter (1) applies to receive credit for that service, (2) suspends his or her pensions under this Section,
and (3) makes the contributions required under subsection (i).
(k) A firefighter who is newly hired or promoted to a position as a
firefighter shall not be denied participation in a fund under this Article
based on his or her age. (l) If a firefighter who elects to make contributions under subsection (c) of Section 4-118.1 for the pension benefits provided under this Section becomes entitled to a disability pension under Section 4-110, the last pension fund is responsible to pay that disability pension and the amount of that disability pension shall be based only on the firefighter's service with the last pension fund. (m) Notwithstanding any provision in Section 4-110.1 to the contrary, if a firefighter who elects to make contributions under subsection (c) of Section 4-118.1 for the pension benefits provided under this Section becomes entitled to an occupational disease disability pension under Section 4-110.1, each pension fund to which the firefighter has made contributions under subsection (c) of Section 4-118.1 must pay a portion of that occupational disease disability pension equal to the proportion that the firefighter's service credit with that pension fund for which the contributions under subsection (c) of Section 4-118.1 have been made bears to the firefighter's total service credit with all of the pension funds for which the contributions under subsection (c) of Section 4-118.1 have been made. A firefighter who has made contributions under subsection (c) of Section 4-118.1 for at least 5 years of creditable service shall be deemed to have met the 5-year creditable service requirement under Section 4-110.1, regardless of whether the firefighter has 5 years of creditable service with the last pension fund. (n) If a firefighter who elects to make contributions under subsection (c) of Section 4-118.1 for the pension benefits provided under this Section becomes entitled to a disability pension under Section 4-111, the last pension fund is responsible to pay that disability pension, provided that the firefighter has at least 7 years of creditable service with the last pension fund.
In the event a firefighter began employment with a new employer as a result of an intergovernmental agreement that resulted in the elimination of the previous employer's fire department, the firefighter shall not be required to have 7 years of creditable service with the last pension fund to qualify for a disability pension under Section 4-111. Under this circumstance, a firefighter shall be required to have 7 years of total combined creditable service time to qualify for a disability pension under Section 4-111. The disability pension received pursuant to this Section shall be paid by the previous employer and new employer in proportion to the firefighter's years of service with each employer.
(Source: P.A. 102-81, eff. 7-9-21; 103-426, eff. 8-4-23.)
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(40 ILCS 5/4-110) (from Ch. 108 1/2, par. 4-110)
Sec. 4-110. Disability pension - Line of duty. If a firefighter, as the
result of sickness, accident or injury incurred in or resulting from the
performance of an act of duty or from the cumulative effects of acts of duty,
is found, pursuant to Section 4-112, to be physically or mentally permanently
disabled for service in the fire department, so as to render necessary his or
her being placed on disability pension, the firefighter shall be entitled to
a disability pension equal to the greater of (1) 65% of the monthly
salary attached to the rank held by him or her in the fire department at the
date he or she is removed from the municipality's fire department payroll or
(2) the retirement pension that the firefighter would be eligible to receive
if he or she retired (but not including any automatic annual increase in that
retirement pension). A firefighter shall be considered "on duty" while on
any assignment approved by the chief of the fire department, even though away
from the municipality he or she serves as a firefighter, if the assignment
is related to the fire protection service of the municipality.
Such firefighter shall also be entitled to a child's disability benefit
of $20 a month on account of each unmarried child less than 18 years of age and
dependent upon the firefighter for support, either the issue of the firefighter
or legally adopted by him or her. The total amount of child's disability
benefit payable to the firefighter, when added to his or her disability
pension, shall not exceed 75% of the amount of salary which the
firefighter was receiving at the date of retirement.
Benefits payable on account of a child under this Section shall not
be reduced or terminated by reason of the child's attainment
of age 18 if he or she is then dependent by reason of a physical or mental
disability but shall continue to be paid as long as such dependency continues.
Individuals over the age of 18 and adjudged to be disabled persons pursuant to
Article XIa of the Probate Act of 1975, except for persons receiving benefits
under Article III of the Illinois Public Aid Code, shall be eligible to receive
benefits under this Act.
If a firefighter dies while still disabled and receiving a disability pension
under this Section, the disability pension shall continue to be paid to the
firefighter's survivors in the sequence provided in Section 4-114. A pension previously granted
under Section 4-114 to a survivor of a firefighter who died while receiving a
disability pension under this Section shall be deemed to be a continuation
of the pension provided under this Section and shall be deemed to be
in the nature of worker's compensation payments. The changes to this Section
made by this amendatory Act of 1995 are intended to be retroactive and are not
limited to persons in service on or after its effective date.
(Source: P.A. 93-1090, eff. 3-11-05.)
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(40 ILCS 5/4-110.1) (from Ch. 108 1/2, par. 4-110.1)
Sec. 4-110.1. Occupational disease disability pension.
The General Assembly finds that service in the fire department requires
firefighters in times of stress and danger to perform unusual tasks; that
firefighters are subject to exposure to extreme heat or extreme cold in certain
seasons while performing their duties; that they are required to work in the
midst of and are subject to heavy smoke fumes, and carcinogenic, poisonous,
toxic or chemical gases from fires; and that these conditions exist and
arise out of or in the course of employment.
An active firefighter with 5 or more years of creditable service who is
found, pursuant to Section 4-112, unable to perform his or her duties in the
fire department by reason of heart disease, stroke, tuberculosis, or
any disease of the lungs or respiratory tract, resulting from service as a
firefighter, is entitled to an occupational disease disability pension during
any period of such disability for which he or she has no right to receive
salary.
Any active firefighter who has completed 5 or more years
of service and is unable to perform his or her duties in the fire department
by reason of a disabling cancer, which develops or manifests itself during
a period while the firefighter is in the service of the fire department,
shall be entitled to receive an occupational disease disability benefit
during any period of such disability for which he or she does not have a
right to receive salary. In order to receive this occupational disease
disability benefit, (i) the type of cancer involved must be a type which
may be caused by exposure to heat, radiation or a known carcinogen as defined
by the International Agency for Research on Cancer and (ii) the cancer
must (and is rebuttably presumed to) arise as a result of service as a
firefighter.
A firefighter who enters the service after August 27, 1971 shall be
examined by one or more practicing physicians appointed by the board. If
the examination discloses impairment of the heart, lungs or respiratory
tract, or the existence of any cancer, the firefighter shall not be
entitled to the occupational disease disability pension unless and until a
subsequent examination reveals no such impairment or cancer.
The occupational disease disability pension shall be equal to the greater
of (1) 65% of the
salary attached to the rank held by the firefighter in the fire service at the
time of his or her removal from the municipality's fire department payroll or
(2) the retirement pension that the firefighter would be eligible to receive
if he or she retired (but not including any automatic annual increase in that
retirement pension).
The firefighter is also entitled to a child's disability benefit of $20 a
month for each natural or legally adopted unmarried child less than age 18
dependent upon the firefighter for support. The total child's disability
benefit when added to the occupational disease disability pension shall not
exceed 75% of the firefighter's salary at the time of the grant of occupational
disease disability pension.
The occupational disease disability pension is payable to the firefighter
during the period of the disability. If the disability ceases before the
death of the firefighter, the disability pension payable under this Section
shall also cease and the firefighter thereafter shall receive such pension
benefits as are provided in accordance with other provisions of this Article.
If a firefighter dies while still disabled and receiving a disability
pension under this Section, the disability pension shall continue to be paid to
the firefighter's survivors in the sequence provided in Section 4-114. A pension previously granted under
Section 4-114 to a survivor of a firefighter who died while receiving a
disability pension under this Section shall be deemed to be a continuation of
the pension provided under this Section and shall be deemed to be in the nature
of worker's occupational disease compensation payments. The changes to this
Section made by this amendatory Act of 1995 are intended to be retroactive and
are not limited to persons in service on or after its effective date.
The child's disability benefit shall terminate if the disability ceases
while the firefighter is alive or when the child or children attain
age 18 or marry, whichever event occurs first, except that benefits
payable on account of a child under this Section shall not be
reduced or terminated by reason of the child's attainment of age 18 if he
or she is then dependent by reason of a physical or mental disability
but shall continue to be paid as long as such dependency continues.
Individuals over the age of 18 and adjudged as a disabled person pursuant
to Article XIa of the Probate Act of 1975, except for persons receiving
benefits under Article III of the Illinois Public Aid Code, shall be
eligible to receive benefits under this Act.
(Source: P.A. 93-1090, eff. 3-11-05.)
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(40 ILCS 5/4-110.2) Sec. 4-110.2. Secondary employer injury and exposure reporting. The fire chief of a secondary employer, as described in Section 4-118, shall report any injury, illness, or exposure incurred by a secondary employee during his or her employment to the primary employer's pension fund and the Department of Insurance within 96 hours from the time of the occurrence. The reporting requirements shall be consistent with the recommendations found in Chapters 4, 13, and 14 of the NFPA 1500 Standard on Fire Department Occupational Safety, Health, and Wellness Program.
(Source: P.A. 101-522, eff. 8-23-19; 102-59, eff. 7-9-21.) |
(40 ILCS 5/4-111) (from Ch. 108 1/2, par. 4-111)
Sec. 4-111. Disability pension - Not in duty. A firefighter having at least 7 years of creditable
service who becomes
disabled as a result of any cause other than an act of duty, and who is
found, pursuant to Section 4-112,
to be physically or mentally permanently disabled so
as to render necessary his or her being placed on disability pension,
shall be granted a disability pension of 50% of the monthly salary attached
to the rank held by the firefighter in the fire service at
the date he or she is removed from the municipality's fire department payroll. If a firefighter dies while still disabled and receiving a disability pension under this Section, the disability pension shall continue to be paid to the firefighter's survivors in the sequence provided in Section 4-114 if that disability pension is greater than the survivors pension provided under subsection (a) of Section 4-114.
(Source: P.A. 93-1090, eff. 3-11-05.)
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(40 ILCS 5/4-112) (from Ch. 108 1/2, par. 4-112)
Sec. 4-112. Determination of disability; restoration to active service; disability cannot constitute cause for discharge. A disability pension shall not be paid until disability
has been established by the board by examinations
of the firefighter at pension fund expense by 3 physicians selected
by the board and such other evidence as the board deems
necessary. The 3 physicians selected by the board need not agree as to the existence of any disability or the nature and extent of a disability. Medical examination of a firefighter
receiving a disability pension shall be made at least once each year prior
to attainment of age 50 in order to verify continuance of disability, except that a medical examination of a firefighter receiving a disability pension for post-traumatic stress disorder (PTSD) related to his or her service as a firefighter shall not be made if: (1) the firefighter has attained age 45; (2) the firefighter has provided to the board documentation approving the discontinuance of the medical examination from at least 2 physicians; and (3) at least 4 members of the board have voted in the affirmative to allow the firefighter to discontinue the medical examination. No
examination shall be required after age 50. No physical or mental disability that constitutes, in whole or in part, the basis of an application for benefits under this Article may be used, in whole or in part, by any municipality or fire protection district employing firefighters, emergency medical technicians, or paramedics as cause for discharge.
Upon satisfactory proof to the board that a firefighter on the disability
pension has recovered from disability, the board shall
terminate the
disability pension.
The firefighter shall report to the marshal or chief
of the fire department, who shall thereupon
order immediate reinstatement into active service, and the municipality shall immediately return the firefighter to its payroll, in the same rank or grade held
at the date he or she was placed on disability pension. If the firefighter must file a civil action against the municipality to enforce his or her mandated return to payroll under this paragraph, then the firefighter is entitled to recovery of reasonable court costs and attorney's fees.
The firefighter shall be entitled to 10 days notice before
any hearing or meeting of the board at which the question of his or her
disability is to be considered, and shall have the right to be present
at any such hearing or meeting, and to be represented by counsel; however,
the board shall not have any obligation to provide such fireman with counsel.
(Source: P.A. 100-1097, eff. 8-26-18.)
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(40 ILCS 5/4-113) (from Ch. 108 1/2, par. 4-113)
Sec. 4-113.
Disability pension option.
(a) A firefighter who has not completed 20 years of
creditable service and is receiving a disability pension
under this Article whose
disability continues for a period which when added to his or her period
of active service equals 20 years may, if age 50 or over, elect to retire
from the fire service
by submitting written application to the board. A firefighter exercising
such option shall be entitled to continue to receive a retirement
pension equal in amount to the disability pension
he or she was entitled to as a disabled firefighter on the date
he or she was removed from the municipality's payroll
for disability. A firefighter electing to exercise such
option shall be entitled to the automatic increase in pension provided
under subsection (a) of Section 4-109.1.
(b) A firefighter who is receiving a
disability pension under this Article who has sufficient creditable service
to qualify for a retirement pension and is age 50 or more may
elect to permanently retire from the fire service at any time by submitting
written application to the board. The salary to be used in the determination
of such firefighter's pension shall be based on
the salary attached to the rank held by the firefighter in the
fire service at the date of the election to retire. All other
conditions in the computation of the pension
shall be based upon the provisions of Section 4-109 which were applicable
to the firefighter
while he or she was in active service as an employee. A firefighter
electing to exercise such option shall be entitled to the
automatic increase in pension provided under subsection (a) of Section 4-109.1.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-114) (from Ch. 108 1/2, par. 4-114)
Sec. 4-114. Pension to survivors. If a firefighter who is not receiving a
disability pension under Section 4-110 or 4-110.1 dies (1) as a result of any
illness or accident, or (2) from any cause while in receipt of a disability
pension under this Article, or (3) during retirement after 20 years service, or
(4) while vested for or in receipt of a pension payable under subsection (b)
of Section 4-109, or (5) while a deferred pensioner, having made all required
contributions, a pension shall be paid to his or her survivors, based on the
monthly salary attached to the firefighter's rank on the last day of service
in the fire department, as follows:
(a)(1) To the surviving spouse, a monthly pension of | ||
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(2) Beginning July 1, 2004, unless the amount | ||
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(3) If the pension paid on and after July 1, 2004 to | ||
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The pension to the surviving spouse shall terminate | ||
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The surviving spouse's pension shall be subject to | ||
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(b) Upon the death of the surviving spouse leaving | ||
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In a case where the deceased firefighter left one or | ||
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(c) If a deceased firefighter leaves no surviving | ||
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(d) The total pension provided under paragraphs (a), | ||
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The maximum pension limitations in this paragraph (d) | ||
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(e) If a firefighter leaves no eligible survivors | ||
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(f) (Blank).
(g) If a judgment of dissolution of marriage between | ||
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(h) Benefits payable on account of a child under this | ||
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(i) Beginning January 1, 2000, the pension of the | ||
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(j) Beginning July 1, 2004, the pension of the | ||
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Notwithstanding any other provision of this Article, if a person who first becomes a firefighter under this Article on or after January 1, 2011 and who is not receiving a
disability pension under Section 4-110 or 4-110.1 dies (1) as a result of any
illness or accident, (2) from any cause while in receipt of a disability
pension under this Article, (3) during retirement after 20 years service, (4) while vested for or in receipt of a pension payable under subsection (b)
of Section 4-109, or (5) while a deferred pensioner, having made all required
contributions, then a pension shall be paid to his or her survivors in an amount equal to the greater of (i) 54% of the firefighter's monthly salary at the date of death, or (ii) 66 2/3% of the firefighter's earned pension at the date of death, and, if there is a surviving spouse, 12% of such monthly salary shall be granted to the guardian of any minor child or children, including a child who has been conceived but not yet born, for each such child until attainment of age 18. Upon the death of the surviving spouse leaving one or more minor children, or upon the death of a firefighter leaving one or more minor children but no surviving spouse, a monthly pension of 20% of the monthly salary shall be granted to the duly appointed guardian of each such child for the support and maintenance of each such child until the child reaches age 18. The total pension provided under this paragraph shall not exceed 75% of the monthly salary of the deceased firefighter (1) when paid to the survivor of a firefighter who has attained 20 or more years of service credit and who receives or is eligible to receive a retirement pension under this Article, (2) when paid to the survivor of a firefighter who dies as a result of illness or accident, (3) when paid to the survivor of a firefighter who dies from any cause while in receipt of a disability pension under this Article, or (4) when paid to the survivor of a deferred pensioner. Nothing in this Section shall act to diminish the
survivor's benefits described in subsection (j) of this Section. Notwithstanding Section 1-103.1, the changes made to this subsection apply without regard to whether the deceased firefighter was in service on or after the effective date of this amendatory Act of the 101st General Assembly. Notwithstanding any other provision of this Article, the monthly
pension of a survivor of a person who first becomes a firefighter under this Article on or after January 1, 2011 shall be increased on the January 1 after attainment of age 60 by the recipient of the survivor's pension and
each January 1 thereafter by 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for the
12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's pension. If the annual unadjusted percentage change in
the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the survivor's pension shall not
be increased. For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds. (Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/4-114.1) (from Ch. 108 1/2, par. 4-114.1)
Sec. 4-114.1.
Pensions to survivors of male and female firefighters.
All provisions of this Article relating to pensions to a
surviving spouse, children or dependent parents of a firefighter
apply with equal force to the surviving spouse, minor
children and dependent parents of male and female firefighters without
any distinction whatsoever.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-114.2) (from Ch. 108 1/2, par. 4-114.2) Sec. 4-114.2. Reduction of disability and survivor's benefits for corresponding benefits payable under Workers' Compensation and Workers' Occupational Diseases Acts. (a) Whenever a person is entitled to a disability or survivor's benefit under this Article and to benefits under the Workers' Compensation Act or the Workers' Occupational Diseases Act for the same injury or disease, the benefits payable under this Article shall be reduced by an amount computed in accordance with subsection (b) of this Section. There shall be no reduction, however, for any of the following: payments for medical, surgical and hospital services, non-medical remedial care and treatment rendered in accordance with a religious method of healing recognized by the laws of this State and for artificial appliances; payments made for scheduled losses for the loss of or permanent and complete or permanent and partial loss of the use of any bodily member or the body taken as a whole under subdivision (d)2 or subsection (e) of Section 8 of the Workers' Compensation Act or Section 7 of the Workers' Occupational Diseases Act; payments made for statutorily prescribed losses under subdivision (d)2 of Section 8 of the Workers' Compensation Act or Section 7 of the Workers' Occupational Diseases Act; and that portion of the payments which is utilized to pay attorneys' fees and the costs of securing the workers' compensation benefits under either the Workers' Compensation Act or Workers' Occupational Diseases Act. (b) The reduction prescribed by this Section shall be computed as follows: (1) In the event that a person entitled to benefits | ||
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(2) If the benefits deductible under this Section are | ||
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(Source: P.A. 84-1039.) |
(40 ILCS 5/4-115) (from Ch. 108 1/2, par. 4-115)
Sec. 4-115.
Marriage after retirement.
(a) If a firefighter marries subsequent to the date of his
or her retirement with any
pension under this Article, and dies less than 12 months after the
marriage, a surviving spouse shall
receive no pension on the death of the
firefighter.
(b) Beginning January 1, 1989,
this Section shall no longer disqualify the surviving
spouse of a
firefighter who was married to such surviving spouse for at least 12 months
and died before November 18, 1985, from receiving a survivor's pension,
and any such surviving spouse who is otherwise eligible under Section 4-114
shall begin to receive a surviving spouse's pension on July 1, 1989.
(Source: P.A. 86-272.)
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(40 ILCS 5/4-115.1) (from Ch. 108 1/2, par. 4-115.1)
Sec. 4-115.1. Eligibility of children. Dependent benefits shall be paid to
each natural child of a deceased firefighter, and to each child legally adopted, until the child's attainment of age
18 or marriage, whichever occurs first, whether or not the death of the
firefighter occurred prior to November 21, 1975.
Benefits payable to or on account of a child under this Article shall not
be reduced or terminated by reason of the child's adoption by a third party
after the firefighter's death.
Benefits payable to or on account of a child under this Article shall not be reduced or terminated by reason of the child's
attainment of age 18 if he or she is then dependent by reason of a physical or
mental disability but shall continue to be paid as long as such dependency
continues. Individuals over the age of 18 and adjudged as a disabled person
pursuant to Article XIa of the Probate Act of 1975, except for persons
receiving benefits under Article III of the Illinois Public Aid Code, shall be
eligible to receive benefits under this Act.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/4-115.2) Sec. 4-115.2. Dependent beneficiaries; payment to trust. Any benefit to be received by or paid to a dependent beneficiary may be received by or paid to a trust established for such dependent beneficiary if the dependent beneficiary is living at the time such benefit would be received by or paid to such trust.
(Source: P.A. 97-41, eff. 6-28-11.) |
(40 ILCS 5/4-116) (from Ch. 108 1/2, par. 4-116)
Sec. 4-116.
Refund.
A firefighter with less than 20 years of service
who (1) resigns or is
discharged, or has been involuntarily laid off for other than
disciplinary reasons for more than 180 calendar days, and (2) has not
received any disability
pension payments, is entitled to a refund of his or her total contributions
during such service.
Any firefighter receiving a refund under this Section forfeits and
relinquishes all accrued rights in the Fund, including accumulated creditable service.
In the event of reemployment in the service, the firefighter shall, prior
to commencing service repay to the fund, to the extent that the municipality
has not made such contribution on his or her behalf, the amount of any refund which
he or she received upon resigning or being discharged. Upon repayment
of this refund, the firefighter shall receive credit for the previous
years of service for which
he or she had received the refund.
(Source: P.A. 84-1039.)
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(40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)
Sec. 4-117. Reentry into active service. (a) If a firefighter receiving
pension payments
reenters active service, pension payments shall be suspended while he
or she is in service. If the firefighter again retires or is discharged,
his or her monthly pension shall be resumed in the same amount as was paid
upon first retirement or discharge
unless he or she remained in active service 3 or more years after re-entry
in which case the monthly pension shall be based on the salary attached
to the firefighter's rank at the date of last retirement.
(b) If a deferred pensioner re-enters active service, and again retires
or is discharged from the fire service, his or her pension shall be based
on the salary attached to the rank held in the fire service at the date
of earlier retirement, unless the firefighter remains in active service
for 3 or more years after re-entry, in which case the monthly pension shall
be based on the salary attached to the firefighter's rank at the date of
last retirement.
(c) If a pensioner or deferred pensioner re-enters or is recalled
to active service and
is thereafter injured, and the injury
is not related to an injury for which he or she was previously receiving
a disability pension,
the 3-year service requirement shall not apply in order
for the firefighter to qualify for the increased pension based on
the rate of pay at the time of the
new injury.
(Source: P.A. 102-558, eff. 8-20-21.)
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(40 ILCS 5/4-117.1) (from Ch. 108 1/2, par. 4-117.1)
Sec. 4-117.1.
Deduction for group plans.
If a municipality sponsors
a group hospital and medical plan which includes retired firefighters and
their spouses, upon written request of a retired firefighter, deductions
shall be made from the pension payments of the firefighter in the amounts
which the firefighter is required to contribute toward the group plan in
order to obtain such coverage.
Whenever continued group insurance coverage is elected in accordance
with the provisions of Section 367f of the Illinois Insurance Code, as now
or hereafter amended, the total monthly premium for such continued group
insurance coverage or such portion thereof as is not paid by the
municipality shall, upon request of the person electing such continued
group insurance coverage, be deducted from the monthly pension otherwise
payable to such person pursuant to this Article, and shall be remitted by
the pension fund making such deduction to the insurance company or other
entity providing the group insurance coverage.
(Source: P.A. 84-866.)
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(40 ILCS 5/4-117.2) Sec. 4-117.2. Authority of the fund. The fund shall retain the exclusive authority to adjudicate and award disability benefits, retirement benefits, and survivor benefits under this Article and to issue refunds under this Article. The exclusive method of judicial review of any final administrative decision of the fund shall be made in accordance with Section 4-139. The Firefighters' Pension Investment Fund established under Article 22C of this Code shall not have the authority to control, alter, or modify, or the ability to review or intervene in, the proceedings or decisions of the fund as otherwise provided in this Section.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
Sec. 4-118. Financing.
(a) The city council or the board of trustees
of the municipality shall annually levy a tax upon all the taxable property
of the municipality at the rate on the dollar which will produce an amount
which, when added to the deductions from the salaries or wages of
firefighters and revenues available from other sources, will equal a sum
sufficient to meet the annual actuarial requirements of the pension fund,
as determined by an enrolled actuary employed by the Illinois Department of
Insurance or by an enrolled actuary retained by the pension fund or
municipality. For the purposes of this Section, the annual actuarial
requirements of the pension fund are equal to (1) the normal cost of the
pension fund, or 17.5% of the salaries and wages to be paid to firefighters
for the year involved, whichever is greater, plus (2) an annual amount
sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2040, as annually updated and determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. In making these determinations, the required minimum employer contribution shall be calculated each year as a level percentage of payroll over the years remaining up to and including fiscal year 2040 and shall be determined under the projected unit credit actuarial cost method. The amount
to be applied towards the amortization of the unfunded accrued liability in any
year shall not be less than the annual amount required to amortize the unfunded
accrued liability, including interest, as a level percentage of payroll over
the number of years remaining in the 40-year amortization period.
(a-2) A municipality that has established a pension fund under this Article and that employs a full-time firefighter, as defined in Section 4-106, shall be deemed a primary employer with respect to that full-time firefighter. Any municipality of 5,000 or more inhabitants that employs or enrolls a firefighter while that firefighter continues to earn service credit as a participant in a primary employer's pension fund under this Article shall be deemed a secondary employer and such employees shall be deemed to be secondary employee firefighters. To ensure that the primary employer's pension fund under this Article is aware of additional liabilities and risks to which firefighters are exposed when performing work as firefighters for secondary employers, a secondary employer shall annually prepare a report accounting for all hours worked by and wages and salaries paid to the secondary employee firefighters it receives services from or employs for each fiscal year in which such firefighters are employed and transmit a certified copy of that report to the primary employer's pension fund, the Department of Insurance, and the secondary employee firefighter no later than 30 days after the end of any fiscal year in which wages were paid to the secondary employee firefighters. Nothing in this Section shall be construed to allow a secondary employee to qualify for benefits or creditable service for employment as a firefighter for a secondary employer. (a-5) For purposes of determining the required employer contribution to a pension fund, the value of the pension fund's assets shall be equal to the actuarial value of the pension fund's assets, which shall be calculated as follows: (1) On March 30, 2011, the actuarial value of a | ||
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(2) In determining the actuarial value of the pension | ||
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(b) The tax shall be levied and collected in the same manner
as the general taxes of the municipality, and shall be in addition
to all other taxes now or hereafter authorized to be levied upon all
property within the municipality, and in addition to the amount authorized
to be levied for general purposes, under Section 8-3-1 of the Illinois
Municipal Code or under Section 14 of the Fire Protection District Act. The
tax shall be forwarded directly to the treasurer of the board within 30
business days of receipt by the county
(or, in the case of amounts
added to the tax levy under subsection (f), used by the municipality to pay the
employer contributions required under subsection (b-1) of Section 15-155 of
this Code).
(b-5) If a participating municipality fails to transmit to the fund contributions required of it under this Article for more than 90 days after the payment of those contributions is due, the fund may, after giving notice to the municipality, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in fiscal year 2016, deduct and remit to the fund the certified amounts or a portion of those amounts from the following proportions of payments of State funds to the municipality: (1) in fiscal year 2016, one-third of the total | ||
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(2) in fiscal year 2017, two-thirds of the total | ||
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(3) in fiscal year 2018 and each fiscal year | ||
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The State Comptroller may not deduct from any payments of State funds to the municipality more than the amount of delinquent payments certified to the State Comptroller by the fund. (c) The board shall make available to the membership and the general public
for inspection and copying at reasonable times the most recent Actuarial
Valuation Balance Sheet and Tax Levy Requirement issued to the fund by the
Department of Insurance.
(d) The firefighters' pension fund shall consist of the following moneys
which shall be set apart by the treasurer of the municipality: (1) all
moneys derived from the taxes levied hereunder; (2) contributions
by firefighters as provided under Section 4-118.1; (2.5) all moneys received from the Firefighters' Pension Investment Fund as provided in Article 22C of this Code; (3) all
rewards in money, fees, gifts, and emoluments that may be paid or given
for or on account of extraordinary service by the fire department or any
member thereof, except when allowed to be retained by competitive awards;
and (4) any money, real estate or personal property received by the board.
(e) For the purposes of this Section, "enrolled actuary" means an actuary:
(1) who is a member of the Society of Actuaries or the American
Academy of Actuaries; and (2) who is enrolled under Subtitle
C of Title III of the Employee Retirement Income Security Act of 1974, or
who has been engaged in providing actuarial services to one or more public
retirement systems for a period of at least 3 years as of July 1, 1983.
(f) The corporate authorities of a municipality that employs a person
who is described in subdivision (d) of Section 4-106 may add to the tax levy
otherwise provided for in this Section an amount equal to the projected cost of
the employer contributions required to be paid by the municipality to the State
Universities Retirement System under subsection (b-1) of Section 15-155 of this
Code. (g) The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the General
Assembly on or before January 1, 2013. To the fullest extent possible, the study shall include, but not be limited to, the following: (1) fund balances; (2) historical employer contribution rates for each | ||
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(3) the actuarial formulas used as a basis for | ||
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(4) available contribution funding sources; (5) the impact of any revenue limitations caused by | ||
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(6) existing statutory funding compliance procedures | ||
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(Source: P.A. 101-522, eff. 8-23-19; 101-610, eff. 1-1-20; 102-59, eff. 7-9-21; 102-558, eff. 8-20-21.)
|
(40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
Sec. 4-118.1. Contributions by firefighters.
(a) Beginning January 1, 1976 and until the effective date of this
amendatory Act of the 91st General Assembly, each firefighter shall contribute
to the pension fund 6 3/4% of salary towards the cost of his or her pension.
Beginning on the effective date of this amendatory Act of the 91st General
Assembly, each firefighter shall contribute to the pension fund 6.955% of
salary towards the cost of his or her pension.
(b) In addition, beginning January 1, 1976, each firefighter shall
contribute 1% of salary toward the cost of the increase in pension provided in
Section 4-109.1; beginning January 1, 1987, such contribution shall be 1.5% of
salary; beginning July 1, 2004, the contribution shall be 2.5% of salary.
(c) Beginning on the effective date of this amendatory Act of the 93rd
General Assembly, each firefighter who elects to receive a pension under
Section 4-109.3 and who has participated in
at least one other pension fund under this Article for a period of at
least one year shall contribute an additional 1.0% of salary toward the
cost of the increase in pensions provided in Section 4-109.3. In the event that
a firefighter does not elect to receive a retirement pension
provided under Section 4-109.3 from one or more of the pension funds in which the firefighter has credit, he or she shall, upon withdrawal from
the last pension fund as defined in Section 4-109.3, be entitled to receive,
from each such fund to which he or she has paid additional contributions under
this subsection (c) and from which he or she does not receive a refund under Section 4-116, a refund of those contributions without interest. A refund of total contributions to a particular firefighter pension fund under Section 4-116 shall include any refund of additional contributions paid to that fund under this subsection (c), but a firefighter who accepts a refund from a pension fund under Section 4-116 is thereafter
ineligible to receive a pension provided under Section 4-109.3 from that fund. A firefighter who meets the eligibility requirements of Section 4-109.3 may receive a pension under Section 4-109.3 from any pension fund from which the firefighter has not received a refund under Section 4-116 or under this subsection (c).
(d) "Salary" means the annual salary, including longevity, attached
to the firefighter's rank, as established by the municipality appropriation
ordinance, including any compensation for overtime which is included in the
salary so established, but excluding any "overtime pay", "holiday pay",
"bonus pay", "merit pay", or any other cash benefit not included in the
salary so established.
(e) The contributions shall be deducted and withheld from the salary
of firefighters.
(Source: P.A. 93-689, eff. 7-1-04.)
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(40 ILCS 5/4-118.2) (from Ch. 108 1/2, par. 4-118.2)
Sec. 4-118.2.
Pick up of contributions.
A municipality may pick up
the firefighters' contributions required by Section 4-118.1 for all salary
earned after December 31, 1981. If a municipality decides not to pick up
the contributions, the required contributions shall continue to be deducted
from salary. If contributions are picked up, they shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code; however, the municipality shall continue to withhold Federal
and State income taxes based upon these contributions until the Internal
Revenue Service or the Federal courts rule that pursuant to Section 414(h)
of the United States Internal Revenue Code, these contributions shall not
be included as gross income of the firefighters until such time as they
are distributed or made available. The municipality shall pay these contributions
from the same source of funds which is used to pay the salaries of firefighters.
The municipality may pick up these contributions by a reduction in the cash
salary of the firefighters or by an offset against a future salary increase
or by a combination of a reduction in salary and offset against a future
salary increase. If contributions are picked up they shall be considered
for all purposes of this Article as firefighters' contributions made prior
to the time that contributions were picked up.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-120) (from Ch. 108 1/2, par. 4-120)
Sec. 4-120.
Reserves.
The board shall establish and maintain a reserve to insure the payment
of all obligations incurred under this Article. The reserve to be accumulated
shall be equal to the estimated total actuarial requirements of the Fund.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)
Sec. 4-121. Board created. There is created in each municipality or fire protection district a
board of trustees to be known as the "Board of Trustees of the Firefighters'
Pension Fund". The membership of the board for each municipality shall
be, respectively, as follows: in cities, the treasurer, clerk, marshal
or chief officer of the fire department, and the comptroller if there is
one, or if not, the mayor; in each township, village or incorporated town,
the president of the municipality's board of trustees, the village or town
clerk, village or town attorney, village or town treasurer, and the chief
officer of the fire department; and in each fire protection district, the
president and other 2 members of its board of trustees and the marshal
or chief of its fire department or service, as the case may be; and in all
the municipalities above designated 3 additional persons chosen from their
active firefighters and one other person who has retired under the Firemen's
Pension Fund Act of 1919, or this Article. Notwithstanding any provision of this Section to the contrary, the term of office of each member of a board established on or before the 3rd Monday in April, 2006 shall terminate on the 3rd Monday in April, 2006, but all incumbent members shall continue to exercise all of the powers and be subject to all of the duties of a member of the board until all the new members of the board take office. Beginning on the 3rd Monday in April, 2006, the board for each municipality or fire protection district shall consist of 5 members. Two members of the board shall be appointed by the mayor or president of the board of trustees of the municipality or fire protection district involved. Two members of the board shall be active participants of the pension fund who are elected from the active participants of the fund. One member of the board shall be a person who is retired under the Firemen's Pension Fund Act of 1919 or this Article who is elected from persons retired under the Firemen's Pension Fund Act of 1919 or this Article.
For the purposes
of this Section, a firefighter receiving a disability pension
shall be considered a retired firefighter. In the event
that there are no retired firefighters under the Fund
or if none is willing to serve on the board, then an additional active
firefighter shall be elected to the board in lieu of the
retired firefighter that would otherwise be elected.
If the regularly constituted fire department of a municipality is
dissolved and Section 4-106.1 is not applicable, the board shall continue
to exist and administer the Fund so long as there continues to be any
annuitant or deferred pensioner in the Fund. In such cases, elections
shall continue to be held as specified in this Section, except that: (1)
deferred pensioners shall be deemed to be active members for the purposes
of such elections; (2) any otherwise unfillable positions on the board,
including ex officio positions, shall be filled by election from the
remaining firefighters and deferred pensioners of the Fund, to the extent
possible; and (3) if the membership of the board falls below 3 persons, the
Illinois Director of Insurance or his designee shall be deemed a member of
the board, ex officio.
The members chosen from the active and retired
firefighters shall be elected by ballot at elections to
be held on the 3rd
Monday in April of the applicable years under the Australian ballot system,
at such place or places, in the municipality, and under such regulations
as shall be prescribed by the board.
No person shall cast more than one vote for each
candidate for whom he or she is eligible to vote. In the elections for board
members to be chosen from the active firefighters, all active
firefighters and no
others may vote. In the elections for board members to be chosen from
retired firefighters, the retired firefighters and no others may vote.
Each member of the board so elected shall hold office for a term of 3
years and until his or her successor has been duly elected and qualified.
The board shall canvass the ballots and declare which persons have been
elected and for what term
or terms respectively. In case of a tie vote between 2 or more
candidates, the board shall determine by lot which candidate or candidates
have been elected and for what term or terms respectively. In the event
of the failure, resignation, or inability to act of any board member,
a successor shall be elected for the unexpired
term at a special election called by the board and conducted
in the same manner as a
regular election.
The board shall elect annually from its members a president
and secretary.
Board members shall not receive or have any right to receive any salary
from a pension fund for services performed as board members.
(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/4-122) (from Ch. 108 1/2, par. 4-122)
Sec. 4-122.
Powers and duties of board.
The board shall have the powers and duties stated in Sections 4-123 through
4-129.1, in addition to the other powers and duties provided
under this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-123) (from Ch. 108 1/2, par. 4-123)
Sec. 4-123. To control and manage the Pension Fund. In accordance with the
applicable provisions of Articles 1 and 1A and this Article, to control and
manage, exclusively, the following:
(1) the pension fund,
(2) until the board's investment authority is | ||
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(3) all money donated, paid, assessed, or provided by | ||
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All money received or collected shall be credited by the treasurer of the
municipality to the account of the pension fund and held by the treasurer of
the municipality subject to the order and control of the board. The treasurer
of the municipality shall maintain a record of all money received, transferred,
and held for the account of the board.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/4-123.1) (from Ch. 108 1/2, par. 4-123.1)
Sec. 4-123.1.
To subpoena witnesses.
To compel witnesses to attend
and testify before it upon all matters connected with the administration of
this Article, in the manner provided by law for the taking of testimony
before the circuit court. The president, or any member of the Board, may
administer oaths to such witnesses.
(Source: P.A. 84-1039.)
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(40 ILCS 5/4-123.2) Sec. 4-123.2. To transfer investment authority to the Firefighters' Pension Investment Fund. As soon as practicable after the effective date of this amendatory Act of the 101st General Assembly, but no later than 30 months after the effective date of this amendatory Act of the 101st General Assembly, each transferor pension fund shall transfer, in accordance with the requirements of Section 22C-120 to the Firefighters' Pension Investment Fund created under Article 22C for management and investment all of their securities or for which commitments have been made, and all funds, assets, or moneys representing permanent or temporary investments, or cash reserves maintained for the purpose of obtaining income thereon. Upon the transfer of such securities, funds, assets, and moneys of a transferor pension fund to the Firefighters' Pension Investment Fund, the transferor pension fund shall not manage or control the same and shall no longer exercise any investment authority pursuant to Section 4-128 of this Code, notwithstanding any other provision of this Article to the contrary. Nothing in this Section prohibits a fund under this Article from maintaining an account, including an interest earning account, for the purposes of benefit payments and other reasonable expenses after the end of the transition period as defined in Section 22C-112, and funds under this Article are encouraged to consider a local bank or financial institution to provide such accounts and related financial services.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/4-124) (from Ch. 108 1/2, par. 4-124)
Sec. 4-124.
To enforce contributions.
To assess each firefighter the
contributions required under Section 4-118.1. The contributions deducted
from salaries,
together with all interest
accruing thereon, shall be placed by the treasurer of the municipality
as ex officio treasurer of the board, to the credit of the pension
fund, subject to the order of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-125) (from Ch. 108 1/2, par. 4-125)
Sec. 4-125.
To hear and determine applications and to order payments.
To hear and decide all applications for pensions and other
benefits under this Article and to order and direct the payment of pensions
and other benefits.
The first payment for any pension benefits shall be made not later than
one month after benefits are granted. Each such subsequent payment shall
be made not later than one month after the date of the latest payment.
Such benefits shall not be prepaid.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-126) (from Ch. 108 1/2, par. 4-126)
Sec. 4-126.
To make rules.
To make all rules and regulations necessary for the discharge of its
duties.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/4-127) (from Ch. 108 1/2, par. 4-127)
Sec. 4-127.
To pay expenses.
To provide for the payment from the fund of all necessary expenses of
the Board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
Sec. 4-128.
To invest funds.
Beginning January 1, 1998, the board shall
invest funds in accordance with Sections 1-113.1 through 1-113.10 of this
Code.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/4-129) (from Ch. 108 1/2, par. 4-129)
Sec. 4-129.
To keep records.
To keep a record of all its meetings and proceedings.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/4-129.1) (from Ch. 108 1/2, par. 4-129.1)
Sec. 4-129.1.
To accept donations.
To accept by gift, grant, transfer
or bequest, any money, real estate or personal property. Such money and
the proceeds from the sale of or income from such real estate or personal
property shall be paid into the pension fund.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-130) (from Ch. 108 1/2, par. 4-130)
Sec. 4-130. Treasurer of the Board. The treasurer of the municipality shall be the treasurer of the board and
the custodian of the pension fund,
and shall secure and safely keep the fund's assets, subject
to the control and
direction of the board. The treasurer shall keep
books and accounts concerning the fund in such manner as may be prescribed
by the board. The books and accounts shall be subject to the inspection of the board
or any member thereof.
(Source: P.A. 102-787, eff. 5-13-22.)
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(40 ILCS 5/4-131) (from Ch. 108 1/2, par. 4-131)
Sec. 4-131.
Warrants.
The mayor or president of the board of trustees and clerk,
secretary, or the comptroller, if there be one, and the officer or officers
of the municipality, who are authorized by law
to draw warrants
upon the treasurer of the municipality, upon request made in writing by
the board, shall draw such warrants,
payable to the treasurer of the board for all funds in the hands of the
municipality's treasurer belonging to the pension fund.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-132) (from Ch. 108 1/2, par. 4-132)
Sec. 4-132.
Disbursements.
Payments from the pension fund shall be
made by the
treasurer of the board only upon warrants signed by the president of the
board and countersigned by its secretary. No warrant
shall be drawn
except by order of the board duly entered in the records of the board's
proceedings.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-133) (from Ch. 108 1/2, par. 4-133)
Sec. 4-133.
Interest on deposits.
If the pension fund, or any part thereof, by order of the board or
otherwise, is deposited in any bank or savings and loan association,
or loaned, all interest or money which is paid or agreed to be paid
on the loan or deposit
shall become a part of the fund. No such
loan or deposit shall be made without board authorization.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
Sec. 4-134. Report for tax levy. (a) The board shall report to the city council
or board of trustees of the municipality on the condition of the pension fund
at the end of its most recently completed fiscal year. The report shall
be made prior to the council or board meeting held for appropriating and
levying taxes for the year for which the report is made.
The pension board in the report shall certify and provide the following information to the city council or board of trustees of the municipality:
(1) the total assets of the fund and their current | ||
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(2) the estimated receipts during the next succeeding | ||
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(3) the estimated amount necessary during the fiscal | ||
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(4) the total net income received from investment of | ||
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(5) the increase in employer pension contributions | ||
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(6) the total number of active employees who are | ||
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(7) the total amount that was disbursed in benefits | ||
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(8) the funded ratio of the fund; (9) the unfunded liability carried by the fund, along | ||
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(10) the investment policy of the pension board under | ||
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Before the pension board makes its report, the municipality shall have the assets
of the fund and
their current market value verified by an independent certified public
accountant of its choice.
(b) The municipality is authorized to publish the report submitted under this Section. This publication may be made, without limitation, by publication in a local newspaper of general circulation in the municipality or by publication on the municipality's Internet website. If the municipality publishes the report, then that publication must include all of the information submitted by the pension board under subsection (a). (Source: P.A. 95-950, eff. 8-29-08.)
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(40 ILCS 5/4-135) (from Ch. 108 1/2, par. 4-135)
Sec. 4-135.
Benefits - Exempt.
No portion of the pension fund shall, either before or after
a board's order
of distribution to any retired firefighter or his or
her beneficiaries, be held, seized, taken subject to, or detained or levied on by
virtue of any process, injunction
interlocutory or
other order or judgment, or any process or proceeding whatever
issued by any court of this State, for the payment or satisfaction in whole or
in part of any debt, damages, claim, demand or judgment against any firefighter
or his or her beneficiaries, but the fund shall be held, secured and distributed
for the purposes of pensioning such
firefighter and beneficiaries and
for no other purposes whatever.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-138) (from Ch. 108 1/2, par. 4-138)
Sec. 4-138. Felony conviction. None of the benefits provided under this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with service as a firefighter.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the firefighter from whom the benefit results. This Section shall not impair any contract or vested right acquired prior
to July 11, 1955 under any law
continued in this Article, nor preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All persons entering service subsequent to July
11, 1955, are deemed to have consented to the provisions
of this Section as a
condition of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/4-138.5)
Sec. 4-138.5. Fraud. Any person, member, trustee, or employee of the board who knowingly
makes any false statement or falsifies or permits to be falsified any
record of a fund in any attempt to defraud such fund as a
result of such act, or intentionally or knowingly defrauds a fund in any manner, is guilty of a Class A misdemeanor.
(Source: P.A. 95-950, eff. 8-29-08.) |
(40 ILCS 5/4-138.10) Sec. 4-138.10. Mistake in benefit. (a) If the Fund commits a mistake by setting any benefit at an incorrect amount, it shall adjust the benefit to the correct level as soon as may be practicable after the mistake is discovered. The term "mistake" includes a clerical or administrative error executed by the Fund or participant as it relates to a benefit under this Article; however, in no case shall "mistake" include any benefit as it relates to the reasonable calculation of the benefit or aspects of the benefit based on salary, service credit, calculation or determination of a disability, date of retirement, or other factors significant to the calculation of the benefit that were reasonably understood or agreed to by the Fund at the time of retirement. (b) If the benefit was mistakenly set too low, the Fund shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the rate prescribed by the Public Pension Division of the Department of Insurance from the date the unpaid amounts accrued to the date of payment. (c) If the benefit was mistakenly set too high, the Fund may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient as is indicated by the recipient. If the overpayment is recovered by deductions from the remaining benefits payable to the recipient, the monthly deduction shall not exceed 10% of the corrected monthly benefit unless otherwise indicated by the recipient. However, if (i) the amount of the benefit was mistakenly set too high, and (ii) the error was undiscovered for 3 years or longer, and (iii) the error was not the result of fraud committed by the affected participant or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the Fund the excess amounts received in error.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/4-139) (from Ch. 108 1/2, par. 4-139)
Sec. 4-139. Administrative review. Except as it relates to any time limitation to correct a mistake as provided in Section 4-138.10, the provisions of the Administrative Review Law,
and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the retirement board
provided for under this Article. The term "administrative decision" is as
defined in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/4-140) (from Ch. 108 1/2, par. 4-140)
Sec. 4-140.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/4-141) (from Ch. 108 1/2, par. 4-141)
Sec. 4-141. Referendum in municipalities less than 5,000. This Article shall become effective in any municipality of less than
5,000 population if the proposition to adopt
the Article is submitted to and approved by the voters of the
municipality in the manner herein provided.
Whenever the electors of the municipality equal in number to 5% of
the number of legal votes cast at the last preceding general municipal
election for mayor or president, as the case may be, petition the
corporate authorities of the municipality to submit the proposition whether that
municipality shall adopt this Article, the municipal clerk shall certify
the proposition to the proper election official who shall submit it to the
electors in accordance with the general election law at the next
succeeding regular election in the municipality. If the proposition is not
adopted at that
election, it may be submitted in like manner at any regular
election thereafter.
The proposition
shall be substantially in the following form:
Shall the city (or village orincorporated town as the case may be) YESof.... adopt Article 4 of theIllinois Pension Code, providing for a Firefighters' NOPension Fund and the levyingof an annual tax therefor?
If a majority of the votes cast on the proposition is for the proposition,
this Article is adopted in that
municipality.
(Source: P.A. 102-558, eff. 8-20-21.)
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(40 ILCS 5/4-142) (from Ch. 108 1/2, par. 4-142)
Sec. 4-142.
Applicability of home rule powers.
A home rule
unit, as defined in Article VII of the 1970 Illinois Constitution or
any amendment thereto, shall have no power to change, alter,
or amend in any way
the provisions of this Article.
A home rule unit
which is a municipality, as defined in Section 4-103, shall not provide
for, singly or as a part of any plan or program, by any means whatsoever,
any type of retirement or annuity benefit to a firefighter
other than through
establishment of a fund as provided in this Article as now or hereafter
amended.
(Source: P.A. 83-1440.)
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(40 ILCS 5/4-144) (from Ch. 108 1/2, par. 4-144)
Sec. 4-144.
Savings clause.
The repeal or amendment of any Section
or provisions of this Article by this amendatory Act of 1984 shall not affect
or impair any pension, benefits, rights or credits accrued or in effect prior thereto.
(Source: P.A. 83-1440.)
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(40 ILCS 5/Art. 5 heading) ARTICLE 5.
POLICEMEN'S ANNUITY AND BENEFIT FUND--CITIES OVER 500,000
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(40 ILCS 5/5-101) (from Ch. 108 1/2, par. 5-101)
Sec. 5-101.
Creation of fund.
In each city of more than 500,000 inhabitants a policemen's annuity and
benefit fund shall be created and maintained for the benefit of its
policemen, their widows and children, and of all contributors to,
participants in, and beneficiaries of any police pension fund in operation,
by authority of law, in such city immediately prior to the effective date.
For the purposes of this Article, the policemen's annuity and benefit fund
may be referred to as the "fund."
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-102) (from Ch. 108 1/2, par. 5-102)
Sec. 5-102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 5-103 to 5-120, inclusive, except when the context otherwise
requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-103) (from Ch. 108 1/2, par. 5-103)
Sec. 5-103.
Policemen's annuity and benefit fund act of the Illinois Municipal Code.
"Policemen's Annuity and Benefit Fund Act of the Illinois Municipal
Code": Division 7 of Article 10 of the Illinois Municipal Code, being a
continuation of "An Act to provide for the creation, setting apart,
maintenance and administration of a policemen's annuity and benefit fund in
cities having a population exceeding two hundred thousand inhabitants",
approved June 29, 1921, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-104) (from Ch. 108 1/2, par. 5-104)
Sec. 5-104.
Park Policemen's Annuity Act.
"Park Policemen's Annuity Act": "An Act to provide for the creation,
setting apart, maintenance and administration of a Park Policemen's and
Retirement Board Employees' Annuity and Benefit Fund", approved June 29,
1921, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-105) (from Ch. 108 1/2, par. 5-105)
Sec. 5-105.
Park policemen's annuity fund.
"Park policemen's annuity fund": The annuity and benefit fund created
under the Park Policemen's Annuity Act.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-106) (from Ch. 108 1/2, par. 5-106)
Sec. 5-106.
Exchange of Functions Act of 1957.
"Exchange of Functions Act of 1957": "An Act in relation to an exchange
of certain functions, property and personnel among cities, and park
districts having coextensive geographic areas and populations in excess of
500,000", approved July 5, 1957.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-107) (from Ch. 108 1/2, par. 5-107)
Sec. 5-107.
Effective date.
"Effective date": January 1, 1922, for any city covered by the
"Policemen's Annuity and Benefit Fund Act of the Illinois Municipal Code"
on the date that this Article comes in effect; and January 1 of the year
following the date that any other city first comes under the provisions of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-108) (from Ch. 108 1/2, par. 5-108)
Sec. 5-108.
Retirement board or the board.
"Retirement board" or "the board": The board of trustees of the
Policemen's Annuity and Benefit Fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-109) (from Ch. 108 1/2, par. 5-109)
Sec. 5-109.
Policeman.
"Policeman":
(a) An employee in the regularly constituted police department of a
city appointed and sworn or designated by law as a peace officer with
the title of policeman, policewoman, chief surgeon, police surgeon,
police dog catcher, police kennelman, police matron, and members of the
police force of the police department; and
(b) An employee as defined in sub-paragraph (a) immediately above
who is serving in the regularly constituted police department of a city
in a rank or position which is exempt from civil service and who,
immediately prior to the time he began such service, was a participant
in the Policemen's Annuity and Benefit Fund Act; and
(c) Any policeman of a park district transferred to the employment
of a city under the "Exchange of Functions Act of 1957".
(Source: P.A. 86-272; 86-1027.)
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(40 ILCS 5/5-109.1) (from Ch. 108 1/2, par. 5-109.1)
Sec. 5-109.1.
Gender.
The masculine gender whenever used in this Article includes the feminine
gender and all annuities and benefits applicable to male policemen and
their survivors and the contributions to be made for widows' annuities or
other benefits, shall apply with equal force to female policemen and their
survivors without any modification or distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/5-110) (from Ch. 108 1/2, par. 5-110)
Sec. 5-110.
Present employee.
"Present employee": Any person employed by a city as a policeman on the
day before the effective date, and, effective January 1, 1960, a policeman
who qualifies as a present employee under the "Park Policemen's Annuity
Act" whose employment as a policeman has been transferred to the police
service of the city as a result of the "Exchange of Functions Act of
1957".
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-111) (from Ch. 108 1/2, par. 5-111)
Sec. 5-111.
Future entrant.
"Future entrant":
(a) A person employed by a city as a policeman for the first time on or
after the effective date;
(b) A former policeman of a city who reenters the police service on or
after the effective date; and
(c) Effective January 1, 1960, a policeman who qualifies as a future
entrant under the "Park Policemen's Annuity Act", whose employment as a
policeman has been transferred to the police service of the city as a
result of the "Exchange of Functions Act of 1957".
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-112) (from Ch. 108 1/2, par. 5-112)
Sec. 5-112.
Active policeman.
"Active policeman": A person employed and receiving salary as a
policeman.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-113) (from Ch. 108 1/2, par. 5-113)
Sec. 5-113.
Act of duty.
"Act of duty": Any act of police duty inherently involving special risk,
not ordinarily assumed by a citizen in the ordinary walks of life, imposed
on a policeman by the statutes of this State or by the ordinances or police
regulations of the city in which this Article is in effect or by a special
assignment; or any act of heroism performed in the city having for its
direct purpose the saving of the life or property of a person other than
the policeman.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-114) (from Ch. 108 1/2, par. 5-114)
Sec. 5-114.
Salary.
"Salary":
(a) Annual salary, provided that $2,600 shall be the maximum amount
of salary to be considered for any purpose under this Act prior to July
1, 1927.
(b) Annual salary, provided that $3,000 shall be the maximum amount
of salary to be considered for any purpose under this Act from July 1,
1927 to July 1, 1931.
(c) Annual salary, provided that the annual salary shall be
considered for age and service annuity, minimum annuity and disability
benefits and $3,000 shall be the maximum amount of salary to be
considered for prior service annuity, widow's annuity, widow's prior
service annuity and child's annuity from July 1, 1931 to July 1, 1933.
(d) Beginning July 1, 1933, annual salary of a policeman
appropriated for members of his rank or grade in the city's annual
budget or appropriation bill, subject to the following:
(1) For age and service annuity, minimum annuity and | ||
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(2) For prior service annuity, widow's annuity, | ||
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(3) When the salary appropriated is for a definite | ||
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(e) For a policeman assigned to a non-civil service position as
provided in Section 5-174 from and after January 1, 1970, (with the
hereinafter stated excess not considered as salary for any purpose of
this Article for any of the years prior to 1970 except to the extent
provided by the election in Section 5-174), annual salary means the
total salary derived from appropriations applicable to the civil service
rank plus the excess over such amount paid for service in the non-civil
service position.
(f) Beginning January 1, 1998, the salary of a policeman, as calculated
under subsection (d), shall include any duty availability allowance received by
the policeman.
An active or former policeman who (1) either retired between July 1, 1994 and
December 31, 1997, both inclusive, or attained or will attain age 50 and 20
years of service between July 1, 1994 and January 1, 2002, both inclusive,
and (2) received a duty availability allowance at any time after June 30, 1994
and before January 1, 1998 may elect to have that duty availability
allowance included in the calculation of his or her salary under subsection
(d) for all or any portion of that period for which the allowance was
received, by applying in writing and paying to the Fund, no earlier than
January 1, 1998 and no later than July 1, 1998, the corresponding employee
contribution, without interest. Thereafter the City shall make its
corresponding contribution, without interest.
This subsection (f) applies without regard to
whether the applicant terminated service or began to receive a retirement
annuity before the effective date of this amendatory Act of 1997. In the case
of a person who is receiving a retirement annuity at the time the application
and contribution are received by the Fund, the annuity shall be recalculated
and the resulting increase shall become payable on the next annuity payment
date following the date the contribution is received by the Fund.
(Source: P.A. 90-551, eff. 12-12-97.)
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(40 ILCS 5/5-115) (from Ch. 108 1/2, par. 5-115)
Sec. 5-115.
Disability.
"Disability": A condition of physical or mental incapacity to
perform any assigned duty or duties in the police service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-116) (from Ch. 108 1/2, par. 5-116)
Sec. 5-116.
Withdrawal, withdrawal from service, or withdrawn from service.
"Withdrawal", "withdrawal from service", or "withdrawn from service":
The discharge or resignation of a policeman.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-117) (from Ch. 108 1/2, par. 5-117)
Sec. 5-117.
Assets.
"Assets": The total value of cash, securities, and other property less
all liabilities. Bonds shall be valued at their amortized book value.
(Source: P.A. 78-833.)
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(40 ILCS 5/5-118) (from Ch. 108 1/2, par. 5-118)
Sec. 5-118.
Age.
"Age": Age at last birthday preceding the date on which ascertainment of
age is necessary to any computation under this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-119) (from Ch. 108 1/2, par. 5-119)
Sec. 5-119.
Injury.
"Injury": A physical hurt resulting from external force or violence.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-120) (from Ch. 108 1/2, par. 5-120)
Sec. 5-120.
Interest.
"Interest": (a) Interest at 4% per annum for any policeman who was a
participant or a contributor to this fund on December 31, 1953; and (b)
interest at 3% per annum for any future entrant not a participant or
contributor to this fund on December 31, 1953, who becomes a participant or
contributor after December 31, 1953.
For fund accounts, credits, transfers and charges, "interest" means
interest at 4% per annum as to amounts applicable to any policeman who was
a participant or a contributor on December 31, 1953, and interest at 3% per
annum as to amounts applicable to any future entrant who was not a
participant or a contributor on December 31, 1953, but who becomes a
participant or contributor after December 31, 1953.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-121) (from Ch. 108 1/2, par. 5-121)
Sec. 5-121.
Annuity.
Prior service annuity, age and service annuity, widow's annuity and
widow's prior service annuity shall consist of equal monthly payments for
life with the first payment payable one month after the occurrence of the
event upon which payment shall depend.
Any annuitant may execute a written waiver under oath of his right to
receive any part of his annuity, to take effect upon its being filed with
the board. The amount waived shall be a permanent reduction in the annuity
payable to the annuitant. Nothing in this Section shall be deemed to
change or modify the terms and conditions of the reversionary annuity under 5-132.2.
(Source: P.A. 83-823.)
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(40 ILCS 5/5-122) (from Ch. 108 1/2, par. 5-122)
Sec. 5-122.
Prior service annuity.
"Prior Service Annuity" shall be credited for present employees for
service rendered prior to the effective date in accordance with the
provisions of "Policemen's Annuity and Benefit Fund Act of the Illinois
Municipal Code" and this Article. Each such credit shall be improved by
interest during the time thereafter the employee is in service until his
annuity is fixed.
In determining such annuity, the annual salary for the entire period of
the employee's service prior to the effective date shall be the salary in
effect on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-123) (from Ch. 108 1/2, par. 5-123)
Sec. 5-123.
Age and service annuity.
"Age and Service Annuity" shall be provided policemen for service
rendered on or after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-124) (from Ch. 108 1/2, par. 5-124)
Sec. 5-124.
Present employees - Limitation to and amount of prior
service annuities in certain cases.
A present employee who has a credit on the effective date, for prior
service annuity, of an amount sufficient to provide annuity as of his
age on such date equal to that to which he would have had a right if employee
contributions by salary deductions and city contributions had
been made for age and service annuity during his entire period of
service until his attainment of age 57, is entitled to a prior service
annuity from the date he withdraws from service of such amount as can be
provided by his credit for prior service annuity on the effective date.
Any such present employee has no right to receive age and service
annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-125) (from Ch. 108 1/2, par. 5-125)
Sec. 5-125.
Present employees - Age 57 in service - Amount of annuity.
(a) A present employee who attains age 57 or more while in service,
having credit from sums accumulated for age and service annuity and
prior service annuity sufficient to provide annuity as of his age at
such time equal to that to which he would have had a right if
employee contributions by salary deductions and
city contributions had been made
in accordance with this Article applicable to age and service annuity
during his entire period of service until he attained age 57, is
entitled to such age and service annuity and prior service annuity when
he withdraws.
(b) A present employee who attains age 57 or more while in service
and who has not to his credit for age and service annuity and prior
service annuity the amount described in paragraph (a) above is entitled
on the date of his withdrawal to such age and service annuity and prior
service annuity as can be provided by the amount to his credit for such
annuities.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-126) (from Ch. 108 1/2, par. 5-126)
Sec. 5-126.
Present employees - Age 50 but less than 57 in
service - Age 50 out of service - Amount of annuity.
A present employee who (1) attains age 50 or more but less than 57
while in service, having 10 or more years of service at the date of
withdrawal or (2) withdraws with 10 or more years of service before age
50 and thereafter attains age 50 while out of service, is entitled to an
age and service annuity and prior service annuity from the date of
withdrawal or after attainment of age 50, respectively, in such amount
as can be provided from the total of the following:
1. If service is 20 or more years, the sum credited for age and
service annuity and prior service annuity; or
2. If service is 10 or more but less than 20 years, (a) the sum
provided for age and service annuity, (b) 1/10 of the contributions by
the city for each year of service after the first 10 years, (c) the sum
credited for prior service annuity from employee contributions and
applied to any police pension fund in operation, by authority of law, in
such city on the effective date, and (d) 1/10 of the credit for prior
service annuity, in accordance with the "Policemen's Annuity and Benefit
Fund Act of the Illinois Municipal Code", for each year of service after
the first 10 years.
The annuity provided in this section for an employee who attains age
50 out of service shall be computed as though the employee were exactly
age 50 at the time the annuity is granted, regardless of his actual age
when application for annuity is made, and no such employee has any right
to any annuity on account of any time between the date he attains age 50
and the date of application for annuity, nor shall any annuity be
payable if the employee has received a refund of contributions.
Annuity in excess of that fixed by this section shall not be granted
unless the employee re-enters the service before age 57. If such
re-entry occurs, his annuity shall be provided in accordance with this
section or section 5-125, whichever is applicable.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-127) (from Ch. 108 1/2, par. 5-127)
Sec. 5-127.
Minimum amount of annuity of present employee.
Any present employee who withdraws on or after the effective date having
at least 20 years of service and for whom the annuity otherwise provided in
this Article is less than the amount stated in this section, has a right to
annuity as follows:
(1) If he is at least age 50 on withdrawal, his annuity, from and after
such withdrawal, shall be 50% of the compensation attached to or
appropriated for the rank in the police department which he may have held
by civil service appointment on the day one year prior to the date of
withdrawal from service. Beginning July 1, 1931, the compensation to be
used shall be not less than that in effect on July 1, 1931;
(2) If he is less than age 50 on withdrawal, his annuity, beginning on
the date he becomes age 50, shall be 50% of his salary at withdrawal but
not in excess of $900 a year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-128) (from Ch. 108 1/2, par. 5-128)
Sec. 5-128.
Future entrants - amount of annuity.
When a future entrant withdraws from service,
his age and service
annuity shall be fixed as of the date of withdrawal. The
annuity shall be that provided
from the entire sum to his credit for age and service annuity on the date
he withdraws from service.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-129) (from Ch. 108 1/2, par. 5-129)
Sec. 5-129.
Future entrants - Age 50 in
service - amount of annuity.
When a future entrant who attains age 50 or more in service, having
10 or more years of service, withdraws, his age and
service annuity shall be fixed as of his age at withdrawal. He is
entitled to annuity, after withdrawal, of the amount provided from the
following sums on the date of withdrawal:
(1) If service is 20 or more years, the entire sum accumulated for
age and service annuity from employee contributions and contributions
by the city; or
(2) If service is 10 or more but less than 20 years, the sum
accumulated for age and service annuity from employee contributions,
plus 1/10 of the sum accumulated for such purpose from contributions by
the city, for each completed year of service after the first 10 years.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-129.1)
Sec. 5-129.1. Withdrawal at mandatory retirement age - amount of annuity.
(a) In lieu of any annuity provided in the other provisions of this
Article, a policeman who is required to withdraw from service on or after
January 1, 2000 due to attainment of mandatory retirement age and has at
least 10 but less
than 20 years of service credit may elect to receive an annuity equal to 30%
of average salary for the first 10 years of service plus 2% of average salary
for each completed year of service or fraction thereof in excess of 10, but
not to exceed a maximum of 48% of average salary.
(b) For the purpose of this Section, "average salary" means the average of
the highest 4 consecutive years of salary within the last 10 years of service,
or such shorter period as may be used to calculate a minimum retirement
annuity under Section 5-132.
(c) For the purpose of qualifying for the annual increases provided in
Section 5-167.1, a policeman whose retirement annuity is calculated under
this Section shall be deemed to qualify for a minimum annuity.
(d) A policeman with less than 20 years of service credit who was
required to withdraw from service on or after January 1, 2000 but before
June 28, 2002 due to attainment of mandatory retirement age is also entitled
to have his or her retirement annuity calculated in accordance with this
Section. If payment of the annuity has already begun, the annuity shall be
recalculated. The resulting increase, if any, shall accrue from the starting
date of the annuity; the amount of the increase relating to the period before
the annuity is recalculated shall be paid to the annuitant in a lump sum,
without interest.
(Source: P.A. 92-599, eff. 6-28-02; 93-654, eff. 1-16-04.)
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(40 ILCS 5/5-130) (from Ch. 108 1/2, par. 5-130)
Sec. 5-130.
Future entrants - withdrawal before age 50-Amount of annuity.
When a future entrant withdraws before age 50 after 10 or more years'
service and attains age 50 while not in service, his age and service
annuity shall be fixed as of age 50. He is entitled to an annuity, after he
attains age 50, provided from the following sums:
1. If service is 20 or more years, the sum accumulated for age and
service annuity; or
2. If service is 10 or more but less than 20 years, the sum accumulated
for age and service annuity, plus 1/10 of the sum accumulated for such
annuity from contributions by the city, for each completed year of service
after the first 10 years.
The annuity shall be computed as though the employee were exactly age 50
when the annuity is granted regardless of his actual age upon application.
No such employee has any right to annuity for any time between the date he
attains age 50 and the date he makes application, nor shall any annuity be
payable if he has received a refund of contributions which has not been
repaid.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-131) (from Ch. 108 1/2, par. 5-131)
Sec. 5-131.
Future entrants - Re-entry and new fixation.
Except as may be otherwise provided in this Article, no amount of
annuity other than that fixed in accordance with Sections 5-129 and 5-130
shall be granted to any future entrant therein described unless he
re-enters the service. If such re-entry occurs, the amount of
annuity shall again be fixed as provided herein.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-132)
(from Ch. 108 1/2, par. 5-132)
Sec. 5-132. Minimum annuity. Any policeman who withdraws on or after
July 8, 1957, or any policeman
transferred to the police service of the city under the Exchange of
Functions Act of 1957 who withdraws on or after July 17, 1959, after
completing at least 20 years of service, for whom the
annuity otherwise provided in this Article is less than that stated in this
Section has a right to receive annuity as follows:
(a) If he is age 55 or more on withdrawal, his annuity after such
withdrawal, shall be equal to 2% of the average salary for 4 consecutive
years of highest salaries within the last 10 years of service before
withdrawal, for each year of service, together with 1/6 of 1% of such
average salary for each complete month of service of each fractional year,
but not in excess of 75% of the average annual salary.
(b) If he is age 50 or more but less than age 55 on withdrawal, his
annuity shall be equal to 2% of the average salary for the 4 highest
consecutive years of the last 10 years of service for each year of service,
together with 1/16 of 1% of such average salary for each month of each
fractional year of service, reduced by 1/2 of 1% for each month that he is
less than age 55.
(c) If he is less than age 50 on withdrawal, he may, upon attainment of
age 50 or over, become entitled to the annuity provided in this Section or,
he may, upon application before age 50, receive a refund of the deductions
from salary, plus interest at 1 1/2% per annum if he is entitled to refund
under Section 5-163.
(d) In lieu of the annuity provided in the foregoing provisions of this
Section 5-132 any policeman who withdraws from the service after December
31, 1973, after having attained age 53 in the service with
23 or more years of service credit shall be entitled to an
annuity computed as follows if such annuity is greater than that provided
in the foregoing paragraphs of this Section 5-132: An annuity equal to
50% of the average salary for the 4
highest consecutive years of the last 10 years of service plus
additional annuity equal to 2% of such average salary for each completed
year of service or fraction
thereof rendered after his attainment of age 53 and the completion
of 23 years of service.
Any policeman who has completed 23 years of service prior to
his attainment of age 53 in the service and continues in the
service until his attainment of age 53 shall have added to his
annuity, computed as provided in the immediately preceding paragraph, an
additional annuity equal to 1% of such average salary for each
completed year of service or fraction thereof in excess of 23
years up to age 53.
(e) In lieu of the annuity provided in the foregoing provisions of this
Section any policeman who withdraws from the service either (i) after
December 31, 1983 with at least 22 years of service credit and having
attained age 52 in the service, or (ii) after December 31, 1984 with at
least 21 years of service credit and having attained age 51 in the service,
or (iii) after December 31, 1985 with at least 20 years of service credit
and having attained age 50 in the service, or (iv) after December 31,
1990, with at least 20 years of service credit regardless of age, shall
be entitled to an annuity to begin not earlier than upon attainment of
age 50 if under such age at withdrawal, computed as follows: an annuity
equal to 50% of the average salary for the 4 highest consecutive years of the
last 10 years of service, plus additional annuity equal to 2% of such average
salary for each completed year of service or fraction thereof rendered after
his completion of the minimum number of years of service required for him to be
eligible under this subsection (e). In lieu of any annuity provided in the
foregoing provisions of this Section, any policeman who withdraws from the
service after December 31, 2003, with at least 20 years of service credit
regardless of age, shall be entitled to an annuity to begin not earlier than
upon attainment of age 50, if under that age at withdrawal, equal to 2.5% of
the average salary for the 4 highest consecutive years of the last 10 years of
service for each completed year of service or fraction thereof. However,
the annuity provided under this subsection (e) may not exceed 75% of such
average salary.
(f) A policeman withdrawing after September 1, 1969, may, in addition, be
entitled to the benefits provided by Section 5-167.1 of this Article if he
so qualifies under that Section.
If, on withdrawal, total service is less than 20 years, the policeman
shall not be entitled to an annuity under this Section but may receive an
annuity under the other provisions of this Article or, if entitled thereto
under Section 5-163, a refund of the deductions from salary, including, in
the case of policemen transferred to the police service of the city under
the Exchange of Functions Act of 1957, the additional contribution paid on
salary received from August 1, 1957, to July 17, 1959, as provided in the
Park Policemen's Annuity Act, together with interest at 1 1/2% per annum.
Moneys voluntarily contributed under the Policemen's Annuity and Benefit
Fund Act of the Illinois Municipal Code, or the Park Policemen's Annuity
Act, shall be refunded to the contributing policemen who were in service on
January 1, 1954, or in the case of policemen transferred to the police
service of the city under the Exchange of Functions Act of 1957, who were
in service on July 17, 1959.
The age and service annuity formula in this Section shall not apply to
any policeman who, having retired before July 8, 1957, or before July 17,
1959, in the case of a policeman transferred under the provisions of the
Exchange of Functions Act of 1957, re-enters the police service after such
dates, whichever are applicable.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/5-132.2) (from Ch. 108 1/2, par. 5-132.2)
Sec. 5-132.2.
Reversionary annuity.
(a) A policeman, prior to retirement
on annuity, may elect to take a lesser amount of annuity and provide, with
the actuarial value of the amount by which his annuity is reduced, a reversionary
annuity for a wife or husband. The option may be exercised by filing
a written designation with the board prior to retirement, and may be revoked
by the policeman at any time before retirement. The death of the policeman
prior to his retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant prior to the policeman's
retirement shall automatically void the option. If the reversionary annuitant
dies after the policeman's retirement and before the death of the policeman
annuitant, the reduced annuity being paid to the retired policeman annuitant
shall be increased to the amount of annuity before reduction for the reversionary
annuity and no reversionary annuity shall be payable.
The option is subject to the further condition that no reversionary annuity
shall be paid if the policeman dies before the expiration of 730 days from
the date his written designation was filed with the board, even though he has
retired and is receiving a reduced annuity.
(c) A policeman exercising this option may not reduce his annuity by more
than $200 per month, or elect to provide a reversionary annuity of less than
$50 per month.
(d) A reversionary annuity shall begin on the day following the death
of the annuitant, with the first prorated payment due and payable the first
day of the month following the date of death, and shall continue monthly
thereafter until the death of the reversionary annuitant, with the last
payment prorated to date of death.
(e) Notwithstanding the fact that a policeman has elected to receive a
reduced annuity under this Section, the increases in annuity provided in
Section 5-167.1 of this Article shall be calculated on the amount of the
original unreduced annuity.
(f) The amount of the monthly reversionary annuity shall be determined
by multiplying the amount of the monthly reduction in the policeman's annuity
by the applicable factor in the following table based on the age of the
policeman and the difference in the age of the policeman and the age of
the policeman's spouse at the starting date of the policeman's annuity.
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(Source: P.A. 83-823.)
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(40 ILCS 5/5-133) (from Ch. 108 1/2, par. 5-133)
Sec. 5-133.
Widow's prior service annuity.
"Widow's Prior Service Annuity" shall be credited for the widow of a
male present employee for service prior to the effective date, in
accordance with the "Policemen's Annuity and Benefit Fund Act of the
Illinois Municipal Code" and this Article.
The amounts so credited shall be improved by interest at 4% per annum
during the employee's service subsequent to the effective date until he
attains age 57.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-134) (from Ch. 108 1/2, par. 5-134)
Sec. 5-134.
Widow's annuity.
"Widow's Annuity" shall be provided for the widows of policemen for
service after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-135) (from Ch. 108 1/2, par. 5-135)
Sec. 5-135.
Amount of present employee's widow's annuity on effective date.
The amount of annuity for the wife of a present employee who attains age
57 or more on or before the effective date shall be fixed on the effective
date as of the wife's age at the time the employee attained age 57. The
widow shall receive annuity, from the date of the employee's death, of such
amount as can be provided from the employee's credit for such annuity on
the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-136) (from Ch. 108 1/2, par. 5-136)
Sec. 5-136. Widow's annuity - all employees attaining age 57 in
service. The annuity for the wife of an employee who attains age 57
in service, and who thereafter withdraws from or dies in service, shall
be fixed, in the case of a future entrant, as of her age at the date of
his withdrawal or death, whichever first occurs, and, in the case of a
present employee, as of her age when the employee withdraws from or
dies in service.
The widow is entitled to annuity from and after the employee's
death, as follows:
If the employee withdraws from service and enters upon annuity,
the annuity shall be that amount provided from his credit for widow's
annuity, and widow's prior service annuity (if a present employee), at
the time he withdraws from or dies in service after attainment of age
57, but shall not be less than 40% of the amount of annuity earned by
the employee at the time of his withdrawal from the service after his
attainment of age 57 or not less than 40% of the amount of annuity
accrued to the credit of the employee on date of his death in service
after his attainment of age 57 computed according to Section 5-132,
subject to the limitations of Section 5-148, but shall not be less
than $100 per month. If the widow is more than 5 years younger than
her husband, the 40% annuity for the widow shall be reduced to the
actuarial equivalent of her attained age, on the basis of the Combined
Annuity Table 3% interest.
The widow of a policeman who retires from service after December
31, 1975 or who dies while in service after December 31, 1975 and on
or after the date on which he becomes eligible to retire under Section
5-132 shall, if she is otherwise eligible for a widow's annuity under
this Article and if the amount determined under this paragraph is more
than the total combined amounts of her widow's annuity and widow's
prior service annuity, or the annuities provided hereinbefore in this
Section receive, in lieu of such other widow's annuity and widow's
prior service annuity, or annuities provided hereinbefore in this
Section a widow's annuity equal to 40% of the amount of annuity which her
deceased policeman husband received as of the date of his retirement on
annuity or if he dies in the service prior to retirement on annuity a
widow's annuity equal to 40% of the amount of annuity her deceased
policeman husband would have been entitled to receive if he had retired
on the day before the date of his death in the service, except that if
the age of the wife at date of retirement or the age of the widow at
date of death in the service is more than 5 years younger than her
policeman husband, the amount of such annuity shall be reduced by 1/2
of 1% for each such month and fraction thereof that she is more than
5 years younger at date of retirement or at date of death subject to
a maximum reduction of 50%. However, no annuity under this Section
shall exceed $500.00 per month.
This Section does not apply to the widow of any former policeman
who was receiving an annuity from the fund on December 31, 1975 and
who reenters service as a policeman, unless he renders at least 3
years of additional service after re-entry.
(Source: P.A. 97-813, eff. 7-13-12.)
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(40 ILCS 5/5-136.1) (from Ch. 108 1/2, par. 5-136.1)
Sec. 5-136.1.
(a) Notwithstanding the other provisions of this
Article, the widow of a policeman (1) who retires on or after January 1, 1986,
and subsequently dies while receiving a retirement annuity, or (2) dies
on or after January 1, 1991 while receiving a retirement annuity without
regard to the date of retirement, or (3) dies after
December 31, 1985, while an active policeman with at least 1 1/2 years of
creditable service, may in lieu of any other widow's annuity have the
amount of widow's annuity calculated in accordance with this Section.
(b) If the deceased policeman was an active policeman at the time of
his death and had at least 1 1/2 years of creditable service, the widow's
annuity shall be 30% of the annual maximum salary attached to the
classified civil service position of a first class patrolman at the time of
his death. If such policeman dies on or after January 1, 1991, the
widow's annuity shall be the greater of (1) 30% of the annual maximum
salary attached to the classified civil service position of a first class
patrolman at the time of his death, or (2) 50% of the retirement annuity
the deceased policeman would have been eligible to receive if he had
retired from service on the day before his death.
This annuity is fixed at the time of the policeman's death and
does not increase. This annuity shall not be limited to the maximum dollar
amount in effect for widows' annuities at the time of the policeman's death.
(c) If the deceased policeman was receiving a retirement annuity at the
time of his death, the widow's annuity shall be equal to 40% of the
policeman's annuity at the time of the policeman's death until December
31, 1987, and 50% of such policeman's annuity thereafter. The increase in
widow's annuity provided by this amendatory Act of 1987 shall apply to all
annuities calculated under this subsection (c). This annuity
shall not be limited to the maximum dollar amount in effect for widows'
annuities at the time of the policeman's death or retirement.
(d) This Section shall in no way limit any annuity otherwise payable
under this Article.
(e) The widow's annuity of any widow of a policeman who retired on or
after January 1, 1986 and died while receiving a retirement annuity, which
was not calculated under this Section because the deceased policeman had
reached age 63 prior to January 1, 1986, shall be recalculated, effective
January 1, 1991, in accordance with the provisions of this Section,
notwithstanding Section 1-103.1.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/5-137) (from Ch. 108 1/2, par. 5-137)
Sec. 5-137.
Widow's annuity - All employees - Death in service.
The widow
of a present employee or future entrant who dies in service is entitled
to receive annuity, from the date of his death,
of the amount provided from the sums to his credit at his death for age and
service annuity, widow's annuity, and, if a present employee, prior service
annuity and widow's prior service annuity; but no part of such sums so
credited which represent contributions by the city shall be used to provide
annuity for the widow in excess of that to which she would have had a right if
the employee had lived and remained in service at final salary until age
63 or until such date as he would have retired by operation of law,
whichever is later, and the amount of annuity for his wife were then fixed. The annuity
shall be computed as of the widow's age on the date of the employee's
death.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-138) (from Ch. 108 1/2, par. 5-138)
Sec. 5-138.
Widow's annuity - All employees - Withdrawal after age 50.
The amount of widow's annuity and of widow's prior service annuity
for the wife of an employee who (1) attained age 50 or more while in service
and (2) served 10 or more years and (3)
withdraws from service, shall be fixed as of her age at the time of
withdrawal.
The annuity, payable after the date of the employee's death, shall be
such amount as can be provided from the following sums to his credit on
the date the annuity was fixed:
1. If service is 20 or more years, the entire sum credited for
widow's annuity and, for a present employee, widow's prior service
annuity, but shall not be less than $100 per month, or
2. If service is 10 or more but less than 20 years, the entire sum
credited for widow's annuity from employee contributions, plus the sum
obtained by applying 1/10 of the entire sum credited for widow's annuity
and, for a present employee, widow's prior service annuity, from
contributions by the city, for each year of service after the first 10
years.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-139) (from Ch. 108 1/2, par. 5-139)
Sec. 5-139.
Widow's annuity - All employees - Withdrawal before age 50
and death after age 50.
The widow's annuity and widow's prior service annuity for the wife of
an employee who withdraws after service of 10 or more years before age
50 and later attains such age and dies while out of service, shall be
fixed as of her age at the time the employee becomes age 50. She shall
receive annuity, from the date of the employee's death, of such amount
as can be provided from the following sums to his credit on the date the
annuity was fixed:
1. If service is 20 or more years, the sum credited for widow's
annuity and, for a present employee, widow's prior service annuity;
2. If service is 10 or more but less than 20 years, the sum credited
for widow's annuity from employee contributions, plus 1/10 of the sum
credited for widow's annuity and, for a present employee, widow's prior
service annuity, from contributions by the city, for each year of
service after the first 10 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-140) (from Ch. 108 1/2, par. 5-140)
Sec. 5-140.
Widow's annuity - All employees - Withdrawal and death
before age 50.
The widow of an employee who (1) has served 10 or more years and (2)
withdraws before age 50 and (3) dies out of service before age 50 shall
receive annuity, from the date of his death, of the amount provided from
the following sums accumulated to his credit on the date of his death:
1. If service is 20 or more years, the entire sum credited for age
and service annuity, widow's annuity, and, if a present employee, prior
service annuity and widow's prior service annuity; or
2. If service is 10 or more but less than 20 years, the sum
accumulated to his credit for age and service annuity, widow's annuity,
and, if a present employee, prior service annuity from employee
contributions, plus 1/10 of the
sum credited for age and service
annuity, widow's annuity, and, for a present employee, prior service
annuity and widow's prior service annuity, from contributions by the
city, for each year of service after the first 10 years.
The annuity shall be computed as of the widow's age at the date of
the employee's death.
No part of contributions by the city shall be used to provide annuity
for a widow in excess of that which she would have had a right to
receive if the employee had lived until age 50 and had not re-entered
service and the annuity were then fixed for the widow, as of her age on
the date when her husband would have attained age 50.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-141) (from Ch. 108 1/2, par. 5-141)
Sec. 5-141.
Widow's annuity - Re-entry and new fixation.
Annuity in excess of that fixed in Sections 5-138 and 5-139 shall not
be granted to the widow of an employee described therein, unless the
employee re-enters the service, in which case the annuity for
his wife shall be fixed when he
again withdraws, as of her age when such
annuity is fixed.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-142) (from Ch. 108 1/2, par. 5-142)
Sec. 5-142.
Widow's annuity-Determination of age of widow.
Widow's annuity shall be computed as herein provided, except that the
maximum age of a widow for any annuity purposes shall not be more than 5
years less than the age of the employee.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-143) (from Ch. 108 1/2, par. 5-143)
Sec. 5-143.
Widow's annuity - Limitations after fixation.
Except as otherwise provided in this Article (a) no
employee or city contributions for widow's annuity shall be made after
such annuity has
been fixed; (b) no annuity in excess of that fixed in accordance with
this Article shall be granted; and (c) no service rendered after the
time of fixing shall be considered for widow's annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-144) (from Ch. 108 1/2, par. 5-144) Sec. 5-144. Death from injury in the performance of acts of duty; compensation annuity and supplemental annuity. (a) Beginning January 1, 1986, and without regard to whether or not the annuity in question began before that date, if the annuity for the widow of a policeman whose death, on or after January 1, 1940, results from injury incurred in the performance of an act or acts of duty, is not equal to the sum hereinafter stated, "compensation annuity" equal to the difference between the annuity and an amount equal to 75% of the policeman's salary attached to the position he held by certification and appointment as a result of competitive civil service examination that would ordinarily have been paid to him as though he were in active discharge of his duties shall be payable to the widow until the policeman, had he lived, would have attained age 63. The total amount of the widow's annuity and children's awards payable to the family of such policeman shall not exceed the amounts stated in Section 5-152. For the purposes of this Section only, the death of any policeman as a result of the exposure to and contraction of COVID-19, as evidenced by either (i) a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or (ii) a confirmed diagnosis of COVID-19 from a licensed medical professional, shall be rebuttably presumed to have been contracted while in the performance of an act or acts of duty and the policeman shall be rebuttably presumed to have been fatally injured while in active service. The presumption shall apply to any policeman who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before January 31, 2022 (including the period between December 31, 2020 and the effective date of this amendatory Act of the 101st General Assembly); except that the presumption shall not apply if the policeman was on a leave of absence from his or her employment or otherwise not required to report for duty for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when a policeman contracted COVID-19 under this paragraph, the date of contraction is either the date that the policeman was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. The provisions of this Section, as amended by Public Act 84-1104, including the reference to the date upon which the deceased policeman would have attained age 63, shall apply to all widows of policemen whose death occurs on or after January 1, 1940 due to injury incurred in the performance of an act of duty, regardless of whether such death occurred prior to September 17, 1969. For those widows of policemen that died prior to September 17, 1969, who became eligible for compensation annuity by the action of Public Act 84-1104, such compensation annuity shall begin and be calculated from January 1, 1986. The provisions of this amendatory Act of 1987 are intended to restate and clarify the intent of Public Act 84-1104, and do not make any substantive change. (b) Upon termination of the compensation annuity, "supplemental annuity" shall become payable to the widow, equal to the difference between the annuity for the widow and an amount equal to 75% of the annual salary (including all salary increases and longevity raises) that the policeman would have been receiving when he attained age 63 if the policeman had continued in service at the same rank (whether career service or exempt) that he last held in the police department. The increase in supplemental annuity resulting from this amendatory Act of the 92nd General Assembly applies without regard to whether the deceased policeman was in service on or after the effective date of this amendatory Act and is payable from July 1, 2002 or the date upon which the supplemental annuity begins, whichever is later. (c) Neither compensation nor supplemental annuity shall be paid unless the death of the policeman was a direct result of the injury, or the injury was of such character as to prevent him from subsequently resuming service as a policeman; nor shall compensation or supplemental annuity be paid unless the widow was the wife of the policeman when the injury occurred.(Source: P.A. 103-692, eff. 7-19-24.) |
(40 ILCS 5/5-145) (from Ch. 108 1/2, par. 5-145)
Sec. 5-145.
Minimum annuity to widow of present employee or of former policeman who
re-entered service.
If the annuity for a widow of a present employee, or of a policeman in
the police service of the city prior to but not on the day before the
effective date, who re-entered service after that date and before age 57 is
less than the amount of annuity specified in this section, the widow shall
receive the following annuity after the present employee's or policeman's
death: an amount equal to the sum produced by multiplying $30 by the number
of years of service, not in excess of 20, including his last year of
service but in no case less than 7 1/2% of his final salary.
The annuity shall be paid to the widow of a present employee or
policeman who (1) dies in service, or (2) withdraws and enters upon
annuity, or (3) has served 20 or more years and withdraws before age 50 and
dies before he enters upon annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-146) (from Ch. 108 1/2, par. 5-146)
Sec. 5-146. Wives and widows not entitled to annuities. The following wives or widows have no right to annuity from the fund:
(a) A wife or widow, married subsequent to the effective date, of a
policeman who dies in service, if the marriage occurred less than one year
prior to the policeman's death, except with respect to a policeman who dies in the performance of an act of duty, as
provided in Section 5-147 in cases where a widow
entitled to an annuity remarries after age 60, or when a widow entitled
to an annuity remarries prior to attaining age 60 and the marriage is
terminated, at any time thereafter, by dissolution of marriage, declaration
of invalidity of marriage or the death of the husband; if after an evidentiary hearing, however, the Board, at its sole discretion determines that special circumstances exist warranting payment of a widow's annuity, then and only then shall the Board have authority to grant and award the annuity that would have been otherwise available;
(b) A wife or widow of a policeman who withdraws, whether or not he
enters upon annuity, and dies out of service, if the marriage occurred
after the effective date and less than one year prior to the policeman's
death, and the widow was not his wife while he was in
service; if after an evidentiary hearing, however, the Board, at its sole discretion determines that special circumstances exist warranting payment of a widow's annuity, then and only then shall the Board have authority to grant and award the annuity that would have been otherwise available;
(c) A wife or widow of a policeman who (1) has served 10 or more
years, (2) dies out of service after he has withdrawn, and (3) has
received a refund of the sums to his credit for annuity, and such refund
has not been repaid in accordance with the other provisions of this Article;
(d) A wife or widow of a policeman who dies out of service after he
has withdrawn, and who has not served at least 10 years;
(e) A former wife of a policeman who has had a judgment of dissolution
of marriage from her policeman husband annulled, vacated or set aside by
court proceedings subsequent to the policeman's death, unless (1) the
proceedings were filed within 5 years after the date of dissolution of
marriage, and within 1 year after the policeman's death, and (2) the board
was made a party to the proceedings;
(f) A widow of a policeman who died prior to January 1, 1922, if she
had been denied a pension by the board of trustees of any police pension
fund existing in the city by operation of any other law;
(g) A widow of a policeman who has been denied a pension or annuity
by the board created by this Article and who files a petition for a
rehearing, or files a second application for annuity, unless the
petition for rehearing or second application is filed within 1 year from
the date upon which the annuity was denied by the board; provided, that
in the case of legal disability, the year of limitation
shall begin on the day after the termination of such disability.
(Source: P.A. 95-504, eff. 8-28-07.)
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(40 ILCS 5/5-147) (from Ch. 108 1/2, par. 5-147)
Sec. 5-147. Widow's marriage to terminate annuity. (a) Beginning on the effective date of this amendatory Act of the
95th General Assembly, a widow's annuity shall no longer be subject to
termination or suspension under this Section due to remarriage. Any widow's
annuity that was previously terminated or suspended under this Section by
reason of remarriage shall, upon application, be resumed as of the date of the
application, but in no event sooner than the effective date of this amendatory
Act. The resumption shall not be retroactive. This subsection (a) applies
regardless of whether or not the deceased policeman was in service on or after
the effective date of this amendatory Act of the 95th General Assembly.
(b) This subsection (b) does not apply on or after the effective date of
this amendatory Act of the 95th General Assembly.
Any annuity
granted to a widow shall be suspended when she remarries, unless she
remarries after attaining age 60 or the annuity was granted under Section
5-144 and the remarriage takes place after October 31, 1989.
Except as otherwise provided by this Section, if a widow remarries before reaching
age 60, annuity payment shall be suspended, but the widow's annuity
payments shall be resumed if the subsequent marriage ends either by dissolution of
marriage, declaration of invalidity of marriage or the death of the
husband. If a widow remarries after attaining age 60, or the annuity was
granted under Section 5-144 and the remarriage takes place after June 1,
1990, regardless of whether or not the deceased policeman was in service on
or after the effective date of this amendatory Act of 1991, the widow's
annuity shall continue without interruption.
If when a widow dies she
has not received, in form of annuity, an amount equal to the accumulated
employee contributions for widow's annuity,
the difference between such accumulated contributions and the sum
received by her, along with any part of the accumulated contributions
for age and service annuity remaining in the fund at her death shall be
refunded to the policemen's children, in equal parts to each; provided,
if any child is less than age 18, such part of any such amount required
to pay annuities to such children shall be transferred to the child's
annuity reserve. If no children or descendants thereof survive the
policeman, such refund shall be paid to the estate of the policeman. In
making refunds under this Section, no interest shall be considered upon
either the total of annuity payments made or the amounts subject to
refund.
(Source: P.A. 95-504, eff. 8-28-07.)
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(40 ILCS 5/5-147.1) (from Ch. 108 1/2, par. 5-147.1)
Sec. 5-147.1.
Widows-double annuity.
If any widow (1) receives any
annuity from the fund, and (2) after January 1, 1983 marries a policeman
who is a participant in this fund, and (3) such policeman dies and a second
widow's annuity becomes payable, the first widow's annuity provided for
such widow shall be cancelled at the time she accepts any payment of the
second widow's annuity. Any refund due because of such cancelled annuity
shall be paid to the widow.
(Source: P.A. 82-1044.)
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(40 ILCS 5/5-148) (from Ch. 108 1/2, par. 5-148)
Sec. 5-148.
Maximum annuities.
No annuity in excess of 75% of the
highest salary considered for annuity purposes in accordance with this
Article shall be payable to a policeman, or to the widow of a policeman
whose death results from injury incurred in the performance of an act of
duty. No amount of annuity in excess of $500 per month shall be payable
to the widow of a policeman whose death results from any cause other
than injury incurred in the performance of an act of duty, except as
provided in Section 5-136.1.
If, when a policeman's annuity is fixed, there is to his credit, for
such annuity, an amount in excess of that necessary to provide an
annuity of 75% of his highest salary, 7/24 of such excess shall be
refunded if the policeman is a future entrant; and if he is a present
employee, there shall be refunded, a part of such excess amount
proportionately equal to that part of the entire amount to his credit
for such annuity purposes, which the sum that has resulted from salary
deductions bears to such entire amount.
Until January 1, 1986, if, when a widow's annuity is fixed, there is
to the policeman's
credit, for widow's annuity, an amount in excess of that necessary to
provide an annuity of $500 per month, 1/3 of such excess shall be
refunded to the policeman if he is a future entrant; and, if he is a
present employee, there shall be refunded a part of such excess amount
proportionately equal to that part of the entire amount to his credit
for such annuity purposes which the sum that has resulted from
employee contributions bears
to such entire amount. If the widow's annuity is fixed on or after
January 1, 1986, no refund of excess contributions shall be made under this paragraph.
Until January 1, 1986, if at the time of the death of a policeman
resulting from injury
incurred in the performance of an act of duty, there is to his credit,
for widow's annuity, an amount in excess of that necessary to provide an
annuity of 75% of his highest salary, or $500 per month if death results
from any other cause, 1/3 of such excess shall be refunded to his widow
if he was a future entrant; and, if he was a present employee, there
shall be refunded to his widow a part of such excess amount
proportionately equal to that part of the entire amount to his credit
for such annuity purposes which the sum that has resulted from employee's
contributions bears to such entire amount. If employee dies in service
on or after January 1, 1986, no refund of excess contributions shall be
made under this paragraph.
This amendatory Act of 1972 does not increase the amount of any
widow's annuity which is fixed before the effective date of this
amendatory Act of 1972.
(Source: P.A. 84-1104.)
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(40 ILCS 5/5-149) (from Ch. 108 1/2, par. 5-149)
Sec. 5-149.
Mortality tables and interest rates.
(a) Any annuity fixed for or granted to a present employee or future
entrant who entered service prior to January 1, 1954, or to his widow,
shall be computed according to the American Experience Table of Mortality.
(b) Annuities for future entrants entering service after December 31,
1953, and for the widows and persons having a right to annuities or
benefits through such future entrants, shall be computed according to the
Combined Annuity Mortality Table.
(c) All sums to the credit of a policeman for annuity purposes at the
time he withdraws from service before age 50 shall be improved to his
credit thereafter by interest, while he is out of service and has not
entered upon annuity, until he attains age 57. Any annuity fixed for or
granted to present employees or future entrants who entered the service
prior to January 1, 1954, and who have not re-entered the service prior to
the time the annuity has been fixed or granted, and any annuity fixed for
or granted their widows, shall be computed according to the American
Experience Table of Mortality.
(d) The amount of widow's annuity or widow's prior service annuity which
shall be fixed for the wife of any policeman while he is alive shall be a
reversionary annuity provided from the sum to his credit for widow's
annuity or widow's prior service annuity.
(e) Interest on the annuities herein provided for policemen and their
beneficiaries shall be computed in accordance with Section 5-120.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-150) (from Ch. 108 1/2, par. 5-150)
Sec. 5-150.
Whenever the sum to a policeman's credit for annuity for him
or his widow is insufficient, at the time the amount of such annuity is
fixed, to provide a life annuity of $10 a month, a term annuity of $10 a
month shall be payable for a period of years and months to be computed from
his credits according to the actuarial tables in use by the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-151) (from Ch. 108 1/2, par. 5-151)
Sec. 5-151.
Child's annuity.
A child's annuity shall be provided for unmarried natural or adopted
children of policemen, payable monthly, from the date of the policeman
parent's death until the child's attainment of age 18 except as limited by the
provisions of Section 5-152. The first payment shall be payable one month after
the date upon which the annuity accrues.
(Source: P.A. 79-881.)
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(40 ILCS 5/5-152) (from Ch. 108 1/2, par. 5-152)
Sec. 5-152. Child's annuity - Conditions - Amount. A child's
annuity shall be payable in the following cases of policemen who die
on or after the effective date: (a) A policeman whose death results
from injury incurred in the performance of an act or acts of duty;
(b) a policeman who dies in service from any cause; (c) a policeman
who withdraws upon or after attainment of age 50 and who enters upon
or is eligible for annuity; (d) a present employee with at least 20
years of service who dies after withdrawal, whether or not he has
entered upon annuity.
Only one annuity shall be granted and paid for the benefit of
any child if both parents have been policemen.
The annuity shall be paid, without regard to the fact that
the death of the deceased policeman parent may have occurred prior to
the effective date of this amendatory Act of 1975, in
an amount equal to 10% of the
annual maximum salary attached to the classified civil
service position of a first class patrolman
on July 1, 1975, or the date of the policeman's death, whichever is later,
for each child while a widow or widower of the
deceased policeman survives and in
an amount equal to 15% of the annual maximum
salary attached to the classified civil service position of a first
class patrolman on July 1, 1975, or the date of the policeman's death, whichever
is later, while no widow
or widower shall survive,
provided that if the combined annuities for the widow
and children of a policeman who dies on or after September 26, 1969,
as the result of an act of duty, or for the children of such
policeman in any case wherein a widow or widower does not exist,
exceed the salary that would ordinarily have been paid to him if
he had been in the active discharge of his duties, all such annuities shall be
reduced pro rata so that the combined annuities for the family shall
not exceed such limitation. The compensation portion of the annuity
of the widow shall not be considered in making such reduction.
No age limitation in this Section or Section 5-151 shall apply to a child who is so physically or mentally handicapped as to be unable to support himself or herself. Benefits payable under this Section shall not be reduced or
terminated by reason of any child's attainment of age 18 if he is then
dependent by reason of a physical or mental disability but shall continue
to be paid as long as such dependency continues. For the purposes of this
subsection, "disability" means inability to engage in any substantial
gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less
than 12 months.
In the case of a family of a policeman who dies on or after
September 26, 1969, as the result of any cause other than the performance
of an act of duty, in which annuities for such family exceed an amount
equal to 60% of the salary that would ordinarily have been paid to
him if he had been in the active discharge of his duties, all such
annuities shall be reduced pro rata so that the combined annuities shall
not exceed such limitation.
Child's annuity shall be paid to the parent providing for
the child, unless another person is appointed by a court of law as
the child's guardian.
(Source: P.A. 95-279, eff. 1-1-08; 95-504, eff. 8-28-07; 95-876, eff. 8-21-08.)
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(40 ILCS 5/5-152.1)
Sec. 5-152.1.
Parent's annuity.
(a) A parent's annuity shall be provided for
the natural parent or parents of a policeman who dies on or after the
effective date of this amendatory Act of 1996 while (i) in active service,
(ii) disabled and in receipt of or pending receipt of a disability benefit,
(iii) on leave of absence with whole or part pay, (iv) on leave of absence
without pay during a period of not more than 3 months in the aggregate, (v)
in receipt of annuity granted after 20 years of service, or (vi) out of the
service after 20 years of service and pending receipt of annuity to which the
policeman has a right upon attainment of age 50 or more. However, the parent's
annuity is payable only if there is no surviving spouse or child entitled to
an annuity as a result of the policeman's death, and satisfactory proof is
submitted to the board that the policeman was contributing to the support of
the parent or parents at the time of death.
(b) Beginning July 1, 1997, a parent's annuity shall be available to
the natural parent or parents of a policeman who died before August 9, 1996
while (i) in active service, (ii) disabled and in receipt of or pending receipt
of a disability benefit, (iii) on leave of absence with whole or part pay, (iv)
on leave of absence without pay during a period of not more than 3 months in
the aggregate, (v) in receipt of annuity granted after 20 years of service,
or (vi) out of the service after 20 years of service and pending receipt of
annuity to which the policeman has a right upon attainment of age 50 or more.
However, the parent's annuity is payable only if there is no surviving spouse
or child entitled to an annuity as a result of the policeman's death, and
satisfactory proof is submitted to the board that the policeman was
contributing to the support of the parent or parents at the time of death.
The parent's annuity shall begin no earlier than the first day of the month
following the month in which the application for parent's annuity is received
by the Fund.
(c) The parent's annuity shall be 18% of the current annual salary
attached to the classified position held by the policeman at the time of death
or withdrawal from service for each eligible surviving parent, payable on a
monthly basis.
(Source: P.A. 89-643, eff. 8-9-96; 90-511, eff. 8-22-97.)
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(40 ILCS 5/5-153) (from Ch. 108 1/2, par. 5-153) Sec. 5-153. Death benefit. (a) Effective January 1, 1962, an ordinary death benefit is payable on account of any policeman in service and in receipt of salary on or after such date, which benefit is in addition to all other annuities and benefits herein provided. This benefit is payable upon death of a policeman: (1) occurring in active service while in receipt of | ||
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(2) on an authorized and approved leave of absence, | ||
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(3) receiving duty disability or ordinary disability | ||
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(4) occurring within 60 days from the date of | ||
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(5) occurring on retirement and while in receipt of | ||
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(b) The ordinary death benefit is payable to such beneficiary or beneficiaries as the policeman has nominated by written direction duly signed and acknowledged before an officer authorized to take acknowledgments, and filed with the board. If no such written direction has been filed or if the designated beneficiaries do not survive the policeman, payment of the benefit shall be made to his estate. (c) Until December 31, 1977, if death occurs prior to retirement on annuity and before the policeman's attainment of age 50, the amount of the benefit payable is $6,000. If death occurs prior to retirement, at age 50 or over, the benefit of $6,000 shall be reduced $400 for each year (commencing on the policeman's attainment of age 50, and thereafter on each succeeding birthdate) that the policeman's age, at date of death, is more than age 50, but in no event below the amount of $2,000. However, if death results from injury incurred in the performance of an act or acts of duty, prior to retirement on annuity, the amount of the benefit payable is $6,000 notwithstanding the age attained. Until December 31, 1977, if the policeman's death occurs while he is in receipt of an annuity, the benefit is $2,000 if retirement was effective upon attainment of age 55 or greater. If the policeman retired at age 50 or over and before age 55, the benefit of $2,000 shall be reduced $100 for each year or fraction of a year that the policeman's age at retirement was less than age 55 to a minimum payment of $1,500. After December 31, 1977, and on or before January 1, 1986, if death occurs prior to retirement on annuity and before the policeman's attainment of age 50, the amount of the benefit payable is $7,000. If death occurs prior to retirement, at age 50 or over, the benefit of $7,000 shall be reduced $400 for each year (commencing on the policeman's attainment of age 50, and thereafter on each succeeding birthdate) that the policeman's age, at date of death, is more than age 50, but in no event below the amount of $3,000. However, if death results from injury incurred in the performance of an act or acts of duty, prior to retirement on annuity, the amount of the benefit payable is $7,000 notwithstanding the age attained. After December 31, 1977, and on or before January 1, 1986, if the policeman's death occurs while he is in receipt of an annuity, the benefit is $2,250 if retirement was effective upon attainment of age 55 or greater. If the policeman retired at age 50 or over and before age 55, the benefit of $2,250 shall be reduced $100 for each year or fraction of a year that the policeman's age at retirement was less than age 55 to a minimum payment of $1,750. After January 1, 1986, if death occurs prior to retirement on annuity and before the policeman's attainment of age 50, the amount of benefit payable is $12,000. If death occurs prior to retirement, at age 50 or over, the benefit of $12,000 shall be reduced $400 for each year (commencing on the policeman's attainment of age 50, and thereafter on each succeeding birthdate) that the policeman's age, at date of death, is more than age 50, but in no event below the amount of $6,000. However, if death results from injury in the performance of an act or acts of duty, prior to retirement on annuity, the amount of benefit payable is $12,000 notwithstanding the age attained. After January 1, 1986, if the policeman's death occurs while he is in receipt of an annuity, the benefit is $6,000. (d) For the purposes of this Section only, the death of any policeman as a result of the exposure to and contraction of COVID-19, as evidenced by either (i) a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or (ii) a confirmed diagnosis of COVID-19 from a licensed medical professional, shall be rebuttably presumed to have been contracted while in the performance of an act or acts of duty and the policeman shall be rebuttably presumed to have been fatally injured while in active service. The presumption shall apply to any policeman who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before January 31, 2022 (including the period between December 31, 2020 and the effective date of this amendatory Act of the 101st General Assembly); except that the presumption shall not apply if the policeman was on a leave of absence from his or her employment or otherwise not required to report for duty for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when a policeman contracted COVID-19 under this subsection, the date of contraction is either the date that the policeman was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. (Source: P.A. 103-692, eff. 7-19-24.) |
(40 ILCS 5/5-154) (from Ch. 108 1/2, par. 5-154) Sec. 5-154. Duty disability benefit; child's disability benefit. (a) An active policeman who becomes disabled on or after the effective date as the result of injury incurred on or after such date in the performance of an act of duty, has a right to receive duty disability benefit during any period of such disability for which he does not have a right to receive salary, equal to 75% of his salary, as salary is defined in this Article, at the time the disability is allowed; or in the case of a policeman on duty disability who returns to active employment at any time for a period of at least 2 years and is again disabled from the same cause or causes, 75% of his salary, as salary is defined in this Article, at the time disability is allowed; provided, however, that: (i) If the disability resulted from any physical | ||
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(ii) Beginning January 1, 1996, no duty disability | ||
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(iii) If the Board finds that the disability of the | ||
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(b) The policeman shall also have a right to child's disability benefit of $100 per month for each unmarried child, the issue of the policeman, less than age 18, but the total amount of child's disability benefit shall not exceed 25% of his salary as defined in this Article. The increase in child's disability benefit provided by this amendatory Act of the 92nd General Assembly applies beginning January 1, 2000 to all such benefits payable on or after that date, regardless of whether the disabled policeman is in active service on or after the effective date of this amendatory Act. (c) Duty disability benefit shall be payable until the policeman becomes age 63 or would have been retired by operation of law, whichever is later, and child's disability benefit shall be paid during any such period of disability until the child attains age 18. Thereafter the policeman shall receive the annuity provided in accordance with the other provisions of this Article. (d) A policeman who suffers a heart attack during the performance and discharge of his or her duties as a policeman shall be considered injured in the performance of an act of duty and shall be eligible for all benefits that the City provides for police officers injured in the performance of an act of duty. This subsection (d) is a restatement of existing law and applies without regard to whether the policeman is in service on or after the effective date of Public Act 89-12 or this amendatory Act of 1996. (e) For the purposes of this Section only, any policeman who becomes disabled as a result of exposure to and contraction of COVID-19, as evidenced by either a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or a confirmed diagnosis of COVID-19 from a licensed medical professional, shall: (1) be rebuttably presumed to have contracted | ||
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(2) be rebuttably presumed to have been injured while | ||
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(3) be entitled to receive a duty disability benefit | ||
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The presumption shall apply to any policeman who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before January 31, 2022; except that the presumption shall not apply if the policeman was on a leave of absence from his or her employment or otherwise not required to report for duty for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when a policeman contracted COVID-19 under this paragraph, the date of contraction is either the date that the policeman was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. It is the intent of the General Assembly that the change made in this subsection (e) by this amendatory Act shall apply retroactively to March 9, 2020, and any policeman who has been previously denied a duty disability benefit that would otherwise be entitled to duty disability benefit under this subsection (e) shall be entitled to retroactive benefits and duty disability benefit. (Source: P.A. 103-2, eff. 5-10-23; 103-692, eff. 7-19-24.) |
(40 ILCS 5/5-154.1) (from Ch. 108 1/2, par. 5-154.1)
Sec. 5-154.1.
Occupational disease disability benefit.
(a) The General Assembly finds that service in the police
department requires police officers in times of stress
and danger to perform unusual tasks; that police officers are
subject to exposure to extreme heat or extreme
cold in certain seasons while performing their duties; and that these
conditions exist and arise out of or in the course of employment.
(b) Any police officer with at least 10 years of service who suffers a
heart attack or any other disabling heart disease but is not entitled to a
benefit under Section 5-154 is entitled to receive an occupational disease
disability benefit under this Section. The occupational disease disability
benefit shall be 65% of the salary attached to the rank held by the police
officer in the police service at the time of his or her removal from the police
department payroll. However, no occupational disease disability benefit that
has been payable under this Section for at least 10 years shall be less than
50% of the current salary attached from time to time to the rank held by the
police officer at the time of his or her removal from the police department
payroll.
The police officer is also entitled to a child's disability benefit of
$100 per month for each natural or legally adopted unmarried child
less than age 18 dependent upon the police officer for support. The total
child's disability benefit shall not exceed 10% of the police officer's salary
at the time of removal from the police department payroll. The increase
in child's disability benefit provided by this amendatory Act of the 92nd
General Assembly applies beginning January 1, 2000 to all such benefits payable
on or after that date, regardless of whether the disabled policeman is in
active service on or after the effective date of this amendatory Act.
The occupational disease disability benefit is payable during the period of
disability until the police officer attains age 63 or compulsory retirement
age, whichever occurs later; thereafter the police officer shall receive the
benefits provided under the other provisions of this Article. If the police
officer ceases to be disabled, the occupational disease disability benefit
shall cease.
The child's disability benefit is payable during the period of disability
until the child attains age 18 or marries, whichever event occurs first,
except that a benefit payable on account of a child under this Section shall
not be reduced or terminated by reason of the child's attainment of age 18
if he or she is then dependent by reason of a physical or mental disability,
but shall continue to be paid as long as the child's dependency and
disability continue.
(Source: P.A. 92-52, eff. 7-12-01.)
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(40 ILCS 5/5-155) (from Ch. 108 1/2, par. 5-155)
Sec. 5-155. Ordinary disability benefit. A policeman less than age 63 who becomes disabled after the
effective date as the result of any cause other than injury incurred in
the performance of an act of duty, shall receive ordinary disability
benefit during any period or periods of disability exceeding 30 days,
for which he does not have a right to receive any part of his salary.
Payment of such benefit shall not exceed, in the aggregate, throughout the
total service of the policeman, a period equal to one-fourth of the
service rendered to the city prior to the time he became disabled, nor
more than 5 years. In computing such period of service, the time that
the policeman received ordinary disability benefit shall not be
included.
When a disabled policeman becomes age 63 or would have been retired by
operation of law, whichever is later, the disability benefit
shall cease. The policeman, if still disabled, shall thereafter receive
such annuity as is provided in accordance with other provisions of this
Article.
Ordinary disability benefit shall be 50% of the policeman's salary,
as salary is defined in this Article (including the limitation in Section 5-238 if applicable), at the time disability occurs.
Until September 1, 1969, before any payment, an amount equal to the sum
ordinarily deducted from the policeman's salary for all annuity purposes
for the period for which payment of ordinary disability benefit is made
shall be deducted from such payment and credited as a deduction from
salary for such period. Beginning September 1, 1969, the city shall also
contribute all amounts ordinarily contributed by it for annuity purposes
for the policeman as if he were in active discharge of his duties. Such
sums so credited shall be regarded, for annuity and refund purposes, as
sums contributed by the policeman.
(Source: P.A. 99-905, eff. 11-29-16.)
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(40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
Sec. 5-156.
Proof of disability - Physical
examinations. Proof of duty, occupational disease, or ordinary disability
shall be furnished to the board by at least one licensed and practicing
physician appointed by the board. In cases where the board requests an
applicant to get a second opinion, the applicant must select a physician from
a list of qualified licensed and practicing physicians who specialize in the
various medical areas related to duty injuries and illnesses, as established
by the board. The board may require other evidence of disability. A disabled
policeman who receives a duty, occupational disease, or ordinary
disability benefit shall be examined at least once a year by one or more
physicians appointed by the board. When the disability ceases, the board shall
discontinue payment of the benefit, and the policeman shall be returned to
active service.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
Sec. 5-157. Administration of disability benefits.
(a) If a policeman who is granted duty or ordinary disability benefit
refuses to submit to examination by a physician appointed by the board, he
shall have no further right to receive the benefit.
(b) A policeman who has withdrawn from service while disabled and
entered upon annuity prior to the effective date, and who has thereafter been
reinstated as a policeman, shall have no right to ordinary disability
benefit in excess of the amount previously received unless he serves at
least one year after such reinstatement. This provision shall apply
throughout the duration of any disability incurred by the policeman within
one year after his reinstatement resulting from any cause other than injury
incurred in the performance of an act of duty.
(c) Until the effective date of this amendatory Act of the
92nd General Assembly, a policeman who assumes regular employment
for compensation, while in receipt of ordinary or duty disability benefits,
shall not be entitled to receive any amount of such disability benefits which,
when added to his compensation for such employment during disability, would
exceed 150% of the rate of salary which would be paid to him if he were working
in his regularly appointed civil service position as a policeman. The changes
made to this Section by Public Act 90-766 are not limited to persons in service on or after the effective
date of that Act.
Beginning on the effective date of this amendatory Act of the 92nd
General Assembly, the reduction of disability benefits due to compensation for
employment previously imposed under this subsection (c) no longer applies to
any person receiving a disability benefit under this Article, without regard to
whether the person is in service on or after that date. The removal of this
limitation by this amendatory Act is not retroactive and does not entitle any
person to the restoration of amounts previously reduced or withheld under this
subsection.
(d) Disability benefit shall not be paid for any part of time for which
a disabled policeman shall receive any part of his salary.
(e) Except as herein otherwise provided, disability benefit shall not
be paid for any disability based upon or caused by any mental or physical
defect which the policeman had at the time he entered the police service.
(f) Disability benefit shall not be allowed to any policeman who
re-enters the public service in any capacity where his salary is payable in
whole or in part by taxes levied upon taxable property in the city in which
this Article is in effect, or out of special revenues of any department of the
city. The disability benefit shall be suspended during the period he is in
the public service for compensation, and shall be resumed when he withdraws
from such service.
(g) If a policeman receives any compensation as temporary total disability, permanent total disability, a lump sum settlement award, or other payment under the Workers' Compensation Act or the Workers' Occupational Diseases Act as a result of the policeman's secondary employment for any injury resulting in disability, any disability benefit provided to the policeman for such disability under this Article shall be reduced by any compensation amount so received, if that compensation amount is less than the amount of the disability benefit. If the amount received as compensation exceeds the amount of the disability benefit, the policeman shall not receive the disability benefit until the disability benefit payable equals the amount of the compensation received without consideration of interest. The calculation of compensation received by the policeman as provided in this Section shall not take into consideration any benefits received under the Line of Duty Compensation Act. If the widow, child or children, or parent or parents of a policeman, or any of these persons, receives any compensation under the Workers' Compensation Act or the Workers' Occupational Diseases Act as a result of the policeman's secondary employment for any injury resulting in the policeman's death, the annuities provided under this Article for those beneficiaries shall be reduced by any compensation amount so received, if that compensation amount is less than the amount of the annuities. If the amount received as compensation exceeds the amount of the annuities for the widow, child or children, or parent or parents, the annuities shall not be payable until the accumulated value of the annuities equals the amount of the compensation received without consideration of interest. In making the adjustment, the annuity to the widow shall first be reduced. The calculation of compensation received by the widow, child or children, or parent or parents of a policeman, or any of these persons, as provided in this Section shall not take into consideration any benefits received under the Line of Duty Compensation Act or the Public Safety Officers Benefits Act of 1976, 34 U.S.C. 10281 et seq. (h) Any disability benefit paid in violation of this Section or of this
Article shall be construed to have been paid in error, and the amounts so
paid shall be charged as a debit in the account of any person to whom the
same was paid and shall be deducted from any moneys thereafter payable to
such person out of this fund, or to the widow, heirs or estate of such
person.
(Source: P.A. 102-806, eff. 5-13-22.)
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(40 ILCS 5/5-158) (from Ch. 108 1/2, par. 5-158)
Sec. 5-158.
Annuity after withdrawal while disabled.
A policeman whose disability continues beyond the maximum period of
eligibility for disability benefit and who withdraws while still disabled
and before age 50, shall receive annuity as can be provided from the
amounts accumulated from salary deductions and sums contributed by the city
for his retirement annuity. The annuity shall be computed as of the age of
the policeman on the date of his withdrawal.
The annuity to which the wife of any such policeman has a right from the
date of his death shall be fixed as of her age on the date of his
withdrawal. It shall be the amount provided from the total to his credit
for widow's annuity.
Upon the death of a policeman after he has entered upon annuity, any
unmarried child under age 18 shall have a right to receive annuity as
herein specified for a child of a policeman, subject to the limitations on
amounts payable to the family of a policeman.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-159) (from Ch. 108 1/2, par. 5-159)
Sec. 5-159.
Re-entry of pensioner or annuitant into service.
When
a policeman who has withdrawn after the effective date re-enters service,
any annuity previously granted to him and any annuity
fixed for his wife shall be cancelled. The policeman shall be credited
for annuity purposes with sums sufficient to provide annuities equal to
those cancelled for him and his wife, as of their respective ages on the
date of re-entrance into service.
Deductions from salary
and contributions by
the city for all purposes of this Article shall be made, and upon
subsequent retirement new annuities based upon the amount then to his
credit for annuity purposes and the entire term of his service shall be
fixed for the policeman and his wife.
If such policeman's wife, for whom annuity has been fixed prior to
his re-entrance into service, has died or her marriage to such policeman
has been dissolved or declared invalid before he re-entered service, no
part, of any sum or sums to the credit of such policeman for widow's
annuity or for widow's prior service annuity at the time annuity for
such wife was fixed shall be credited to such policeman at the time of
re-entry. No part of any such sum or sums shall be used to provide
annuity for any wife of such policeman who is his wife at any time after
his re-entry into service unless she was his wife at the time of his
withdrawal.
However, the payment of the pension or annuity shall continue if
re-entry into service is for the purpose of serving on a part time basis
as a street crossing guard.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-160) (from Ch. 108 1/2, par. 5-160)
Sec. 5-160.
Re-entry of policemen not in service on effective date.
A policeman who was not in the police service of the city on the day
prior to the effective date and who was in such service prior to that
day and who re-enters service thereafter and before age 57 shall receive
no credit for prior service and widow's prior service annuity; provided
that such service before the effective date shall be included in
computing service for age and service annuity and widow's annuity.
Deductions from salary
and contributions by the city for age and
service annuity and widow's annuity shall be made until he attains age
57.
Such policeman has a right to receive age and service annuity from
the date of his withdrawal, as of his age on such date, of the amount
provided from the credits for such annuity on such date.
The annuity to which his widow shall be entitled shall be fixed in
accordance with the provisions of this Article relating to annuities for
widows of future entrants.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-161) (from Ch. 108 1/2, par. 5-161)
Sec. 5-161.
Re-entry into service after receiving refund.
A policeman who has received a refund under this Article and who
subsequently re-enters the service and serves for a
period of 3 years may repay into this fund an amount equal to the refund,
together with interest at the applicable rate
from the date of refund to the date of repayment. If he dies in service
before the expiration of the 3 year period, his widow may repay such refunds.
If repayment is not made in full,
the board shall: (a) at the time of the policeman's retirement, refund to
him such portion of the sum previously refunded, which he has repaid; (b) in
the case of the policemen's death prior to retirement, refund to the widow
such portion of the sum previously refunded, unless within 60 days after
his death, the widow repays the full amount due. If there is no widow,
the amount shall be refunded in accordance with this Article.
(Source: P.A. 81-732.)
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(40 ILCS 5/5-162) (from Ch. 108 1/2, par. 5-162)
Sec. 5-162.
Annuity of former policeman who re-enters service.
A policeman who was not in the police service of the city on the day
prior to the effective date, and who was in such service prior to that
date, and who re-enters the service after that date and before age 57,
and who withdraws after he has completed at least 20 years of service
(at least 5 years of which shall be subsequent to his re-entry), and who
has contributed
to this fund or to its predecessor fund, or both, for a
period of at least 20 years, and for whom the amount of annuity provided
in accordance with foregoing provisions of this Article is less than the
amount stated hereinafter in this section, shall have a right to receive
annuity as follows:
(1) If he is age 50 or more when he withdraws, his annuity, payable
from the date of withdrawal, shall be 50% of the compensation for the
rank in the police department which he held by civil service appointment
on the day one year prior to the date of withdrawal; or
(2) If he is less than age 50 when he withdraws, his annuity,
payable from the date he attains age 50, shall be 50% of his salary at
the time of withdrawal but not in excess of $900 a year.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-163) (from Ch. 108 1/2, par. 5-163)
Sec. 5-163. Refund - General. (a) A policeman, without regard to his period of service, who
withdraws before age 50, and a policeman with less than 10 years of
service who withdraws before age 57, is entitled to a refund of the
amount deducted from his salary
for age and service annuity or Tier 2 monthly retirement annuity, for automatic annual increase in annuity as provided in Section 5-167.1, and for widow's
annuity or Tier 2 surviving spouse's annuity, together with interest at 1-1/2% per year on each
deduction from the date of each deduction
until the date of his
withdrawal from the service.
(b) A policeman may receive a refund until the annuity to which he
is entitled has been fixed. Thereafter, he shall have no such right of
refund.
(c) A policeman who withdraws the amount credited to him surrenders
and forfeits all rights to any annuity or other benefit from the fund,
for himself and for any other person or persons who might otherwise have
benefited through him. The rights so forfeited shall be restored to him,
his wife or widow and his children upon full repayment as provided in
Section 5-164.
If the policeman subsequently re-enters service before age 57, and
has not so repaid in full the amounts refunded the rights forfeited
shall not be restored, but the policeman shall retain the right (which
is also secured to the widow) to have the period of service represented
by the refunds counted in the compensation of length of service, except
as otherwise provided in Section 5-164.
(d) A policeman who has served less than 10 years who has not
received a refund shall have all amounts to his credit for purposes on
the date of his withdrawal improved by interest while he is out of
service until he attains age 57, if he subsequently re-enters the
service and attains a right to annuity.
(e) If a policeman elects to make additional contribution for past
service as provided in Section 5-174 and fails to pay such contributions
in full within the time specified in said section, a refund of the
amount so paid, with interest at 1-1/2% per year, compounded annually,
shall be refunded as provided in said section.
(f) If a policeman makes contributions in accordance with the
provisions of Section 5-174(b) and subsequently returns to the position
he holds by certification and appointment as the result of competitive
civil service examination, he shall receive a refund of such
contributions, upon application therefor, together with interest at
1-1/2% per year on each such deduction from the date
it was made to the
date of refund. Application for refund must be made before the annuity
to which he has a right has been fixed.
(Source: P.A. 99-905, eff. 11-29-16.)
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(40 ILCS 5/5-164) (from Ch. 108 1/2, par. 5-164)
Sec. 5-164.
Refund; re-entry into service; repayment of refund.
(a) A policeman who receives a refund and subsequently re-enters
service shall not thereafter become entitled to receive, nor shall his
widow or children be entitled to receive, any annuity or benefit under this
Article, unless he or his widow or children shall have repaid within one
year from July 1, 1929, or within one year from the date of re-entrance
into service after July 1, 1929, (whichever date shall apply) the amount
refunded, together with interest thereon from the date of refund to the
date such amounts are repaid. If repayment is made in full within the time
specified herein, all rights previously forfeited shall be restored; if not
such rights shall not be restored and no service credit for annuity or
disability benefit shall be allowed him or his widow for any period covered
by the refund, and the board shall refund to him or to his widow or
children, and if there be no such widow or children, then in accordance
with Section 5-167 such portion which has been repaid, together with
interest thereon to the expiration of the authorized period for the making
of such repayment. If the policeman received more than one refund, each
period during which he or his widow or children has a right to make full
repayment shall be computed separately.
(b) This Section does not limit the reestablishment of service credit
upon repayment of a refund under subsection (b) of Section 5-230.
(Source: P.A. 87-1265.)
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(40 ILCS 5/5-165) (from Ch. 108 1/2, par. 5-165)
Sec. 5-165.
Refund - widow's annuity contributions.
When an
unmarried policeman withdraws from service and enters upon
annuity, and when a policeman
becomes a widower while still in service, his accumulations for widow's
annuity shall then be refunded to him upon request. The widow of a
policeman who has received a refund under this Section shall have no right
to an annuity from the Fund, unless (1) the amount of the refund, plus
interest thereon from the date of refund to the date of payment, is repaid
to the Fund within one year after the date of marriage, and (2) the date of
marriage is at least one year prior to the date of death, and (3) the widow
otherwise qualifies under the terms of this Article.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-166) (from Ch. 108 1/2, par. 5-166)
Sec. 5-166.
Refund-Transfer of city contributions.
Whenever any amounts are refunded, the accumulated city contributions
shall be transferred to the prior service annuity reserve. If the amounts
refunded are repaid, the amount transferred to the prior service annuity
reserve shall be credited to the city contribution reserve for the account
of the policeman who received the refund, together with interest thereon
from the date of the refund to the date or dates of repayment.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-167) (from Ch. 108 1/2, par. 5-167)
Sec. 5-167.
Refund - Widows and children.
If the amount deducted from the salary
of a deceased policeman for
annuity purposes after the effective date has not been paid to him, and
in the case of a deceased married male policeman to him and his widow
together, in form of annuity before the death of the last of such
persons, the difference between such amount and the amount paid as
annuity or annuities, without interest upon either such amount, shall be
refunded to a surviving widow not entitled to receive an annuity under
this Article. If there is no widow, the refund shall be paid to the
children of the policeman, in equal parts, unless the policeman shall
direct in writing, sworn to before an officer authorized to administer
oaths in this State, and filed with the board before his death, that any
such amount shall be refunded to the widow or to any one or more of the
children, either or both. If any child is less than age 18, such part or
all of any such amount equal to the sum necessary to pay children's
annuities under this Article for each such child shall not be refunded,
but shall be transferred to the Child's Annuity Reserve. If there are no
children, the refund shall be payable to the executor or administrator
of the policeman's estate. If there is no executor or administrator, the
refund may be applied toward the payment of burial expenses of the
policeman, and any remainder shall be paid to his heirs who are living
immediately after the death of the widow according to the law pertaining
to the estates of deceased persons.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1) Sec. 5-167.1. Automatic increase in annuity; retirement from service after September 1, 1967. (a) A policeman who retires from service after September 1, 1967 with at least 20 years of service credit shall, upon either the first of the month following the first anniversary of his date of retirement if he is age 55 or over on that anniversary date, or upon the first of the month following his attainment of age 55 if it occurs after the first anniversary of his retirement date, have his then fixed and payable monthly annuity increased by 3% and such first fixed annuity as granted at retirement increased by an additional 3% in January of each year thereafter. Any policeman born before January 1, 1945 who qualifies for a minimum annuity and retires after September 1, 1967 but has not received the initial increase under this subsection before January 1, 1996 is entitled to receive the initial increase under this subsection on (1) January 1, 1996, (2) the first anniversary of the date of retirement, or (3) attainment of age 55, whichever occurs last. The changes to this Section made by Public Act 89-12 apply beginning January 1, 1996 and without regard to whether the policeman or annuitant terminated service before the effective date of that Act. Any policeman born before January 1, 1950 who qualifies for a minimum annuity and retires after September 1, 1967 but has not received the initial increase under this subsection before January 1, 2000 is entitled to receive the initial increase under this subsection on (1) January 1, 2000, (2) the first anniversary of the date of retirement, or (3) attainment of age 55, whichever occurs last. The changes to this Section made by this amendatory Act of the 92nd General Assembly apply without regard to whether the policeman or annuitant terminated service before the effective date of this amendatory Act. Any policeman born before January 1, 1955 who qualifies for a minimum annuity and retires after September 1, 1967 but has not received the initial increase under this subsection before January 1, 2005 is entitled to receive the initial increase under this subsection on (1) January 1, 2005, (2) the first anniversary of the date of retirement, or (3) attainment of age 55, whichever occurs last. The changes to this Section made by this amendatory Act of the 94th General Assembly apply without regard to whether the policeman or annuitant terminated service before the effective date of this amendatory Act. Any policeman born before January 1, 1966 who qualifies for a minimum annuity and retires after September 1, 1967 but has not received the initial increase under this subsection before January 1, 2017 is entitled to receive an initial increase under this subsection on (1) January 1, 2017, (2) the first anniversary of the date of retirement, or (3) attainment of age 55, whichever occurs last, in an amount equal to 3% for each complete year following the date of retirement or attainment of age 55, whichever occurs later. The changes to this subsection made by this amendatory Act of the 99th General Assembly apply without regard to whether the policeman or annuitant terminated service before the effective date of this amendatory Act. Any policeman born on or after January 1, 1966 who qualifies for a minimum annuity and retires after September 1, 1967 but has not received the initial increase under this subsection before January 1, 2023 is entitled to receive the initial increase under this subsection on (1) January 1, 2023, (2) the first anniversary of the date of retirement, or (3) attainment of age 55, whichever occurs last. The changes to this Section made by this amendatory Act of the 103rd General Assembly apply without regard to whether the policeman or annuitant terminated service before the effective date of this amendatory Act of the 103rd General Assembly. (b) Subsection (a) of this Section is not applicable to an employee receiving a term annuity. (c) To help defray the cost of such increases in annuity, there shall be deducted, beginning September 1, 1967, from each payment of salary to a policeman, 1/2 of 1% of each salary payment concurrently with and in addition to the salary deductions otherwise made for annuity purposes. The city, in addition to the contributions otherwise made by it for annuity purposes under other provisions of this Article, shall make matching contributions concurrently with such salary deductions. Each such 1/2 of 1% deduction from salary and each such contribution by the city of 1/2 of 1% of salary shall be credited to the Automatic Increase Reserve, to be used to defray the cost of the annuity increase provided by this Section. Any balance in such reserve as of the beginning of each calendar year shall be credited with interest at the rate of 3% per annum. Such deductions from salary and city contributions shall continue while the policeman is in service. The salary deductions provided in this Section are not subject to refund, except to the policeman himself, in any case in which: (i) the policeman withdraws prior to qualification for minimum annuity or Tier 2 monthly retirement annuity and applies for refund, (ii) the policeman applies for an annuity of a type that is not subject to annual increases under this Section, or (iii) a term annuity becomes payable. In such cases, the total of such salary deductions shall be refunded to the policeman, without interest, and charged to the Automatic Increase Reserve. (d) Notwithstanding any other provision of this Article, the Tier 2 monthly retirement annuity of a person who first becomes a policeman under this Article on or after the effective date of this amendatory Act of the 97th General Assembly shall be increased on the January 1 occurring either on or after (i) the attainment of age 60 or (ii) the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not be increased. For the purposes of this subsection (d), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds by November 1 of each year.(Source: P.A. 103-582, eff. 12-8-23.) |
(40 ILCS 5/5-167.2)
(from Ch. 108 1/2, par. 5-167.2)
Sec. 5-167.2. Retirement before September 1, 1967. A retired
policeman, qualifying for minimum annuity or who retired from service
with 20 or more years of service, before September 1, 1967, shall, in
January of the year following the year he attains the age of 65, or in
January of the year 1970, if then more than 65 years of age, have his
then fixed and payable monthly annuity increased by an amount equal to
2% of the original grant of annuity, for each year the policeman was in
receipt of annuity payments after the year in which he attains, or did
attain the age of 63. An additional 2% increase in such then fixed and
payable original granted annuity shall accrue in each January thereafter.
Beginning January 1, 1986, the rate of such increase shall be 3% instead of 2%.
The provisions of the preceding paragraph of this Section apply only to
a retired policeman eligible for such increases in his annuity who contributes
to the Fund a sum equal to $5 for each full year of credited service upon
which his annuity was computed. All such sums contributed shall be placed
in a Supplementary Payment Reserve and shall be used for the purposes of
such Fund account.
Beginning with the monthly annuity payment due in July, 1982, the fixed
and granted monthly annuity payment for any policeman who retired from the
service, before September 1, 1976, at age 50 or over with 20 or more years
of service and entitled to an annuity on January 1, 1974, shall be not less
than $400. It is the intent of the General Assembly that the change made in
this Section by this amendatory Act of 1982 shall apply retroactively to July
1, 1982.
Beginning with the monthly annuity payment due on January 1, 1986, the
fixed and granted monthly annuity payment for any policeman who retired
from the service before January 1, 1986, at age 50 or over with 20 or more
years of service, or any policeman who retired from service due to
termination of disability and who is entitled to an annuity on January 1,
1986, shall be not less than $475.
Beginning with the monthly annuity payment due on January 1, 1992, the
fixed and granted monthly annuity payment for any policeman who retired
from the service before January 1, 1992, at age 50 or over with 20 or more
years of service, and for any policeman who retired from service due to
termination of disability and who is entitled to an annuity on January 1,
1992, shall be not less than $650.
Beginning with the monthly annuity payment due on January 1, 1993, the
fixed and granted monthly annuity payment for any policeman who retired
from the service before January 1, 1993, at age 50 or over with 20 or more
years of service, and for any policeman who retired from service due to
termination of disability and who is entitled to an annuity on January 1,
1993, shall be not less than $750.
Beginning with the monthly annuity payment due on January 1, 1994, the
fixed and granted monthly annuity payment for any policeman who retired
from the service before January 1, 1994, at age 50 or over with 20 or more
years of service, and for any policeman who retired from service due to
termination of disability and who is entitled to an annuity on January 1,
1994, shall be not less than $850.
Beginning with the monthly annuity payment due on January 1, 2004, the
fixed and granted monthly annuity payment for any policeman who retired
from the service before January 1, 2004, at age 50 or over with 20 or more
years of service, and for any policeman who retired from service due to
termination of disability and who is entitled to an annuity on January 1,
2004, shall be not less than $950.
Beginning with the monthly annuity payment due on January 1, 2005, the
fixed and granted monthly annuity payment for any policeman who retired
from the service before January 1, 2005, at age 50 or over with 20 or more
years of service, and for any policeman who retired from service due to
termination of disability and who is entitled to an annuity on January 1,
2005, shall be not less than $1,050.
Beginning with the monthly annuity payment due on January 1, 2016, the fixed and granted monthly annuity payment for any policeman who retired from the service before January 1, 2016, at age 50 or over with 20 or more years of service, and for any policeman who retired from service due to termination of disability and who is entitled to an annuity on January 1, 2016, shall be no less than 125% of the Federal Poverty Level. For purposes of this Section, the "Federal Poverty Level" shall be determined pursuant to the poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. 9902(2). The difference in amount between the original fixed and granted monthly
annuity of any such policeman on the date of his retirement from the service
and the monthly annuity provided for in the immediately
preceding paragraph shall be paid as a supplement in the manner set forth
in the immediately following paragraph.
To defray the annual cost of the increases indicated in the preceding
part of this Section, the annual interest income accruing from
investments held by this Fund, exclusive of gains or losses on sales
or exchanges of assets during the year, over and above 4% a year shall
be used to the extent necessary and available to finance the cost of
such increases for the following year and such amount shall be
transferred as of the end of each year beginning with the year 1969 to a
Fund account designated as the Supplementary Payment Reserve from the
Interest and Investment Reserve set forth in Section 5-207.
In the event the funds in the Supplementary Payment Reserve in any year
arising from: (1) the interest income accruing in the preceding year above 4%
a year and (2) the contributions by retired persons are insufficient to
make the total payments to all persons entitled
to the annuity specified in this Section and (3) any interest
earnings over 4% a year beginning with the year 1969 which were not
previously used to finance such increases and which were transferred
to the Prior Service Annuity Reserve, may be used to the extent necessary
and available to provide sufficient funds to finance such increases
for the current year and such sums shall be transferred from the Prior
Service Annuity Reserve. In the event the total money available in
the Supplementary Payment Reserve from such sources are insufficient
to make the total payments to all persons entitled to such increases
for the year, a proportionate amount computed as the ratio of the
money available to the total of the total payments specified for that
year shall be paid to each person for that year.
The Fund shall be obligated for the payment of the increases in
annuity as provided for in this Section only to the extent that the
assets for such purpose are available.
(Source: P.A. 99-506, eff. 5-30-16.)
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(40 ILCS 5/5-167.3) (from Ch. 108 1/2, par. 5-167.3)
Sec. 5-167.3.
Pensions to survivors of female policemen.
All provisions of this Article relating to annuities or benefits to a
widow, children or other survivors of a male policeman shall apply with
equal force to a surviving spouse, children or other survivors of a female
policeman.
(Source: P.A. 78-1129.)
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(40 ILCS 5/5-167.4)
(from Ch. 108 1/2, par. 5-167.4)
Sec. 5-167.4. Widow annuitant minimum annuity.
(a) Notwithstanding any other provision of this Article, beginning
January 1, 1996, the minimum amount of widow's annuity payable to any person
who is entitled to receive a widow's annuity under this Article is $700 per
month, without regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1995.
Notwithstanding any other provision of this Article, beginning
January 1, 1999, the minimum amount of widow's annuity payable to any person
who is entitled to receive a widow's annuity under this Article is $800 per
month, without regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1998.
Notwithstanding any other provision of this Article, beginning
January 1, 2004, the minimum amount of widow's annuity payable to any person
who is entitled to receive a widow's annuity under this Article is $900 per
month, without regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of the 93rd General Assembly.
Notwithstanding any other provision of this Article, beginning
January 1, 2005, the minimum amount of widow's annuity payable to any person
who is entitled to receive a widow's annuity under this Article is $1,000 per
month, without regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of the 93rd General Assembly.
(b) Effective January 1, 1994, the minimum amount of widow's annuity
shall be $700 per month for the following classes of widows, without regard to
whether the deceased policeman is in service on or after the effective date of
this amendatory Act of 1993: (1) the widow of a policeman who dies in service
with at least 10 years of service credit, or who dies in service after June 30,
1981; and (2) the widow of a policeman who withdraws from service with 20 or
more years of service credit and does not withdraw a refund, provided that the
widow is married to the policeman before he withdraws from service.
(b-5) Notwithstanding any other provision of this Article, beginning January 1, 2017 and until January 1, 2023, the minimum widow's annuity under this Article shall be no less than 125% of the Federal Poverty Level for all persons receiving widow's annuities on or after that date, without regard to whether the deceased policeman is in service on or after the effective date of this amendatory Act of the 99th General Assembly. Notwithstanding any other provision of this Article, beginning January 1, 2023, the minimum widow's annuity under this Article shall be no less than 150% of the Federal Poverty Level for all persons receiving widow's annuities on or after that date, without regard to whether the deceased policeman is in service on or after the effective date of this amendatory Act of the 102nd General Assembly. For purposes of this Section, "Federal Poverty Level" means the poverty guidelines applicable to an individual in a single-person household located in Illinois, as updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. 9902(2). (c) The city, in addition to the contributions otherwise made by it
under the other provisions of this Article, shall make such contributions
as are necessary for the minimum widow's annuities provided under
this Section in the manner prescribed in Section 5-175.
(Source: P.A. 102-884, eff. 5-13-22.)
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(40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
Sec. 5-167.5. Payments to city.
(a) For the purposes of this Section, "city annuitant" means a person
receiving an age and service annuity, a widow's annuity, a child's annuity, or
a minimum annuity under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the board's city
annuitants who participate in any of the city's health care plans, the
following amounts:
(1) From July 1, 2003 through June 30, 2008, $85 per | ||
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(2) Beginning July 1, 2008 and until such time as the | ||
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The payments described in this subsection shall be paid from the tax levy
authorized under Section 5-168; such amounts shall be credited to the reserve
for group hospital care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be charged against
it.
(c) The city health care plans referred to in this Section and the board's
payments to the city under this Section are not and shall not be construed to
be pension or retirement benefits for the purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(Source: P.A. 98-43, eff. 6-28-13.)
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(40 ILCS 5/5-168)
(from Ch. 108 1/2, par. 5-168)
Sec. 5-168. Financing.
(a) Except as expressly provided in this Section, the city shall levy a
tax annually upon all taxable property therein for the purpose of providing
revenue for the fund.
The tax shall be at a rate that will produce a sum which, when added to the
amounts deducted from the policemen's salaries and the amounts deposited in
accordance with subsection (g), is sufficient for the purposes of the fund.
For the years 1968 and 1969, the city council shall levy a tax
annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce, when extended, not
to exceed $9,700,000. Beginning with the year 1970 and through 2014, the city council shall levy a tax annually at a rate on the
dollar of the assessed valuation of all taxable property that will
produce when extended an amount not to exceed the total amount of
contributions by the policemen to the Fund made in the calendar year 2
years before the year for which the applicable annual tax is levied,
multiplied by 1.40 for the tax levy year 1970; by 1.50 for the year
1971; by 1.65 for 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for
1975 through 1981; by 2.00 for 1982 and for each tax levy year through 2014. Beginning in tax levy year 2015, the city council shall levy a tax annually at a rate on the dollar of the assessed valuation of all taxable property that will produce when extended an annual amount that is equal to no less than the amount of the city's contribution in each of the following payment years: for 2016, $420,000,000; for 2017, $464,000,000; for 2018, $500,000,000; for 2019, $557,000,000; for 2020, $579,000,000. Beginning in tax levy year 2020, the city council shall levy a tax annually at a rate on the dollar of the assessed valuation of all taxable property that will produce when extended an annual amount that is equal to no less than (1) the normal cost to the Fund, plus (2) an annual amount sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2055, as annually updated and determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the Fund. In making these determinations, the required minimum employer contribution shall be calculated each year as a level percentage of payroll over the years remaining up to and including fiscal year 2055 and shall be determined under the entry age normal actuarial cost method. Beginning in payment year 2056, the city's total required contribution in that year and each year thereafter shall be an annual amount that is equal to no less than (1) the normal cost of the Fund, plus (2) the annual amount determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the Fund to be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund as of the end of the year, utilizing the entry age normal cost method as provided above. For the purposes of this subsection (a), contributions by the policeman to the Fund shall not include payments made by a policeman to establish credit under Section 5-214.2 of this Code.
(a-5) For purposes of determining the required employer contribution to the Fund, the value of the Fund's assets shall be equal to the actuarial value of the Fund's assets, which shall be calculated as follows: (1) On March 30, 2011, the actuarial value of the | ||
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(2) In determining the actuarial value of the Fund's | ||
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(a-7) If the city fails to transmit to the Fund contributions required of it under this Article for more than 90 days after the payment of those contributions is due, the Fund shall, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in fiscal year 2016, deduct and deposit into the Fund the certified amounts or a portion of those amounts from the following proportions of grants of State funds to the city: (1) in fiscal year 2016, one-third of the total | ||
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(2) in fiscal year 2017, two-thirds of the total | ||
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(3) in fiscal year 2018 and each fiscal year | ||
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The State Comptroller may not deduct from any grants of State funds to the city more than the amount of delinquent payments certified to the State Comptroller by the Fund. (b) The tax shall be levied and collected in like manner with the
general taxes of the city, and is in addition to all other taxes which the
city is now or may hereafter be authorized to levy upon all taxable property
therein, and is exclusive of and in addition to the amount of tax the city is
now or may hereafter be authorized to levy for general purposes under any
law which may limit the amount of tax which the city may levy for general
purposes. The county clerk of the county in which the city is located, in
reducing tax levies under Section 8-3-1 of the Illinois
Municipal Code, shall not consider the tax herein authorized as a part
of the general tax levy for city purposes, and shall not include the tax
in any limitation of the percent of the assessed valuation upon which
taxes are required to be extended for the city.
(c) On or before January 10 of each year, the board shall notify the
city council of the requirement that the tax herein authorized be levied by
the city council for that current year. The board shall compute the
amounts necessary for the purposes of this fund to be credited to the
reserves established and maintained within the fund; shall make an
annual determination of the amount of the required city contributions;
and shall certify the results thereof to the city council.
As soon as any revenue derived from the tax is collected it shall be
paid to the city treasurer of the city and shall be held by him for the
benefit of the fund in accordance with this Article.
(d) If the funds available are insufficient during any year to meet the
requirements of this Article, the city may issue tax anticipation warrants
against the tax levy for the current fiscal year.
(e) The various sums, including interest, to be contributed by the city,
shall be taken from the revenue derived from such tax or otherwise as expressly
provided in this Section. Any moneys of the city derived from any source other
than the tax herein authorized shall not be used for any purpose of the fund
nor the cost of administration thereof, unless applied to make the deposit
expressly authorized in this Section
or the additional city contributions required under subsection (h).
(f) If it is not possible or practicable for the city to make its
contributions at the time that salary deductions are made, the city
shall make such contributions as soon as possible thereafter, with
interest thereon to the time it is made.
(g) In lieu of levying all or a portion of the tax required under this
Section in any year, the city may deposit with the city treasurer no later than
March 1 of that year for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied under this Section
for that year, is not less than the amount of the city contributions for that
year as certified by the board to the city council. The deposit may be derived
from any source legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit shall satisfy
fully the requirements of this Section for that year to the extent of the
amounts so deposited. Amounts deposited under this subsection may be used by
the fund for any of the purposes for which the proceeds of the tax levied under
this Section may be used, including the payment of any amount that is otherwise
required by this Article to be paid from the proceeds of that tax.
(h) In addition to the contributions required under the other provisions
of this Article, by November 1 of the following specified years, the city shall
deposit with the city treasurer for the benefit of the fund, to be held and
used in accordance with this Article, the following specified amounts:
$6,300,000 in 1999;
$5,880,000 in 2000;
$5,460,000 in 2001;
$5,040,000 in 2002; and
$4,620,000 in 2003.
The additional city contributions required under this subsection are
intended to decrease the unfunded liability of the fund and shall not decrease
the amount of the city contributions required under the other provisions of
this Article. The additional city contributions made under this subsection
may be used by the fund for any of its lawful purposes.
(i) Any proceeds received by the city in relation to the operation of a casino or casinos within the city shall be expended by the city for payment to the Policemen's Annuity and Benefit Fund of Chicago to satisfy the city contribution obligation in any year. (Source: P.A. 99-506, eff. 5-30-16.)
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(40 ILCS 5/5-168.1) (from Ch. 108 1/2, par. 5-168.1)
Sec. 5-168.1.
The employer may pick up the employee contributions required
by Sections 5-167.1, 5-169, 5-170, 5-171 and 5-175.1
for salary earned after December 31, 1981. If employee contributions
are not picked up, the amount that would have been
picked up under this amendatory Act of 1980 shall continue
to be deducted from salary. If employee contributions
are picked up they shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code; however, the employer shall continue to withhold Federal and
state income taxes based upon these contributions until the Internal Revenue
Service
or the Federal courts rule that pursuant to Section 414(h) of the United
States Internal Revenue Code, these contributions shall not be included
as gross income of the employee until such time as they are distributed
or made available. The employer shall pay these employee contributions
from the same source of funds which is used in paying salary
to the employee. The employer may pick up these contributions by a reduction
in the cash salary of the employee or by an offset against a future salary
increase
or by a combination of a reduction in salary and offset against a future
salary increase. If employee contributions are picked up they shall be
treated for all purposes of this Article 5, including Section 5-168, in
the same manner and to the same extent as employee contributions made prior
to the date picked up.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/5-168.2) Sec. 5-168.2. Funding obligation. (a) Beginning January 1, 2016, the city shall be obligated to contribute to the Fund in
each fiscal year an amount not less than the amount determined annually under subsection (a) of Section 5-168 of this Code. Notwithstanding any other provision of law, if the city fails to pay the amount guaranteed under this Section on or before December 31 of the year in which such amount is due, the Fund may bring a mandamus action in the Circuit Court of Cook County to compel the city to make the required payment, irrespective of other remedies that may be available to the Fund. The obligations and causes of action created under this Section shall be in addition to any other right or remedy otherwise accorded by common law or State or federal law, and nothing in this Section shall be construed to deny, abrogate, impair, or waive any such common law or statutory right or remedy. (b) In ordering the city to make the required payment, the court may order a reasonable
payment schedule to enable the city to make the required payment without significantly imperilling the public health, safety, or welfare. Any payments required to be made by the city pursuant to this Section are expressly subordinated to the payment of the principal, interest, premium, if any, and other payments on or related to any bonded debt obligation of the city, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from any funds collected or received by the city. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law, city ordinance, or bond indentures, into debt service funds or accounts of the city related to such bonded obligations, consistent with the payment schedules associated with such obligations.
(Source: P.A. 99-506, eff. 5-30-16.) |
(40 ILCS 5/5-169) (from Ch. 108 1/2, par. 5-169)
Sec. 5-169. Contributions for age and service annuities or Tier 2 monthly retirement annuities for present employees and
future entrants. (a) Beginning on the effective date and before January 1, 1954, 3 1/2% per
annum (except that beginning July 1, 1939 and before January 1, 1954 for a
future entrant, 4%) and beginning January 1, 1954 and before August 1,
1957, 6%, and beginning August 1, 1957, 7% of each payment of the salary of
each present employee and future entrant shall be deducted and contributed
to the fund for age and service annuity or Tier 2 monthly retirement annuity. The deductions shall be made from
each payment of salary and shall continue while the employee is in service.
Any policeman whose employment has been transferred to the police
service of the city as a result of "An Act in relation to or exchange of
certain functions, property and personnel among cities, and park districts
having co-extensive geographic areas and populations in excess of 500,000",
approved July 5, 1957, as now and hereafter amended, shall also contribute
a sum equal to 2% of the total salary received by him in his employment
between August 1, 1957 to July 17, 1959, with the park district from which
he has been transferred together with interest on the unpaid contributions
of 4% per annum from July 17, 1959 to the date such payments are made. Such
additional sum may be paid at any time before the time such policeman
enters into age and service annuity.
Concurrently with each such deduction, beginning on the effective date
and prior to January 1, 1954, 8 1/2% (except for a future entrant beginning
on July 1, 1939, 9 5/7%) and beginning January 1, 1954, 9 5/7% of each
payment of salary shall be contributed by the city, but
in the case of a future entrant who attains age 63 prior to January 1,
1988 while still in service, no contributions shall be made for the period
between the date the employee attains age 63 and January 1, 1988.
(b) Each deduction from salary made prior to the date the age and service
annuity for the employee is fixed, and each contribution by the city, shall
be credited to the employee and be improved by interest for a present
employee during the time he is in service until age and service annuity is
fixed, and, for a future entrant, during the time he is in service. The
sum accumulated shall be used to provide age and
service annuity for the employee.
Beginning September 1, 1967, the deductions from salary provided in
Section 5-167.1 shall also be made.
(Source: P.A. 99-905, eff. 11-29-16.)
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(40 ILCS 5/5-170) (from Ch. 108 1/2, par. 5-170)
Sec. 5-170. Contributions for widow's annuities and Tier 2 surviving spouse's annuity. Beginning on the effective date 1%, and
beginning January 1, 1976, 1-1/2% of
the salary of each male present employee and future entrant shall be deducted
and contributed to the fund for
widow's annuity or Tier 2 surviving spouse's annuity; however,
in the case of a future entrant who attains age 63 prior to January 1,
1988 while still in service, no deductions shall be made for the period
between the date the employee attains age 63 and January 1, 1988.
The deductions shall be made from each payment of
salary and shall continue during the employee's service.
An employee in the service and over age 57 on the effective date
of this amendatory Act of 1969 shall have the option of contributing
1% of salary together with the
effective rate of interest for service rendered by him subsequent to
his attainment of age 57 and prior to such effective date. If such
retroactive contributions are made the wife or widow shall be entitled
to the widow's annuity provided in Section 5-136.
Concurrently with each such deduction, the city shall contribute
2% of each such payment of salary.
Each deduction from salary and contribution by the city shall be
allocated to the account of and credited to the employee. The amount
so credited shall be improved at the applicable rate of interest; except
that in the case of an employee who attains age 63 prior to January 1, 1988
while still in service, no interest shall be credited between the date the
employee attains age 63 and January 1, 1988.
(Source: P.A. 99-905, eff. 11-29-16.)
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(40 ILCS 5/5-171) (from Ch. 108 1/2, par. 5-171)
Sec. 5-171.
Contributions for death benefit.
To defray the cost of the ordinary death benefit, each policeman in
service on or after January 1, 1962, shall make contributions in addition
to the contributions otherwise provided in this Article, in the amount of
$2.50 per monthly period. This contribution shall begin with the first pay
period accruing after January 1, 1962, and shall be deducted from the
salary of each policeman at the same time and with the same frequency as
deductions are made for the other purposes of this Article.
Contributions towards this benefit shall be made only when the policeman
is in active service and in receipt of salary. Policemen in receipt of
disability benefits, and policemen in receipt of annuities whose retirement
occurred on or after January 1, 1962, shall not be required to make
contributions during such period of disability or retirement.
The city, through the tax levy prescribed in Section 5-168 hereof,
shall contribute annually the sum of $224,000. This amount shall be
credited each year to the death benefit reserve and a credit for the amount
aforesaid from each tax levy beginning with the year 1962 shall be made to
this reserve notwithstanding the requirements from such tax levy for all
other purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
Sec. 5-172.
Contributions by city for duty and occupational disease
disability benefits and supplemental annuity. In lieu of salary deductions
for annuity purposes, the city shall contribute the required amounts for any
period during which a policeman receives a duty disability benefit or
occupational disease disability benefit. The contributions shall be credited
to the disabled policeman and shall be regarded for all purposes hereof as sums
deducted from his salary.
The city shall also contribute all amounts ordinarily contributed by
it for annuity purposes for the policeman as though he were in active
discharge of his duties during such disability.
To provide supplemental annuity, the city shall contribute such equal
sums annually, from the date of the policeman's death, which if improved
by interest will be sufficient, when payment of compensation annuity
ceases, to provide supplemental annuity to the widow for life.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/5-173) (from Ch. 108 1/2, par. 5-173)
Sec. 5-173.
Contributions by city for ordinary disability benefits.
The city shall contribute all amounts ordinarily contributed by it for
annuity purposes for a disabled policeman receiving ordinary disability
benefit as though he were in active discharge of his duties.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-174) (from Ch. 108 1/2, par. 5-174)
Sec. 5-174. Contributions in case of certain employments in police
department.
(a) Whenever a policeman is assigned to a position in the police
department other than the position he holds by certification and
appointment as a result of competitive civil service examination, there
shall be deducted from his salary the amount which would have been
deducted had he continued in his civil service position. If such
deductions are not made, the policeman may pay such amount direct to the
fund and shall be credited with the corresponding city contributions, to
the end that he may retain all rights he otherwise would have had were
his employment continuous in his civil service position; provided, that
any such amount not so deducted from his salary nor paid by him shall be
deducted from the earliest possible and practicable payment of salary
due and payable to him, or from any annuity, benefit or refund payable
to him or on his account. The policeman shall receive credit for such
employment as service for all purposes of this Article.
(b) From and after January 1, 1970, in lieu of the provisions of the
preceding paragraph (a) of this Section, any policeman serving in a
non-civil service position in the police department shall have salary
deductions
made for age and service annuity and widow's annuity on
salary as defined in Section 5-114(e).
Any active policeman serving in a non-civil service position on the
effective date of this amendatory Act may elect, prior to January 1,
1970, to contribute directly to the fund for age and service and widow's
annuity on salary received in excess of that provided for in his civil
service rank for police service rendered in a non-civil service position
prior to the operative date of his election. Such election shall be
exercised prior to January 1, 1974, by a policeman in service on such
effective date or within 6 months prior to such date. Any policeman in
service not serving in a non-civil service position on the effective
date of this amendatory Act who is subsequently assigned and serving in
a non-civil service position may make like election within 6 months
after such assignment. Contributions for such past service shall include
interest at the applicable rate to the end that the contributions shall
equal the amount that would have been credited to the policeman had
deductions been made
from such excess salary for such service. For such
contributions the policeman shall be credited with the corresponding
city contributions with interest for all annuity purposes at the rates
in effect at the time the service was rendered.
Contributions for past service, if elected, shall be made for the
entire period of service and for the total amount of the excess salary
and no credit shall be granted or payment permitted for any part of such
service or excess salary. Payment of contributions on such past service
shall be completed within 3 years of the date of election and in any
event before death or retirement. If not paid in full within such
period, or before death, no credit shall be granted thereon, and the
sums so paid, with interest at the rate of 1 1/2% per year, compounded
annually, shall be refunded to the policeman, or his surviving widow or
children, or if there are no such survivors, then in accordance with
Section 5-167, provided, however, that if the repayment has not been
made in full before death, his widow shall have the option of completing
such payment within 60 days from the date of his death.
A policeman assigned to a non-civil service position within 3 years
of the date of his reaching compulsory retirement age or within 3 years
of retirement at his own option, whichever is earlier, shall not qualify
for the benefits authorized herein. The limitation contained in this
paragraph shall not apply to a policeman assigned to a non-civil service
position whose retirement from active service is caused by duty
disability. Beginning January 1, 2000, the limitation contained in this
paragraph shall not apply to a policeman assigned to a non-civil service
position with the title of Captain. A policeman who has made contributions as provided by this
Section but who fails to qualify for the benefits due to the limitation
of this paragraph is entitled to refund of said contributions, upon
application therefor, according to the provisions of Section 5-163(f).
In no event shall the provisions of this or any other Section of this
Article, allowing payment for or granting credit on salary received in
excess of that provided for his civil service rank or position be
applicable in the case of any former policeman who is receiving annuity
from this fund who subsequently re-enters service as a policeman.
(Source: P.A. 94-624, eff. 8-18-05.)
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(40 ILCS 5/5-175) (from Ch. 108 1/2, par. 5-175)
Sec. 5-175.
Contributions by city for prior service annuities and pensions under former
acts.
Each city shall contribute annually, from the sum produced by the tax
levy herein authorized, all sums required for the purposes of this Article
other than those stated in this Section. The balance of the sum produced by
the tax levy shall be applied: (a) For the payment of prior service
annuities and widow's prior service annuities, and all annuities, pensions
and benefits which have been or which shall be allowed under "An Act to
provide for the setting apart, formation and disbursements of a police
pension fund in cities having a population exceeding two hundred thousand
inhabitants", approved June 29, 1915, as amended; also for the purpose of
paying that part of any annuity for which reserves from contributions by
the policeman and the city are not provided under this Article, including
that part of the annuity described in Section 5-127, 5-132, 5-136, 5-145,
and 5-167 and 5-167.4 for which monies are not provided in this Article, and to make
possible the transfer of reserves from the investment and interest reserve
to other reserves of the fund, as provided in this Article.
(b) Amounts contributed by the city for the purposes of this section
shall be credited to the prior service annuity reserve. When the balance of
that reserve equals the liabilities chargeable thereto (including in
addition to all other liabilities of such reserve, the present value,
according to the American Experience Table of Mortality, and interest at
the rate of 4% per annum, or according to the Combined Annuity Mortality
Table and interest at the rate of 4% per annum, whichever is applicable, of
all annuities present or prospective, chargeable to the prior service
annuity reserve) the city shall cease to contribute the sum no longer
required for the purposes indicated in paragraph (a) of this section;
provided, if at any time the balance of the investment and interest reserve
is not sufficient to permit a transfer from such reserve to any other
reserve of the fund, in accordance with the provisions of this Article, the
city shall, as soon as possible and practicable thereafter, contribute sums
sufficient to make possible such transfer.
(c) If by reason of annexation of territory and the employment by the
city of any policeman then employed in the annexed territory, after the
city has ceased to make contributions under this section, contributions to
provide prior service and widow's prior service annuity for such policeman
become necessary for such purposes, the city shall, as soon as possible and
practicable thereafter, contribute sums sufficient to provide such annuities.
(Source: P.A. 82-342.)
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(40 ILCS 5/5-175.1) (from Ch. 108 1/2, par. 5-175.1)
Sec. 5-175.1.
Contributions by female policemen.
(a) Effective as of October 1, 1974, female policemen shall make the
same contributions for survivors' annuities
or other benefits as are in
effect for male policemen, to the end that no distinction or difference
shall exist as between male and female policemen with respect to rates
of contribution or other provisions of this Article.
(b) Any female policeman shall have the option of making
contributions for the aforesaid purposes, covering the period prior to
October 1, 1974, and receiving pension credits therefor including
concurrent credits from city contributions. Such contributions shall
include interest at 4% per annum from the dates such contributions
should have been made from the beginning of their service to the dates
of payment to the end that equal pension credits for survivors' benefits
may be provided for all policemen under this Article.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-176) (from Ch. 108 1/2, par. 5-176)
Sec. 5-176.
Cost of administration.
The city shall contribute the entire costs of administration of the fund
from revenue derived from the taxes authorized to be levied for the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-177) (from Ch. 108 1/2, par. 5-177)
Sec. 5-177.
Other city contributions-Estimates.
The board shall estimate the amounts required each year to be
contributed by the city to pay all annuities and benefits hereunder and
administrative expenses. All amounts shall be paid annually by the city
into the fund from taxes levied and collected for the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-178) (from Ch. 108 1/2, par. 5-178)
Sec. 5-178. Board created. A board of 8 members shall
constitute a board of trustees authorized to administer the provisions of
this Article. The board shall be known as the Retirement Board of the
Policemen's Annuity and Benefit Fund of the city.
The board shall consist of 4 persons appointed by
the mayor of the city; 3 policemen employed by the city, at least one of
whom shall be a lieutenant or of a rank superior to lieutenant, one of whom
shall be of the rank of sergeant, and one of whom shall be of the rank of
investigator or a rank inferior to that rank; and one
annuitant of the fund, or a pensioner of any prior police pension fund
in operation, by authority of law, in the city. Children less than age
18 shall not be eligible for board membership. The term of office for
all members shall be 3 years. For the election to be held in 2008 only, the terms for the member who is a lieutenant or of a rank superior to lieutenant and the member who is a sergeant shall be 3 years and the terms for the member who is an investigator or a rank inferior to that rank and the annuitant member shall be 4 years. After the terms of the 2008 election are completed, the terms revert to 3-year terms for each elected trustee. Upon his election, the member holding the
rank of investigator or a rank inferior to that rank shall be detailed by
the Police Superintendent to the office of the board for the duration of
his term as trustee.
The members of a retirement board holding office in a city at the
time this Article becomes effective, including elected, appointed and
ex-officio members, shall continue in office until the expiration of
their respective terms or appointment and until their respective
successors are elected or appointed, and qualified.
At least 30 days prior to the expiration of the term of office of
each appointive member the mayor shall appoint a successor for a term of
3 years.
The board shall conduct a regular election at least 30 days prior to
the expiration of the terms of the active policemen members and
annuitant or beneficiary members for election of a successor of each
such member for a term of 3 years.
Any member of the board so appointed or elected shall continue in
office until his successor is selected and has qualified.
Any person so appointed or elected shall qualify by taking an oath of
office. A copy thereof shall be kept in the office of the city clerk of
the city.
(Source: P.A. 95-1036, eff. 2-17-09.)
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(40 ILCS 5/5-179) (from Ch. 108 1/2, par. 5-179)
Sec. 5-179.
Board elections.
The regular elections for members of the
board shall be held under rules of the board at least 30 days prior to the
expiration of the term of office of any elective member.
At any election for active policemen members, all such policemen of the
appropriate rank employed by the city when the election is held have a right
to vote for members of the board of the same class of rank.
At any election for the pensioner or annuitant member, all annuitants and
pensioners (except children less than age 18) and the legal guardian of
any child annuitant or child pensioner, whose mother or stepmother is not
an annuitant or pensioner of the fund, shall have a right to vote.
Ballots to be cast in such elections shall be of a secret character.
(Source: P.A. 80-671.)
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(40 ILCS 5/5-180) (from Ch. 108 1/2, par. 5-180)
Sec. 5-180.
Board vacancy, removal and recall.
A vacancy on the board owing to death, resignation or any other cause
shall be filled as follows: If the vacancy is of an appointee of the mayor,
the mayor shall appoint a person to serve for the remainder of the
unexpired term. If the vacancy is of an active policeman member, or a
pensioner or annuitant member, the successor shall be elected to serve
during the remainder of the unexpired term, at a special election which
shall be held by the board within 30 days from the date the vacancy occurs.
The election shall be conducted in the same manner as the regular triennial
election herein provided for.
The appointive members of the board may be removed from office by the
mayor. Any member elected by the active policemen who withdraws from the
police service of the city shall automatically cease to be a member of the
board.
Any elective member of the board shall be subject to recall as follows:
If not less than 60% of the active policemen contributors to the fund, or
not less than 60% of the pensioners and annuitants (minors under age 18
excepted), petition the board in writing to declare vacant the membership
of an active policeman member or pensioner or annuitant, as the case may
be, respectively, the board, within 15 days after receipt of the petition
shall declare such membership vacant. A member of the board is not subject
to recall more than once in any calendar year nor within one year after a
previous recall.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-181) (from Ch. 108 1/2, par. 5-181)
Sec. 5-181.
Board officers.
At each regular meeting in December, the board shall elect, by a
majority vote of the members who vote upon the question, a president, a
vice-president and a secretary from among its own members to serve until
the next regular December meeting and until their successors are elected.
The secretary shall make a complete record of the proceedings of all
meetings of the board and perform such other duties as the board directs.
The secretary shall be chosen from the active policemen members of the
board, and following his election shall, at the request of the board, be
detailed to the office of the board by the head of the police department of
the city as an active policeman assigned to such duty.
(Source: Laws 1965, p. 1080.)
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(40 ILCS 5/5-182) (from Ch. 108 1/2, par. 5-182)
Sec. 5-182.
Board meetings.
The board shall hold regular meetings in each month and such other
meetings as it deems necessary. A majority of the board members shall
constitute a quorum for the transaction of business at any meeting;
provided, that no pension, annuity, or benefit shall be allowed or granted
and no money shall be paid out of the fund unless ordered by a vote of the
majority of the members of the board as shown by roll call entered upon the
official record of proceedings of the meeting at which such action is
taken. All board meetings shall be open to the public.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-183) (from Ch. 108 1/2, par. 5-183)
Sec. 5-183.
Board powers and duties.
The board shall have the powers and duties stated in Sections 5-184 to
5-195, inclusive, in addition to the other powers and duties provided in
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-184) (from Ch. 108 1/2, par. 5-184)
Sec. 5-184.
To supervise deductions and contributions.
To see that all amounts specified in this Article to be applied to
the fund, from any source, are collected and so applied; to see that the
sums to be deducted from the salaries
of policemen are deducted and paid
into the fund, and that the sums to be contributed by the city are so
contributed and received into the fund, and that all interest upon
moneys due the fund and all other moneys which accrue to the fund are
collected and paid into it.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-185) (from Ch. 108 1/2, par. 5-185)
Sec. 5-185.
To notify comptroller of deductions.
To notify the city comptroller of the amounts or percentages of salary
to be deducted from the salaries
of policemen and paid into the
fund.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-186) (from Ch. 108 1/2, par. 5-186)
Sec. 5-186.
To accept gifts.
To accept by gift, grant, bequest or otherwise any money or property of
any kind and use the same for the purposes of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-187) (from Ch. 108 1/2, par. 5-187)
Sec. 5-187.
To invest money.
To invest the monies of the fund in
accordance with the provisions set forth in Sections 1-109, 1-109.1,
1-109.2, 1-110, 1-111, 1-114 and 1-115 of this Act.
Investments made in accordance with Section 1-113 shall be deemed to be prudent.
The Board may sell any of the securities belonging to the fund and
borrow money upon such securities as collateral whenever in its judgment
such action is necessary to meet the cash requirements of the fund.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended. The limitations set forth in such Section 6 shall be applicable
only at the time of investment and shall not require the liquidation of
any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its
own name or in the name of a nominee created for the express purpose of
registration of securities by a savings and loan association or national
or State bank or trust company authorized to conduct a trust business
in the State of Illinois.
Investments shall be carried at cost or at a book value in accordance with
accounting procedures approved by the board. No adjustments shall be made
in investment carrying values for ordinary current market price fluctuations;
but reserves may be provided to account for possible losses or unrealized
gains as determined by the board.
The book value of investments held by the pension fund in one or more
commingled investment accounts shall be the cost of its units
of participation in such commingled account or accounts as recorded on the
books of the board.
The board of trustees of any fund established under this Article may
not transfer its investment authority, nor transfer the assets of the fund
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the board resolution authorizing such transfer is submitted
for approval to the contributors and pensioners of the fund at elections
held not less than 30 days after the adoption of such resolution by the
board, and such resolution is approved by a majority of the votes cast on
the question in both the contributors election and the pensioners election.
The election procedures and qualifications governing the election of trustees
shall govern the submission of resolutions for approval under this paragraph,
insofar as they may be made applicable.
(Source: P.A. 85-964.)
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(40 ILCS 5/5-187.1) (from Ch. 108 1/2, par. 5-187.1)
Sec. 5-187.1.
To lend securities.
The Board may lend securities owned
by the Fund to a borrower upon such terms and conditions as may be mutually
agreed in writing. Such agreement shall provide that during the period
of such loan the Fund shall retain the right to receive, or collect from
the borrower, all dividends, interest rights, or any distributions to which
the Fund would have otherwise been entitled. The borrower shall deposit
with the Fund as collateral for such loan cash equal to the market value
of the securities at the time the loan is made and shall increase the amount
of collateral if and when the Fund shall request an additional amount because
of subsequent increased market value of the securities.
The period for which the securities may be loaned shall not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 83-823.)
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(40 ILCS 5/5-188) (from Ch. 108 1/2, par. 5-188)
Sec. 5-188.
To have an audit.
To contract with an independent certified public
accounting firm to perform an annual audit of the assets of the fund and
issue a financial opinion. The annual audit shall be in addition to any
examination of the fund by the State Director of Insurance.
(Source: P.A. 85-964.)
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(40 ILCS 5/5-189) (from Ch. 108 1/2, par. 5-189)
Sec. 5-189.
To authorize payments.
To authorize the payment of any annuity, pension, or benefit granted
under this Article or under any other Act relating to police pensions,
heretofore in effect in the city which has been superseded by this Article;
to increase, reduce, or suspend any such annuity, pension, or benefit
whenever any part thereof was secured or granted or the amount thereof
fixed, as the result of misrepresentation, fraud, or error; provided, the
annuitant, pensioner or beneficiary concerned shall be notified and given
an opportunity to be heard concerning such proposed action.
The Board shall have exclusive original jurisdiction in all matters
relating to or affecting the fund, including, in addition to all other
matters, all claims for annuities, pensions, benefits or refunds.
(Source: P.A. 77-2141.)
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(40 ILCS 5/5-190) (from Ch. 108 1/2, par. 5-190)
Sec. 5-190.
To require statements and determine service credits.
To require each policeman, including those on vacation and on leave of
absence, to file a statement, in such form as the Board directs, concerning
service rendered prior to the effective date, from which the Board shall
make a determination of the length of such service; to determine, from such
information as shall be available, the period of service rendered prior to
the effective date by any policeman who fails to file such a statement.
Any such determination by the Board shall be conclusive as to any such
period of service unless the Board reconsiders and changes the
determination.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-191) (from Ch. 108 1/2, par. 5-191)
Sec. 5-191.
To issue certificate of service.
To issue to each present employee a certificate which shall show the
entire period of service rendered by him prior to the effective date and
the amounts to his credit as of such date for prior service annuity and
widow's prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-192) (from Ch. 108 1/2, par. 5-192)
Sec. 5-192.
To submit annual report to city council.
To submit a report annually in June to the city council. The report
shall be made as of the close of business on December 31st of the preceding
year and shall contain a detailed statement of the affairs of the fund, its
income and disbursements for such year, and its assets and liabilities.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-193) (from Ch. 108 1/2, par. 5-193)
Sec. 5-193.
To subpoena witnesses.
To compel witnesses to attend and testify before it upon any matter
concerning the fund and to allow fees not in excess of $6 to any witness
for attendance upon any one day. The president and other members of the
Board may administer oaths to witnesses.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-194) (from Ch. 108 1/2, par. 5-194)
Sec. 5-194.
To appoint employees.
To appoint such actuarial, medical, legal, clerical or other employees
as may be necessary. Beginning July 1, 1988, the board shall develop
procedures for obtaining, by
contract or employment, any necessary professional assistance including investment
advisors and managers, auditors, and medical and legal professionals.
(Source: P.A. 85-964.)
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(40 ILCS 5/5-194.1) (from Ch. 108 1/2, par. 5-194.1)
Sec. 5-194.1.
To have a budget.
The board shall adopt an annual
budget at its regular January meeting for the current fiscal year.
(Source: P.A. 85-964.)
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(40 ILCS 5/5-195) (from Ch. 108 1/2, par. 5-195)
Sec. 5-195.
To make rules.
To make rules and regulations necessary for the administration of the
fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-196) (from Ch. 108 1/2, par. 5-196)
Sec. 5-196.
Moneys which may be held on deposit.
To pay annuities and benefits the Board may at all times keep uninvested
a sum not in excess of the amount required for such payments for a period
not exceeding 60 days. Such sum shall be kept on deposit in any bank or
savings and loan association authorized to do business in
this State. The amount which the Board may
deposit in any such bank or savings and loan association, however, shall
not exceed 25% of the paid up
capital and surplus of the bank or savings and loan association.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement established pursuant to Section
6 of "An Act relating to certain investments of public funds by public agencies",
approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
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(40 ILCS 5/5-197) (from Ch. 108 1/2, par. 5-197)
Sec. 5-197.
Accounting.
An adequate system of accounts and records shall be established to give
effect to the requirements of this Article, and shall be maintained in
accordance with generally accepted accounting principles. The reserves
designated in
Sections 5-198 to 5-208, inclusive, shall be maintained.
(Source: P.A. 85-964.)
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(40 ILCS 5/5-198) (from Ch. 108 1/2, par. 5-198)
Sec. 5-198.
Expense reserve.
Amounts contributed towards the cost of administration shall be credited
to the expense reserve. Expenses of administration shall be charged to this
reserve.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-199) (from Ch. 108 1/2, par. 5-199)
Sec. 5-199.
City contribution reserve.
Amounts contributed by the city for age and service annuity, widow's
annuity and supplemental annuity, (except those contributed instead of
deductions from salary of any policeman receiving duty disability
benefit); also amounts transferred to this reserve from the investment
and interest reserve shall be credited to this reserve.
At least once each year, and always before any transfer is made from
this reserve to any other reserve, the sums credited shall be improved
by the proper interest accretions.
When the amount of annuity for a policeman or to the widow is fixed,
and when supplemental annuity for a widow first becomes payable, the
total amount in this reserve for the purpose of such annuity and
required therefor shall be charged thereto and credited to the annuity
payment reserve.
If there is to the credit of any policeman who withdraws an amount in excess
of that required to provide age and service
annuity, or in excess of that required to provide widow's annuity for
his wife (either or both), such amount shall be retained in this reserve
and improved by interest until the policeman withdraws or dies,
whichever event occurs first; provided, however, that in the case of a
policeman who attains age 63 prior to January 1, 1988 while still in
service, no interest shall be credited between the date the policeman
attains age 63 and January 1, 1988. Any such accumulated amount shall then be
applied as provided in this Article.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-200) (from Ch. 108 1/2, par. 5-200)
Sec. 5-200.
Salary deduction reserve.
The following amounts shall be credited to this reserve: (1) Amounts
deducted from salaries of policemen or otherwise contributed for age and
service annuity and widow's annuity; (2) amounts contributed by the city
for any such purposes for any policeman who receives duty disability
benefit in lieu of deductions from his salary; and (3) amounts
transferred to this reserve from the investment and interest reserve.
An individual account shall be kept for each policeman from
whose salary any such amount is deducted.
As such amounts are received they
shall be credited to the respective accounts of the policemen.
At least once each year, and always before any transfer from this
reserve to any other reserve is made, the sums credited shall be
improved by interest.
When the annuity for a policeman or widow is fixed or granted, the
total amount in this reserve for the purpose of the annuity and required
therefor shall be charged thereto and credited to the annuity payment
reserve.
Amounts resulting from salary deductions, and amounts resulting from
contributions of the city for any policeman who receives duty disability
benefit in lieu of deduction from his salary, that are to be refunded in
accordance with the provisions of this Article, except those referred to
in Section 5-201, shall be charged to this reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-201) (from Ch. 108 1/2, par. 5-201)
Sec. 5-201.
Annuity payment reserve.
The following amounts shall be credited to this reserve: (1) amounts
transferred from the city contribution reserve and from the salary deduction
reserve for the payment of annuities which have been fixed;
(2) amounts deducted from the salary
of a policeman after the amount of
his age and service annuity has been fixed; and (3) amounts transferred
to this reserve from the investment and interest reserve.
All age and service annuities and all widow's annuities shall be
charged to this reserve. Any amount to be refunded under this Article
shall be charged to this reserve.
If a policeman whose annuity is fixed or granted withdraws from
service and thereafter re-enters service before age 63, an amount
determined in accordance with this Article shall be charged to this
reserve and credited for age and service annuity in the city
contribution reserve and the salary deduction
reserve, respectively.
Such amount shall be credited in such reserves in the ratio in which the
respective amounts transferred from such reserves for age and service
annuity for the policeman bear to each other at the time his annuity was
fixed. If the wife of such policeman when he re-enters service was his
wife when annuity for his wife was fixed an amount to be determined as
provided in this Article shall be transferred from this reserve and
credited to the policeman for widow's annuity in the city contribution
reserve and the salary deduction reserve, respectively.
Such amount
shall be credited in such reserve in the ratio which the respective
amounts transferred bear to each other at the time the annuity for the
wife was fixed.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-202) (from Ch. 108 1/2, par. 5-202)
Sec. 5-202.
Prior service annuity reserve.
The following amounts shall be credited to this reserve: (1) all
contributions of the city for prior service annuity and widow's prior
service annuity; (2) all other contributions of the city for annuities
not provided entirely from contributions by the policemen
and by the city;
(3) all amounts deducted from the salary
of a future entrant after the
amount of his age and service annuity has been fixed; and (4) all assets
of any police pension fund which exist under "An Act to provide for the
setting apart, formation and disbursement of a police pension fund in
cities having a population exceeding two hundred thousand inhabitants",
approved June 29, 1915, as amended, in such city on the effective date.
All prior service annuities and widow's prior service annuities
payable under this Article and the Policemen's Annuity and Benefit Fund
Act of 1921, and all annuities, benefits and pensions which have been or
shall be granted under "An Act to provide for the setting apart,
formation and disbursement of a police pension fund in cities having a
population exceeding two hundred thousand inhabitants", approved June
29, 1915, as amended, shall be charged to this reserve.
If at any time the assets of the investment and interest reserve are
not sufficient to permit the transfer from said reserve to the annuity
payment reserve of amounts necessary, according to the American
Experience Table of Mortality and interest at the rate of 4% per annum,
or the Combined Annuity Mortality Table with interest at the rate of 3%,
whichever table may be applicable, to make the balance of the annuity
payment reserve equal to the liabilities chargeable thereto (including
among such liabilities, and in addition to all other liabilities against
such reserve the present values of all annuities entered upon or fixed,
and not entered upon to be charged to such reserve), any amount
necessary for such purpose shall be transferred from this reserve to the
investment and interest reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-203) (from Ch. 108 1/2, par. 5-203)
Sec. 5-203.
Child's annuity reserve.
Amounts contributed by the city for child's annuity shall be credited to
this reserve, and all such annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
Sec. 5-204.
Duty disability reserve.
Amounts contributed by the city for
duty disability benefit, occupational disease disability benefit, child's
disability benefit, and compensation annuity shall be credited to this
reserve, and all such benefits and annuities shall be charged to it.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/5-205) (from Ch. 108 1/2, par. 5-205)
Sec. 5-205.
Ordinary disability reserve.
Amounts contributed by the city, and all amounts deducted from the salaries
of policemen for ordinary disability
benefits shall be credited
to this reserve and all such benefits shall be charged to it.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-206) (from Ch. 108 1/2, par. 5-206)
Sec. 5-206.
Gift reserve.
Amounts received by the board for any purpose under any other law or as
gifts, grants, or bequests, or in any manner other than as provided in this
Article, shall be credited to this reserve and the same shall be used for
such purposes of the fund as the board may decide. The balance in this
reserve shall be annually improved by interest at the rate realized
by the Board on its investments in the previous year.
(Source: P.A. 85-964.)
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(40 ILCS 5/5-207) (from Ch. 108 1/2, par. 5-207)
Sec. 5-207.
Investment and interest reserve.
All gains from investment and all interest earnings shall be
credited, and all losses from investments shall be charged to this
reserve. From this reserve shall be transferred all amounts due in
interest upon balances existing in the city contribution, the salary deduction,
the prior service annuity, and the gift reserves.
Such amounts as shall be necessary, according to the American
Experience Table of Mortality and interest at 4% per year or the
Combined Annuity Mortality Table with 3% per annum as to the assets or
liabilities to which either Table may be applicable in accordance with
the provisions of this Article, to establish a balance in the annuity
payment reserve equal to the liabilities chargeable thereto (including
among such liabilities and in addition to all other liabilities of such
reserve the present values of all annuities entered upon or fixed, and
not entered upon to be charged to such reserve) shall be transferred to
the annuity payment reserve at least once each year.
That portion of the annual investment earnings on the fund's invested
assets exclusive of gains or losses on sales or exchanges of assets
during the year on the fund's invested assets as required by Section
5-167.2 of this Article shall be transferred from the investment and
interest reserve to the Supplementary Payment Reserve set forth in
Section 5-167.2.
Any balance in the investment and interest reserve shall be either
charged or credited to the Prior Service Annuity Reserve depending on
whether a deficiency or surplus exists in investment and interest
reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-208) (from Ch. 108 1/2, par. 5-208)
Sec. 5-208.
Death benefit reserve.
Amounts contributed by policemen
and the city for ordinary death benefits shall be credited to this
reserve and all such benefits shall be charged to it. At the close of
each fiscal year, interest at the rate of 3% per year until December 31,
1977 and at 6% thereafter shall be credited on the mean balance in this
reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-208.1) (from Ch. 108 1/2, par. 5-208.1)
Sec. 5-208.1.
Automatic increase reserve.
Amounts deducted from the salaries of policemen and matching
contributions by the City for the purposes of the automatic increase in
annuity provided in Section 5-167.1, together with interest thereon, shall
be credited to the Automatic Increase Reserve, and all payments of
increased annuities and salary deduction refunds as provided in that
Section shall be charged to the Automatic Increase Reserve.
(Source: Laws 1967, p. 3561.)
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(40 ILCS 5/5-209) (from Ch. 108 1/2, par. 5-209)
Sec. 5-209.
Deficiencies in reserves.
(a) Whenever the balance in
the expense reserve, the prior service annuity reserve, the child's annuity
reserve, the duty disability reserve or the ordinary disability reserve
is not sufficient to provide for the expenses and annuities or benefits
chargeable to such reserves, the amount required shall be transferred from
the following named reserves in the order stated: City contribution reserve,
prior service annuity reserve, salary deduction reserve. When any amount
exists in such reserves in excess of that required to pay any expenses,
or annuities or benefits chargeable to any of said reserves to which a transfer
has been made, the excess shall be transferred from the reserve having such
excess to the reserve from which any such sums have been transferred until
the full sum previously transferred is returned. Interest on such transfers
or retransfers at 4% per year shall be credited to the investment and interest reserve.
(b) Whenever the balance in the expense reserve, the prior service annuity
reserve, the child's annuity reserve, the duty disability reserve or the
ordinary disability reserve is in excess of that required to pay any expenses,
annuities or benefits chargeable to that reserve and any retransfer required
under subsection (a), the treasurer of the Fund shall so advise the Board
and the chairman of the committee on finance of the city council of the
city, and the city council may by ordinance direct the treasurer of the
Fund to transfer some or all of such excess from such reserve to any other
reserve of the Fund, the balance of which is not sufficient to provide for
the expenses, annuities or benefits chargeable thereto. No such transfer
shall in any way decrease any contribution required to be made or picked
up by the city under this Article.
(Source: P.A. 82-1044.)
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(40 ILCS 5/5-210) (from Ch. 108 1/2, par. 5-210)
Sec. 5-210.
Treasurer of fund.
The city treasurer of the city is the treasurer and custodian of the
fund and shall furnish to the board a bond of such amount as it designates.
The bond shall indemnify the board against any loss which may result from
any action or failure to act on the part of the treasurer and custodian or
any of his agents. All fees and charges incidental to the procuring of the
bond shall be paid by the board.
The treasurer shall deposit the moneys of the fund in one or more banks
or savings and loan associations
and in such amounts as the board may by resolution direct upon receiving an
indemnifying bond executed in favor of the board protecting the fund from
loss of any money so deposited. The bond shall be procured and paid for by
the board. The treasurer shall pay for out of the moneys of the fund, and
shall hold custody of, any and all securities ordered by the board to be
purchased. The treasurer shall deliver to the persons designated by the
board any and all securities ordered by the board to be sold, or ordered by
it to be deposited as collateral security for moneys borrowed by the board,
upon receiving notice from the secretary of the board in writing, under the
seal of the board, designating the person to whom the securities are to be
so delivered, and upon the receipt of payment or sales receipt therefor, in
the event such securities are ordered sold by the board, or of a
collateral-deposit receipt in the event such securities are ordered by the
board to be used as collateral for moneys to be borrowed by the board.
(Source: P.A. 83-541.)
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(40 ILCS 5/5-211) (from Ch. 108 1/2, par. 5-211)
Sec. 5-211.
Attorney.
The chief legal officer of the city is ex officio the legal adviser of
and attorney for the board. The board may employ a licensed attorney to
render such special legal service as may be necessary. No fee or
compensation shall be paid to any attorney unless employed by the board.
Any fee or compensation paid by the board shall be in accord with the
schedule of fees or charges prescribed by a local or state bar association.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-212) (from Ch. 108 1/2, par. 5-212)
Sec. 5-212. Computation of service. In computing the service rendered by a policeman prior to the
effective date, the following periods shall be counted, in addition to
all periods during where he performed the duties of his position, as
periods of service for annuity purposes only: all periods of (a)
vacation; (b) leave of absence with whole or part pay; (c) leave of
absence without pay on account of disability; and (d) leave of absence
during which the policeman was engaged in the military or naval service
of the United States of America. Service credit shall not be allowed for
a policeman in receipt of a pension on account of disability from any
pension fund superseded by this fund.
In computing the service rendered by a policeman on or after the
effective date, the following periods shall be counted, in addition to
all periods during which he performed the duties of his position, as
periods of service for annuity purposes only: all periods of (a)
vacation; (b) leave of absence with whole or part pay; (c) leave of
absence during which the policeman was engaged in the military or naval
service of the United States of America; (d) time that the policeman was
engaged in the military or naval service of the United States of
America, during which he was passed over on any eligible list posted
from an entrance examination, due to the fact that he was in such
military or naval service at the time he was called for appointment to
the Police Department, to be computed from the date he was passed over
on any eligible list and would have been first sworn in as a policeman
had he not been engaged in the military or naval service of the United
States of America, until the date of his discharge from such military or
naval service; provided that such policeman shall pay into this Fund the
same amount that would have been deducted from his salary had he been a
policeman during the aforementioned portion of such military or naval
service; (e) disability for which the policeman receives any disability
benefit or compensation under the Workers' Compensation Act or the Workers' Occupational Diseases Act; (f) disability for which the policeman receives whole or
part pay; (g) service for which credits and creditable service have
been transferred to this Fund under Section 9-121.1, 14-105.1 or 15-134.3
of this Code; and (h) periods of service in the military, naval, or air forces of the United States entered upon before beginning service as an active policeman of a municipality as provided in Section 5-214.3.
In computing service on or after the effective date for ordinary
disability benefit, all periods described in the preceding paragraph,
except any such period for which a policeman receives ordinary
disability benefit, shall be counted as periods of service.
In computing service for any of the purposes of this Article, no
credit shall be given for any period during which a policeman was not
rendering active service because of his discharge from the service,
unless proceedings to test the legality of the discharge are filed in a
court of competent jurisdiction within one year from the date of
discharge and a final judgment is entered therein declaring the
discharge illegal.
No overtime or extra service shall be included in computing service
of a policeman and not more than one year or a fractional part thereof
of service shall be allowed for service rendered during any calendar
year.
In computing service for any of the purposes of this Article, credit
shall be given for any periods during which a
policeman who is a member of the General Assembly is on leave of absence or is
otherwise authorized to be absent from duty to enable him or her to perform
legislative duties, notwithstanding any reduction in salary for such periods
and notwithstanding that the contributions paid by the policeman were based on
a reduced salary rather than the full amount of salary attached to his or her
career service rank.
(Source: P.A. 102-806, eff. 5-13-22.)
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(40 ILCS 5/5-213) (from Ch. 108 1/2, par. 5-213)
Sec. 5-213.
Credit for service in fire department.
Service rendered by a policeman, as a regular member of the paid fire
department of the city shall be counted, for annuity and benefit
purposes as if such service were rendered as a policeman of the city.
Any salary so received for service in the fire department shall be
considered, for the purposes of this Article, as salary received as a
policeman.
Any such fireman who becomes a policeman shall be credited for
annuity purposes with an amount equal to the sums deducted from his salary,
or contributed by him, and paid into the Firemen's Pension Fund
existing in such city by operation of law prior to July 1, 1931, and
such credit shall be treated as prior service credits under this
Article. Such policeman also has the right to pay to the fund an amount
equal to the difference between the amount so credited and the sum he
would have accumulated as a policeman from deductions from salary for
annuity purposes on the date when such payment is made into this fund,
for a period of time corresponding to the period of his service in the
fire department subsequent to January 1, 1922, and the city shall
contribute concurrently such amounts as are provided by Sections 5-169
and 5-170 of this Article. No credit for service rendered while a
member of the fire department shall be allowed, for any of the purposes
of this Article, after July 1, 1931, except such periods of service for
which contributions were made in accordance with the provisions of the
Act relating to the firemen's annuity and benefit fund and for which
amounts have been paid into this fund.
Such credits, payments and city contributions shall be improved by
interest and be credited on the books of the fund; and when such
policeman attains age 57 while in the police service, or becomes
separated from service prior to attainment of 57 but after having
completed at least 20 years of service, the accumulation then to his
credit shall be transferred into the annuity payment reserve and shall
thereafter be of the same status as the salary deductions and city
contributions provided for by Sections 5-169 and 5-170. Such
additional payments and city contributions shall be subject to the
refund provisions of this Article.
Any such policeman who was a member of the fire department on the day
prior to the effective date shall be considered a present employee in
this fund and any policeman who entered the service of the fire
department subsequent to that date shall be classed as a future entrant.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-214) (from Ch. 108 1/2, par. 5-214)
Sec. 5-214. Credit for other service. Any participant in this fund (other
than a member of the fire department of the city) who has rendered service
as a member of the police department of the city for a period of 3 years
or more is entitled to credit for the various purposes of this Article for
service rendered prior to becoming a member or subsequent thereto for the
following periods:
(a) While on leave of absence from the police | ||
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(b) As a temporary police officer in the city or | ||
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(c) While on leave of absence from the police | ||
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The changes made to this item (c) by this amendatory | ||
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In this item (c), "investigative work" requires a | ||
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(d) While on leave of absence from the police | ||
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No credit shall be granted in this fund, however, for this service if (1) the
policeman has credit therefor in any other annuity and benefit fund or (2) the policeman has not, within 5 years after the date his application has been approved, but prior to his date of retirement, contributed
to this fund the amount he would have contributed
with interest had he remained an active member of the police department
in the position he occupied as a result of a civil service competitive
examination, certification and appointment by the Civil Service Board; or
in the case of a city operating under the provisions of a personnel ordinance
the position he occupied as a result of a personnel ordinance competitive
examination certification and appointment under the authority of a Municipal
Personnel ordinance.
Concurrently with such contributions, the city shall contribute the amounts
provided by this Article. No credit shall be allowed for any period of
time for which contributions by the policeman have not been paid. It is the sole responsibility of the policeman to ensure that all sums contributed by the policeman have been received by the fund for the service credit for which the policeman has applied. The period
of service rendered by such policeman prior to the date he became a member
of the police department of the city or while detailed, assigned or on leave
of absence and employed in any of the departments set forth hereinabove
in this Section for which such policeman has contributed to this fund shall
be credited to him as service for all the purposes of this Article, except
that he shall not have any of the rights conferred by the provisions of
Sections 5-127 and 5-162 of this Article.
The changes in this Section made by Public Act 86-273 shall apply to members
of the fund who have not begun receiving a pension under this Article on August
23, 1989, without regard to whether employment is terminated before that date.
(Source: P.A. 102-125, eff. 7-23-21.)
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(40 ILCS 5/5-214.2) Sec. 5-214.2. Credit for certain law enforcement service. An active policeman who is a member of this Fund on or before the effective date of this Section may establish up to 10 years of additional service credit in 6-month increments for service in a law enforcement capacity under Articles 3, 7, 8, 9, 10, 13, 14, and 15 and Division 1 of Article 22, as a law enforcement officer with the Chicago Housing Authority, or as a law enforcement officer with any agency of the United States government, provided that: (1) service credit is not available for that employment under any other provision of this Article; (2) any service credit for that employment received under any other provision of this Code or under the retirement plan of the Chicago Housing Authority or Federal Employee Retirement System has been terminated; and (3) the policeman applies for this credit in writing within one year after the effective date of this Section and pays to the Fund within 5 years after the date of application an amount to be determined by the Fund in accordance with this Section. An active policeman who becomes a member of this Fund after the effective date of this Section may establish up to 10 years of additional service credit in 6-month increments for service in a law enforcement capacity under Articles 3, 7, 8, 9, 10, 13, 14, and 15 and Division 1 of Article 22, as a law enforcement officer with the Chicago Housing Authority, or as a law enforcement officer with any agency of the United States government, provided that: (1) service credit is not available for that employment under any other provision of this Article; (2) any service credit for that employment received under any other provision of this Code or under the retirement plan of the Chicago Housing Authority or Federal Employee Retirement System has been terminated; and (3) the policeman applies for this credit in writing within 2 years after he or she begins employment under this Article and pays to the Fund within 5 years after the date of application an amount to be determined by the Fund in accordance with this Section. The Fund must determine the policeman's payment required to establish creditable service under this Section by taking into account the appropriate actuarial assumptions, including without limitation the police officer's service, age, and salary history; the level of funding of the Fund; and any other factors that the Fund determines to be relevant. For this purpose, the policeman's required payment should result in no significant increase to the Fund's unfunded actuarial accrued liability determined as of the most recent actuarial valuation, based on the same assumptions and methods used to develop and report the Fund's actuarial accrued liability and actuarial value of assets under Statement No. 25 of Governmental Accounting Standards Board or any subsequent applicable Statement.
(Source: P.A. 95-1036, eff. 2-17-09; 96-285, eff. 8-11-09.) |
(40 ILCS 5/5-214.3)
Sec. 5-214.3. Credit for military service. A policeman may establish creditable service under this Article for all periods of service in the military, naval, or air forces of the United States entered upon before beginning service as an active policeman of a municipality, provided that the policeman pays into the fund the amount the policeman would have contributed if he or she had been a regular contributor during such period, plus an amount determined by the Board to be equal to the municipality's normal cost of the benefit, plus interest at the actuarially assumed rate calculated from the date the employee last became a policeman under this Article. The total amount of such creditable service shall not exceed 2 years.
(Source: P.A. 96-1260, eff. 7-23-10.) |
(40 ILCS 5/5-215) (from Ch. 108 1/2, par. 5-215)
Sec. 5-215.
Credit for certain contributions of park policemen.
The
1% deduction from salary made for costs of administration and ordinary
disability benefits from July 17, 1959 to December 31, 1959, both
inclusive, from the salaries of the members of the Park Policemen's
Annuity Fund merged with this fund January 1, 1960 shall be credited to
such members who are in active service on July 31, 1961. The credit or
any remainder thereof shall be applied against any contribution of the policeman
required to be made for age and service
annuities in this fund.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-216) (from Ch. 108 1/2, par. 5-216)
Sec. 5-216.
When annuity or benefit not payable.
Except as may be otherwise provided herein, no annuity, pension or
other benefit shall be paid to a policeman or widow, based upon any
salary paid by virtue of a temporary appointment; and no disability
benefit shall be paid for any period during which he is receiving wages
or compensation from any statutory body supported in whole or in part by
taxation; and no annuity shall be paid to any policeman or widow who has
received a refund of salary deductions or other contributions unless
such amount so refunded shall have been repaid into the fund in
accordance with this Article.
No annuity shall be paid pursuant to Sections 5-127, 5-145, or
5-162 of this Article, or service credit allowed for any annuity or
disability benefit purposes for any period of time (except as provided
in Section 5-213 of this Article) for which a policeman has not contributed
to this fund
or to any police pension fund superseded by
this fund, through salary deductions or otherwise, unless he or his
widow or both, have paid into this fund within one year from July 1,
1929, or within one year from the date of any re-entrance or
reinstatement in the service subsequent to July 1, 1929, the amounts
he would have contributed to this fund
or to any such superseded police
pension fund (had deduction been made from his full
salary as such policeman during every period of service for which he has not in fact
contributed), together with interest at 4% per year on such amounts from
the dates upon which they respectively become due, until the date such
amounts have been paid. If such payment be not made in full within the
time specified herein, the board shall, at the expiration of such time,
refund to the policeman or to his widow, and if there is no widow then
in accordance with Section 5-167 of this Article, any partial payment
which has been made, together with interest of 4% per year to the date
of expiration of the period during which payment should have been made.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-217) (from Ch. 108 1/2, par. 5-217)
Sec. 5-217.
Policemen in territory annexed.
Whenever any territory is annexed to the city, any person then employed
as a policeman in the annexed territory who is employed by the city on the
date of annexation as a policeman shall automatically come under the
provisions of this Article and any term of service rendered by him in such
territory shall be considered, for the purpose of this Article, as a term
of service rendered in the city.
Any such policeman shall in every respect, as of the date the annexation
comes into effect, be considered a present employee of the city on the
effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-218) (from Ch. 108 1/2, par. 5-218)
Sec. 5-218.
Annuities, etc.
- Exempt.
All pensions, annuities, refunds or disability benefits granted under
this Article, and every portion thereof, are exempt from attachment or
garnishment process and shall not be seized, taken, subjected to, detained
or levied upon by virtue of any judgment, or any process
or proceeding
whatsoever issued out of or by any court for the payment and satisfaction
in whole or in part of any debt, damage, claim, demand, or judgment against
a pensioner, annuitant, refund applicant or other beneficiary hereunder.
No pensioner, annuitant, refund applicant or disability beneficiary has
a right to transfer or assign his or her pension, annuity, refund or
disability benefit or any part thereof by mortgage or otherwise, except
that a pensioner or annuitant may direct in writing that payment be made
monthly, in a fixed amount, for hospitalization purposes.
The board, in its discretion, may pay to the wife or unmarried minor
child of an annuitant, pensioner, refund applicant or disability
beneficiary, such amount out of the annuity, pension, refund or disability
benefit as a court may order, or such amount as the board may consider
necessary for the support of such wife or child (or both) in the event of
his disappearance or unexplained absence or his failure to support his wife
or child, or both.
The board may also withhold from any future annuity, pension, refund or
disability benefit payments such amount, or amounts, as it may, in its
discretion, set for the purpose of repayment of any moneys paid to an
annuitant, pensioner, refund applicant or disability beneficiary through
misrepresentation, fraud or error; provided that when any pension or
annuity is claimed to have been paid erroneously to a policeman who retired
prior to the effective date and the policeman has subsequently re-entered
the service and resumed contributions to the fund, no part of any future
annuity or disability benefit payable to him when he again becomes
separated from the service shall be retained or withheld for repayment into
the fund of any deficiency due from him on account of any pension or
annuity prior to such re-entry if such original pension or annuity was paid
without any misrepresentation by the policeman as to his age or period of
service in the procuring of such prior pension. Any authorized action taken
by the board shall relieve and release the board and the fund from any
liability for any moneys retained or paid out as herein provided.
Whenever money is payable to a minor or to a person adjudged to be under
legal disability to manage or care for his own estate, the board may,
in its discretion when to the apparent interest of the minor or person under
legal disability, waive guardianship proceedings and
pay such money to the person providing for or caring for the minor, and to
the wife, parent or blood relative providing or caring for the person under
legal disability.
Whenever a pensioner, annuitant, refund applicant or disability
beneficiary disappears or his whereabouts are unknown and it cannot be
ascertained whether or not he is living, there shall be paid to his wife or
his children, or both, under this section, such amount only as will not be
in excess of the amount which would be payable in the event the pensioner,
annuitant, refund applicant or disability beneficiary had died on the date
of his disappearance; and, in the event of his subsequent return, or upon
satisfactory proof of his being alive, the amount theretofore paid shall be
charged against any moneys payable to him under any of the provisions of
this Article to the same effect as though the payment to his wife or
children, or both, had been an allowance to her or them out of the moneys
payable to him as such pensioner, annuitant, refund applicant or disability
beneficiary.
(Source: P.A. 83-706.)
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(40 ILCS 5/5-219) (from Ch. 108 1/2, par. 5-219)
Sec. 5-219.
Park Policemen's Annuity Fund Act superseded.
From January 1, 1960, the fund herein provided for shall supersede
and take the place of the Park Policemen's Annuity Fund established
under the Park Policemen's Annuity Act. The Park Policemen's Annuity
Fund as of such date shall be merged into and become a part of the fund
herein provided for. The fund shall be construed to be a continuation of
such Park Policemen's Annuity Fund and all monies, securities,
properties and any and all other assets of such annuity and benefit
fund, shall, on the first day of January, 1960, be transferred by the
retirement board of the Park Policemen's Annuity Fund to the board of
the fund herein provided for. The board established under this Article
shall receive the aforesaid assets which shall be allocated to the
several reserves created by this Article for the purposes thereof. All
participants of the superseded fund shall have the same rights and
benefits and be subject to the same duties and responsibilities as if
they had originally been participants of this fund from the first date
of employment as members of the active service in the police department
of any park district or as a retirement board employee of such
superseded fund.
All annuities, pensions and other benefits allowed prior to the first
day of January, 1960, by the retirement board of such superseded Park
Policemen's Annuity Fund shall thereafter be assumed and paid from this
fund according to the law under which such annuities, pensions or other
benefits were allowed.
All claims for any annuity, pension or other benefit from such Park
Policemen's Annuity Fund pending or ungranted on January 1, 1960, shall
be allowed or disallowed by the board established under this Article
according to the provisions of the Park Policemen's Annuity Act, and
those which are allowed shall be paid from the fund herein provided for;
provided, that whenever any claim shall hereafter be made or proceedings
at law instituted under any Act in effect prior to January 1, 1960, no
amount of annuities for any prior period shall be allowed or paid for
any period of time greater than a period of one year prior to the date
of the filing of the claim or the date of the institution of such legal
proceedings, the intent being that any annuity or benefit hereafter
granted or ordered under any such superseded Act shall be so granted or
ordered as of the date not more than one year prior to the date of the
filing of the claim for such annuity or benefit or of the institution of
the legal proceedings thereof.
The proceeds of taxes levied for the year 1959 and prior years
pursuant to Section 9 of the Park Policemen's Annuity Act, including
delinquent and uncollected taxes, shall, when collected, be paid by the
county treasurer into the fund herein provided for.
If a retirement board employee for the superseded Park Policemen's
Annuity Fund has not applied for or received a refund of his
contributions prior to January 1, 1960, under Section 37 of the Park
Policemen's Annuity Act, he may thereafter apply for and receive such
refund from the fund created by this Article. If such refunds are not
applied for after January 1, 1960, and any such retirement board
employee is employed by a governmental unit which has accepted the
provisions of the "Retirement Systems Reciprocal Act", approved July 11,
1955, as amended, the amount of such employee's and park district
contributions to his credit which have been transferred to the fund
established by this Article shall, upon request of the retirement board
of the fund in which the employee is a participant, or upon request of
the employee, be transferred by the board to the retirement system in
which the employee is a participant. The service, earnings and contributions
credits
earned by the employee in the superseded Park Policemen's Annuity Fund
shall be preserved, and, in the application of the "Retirement Systems
Reciprocal Act", the retirement system to which such contributions have
been transferred shall grant credit for the service, earnings and contributions
and consider such credits in calculating all benefits.
If any such employee has accepted a
refund of his contributions, upon subsequent employment by a
governmental unit which has accepted the provisions of the "Retirement
Systems Reciprocal Act", he may reinstate his credits earned in the
superseded Park Policemen's Annuity Fund by repayment to the retirement
fund in which he is a participant in the manner and subject to the
conditions of the "Retirement Systems Reciprocal Act", and, in such
case, the retirement system which has received such repayment shall grant
credit for the service, earnings and contributions credited by such superseded
fund and consider such credits in calculating all benefits.
All rights, credits and equities earned under the provisions of the
Park Policemen's Annuity Fund shall be preserved and shall not be
affected or impaired by the supersession of said fund by the city
policemen's annuity fund. Such rights, credits and equities shall be
considered to have accrued and been earned under the provisions of this
Article.
(Source: P.A. 82-783.)
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(40 ILCS 5/5-220) (from Ch. 108 1/2, par. 5-220)
Sec. 5-220.
No compensation.
A member of a Board of Trustees of an annuity and benefit fund provided
for in this Article shall not receive any moneys from a pension fund as
salary for service performed as a member of such board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-221) (from Ch. 108 1/2, par. 5-221)
Sec. 5-221.
No commissions on investments.
No member of the Board of Trustees and no person officially connected
with the board either as an employee or as legal advisor thereof or as a
custodian of the fund, shall receive any commissions on account of any
investment made by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-222) (from Ch. 108 1/2, par. 5-222)
Sec. 5-222.
Facilities for board meetings.
Suitable rooms for office and meetings of the Board of Trustees of an
annuity and benefit fund provided for in this Article shall be provided by
the mayor of the city.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-223) (from Ch. 108 1/2, par. 5-223)
Sec. 5-223.
Age stated in employment application to be conclusive.
For any policeman, as defined in this Article, who has filed an
application for appointment as a member of the police department of the
city, the age therein stated shall be conclusive evidence of his age for
the purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-224) (from Ch. 108 1/2, par. 5-224)
Sec. 5-224.
Duties of city officers.
It shall be the duty of the proper officers of the city, without cost
to the fund, to:
(a) Deduct the sums required by this Article from the
salaries of
policemen, as defined in this Article, and pay such sums to the board of
the fund in such manner as the board specifies;
(b) On the first day of each month, notify the board of the
employment of any new policemen and of all discharges, resignations, and
suspensions from the service, deaths, and changes in salary which have
occurred during the preceding month, and the dates when any such events
occurred;
(c) Transmit to the board, in such form and at such time as the
board specifies, all information requested by the board concerning the
service, age, salary, residence, marital status, wife or widow,
children, parents, physical condition, mental condition, and death of
any policemen employed by the city; in particular, information
concerning service rendered by any such policemen prior to the effective
date set forth in this Article;
(d) Convey to the board all information required by the board
concerning each newly appointed or reappointed policeman immediately
after such appointment or reappointment;
(e) Certify to the board, as of some day in each year to be fixed by
the board, the name of each policeman to whom this Article applies;
(f) Keep such records concerning policemen as the board may
reasonably require and may specify.
(Source: P.A. 81-1536.)
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(40 ILCS 5/5-225) (from Ch. 108 1/2, par. 5-225)
Sec. 5-225.
Duty to comply with Article.
It shall be the duty of all officers, officials, and employees of such
city to perform any and all acts required to carry out the intent and
purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-226) (from Ch. 108 1/2, par. 5-226)
Sec. 5-226. Examination
and report by Director of Insurance.
The Director of Insurance biennially shall make a thorough examination
of the fund provided for in this Article. He or she shall report the results
thereof with such recommendations as he or she deems proper to the Governor for
transmittal to the General Assembly, and send a copy to the board and to
the city council of the city. The city council shall file such report and
recommendations in the official record of its proceedings.
The requirement for reporting to the General Assembly shall be satisfied
by filing copies of the report as required
by Section 3.1 of the General Assembly Organization Act, and filing such additional copies
with the State Government Report Distribution Center for the General Assembly
as is required under
paragraph (t) of Section 7 of the State Library Act.
(Source: P.A. 100-1148, eff. 12-10-18.)
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(40 ILCS 5/5-227) (from Ch. 108 1/2, par. 5-227)
Sec. 5-227. Felony conviction. None of the benefits provided for in this
Article shall be paid to any person who is convicted of any felony relating
to or arising out of or in connection with his service as a policeman.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the policeman from whom the benefit results. None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony while in receipt of disability benefits.
None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with the intentional and wrongful death of a police officer,
either active or retired, through whom such person would become eligible
to receive, or is receiving, an annuity under this Article.
A person who intentionally and unjustifiably causes delay in proceedings in which the person is ultimately convicted of a felony relating to or arising out of or in connection with his service as a policeman shall not be entitled to any benefits provided for in this Article on and after the filing date of the related indictment or charges. This paragraph applies to all persons whose felony conviction was entered on or after January 1, 2019. Any refund required under this Article shall be calculated based on that person's contributions to the Fund, less the amount of any annuity benefit previously received by the person or his or her beneficiaries. This paragraph applies to all persons who make an application for refund to the Fund on or after January 1, 2019. This Section shall not operate to impair any contract or vested right heretofore
acquired under any law or laws continued in this Article, nor to preclude
the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants entering service subsequent to July 11, 1955, shall
be deemed to have consented to the provisions of this Section as a
condition of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17; 101-387, eff. 8-16-19.)
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(40 ILCS 5/5-228) (from Ch. 108 1/2, par. 5-228)
Sec. 5-228. Administrative review. (a) The provisions of the Administrative Review Law,
and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the retirement board
provided for under this Article. The term "administrative decision" is as
defined in Section 3-101 of the Code of Civil Procedure. (b) If any policeman whose application for either a duty disability benefit
under Section 5-154 or for an occupational disease disability benefit under
Section 5-154.1 has been denied by the Retirement Board brings an action for
administrative review challenging the denial of disability benefits and the
policeman prevails in the action in administrative review, then the prevailing
policeman shall be entitled to recover from the Fund court costs and litigation
expenses, including reasonable attorney's fees, as part of the costs of the
action.
(Source: P.A. 101-387, eff. 8-16-19.)
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(40 ILCS 5/5-229) (from Ch. 108 1/2, par. 5-229)
Sec. 5-229.
General provisions and savings clause.
The provisions of Article
1 and Article 23 of this Code apply to this Article as though such provisions
were fully set forth in this Article as a part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/5-229.1) (from Ch. 108 1/2, par. 5-229.1)
Sec. 5-229.1.
Effective date of amendments.
The amendments made to
Sections 5-128, 5-129, 5-131, 5-137, 5-138, 5-141, 5-146, 5-154, 5-155,
5-159, 5-165, 5-169, 5-170 and 5-199 (relating to attainment of age
63) by this amendatory Act of 1989 shall be retroactive to January 1, 1988.
(Source: P.A. 86-272.)
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(40 ILCS 5/5-230) (from Ch. 108 1/2, par. 5-230)
Sec. 5-230.
General Assembly.
(a) Any active (and until February 1, 1993, any former) member of the
General Assembly Retirement System may apply for transfer of his credits
and creditable service accumulated under this Fund to the General Assembly
System. Such credits and creditable service shall be transferred
forthwith. Payment by this Fund to the General Assembly Retirement System
shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active (and until February 1, 1993, a former) member of the
General Assembly may reinstate service and service credits terminated upon
receipt of a refund or separation benefit, by payment to the Fund of
the amount of the separation benefit plus interest thereon from the date
of the refund to the date of payment.
(Source: P.A. 87-1265.)
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(40 ILCS 5/5-231) (from Ch. 108 1/2, par. 5-231)
Sec. 5-231.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer and
employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/5-232) (from Ch. 108 1/2, par. 5-232)
Sec. 5-232.
(a) Any active member of the Judges Retirement System
of Illinois may apply for transfer of his credits and creditable service accumulated
under this Fund to the Judges Retirement System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the Judges
Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding any additional
or optional credits, which credits shall be refunded to the applicant; and
(2) municipality credits computed and credited under this Article, including
interest, on the books of the Fund on the date the member terminated service
under the Fund.
Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the Judges Retirement System may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 85-1008.)
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(40 ILCS 5/5-233) (from Ch. 108 1/2, par. 5-233)
Sec. 5-233.
Transfer of creditable service to Article 8, 9 or 13 fund.
(a) Any city officer as defined in Section 8-243.2 of this Code, any county
officer elected by vote of the people who is a participant in a pension fund
established under Article 9 of this Code, any county police officer who is a
participant in a pension fund established under Article 9 of this Code, and any
elected sanitary district commissioner who is a participant in a pension fund
established under Article 13 of this Code, may apply for transfer of his or her
credits and creditable service accumulated in this Fund to such Article 8, 9 or
13 fund. Such transfer shall be made forthwith. Payment by this Fund to the
Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts credited to the applicant through | ||
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(2) municipality contributions equal to the | ||
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Participation in this Fund shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary district
commissioner, and any such county police officer, may reinstate credits
and creditable service terminated upon receipt of a refund, by payment to
the Fund of the amount of the refund with interest thereon at the rate of
6% per year to the date of payment.
(Source: P.A. 86-1488; 87-1265.)
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(40 ILCS 5/5-233.1)
Sec. 5-233.1.
Transfer of creditable service to Article 8 or 11 fund.
A person who (i) is an active participant in a fund established under
Article 8 or 11 of this Code and (ii) has at least 10 and no more than 22
years of creditable service in this Fund may, within the 90 days following
the effective date of this Section, apply for transfer of his or her
credits and creditable service accumulated in this Fund to the Article 8
or 11 fund. At the time of the transfer, this Fund shall pay to the Article
8 or 11 fund an amount consisting of:
(1) the amounts credited to the applicant through | ||
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(2) the corresponding municipality credits, including | ||
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Participation in this Fund with respect to the credits transferred shall
terminate on the date of transfer.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/5-234) (from Ch. 108 1/2, par. 5-234)
Sec. 5-234. Transfer of credits. (a) Any police officer who has at least 10
years of creditable service in the Fund may transfer to this Fund credits
and creditable service accumulated under any other pension fund or
retirement system established under Article 8 or 12 of this Code, by making
application and paying to the Fund before January 1, 1990 the amount by
which the employee contributions that would have been required if he had
participated in this Fund during the period for which credit is being
transferred, plus interest, exceeds the amount
actually transferred from such other fund or system to this Fund under item
(1) of Section 8-226.5 or item (1) of Section 12-127.5.
(b) Any police officer who has at least 10 years of creditable service in the Fund may transfer to this Fund up to 48 months of creditable service accumulated under Article 9 of this Code as a correctional officer with the county department of corrections prior to January 1, 1994, by making application to the Fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and by paying to the Fund an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the Fund under Section 9-121.17 and the amounts that would have been contributed had such contributions been made at the rates applicable to members of this Fund, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. (Source: P.A. 96-727, eff. 8-25-09.)
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(40 ILCS 5/5-235) (from Ch. 108 1/2, par. 5-235)
Sec. 5-235.
(a) Until July 1, 1990, any active or inactive
member of the Illinois
Municipal Retirement Fund who has been a county sheriff may apply for transfer of
his creditable service accumulated under this
Article to the Illinois Municipal Retirement Fund. Such creditable service
shall be transferred only upon payment by the Fund to the
Illinois Municipal Retirement Fund of an amount equal to:
(1) the amounts accumulated to the credit of the applicant on the books
of the Fund on the date of transfer; and
(2) municipality credits computed and credited under this Article,
including interest, on the books of the Fund on the date the member
terminated service under the Fund; and
(3) any interest paid by the applicant in order to reinstate service.
Participation in this Fund shall terminate on the date of transfer.
(b) Until July 1, 1990, any person transferring credit under this
Section may reinstate service
which was terminated by receipt of a refund, by payment to the Fund
of the amount of the refund with interest thereon at the rate
of 6% per year, compounded annually, from the date of refund to the date
of payment.
(Source: P.A. 86-273; 86-1028.)
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(40 ILCS 5/5-236) (from Ch. 108 1/2, par. 5-236)
Sec. 5-236. Transfer to Article 14.
(a) Any active member of the State Employees'
Retirement System who is a State policeman, conservation police officer, an investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the
Secretary of State may apply for transfer of some or all of his or her
creditable service
accumulated under this Article to the State Employees' Retirement System in accordance with Section 14-110.
At the time of the transfer the Fund shall pay to the State Employees'
Retirement System an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) the corresponding municipality credits, including | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in this Fund with respect to the service to be transferred shall terminate on the date of transfer.
(b) Any such State policeman, conservation police officer, or investigator
for the Secretary of State may reinstate service that was terminated by
receipt of a refund, by paying to the Fund the amount of the refund with
interest thereon at the actuarially assumed rate of interest, compounded annually, from the
date of refund to the date of payment.
(c) Within 30 days after the effective date of this amendatory Act of
1993, any active member of the State Employees' Retirement System who was
earning eligible creditable service under subdivision (b)(12) of Section
14-110 on January 1, 1992 and who has at least 17 years of creditable
service under this Article may apply for transfer of his creditable service
accumulated under this Article to the State Employees' Retirement System.
At the time of the transfer the Fund shall pay to the State Employees'
Retirement System an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) the corresponding municipality credits, including | ||
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Participation in this Fund shall terminate on the date of transfer.
(Source: P.A. 95-530, eff. 8-28-07; 96-745, eff. 8-25-09.)
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(40 ILCS 5/5-237)
Sec. 5-237.
Transfer of creditable service to Article 9 fund.
(a) Any person who is an active participant in the pension fund established
under Article 9 of this Code and who was employed by the office of the Cook
County State's Attorney on January 1, 1995 may apply for transfer of his or
her credits and creditable service accumulated in this Fund to that Article
9 fund. Upon receipt of a written application to make this transfer, the Fund
shall pay to the Article 9 fund an amount consisting of:
(1) the amounts credited to the applicant through | ||
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(2) an amount representing municipality | ||
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(3) any interest paid to the Fund in order to | ||
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Participation in this Fund shall terminate on the date of the transfer.
(a-5) Until July 1, 1998, any person who is an active participant in the
pension fund established under Article 9 of this Code and a member of the
county police department as defined in Section 9-128.1 may apply for transfer
of his or her credits and creditable service accumulated in this Fund to that
Article 9 fund. Upon receipt of a written application to make this transfer,
the Fund shall pay to the Article 9 fund an amount consisting of:
(1) the amounts credited to the applicant through | ||
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(2) an amount representing municipality | ||
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(3) any interest paid to the Fund in order to | ||
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Participation in this Fund shall terminate on the date of the transfer.
(b) As part of a transfer under subsection (a) or (a-5), a person may
reinstate credits and creditable service that was terminated upon receipt of a
refund, by paying to the Fund the amount of the refund plus interest thereon at
the rate of 6% per year, compounded annually, from the date of the refund to
the date of payment.
(Source: P.A. 89-136, eff. 7-14-95; 90-32, eff. 6-27-97.)
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(40 ILCS 5/5-237.5) Sec. 5-237.5. Transfer of creditable service to Article 3 fund. (a) Any person who is an active participant in a pension fund established under Article 3 of this Code may, for a period of 60 days after the effective date of this Section, apply for transfer of his or her credits and creditable service accumulated in this Fund to that Article 3 fund. Upon receipt of a written application to make this transfer, the Fund shall pay to the Article 3 fund an amount consisting of: (1) the amounts credited to the applicant through | ||
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(2) an amount representing municipality | ||
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(3) any interest paid to the Fund in order to | ||
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Participation in this Fund shall terminate on the date of the transfer. (b) As part of a transfer under subsection (a), a person may reinstate credits and creditable service that was terminated upon receipt of a refund, by paying to the Fund the amount of the refund plus interest thereon at the actuarially assumed rate, compounded annually, from the date of the refund to the date of payment.
(Source: P.A. 97-326, eff. 8-12-11.) |
(40 ILCS 5/5-238) Sec. 5-238. Provisions applicable to new hires; Tier 2. (a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1, 2011, and to certain qualified survivors of such a policeman. Such persons, and the benefits and restrictions that apply specifically to them under this Article, may be referred to as "Tier 2". (b) A policeman who has withdrawn from service, has attained age 50 or more, and has 10 or more years of service in that capacity shall be entitled, upon proper application being received by the Fund, to receive a Tier 2 monthly retirement annuity for his service as a police officer. The Tier 2 monthly retirement annuity shall be computed by multiplying 2.5% for each year of such service by his or her final average salary, subject to an annuity reduction factor of one-half of 1% for each month that the police officer's age at retirement is under age 55. The Tier 2 monthly retirement annuity is in lieu of any age and service annuity or other form of retirement annuity under this Article. The maximum retirement annuity under this subsection (b) shall be 75%
of final average salary. For the purposes of this subsection (b), "final average salary" means the average monthly salary obtained by dividing the total salary of the policeman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual salary
based on the plan year of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. (c) Notwithstanding any other provision of this Article, for a person who first becomes a policeman under this Article on or after January 1, 2011, eligibility for and the amount of the annuity to which the qualified surviving spouse, children, and parents are entitled under this subsection (c) shall be determined as follows: (1) The surviving spouse of a deceased policeman to | ||
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As used in this subsection (c), "earned annuity" | ||
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(A) If the deceased policeman was receiving an | ||
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(B) If the deceased policeman was not receiving | ||
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(C) If the deceased policeman was an active | ||
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(D) If the performance of an act or acts of | ||
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(E) Notwithstanding any other provision of this | ||
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For the purposes of this Section, "consumer price | ||
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(F) Notwithstanding the other provisions of this | ||
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(2) Surviving children of a deceased policeman | ||
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(3) Surviving parents of a deceased policeman subject | ||
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(d) The General Assembly finds and declares that the provisions of this Section, as enacted by Public Act 96-1495, require clarification relating to necessary eligibility standards and the manner of determining and paying the intended Tier 2 benefits and contributions in order to enable the Fund to unambiguously implement and administer benefits for Tier 2 members. The changes to this Section and the conforming changes to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the changes to subsection (a) of that Section), 5-169, and 5-170 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this Section as enacted by Public Act 96-1495, and are hereby declared to represent and be consistent with the original and continuing intent of this Section and Public Act 96-1495. (e) The changes to Sections 5-153, 5-155, 5-163, 5-167.1 (except for the changes to subsection (a) of that Section), 5-169, and 5-170 made by this amendatory Act of the 99th General Assembly are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1495) and, for the purposes of Section 1-103.1 of this Code, they apply without regard to whether the relevant policeman
was in service on or after the effective date of this amendatory Act of the 99th General Assembly. (Source: P.A. 99-905, eff. 11-29-16.) |
(40 ILCS 5/Art. 6 heading) ARTICLE 6.
FIREMEN'S ANNUITY AND BENEFIT FUND--CITIES OVER 500,000
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(40 ILCS 5/6-101) (from Ch. 108 1/2, par. 6-101)
Sec. 6-101.
Creation of fund.
In each city of more than 500,000 inhabitants, a firemen's annuity and
benefit fund shall be created, set apart, and maintained, for the benefit
of its firemen, their widows, children and parents, and of all contributors
to, participants in, and beneficiaries of any firemen's pension fund in
operation, by authority of law, in such city immediately prior to the
effective date. For the purposes of this Article, the firemen's annuity and
benefit fund may be referred to as the "fund".
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-102) (from Ch. 108 1/2, par. 6-102)
Sec. 6-102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 6-103 to 6-117, inclusive, except when the context otherwise
requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-103) (from Ch. 108 1/2, par. 6-103)
Sec. 6-103.
Firemen's Annuity and Benefit Fund Act of the Illinois Municipal Code.
"Firemen's Annuity and Benefit Fund Act of the Illinois Municipal Code":
Division 9 of Article 10 of the Illinois Municipal Code, being a
continuation of "An Act to provide for the creation, setting apart,
maintenance and administration of a firemen's annuity and benefit fund in
cities having a population exceeding five hundred thousand inhabitants",
approved June 12, 1931, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-104) (from Ch. 108 1/2, par. 6-104)
Sec. 6-104.
Effective date.
"Effective date": July 1, 1931, for any city covered by the "Firemen's
Annuity and Benefit Fund of the Illinois Municipal Code" on the date this
Article comes in effect; and the date thereafter that any other city first
comes under the provisions of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-105) (from Ch. 108 1/2, par. 6-105)
Sec. 6-105.
Retirement board or board.
"Retirement board" or "board": The board of trustees of the Firemen's
Annuity and Benefit Fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-106) (from Ch. 108 1/2, par. 6-106)
Sec. 6-106. Fireman. "Fireman": Any person who:
(a) was, is, or shall be employed by a city in its fire service as a
fireman, fire paramedic, fire engineer, marine engineer, or fire pilot,
and whose duty is
to participate in the work of controlling and extinguishing fire at the
location of any such fire, whether or not he is assigned to fire service
other than the actual extinguishing of fire;
(b) is employed in the fire service of a city on the effective date,
whose duty shall not be as hereinbefore stated, but who shall then be a
contributor to, participant in, or beneficiary of any firemen's pension
fund in operation by authority of law in such city on said date, unless he
applies to the retirement board, within 90 days from the effective date,
for exemption from the provisions of this Article. Any person who would
have been entitled on July 1, 1931 to membership in this fund by reason of
the definition of the word "fireman" contained in "An Act to provide for a
firemen's pension fund and to create a board of trustees to administer said
fund in cities having a population exceeding two hundred thousand (200,000)
inhabitants", filed July 14, 1917, as amended, who has not filed with the
board prior to July 1, 1941, a written application to be a member shall not
be a fireman within the meaning of this Article; or (c) made the election under Section 6-230.
(Source: P.A. 100-1144, eff. 11-28-18.)
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(40 ILCS 5/6-106.1) (from Ch. 108 1/2, par. 6-106.1)
Sec. 6-106.1.
Gender.
The masculine gender wherever used in this
Article includes the female gender and all annuities and benefits
applicable to male firemen and their survivors and the contributions to
be made for widows' annuities or other benefits shall apply with equal
force to female firemen and their survivors without any modification or
distinction whatsoever.
(Source: P.A. 80-899.)
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(40 ILCS 5/6-107) (from Ch. 108 1/2, par. 6-107)
Sec. 6-107.
Present employee.
"Present employee": Any person employed by a city as a fireman on the
day before the effective date; also any fireman receiving a pension on
account of disability from any firemen's pension fund in operation, by
authority of law, in such city immediately prior to the effective date,
when such fireman recovers from the disability and is reinstated into
active service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-108) (from Ch. 108 1/2, par. 6-108)
Sec. 6-108.
Future entrant.
"Future entrant": Any person employed as a fireman of a city for the
first time on or after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-109) (from Ch. 108 1/2, par. 6-109)
Sec. 6-109. Active fireman.
"Active fireman": Any person employed and receiving salary as a fireman. "Active fireman" also includes a person who made the election under Section 6-230 and is serving in a position covered under Section 8-243.
(Source: P.A. 100-1144, eff. 11-28-18.)
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(40 ILCS 5/6-110) (from Ch. 108 1/2, par. 6-110)
Sec. 6-110.
Act of duty.
"Act of duty": Any act imposed on an active fireman by the ordinances of
a city, or by the rules or regulations of its fire department, or any act
performed by an active fireman while on duty, having for its direct purpose
the saving of the life or property of another person.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-111)
(from Ch. 108 1/2, par. 6-111)
Sec. 6-111. Salary. "Salary": Subject to Section 6-211, the annual salary
of a fireman, as follows:
(a) For age and service annuity, minimum annuity, and disability
benefits, the actual amount of the annual salary, except as otherwise
provided in this Article.
(b) For prior service annuity, widow's annuity, widow's prior
service annuity and child's annuity to and including August 31, 1957,
the amount of the annual salary up to a maximum of $3,000.
(c) Except as otherwise provided in Section 6-141.1, for widow's annuity,
beginning September 1, 1957, the amount of annual salary up to a maximum of
$6,000.
(d) "Salary" means the actual amount of the annual salary attached to the
permanent career service rank held by the fireman, except as provided in
subsections (e) and (e-5).
(e) In the case of a fireman who holds an exempt position above career
service rank:
(1) For the purpose of computing employee and city | ||
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(2) For the purpose of computing benefits: "salary" | ||
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(e-5) In the case of a person who made the election | ||
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(f) Beginning on the effective date of this amendatory Act of the 93rd
General Assembly, and for any prior periods for which contributions have been
paid under subsection (g) of this Section, all salary payments made to any
active or former fireman who holds or previously held the permanent assigned
position or classified career service rank, grade, or position of ambulance
commander shall be included as salary for all purposes under this Article.
(g) Any active or former fireman who held the permanent assigned position or
classified career service rank, grade, or position of ambulance commander may
elect to have the full amount of the salary attached to that permanent
assigned position or classified career service rank, grade, or position
included
in the calculation of his or her salary for any period during which the fireman
held the permanent assigned position or classified career service rank, grade,
or position of ambulance commander by applying in writing and making all
employee and employer contributions, without interest, related to the actual
salary payments corresponding to the permanent assigned position or classified
career service rank, grade, or position of ambulance commander for all periods
beginning on or after January 1, 1995. All applicable contributions must be
paid in full to the Fund before January 1, 2006 before the payment of any
benefit under this subsection (g) will be made.
Any former fireman or widow of a fireman who (i) held the permanent assigned
position or classified career service rank, grade, or position of ambulance
commander, (ii) is in receipt of annuity on the effective date of this
amendatory Act of the 93rd General Assembly, and (iii) pays to the Fund
contributions under this subsection (g) for salary payments at the permanent
assigned position or classified career service rank, grade, or position of
ambulance commander shall have his or her annuity recalculated to reflect the
ambulance commander salary and the resulting increase shall become payable on
the next annuity payment date following the date the contribution is received
by the Fund.
In the case of an active or former fireman who (i) dies before January 1,
2006 without making an election under this subsection and (ii) was eligible to
make an election under this subsection at the time of death (or would have been
eligible had the death occurred after the effective date of this amendatory
Act), any surviving spouse, child, or parent of the fireman who is eligible
to receive a benefit under this Article based on the fireman's salary may make
that election and pay the required contributions on behalf of the deceased
fireman. If the death occurs within the 30 days immediately preceding January
1, 2006, the deadline for application and payment is extended to January 31,
2006.
Any portion of the compensation received for service as an ambulance
commander for which the corresponding contributions have not been paid
shall not be included in the calculation of salary.
(h) Beginning January 1, 1999, with respect to a fireman who is licensed by
the State as an Emergency Medical Technician, references in this Article to the
fireman's salary or the salary attached to or appropriated for the permanent
assigned position or classified career service rank, grade, or position of the
fireman shall be deemed to include any additional compensation payable to the
fireman by virtue of being licensed as an Emergency Medical Technician, as
provided under a collective bargaining agreement with the city.
(i) Beginning on the effective date of this amendatory Act of the 93rd
General Assembly (and for any period prior to that date for which contributions
have been paid under subsection (j) of this Section), the salary of a fireman,
as calculated for any purpose under this Article, shall include any duty
availability pay received by the fireman (i) pursuant to a collective
bargaining agreement or (ii) pursuant to an appropriation ordinance in an
amount equivalent to the amount of duty availability pay received by other
firemen pursuant to a collective bargaining agreement, and references in this
Article to the salary attached to or appropriated for the permanent assigned
position or classified career service rank, grade, or position of the fireman
shall be deemed to include that duty availability pay.
(j) An active or former fireman who received duty availability pay at any
time after December 31, 1994 and before the effective date of this amendatory
Act of the 93rd General Assembly and who either (1) retired during that period
or (2) had attained age 46 and at least 16 years of service by the effective
date of this amendatory Act may elect to have that duty availability pay
included in the calculation of his or her salary for any portion of that period
for which the pay was received, by applying in writing and paying to the Fund,
before January 1, 2006, the corresponding employee contribution,
without interest.
In the case of an applicant who is receiving an annuity at the time the
application and contribution are received by the Fund, the annuity shall be
recalculated and the resulting increase shall become payable on the next
annuity payment date following the date the contribution is received by the
Fund.
In the case of an active or former fireman who (i) dies before January 1,
2006 without making an election under this subsection and (ii) was eligible to
make an election under this subsection at the time of death (or would have been
eligible had the death occurred after the effective date of this amendatory
Act), any surviving spouse, child, or parent of the fireman who is eligible to
receive a benefit under this Article based on the fireman's salary may make
that election and pay the required contribution on behalf of the deceased
fireman. If the death occurs within the 30 days immediately preceding January
1, 2006, the deadline for application and payment is extended to January 31,
2006.
Any duty availability pay for which the corresponding employee contribution
has not been paid shall not be included in the calculation of salary.
(k) The changes to this Section made by this amendatory Act of the 93rd
General Assembly are not limited to firemen in service on or after the
effective date of this amendatory Act.
(Source: P.A. 100-1144, eff. 11-28-18.)
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(40 ILCS 5/6-112) (from Ch. 108 1/2, par. 6-112)
Sec. 6-112.
"Disability":
A condition of physical or mental incapacity to
perform any assigned duty or duties in the fire service.
"Injury": Damage suffered by or hurt done to a fireman.
"Occupational Disease": A sickness, disease or illness of the heart,
lungs, or respiratory tract of a fireman, arising solely out of his
employment as a fireman, due to exposures to heat and extreme cold,
inhalation of heavy smoke, fumes or poisonous, toxic or chemical gases
while in the performance of active duty in the fire department. "Occupational
Disease" also includes cancer.
(Source: P.A. 83-661.)
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(40 ILCS 5/6-113) (from Ch. 108 1/2, par. 6-113)
Sec. 6-113.
Compulsory retirement.
"Compulsory retirement": Separation of a fireman from the service due to
his reaching an age set by law or ordinance beyond which the fireman is
prohibited from working as a fireman.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-114) (from Ch. 108 1/2, par. 6-114)
Sec. 6-114.
Withdrawal, withdrawal from service, or withdrawn from service.
"Withdrawal", "withdrawal from service", or "withdrawn from service":
The discharge, resignation or complete separation from service of a
fireman, other than death.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-115) (from Ch. 108 1/2, par. 6-115)
Sec. 6-115.
Assets.
"Assets": The total value of cash, securities and other property. Bonds
shall be valued at amortized book value.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-116) (from Ch. 108 1/2, par. 6-116)
Sec. 6-116.
Annuity.
"Annuity": Annual payments for life, unless otherwise terminated under
this Article, payable in 12 equal monthly installments beginning on the
first day of the second month next following the date of the event upon
which payment of annuity shall depend, shall occur and subsequent payments
to be due and payable on the first day of each and every month thereafter,
except that a smaller pro rata amount shall be paid for part of a month
when the annuity begins after the first day of the month or ends before the
last day of the month.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-117) (from Ch. 108 1/2, par. 6-117)
Sec. 6-117.
Present value.
"Present value": The amount of money needed to provide an annuity or
benefit at some future date computed according to the applicable mortality
and interest tables.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-118) (from Ch. 108 1/2, par. 6-118)
Sec. 6-118.
Prior service annuity.
"Prior Service Annuity" shall be credited for present employees for
service rendered prior to the effective date in accordance with the
provisions of the "Firemen's Annuity and Benefit Fund Act of the Illinois
Municipal Code" and this Article. Each such credit shall be improved by
interest until the amount of annuity to which an employee has a right is
fixed.
In determining such annuity, the annual salary for the entire period of
the employee's service prior to the effective date shall be the salary in
effect on the effective date, but not in excess of $3,000 per year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-119) (from Ch. 108 1/2, par. 6-119)
Sec. 6-119.
Age and service annuity.
"Age and Service Annuity" shall be provided firemen for service rendered
on or after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-120) (from Ch. 108 1/2, par. 6-120)
Sec. 6-120.
Present employees limitation to and amount of prior
service annuities in certain cases.
A present employee, who has a credit on the effective date, for prior
service annuity, of an amount sufficient to provide annuity as of his
age on such date equal to that to which he would have had a right if employee
contributions and city contributions
had been made for age and
service annuity during his entire service until his attainment of age
57, is entitled to a prior service annuity from the date he withdraws
from service, fixed as of his age on the effective date, of such amount
as can be provided by his credit for this purpose on the effective date.
Any such present employee has no right to receive age and service
annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-121) (from Ch. 108 1/2, par. 6-121)
Sec. 6-121.
Present employees - Age 57 in service - Amount of annuity.
(a) A present employee, who attains age 57 or more while in service,
having credit from sums accumulated for age and service annuity and
prior service annuity sufficient to provide annuity as of his age at
such time equal to that to which he would have had a right if
employee contributions and city
contributions had been made in accordance with
this Article during his entire period of service until he attained age
57, is entitled to an age and service annuity and prior service annuity
from the date he withdraws from service, fixed as of his age on the date
when he has to his credit such sums; such annuities shall be the amounts
provided from the entire sum accumulated to his credit for age and
service annuity and prior service annuity purposes on such date of
fixing.
(b) A present employee who attains age 57 or more while in service
and who has not to his credit for age and service annuity and prior
service annuity the amount described in paragraph (a) above, is entitled
on the date of his withdrawal to an age and service annuity and prior
service annuity fixed as of his age on the date of withdrawal of the
amount provided from the entire sum accumulated to his credit for age
and service annuity and prior service annuity on such date of
withdrawal.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-122) (from Ch. 108 1/2, par. 6-122)
Sec. 6-122.
Present employees - Age 50 but less than 57 in
service - Age 50 out of service - Amount of annuity.
A present employee who (1) attains age 50 or more but less than 57
while in service, having 10 or more years of service at the date of
withdrawal or (2) withdraws with 10 or more years of service before age
50 and thereafter attains age 50 while out of service, is entitled to an
age and service annuity and prior service annuity from the date of
withdrawal or after attainment of age 50, as the case may be, fixed as
of his age at the date of withdrawal, or at age 50, respectively, in
such amount as can be provided from the total of the following:
(1) If service is 20 or more years, the entire sum accumulated to
his credit for age and service annuity and prior service annuity; or
(2) If service is 10 or more but less than 20 years, (a) the sum
provided from the sum accumulated to his credit for age and service
annuity from salary deductions, (b) 1/10 of the sum accumulated to his
credit for such purposes from the contributions by the city for each
completed year of service after the first 10 years, (c) the sum credited
for prior service annuity from employee contributions and applied to any
firemen's pension fund in operation, by authority of law in the city on
the effective date, and (d) 1/10 of the credit for prior service
annuity, in accordance with "Firemen's Annuity and Benefit Fund Act of
the Illinois Municipal Code", for each completed year of service after
the first 10 years.
The annuity provided in this Section for an employee who attains age
50 out of service shall be computed as though the employee were exactly
age 50 at the time it is granted, regardless of his actual age at the
time of his application therefor, and no such employee has any right to
any annuity on account of any time between the date he attains age 50
and the date of application for annuity, nor shall any annuity be
payable if the employee has received a refund of contributions.
Annuity in excess of that fixed by this Section shall not be granted
unless the employee reenters the service before age 57. If such re-entry
occurs, his annuity shall be provided in accordance with this section or
Section 6-121, whichever is applicable.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-123) (from Ch. 108 1/2, par. 6-123)
Sec. 6-123.
Minimum amount of annuity of present employee.
Any present employee who withdraws on or after the effective date,
having at least 20 years of service, and for whom the annuity otherwise
provided in this Article is less than the amount stated in this section,
has a right to annuity as follows:
If he is at least age 50 on withdrawal, his annuity, from and after such
withdrawal, shall be 50% of his salary on the day one year prior to such
date.
If he is less than age 50 on withdrawal, his annuity, after the date he
becomes age 50, shall be 50% of his salary on the day one year prior to the
date of his withdrawal.
Any such employee who remains in service after qualifying for annuity
under this section or Section 10-9-53 of the Firemen's Annuity and Benefit
Fund of the Illinois Municipal Code, shall have added to his annuity an
additional 1% of salary for each complete year of service or fraction
thereof accruing until July 21, 1959, and an additional 1% for a total of
2% of salary after July 21, 1959. "Salary" as referred to in this paragraph
shall be determined by striking an average of the 5 consecutive highest
years of salary within the last 10 years of service immediately preceding
withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-124) (from Ch. 108 1/2, par. 6-124)
Sec. 6-124. Future entrants; amount of annuity. When a future entrant attains age 63 in service, except for a fireman who is not subject to the compulsory retirement age, his age and service
annuity shall be fixed as of age 63. The annuity shall be that provided
from the entire sum accumulated to his credit for age and service annuity
on the date he attains age 63.
When a future entrant who is not subject to the compulsory retirement age withdraws from service and is at least age 63, his or her age and service annuity shall be fixed as of the age he or she withdraws from service. The annuity shall be that provided from the entire sum accumulated to his or her credit for age and service annuity on the date he or she withdraws from service. (Source: P.A. 102-293, eff. 8-6-21.)
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(40 ILCS 5/6-124.1)
Sec. 6-124.1. Withdrawal from service; amount of annuity.
(a) In lieu of any annuity provided in the other provisions of this
Article, a fireman who (1) is required to withdraw from service due to attainment
of compulsory retirement age, or is not subject to compulsory retirement age, withdraws from service, and is at least age 63, and (2) has at least 10 but less than 20 years of
service credit may elect to receive an annuity equal to 30% of average salary
for the first 10 years of service plus 2% of average salary for each completed
year of service or remaining fraction thereof in excess of 10, but not to
exceed a maximum of 50% of average salary.
(b) For the purpose of this Section, "average salary" means the average of
the fireman's highest 4 consecutive years of salary within the last 10 years
of service.
(c) For the purpose of qualifying for the annual increases provided in
Section 6-164, a fireman whose retirement annuity is calculated under this
Section shall be deemed to qualify for a minimum annuity.
(Source: P.A. 102-293, eff. 8-6-21.) |
(40 ILCS 5/6-125) (from Ch. 108 1/2, par. 6-125)
Sec. 6-125.
Future entrants - age 50 but less than age 63 in
service - amount of annuity.
When a future entrant who attains age 50 or more in service, having
10 or more years of service, withdraws before age 63 his age and service
annuity shall be fixed as of his age at withdrawal. He is entitled to
annuity, after withdrawal, of the amount provided from the following
sums on the date of withdrawal:
(1) If service is 20 or more years, the entire sum accumulated to
his credit for age and service annuity; or
(2) If service is 10 or more but less than 20 years, the entire sum
accumulated to his credit for age and service annuity from deductions
from salary, plus 1/10 of the sum accumulated for such purpose from
contributions by the city, for each completed year of service after the
first 10 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-126) (from Ch. 108 1/2, par. 6-126)
Sec. 6-126.
Future entrants - Withdrawal before age 50 - Amount of
annuity.
When a future entrant withdraws before age 50 after 10 or more years'
service and attains age 50 while out of service, his age and service
annuity shall be fixed as of age 50. He is entitled to an annuity, after
he attains age 50, provided from the following sums:
(1) If service is 20 or more years, the entire sum accumulated to
his credit for age and service annuity; or
(2) If service is 10 or more but less than 20 years, the entire sum
accumulated to his credit for age and service annuity, from deductions
from salary, plus 1/10 of the sum accumulated for such annuity from
contributions by the city, for each completed year of service after the
first 10 years.
The annuity shall be computed as though the employee were exactly age
50 when the annuity is granted regardless of his age at the time of
application. No such employee has any right to annuity for any time
between the date he attains age 50 and the date he makes application,
nor shall any annuity be payable if he has received a refund of
contributions.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-127) (from Ch. 108 1/2, par. 6-127)
Sec. 6-127.
Future entrants-Re-entry and new fixation.
Except as may be otherwise provided in this Article, no amount of
annuity other than that fixed in accordance with Sections 6-125 and 6-126
shall be granted to any future entrant therein described unless he
re-enters the service before age 63. If such re-entry occurs, the amount of
annuity shall again be fixed as provided herein.
(Source: P.A. 76-1668.)
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(40 ILCS 5/6-128)
(from Ch. 108 1/2, par. 6-128)
Sec. 6-128. (a) A future entrant who withdraws on or after July 21, 1959,
after completing at least 23 years of service, and for whom the annuity
otherwise provided in this Article is less than that stated in this
Section, has a right to receive annuity as follows:
If he is age 53 or more on withdrawal, his annuity after withdrawal,
shall be equal to 50% of his average salary.
An employee who reaches compulsory retirement age and who has less
than 23 years of service shall be entitled to a minimum annuity equal to
an amount determined by the product of (1) his years of service and (2)
2% of his average salary.
An employee who remains in service after qualifying for annuity under this
Section shall have added to this annuity an additional 1% of average salary
for each completed year of service or fraction thereof rendered until July 21,
1959, and an additional 1% for a total of 2% of average salary from July
21, 1959. Each future entrant who has completed 23 years of service before
reaching age 53 shall have added to this annuity 1% of average salary for
each completed year of service or fraction thereof in excess of 23 years up to
age 53.
(b) In lieu of the annuity provided in the foregoing provisions of this
Section any future entrant who withdraws from the service either (i) after
December 31, 1983 with at least 22 years of service credit and having
attained age 52 in the service, or (ii) after December 31, 1984 with at
least 21 years of service credit and having attained age 51 in the service,
or (iii) after December 31, 1985 with at least 20 years of service credit
and having attained age 50 in the service, or (iv) after December 31,
1990 with at least 20 years of service regardless of age, may elect to
receive an annuity, to begin not earlier than upon attainment of age 50
if under that age at withdrawal, computed as follows: an annuity equal
to 50% of average salary, plus additional annuity equal to 2% of
average salary for each completed year of service or fraction thereof
rendered after his completion of the minimum number of years of service
required for him to be eligible under this subsection (b). However, the
annuity provided under this subsection (b) may not exceed 75% of
average salary.
(c) In lieu of the annuity provided in any other provision of this
Section, a future entrant who withdraws from service after
the effective date of this amendatory Act of the 93rd General Assembly
with at least 20 years of service may elect to receive an annuity, to begin no
earlier than upon attainment of age 50 if under that age at withdrawal, equal
to 50% of average salary plus 2.5% of average salary for each completed year of
service or fraction thereof over 20, but not to exceed 75% of average salary.
(d) For the purpose of this Section, "average salary" means the average
of the highest 4 consecutive years of salary within the last 10 years of
service.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/6-128.1) (from Ch. 108 1/2, par. 6-128.1)
Sec. 6-128.1.
Firemen who have retired prior to September 23, 1971 and firemen who
retire after that and who served 20 or more years before retirement and
whose pensions or annuities are less than $250 per month shall receive such
additional sums as are required to provide to them a minimum pension or
annuity of $250 per month, said minimum to be reached in three stages: $200
per month from and after the effective date; $225 per month beginning
January 1, 1972; and $250 beginning January 1, 1973.
The minimum pensions and annuities established by this Section do not
include any sums to be added to annuity payments by the automatic annual
increases provided by Sections 6-164 and 6-164.1 and such annual increases
shall be paid in addition to the minimum amounts specified in this Section.
(Source: P.A. 78-1242.)
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(40 ILCS 5/6-128.2)
(from Ch. 108 1/2, par. 6-128.2)
Sec. 6-128.2. Minimum retirement annuities.
(a) Beginning with the monthly payment due in January, 1988, the monthly
annuity payment for any person who is entitled to receive a retirement
annuity under this Article in January, 1990 and has retired from service at
age 50 or over with 20 or more years of service, and for any person who
retires from service on or after January 24, 1990 at age 50 or over
with 20 or more years of service, shall not be less than $475 per month.
The $475 minimum annuity is exclusive of any automatic annual increases
provided by Sections 6-164 and 6-164.1, but not exclusive of previous
raises in the minimum annuity as provided by any Section of this Article.
Beginning January 1, 1992, the minimum retirement annuity payable to
any person who has retired from service at age 50 or over with 20 or more
years of service and is entitled to receive a retirement annuity under this
Article on that date, or who retires from service at age 50 or over with 20
or more years of service after that date, shall be $650 per month.
Beginning January 1, 1993, the minimum retirement annuity payable to
any person who has retired from service at age 50 or over with 20 or more
years of service and is entitled to receive a retirement annuity under this
Article on that date, or who retires from service at age 50 or over with 20
or more years of service after that date, shall be $750 per month.
Beginning January 1, 1994, the minimum retirement annuity payable to
any person who has retired from service at age 50 or over with 20 or more
years of service and is entitled to receive a retirement annuity under this
Article on that date, or who retires from service at age 50 or over with 20
or more years of service after that date, shall be $850 per month.
Beginning January 1, 2004, the minimum retirement annuity payable to any
person who has retired from service at age 50 or over with 20 or more years of
service and is entitled to receive a retirement annuity under this Article on
that date, or who retires from service at age 50 or over with 20 or more years
of service after that date, shall be $950 per month.
Beginning January 1, 2005, the minimum retirement annuity payable to any
person who has retired from service at age 50 or over with 20 or more years of
service and is entitled to receive a retirement annuity under this Article on
that date, or who retires from service at age 50 or over with 20 or more years
of service after that date, shall be $1,050 per month.
Beginning January 1, 2016, the minimum retirement annuity payable to any person who has retired from service at age 50 or over with 20 or more years of service and is entitled to receive a retirement annuity under this Article on that date, or who retires from service at age 50 or over with 20 or more years of service after that date, shall be no less than 125% of the Federal Poverty Level. For purposes of this Section, the "Federal Poverty Level" shall be determined pursuant to the poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. 9902(2). The minimum annuities established by this subsection (a) do include
previous raises in the minimum annuity as provided by any Section of this
Article, but do not include any sums which have been added or will be added
to annuity payments by the automatic annual increases provided by Sections
6-164 and 6-164.1. Such annual increases shall be paid in addition to the
minimum amounts specified in this subsection.
(b) Notwithstanding any other provision of this Article, beginning
January 1, 1990, the minimum retirement annuity payable to any person who
is entitled to receive a retirement annuity under this Article on that date
shall be $475 per month.
(c) The changes made to this Section by this amendatory Act of the
93rd General Assembly apply to all persons receiving a retirement
annuity under this Article, without regard to whether the retirement of the
fireman occurred prior to the effective date of this amendatory Act.
(Source: P.A. 99-506, eff. 5-30-16.)
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(40 ILCS 5/6-128.3) (from Ch. 108 1/2, par. 6-128.3)
Sec. 6-128.3.
Minimum widow's annuities.
(a) Notwithstanding any other provision of this Article, beginning
January 1, 1988, the minimum widow's annuity payable to any person who is
entitled to receive a widow's annuity under this Article shall be $325 per month.
(b) This Section shall apply to all persons receiving a
widow's annuity under this Article, without regard to whether the death or
retirement of the fireman occurred prior to the effective date of this
amendatory Act (P.A. 86-272).
(Source: P.A. 86-272; 86-1028.)
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(40 ILCS 5/6-128.4)
(from Ch. 108 1/2, par. 6-128.4)
Sec. 6-128.4. Minimum widow's annuities.
(a) Notwithstanding any other provision of this Article, beginning
January 1, 1996, the minimum amount of widow's annuity payable to any person
who is entitled to receive a widow's annuity under this Article is $700 per
month, without regard to whether the deceased fireman is in service on or after
the effective date of this amendatory Act of 1995.
(b) Notwithstanding Section 6-128.3, beginning January 1, 1994, the
minimum widow's annuity under this Article shall be $700 per month for (1) all
persons receiving widow's annuities on that date who are survivors of employees
who retired at age 50 or over with at least 20 years of service, and (2)
persons who become eligible for widow's annuities and are survivors of
employees who retired at age 50 or over with at least 20 years of service.
(c) Notwithstanding Section 6-128.3, beginning January 1, 1999, the
minimum widow's annuity under this Article shall be $800 per month for (1) all
persons receiving widow's annuities on that date who are survivors of employees
who retired at age 50 or over with at least 20 years of service, and (2)
persons who become eligible for widow's annuities and are survivors of
employees who retired at age 50 or over with at least 20 years of service.
(d) Notwithstanding Section 6-128.3, beginning January 1, 2004, the
minimum widow's annuity under this Article shall be $900 per month for all
persons receiving widow's annuities on or after that date, without regard to
whether the deceased fireman is in service on or after the effective date of
this amendatory Act of the 93rd General Assembly.
(e) Notwithstanding Section 6-128.3, beginning January 1, 2005, the
minimum widow's annuity under this Article shall be $1,000 per month for all
persons receiving widow's annuities on or after that date, without regard to
whether the deceased fireman is in service on or after the effective date of
this amendatory Act of the 93rd General Assembly.
(f) Notwithstanding Section 6-128.3, beginning January 1, 2017 and until January 1, 2023, the minimum widow's annuity under this Article shall be no less than 125% of the Federal Poverty Level for all persons receiving widow's annuities on or after that date, without regard to whether the deceased fireman is in service on or after the effective date of this amendatory Act of the 99th General Assembly. Notwithstanding Section 6-128.3, beginning January 1, 2023, the minimum widow's annuity under this Article shall be no less than 150% of the Federal Poverty Level for all persons receiving widow's annuities on or after that date, without regard to whether the deceased fireman is in service on or after the effective date of this amendatory Act of the 102nd General Assembly. For purposes of this Section, "Federal Poverty Level" means the poverty guidelines applicable to an individual in a single-person household located in Illinois, as updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. 9902(2). (Source: P.A. 102-884, eff. 5-13-22.)
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(40 ILCS 5/6-129) (from Ch. 108 1/2, par. 6-129)
Sec. 6-129.
Widow's prior service annuity.
"Widow's Prior Service Annuity" shall be credited for the widow of a
male present employee for service prior to the effective date, in
accordance with the "Firemen's Annuity and Benefit Fund Act of the Illinois
Municipal Code" and this Article.
For a present employee in service on August 31, 1957, and under age 57
on that date, the annuity so provided shall be improved by interest at 4%
per year during his subsequent service. For a present employee in the
service on August 31, 1957, and over age 57 on that date, the annuity so
provided shall be improved by interest at such rate in the manner stated in
Section 6-132 of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-130) (from Ch. 108 1/2, par. 6-130)
Sec. 6-130.
Widow's annuity.
"Widow's Annuity" shall be provided for the widows of firemen for
service after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-131) (from Ch. 108 1/2, par. 6-131)
Sec. 6-131.
Amount of present employee's widow's annuity on effective date.
The amount of annuity for the wife of a present employee who attains age
57 or more on or before the effective date shall be fixed on the effective
date as of the age of the wife at the time the employee attained age 57.
The widow shall receive annuity, from the date of the employee's death of
such amount as can be provided on a reversionary annuity basis from the
employee's credit for such annuity on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-133) (from Ch. 108 1/2, par. 6-133)
Sec. 6-133.
Widow's annuity-All employees-Death in service before
age 63.
The widow of an employee who dies in service before age 63 is
entitled to receive annuity, from the date of his death, of the amount
provided on a single life annuity basis from the total sum accumulated
to his credit at his death for age and service annuity, widow's annuity,
and if a present employee, prior service and widow's prior service
annuity; but no part of such credits which represent the city
contributions shall be used to provide annuity for the widow in excess
of the maximum widow's annuity provided in this Article. The annuity
shall be computed as of the date of the employee's death.
(Source: P.A. 76-1668.)
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(40 ILCS 5/6-134) (from Ch. 108 1/2, par. 6-134)
Sec. 6-134.
Widow's annuity - all employees - withdrawal before age 63
and after age 50.
The widow's annuity and widow's prior service annuity for the wife of
an employee who (1) attained age 50 or more but less than age 63 while
in service and (2) served 10 or more years and (3) withdraws from
service, shall be fixed as of her age at the time of his withdrawal. The
annuity, payable from and after the date of his death, shall be such
amount as can be provided on a reversionary annuity basis from the
following sums accumulated to his credit on the date the annuity was
fixed:
(1) If service is 20 or more years, the entire sum accumulated to
his credit for widow's annuity and, for a present employee, widow's
prior service annuity; or
(2) If service is 10 or more but less than 20 years, the sum
accumulated to his credit for widow's annuity
from salary deductions, plus 1/10 of the sum accumulated to his credit
for widow's annuity, and,
if a present employee, widow's prior service annuity, from contributions
by the city for each completed year of service after the first 10 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-135) (from Ch. 108 1/2, par. 6-135)
Sec. 6-135.
Widow's annuity - All employees - Withdrawal before age
50 - Death after age 50.
The widow's annuity and widow's prior service annuity for the wife of
an employee who withdraws after service of 10 or more years before age
50, and later attains such age and dies while out of service, shall be
fixed as of her age at the time the employee becomes age 50. She shall
receive annuity, from the date of the employee's death, of such amount
as can be provided on a reversionary annuity basis from the following
sums accumulated to his credit on the date the annuity was fixed:
(1) If service is 20 or more years, the entire sum accumulated to
his credit for widow's annuity, and, for a present employee, widow's
prior service annuity;
(2) If service is 10 or more but less than 20 years, the sum
accumulated to his credit for widow's annuity from salary deductions,
plus 1/10 of the sum accumulated to his credit for widow's annuity, and,
for a present employee, widow's prior service annuity, from
contributions by the city, for each completed year of service after the
first 10 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-136) (from Ch. 108 1/2, par. 6-136)
Sec. 6-136.
Widow's annuity - All employees - Withdrawal and death
before age 50.
The widow of an employee who (1) has served 10 or more years and (2)
withdraws before age 50, and (3) dies out of service before age 50,
shall receive annuity, from the date of his death of the amount provided
on a reversionary annuity basis from the following sums to his credit on
the date of his death:
(1) If service is 20 or more years, the entire sum accumulated to
his credit for age and service annuity, widow's annuity, and, for a
present employee, prior service and widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the sum
accumulated to his credit for age and service annuity, and widow's
annuity, and, in the case of a present employee, prior service annuity
from employee contributions, plus 1/10 of the sum credited for age and
service annuity, widow's annuity, and, for a present employee, prior
service and widow's prior service annuity, from contributions by the
city, for each completed year of service after the first 10 years.
The annuity shall be computed as of the age of the widow at the date
of the employee's death.
No part of city contributions shall be used to provide annuity for a
widow in excess of that to which she would have had a right to receive
if the employee had lived until age 50 and had not re-entered service
and the annuity were then fixed for the widow on a reversionary annuity
basis as of her age on the date when her husband would have attained age
50.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-137) (from Ch. 108 1/2, par. 6-137)
Sec. 6-137.
Widow's annuity-Re-entry and new fixation.
Annuity in excess of that fixed in Sections 6-134 and 6-135 shall not
be granted to the widow of an employee described therein unless the
employee re-enters the service before age 63, in which case the annuity for
his wife shall be fixed when he again withdraws or dies, whichever event
first occurs, as of her age at the time the annuity is fixed.
(Source: P.A. 76-1668.)
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(40 ILCS 5/6-138) (from Ch. 108 1/2, par. 6-138)
Sec. 6-138.
Widow's annuity-Determination of age of widow.
Widow's annuity shall be computed as herein provided, except that the
maximum age of the widow for annuity purposes for the wife or widow of any
employee entering service prior to July 1, 1953, shall not be more than 5
years less than the age of the employee as of the date when such wife's or
widow's annuity is fixed; and for the widow of a future entrant entering
service after June 30, 1953, her maximum age for annuity purposes shall in
no event be more than the age of her husband as of the date when such
wife's or widow's annuity is fixed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-139) (from Ch. 108 1/2, par. 6-139)
Sec. 6-139.
Widow's annuity - Limitations after fixation.
Except as may be otherwise provided in this Article, (a) no salary deductions
or contributions by the city for
widow's annuity shall be
made after such annuity has been fixed; (b) no widow's annuity in excess
of that fixed in accordance with this Article shall be granted; and (c)
no service rendered after the time of fixing shall be considered for
widow's annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-140) (from Ch. 108 1/2, par. 6-140) Sec. 6-140. Death in the line of duty. (a) The annuity for the widow of a fireman whose death results from the performance of an act or acts of duty shall be an amount equal to 50% of the current annual salary attached to the classified position to which the fireman was certified at the time of his death and 75% thereof after December 31, 1972. Unless the performance of an act or acts of duty results directly in the death of the fireman, or prevents him from subsequently resuming active service in the fire department, the annuity herein provided shall not be paid; nor shall such annuities be paid unless the widow was the wife of the fireman at the time of the act or acts of duty which resulted in his death. For the purposes of this Section only, the death of any fireman as a result of the exposure to and contraction of COVID-19, as evidenced by either (i) a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or (ii) a confirmed diagnosis of COVID-19 from a licensed medical professional, shall be rebuttably presumed to have been contracted while in the performance of an act or acts of duty and the fireman shall be rebuttably presumed to have been fatally injured while in active service. The presumption shall apply to any fireman who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before January 31, 2022 (including the period between December 31, 2020 and the effective date of this amendatory Act of the 101st General Assembly); except that the presumption shall not apply if the fireman was on a leave of absence from his or her employment or otherwise not required to report for duty for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when a fireman contracted COVID-19 under this paragraph, the date of contraction is either the date that the fireman was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. (b) The changes made to this Section by this amendatory Act of the 92nd General Assembly apply without regard to whether the deceased fireman was in service on or after the effective date of this amendatory Act. In the case of a widow receiving an annuity under this Section that has been reduced to 40% of current salary because the fireman, had he lived, would have attained the age prescribed for compulsory retirement, the annuity shall be restored to the amount provided in subsection (a), with the increase beginning to accrue on the later of January 1, 2001 or the day the annuity first became payable.(Source: P.A. 103-692, eff. 7-19-24.) |
(40 ILCS 5/6-141) (from Ch. 108 1/2, par. 6-141)
Sec. 6-141.
Minimum widow's annuities after July 1, 1935-Widow of pensioner under
prior act.
Whenever the annuity under any provision of this Article for a widow of
a fireman described in this section is less than $45 per month, the
following described widows shall receive $45 per month after July 1, 1935,
or after the death of the fireman if such death occurs on or after July 1,
1935, and prior to July 1, 1969, and $100 per month if the death of the
fireman occurs on or after
July 1, 1969, and from and after August 19, 1971 a minimum widow's annuity
of $150 per month to July 1,
1975, $175 a month after July 1, 1975 and before January 1, 1976, and $200
a month after January 1, 1976 and before July 1, 1981, and $250 a month
beginning July 1, 1981,
shall be paid to all widows hereinafter described, without regard to the
fact that the death of the fireman occurred
before the applicable minimum rate was established by law, provided
that the $175 a month or $200 a month or $250 a month minimum rates apply only
in the event the fireman had at least 10 years of service credit
at his date of death in the service:
(a) the widow of a fireman who dies in service; (b)
the widow of a fireman who withdraws after 20 or more years of service and
who enters upon annuity after age 50 or more, provided, that the widow is
married to the fireman before he withdraws from service; (c) the widow of
a fireman who has served 20 or more years and who withdraws from service
before age 50 and who dies before he enters upon an annuity, provided, that the
widow is married to the fireman before he withdraws from service.
The widow of a fireman who was receiving a pension under "An Act to
provide for a firemen's pension fund and to create a board of trustees to
administer said fund in cities having a population exceeding two hundred
thousand (200,000) inhabitants", in force July 1, 1917, shall be paid a
pension of $45 per month. Such pension, however, shall not be allowed if
the widow married the fireman pensioner subsequent to the date of his
retirement with a pension under said Act and after June 30, 1915.
The widow of a fireman who retires from service after
December 31, 1975 or who dies while in service after December 31, 1975 and
on or after the date on which he becomes eligible to retire under
Section 6-128 shall, if she is otherwise eligible for a widow's annuity
under this Article and if the amount determined under this Section is more
than the total combined amounts of her widow's annuity and widow's prior
service annuity, receive, in lieu of such other widow's annuity and widow's
prior service annuity, a widow's annuity equal to 40% of the amount of annuity
which her deceased fireman husband received as of the date of his retirement
on annuity or if he dies in the service prior to retirement on annuity a
widow's
annuity equal to 40% of the amount of annuity her deceased fireman husband
would have been entitled to receive if he had retired on the day before the
date of his death in the service, except that if the age of the wife at date
of retirement or the age of the widow at date of death in the service is more
than 5 years younger than her fireman husband, the amount of such annuity shall be
reduced by 1/2 of 1% for each such month and fraction thereof that she is more than
5 years younger at date of retirement or at date of death subject to a maximum
reduction of 50%. However, no annuity under this Section shall exceed $500.00
per month.
This Section does not apply to the widow of any former fireman who
was receiving an annuity from the fund on December 31, 1975 and who re-enters
service as a fireman, unless he renders at least 3 years of additional
service after re-entry.
(Source: P.A. 82-342.)
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(40 ILCS 5/6-141.1) (from Ch. 108 1/2, par. 6-141.1)
Sec. 6-141.1.
(a) Notwithstanding the other provisions of this Article,
the widow of a fireman who dies on or after June 30, 1984, while receiving
a retirement annuity or while an active fireman with at least 1 1/2 years
of creditable service, may elect to have the amount of widow's annuity calculated in
accordance with this Section.
(b) If the deceased fireman was an active fireman at the time of his death
and had at least 1 1/2 years of creditable service, the widow's annuity
shall be the greater of (1) 30% of the salary attached to the rank of
first class firefighter
in the classified career service at the time of the fireman's death, or
(2) 50% of the retirement annuity the deceased fireman would have been
eligible to receive if he had retired from service on the day before his death.
(c) If the deceased fireman was receiving a retirement annuity at the
time of his death, the widow's annuity shall be equal to 50% of the amount
of such retirement annuity at the time of the fireman's death.
(Source: P.A. 84-11.)
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(40 ILCS 5/6-141.2)
Sec. 6-141.2. Minimum annuity for certain widows.
Notwithstanding the other provisions of this Article, the widow's
annuity payable to the widow of a fireman who dies on or after July 1, 1997
while an active fireman with at least 10 years of creditable service shall be
no less than 50% of the retirement annuity that the deceased fireman would have
been eligible to receive if he had attained age 50 and 20 years of service on
the day before his death and retired on that day. In the case of a widow's
annuity that is payable on the effective date of this amendatory Act of the
93rd General Assembly, the increase provided by this Section, if any, shall
begin to accrue on the first annuity payment date following that effective
date.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/6-142)
(from Ch. 108 1/2, par. 6-142)
Sec. 6-142. Wives and widows not entitled to annuities.
(A) Except as provided in subsection (B), the following wives
or widows have no right to annuity from the fund:
(a) A wife or widow married subsequent to the | ||
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(b) A wife or widow of a fireman who withdraws, | ||
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(c) A wife or widow of a fireman who (1) has served | ||
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(d) A wife or widow of a fireman who dies out of | ||
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(e) A wife whose marriage was dissolved or widow of a | ||
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(f) A wife or widow who married the fireman while he | ||
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(B) Beginning on January 16, 2004, the limitation on marriage after withdrawal
under subdivision (A)(b) and the limitation on marriage during disability
under subdivision (A)(f) no longer apply to a widow who was married to the
deceased fireman for at least one year immediately preceding the date of death, regardless
of whether the deceased fireman is in service on or after the effective date
of Public Act 93-654 or this amendatory Act of the 93rd General Assembly; except that this
subsection (B) does not apply to the widow of a fireman who received a refund
of contributions for widow's annuity under Section 6-160, unless the refund
is repaid to the Fund, with interest at the rate of 4% per year, compounded
annually, from the date of the refund to the date of repayment. If the widow
of a fireman who died before January 16, 2004 becomes
eligible for a widow's annuity because of Public Act 93-654, the annuity
shall begin to accrue on the date of application for the annuity, but in no
event sooner than January 16, 2004. The changes to this Section made by this amendatory Act of the 93rd General Assembly apply without regard to whether the deceased fireman was in service on or after its effective date. If the widow
of a fireman who died before the effective date of this amendatory Act of the 93rd General Assembly becomes
eligible for a widow's annuity because of this amendatory Act, the annuity
shall begin to accrue on the date of application for the annuity, but in no
event sooner than January 16, 2004.
(Source: P.A. 93-654, eff. 1-16-04; 93-917, eff. 8-12-04.)
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(40 ILCS 5/6-143)
(from Ch. 108 1/2, par. 6-143)
Sec. 6-143. Widow's remarriage.
(a) Beginning on the effective date of this amendatory Act of the
93rd General Assembly, a widow's annuity shall no longer be subject to
termination or suspension under this Section due to remarriage. Any widow's
annuity that was previously terminated or suspended under this Section by
reason of remarriage shall, upon application, be resumed as of the date of the
application, but in no event sooner than the effective date of this amendatory
Act. The resumption shall not be retroactive. This subsection (a) applies
regardless of whether or not the deceased fireman was in service on or after
the effective date of this amendatory Act.
(b) This subsection (b) does not apply on or after the effective date of
this amendatory Act of the 93rd General Assembly.
Any annuity granted to a widow who remarries on or after December 31, 1989
shall be suspended when she remarries, unless (i) she remarries after attaining
the age of 60 regardless of whether or not the deceased fireman was in service
on or after the effective date of this amendatory Act of 1995 or (ii) she has
been granted a Section 6-140 annuity as the widow of a fireman killed in
performance of duty. An annuity suspended under this Section shall, upon
application, be resumed if the subsequent marriage ends by dissolution of
marriage, declaration of invalidity of marriage, or the death of the husband;
this resumption shall not be retroactive.
If a widow remarries after attaining age 60 or after she has been granted
an annuity under Section 6-140 and the remarriage takes place after December
31, 1989, regardless of whether or not the deceased fireman was in service on
or after the effective date of this amendatory Act of 1995, the
widow's annuity shall continue without interruption.
Any widow's annuity that was previously terminated by reason of remarriage
prior to December 31, 1989 or suspended shall, upon application, be resumed,
as of the date of the application, if the subsequent marriage ended by
dissolution of marriage, declaration of invalidity of marriage, or the death of
the husband, regardless of whether or not the deceased fireman was in service
on the effective date of this amendatory Act of 1995; this resumption shall
not be retroactive.
When a widow dies, if she has not received, in the form of an annuity, an
amount equal to the accumulated employee contributions for widow's annuity, the
difference between such accumulated contributions and the sum received by her,
along with any part of the accumulated contributions for age and service
annuity remaining in the fund at her death, shall be refunded to the fireman's
children, in equal parts to each; except that if a child is less than age 18,
the part of any such amount that is required to pay an annuity to the child
shall be transferred to the child's annuity reserve. If no children or
descendants thereof survive the fireman, the refund shall be paid to the estate
of the fireman. In making refunds under this Section, no interest shall be
considered upon either the total of annuity payments made or the amounts
subject to refund.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/6-143.1) (from Ch. 108 1/2, par. 6-143.1)
Sec. 6-143.1.
Pensions to survivors of female firemen.
All provisions of
this Article relating to annuities or benefits to a widow, children or other
survivors of a male fireman shall apply with equal force to a surviving
spouse, children or other survivors of a female fireman.
(Source: P.A. 80-899.)
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(40 ILCS 5/6-143.2) (from Ch. 108 1/2, par. 6-143.2)
Sec. 6-143.2.
Widows - double annuity.
If any widow (1) receives a
widow's annuity from the Fund, and (2) after December 31, 1989 marries a
fireman who is a participant in this Fund, and (3) the fireman dies and a
second widow's annuity thereby becomes payable, then the first widow's
annuity shall be cancelled at the time the widow accepts any payment of the
second widow's annuity. Any refund due because of the cancelled annuity
shall be paid to the widow.
(Source: P.A. 86-1488.)
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(40 ILCS 5/6-144) (from Ch. 108 1/2, par. 6-144)
Sec. 6-144.
No annuity in excess of 75% of the highest salary received by
the fireman concerned shall be granted or paid to him except to the extent
that the annuity may exceed such 75% under the provisions of Section 6-164
of this Article.
(Source: P.A. 77-1353.)
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(40 ILCS 5/6-145) (from Ch. 108 1/2, par. 6-145)
Sec. 6-145.
Mortality tables and interest rates.
Any annuity fixed for or granted to a present employee or future entrant
who entered service prior to July 1, 1953, or to his widow, shall be
computed according to the American Experience Table of Mortality. The rate
of interest to be used for all purposes of this Article on account of such
persons shall be 4% per annum.
Annuities for future entrants entering service after June 30, 1953, and
for widows and persons having a right to annuities or benefits through such
future entrants, shall be computed according to the Combined Annuity
Mortality Table, rated back 4 years for female lives. The rate of interest
for all purposes of this Article on account of such future entrants and
their beneficiaries shall be 3% per annum.
All sums to the credit of a fireman for annuity purposes at the time he
withdraws before age 50 shall be improved to his credit thereafter by
interest while he is out of service and has not entered upon annuity until
he attains age 57. Such interest shall be 4% per annum if he is a present
employee or a future entrant who entered service prior to July 1, 1953, or
3% per annum if he is a future entrant who enters service after June 30,
1953. Any annuity fixed for or granted to such employees who entered
service prior to July 1, 1953, and who have not re-entered the service
prior to the time such annuity is fixed or granted, or any annuity fixed
for or granted to a widow of any such employee shall be computed according
to the American Experience Table of Mortality with interest at 4% per
annum, and any annuity fixed for or granted to any such future entrant who
entered service subsequent to June 30, 1953 or his widow shall be computed
according to the Combined Annuity Mortality Table rated back 4 years for
female lives and with interest at 3% per annum.
The amount of widow's annuity or widow's prior service annuity which
shall be fixed for the wife of a fireman while he is alive shall be a
reversionary annuity computed according to the applicable table of
mortality.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-146) (from Ch. 108 1/2, par. 6-146)
Sec. 6-146.
Term annuities-How computed.
Whenever the sum to a fireman's credit for an annuity to him or his
widow is insufficient to provide a life annuity of $25 per month to either
of them, a term annuity of such amount of equal actuarial value shall be
payable for the period of time established as the term period. Such annuity
shall cease upon death prior to the end of the term period.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-147) (from Ch. 108 1/2, par. 6-147)
Sec. 6-147.
Child's annuity.
A "Child's Annuity" shall be provided for unmarried natural or adopted
children of firemen payable monthly from the date of death of the fireman
parent of a child until the annuitant attains age 18.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-148) (from Ch. 108 1/2, par. 6-148)
Sec. 6-148. A child's annuity, shall be paid for the benefit of any
unmarried child, less than age 18, of any following described firemen:
(a) A fireman whose death results from the performance of any act or
acts of duty; (b) a fireman who dies in service from any cause; (c) a
fireman who withdraws subsequent to age 50 and who enters upon or is
eligible for annuity; and (d) a fireman having at least 20 years of
service who withdraws and dies before he enters upon annuity.
The annuity shall be paid without regard to the fact that the death
of the deceased fireman parent may have occurred prior to the effective
date of this amendatory Act and shall be paid monthly in an amount equal
to 15% of the current annual maximum salary attached to the classified
civil service position of fire fighter if no widow survives and 10% of
such salary while the widow survives and no age limitation in this
Section shall apply to a child who is so physically or mentally
handicapped as to be unable to support himself; provided, if annuities
for the widow and children of a fireman who dies on or after the
effective date and whose death has been the result of an act or acts of
duty performed on or after said date, or for the children in any such
case wherein a widow shall not exist, computed at the rates hereinbefore
stated, would exceed the final annual salary of a first class fireman,
(one who receives maximum salary for classified civil service rank of
fire fighter), the annuity for each child shall be reduced pro rata so
that the combined annuities for the family of the fireman shall not
exceed such amount; and in the case of the family of a fireman who dies
on or after said date and whose death is the result of any cause or
causes other than injury incurred in the performance of an act or acts
of duty in which annuities for such family, computed at the rates
hereinbefore stated would exceed 60% of the final annual salary of a
first class fireman, the annuity of each child shall be reduced pro rata
so that the combined annuities for the family do not exceed such
limitation.
Child's annuity shall be paid to the parent who is providing for the
child, unless another person is appointed by a court of law as the
child's guardian.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/6-149) (from Ch. 108 1/2, par. 6-149)
Sec. 6-149.
"Parent's annuity" shall be provided for the natural parent or parents
of a fireman who dies on or after the effective date while in active
service, or is disabled and in receipt of or pending receipt of disability
benefit, or upon leave of absence with whole or part pay, or upon leave of
absence without pay during a period of not more than 3 months in the
aggregate, or in receipt of annuity granted after 20 years of service, or
while out of the service after 20 years of service and pending receipt of
annuity to which the fireman has a right upon attainment of age 50 or more;
provided, that at the time of the fireman's death, no widow or unmarried
child under 18 years of age entitled to annuity survives him; and, provided
further, that satisfactory proof shall be made to the board that the
fireman was contributing to the support of his parent or parents.
Parent's annuity shall be 18% of the current annual salary attached to
the classified position held by the fireman at the time of his death or
retirement and each surviving parent shall be entitled to receive said 18%
annuity on a monthly basis.
(Source: P.A. 77-1359.)
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(40 ILCS 5/6-150) (from Ch. 108 1/2, par. 6-150) Sec. 6-150. Death benefit. (a) Effective January 1, 1962, an ordinary death benefit shall be payable on account of any fireman in service and in receipt of salary on or after such date, which benefit shall be in addition to all other annuities and benefits herein provided. This benefit shall be payable upon death of a fireman: (1) occurring in active service while in receipt of | ||
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(2) on an authorized and approved leave of absence, | ||
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(3) receiving duty, occupational disease, or ordinary | ||
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(4) occurring within 60 days from the date of | ||
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(5) occurring on retirement and while in receipt of | ||
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(b) The ordinary death benefit shall be payable to such beneficiary or beneficiaries as the fireman has nominated by written direction duly signed and acknowledged before an officer authorized to take acknowledgments, and filed with the board. If no such written direction has been filed or if the designated beneficiaries do not survive the fireman, payment of the benefit shall be made to his estate. (c) Beginning July 1, 1983, if death occurs prior to retirement on annuity and before the fireman's attainment of age 50, the amount of the benefit payable shall be $12,000. Beginning July 1, 1983, if death occurs prior to retirement, at age 50 or over, the benefit of $12,000 shall be reduced $400 for each year (commencing on the fireman's attainment of age 50 and thereafter on each succeeding birth date) that the fireman's age, at date of death, is more than age 49, but in no event below the amount of $6,000. Beginning July 1, 1983, if the fireman's death occurs while he is in receipt of an annuity, the benefit shall be $6,000. (d) For the purposes of this Section only, the death of any fireman as a result of the exposure to and contraction of COVID-19, as evidenced by either (i) a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or (ii) a confirmed diagnosis of COVID-19 from a licensed medical professional, shall be rebuttably presumed to have been contracted while in the performance of an act or acts of duty and the fireman shall be rebuttably presumed to have been fatally injured while in active service. The presumption shall apply to any fireman who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before January 31, 2022 (including the period between December 31, 2020 and the effective date of this amendatory Act of the 101st General Assembly); except that the presumption shall not apply if the fireman was on a leave of absence from his or her employment or otherwise not required to report for duty for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when a fireman contracted COVID-19 under this subsection, the date of contraction is either the date that the fireman was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. (Source: P.A. 103-692, eff. 7-19-24.) |
(40 ILCS 5/6-151) (from Ch. 108 1/2, par. 6-151) Sec. 6-151. An active fireman who is or becomes disabled on or after the effective date as the result of a specific injury, or of cumulative injuries, or of specific sickness incurred in or resulting from an act or acts of duty, shall have the right to receive duty disability benefit during any period of such disability for which he does not receive or have a right to receive salary, equal to 75% of his salary at the time the disability is allowed. However, beginning January 1, 1994, no duty disability benefit that has been payable under this Section for at least 10 years shall be less than 50% of the current salary attached from time to time to the rank and grade held by the fireman at the time of his removal from the Department payroll, regardless of whether that removal occurred before the effective date of this amendatory Act of 1993. Whenever an active fireman is or becomes so injured or sick, as to require medical or hospital attention, the chief officer of the fire department of the city shall file, or cause to be filed, with the board a report of the nature and cause of his disability, together with the certificate or report of the physician attending or treating, or who attended or treated the fireman, and a copy of any hospital record concerning the disability. Any injury or sickness not reported to the board in time to permit the board's physician to examine the fireman before his recovery, and any injury or sickness for which a physician's report or copy of the hospital record is not on file with the board shall not be considered for the payment of duty disability benefit. Such fireman shall also receive a child's disability benefit of $30 per month on account of each unmarried child, the issue of the fireman or legally adopted by him, who is less than 18 years of age or handicapped and dependent upon the fireman for support. The total amount of child's disability benefit shall not exceed 25% of his salary at the time the disability is allowed. The first payment of duty disability or child's disability benefit shall be made not later than one month after the benefit is granted. Each subsequent payment shall be made not later than one month after the date of the latest payment. Duty disability benefit shall be payable during the period of the disability until the fireman reaches the age of compulsory retirement. Child's disability benefit shall be paid to such a fireman during the period of disability until such child or children attain age 18 or marries, whichever event occurs first; except that attainment of age 18 by a child who is so physically or mentally handicapped as to be dependent upon the fireman for support, shall not render the child ineligible for child's disability benefit. The fireman shall thereafter receive such annuity or annuities as are provided for him in accordance with other provisions of this Article. For the purposes of this Section only, any fireman who becomes disabled as a result of exposure to and contraction of COVID-19, as evidenced by either a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or a confirmed diagnosis of COVID-19 from a licensed medical professional shall: (1) be rebuttably presumed to have contracted | ||
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(2) be rebuttably presumed to have been injured while | ||
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(3) be entitled to receive a duty disability benefit | ||
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The presumption shall apply to any fireman who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before January 31, 2022; except that the presumption shall not apply if the fireman was on a leave of absence from his or her employment or otherwise not required to report for duty for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when a fireman contracted COVID-19 under this paragraph, the date of contraction is either the date that the fireman was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. It is the intent of the General Assembly that the change made by this amendatory Act shall apply retroactively to March 9, 2020, and any fireman who has been previously denied a duty disability benefit that would otherwise be entitled to duty disability benefit under this Section shall be entitled to retroactive benefits and duty disability benefit. (Source: P.A. 103-2, eff. 5-10-23; 103-692, eff. 7-19-24.) |
(40 ILCS 5/6-151.1)
(from Ch. 108 1/2, par. 6-151.1)
Sec. 6-151.1. The General Assembly finds and declares that service in the
Fire Department requires that firemen, in times of stress and danger, must
perform unusual tasks; that by reason of their occupation, firemen are subject
to exposure to great heat and to extreme cold in certain seasons while in
performance of their duties; that by reason of their employment firemen are
required to work in the midst of and are subject to heavy smoke fumes and
carcinogenic, poisonous, toxic or chemical gases from fires; and that in the
course of their rescue and paramedic duties firemen are exposed to disabling
infectious diseases, including AIDS, hepatitis C, and stroke. The General
Assembly further finds and declares that all the aforementioned conditions
exist and arise out of or in the course of such employment.
Any active fireman who has completed 7 or more years of service
and is unable to perform his duties in the Fire Department by reason of heart
disease, tuberculosis, any disease of the lungs or respiratory
tract, AIDS, hepatitis C, stroke, or a contagious staph infection, including methicillin-resistant Staphylococcus aureus (MRSA), resulting from his service
as a fireman, shall be entitled to receive an occupational disease disability
benefit during any period of such disability for which he does not have a right
to receive salary.
Any active fireman who has completed 7 or more years of service
and is unable to perform his duties in the fire department by reason of a
disabling cancer, which develops or manifests itself during a period while
the fireman is in the service of the department, shall be entitled to
receive an occupational disease disability benefit during any period of
such disability for which he does not have a right to receive salary. In
order to receive this occupational disease disability benefit, the type of
cancer involved must be a type which may be caused by exposure to heat,
radiation or a known carcinogen as defined by the International Agency for
Research on Cancer.
Any fireman receiving a retirement annuity shall be entitled to an occupational disease disability benefit under this Section if the fireman (1) has not reached the age of compulsory retirement, (2) has not been receiving a retirement annuity for more than 5 years, and (3) has a condition
that would have qualified the fireman for an occupational disease disability benefit under this Section if he or she was an active fireman. A fireman who receives an occupational disease disability benefit in accordance with this paragraph may not receive a retirement annuity during the period in which he or she receives an occupational disease disability benefit. The occupational disease disability benefit shall terminate upon the fireman reaching the age of compulsory retirement. Any fireman who shall enter the service after the effective date of this
amendatory Act shall be examined by one or more practicing physicians appointed
by the Board, and if that
examination discloses impairment of
the heart, lungs, or respiratory tract, or the existence of AIDS,
hepatitis C, stroke, cancer, or a contagious staph infection, including methicillin-resistant Staphylococcus aureus (MRSA), then the fireman shall
not be
entitled to receive an occupational disease disability benefit unless and
until a subsequent examination reveals no such impairment, AIDS,
hepatitis C, stroke, cancer, or contagious staph infection, including methicillin-resistant Staphylococcus aureus (MRSA).
The occupational disease disability benefit shall be 65% of the
fireman's salary at the time of his removal from the Department payroll.
However, beginning January 1, 1994, no occupational disease disability
benefit that has been payable under this Section for at least 10 years shall be
less than 50% of the current salary attached from time to time to the rank and
grade held by the fireman at the time of his removal from the Department
payroll, regardless of whether that removal occurred before the effective date
of this amendatory Act of 1993.
Such fireman also shall have a right to receive child's disability
benefit of $30 per month on account of each unmarried child who is less than
18 years of age or handicapped, dependent upon the fireman for support, and
either the issue of the fireman or legally adopted by him. The total
amount of child's disability benefit payable to the fireman, when added to
his occupational disease disability benefit, shall not exceed 75% of the
amount of salary which he was receiving at the time of the grant of
occupational disease disability benefit.
The first payment of occupational disease disability benefit or
child's disability benefit shall be made not later than one month after
the benefit is granted. Each subsequent payment shall be made not later
than one month after the date of the latest payment.
Occupational disease disability benefit shall be payable during the
period of the disability until the fireman reaches the age of compulsory
retirement. Child's disability benefit shall be paid to such a fireman
during the period of disability until such child or children attain age
18 or marry, whichever event occurs first; except that attainment of age
18 by a child who is so physically or mentally handicapped as to be
dependent upon the fireman for support, shall not render the child
ineligible for child's disability benefit. The fireman thereafter shall
receive such annuity or annuities as are provided for him in accordance
with other provisions of this Article.
(Source: P.A. 102-91, eff. 7-9-21; 102-1064, eff. 6-10-22.)
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(40 ILCS 5/6-151.2) Sec. 6-151.2. Disability benefits; terminally ill. Notwithstanding any other provision of Sections 6-151, 6-151.1, and 6-154, an active fireman who is certified to be terminally ill by a Board-appointed physician may, upon such certification, make application with the Board for a determination that the participant is eligible to receive a disability benefit, even though, at the time, the participant has the right to receive salary. However, an active fireman may not receive any such disability benefit payments at the same time the participant receives salary.
(Source: P.A. 95-1036, eff. 2-17-09.) |
(40 ILCS 5/6-152) (from Ch. 108 1/2, par. 6-152)
Sec. 6-152.
Ordinary disability benefits.
Any fireman who is not eligible for minimum annuity, who becomes
disabled after the effective date as the result of any cause other than
the performance of an act or acts of duty, shall have a right to
receive ordinary disability benefit during any period or periods of such
disability, after the first 30 days of disability. Payment of such
benefits shall not exceed, in the aggregate, throughout the entire
service of the fireman, a period equal to 1/2 of the total service
rendered by him prior to the time he became disabled, but not to exceed
5 years. In computing such period of service, the time that the fireman
received ordinary disability benefit shall not be included.
The first payment of the benefit shall be made not later than one
month after the benefit is granted and each subsequent payment shall be
made not later than one month after the time when the latest payment was
made.
When a disabled fireman becomes eligible for minimum annuity, the
disability benefit shall cease and he shall thereafter receive such
annuity or annuities as are provided for him in accordance with other
provisions of this Article.
Ordinary disability benefit shall be 50% of the fireman's salary at
the time the disability occurs. Before any payment is made, a sum
ordinarily deducted from the fireman's salary for annuity purposes
during a period of time equal to that for which such payment of ordinary
disability benefit is to be made shall be deducted from such payment and
credited to him as a deduction from his salary for such period. The sums
so credited shall be regarded, for annuity and refund purposes, as sums
contributed by the fireman.
(Source: P.A. 84-11.)
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(40 ILCS 5/6-153) (from Ch. 108 1/2, par. 6-153)
Sec. 6-153.
Proof of duty, occupational disease, or ordinary disability
shall be furnished to the Board by at least one licensed and practicing
physician appointed by the Board. In cases where the Board requires the
applicant to obtain a second opinion, the applicant may select a physician
from a list of qualified licensed and practicing physicians which shall be
established and maintained by the board. The Board may require other
evidence of disability. A disabled fireman who is receiving a duty,
occupational disease, or ordinary disability benefit shall be examined at
least once a year or such longer period as determined by the Board, by one or more licensed and practicing physicians
appointed by the board; however such examination may be waived by
the Board if the appointed physician certifies in writing to the Board that
the disability of the fireman is of such a nature as to render him
permanently disabled and unable ever to return to service.
When the disability ceases, the Board shall discontinue payment of the
benefit and the fireman shall be returned to service in his proper rank or grade.
(Source: P.A. 96-727, eff. 8-25-09.)
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(40 ILCS 5/6-154) (from Ch. 108 1/2, par. 6-154)
Sec. 6-154.
Administration of disability benefits.
If a fireman who is granted any type of disability benefit under this
Article refuses to submit to examination by any physician appointed by
the board, he shall have no further right to receive the benefit.
A fireman who has withdrawn while disabled and entered upon annuity,
and who re-enters the service on or after the date of withdrawal, and
who has not served at least one year subsequent to the date of such
re-entry, shall not receive ordinary disability benefit in excess of the
amount he has previously received as pension on account of disability,
or as annuity, for an equal period of disability. This provision shall
apply throughout the duration of any disability incurred by the fireman
within one year after his reinstatement resulting from any cause other
than the performance of an act or acts of duty.
No disability benefit shall be paid on account of any form of
disability for any period of time for which a disabled fireman has a
right to receive any part of his salary, under any law or ordinance in
effect in the city.
If a disabled fireman receives compensation from the city for such
disability under the Workers' Compensation Act or Occupational Diseases
Act, the disability benefit provided herein shall be reduced by any
amount so received, if such amount is less than the amount of the
benefit; and if the amount received as compensation exceeds the amount
of the disability benefit, the fireman shall not receive such disability
benefit until the benefit payable, accumulated at the rate herein
stated, equals the amount of such compensation without consideration of
interest.
If the widow, child or children, or parent or parents (or any of
these persons) of any fireman whose death results from an act or acts of
duty receives any compensation from the city under the Workers'
Compensation Act or Occupational Diseases Act, the annuities herein
provided for such beneficiaries shall be reduced by any amounts so
received, if such amounts are less than the amount of the annuity or
annuities. If the amount or amounts received as compensation exceed the
amount or amounts of the annuity or annuities for the widow, child or
children, or parent or parents, the annuities shall not be payable until
the accumulated value of the annuity or annuities at the rate herein
stated equals the amount of such compensation without consideration of
interest. In making such adjustment, the annuity to the widow shall
first be reduced.
Disability pension or disability benefit shall not be paid to any
fireman while he resides outside the State of Illinois, unless such
residence is by permission of the board.
(Source: P.A. 81-992.)
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(40 ILCS 5/6-155) (from Ch. 108 1/2, par. 6-155)
Sec. 6-155.
Annuity after withdrawal while disabled.
A fireman who continues to be disabled beyond the maximum period of
eligibility for ordinary disability benefits as the result of any cause
other than the performance of an act or acts of duty, and who withdraws
while still so disabled and before age 50, shall receive the annuity
that may be provided from the amounts accumulated to his credit from
salary deductions and
contributions by the city for his retirement
annuity. The annuity shall be computed as of the age of the fireman on
the date of his withdrawal.
The annuity to which the wife of any such fireman has a right from
the date of his death shall be fixed as of her age on the date of his
withdrawal. It shall be an amount provided on a reversionary annuity
basis from the entire amount to his credit for widow's annuity. The
maximum age of the wife for annuity purposes shall not be more than 5
years less than the fireman's age.
Upon the death of a fireman after he has entered upon annuity, any
unmarried child of his under age 18, shall have a right to receive
annuity under the conditions and of the amount specified in this Article
for a child's annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-156) (from Ch. 108 1/2, par. 6-156)
Sec. 6-156.
Re-entry of pensioner or annuitant into service.
(a)
When a fireman who has withdrawn after the effective date re-enters the
service before age 63, any annuity previously granted to him and any
annuity fixed for his wife shall be cancelled. The fireman shall be
credited with the actuarial value of the annuities cancelled for him and
his wife as of their respective ages on the date of his re-entry into
service; provided, that for present employees and future entrants who
entered service prior to July 1, 1953, the maximum age of a wife for
this purpose shall not be more than 5 years less than his age, and for
future entrants who entered service after June 30, 1953, the age, for
annuity purposes, of a wife who is older than her husband shall be
assumed to be equal to his age. Such sums shall be credited to the
fireman to provide for annuities in the future.
Deductions from salary and contributions by the city for all
purposes of this Article shall be made as provided herein, and upon
subsequent retirement, new annuities based upon the amount then to his
credit for annuity purposes and the entire term of his service shall be
fixed for him and his wife.
If such fireman's wife, for whom annuity has been fixed prior to his
re-entrance into service, has died, or the marriage was dissolved before
he re-entered service, no part of any sum or sums to the credit of such
fireman for widow's prior service annuity at the time annuity for such
wife was fixed shall be credited to such fireman at the time of
re-entry. No part of any such sum or sums shall be used to provide
annuity for any wife of such fireman who is his wife at any time after
his re-entry into service.
(b) If a fireman re-enters service after age 63, payments of pension
or annuity previously granted shall be suspended. When he again
withdraws, payments upon such pension or annuity shall be resumed. If
the fireman dies in service, his widow shall receive the annuity
previously fixed for her.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-157) (from Ch. 108 1/2, par. 6-157)
Sec. 6-157.
Re-entry of fireman not in service on day prior to
effective date.
A fireman who was not in the fire service of the city on the day
prior to the effective date, and who was in such service prior to that
day and who re-enters service thereafter and before age 57 shall receive
no credit for prior service and widow's prior service annuity; provided
that such service before the effective date shall be included in
computing service for age and service annuity and widow's annuity.
Deductions from salary and contributions by the city for age and
service annuity and widow's annuity shall be made until he attains age
57.
Such fireman has a right to receive age and service annuity, from the
date of his withdrawal, as of his age on such date, of the amount
provided from the credits for such annuity on such date. The annuity to
which his widow shall be entitled shall be fixed in accordance with the
provisions of this Article relating to annuities for widows of future
entrants.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-158) (from Ch. 108 1/2, par. 6-158)
Sec. 6-158. Refund.
(a) A fireman who withdraws before age 50 and a fireman with less than
10 years of service who withdraws before age 57, or any fireman who
withdraws and enters the service of another department of the city, has a
right to a refund of the entire amount to his credit as of the date of
withdrawal for age and service annuity or Tier 2 monthly retirement annuity, for automatic annual increase in annuity as provided in Section 6-164, and for widow's annuity or Tier 2 surviving spouse's annuity, from deductions
from salary.
(b) Any such fireman shall be entitled to refund until he re-enters
service or until his annuity is fixed.
(c) A fireman who receives a refund forfeits all rights to any annuity
or benefit from the fund, for himself and for any other person who might
benefit through him because of his service, provided he shall retain the
right to credit for any such service, for the purpose of computing his
total service if he re-enters service before age 57, becomes a beneficiary
of the fund and makes repayment of the refund with interest.
(d) A fireman completing 10 years of service who does not receive a
refund, may receive an annuity as provided in this Article.
(e) A fireman completing less than 10 years who does not receive a
refund has a right to have all amounts to his credit for annuity purposes
on the date of withdrawal improved by interest while he is out of service
until age 57 only, for his benefit and the benefit of any person who may
have any right to annuity through him, if he subsequently reenters service
and attains a right to annuity.
(f) The changes made to this Section by this amendatory Act of the 102nd General Assembly are intended to be a restatement and clarification of existing law and are intended to be retroactive to August 6, 2021 (the effective date of Public Act 102-293). (Source: P.A. 102-293, eff. 8-6-21; 102-836, eff. 5-13-22.)
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(40 ILCS 5/6-159) (from Ch. 108 1/2, par. 6-159)
Sec. 6-159. Refund - Re-entry into service - Repayment of refund.
A fireman who receives a refund, and who subsequently re-enters the
service, shall not thereafter receive, nor shall his widow or parent or
parents receive, any annuity, benefit or pension under this Article unless
he or his widow, or parent or parents, repays the refund within 2
years after the date of re-entry into service or by January 1, 2011, whichever
is later, with interest at the actuarially assumed rate,
compounded annually, from the date the refund was received to the date such
amount is repaid. The change made in this Section by this amendatory Act of
1995 applies without regard to whether the fireman was in service on or after
the effective date of this amendatory Act of 1995.
A fireman who has failed to repay any refund due to the Fund under this Article after re-entering service shall be treated as a new employee and shall only receive service credit from the date that he has re-entered service as a new employee. (Source: P.A. 96-727, eff. 8-25-09.)
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(40 ILCS 5/6-160)
(from Ch. 108 1/2, par. 6-160)
Sec. 6-160. Refund - Widow's annuity contributions. When a fireman attains
age 63 in service and is not then married, or when an unmarried fireman
withdraws before age 63 and enters upon annuity, his contributions for widow's
annuity shall then be refunded to him, upon request. A refund under this
Section may be repaid as provided in Section 6-142(B).
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/6-161) (from Ch. 108 1/2, par. 6-161)
Sec. 6-161.
Refund-Transfer of city contributions.
Whenever any amounts are refunded, the accumulated city contributions
shall be transferred to the prior service annuity reserve until such time
as the assets of said reserve become equal to the liabilities thereof.
Thereafter such amounts and the interest thereon shall be used to reduce
the amount which the city would otherwise be required to contribute during
a succeeding year to the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-162) (from Ch. 108 1/2, par. 6-162)
Sec. 6-162.
Refund - Widows and children.
If the amount accumulated in the account of a deceased unmarried
fireman from salary deductions
for annuity purposes after the effective
date, including interest, has not been paid to him or his parent or
parents, and in the case of a deceased married fireman to him and his
widow, in form of annuity or benefit before the death of the last
survivor of such persons, the remaining amount if any, without interest,
shall be paid in the following order of precedence: (a) to the
administrator or executor of the fireman's estate; (b) for burial
expenses of the fireman; and (c) to his heirs according to the law
pertaining to administration of estates; provided, if any of his
children less than age 18 survive, such amount as is necessary to pay
children's annuities shall not be refunded, but shall be transferred to
the Child's Annuity Reserve, and used for the payment of annuities to
children.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-163) (from Ch. 108 1/2, par. 6-163)
Sec. 6-163.
Annual salary for computing annuities and benefits-Amount of duty
disability benefit limited.
For age and service annuity, the minimum annuities prescribed in
Sections 6-123 and 6-128 and for disability benefits, salary as defined
in Section 6-111 shall be the basis of computation. For disability pension
and duty disability benefit under this Article, it shall be assumed that
the annual salary of a fireman is the amount set out and appropriated for
the rank or grade held by him in the annual budget or appropriation of the
city, and that when salary is appropriated in a lump sum to be paid on the
basis of a daily wage for services as needed, the annual salary is the
amount ascertained by multiplying the daily wage by 280; provided that (1)
for computing minimum annuity, disability pension and duty disability
benefits from and after January 1, 1941, the salary shall be assumed to be
not less than the salary appropriated for the rank or grade held by the
fireman concerned on December 31, 1940; and that (2) when the amount of
salary appropriated for a position is for a definite period of less than 12
months in any one year subsequent to December 31, 1940, disability benefit
shall be computed upon the basis of a daily wage or salary by dividing the
amount appropriated for such disabled person by 365; and (3) the amount of
duty disability benefit, either in itself or when added to child's
disability benefit, shall not exceed the actual salary appropriated for the
rank or grade held by the disabled person when the right to such disability
benefits accrues.
The provisions of this section shall be retroactive to January 1, 1941,
but shall not apply to any person whose pension, annuity or disability
benefit has been or shall be granted, based upon or computed in accordance
with the provisions of any Act other than this Article or the "Firemen's
Annuity and Benefit Fund of the Illinois Municipal Code".
(Source: Laws 1967, p. 3625.)
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(40 ILCS 5/6-164)
(from Ch. 108 1/2, par. 6-164)
Sec. 6-164. Automatic annual increase; retirement after September 1, 1959.
(a) A fireman qualifying for a minimum annuity who retires from service
after September 1, 1959 shall, upon either the first of the month following the
first anniversary of his date of retirement if he is age 55 or over on that anniversary date, or upon
the first of the month following his attainment of age 55 if that occurs after the first anniversary
of his retirement date, have his then fixed and payable monthly annuity
increased by 1 1/2%, and such first fixed annuity as granted at retirement
increased by an additional 1 1/2% in January of each year thereafter up to a
maximum increase of 30%.
Beginning July 1, 1982 for firemen born before January 1, 1930, and beginning
January 1, 1990 for firemen born after December 31, 1929 and before January 1,
1940, and beginning January 1, 1996 for firemen born after December 31, 1939
but before January 1, 1945, and beginning January 1, 2004, for firemen born
after December 31, 1944 but before January 1, 1955, and beginning January 1, 2017, for firemen born after December 31, 1954, such increases shall be
3% and such firemen shall not be subject to the 30% maximum increase.
Any fireman born before January 1, 1945 who qualifies for a minimum annuity
and retires after September 1, 1967 but has not received the initial increase
under this subsection before January 1, 1996 is entitled to receive the initial
increase under this subsection on (1) January 1, 1996, (2) the first
anniversary of the date of retirement, or (3) attainment of age 55, whichever
occurs last. The changes to this Section made by this amendatory Act of 1995
apply beginning January 1, 1996 and apply without regard to whether the fireman
or annuitant terminated service before the effective date of this amendatory
Act of 1995.
Any fireman born before January 1, 1955 who qualifies for a minimum
annuity and retires after September 1, 1967 but has not received the initial
increase under this subsection before January 1, 2004 is entitled to receive
the initial increase under this subsection on (1) January 1, 2004, (2) the
first anniversary of the date of retirement, or (3) attainment of age 55,
whichever occurs last. The changes to this Section made by this amendatory
Act of the 93rd General Assembly apply without regard to whether the fireman
or annuitant terminated service before the effective date of this amendatory
Act.
Any fireman born after December 31, 1954 but before January 1, 1966 who qualifies for
a minimum annuity and retires after
September 1, 1967 is entitled to
receive an increase under this subsection on (1)
January 1, 2017, (2) the first anniversary of the date of
retirement, or (3) attainment of age 55, whichever occurs last, in an amount equal to an increase of 3% of his then fixed and payable monthly annuity upon the first of the month following the first anniversary of his date of retirement if he is age 55 or over on that anniversary date or upon the first of the month following his attainment of age 55 if that date occurs after the first anniversary of his retirement date and such first fixed annuity as granted at retirement shall be increased by an additional 3% in January of each year thereafter. In the case of a fireman born after December 31, 1954 but before January 1, 1966 who received an increase in any year of 1.5%, that fireman shall receive an increase for any such year so that the total increase is equal to 3% for each year the fireman would have been otherwise eligible had the fireman not received any increase. The changes to this subsection made by this amendatory
Act of the 99th General Assembly apply without regard to whether the fireman
or annuitant terminated service before the effective date of this amendatory
Act. The changes to this subsection made by this amendatory Act of the 100th General Assembly are a declaration of existing law and shall not be construed as a new enactment. Any fireman who qualifies for
a minimum annuity and retires after
September 1, 1967 is entitled to
receive an increase under this subsection on (1)
January 1, 2020, (2) the first anniversary of the date of
retirement, or (3) attainment of age 55, whichever occurs last, in an amount equal to an increase of 3% of his or her then fixed and payable monthly annuity upon the first of the month following the first anniversary of his or her date of retirement if he or she is age 55 or over on that anniversary date or upon the first of the month following his or her attainment of age 55 if that date occurs after the first anniversary of his or her retirement date and such first fixed annuity as granted at retirement shall be increased by an additional 3% in January of each year thereafter. In the case of a fireman who received an increase in any year of 1.5%, that fireman shall receive an increase for any such year so that the total increase is equal to 3% for each year the fireman would have been otherwise eligible had the fireman not received any increase. The changes to this subsection made by this amendatory
Act of the 101st General Assembly apply without regard to whether the fireman
or annuitant terminated service before the effective date of this amendatory
Act of the 101st General Assembly. (b) Subsection (a) of this Section is
not applicable to an employee receiving a term annuity.
(c) To help defray the cost of such increases in annuity, there
shall be deducted, beginning September 1, 1959, from each payment of salary
to a fireman, 1/8 of 1% of each such salary payment and an additional 1/8
of 1% beginning on September 1, 1961, and September 1, 1963, respectively,
concurrently with and in addition to the salary deductions otherwise made
for annuity purposes.
Each such additional 1/8 of 1% deduction from salary which shall, on
September 1, 1963, result in a total increase of 3/8 of 1% of salary,
shall be credited to the Automatic Increase Reserve, to be used,
together with city contributions as provided in this Article, to defray
the cost of the annuity increments specified in this Section. Any balance
in such reserve as of the beginning of each calendar year shall be
credited with interest at the rate of 3% per annum.
The salary deductions provided in this Section are not subject to
refund, except to the fireman himself in any case in which: (i) the fireman
withdraws prior to qualification for minimum annuity or Tier 2 monthly retirement annuity and applies for
refund, (ii) the fireman applies for an annuity of a type that is not subject to annual increases under this Section, or (iii) a term annuity becomes
payable. In such cases, the total of such salary deductions shall be
refunded to the fireman, without interest, and charged to the
aforementioned reserve.
(d) Notwithstanding any other provision of this Article, the Tier 2 monthly retirement annuity of a
person who first becomes a fireman under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after (i) the attainment of age 60 or (ii) the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not be increased. For the purposes of this subsection (d), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds by November 1 of each year. (Source: P.A. 100-23, eff. 7-6-17; 100-539, eff. 11-7-17; 101-673, eff. 4-5-21.)
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(40 ILCS 5/6-164.1) (from Ch. 108 1/2, par. 6-164.1)
Sec. 6-164.1.
Automatic annual increase; retirement on or before
September 1, 1959.
(a) A retired fireman, qualifying for minimum annuity
or who retired from service with 20 or more years of service,
on or before September 1, 1959, at age 50 or over shall
have, in January of the year following the year he attains
the age of 65, or in January, 1970, if he is then over age 65, his then
fixed and payable monthly annuity increased by an amount equal to 2% of the
original grant of annuity, for each year he received annuity payments after
the year in which he attains age 65. An additional 2% increase in such
fixed and payable original granted annuity shall accrue in each January
thereafter.
However, beginning January 1, 1996, the increases payable under this
subsection (a) to a fireman born before January 1, 1945 shall be at the rate of
3% of the originally granted annuity amount, notwithstanding that the fireman
terminated service prior to the effective date of this amendatory Act of
1995.
(b) The provisions of subsection (a) of
this Section apply only to a retired fireman eligible for such
increases in his annuity if he contributed to the fund a sum equal to 1% of
the final average monthly salary used in the computation of the annuity for
each full year of credited service upon which his annuity was computed. All
such sums contributed shall be placed in a Supplementary Payment Reserve
and used for the purposes of such fund account.
(c) Beginning with the monthly annuity payment due in July, 1982,
the monthly annuity payment for any fireman who retired from the service
before September 1, 1976 at age 50 or over with 20 or more years of service
or who was granted duty disability benefits prior to September 1, 1957 and
entitled to an annuity or duty disability benefits on July 1, 1975 shall be
not less than $400.
(d) The difference in amount between the minimum monthly annuity
specified in subsection (c) and the minimum
monthly annuity to which the fireman was entitled before July 1, 1975, in
accordance with the provisions of Section 6-128.1, shall be paid as a
supplement in the manner set forth in subsection (e).
(e) To defray the annual cost of the increases indicated in the
preceding part of this Section, the annual income accruing from
investments held by this fund, above 4% a year, to the extent
necessary and available to finance the cost of such increases for the
following year, shall be transferred each year beginning with the year 1969
to a fund account designated as the Supplementary Payment Reserve from the
Interest and Investment Reserve set forth in Section 6-203.
If the money in the Supplementary Payment Reserve in any year arising
from interest income above 4% a year as defined in this Section accruing in
the preceding year; and the contributions by retired persons, are
insufficient to make the total payments to all persons entitled to the
annuity under this Section; and any investment earnings over 4% a year
beginning with the year 1969 not previously used to finance such increases
and transferred to the Prior Service Annuity Reserve, may be used to the
extent necessary and available to provide sufficient funds to finance such
increases for the current year. Such sums shall be transferred from the
Prior Service Annuity Reserve. If the total money available in the
Supplementary Payment Reserve from such sources are insufficient to make
the total payments to all persons entitled to such increases for the year,
a proportionate amount computed as the ratio of the money available to the
total of all the payments specified for that year shall be paid to each
person for that year.
No part of any such increase under this Section is an obligation of the
fund otherwise established under this Article 6.
(Source: P.A. 89-136, eff. 7-14-95.)
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(40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
Sec. 6-164.2. Payments to city.
(a) For the purposes of this Section, "city annuitant" means a person
receiving an age and service annuity, a widow's annuity, a child's annuity, or
a minimum annuity under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the board's city
annuitants who participate in any of the city's health care plans, the
following amounts:
(1) From July 1, 2003 through June 30, 2008, $85 per | ||
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(2) Beginning July 1, 2008 and until such time as the | ||
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The payments described in this subsection shall be paid from the tax levy
authorized under Section 6-165; such amounts shall be credited to the reserve
for group hospital care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be charged against
it.
(c) The city health care plans referred to in this Section and the board's
payments to the city under this Section are not and shall not be construed to
be pension or retirement benefits for the purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(Source: P.A. 98-43, eff. 6-28-13.)
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(40 ILCS 5/6-165)
(from Ch. 108 1/2, par. 6-165)
Sec. 6-165. Financing; tax.
(a) Except as expressly provided in this
Section, each city shall levy a tax annually upon all
taxable property therein for the purpose of providing revenue for the
fund. For the years prior to the year 1960, the tax rate shall be as
provided for in the "Firemen's Annuity and Benefit Fund of the Illinois
Municipal Code". The tax, from and after January 1, 1968 to and
including the year 1971, shall not exceed .0863% of the value, as
equalized or assessed by the Department of Revenue, of
all taxable property in the city. Beginning with the year 1972 and through 2014, the city shall levy a tax annually at a rate on the
dollar of the value, as equalized or assessed by the Department of Revenue
of all taxable property within such city that will
produce, when extended, not to exceed an amount equal to the total
amount of contributions by the employees to the fund made in the
calendar year 2 years prior to the year for which the annual applicable
tax is levied, multiplied by 2.23 through the calendar year 1981, and by
2.26 for the year 1982 and for each tax levy year through 2014. Beginning in tax levy year 2015, the city council shall levy a tax annually at a rate on the dollar of the assessed valuation of all taxable property that will produce when extended an annual amount that is equal to no less than the amount of the city's contribution in each of the following payment years: for 2016, $199,000,000; for 2017, $208,000,000; for 2018, $227,000,000; for 2019, $235,000,000; for 2020, $245,000,000. Beginning in tax levy year 2020, the city council shall levy a tax annually at a rate on the dollar of the assessed valuation of all taxable property that will produce when extended an annual amount that is equal to no less than (1) the normal cost to the Fund, plus (2) an annual amount sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2055, as annually updated and determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the Fund or the city. In making these determinations, the required minimum employer contribution shall be calculated each year as a level percentage of payroll over the years remaining up to and including fiscal year 2055 and shall be determined under the entry age normal actuarial cost method. Beginning in payment year 2056, the city's required contribution in that year and for each year thereafter shall be an annual amount that is equal to no less than (1) the normal cost to the Fund, plus (2) the annual amount determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the Fund to be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund as of the end of the year, utilizing the entry age normal actuarial cost method as provided above.
To provide revenue for the ordinary death benefit established by
Section 6-150 of this Article, in addition to the contributions by the firemen
for this purpose, the city council shall for the
year 1962 and each year thereafter annually levy a tax, which shall be
in addition to and exclusive of the taxes authorized to be levied under
the foregoing provisions of this Section, upon all taxable property in
the city, as equalized or assessed by the Department of Revenue, at such
rate per cent of the value of such property as shall be
sufficient to produce for each year the sum of $142,000.
The amounts produced by the taxes levied annually, together with the
deposit expressly authorized in this Section, shall be
sufficient, when added to the amounts deducted from the salaries of
firemen and applied to the fund, to provide for the purposes of the
fund.
(a-5) For purposes of determining the required employer contribution to the Fund, the value of the Fund's assets shall be equal to the actuarial value of the Fund's assets, which shall be calculated as follows: (1) On March 30, 2011, the actuarial value of the | ||
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(2) In determining the actuarial value of the Fund's | ||
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(a-7) If the city fails to transmit to the Fund contributions required of it under this Article for more than 90 days after the payment of those contributions is due, the Fund shall, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in fiscal year 2016, deduct and deposit into the Fund the certified amounts or a portion of those amounts from the following proportions of grants of State funds to the city: (1) in fiscal year 2016, one-third of the total | ||
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(2) in fiscal year 2017, two-thirds of the total | ||
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(3) in fiscal year 2018 and each fiscal year | ||
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The State Comptroller may not deduct from any grants of State funds to the city more than the amount of delinquent payments certified to the State Comptroller by the Fund. (b) The taxes shall be levied and collected in like manner with the
general taxes of the city, and shall be in addition to all other taxes
which the city may levy upon all taxable property therein and shall be
exclusive of and in addition to the amount of tax the city may levy for
general purposes under Section 8-3-1 of the Illinois Municipal Code,
approved May 29, 1961, as amended, or under any other law or laws which
may limit the amount of tax which the city may levy for general
purposes.
(c) The amounts of the taxes to be levied in each year shall be
certified to the city council by the board.
(d) As soon as any revenue derived from such taxes is collected, it
shall be paid to the city treasurer and held for the benefit of the fund, and
all such revenue shall be paid into the fund in accordance with the
provisions of this Article.
(e) If the funds available are insufficient during any year to
meet the requirements of this Article, the city may issue tax anticipation
warrants, against the tax levies herein authorized for the current
fiscal year.
(f) The various sums, hereinafter stated, including interest, to be
contributed by the city, shall be taken from the revenue derived from the taxes
or otherwise as expressly provided in this Section. Except for defraying the
cost of administration of the fund during the calendar year in which a city
first attains a population of 500,000 and comes under the provisions of this
Article and the first calendar year thereafter, any money of the city derived
from any source other than these taxes or the sale of tax anticipation warrants
shall not be used to provide revenue for the fund, nor to pay any part of the
cost of administration thereof, unless applied to make the deposit expressly
authorized in this Section
or the additional city contributions required under subsection (h).
(g) In lieu of levying all or a portion of the tax required under this
Section in any year, the city may deposit with the city treasurer no later than
March 1 of that year for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied under this Section
for that year, is not less than the amount of the city contributions for that
year as certified by the board to the city council. The deposit may be derived
from any source legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit shall satisfy
fully the requirements of this Section for that year to the extent of the
amounts so deposited. Amounts deposited under this subsection may be used
by the fund for any of the purposes for which the proceeds of the taxes levied
under this Section may be used, including the payment of any amount that is
otherwise required by this Article to be paid from the proceeds of those
taxes.
(h) In addition to the contributions required under the other provisions
of this Article, by November 1 of the following specified years, the city shall
deposit with the city treasurer for the benefit of the fund, to be held and
used in accordance with this Article, the following specified amounts:
$6,300,000 in 1999;
$5,880,000 in 2000;
$5,460,000 in 2001;
$5,040,000 in 2002; and
$4,620,000 in 2003.
The additional city contributions required under this subsection are
intended to decrease the unfunded liability of the fund and shall not decrease
the amount of the city contributions required under the other provisions of
this Article. The additional city contributions made under this subsection
may be used by the fund for any of its lawful purposes.
(i) Any proceeds received by the city in relation to the operation of a casino or casinos within the city shall be expended by the city for payment to the Firemen's Annuity and Benefit Fund of Chicago to satisfy the city contribution obligation in any year. (Source: P.A. 99-506, eff. 5-30-16.)
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(40 ILCS 5/6-165.1) (from Ch. 108 1/2, par. 6-165.1)
Sec. 6-165.1.
The employer may pick up the employee contributions required
by Sections 6-143.1, 6-152, 6-164, 6-166, 6-167, 6-168 and 6-170 for
salary earned after December 31, 1981.
If employee contributions are not picked up, the amount that would have
been picked up
under this amendatory Act of 1980 shall continue to be deducted
from salary. If employee contributions are picked up they
shall be treated as
employer contributions in determining tax treatment under
the United States Internal Revenue Code; however, the employer shall continue
to withhold Federal and state income taxes based upon these contributions
until the Internal Revenue Service
or the Federal courts rule that pursuant to Section 414(h) of the United
States Internal Revenue Code, these contributions shall not be included
as gross income of the employee
until such time as they are distributed or made available.
The employer shall pay these employee contributions from the same source
of funds which is used in paying salary to the employee.
The employer may pick up these contributions by a reduction in the cash
salary of the employee or by an offset against a future salary increase
or by a combination
of a reduction in salary and offset against a future salary increase.
If employee contributions are picked up they shall be treated for all
purposes of this Article 6, including Section 6-165, in the same manner
and to the same extent as employee contributions made prior to the date picked up.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-165.2) Sec. 6-165.2. Funding obligation. (a) Beginning January 1, 2016, the city shall be obligated to contribute to the Fund in
each fiscal year an amount not less than the amount determined annually under subsection (a) of Section 6-165 of this Code. Notwithstanding any other provision of law, if the city fails to pay the amount guaranteed under this Section on or before December 31 of the year in which such amount is due, the Fund may bring a mandamus action in the Circuit Court of Cook County to compel the city to make the required payment, irrespective of other remedies that may be available to the Fund. The obligations and causes of action created under this Section shall be in addition to any other right or remedy otherwise accorded by common law or State or federal law, and nothing in this Section shall be construed to deny, abrogate, impair, or waive any such common law or statutory right or remedy. (b) In ordering the city to make the required payment, the court may order a reasonable
payment schedule to enable the city to make the required payment without significantly imperilling the public health, safety, or welfare. Any payments required to be made by the city pursuant to this Section are expressly subordinated to the payment of the principal, interest, premium, if any, and other payments on or related to any bonded debt obligation of the city, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from any funds collected or received by the city or collected or received on behalf of the city. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law, city ordinance, or bond indentures, into debt service funds or accounts of the city related to such bonded obligations, consistent with the payment schedules associated with such obligations.
(Source: P.A. 99-506, eff. 5-30-16.) |
(40 ILCS 5/6-166) (from Ch. 108 1/2, par. 6-166)
Sec. 6-166. Contributions for age and service annuities or Tier 2 monthly retirement annuities for present employees and
future entrants. (a) After the effective date and prior to July 1, 1953, 3 1/2%, and after
June 30, 1953, and prior to September 1, 1959, 6%, and beginning September
1, 1959, 7 1/8% of each payment of the salary of each present employee and
future entrant shall be deducted and contributed to the fund for age and
service annuity or Tier 2 monthly retirement annuity. The deductions shall be made at the time payments of
salary are payable and shall continue while the employee is in service.
Concurrently with each such contribution, the city shall contribute 8
1/2% of each payment of salary, but the city contributions shall cease for
all employees upon their attainment of age 63.
(b) Each contribution by the employee and the city shall be allocated to the
account of and credited to the employee, and shall be improved by interest
at the applicable rate during the time he is in service until the age and
service annuity is fixed. Any accretion, by way of interest or otherwise,
upon such sum or any deduction from salary made after the annuity is fixed
for a present employee or after attainment of age 63 by a future entrant
who first
becomes a fireman under this Article before January 1, 2011 shall not be credited to the employee for age and service annuity.
(Source: P.A. 99-905, eff. 11-29-16.)
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(40 ILCS 5/6-167) (from Ch. 108 1/2, par. 6-167)
Sec. 6-167. Contributions for widow's annuity and Tier 2 surviving spouse's annuity. Beginning on the effective date and prior to September 1, 1957,
1% of each payment of salary of not more than $3,000 of each employee and
beginning September 1, 1957, 1% of each payment of salary of not more than
$6,000 of each present employee and future entrant shall be deducted and
contributed to the fund for widow's annuity. After September 1, 1967
and prior to January 1, 1976,
1%,
and beginning January 1, 1976, 1 1/2%
of salary without limitation shall be deducted from the pay of each
present employee and future entrant and contributed to the fund for widow's
annuity or Tier 2 surviving spouse's annuity. The deduction shall be made at the time the payments of salary are
payable and shall continue during the service of the employee.
Concurrently with each contribution, the city shall contribute 2% of
each payment of salary.
Each contribution by the employee and the city shall be allocated to the
accounts of and credited to the employee for widow's annuity or Tier 2 surviving spouse's annuity.
(Source: P.A. 99-905, eff. 11-29-16.)
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(40 ILCS 5/6-168) (from Ch. 108 1/2, par. 6-168)
Sec. 6-168.
Contributions for death benefit.
To defray the cost of the ordinary death benefit, each fireman in
service on or after January 1, 1962, shall make contributions in addition
to the contributions otherwise provided in this Article, in the amount of
$2.50 per monthly period. This contribution shall begin with the first pay
period accruing after January 1, 1962, and shall be deducted from the
salary of each fireman at the same time and with the same frequency as
deductions are made for the other purposes of this Article.
Contributions towards this benefit shall be made only when the fireman
is in active service and in receipt of salary. Firemen in receipt of
disability benefits and firemen in receipt of annuities whose retirement
occurred on or after January 1, 1962, shall not be required to make
contributions during such period of disability or retirement.
The amount contributed by such city, through the tax levy prescribed in
Section 6-165 hereof toward this ordinary death benefit, shall be credited
each year to the death benefit reserve and a credit for the amount of
$142,000 from each tax levy beginning with the year 1962 shall be made to
this reserve notwithstanding the requirements for all other purposes of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-169) (from Ch. 108 1/2, par. 6-169)
Sec. 6-169.
In lieu of salary deductions
for annuity purposes, the
city shall contribute sums equal to such amounts for any period during
which a fireman received duty disability benefit or occupational disease
disability benefit. The contributions shall be credited to the disabled
fireman and shall be regarded for annuity purposes as sums contributed
by the fireman.
The city shall also contribute amounts ordinarily contributed for
annuity purposes for such fireman as though he were in active discharge
of his duties during either such disability.
To provide widow's annuity in accordance with the benefits authorized
in Section 6-140, the city shall contribute such sums annually, from the
date of the fireman's death to provide said annuity to the widow for
life.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-170) (from Ch. 108 1/2, par. 6-170)
Sec. 6-170.
Contributions by city and firemen for ordinary disability benefits.
The city shall contribute all amounts ordinarily contributed by it for
annuity purposes for any fireman receiving ordinary disability benefit and
the fireman shall receive credit therefor as though he were in active
discharge of his duties during disability.
For each year, at least 1/3 of the total sum estimated annually by the
board as necessary to provide ordinary disability benefits during the year
shall be contributed by the firemen as follows:
Such amount (1/3 of said total sum) shall be prorated among all such
firemen in proportion to the annual salary of each fireman, the percentage
of each such annual salary which the sum related thereto shall constitute
shall be ascertained, and a sum equal to a life percentage of each payment
of such salary, but not less than 1/8 of 1% of each such payment, shall be
deducted from each payment of salary.
The city shall contribute the balance of the total sum estimated
annually as necessary to provide ordinary disability benefits during each
year.
Whenever the balance in the ordinary disability reserve at the end of
any calendar year, exclusive of employee contributions and city
contributions for ordinary disability benefit purposes for such year, is
sufficient to provide for all valid claims for ordinary disability benefits
due for such year, such salary deductions for such year shall forthwith
become the property of the respective firemen concerned. Any fireman from
whose salary such deductions were made for such year may direct the board
to transfer such deductions to the Gift Reserve to be used as he specifies
in writing, or may otherwise direct the retirement board as to the
disposition to be made of these deductions, excepting that they may not be
credited to his account in the salary deduction reserve or in the annuity
payment reserve; and the city shall not be required to contribute any
amount for ordinary disability benefit purposes for such year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-171) (from Ch. 108 1/2, par. 6-171)
Sec. 6-171.
Contributions by city for certain annuities.
(a) Each city shall contribute annually, from the sum produced by tax
levy herein authorized, all sums required for the purposes of this Article,
other than those stated in this Section.
(b) Thereafter, the balance of the sum produced by the tax levy shall be
applied to provide prior service and widow's prior service annuities under
this Article, and all annuities, pensions and benefits which have been or
shall be granted under "An Act to provide for a firemen's pension fund and
to create a board of trustees to administer said pension fund in cities
having a population exceeding two hundred thousand (200,000) inhabitants",
filed June 14, 1917, as amended, and also for the purpose of providing
that part of any annuity described in Sections 6-123, 6-128, 6-141 and
6-164 of this Article for which moneys are not provided under this
Article, and to make possible the transfer of reserves from the investment
and interest reserve to other reserves.
(c) All amounts contributed by the city for the purposes of this Section
shall be credited to the prior service annuity reserve except that
contributions made for the purposes of Section 6-164 shall be credited to
the automatic increase reserve. When the balance of each of these reserves
equals the liabilities of each such reserve (including, in addition to all
other liabilities of such reserve, the present value, according to the
applicable mortality table, and applicable interest rate, of all annuities,
present or prospective, or parts of such annuities chargeable to that
reserve) the city shall cease to contribute the sum stated in paragraph (b)
of this Section; provided, if at any time the balance of the investment and
interest reserve is not sufficient to permit a transfer of moneys from that
reserve to any other reserve, in accordance with the provisions of this
Article, the city shall, as soon as practicable thereafter, contribute sums
sufficient to make possible such transfer of the amounts required.
(d) If by reason of annexation of territory and the employment by the
city of any fireman employed in the territory at the time of the
annexation, after the city has ceased to contribute as provided in
paragraph (b) of this Section, contributions to provide prior service and
widow's prior service annuity for such fireman becomes necessary for such
annuity purposes, the city shall, as soon as practicable thereafter,
contribute sums sufficient to provide such annuities.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-172) (from Ch. 108 1/2, par. 6-172)
Sec. 6-172.
Contributions by city for administration costs.
Beginning September 1, 1959, the city shall contribute, the entire costs
of administration of the fund from revenue derived from the taxes
authorized to be levied for the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-173) (from Ch. 108 1/2, par. 6-173)
Sec. 6-173.
Other city contributions - Estimates.
The board shall estimate the amounts required each year to be
contributed by the city for all annuities, benefits and administrative
expenses. All amounts shall be paid annually by the city into the fund
from the taxes herein authorized.
If it is not possible or practicable for the city to make
contributions for age and service and widow's annuity at the time
deductions from employees' salaries are made for these purposes, the
city shall make such contributions as soon as possible thereafter, with
interest thereon at the applicable rate to the time they shall be made.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-174) (from Ch. 108 1/2, par. 6-174)
Sec. 6-174. Board created. A board of 8 members shall constitute a
board of trustees authorized to administer the provisions of this Article.
The board shall be known as the Retirement Board of the Firemen's Annuity
and Benefit Fund of the city.
The board shall consist of the city treasurer, the city comptroller, the
city clerk, a deputy fire commissioner designated by the fire commissioner
of the city, 3 firemen employed by the city, and 1 annuitant of the fund or
a fireman pensioner of any prior firemen's pension fund in operation, by
authority of law, in the city. The city treasurer, with the prior approval of the board, may appoint a designee from among employees of the city who is versed in the affairs of the city treasurer's office to act in the absence of the city treasurer on all matters pertaining to administering the provisions of this Article. Children less than age 18 shall not be
eligible for membership.
The members of a retirement board holding office at the time this
Article becomes effective, including elected and ex officio members, shall
continue in office until the expiration of their respective terms or
appointment and until their respective successors are elected or appointed,
and qualified.
In a city which first attains a population of over 500,000 and comes
under the provisions of this Article, the active firemen members of the
board of trustees of any firemen's pension fund then in effect in such city
and the member of such board who was chosen from the retired members of
such fund shall become members of the board as follows:
(a) The active fireman member for whom the highest number of votes was
cast and counted at the most recent election for board members shall become
a member of the retirement board for a term which shall end on December 1st
of the third year after the year in which this Article comes into force in
the city; the member of the board for whom the second highest number of
votes was cast and counted at such election shall become a member of the
retirement board for a term which shall end on December 1st of the second
year after the year in which this Article comes into force in the city; and
the member of the board for whom the third highest number of votes was cast
and counted at such election shall become a member of the retirement board
for a term which shall end on December 1st of the first year after the year
in which this Article comes into force in the city.
(b) The annuitant member of the pension fund shall become a member of
the board for a term which shall end on December 1st of the second year
after the year in which this Article comes into force in the city.
The board shall conduct regular elections annually, at least 30 days
prior to the expiration of the term of the active fireman member of the
board whose term next expires, for the election of a successor for a term
of 3 years. The board also shall conduct regular elections, at
least 30 days prior to the expiration of the term of the member who is a
pensioner of any pension fund formerly in effect in such city or an
annuitant of the annuity and benefit fund herein provided, for the election
of a successor to such member for a term of 3 years.
Any member of the board, elected as aforesaid, shall continue in office
until his successor is elected and qualified.
Each member of the board, before entering upon the duties of his office,
shall take the oath prescribed by the Constitution of this State, which
oath shall be filed in the office of the city clerk of the city.
(Source: P.A. 101-96, eff. 7-19-19; 102-995, eff. 5-27-22.)
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(40 ILCS 5/6-175) (from Ch. 108 1/2, par. 6-175)
Sec. 6-175.
Board elections.
The regular elections for members of the board shall be held by mail. The
board shall designate not less than 2
clerks of election to conduct the
election. The board shall furnish the clerks of election with a list of
firemen, pensioners and annuitants eligible to vote at the election,
and tally
sheets to be used in counting the vote. The clerks of election shall count the
votes cast, recording on the tally sheets provided a true count of
ballots cast for each candidate and the correct number of unused and
spoiled ballots.
Immediately after all ballots are counted, the clerks of election shall certify the
tally sheets by signing them at the place provided, the marked ballots
shall be sealed and delivered together with all other materials used in
the election to the office of the board, which shall cause a detailed
receipt to be issued to each clerk of election upon receiving such
material. Not later than 30 days prior to the elections, the retirement
board shall publish written rules for the conduct of the elections in
conformity herewith, including notification to eligible voters and provision for poll
watchers for candidates to be present at the places where the votes are counted.
At any election for active firemen members, all firemen employed by
the city at the time the election is held and all firemen on occupational,
duty or ordinary disability at the time the election is held shall
have a right to vote.
At any election for the pensioner or annuitant member, all annuitants
and pensioners (except children less than age 18) and the legal guardian
of any child annuitant or child pensioner whose mother or stepmother
shall not be an annuitant or pensioner, shall have a right to vote.
Ballots to be used in such elections shall be of a secret character.
The board shall mail, to each person who is entitled to vote, a ballot which
permits such person to vote by mail.
The board shall provide by its rules sufficient time before the date
of election to permit the voting by mail provided herein. The mailed
ballots shall remain sealed until the official tallying is begun, at
which time all mail votes shall be tallied by not less than 2 clerks of
election at the office of the board as hereinabove set forth.
Within 72 hours after the close of each election, the board shall
cause records pertaining to the election, including all lists of persons
eligible to vote, all ballots,
used, unused and spoiled, and all tally sheets used in the counting of
votes, to be deposited with the city clerk who shall preserve all such
material for 6 months from the date of election.
(Source: P.A. 83-152.)
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(40 ILCS 5/6-176) (from Ch. 108 1/2, par. 6-176)
Sec. 6-176.
Vacancy on board.
A vacancy on the board owing to death, resignation or any other
cause, shall be filled as follows: if the vacancy is that of an
ex-officio member, the mayor of the city shall appoint a person to serve
until a person qualified as hereinbefore described shall assume the
duties of member of the board. If the vacancy is of an active fireman
member, or a pensioner or annuitant member, the successor shall be
elected to serve during the remainder of the unexpired term at a special
election to be held by the board within 30 days from the date the
vacancy occurs and to be conducted in the same manner as the regular
annual election.
A member elected by the active firemen who resigns or is discharged
from the fire service of the city shall automatically cease to be a
member of the board.
Any Elective member of the board shall be subject to recall as follows:
If not less than 60% of the active firemen contributors to the fund, or
not less than 60% of the pensioners and annuitants (minors under age 18
excepted), petition the board in writing to declare vacant the membership
of an active fireman member or pensioner or annuitant, as the case may be,
the board, within 15 days after receipt of the petition shall declare such
membership vacant. A member of the board is not subject to recall more
than once in any calendar year nor within one year after a previous recall petition.
(Source: P.A. 81-854.)
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(40 ILCS 5/6-177) (from Ch. 108 1/2, par. 6-177)
Sec. 6-177.
As soon as possible after the board membership is first
completed, the board shall meet and from among its members elect by a
majority vote of the members who vote upon the question, a president, a
vice president, and a secretary, who shall serve until their respective
successors are elected.
At each regular meeting in December thereafter, the board shall elect,
by a majority vote of the members who vote upon the question, a president,
a vice president, and a secretary from among its own members. The secretary
shall be chosen from the active firemen members of the board. The
secretary shall be detailed to the pension board office by the Fire
Commissioner upon the secretary's election. The secretary
shall keep a record of the proceedings of all meetings of the board and
shall perform such other duties as the board directs.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-178) (from Ch. 108 1/2, par. 6-178)
Sec. 6-178.
Board meetings.
The board shall hold regular meetings in each
month and such other meetings as it deems necessary. A majority of the
members shall constitute a quorum for the transaction of business at any
meeting; provided, that no pension, annuity, or benefit shall be allowed or
granted and no money shall be paid out of the fund unless ordered by the
affirmative vote of a majority of the total membership of the board as
shown by roll call entered upon the official record of proceedings of the
meeting at which such action is taken. All board meetings shall be open
to the public.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-179) (from Ch. 108 1/2, par. 6-179)
Sec. 6-179. Board's powers and duties. The board shall have the powers and duties stated in Section 6-180 to 6-191.1, inclusive, in addition to the other powers and duties provided in
this Article.
(Source: P.A. 99-793, eff. 8-12-16.)
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(40 ILCS 5/6-180) (from Ch. 108 1/2, par. 6-180)
Sec. 6-180.
To supervise deductions and contributions.
To see that all amounts specified in this Article to be applied to
the fund, from any source, are collected and so applied; to see that the
sums to be deducted from the salaries
of firemen are deducted and paid
into the fund, and that the sums to be contributed by the city are so
contributed and received into the fund, and that all interest upon
moneys due the fund and all other moneys which accrue to the fund are
collected and paid into it.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-181) (from Ch. 108 1/2, par. 6-181)
Sec. 6-181.
To notify comptroller of deductions.
To notify the city comptroller of the amounts or percentages of salary
to be deducted from the salaries
of firemen and paid into the
fund.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-182) (from Ch. 108 1/2, par. 6-182)
Sec. 6-182.
To accept gifts.
To accept by gift, grant, bequest or otherwise any money or property of
any kind and use the same for the purposes of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-183) (from Ch. 108 1/2, par. 6-183)
Sec. 6-183.
To invest the monies of the fund in accordance with the
provisions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
1-114 and 1-115 of this Act. Investments made in accordance with Section
1-113 shall be deemed prudent.
The Board may sell any of the securities belonging to the Fund and borrow
money upon such securities as collateral whenever, in its judgment, such
action is necessary to meet the cash requirements of the Fund.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended. The limitations set forth in such Section 6 shall be
applicable only at the time of investment and shall not require the
liquidation of any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its
own name or in the name of a nominee created for the express purpose of
registration of securities by a savings and loan association or national
or State bank or trust company authorized to conduct a trust business
in the State of Illinois.
Investments shall be carried at cost or at a book value in accordance with
accounting procedures approved by the board. No adjustments shall be made
in investment carrying values for ordinary current market price fluctuations;
but reserves may be provided to account for possible losses or unrealized
gains as determined by the board.
The book value of investments held by the pension fund in one or more
commingled investment accounts shall be the cost of its units
of participation in such commingled account or accounts as recorded on the
books of the board.
The board of trustees of any fund established under this Article may not
transfer its investment authority, nor transfer the assets of the fund
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the board resolution authorizing such transfer is submitted
for approval to the contributors and pensioners of the fund at elections
held not less than 30 days after the adoption of such resolution by the
board, and such resolution is approved by a majority of the votes cast on
the question in both the contributors election and the pensioners election.
The election procedures and qualifications governing the election of trustees
shall govern the submission of resolutions for approval under this paragraph,
insofar as they may be made applicable.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-183.1) Sec. 6-183.1. To lend securities. The board may lend securities owned by the Fund to a borrower upon such terms and conditions as may be mutually agreed in writing. Such agreement shall provide that during the period of such loan the Fund shall retain the right to receive, or collect from the borrower, all dividends, interest rights, or any distributions to which the Fund would have otherwise been entitled. The borrower shall deposit with the Fund, as collateral for such loan, cash equal to the market value of the securities at the time the loan is made and shall increase the amount of collateral if and when the Fund requests an additional amount because of subsequent increased market value of the securities. The period for which the securities may be loaned shall not exceed one year, and the loan agreement may specify earlier termination by either party upon mutually agreed conditions.
(Source: P.A. 99-793, eff. 8-12-16.) |
(40 ILCS 5/6-184) (from Ch. 108 1/2, par. 6-184)
Sec. 6-184.
To have an audit.
To contract with an independent certified
public accounting firm to perform an annual audit of the assets of the fund
and issue a financial opinion. The annual audit shall be in addition to
any examination of the fund by the State Director of Insurance.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-185) (from Ch. 108 1/2, par. 6-185)
Sec. 6-185.
To authorize payments.
To authorize the payment of any annuity, pension or benefit granted
under this Article, or under any other Act relating to firemen's pensions,
heretofore in effect in the city which has been superseded by this Article;
to increase, reduce, or suspend any such annuity, pension, or benefit
whenever any part thereof was secured or granted, or the amount thereof
fixed, as the result of misrepresentation, fraud, or error; provided, that
the annuitant, pensioner, or beneficiary concerned shall be notified and
given an opportunity to be heard concerning such proposed action. The board
shall have exclusive original jurisdiction in all matters relating to or
affecting the fund, including, in addition to all other matters, all claims
for annuities, benefits, refunds or pensions.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-186) (from Ch. 108 1/2, par. 6-186)
Sec. 6-186.
To require statements and determine service credits.
To require each fireman, including those on vacation and on leave of
absence to file a statement, in such form as the board directs, concerning
service rendered prior to the effective date, from which the board shall
make a determination of the length of such service; to determine, from such
information as shall be available, the period of service rendered prior to
the effective date by any fireman who fails to file such a statement.
The determination by the board shall be conclusive as to any such period
of service unless the board reconsiders any case within 2 years from the
date of the determination and changes the determination.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-187) (from Ch. 108 1/2, par. 6-187)
Sec. 6-187.
To issue certificate of service.
To issue to each present employee a certificate which shall show the
entire period of service rendered by him prior to the effective date and
the amounts to his credit as of such date for prior service annuity and
widow's prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-188) (from Ch. 108 1/2, par. 6-188)
Sec. 6-188.
To submit annual report to city council.
To submit a report annually in June to the city council. The report
shall be made as of the close of business on December 31st of the preceding
year, and shall contain a detailed statement of the affairs of the fund,
its income and disbursements for such year, its assets and liabilities, and
the status of the fund reserves.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-189) (from Ch. 108 1/2, par. 6-189)
Sec. 6-189.
To subpoena witnesses.
To compel witnesses to attend and testify before it upon any matter
concerning the fund, and, in its discretion, allow fees not in excess of $6
to any such witness other than a fireman for attendance upon any one day.
The president and other members of the board may administer oaths to
witnesses.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-190) (from Ch. 108 1/2, par. 6-190)
Sec. 6-190.
To appoint employees.
To appoint such actuarial, medical,
legal, clerical or other employees as may be necessary. The board shall
develop procedures for obtaining, by contract or employment, any necessary
professional assistance including investment advisors and managers,
auditors, actuaries, and medical and legal professionals.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-190.1) (from Ch. 108 1/2, par. 6-190.1)
Sec. 6-190.1.
To have a budget.
The board shall adopt an annual
budget at its regular January meeting.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-191) (from Ch. 108 1/2, par. 6-191)
Sec. 6-191.
To make rules.
To make rules and regulations necessary for the administration of the
fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-191.1) Sec. 6-191.1. To reproduce records. To have any records kept by the board photographed, microfilmed, or digitally or electronically reproduced in accordance with the Local Records Act. The photographs, microfilm, and digital and electronic reproductions shall be deemed original records and documents for all purposes, including introduction in evidence before all courts and administrative agencies.
(Source: P.A. 99-793, eff. 8-12-16.) |
(40 ILCS 5/6-192) (from Ch. 108 1/2, par. 6-192)
Sec. 6-192.
Moneys which may be held on deposit.
To pay annuities and benefits, the board may at all times keep
uninvested a sum not in excess of the amount required for such payments
which become due and payable within the following 90 days. Such sum or
any part thereof, shall be kept on deposit in any bank or savings and
loan association authorized to do business in this State. The amount which
the board may deposit
in any such bank or savings and loan association, however, shall not
exceed 25% of the paid up capital
and surplus of the bank or savings and loan association.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public agencies",
approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
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(40 ILCS 5/6-193) (from Ch. 108 1/2, par. 6-193)
Sec. 6-193.
Accounting.
An adequate system of accounts and records shall
be established to give effect to the requirements of this Article, and
shall be maintained in accordance with generally accepted accounting
principles. The reserves designated in Sections 6-194 to 6-205, inclusive,
shall be maintained.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-194) (from Ch. 108 1/2, par. 6-194)
Sec. 6-194.
Expense reserve.
Amounts contributed by the city for cost of administration shall be
credited to this reserve. All expenses of administration shall be charged
to this reserve.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-195) (from Ch. 108 1/2, par. 6-195)
Sec. 6-195.
City contribution reserve.
All amounts which the city contributes for age and service annuity,
widow's and supplemental annuity, except those contributed in lieu of
deductions from salary of any fireman who
receives duty disability
benefit, and all amounts transferred to this reserve from the investment
and interest reserve shall be credited to this reserve.
An individual account shall be kept in this reserve for each employee
and for each widow for which the city shall contribute for supplemental
annuity to which city contributions and interest shall be credited.
At least once each year, and always before any transfer is made from
this reserve to any other reserve, the credits shall be improved by
interest.
When the annuity for a fireman or widow is fixed, and when
supplemental annuity for a widow first becomes payable, the total amount
in this reserve for the purpose of providing such annuity and required
therefor shall be charged to this reserve and credited to the annuity
payment reserve.
If there is to the credit of any fireman who withdraws from service
before age 63, an amount in excess of that required to provide him age
and service annuity, or in excess of that required to provide widow's
annuity for his wife (either or both) such amount shall be retained in
this reserve and improved by interest until the fireman becomes age 63
or dies, whichever event occurs first. Any such accumulated amount shall
then be used in accordance with the provisions of this Article.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-196) (from Ch. 108 1/2, par. 6-196)
Sec. 6-196.
Salary deduction reserve.
The following amounts shall be credited to this reserve: (1) Amounts deducted
from salaries of firemen for age
and service annuity and
widow's annuity; (2) amounts contributed by the city for any such
annuity purpose for any fireman who receives duty disability benefit, in
lieu of deductions from his salary; and (3) amounts transferred to this
reserve from the investment and interest reserve.
An individual account shall be kept for each fireman from whose
salary
any such amount is deducted. As such amounts are received, they
shall be allocated and credited to the respective accounts of the
firemen.
At least once each year, and always before any moneys shall be
transferred to any other reserve, the sums credited shall be improved by
interest.
When the annuity for a fireman or widow is fixed or granted, the
total amount in this reserve for the purpose of the annuity and required
therefor shall be charged thereto and credited to the annuity payment
reserve.
Amounts resulting from salary deductions,
and amounts resulting from
contributions of the city for any fireman who receives duty disability
benefit in lieu of deductions from his salary, that are to be refunded
in accordance with the provisions of this Article, except those referred
to in Section 6-197, shall be charged to this reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-197) (from Ch. 108 1/2, par. 6-197)
Sec. 6-197.
Annuity payment reserve.
The following amounts shall be credited to this reserve: (1) amounts
transferred from the city contribution reserve and from the salary deduction
reserve for the payment of annuities which have been fixed;
(2) amounts deducted from the salary
of a fireman after the amount of
his age and service annuity has been fixed; and (3) amounts transferred
to this reserve from the investment and interest reserve.
All age and service annuities and all widow's annuities shall be
charged to this reserve. Any amount to be refunded on account of such
annuities under Sections 6-143, 6-160 and 6-162 of this Article shall
be charged to this reserve.
If a fireman whose annuity is fixed or granted withdraws from service
and thereafter re-enters service before age 63, an amount determined in
accordance with this Article shall be charged to this reserve and
credited to him for age and service annuity in the city contribution and
salary deduction reserves, respectively. Such
amount shall be credited
in said reserves in the ratio in which the respective amounts
transferred from such reserves for age and service annuity for the
fireman bear to each other at the time his annuity was fixed. If the
wife of such fireman when he re-enters service was his wife when annuity
for his wife was fixed, an amount to be determined as provided in this
Article shall be transferred from this reserve and credited to the
fireman for widow's annuity in the city contribution reserve and the salary
deduction reserve, respectively. Such amount shall
be credited in
said reserves in the ratio in which the respective amounts transferred
bear to each other at the time the annuity for the wife of the fireman
was fixed.
If at the end of any year the balance in the Annuity Payment Reserve
is in excess of the liabilities chargeable thereto by 15% thereof, the
excess shall be transferred to the Investment and Interest Reserve,
Ordinary Disability Benefit Reserve, Expense Reserve, Prior Service
Annuity Reserve, or City Contribution Reserve in the order named, to
remove any deficiency then existing in such reserves.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-198) (from Ch. 108 1/2, par. 6-198)
Sec. 6-198.
Prior service annuity reserve.
The following amounts shall be credited to this reserve: (1) All
contributions of the city for prior service annuity and widow's prior
service annuity; (2) all other contributions of the city to provide prior
service annuities in accordance with this Article shall be credited to this
reserve; and (3) all assets of any firemen's pension fund which were
received by the board under "An Act to provide for a firemen's pension fund
and to create a board of trustees to administer said fund in cities having
a population exceeding two hundred thousand (200,000) inhabitants", filed
June 14, 1917, as amended, in such city on the effective date, as
provided in Section 10-9-53 of the Firemen's Annuity and Benefit Fund Act
of the Illinois Municipal Code.
All prior service annuities and widow's prior service annuities payable
under this Article and the "Firemen's Annuity and Benefit Fund Act of the
Illinois Municipal Code", and all annuities, benefits and pensions which
have been or shall be granted under said Act, filed June 14, 1917, as
amended, and the requirements for term annuities, shall be charged to this
reserve.
If at any time the balance in the investment and interest reserve is not
sufficient to permit a transfer from that reserve to the annuity payment
reserve of such amounts as are necessary according to the American
Experience Table of Mortality and the Combined Annuity Table and applicable
rates of interest, whichever table applies, to make the balance of the
annuity payment reserve equal to the liabilities chargeable thereto
(including among such liabilities, and in addition to all other liabilities
of such reserve, the present values of all annuities entered upon, and of
all annuities fixed and not entered upon to be charged to such reserve) any
amount necessary for such purpose shall be transferred from this reserve to
the investment and interest reserve.
(Source: Laws 1963, p. 2034.)
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(40 ILCS 5/6-199) (from Ch. 108 1/2, par. 6-199)
Sec. 6-199.
Child's annuity reserve.
Amounts contributed by the city for child's annuities shall be credited
to this reserve and all such annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-200) (from Ch. 108 1/2, par. 6-200)
Sec. 6-200.
Duty disability reserve.
Amounts contributed by the city for duty disability benefit, child's
disability benefit, and compensation annuity shall be credited to this
reserve, and all such benefits and annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-201) (from Ch. 108 1/2, par. 6-201)
Sec. 6-201.
Ordinary disability reserve.
Amounts contributed by the city, and all amounts deducted from the salaries
of firemen for ordinary disability benefits
shall be credited
to this reserve, and all such benefits shall be charged to it.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-202) (from Ch. 108 1/2, par. 6-202)
Sec. 6-202.
Gift reserve.
All money or property received by the board for
any purposes of the fund under any law other than this law, or as gifts,
grants, or bequests or in any manner other than as provided in this
Article, shall be placed in this reserve and used for the purposes of the
fund as the board decides; provided that, whenever any gift of moneys or
other property is made to this reserve to be used for the benefit of any
class of beneficiaries of this fund, such moneys or other property shall be
used only for such specified purpose. The balance in this reserve shall be
annually improved by interest at the rate realized by the Board on its
investments in the previous year.
(Source: P.A. 86-273.)
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(40 ILCS 5/6-203) (from Ch. 108 1/2, par. 6-203)
Sec. 6-203.
Investment and interest reserve.
All gains from investments and all interest earnings shall be
credited to the investment and interest reserve. All losses from
investments shall be charged to this reserve. From this reserve shall be
transferred all amounts due in interest upon balances existing in the
city contribution, salary deduction, prior service
annuity, ordinary
disability, and the gift reserves.
Such amounts as may be necessary, according to the American
Experience Table of Mortality and interest at 4% per annum, or the
Combined Annuity Mortality Table with 4% per annum as to the assets or
liabilities to which either table may be applicable in accordance with
this Article for the purpose of establishing a balance in the annuity
payment reserve equal to the liabilities chargeable thereto (including
among such liabilities and in addition to all other liabilities of such
reserve the present values of all annuities entered upon, or fixed and
not entered upon, to be charged to such reserve) shall be transferred to
the annuity payment reserve at least once each year.
That portion of the annual investment earnings on the fund's invested
assets as required by this Section shall be transferred from the
investment and interest reserve to the Supplementary Payment Reserve.
Any balance in the investment and interest reserve shall be either
charged or credited to the Prior Service Annuity Reserve depending on
whether a deficiency or surplus exists in the investment and interest
reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-204) (from Ch. 108 1/2, par. 6-204)
Sec. 6-204.
Death benefit reserve.
Amounts contributed by firemen and the city for ordinary death
benefits shall be credited to this reserve and all such benefits shall
be charged to this reserve. At the close of each fiscal year, interest
at the rate of 3% per year shall be credited on the mean balance in this
reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-205) (from Ch. 108 1/2, par. 6-205)
Sec. 6-205.
Automatic increase reserve.
Amounts contributed by firemen and the city to provide the 1 1/2%
retirement annuity increments as provided in Section 6-164, together
with interest allocations, shall be credited to this reserve, and all
payments for annuity increments shall be charged to this reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-206) (from Ch. 108 1/2, par. 6-206)
Sec. 6-206.
Deficiencies in reserves.
If at any time the balance in the expense reserve, the prior service
annuity reserve, the child's annuity reserve, the duty disability
reserve, or the ordinary disability reserve (either one of these) is not
sufficient to provide for expenses, annuities or benefits which are
chargeable to such reserves, the remainder required shall be transferred
from any or all of the following named reserves in the order stated:
city contribution reserve, prior service annuity reserve, salary deduction
reserve. When amounts in excess of that required to pay any
expenses, annuities or benefits chargeable to the reserves to which such
sums have been transferred shall be received into such reserves, such
excess amounts shall be transferred to the reserves from which any such
sums were taken until the full sum is returned to the reserves from
which a transfer was made. Interest at 4% per annum upon any transfer
and retransfer shall be credited to the investment and interest reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-207) (from Ch. 108 1/2, par. 6-207)
Sec. 6-207.
Treasurer of fund.
The city treasurer of the city is ex officio, the treasurer and
custodian of the fund and shall furnish the board a bond of such amount as
it designates, which bond shall indemnify the board against any loss which
may result from any action or failure to act on the part of such treasurer
and custodian or any of his agents. All fees and charges incidental to the
procuring and giving of the bond shall be paid by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-208) (from Ch. 108 1/2, par. 6-208)
Sec. 6-208.
Attorney.
The chief legal officer of the city is ex officio, the legal advisor of
and attorney for the board. The detailed legal work necessary to the proper
administration of the fund shall be performed by a licensed attorney
employed and paid by the board. All legal opinions of the attorney so
employed shall be submitted to the chief legal officer of the city before
action shall be taken thereon by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-209) (from Ch. 108 1/2, par. 6-209)
Sec. 6-209.
In computing the service rendered by a fireman prior to
the effective date, the following periods shall be counted, in addition
to all periods during which he performed the duties of his position, as
periods of service for annuity purposes only: All periods of (a)
vacation, (b) leave of absence with whole or part pay, (c) leave of
absence without pay which were necessary on account of disability, and
(d) leave of absence during which he was engaged in the military or
naval service of the United States of America. Service credit shall not
be allowed for any period during which a fireman was in receipt of
pension on account of disability from any pension fund superseded by
this fund.
In computing the service rendered by a fireman on and after the
effective date, the following periods shall be counted in addition to
all periods during which he performed the duties of his position, as
periods of service for annuity purposes only: All periods of (a)
vacation, (b) leave of absence with whole or part pay, (c) leave of
absence during which he was engaged in the military or naval service of
the United States of America, (d) disability for which he receives any
disability benefit, (e) disability for which he receives whole or part
pay, (f) leave of absence, or other authorized relief from active
duty, during which he served as president of The Firemen's Association of
Chicago, provided that for all leaves of absence or other authorized relief under this item (f), including those beginning before the effective date of this amendatory Act of the 97th General Assembly, the fireman continues to remain in sworn status, subject to the professional standards of the public employer or those terms established in statute, (g) periods of suspension from duty not to exceed a total of one
year during the total period of service of the fireman, and (h) a period of
time not to exceed 23 days in 1980 in accordance with an agreement with the
City on a settlement of strike; provided that the fireman elects to
make contributions to the Fund for the various annuity and benefit purposes
according to the provisions of this Article as though he were an active
fireman, based upon the salary attached to the civil service rank held by
him during such absence from duty, and if the fireman so elects, the city
shall make the prescribed concurrent contributions for such annuity and
benefit purposes as provided in this Article, all to the end that such
fireman shall be entitled to receive the same annuities and benefits for
which he would otherwise be eligible if he had continued as an active
fireman during the periods of absence from duty.
In computing service on and after the effective date for ordinary
disability benefit, all periods described in the preceding paragraph,
except any period for which a fireman receives ordinary disability
benefit, shall be counted as periods of service.
In computing service for any of the purposes of this Article, credit
shall be given for any periods prior to January 9, 1997,
during which an active fireman (or fire paramedic) who is a member of the
General Assembly is on leave of absence or is otherwise
authorized to be absent from duty to enable him to perform his legislative
duties, notwithstanding any reduction in salary for such periods and
notwithstanding that the contributions paid by the fireman were based on
such reduced salary rather than the full amount of salary attached to his
civil service rank.
In computing service for any of the purposes of this Article, no
credit shall be given for any period during which a fireman was not
rendering active service because of his discharge from the service,
unless proceedings to test the legality of the discharge are filed in a
court of competent jurisdiction within one year from the date of
discharge and a final judgment is entered therein declaring the
discharge illegal.
No overtime or extra service shall be included in computing service
of a fireman and not more than one year or a proper fractional part
thereof of service shall be allowed for service rendered during any
calendar year.
(Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/6-210) (from Ch. 108 1/2, par. 6-210) Sec. 6-210. Credit allowed for service in police department. Service rendered by a fireman, as a regularly appointed and sworn
policeman of the city shall be included, for the purposes of this
Article, as if such service were rendered as a fireman of the city.
Salary received by a fireman for any such service as a policeman shall
be considered, for the purposes of this Article, as salary received as a
fireman. Any annuity payable to a fireman under this Article shall be
reduced by any pension or annuity payable to him from any policemen's annuity and benefit fund in operation in the city, and any member entering service after January 1, 2011 shall not be given service credit in this fund for any period of time in which the member is in receipt of retirement benefits from any annuity and benefit fund in operation in the city. Any policeman who becomes a fireman, subsequent to July 1, 1935, may
contribute to the fund an amount equal to the sum which would have
accumulated to his credit from deductions from salary
for annuity
purposes if he had been contributing to the fund such sums as he
contributed for annuity purposes to the policemen's annuity and benefit
fund, and no credit for periods of service rendered by him in the police
department shall be allowed, under this Article, except as to such
periods for which he made contributions to the policemen's annuity and
benefit fund, provided he has made the payments required by this
Article.(Source: P.A. 96-1466, eff. 8-20-10.) |
(40 ILCS 5/6-210.1)
(from Ch. 108 1/2, par. 6-210.1)
Sec. 6-210.1. Credit for former employment with the fire department.
(a) Any fireman who (1) accumulated service credit in the Article 8 fund for
service as an employee of the Chicago Fire Department and (2) has terminated
that Article 8 service credit and received a refund of contributions therefor,
may establish service credit in this Fund for all or any part of that period of
service under the Article 8 fund by making written application to the Board by
January 1, 2010 and paying to this Fund (i) employee contributions based upon
the actual salary received and the rates in effect for members of this Fund at
the time of such service, plus (ii) the difference between the amount of employer contributions transferred to the Fund under Section 8-172.1 and the amounts equal to the employer's normal cost of contributions had such contributions been made at the rates in effect for members of this Fund at the time of such service, plus (iii) interest thereon calculated as follows:
(1) For applications received by the Board before | ||
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(2) For applications received by the Board on or | ||
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(3) For applications received by the Board on or | ||
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A fireman who (1) retired on or after January 16, 2004 and on or before the effective date of this amendatory Act of the 93rd General Assembly and (2) files an application to establish service credit under this subsection (a) before January 1, 2005, shall have his or her pension recalculated prospectively to include the service credit established under this subsection (a).
(b) A fireman who, at any time during the period 1970 through 1983, was
an employee of the Chicago Fire Department but did not participate in any
pension fund subject to this Code with respect to that employment may establish
service credit in this Fund for all or any part of that employment by making
written application to the Board by January 1, 2010
and paying to
this Fund (i)
employee contributions based upon the actual salary received and the rates in
effect for members of this Fund at the time of that employment, plus (ii)
the amounts equal to the employer's normal cost of contributions had such contributions been made at the rates in effect for members of this Fund at the time of that employment, plus (iii) interest thereon calculated at the actuarially assumed rate, compounded annually,
from the first date of the employment for which credit is being established
under this subsection (b) to the date of payment.
(c) (Blank).
(d) Employer contributions shall be transferred as provided in Sections
6-210.2 and 8-172.1. The employer shall not be responsible for making any
additional employer contributions for any credit established under this
Section.
(Source: P.A. 96-727, eff. 8-25-09.)
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(40 ILCS 5/6-210.2)
Sec. 6-210.2. City contributions for paramedics. Municipality credits
computed and credited under Article 8 for all firemen who (1) accumulated
service credit in the Article 8 fund for service as a paramedic, (2) have
terminated that Article 8 service credit and received a refund of
contributions, and (3) are participants in this Article 6 fund on the
effective date of this amendatory Act of the 96th General Assembly shall be
transferred by the Article 8 fund to this Fund, together with interest at the
actuarially assumed rate, compounded annually, to the date of the transfer, as
provided in Section 8-172.1 of this Code. These city contributions shall be
credited to the individual fireman only if he or she pays for prior service as
a paramedic in full to this Fund.
(Source: P.A. 96-727, eff. 8-25-09.) |
(40 ILCS 5/6-210.3)
Sec. 6-210.3. Payments and rollovers.
(a) The Board may adopt rules prescribing the manner of repaying refunds
and purchasing any other credits permitted under this Article. The rules may
prescribe the manner of calculating interest when payments or repayments are
made in installments.
(b) Rollover contributions from other retirement plans qualified under the
Internal Revenue Code of 1986 may be used to purchase any optional credit or
repay any refund permitted under this Article.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/6-210.4) Sec. 6-210.4. Creditable service for pre-employment military service. An active fireman may establish a maximum of 24 months of additional service credit attributed to service in the armed forces of the United States that was served prior to employment by the city as a firefighter by applying in writing to the fund and, after substantiation of any such requested service, making contributions to the fund equal to (i) the employee contributions that would have been required had the service been rendered as a member, plus (ii) an amount determined by the fund to be equal to the employer's normal cost of the benefits accrued for that military service, plus (iii) interest at the actuarially assumed rate provided in the Fund's most recent annual actuarial valuation, compounded annually from the first date of membership in the fund to the date of payment on items (i) and (ii). This Section applies only to firemen in service on or after its effective date.
(Source: P.A. 96-260, eff. 8-11-09.) |
(40 ILCS 5/6-211)
(from Ch. 108 1/2, par. 6-211)
Sec. 6-211. Permanent and temporary positions; exempt positions above
career service rank.
(a) Except as specified in subsection (b), no annuity, pension or
other benefit shall be paid to a fireman or widow, under this Article, based
upon any salary paid by virtue of a temporary appointment, and all
contributions, annuities and benefits shall be related to the salary which
attaches to the permanent position of the fireman.
Any fireman temporarily serving in a position or rank other than that to
which he has received permanent appointment shall be considered, while so
serving, as though he were in his permanent position or rank, except that no
increase in any pension, annuity or other benefit hereunder shall accrue to
him by virtue of any service performed by him subsequent to attaining the
compulsory retirement age provided by law or ordinance.
This Section does not apply to any person certified to the
fire department by the civil service commission of the city, during the period
of probationary service.
A fireman who holds a position at the will of the Fire Commissioner or other
appointing authority, whether or not such position is an "exempt" position,
shall be deemed to hold a temporary position.
(b) Beginning on the effective date of this amendatory Act of the 93rd
General Assembly, for service in an exempt position above career service rank,
employee contributions shall be based on the actual full salary attached to the
exempt rank position held by the fireman.
For service in an exempt position above career service rank, benefit
computations under this Article shall be based on the actual full salary
attached to the exempt rank position held by the fireman if and only if:
(1) employee contributions have been paid on the | ||
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(2) the fireman has held one or more exempt positions | ||
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(3) the fireman was born before 1955.
(c) For service prior to the effective date of this amendatory Act of the
93rd General Assembly in an exempt position above career service rank for
which contributions have been paid only on the salary attached to the fireman's
permanent career service rank, a fireman may make the contributions required
under subsection (b) by paying to the Fund before the later of the date of
retirement or 6 months after the effective date of this amendatory Act, but
in no event later than July 1, 2005, an amount equal to the difference between
the employee contributions actually made for that service and the employee
contributions that would have been made based on the actual full salary
attached to the exempt rank position held by the fireman on or after January 1,
1994, plus interest thereon at the rate of 4% per year, compounded annually,
from the date of the service to the date of payment (or to the date of
retirement if retirement is before the effective date of this amendatory Act).
In the case of a fireman who retired in an exempt rank position after January
1, 1994 and before January 1, 1999 and in the case of a fireman who retired due
to attaining compulsory retirement age before December 1, 2003, the payment
under this subsection (c) shall be for a period of at least 5 years.
If a fireman dies while eligible to make the contributions required under
subsection (b) but before the contributions are paid, the fireman's widow may
elect to make the contributions.
(d) Subsection (e) of Section 6-111 and the changes made to this Section
by this amendatory Act of the 93rd General Assembly apply to a fireman who
retires (or becomes disabled) on or after January 1, 1994. In the case of a
benefit payable on the effective date of this amendatory Act, the resulting
increase in benefit shall begin to accrue with the first benefit payment
period commencing after the required contributions are paid.
(e) If a fireman or his survivors do not qualify to have benefits computed
on the full amount of salary received for service in an exempt position as
provided in subsection (b), benefits shall be computed on the basis of the
salary attached to the permanent career service rank, and a refund of any
employee contributions paid on the difference between the actual salary and
the salary attached to the permanent career service rank shall be payable to
the fireman upon termination of service, or to the fireman's widow or estate
upon the fireman's death.
(f) The tax levy computed under Section 6-165 shall be based on employee
contributions, including the payments of employee contributions under
subsections (a), (b), and (c) of this Section 6-211.
(g) The city shall pay to the Fund on an annual basis, in addition to
the usual city contributions, an amount at least equal to the sum of (1) the
increase in normal cost resulting from subsection (e) of Section 6-111 and
the changes made to this Section by this amendatory Act of the 93rd General
Assembly, plus (2) amortization (over a period of 30 years from the effective
date of this amendatory Act) of the initial unfunded liability resulting from
subsection (e) of Section 6-111 and the changes made to this Section by this
amendatory Act of the 93rd General Assembly. The payment required under this
subsection shall be no less than $400,000 per year. Payment shall begin with
the first calendar year commencing after the effective date of this amendatory
Act and shall be in addition to the tax levy otherwise calculated under Section
6-165. The city may increase that tax levy by the amount of the payment
required under this subsection, or it may utilize any funds appropriated for
this purpose.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/6-212) (from Ch. 108 1/2, par. 6-212)
Sec. 6-212.
Firemen in territory annexed to city.
Whenever any territory is annexed to a city, any person then regularly
employed as a paid fireman in the annexed territory, who is employed as a
fireman by the city on the date of annexation, shall automatically come
under the provisions of this Article. Service as a fireman rendered in such
territory shall be considered, for the purposes of this Article, as service
rendered in such city.
Any such fireman shall be treated, as of the date when such annexation
shall come into effect, in the manner specified in this Article concerning
present employees or future entrants of the city on the date upon which
this Article shall come into force and effect in such city.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-213) (from Ch. 108 1/2, par. 6-213)
Sec. 6-213.
Annuities, etc., exempt.
All pensions, annuities, refunds and
disability benefits granted under this Article and every portion thereof, are
exempt from attachment or garnishment process and shall not be seized, taken,
subjected to, detained, or levied upon by virtue of any judgment or any process
or proceeding whatsoever entered or issued by or out of any court in this
State, for the payment and satisfaction in whole or in part of any debt,
damage, claim, demand, or judgment against any pensioner, annuitant, applicant
for a refund or other beneficiary hereunder.
No pensioner, annuitant, applicant for a refund, disability beneficiary
or other beneficiary has a right to transfer or assign his or her pension,
annuity, refund or disability benefit or any part thereof by mortgage or
otherwise, except that an annuitant or disability beneficiary may direct in
writing that a monthly payment be made to such association or organization
with which he or his widow may be affiliated by virtue of his fire service,
or for hospitalization insurance purposes.
An annuitant may execute under oath a written waiver of his right to
receive all or any part of his annuity. The waiver shall take effect upon
being filed with the board and shall be irrevocable. The annuity shall
thereupon be permanently reduced by the amount waived.
The board, in its discretion, however, may pay to the wife of any above
stated person, such proportion of her husband's annuity, pension, refund or
disability benefit as a court may order, or such an amount as the board may
consider necessary for her support or for the support of herself and the
children, in the event of his failure to provide such support. The board may
also retain out of any future annuity, pension, refund or disability benefit
payment such amount or amounts, as it may in its discretion set for the purpose
of repayment into this fund of any moneys paid to such person through
misrepresentation, fraud or error. Any action herein provided to be taken by
the board shall, when taken, release the board and the fund from any liability
for any moneys retained or paid out as herein provided.
Whenever any annuity, pension, refund or disability benefit is payable
to a minor or to a person adjudged to be under legal disability, the board
in its discretion when to the apparent interest of such minor or person under
legal disability may waive guardianship proceedings and pay such money to the
person providing for or caring for such minor and to the wife, parent or
blood relative providing or caring for such person under legal disability.
Whenever a pensioner, annuitant, applicant for refund or disability
beneficiary disappears or his whereabouts are unknown and it cannot be
ascertained whether or not he is living, there shall be paid to his wife
under this section the amount which would be payable to her in the event
her fireman husband had died on the date of his disappearance. In the event
of his subsequent return, or upon satisfactory proof of his being alive,
the amount theretofore paid to his wife shall be charged against any moneys
payable to him under any of the provisions of this Article as though such
payment to his wife had been an allowance to her out of the moneys payable
to him as such pensioner, annuitant, applicant for refund or disability
beneficiary.
(Source: P.A. 87-1265.)
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(40 ILCS 5/6-214) (from Ch. 108 1/2, par. 6-214)
Sec. 6-214.
No compensation.
A member of a board of trustees of an annuity and benefit fund provided
for in this Article shall not receive any moneys from a pension fund as
salary for service performed as a member or employee of such board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-215) (from Ch. 108 1/2, par. 6-215)
Sec. 6-215.
No commissions on investments.
No member of the board of trustees and no person officially connected
with the board, either as an employee, or as legal advisor thereof, or as a
custodian of the fund, shall receive any commissions on account of any
investment made by the board, or act as the agent of any other person
concerning any such investment.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-216) (from Ch. 108 1/2, par. 6-216)
Sec. 6-216.
Facilities for board meetings.
Suitable rooms for office and meetings of the board of trustees of an
annuity and benefit fund provided for in this Article shall be provided by
the mayor of the city.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-217) (from Ch. 108 1/2, par. 6-217)
Sec. 6-217. Age stated in employment application to be conclusive.
For any fireman, as defined in this Article, who has filed an
application for appointment as a member of the fire department of the city,
the age therein stated shall be conclusive evidence of his age for the
purposes of providing all benefits under this Article. However, for any fireman, as defined in this Article, entering service with the City of Chicago Fire Department after January 1, 2020, the actual birthdate as provided in the fireman's birth certificate shall be conclusive evidence of the fireman's age for the purposes of this Article.
(Source: P.A. 101-365, eff. 8-9-19.)
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(40 ILCS 5/6-218) (from Ch. 108 1/2, par. 6-218)
Sec. 6-218.
Duties of city officers.
It shall be the duty of the proper officers of the city to:
(a) Deduct the sums required by this Article from the
salaries of
firemen, as defined in this Article, and pay such sums to the board of
the fund in such manner as the board specifies;
(b) On the first day of each month, notify the board of the
employment of any new firemen, and of all discharges, resignations, and
suspensions from the service, deaths, and changes in salary which have
occurred during the preceding month, and the dates when any such events
occurred;
(c) Transmit to the board, in such form and at such time as the
board specifies, all information requested by the board concerning the
service, age, salary, residence, marital status, wife or widow,
children, parents, physical condition, mental condition, and death of
any firemen employed by the city; in particular, information concerning
service rendered by any such firemen prior to the effective date set
forth in this Article.
(d) Convey to the board all information required by the board
concerning each newly appointed or reappointed fireman immediately after
such appointment or reappointment;
(e) Certify to the board, as of some day in each year to be fixed by
the board, the name of each fireman to whom this Article applies;
(f) Keep such records concerning firemen as the board may reasonably
require and may specify.
All such duties shall be performed by the city officers without cost
to the fund.
(Source: P.A. 81-1536.)
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(40 ILCS 5/6-219) (from Ch. 108 1/2, par. 6-219)
Sec. 6-219.
Duty to comply with article.
It shall be the duty of all officers, officials, and employees of such
city to perform any and all acts required to carry out the intent and
purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-220) (from Ch. 108 1/2, par. 6-220)
Sec. 6-220. Examination
and report by Director of Insurance.
The Director of Insurance biennially shall make a thorough examination
of the fund provided for in this Article. He or she shall report the results
thereof with such recommendations as he or she deems proper to the Governor for
transmittal to the General Assembly and send a copy to the board and to the
city council of the city. The city council shall file such report and
recommendations in the official record of its proceedings.
The requirement for reporting to the General Assembly shall be satisfied
by filing copies of the report as required
by Section 3.1 of the General Assembly Organization Act, and filing such additional copies
with the State Government Report Distribution Center for the General Assembly
as is required under paragraph (t) of Section 7 of the State Library Act.
(Source: P.A. 100-1148, eff. 12-10-18.)
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(40 ILCS 5/6-221) (from Ch. 108 1/2, par. 6-221)
Sec. 6-221. Felony conviction. None of the benefits provided in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as a fireman.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the fireman from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor
to preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants after July 11, 1955 shall be deemed to have
consented to the provisions of this section as a condition of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/6-222)
(from Ch. 108 1/2, par. 6-222)
Sec. 6-222. Administrative review.
(a) The provisions of the Administrative Review Law, and all
amendments and modifications thereof and the rules adopted
pursuant thereto shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the retirement board hereunder.
The term "administrative decision" is as defined in Section 3-101 of the
Code of Civil Procedure.
(b) If any fireman whose application for either a duty disability benefit
under Section 6-151 or for an occupational disease disability benefit under
Section 6-151.1 has been denied by the Retirement Board brings an action for
administrative review challenging the denial of disability benefits and the
fireman prevails in the action in administrative review, then the prevailing
fireman shall be entitled to recover from the Fund court costs and litigation
expenses, including reasonable attorney's fees, as part of the costs of the
action.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/6-223) (from Ch. 108 1/2, par. 6-223)
Sec. 6-223.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/6-224) (from Ch. 108 1/2, par. 6-224)
Sec. 6-224.
(a) Any active member of the General Assembly Retirement System
may apply for transfer of his credits and creditable service accumulated
under this Fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding any additional
or optional credits, which credits shall be refunded to the applicant; and
(2) municipality credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 81-1128.)
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(40 ILCS 5/6-225) (from Ch. 108 1/2, par. 6-225)
Sec. 6-225.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer and
employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/6-226) (from Ch. 108 1/2, par. 6-226)
Sec. 6-226.
Transfer of creditable service to Article 8, 9 or 13 fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the people who is
a participant in the pension fund established under Article 9 of this Code,
and any elected sanitary district commissioner who is a participant in a
pension fund established under Article 13 of this Code, may apply for
transfer of his credits and creditable service accumulated in this Fund to
such Article 8, 9 or 13 fund. Such creditable service shall be
transferred forthwith. Payment by this Fund to the Article 8, 9 or 13
fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any
credits transferred under this Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a separation benefit, by payment to the Fund of
the amount of the separation benefit plus interest thereon to the
date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/6-227) Sec. 6-227. Transfer of creditable service from Article 4. Until 6 months after the effective date of this amendatory Act of the 100th General Assembly, any active member of the Firemen's Annuity and Benefit Fund of Chicago may transfer to the Fund up to a total of 10 years of creditable service accumulated under Article 4 of this Code upon payment to the Fund within 5 years after the date of application of an amount equal to the difference between the amount of employee and employer contributions transferred to the Fund under Section 4-108.6 and the amounts determined by the Fund in accordance with this Section, plus interest on that difference at the actuarially assumed rate, compounded annually, from the date of service to the date of payment. The Fund must determine the fireman's payment required to establish creditable service under this Section by taking into account the appropriate actuarial assumptions, including without limitation the fireman's service, age, and salary history; the level of funding of the Fund; and any other factors that the Fund determines to be relevant. For this purpose, the fireman's required payment should result in no significant increase to the Fund's unfunded actuarial accrued liability determined as of the most recent actuarial valuation, based on the same assumptions and methods used to develop and report the Fund's actuarial accrued liability and actuarial value of assets under Statement No. 25 of Governmental Accounting Standards Board or any subsequent applicable Statement.
(Source: P.A. 100-544, eff. 11-8-17.) |
(40 ILCS 5/6-227.1) Sec. 6-227.1. Transfer of creditable service to Article 4. (a) Until 6 months after the effective date of this amendatory Act of the 101st General Assembly, any active participant in an Article 4 pension fund may apply for transfer of creditable service accumulated in the Firemen's Annuity and Benefit Fund of Chicago to any Article 4 pension fund. Such creditable service shall be transferred only upon payment by the Firemen's Annuity and Benefit Fund of Chicago to the Article 4 fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in the Firemen's Annuity and Benefit Fund of Chicago as to any credits transferred under this Section shall terminate on the date of transfer. (b) An active participant in an Article 4 pension fund applying for a transfer of creditable service under subsection (a) may reinstate credits and creditable service terminated upon receipt of a refund by payment to the Article 4 pension fund of the amount of the refund with interest thereon at the actuarially assumed rate, compounded annually, from the date of the refund to the date of payment.
(Source: P.A. 101-474, eff. 8-23-19.) |
(40 ILCS 5/6-228)
Sec. 6-228. Action by Fund against third party; subrogation. In those cases where the injury or death for which a disability or death benefit is payable under this Article was caused under circumstances creating a legal liability on the part of some person or entity (hereinafter "third party") to pay damages to the fireman, legal proceedings may be taken against such third party to recover damages notwithstanding the Fund's payment of or liability to pay disability or death benefits under this Article. In such case, however, if the action against such third party is brought by the injured fireman or his personal representative and judgment is obtained and paid, or settlement is made with such third party, either with or without suit, from the amount received by such fireman or personal representative, then there shall be paid to the Fund the amount of money representing the death or disability benefits paid or to be paid to the disabled fireman pursuant to the provisions of this Article. In all circumstances where the action against a third party is brought by the disabled fireman or his personal representative, the Fund shall have a claim or lien upon any recovery, by judgment or settlement, out of which the disabled fireman or his personal representative might be compensated from such third party. The Fund may satisfy or enforce any such claim or lien only from that portion of a recovery that has been, or can be, allocated or attributed to past and future lost salary, which recovery is by judgment or settlement. The Fund's claim or lien shall not be satisfied or enforced from that portion of a recovery that has been, or can be, allocated or attributed to medical care and treatment, pain and suffering, loss of consortium, and attorney's fees and costs. Where action is brought by the disabled fireman or his personal representative they shall forthwith notify the Fund, by personal service or registered mail, of such fact and of the name of the court where such suit is brought, filing proof of such notice in such action. The Fund may, at any time thereafter, intervene in such action upon its own motion. Therefore, no release or settlement of claim for damages by reason of injury to the disabled fireman, and no satisfaction of judgment in such proceedings, shall be valid without the written consent of the Board of Trustees authorized by this Code to administer the Fund created under this Article, except that such consent shall be provided expeditiously following a settlement or judgment. In the event the disabled fireman or his personal representative has not instituted an action against a third party at a time when only 3 months remain before such action would thereafter be barred by law, the Fund may, in its own name or in the name of the personal representative, commence a proceeding against such third party seeking the recovery of all damages on account of injuries caused to the fireman. From any amount so recovered, the Fund shall pay to the personal representative of such disabled fireman all sums collected from such third party by judgment or otherwise in excess of the amount of disability or death benefits paid or to be paid under this Article to the disabled fireman or his personal representative, and such costs, attorney's fees, and reasonable expenses as may be incurred by the Fund in making the collection or in enforcing such liability. The Fund's recovery, shall be satisfied only from that portion of a recovery that has been, or can be, allocated or attributed to past and future lost salary, which recovery is by judgment or settlement. The Fund's recovery shall not be satisfied from that portion of the recovery that has been or can be allocated or attributed to medical care and treatment, pain and suffering, loss of consortium, and attorney's fees and costs. Additionally, with respect to any right of subrogation asserted by the Fund under this Section, the Fund, in the exercise of discretion, may determine what amount from past or future salary shall be appropriate under the circumstances to collect from the recovery obtained on behalf of the disabled fireman.
(Source: P.A. 96-727, eff. 8-25-09.) |
(40 ILCS 5/6-229) Sec. 6-229. Provisions applicable to new hires; Tier 2. (a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a fireman under this Article on or after January 1, 2011, and to certain qualified survivors of such a fireman. Such persons, and the benefits and restrictions that apply specifically to them under this Article, may be referred to as "Tier 2". (b) A fireman who has withdrawn from service, has attained age 50 or more, and has 10 or more years of service in that capacity shall be entitled, upon proper application being received by the Fund, to receive a Tier 2 monthly retirement annuity for his service as a fireman. The Tier 2 monthly retirement annuity shall be computed by multiplying 2.5% for each year of such service by his or her final average salary, subject to an annuity reduction factor of one-half of 1% for each month that the fireman's age at retirement is under age 55. The Tier 2 monthly retirement annuity is in lieu of any age and service annuity or other form of retirement annuity under this Article. The maximum retirement annuity under this subsection (b) shall be 75%
of final average salary. For the purposes of this subsection (b), "final average salary" means the greater of (1) the average monthly salary obtained by dividing the total salary of the fireman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period or (2) the average monthly salary obtained by dividing the total salary of the fireman during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual salary
based on the plan year of a member or participant to whom this Section applies shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. (b-5) For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (c) Notwithstanding any other provision of this Article, for a person who first becomes a fireman under this Article on or after January 1, 2011, eligibility for and the amount of the annuity to which the qualified surviving spouse, children, and parents of the fireman are entitled under this subsection (c) shall be determined as follows: (1) The surviving spouse of a deceased fireman to | ||
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As used in this subsection (c), "earned pension" | ||
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(A) If the deceased fireman was receiving an | ||
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(B) If the deceased fireman was not receiving an | ||
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(C) If the deceased fireman was an active fireman | ||
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(D) Notwithstanding subdivisions (A), (B), and | ||
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(E) Notwithstanding any other provision of this | ||
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(F) Notwithstanding the other provisions of this | ||
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(2) Surviving children of a deceased fireman subject | ||
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(3) Surviving parents of a deceased fireman subject | ||
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(d) The General Assembly finds and declares that the provisions of this Section, as enacted by Public Act 96-1495, require clarification relating to necessary eligibility standards and the manner of determining and paying the intended Tier 2 benefits and contributions in order to enable the Fund to unambiguously implement and administer benefits for Tier 2 members. The changes to this Section and the conforming changes to Sections 6-150, 6-158, 6-164 (except for the changes to subsection (a) of that Section), 6-166, and 6-167 made by this amendatory Act of the 99th
General Assembly are enacted to clarify the provisions of this Section as enacted by Public Act 96-1495, and are hereby declared to represent and be consistent with the original and continuing intent of this Section and Public Act 96-1495. (e) The changes to Sections 6-150, 6-158, 6-164 (except for the changes to subsection (a) of that Section), 6-166, and 6-167 made by this amendatory Act of the 99th General Assembly are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-1495) and, for the purposes of Section 1-103.1 of this Code, they apply without regard to whether the relevant fireman
was in service on or after the effective date of this amendatory Act of the 99th General Assembly. (Source: P.A. 103-579, eff. 12-8-23.) |
(40 ILCS 5/6-230) Sec. 6-230. Participation by an alderperson or member of city council. (a) A person shall be a member under this Article if he or she (1) is or was employed and receiving a salary as a fireman under item (a) of Section 6-106, (2) has at least 5 years of service under this Article, (3) is employed in a position covered under Section 8-243, (4) made an election under Article 8 to not receive service credit or be a participant under that Article, and (5) made an election to participate under this Article. (b) For the purposes of determining employee and employer contributions under this Article, the employee and employer shall be responsible for any and all contributions otherwise required if the person was employed and receiving salary as a fireman under item (a) of Section 6-106.
(Source: P.A. 102-15, eff. 6-17-21.) |
(40 ILCS 5/Art. 7 heading) ARTICLE 7.
ILLINOIS MUNICIPAL RETIREMENT FUND
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(40 ILCS 5/7-101) (from Ch. 108 1/2, par. 7-101)
Sec. 7-101.
Creation of fund.
A retirement and benefit fund to be known as the "Illinois Municipal
Retirement Fund" is hereby created.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-102) (from Ch. 108 1/2, par. 7-102)
Sec. 7-102.
Purpose.
The purpose of this fund is to provide a sound and
efficient system for
the payment of annuities and other benefits, in addition to the annuities
and benefits available, as herein provided, under the Federal Social
Security Act, to certain officers and employees, and to their
beneficiaries, of municipalities, as herein defined.
It is the mission of this Fund to efficiently and impartially develop,
implement and administer programs that provide income protection to members
and their beneficiaries on behalf of participating employers in a prudent
manner.
(Source: P.A. 87-740.)
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(40 ILCS 5/7-103) (from Ch. 108 1/2, par. 7-103)
Sec. 7-103.
Terms defined.
The terms used in this Article have the meanings ascribed to them in
Sections 7-104 to 7-131, inclusive, except when the context otherwise
requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-104) (from Ch. 108 1/2, par. 7-104)
Sec. 7-104.
Fund.
"Fund": The Illinois Municipal Retirement Fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105)
Sec. 7-105. "Municipality": A city, village, incorporated town, county,
township; a Financial Oversight Panel established pursuant to Article 1H of the School Code; and any school, park, sanitary, road, forest preserve, water, fire
protection, public health, river conservancy, mosquito abatement,
tuberculosis sanitarium, public community college district, or other local
district with general continuous power to levy taxes on the property within
such district; now existing or hereafter created within the State; and, for
the purposes of providing annuities and benefits to its employees, the fund
itself.
(Source: P.A. 103-464, eff. 8-4-23.)
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(40 ILCS 5/7-106) (from Ch. 108 1/2, par. 7-106)
Sec. 7-106.
Participating municipality.
"Participating municipality": Any municipality included within this fund
in accordance with Section 7-132.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-107) (from Ch. 108 1/2, par. 7-107)
Sec. 7-107.
Instrumentality.
"Instrumentality": Any body, corporate or politic, or any legal entity,
other than a municipality, having power to appropriate for, or to authorize
expenditures for, payment of earnings to employees from any fund or funds
derived in whole or in part from taxes, assessments, fees or other revenues
of a municipality; and, in counties, the several county fee offices.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-108) (from Ch. 108 1/2, par. 7-108)
Sec. 7-108. "Participating Instrumentality". (a) A political entity created
under the laws of the State of Illinois, without general continuous power
to levy taxes, and which is legally separate and distinct from the State of
Illinois and any municipality and whose employees by reason of their
relation to such political entity are not employees of the State of
Illinois or a municipality; for the purposes of providing annuities and benefits to its employees, the Police Officers' Pension Investment Fund, as created under Article 22B of this Code; and for the purposes of providing annuities and benefits to its employees, the Firefighters' Pension Investment Fund, as created under Article 22C of this Code.
(b) A not-for-profit organization, which is incorporated under the laws
of the State of Illinois, or an association, membership in which is limited
to municipalities or limited to townships and authorized by statute.
(Source: P.A. 102-637, eff. 8-27-21.)
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(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
Sec. 7-109. Employee.
(1) "Employee" means any person who:
(a) 1. Receives earnings as payment for the | ||
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2. Under the usual common law rules applicable in | ||
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(b) Serves as a township treasurer appointed under | ||
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(c) Holds an elective office in a municipality, | ||
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(2) "Employee" does not include persons who:
(a) Are eligible for inclusion under any of the | ||
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1. "An Act in relation to an Illinois State | ||
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2. Articles 15 and 16 of this Code.
However, such persons shall be included as employees | ||
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However, any member of the armed forces who is | ||
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(b) Are designated by the governing body of a | ||
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(b-5) Were not participating employees under this | ||
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(c) Are contributors to or eligible to contribute to | ||
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(d) Become an employee of any of the following | ||
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(e) Are members of the Board of Trustees of the | ||
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(f) Are members of the Board of Trustees of the | ||
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(3) All persons, including, without limitation, public defenders and
probation officers, who receive earnings from general or special funds
of a county for performance of personal services or official duties
within the territorial limits of the county, are employees of the county
(unless excluded by subsection (2) of this Section) notwithstanding that
they may be appointed by and are subject to the direction of a person or
persons other than a county board or a county officer. It is hereby
established that an employer-employee relationship under the usual
common law rules exists between such employees and the county paying
their salaries by reason of the fact that the county boards fix their
rates of compensation, appropriate funds for payment of their earnings
and otherwise exercise control over them. This finding and this
amendatory Act shall apply to all such employees from the date of
appointment whether such date is prior to or after the effective date of
this amendatory Act and is intended to clarify existing law pertaining
to their status as participating employees in the Fund.
(Source: P.A. 102-15, eff. 6-17-21; 102-637, eff. 8-27-21; 102-813, eff. 5-13-22.)
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(40 ILCS 5/7-109.1) (from Ch. 108 1/2, par. 7-109.1)
Sec. 7-109.1.
"Seasonal Employee":
An employee whose position normally
requires regular service during a period of at least 6 consecutive months,
but less than 12 months, in a 12 month period.
(Source: Laws 1967, p. 2091.)
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(40 ILCS 5/7-109.2) (from Ch. 108 1/2, par. 7-109.2)
Sec. 7-109.2.
"Intermittent Employee":
An employee, whose position normally
requires service intermittently, rather than regularly, and a person whose
position normally requires regular service for a period of less than 6
consecutive months in a 12 month period.
(Source: Laws 1967, p. 2091.)
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(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
(a) "Sheriff's law enforcement employee" or "SLEP" means:
(1) A county sheriff and all deputies, other than | ||
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(2) A person who has elected to participate in this | ||
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(3) A law enforcement officer employed on a full time | ||
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(4) A person not eligible to participate in a fund | ||
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(5) A person first hired on or after January 1, 2011 | ||
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(b) An employee who is a sheriff's law enforcement employee and is granted
military leave or authorized leave of absence shall receive service credit in
that capacity. Sheriff's law enforcement employees shall not be entitled to
out-of-State service credit under Section 7-139.
(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)
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(40 ILCS 5/7-109.4) Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular employee" means a participant or an annuitant under this Article who first became a participant or member before January 1, 2011 under any retirement system or pension fund under this Code, other than a retirement system or pension fund established under Articles 2, 3, 4, 5, 6, or 18 or in any self-managed plan established under this Code, or the retirement plan established under Section 22-101. "Tier 1 regular employee" includes a person who received a separation benefit but is otherwise qualified under this Section and subsequently becomes a participating employee on or after January 1, 2011. "Tier 1 regular employee" includes a former participating employee who received a separation benefit under Section 7-167 for service earned prior to January 1, 2011 who returns to a qualifying position after January 1, 2011. "Tier 1 regular employee" includes a participating employee who has omitted service as defined in Section 7-111.5 that includes any period prior to January 1, 2011 only if he or she establishes sufficient service credit under item (12) of subsection (a) of Section 7-139 to include service prior to January 1, 2011. Notwithstanding anything contrary in this Section, "Tier 1 regular employee" does not include a participant or annuitant who is eligible to have his or her annuity calculated under Section 7-142.1 or a person who elected to establish alternative credits under Section 7-145.1.
(Source: P.A. 102-210, eff. 1-1-22.) |
(40 ILCS 5/7-109.5) Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular employee" means a person who first becomes a participant under this Article on or after January 1, 2011 and is not a Tier 1 regular employee. Notwithstanding anything contrary in this Section, "Tier 2 regular employee" does not include a participant or annuitant who is eligible to have his or her annuity calculated under Section 7-142.1 or a person who elected to establish alternative credits by electing in writing after January 1, 2011, but before August 8, 2011, under Section 7-145.1 of this Code.
(Source: P.A. 102-210, eff. 1-1-22.) |
(40 ILCS 5/7-110) (from Ch. 108 1/2, par. 7-110)
Sec. 7-110.
Participating employee.
"Participating employee": Any person included within this fund, and
eligible to benefits therefrom, as provided in Section 7-137.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
Sec. 7-111.
"Prior Service":
The period beginning on the day a
participating employee first became an employee of a municipality, or of an
instrumentality thereof, or of a municipality or instrumentality that was
superseded by the employing participating municipality, or of a participating
instrumentality, and ending on the effective date of participation of the
municipality or participating instrumentality, or upon the latest termination
of service prior to such effective date, but excluding (a) the intervening
periods during which the employee was separated from the service of the
municipality and all instrumentalities thereof, or of the participating
instrumentality, (b) periods during which the employee was employed
in a position normally requiring less than 600 hours of service during a year,
and (c) periods during which the employee served in a position normally
requiring
performance of duty less than 1000 hours per year, if the
participating municipality or participating instrumentality adopted, prior to
its effective date of participation, a resolution or ordinance
excluding persons in such positions from participation.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/7-111.5) Sec. 7-111.5. "Omitted service": The period of service with a participating municipality or participating instrumentality during which an employee was required to participate in the Fund, but was not actually enrolled.
(Source: P.A. 98-932, eff. 8-15-14.) |
(40 ILCS 5/7-112) (from Ch. 108 1/2, par. 7-112)
Sec. 7-112.
"Current Service":
The period beginning on the day an employee
first becomes a participating employee and ending on the day of the latest
separation from service of all participating municipalities, and
instrumentalities thereof, and participating instrumentalities, but
excluding all intervening periods during which the employee was separated
from the service of all participating municipalities and instrumentalities
thereof, and participating instrumentalities.
(Source: Laws 1967, p. 2091.)
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(40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
Sec. 7-113.
"Creditable Service":
All periods of prior service or
current service for which credits are granted under the provisions of Section
7-139.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
Sec. 7-114. Earnings. "Earnings":
(a) An amount to be determined by the board, equal to the sum of:
1. The total amount of money paid to an employee for | ||
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2. The money value, as determined by rules prescribed | ||
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(b) For purposes of determining benefits payable under this fund
payments to a person who is engaged in an independently established
trade, occupation, profession or business and who is paid for his
service on a basis other than a monthly or other regular salary, are not
earnings.
(c) If a disabled participating employee is eligible to receive Workers'
Compensation for an accidental injury and the participating municipality or
instrumentality which employed the participating employee when injured
continues to pay the participating employee regular salary or other
compensation or pays the employee an amount in excess of the Workers'
Compensation amount, then earnings shall be deemed to be the total payments,
including an amount equal to the Workers' Compensation payments. These
payments shall be subject to employee contributions and allocated as if paid to
the participating employee when the regular payroll amounts would have been
paid if the participating employee had continued working, and creditable
service shall be awarded for this period.
(d) If an elected official who is a participating employee becomes disabled
but does not resign and is not removed from office, then earnings shall include
all salary payments made for the remainder of that term of office and the
official shall be awarded creditable service for the term of office.
(e) If a participating employee is paid pursuant to "An Act to provide for
the continuation of compensation for law enforcement officers, correctional
officers and firemen who suffer disabling injury in the line of duty", approved
September 6, 1973, as amended, the payments shall be deemed earnings, and the
participating employee shall be awarded creditable service for this period.
(f) Additional compensation received by a person while serving as a
supervisor of assessments, assessor, deputy assessor or member of a board of
review from the State of Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax Code shall not be
earnings for purposes of this Article and shall not be included in the
contribution formula or calculation of benefits for such person pursuant to
this Article.
(g) Notwithstanding any other provision of this Article, calendar year earnings for Tier 2 regular employees to whom this Section applies shall not exceed the amount determined by the Public Pension Division of the Department of Insurance as required in this subsection; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the Fund by November 1 of each year. (Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/7-115) (from Ch. 108 1/2, par. 7-115)
Sec. 7-115.
Rate of earnings.
"Rate of earnings": The actual rate upon which the earnings of an
employee are calculated at any time, as certified in a written notice, on
file with the board, by the governing body of the municipality, or
instrumentality, or participating instrumentality. For periods during which
the employee did not participate but is entitled to creditable service,
the monthly earnings shall be considered to be the earnings in the position
for each calendar year divided by the number of months of creditable service
in that year.
(Source: P.A. 82-596.)
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(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly earnings obtained
by dividing the total earnings received by the employee during the period of
either (1) for Tier 1 regular employees, the 48 consecutive months of service within the last 120 months of
service in which his total earnings were the highest, (2) for Tier 2 regular employees, the 96 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest, or (3) the
employee's total period of service, by the number of months
of service in such period.
(b) For death benefits, the higher of the rate determined under
paragraph (a) of this Section or total earnings received in the last 12 months
of service divided by twelve. If the deceased employee has less than 12 months
of service, the monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a participating
employee in the last 12 calendar months of service prior to the date he
becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the earnings rate for
all periods of prior service shall be considered equal to the average
earnings rate for the last 3 calendar years of prior service for
which creditable service is received under Section 7-139 or, if there is less than 3 years of
creditable prior service, the average for the total prior service period
for which creditable service is received under Section 7-139; (2) for out
of state service and authorized
leave, the earnings rate shall be the rate upon which service credits are
granted; (3) periods of military leave shall not be considered; (4) the
earnings rate for all periods of disability shall be considered equal to
the rate of earnings upon which the employee's disability benefits are
computed for such periods; (5) the earnings to be considered for each of
the final three months of the final earnings period for persons who first became participants before January 1, 2012 and the earnings to be considered for each of the final 24 months for participants who first become participants on or after January 1, 2012 shall not exceed 125%
of the highest earnings of any other month in the final earnings period;
and (6) the annual amount of final rate of earnings shall be the monthly
amount multiplied by the number of months of service normally required by
the position in a year.
(Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/7-117) (from Ch. 108 1/2, par. 7-117)
Sec. 7-117.
Annuitant.
"Annuitant": A person receiving an annuity from this fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
Sec. 7-118. "Beneficiary".
(a) "Beneficiary" means: (1) Any person or persons, trust, or charity | ||
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(2) Any person or persons, trust, or charity | ||
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(3) The estate of a surviving spouse annuitant where | ||
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(b) Designations of
beneficiaries shall be in writing on forms prescribed by the board and
effective upon filing in the fund offices. The designation forms shall
provide for contingent beneficiaries. Divorce, dissolution or annulment
of marriage revokes the designation of an employee's former spouse as a
beneficiary on a designation executed before entry of judgment for divorce,
dissolution or annulment of marriage.
(Source: P.A. 96-1140, eff. 7-21-10.)
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(40 ILCS 5/7-119) (from Ch. 108 1/2, par. 7-119)
Sec. 7-119.
Annuity.
"Annuity": A series of equal monthly payments, payable as of the first
day of each calendar month during the life of an annuitant, the first
payment to be made as of the first day of the calendar month coincidental
with or next following the date upon which the annuity begins, and the last
payment to be made as of the first day of the calendar month in which the
annuitant dies or the annuity is terminated.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-120) (from Ch. 108 1/2, par. 7-120)
Sec. 7-120.
Board.
"Board": The board of trustees of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-121) (from Ch. 108 1/2, par. 7-121)
Sec. 7-121.
"Governing body":
(a) the city council in cities; (b) the board
of trustees in villages or in incorporated towns; (c) the county board in
counties; (d) in townships, the electors for purposes of electing whether
the township shall participate and to appropriate funds and levy taxes for
municipal contributions, under Section 7-171, for the town and any other
bodies politic included as a part of the town under Section 7-132.1 and the
Board of Town Trustees for all other purposes; (e) the
corporate authority,
body or officers, as the case may be, authorized by law to levy taxes for
the maintenance and operation of the municipality in other municipalities;
(f) the person or group of persons having ultimate authority to expend
funds for the payment of earnings to employees in participating
instrumentalities; or, (g) the board itself.
(Source: P.A. 82-783.)
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(40 ILCS 5/7-122) (from Ch. 108 1/2, par. 7-122)
Sec. 7-122.
Effective date.
"Effective date": The date the provisions of this fund become applicable
to any participating municipality and to all instrumentalities thereof and
to participating instrumentalities, as provided in Section 7-132.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-123) (from Ch. 108 1/2, par. 7-123)
Sec. 7-123.
Effective rate of interest.
"Effective rate of interest":
The interest rate determined by the Board for any calendar year which shall
distribute, to the extent reasonably determinable prior to the year for which
the rate is applicable, the current earnings (excluding capital gains) on
assets of the fund to reserves as provided by Section 7-209, after
due allowance is made for special reserve requirements under Section 7-208.
(Source: P.A. 91-357, eff. 7-29-99.)
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(40 ILCS 5/7-124) (from Ch. 108 1/2, par. 7-124)
Sec. 7-124.
Prescribed rate of interest.
"Prescribed rate of interest": The rate of interest to be used for
calculation of the rates of municipality contributions and amounts of
annuities and benefits as determined by the board on the basis of the
probable effective rate of interest on a long term basis.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-125) (from Ch. 108 1/2, par. 7-125)
Sec. 7-125.
Federal Social Security Act.
"Federal Social Security Act": Title II of the Social Security Act of
August 14, 1935, 74th Congress, Ch. 531, 49 Stat. 620, 42 U.S. Code, Ch. 7,
Supp., as heretofore or hereafter amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-126) (from Ch. 108 1/2, par. 7-126)
Sec. 7-126.
Federal Insurance Contributions Act.
"Federal Insurance Contributions Act": Chapter 21 of Sub-title C of the
Internal Revenue Code of 1954, 83rd Congress, Public Law 591, Chap. 736,
approved August 16, 1954, as heretofore or hereafter amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-127) (from Ch. 108 1/2, par. 7-127)
Sec. 7-127.
Social Security Enabling Act.
"Social Security Enabling Act": Article 21 of the Illinois Pension Code,
as the same may from time to time be amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-128) (from Ch. 108 1/2, par. 7-128)
Sec. 7-128.
State agency.
"State agency": The Social Security Unit of the State Employees'
Retirement System of Illinois as defined in the Social Security Enabling
Act or any agency succeeding to the duties thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-129) (from Ch. 108 1/2, par. 7-129)
Sec. 7-129.
Covered municipalities and participating instrumentalities.
"Covered municipalities and participating instrumentalities":
Municipalities and participating instrumentalities covered under the
Federal Social Security Act as provided in Section 7-136 hereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-130) (from Ch. 108 1/2, par. 7-130)
Sec. 7-130.
Covered employee.
"Covered employee": An employee covered under the Federal Social
Security Act as provided in Section 7-138 hereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
Sec. 7-132. Municipalities, instrumentalities and participating
instrumentalities included and effective dates.
(A) Municipalities and their instrumentalities.
(a) The following described municipalities, but not including any with
more than 1,000,000 inhabitants, and the instrumentalities thereof,
shall be included within and be subject to this Article beginning upon the
effective dates specified by the Board:
(1) Except as to the municipalities and | ||
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However, for any city, village or incorporated town | ||
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(2) School districts, other than those specifically | ||
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(3) Towns and all other bodies politic and corporate | ||
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(4) Any other municipality (together with its | ||
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(b) A municipality that is about to begin participation shall submit to
the Board an application to participate, in a form acceptable to the Board,
not later than 90 days prior to the proposed effective date of
participation. The Board shall act upon the application within 90 days,
and if it finds that the application is in conformity with its requirements
and the requirements of this Article, participation by the applicant shall
commence on a date acceptable to the municipality and specified by the
Board, but in no event more than one year from the date of application.
(c) A participating municipality which succeeds to the functions
of a participating municipality which is dissolved or terminates its
existence shall assume and be transferred the net accumulation balance
in the municipality reserve and the municipality account receivable
balance of the terminated municipality.
(d) In the case of a Veterans Assistance Commission whose employees
were being treated by the Fund on January 1, 1990 as employees of the
county served by the Commission, the Fund may continue to treat the
employees of the Veterans Assistance Commission as county employees for
the purposes of this Article, unless the Commission becomes a participating
instrumentality in accordance with subsection (B) of this Section.
(B) Participating instrumentalities.
(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within
and be subject to this Article if:
(1) an application to participate, in a form | ||
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(2) the Board finds that the application is in | ||
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The Board shall notify the applicant of its findings within 90 days
after receiving the application, and if the
Board approves the application, participation by the applicant shall
commence on the effective date specified by the Board.
(b) The following participating instrumentalities, so long as
they meet the requirements of Section 7-108 and the area served by them
or within their jurisdiction is not located entirely within a municipality
having more than one million inhabitants, may be included hereunder:
i. Township School District Trustees.
ii. Multiple County and Consolidated Health | ||
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iii. Public Building Commissions created under the | ||
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iv. A multitype, consolidated or cooperative library | ||
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v. Regional Planning Commissions created under | ||
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vi. Local Public Housing Authorities created under | ||
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vii. Illinois Municipal League.
viii. Northeastern Illinois Metropolitan Area | ||
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ix. Southwestern Illinois Metropolitan Area Planning | ||
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x. Illinois Association of Park Districts.
xi. Illinois Supervisors, County Commissioners and | ||
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xii. Tri-City Regional Port District.
xiii. An association, or not-for-profit corporation, | ||
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xiv. Drainage Districts operating under the Illinois | ||
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xv. Local mass transit districts created under the | ||
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xvi. Soil and water conservation districts created | ||
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xvii. Commissions created to provide water supply or | ||
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xviii. Public water districts created under the | ||
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xix. Veterans Assistance Commissions established | ||
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xx. The governing body of an entity, other than a | ||
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xxi. The Illinois Municipal Electric Agency.
xxii. The Waukegan Port District.
xxiii. The Fox Waterway Agency created under the Fox | ||
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xxiv. The Illinois Municipal Gas Agency.
xxv. The Kaskaskia Regional Port District.
xxvi. The Southwestern Illinois Development Authority.
xxvii. The Cairo Public Utility Company.
xxviii. Except with respect to employees who elect to | ||
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xxix. United Counties Council (formerly the Urban | ||
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xxx. The Will County Governmental League, but only if | ||
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xxxi. The Firefighters' Pension Investment Fund. xxxii. The Police Officers' Pension Investment Fund. (c) The governing boards of special education joint agreements
created under Section 10-22.31 of the School Code without designation of an
administrative district shall be included within and be subject to this
Article as participating instrumentalities when the joint agreement becomes
effective. However, the governing board of any such special education
joint agreement in effect before September 5, 1975 shall not be subject to this
Article unless the joint agreement is modified by the school districts to
provide that the governing board is subject to this Article, except as
otherwise provided by this Section.
The governing board of the Special Education District of Lake County shall
become subject to this Article as a participating instrumentality on July 1,
1997. Notwithstanding subdivision (a)1 of Section 7-139, on the effective date
of participation, employees of the governing board of the Special Education
District of Lake County shall receive creditable service for their prior
service with that employer, up to a maximum of 5 years, without any employee
contribution. Employees may establish creditable service for the remainder
of their prior service with that employer, if any, by applying in writing and
paying an employee contribution in an amount determined by the Fund, based on
the employee contribution rates in effect at the time of application for the
creditable service and the employee's salary rate on the effective date of
participation for that employer, plus interest at the effective rate from the
date of the prior service to the date of payment. Application for this
creditable service must be made before July 1, 1998; the payment may be made
at any time while the employee is still in service. The employer may elect to
make the required contribution on behalf of the employee.
The governing board of a special education joint agreement created
under Section 10-22.31 of the School Code for which an administrative
district has been designated, if there are employees of the cooperative
educational entity who are not employees of the administrative district,
may elect to participate in the Fund and be included within this Article as
a participating instrumentality, subject to such application procedures and
rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational programs or
projects created and administered under Section 3-15.14 of the School
Code, whether or not the Boards act as their own administrative district,
shall be included within and be subject to this Article as participating
instrumentalities when the agreement establishing the cooperative or joint
educational program or project becomes effective.
The governing board of a special education joint agreement entered into
after June 30, 1984 and prior to September 17, 1985 which provides for
representation on the governing board by less than all the participating
districts shall be included within and subject to this Article as a
participating instrumentality. Such participation shall be effective as of
the date the joint agreement becomes effective.
The governing boards of educational service centers established under
Section 2-3.62 of the School Code shall be included within and subject to
this Article as participating instrumentalities. The governing boards of
vocational education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State Board of
Education shall be included within and be subject to this
Article as participating instrumentalities. If any such governing boards
or boards of control are unable to pay the required employer contributions
to the fund, then the school districts served by such boards shall make
payment of required contributions as provided in Section 7-172. The
payments shall be allocated among the several school districts in
proportion to the number of students in average daily attendance for the
last full school year for each district in relation to the total number of
students in average attendance for such period for all districts served.
If such educational service centers, vocational education cooperatives or
cooperative or joint educational programs or projects created and
administered under Section 3-15.14 of the School Code are dissolved, the
assets and obligations shall be distributed among the districts in the
same proportions unless otherwise provided.
The governing board of Paris Cooperative High School shall be included within and be subject to this
Article as a participating instrumentality on the effective date of this amendatory Act of the 96th General Assembly. If the governing board of Paris Cooperative High School is unable to pay the required employer contributions
to the fund, then the school districts served shall make
payment of required contributions as provided in Section 7-172. The
payments shall be allocated among the several school districts in
proportion to the number of students in average daily attendance for the
last full school year for each district in relation to the total number of
students in average attendance for such period for all districts served.
If Paris Cooperative High School is dissolved, then the
assets and obligations shall be distributed among the districts in the
same proportions unless otherwise provided. The Philip J. Rock Center and School shall be included within and be subject to this Article as a participating instrumentality on the effective date of this amendatory Act of the 97th General Assembly. The Philip J. Rock Center and School shall certify to the Fund the dates of service of all employees within 90 days of the effective date of this amendatory Act of the 97th General Assembly. The Fund shall transfer to the IMRF account of the Philip J. Rock Center and School all creditable service and all employer contributions made on behalf of the employees for service at the Philip J. Rock Center and School that were reported and paid to IMRF by another employer prior to this date. If the Philip J. Rock Center and School is unable to pay the required employer contributions to the Fund, then the amount due will be paid by all employers as defined in item (2) of paragraph (a) of subsection (A) of this Section. The payments shall be allocated among these employers in proportion to the number of students in average daily attendance for the last full school year for each district in relation to the total number of students in average attendance for such period for all districts. If the Philip J. Rock Center and School is dissolved, then its IMRF assets and obligations shall be distributed in the same proportions unless otherwise provided. Financial Oversight Panels established under Article 1H of the School Code shall be included within and be subject to this Article as a participating instrumentality on the effective date of this amendatory Act of the 97th General Assembly. If the Financial Oversight Panel is unable to pay the required employer contributions to the fund, then the school districts served shall make payment of required contributions as provided in Section 7-172. If the Financial Oversight Panel is dissolved, then the assets and obligations shall be distributed to the district served. (d) The governing boards of special recreation joint agreements
created under Section 8-10b of the Park District Code, operating
without
designation of an administrative district or an administrative
municipality appointed to administer the program operating under the
authority of such joint agreement shall be included within and be
subject to this Article as participating instrumentalities when the
joint agreement becomes effective. However, the governing board of any
such special recreation joint agreement in effect before January 1,
1980 shall not be subject to this Article unless the joint agreement is
modified, by the districts and municipalities which are parties to the
agreement, to provide that the governing board is subject to this Article.
If the Board returns any employer and employee contributions to any
employer which erroneously submitted such contributions on behalf of a
special recreation joint agreement, the Board shall include interest
computed from the end of each year to the date of payment, not compounded,
at the rate of 7% per annum.
(e) Each multi-township assessment district, the board of
trustees of which has adopted this Article by ordinance prior to April 1,
1982, shall be a participating instrumentality included within and subject
to this Article effective December 1, 1981. The contributions required
under Section 7-172 shall be included in the budget prepared under and
allocated in accordance with Section 2-30 of the Property Tax Code.
(f) The Illinois Medical District Commission created under the Illinois Medical District Act may be included within and subject to
this Article as a participating instrumentality, notwithstanding that the location of the District is entirely within the City of Chicago. To become a participating instrumentality, the Commission must apply to the Board in the manner set forth in paragraph (a) of this subsection (B). If the
Board approves the application, under the criteria and procedures set forth in paragraph (a) and any other applicable rules, criteria, and procedures of the Board, participation by the Commission shall
commence on the effective date specified by the Board.
(C) Prospective participants. Beginning January 1, 1992, each prospective participating
municipality or participating instrumentality shall pay to the Fund the
cost, as determined by the Board, of a study prepared by the Fund or its
actuary, detailing the prospective costs of participation in the Fund to be
expected by the municipality or instrumentality.
(Source: P.A. 102-637, eff. 8-27-21.)
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(40 ILCS 5/7-132.1) (from Ch. 108 1/2, par. 7-132.1)
Sec. 7-132.1.
Towns - Election to participate.
For purposes of this Article, a town which is not a participating
municipality on the effective date of this Act, shall be considered to
include the town itself and all other bodies politic heretofor or hereafter
established by or subject to the direct or indirect control of the town
electors. As so defined, a town may participate in the Fund, on the first
day of January after the year in which a valid participation ordinance, adopted by the town electors, has been filed with
the Board. The following procedures shall govern adoption of a participation
ordinance by the town electors:
(a) A resolution, adopted by the town electors at an | ||
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(b) If the Board finds that the town has adequate | ||
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(c) Upon receipt of an approved application, the | ||
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(d) An ordinance to elect participation shall | ||
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Upon the filing of the ordinance, for the purpose of providing benefits
to their employees and their survivors, the town and the other bodies
politic, whether or not they were participating municipalities, shall be
considered and deemed to be a single municipality. It is declared to be the
policy of the State, that since the town and the other bodies politic serve
the same geographical area, that for the purposes of this Article they are
properly designated as a single municipality.
No town may elect to participate in this Fund except as provided in this
Section. In any town which has not elected to participate in the Fund on
the effective date of this Act, no body politic established by or subject
to the control of the town electors may elect to participate in the Fund,
except as a part of the town as provided in this Section.
(Source: P.A. 91-357, eff. 7-29-99.)
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(40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
Sec. 7-132.2.
Regional office of education.
(a) A regional office of education serving 2 or more counties, except those serving a county of 1,000,000 inhabitants or more, formed pursuant to
Article 3A of the School Code shall be included within and be subject to this
Article, effective as of the effective date of consolidation. For the purpose
of this Article, a regional office of education serving 2 or more counties shall be considered a
participating instrumentality but the requirements of Sections 7-106 and 7-132
shall not apply to it. Each county served by a regional office of education
that serves 2 or more
counties shall pay its proportional cost of the office's
municipality contributions. This cost shall be included in the budget prepared
under and apportioned in the manner provided by Section 3A-7 of the School
Code. Each county may include the cost for its share of the municipality
contributions required for the regional office of education in
its appropriation and tax levy under Section 7-171 of this Article.
(b) At the request of the county, the Board may designate any
participating regional office of education
to be a separate reporting entity distinct from the county.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/7-132.3) (from Ch. 108 1/2, par. 7-132.3)
Sec. 7-132.3.
The EDC Foundation of Chicago.
The EDC
Foundation of Chicago, an Illinois not-for-profit
corporation, may participate in the Fund and become subject to this Article as follows:
(1) By October 1 of the year preceding the year in which participation
is to begin, the Foundation may, with the authorization of at least
two-thirds of the members of its governing body, file an application with the Board.
(2) The Board shall review the application to determine whether it is in
conformity with the provisions of this Article. Along with such other
provisions as the Board may require, the application shall include a
demonstration that (i) the Foundation has a reasonable expectation of
continuing in existence for at least 10 years, and (ii) the Foundation has
the prospective financial capacity to enable it to meet its current and
future obligations to the Fund. Such financial capacity may be established
by evidence of a contractual commitment by the City of Chicago to assume or
guarantee any unpaid obligations of the Foundation to the Fund, or by the
Foundation entering into an agreement with the Board to pay annually to the
Fund any actuarially determined unfunded obligation relating to the
Foundation, in addition to the employer contributions required under Section 7-172.
(3) If the Board determines that the application is in conformity with
the requirements of this Article, and that participation by the Foundation
would not reasonably be expected to impair the actuarial soundness of the
Fund, it shall approve the application.
If the application is approved, the Foundation's employees shall begin
participation on the following January 1, and the Foundation shall
thereupon become a participating instrumentality for the purposes of Section 7-172.
(Source: P.A. 86-272.)
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(40 ILCS 5/7-134) (from Ch. 108 1/2, par. 7-134)
Sec. 7-134.
Municipality referendum and notice of election to
participate.
(a) A municipality electing to be included within this Article by
referendum shall hold such referendum within the territory of the municipality
following the filing of a written petition of at least 300 legal voters
or at least 1% of the legal voters of the municipality, whichever is less.
The question shall be certified to the proper election officials, who
shall submit the question to the voters at an election in accordance with
the general election law.
If a majority of the voters who vote upon
this question vote for inclusion of the
municipality, notice of the election to be included shall be given as
provided in this section and the municipality shall thereupon be so
included.
The proposition shall be in substantially the following form:
Shall the....(here name themunicipality or municipalities in which YESthe question is being voted upon) beincluded within the provisions of Article 7 of the Illinois Pension Code, asamended, pertaining to the creation of the NO"Illinois Municipal Retirement Fund"?
Where the boundaries of 2 or more municipalities are coextensive, one
ballot is sufficient for all municipalities specified in the ballot.
(b) A municipality electing to participate shall within 10 days
after the election submit to the board a certified notice of the
election to participate. The notice shall:
1. Be in writing,
2. Indicate the date of the election,
3. Specify all the instrumentalities of the municipality,
4. Be officially certified by the clerk or other proper official of
the municipality as having been duly made in accordance with the
provisions of this Article.
(Source: P.A. 81-1535.)
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(40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135) Sec. 7-135. Authorized agents. (a) Each participating municipality and participating instrumentality shall appoint an authorized agent who shall have the powers and duties set forth in this section. In absence of such appointment, the duties of the authorized agent shall devolve upon the clerk or secretary of the municipality or instrumentality, the township supervisor in the case of a township, and in the case of township school trustees upon the township school treasurer. (b) The authorized agent shall have the following powers and duties: 1. To certify to the fund whether or not a given | ||
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2. To certify to the fund when a participating | ||
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3. To request the proper officer to cause employee | ||
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4. To request the proper officer to cause | ||
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5. To forward promptly to all participating employees | ||
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6. To forward promptly to the fund all applications, | ||
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7. To perform all duties related to the | ||
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(c) The governing body of each participating municipality and participating instrumentality may delegate any or all of the following powers and duties to its authorized agent: 1. To file a petition for nomination of an executive | ||
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2. To cast the ballot for election of an executive | ||
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If a governing body does not authorize its agent to perform the powers and duties set forth in this paragraph (c), they shall be performed by the governing body itself, unless the governing body by resolution duly certified to the fund delegates them to some other officer or employee. (d) The delivery of any communication or document by an employee or a participating municipality or participating instrumentality to its authorized agent shall not constitute delivery to the fund. (e) All authorized agents appointed on or after the effective date of this amendatory Act of the 103rd General Assembly must complete a course of training regarding the duties and responsibilities of being an authorized agent no less than 3 months after his or her initial appointment. Such training must be provided by the Fund and made available online to all authorized agents no less than quarterly at no cost to the authorized agent or his or her employer. (Source: P.A. 103-464, eff. 1-1-24.) |
(40 ILCS 5/7-135.5) Sec. 7-135.5. Required public posting of information by the Fund. (a) The Fund shall post on its publicly available website the following information regarding municipalities that participate in the Fund that the Fund has in its possession: (1) copies of all resolutions adopted by a municipality on or after January 1, 1995 to participate in the Fund if such a resolution was required; (2) an annual report listing each municipality and the date each municipality first became a municipality that participates in the Fund; (3) all documents pertaining to each municipality's annual projected future contributions under this Article; and (4) information about the amount of each municipality's past required contributions to the Fund for each year of participation on or after January 1, 1995 and before, if available. (b) A municipality that has a website shall post to its website, no later than January 1, 2021, a link to the information provided by the Fund under this Section. A municipality that establishes a website on or after January 1, 2021 shall post to its website a link to the information provided by the Fund under this Section. (c) This Section does not require the Fund to post on its website information that is exempt from disclosure under the Freedom of Information Act. This Section does not require a municipality to establish or maintain a website.
(Source: P.A. 101-504, eff. 7-1-20.) |
(40 ILCS 5/7-136) (from Ch. 108 1/2, par. 7-136)
Sec. 7-136.
Municipalities and participating instrumentalities covered under the
Federal Social Security Act and effective dates.
Subject to the provisions of the Agreement with the State Agency as
provided in Section 7-170, the following described municipalities
(including all instrumentalities thereof), and participating
instrumentalities shall be considered covered under the Federal Social
Security Act and shall be subject to this Article pertaining to covered
municipalities and participating instrumentalities beginning upon the
effective dates hereinafter specified:
(a) All municipalities (and instrumentalities thereof) and participating
instrumentalities participating on December 31, 1957 shall be covered as of
January 1, 1956;
(b) All municipalities (and instrumentalities thereof) and participating
instrumentalities that begin participation after December 31, 1957, shall
be considered covered as of the effective date of participation.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
Sec. 7-137. Participating and covered employees.
(a) The persons described in this paragraph (a) shall be included within
and be subject to this Article and eligible to benefits from this fund,
beginning upon the dates hereinafter specified:
1. Except as to the employees specifically excluded | ||
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2. Except as to the employees specifically excluded | ||
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3. All persons who file notice with the board as | ||
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(b) The following described persons shall not be considered
participating employees eligible for benefits from this fund, but shall
be included within and be subject to this Article (each of the
descriptions is not exclusive but is cumulative):
1. Any person who occupies an office or is employed | ||
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2. Except as provided in items 2.5, 2.6, and 2.7, any | ||
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2.5. Except as provided in item 2.6, any person who | ||
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(i) the person was first elected as a member of a | ||
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(ii) the person has elected while in that office, | ||
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(iii) the county board has filed the resolution | ||
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(iv) the person has submitted the required time | ||
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2.6. Any person who is an elected member of a county | ||
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2.7. Any person who holds part-time office as a | ||
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3. Any person working for a city hospital unless any | ||
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4. Any person who becomes an employee after June 30, | ||
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5. Any person who is actively employed by a | ||
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(c) Any person electing to be a participating employee, pursuant to
paragraph (b) of this Section may not change such election,
except as provided in Section 7-137.1.
(d) Any employee who occupied the position of school nurse in any
participating municipality on August 8, 1961 and continuously thereafter
until the effective date of the exercise of the option authorized by
this subparagraph, who on August 7, 1961 was a member of the Teachers'
Retirement System of Illinois, by virtue of certification by the
Department of Registration and Education as a public health nurse, may
elect to terminate participation in this Fund in order to re-establish
membership in such System. The election may be exercised by filing
written notice thereof with the Board or with the Board of Trustees of
said Teachers' Retirement System, not later than September 30, 1963, and
shall be effective on the first day of the calendar month next following
the month in which the notice was filed. If the written notice is filed
with such Teachers' Retirement System, that System shall immediately
notify this Fund, but neither failure nor delay in notification shall
affect the validity of the employee's election. If the option is
exercised, the Fund shall notify such Teachers' Retirement System of
such fact and transfer to that system the amounts contributed by the
employee to this Fund, including interest at 3% per annum, but excluding
contributions applicable to social security coverage during the period
beginning August 8, 1961 to the effective date of the employee's
election. Participation in this Fund as to any credits on or after
August 8, 1961 and up to the effective date of the employee's election
shall terminate on such effective date.
(e) Any participating municipality or participating instrumentality,
other than a school district or special education joint agreement created
under Section 10-22.31 of the School Code, may, by a resolution or
ordinance duly adopted by its governing body, elect to exclude from
participation and eligibility for benefits all persons who are employed
after the effective date of such resolution or ordinance and who occupy an
office or are employed in a position normally requiring performance of duty
for less than 1000 hours per year for the participating municipality
(including all instrumentalities thereof) or participating instrumentality
except for persons employed in a position normally requiring performance of
duty for 600 hours or more per year (i) by such participating municipality
or participating instrumentality prior to the effective date of the
resolution or ordinance and (ii) by a
participating municipality or participating instrumentality, which had not
adopted such a resolution when the person was employed, and the function
served by the employee's position is assumed by another participating
municipality or participating instrumentality. Notwithstanding
the foregoing, a participating municipality or participating
instrumentality which is formed solely to succeed to the functions of a
participating municipality or participating instrumentality shall be
considered to have adopted any such resolution or ordinance which may have
been applicable to the employees performing such functions. The election
made by the resolution or ordinance shall take effect at the time specified
in the resolution or ordinance, and once effective shall be irrevocable.
(Source: P.A. 99-900, eff. 8-26-16; 100-274, eff. 1-1-18.)
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(40 ILCS 5/7-137.1) (from Ch. 108 1/2, par. 7-137.1)
Sec. 7-137.1.
Elected officials.
(a) A person holding an elective office who has elected
to participate in the Fund while in that office may revoke that election
and cease participating in the Fund by notifying the Board in writing
before January 1, 1992.
Upon such revocation, the person shall forfeit all creditable service
earned while holding that office, and the Board shall refund to the person,
without interest, all employee contributions paid for the forfeited
creditable service. The Board shall also refund or credit to the employing
municipality, without interest, the employer contributions relating to the
forfeited service, except those for death and disability.
(b) Notwithstanding the provisions of Sections 7-141 and 7-144,
beginning January 1, 1992, a person who holds an elective office and has
not elected to participate in the Fund with respect to that office (or has
revoked his election to participate with respect to that office under
subsection (a) of this Section) shall not be disqualified from receiving a
retirement annuity by reason of holding such office, provided that the
annuity is not based on any credits received for participating while
holding that office.
(Source: P.A. 87-740.)
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(40 ILCS 5/7-137.2) Sec. 7-137.2. Participation by elected members of county boards. (a) An elected member of a county board is not eligible to participate in the Fund with respect to that position unless the county board has adopted a resolution, after public debate and in a form acceptable to the Fund, certifying that persons in the position of elected member of the county board are expected to work at least 600 hours annually (or 1000 hours annually in a county that has adopted a resolution pursuant to subsection (e) of Section 7-137 of this Code). The resolution must be adopted and filed with the Fund no more than 90 days after each general election in which a member of the county board is elected. (b) An elected member of a county board that participates in the Fund with respect to that position shall monthly submit, to the county fiscal officer, time sheets documenting the time spent on official government business as an elected member of the county board. The time sheets shall be (1) submitted on paper or electronically, or both, and (2) maintained by the county board for 5 years. An elected member of a county board who fails to submit time sheets or fails to conduct official government business with respect to that position for either 600 hours or 1000 hours (whichever is applicable) annually shall not be permitted to continue participation in the Fund as an elected member of a county board. The Fund may request that the governing body certify that an elected member of a county board is permitted to continue participation with respect to that position.
(Source: P.A. 99-900, eff. 8-26-16.) |
(40 ILCS 5/7-138) (from Ch. 108 1/2, par. 7-138)
Sec. 7-138.
Employees covered under the Federal Social Security Act and
effective dates.
Subject to the Agreement with the State Agency as described in Section
7-170, the following described employees of covered municipalities and of
covered participating instrumentalities shall be considered covered under
the Federal Social Security Act and shall be subject to the provisions of
this Article pertaining to covered employees beginning upon the effective
dates hereinafter specified:
(a) Each person who was an employee of a municipality or participating
instrumentality covered as of January 1, 1956, and employed by such
municipality or participating instrumentality on December 31, 1957, shall
be considered a covered employee as of January 1, 1956, or the date
employment with such municipality or participating instrumentality began,
whichever is later;
(b) Each person who was an employee of a municipality or participating
instrumentality covered as of January 1, 1956, who was not employed by such
municipality or participating instrumentality on December 31, 1957, shall
be considered a covered employee as of the first date of employment after
such date;
(c) Each person who was an employee of a municipality or participating
instrumentality becoming covered after December 31, 1957, shall be
considered a covered employee on the date the municipality or participating
instrumentality becomes a covered municipality or participating
instrumentality or on the first date of employment, whichever is later;
(d) Each person who performs service for a municipality or participating
instrumentality defined as covered transportation service under Section 210
of the Federal Social Security Act if he (1) meets the requirements of
Section 7-137 of this Act, (2) is employed by a municipality or
participating instrumentality which has elected to participate and has been
accepted for participation, and (3) is subject to the Federal Insurance
Contributions Act, shall be considered a covered employee for the purpose
of computing benefits under this Article, but no contributions need be made
for Social Security purposes under this Article so long as contributions
are being made under the Federal Insurance Contributions Act in respect to
such service.
(Source: P.A. 78-811.)
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(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits and creditable
service, for purposes of determining the amount of any annuity or benefit
to which he or a beneficiary is entitled, as follows:
1. For prior service: Each participating employee who | ||
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If the effective date of participation for the | ||
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If the effective date of participation for the | ||
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A municipality that (i) has at least 35 employees; | ||
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Any person who has withdrawn from the service of a | ||
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2. For current service, each participating employee | ||
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a. Additional credits of amounts equal to each | ||
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b. Normal credits of amounts equal to each | ||
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c. Municipality credits in an amount equal to 1.4 | ||
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d. Survivor credits equal to each payment of | ||
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3. For periods of temporary and total and permanent | ||
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4. For authorized leave of absence without pay: A | ||
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a. An application for credits and creditable | ||
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b. Not more than 12 complete months of creditable | ||
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c. Credits and creditable service shall be | ||
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d. Benefits under the provisions of Sections | ||
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e. No credits or creditable service shall be | ||
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5. For military service: The governing body of a | ||
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Any participating employee who left his employment | ||
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Notwithstanding the foregoing, any participating | ||
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5.1. In addition to any creditable service | ||
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In order to receive creditable service for military | ||
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The changes made to this paragraph 5.1 by Public Acts | ||
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6. For out-of-state service: Creditable service shall | ||
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7. For retroactive service: Any employee who could | ||
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Any employee who is a participating employee on or | ||
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8. For accumulated unused sick leave: A | ||
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a. Sick leave days shall be limited to those | ||
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b. Except as provided in item b-1, only sick | ||
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b-1. If the employee was in the service of more | ||
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c. The creditable service granted shall be | ||
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d. The creditable service shall be at the rate of | ||
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e. Employee contributions shall not be required | ||
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f. Each participating municipality and | ||
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9. For service transferred from another system: | ||
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10. (Blank).
11. For service transferred from an Article 3 system | ||
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The board shall establish by rule the manner of | ||
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12. For omitted service: Any employee who was | ||
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a. Application for such credits is received by | ||
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b. Eligibility for participation and earnings are | ||
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Creditable service under this paragraph shall be | ||
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(b) Creditable service - amount:
1. One month of creditable service shall be allowed | ||
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2. A seasonal employee shall be given 12 months of | ||
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3. An intermittent employee shall be given creditable | ||
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(c) No application for correction of credits or creditable service shall
be considered unless the board receives an application for correction while
(1) the applicant is a participating employee and in active employment
with a participating municipality or instrumentality, or (2) while the
applicant is actively participating in a pension fund or retirement
system which is a participating system under the Retirement Systems
Reciprocal Act. A participating employee or other applicant shall not be
entitled to credits or creditable service unless the required employee
contributions are made in a lump sum or in installments made in accordance
with board rule. Payments made to establish service credit under paragraph 1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this Section must be received by the Board while the applicant is an active participant in the Fund or a reciprocal retirement system, except that an applicant may make one payment after termination of active participation in the Fund or a reciprocal retirement system. (d) Upon the granting of a retirement, surviving spouse or child
annuity, a death benefit or a separation benefit, on account of any
employee, all individual accumulated credits shall thereupon terminate.
Upon the withdrawal of additional contributions, the credits applicable
thereto shall thereupon terminate. Terminated credits shall not be applied
to increase the benefits any remaining employee would otherwise receive under
this Article.
(Source: P.A. 103-110, eff. 6-29-23.)
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(40 ILCS 5/7-139.1) (from Ch. 108 1/2, par. 7-139.1)
Sec. 7-139.1.
General Assembly transfers and credits.
(a) Any active member of the General Assembly Retirement System (and
until February 1, 1993, any former member of that System who has not yet
retired) may apply for transfer of his credits and creditable service
accumulated under this Fund to the General Assembly System. Also, any
active member of the State Employees' Retirement System of Illinois who is
an officer of the General Assembly may apply for a similar transfer from
this Fund, provided that such member received credit under this Fund as an
elected county officer. Such credits and creditable service shall be
transferred forthwith. Payment by this Fund to the General Assembly System
or the State Employees' Retirement System shall be made at the same time
and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) An active member of the General Assembly Retirement System (and
until February 1, 1993, any former member of that System who has not yet
retired) who has service credits and creditable service under the Fund may
establish additional service credits and creditable service for periods
during which he was an elected official and could have elected to
participate but did not so elect. Service credits and creditable service
may be established by payment to the fund of an amount equal to the
contributions he would have made if he had elected to participate, plus
interest to the date of payment. The limitations in subparagraph (c) of
Section 7-139 of this Article shall not apply to payments made under this
Section.
(c) An active member of the General Assembly Retirement System (and
until February 1, 1993, any former member of that System who has not yet
retired) may reinstate service and service credits terminated upon receipt
of a separation benefit, by payment to the Fund of the amount of the
separation benefit plus interest thereon to the date of payment.
(Source: P.A. 87-794.)
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(40 ILCS 5/7-139.1a) Sec. 7-139.1a. Transfer from Article 3. On and after July 1, 2022 but no later than January 1, 2023, a participating sheriff's law enforcement employee may elect to transfer up to 10 years of service credit to the Fund as set forth in Section 3-110.14. To establish creditable service under this Section, the sheriff's law enforcement employee may elect to do either of the following: (1) pay to the Fund an amount to be determined by the | ||
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(2) have the amount of his or her creditable service | ||
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Notwithstanding the amount transferred by the Article 3 fund pursuant to Section 3-110.14, in no event shall the service credit established under this Section exceed the lesser of 10 years or the actual amount of service credit that had been earned in the Article 3 fund. If an amount greater than the amount described under paragraph (1) is transferred to the Fund, the additional amount shall be credited to the account of the sheriff's law enforcement employee's employer.
(Source: P.A. 102-1061, eff. 6-10-22.) |
(40 ILCS 5/7-139.2) (from Ch. 108 1/2, par. 7-139.2)
Sec. 7-139.2. Validation of service credits. An active member of the General Assembly having no service credits or
creditable service in the Fund, may establish service credit and
creditable service for periods during which he was an employee of a
municipality in an elective office and could have elected to participate
in the Fund but did not so elect. Service credits and creditable service
may be established by payment to the Fund of an amount equal to the
contributions he would have made
if he had elected to participate plus
interest to the date of payment, together with the applicable
municipality credits including interest, but the total period of such
creditable service that may be validated shall not exceed 8 years. Payments made to establish such service credit must be received by the Board while the member is an active participant in the General Assembly Retirement System, except that one payment will be permitted after the member terminates such service.
(Source: P.A. 100-148, eff. 8-18-17.)
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(40 ILCS 5/7-139.3) (from Ch. 108 1/2, par. 7-139.3)
Sec. 7-139.3.
Validation of service credits.
An active member of the General Assembly having no service credits or
creditable service in the Fund may establish service credit and
creditable service for periods during which he held an elective office
in a municipality but could not participate in the Fund because the
municipality was not a participant in the Fund. Service credits and
creditable service may be established by payment to the Fund of an
amount equal to the contributions he would have made if he had
participated, with interest to the date of payment, together with the
applicable municipality credits with interest.
(Source: P.A. 81-1536.)
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(40 ILCS 5/7-139.4) (from Ch. 108 1/2, par. 7-139.4)
Sec. 7-139.4.
Termination of participation as an employee.
Any
participating employee who is an active member of the General Assembly
on or after November 20, 1979 may, upon written application to the
Board within 90 days of that date or of becoming an active member of
the General Assembly, whichever is later, terminate his participation as
an employee in this fund. Any person who has terminated his
participation as an employee under this Section and has continued the
employment upon which such employee status has been based may revoke
that termination after it has been in effect at least one year by filing
a notice of the revocation with the Board. Any such person may then
establish service credit and creditable service for any period of
service during which the termination of participation was in effect by
paying into the fund, within 6 months after revoking the termination of
participation, an amount equal to the employee contributions which would have
been required during the period for which the termination was
in effect together with interest thereon at 6% per annum compounded
annually.
(Source: P.A. 81-1536.)
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(40 ILCS 5/7-139.5) (from Ch. 108 1/2, par. 7-139.5)
Sec. 7-139.5.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer
and employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/7-139.6) (from Ch. 108 1/2, par. 7-139.6)
Sec. 7-139.6.
Transfer of creditable service to Article 8, 9 or 13 fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the people who is
a participant in a pension fund established under Article 9 of this Code,
any chief of the County Police Department or undersheriff of the County
Sheriff's Department who has elected under subparagraph (j) of Section 9-128.1
to be included within the provisions of Section 9-128.1 of Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in
a pension fund established under Article 13 of this Code, may apply for
transfer of his credits and creditable service accumulated in this Fund to
such Article 8, 9 or 13 fund. Such creditable service shall be
transferred forthwith. Payment by this Fund to the Article 8, 9 or 13
fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any
credits transferred under this Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary
district commissioner who has credits and creditable service under the Fund
may establish additional credits and creditable service for periods during
which he could have elected to participate but did not so elect. Credits
and creditable service may be established by payment to the Fund of an
amount equal to the contributions he would have made if he had elected to
participate, plus interest thereon to the date of payment. The limitations
in subparagraph (c) of Section 7-139 of this Article shall not
apply to payments made under this Section.
(c) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary district commissioner may reinstate credits and creditable service
terminated upon receipt of a separation benefit, by payment to
the Fund of the amount of the separation benefit plus interest thereon at
the rate of 6% per year to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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(40 ILCS 5/7-139.7)
Sec. 7-139.7. (Repealed).
(Source: P.A. 87-1265. Repealed by P.A. 98-932, eff. 8-15-14.)
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(40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
Sec. 7-139.8. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement System who is a State policeman, an investigator for the Secretary of State, a conservation police officer, an investigator for the Office of the Attorney General, an investigator for the Department of Revenue, an investigator for the Illinois Gaming Board, an arson investigator, a Commerce Commission police officer, an
investigator for the Office of the State's Attorneys Appellate Prosecutor,
or a controlled substance inspector
may apply for transfer of some or all of his or her credits and creditable service
accumulated in this Fund for service as a sheriff's law enforcement
employee, person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district to the State Employees' Retirement System in accordance with
Section 14-110. The creditable service shall be transferred only upon payment
by this Fund to the State Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits based on such service, | ||
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(3) any interest paid by the applicant to reinstate | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any person applying to transfer service under this Section may reinstate credits and
creditable service terminated upon receipt of a separation benefit, by paying
to the Fund the amount of the separation benefit plus interest thereon at the actuarially assumed rate of interest
to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-856, eff. 1-1-23.)
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(40 ILCS 5/7-139.9)
Sec. 7-139.9. (Repealed).
(Source: P.A. 90-460, eff. 8-17-97. Repealed by P.A. 98-932, eff. 8-15-14.)
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(40 ILCS 5/7-139.10)
Sec. 7-139.10. Transfer to Article 4 pension fund. A person who has elected under Section 4-108.4 to become an
active participant in a firefighter pension fund established under Article 4 of
this Code may apply for transfer to that Article 4 fund of his or her
creditable service accumulated under this Article for municipal firefighter
service. At the time of the transfer, the Fund
shall pay to the firefighter pension fund an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) any interest paid by the applicant in order to | ||
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(3) the municipality credits based on that service, | ||
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Participation in this fund with respect to the transferred credits shall
terminate on the date of transfer.
For the purpose of this Section, "municipal firefighter service" means
service with the fire department of a participating municipality for which the
applicant
established
creditable service under this Article.
(Source: P.A. 93-689, eff. 7-1-04.) |
(40 ILCS 5/7-139.11)
Sec. 7-139.11. (Repealed).
(Source: P.A. 95-1036, eff. 2-17-09. Repealed by P.A. 98-932, eff. 8-15-14.)
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(40 ILCS 5/7-139.12)
Sec. 7-139.12. Transfer of creditable service to Article 14. A person employed by the Chicago Metropolitan Agency for Planning (formerly the Regional Planning Board) on the effective date of this Section who was a member of the State Employees' Retirement System of Illinois as an employee of the Chicago Area Transportation Study may apply for transfer of his or her creditable service as an employee of the Chicago Metropolitan Agency for Planning upon payment of (1) the amounts accumulated to the credit of the applicant for such service on the books of the Fund on the date of transfer and (2) the corresponding municipality credits, including interest, on the books of the Fund on the date of transfer. Participation in this Fund with respect to the transferred credits shall terminate on the date of transfer.
(Source: P.A. 95-677, eff. 10-11-07; 95-876, eff. 8-21-08.) |
(40 ILCS 5/7-139.13)
Sec. 7-139.13. (Repealed).
(Source: P.A. 97-273, eff. 8-8-11. Repealed by P.A. 98-932, eff. 8-15-14.)
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(40 ILCS 5/7-139.14) (Text of Section from P.A. 102-857) Sec. 7-139.14. Transfer to Article 3 pension fund. (a) Within 6 months after July 23, 2021 (the effective date of Public Act 102-113), an active member of a pension fund established under Article 3 of this Code may apply for transfer to that Article 3 pension fund of his or her credits and creditable service accumulated in this Fund for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district. The creditable service shall be transferred only upon payment by this Fund to such Article 3 pension fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) an amount representing employer contributions, | ||
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(3) any interest paid by the applicant to reinstate | ||
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Within 6 months after the effective date of this amendatory Act of the 102nd General Assembly, an active member of a pension fund established under Article 3 of this Code may apply for transfer to that Article 3 pension fund of his or her credits and creditable service accumulated in this Fund for service as a county correctional officer or as a person employed by a participating municipality to perform administrative duties related to law enforcement. The creditable service shall be transferred only upon payment by this Fund to such Article 3 pension fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) an amount representing employer contributions, | ||
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(3) any interest paid by the applicant to reinstate | ||
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Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer. (b) Notwithstanding any other provision of this Code, any person applying to transfer service under this Section may reinstate credits and creditable service terminated upon receipt of a separation benefit by paying to the Fund the amount of the separation benefit plus interest thereon at the actuarially assumed rate of interest to the date of payment. Such payment must be made within 90 days after notification by the Fund of the cost of such reinstatement.
(Source: P.A. 102-113, eff. 7-23-21; 102-857, eff. 5-13-22.) (Text of Section from P.A. 102-1061) Sec. 7-139.14. Transfer to Article 3 pension fund. (a) No later than June 30, 2023, an active member of a pension fund established under Article 3 of this Code may apply for transfer to that Article 3 pension fund of his or her credits and creditable service accumulated in this Fund for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, law enforcement officer employed on a full-time basis by a forest preserve district, or person employed by a participating municipality or instrumentality to perform administrative duties related to law enforcement. The creditable service shall be transferred only upon payment by this Fund to such Article 3 pension fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) an amount representing employer contributions, | ||
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(3) any interest paid by the applicant to reinstate | ||
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Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer. (b) Notwithstanding any other provision of this Code, any person applying to transfer service under this Section may reinstate credits and creditable service terminated upon receipt of a separation benefit by paying to the Fund the amount of the separation benefit plus interest thereon at the actuarially assumed rate of interest to the date of payment. Such payment must be made within 60 days after notification by the Fund of the cost of such reinstatement.
(Source: P.A. 102-113, eff. 7-23-21; 102-1061, eff. 1-1-23.) |
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities; conditions. Retirement annuities shall be payable as hereinafter set forth:
(a) A participating employee who, regardless of cause, is separated
from the service of all participating municipalities and
instrumentalities thereof and participating instrumentalities shall be
entitled to a retirement annuity provided:
1. He is at least age 55 if he is a Tier 1 regular | ||
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2. He is not entitled to receive earnings for | ||
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3. The amount of his annuity, before the application | ||
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4. If he first became a participating employee after | ||
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(b) Retirement annuities shall be payable:
1. As provided in Section 7-119;
2. Except as provided in item 3, upon receipt by the | ||
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3. Upon attainment of the required age of | ||
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4. To the beneficiary of the deceased annuitant for | ||
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(Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21; 102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff. 5-13-22.)
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(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have | ||
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(2) This financial crisis is expected to continue.
(3) Units of local government must depend on | ||
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(4) An early retirement incentive designed | ||
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(5) The early retirement incentive should be made | ||
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(6) A unit of local government adopting a program of | ||
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(7) A unit of local government adopting a program of | ||
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It is the primary purpose of this Section to encourage units of local
government that can realize true cost savings, or have determined that an early
retirement program is in their best interest, to implement an early retirement
program.
(b) Until June 27, 1997 (the effective date of Public Act 90-32), this
Section does not apply to any employer that is a city, village, or incorporated
town, nor to the employees of any such employer. Beginning on June 27, 1997 (the effective
date of Public Act 90-32), any employer under this Article, including
an employer that is a city, village, or incorporated town, may establish an
early retirement incentive program for its employees under this Section. The
decision of a city, village, or incorporated town to consider or establish an
early retirement program is at the sole discretion of that city, village, or
incorporated town, and nothing in Public Act 90-32 limits or
otherwise diminishes this discretion. Nothing contained in this Section shall
be construed to require a city, village, or incorporated town to establish an
early retirement program and no city, village, or incorporated town may be
compelled to implement such a program.
The benefits provided in this Section are available only to members
employed by a participating employer that has filed with the Board of the
Fund a resolution or ordinance expressly providing for the creation of an
early retirement incentive program under this Section for its employees and
specifying the effective date of the early retirement incentive program.
Subject to the limitation in subsection (h), an employer may adopt a resolution
or ordinance providing a program of early retirement incentives under this
Section at any time.
The resolution or ordinance shall be in substantially the following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
WHEREAS, Section 7-141.1 of the Illinois Pension Code provides that a
participating employer may elect to adopt an early retirement
incentive program offered by the Illinois Municipal Retirement Fund by
adopting a resolution or ordinance; and
WHEREAS, The goal of adopting an early retirement program is
to realize a substantial savings in personnel costs by offering early
retirement incentives to employees who have accumulated many years of
service credit; and
WHEREAS, Implementation of the early retirement program will provide a
budgeting tool to aid in controlling payroll costs; and
WHEREAS, The (name of governing body) has determined that the adoption of an
early retirement incentive program is in the best interests of the (name of
participating employer); therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of (name of
participating employer) that:
(1) The (name of participating employer) does hereby adopt the Illinois
Municipal Retirement Fund early retirement incentive program as provided in
Section 7-141.1 of the Illinois Pension Code. The early retirement incentive
program shall take effect on (date).
(2) In order to help achieve a true cost savings, a person who retires under
the early retirement incentive program shall lose those incentives if he or she
later accepts employment with or enters into a personal services contract with any IMRF employer.
(3) In order to utilize an early retirement incentive as a budgeting
tool, the (name of participating employer) will use its best efforts either
to limit the number of employees who replace the employees who retire under
the early retirement program or to limit the salaries paid to the employees who
replace the employees who retire under the early retirement program.
(4) The effective date of each employee's retirement under this early
retirement program shall be set by (name of employer) and shall be no
earlier than the effective date of the program and no later than one year after
that effective date; except that the employee may require that the retirement
date set by the employer be no later than the June 30 next occurring after the
effective date of the program and no earlier than the date upon which the
employee qualifies for retirement.
(5) To be eligible for the early retirement incentive under this Section,
the employee must have attained age 50 and have at least 20 years of creditable
service by his or her retirement date.
(6) The (clerk or secretary) shall promptly file a certified copy of
this resolution (ordinance) with the Board of Trustees of the Illinois
Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of participating
employer) of the County of (name), State of Illinois, do hereby certify
that I am the keeper of the books and records of the (name of employer)
and that the foregoing is a true and correct copy of a resolution
(ordinance) duly adopted by the (governing body) at a meeting duly convened
and held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an early retirement
incentive program adopted under this Section, a member must:
(1) be a participating employee of this Fund who, on | ||
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(2) have never previously received a retirement | ||
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(3) (blank);
(4) have at least 20 years of creditable service in | ||
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(5) have attained age 50 by the date of retirement if | ||
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(6) be eligible to receive a retirement annuity under | ||
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(d) The employer shall determine the retirement date for each employee
participating in the early retirement program adopted under this Section. The
retirement date shall be no earlier than the effective date of the program and
no later than one year after that effective date, except that the employee may
require that the retirement date set by the employer be no later than the June
30 next occurring after the effective date of the program and no earlier than
the date upon which the employee qualifies for retirement. The employer shall
give each employee participating in the early retirement program at least 30
days written notice of the employee's designated retirement date, unless the
employee waives this notice requirement.
(e) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final rate of earnings and the determination
of earnings, salary, or compensation under this or any other Article of the
Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of the reduction imposed
under subdivision (a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any distributions required because
of age. The age enhancement established under this Section may be used in
calculating a proportionate annuity payable by this Fund under the Retirement
Systems Reciprocal Act, but shall not be used in determining benefits payable
under other Articles of this Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this Section, the
member must pay to the Fund an employee contribution consisting of the total employee contribution rate in effect at the time the member purchases the service for the plan in which the member was participating with the employer at that time multiplied by the member's highest annual salary rate used in the determination of the
final rate of earnings for retirement annuity purposes for each year of
creditable service granted under this Section.
Contributions for fractions of a year of service shall be prorated.
Any amounts that are disregarded in determining the final rate of earnings
under subdivision (d)(5) of Section 7-116 (the 125% rule) shall also be
disregarded in determining the required contribution under this subsection (f).
The employee contribution shall be paid to the Fund as follows: If the
member is entitled to a lump sum payment for accumulated vacation, sick leave,
or personal leave upon withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted amount directly
to the Fund. If there is no such lump sum payment or the required employee
contribution exceeds the net amount of the lump sum payment, then the remaining
amount due, at the option of the employee, may either be paid to the Fund
before the annuity commences or deducted from the retirement annuity in 24
equal monthly installments.
(g) An annuitant who has received any age enhancement or creditable service
under this Section and thereafter accepts employment with or enters into a
personal services contract with an employer under this Article thereby forfeits
that age enhancement and creditable service; except that this restriction
does not apply to (1) service in an elective office, so long as the annuitant
does not participate in this Fund with respect to that office, (2) a person appointed as an officer under subsection (f) of Section 3-109 of this Code, and (3) a person appointed as an auxiliary police officer pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A person
forfeiting early retirement incentives under this subsection (i) must repay to
the Fund that portion of the retirement annuity already received which is
attributable to the early retirement incentives that are being forfeited, (ii)
shall not be eligible to participate in any future early retirement program
adopted under this Section, and (iii) is entitled to a refund of the employee
contribution paid under subsection (f). The Board shall deduct the required
repayment from the refund and may impose a reasonable payment schedule for
repaying the amount, if any, by which the required repayment exceeds the refund
amount.
(h) The additional unfunded liability accruing as a result of the adoption
of a program of early retirement incentives under this Section by an employer
shall be amortized over a period of 10 years beginning on January 1 of the
second calendar year following the calendar year in which the latest date for
beginning to receive a retirement annuity under the program (as determined by
the employer under subsection (d) of this Section) occurs; except that the
employer may provide for a shorter amortization period (of no less than 5
years) by adopting an ordinance or resolution specifying the length of the
amortization period and submitting a certified copy of the ordinance or
resolution to the Fund no later than 6 months after the effective date of the
program. An employer, at its discretion, may accelerate payments to the Fund.
An employer may provide more than one early retirement incentive program
for its employees under this Section. However, an employer that has provided
an early retirement incentive program for its employees under this Section may
not provide another early retirement incentive program under this Section until the liability arising from the earlier program has been fully paid to
the Fund.
(Source: P.A. 102-210, eff. 1-1-22; 102-850, eff. 5-13-22.)
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(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142) Sec. 7-142. Retirement annuities - Amount. (a) The amount of a retirement annuity shall be the sum of the
following, determined in accordance with the actuarial tables in effect at
the time of the grant of the annuity: 1. For Tier 1 regular employees with 8 or more years | ||
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a. The monthly annuity which can be provided | ||
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b. (i) The monthly annuity amount determined as | ||
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(ii) For the sole purpose of computing the | ||
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(iii) The monthly annuity computed in accordance | ||
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(iv) For employees who have less than 35 years of | ||
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2. The annuity which can be provided from the total | ||
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(b) If payment of an annuity begins prior to the earliest age at
which the employee will become eligible for an old age insurance benefit
under the Federal Social Security Act, he may elect that the annuity
payments from this fund shall exceed those payable after his attaining
such age by an amount, computed as determined by rules of the Board, but
not in excess of his estimated Social Security Benefit, determined as
of the effective date of the annuity, provided that in no case shall the
total annuity payments made by this fund exceed in actuarial value the
annuity which would have been payable had no such election been made. (c) Beginning
January 1, 1984 and each January 1 thereafter, the retirement annuity of a Tier 1 regular employee shall be increased
by 3% each year, not compounded. This increase shall be computed from the effective date of the retirement annuity, the first increase being 0.25% of the monthly amount times the number of months from the effective date to January 1. This increase shall not be applicable to
annuitants who are not in service on or after September 8, 1971. A retirement annuity of a Tier 2 regular employee shall receive annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at the lesser of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1 of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. (d) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate. (Source: P.A. 102-210, eff. 1-1-22.) |
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1) Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by subparagraph 1 of
paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who
has 20 or more years of service in that capacity and who terminates
service prior to January 1, 1988 shall be entitled at his
option to receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2% for each year
of such service up to 10 years, 2 1/4% for each year
of such service above 10 years and up to 20 years, and
2 1/2% for each year of such service above
20 years, by his annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more years of
service in that capacity and who terminates service on or after January 1,
1988 and before July 1, 2004 shall be entitled at his option to receive
a monthly retirement
annuity for his service as a sheriff's law enforcement employee computed by
multiplying 2.5% for each year of such service up to 20 years, 2% for each
year of such service above 20 years and up to 30 years, and 1% for each
year of such service above 30 years, by his annual final rate of earnings
and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more years of
service in that capacity and who terminates service on or after July 1,
2004 shall be entitled at his or her option to receive a monthly retirement
annuity for service as a sheriff's law enforcement employee computed by
multiplying 2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any other
capacity, his retirement annuity for service as a sheriff's law enforcement
employee may be computed under this Section and the retirement annuity for
his other service under Section 7-142.
In no case shall the total monthly retirement annuity for persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total monthly retirement annuity for persons who retire on or after July 1, 2004 exceed 80% of the
monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected in accordance
with the provisions of Section 367h of the Illinois Insurance Code, as now
or hereafter amended, the total monthly premium for such continued group
insurance coverage or such portion thereof as is not paid
by the municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any monthly pension
benefit otherwise payable to such person pursuant to this Section, to be
remitted by the Fund to the insurance company
or other entity providing the group insurance coverage.
(c) A sheriff's law enforcement employee who began service in that capacity prior to the effective date of this amendatory Act of the 97th General Assembly and who has service in any other
capacity may convert up to 10 years of that service into service as a sheriff's
law enforcement employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section 7-173.1, plus (2) the additional employer contribution required under Section 7-172, plus (3) interest on items (1) and (2) at the
prescribed rate from the date of the service to the date of payment.
Application must be received by the Board while the employee is an active participant in the Fund. Payment must be received while the member is an active participant, except that one payment will be permitted after termination of participation. (d) The changes to subsections (a) and (b) of this Section made by this amendatory Act of the 94th General Assembly apply only to persons in service on or after July 1, 2004. In the case of such a person who begins to receive a retirement annuity before the effective date of this amendatory Act of the 94th General Assembly, the annuity shall be recalculated prospectively to reflect those changes, with the resulting increase beginning to accrue on the first annuity payment date following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate. (f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who first
becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011. A sheriff's law enforcement employee age 55 or more who has 10 or more years of service in that capacity shall be entitled at his option to receive a monthly retirement annuity for his or her service as a sheriff's law enforcement employee computed by multiplying 2.5% for each year of such service by his or her final rate of earnings. The retirement annuity of a sheriff's law enforcement employee who is retiring after attaining age 50 with 10 or more years of creditable service shall be reduced by one-half of 1% for each month that the sheriff's law enforcement employee's age is under age 55. The maximum retirement annuity under this subsection (f) shall be 75%
of final rate of earnings. For the purposes of this subsection (f), "final rate of earnings" means the average monthly earnings obtained by dividing the total salary of the sheriff's law enforcement employee during the 96 consecutive months of service within the last 120 months of service in which the total earnings was the highest by the number of months of service in that period. Notwithstanding any other provision of this Article, beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings of a sheriff's law enforcement employee to whom this Section applies shall not include overtime and shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. (g) Notwithstanding any other provision of this Article, the monthly annuity
of a person who first becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not be increased. (h) Notwithstanding any other provision of this Article, for a person who first becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011, the annuity to which the surviving spouse, children, or parents are entitled under this subsection (h) shall be in the amount of 66 2/3% of the sheriff's law enforcement employee's earned annuity at the date of death. (i) Notwithstanding any other provision of this Article, the monthly annuity
of a survivor of a person who first becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011 shall be increased on the January 1 after attainment of age 60 by the recipient of the survivor's annuity and
each January 1 thereafter by 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for the
12 months ending with the September preceding each November 1, whichever is less, of the originally granted pension. If the annual unadjusted percentage change in
the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not
be increased. (j) For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds. (Source: P.A. 100-148, eff. 8-18-17.) |
(40 ILCS 5/7-143) (from Ch. 108 1/2, par. 7-143)
Sec. 7-143.
Retirement annuities-Reduction.
If the participating employee elects a reversionary annuity in
accordance with Section 7-145, his retirement annuity shall be reduced by
an amount equal to the annuity which could be provided for him at the time
the annuity begins from the accumulated additional credits required to
provide the reversionary annuity.
(Source: P.A. 77-2121.)
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(40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
Sec. 7-144. Retirement annuities; suspended during employment.
(a) If any person
receiving any annuity again becomes an employee
and receives earnings from employment in a position requiring him, or entitling him to elect, to
become a participating employee, then the annuity payable to such employee
shall be suspended as of the first day of the month coincidental with or
next following the date upon which such person becomes such an employee, unless the person is authorized under subsection (b) of Section 7-137.1 of this Code to continue receiving a retirement annuity during that period.
Upon proper qualification of the participating employee payment of such
annuity may be resumed on the first day of the month following such
qualification and upon proper application therefor. The participating
employee in such case shall be entitled to a supplemental annuity
arising from service and credits earned subsequent to such re-entry as a
participating employee.
Notwithstanding any other provision of this Article, an annuitant shall be considered a participating employee if he or she returns to work as an employee with a participating employer and works more than 599 hours annually (or 999 hours annually with a participating employer that has adopted a resolution pursuant to subsection (e) of Section 7-137 of this Code). Each of these annual periods shall commence on the month and day upon which the annuitant is first employed with the participating employer following the effective date of the annuity. (a-5) If any annuitant under this Article must be considered a participating employee per the provisions of subsection (a) of this Section, and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the participating municipality or participating instrumentality may be required to reimburse the Fund for an amount up to one-half of the total of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board. In no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. This subsection shall not apply if the annuitant returned to work for the employer for less than 12 months. The Fund shall notify all annuitants that they must notify the Fund immediately if they return to work for any participating employer. The notification by the Fund shall occur upon retirement and no less than annually thereafter in a format determined by the Fund. The Fund shall also develop and maintain a system to track annuitants who have returned to work and notify the participating employer and annuitant at least annually of the limitations on returning to work under this Section. (b) Supplemental annuities to persons who return to service for less
than 48 months shall be computed under the provisions of Sections 7-141,
7-142, and 7-143. In determining whether an employee is eligible for an
annuity which requires a minimum period of service, his entire period of
service shall be taken into consideration but the supplemental annuity
shall be based on earnings and service in the supplemental period only.
The effective date of the suspended and supplemental annuity for the
purpose of increases after retirement shall be considered to be the
effective date of the suspended annuity.
(c) Supplemental annuities to persons who return to service for 48
months or more shall be a monthly amount determined as follows:
(1) An amount shall be computed under subparagraph b | ||
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(2) The actuarial value in monthly payments for life | ||
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(3) The monthly amount of the suspended annuity, with | ||
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(4) The suspended annuity shall be reinstated at an | ||
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(5) The effective date of the combined suspended and | ||
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(d) If a Tier 2 regular employee becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, except for those members or participants exempted from the provisions of subsection (a) of Section 1-160 of this Code (other than a participating employee under this Article), then the person's retirement annuity shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity shall resume and be recalculated as required by this Section. (e) If a Tier 2 regular employee first began participation on or after January 1, 2012 and is receiving a retirement annuity and accepts on a contractual basis a position to provide services to a governmental entity from which he or she has retired, then that person's annuity or retirement pension shall be suspended during that contractual service, notwithstanding the provisions of any other Section in this Article. Such annuitant shall notify the Fund, as well as his or her contractual employer, of his or her retirement status before accepting contractual employment. A person who fails to submit such notification shall be guilty of a Class A misdemeanor and required to pay a fine of $1,000. Upon termination of that contractual employment, the person's retirement annuity shall resume and be recalculated as required by this Section. (Source: P.A. 102-210, eff. 1-1-22; 103-154, eff. 6-30-23.)
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(40 ILCS 5/7-144.2) (from Ch. 108 1/2, par. 7-144.2)
Sec. 7-144.2.
Incremental retirement annuity.
Each employee annuitant who terminated service prior to the effective
date of this amendatory Act of 1971 is entitled to receive a monthly
incremental retirement annuity, effective January 1, 1972, of .167% of his
monthly retirement annuity amount, multiplied by the number of months from
the effective date of his annuity to January 1, 1972. This monthly
incremental annuity shall be increased on each January 1 thereafter during
the lifetime of the annuitant by 2% of the monthly retirement annuity
amount. Beginning January 1, 1984 and each January 1 thereafter, the monthly
incremental annuity shall be increased by 3% of the monthly retirement annuity
amount. The incremental annuity is payable only if the annuitant agrees to
pay the fund an amount equal to 1% of 1/12 of his annual final rate of
earnings, determined as of the date of his retirement, multiplied by the
number of full years of service. The annuitant, prior to December 1, 1971,
may authorize the fund to deduct the payment from his annuity if the total
payment can be deducted in one month. If the agreement or payment is
received by the fund prior to December 1, 1971, the incremental annuity
shall be effective January 1, 1972. If the agreement or payment is not
received before December 1, 1971, the incremental annuity shall be
effective the first day of the next month after receipt of payment by the
fund, but if received after the 15th day, the first day of the month
following the next month, and shall not be paid retroactively.
The monthly retirement annuity amount, for the purpose of this Section,
shall be the annuity amount initially awarded or, if adjusted under
paragraph (b) of Section 7-142, the adjusted amount, disregarding any
incremental annuities previously granted.
(Source: P.A. 83-664.)
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(40 ILCS 5/7-144.3) (from Ch. 108 1/2, par. 7-144.3)
Sec. 7-144.3.
Supplemental benefit payment.
(a) A supplemental benefit payment, consisting of a sum calculated as
provided in subsection (c), shall be payable to each eligible retirement
annuitant and surviving spouse annuitant on July 1, 1993, and on each
subsequent July 1; except that if this Code is amended to change the
uncompounded annual increase in retirement annuity granted in subsection
(c) of Section 7-142 to a compounded annual increase, no supplemental
benefit shall be paid under this Section on any July 1 occurring on or
after the effective date of that amendment. The amount of the supplemental
benefit payment, and a person's eligibility to receive the supplemental
benefit payment, shall be redetermined for each year in which the benefit
is payable.
(b) To be eligible to receive a supplemental benefit payment, a person
must be entitled to receive a retirement annuity or surviving spouse
annuity from the Fund on the July 1 supplemental benefit payment date, and
must have been receiving that annuity during each of the 12 months
immediately preceding that date; except that a surviving spouse annuitant
whose surviving spouse annuity began less than one year before the July 1
supplemental benefit payment date shall be eligible if the deceased spouse
received a retirement annuity from the Fund during the period from the
previous July 1 until the start of the surviving spouse annuity.
(c) The amount of the supplemental benefit payment shall be determined
by the Board as follows:
(1) The total amount available for the payment of | ||
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(2) The amount of the supplemental benefit payment to | ||
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(3) Notwithstanding paragraph (2), the amount of any | ||
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(Source: P.A. 87-850.)
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(40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
Sec. 7-145. Reversionary annuities.
(a) An employee entitled to a retirement annuity may elect to provide a
reversionary annuity for a beneficiary if:
1. Under the provisions of paragraph (a) 1 of Section | ||
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2. His accumulated additional and optional credits | ||
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(b) An election shall become effective only:
1. If a written notice thereof by the employee is | ||
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2. If the amount of the beneficiary's reversionary | ||
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(c) The amount of the reversionary annuity shall be that specified in
the notice of election.
(d) Reversionary annuity shall begin the first day of the month
following the month in which the last payment of the employee annuity is
payable because of death, provided the beneficiary is alive at such time.
If the beneficiary does not survive the annuitant, no reversionary annuity
shall be payable, but only the death benefit as provided in Sections 7-163
and 7-164.
(e) Any election made under this Section shall be irrevocable by the employee. (Source: P.A. 98-1078, eff. 1-1-15.)
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(40 ILCS 5/7-145.1) Sec. 7-145.1. Alternative annuity for county officers. (a) The benefits provided in this Section and Section 7-145.2 are available
only if, prior to the effective date of this amendatory Act of the 97th General Assembly, the county board has filed with the Board of the Fund a resolution or
ordinance expressly consenting to the availability of these benefits for its
elected county officers. The county board's consent is irrevocable with
respect to persons participating in the program, but may be revoked at any time
with respect to persons who have not paid an additional optional contribution
under this Section before the date of revocation. An elected county officer may elect to establish alternative credits for
an alternative annuity by electing in writing before the effective date of this amendatory Act of the 97th General Assembly to make additional optional
contributions in accordance with this Section and procedures established
by the board. These alternative credits are available only for periods of
service as an elected county officer. The elected county officer may
discontinue making the additional optional contributions by notifying the
Fund in writing in accordance with this Section and procedures established
by the board. Additional optional contributions for the alternative annuity shall
be as follows: (1) For service as an elected county officer after | ||
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(2) For service as an elected county officer before | ||
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(3) With respect to service as an elected county | ||
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No additional optional contributions may be made for any period of service
for which credit has been previously forfeited by acceptance of a refund,
unless the refund is repaid in full with interest at the effective rate from
the date of refund to the date of repayment. (b) In lieu of the retirement annuity otherwise payable under this Article,
an elected county officer who (1) has elected to participate in the Fund and
make additional optional contributions in accordance with this Section, (2)
has held and made additional optional contributions with respect to the same
elected county office for at least 8 years, and (3) has attained
age 55 with at least 8 years of service credit (or has attained age 50 with at
least 20 years of service as a sheriff's law enforcement employee) may elect
to have his retirement annuity computed as follows: 3% of the participant's
salary for each of the first 8 years
of service credit, plus 4% of that salary for each of the next 4 years of
service credit, plus 5% of that salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of that salary. This formula applies only to service in an elected county office that the
officer held for at least 8 years, and only to service for which additional
optional contributions have been paid under this Section. If an elected county
officer qualifies to have this formula applied to service in more than one
elected county office, the qualifying service shall be accumulated for purposes
of determining the applicable accrual percentages, but the salary used for each
office shall be the separate salary calculated for that office, as defined in
subsection (g). To the extent that the elected county officer has service credit that does
not qualify for this formula, his retirement annuity will first be determined
in accordance with this formula with respect to the service to which this
formula applies, and then in accordance with the remaining Sections of this
Article with respect to the service to which this formula does not apply. (c) In lieu of the disability benefits otherwise payable under this
Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform the duties
of his office, and (3) was making optional contributions in accordance with
this Section at the time the disability was incurred, may elect to receive
a disability annuity calculated in accordance with the formula in subsection
(b). For the purposes of this subsection, an elected county officer shall be
considered permanently disabled only if: (i) disability occurs while in
service as an elected county officer and is of such a nature as to prevent him
from reasonably performing the duties of his office at the time; and (ii) the
board has received a written certification by at least 2 licensed physicians
appointed by it stating that the officer is disabled and that the disability
is likely to be permanent. (d) Refunds of additional optional contributions shall be made on the
same basis and under the same conditions as provided under Section 7-166,
7-167 and 7-168. Interest shall be credited at the effective rate on the
same basis and under the same conditions as for other contributions. If an elected county officer fails to hold that same elected county
office for at least 8 years, he or she shall be entitled after leaving office
to receive a refund of the additional optional contributions made with respect
to that office, plus interest at the effective rate. (e) The plan of optional alternative benefits and contributions shall be
available to persons who are elected county officers and active contributors
to the Fund on or after November 15, 1994 and elected to establish alternative credit before the effective date of this amendatory Act of the 97th General Assembly. A person who was an elected county
officer and an active contributor to the Fund on November 15, 1994 but is
no longer an active contributor may apply to make additional optional
contributions under this Section at any time within 90 days after the
effective date of this amendatory Act of 1997; if the person is an annuitant,
the resulting increase in annuity shall begin to accrue on the first day of
the month following the month in which the required payment is received by the
Fund. (f) For the purposes of this Section and Section 7-145.2, the terms "elected
county officer" and "elected county office" include, but are not limited to:
(1) the county clerk, recorder, treasurer, coroner, assessor (if elected),
auditor, sheriff, and
State's Attorney; members of the county board; and the clerk of the circuit
court; and (2) a person who has been appointed to fill a vacancy in an
office that is normally filled by election on a countywide basis, for the
duration of his or her service in that office. The terms "elected county
officer" and "elected county office" do not include any officer or office of
a county that has not consented to the availability of benefits under this
Section and Section 7-145.2. (g) For the purposes of this Section and Section 7-145.2, the term
"salary" means the final rate of earnings for the elected county office held,
calculated in a manner consistent with Section 7-116, but for that office
only. If an elected county officer qualifies to have the formula in subsection
(b) applied to service in more than one elected county office, a separate
salary shall be calculated and applied with respect to each such office. (h) The changes to this Section made by this amendatory Act of the 91st
General Assembly apply to persons who first make an additional optional
contribution under this Section on or after the effective date of this
amendatory Act. (i) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate. (Source: P.A. 100-148, eff. 8-18-17.) |
(40 ILCS 5/7-145.2)
Sec. 7-145.2. Alternative survivor's benefits for survivors of county
officers.
In lieu of the survivor's benefits otherwise payable under this
Article, the spouse or eligible child of any deceased elected county
officer who (1) had elected to participate in the
Fund, and (2) was either making additional optional contributions in
accordance with Section 7-145.1 on the date of death, or was receiving
an annuity calculated under that Section at the time of death, may elect to
receive an annuity beginning on the date of the
elected county officer's death, provided that the spouse and officer must
have been married on the date of the last termination of his or her service
as an elected county officer and for a continuous period of at least one year
immediately preceding his or her death.
The annuity shall be payable beginning on the date of the elected
county officer's death if the spouse is then age 50 or over, or beginning
at age 50 if the age of the spouse is less than 50 years. If a minor
unmarried child or children of the county officer, under age 18, also
survive, and the child or children are under the care of the eligible
spouse, the annuity shall begin as of the date of death of the elected county
officer without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of retirement
annuity earned by the elected county officer on the date of death, subject to a
minimum payment of 10% of salary, provided that if an eligible spouse,
regardless of age, has in his or her care at the date of death of the
elected county officer any unmarried child or children of the county
officer, under age 18, the minimum annuity shall be 30% of the elected
officer's salary, plus 10% of salary on account of each minor child
of the elected county officer, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of the deceased
officer's salary. In the event there shall be no spouse
of the elected county officer surviving, or should a
spouse remarry or die while eligible minor children still survive the
elected county officer, each such child shall be entitled to an annuity
equal to 20% of salary of the elected officer subject to a combined total
payment on account of all such children not to exceed 50% of salary of the
elected county officer. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining a retirement
annuity as provided in Section 7-145.1.
Upon the death of an elected county officer occurring after termination
of service or while in receipt of a retirement annuity, the combined total
payment to a spouse and minor children, or to minor children alone if no
eligible spouse survives, shall be limited to 75% of the amount of
retirement annuity earned by the county officer.
Marriage of a child or attainment of age 18, whichever first occurs,
shall render the child ineligible for further consideration in the payment
of an annuity to a spouse or in the increase in the amount thereof. Upon
attainment of ineligibility of the youngest minor child of the elected
county officer, the annuity shall immediately revert to the amount payable
upon death of an elected county officer leaving no minor children surviving
him or her. If the spouse is under age 50 at such time, the annuity as
revised shall be deferred until such age is attained. Remarriage of a
widow or widower prior to attainment of age 55 shall disqualify the spouse
from the receipt of an annuity.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
Sec. 7-146. Temporary disability benefits - Eligibility. Temporary
disability benefits shall be payable to participating employees as
hereinafter provided.
(a) The participating employee shall be considered temporarily
disabled if:
1. He is unable to perform the duties of any position | ||
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2. The Board has received written certifications from | ||
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(b) A temporary disability benefit shall be payable to a temporarily
disabled employee provided:
1. He:
(i) has at least one year of service immediately | ||
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(ii) had qualified under clause (i) above, but | ||
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(iii) had qualified under clause (i) above, but | ||
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Item (iii) of this subdivision shall apply to all | ||
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Periods of qualified leave granted in compliance with | ||
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2. He has been temporarily disabled for at least 30 | ||
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3. He is receiving no earnings from a participating | ||
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4. He has not refused to submit to a reasonable | ||
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5. His disability is not the result of a mental or | ||
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6. He is not separated from the service of the | ||
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7. He has not failed or refused to consent to and | ||
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8. He has not failed or refused to provide complete | ||
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(Source: P.A. 101-151, eff. 7-26-19.)
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(40 ILCS 5/7-147) (from Ch. 108 1/2, par. 7-147)
Sec. 7-147.
Temporary disability benefits - Commencement and duration.
Temporary disability
benefits shall be payable:
(a) Upon receipt by the fund of a written application therefor. The
effective date may be not more than 6 months prior to the receipt by the
fund of the application. However, if an employee executes an application
and delay in filing is caused by negligence or fault of any officer or
employee of the applicant's municipality or participating instrumentality,
the effective date may be the later of 30 days prior to the date the
application is executed or one year prior to the date received by the fund.
(b) Once a month as of the end of each calendar month;
(c) For less than a month in a fraction equal to that created by making
the number of days of disability in the month the numerator and the number
of the days in the month the denominator;
(d) To the beneficiary of a deceased participating employee for the
unpaid amount accrued to the date of death;
(e) For a period ending on the last day of the month when the total
period during which temporary disability benefits are paid equals 1/2 of
the total period of service (excluding periods of disability) of the
employee as of the date of his disability or 30 months, whichever is the
lesser; provided that when a participating employee becomes disabled within
5 years of a previous period or periods of temporary or total and permanent
disability, temporary disability benefits shall be payable for a period not
to exceed the lesser of 30 months or a period computed as follows:
1. the lesser of 30 months or 1/2 of the total service preceding the
first period of disability within such 5-year period;
2. less the total amount of all periods of disability within said 5-year
period;
3. plus 1/2 of the total amount of service (excluding periods of
disability) subsequent to the first period of disability within such 5-year
period;
(f) while the temporary disability continues.
(Source: P.A. 86-272.)
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(40 ILCS 5/7-149) (from Ch. 108 1/2, par. 7-149)
Sec. 7-149.
Temporary disability benefits-Periodic checks.
The Board shall conduct periodic checks to determine if any
participating employee is disabled. Such checks may consist of periodic
examinations by a physician or physicians appointed by the Board, requiring
the employee to submit evidence of continuing disability and such other
investigations as the Board may deem appropriate. The following shall
constitute prima-facie evidence of termination of temporary disability:
(a) A written report by a physician appointed by the Board stating that
the temporary disability has ceased;
(b) The earning of compensation by the employee from any source for
personal services, in excess of 25% of the monthly rate of earnings upon
which his disability benefits are based.
(Source: Laws 1965, p. 1086.)
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(40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
Sec. 7-150. Total and permanent disability benefits - Eligibility. Total and permanent disability benefits shall be payable to
participating employees as hereinafter provided, including those
employees receiving disability benefit on July 1, 1962.
(a) A participating employee shall be considered totally and
permanently disabled if:
1. He is unable to engage in any gainful activity | ||
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2. The Board has received a written certification by | ||
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(b) A totally and permanently disabled employee is entitled to a
permanent disability benefit provided:
1. He has exhausted his temporary disability benefits.
2. He:
(i) has at least one year of service immediately | ||
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(ii) had qualified under clause (i) above, but | ||
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(iii) had qualified under clause (i) above, but | ||
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Item (iii) of this subdivision shall apply to all | ||
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Periods of qualified leave granted in compliance with | ||
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3. He is receiving no earnings from a participating | ||
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4. He has not refused to submit to a reasonable | ||
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5. His disability is not the result of a mental or | ||
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6. He is not separated from the service of his | ||
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7. He has not refused to apply for a disability | ||
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8. He has not failed or refused to consent to and | ||
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9. He has not failed or refused to provide complete | ||
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(c) A participating employee shall remain eligible and may make
application for a total and permanent disability benefit within 90 days
after the termination of his temporary disability benefits or within
such longer period terminating at the end of the period during which his
employing municipality is prevented from employing him by reason of any
statutory prohibition.
(Source: P.A. 101-151, eff. 7-26-19.)
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(40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151)
Sec. 7-151.
Total and permanent disability benefits - Commencement and
duration. Permanent disability benefits shall be payable:
(a) As of the date temporary disability benefits are exhausted;
(b) Once a month as of the end of each month;
(c) For less than a month in a fraction equal to that created by making
the number of days of disability in the month the numerator and the number
of the days in the month the denominator;
(d) To the beneficiary of a deceased employee for the unpaid amount
accrued to the date of death;
(e) While total and permanent disability
continues;
(f) For the period ending on the last day of the month which is the
later of the following:
1. the month that the participating employee attains | ||
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2. the month which is 5 years after the month the | ||
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(Source: P.A. 92-424, eff. 8-17-01.)
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(40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
Sec. 7-152.
Disability benefits - Amount.
The amount of the monthly
temporary and total and permanent disability benefits shall be 50% of the
participating employee's final rate of earnings on the date disability was
incurred, subject to the following adjustments:
(a) If the participating employee has a reduced rate of earnings at the
time his employment ceases because of disability, the rate of earnings shall
be computed on the basis of his last 12 month period of full-time employment.
(b) If the participating employee is eligible for a disability benefit
under the federal Social Security Act, the amount of monthly disability
benefits shall be reduced, but not to less than $10 a month, by the amount
he would be eligible to receive as a disability benefit under the federal
Social Security Act, whether or not because of service as a covered employee
under this Article. The reduction shall be effective as of the month the
employee is eligible for Social Security disability benefits. The Board
may make such reduction if it appears that the employee may be so eligible
pending determination of eligibility and make an appropriate adjustment
if necessary after such determination. If the employee, because of his
refusal to accept rehabilitation services under the federal Rehabilitation
Act of 1973 or the federal Social Security Act, or because he is receiving
workers' compensation benefits, has his Social Security benefits reduced or
terminated, the disability benefit shall be reduced as if the employee were
receiving his full Social Security disability benefit.
(c) If the employee (i) is over the age for a full Social Security
old-age insurance benefit, (ii) was not eligible for a Social
Security disability benefit immediately before reaching that age, and (iii) is eligible for a full Social Security old-age insurance
benefit, then the amount of the monthly disability benefit shall be
reduced, but not to less than $10 a month, by the amount of the old-age
insurance benefit to which the employee is entitled, whether or not the
employee applies for the Social Security old-age insurance benefit. This
reduction shall be made in the month after the month in which the employee
attains the age for a full Social Security old-age insurance benefit. However, if the employee was receiving a Social Security disability
benefit before reaching the age for a full Social Security old-age insurance
benefit, the disability benefits after that age
shall be determined under subsection (b) of this Section.
(d) The amount of disability benefits shall not be reduced by reason of
any increase, other than one resulting from a correction in the employee's
wage records, in the amount of disability or old-age insurance benefits
under the federal Social Security Act which takes effect after the month
of the initial reduction under paragraph (b) or (c) of this Section.
(e) If the employee in any month receives compensation from gainful
employment which is more than 25% of the final rate of earnings on which
his disability benefits are based, the temporary disability benefit payable
for that month shall be reduced by an amount equal to such excess.
(f) An employee who has been disabled for at least 30 days may return to
work for the employer on a part-time basis for a trial work period of up to
one year, during which the disability shall be deemed to continue. Service
credit shall continue to accrue and the disability benefit shall continue
to be paid during the trial work period, but the benefit shall be reduced
by the amount of earnings received by the disabled employee. Return to
service on a full-time basis shall terminate the trial work period. The
reduction under this subsection (f) shall be in lieu of the reduction, if
any, required under subsection (e).
(g) Beginning January 1, 1988, every total and permanent disability benefit
shall be increased by 3% of the original amount of the benefit, not
compounded, on each January 1 following the later of (1) the date the total
and permanent disability benefit begins, or (2) the date the total and
permanent disability benefit would have begun if the employee had been paid
a temporary disability benefit for 30 months.
(Source: P.A. 92-424, eff. 8-17-01.)
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(40 ILCS 5/7-153) (from Ch. 108 1/2, par. 7-153)
Sec. 7-153.
Total and permanent disability benefits; periodic checks.
The board shall conduct periodic checks to determine if participating
employees who are drawing a total permanent disability benefit remain
totally and permanently disabled. Such checks may consist of periodic
examination by a physician or physicians appointed by the board,
requiring the employee to submit evidence of continuing disability or
absence of gainful employment and such other investigations as the board
may deem appropriate. A written report by a physician appointed by the
board stating that the employee is no longer totally and permanently
disabled shall constitute prima-facie evidence of termination of total
and permanent disability, except as provided in subsection (f) of
Section 7-152.
(Source: P.A. 87-740.)
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(40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
Sec. 7-154. Surviving spouse annuities - Eligibility.
(a) A surviving spouse annuity shall be payable to the eligible
surviving spouse of a participating employee, an employee annuitant, or a
person who on the date of death would have been entitled to a retirement
annuity, had he applied for such annuity, and who dies at any time when a
surviving spouse annuity equals at least $5 per month, provided:
(1) The surviving spouse (i) was married to the | ||
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(2) The male deceased employee annuitant or such | ||
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(3) The female deceased employee annuitant or such | ||
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(4) If the employee dies before termination of | ||
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(b) If a person is the spouse of a retiring participating
employee on the date of the initial payment of a retirement annuity and is
qualified to receive a surviving spouse annuity upon the death of the
employee and the surviving spouse contributions are not refunded to the
employee, then a surviving spouse annuity shall be payable to that person
even if the marriage to the employee is dissolved after that date.
(c) Eligibility of a surviving spouse shall be determined as of the
date of death. Only one surviving spouse annuity shall be paid on
account of the death of any employee.
(Source: P.A. 99-682, eff. 7-29-16.)
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(40 ILCS 5/7-155) (from Ch. 108 1/2, par. 7-155)
Sec. 7-155. Surviving spouse annuities-commencement. (a) A surviving spouse annuity shall begin on the 1st day of the month
next following the month in which the participating employee, or the
employee annuitant or such person entitled to a retirement annuity died,
upon a written application therefor, provided:
1. Any such annuity payments payable for periods | ||
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2. The amount of surviving spouse annuity before the | ||
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(b) A person receiving a surviving spouse annuity whose annuity was granted but limited to one year prior to the application date under the former provisions of this Section may reapply for annuity payments for the period denied due to the one-year limitation. Such annuity payments shall not include interest based on late payment. (c) The changes to this Section made by this amendatory Act of the 99th General Assembly apply without regard to whether the deceased spouse was in service on or after the effective date of this amendatory Act. (Source: P.A. 99-580, eff. 7-15-16.)
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(40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
Sec. 7-156. Surviving spouse annuities - amount.
(a) The amount of surviving spouse annuity shall be:
1. Upon the death of an employee annuitant or such person entitled, upon
application, to a retirement annuity at date of death, (i) an amount equal
to 50% for a Tier 1 regular employee or 66 2/3% for a Tier 2 regular employee of the retirement annuity which was or would
have been payable exclusive of the amount so payable which was provided from
additional credits, and disregarding any election made under paragraph (b) of
Section 7-142, plus (ii) an annuity which could be provided at the then
attained age of the surviving spouse and under actuarial tables then in effect,
from the excess of the additional credits, (excluding any such credits used to
create a reversionary annuity) used to provide the annuity granted pursuant to
paragraph (a) (2) of Section 7-142 of this article over the total annuity
payments made pursuant thereto.
2. Upon the death of a participating employee on or after attainment of
age 55, an amount equal to 50% for a Tier 1 regular employee or 66 2/3% for a Tier 2 regular employee of the retirement annuity
which he could have had as of the date of death had he then retired and applied
for annuity, exclusive of the portion thereof which could have been provided
from additional credits, and disregarding paragraph (b) of Section 7-142,
plus an amount equal to the annuity which could be provided from the total
of his accumulated additional credits at date of death, on the basis of the
attained age of the surviving spouse on such date.
3. Upon the death of a participating employee before age 55, an amount equal
to 50% for a Tier 1 regular employee or 66 2/3% for a Tier 2 regular employee of the retirement annuity which he could have had
as of his attained age on the date of death, had he then retired and applied
for annuity, and the provisions of this Article that no such annuity shall
begin until the employee has attained at least age 55 were not applicable,
exclusive of the portion thereof which could have been provided from
additional credits and disregarding paragraph (b) of Section 7-142, plus an
amount equal to the annuity which could be provided from the total of his
accumulated additional credits at date of death, on the basis of the
attained age of the surviving spouse on such date.
In the case of the surviving spouse of a person who dies before June 1, 2006 (the
effective date of Public Act 94-712), if
the surviving spouse is more than 5 years younger than the deceased,
that portion of the annuity which is not based on additional credits shall
be reduced in the ratio of the value of a life annuity of $1 per year at an
age of 5 years less than the attained age of the deceased, at the earlier
of the date of the death or the date his retirement annuity begins, to the
value of a life annuity of $1 per year at the attained age of the surviving
spouse on such date, according to actuarial tables approved by the Board.
This reduction does not apply to the surviving spouse of a person who dies
on or after June 1, 2006 (the effective date of Public Act 94-712).
In computing the amount of a surviving spouse annuity, incremental increases
of retirement annuities to the date of death of the employee annuitant shall be
considered.
(b) If the employee was a Tier 1 regular employee, each surviving spouse annuity payable on January 1, 1988 shall be
increased on that date by 3% of the original amount of the annuity. Each
surviving spouse annuity that begins after January 1, 1988 shall be
increased on the January 1 next occurring after the annuity begins, by an
amount equal to (i) 3% of the original amount thereof if the deceased
employee was receiving a retirement annuity at the time of his death; otherwise
(ii) 0.25% of the original amount thereof for each complete
month which has elapsed since the date the annuity began.
On each January 1 after the date of the initial increase under this
subsection, each surviving spouse annuity shall be increased by 3% of the
originally granted amount of the annuity.
(c) If the participating employee was a Tier 2 regular employee, each surviving spouse annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the annuity. Such annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted surviving spouse annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. (Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
Sec. 7-157.
Surviving spouse annuities - marriage to terminate.
If a
surviving spouse annuitant marries before reaching age 55, the
annuity shall be terminated as of the end of the calendar month following the
month in which the marriage occurs, unless the marriage occurs after
December 31, 2000.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
Sec. 7-158.
Surviving spouse annuities - Options.
In lieu of the surviving
spouse annuity an eligible surviving spouse
shall have the option of receiving other benefits as follows:
1. The surviving spouse of a participating employee may elect to
receive either a single sum death benefit or a surviving spouse annuity
and the $3,000 death benefit provided in Sections 7-163 and 7-164.
2. The surviving spouse of an employee, who has separated from
service and would have been entitled to a retirement annuity on date of
death, may elect to receive either a single sum death benefit or a
surviving spouse annuity and the $3,000 death benefit provided in
Sections 7-163 and 7-164.
3. If any surviving spouse annuity is payable prior to the earliest age at
which the recipient will become eligible for a widows' or widowers' insurance
benefit under the Federal Social Security Act, the recipient may elect
that the annuity payments from this fund shall exceed those payable after
attaining such age by an amount not in excess of the estimated Social
Security Benefit, determined as of the effective date of the surviving
spouse annuity, provided that in no case shall the total annuity
payments made by this fund exceed in actuarial value the annuity which
would have been paid had no such election been made.
4. The surviving spouse of a participating employee, whose annuity
was suspended upon return to employment and who had one year or more of
service after his return, may apply the additional service credits to a
supplemental surviving spouse annuity and receive the $3,000 death
benefit or apply the additional service credits to a single sum death
benefit and forego the $3,000 death benefit payable upon the death of an
annuitant.
5. The surviving spouse of a participating employee, whose annuity
was suspended upon return to employment and who had less than one year
of service after his return, shall have the additional service credits
applied towards a supplemental surviving spouse annuity and shall
receive the $3,000 death benefit.
(Source: P.A. 85-941.)
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(40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
Sec. 7-159. Surviving spouse annuity - refund of survivor credits.
(a) Any employee annuitant who (1) upon the date a retirement annuity
begins is not then married, or (2) is married to a person who would not qualify
for surviving spouse annuity if the person died on such date, is entitled to a
refund of the survivor credits including interest accumulated on the date the
annuity begins, excluding survivor credits and interest thereon credited during
periods of disability, and no spouse shall have a right to any surviving spouse
annuity from this Fund. If the employee annuitant
reenters service and upon subsequent retirement has a spouse who would
qualify for a surviving spouse annuity, the employee annuitant may pay the
fund the amount of the refund plus interest at the effective rate at the
date of payment. The payment shall qualify the spouse for a surviving
spouse annuity and the amount paid shall be considered as survivor
contributions.
(b) Instead of a refund under subsection (a), the retiring employee may
elect to convert the amount of the refund into an annuity, payable
separately from the retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall be paid in a lump
sum to the designated beneficiary of the annuitant. The Board shall adopt any
rules necessary for the implementation of this subsection.
(c) An annuitant who retired prior to June 1, 2011 and received a refund of
survivor credits under subsection (a), and who thereafter became, and remains,
either: (1) a party to a civil union or a party to a legal | ||
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(2) a party to a marriage under the Illinois | ||
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(3) a party to a marriage, civil union or other legal | ||
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may, within a period of one year beginning 5 months after the effective date of this amendatory Act of the 99th General Assembly, make an election to re-establish rights to a
surviving spouse annuity under Sections 7-154 through 7-158 (notwithstanding
the eligibility requirements of paragraph (a)(1) of Section 7-154), by paying to the
Fund: (1) the total amount of the refund received for survivor credits; and (2)
interest thereon at the actuarially assumed rate of return from the date of the refund to the date of
payment. Such election must be made prior to the date of death of the annuitant. The Fund may allow the annuitant to repay this refund over a period of not more
than 24 months. To the extent permitted by the Internal Revenue Code of 1986, as amended, for federal and State tax purposes, if a member pays in monthly
installments by reducing the monthly benefit by the amount of the otherwise
applicable contribution, the monthly amount by which the annuitant's benefit is
reduced shall not be treated as a contribution by the annuitant but rather as a
reduction of the annuitant's monthly benefit. If an annuitant makes an election under this subsection (c) and the contributions
required are not paid in full, an otherwise qualifying spouse shall be given the
option to make an additional lump sum payment of the remaining contributions
and qualify for a surviving spouse annuity. Otherwise, an additional refund
representing contributions made hereunder shall be paid at the annuitant's death
and there shall be no surviving spouse annuity paid. (d) Any surviving spouse of an annuitant who (1) retired prior to June 1, 2011, (2) was not married on the date the retirement annuity began, (3) received a refund of survivor credits under subsection (a), and (4) died prior to the implementation of Public Act 99-682 on December 29, 2016 may, within a period of one year beginning 5 months after the effective date of this amendatory Act of the 101st General Assembly, make an election to re-establish rights to a surviving spouse annuity under Sections 7-154 through 7-158 (notwithstanding the eligibility requirements of paragraph (a) of subsection (1) of Section 7-154), by paying to the Fund: (i) the total amount of the refund received for survivor credits; and (ii) interest thereon at the actuarially assumed rate of return from the date of the refund to the date of payment. The surviving spouse must also provide documentation proving he or she was married to the annuitant or a party to a civil union with the annuitant at the time of death and has not subsequently remarried. This proof must include a marriage certificate or a certificate for a civil union and any other supporting documents deemed necessary by the Fund.(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/7-160) (from Ch. 108 1/2, par. 7-160)
Sec. 7-160. Child annuities-eligibility.
Child annuities shall be payable to each child of an employee annuitant
who dies with no surviving spouse and whose spouse would have been eligible
to receive a surviving spouse annuity, and each child of a deceased
employee whose surviving spouse dies and whose spouse, immediately prior to
death, was receiving or would have been eligible to receive, a surviving
spouse annuity, or who left no surviving spouse, is eligible to receive a
child annuity, provided:
a. The child is less than age 18 and unmarried;
b. The child is the natural born or legally adopted | ||
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c. (Blank).
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/7-161) (from Ch. 108 1/2, par. 7-161)
Sec. 7-161.
Child annuities-commencement.
A child annuity shall begin upon proper application therefor, on the
first day of the month following the month in which the survivor of his
parents has died, and shall continue until death, or until the first day of
the month coincidental with or next preceding the day the child attains age
18 or marries, whichever first occurs.
(Source: P.A. 77-2121.)
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(40 ILCS 5/7-162) (from Ch. 108 1/2, par. 7-162)
Sec. 7-162.
Child annuities-amount.
The amount of child annuities shall be:
1. The aggregate of all child annuities in an amount equal to the
surviving spouse annuity which the spouse of the employee was receiving, or
eligible to receive, immediately prior to death, or which the spouse of the
annuitant would have received if surviving;
2. The child annuity payable at any time to each eligible child shall be
an amount determined by dividing the aggregate amount of all child
annuities by the number of children then eligible to receive child
annuities.
(Source: P.A. 77-2121.)
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(40 ILCS 5/7-163) (from Ch. 108 1/2, par. 7-163)
Sec. 7-163.
Death benefits-eligibility.
Death benefits shall be payable as hereinafter set forth:
1. To the beneficiary defined in Section 7-118;
2. A death benefit shall be paid to the beneficiary as soon as
practicable after receipt by the board of:
a. A certified copy of the death certificate of the employee or
annuitant;
b. A written application of the beneficiary for such benefit.
(Source: P.A. 78-255.)
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(40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
Sec. 7-164.
Death benefits - Amount.
The amount of the death benefit
shall be:
1. Upon the death of an employee with at least one year of service
occurring while in an employment relationship (including employees
drawing disability benefits) with a participating municipality or
participating instrumentality, an amount equal to the sum of:
(a) The employee's normal, additional and survivor | ||
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(b) An amount equal to the employee's annual final | ||
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2. Upon the death of an employee with less than 1 year of service
occurring while in the service of any participating municipality or
instrumentality, an amount equal to the sum of his accumulated normal,
additional and survivor credits on the date of death, excluding those
credits and interest thereon allowed during periods of disability.
3. Upon the death of an employee who has separated from service and
was not entitled to a retirement annuity on the date of death, an amount
equal to the sum of his accumulated normal, survivor and additional
credits on the date of death excluding those credits and interest
thereon allowed during periods of disability.
4. Upon the death of an employee in an employment relationship, or
an employee who has service and was entitled to a retirement annuity on
the date of death, when a surviving spouse or child annuity is awarded,
$3,000.
5. Upon the death of an employee, who has separated from service and
was entitled to a retirement annuity on the date of death, and no
surviving spouse or child annuity is awarded, $3,000 plus an amount
equal to his accumulated normal, survivor and additional credits on the
date of death, excluding those credits and interest earned thereon
allowed during periods of disability.
6. Upon the death of an employee annuitant, $3,000 and, unless a
surviving spouse, child or reversionary annuity is payable, the sum of
(i) the excess of the normal and survivor credits, excluding those
allowed during periods of disability, which the annuitant had as of the
effective date of his annuity over the total annuities paid pursuant to
paragraph (a) 1 of Section 7-142 to the date of death, plus (ii) the
excess of the additional credits, excluding any such credits used to
create a reversionary annuity, used to provide the annuity granted
pursuant to paragraph (a) 2 of Section 7-142 over the total annuity
payments made pursuant thereto to the time of death.
7. Upon the death of an annuitant receiving a reversionary annuity
or of a person designated to receive a reversionary annuity prior to the
receipt of such annuity the sum of the additional credits of the person
creating the reversionary annuity as of the effective date of his own
retirement annuity over the reversionary annuity payments, if any, made
prior to the date of death of such annuitant or person designated to
receive the reversionary annuity.
8. Upon the death of an annuitant receiving a beneficiary annuity
which was effective before January 1, 1986,
the excess of the death benefit which was used to provide the annuity,
over the sum of all annuity payments made to the beneficiary.
Upon the death of an annuitant receiving a beneficiary annuity effective
January 1, 1986 or thereafter, the sum of (i) the excess of the normal and
survivor credits, excluding those allowed during periods of disability,
which the annuitant had as of the effective date of his annuity over the
total annuities paid pursuant to paragraph (c) of Section 7-165, to date of
death, plus (ii) the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to provide the annuity
granted pursuant to paragraph (d) of Section 7-165 over the total annuity
payments made pursuant thereto to the time of death.
9. Upon the marriage prior to reaching age 55 (except for a surviving
spouse who remarries after December 31, 2000) or death of a person receiving
a surviving spouse annuity, unless a child annuity is payable, the sum of (i)
the excess of the normal and survivor credits, excluding those credits and
interest thereon allowed during periods of disability, attributable to
the employee at the effective date of the annuity or date of death,
whichever first occurred, over the total of all annuity payments
attributable to paragraph (a) 1 of Section 7-142 made to the employee or
surviving spouse plus (ii) the excess of the additional credits,
excluding any such credits used to create a reversionary annuity or used
to provide the annuity attributable to paragraph (a) 2 of Section 7-142
over the total of such payments.
10. Upon the marriage, death or attainment of age 18 of a child
receiving a child annuity, if no other child annuities are payable, the
sum of (i) the excess of the normal and survivor credits excluding those
credits and interest thereon allowed during periods of disability, of
the employee at the effective date of the annuity or date of death,
whichever first occurred, over the total annuity payments attributable
to paragraph (a) 1 of Section 7-142 made to the employee, surviving
spouse and children plus (ii) the excess of the additional credits,
excluding any such credits used to create a reversionary annuity, used
to provide the annuity attributable to paragraph (a) 2 of Section 7-142
over the total annuity payments made to the employee, surviving spouse
and children, pursuant thereto.
11. Upon the death of the participating employee whose annuity was
suspended upon his return to employment:
a. If a surviving spouse or child annuity is awarded, | ||
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b. If no surviving spouse or child annuity is awarded | ||
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c. If no surviving spouse or child annuity is awarded | ||
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12. The $3,000 death benefit provided in paragraphs 4 and 6 shall
not be payable to beneficiaries of persons who terminated service prior
to September 8, 1971, unless the payment or agreement for payment
provided by Section 7-144.2 of this Article is made prior to the date of
death.
13. The increase in certain death benefits from $1,000 to $3,000
provided by this amendatory Act of 1987 shall apply only to deaths
occurring on or after January 1, 1988.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/7-165) (from Ch. 108 1/2, par. 7-165)
Sec. 7-165.
Beneficiary annuities.
(a) The beneficiary entitled to a death benefit under paragraph 1, 2 or 3
of Section 7-164 may elect to receive the benefit in the form of an annuity
for life, if the death benefit will provide an immediate annuity of at
least $10 per month.
(b) When a death benefit is payable in the form of an annuity, the
annuity shall begin on the first day of the month following the month of
death of the employee or annuitant;
(c) The amount of beneficiary annuity shall be that which can be
provided from the death benefit under actuarial tables adopted by the
Board.
(d) If a deceased participating employee has additional credits, the
beneficiary may elect to receive an annuity for life in an amount which can
be provided therefrom under actuarial tables adopted by the Board, provided
the annuity would be at least $10 per month.
(Source: P.A. 85-941.)
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(40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
Sec. 7-166. Separation benefits - eligibility. Separation benefits
shall be payable as hereinafter set forth:
1. Upon separation from the service of all | ||
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2. Upon separation from the service of all | ||
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3. Upon separation from the service of all | ||
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(Source: P.A. 99-747, eff. 1-1-17.)
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(40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
Sec. 7-167.
Separation benefits - Payment.
Separation benefits shall be paid
in the form of a single cash sum as soon as practicable after receipt by the
board of:
1. a written application by the employee for such | ||
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2. written notice from the last employing | ||
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(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/7-168) (from Ch. 108 1/2, par. 7-168)
Sec. 7-168.
Separation benefits - Amount.
The amount of the separation benefits shall be the sum of the employee's
accumulated normal, survivor and additional contributions.
(Source: P.A. 87-740.)
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(40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
Sec. 7-169. Separation benefits; repayments.
(a) If an employee who has
received a separation benefit subsequently becomes a participating employee,
and renders at least 2 years of contributing service from the date of such
re-entry, he may pay to the fund the amount of the separation benefit, plus
interest at the effective rate for each year from the date of payment of the
separation benefit to the date of repayment. Upon payment his creditable
service shall be reinstated and the payment shall be credited to his account
as normal contributions. Application must be received by the Board while the employee is an active participant in the Fund or a reciprocal retirement system. Payment must be received while the member is an active participant, except that one payment will be permitted after termination of participation in the Fund or a reciprocal retirement system.
(b) Beginning July 1, 2004, the requirement of
returning to service for at least 2 years does not apply to persons who return
to service as a sheriff's law enforcement employee. This subsection applies only to persons in service on or after July 1, 2004. In the case of such a person who begins to receive a retirement annuity before the effective date of this amendatory Act of the 94th General Assembly, the annuity shall be recalculated prospectively to reflect any credits reinstated as a result of this subsection, with the resulting increase in annuity beginning to accrue on the first annuity payment date following the effective date of this amendatory Act, but not earlier than the date the repayment is received by the Fund.
(Source: P.A. 100-148, eff. 8-18-17.)
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(40 ILCS 5/7-169.1) (from Ch. 108 1/2, par. 7-169.1)
Sec. 7-169.1.
Repayment of refund obtained from superseded funds.
An employee who received a refund of deductions from the Illinois
Municipal Public Utility Employees' Annuity and Benefit Fund,
and subsequently becomes a participating employee under this Article and
renders two years of contributing service, may pay to the Fund the amount
of the refund, including any interest received, plus interest at the
effective rate for each year from the date of payment of the refund to
the date of repayment. Upon payment, his
service under the Illinois Municipal Public Utility Employees' Annuity
and Benefit Fund shall be established as creditable service under this
Article and the payment shall be credited as normal contributions to his
account.
(Source: P.A. 84-1028.)
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(40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
Sec. 7-170. Federal Social Security coverage. (a) It is declared to be the policy and purpose to extend to covered
employees as defined in Section 7-138, the benefits of the Federal Old
Age and Survivors Insurance System as authorized by the Federal Social
Security Act and amendments thereto. To effect this, the board shall
take such action as may be required by applicable State and Federal laws
or regulations.
(b) The board shall execute an agreement with the State Agency to
secure coverage of covered employees as provided in paragraph (a) of
this section.
(c) Each participating municipality and each participating instrumentality
shall remit payment of contributions for Social Security purposes on behalf
of covered employees and covered municipalities and participating
instrumentalities
as required by applicable State and federal laws and regulations.
(d) Contributions of covered employees for Federal
Social Security purposes shall be paid in such
amounts and at such time as required by applicable State and federal laws and regulations.
(e) (Blank).
(f) The board shall maintain such records and submit such reports as may
be required by applicable State and Federal laws or regulations.
(Source: P.A. 96-1084, eff. 7-16-10; 97-933, eff. 8-10-12.)
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(40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
Sec. 7-171. Finance; taxes.
(a) Each municipality other than a school district shall
appropriate an amount sufficient to provide for the current
municipality contributions required by Section 7-172 of
this Article, for the fiscal year for which the appropriation is made
and all amounts due for municipal contributions for previous years.
Those municipalities which have been assessed an annual amount to
amortize its unfunded obligation, as provided in subparagraph 4 of
paragraph (a) of Section 7-172 of this Article, shall include in the
appropriation an amount sufficient to pay the amount assessed. The
appropriation shall be based upon an estimate of assets available for
municipality contributions and liabilities therefor for the fiscal year
for which appropriations are to be made, including funds available from
levies for this purpose in prior years.
(b) For the purpose of providing monies for municipality
contributions, beginning for the year in which a municipality is
included in this fund:
(1) A municipality other than a school district may | ||
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(2) A school district may levy a tax in an amount | ||
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(c) Any county which is served by a regional office of education that
serves 2 or more
counties may include in its
appropriation an amount sufficient to provide its proportionate share of the
municipality contributions for that regional office of education. The tax levy authorized by this Section may include an amount
necessary to provide monies for this contribution.
(d) Any county that is a part of a multiple-county health department
or consolidated health department which is formed under "An Act in
relation to the establishment and maintenance of county and
multiple-county public health departments", approved July 9, 1943, as
amended, and which is a participating instrumentality may include in the
county's appropriation an amount sufficient to provide its proportionate
share of municipality contributions of the department. The tax levy
authorized by this Section may include the amount necessary to provide
monies for this contribution.
(d-5) A school district participating in a special education joint
agreement created under Section 10-22.31 of the School Code that is a
participating instrumentality may include in the school district's
tax levy under this Section an amount sufficient to provide its
proportionate share of the municipality contributions for current and prior
service by employees of the participating instrumentality created under the
joint agreement.
(e) Such tax shall be levied and collected in like manner, with the
general taxes of the municipality and shall be in addition to all other
taxes which the municipality is now or may hereafter be authorized to
levy upon all taxable property therein, and shall be exclusive of and in
addition to the amount of tax levied for general purposes under Section
8-3-1 of the "Illinois Municipal Code", approved May 29, 1961, as
amended, or under any other law or laws which may limit the amount of
tax which the municipality may levy for general purposes. The tax may
be levied by the governing body of the municipality without being
authorized as being additional to all other taxes by a vote of the
people of the municipality.
(f) The county clerk of the county in which any such municipality is
located, in reducing tax levies shall not consider any such tax as a
part of the general tax levy for municipality purposes, and shall not
include the same in the limitation of any other tax rate which may be
extended.
(g) The amount of the tax to be levied in any year shall, within the
limits herein prescribed, be determined by the governing body of the
respective municipality.
(h) The revenue derived from any such tax levy shall be used only
for the contributions required under Section 7-172 and, as collected, shall be
paid to the treasurer of the municipality levying the tax. Monies
received by a county treasurer for use in making contributions to a regional
office of education for its
municipality contributions shall be held by him for that purpose and paid to
the regional office of education in the same manner as other
monies appropriated for the expense of the regional office.
(Source: P.A. 96-1084, eff. 7-16-10; 97-933, eff. 8-10-12.)
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(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
Sec. 7-172. Contributions by participating municipalities and
participating instrumentalities.
(a) Each participating municipality and each participating
instrumentality shall make payment to the fund as follows:
1. municipality contributions in an amount determined | ||
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2. an amount equal to the employee contributions | ||
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3. all accounts receivable, together with interest | ||
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4. if it has no participating employees with current | ||
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5. if it has fewer than 7 participating employees or | ||
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(b) A separate municipality contribution rate shall be determined
for each calendar year for all participating municipalities together
with all instrumentalities thereof. The municipality contribution rate
shall be determined for participating instrumentalities as if they were
participating municipalities. The municipality contribution rate shall
be the sum of the following percentages:
1. The percentage of earnings of all the | ||
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2. The percentage of earnings of the participating | ||
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3. The percentage of earnings of the participating | ||
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4. The percentage of earnings of the participating | ||
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5. The percentage of earnings necessary to meet any | ||
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(c) A separate municipality contribution rate shall be computed for
each participating municipality or participating instrumentality
for its sheriff's law enforcement employees.
A separate municipality contribution rate shall be computed for the
sheriff's law enforcement employees of each forest preserve district that
elects to have such employees. For the period from January 1, 1986 to
December 31, 1986, such rate shall be the forest preserve district's regular
rate plus 2%.
In the event that the Board determines that there is an actuarial
deficiency in the account of any municipality with respect to a person who
has elected to participate in the Fund under Section 3-109.1 of this Code,
the Board may adjust the municipality's contribution rate so as to make up
that deficiency over such reasonable period of time as the Board may determine.
(d) The Board may establish a separate municipality contribution
rate for all employees who are program participants employed under the
federal Comprehensive Employment Training Act by all of the
participating municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for these
employees, a portion of the municipality contributions for such program
participants shall be refunded or an extra charge assessed so that the
amount of municipality contributions retained or received by the fund
for all CETA program participants shall be an amount equal to that which
would be provided by the separate municipality contribution rate for all
such program participants. Refunds shall be made to prime sponsors of
programs upon submission of a claim therefor and extra charges shall be
assessed to participating municipalities and instrumentalities. In
establishing the municipality contribution rate as provided in paragraph
(b) of this Section, the use of a separate municipality contribution
rate for program participants or the refund of a portion of the
municipality contributions, as the case may be, may be considered.
(e) Computations of municipality contribution rates for the
following calendar year shall be made prior to the beginning of each
year, from the information available at the time the computations are
made, and on the assumption that the employees in each participating
municipality or participating instrumentality at such time will continue
in service until the end of such calendar year at their respective rates
of earnings at such time.
(f) Any municipality which is the recipient of State allocations
representing that municipality's contributions for retirement annuity
purposes on behalf of its employees as provided in Section 12-21.16 of
the Illinois Public Aid Code shall pay the allocations so
received to the Board for such purpose. Estimates of State allocations to
be received during any taxable year shall be considered in the
determination of the municipality's tax rate for that year under Section
7-171. If a special tax is levied under Section 7-171, none of the
proceeds may be used to reimburse the municipality for the amount of State
allocations received and paid to the Board. Any multiple-county or
consolidated health department which receives contributions from a county
under Section 11.2 of "An Act in relation to establishment and maintenance
of county and multiple-county health departments", approved July 9, 1943,
as amended, or distributions under Section 3 of the Department of Public
Health Act, shall use these only for municipality contributions by the
health department.
(g) Municipality contributions for the several purposes specified
shall, for township treasurers and employees in the offices of the
township treasurers who meet the qualifying conditions for coverage
hereunder, be allocated among the several school districts and parts of
school districts serviced by such treasurers and employees in the
proportion which the amount of school funds of each district or part of
a district handled by the treasurer bears to the total amount of all
school funds handled by the treasurer.
From the funds subject to allocation among districts and parts of
districts pursuant to the School Code, the trustees shall withhold the
proportionate share of the liability for municipality contributions imposed
upon such districts by this Section, in respect to such township treasurers
and employees and remit the same to the Board.
The municipality contribution rate for an educational service center shall
initially be the same rate for each year as the regional office of
education or school district
which serves as its administrative agent. When actuarial data become
available, a separate rate shall be established as provided in subparagraph
(i) of this Section.
The municipality contribution rate for a public agency, other than a
vocational education cooperative, formed under the Intergovernmental
Cooperation Act shall initially be the average rate for the municipalities
which are parties to the intergovernmental agreement. When actuarial data
become available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
(h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts provided in
this Section in the manner prescribed from time to time by the Board and
all such contributions shall be obligations of the respective
participating municipalities and participating instrumentalities to this
fund. The failure to deduct any employee contributions shall not
relieve the participating municipality or participating instrumentality
of its obligation to this fund. Delinquent payments of contributions
due under this Section may, with interest, be recovered by civil action
against the participating municipalities or participating
instrumentalities. Municipality contributions, other than the amount
necessary for employee contributions, for
periods of service by employees from whose earnings no deductions were made
for employee contributions to the fund, may be charged to the municipality
reserve for the municipality or participating instrumentality.
(i) Contributions by participating instrumentalities shall be
determined as provided herein except that the percentage derived under
subparagraph 2 of paragraph (b) of this Section, and the amount payable
under subparagraph 4 of paragraph (a) of this Section, shall be based on
an amortization period of 10 years.
(j) Notwithstanding the other provisions of this Section, the additional unfunded liability accruing as a result of Public Act 94-712
shall be amortized over a period of 30 years beginning on January 1 of the
second calendar year following the calendar year in which Public Act 94-712 takes effect, except that the employer may provide for a longer amortization period by adopting a resolution or ordinance specifying a 35-year or 40-year period and submitting a certified copy of the ordinance or resolution to the fund no later than June 1 of the calendar year following the calendar year in which Public Act 94-712 takes effect.
(k) If the amount of a participating employee's reported earnings for any of the 12-month periods used to determine the final rate of earnings exceeds the employee's 12-month reported earnings with the same employer for the previous year by the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as established by the United States Department of Labor for the preceding September, the participating municipality or participating instrumentality that paid those earnings shall pay to the Fund, in addition to any other contributions required under this Article, the present value of the increase in the pension resulting from the portion of the increase in reported earnings that is in excess of the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as determined by the Fund. This present value shall be computed on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the Fund that is available at the time of the computation. Whenever it determines that a payment is or may be required under this subsection (k), the fund shall calculate the amount of the payment and bill the participating municipality or participating instrumentality for that amount. The bill shall specify the calculations used to determine the amount due. If the participating municipality or participating instrumentality disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the fund in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the fund shall review the application and, if appropriate, recalculate the amount due.
The participating municipality and participating instrumentality contributions required under this subsection (k) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the participating municipality and participating instrumentality contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the fund's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after receipt of the bill by the participating municipality or participating instrumentality. When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from overload or overtime earnings. When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from payments for unused vacation time, but only for payments for unused vacation time made in the final 3 months of the final rate of earnings period. When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings increases attributable to standard employment promotions resulting in increased responsibility and workload. When assessing payment for any amount due under this subsection (k), the fund shall exclude reportable earnings increases resulting from periods where the member was paid through workers' compensation. This subsection (k) does not apply to earnings increases due to amounts paid as required by federal or State law or court mandate or to earnings increases due to the participating employee returning to the regular number of hours worked after having a temporary reduction in the number of hours worked. This subsection (k) does not apply to earnings increases paid to individuals under contracts or collective bargaining agreements entered into, amended, or renewed before January 1, 2012 (the effective date of Public Act 97-609), earnings increases paid to members who are 10 years or more from retirement eligibility, or earnings increases resulting from an increase in the number of hours required to be worked. When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings attributable to personnel policies adopted before January 1, 2012 (the effective date of Public Act 97-609) as long as those policies are not applicable to employees who begin service on or after January 1, 2012 (the effective date of Public Act 97-609). The change made to this Section by Public Act 100-139 is a clarification of existing law and is intended to be retroactive to January 1, 2012 (the effective date of Public Act 97-609). (Source: P.A. 102-849, eff. 5-13-22; 103-464, eff. 8-4-23.)
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(40 ILCS 5/7-172.1) (from Ch. 108 1/2, par. 7-172.1)
Sec. 7-172.1. Actions to enforce payments by municipalities and
instrumentalities. (a) If any participating municipality or participating
instrumentality fails to transmit to the Fund contributions required of it
under this Article or contributions collected by it from its participating
employees for the purposes of this Article for more than
60 days after the payment of such contributions is due, the Fund, after
giving notice to such municipality or instrumentality, may certify to
the State Comptroller the amounts of such delinquent payments in accordance with any applicable rules of the Comptroller, and the
Comptroller shall deduct the amounts so certified or any part thereof
from any payments of State funds to the municipality or instrumentality
involved and shall remit the amount so deducted to the Fund. If State
funds from which such deductions may be made are not available, the Fund
may proceed against the municipality or instrumentality to recover the
amounts of such delinquent payments in the appropriate circuit court.
(b) If any participating municipality fails to transmit to the Fund
contributions required of it under this Article or contributions collected
by it from its participating employees for the purposes of this Article for
more than 60 days after the payment of such contributions is due, the Fund,
after giving notice to such municipality, may certify the fact of such
delinquent payment to the county treasurer of the county in which such
municipality is located, who shall thereafter remit the amounts collected
from the tax levied by the municipality under Section 7-171 directly to
the Fund.
(c) If reports furnished to the Fund by the municipality or
instrumentality involved are inadequate for the computation of the
amounts of such delinquent payments, the Fund may provide for such audit
of the records of the municipality or instrumentality as may be required
to establish the amounts of such delinquent payments. The municipality
or instrumentality shall make its records available to the Fund for the
purpose of such audit. The cost of such audit shall be added to the
amount of the delinquent payments and shall be recovered by the Fund
from the municipality or instrumentality at the same time and in the
same manner as the delinquent payments are recovered.
(Source: P.A. 99-8, eff. 7-9-15; 99-239, eff. 8-3-15; 99-642, eff. 7-28-16.)
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(40 ILCS 5/7-172.2) (from Ch. 108 1/2, par. 7-172.2)
Sec. 7-172.2.
In addition to the payments otherwise required by this
Article, each participating municipality and each participating
instrumentality shall make payment of Social Security contributions and
medicare taxes in the amounts and in the manner provided by law. Each employee shall make contributions for Federal Social Security and medicare taxes, for periods during which he or she is a covered employee, as required by the Social Security Enabling Act and State and federal law.
(Source: P.A. 97-933, eff. 8-10-12.)
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(40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
Sec. 7-173. Contributions by employees.
(a) Each participating employee shall make contributions to the fund as
follows:
1. For retirement annuity purposes, normal | ||
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2. Additional contributions of such percentages of | ||
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3. Survivor contributions, by each participating | ||
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(b) (Blank).
(c) Contributions shall be deducted from each corresponding payment
of earnings paid to each employee and shall be remitted to the board by
the participating municipality or participating instrumentality making
such payment. The remittance, together with a report of the earnings
and contributions shall be made as directed by the board. For township
treasurers and employees of township treasurers qualifying as employees
hereunder, the contributions herein required as deductions from salary
shall be withheld by the school township trustees from funds available
for the payment of the compensation of such treasurers and employees as
provided in the School Code and remitted to the board.
(d) An employee who has made additional contributions under
paragraph (a)2 of this Section may upon retirement or at any time prior
thereto, elect to withdraw the total of such additional contributions
including interest credited thereon to the end of the preceding calendar
year, to the extent permitted by the federal Internal Revenue Code of 1986, as now or hereafter amended.
(e) Failure to make the deductions for employee contributions
provided in paragraph (c) of this Section shall not relieve the employee
from liability for such contributions. The amount of such liability may
be deducted, with interest charged under Section 7-209, from any
annuities or benefits payable hereunder to the employee or any other
person receiving an annuity or benefit by reason of such employee's
participation.
(f) A participating employee who has at least 40 years of creditable
service in the Fund may elect to cease making the contributions required
under this Section. The status of the employee under this Article shall be
unaffected by this election, except that the employee shall not receive any
additional creditable service for the periods of employment following the
election. An election under this subsection relieves the employer from
making additional employer contributions in relation to that employee.
(Source: P.A. 97-333, eff. 8-12-11; 97-933, eff. 8-10-12; 98-218, eff. 8-9-13.)
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(40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
Sec. 7-173.1. Additional contribution by sheriff's law enforcement
employees.
(a) Each sheriff's law enforcement employee shall make an additional
contribution of 1% of earnings, which shall be considered as normal
contributions. For earnings on or after July 1, 1988, the additional
contribution shall be 2% of earnings. For earnings on or after the effective date of this amendatory Act of the 94th General Assembly, the additional contribution shall be 3% of earnings; this increase
is intended to defray the employee's portion of the cost of the benefit
increases provided by this amendatory Act of the 94th General Assembly.
This additional contribution shall be payable for retroactive service periods
which the employee elects to establish and to periods of authorized leave of
absence.
(b) If the employee is awarded a retirement annuity under Section
7-142 and not under Section 7-142.1, then the additional contribution required
under this Section shall be refunded with interest or paid as provided in
subsection (c). If the employee returns to a participating status as a
sheriff's law enforcement employee, the employee may repay the amount refunded
with interest and upon subsequent retirement be entitled to a recomputation of
the retirement annuity under Section 7-142.1 if the total service as a
sheriff's law enforcement employee meets the requirements of that Section.
(c) Instead of a refund under subsection (b), the retiring employee may
elect to convert the amount of the refund into an annuity, payable
separately from the retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall be paid in a lump
sum to the designated beneficiary of the annuitant. The Board shall adopt any
rules necessary for the implementation of this subsection.
(Source: P.A. 94-712, eff. 6-1-06.)
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(40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
Sec. 7-173.2.
Pickup of employee contributions.
(a) Until July 1, 1984, each participating municipality and each
participating instrumentality may elect, for all of its employees, to pick up
the employee contributions required by subparagraphs 1 and 3 of subsection (a)
of Section 7-173 and, in the case of sheriff's law enforcement employees,
required by Section 7-173.1. The pick up may be for employee contributions on
earnings received by employees after December 31, 1981 and shall be applicable
to the contributions on total earnings paid in any month. The decision to pick
up contributions shall be made by the governing body.
Beginning July 1, 1984, the pick up of employee contributions shall cease to
be optional. Each participating municipality and participating instrumentality
shall pick up the employee contributions required by subparagraphs 1 and 3 of
subsection (a) of Section 7-173 and, in the case of sheriff's law enforcement
employees, contributions required by Section 7-173.1, for all compensation
earned after such date.
(b) Contributions that are picked up shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code. The employee contribution shall be paid from the same source
of funds as is used in payment of earnings to the employee and may not be
paid from funds raised by the tax levy authorized by Section 7-171. The
contributions shall be picked up by a reduction in earnings payment to
employees. Employee contributions that are picked up shall be considered as
earnings under Section 7-114. If a participating municipality or
participating instrumentality fails to report participating employee earnings
which should have been reported to the fund and pays the employee the full
amount of earnings including employee contributions which should have been
picked up and forwarded to the fund, then the employee shall make payment of
the employee contributions to the fund on behalf of employer and such
contributions shall be considered as picked up contributions
if paid in the year the earnings were received, or by January 31st of the
following year, and are reflected as picked up on reports to the Internal
Revenue Service. If they cannot be so reflected, or if received after that
date, they shall not be treated as picked up contributions. Picked up employee
contributions shall be considered as employee contributions in computing
benefits paid under this Article 7.
(c) Subject to the requirements of federal law, an employee may elect to
have the employer pick up optional contributions that the employee has elected
to pay to the Fund, and the contributions so picked up shall be treated as
employer contributions for the purposes of determining federal tax treatment.
The employer shall pick up the contributions by a reduction in the cash salary
of the employee and shall pay the contributions from the same source of funds
that is used to pay earnings to the employee. The employee's election to have
the optional contributions picked up is irrevocable and the optional
contributions may not thereafter be prepaid, by direct payment or otherwise.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
Sec. 7-174. Board created.
(a) A board of 8 members shall
constitute a board of trustees authorized to carry out the provisions of
this Article. Each trustee shall be a participating employee of a
participating municipality or participating instrumentality or an annuitant
of the Fund and no person shall be eligible to become a trustee after January
1, 1979 who does not have the minimum service credit in this Fund to qualify for a pension.
(b) The board shall consist of representatives of various groups as
follows:
1. 4 trustees shall be a chief executive officer, | ||
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2. 3 trustees shall be employees of a participating | ||
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3. One trustee shall be an annuitant of the Fund, who | ||
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(c) A person elected as a trustee shall qualify as a trustee, after
declaration by the board that he has been duly elected, upon taking and
subscribing to the constitutional oath of office and filing same in the
office of the Fund.
(d) The term of office of each trustee shall begin upon January 1 of
the year following the year in which he is elected and shall continue
for a period of 5 years and until a successor has been elected and
qualified, or until prior resignation, death, incapacity or
disqualification.
(e) Any elected trustee (other than the annuitant trustee) shall be
disqualified immediately upon termination of employment with all participating
municipalities and instrumentalities thereof or upon any change in status which
removes any such trustee from all employments within the group he represents.
The annuitant trustee shall be disqualified upon termination of his or her
annuity.
(e-5) Notwithstanding any other provision, an elected trustee shall not be considered disqualified due to termination of participation under subsection (e) if: (1) he or she thereafter begins participation with | ||
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(2) there is no gap in service credit established | ||
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(3) the trustee continues to meet all eligibility | ||
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(f) The trustees shall fill any vacancy in the board by appointment,
for the period until the next election of trustees, or, if the remaining
term is less than 2 years, for the remainder of the term, and until his
successor has been elected and qualified.
(g) Trustees shall serve without compensation, but shall be
reimbursed for any reasonable expenses incurred in attending meetings of
the board and in performing duties on behalf of the Fund and for the
amount of any earnings withheld by any employing municipality or
participating instrumentality because of attendance at any board
meeting.
(h) Each trustee shall be entitled to
one vote on any and all actions before the board. At least 5 concurring votes
shall be necessary for every decision or action by the board at any of its
meetings. No decision or action shall become effective unless presented and so
approved at a regular or duly called special meeting of the board.
(Source: P.A. 102-479, eff. 8-20-21; 103-464, eff. 8-4-23.)
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(40 ILCS 5/7-174.5) Sec. 7-174.5. Leaves of absence for trustees. Each participating municipality or instrumentality that employs an employee who is an elected trustee shall make available to the elected trustee at least 20 days of paid leave of absence per year for the purpose of attending meetings of the Board of Trustees, committee meetings of the Board of Trustees, and seminars regarding issues for which the Board of Trustees is responsible. The Fund may reimburse affected participating municipalities and instrumentalities for the actual cost of hiring a substitute employee during such leaves of absence.
(Source: P.A. 102-943, eff. 1-1-23.) |
(40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)
Sec. 7-175. Board elections.
(a) During the period beginning on August 1 and ending on September 15
of each year the board shall accept nominations of candidates for election
to the trusteeships for terms beginning the next January 1, new
trusteeships or vacancies to be filled by election.
(b) All nominations shall be by petition. Three petitions for an
executive trustee shall be signed by governing bodies of contributing
participating municipalities or instrumentalities.
A petition for an
employee trustee shall be signed by at least 350 participating employees
who were participants during July of the current year and who, if their
employment status remained unchanged, would be eligible to vote for such
candidate at the following election.
A petition for an annuitant trustee shall be signed by at least 100 persons
who were annuitants of the Fund during July of the current year and who, if
their annuitant status remains unchanged, would be eligible to vote for the
candidate at the following election.
(c) A separate ballot shall be used for each class of trustee and the
names of all candidates properly nominated in petitions received by the
board shall be placed in alphabetical order upon the proper ballot. Where
two employee trustees are elected to a full term in the same year, there
shall be one election for the two trusteeships and the two candidates
getting the highest number of votes shall be elected.
(d) At any election, each contributing participating municipality and
participating instrumentality and each contributing participating employee
employed by such participating municipality or participating
instrumentality during September of any year, shall be entitled to vote as
follows:
1. The governing body of each such participating | ||
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2. Each participating employee shall have one vote at | ||
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3. Each annuitant of the Fund shall have one vote at | ||
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4. A vote may be cast for a person not on the ballot | ||
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(e) The election shall be by ballot pursuant to the rules and
regulations established by the board and shall be completed by December 31
of the year. The results shall be entered in the minutes of the meeting of
the board following the tally of votes.
(f) In case of a tie vote, the candidate employed by or retired from the
participating municipality or participating instrumentality having the greatest
number of participating employees at the time shall be elected.
(g) Notwithstanding any other provision of this Article, if only one candidate is properly nominated in petitions received by the Board, that candidate shall be deemed the winner. In the case of 2 employee trustees elected to a full term in the same year, if only 2 candidates are properly nominated in petitions received by the Board, those 2 candidates shall both be deemed winners. If a candidate is deemed a winner under this paragraph, no election under this Section or Section 7-175.1 shall be required. (Source: P.A. 98-932, eff. 8-15-14.)
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(40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)
Sec. 7-175.1. Election of employee and annuitant trustees.
(a) The board shall prepare and send ballots and ballot envelopes to the
employees and annuitants eligible to vote as of September of that
year. The ballots shall contain the names of all candidates in alphabetical
order and an appropriate place where a name may be written in on
the ballot.
The ballot envelope shall have on the outside a form of certificate stating
that the person voting the ballot is a participating employee or annuitant
entitled to vote.
(b) Employees and annuitants, upon receipt of the ballot, shall vote the
ballot and place it in the ballot envelope, seal the envelope, execute the
certificate thereon and return the ballot to the Fund.
(c) The board shall set a final date for ballot return, and ballots
received prior to that date in a ballot envelope with a
properly executed certificate and properly voted, shall be valid ballots.
(d) The board shall set a day for counting the ballots and
name judges and clerks of election to conduct the count of ballots, and shall
make any rules and regulations necessary for the conduct of the
count.
(e) No election under this Section shall be required if a candidate is deemed the winner under subsection (g) of Section 7-175. (f) Nothing in this Section shall preclude the Board from adopting rules that provide for Internet balloting or phone balloting in addition to election by mail under this Section. An Internet or phone ballot cast in accordance with rules adopted under this subsection shall be a valid ballot. (Source: P.A. 100-935, eff. 1-1-19.)
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(40 ILCS 5/7-176) (from Ch. 108 1/2, par. 7-176)
Sec. 7-176.
Board officers.
The board shall elect from its members a president, vice president and
secretary, to serve at the board's pleasure. They shall perform the duties
designated by the board and serve without compensation.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-177) (from Ch. 108 1/2, par. 7-177)
Sec. 7-177. Board meetings.
The board shall hold regular meetings at least 4 times in each year and such special meetings
at such other times as may be called by the executive director upon written
notice of at least 3 trustees. At least 5 days' notice of each meeting
shall be given to each trustee. All meetings of the board shall be open to
the public and shall be held in the offices of the board or in any other
place specifically designated in the notice of any meeting.
(Source: P.A. 98-218, eff. 8-9-13.)
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(40 ILCS 5/7-178) (from Ch. 108 1/2, par. 7-178)
Sec. 7-178.
Board powers and duties.
The board shall have the powers and duties stated in Sections 7-179 to
7-200, inclusive, in addition to such other powers and duties provided in
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-179) (from Ch. 108 1/2, par. 7-179)
Sec. 7-179.
To authorize and suspend annuities.
To authorize or suspend the payment of any annuity or benefit in
accordance with this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-180) (from Ch. 108 1/2, par. 7-180)
Sec. 7-180.
To prepare and approve budget.
To prepare and approve, prior to the beginning of each calendar year, a
budget of operating expenses for such year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-181) (from Ch. 108 1/2, par. 7-181)
Sec. 7-181.
To subpoena witnesses.
To compel witnesses to attend meetings and to testify upon any necessary
matter concerning the fund and allow fees not in excess of $10 to any such
witness for such attendance upon any one day.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-182) (from Ch. 108 1/2, par. 7-182)
Sec. 7-182.
To authorize municipality contribution rates and adopt actuarial tables and
interest rates.
To authorize municipality contribution rates and adopt actuarial tables
and establish effective and prescribed rates of interest.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-183) (from Ch. 108 1/2, par. 7-183)
Sec. 7-183.
To request information.
To request such information from any participating or covered employee
or from any participating or covered municipality or instrumentality
thereof or participating instrumentality as is necessary for the proper
operation of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
Sec. 7-184.
To determine prior service.
To determine the length of prior service from such information as is
available. Any such determination shall be conclusive as to any such period
of service, unless the board reconsiders the case and changes the
determination.
The change to this Section made by this amendatory Act of the 91st General
Assembly applies without regard to whether the individual is in service on or
after the effective date of this amendatory Act.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/7-185) (from Ch. 108 1/2, par. 7-185)
Sec. 7-185.
To establish offices.
To establish an office or offices with suitable space for meetings of
the board and for use of the necessary administrative personnel. All books
and records of the fund shall be kept in such office or offices or in such
other places as the board shall designate for safekeeping.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-186) (from Ch. 108 1/2, par. 7-186)
Sec. 7-186.
To appoint executive director.
To appoint an executive director to manage the office and carry out the
technical administrative duties of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-187) (from Ch. 108 1/2, par. 7-187)
Sec. 7-187.
To appoint actuary.
To appoint an actuary to perform all the necessary actuarial
requirements of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-188) (from Ch. 108 1/2, par. 7-188)
Sec. 7-188.
To appoint investment counsel.
To appoint such investment counsel as, in the opinion of the board, may
be required from time to time.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-189) (from Ch. 108 1/2, par. 7-189)
Sec. 7-189.
To obtain additional services.
To obtain by employment or by contract such additional actuarial
services and such legal, medical, clerical or other services as is required
for the efficient administration of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-190) (from Ch. 108 1/2, par. 7-190)
Sec. 7-190.
To fix compensation of employees.
To determine and fix the rate of compensation to be paid to the
executive director, actuary, investment counsel, auditor, legal or medical
counsel, and employees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-191) (from Ch. 108 1/2, par. 7-191)
Sec. 7-191. To have accounts audited.
To have the accounts of the fund audited annually by a certified public
accountant.
(Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/7-192) (from Ch. 108 1/2, par. 7-192)
Sec. 7-192.
To submit annual statements.
To submit an annual statement to the governing body of each
participating municipality and governing body of each participating
instrumentality and to any participating employee upon request, as soon
after the end of each calendar year as possible. The statement shall
include the following:
a. A balance sheet, showing the financial and actuarial condition of the
fund as of the end of the calendar year;
b. A statement of receipts and disbursements during such year;
c. A statement showing changes in the asset, liability, reserve and
surplus accounts during such year;
d. A detailed statement of investments as of the end of such year;
e. Such additional statistics as are deemed necessary for a proper
interpretation of the condition of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-193) (from Ch. 108 1/2, par. 7-193)
Sec. 7-193.
To provide individual statements.
To submit an individual statement to any participating employee upon his
reasonable request. The statement shall indicate the amount of
accumulations of each type to the employee's credit, as of the latest date
practicable.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-194) (from Ch. 108 1/2, par. 7-194)
Sec. 7-194.
To accept gifts.
To accept any gift, grant or bequest of any money or securities for the
purposes designated by the grantor if such purpose is specified as
providing cash benefits to some or all of the participating employees or
annuitants of this fund, or if no such purposes are designated, for the
purpose of distribution to all the participating employees at the end of
the year in the same proportion as the interest at the effective rate is
allocated for the year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-195) (from Ch. 108 1/2, par. 7-195)
Sec. 7-195.
To make investments.
To determine the limitations on the amounts of cash to be invested in
order to maintain such cash balances as may be deemed advisable to meet
current annuity, benefit and expense requirements, and invest the available
cash within these limits in securities, in accordance with Section 7-201.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-195.1) (from Ch. 108 1/2, par. 7-195.1)
Sec. 7-195.1. To establish and maintain a revolving account. To establish and maintain a revolving account in a bank or savings and
loan association, approved by the
State Treasurer as a State depositary and having capital funds, represented
by capital, surplus, and undivided profits, of at least 5 million dollars,
for the purpose of making payments of annuities, benefits, and
administrative expenses and payments to the State Agency provided in
Section 7-170. All funds deposited in such account shall be placed in the
name of the Fund and shall be withdrawn only by a check or draft upon the
bank or savings and loan association signed by the president of the
board or the executive director, as the
board may direct. In case the president or executive director, whose
signature appears upon any check or draft, after attaching his signature
ceases to hold office before the delivery thereof to the payee, his
signature nevertheless shall be valid and sufficient for all purposes with
the same effect as if he had remained in office until delivery thereof. The
revolving account shall be created by resolution of the board. The monies in the revolving account shall
be held and expenditures shall be made by the Fund for the purposes herein
set forth. The Fund shall reimburse the revolving account for expenditures
for such purposes.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act, as now or hereafter
amended. The limitations set forth in such Section 6 shall be applicable
only at the time of investment and shall not require the liquidation of
any investment at any time.
(Source: P.A. 99-8, eff. 7-9-15.)
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(40 ILCS 5/7-196) (from Ch. 108 1/2, par. 7-196)
Sec. 7-196.
To keep data.
To keep in convenient form the data necessary for all required
calculations and valuations as required by the actuary.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-197) (from Ch. 108 1/2, par. 7-197)
Sec. 7-197.
To keep permanent records.
To keep a permanent record of all the proceedings of the board and such
other records as shall be necessary or desirable for administration of the
Fund. For the protection of participating employees and their
beneficiaries, the Board, the Executive Director, and its agents and
employees are prohibited from disclosing the contents of an employee's
files, records, papers or communications relating to individual employees,
except for purposes directly connected with the administration of the Fund.
In any judicial or administrative proceeding except as such proceeding is
directly concerned with the administration of the Fund, such files,
records, papers and communications shall be deemed privileged
communications. The proceedings of the Board and reports of participating
municipalities and instrumentalities shall be public records open to
inspection.
(Source: Laws 1967, p. 2091.)
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(40 ILCS 5/7-197.1) (from Ch. 108 1/2, par. 7-197.1)
Sec. 7-197.1.
To reproduce records.
To have any records kept by the board photographed, microfilmed or
otherwise reproduced on film. The photographs, microfilm and reproductions
shall be deemed original records and documents for all purposes, including
introduction in evidence before all courts and administrative agencies.
(Source: P.A. 76-1820.)
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(40 ILCS 5/7-198) (from Ch. 108 1/2, par. 7-198)
Sec. 7-198.
To make rules.
To establish such rules and regulations not inconsistent with the other
provisions of this Article as are necessary or desirable for the efficient
administration of the fund, including, without limitation, the time and
manner of reporting and making contributions by participating
municipalities and participating instrumentalities.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-199) (from Ch. 108 1/2, par. 7-199)
Sec. 7-199.
To appoint committees.
To appoint committees of 3 or more trustees to perform such functions as
may be directed by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-199.1) (from Ch. 108 1/2, par. 7-199.1)
Sec. 7-199.1.
To administer a joint group accident and health
insurance program in accordance with this Section.
(a) The board may purchase and administer a joint group accident and
health insurance policy as defined in Section 4 of the "Illinois Insurance
Code", approved June 29, 1937, as amended, for the benefit of one or more
classes of employees or retired employees of participating municipalities
and participating instrumentalities, or their spouses or surviving
spouses.
(b) All participating municipalities and participating instrumentalities
are hereby authorized to participate in any such joint group accident and
health insurance policy established under this Section.
(c) The board may promulgate such rules as may be necessary or
convenient relating to the purchase and administration of any such policy,
and to the conditions and terms of participation therein and withdrawal
therefrom by participating municipalities and participating instrumentalities.
(d) Any monies received by the board relating to its duties under this
Section shall not be deemed contributions to or assets of the fund, and all
such monies shall be held by the board in a separate account.
(e) The board shall submit an annual report of its activities under this
Section to each municipality and instrumentality participating in a policy
administered under this Section.
(f) The group accident and health insurance program established under
this Section is not and shall not be construed to be a pension or retirement
benefit for purposes of Section 5 of Article XIII of the Illinois Constitution
of 1970.
(Source: P.A. 84-812.)
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(40 ILCS 5/7-199.2) (from Ch. 108 1/2, par. 7-199.2)
Sec. 7-199.2.
To determine unfunded liability.
To cause to be
actuarially determined the unfunded liability existing in the Fund as of the
date provided by subsection (c) of Section 5-1 of the School Code by reason
of annuities and other benefits payable and to become payable from the Fund
to persons specified in that subsection with respect to periods of service
ending on or before that date, to report the amount so determined to each
school board required under that subsection to pay a proportionate share of
that amount to the Fund, and to receive and apply in accordance with this
Article all amounts so paid to the Fund by those school boards.
(Source: P.A. 87-473.)
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(40 ILCS 5/7-199.3)
Sec. 7-199.3.
To establish and administer deferred compensation and
tax-deferred annuity programs for units of local government.
The Board may establish and administer deferred compensation, tax deferred
annuity, and similar tax-savings programs for employees of units of local
government, which shall be known as the "IMRF-Plus" program. The program shall
provide for the Board to review proposed investment offerings and shall require
that only investments determined to be acceptable by the Board may be used for
investing compensation contributed to the program.
The program shall include appropriate provisions pertaining to its day to day
operation, including methods of electing to contribute income, methods of
changing the amount of income contributed, methods of selecting from among
investment options available under the program, and any other provisions that
the Board may deem appropriate.
The program shall provide for the preparation of pamphlets describing the
program and outlining the options and opportunities available to local
government employees under the program. These pamphlets shall be distributed
from time to time to all eligible employees.
The program established under this Section shall not be implemented or
amended until the Board is satisfied that compensation contributed under the
program is not subject to income tax for the year in which it is earned and
that the taxation of such compensation will be deferred until the time of its
distribution to the employee.
The program shall also provide for the recovery of the expenses of its
administration by charging those expenses against the earnings from
investments, by charging fees equitably prorated among the participating local
government employees, or by some other appropriate and equitable method
determined by the Board. Different methods for recovery of administrative
expenses may be provided in relation to different types of investment programs,
and the Board may provide for the allocation of administration expenses among
varying types of programs for this purpose.
The Board shall review and oversee the administration of the program.
This Section does not limit the power or authority of any unit of local
government, school district, or institution supported in whole or in part by
public funds to establish and administer any other deferred compensation plans
or tax-deferred annuity programs that may be authorized by law.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/7-200) (from Ch. 108 1/2, par. 7-200)
Sec. 7-200.
To carry on other duties.
To carry on generally any other reasonable activities, including,
without limitation, the making of administrative decisions on participation
and coverage, which are necessary for carrying out the intent of this fund
in accordance with the provisions of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-201) (from Ch. 108 1/2, par. 7-201)
Sec. 7-201.
The assets of the fund in excess of the amount of
cash required for current operation as determined by the board shall be
invested, subject to the requirements and restrictions set forth in Sections
1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115 of this Code.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain
investments of public funds by public agencies", approved July 23, 1943, as
now or hereafter amended. The limitations set forth in such Section 6
shall be applicable only at the time of investment and shall not require
the liquidation of any investment at any time.
The board may sell any security belonging to the fund at any time in
its judgment that it is necessary or desirable to do so.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities or the
holding of interests in real property in its own name or in the name of a
nominee created for the express purpose of registration of securities or
the holding of interests in real property by a savings and loan
association or national or State bank or trust company authorized to
conduct a trust business in the State of Illinois. The
board may hold title to interests in real property in the name of the Fund
or in the name of a title holding corporation created for the express
purpose of holding title to interests in real property.
Investments shall be carried at cost or at a book value in accordance with
generally accepted accounting principles and accounting procedures approved
by the board.
The book value of investments held by any pension fund or retirement system
in one or more commingled investment accounts shall be the cost of its units
of participation in such commingled account or accounts as recorded on the
books of the board.
(Source: P.A. 89-136, eff. 7-14-95.)
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(40 ILCS 5/7-201.1) (from Ch. 108 1/2, par. 7-201.1)
Sec. 7-201.1.
Participation in commingled investment funds-Transfer of
investment functions and securities.
(a) The retirement board may invest in any commingled investment fund or
funds established and maintained by the Illinois State Board of Investment
under the provisions of Article 22A of this Code. The book value of all
commingled equity participations plus the book value of other stock
investments owned by this system shall not exceed the maximum permissible
percentage rate for equity investments prescribed in Section 7-201. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The retirement board may, by resolution duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the Fund of every kind and character. Upon completion
of such transfer, the authority of the retirement board to make investments
shall terminate. Thereafter, all investments of the reserves of the Fund
shall be made by the Illinois State Board of Investment in accordance with
the provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the retirement board.
(Source: P.A. 78-645.)
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(40 ILCS 5/7-202) (from Ch. 108 1/2, par. 7-202)
Sec. 7-202.
Accounts.
An adequate system of accounts shall be kept in accordance with
generally accepted accounting and sound actuarial principles. The accounts
and reserves designated in Section 7-203 to 7-208, inclusive, shall be
maintained.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-203) (from Ch. 108 1/2, par. 7-203)
Sec. 7-203.
Employee reserves.
Separate reserves shall be maintained for each participating employee in
such detail as is necessary to administer all benefits provided herein, and
to segregate accurately the separate liabilities of each participating
municipality and its instrumentalities, or of any participating
instrumentality, with respect to each participating employee.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-204) (from Ch. 108 1/2, par. 7-204)
Sec. 7-204.
Municipality reserves.
(a) Except as provided in paragraph (b) of this Section, each
participating municipality and its instrumentalities, and each
participating instrumentality, shall be treated as an independent unit
within the fund, except that if it has any sheriff's law enforcement
employees, it shall be treated as 2 independent units, one
for its sheriff's law enforcement employees and the second for its other
employees. Separate municipality reserves shall be maintained in such form
and detail as is necessary to show the net accumulated balances of each
municipality, created or arising under this Article.
(b) In the event of termination and dissolution of any participating
municipality or participating instrumentality and its obligations are not
assumed or transferred by law to another municipality, any net debit or
credit balance remaining in the reserve account of such municipality, or
participating instrumentality, shall be transferred to a Terminated
Municipality Reserve Account which shall be used to fund any future
benefits of its employees arising out of service with the terminated
municipality or participating instrumentality.
Any deficiency arising in the Terminated Municipality Reserve Account
shall be eliminated by a contribution by all remaining municipalities and
participating instrumentalities at a uniform percent of payroll, to be
determined, collected with other contributions required under Section 7-172.
(c) The municipality reserve for each municipality or participating
instrumentality that has any sheriff's law enforcement
employees shall be divided into 2
reserves. A reserve for the sheriff's law enforcement employees shall be
allocated an amount in the same proportion to the total amount in reserve
as the total number of sheriff's law enforcement employees is to the total
participating employees of the municipality or participating
instrumentality
at that date. The remainder shall be
allocated to the reserve for other employees.
(Source: P.A. 87-740.)
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(40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
Sec. 7-205. Reserves for annuities. Appropriate reserves shall be created
for payment of all annuities
granted under this Article at the time such annuities are granted and in
amounts determined to be necessary under actuarial tables adopted by the
Board upon recommendation of the actuary of the fund. All annuities payable
shall be charged to the annuity reserve.
1. Amounts credited to annuity reserves shall be derived by transfer of
all the employee credits from the appropriate employee reserves and by
charges to the municipality reserve of those municipalities in which the
retiring employee has accumulated service. If a retiring employee has
accumulated service in more than one participating municipality or
participating instrumentality, the municipality charges for non-concurrent service shall be calculated as follows: (A) for purposes of calculating the annuity reserve, | ||
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(B) the difference between the municipality charges | ||
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Aggregate municipality charges for concurrent service shall be prorated based on the employee's earnings. The municipality charges for retirement annuities calculated under subparagraph a. of paragraph 1. of subsection (a) of Section 7-142 shall be prorated based on actual contributions.
2. Supplemental annuities shall be handled as a separate annuity and
amounts to be credited to the annuity reserve therefor shall be derived in
the same manner as a regular annuity.
3. When a retirement annuity is granted to an employee with a spouse
eligible for a surviving spouse annuity, there shall be credited to the
annuity reserve an amount to fund the cost of both the retirement and
surviving spouse annuity as a joint and survivors annuity.
4. Beginning January 1, 1989, when a retirement annuity is awarded, an
amount equal to the present
value of the $3,000 death benefit payable upon the death of the annuitant
shall be transferred to the annuity reserve from the appropriate
municipality reserves in the same manner as the transfer for annuities.
5. All annuity reserves shall be revalued annually as of December 31.
Beginning as of December 31, 1973, adjustment required therein by such
revaluation shall be charged or credited to the earnings and experience
variation reserve.
6. There shall be credited to the annuity reserve all of the
payments
made by annuitants under Section 7-144.2, plus an
additional amount from the
earnings and experience variation reserve to fund the cost of the
incremental annuities granted to annuitants making these payments.
7. As of December 31, 1972, the excess in the annuity reserve shall be
transferred to the municipality reserves. An amount equal to the deficiency
in the reserve of participating municipalities and participating
instrumentalities which have no participating employees shall be allocated
to their reserves. The remainder shall be allocated in amounts
proportionate to the present value, as of January 1, 1972, of annuities of
annuitants of the remaining participating municipalities and participating
instrumentalities.
(Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12; 97-813, eff. 7-13-12.)
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(40 ILCS 5/7-205.1) (from Ch. 108 1/2, par. 7-205.1)
Sec. 7-205.1.
Reserves for Disability Benefits.
A temporary and total and permanent disability benefit reserves shall be
created for payment of all temporary and total and permanent disability
benefits.
1. Amounts to fund the cost of total and permanent disability benefits
shall be established at the time such benefits are granted under actuarial
tables adopted by the Board upon recommendation of the Actuary of the Fund.
All total and permanent disability benefits payable shall be charged to
this reserved amount.
2. Temporary disability benefit payments shall be charged to the
disability reserve when made.
3. Amounts credited to the disability reserve shall be derived from
municipality contributions made pursuant to Section 7-172, paragraph (b),
subparagraph 3.
4. The total and permanent disability reserve shall be revalued annually
as of December 31. Any adjustment required therein by such revaluation
shall be charged or credited to the earnings and experience variation
reserve.
(Source: P.A. 77-2121.)
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(40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
Sec. 7-206.
Death Reserve.
All death benefit payments shall be charged
to the Death Reserve, other than $3,000 death benefits paid after December
31, 1988 upon the death of an annuitant. All
contributions for death purposes under Section 7-172(b)4 shall be
credited to the same reserve. Whenever the balance in such reserve at the
close of a year exceeds 100% of the average annual charges to this account
during the 3 preceding calendar years, the basic actuarial assumptions upon
which municipality contribution rates for these purposes are based, shall
be reviewed and revised in such manner as is deemed necessary to reduce
such balance.
(Source: P.A. 89-136, eff. 7-14-95.)
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(40 ILCS 5/7-207.1) (from Ch. 108 1/2, par. 7-207.1)
Sec. 7-207.1.
Reserve For Variation In Benefit Payments.
A Reserve for Variation in Benefit Payments may be established.
1. Credits to such Reserve shall consist of:
(a) Any employee contributions,
not in excess of $10.00, received by
the Fund subsequent to claim for and payment of a separation refund,
provided, however, that upon request of any employee rightfully entitled
thereto the aforesaid amount shall be paid him from this Reserve.
(b) Any benefit checks or warrants issued and outstanding more than
two years.
(c) Any balances in Employee or Municipality Reserves that are not
properly creditable to those Reserves.
2. Charges to such Reserve shall consist of:
(a) Benefit claims properly payable under this Article, the reserves
for which have been previously transferred to this reserve or for which
no reserves exist.
(b) Benefit overpayments deemed uncollectible by the Board.
(c) Amount required to adjust employee or municipal reserves to
correct balance.
(Source: P.A. 81-1536.)
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(40 ILCS 5/7-208) (from Ch. 108 1/2, par. 7-208)
Sec. 7-208.
Earnings and experience variation reserve.
One
earnings and experience variation reserve shall be maintained. All other
accounts for this purpose shall be abolished upon the effective date of this
amendatory Act of 1995. Moneys in abolished reserve accounts shall be
transferred to the earnings and experience variation reserve. No more than
one-half of all interest income and earnings on investments of whatever type,
including realized gains on disposition of investments and unrealized
gains in market value, shall be credited thereto. All investment earnings
expense of whatever type, including realized losses on disposition of
investments and unrealized losses in market value, shall be charged
thereto. All administrative expenses directly relating to investments may be
charged thereto. Excess or deficiencies in the annuity and disability reserves
shall be charged or credited to this reserve. Whenever a balance exists in
such reserve, it shall be included in the basis used for determining the
effective interest rate. The
balance in the reserve shall be distributed as of the end of each year, but a
contingency balance of not more than twice the projected interest requirement
for the next year may be maintained.
If the balance ever exceeds twice the projected requirement, the excess shall
be distributed to municipality reserves.
If the Board determines that the funds available in this reserve, after
required transfers, will not be sufficient to provide administrative expenses
of the fund, the Board may include in the municipality contribution rate
authorized by Section 7-172 a percentage of earnings on the earnings of
all participating employees to provide an amount required for the
administrative expenses.
Upon adoption of generally accepted accounting procedures that allow for
the recognition of unrealized gains or losses in market value, those gains or
losses shall be allocated to employer accounts including the earnings and
experience variation reserve in the same proportion those accounts were to
total assets prior to the implementation of market value accounting.
(Source: P.A. 89-136, eff. 7-14-95.)
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(40 ILCS 5/7-209) (from Ch. 108 1/2, par. 7-209)
Sec. 7-209.
Earnings and Interest.
(a) Balances at the beginning of each year which remain in employee
reserves at the end of the year shall be credited with interest annually at
the prescribed rate.
(b) Municipality reserves shall be charged or credited, as the case may
be, with interest at the prescribed rate applied to the balance therein at
the beginning of the year.
(c) Municipality accounts receivable shall be charged with interest at a
rate of 1/2% per month before July 1, 1984, and 1% per month thereafter
on the balance therein unpaid one month or more. The
unpaid balance shall include charges established retroactively because of
failure of the municipality to report amounts which should be receivable.
Credit balances shall be disregarded in this calculation.
(d) The annuity total and permanent disability reserves shall be
credited with interest at the prescribed rate at the end of each year. For
purposes of this computation, the prescribed rate shall be applied to the
balances therein at the beginning of the year.
(e) Amounts credited or charged under subsection (a), (b), (c), or
(d) of
this Section shall be charged or credited to the earnings and experience
variation reserve. Any remaining balance, in excess of the contingency
balance established, shall be transferred to the municipality reserves in
proportion to present values of the annuities of the annuitants of each
participating municipality and participating instrumentality plus the
balance in their municipality reserve.
(f) The Board shall fix the rate of interest, to be charged on back,
retroactive, or reinstatement contributions.
(Source: P.A. 89-136, eff. 7-14-95.)
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(40 ILCS 5/7-210) (from Ch. 108 1/2, par. 7-210)
Sec. 7-210. Funds. (a) All money received by the board shall immediately be deposited with the custodian for the account of the Fund, or in the case of
funds received under Section 7-199.1, in a separate account maintained for
that purpose. All payments from the accounts of the Fund
shall be made by the custodian only, and only by a check or draft signed by the president of the
board or the executive director, as the
board may direct. Such checks and drafts shall be drawn only upon proper authorization by the
board as properly recorded in the official minute books of the meetings
of the board.
(b) (Blank).
(c) The assets of the Fund shall be invested as one fund, and no
particular person, municipality, or instrumentality thereof or
participating instrumentality shall have any right in any specific
security or in any item of cash other than an undivided interest in the
whole.
(d) Except as provided in subsection (d-5), whenever any employees of a municipality or participating
instrumentality have been or shall be excluded from participation in
this Fund by virtue of the application of paragraph b of Section 7-109
(2), the board shall issue a check or draft in an amount
equal to the accumulated contributions of such employees. Such check or draft
shall be drawn in favor of the pension or retirement fund
in which such employees have or shall become participants. Such transfer
shall terminate any further rights of such employees under this Fund.
(d-5) Upon creation of a newly established Article 3 police pension fund by referendum under Section 3-145 or by census under Section 3-105, the following amounts shall be transferred from this Fund to the new police pension fund, within 30 days after an application therefor is received from the new pension fund: (1) the amounts actually contributed to this Fund as | ||
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(2) an amount representing employer contributions, | ||
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This transfer
terminates any further rights of such police officers in this Fund arising out of their service as police officers of the municipality that is establishing the new pension fund. (e) If a participating instrumentality terminates participation
because it fails to meet the requirements of Section 7-108, it shall
pay to the Fund the amount equal to any net debit balance in its
municipality reserve account and account receivable. Its successors, and
assigns and transferees of its assets shall be obligated to make this
payment to the extent of the value of assets transferred to them. The
Fund shall pay an amount equal to any net credit balance to the
participating instrumentality, its successors or assigns. Any remaining
net debit or credit balance not collectible or payable shall be
transferred to the terminated municipality reserve account. The Fund
shall pay to each employee of the participating instrumentality an
amount equal to his credits in the employee reserves. The employees
shall have no further rights to any benefits from the Fund, except that
annuities awarded prior to the date of termination shall continue to be
paid.
(Source: P.A. 98-729, eff. 7-26-14; 99-8, eff. 7-9-15.)
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(40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
Sec. 7-211. Authorizations.
(a) Each participating municipality and instrumentality thereof and
each participating instrumentality shall:
1. Deduct all normal and additional contributions and | ||
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2. Pay to the board contributions required by this | ||
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(b) Each participating employee shall, by virtue of the payment of
contributions to this fund, receive a vested interest in the annuities
and benefits provided in this Article and in consideration of such vested
interest shall be deemed to have agreed and authorized the deduction from
earnings of all contributions payable to this fund in accordance with this
Article.
(c) Payment of earnings less the amounts of contributions provided in
this Article and in the Social Security Enabling Act shall be a full
and complete discharge of all claims for payment for services rendered
by any employee during the period covered by any such payment.
(d) Any covered annuitant may authorize the withholding of all or a portion
of his or her annuity, for the payment of premiums on group accident and health
insurance provided pursuant to Section 7-199.1. The annuitant may revoke
this authorization at any time.
(Source: P.A. 96-1084, eff. 7-16-10.)
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(40 ILCS 5/7-212) (from Ch. 108 1/2, par. 7-212)
Sec. 7-212.
Executive director.
The executive director shall be in charge of the general administration
of the fund. He shall have such special powers and duties as may be
properly delegated or assigned by the board from time to time. Such general
administrative duties shall include: the computation of the amounts of
annuities, benefits, prior service credits and contributions required for
reinstatement of credits for board consideration; the processing of
approved benefit claims and expenses of administration for payment; the
placing of any and all matters before the board which require action or are
in the interest of the board or the fund; the preparation and maintenance
of necessary and proper records for administrative and actuarial purposes;
the conduct of any necessary or desirable communications in the course of
operations of the fund; and the carrying out of any actions of the board
which are so delegated.
(Source: P.A. 77-2121.)
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(40 ILCS 5/7-213) (from Ch. 108 1/2, par. 7-213)
Sec. 7-213.
Actuary.
The actuary shall be the technical advisor of the board and in addition
to general advice shall specifically be responsible for and shall:
1. Make a general investigation, at least once every 3 years, of the
experience of the participating municipalities and participating
instrumentalities as to mortality, disability, retirement, separation,
marital status of employees, marriage of surviving spouses, interest and
employee earnings rates and to make recommendations as a result of any such
investigation as to:
a. The actuarial tables to be used for computing annuities and benefits
and for determining the premiums for disability and death benefit purposes;
b. The tables to be used in any regular actuarial valuations; and
c. The prescribed rate of interest.
2. Make the computations of municipality obligations, contribution rates
including annual valuations of the liabilities and reserves for present and
prospective annuities and benefits, and certify to the correctness thereof;
3. Recommend the effective rate of interest to be applicable to each
year;
4. Advise the board on any matters of an actuarial nature affecting the
fund.
(Source: P.A. 77-2121.)
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(40 ILCS 5/7-214) (from Ch. 108 1/2, par. 7-214)
Sec. 7-214. Custodian. The Board shall appoint one or more custodians to receive and hold the assets of the Fund on such terms as the Board may agree.
(Source: P.A. 99-8, eff. 7-9-15.)
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(40 ILCS 5/7-215) (from Ch. 108 1/2, par. 7-215)
Sec. 7-215.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code
as now enacted or hereafter amended is hereby adopted and made a part of
this Article. The additional cost of annuities resulting from awards made
under Section 20-122 of this Code, in excess of employee contributions made
under that Section, shall be financed by a uniform contribution rate paid
by all municipalities and participating instrumentalities with other
contributions under Section 7-172. If a person is qualified for an annuity
under such Act, the Fund may make payments of less than $10 per month,
notwithstanding the limitations set forth in this Article.
(Source: P.A. 78-896.)
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(40 ILCS 5/7-217) (from Ch. 108 1/2, par. 7-217)
Sec. 7-217.
Payment of benefits and assignments.
(a) Except as otherwise provided in this Section, all moneys in the
Fund created by this Article, and all securities
and other property of the Fund, and all annuities and other benefits
payable under this Article, and all accumulated contributions and other
credits of employees in this Fund, and the right of any person to receive
an annuity or other benefit under this Article, or a refund or return of
contributions, shall not be subject to judgment, execution, garnishment,
attachment, or other seizure by process, in bankruptcy or otherwise, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable.
Notwithstanding Section 1-103.1, the changes in this Section made by this
amendatory Act of 1991 shall not be limited to persons in service on or
after its effective date. All annuities and other benefits payable under
this Fund and all accumulated credits of employees in the Fund shall be
exempt from state and
municipal taxes.
(b) The board, in its discretion, may:
1. Pay to the wife of any annuitant or employee such | ||
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2. Where a temporary or total and permanent | ||
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3. Pay amounts payable to a minor or person under | ||
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(c) The board may retain out of any annuity or benefit payable to
any person such amount or amounts as the board may determine are owing
to the fund because required employee contributions were not made, in
whole or in part, or employee obligations to return refunds were not
made, or because money was paid to any annuitant or employee through
misrepresentation, fraud or error.
(d) The board and the fund shall be held free from any liability for
any money retained or paid in accordance with this section and the
employee shall be assumed to have assented and agreed to any such
disposition of money due.
(e) An annuitant entitled to receive an annuity may, for personal
reasons and without disclosure thereof, request the board in writing to
suspend for any period payment of all or any part of such annuity
otherwise payable hereunder. The board, on receipt of such request,
shall authorize such suspension, in which event the annuitant shall be
deemed to have forfeited all rights to the amount of annuity so
suspended, but shall retain the right to have full annuity otherwise
payable reinstated as to future monthly payments upon written notice to
the board of his desire to revoke his prior request for a suspension
under this paragraph.
(f) The board may reimburse any municipality or participating
instrumentality for employee contributions due such municipality or
participating instrumentality, from funds withheld by the board pursuant
to this Section.
(g) An annuitant may authorize the withholding of a portion of his
annuity for payment of dues to any labor organization designated by the
annuitant; however, no portion of annuities may be withheld pursuant to
this subsection for payment to any one labor organization unless a minimum
of 100 annuitants authorize such withholding,
except that the Board may allow such withholding
for less than 100 annuitants during a probationary period of between 3 and
6 months, as determined by the Board. The Board shall prescribe a form for
the authorization of such withholding, and shall provide such forms to
employees, annuitants and labor organizations upon request. Amounts
withheld by the Board under this subsection shall be promptly paid over to
the designated organizations.
(Source: P.A. 87-740.)
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(40 ILCS 5/7-218) (from Ch. 108 1/2, par. 7-218)
Sec. 7-218.
Compulsory retirement.
No provision of this Article shall operate to cause compulsory
retirement of any employee, nor to give any employee any specific right to
remain in service. Separations and retirements from the service of a
municipality or participating instrumentality shall be made in accordance
with the currently existing practices of the respective municipalities and
participating instrumentalities.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-219) (from Ch. 108 1/2, par. 7-219)
Sec. 7-219. Felony conviction.
None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as an employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants entering service subsequent to July 9, 1955 shall be
deemed to have consented to the provisions of this Section as a condition
of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/7-220) (from Ch. 108 1/2, par. 7-220)
Sec. 7-220. Administrative review. The provisions of the Administrative Review Law, and all amendments and
modifications thereof and the rules adopted
pursuant thereto shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the retirement board provided
for under this Article. The term "administrative decision" is as defined in
Section 3-101 of the Code of Civil Procedure. The venue for actions brought under the Administrative Review Law shall be any county in which the Board maintains an office or the county in which the member's employing participating municipality or participating instrumentality has its main office.
(Source: P.A. 96-1140, eff. 7-21-10; 97-933, eff. 8-10-12.)
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(40 ILCS 5/7-221) (from Ch. 108 1/2, par. 7-221)
Sec. 7-221.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/7-222) (from Ch. 108 1/2, par. 7-222)
Sec. 7-222.
Reduction of disability and survivor's benefits on
account of corresponding benefits payable under the Workers'
Compensation Act and the Workers' Occupational Diseases Act. Whenever
any person is entitled to a disability or survivors benefit under this
Article and to benefits under the Workers' Compensation Act or the
Workers' Occupational Diseases Act in relation to the same injury or
disease, the monthly benefits payable under this Article shall be
reduced by the amount of any such benefits payable under either of those
Acts, except payments for medical, surgical and hospital services,
non-medical remedial care and treatment rendered in accordance with a
religious method of healing recognized by the laws of this State, and
for artificial members or appliances, and fixed statutory payments for
the loss of or the permanent and complete loss of the use of any bodily
member, provided that the monthly benefit payable under this Article
shall not be reduced to less than $10 per month. If the benefits
deductible under this paragraph are stated in a weekly amount, the
monthly amount for the purposes of this Section shall be 4 1/3 times the
weekly amount.
(Source: P.A. 81-992.)
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(40 ILCS 5/7-223) (from Ch. 108 1/2, par. 7-223)
Sec. 7-223.
The amendments to Sections 7-137, 7-146, 7-147, 7-150 and
7-151 of this Article (relating to attainment of age 70) made by this
amendatory Act of 1989 shall be retroactive to January 1, 1987.
(Source: P.A. 86-272.)
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(40 ILCS 5/7-224)
Sec. 7-224.
Section 415 limitations.
Notwithstanding any other
provisions of this Article, the combined benefits and contributions provided to
any participating employee by all plans of any participating municipality and
its instrumentalities and any participating instrumentality shall not exceed
the limitations specified in Section 415(b), (c), and (e) of the Internal
Revenue Code of 1986. If a participating employee's benefits or contributions
under this Article, combined with those under any other plan of the
participating municipality and its instrumentalities or participating
instrumentality, would otherwise violate those limitations, the benefits and
contributions under the other plan shall be reduced, rather than the benefits
and contributions provided under this Article. To the extent that the other
plan fails to limit such benefits and contributions, that plan shall be
disqualified.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/7-225) Sec. 7-225. Increases in earnings; pension impact statement. Before increasing the earnings of an officer, executive, or manager by 12% or more: (1) the authorities of the respective employer who | ||
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(2) the Illinois Municipal Retirement Fund must | ||
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(3) the authorities authorizing this increase must | ||
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(4) the employer must pay the costs associated with | ||
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The provisions of this Section do not apply to any of the following: increases attributable to standard employment promotions resulting in increased responsibility and workloads; earnings increases paid to individuals under contracts or collective bargaining agreements entered into, amended, or renewed before January 1, 2012; earnings increases paid to members who are 10 years or more from retirement eligibility; or earnings increases resulting from an increase in the number of hours required to be worked.
(Source: P.A. 97-609, eff. 1-1-12.) |
(40 ILCS 5/Art. 8 heading) ARTICLE 8.
MUNICIPAL EMPLOYEES', OFFICERS', AND OFFICIALS' ANNUITY AND
BENEFIT FUND--CITIES OVER 500,000 INHABITANTS
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(40 ILCS 5/8-101) (from Ch. 108 1/2, par. 8-101)
Sec. 8-101.
Creation of fund.
In each city of more than 500,000 inhabitants a Municipal Employees',
Officers', and Officials' Annuity and Benefit Fund shall be created, set
apart, maintained and administered, in the manner prescribed in this
Article, for the benefit of the employees, officers and officials herein
designated, and their beneficiaries.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-102) (from Ch. 108 1/2, par. 8-102)
Sec. 8-102.
Terms defined.
The terms used in this Article have the meanings ascribed to them in
Sections 8-103 to 8-125, inclusive, except when the context otherwise
requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-103) (from Ch. 108 1/2, par. 8-103)
Sec. 8-103.
Fund.
"Fund": The Municipal Employees', Officers', and Officials' Annuity and
Benefit Fund herein created.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-104) (from Ch. 108 1/2, par. 8-104)
Sec. 8-104.
The 1921 Act.
"The 1921 Act": "An Act to provide for the creation, setting apart,
maintenance and administration of a municipal employees', officers', and
officials' annuity and benefit fund in cities having a population exceeding
two hundred thousand inhabitants", approved June 29, 1921, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-105) (from Ch. 108 1/2, par. 8-105)
Sec. 8-105.
Court and Law Department Employees' Annuity Act.
"Court and Law Department Employees' Annuity Act": "An Act to provide
for the creation, setting apart, maintenance and administration of a
Municipal Court and Law Department Employees' Annuity and Benefit Fund in
cities having a population of more than two hundred thousand (200,000)
inhabitants in which any Municipal Court has been or shall be established
and maintained in accordance with law", approved July 8, 1935, as
amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-106) (from Ch. 108 1/2, par. 8-106)
Sec. 8-106.
Board of Election Commissioners Employees' Annuity Act.
"Board of Election Commissioners Employees' Annuity Act": "An Act to
provide for the creation, setting apart, maintenance and administration of
a Board of Election Commissioners Employees' Annuity and Benefit Fund in
cities having a population of more than two hundred thousand (200,000)
inhabitants in which any Board of Election Commissioners is functioning in
accordance with law", approved July 8, 1935, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-107) (from Ch. 108 1/2, par. 8-107)
Sec. 8-107.
Public School Employees' Pension Act of 1903.
"Public School Employees' Pension Act of 1903": "An Act to provide for
the formation and disbursement of a public school employees' pension fund
in cities having a population exceeding one hundred thousand inhabitants",
approved May 15, 1903, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-107.1) (from Ch. 108 1/2, par. 8-107.1)
Sec. 8-107.1.
Public Library Employes' Pension Act.
"Public Library Employes' Pension Act": "An Act to provide for the
formation and disbursement of a public library employes' pension fund in
cities having a population exceeding 500,000 inhabitants," approved May 12,
1905, as amended, and as continued in, or superseded by the "Illinois
Pension Code," approved March 18, 1963, under Article 19, Division 2, Secs.
19-201 to 19-220, both inclusive.
(Source: Laws 1965, p. 2300.)
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(40 ILCS 5/8-107.2) (from Ch. 108 1/2, par. 8-107.2)
Sec. 8-107.2. House of Correction Employees' Pension Act. "House
of Correction Employees' Pension Act": "An Act to provide for the setting
apart, formation and disbursement of a house of correction employees pension
fund in cities having a population exceeding 150,000 inhabitants", approved
June 10, 1911, as amended, and as continued in, or superseded by the Illinois
Pension Code, approved March 18, 1963, under Article 19, Division 1, Sections
19-101 to 19-119, both inclusive, as amended.
(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/8-108) (from Ch. 108 1/2, par. 8-108)
Sec. 8-108.
Exchange of Functions Act of 1957.
"Exchange of Functions Act of 1957": "An Act in relation to an exchange
of certain functions, property and personnel among cities and park
districts having coextensive geographic areas and populations in excess of
500,000", approved July 5, 1957.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-108.3) Sec. 8-108.3. Credit for service as a part-time employee of the Board of Education of the city. An employee of the Board of Education of the city, regardless of his or her position, may establish up to 2 years of service credit in the Fund for part-time employment with the Board of Education of the city prior to becoming an employee by applying no later than 6 months after the effective date of this amendatory Act of the 103rd General Assembly and paying to the Fund for that employment an amount equal to the (1) employee contributions based on the actual compensation received and the rate of contribution in effect on the date of payment; plus (2) an amount representing employer contributions determined by the retirement board; plus (3) interest at the effective rate from the date of service to the date of payment. However, service credit shall not be granted under this Section for any such prior employment for which the applicant received credit under any other provision of this Code or during which the applicant was on a leave of absence.
(Source: P.A. 103-525, eff. 8-11-23.) |
(40 ILCS 5/8-109) (from Ch. 108 1/2, par. 8-109)
Sec. 8-109.
Civil Service Act.
"Civil Service Act": "An Act to regulate the civil service of
cities", approved March 20, 1895, as amended, superseded by the provisions
of Division 1 of Article 10 of the Illinois Municipal Code, relating to
civil service in cities.
(Source: P.A. 81-782.)
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(40 ILCS 5/8-109.1) (from Ch. 108 1/2, par. 8-109.1)
Sec. 8-109.1.
"Municipal Personnel Ordinance":
In the case of a city exercising
constitutionally authorized home rule unit authority, an ordinance of any
city in which this Article is in force and effect, establishing a substitute
for and to supersede the "Civil Service Act" as the governing employment
system of such city.
(Source: P.A. 81-782.)
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(40 ILCS 5/8-110) (from Ch. 108 1/2, par. 8-110)
Sec. 8-110.
Employer.
"Employer":
(1) a city of more than 500,000 inhabitants;
(2) the Board of Education of the city, with
respect to any of its employees who participate in this Fund;
(3) the Chicago Housing Authority, with respect to any of its employees who
participate in this Fund subject to the provisions of Section 8-230.9;
(4) the Public Building Commission of the city, with respect to any of its
employees who participate in this Fund; and
(5) the Retirement Board.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-111) (from Ch. 108 1/2, par. 8-111)
Sec. 8-111.
Effective date.
"Effective date": January 1, 1922, for any city covered by The 1921 Act
on the date this Article comes in effect; and January 1 of the first year
after the year in which any city hereafter comes under this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-112) (from Ch. 108 1/2, par. 8-112)
Sec. 8-112.
Retirement board or board.
"Retirement board" or "board": The Retirement Board of the Municipal
Employees', Officers', and Officials' Annuity and Benefit Fund created by
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
Sec. 8-113. Municipal employee, employee, contributor, or participant. "Municipal employee", "employee", "contributor", or "participant":
(a) Any employee of an employer employed in the classified civil service
thereof other than by temporary appointment or in a position excluded or exempt
from the classified service by the Civil Service Act, or in the case of a city
operating under a personnel ordinance, any employee of an employer employed in
the classified or career service under the provisions of a personnel ordinance,
other than in a provisional or exempt position as specified in such ordinance
or in rules and regulations formulated thereunder.
(b) Any employee in the service of an employer before the Civil
Service Act came in effect for the employer.
(c) Any person employed by the board.
(d) Any person employed after December 31, 1949, but prior to January
1, 1984, in the service of the employer by temporary appointment or in
a position exempt from the classified service as set forth in the Civil
Service Act, or in a provisional or exempt position as specified in the
personnel ordinance, who meets the following qualifications:
(1) has rendered service during not less than 12 | ||
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(2) files written application with the board, while | ||
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(e) After December 31, 1949, any alderperson or other officer or
official of the employer, who files, while in office, written
application with the board to be included hereunder.
(f) Beginning January 1, 1984, any person employed by an employer other
than the Chicago Housing Authority
or the Public Building Commission of the city, whether or not such person
is serving by temporary appointment or in a position exempt from the classified
service as set forth in the Civil Service Act, or in a provisional or exempt
position as specified in the personnel ordinance, provided that such person is
neither (1) an alderperson or other officer or official of the employer, nor (2)
participating, on the basis of such employment, in any other pension fund or
retirement system established under this Act.
(g) After December 31, 1959, any person employed in the law
department of the city, or municipal court or Board of Election
Commissioners of the city, who was a contributor and participant, on
December 31, 1959, in the annuity and benefit fund in operation in the
city on said date, by virtue of the Court and Law Department Employees'
Annuity Act or the Board of Election Commissioners Employees' Annuity
Act.
After December 31, 1959, the foregoing definition includes any other
person employed or to be employed in the law department, or municipal
court (other than as a judge), or Board of Election Commissioners (if
his salary is provided by appropriation of the city council of the city
and his salary paid by the city) -- subject, however, in the case of such
persons not participants on December 31, 1959, to compliance with the
same qualifications and restrictions otherwise set forth in this Section
and made generally applicable to employees or officers of the city
concerning eligibility for participation or membership.
Notwithstanding any other provision in this Section, any person who first becomes employed in the law department of the city on or after the effective date of this amendatory Act of the 100th General Assembly shall be included within the foregoing definition, effective upon the date the person first becomes so employed, regardless of the nature of the appointment the person holds under the provisions of a personnel ordinance. (h) After December 31, 1965, any person employed in the public
library of the city -- and any other person -- who was a contributor and
participant, on December 31, 1965, in the pension fund in operation in
the city on said date, by virtue of the Public Library Employees'
Pension Act.
(i) After December 31, 1968, any person employed in the house of
correction of the city, who was a contributor and participant, on
December 31, 1968, in the pension fund in operation in the city on said
date, by virtue of the House of Correction Employees' Pension Act.
(j) Any person employed full-time on or after the effective date of this
amendatory Act of the 92nd General Assembly by the Chicago Housing Authority
who has elected to participate in this Fund as provided in subsection (a) of
Section 8-230.9.
(k) Any person employed full-time by the Public Building Commission of
the city who has elected to participate in this Fund as provided in subsection
(d) of Section 8-230.7.
(Source: P.A. 102-15, eff. 6-17-21.)
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(40 ILCS 5/8-114) (from Ch. 108 1/2, par. 8-114)
Sec. 8-114. Present employee. "Present employee":
(a) Any employee of an employer, or the board, on the | ||
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(b) Any person who becomes an employee of the Board | ||
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(c) Any person who becomes an employee of the | ||
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(d) Any person who becomes an employee of the Public | ||
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(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/8-115) (from Ch. 108 1/2, par. 8-115)
Sec. 8-115.
Future entrant.
"Future entrant":
(a) Any employee of an employer or of the board, employed for the first
time on or after the effective date.
(b) Any person who becomes an employee of the Board of Education for the
first time on or after the effective date, and who was a contributor on
June 30, 1923, to any municipal pension fund then in operation in the city
under the Public School Employees' Pension Act of 1903. Any such employee
shall be considered a municipal employee during the entire time he has been
in the service of the Board of Education.
(c) Any person who becomes an employee of a municipal court or law
department or Board of Election Commissioners for the first time on or
after the effective date, and who was a participant on December 31, 1959,
in either of the funds in operation in the city on December 31, 1959,
created under the Court and Law Department Employees' Annuity Act or the
Board of Election Commissioners Employees' Annuity Act. Any such employee
shall be considered a municipal employee during the entire time he has been
in the service of the municipal court, law department, or Board of Election
Commissioners.
(d) Any person who becomes an employee of the Public Library or a
participant and contributor to the Public Library Employees' Pension Fund
for the first time on or after the effective date, and who was a
contributor and participant on December 31, 1965 in such fund created under
the Public Library Employees' Pension Act in operation in the city on
December 31, 1965. Any such person shall be considered a municipal employee
during the entire time he has been in the service of the Public Library or
during the entire time for which he was covered, as an employee, in the
fund created under the aforesaid Act.
(e) Any person who becomes an employee of the house of correction or a
participant and contributor to the House of Correction Employees' Pension
Fund for the first time on or after the effective date, and who was a
contributor and participant on December 31, 1968 in such fund created under
the House of Correction Employees' Pension Act in operation in the City
on December 31, 1968. Any such person shall be considered a municipal
employee during the entire time he has been in the service of the House of
Correction.
(Source: P.A. 91-357, eff. 7-29-99.)
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(40 ILCS 5/8-116) (from Ch. 108 1/2, par. 8-116)
Sec. 8-116.
Service, term of service, period of service, years of service.
"Service", "term of service", "period of service", "years of service":
Service as described in this Article, except that for any person who on
December 31, 1959, was a participant in a fund created by the Court and Law
Department Employees' Annuity Act or the Board of Election Commissioners
Employees' Annuity Act, service shall include all periods prior to
January 1, 1960, credited as service in such other fund, which service
shall be credited on January 1, 1960, in the fund herein provided for--on
the basis, and for such total or fractional number of days, months, or
years, to his credit on December 31, 1959, in such other fund under the
provisions of the law governing the fund in which he was then a
participant.
In the case of any person who on December 31, 1965 was a participant and
contributor in the fund created under the Public Library Employees' Pension
Act, in operation in the city on December 31, 1965, service prior to
January 1, 1966 shall be credited and shall include all periods prior to
January 1, 1966, credited as service in such fund, which service shall be
credited on January 1, 1966 in the fund herein provided for--on the basis,
and for such total or fractional number of days, months, or years, to his
credit on December 31, 1965 in such other fund under the provisions of the
law governing such said fund in which he was then a participant. Service
rendered thereafter shall be credited as service on the basis as described
in this Article.
In the case of any person who on December 31, 1968 was a participant and
contributor in the fund created under the House of Correction Employees'
Pension Act, in operation in the city on December 31, 1968, service prior
to January 1, 1969 shall be credited and shall include all periods prior to
January 1, 1969, credited as service in such fund, which service shall be
credited on January 1, 1969 in the fund herein provided for--on the basis,
and for such total or fractional number of days, months, or years, to his
credit on December 31, 1968 in such other fund under the provisions of the
law governing such fund in which he was then a participant. Service
rendered thereafter shall be credited as service on the basis as described
in this Article.
(Source: Laws 1968, p. 181.)
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(40 ILCS 5/8-117) (from Ch. 108 1/2, par. 8-117)
Sec. 8-117.
Salary.
"Salary": Annual salary of an employee as follows:
(a) Beginning on the effective date and prior to July 1, 1947,
$3,000; and beginning on July 1, 1947 and prior to July 1, 1953, $4,800;
and beginning on July 1, 1953 and prior to July 1, 1957, $6,000 shall be
the maximum amount of annual salary of any employee which shall be
considered for any purpose hereunder.
(b) If appropriated, fixed or arranged on an annual basis, beginning
July 1, 1957, the actual sum payable during the year if the employee
worked the full normal working time in his position, at the rate of
compensation,
exclusive of overtime and final vacation, appropriated or fixed as salary or
wages for service in the position.
(c) If appropriated, fixed or arranged on other than an annual
basis, beginning July 1, 1957, the applicable schedules specified in
Sections 8-233 and 8-235 shall be used for conversion of the salary
to an annual basis.
(d) Beginning July 13, 1941, if the city provides lodging for an
employee without charge, his salary shall be considered to be $120 a
year more than the amount payable as salary for the year; the salary of
an employee for whom daily meals are provided without charge by the city
shall be considered to be $120 a year more than the amount payable as
his salary for the year, for each such daily meal, not exceeding three
per day.
(e) Beginning September 19, 1981, the salary of a person who was or is
an employee of a Board of Education on or after that date shall include the
amount of employee contributions, if any, picked up by the employer for
that employee under Section 8-174.1.
(Source: P.A. 91-357, eff. 7-29-99.)
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(40 ILCS 5/8-118) (from Ch. 108 1/2, par. 8-118)
Sec. 8-118.
Actual compensation.
"Actual compensation": Beginning July 3, 1935, and prior to July 1,
1947, the actual sum without limitation and beginning July 1, 1947 and
prior to July 1, 1953, the actual sum not in excess of $4,800; and
beginning July 1, 1953 the actual sum not in excess of $6,000 a year,
appropriated by the employer or paid by the board as salary or wages, for
service in any position held by an employee.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-119) (from Ch. 108 1/2, par. 8-119)
Sec. 8-119.
Disability.
"Disability": A physical or mental incapacity as the result of which an
employee is unable to perform the duties of his assigned position.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-120) (from Ch. 108 1/2, par. 8-120)
Sec. 8-120. Child or children. "Child" or "children": The natural child or children, or any child or
children legally adopted by an employee.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/8-121) (from Ch. 108 1/2, par. 8-121)
Sec. 8-121.
Withdrawal from service or withdrawal.
"Withdrawal from service" or "withdrawal": Discharge or resignation of
an employee.
For the purpose of improving sums to the credit of municipal employees
for annuity purposes at the 3%, 3 1/2% or 4% per annum interest rate herein
provided, re-entrance into service within 12 months after withdrawal from
service by persons who have not received a refund under this Article shall
be considered continuation in service; and for refund purposes a withdrawal
from service shall not be final until 30 days after the effective date of
the withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-122) (from Ch. 108 1/2, par. 8-122)
Sec. 8-122.
Assets.
"Assets": The total value of cash, securities and other property held.
Bonds shall be valued at their amortized book values.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-123) (from Ch. 108 1/2, par. 8-123)
Sec. 8-123.
Municipal pension fund.
"Municipal pension fund": Any pension fund created and operated under
"An Act to provide for the formation and disbursements of a pension fund in
cities, villages and incorporated towns having a population exceeding
100,000 inhabitants for municipal employees appointed to their positions,
under and by virtue of an Act entitled, 'An Act to regulate the civil
service of cities', approved and in force March 20, 1895, and for those
who are appointed prior to the passage of said Act and who are now in the
service of such city, village or town", approved May 31, 1911, as
amended, or under "An Act to provide for the formation and disbursement
of a public school employees' pension fund in cities having a population
exceeding one hundred thousand inhabitants", approved May 15, 1903, as
amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-124) (from Ch. 108 1/2, par. 8-124)
Sec. 8-124.
Effective rate of interest, interest at the effective rate or interest.
"Effective rate of interest", "interest at the effective rate" or
"interest": Interest at 4% per annum for an employee who was a contributor
on January 1, 1952; and at 3% per annum for an employee who becomes a
contributor after January 1, 1952. In all cases involving reserves,
credits, transfers, and charges, "effective rate of interest", "interest at
the effective rate" or "interest" shall be applied at these rates.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
Sec. 8-125. Annuity.
"Annuity": Equal monthly payments for life, unless otherwise specified.
For annuities taking effect before January 1, 1998, the first payment
shall be due and payable one month after the occurrence
of the event upon which payment of the annuity depends, and the last
payment shall be due and payable as of the date of the annuitant's death
and shall be prorated from the date of the last preceding payment to the
date of death for deaths that occur on or before March 31, 2000. All
payments made
on or after April 1, 2000 shall be made on the first day of the calendar month
and the last payment shall be made on the first day of the calendar month in
which the annuity payment period ends. All payments for months beginning with
April of 2000 shall be for the entire calendar month, without proration. A pro
rata amount shall be paid for that part of the month from the March 2000
annuity payment date through March 31, 2000.
For annuities taking effect on or after January 1, 1998,
payments shall be made as of the first day of the calendar
month, with the first payment to be made
as of the first day of the calendar month coincidental with or next
following the first day of the annuity payment period, and the last payment
to be made as of the first day of the calendar month in which the annuity
payment period ends. For annuities taking effect on or
after January 1, 1998, all payments shall be for the entire calendar month,
without proration. The date on which the annuity payment period begins shall not be prior to termination or more than one year prior to receipt by the board of the written application for benefits.
For the purposes of this Section, the "annuity payment period" means the
period beginning on the day after the occurrence of the event upon which
payment of the annuity depends, and ending on the day upon which the death of
the annuitant or other event terminating the annuity occurs.
(Source: P.A. 101-69, eff. 7-12-19.)
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(40 ILCS 5/8-126) (from Ch. 108 1/2, par. 8-126)
Sec. 8-126.
Persons to whom article does not apply.
(A) This Article
does not apply to any of the following persons:
(a) Any person employed in a position the duties of which will not
ordinarily permit the following periods of service during a calendar
year: - (1) 4 months in any case where the salary or wage is on a
monthly basis; (2) 17 weeks in any case where the salary or wage is on a
weekly basis; (3) 100 days in any case where the salary or wage is on a
daily basis; or (4) 700 hours in any case where the salary or wage is on
an hourly basis;
(b) Any person employed in a position classified by the civil
service commission of the city, or by the personnel office in a city
with a personnel ordinance, as in the labor service unless he is a
participant in a Municipal Pension Fund in operation in the city on the
effective date, or unless he was employed in such position, if he was in
the service of the employer on the effective date, and is not a
participant in any such pension fund, if within 6 months thereafter he
applies in writing to the board to be included under this Article;
(c) Any person who enters service at age 65 or more prior to January
1, 1979, or who enters the service at age 70 or more subsequent to January
1, 1979, or who has not
become a contributor prior to such ages;
(d) Any person employed by an employer or the board while a
contributor or eligible to contribute to any annuity and benefit fund,
annuity and retirement fund or any pension fund now or hereafter in
operation in such city for the benefit of employees of the employer,
except the annuity and benefit fund herein provided for or a Municipal
Pension Fund, or while receiving a pension or annuity, other than
widow's or child's annuity, from any of such aforesaid funds; or
(e) Any person transferred to the employment of an employer by
virtue of the "Exchange of Functions Act of 1957".
(B) The board of trustees may, by resolution, exclude persons who
become employees after June 30, 1979 as public service employment
program participants under the Federal Comprehensive Employment and
Training Act and whose wages or fringe benefits are paid in whole or in
part by funds provided under such Act.
(Source: P.A. 84-23.)
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(40 ILCS 5/8-126.1) (from Ch. 108 1/2, par. 8-126.1)
Sec. 8-126.1.
Gender.
The masculine gender whenever used in this Article includes the feminine
gender and all annuities and other benefits applicable to male employees
and their survivors, and the contributions to be made for widows' annuities
or other annuities, benefits, and refunds, shall apply with equal force to
female employees and their survivors, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/8-126.2) (from Ch. 108 1/2, par. 8-126.2)
Sec. 8-126.2.
Validation of Service.
Every participant in the Fund
on the effective date of this amendatory Act of 1979 shall be deemed to
have been a municipal employee throughout the entire period of his service
during which he was a contributor and participant and for which period of
service he is credited with the required contributions to the Fund for annuity
purposes. The period or term of service credited shall be based on the
applicable provisions of this Article relating thereto. Any past service
credited or annuity granted to any participant and contributor prior to
the effective date of this amendatory Act of 1979, based on the service
of any participant and contributor prior to or subsequent to the effective
date of the "Municipal Personnel Ordinance" of Chicago or the "Illinois
Municipal Code" relating to civil service of cities, shall be deemed validly
credited or granted for all purposes of this Article.
(Source: P.A. 81-782.)
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(40 ILCS 5/8-126.3) (from Ch. 108 1/2, par. 8-126.3)
Sec. 8-126.3.
Age Discrimination.
Notwithstanding any other
provisions in this Article, it is the intention of the General Assembly to
comply with the federal Age Discrimination in Employment Act of 1967, as
amended by the Age Discrimination in Employment Amendments of 1986 and the
Omnibus Budget Reconciliation Act of 1986, as required with respect to
benefits for older individuals. For this purpose, if required, the
following changes shall govern with respect to other Sections of this
Article, effective January 1, 1988 unless otherwise specified.
(1) Contributions. Beginning immediately, the spouse contribution
shall not cease at age 65, but shall continue during the term of service.
Beginning immediately, concurrent city contributions shall be made
during the term of service.
(2) Money purchase accounts "fixed" at age 65. Beginning January 1,
1988, for all purposes, accruals after age 65 for the accounts of those
employees who have not withdrawn or retired shall be "unfixed" with
interest from the date fixed to January 1, 1988, without any contribution
from the time originally fixed until the effective date of this amendatory
Act of 1989. Thereafter, all
money purchase accounts shall not be "fixed", but shall continue to accrue
until time of withdrawal. No contributions are permitted from the time
"fixed" until the time "unfixed".
(3) Employee money purchase annuity after age 65. Beginning January 1,
1988, all money purchase annuities shall be computed without limitation for
age at time of withdrawal and without being "fixed" at any limiting age.
(4) Disability benefits. Beginning January 1, 1987, the age 70 limitation is removed.
(5) Widows and wives not entitled to annuity. Beginning January 1,
1988, there shall be no requirement that marriage take place before the
employee attained age 65. Any "no spouse" refund must be repaid with
interest before a spouse annuity is payable.
(6) Children. Beginning January 1, 1988, there shall be no age 65
requirement on the employee age for a child's annuity.
(7) Service credit. Beginning January 1, 1987, service credit shall
include any period of disability after age 70 for which the participant
receives Workers' Compensation benefits and during which the participant
did not receive a disability benefit from the fund but could have except
for the age 70 limitation.
(8) Compensation and supplemental annuities. The age condition shall remain at 65.
(9) Accounting. Beginning January 1, 1988, or as soon as practical, the
Annuity Payment Fund Accounts and the Prior Service Fund Accounts "fixed"
shall be "unfixed" and the appropriate amounts returned to the Salary
Deduction Fund Account and the corresponding City Contribution Fund Account.
(10) Refunds. Beginning immediately, there shall be no in-service
distribution of a "no spouse" refund. Such distribution, if any, shall be
made as otherwise provided. Likewise, there shall be no other refund
of deductions after fixed or excess cost. Any "no spouse" refund must be repaid with
interest before a spouse annuity is payable.
(11) Re-entry into service. Beginning January 1, 1988, for any re-entry
into service after age 65, the employee's money purchase annuity and the
widow's money purchase annuity may be recomputed if it is more beneficial to do so.
(12) Membership. Beginning January 1, 1988, the age 70 limitation for
membership shall be removed if federal law or regulation should require it.
Accordingly, any person age 70 or older may elect to have this Article
apply by filing written notice of such intent with the retirement board
within 4 months after the date of entering service.
(13) Computation. Benefits using accruals after age 65 will begin to be
computed January 1, 1988. No benefits will be recomputed for any annuitant
who has withdrawn before January 1, 1988.
(Source: P.A. 86-272.)
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(40 ILCS 5/8-127) (from Ch. 108 1/2, par. 8-127)
Sec. 8-127.
Time of fixing annuities-Waiver.
No annuity or disability benefit shall be fixed, granted or paid under
this Article before the effective date.
Any retired employee or widow annuitant may execute a waiver of his or
her right to receive all or part of the total annuity. A waiver shall take
effect upon its being filed with the board, and may not be revoked after it
is executed and filed, except within the first 30 days after being filed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-128) (from Ch. 108 1/2, par. 8-128)
Sec. 8-128.
Prior service annuity-When due.
A "Prior Service Annuity" shall be credited to present employees in
accordance with the 1921 Act for service rendered prior to the effective
date.
Each such credit shall be improved by interest at the effective rate
during the time the employee is in service until his annuity is fixed. In
determining such credit, the employee's annual salary for his entire period
of prior service shall be the salary in effect on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-129) (from Ch. 108 1/2, par. 8-129)
Sec. 8-129.
Age and service annuity.
An "Age and Service Annuity" shall be credited employees for service
rendered after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-130) (from Ch. 108 1/2, par. 8-130)
Sec. 8-130.
Annuities - Present employees and future entrants
attaining age 65 in service.
(a) A present employee who attains age 65 or more in service having
age and service and prior service annuity credits sufficient to provide
an annuity as of his age at such time equal to the amount he would have
had if employee contributions and city
contributions had been made in
accordance with this Article during his entire term of service until age
65, shall be entitled to such annuity upon withdrawal.
(b) A present employee who attains age 65 or more in service and who
does not have the credits described in paragraph (a), shall be entitled,
on the date of withdrawal, to such age and service annuity and prior
service annuity provided from the total amounts to his credit therefor
on the date of his withdrawal.
(c) A future entrant who attains age 65 in service shall be
entitled, upon withdrawal, to age and service annuity provided from the
sum accumulated for such annuity at such age.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-131) (from Ch. 108 1/2, par. 8-131)
Sec. 8-131.
Annuities-Present employees and future entrants-Withdrawal after age 60
and prior to 65.
An employee who attains age 60 or more but less than age 65 in service,
upon withdrawal, shall be entitled to annuity as of his attained age at
such time as follows:
1. Present Employee--age and service and prior service annuities
provided from the total credits for such annuities on the date of
withdrawal.
2. Future entrant--age and service annuity provided from the total
credits for such annuity on the date of withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-132) (from Ch. 108 1/2, par. 8-132)
Sec. 8-132.
Annuities - Present employees and future
entrants - Withdrawal after age 55 and prior to 60.
An employee who attains age 55 or more but less than age 60 in
service having 10 or more years of service at date of withdrawal shall
be entitled to annuity, from the date of withdrawal, as follows:
1. Present employee and future entrant with 20 or more years of
service - age and service annuity provided from the total credits from
employee contributions and
city contributions for such annuity, and, for
a present employee, prior service annuity from the credits for such
annuity.
2. Present employee and future entrant with 10 or more but less than
20 years of service - age and service annuity provided from sums credited
for such annuity from employee contributions, plus 1/10 of the
accumulations for such annuity from city contributions for each year of
service after the first 10 years; and in addition in the case of a
present employee, the credits for prior service annuity on account of
employee contributions to any Municipal Pension Fund in operation in the
city on the effective date, or on June 30, 1923, and 1/10 of the prior
service annuity credit under The 1921 Act and this Article, for each
year of service after the first 10 years.
Any such annuity shall be computed as of the employee's age on the
date of withdrawal.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-133) (from Ch. 108 1/2, par. 8-133)
Sec. 8-133.
Annuities - Present employees and future
entrants - Withdrawal before age 55.
An employee who withdraws after 10 years of service before age 55 and
attains age 55 while out of service, shall be entitled to annuity, after
attainment of age 55, as follows:
1. Present employee and future entrant with 20 or more years of
service - age and service annuity provided from the total credits from
employee contributions and
city contributions for such annuity, and, in
addition in the case of a present employee, prior service annuity from
the credits for such annuity.
2. Present employee and future entrant with 10 or more but less than
20 years of service - age and service annuity provided from sums
accumulated for such annuities from employee contributions, plus 1/10 of
the city contributions for each year of service after the first 10
years; and in addition, in the case of a present employee, the credits
for prior service annuity on account of employee contributions to any
Municipal Pension Fund in operation in the city on the effective date,
or on June 30, 1923, and 1/10 of the prior service annuity credit under
The 1921 Act and this Article, for each year of service after the first
10 years.
Any such annuity shall be computed as though the employee were age 55
when granted regardless of his actual age at the time of application. An
employee shall not be entitled to annuity for any period between the
date he attains age 55 and the date of application for annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-134) (from Ch. 108 1/2, par. 8-134)
Sec. 8-134.
Annuities-Re-entry into service.
Annuity in excess of that fixed in Sections 8-131, 8-132 or 8-133
shall not be granted to any employee described therein, unless he reentered
service before age 65. If such reentry occurs, his annuity shall be
provided in accordance with Sections 8-130 to 8-133, inclusive, whichever
are applicable.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-135) (from Ch. 108 1/2, par. 8-135)
Sec. 8-135.
Service after time of fixing of annuity.
Service rendered after the time of fixing an annuity shall not be
considered for age and service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-136) (from Ch. 108 1/2, par. 8-136)
Sec. 8-136.
Minimum annuities.
A present employee who was a contributor to a municipal pension fund
which has been merged into and become part of the fund in accordance with
The 1921 Act or this Article who withdraws after such merger having 20 or
more years of service and for whom the amount of annuity provided by this
Article is less than the amount stated in this section has a right to
receive annuity as follows:
(a) $600 A year after the date of withdrawal if he is age 55 or more at
such time.
(b) $600 A year after the date he becomes age 55 if he is less than such
age when he withdraws.
In addition to the combined age and service and prior service annuities
to which an employee is entitled (except one in receipt of pension or
annuity from the annuity and benefit fund herein provided for on June 30,
1935), an employee with 35 or more years of service who has attained age 65
or more at the time he withdraws, is entitled to receive a sum equal to the
difference between the combined age and service annuity and prior service
annuity, and 50% of his highest "actual compensation", but not in excess of
33 1/3% of the combined age and service annuity and prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-136.1) (from Ch. 108 1/2, par. 8-136.1)
Sec. 8-136.1.
Minimum annuities for certain public library employees.
An employee who was a contributor to and participant on December 31,
1965 in a Public Library Employes' Pension Fund which has been merged into
and becomes part of the fund provided for in this Article, and who
withdraws after such merger, shall have an optional right, in lieu of any
other annuity, to receive annuity as follows:
(a) $60.00 A month after the date of withdrawal if he then has 20 or
more years of service and is age 50 or more years, plus an additional $7.00
a month for each additional full year of service after 20 years, with such
total monthly annuity not to exceed 60% of the maximum monthly salary
received during the employee's term of service, or the sum of $200.00,
whichever is the lesser.
(b) $30.00 A month after the date of withdrawal if he has 10 or more but
less than 20 years of service and is then age 55 or more years, plus an
additional $3.00 a month for each additional full year of service after 10
years.
(Source: Laws 1965, p. 2300.)
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(40 ILCS 5/8-136.2) (from Ch. 108 1/2, par. 8-136.2)
Sec. 8-136.2.
Minimum annuities for certain house of correction employees
and their widows.
Any employee who was a contributor to and participant on December 31,
1968 in a House of Correction Employees' Pension Fund which has been merged
into and become part of the fund provided for in this Article, and who
withdraws after such merger, and has not withdrawn the contributions made
by him to such Fund, shall have the optional right, in lieu of any other
annuity provided for him under the provisions of this Article, to receive
an annuity for life in the following indicated amount: provided, that the
salary to be considered for the purpose of computation of such annuity
under this Section, shall be the rate of salary attached to such employee's
position in the house of correction at the date of his separation from such
service, but in no event to exceed the maximum rate of salary in the amount
and rate paid on and as of December 31, 1968, then considered as maximum
for salary deduction purposes under the provisions of such House of
Correction Employees' Pension Act.
(a) For an employee who has contributed for a combined total of 25 years
to such House of Correction Employees' Pension Fund and the Fund herein
provided for, and is at least 55 years of age, an annuity of 40% of salary;
provided, if such contributor remains in service until he serves 30 years
or attains an age of 60 years, he shall receive an annuity of 45% of
salary; and provided further if such contributor remains in service until
he serves 35 years or attains an age of 65 years, the amount of the annuity
shall be 50% of salary. Any such employee who has contributed for a
combined total of more than 10 years but less than 25 years, an annuity,
after attainment of the age of 55 years, equal to 1.15 of the amount he
would have received had he remained a contributor until he had been in
service for 25 years, for each year of service over 10 years; provided,
that for the purposes of this Section service for 8 months in any one
calendar year shall be considered a year of service for that year.
(b) Any person receiving a disability pension from such aforesaid House
of Correction Pension Fund on December 31, 1968, shall, if he does not
return to the service, because of continued disablement, be entitled to a
continuation of his disability pension, while disabled, in accord with the
provisions of the law governing the superseded House of Correction Pension
Fund, and upon termination of such pension, be then entitled to receive the
annuity specified in and by the Act which provided for such superseded
House of Correction Pension Fund, as such Act was applicable to him on
December 31, 1968.
(c) The widow of any employee who on December 31, 1968 was a contributor
to and participant in a House of Correction Employees' Pension Fund which
has been merged into and become a part of the fund provided for in this
Article, whose husband dies subsequent to such date, while in the service
or after becoming an annuitant, and who is credited with 15 or more years
of contributing service, shall, upon his death, provided she was his wife
while he was still in service and before he attained the age of 65 years,
and had been such wife for at least 2 years before his death, be entitled
to a widow's annuity of $125.00 a month to continue as long as she remains
unmarried. The foregoing provisions of this paragraph shall not apply if
the annuity for such widow, computed under other provisions of this
Article, is greater than the amount indicated in this paragraph.
(d) The widow of an employee who is retired and receiving an annuity
from the House of Correction Employees' Pension Fund on December 31, 1968,
shall, if eligible therefor, receive a widow's annuity after his death in
accord with the provisions of the law governing the superseded House of
Correction Employees' Pension Fund as of the date her husband retired from
the service of such house of correction.
(Source: Laws 1968, p. 181.)
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(40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
Sec. 8-137. Automatic increase in annuity.
(a) An employee who retired or retires from service after December 31,
1959 and before January 1, 1987, having attained age 60 or more, shall,
in January of the year
after the year in which the first anniversary of retirement occurs, have
the amount of his then fixed and payable monthly annuity increased by 1
1/2%, and such first fixed annuity as granted at retirement increased by
a further 1 1/2% in January of each year thereafter. Beginning with
January of the year 1972, such increases shall be at the rate of 2% in
lieu of the aforesaid specified 1 1/2%, and beginning with January of the
year 1984 such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases
shall be at the rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this Article. An
employee who retires on annuity after December 31, 1959 and before
January 1, 1987, but before age 60, shall receive such
increases beginning in January of the year after the year
in which he attains age 60.
An employee who retires from service on or after January 1, 1987 shall, upon
the first annuity payment date following the first anniversary of the date of
retirement, or upon the first annuity payment date following attainment of age
60, whichever occurs later, have his then fixed and payable monthly annuity
increased by 3%, and such annuity shall be increased by an additional 3% of the
original fixed annuity on the same date each year thereafter. Beginning in
January of 1999, such increases shall be at the rate of 3% of the currently
payable monthly annuity, including any increases previously granted under this
Article.
(a-5) Notwithstanding the provisions of subsection (a), upon the first
annuity payment date following (1) the third anniversary of retirement, (2)
the attainment of age 53, or (3) January 1, 2002, whichever
occurs latest,
the
monthly annuity of an employee who retires on annuity prior to the attainment
of age 60 and has not received an increase under subsection (a) shall
be
increased by 3%, and the annuity shall be increased by an additional
3% of the
current payable monthly annuity, including any
increases previously
granted
under this Article, on the same date each year thereafter. The increases
provided under this subsection are in lieu of the increases provided in
subsection (a).
(a-6) Notwithstanding the provisions of subsections (a) and (a-5), for all
calendar years following the year in which this amendatory Act of the 93rd
General Assembly takes effect, an increase in annuity under this Section that
would otherwise take effect at any time during the year shall instead take
effect in January of that year.
(b) Subsections (a), (a-5), and (a-6) are not
applicable to an employee retiring
and receiving a term annuity, as herein defined, nor to any otherwise
qualified employee who retires before he makes employee contributions (at
the 1/2 of 1% rate as provided in this Act) for this additional
annuity for not less than the equivalent of one full year. Such
employee, however, shall make arrangement to pay to the fund a balance
of such 1/2 of 1% contributions, based on his final salary, as will
bring such 1/2 of 1% contributions, computed without interest, to the
equivalent of or completion of one year's contributions.
Beginning with January, 1960, each employee shall contribute by means of
salary deductions 1/2 of 1% of each salary payment, concurrently with
and in addition to the employee contributions otherwise made for annuity
purposes.
Each such additional contribution shall be credited to an account in
the prior service annuity reserve, to be used, together with city
contributions, to defray the cost of the specified annuity increments.
Any balance in such account at the beginning of each calendar year shall
be credited with interest at the rate of 3% per annum.
Such additional employee contributions are not refundable, except to
an employee who withdraws and applies for refund under this Article, and
in cases where a term annuity becomes payable. In such cases his
contributions shall be refunded, without interest, and charged to such
account in the prior service annuity reserve.
(Source: P.A. 103-443, eff. 8-4-23.) |
(40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
Sec. 8-137.1. Automatic increases in annuity for certain heretofore retired
participants.
A retired municipal employee who (a) is receiving annuity based on a
service credit of 20 or more years regardless of age at retirement or based
on a service credit of 15 or more years with retirement at age 55 or over,
and (b) does not qualify for the automatic increases in annuity provided
for in Section 8-137 of this Article, and (c) elects to make a contribution
to the Fund at a time and manner prescribed by the Retirement Board, of a
sum equal to 1% of the amount of final monthly salary times the number of
full years of service on which the annuity was based in those cases where
the annuity was computed on the money purchase formula and in those cases
in which the annuity was computed under the minimum annuity formula
provisions of this Article a sum equal to 1% of the average monthly salary
on which the annuity was based times such number of full years of service,
shall have his original fixed and payable monthly amount of annuity
increased in January of the year following the year in which he attains the
age of 65 years, if such age of 65 years is attained in the year 1969 or
later, by an amount equal to 1-1/2%, and by an equal additional 1-1/2% in
January of each year thereafter. Beginning with January of the year 1972,
such increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning January of the year 1984 such increases
shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
Whenever the retired municipal employee receiving annuity has attained
the age of 66 or more in 1969, he shall have such annuity increased in
January, 1970 by an amount equal to 1-1/2% multiplied by the number equal
to the number of months of January elapsing from and including January of
the year immediately following the year he attained the age of 65 if
retired at or before age 65, or from and including January of the year
immediately following the year of retirement if retired at an age greater
than 65, to and including January, 1970, and by an equal additional 1-1/2%
in January of each year thereafter. Beginning with January of the year
1972, such increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning January of the year 1984 such increases
shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
To defray the annual cost of such increases, the annual interest income
of the Fund, accruing from investments held by the Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over and above
4% a year, shall be used to the extent necessary and available to finance
the cost of such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year 1969, to a
Fund account designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Section 8-221. The sums
contributed by annuitants as provided for in this Section shall also be
placed in the aforesaid Supplementary Payment Reserve and shall be applied
and used for the purposes of such Fund account, together with the aforesaid
interest.
In the event the monies in the Supplementary Payment Reserve in any year
arising from: (1) the available interest income as defined hereinbefore and
accruing in the preceding year above 4% a year and (2) the contributions by
retired persons, as set forth hereinbefore, are insufficient to make the
total payments to all persons estimated to be entitled to the annuity
increases specified hereinbefore, then (3) any interest earnings over 4% a
year beginning with the year 1969 which were not previously used to finance
such increases and which were transferred to the Prior Service Annuity
Reserve may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current year, and such
sums shall be transferred from the Prior Service Annuity Reserve.
In the event the total monies available in the Supplementary Payment
Reserve from the preceding indicated sources are insufficient to make the
total payments to all persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies available to the
total of the total payments for that year shall be paid to each person for
that year.
The Fund shall be obligated for the payment of the increases in annuity
as provided for in this Section only to the extent that the assets for such
purpose, as specified herein, are available.
(Source: P.A. 103-443, eff. 8-4-23.) |
(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with at least 20
years of service, for whom the amount of age and service and prior service
annuity combined is less than the amount stated in this Section, shall
from the date of withdrawal, instead of all annuities
otherwise provided, be entitled to receive an annuity for life of $150 a
year, plus 1 1/2% for each year of service, to and including 20 years, and
1 2/3% for each year of service over 20 years, of his highest average
annual salary for any 4 consecutive years within the last 10 years of
service immediately preceding the date of withdrawal.
An employee who withdraws after 20 or more years of service, before age
65, shall be entitled to such annuity, to begin not earlier than upon
attained age of 55 years if under such age at withdrawal, reduced by 2% for
each full year or fractional part thereof that his attained age is less
than 65, plus an additional 2% reduction for each full year or fractional
part thereof that his attained age when annuity is to begin is less than 60
so that the total reduction at age 55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age 60 or over,
with 20 or more years of service, for whom the age and service and prior
service annuity combined, is less than the amount stated in this paragraph,
shall, from the date of withdrawal, instead of such annuities, be entitled
to receive an annuity for life equal to 1 2/3% for each year of service, of
the highest average annual salary for any 5 consecutive years within the
last 10 years of service immediately preceding the date of withdrawal;
provided, that in the case of any employee who withdraws on or after July
1, 1971, such employee age 60 or over with 20 or more years of service,
shall receive an annuity for life equal to 1.67% for each of the
first 10 years of service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not exceeding 30; and
2.30% for each year of service in excess of 30, based on the highest
average annual salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before January 1,
1988, with 20 or more years of service, before age 60 years is entitled to
annuity, to begin not earlier than upon attained age of 55 years, if under
such age at withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60 if the employee was
born before January 1, 1936, or 0.5% for each such month if the employee
was born on or after January 1, 1936.
Any employee born before January 1, 1936, who withdraws with 20 or more
years of service, and any employee with 20 or more years of service who
withdraws on or after January 1, 1988, may elect to receive, in lieu of any
other employee annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for each of the
next 10 years of service, 2.20% for each year of service in excess of 20
but not exceeding 30, and 2.40% for each year of service in excess of 30,
of the highest average annual salary for any 4 consecutive
years within the last 10 years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55 years, if
under such age at withdrawal, reduced 0.25% for each full month or fractional
part thereof that his attained age when annuity is to begin is less than
60; except that an employee retiring on or after January 1, 1988, at age
55 or over but less than age 60, having at least 35 years of service,
or an employee retiring on or after July 1, 1990, at age 55 or over but
less than age 60, having at least 30 years of service,
or an employee retiring on or after the effective date of this amendatory
Act of 1997, at age 55 or over but less than age 60, having at least 25 years
of service, shall not be subject to the reduction in retirement annuity
because of retirement below age 60.
However, in the case of an employee who retired on or after January 1,
1985 but before January 1, 1988, at age 55 or older and with at least 35
years of service, and who was subject under this subsection (b) to the
reduction in retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and the retirement
annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with 20 or more years of
service, may elect to receive, in lieu of any other employee annuity provided
in this Section, an annuity for life equal to 2.20% for each year of service
if withdrawal is before January 1, 2002, or 2.40% for each year of
service if withdrawal is on or after January 1, 2002,
of the highest average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of withdrawal, to begin
not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced 0.25% for each
full month or fractional part thereof that his attained age when annuity is
to begin is less than 60; except that an employee retiring at age 55 or
over but less than age 60, having at least 30 years of service, shall not
be subject to the reduction in retirement annuity because of retirement below
age 60.
Any employee who withdraws on or after the effective date of this
amendatory Act of 1997 with 20 or more years of service may elect to receive,
in lieu of any other employee annuity provided in this Section, an annuity for
life equal to 2.20% for each year of service, if withdrawal is before
January 1, 2002, or 2.40% for each year of service if withdrawal is
on or
after January 1, 2002, of the highest average annual
salary for any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, to begin not earlier than upon
attainment of age 55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional part thereof that the
employee's attained age when annuity is to begin is less than 60; except that
an employee retiring at age 50 or over with at least 30 years of service or at
age 55 or over with at least 25 years of service shall not be subject to the
reduction in retirement annuity because of retirement below age 60.
The maximum annuity payable under part (a) and (b) of this Section shall
not exceed 70% of highest average annual salary in the case of an employee
who withdraws prior to July 1, 1971, 75% if withdrawal takes place on
or after July 1, 1971 and prior to January 1, 2002, or 80% if
withdrawal
takes place on or after January 1, 2002. For the
purpose of the minimum
annuity provided in this Section $1,500 is considered the minimum annual
salary for any year; and the maximum annual salary for the computation of such
annuity is $4,800 for any year before 1953, $6000 for the years 1953 to 1956,
inclusive, and the actual annual salary, as salary is defined in this Article,
for any year thereafter.
To preserve rights existing on December 31, 1959, for participants and
contributors on that date to the fund created by the Court and Law
Department Employees' Annuity Act, who became participants in the fund
provided for on January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his salary for annuity
purposes under paragraphs (a) and (b) of this Section, for all periods of
disability benefit subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose entire disability
benefit credit period expires before
attainment of age 55 while still disabled for service, is entitled upon
withdrawal to the larger of (1) the minimum annuity provided above, assuming he
is then age 55, and reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from his age and service
and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any former municipal
employee receiving an annuity from the fund who re-enters service as a
municipal employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(f) An employee in service on July 1, 1947, or who became a contributor
after July 1, 1947 and before attainment of age 70, who withdraws after age
65, with less than 20 years of service for whom the annuity has been fixed
under this Article shall, instead of the annuity so fixed, receive an
annuity as follows:
Such amount as he could have received had the accumulated amounts for
annuity been improved with interest at the effective rate to the date of
his withdrawal, or to attainment of age 70, whichever is earlier, and had
the city contributed to such earlier date for age and service annuity the
amount that it would have contributed had he been under age 65, after the
date his annuity was fixed in accordance with this Article, and assuming
his annuity were computed from such accumulations as of his age on such
earlier date. The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section if the employee
was credited with 20 years of service and would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an employee having
attained age 65 with at least 15 years of service who withdraws from
service on or after July 1, 1971 and whose annuity computed under other
provisions of this Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to 1% of the
highest average annual salary, as salary is defined and limited in this
Section for any 4 consecutive years within the last 10 years of service for
each year of service, plus the sum of $25 for each year of service. The
annuity shall not exceed 60% of such highest average annual salary.
(g-1) Instead of any other retirement annuity provided in this Article,
an employee who has at least 10 years of service and withdraws from service
on or after January 1, 1999 may elect to receive a retirement annuity for
life, beginning no earlier than upon attainment of age 60, equal to 2.2%
if withdrawal is before January 1, 2002, or 2.4% if withdrawal is on
or after January 1, 2002, of final average salary for each
year of service,
subject to a maximum of 75% of final average salary if withdrawal is before
January 1, 2002, or 80% if withdrawal is on or after January 1, 2002. For
the purpose of calculating this annuity, "final average salary" means the
highest average annual salary for any 4 consecutive years in the last 10 years
of service. Notwithstanding any provision of this subsection to the contrary, the "final average salary" for a participant that received credit under subsection (c) of Section 8-226 means the highest average salary for any 4 consecutive years (or any 8 consecutive years if the employee first became a participant on or after January 1, 2011) in the 10 years immediately prior to the leave of absence, and adding to that highest average salary, the product of (i) that highest average salary, (ii) the average percentage increase in the Consumer Price Index during each 12-month calendar year for the calendar years during the participant's leave of absence, and (iii) the length of the leave of absence in years, provided that this shall not exceed the participant's salary at the local labor organization. For purposes of this Section, the Consumer Price Index is the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.
(h) The minimum annuities provided under this Section shall be paid in
equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of this Section shall
be effective July 1, 1971 and apply in the case of every qualifying
employee withdrawing on or after July 1, 1971.
(j) The amendatory provisions of this amendatory Act of 1985 (P.A.
84-23) relating to the discount of annuity because of retirement prior to
attainment of age 60, and to the retirement formula, for those born before
January 1, 1936, shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(j-1) The changes made to this Section by Public Act 92-609 (increasing the retirement
formula to 2.4% per year of service and increasing the maximum to 80%) apply
to persons who withdraw from service on or after January 1, 2002, regardless
of whether that withdrawal takes place before the effective date of that Act. In the case of a person who withdraws from service
on or after January 1, 2002 but begins to receive a retirement annuity before
July 1, 2002, the annuity
shall be recalculated, with the increase resulting from Public Act 92-609
accruing from the date the retirement annuity
began. The changes made by Public Act 92-609 control over the changes made
by Public Act 92-599, as provided in Section 95 of P.A. 92-609.
(k) Beginning on January 1, 1999, the minimum amount of employee's annuity
shall be $850 per month for life for the following classes of employees,
without regard to the fact that withdrawal occurred prior to the effective date
of this amendatory Act of 1998:
(1) any employee annuitant alive and receiving a life | ||
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(2) any employee annuitant alive and receiving a term | ||
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(3) any employee annuitant alive and receiving a | ||
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(4) any employee annuitant withdrawing after age 60 | ||
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The increases granted under items (1), (2) and (3) of this subsection (k)
shall not be limited by any other Section of this Act.
(Source: P.A. 97-651, eff. 1-5-12; 98-756, eff. 7-16-14.)
|
(40 ILCS 5/8-138.1) (from Ch. 108 1/2, par. 8-138.1)
Sec. 8-138.1.
Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) be a current contributor to the Fund who, on | ||
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(2) have not previously retired under this Article;
(3) file with the Board before June 1, 1993, a | ||
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(4) withdraw from service on or after December 31, | ||
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(5) have attained age 55 on or before the date of | ||
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(6) by the date of withdrawal, have at least 10 years | ||
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A person is not eligible for the benefits provided in this Section if the
person (i) elects to receive the alternative annuity for city officers
under Section 8-243.2, or (ii) elects to receive a retirement annuity
calculated under the alternative formula formerly set forth in Section
20-122.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). An eligible person must
establish at least the amount of creditable service necessary to bring his
or her total creditable service, including service in this Fund, service
established under this Section, and service in any of the other
participating systems under the Retirement Systems Reciprocal Act, to a
minimum of 20 years.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
8-138, but with the following exceptions:
(1) The annuity shall not be subject to reduction | ||
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(2) The annuity shall be subject to a maximum of 80% | ||
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(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on November
1, 1992. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall be deemed
contributions made by employees for annuity purposes under Section 8-173,
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 8-165, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(Source: P.A. 87-1265.)
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(40 ILCS 5/8-138.2)
Sec. 8-138.2.
Early retirement for certain public health workers.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) be a current contributor to the Fund who, on | ||
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(2) have not previously retired under this Article;
(3) file with the Board before March 1, 1994, a | ||
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(4) withdraw from service on or before March 31, 1994;
(5) have attained age 55 on or before June 30, 1993;
(6) by June 30, 1993, have at least 10 years of | ||
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A person is not eligible for the benefits provided in this Section if the
person (i) elects to receive the alternative annuity for city officers
under Section 8-243.2, (ii) elects to receive a retirement annuity
calculated under the alternative formula formerly set forth in Section
20-122, or (iii) receives any early retirement incentive under Section
8-138.1.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). An eligible person must
establish at least the amount of creditable service necessary to bring his
or her total creditable service, including service in this Fund, service
established under this Section, and service in any of the other
participating systems under the Retirement Systems Reciprocal Act, to a
minimum of 20 years.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
8-138, but with the following exceptions:
(1) The annuity shall not be subject to reduction | ||
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(2) The annuity shall be subject to a maximum of 80% | ||
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(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on November
1, 1993. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall be deemed
contributions made by employees for annuity purposes under Section 8-173,
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 8-165, an annuitant who reenters service under
this Article or Article 14 after receiving a retirement annuity based on
benefits provided under this Section thereby forfeits the right to continue to
receive those benefits, and shall have his or her retirement annuity
recalculated at the appropriate time without the benefits provided in this
Section.
(Source: P.A. 88-535.)
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(40 ILCS 5/8-138.3)
Sec. 8-138.3.
Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) be a current contributor to the Fund who, on | ||
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(2) have not previously retired under this Article;
(3) file with the Board before June 1, 1998, a | ||
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(4) withdraw from service on or after December 31, | ||
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(5) by the date of withdrawal: (i) have attained age | ||
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A person is not eligible for the benefits provided in this Section if the
person (i) elects to receive the alternative annuity for city officers
under Section 8-243.2, or (ii) elects to receive a retirement annuity
calculated under the alternative formula formerly set forth in Section
20-122.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). An eligible person must
establish at least the amount of creditable service necessary to bring his
or her total creditable service, including service in this Fund, service
established under this Section, and service in any of the other
participating systems under the Retirement Systems Reciprocal Act, to a
minimum of 20 years.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
8-138, but with the following exceptions:
(1) The annuity shall not be subject to reduction | ||
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(2) The annuity shall be subject to a maximum of 80% | ||
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(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on November
1, 1997. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall be deemed
contributions made by employees for annuity purposes under Section 8-173,
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 8-165, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(Source: P.A. 90-511, eff. 8-22-97.)
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(40 ILCS 5/8-138.4)
Sec. 8-138.4. Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) have been a contributor to the Fund who (i) on | ||
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(2) have not previously retired under this Article;
(3) file with the Board on or before January 30, | ||
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(4) withdraw from service on or after January 31, | ||
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(5) by the date of withdrawal or by February 29, | ||
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A person is not eligible for the benefits provided in this Section if the
person (i) elects to receive the alternative annuity for city officers
under Section 8-243.2, or (ii) elects to receive a retirement annuity
calculated under the alternative formula formerly set forth in Section
20-122.
(a-5) To ensure that the efficient operation of employers under this Article
is not jeopardized by the simultaneous retirement of large numbers of critical
personnel, each employer may, for its critical employees, extend the February 29, 2004 deadline for terminating employment under this Article established in
subdivision (a)(4) of this Section to a date not later than May 31, 2004 by
so
notifying the Fund by January 31, 2004.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). In addition, for each month of
creditable service established under this Section, a person's age at retirement
shall be deemed to be one month older than it actually is, except for
determination of eligibility for automatic annual increases under Sections
8-137 and 8-137.1. Furthermore, an eligible employee must establish at least
the amount of age and creditable service necessary to bring his or her age and
total creditable service, including service
in this Fund, service established under this Section, and service in any of the
other participating
systems under the Retirement Systems Reciprocal Act, to a minimum that will
satisfy the
requirements of Section 8-138.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
8-138, except that the annuity shall not be subject to reduction because of
withdrawal or commencement of the annuity before attainment of age 60.
(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate
on October 15, 2003. The employee may elect to pay the entire contribution
before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall not be deemed
contributions made by employees for annuity purposes under Section 8-173,
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 8-165, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(f) No employer action in declaring an employee to be a critical employee pursuant to subsection (a-5) shall be construed as an impairment of any pension benefit or entitlement. No early retirement option or resultant benefit conferred under this Section shall, in any manner, vest for any employee until the earlier date of the employer's decision to release the employee from service or May 31, 2004.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/8-138.5)
Sec. 8-138.5. Early retirement incentive for employees who have earned
maximum pension benefits.
(a) A person who is eligible for the benefits provided
under Section 8-138.4 and who, if he or she had retired on or before February 29, 2004,
would have been entitled to a pension equal to 80% of his or her highest
average annual salary for any 4 consecutive years within the last 10 years of
service immediately preceding February 29, 2004 without receiving the benefits
provided in Section 8-138.4, may elect, by filing written
election with the Fund by January 30, 2004, to receive a lump sum from the
Fund equal to 100% of his or her salary on
February 29, 2004 or the date of withdrawal, whichever is earlier. To be
eligible to receive the benefit provided under this Section, the person must
withdraw from service on or after January 31, 2004 and on or before February 29, 2004 (or the date established under subsection (b), if applicable). If a
person elects to receive the benefit provided under this
Section, his or her retirement annuity otherwise payable under Section 8-138
shall be reduced by an amount equal to the actuarial equivalent of the lump
sum.
(b) To ensure that the efficient operation of employers under this Article
is not jeopardized by the simultaneous retirement of large numbers of critical
personnel, each employer may, for its critical employees, extend the February 29,
2004 deadline for terminating employment under this Article established in
subdivision (a) of this Section to a date not later than May 31, 2004 by
so notifying the Fund by January 31, 2004.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
Sec. 8-139.
Reversionary annuity.
(a) An employee, prior to retirement on annuity, may elect to take a lesser
amount of annuity and provide, with the actuarial value of the amount by which
his annuity is reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by filing a written
designation with the board prior to retirement, and may be revoked by the
employee at any time before retirement. The death of the employee prior to
his retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant prior to the
employee's retirement shall automatically void the option. If the
reversionary annuitant dies after the employee's retirement, and before
the death of the employee annuitant, the reduced
annuity being paid to the retired employee annuitant shall be increased
to the amount of annuity before reduction for the reversionary annuity
and no reversionary annuity shall be payable.
The option is subject to the further condition that no reversionary annuity
shall be paid to a parent, child, brother, or sister if the employee dies
before the expiration of 365 days from the date his written
designation was filed with the board, even though he has retired and is
receiving a reduced annuity.
(c) The employee exercising this option shall not reduce his retirement
annuity by more than $400 a month, or elect to provide a
reversionary annuity of less than $50 per month. No option shall be permitted
if the reversionary annuity for a widow, when added to the widow's annuity
payable under this Article, exceeds 100% of the reduced annuity
payable to the employee.
(d) A reversionary annuity shall begin on the day following the death of
the annuitant and shall be paid as provided in Section 8-125.
(e) The increases in annuity provided in Section 8-137 of this Article
shall, as to an employee so electing a reduced annuity relate to the amount
of the original annuity, and such amount shall
constitute the annuity on
which such automatic increases shall be based.
(f) For annuities elected after June 30, 1983, the amount of the monthly
reversionary annuity shall be determined by multiplying the amount of the
monthly reduction in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in the age of
the employee and the age of the reversionary annuitant at the starting date
of the employee's annuity:
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(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98; 91-887, eff.
7-6-00.)
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(40 ILCS 5/8-140) (from Ch. 108 1/2, par. 8-140)
Sec. 8-140.
Widow's prior service annuity.
A "Widow's Prior Service Annuity", shall be credited for the widow of a
male present employee for service prior to the effective date, in
accordance with The 1921 Act and this Article, payable from and after the
death of the employee.
The amount so credited shall be improved by interest at the effective
rate until the employee retires from service or attains age 65, whichever
first occurs.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-141) (from Ch. 108 1/2, par. 8-141)
Sec. 8-141.
Widow's annuity.
A "Widow's Annuity" shall be credited for a widow of any male employee
covering service after the effective date, payable from and after his
death.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-142) (from Ch. 108 1/2, par. 8-142)
Sec. 8-142.
Widow's annuity-Present employee age 65 on effective date.
The widow of a present employee who attains age 65 or more on or before
the effective date is entitled, after his death, to an annuity fixed on the
date he becomes age 65.
The annuity shall be that provided from the credit for widow's prior
service annuity on a reversionary annuity basis on the effective date.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-143) (from Ch. 108 1/2, par. 8-143)
Sec. 8-143.
Widow's annuity-Present employees and future entrants attaining age 65 in
service.
The widow of a present employee who attains age 65 while in service
after the effective date, or of a future entrant who attains age 65 while
in service, is entitled, after the date of his death to an annuity fixed
for the wife on the date he attains age 65.
The widow is entitled to annuity as follows:
If the employee's withdrawal occurs after age 65 and he enters upon
annuity, or if the employee's death occurs in the service after his
attainment of age 65, the annuity shall be that provided on a reversionary
annuity basis from the total sums accumulated to his credit for widow's
annuity and (if he was a present employee) widow's prior service annuity on
the date he became age 65.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-144) (from Ch. 108 1/2, par. 8-144)
Sec. 8-144.
Widow's annuity-Present employees and future entrants-Death in service
before 65.
The widow of an employee whose death occurs in service before age 65
shall be entitled to an annuity of the amount provided on a single life
annuity basis from the credit on the date of his death in service for age
and service annuity and widow's annuity, plus the credit for prior service
annuity and widow's prior service annuity if he was a present employee; but
no part thereof representing contributions by the city shall be used to
provide an annuity in excess of that which she would have had if the
employee had lived and remained in service at the rate of his final salary
until he became age 65, and the widow's annuity were fixed on a
reversionary annuity basis as provided in this Article. The annuity shall
be computed as of the date of the employee's death.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-145) (from Ch. 108 1/2, par. 8-145)
Sec. 8-145.
Widow's annuity-Present employees and future entrants-Withdrawal after
age 60 but before 65.
The widow of an employee who attains age 60 or more but less than age 65
in service and who withdraws, shall be entitled after his death, to an
annuity fixed as of the date of his withdrawal.
The annuity shall be the amount provided on a reversionary annuity basis
from the credit for widow's annuity and (if he was a present employee)
widow's prior service annuity on the date of withdrawal.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-146) (from Ch. 108 1/2, par. 8-146)
Sec. 8-146.
Widow's annuity - Present employees and future
entrants - Withdrawal after age 55 but before 60.
The widow of an employee who, (1) attains age 55 or more but less
than age 60 in service and (2) has served 10 or more years and (3)
withdraws, shall be entitled after his death to an annuity fixed on the
date of withdrawal.
The widow is entitled to receive the amount provided on a
reversionary annuity basis from the employee's credit on the date when
the annuity was fixed as follows:
(1) If service is 20 or more years, the total credits for widow's
annuity and in addition, if he was a present employee, the total credits
for widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the total
credits for widow's annuity from employee contributions and 1/10 of the
total credits for widow's annuity from city contributions for each year
of service after the first 10 years, including for the widow of a
present employee, 1/10 of the total credits for widow's prior service
annuity from city contributions for each year of service after the first
10 years.
(Source: P.A. 81-1536.)
|
(40 ILCS 5/8-147) (from Ch. 108 1/2, par. 8-147)
Sec. 8-147.
Widow's annuity - Present employees and future
entrants - Withdrawal before age 55.
The widow of an employee who withdraws after 10 or more years of
service before age 55 and later attains such age while not in service,
shall be entitled after his death to an annuity fixed on the date the
employee becomes age 55.
The widow shall be entitled to the amount provided on a reversionary
annuity basis from the following credits on the date when the annuity is
fixed as follows:
(1) If service is 20 or more years, the total credits for widow's
annuity and, in addition, if he was a present employee, the total
credits for widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years the total
credits for widow's annuity from employee contributions and 1/10 of the
total credits for widow's annuity from city contributions for each year
of service after the first 10 years, including, for the widow of a
present employee, 1/10 of the total credits for widow's prior service
annuity from city contributions for each year of service after the first
10 years.
(Source: P.A. 81-1536.)
|
(40 ILCS 5/8-148) (from Ch. 108 1/2, par. 8-148)
Sec. 8-148.
Widow's annuities - Present employees and future
entrants - Withdrawal and death before age 55.
The widow of an employee with 10 or more years of service who
withdraws before age 55 and who dies while out of service before age 55
shall be entitled to an annuity computed on a single life annuity basis
at the date of death from the following credits:
(1) If service is 20 or more years, the total credits for age and
service annuity and widow's annuity, and, in addition, if he was a
present employee, the total credits for prior service annuity and
widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the total
credits for age and service annuity, and widow's annuity from
employee contributions, and
in addition, if he was a present employee the total
credits for prior service annuity and 1/10 of the total credits for age
and service annuity and widow's annuity from city contributions for each
year of service after the first 10 years, including, for the widow of a
present employee, 1/10 of the credits for prior service and widow's
prior service annuity from city contributions for each year of service
after the first 10 years.
No city contributions shall be used for a widow's annuity in excess
of that which she would receive if the employee had lived until he
attained age 55 and had not reentered the service and an annuity were
fixed for her on a reversionary annuity basis, as of her age when her
husband would have attained age 55.
(Source: P.A. 81-1536.)
|
(40 ILCS 5/8-149) (from Ch. 108 1/2, par. 8-149)
Sec. 8-149.
Widow's annuities-Re-entry of employee into service.
No annuity in excess of that fixed in accordance with Sections 8-145,
8-146 and 8-147 shall be granted to a widow described in those sections
unless the employee re-enters service before age 65, in which case the
annuity for his wife shall be fixed as of the date he attains age 65 while
in service, or when he again withdraws, whichever first occurs.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-150) (from Ch. 108 1/2, par. 8-150)
Sec. 8-150.
Employee's widow's annuities - No contributions or service
credits after fixation.
No contributions by the employee or by the city for an annuity for
the widow of an employee shall be made after the date when her annuity
has been fixed. No service of an employee rendered after such date shall
be considered for widow's annuity, except as herein otherwise provided.
(Source: P.A. 81-1536.)
|
(40 ILCS 5/8-150.1)
(from Ch. 108 1/2, par. 8-150.1)
Sec. 8-150.1. Minimum annuities for widows. The widow (otherwise eligible for widow's annuity under other Sections of
this Article 8) of an employee hereinafter described, who retires from
service or dies while in the service subsequent to the effective date of
this amendatory provision, and for which widow the amount of widow's
annuity and widow's prior service annuity combined, fixed or provided for
such widow under other provisions of this Article is less than the amount
provided in this Section, shall, from and after the date her otherwise
provided annuity would begin, in lieu of such otherwise provided widow's
and widow's prior service annuity, be entitled to the following indicated
amount of annuity:
(a) The widow of any employee who dies while in service on or after the
date on which he attains age 60 if the death occurs before July 1, 1990, or on
or after the date on which he attains age 55 if the death occurs on or after
July 1, 1990, with at least 20 years of service, or on or after the date on
which he attains age 50 if the death occurs on or after the effective date of
this amendatory Act of 1997 with at least 30 years of service, shall be
entitled to an annuity equal to one-half of the amount of annuity which her
deceased husband would have been entitled to receive had he withdrawn from the
service on the day immediately preceding the date of his death, conditional
upon such widow having attained the age of 60 or more years on such date if the
death occurs before July 1, 1990, or age 55 or more if the death occurs on or
after July 1, 1990, or age 50 or more if the death occurs on or after January
1, 1998 and the employee is age 50 or over with at least 30 years of service or
age 55 or over with at least 25 years of service.
Except as provided in subsection (k), this widow's annuity shall not, however,
exceed the sum of $500 a month if the employee's death in service occurs
before January 23, 1987. The widow's annuity shall not be limited to a
maximum dollar amount if the employee's death in service occurs on or after
January 23, 1987.
If the employee dies in service before July 1,
1990, and if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided in the immediately
preceding paragraph for a widow 60 or more years of age, shall, in the case
of such younger widow, be reduced by 0.25% for each month that
her then attained age is less than 60 years if the employee was born before
January 1, 1936 or dies in service on or after January 1, 1988, or by
0.5% for each month that her then attained age is
less than 60 years if the employee was born on or after July 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990, and if the widow of
the employee has not attained age 55 on or before the employee's date of death,
the amount otherwise provided in this subsection (a) shall be reduced by 0.25%
for each month that her then attained age is less than 55 years; except that
if the employee dies in service on or after January 1, 1998 at age 50 or over
with at least 30 years of service or at age 55 or over with at least 25 years
of service, there shall be no reduction due to the widow's age if she has
attained age 50 on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of death the amount
otherwise provided in this subsection (a) shall be reduced by 0.25% for each
month that her then attained age is less than 50 years.
(b) The widow of any employee who dies subsequent to the date of his
retirement on annuity, and who so retired on or after the date on which he
attained the age of 60 or more years if retirement occurs before July
1, 1990, or on or after the date on which he attained age 55 if retirement
occurs on or after July 1, 1990, with at least 20 years of service,
or on or after the date on which he attained age 50 if the retirement occurs
on or after the effective date of this amendatory Act of 1997 with at least 30
years of service, shall be entitled to an annuity equal to one-half of the
amount of annuity which her deceased husband received as of the date of his
retirement on annuity, conditional upon such widow having attained the age of
60 or more years on the date of her husband's retirement on annuity if
retirement occurs before July 1, 1990, or age 55 or more if retirement occurs
on or after July 1, 1990, or age 50 or more if the retirement on annuity
occurs on or after January 1, 1998 and the employee is age 50 or over with
at least 30 years of service or age 55 or over with at least 25 years of
service.
Except as provided in subsection (k), this widow's
annuity shall not, however, exceed the sum of $500 a month if the
employee's death occurs before January 23, 1987. The widow's annuity
shall not be limited to a maximum dollar
amount if the employee's death occurs on or after
January 23, 1987, regardless of the date of retirement;
provided that, if retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest at the
effective rate from the date of refund to the date of repayment.
If the date of the employee's retirement on annuity is before July
1, 1990, and if such widow of such described employee shall not have attained
such age of 60 or more years on such date of her husband's retirement on
annuity, the amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's retirement on
annuity, shall, in the case of such then younger widow, be reduced by 0.25%
for each month that her then attained age was less than 60
years if the employee was born before January 1, 1936 or withdraws from
service on or after January 1, 1988, or by 0.5% for each
month that her then attained age is less than 60 years if the employee was born
on or after January 1, 1936 and withdraws from service before January 1, 1988.
If the date of the employee's retirement on annuity is on or after
July 1, 1990, and if the widow of the employee has not attained age 55
by the date of the employee's retirement on annuity, the amount
otherwise provided in this subsection (b) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years; except that if
the employee retires on annuity on or after January 1, 1998 at age 50 or over
with at least 30 years of service or at age 55 or over with at least 25 years
of service, there shall be no reduction due to the widow's age if she has
attained age 50 on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of death the amount
otherwise provided in this subsection (b) shall be reduced by 0.25% for each
month that her then attained age is less than 50 years.
(c) The foregoing provisions relating to minimum annuities for widows
shall not apply to the widow of any former municipal employee receiving an
annuity from the fund on August 9, 1965 or on the effective date of this
amendatory provision, who re-enters service as a municipal employee, unless
such employee renders at least 3 years of additional service after the date
of re-entry.
(d) In computing the amount of annuity which the husband specified in
the foregoing paragraphs (a) and (b) of this Section would have been
entitled to receive, or received, such amount shall be the annuity to which
such husband would have been, or was entitled, before reduction in the
amount of his annuity for the purposes of the voluntary optional
reversionary annuity provided for in Section 8-139 of this
Article, if such option was elected.
(e) (Blank).
(f) (Blank).
(g) The amendatory provisions of this amendatory Act of 1985
relating to annuity discount because of age for widows of employees born
before January 1, 1936, shall apply only to qualifying
widows of employees withdrawing or dying in service on or after July 18, 1985.
(h) Beginning on January 1, 1999, the minimum amount of widow's annuity
shall be
$800 per month for life for the following classes of widows,
without regard to the fact that the death of the employee occurred prior
to the effective date of this amendatory Act of 1998:
(1) any widow annuitant alive and receiving a life | ||
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(2) any widow annuitant alive and receiving a term | ||
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(3) any widow annuitant alive and receiving a | ||
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(4) the widow of an employee with at least 10 years | ||
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(5) the widow of an employee with at least 10 years | ||
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(6) the widow of an employee who dies in service with | ||
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The increases granted under items (1), (2), (3) and (4) of this
subsection (h) shall not be limited by any other Section of this Act.
(i) The widow of an employee who retired or died in service on or
after January 1, 1985 and before July 1, 1990, at age 55 or older, and with
at least 35 years of service credit, shall be entitled to have her widow's
annuity increased, effective January 1, 1991, to an amount equal to 50% of
the retirement annuity that the deceased employee received on the date of
retirement, or would have been eligible to receive if he had retired on the
day preceding the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's retirement or death
in service, the amount of the annuity shall be reduced by 0.25% for each
month that her then attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January 1, 1988, or by
0.5% for each month that her attained age is less than age 60 if the
employee's retirement or death in service occurred prior to January 1,
1988. However, in cases where a refund of excess contributions for
widow's annuity has been paid by the Fund, the increase in benefit provided
by this subsection (i) shall be contingent upon repayment of the refund
to the Fund with interest at the effective rate from the date of refund to
the date of payment.
(j) If a deceased employee is receiving a retirement annuity at the time
of death and that death occurs on or after June 27, 1997, the widow may elect to receive, in lieu of
any other annuity provided under this Article, 50% of the deceased employee's
retirement annuity at the time of death reduced by 0.25% for each month that
the widow's age on the date of death is less than 55; except that if the
employee dies on or after January 1, 1998 and withdrew from service on or
after June 27, 1997 at age 50 or over with at least 30 years of service
or at age 55 or over with at least 25 years of service, there shall be no
reduction due to the widow's age if she has attained age 50 on or before the
employee's date of death, and if the widow has not attained age 50 on or before
the employee's date of death the amount otherwise provided in this subsection
(j) shall be reduced by 0.25% for each month that her age on the date of death
is less than 50 years.
However, in cases where a refund of excess contributions for widow's annuity
has been paid by the Fund, the benefit provided by this subsection (j) is
contingent upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of payment.
(k) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum dollar amount
limitation on widow's annuity shall cease to apply, beginning with the first
annuity payment after the effective date of this amendatory Act of 1997; except
that if a refund of excess contributions for widow's annuity has been paid by
the Fund, the increase resulting from this subsection (k) shall not begin
before the refund has been repaid to the Fund, together with interest at the
effective rate from the date of the refund to the date of repayment.
(l) In lieu of any other annuity provided in this Article, an eligible
spouse of an employee who dies in service on or after January 1, 2002
(regardless of whether that death in service occurs prior to the effective
date of this amendatory Act of the 93rd General Assembly)
with
at least 10
years
of service shall be entitled to an annuity of 50% of the minimum formula
annuity earned and accrued to the credit of the employee at the date of death.
For the purposes of this subsection, the minimum formula annuity earned and
accrued to the credit of the employee is equal to 2.40% for each year of
service of the highest average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the date of death, up to a
maximum of 80% of the highest average annual salary. This annuity shall not be
reduced due to the age of the employee or spouse. In addition to any other
eligibility requirements under this Article, the spouse is eligible for
this annuity only if the marriage was in effect for 10 full years or more.
(Source: P.A. 92-599, eff. 6-28-02; 93-654, eff. 1-16-04.)
|
(40 ILCS 5/8-151) (from Ch. 108 1/2, par. 8-151)
Sec. 8-151. Compensation annuity and supplemental annuity.
When annuity otherwise provided in this Article for the widow of an
employee whose death results solely from injury incurred in the performance
of an act of duty is less than 60% of his salary in effect at the time of
the injury, "Compensation Annuity" equal to the difference between such
annuity and 60% of such salary, shall be payable to her until the date when
the employee, if alive, would have attained age 65; and in any case where
the employee's death is only partly due to the duty incurred injury, the
"Compensation Annuity" shall be based on an amount equal to 40% of such
salary.
Thereafter, the widow shall be entitled to "Supplemental Annuity" equal
to the difference between the annuity otherwise provided in this Article
and the annuity to which she would be entitled if the employee had lived
and continued in the service at the salary in effect at the date of the
injury until he attained age 65, and based upon her age as it would be on
the date he would have attained 65.
"Compensation" or "Supplemental Annuity" shall not be payable unless the
widow was the wife of the employee when the injury was incurred.
The city shall contribute to the fund each year the amount required for
all compensation annuities payable during any such year. Supplemental
Annuity shall be provided from city contributions after the date of the
employee's death of such equal sums annually which when improved by
interest at the effective rate, will be sufficient, at the time payment of
Compensation Annuity to the widow ceases to provide Supplemental Annuity,
as stated, for the widow throughout her life thereafter.
Unless the performance of an act or acts of duty results solely in the death of the employee, the annuity provided in this Section shall not be paid. For the purposes of this Section only, the death of any employee as a result of the exposure to and contraction of COVID-19, as evidenced by either (i) a confirmed positive laboratory test for COVID-19 or COVID-19 antibodies or (ii) a confirmed diagnosis of COVID-19 from a licensed medical professional, shall be rebuttably presumed to have been contracted while in the performance of an act or acts of duty and the employee shall be rebuttably presumed to have been fatally injured while in active service. The presumption shall apply to any employee who was exposed to and contracted COVID-19 on or after March 9, 2020 and on or before June 30, 2021; except that the presumption shall not apply if the employee was on a leave of absence from his or her employment or otherwise not required to report for duty at the physical work space generally assigned to the employee, including, but not limited to, working remotely, for a period of 14 or more consecutive days immediately prior to the date of contraction of COVID-19. For the purposes of determining when an employee contracted COVID-19 under this paragraph, the date of contraction is either the date that the employee was diagnosed with COVID-19 or was unable to work due to symptoms that were later diagnosed as COVID-19, whichever occurred first. (Source: P.A. 102-342, eff. 8-13-21.)
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(40 ILCS 5/8-152)
(from Ch. 108 1/2, par. 8-152)
Sec. 8-152. Widows or former wives not entitled to annuity. Except as
provided in Section 8-152.1, the following widows or former wives of
employees have no right to annuity from the fund:
(a) The widow, married subsequent to the effective date, of an
employee who dies in service if she was not married to him before he
attained age 65;
(b) The widow, married subsequent to the effective date, of an
employee who withdraws from service whether or not he enters upon
annuity, and who dies while out of service, if she was not his wife
while he was in service and before he attained age 65;
(c) The widow of an employee with 10 or more years of service whose
death occurs out of and after he has withdrawn from service, and who has
received a refund of his contributions for
annuity purposes;
(d) The widow of an employee with less than 10 years of service who
dies out of service after he has withdrawn from service before he
attained age 60;
(e) The former wife of an employee whose judgment of dissolution of
marriage has been vacated or set aside after the employee's death,
unless the proceedings to vacate or set aside the judgment were filed in
court within 5 years after the entry thereof and within one year after
the employee's death, and unless the board is made a party defendant to
such proceedings.
(Source: P.A. 94-612, eff. 8-18-05.)
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(40 ILCS 5/8-152.1)
Sec. 8-152.1. Widow's annuity for widow married to member for at
least 10 years. Notwithstanding Section 8-152 or any other provision of this
Code to the contrary, if (1) a member has a spouse who would have qualified for a minimum annuity for widows under Section 8-150.1 at the time of the member's retirement, (2) the qualifying spouse dies, (3) the member subsequently remarries, and (4) the member does not receive a refund under
Section 8-169, then the member's widow shall be entitled to a widow's annuity
if (i) the member dies after May 1, 2004 and before November 1, 2004 and (ii) the widow was married to the member for at least the last 10 years prior to the
member's death. A widow who elects to receive a widow's annuity under this Section is thereafter ineligible to receive any other survivor's benefit under this Article. A widow who is receiving any survivor's benefit under this Article is thereafter ineligible to receive a widow's annuity under this Section. If a widow who is receiving a widow's annuity under this Section remarries, then the benefits paid to that widow shall be terminated effective on the last day of the month in which the widow remarries. To establish credit under this Section, the widow must apply to the Fund on or before July 1, 2006.
(Source: P.A. 94-612, eff. 8-18-05.) |
(40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153)
Sec. 8-153.
Widow's remarriage.
A widow's annuity shall terminate when she remarries
if the marriage takes
place before the date 60 days after the effective date of this amendatory Act
of the 91st General Assembly. If a widow remarries 60 or
more days after the effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without interruption.
When a widow dies, if she has not
received, in the form of an annuity, an amount equal to the total
credited from
employee's contributions and applied for the widow's annuity, the
difference between such annuity credits and the amount received by her
shall be refunded to her, provided, that if a reversionary annuity is
payable to her, or to any other person designated by the employee, such
amount shall not be refunded but the reversionary annuity
shall be payable.
If there is any child of the employee who is under 18 years of age,
the part of any such amount that is required to pay an annuity to the child
shall be transferred to the child's annuity reserve. In making refunds under
this Section, no interest shall be paid upon either the total of annuity
payments made or the amounts subject to refund. Any refund shall be paid
according to the provisions of Section 8-170.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/8-153.1) (from Ch. 108 1/2, par. 8-153.1)
Sec. 8-153.1.
Annuities to survivors of female employees.
All provisions of this Article relating to annuities or benefits to a
widow, minor children or other survivors of a male employee shall apply
with equal force to a surviving spouse, children or other eligible
survivors of a female employee, including credits for the several annuity
purposes, refunds and death benefits, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/8-154) (from Ch. 108 1/2, par. 8-154)
Sec. 8-154.
Maximum annuities.
(1) The annuities to an employee and his widow are subject to the
following limitations:
(a) No age and service annuity, or age and service | ||
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(b) No annuity in excess of 60% of such highest | ||
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(c) No annuity in excess of 50% of such highest | ||
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(d) For widows of employees who died before January | ||
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(2) If when an employee's annuity is fixed, the amount accumulated
to his credit therefor, as of his age at such time exceeds the amount
necessary for the annuity, all contributions for annuity
purposes after the date on which the accumulated sums to the credit of
such employee for annuity purposes would first have provided such
employee with such amount of annuity as of his age at such date shall be
refunded when he enters upon annuity, with interest at the effective rate.
If the aforesaid annuity so fixed is not payable, but a larger amount
is payable as a minimum annuity, such refund shall be reduced by 5/12 of
the value of the difference in the annuity payable and the amount
theretofore fixed, as the value of such difference may be at the date
and as of the age of the employee when his annuity is granted; provided
that if the employee was credited with city contributions for any period
for which he made no contribution, or a contribution of less than 3 1/4%
of salary, a further reduction in the refund shall be made by the
equivalent of what he would have contributed during such period less
his actual contributions, had the rate of
employee contributions in force on
the effective date been in effect throughout his entire service, prior
to such effective date, with interest computed on such amounts at the
effective rate.
(3) If at the time the annuity for a wife is fixed, the employee's
credit for a widow's annuity exceeds that necessary to provide such an
annuity equal to the maximum annuity provided in this section, all employee
contributions for such annuity, for service after the date on
which the accumulated sums to the credit of such employee for the
purpose of providing widow's annuity would first have provided such
widow with such amount of annuity, if such annuity were computed on the
basis of the Combined Annuity Mortality Table with interest at 3% per
annum with ages at date of determination taken as specified in this
Article, shall be refunded to the employee, with interest at the
effective rate. If the employee was credited with city contributions for
widow's annuity for any service prior to the effective date, any amount
so refundable, shall be reduced by the equivalent of what he would have
contributed, had his contributions for widow's annuity been made at the
rate of 1% throughout his entire service, prior to the effective date,
with interest on such amounts at the effective rate.
(4) If at the death of an employee prior to age 65, the credit for
widow's annuity exceeds that necessary to provide the maximum annuity
prescribed in this section, all employee contributions for annuity
purposes, for service after the date on which the accumulated sums to
the credit of such employee for the purpose of providing such maximum
annuity for the widow would first have provided such widow with such
amount of annuity, if such annuity were computed on the basis of the
Combined Annuity Mortality Table with interest at 3% per annum with ages
at date of determination taken as specified in this Article, shall be
refunded to the widow, with interest at the effective rate.
If the employee was credited with city contributions for any period
of service during which he was not required to make a contribution, or
made a contribution of less than 3 1/4% of salary, the refund shall be
reduced by the equivalent of the contributions he would have made during
such period, less any amount he contributed, had the rate of
employee contributions in effect on the effective date been in force throughout
his entire service, prior to the effective date, with interest on such
amounts at the effective rate; provided that if the employee was
credited with city contributions for widow's annuity for any service
prior to the effective date, any amount so refundable shall be further
reduced by the equivalent of what he would have contributed had
he made contributions for widow's annuity at the rate of 1% throughout his
entire service; prior to such effective date, with interest on such
amounts at the effective rate.
(Source: P.A. 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
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(40 ILCS 5/8-155) (from Ch. 108 1/2, par. 8-155)
Sec. 8-155.
Mortality tables and interest rates.
(a) Any single life annuity fixed or granted to any employee who was a
participant on or before January 1, 1952, or any reversionary or single
life annuity, fixed for or granted to a wife or widow shall be computed, in
the case of the employee as of his attained age when the annuity is fixed
or granted, and in the case of the wife or widow, as of employee's age and
that of his wife or widow on the date her annuity is fixed or granted,
provided that if the wife or widow is older than 5 years the junior of her
husband her age shall be assumed 5 years less than his. The American
Experience Table of Mortality shall be used for the computation of the
annuity values in this paragraph. The rate of interest shall be 4% per
annum if withdrawal occurs at age 55 or over and 3 1/2% if before age 55.
(b) Until August 1, 1983, any single life annuity fixed or granted
to any employee who becomes
a participant for the first time after January 1, 1952, or any reversionary
or single life annuity, fixed or granted to a wife or widow shall be
computed, in the case of the employee as of his attained age when the
annuity is fixed or granted, and in the case of the wife or widow her age
shall be taken as 4 years younger than her actual age, or 4 years younger
than the age of her husband, whichever will produce the lower age, as of
the date the employee's, or the wife's or widow's annuity is fixed or
granted. The Combined Annuity Mortality Table for Male Lives with interest
at 3% per annum shall be used for the computation of the single life
employee annuity values in this paragraph. Such table shall also be used
for the computation of single life widow annuity values and for the
computation of the reversionary annuities specified in this paragraph with
the female life taken as 4 years less than the male life.
On or after August 1, 1983, any single life annuity fixed or granted to
any employee who becomes a participant for the first time after January 1,
1952, or any reversionary or single life annuity, fixed or granted to a
wife or widow shall be computed, in the case of an employee as of his
attained age when the annuity is fixed or granted, and in the case of the
wife or widow her age will be taken as the lower of her actual age or the
age of her husband as of the date the employee's or wife's or widow's
annuity is fixed or granted. The Combined Annuity Mortality Table for Male
Lives with interest at 3% per annum shall be used for the computation of the
single life employee and widow annuity values in this paragraph. Such
table shall also be used for the computation of the reversionary annuity
values specified in this paragraph with the employee life taken as 4 years
less than the male life and the spouse life taken as the male life.
All sums credited to any employee for annuity purposes when he withdraws
from service before age 55 shall be improved with interest thereafter while
he is not in service and has not entered upon annuity until he attains age
65.
(Source: P.A. 84-23.)
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(40 ILCS 5/8-156) (from Ch. 108 1/2, par. 8-156)
Sec. 8-156.
Computation of interest.
For the computation of interest upon any sum contributed by an
employee into any municipal pension fund or into this fund, it shall be
assumed that the sum was contributed on the last day of the calendar
month in which such contribution was made.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-157) (from Ch. 108 1/2, par. 8-157)
Sec. 8-157.
Term annuities-How computed.
In any case in which an employee's credit for an annuity for himself is
insufficient--at the time the annuity is fixed or granted--to provide for
him a life annuity of $100 a month, a term annuity of equal actuarial value
of $100 a month shall be paid in lieu of such lesser amount of life annuity.
The same provision shall apply to a widow's annuity if the life annuity is
less than $100 a month.
(Source: P.A. 79-846.)
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(40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
Sec. 8-158.
Child's annuity.
A child's annuity is payable monthly after the
death of an employee parent to the child until the child's attainment of age
18, under the following conditions, if the child was born before the employee
attained age 65, and before he withdrew from service:
(a) upon death in service from any cause;
(b) upon death of an employee who withdraws from | ||
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Payment shall be made as provided in Section 8-125.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
Sec. 8-159.
Amount of child's annuity.
Beginning on the effective date of
this amendatory Act of 1997, the amount of a child's
annuity shall be $220 per month for each child while the spouse of
the deceased employee parent survives, and $250 per month for each
child when no such spouse survives, and shall be subject to the following
limitations:
(1) If the combined annuities for the widow and children of an employee
whose death resulted from injury incurred in the performance of duty, or
for the children where a widow does not exist, exceed 70% of the employee's
final monthly salary, the annuity for each child shall be reduced pro rata
so that the combined annuities for the family shall not exceed such
limitation.
(2) For the family of an employee whose death is the result of any cause
other than injury incurred in the performance of duty, in which the
combined annuities for the family exceed 60% of the employee's final
monthly salary, the annuity for each child shall be reduced pro rata so
that the combined annuities for the family shall not exceed such limitation.
(3) The increase in child's annuity provided by this amendatory Act of
1997 shall apply to all child's annuities being paid on or after
the effective date of this amendatory Act of 1997. The limitations on the combined
annuities for a family in parts (1) and (2) of this Section do not apply to
families of employees who died before the effective date of this amendatory Act
of 1997.
(4) The amendments to parts (1) and (2) of this Section made by Public
Act 84-1472 (eliminating the further limitation that the monthly
combined family amount shall not exceed $500 plus 10% of the employee's
final monthly salary) shall apply in the case of every qualifying child
whose employee parent dies in the service or enters on annuity on or after
January 23, 1987.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/8-160) (from Ch. 108 1/2, par. 8-160)
Sec. 8-160.
Duty disability benefit - Child's disability benefit.
An employee who becomes disabled after the effective
date while under age 65 and prior to January 1, 1979 or while under age
70 after January 1, 1979 as the result of an accidental injury incurred -
on or after the date
he has been included under this Article - in the performance of duty shall
receive duty disability benefit, during any period of such disability for
which he receives no salary. The benefit shall be 75% of salary at date of
injury; provided, that if disability, in any measure, has resulted from any
physical defect or disease which existed at the time such injury was
sustained the duty disability benefit shall be 50% of salary.
If the employee's duty disability benefit continues for more than 5
years, on January 1 of the sixth year such benefit shall be increased by 10%.
The employee shall also have a right to receive child's disability
benefit of $10 a month on account of each child less than age 18. Child's
disability benefit shall not exceed 15% of the salary as aforesaid; nor
shall the total duty disability benefit and child's disability benefit
combined exceed 90% of the salary of such employee in his position held at
the time of the injury.
The first payment of duty disability or child's disability benefit shall
be made not later than one month after such benefit is granted and each
subsequent payment shall be made not later than one month after the last
preceding payment.
Duty disability benefit is payable during disability until the employee
attains age 65 if the disability commences prior to January 1, 1979. If
the disability commences on or after January 1, 1979 the benefit prescribed
herein shall be payable during disability until the employee attains age 65
for disability commencing prior to age 60, or for a period of 5 years or
until attainment of age 70, whichever occurs first, for disability
commencing at age 60 or older and on or after January 1, 1979, and
child's disability benefit shall be paid to the
employee parent of any unmarried child less than age 18, during such time
until the child marries or attains age 18. The employee shall thereafter
upon withdrawal from service receive such annuity as is otherwise provided
in this Article.
Any employee whose duty disability benefit was terminated on or after
January 1, 1979 by reason of his attainment of age 65 and who continues to
be disabled after age 65 may elect before July 1, 1986 to have such
benefits resumed beginning at the time of such termination and continuing
until termination is required under this Section as amended by this
amendatory Act of 1985. The amount payable to any employee for such
resumed benefit for any period shall be reduced by the amount of any
retirement annuity paid to such employee under this Article for the same
period of time or by any refund paid in lieu of annuity.
(Source: P.A. 84-23.)
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(40 ILCS 5/8-161) (from Ch. 108 1/2, par. 8-161)
Sec. 8-161.
Ordinary disability benefit.
An employee while under age
65 and prior to January 1, 1979, or while under age 70 and after January 1,
1979, who becomes disabled after the effective date as the result of any
cause other than injury incurred in the performance of duty, shall be
entitled to ordinary disability benefit during such disability, after
the first 30 days thereof.
The first payment shall be made not later than one month after the
benefit is granted and each subsequent payment shall be made not later
than one month after the last preceding payment.
The disability benefit prescribed herein shall cease when the first of
the following dates shall occur and the employee, if still disabled, shall
thereafter be entitled to such annuity as is otherwise provided in this
Article:
(a) the date disability ceases.
(b) the date the disabled employee attains age 65 for disability
commencing prior to January 1, 1979.
(c) the date the disabled employee attains age 65 for disability commencing
prior to attainment of age 60 in the service and after January 1, 1979.
(d) the date the disabled employee attains the age of 70 for disability
commencing after attainment of age 60 in the service and after January 1, 1979.
(e) the date the payments of the benefit shall exceed in the aggregate,
throughout the employee's service, a period equal to 1/4 of the total service
rendered prior to the date of disability but in no event more than 5 years.
In computing such total service any period during which the employee
received ordinary disability benefit shall be excluded.
Any employee whose ordinary disability benefit was terminated after
January 1, 1979 by reason of his attainment of age 65 and who continues
disabled after age 65 may elect before July 1, 1986 to have such benefits
resumed beginning at the time of such termination and continuing until
termination is required under this Section as amended by this amendatory Act
of 1985. The amount payable to any employee for such resumed benefit for
any period shall be reduced by the amount of any retirement annuity paid to
such employee under this Article for the same period of time or by any
refund paid in lieu of annuity.
Ordinary disability benefit shall be 50% of the employee's salary at
the date of disability.
For ordinary disability benefits paid before January 1, 2001, before any
payment, an amount equal to the sum ordinarily deducted from salary
for all annuity purposes for such period for which the ordinary disability
benefit is made shall be deducted from such payment and credited to the
employee as a deduction from salary for that period. The sums so deducted
shall be regarded, for annuity and
refund purposes, as an amount contributed by him.
For ordinary disability benefits paid on or after January 1, 2001, the fund
shall credit sums equal to the amounts ordinarily contributed by an employee
for annuity purposes for any period during which the employee receives ordinary
disability, and those sums shall be deemed for annuity purposes and purposes of
Section 8-173 as amounts contributed by the employee. These amounts credited
for annuity purposes shall not be credited for refund purposes.
If a participating employee is eligible for a disability benefit under the
federal Social Security Act, the amount of ordinary disability benefit under
this Section attributable to employment with the Chicago Housing Authority or
the Public Building Commission of the city shall be reduced, but not to less
than $10 per month, by the
amount that the employee would be eligible to receive as a disability benefit
under the federal Social Security Act, whether or not that federal benefit is
based on service as a covered employee under this Article. The reduction shall
be effective as of the month the employee is eligible for the social security
disability benefit. The Board may make this reduction pending determination
of eligibility for the social security disability benefit, if it appears to
the Board that the employee may be eligible, and make an appropriate adjustment
if necessary after eligibility for the social security disability benefit is
determined. If the employee's social security disability benefit is reduced
or terminated because of a refusal to accept rehabilitation services under
the federal Rehabilitation Act of 1973 or the federal Social Security Act
or because the employee is receiving a workers' compensation benefit, the
ordinary disability benefit under this Section shall be reduced as if the
employee were receiving the full social security disability benefit.
The amount of ordinary disability benefit shall not be reduced by reason of
any increase in the amount of social security disability benefit that takes
effect after the month of the initial reduction under this Section, other than
an increase resulting from a correction in the employee's wage records.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-161.1) (from Ch. 108 1/2, par. 8-161.1)
Sec. 8-161.1.
Limitations on payment of duty and ordinary disability.
(a) Disablement because of commonly termed heart attacks, or strokes, or
any disablement falling within the broad field of coronary involvement or
heart disease, shall not be considered to be the result of an accidental
injury incurred in the performance of duty.
(b) If application for disability benefit is not filed with the
Retirement Board within one year from the date the disability applicant
became disabled or last received salary if salary was continued during the
period of disablement, no disability benefit shall begin to accrue for any
period of time more than one year prior to the date on
which the application
for disability benefit is received by the Board.
(Source: P.A. 86-1488.)
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(40 ILCS 5/8-162) (from Ch. 108 1/2, par. 8-162)
Sec. 8-162. Proof of disability, duty and ordinary.
Proof of duty or ordinary disability shall be furnished to the board by
at least one licensed and practicing physician appointed by the board. The
board may require other evidence of disability. Each disabled employee who
receives duty or ordinary disability benefit shall be examined at least
once a year, or a longer period of time as determined by the board, by one or more licensed and practicing physicians appointed by
the board. When the disability ceases, the board shall discontinue payment
of the benefit and the employee shall be returned to active service.
(Source: P.A. 101-69, eff. 7-12-19.)
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(40 ILCS 5/8-163) (from Ch. 108 1/2, par. 8-163)
Sec. 8-163. When disability benefit not payable. (a) If an employee
receiving duty or ordinary disability benefit refuses to submit to
examination by a physician appointed by the board, or fails or refuses to
consent to and sign an authorization allowing the board to receive copies
of or examine the employee's medical and hospital records, or fails or
refuses to provide complete information regarding any other employment for
compensation he has received since he has become disabled, he shall have no
further right to receive the benefit.
(b) Disability benefit shall not be paid for any time for which the
employee receives any part of his salary or is employed by any public
body supported in whole or in part by taxation.
(c) Before any action is taken by the Board on an application for a duty disability benefit or a widow's compensation or supplemental benefit, the employee or widow shall file a claim with the employer to establish that the disability or death occurred while the employee was acting within the scope of and in the course of his or her duties. Any amounts provided to the employee or surviving spouse as temporary total disability payments, permanent total disability payments, a lump sum settlement award, or other payment under the Workers' Compensation Act or the Workers' Occupational Diseases Act shall be applied as an offset to the disability benefit paid by the Fund, whether duty or ordinary, or any widow compensation or supplemental benefit payable under this Article until a period of time has elapsed when the benefit payable equals the amount of such compensation, payment, or award. The duty disability benefit shall be offset at the rate of the amount of temporary total disability payments or permanent disability payments made under the Workers' Compensation Act or the Workers' Occupational Diseases Act. If such amounts are not readily determinable or if an employee has not received temporary total disability payments or permanent weekly or monthly payments for the entire period of disability up to the time of the compensation, payment, or award under the Workers' Compensation Act or the Workers' Occupational Diseases Act, the disability benefit paid by the Fund shall be offset by 66 2/3% of the employee's salary on the date of disablement. The offset shall not be greater than the amount of disability benefits due from the Fund. The offset shall be applied until a period of time has elapsed when the benefit payable equals the amount of such compensation, payment, or award. This offset shall not apply to the initial days of disability when workers' compensation would not ordinarily be payable. The amount of compensation or supplemental annuity payable to a widow shall be offset by any compensation, payment, or award until a period of time has elapsed when the benefit payable equals the amount of such compensation, payment, or award. Any employee or former employee whose disability benefits were offset, or who was notified by the Fund that his or her disability benefits will be offset, by a rate higher than the temporary total disability payments or permanent disability payments, or if these were not determinable, by 66 2/3% of salary at the date of disablement, may apply to the Fund for a refund of the excess offset, without interest, or an adjustment to his or her account. This application must be made within 6 months after the effective date of this amendatory Act of the 95th General Assembly. If an employee who has been disabled has received ordinary disability from the Fund and also receives any compensation or payment for specific loss, disability, or death under the Workers' Compensation Act or the Workers' Occupational Diseases Act, then the ordinary disability benefit must be repaid to the Fund before any other benefit under this Article may be granted or paid. If no other benefit is applied for, then the ordinary disability is offset according to the provisions of this Section. The employee and the employer shall provide the Fund, on a timely basis, with the entry of the settlement contract lump sum petition and order settlement of any such lawsuit, including all details of the settlement.
(d) An employee who enters service after December 31, 1987, or an
employee who makes application for a disability benefit or applies for a
disability benefit for a recurrence of a previous disability, and who,
while in receipt of an ordinary or duty disability benefit, assumes any
employment for compensation, shall not be entitled to receive any amount of
such disability benefit which, when added to his compensation for such
employment during disability, plus any amount payable under the provisions
of the Workers' Compensation Act or Workers' Occupational Diseases Act,
would exceed the rate of salary on which his disability benefit is based.
(Source: P.A. 95-1036, eff. 2-17-09.)
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(40 ILCS 5/8-164) (from Ch. 108 1/2, par. 8-164)
Sec. 8-164.
Annuity after withdrawal while disabled.
An employee whose disability continues after he has received ordinary
disability benefit for the maximum period of time prescribed by this
Article, and who withdraws before age 60 while still so disabled, is
entitled to receive annuity of such amount as can be provided from the
accumulation to his credit from employee contributions and city
contributions to be computed as of his age on the date of withdrawal.
The annuity to which his wife shall be entitled upon his death, shall
be fixed on the date of his withdrawal. It shall be provided from the
amount to his credit for widow's annuity on the date of such withdrawal.
Upon the death of any such employee while on annuity, if his service
was at least 4 years after the date of his original entry, and at least
2 years after the date of his latest re-entry, his child or children
under age 18 shall be entitled to annuity as specified in this Article
for children of an employee who retires after age 55, subject to
prescribed limitations on total payments to a family of an employee.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
Sec. 8-164.1. Payments to city.
(a) For the purposes of this Section, "city annuitant" means a person
receiving an age and service annuity, a widow's annuity, a child's annuity, or
a minimum annuity under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the board's city
annuitants who participate in any of the city's health care plans, the
following amounts:
(1) From July 1, 2003 through June 30, 2008, $85 per | ||
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(2) Beginning July 1, 2008 and until such time as the | ||
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The payments described in this subsection shall be paid from the tax levy
authorized under Section 8-173; such amounts shall be credited to the reserve
for group hospital care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be charged against
it.
(c) The city health care plans referred to in this Section and the board's
payments to the city under this Section are not and shall not be construed to
be pension or retirement benefits for the purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(Source: P.A. 98-43, eff. 6-28-13.)
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(40 ILCS 5/8-164.2)
Sec. 8-164.2. Payments to board of education for group health benefits.
(a) Should the Board of Education continue to sponsor a retiree health
plan, the board is authorized to pay to the Board of Education, on behalf of
each eligible annuitant who chooses to participate in the Board of Education's
retiree health benefit plan, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85 per | ||
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(2) Beginning July 1, 2008 and until such time as the | ||
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The payments described in this subsection shall be paid from the tax levy
authorized under Section 8-173; such amounts shall be credited to the reserve
for group hospital care and group medical and surgical plan benefits, and all
payments to the Board of Education under this subsection shall be charged
against it.
(b) The Board of Education health benefit plan referred to in this Section
and the board's payments to the Board of Education under this Section are
not and shall not be construed to be pension or retirement benefits for the
purposes of Section 5 of Article XIII of the Illinois Constitution of 1970.
(Source: P.A. 98-43, eff. 6-28-13.)
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(40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
Sec. 8-165. Re-entry into service. (a) Except as provided in subsection (c) or (d), when an employee receiving age and service or prior service
annuity who has withdrawn from service after the effective date
re-enters service before age 65, any annuity previously granted and any
annuity fixed for his wife shall be cancelled. The employee shall be
credited for annuity purposes with sums sufficient to provide annuities
equal to those cancelled, as of their ages on the date of re-entry;
provided, the maximum age of the wife for this purpose shall be as
provided in Section 8-155 of this Article.
The sums so credited shall provide for annuities to be fixed and
granted in the future. Contributions by the employees
and the city for
the purposes of this Article shall be made, and when the proper time
arrives, as provided in this Article, new annuities based upon the total
credit for annuity purposes and the entire term of his service shall be
fixed for the employee and his wife.
If the employee's wife died before he re-entered service, no part of
any credits for widow's or widow's prior service annuity at the time
annuity for his wife was fixed shall be credited upon re-entry into
service, and no such sums shall thereafter be used to provide such
annuity.
(b) Except as provided in subsection (c) or (d), when an employee re-enters service after age 65, payments on
account of any annuity previously granted shall be suspended during the
time thereafter that he is in service, and when he again withdraws,
annuity payments shall be resumed. If the employee dies in service, his
widow shall receive the amount of annuity previously fixed for her.
(c) For school years beginning on or after July 1, 2021, an age and service or prior service
annuity shall not be cancelled in the case of an employee who is re-employed by the Board of Education of the city as a Special Education Classroom Assistant or Classroom Assistant on a temporary and non-annual basis or on an hourly basis so long as the person: (1) does not work for compensation on more than 120 days in a school year; or (2) does not accept gross compensation for the re-employment in a school year in excess of $30,000. These limitations apply only to school years that begin on or after July 1, 2021. Re-employment under this subsection does not require contributions, result in service credit being earned or granted, or constitute active participation in the Fund. (d) For school years beginning on or after July 1, 2023, an age and service or prior service annuity shall not be cancelled in the case of an employee who is re-employed by the Board of Education of the city as a paraprofessional or related service provider on a temporary and non-annual basis or on an hourly basis so long as the person: (1) does not work for compensation on more than 120 days in a school year; or (2) does not accept gross compensation for the re-employment in a school year in excess of $30,000. These limitations apply only to school years that begin on or after July 1, 2023. Re-employment under this subsection does not require contributions, result in service credit being earned or granted, or constitute active participation in the Fund. (Source: P.A. 102-342, eff. 8-13-21; 103-552, eff. 8-11-23.)
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(40 ILCS 5/8-166) (from Ch. 108 1/2, par. 8-166)
Sec. 8-166.
Re-entry into service-Prior employee.
An employee who was not in the service of an employer on the day
prior to the effective date, and who was in service prior to that date,
who re-enters service after that date and before age 65, shall not be
credited for prior service annuity or widow's prior service annuity on
account of service prior to the effective date. The period of service,
prior to the effective date shall, however, be included in computing
service for age and service annuity and widow's annuity. Such employee
shall be a future entrant for the purposes of this Article.
For any person employed by an employer prior to January 1, 1950, from
whose salary deductions were made for the purposes of this Article for
the first time after December 31, 1949, any service rendered prior to
January 1, 1922, unless he was in service on the day before the
effective date, shall not, regardless of any other provisions of this
Article, be counted as service for the purposes of this Article.
Contributions by the employee to whom this section
applies, and city
contributions for age and service annuity and widow's annuity, shall be
made as herein provided.
Any person employed by an employer or retirement board, in which this
Article was in force prior to January 1, 1950, who (1) was not a
participant in this fund on January 1, 1950, (2) attained age 65 before
July 1, 1950 and (3) fails to qualify as an employee by virtue of the 12
months' service requirement by July 1, 1950, shall not be credited for
any annuity purposes under this Article; nor shall any other person so
employed, who attains age 65 or more subsequent to July 1, 1950, and
before qualifying as an employee, be credited for any annuity purposes
under this Article. Such person shall not be considered an employee.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-167)
(from Ch. 108 1/2, par. 8-167)
Sec. 8-167. Restoration of rights. An employee who has withdrawn as a refund the amounts credited for
annuity purposes, and who (i) re-enters service of the employer and
serves for periods
comprising at least 90 days after the date of the last refund
paid to
him
or (ii) has completed at least 2 years of service under a participating
system (as defined in the Retirement Systems Reciprocal Act) other than this
Fund after the date of the last refund,
shall have his annuity rights restored by compliance with the
following provisions:
(a) After that 90 day or 2 year period, whichever | ||
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(b) If payment is not made in a single sum, the | ||
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(c) If the employee withdraws from service or dies in | ||
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(d) If the employee repays the refund while | ||
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This Section applies also to any person who received a refund from
any annuity and benefit fund or pension fund which was merged into and
superseded by the annuity and benefit fund provided for in this Article
on or after December 31, 1959. Upon repayment such person shall receive
credit for all annuity purposes in the annuity and benefit fund provided
for in this Article for the period of service covered by the repayment.
The amount of refund repayment is considered as salary deductions for
age and service annuity and widow's annuity purposes in the case of a
male person. In the latter case the amount of refund repayment is
allocated in the applicable proportion for age and service and widow's
annuity purposes. Such person shall also be credited with city
contributions for age and service annuity, and widow's annuity if a male
employee, in the amount which would have been credited and accrued if
such person had been a participant in and contributor to the annuity and
benefit fund provided for in this Article during the period of such
service on the basis of his salary during such period.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
Sec. 8-168. Refunds - Withdrawal before age 55 or age 62 or with less than 10
years of service.
1. An employee who first became a member before January 1, 2011, without regard to length of service, who withdraws
before age 55, and any employee with less than 10 years of service who
withdraws before age 60, shall be entitled to a refund of the
accumulated sums to his credit, as of the date of withdrawal, for age
and service annuity and widow's annuity from amounts contributed by him,
including interest credited and including amounts contributed for him
for age and service and widow's annuity purposes by the city while
receiving duty disability benefits; provided that such amounts contributed
by the city after December 31, 1981, while the employee is receiving duty
disability benefits,
and amounts credited to
the employee for annuity purposes by the fund after December 31, 2000, while
the
employee is receiving ordinary disability benefits,
shall not be credited for refund purposes. If he
is a present employee he shall
also be entitled to a refund of the accumulations from any sums
contributed by him, and applied to any municipal pension fund superseded
by this fund.
An employee who first becomes a member on or after January 1, 2011 who withdraws before age 62 without regard to length of service, or who withdraws with less than 10 years of service regardless of age, shall be entitled to a refund of the total sum accumulated to his credit as of date of withdrawal for age and service annuity and widow's annuity provided that such amounts contributed by the city while the employee is receiving duty disability benefits and amounts credited to the employee for annuity purposes by the fund while the employee is receiving ordinary disability benefits shall not be credited for refund purposes. 2. Upon receipt of the refund, the employee surrenders and forfeits
all rights to any annuity or other benefits, for himself and for any
other persons who might have benefited through him; provided that he may
have such period of service counted in computing the term of his service
if he becomes an employee before age 65, excepting as limited by the
provisions of paragraph (a) (3) of Section 8-232 of this Article
relating to the basis of computing the term of service.
3. Any such employee shall retain such right to a refund of such
amounts when he shall apply for same until he re-enters the service or
until the amount of annuity shall have been fixed as provided in this
Article. Thereafter, no such right shall exist in the case of any such
employee.
4. Any such municipal employee who shall have served 10 or more
years and who shall not withdraw the amounts aforesaid to which he shall
have a right of refund shall have a right to annuity as stated in this
Article.
5. Any such municipal employee who shall have served less than 10
years and who shall not withdraw the amounts to which he shall have a
right to refund shall have a right to have all such amounts and all
other amounts to his credit for annuity purposes on date of his
withdrawal from service retained to his credit and improved by interest
while he shall be out of the service at the rate of 3 1/2% or 3% per
annum (whichever rate shall apply under the provisions of Section 8-155
of this Article) and used for annuity purposes for his benefit and the
benefit of any person who may have any right to annuity through him
because of his service, according to the provisions of this Article in
the event that he shall subsequently re-enter the service and complete
the number of years of service necessary to attain a right to annuity;
but such sum shall be improved by interest to his credit while he shall
be out of the service only until he shall have become 65 years of age.
(Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/8-169) (from Ch. 108 1/2, par. 8-169)
Sec. 8-169.
Refund of widow's annuity deductions.
When a male employee is (1) unmarried when he attains age 65, (2)
married at age 65, and subsequently becomes a widower while still in
service, or (3) unmarried upon withdrawal before age 65 and enters upon
annuity, the sum accumulated from employee contributions for widow's
annuity shall be refunded to him.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-169.1) (from Ch. 108 1/2, par. 8-169.1)
Sec. 8-169.1.
Refund of salary deductions to widow.
If a male employee with less than 20 years of service dies while in
the service after attaining age 65 and leaves a widow eligible for
widow's annuity who does not qualify for minimum annuity for widows
under Section 8-150.1 of this Article and whose amount of widow's
annuity was thus fixed and determined when her husband attained age 65,
such widow shall have refunded upon her husband's death the accumulated
sums resulting from deductions made from the salary of her husband for
age and service annuity purposes after the date on which he attained age
65.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-170) (from Ch. 108 1/2, par. 8-170)
Sec. 8-170.
Refunds - When paid to beneficiary, children or estate.
Whenever the accumulations including interest credited thereon to the
account of a deceased employee from employee contributions for annuity
purposes, and from employee contributions applied to any municipal
pension fund superseded by this fund, have not been paid to him, and in
the case of a married male employee to the employee and his widow, both
together, in form of annuity or refund before the death of the last of
such persons, a refund shall be paid as follows:
An amount equal to the excess of such amounts over the amounts paid
on any annuity or annuities or refund, without interest upon either of
such amounts, shall be refunded to a beneficiary theretofore designated
by the employee in writing, signed by him before an officer authorized
to administer oaths, and filed with the board before the employee's
death.
If there is no designated beneficiary or the beneficiary does not
survive the employee, the amount shall be refunded to the employee's
children, in equal parts, with the children of a deceased child taking
the share of their parent. If there is no designated beneficiary or
children, the refund shall be paid to the administrator or executor of
the employee's estate. If an administrator or executor of the estate has
not been appointed within 90 days from the date the refund became
payable, the refund may be applied, in the discretion of the board,
toward the payment of the employee's burial expenses. Any remaining
balance shall be paid to the heirs of the employee according to the law
of descent and distribution of this State, but assuming for the purpose
of such payment of refund and determination of heirs that the deceased
male employee left no widow surviving him where a widow eligible for
widow's annuity survived him and subsequently died; provided, that if
any children of the employee are less than age 18, such part or all of
any such amount necessary to pay annuities to them shall not be refunded
as hereinbefore stated but shall be transferred to the child's annuity
reserve and used therein for the payment of such annuities; and provided
further, that if a reversionary annuity becomes payable, such refund
shall not be paid until the death of the reversionary annuitant, and the
refund otherwise payable under this Section shall then be further
reduced by the amount of the reversionary annuity paid.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
Sec. 8-171.
Refund in lieu of annuity.
In lieu of an annuity, an employee
who withdraws and whose annuity would amount to less than $800 a month for
life, may elect to receive a refund of his accumulated contributions for
annuity purposes, based on the amounts contributed by him.
The widow of any employee, eligible for annuity upon the death of her
husband, whose widow's annuity would amount to less than $800 a
month for life, may, in lieu of widow's annuity, elect to receive a refund
of the accumulated contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by any amounts
theretofore paid to him in the form of an annuity or refund out of such
accumulated contributions.
Accumulated contributions shall mean the amounts - including the interest
credited thereon - contributed by the employee for age and service and widow's
annuity to the date of his withdrawal or death, whichever first occurs,
including any amounts contributed for him as salary deductions while receiving
duty disability benefits, and, if not otherwise included, any accumulations
from sums contributed by him and applied to any pension fund superseded by this
fund; provided that such amounts contributed by the city after December 31,
1981 while the employee is receiving duty disability benefits and amounts
credited to the employee for annuity purposes by the fund after December 31,
2000 while the employee is receiving ordinary disability shall not be
included.
The acceptance of such refund in lieu of widow's annuity, on the part of
a widow, shall not deprive a child or children of the right to receive a
child's annuity as provided for in Sections 8-158 and 8-159 of this Article,
and neither shall the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable to such widow
electing a refund in lieu of widow's annuity.
(Source: P.A. 91-887, eff. 7-6-00; 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-172)
(from Ch. 108 1/2, par. 8-172)
Sec. 8-172. Refunds - Transfer of city contributions. Whenever any
amount is refunded as provided in Sections 8-168 and 8-169, except in
the case of a male employee who becomes a widower while in
service after he becomes age 65, the amounts to the credit of the male
employee from contributions by the city shall be transferred to the prior
service annuity reserve. Thereafter, except as otherwise provided in Section
8-172.1, any such amounts shall become a credit
to the city and, with interest thereon at the effective rate, be used to
reduce the amount which the city would otherwise pay during a succeeding
year.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/8-172.1)
Sec. 8-172.1. Transfer of city contributions for paramedics.
(a) Municipality credits computed and credited under this Article 8 for all
persons who (1) accumulated service credit in this Article 8 fund for service
as a paramedic, (2) have terminated that Article 8 service credit and received
a refund of contributions, and (3) are participants in the Article 6 fund on
the effective date of this amendatory Act of the 96th General Assembly shall
be transferred by this Article 8 fund to the Article 6 fund together with
interest at the actuarially assumed rate, compounded annually, to the date of
transfer. The city shall not be responsible for making any additional employer
contributions to the Fund to replace the amounts transferred under this
Section.
(b) Municipality credits computed and credited under this Article 8 for all
persons who (1) accumulated service credit in this Article 8 fund for service
as a paramedic, (2) have terminated that Article 8 service credit and received
a refund of contributions, and (3) are not participants in the Article 6 fund
on the effective date of this amendatory Act of the 93rd General Assembly shall
be used as provided in Section 8-172.
(Source: P.A. 96-727, eff. 8-25-09.) |
(40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
Sec. 8-173. Financing; tax levy.
(a) Except as provided in subsection (f) of this Section, the city council
of the city shall levy a tax annually upon all taxable property in the city at
a rate that will produce a sum which, when added to the amounts deducted from
the salaries of the employees or otherwise contributed by them and the
amounts deposited under subsection (f), will be sufficient for the
requirements of this Article, but which when extended will produce an amount
not to exceed the greater of the following: (a) the sum obtained by the levy
of a tax of .1093% of the value, as equalized or assessed by the Department
of Revenue, of all taxable property within such city, or (b) the sum of
$12,000,000.
However any city in which a Fund has been established and in operation
under this Article for more than 3 years prior to 1970 shall
levy for the year 1970 a tax at a rate on the dollar of assessed
valuation of all taxable property that will produce, when extended, an
amount not to exceed 1.2 times the total amount of contributions made by
employees to the Fund for annuity purposes in the calendar year 1968,
and, for the year 1971 and 1972 such levy that will produce, when
extended, an amount not to exceed 1.3 times the total amount of
contributions made by employees to the Fund for annuity
purposes in the calendar years 1969 and 1970, respectively; and for the
year 1973 an amount not to exceed 1.365 times such total amount of
contributions made by employees for annuity purposes in the calendar
year 1971; and for the year 1974 an amount not to exceed 1.430 times
such total amount of contributions made by employees for annuity
purposes in the calendar year 1972; and for the year 1975 an amount not
to exceed 1.495 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1973; and for the year 1976
an amount not to exceed 1.560 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1974; and for the year 1977
an amount not to exceed 1.625 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1975; and for the year 1978
and each year thereafter through levy year 2016, such levy as will produce, when
extended, an amount not to exceed the total amount of
contributions made by or on behalf of employees to the Fund for annuity
purposes in the calendar year 2 years prior to the year for which the annual
applicable tax is levied, multiplied by 1.690 for the years 1978 through 1998
and by 1.250 for the year 1999 and for each year thereafter through levy year 2016. Beginning in levy year 2017, and in each year thereafter, the levy shall not exceed the amount of the city's total required contribution to the Fund for the next payment year, as determined under subsection (a-5). For the purposes of this Section, the payment year is the year immediately following the levy year.
The tax shall be levied and collected in like manner with the general
taxes of the city, and shall be exclusive of and in addition to the
amount of tax the city is now or may hereafter be authorized to levy for
general purposes under any laws which may limit the amount of tax which
the city may levy for general purposes. The county clerk of the county
in which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of taxes, shall
not consider the tax herein provided for as a part of the general tax
levy for city purposes, and shall not include the same within any
limitation of the percent of the assessed valuation upon which taxes are
required to be extended for such city.
Revenues derived from such tax shall be paid to the city treasurer of
the city as collected and held by the city treasurer for the benefit of the fund.
If the payments on account of taxes are insufficient during any year
to meet the requirements of this Article, the city may issue tax
anticipation warrants against the current tax levy.
The city may continue to use other lawfully available funds in lieu of all or part of the levy, as provided under subsection (f) of this Section. (a-5) (1) Beginning in payment year 2018, the city's required annual contribution to the Fund for payment years 2018 through 2022 shall be: for 2018, $266,000,000; for 2019, $344,000,000; for 2020, $421,000,000; for 2021, $499,000,000; and for 2022, $576,000,000. (2) For payment years 2023 through 2058, the city's required annual contribution to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the city's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined on a level percentage of applicable employee payroll basis (reflecting any limits on individual participants' pay that apply for benefit and contribution purposes under this plan) that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2058. (3) For payment years after 2058, the city's required annual contribution to
the Fund shall be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund as of the end of the year. In making the determinations under paragraphs (2) and (3) of this subsection, the actuarial calculations shall be determined under the entry age normal actuarial cost method, and any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following the fiscal year. To the extent that the city's contribution for any of the payment years referenced in this subsection is made with property taxes, those property taxes shall be levied, collected, and paid to the Fund in a like manner with the general taxes of the city. (a-10) If the city fails to transmit to the Fund contributions required of it under this Article by December 31 of the year in which such contributions are due, the Fund may, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in payment year 2018, deduct and deposit into the Fund the certified amounts or a portion of those amounts from the following proportions of grants of State funds to the city: (1) in payment year 2018, one-third of the total | ||
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(2) in payment year 2019, two-thirds of the total | ||
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(3) in payment year 2020 and each payment year | ||
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The State Comptroller may not deduct from any grants of State funds to the city more than the amount of delinquent payments certified to the State Comptroller by the Fund. (b) On or before July 1, 2017, and each July 1 thereafter, the board shall certify to the
city council the annual amounts required under this Article, for which the tax herein
provided shall be levied for the following year. The board shall compute
the amounts necessary to be credited to the reserves established and
maintained as herein provided, and shall make an annual determination of
the amount of the required city contributions, and certify the results
thereof to the city council.
(c) In respect to employees of the city who are transferred to the
employment of a park district by virtue of the "Exchange of Functions
Act of 1957", the corporate authorities of the park district shall
annually levy a tax upon all the taxable property in the park district
at such rate per cent of the value of such property, as equalized or
assessed by the Department of Revenue, as shall be
sufficient, when added to the amounts deducted from their salaries and
otherwise contributed by them to provide the benefits to which they and
their dependents and beneficiaries are entitled under this Article. The city
shall not levy a tax hereunder in respect to such employees.
The tax so levied by the park district shall be in addition to and
exclusive of all other taxes authorized to be levied by the park
district for corporate, annuity fund, or other purposes. The county
clerk of the county in which the park district is located, in reducing
any tax levied under the provisions of any act concerning the levy and
extension of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in any
limitation of the per cent of the assessed valuation upon which taxes
are required to be extended for the park district. The proceeds of the
tax levied by the park district, upon receipt by the district, shall be
immediately paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums to be contributed by the city and park district and
allocated for the purposes of this Article, and any interest to be
contributed by the city, shall be derived from the revenue from the taxes
authorized in this Section or otherwise as expressly provided
in this Section.
If it is not possible or practicable for the city to make
contributions for age and service annuity and widow's annuity at the
same time that employee contributions are made for such
purposes, such city contributions shall be construed to be due and
payable as of the end of the fiscal year for which the tax is levied and
shall accrue thereafter with interest at the effective rate until paid.
(d) With respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, subsequent to October 1, 1978, and in instances
where the board has elected to establish a manpower program reserve, the
board shall compute the amounts necessary to be credited to the manpower
program reserves established and maintained as herein provided, and
shall make a periodic determination of the amount of required
contributions from the City to the reserve to be reimbursed by the
federal government in accordance with rules and regulations established
by the Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the City Council. Any such
amounts shall become a credit to the City and will be used to reduce the
amount which the City would otherwise contribute during succeeding years
for all employees.
(e) In lieu of establishing a manpower program reserve with respect
to employees whose wages are funded as participants under the
Comprehensive Employment and Training Act of 1973, as authorized by
subsection (d), the board may elect to establish a special municipality
contribution rate for all such employees. If this option is elected, the
City shall contribute to the Fund from federal funds provided under the
Comprehensive Employment and Training Act program at the special rate so
established and such contributions shall become a credit to the City and
be used to reduce the amount which the City would otherwise contribute
during succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax required under this
Section in any year, the city may deposit with the city treasurer for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied under this Section
for that year, is not less than the amount of the city contributions for that
year as certified by the board to the city council. The deposit may be derived
from any source legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit shall satisfy
fully the requirements of this Section for that year to the extent of the
amounts so deposited. Amounts deposited under this subsection may be used by
the fund for any of the purposes for which the proceeds of the tax levied by
the city under this Section may be used, including the payment of any amount
that is otherwise required by this Article to be paid from the proceeds of that
tax.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/8-173.1)
Sec. 8-173.1. (Repealed).
(Source: P.A. 98-641, eff. 6-9-14. Repealed by P.A. 100-23, eff. 7-6-17.)
|
(40 ILCS 5/8-174)
(from Ch. 108 1/2, par. 8-174)
Sec. 8-174. Contributions for age and service annuities for present
employees and future entrants.
(a) Beginning on the effective date and prior to July 1, 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July 1, 1953, 5%; and
beginning July 1, 1953, and prior to January 1, 1972, 6%; and beginning
January 1, 1972, 6-1/2% of each payment of the salary of each present
employee and future entrant, except as provided in subsection (a-5) and (a-10), shall be contributed to the fund as a
deduction from salary for age and service annuity.
(a-5) Except as provided in subsection (a-10), for an employee who made the election under item (i) of subsection (d-10) of Section 1-160: prior to the effective date of this amendatory Act of the 100th General Assembly, 6.5%; and beginning on the effective date of this amendatory Act of the 100th General Assembly and prior to January 1, 2018, 7.5%; and beginning January 1, 2018 and prior to January 1, 2019, 8.5%; and beginning January 1, 2019 and thereafter, employee contributions for those employees who made the election under item (i) of subsection (d-10) of Section 1-160 shall be the lesser of: (i) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior fiscal year for the benefits and expenses of the plan of benefits applicable to those members and participants who first became members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to those employees who made the election under item (i) of subsection (d-10) of Section 1-160, but not less than 6.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and Section 8-182 of this Article; or (ii) the aggregate employee contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and 8-182 of this Article. For the one-year period beginning with the first pay period in January of each year after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for those employees who made the election under item (i) of subsection (d-10) of Section 1-160 shall be 5.5% of each payment of salary. If the funding ratio falls below 75%, then employee contributions for age and service annuity for those employees who made the election under item (i) of subsection (d-10) shall revert to the lesser of: (A) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior fiscal year for the benefits and expenses of the plan of benefits applicable to those members and participants who first became members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to those employees who made the election under item (i) of subsection (d-10) of Section 1-160, but not less than 6.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and Section 8-182 of this Article; or (B) the aggregate employee contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and 8-182 of this Article. If the fund once again is determined to have reached a funding ratio of 75%, the 5.5% of salary contribution for age and service annuity shall resume. An employee who made the election under item (ii) of subsection (d-10) of Section 1-160 shall continue to have the contributions for age and service annuity determined under subsection (a) of this Section. If contributions are reduced to less than the aggregate employee contribution described in item (ii) or item (B) of this subsection due to application of the normal cost criterion, the employee contribution amount shall be consistent for that fiscal year. The normal cost, for the purposes of this subsection (a-5) and subsection (a-10), shall be calculated by an independent enrolled actuary mutually agreed upon by the fund and the City. The fees and expenses of the independent actuary shall be the responsibility of the City. For purposes of this subsection (a-5), the fund and the City shall both be considered to be the clients of the actuary, and the actuary shall utilize participant data and actuarial standards to calculate the normal cost. The fund shall provide information that the actuary requests in order to calculate the applicable normal cost. (a-10) For each employee subject to subsection (c-5) of Section 1-160, 9.5% of each payment of salary shall be contributed to the fund as a deduction from salary for age and service annuity. Beginning January 1, 2018 and each year thereafter, employee contributions for each employee subject to this subsection (a-10) shall be the lesser of: (i) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior fiscal year for the benefits and expenses of the plan of benefits applicable to those members and participants who first become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to those employees who made the election under item (i) of subsection (d-10) of Section 1-160, but not less than 6.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and Section 8-182 of this Article; or (ii) the aggregate employee contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and Section 8-182 of this Article. For the one-year period beginning with the first pay period in January of each year after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall be 5.5% of each payment of salary. If the funding ratio falls below 75%, then employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall revert to the lesser of: (A) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior fiscal year for the benefits and expenses of the plan of benefits applicable to those members and participants who first become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to those employees who made the election under item (i) of subsection (d-10) of Section 1-160, but not less than 6.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and Section 8-182 of this Article; or (B) the aggregate employee contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and Section 8-182 of this Article. If the fund once again is determined to have reached a funding ratio of 75%, the 5.5% of salary contribution for age and service annuity shall resume. If contributions are reduced to less than the aggregate employee contribution described in item (ii) or item (B) of this subsection (a-10) due to application of the normal cost criterion, the employee contribution amount shall be consistent for that fiscal year. Such deductions beginning on the effective date and prior to July 1,
1947 shall be made for a future entrant while he is in the service until
he attains age 65 and for a present employee while he is in the service
until the amount so deducted from his salary with the amount deducted
from his salary or paid by him according to law to any municipal pension
fund in force on the effective date with interest on both such amounts
at 4% per annum equals the sum that would have been to his credit from
sums deducted from his salary if deductions at the rate herein stated
had been made during his entire service until he attained age 65 with
interest at 4% per annum for the period subsequent to his attainment of
age 65. Such deductions beginning July 1, 1947 shall be made and
continued for employees while in the service.
(b) Concurrently with each employee contribution, the city shall contribute beginning on the effective date and prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 6, 2017, 6% of each payment of such salary until the employee attains age 65. Beginning July 6, 2017, the Fund shall credit sums equal to 6% of each payment of such salary for annuity purposes. The amounts credited for annuity purposes shall not be credited for refund purposes.
(c) Each employee contribution made prior to the date the age and
service annuity for an employee is fixed and each corresponding city
contribution shall be credited to the employee and allocated to the
account of the employee for whose benefit it is made.
(d) Notwithstanding Section 1-103.1, the changes to this Section made by this amendatory Act of the 100th General Assembly apply regardless of whether the employee was in active service on or after the effective date of this amendatory Act of the 100th General Assembly.(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.) |
(40 ILCS 5/8-174.1)
(from Ch. 108 1/2, par. 8-174.1)
Sec. 8-174.1. Employer contributions on behalf of employees.
(a) The
employer may make and may incur an obligation to make
contributions on behalf of its employees in an amount not to exceed the
employee contributions required by Sections 8-137, 8-161, 8-174,
8-182 and 8-182.1 for all salary earned after December 31, 1981. If such
employee contributions are not made or an obligation to make such contributions
is not incurred by the employer on behalf of its employees, the amount that
could have been contributed shall continue to be deducted from salary. If
employee contributions are made by the employer on behalf of its employees,
they shall be treated as employer contributions in determining tax treatment
under the United States Internal Revenue Code; however, each city shall
continue to withhold Federal and State income taxes based upon these
contributions until the Internal Revenue Service or the Federal courts rule
that pursuant to Section 414(h) of the United
States Internal Revenue Code, these contributions shall not be included
as gross income of the employee until such time as they are distributed
or made available. The employer may make these contributions on behalf
of its employees by a reduction in the cash salary of the employee or by
an offset against a future salary increase or by a combination of a reduction
in salary and offset against a future salary increase. The employer shall
pay these employee contributions from the same source of funds used in paying
salary to the employee or, if the employer is a Board of Education, it may also
or alternatively pay such contributions in whole or in part from the proceeds
of the pension contribution liability tax authorized by Section 34-60.1
of the School Code, as amended. If such a tax is levied with respect to
any fiscal year of a Board of Education, that portion of the contributions
to be paid by the Board of Education on behalf of its employees for that
fiscal year from the proceeds of such a tax shall not be due and payable
into the Fund until the collection, in the calendar year following the calendar
year in which such levy was made, of the actual tax bills extending the
second installment of real estate taxes for the Board of Education for that
calendar year, pursuant to Section 21-30 of the Property Tax Code, and such Board of Education shall not
be required to pay those contributions to be paid from the proceeds of such a
tax into the Fund except as collected from the extension of the actual tax
bills. If employee contributions are made by the employer on behalf of its
employees, they shall be treated for all purposes
of this Article 8, including Section 8-173, in the same manner and to the
same extent as employee contributions made by employees and deducted from
salary; provided, however, that contributions which are made by a Board
of Education on behalf of its employees shall not be treated as a pension
or retirement obligation of the Board of Education for purposes of Section
12 of "An Act in relation to State revenue sharing with local governmental
entities", approved July 31, 1969, as amended. For purposes of Section
8-173, contributions made by a Board of Education on behalf of its employees
shall be treated as contributions made by or on behalf of employees to the
Fund for the fiscal year for which the Board of Education incurred the
obligation to make such contributions.
(b) Subject to the requirements of federal law and the rules of the Board,
the Fund may allow the employee to elect to have the employer make on behalf of
the employee the
optional contributions that the employee has elected to pay to the Fund, and
the contributions so made on the employee's behalf shall be treated as employer
contributions for
the purpose of determining federal tax treatment. The employer shall make
contributions on behalf of an employee by a reduction in the cash salary of the
employee and shall
pay contributions from the same source of funds that is used to pay earnings of
the employee. The election to have the contributions made on the employee's
behalf is irrevocable,
and the optional contributions may not thereafter be prepaid, by direct payment
or otherwise.
If the provision authorizing the optional contribution requires payment by a
stated date (rather than the date of withdrawal or retirement), the requirement
will be deemed to have been satisfied if (i) on or before the stated date the
employee executes a valid irrevocable election to have the contributions made
on his or her behalf under this subsection, and (ii) the
contributions made on his or her behalf are in fact paid
to the Fund as provided in the election.
If employee contributions are made by the employer on the employee's behalf
under this subsection, they shall be
treated for all purposes of this Article 8, including Section 8-173, in the
same manner and to the same extent as optional employee contributions made
prior to the date made on the employee's behalf.
(Source: P.A. 93-654, eff. 1-16-04.)
|
(40 ILCS 5/8-174.2) Sec. 8-174.2. (Repealed).(Source: P.A. 98-641, eff. 6-9-14. Repealed by P.A. 103-443, eff. 8-4-23.) |
(40 ILCS 5/8-175) (from Ch. 108 1/2, par. 8-175)
Sec. 8-175.
Additional credits-Public school employees.
The board shall ascertain the contributions of each employee who on June
30, 1923, was a contributor to any municipal pension fund then in operation
in the city under the Public School Employee's Pension Act of 1903, and
which were applied to such fund between the day before the effective date
and July 1, 1923. Each such employee shall be credited with the total
employee contributions with interest thereon at the effective rate from the
last day of each month in which any such amount has been contributed to
July 1, 1923.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-176) (from Ch. 108 1/2, par. 8-176)
Sec. 8-176.
Additional credits-To July 1, 1923.
The board shall also ascertain the service rendered by each present
employee who did not attain age 65 prior to July 1, 1923, and the service
rendered by each future entrant between the day before the effective date
and July 1, 1923. Each such employee shall be credited with 5 3/4% of his
annual salary during such service, with interest thereon at the effective
rate to July 1, 1923, upon the assumption that 1/12 of such 5 3/4% of such
annual salary was due at the end of each month of such service.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-177) (from Ch. 108 1/2, par. 8-177)
Sec. 8-177.
Additional credits-To July 1, 1935.
The board shall also ascertain the service rendered by each employee who
was employed by the board on June 30, 1935, between the day before the
effective date and July 1, 1935, or the date he attained age 65, prior to
July 1, 1935, and shall credit him with 5 3/4% of his annual salary during
such service with interest thereon at the effective rate to July 1, 1935,
or the date he attained age 65, upon the assumption that 1/12 of such 5
3/4% of such annual salary was due at the end of each month of such
service.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-178) (from Ch. 108 1/2, par. 8-178)
Sec. 8-178.
Credit-Employees in certain other superseded funds.
Every employee who, on December 31, 1959, was a contributor to an
annuity and benefit fund in the city under the Court and Law Department
Employee's Annuity Act, or under the Board of Election Commissioner's
Employees' Annuity Act shall receive credits in this fund as follows:
For service prior to January 1, 1960, as of January 1, 1960, for the
accumulated employee contributions and city contributions respectively
standing to his credit for age and service and prior service annuity on
December 31, 1959 in such other fund.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/8-178.1) (from Ch. 108 1/2, par. 8-178.1)
Sec. 8-178.1.
Credit - Employees in superseded Public Library Employes'
Pension Fund. Every employee who, on December 31, 1965, was a contributor and
participant in the fund in operation in the city on such date created under and
by virtue of the Public Library Employes' Pension Act shall receive credit as
follows:
For service prior to January 1, 1966, a city contribution for age and
service annuity purposes, of an amount equal to the amount which would have
accumulated to his credit from city contributions for age and service
annuity to such date, including interest at the effective rate, had he been
a participant and contributor during all of his service prior to such date;
and, if a present employee in service on the effective date, a city
contribution for prior service annuity equal to the amount otherwise
provided for present employees as a city contribution for prior service.
Each such employee shall also be credited on such date with the then
accumulated amounts, including any interest credited thereon, resulting
from contributions made by him and applied to such Public Library Employes'
Pension Fund, and such amounts shall be treated as salary deductions.
(Source: Laws 1965, p. 2300.)
|
(40 ILCS 5/8-178.2) (from Ch. 108 1/2, par. 8-178.2)
Sec. 8-178.2.
Credit-Employees in superseded House of Correction Employees'
Pension Fund.
Every employee who, on December 31, 1968, was a contributor and
participant in the fund in operation in the city on such date created under
and by virtue of the House of Correction Employees' Pension Act shall
receive credit as follows:
For service prior to January 1, 1969, a city contribution for age and
service annuity purposes, of an amount equal to the amount which would have
accumulated to his credit from city contributions for age and service
annuity to such date, including interest at the effective rate, had he been
a participant and contributor during all of his service credited as service
in such House of Correction Employees' Pension Fund prior to such date. The
maximum salary to be considered for the purpose of computing the amount of
the aforesaid city contributions shall not exceed the highest amount of
salary considered for salary deduction purposes under the law governing
such House of Correction Employees' Pension Fund at the date such salary
deductions were made, and the actual rate of salary--not to exceed such
highest amount--shall also be applicable in determining salary for all
annuity purposes covering, involving, or requiring salary determination for
any particular year prior to the year 1968.
Each such employee shall also be credited on such date with the then
accumulated amounts, resulting from contributions made by him and applied
to such House of Correction Employees' Pension Fund (not including the
additional 2% contributions made from salaries of male employees since July
1, 1965 which are to be credited as salary deductions for Widows' Annuity
purposes) and such amounts shall be treated as salary deductions.
(Source: Laws 1968, p. 181.)
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(40 ILCS 5/8-179) (from Ch. 108 1/2, par. 8-179)
Sec. 8-179.
Additional credit-Present employees.
The board shall also ascertain the service rendered by each present
employee who attained age 65 subsequent to the day before the effective
date and prior to July 1, 1923, between the said first named date and the
date he attained age 65. Each such employee shall be credited with 5 3/4%
of his annual salary during such service, with interest thereon at the
effective rate to the date he attained age 65, upon the assumption that
1/12 of such 5 3/4% of such annual salary was due at the end of each month
of such service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-180) (from Ch. 108 1/2, par. 8-180)
Sec. 8-180.
Additional contributions and credits-All employees.
Any employee in service on July 1, 1947 may elect to make additional
contributions while in service which shall not exceed 7/13 of the sum
accumulated on July 1, 1947, or at age 65 if he attained such age prior
thereto, for age and service annuity resulting from his contributions plus
interest credited subsequent to January 1, 1922. The time and manner of
making such additional contributions shall be prescribed by the board.
Concurrently with each such additional contribution, the city shall
contribute 1 and 4/10 times the additional contributions.
These contributions shall be improved at interest at the rate and in
like manner as other employee and city contributions; provided, that the
employee while in service may request a refund of all or any part of his
contributions, without interest, or shall have them refunded to him,
without interest, when he retires on annuity or to his widow, if and to the
extent they do not serve to increase the annuity otherwise payable to him
or his widow.
By such refund the employee or his widow surrenders and forfeits all
rights which might otherwise have accrued by virtue of any amount so
refunded, including related city contributions.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-180.1) (from Ch. 108 1/2, par. 8-180.1)
Sec. 8-180.1.
Credit for service as counsel of the Chicago Welfare
Administration. Any person who shall have rendered service before 1941 as
special corporation counsel of the Chicago Welfare Administration, for which service
no credit has been granted in this fund or in any other public pension fund
or retirement
system in this State by whatever name called, may establish credit in this
fund for all or as much
as that person may desire of such service for a period not to exceed 50% of all
of the service rendered by paying into the fund an employee contribution plus
the employer contribution equal to the payments which would have been required
if such service has been rendered as a participant in the fund, based on the
rates of compensation in effect at the time the service was rendered, and rates of
contributions that are in effect today with interest thereon at 4% per annum,
compounded annually, from the date such service was rendered to the date of payment.
(Source: P.A. 80-1419.)
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(40 ILCS 5/8-180.2) (from Ch. 108 1/2, par. 8-180.2)
Sec. 8-180.2.
Any person who has at least 8 years of service credit
in the Fund may establish service credit in the Fund for any period during
which he served as Executive Director of the Chicago Land Clearance Commission,
Executive Director of the Chicago Dwellings Association, or Administrator
of the Illinois-Indiana Bi-State Commission, and was otherwise ineligible
to participate in the Fund, by paying to the Fund before April 1, 1984 an
amount equal to (1) employee contributions based on the actual compensation
received and the rate of contribution in effect on the date of payment;
plus (2) an amount representing employer contributions, equal to the amount
specified in subdivision (1); plus (3) interest thereon at the rate of
6% per annum, compounded annually, from the date of service to the date of
payment.
(Source: P.A. 83-802.)
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(40 ILCS 5/8-181) (from Ch. 108 1/2, par. 8-181)
Sec. 8-181.
Interest credits-All employees.
Amounts credited for age and service and prior service annuity shall be
improved by interest at the effective rate during the time thereafter an
employee is in service until his annuity is fixed if a present employee or
until attainment of age 65 if a future entrant.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-182) (from Ch. 108 1/2, par. 8-182)
Sec. 8-182.
Contributions for widow's annuity for widows of present employees and
future entrants.
(a) Beginning on the effective date, 1%, and from and after January 1,
1966, 1 1/2% of each payment of salary shall be contributed by each male
employee for widow's annuity as a deduction from salary. Deductions shall
be continued during service until the employee attains age 65.
(b) Concurrently with each employee contribution, the city beginning on
the effective date and prior to July 1, 1947 shall contribute 1 3/4% of
salary; and beginning on July 1, 1947 2% of salary.
(c) Each employee contribution made prior to the date when the amount of
widow's annuity for the employee is fixed, and each concurrent city
contribution shall be allocated to the account of and credited to the
employee for whose benefit it is made.
(Source: Laws 1965, p. 2795.)
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(40 ILCS 5/8-182.1) (from Ch. 108 1/2, par. 8-182.1)
Sec. 8-182.1.
Contributions by female employees.
(a) Effective as of October 1, 1974, each female employee shall
contribute at the same rates as a
male employee for widow's annuity or
other benefits, to the end that like credits may be established and
maintained for both male and female employees for all purposes of this
Article with respect to annuities, benefits, contribution rates, refunds
and other provisions of this Article.
(b) Any female employee shall have the option of making
contributions for the aforesaid purposes covering the period prior to
October 1, 1974, and receiving pension credits therefor, including the
concurrent credits from city contributions. Such contributions shall
include interest at 4% per annum from the dates such contributions
should have been made from the beginning of their service to the dates
of payments to the end that equal credits may be provided for all
employees under this Article.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-183) (from Ch. 108 1/2, par. 8-183)
Sec. 8-183.
Additional credits - widow's annuities - public school employees.
(a) Each married male present employee who on June 30, 1923, was a
contributor to a municipal pension fund in the city under the Public School
Employees' Pension Act of 1903, and who attained age 65 subsequent to the
day before the effective date and prior to July 1, 1923, shall be credited
for widow's annuity as follows:
1 3/4% of his annual salary during the time between the day before the
effective date and the date he attained age 65, for such service, with
interest thereon at the effective rate to age 65, upon the assumption that
1/12 of such 1 3/4% of such annual salary was due on the last day of each
month of such service.
(b) Each male present employee, who on June 30, 1923, was a contributor
to a municipal pension fund in the city under the Public School Employees'
Pension Act of 1903, and who did not attain age 65 before July 1, 1923,
shall be credited for widow's annuity as follows:
1 3/4% of annual salary during his service between the day before the
effective date, and July 1, 1923, for such service, with interest thereon
at the effective rate to July 1, 1923, upon the assumption that 1/12 of
such 1 3/4% of such annual salary was due on the last day of each month of
such service.
(c) Each male future entrant who on June 30, 1923, was a contributor to
a municipal pension fund in the city under the Public School Employees'
Pension Act of 1903 shall be credited for widow's annuity with 1 3/4% of
his annual salary during his service between the day before the effective
date and July 1, 1923, for the term of his service, with interest thereon
at the effective rate to July 1, 1923, upon the assumption that 1/12 of
such 1 3/4% of such annual salary was due on the last day of each month of
such service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-184) (from Ch. 108 1/2, par. 8-184)
Sec. 8-184.
Additional credit-Widow's annuity-Retirement board employees.
Each male employee who on June 30, 1935 was an employee of the board,
shall be credited with 1 3/4% of his annual salary during his service
between the day before the effective date and July 1, 1935, or the date he
attained age 65 prior to July 1, 1935, for the term of service, with
interest thereon at the effective rate to July 1, 1935, or the date he
attained age 65, upon the assumption that 1/12 of such 1 3/4% of such
annual salary was due on the last day of each month of service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-185) (from Ch. 108 1/2, par. 8-185)
Sec. 8-185.
Widow's annuity credit-All employees in certain other superseded funds.
A male employee who, on December 31, 1959, was a contributor to an
annuity and benefit fund in the city under the Court and Law Department
Employees' Annuity Act, or under the Board of Election Commissioners
Employees' Annuity Act shall receive a credit in this fund as follows:
In lieu of other amounts provided herein for service prior to January 1,
1960, he shall be credited in his like account in this fund, as of January
1, 1960, with the accumulated employee contributions and city contributions
respectively standing to his credit in such other fund or funds for widow's
annuity and widow's prior service annuity on December 31, 1959.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-185.1) (from Ch. 108 1/2, par. 8-185.1)
Sec. 8-185.1.
Widow's annuity credit - Employees in superseded Public
Library Employes' Fund. A male employee who, on December 31, 1965 was a
contributor and participant in the fund in operation in the city on such date
created under and by virtue of the Public Library Employes' Pension Act shall
receive credit as follows:
For service prior to January 1, 1966, a city contribution for widow's
annuity purposes of an amount equal to the amount which would have
accumulated to his credit from city contributions for widow's annuity to
such date, including interest at the effective rate, had he been a
participant and contributor during all of his service prior to such date;
and if a present employee in service on the effective date, a city
contribution for widow's prior service annuity equal to the amount
otherwise provided for present employees as city contributions for widow's
annuity purposes.
(Source: Laws 1965, p. 2300.)
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(40 ILCS 5/8-185.2) (from Ch. 108 1/2, par. 8-185.2)
Sec. 8-185.2.
Widow's annuity credit-Employees in superseded House of
Correction Employee's Pension Fund.
A male employee who, on December 31, 1968 was a contributor and
participant in the fund in operation in the city on such date created under
and by virtue of the House of Correction Employees' Pension Act shall
receive credit as follows:
For service prior to January 1, 1969, a city contribution for widow's
annuity purposes of an amount equal to the amount which would have
accumulated to his credit from city contributions for widow's annuity to
such date, including interest at the effective rate, had he been a
participant and contributor during all of his service credited as service
in such House of Correction Employees' Pension Fund prior to such date. The
maximum salary to be considered for the purpose of computing the amount of
the aforesaid city contributions shall not exceed the highest amount of
salary considered for salary deduction purposes under the law governing
such House of Correction Employees' Pension Fund at the date such salary
deductions were made, and the actual rate of salary--not to exceed such
highest amount--shall also be applicable in determining salary for all
annuity purposes covering, involving, or requiring salary determination for
any particular year prior to the year 1968.
Each such employee shall also be credited on such date with the then
accumulated amounts, resulting from the additional 2% contributions made
from his salary since July 1, 1965 and applied to such House of Correction
Employees' Pension Fund, and such amounts shall be treated as salary
deductions made for widow's annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-186) (from Ch. 108 1/2, par. 8-186)
Sec. 8-186.
Widow's annuity-Interest credits-All employees.
Amounts credited for widow's annuity and for widow's prior service
annuity shall be improved by interest at the effective rate during the time
thereafter an employee is in service until he attains age 65.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-187) (from Ch. 108 1/2, par. 8-187)
Sec. 8-187.
Contributions by city for duty disability benefit.
In lieu of all amounts ordinarily contributed by an employee and the
city for age and service annuity, and widows' annuity, the city shall
contribute sums equal to such amounts for any period during which the
employee receives duty disability benefit under this Article, or a
temporary total disability benefit under the Workers' Compensation Act if
the disability results from a condition commonly termed heart attack or
stroke or any other condition falling within the broad field of coronary
involvement or heart disease, to be credited to the disabled employee for
annuity purposes.
(Source: P.A. 86-1488.)
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(40 ILCS 5/8-188) (from Ch. 108 1/2, par. 8-188)
Sec. 8-188.
Contributions by city for ordinary disability benefit.
The city shall contribute all amounts ordinarily contributed by it for
annuity purposes for any employee receiving ordinary disability benefit as
though he were in active discharge of his duties during such period of
disability.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-189) (from Ch. 108 1/2, par. 8-189)
Sec. 8-189.
Contributions by city for prior service annuities and pensions under former
acts, and for other purposes.
The city shall contribute annually, from the sum produced by the tax
levy herein authorized, all sums required for the purposes of this Article
other than those stated in this Section.
The balance of the sum produced by the tax levy shall be applied for the
following purposes:
(a) The city shall make contributions to provide prior service and
widow's prior service annuities, and other annuities, pensions and benefits
which have been or shall be allowed or granted under any of the following
Acts or in accord with the following described provisions:
1. The Municipal pension fund Act as defined in Section 8-123 of this
Article with further reference to Section 8-238; Public School Employees'
Pension Act of 1903, Sections 8-107 and 8-239; Court and Law Department
Employees' Annuity Act, Sections 8-105 and 8-240; Board of Election
Commissioners Employees' Annuity Act, Sections 8-106 and 8-240; Public
Library Employees' Pension Act, Sections 8-107.1 and 8-240.1; House of
Correction Employees' Pension Act, Sections 8-107.2 and 8-240.2.
2. To meet such part of any minimum annuity as shall be in excess of the
age and service annuity and prior service annuity; and such part of any
minimum annuity for widows as shall be in excess of the widow's annuities
and widow's prior service annuity; also for the purpose of providing the
city cost of automatic increases in annuity after retirement in accord with
Section 8-137, and for any other purpose for which moneys are not otherwise
provided in this Article.
3. To provide a sufficient balance in the investment and interest
reserve to permit a transfer from that reserve to other reserves of the
fund;
4. To credit to the city contribution reserve such amounts required from
the city but not contributed by it for age and service and prior service
annuities, and widows' annuities and widows' prior service annuities.
(b) All such contributions shall be credited to the prior service
annuity reserve. When the balance of this reserve equals its liabilities
(including in addition to all other liabilities, the present values of all
annuities, present or prospective, according to the applicable mortality
tables and rates of interest), the city shall cease to contribute the sum
stated in this section.
Whenever the balance of the investment and interest reserve is not
sufficient to permit a transfer from that reserve to any other reserve, the
city shall contribute sums sufficient to make possible such transfer;
provided, that if annexation of territory and the employment by the city of
any employee of any such territory at the time of annexation, after the
city has ceased to contribute as herein provided, results in additional
liabilities for prior service annuity and widow's prior service annuity for
any such employee, contributions by the city for such purposes shall be
resumed.
(Source: P.A. 76-1301.)
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(40 ILCS 5/8-190) (from Ch. 108 1/2, par. 8-190)
Sec. 8-190.
Contribution by city for administration costs.
The city shall contribute from revenue derived from taxes herein
authorized, the amount necessary to defray costs of administration of the
fund. Beginning July 1, 1987, the board shall estimate and approve
a budget for the entire cost of administration of the fund required each
year to be contributed by the city by
its regular January meeting for the current fiscal year.
(Source: P.A. 85-964.)
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(40 ILCS 5/8-191) (from Ch. 108 1/2, par. 8-191)
Sec. 8-191.
Estimates of sums required for certain annuities and benefits.
The board shall estimate the amounts required each year to pay for all
annuities and benefits and administrative expenses. The amounts shall be
paid into the fund annually by the city from the prescribed tax levy.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-192) (from Ch. 108 1/2, par. 8-192) Sec. 8-192. Board created. A board of 5 members shall constitute a Board of Trustees authorized to
carry out the provisions of this Article. The board shall be known as the
Retirement Board of the Municipal Employees', Officers', and Officials'
Annuity and Benefit Fund of the city, or for the sake of brevity may also
be known and referred to as the Retirement Board of the Municipal
Employees' Annuity and Benefit Fund of such city. The board shall consist
of the city comptroller, the city treasurer, and 3 members who shall be
employees, to be elected as follows: Within 30 days after the effective date, the mayor of the city shall
arrange for and hold an election. One employee shall be elected for a term ending on the first day in the
month of December of the first year next following the effective date; one
for a term ending December 1st of the following year; and one for a term
ending on December 1st of the second following year. The city comptroller, with the approval of the board, may appoint a
designee from among employees of the city who are versed in the affairs of
the comptroller's office to act in the absence of the comptroller on all
matters pertaining to administering the provisions of this Article. The city treasurer, with the approval of the board, may appoint a designee from among employees of the city who are versed in the affairs of the treasurer's office to act in the absence of the treasurer on all matters pertaining to administering the provisions of this Article. The members of a Retirement Board of a municipal employees', officers',
and officials' annuity and benefit fund holding office in a city at the
time this Article becomes effective, including elective and ex-officio
members, shall continue in office until the expiration of their terms and
until their respective successors are elected or appointed and have
qualified. An employee member who takes advantage of the early retirement incentives
provided under this amendatory Act of the 93rd General Assembly may continue as
a member until the end of his or her term.(Source: P.A. 96-1427, eff. 1-1-11.) |
(40 ILCS 5/8-193) (from Ch. 108 1/2, par. 8-193)
Sec. 8-193.
Board elections.
In each year, the board shall conduct a regular election, under rules
adopted by it, at least 30 days prior to the expiration of the term of
the employee member whose term next expires, for the election of a
successor for a term of 3 years. Each employee member and his successor
shall be an employee who holds a position by certification and
appointment as a result of a competitive civil service examination as
distinguished from temporary appointment for a period of not less than 5
years prior to the date of election or so holds a position which is not
exempt from the classified or the personnel ordinance by a city that adopted
a career service ordinance. At any such election including the
initial election and special elections to fill vacancies in such office,
all persons who are employee participants at the time such election is
held, shall have a right to vote. The ballot shall be of secret
character.
Any elective member of the board shall hold office until his
successor is elected and qualified.
Any person elected or appointed as a member of the board shall
qualify by taking an oath of office to be administered by the city
clerk. A copy thereof shall be kept in the office of the city clerk.
(Source: P.A. 81-782.)
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(40 ILCS 5/8-194) (from Ch. 108 1/2, par. 8-194)
Sec. 8-194.
Board vacancy.
A vacancy in the membership of the board shall be filled as follows:
If the vacancy is that of an ex-officio member, the mayor of the city
shall appoint a person to serve until a person qualified as hereinbefore
described shall assume the duties of member. If the vacancy is that of an
elective office the remaining elective members of the board shall appoint a
successor from among the employees who shall serve until an employee is
elected and qualified for the remainder of the unexpired term. The employee
shall be elected at a special election to be held concurrently with and in
the same manner as the next regular election for an employee member.
Any elective member who leaves the service of the employer or becomes a
member of any other annuity and benefit fund, or any pension fund, shall
automatically cease to be a member of the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-195) (from Ch. 108 1/2, par. 8-195)
Sec. 8-195.
Board officers.
The board shall elect annually at its regular December meeting from
among its members, by a majority vote of the members voting upon the
question, a president and a recording secretary who shall serve,
respectively, until a successor is elected. The secretary shall keep a
complete record of the proceedings of all board meetings and perform such
other duties as the board directs.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-196) (from Ch. 108 1/2, par. 8-196)
Sec. 8-196.
Board meetings.
The board shall hold regular meetings in the months of March, June,
September and December annually and special meetings as it deems necessary.
A majority of the members shall constitute a quorum for the transaction of
business at any meeting, but no annuity or benefit shall be granted or
payments made by the fund unless ordered by a vote of a majority of the
board members.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-197) (from Ch. 108 1/2, par. 8-197)
Sec. 8-197.
Board powers and duties.
The board shall have the powers and duties stated in Sections 8-198 to
8-209, inclusive, in addition to such other powers and duties provided in
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-198) (from Ch. 108 1/2, par. 8-198)
Sec. 8-198.
To supervise collections.
To see that all amounts specified in this Article to be applied to the
fund, from any source, are collected and applied.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-199) (from Ch. 108 1/2, par. 8-199)
Sec. 8-199.
To notify of deductions.
To notify the city comptroller and the Board of Education of the city
and the chief clerk of the board of the deductions
to be made from the salaries of employees.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-200) (from Ch. 108 1/2, par. 8-200)
Sec. 8-200.
To accept gifts.
To accept by gift, grant, bequest or otherwise any money or property of
any kind and use the same for the purposes of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-201) (from Ch. 108 1/2, par. 8-201)
Sec. 8-201.
To invest the reserves.
To invest the reserves of the fund in
accordance with Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and
1-115 of this Act. Investments made in accordance with Section 1-113 shall be
deemed to be prudent.
The retirement board may sell any security held by it at any time it deems it
desirable.
The board may enter into agreements and execute documents that it
determines to be necessary to complete any investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its own
name or in the name of a nominee created for the express purpose of
registration of securities by a savings and loan association or national or
State bank or trust company authorized to conduct a trust business in the State
of Illinois.
Investments shall be carried at cost or at book value in accordance with
accounting procedures approved by the board. No adjustments shall be made in
investments carrying values for ordinary current market price fluctuations, but
reserves may be provided to account for possible losses or unrealized gains, as
determined by the board.
The book value of investments held by the fund in commingled investment
accounts shall be the cost of its units of participation in those commingled
accounts as recorded on the books of the board.
The board of trustees of any fund established under this Article may
not transfer its investment authority, nor transfer the assets of the fund,
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the board resolution authorizing that transfer
is submitted for approval to the contributors and retirees of the fund at
elections held not less than 30 days after the adoption of the
resolution by the board and the resolution is approved by a
majority of the votes cast on the question in both the contributors election
and the retirees election. The election procedures and qualifications
governing the election of trustees shall govern the submission of resolutions
for approval under this paragraph, insofar as they may be made applicable.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/8-201.1) (from Ch. 108 1/2, par. 8-201.1)
Sec. 8-201.1.
The Board may lend securities owned by the Fund to a borrower
upon such terms and conditions as may be mutually agreed in writing. Such
agreement shall provide that during the period of such loan the Fund shall
retain the right to receive, or collect from the borrower, all dividends,
interest rights, or any distributions to which the Fund would have otherwise
been entitled. The borrower shall deposit with the Fund as collateral for
such loan cash, U.S. Government securities, or letters of credit equal
to the market value of the securities at the time the
loan is made and shall increase the amount of collateral if and when the
Fund shall request an additional amount because of subsequent increased
market value of the securities.
The period for which the securities may be loaned shall not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 86-1488.)
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(40 ILCS 5/8-202) (from Ch. 108 1/2, par. 8-202)
Sec. 8-202.
To have an audit.
To have an audit of the accounts of the fund made at least once each
year by certified public accountants.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-203) (from Ch. 108 1/2, par. 8-203)
Sec. 8-203.
To authorize payments.
To authorize or suspend the payment of any annuity or benefit in
accordance with this Article. The board shall have exclusive original
jurisdiction in all matters relating to the fund, including, in addition to
all other matters, all claims for annuities, pensions, benefits or refunds.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-204) (from Ch. 108 1/2, par. 8-204)
Sec. 8-204.
To determine service credits.
To require each employee to file a statement concerning service rendered
the employer, the Retirement Board, and the Board of Trustees of any
municipal pension fund as defined in this Article, prior to the effective
date. The board shall make a determination of the length of such service
and establish from any available information, the period of service
rendered prior to the effective date.
Such determination shall be conclusive unless the board reconsiders and
changes its determination.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-205) (from Ch. 108 1/2, par. 8-205)
Sec. 8-205.
To issue certificate of prior service.
To issue a certificate showing the entire period of service rendered by
a present employee prior to the effective date and the amounts to his
credit for prior service and widow's prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-206) (from Ch. 108 1/2, par. 8-206)
Sec. 8-206.
To submit an annual report.
To submit a report in June of each year to the city council of the city
as of the close of business on December 31st of the preceding year. The
report shall contain a detailed statement of the affairs of the fund, its
income and expenditures, and assets and liabilities, and the status of the
several reserves.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-207) (from Ch. 108 1/2, par. 8-207)
Sec. 8-207.
To subpoena witnesses.
To compel witnesses to attend and testify before it upon any matter
concerning the fund and allow witness fees not in excess of $6 for
attendance upon any one day. The president and other members of the board
may administer oaths to witnesses.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-208) (from Ch. 108 1/2, par. 8-208)
Sec. 8-208.
To appoint employees.
To appoint such actuarial, medical,
legal, clerical or other employees as are necessary and fix their
compensation. The board shall develop procedures for obtaining, by contract
or employment, any necessary professional assistance including investment
advisors and managers, auditors, actuaries, and medical and legal
professionals, for any vacancies which may arise after December 31, 1987.
(Source: P.A. 85-964.)
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(40 ILCS 5/8-209) (from Ch. 108 1/2, par. 8-209)
Sec. 8-209.
To make rules.
To make rules and regulations necessary for the administration of the
fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-210) (from Ch. 108 1/2, par. 8-210)
Sec. 8-210.
Moneys to be held on deposit.
To make the payments authorized by this Article, the board may keep and
hold uninvested a sum not in excess of the amounts required to make such
payments estimated to be due in the following 90 days. Such sum or any part
thereof shall be kept on deposit only in any bank or savings and loan
association authorized to do business. The
amount which may be deposited in any such bank or savings and loan association
shall not exceed 25% of its
paid up capital and surplus.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public agencies",
approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
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(40 ILCS 5/8-211) (from Ch. 108 1/2, par. 8-211)
Sec. 8-211.
Accounting.
An adequate system of accounts and records shall
be established to give effect to the requirements of this Article, and
shall be maintained in accordance with generally accepted accounting
principles. The reserves designated in Sections 8-212 to 8-221, inclusive,
shall be maintained.
(Source: P.A. 85-964.)
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(40 ILCS 5/8-212) (from Ch. 108 1/2, par. 8-212)
Sec. 8-212.
Expense reserve.
Amounts contributed by the city to defray the cost of administration of
the fund shall be credited to this reserve. Expenses of administration
shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-213) (from Ch. 108 1/2, par. 8-213)
Sec. 8-213.
City contribution reserve.
Amounts contributed by the
city for age and service annuity, widow's annuity and supplemental
annuity (except those in lieu of deductions from the salary contributed
of an employee who receives duty disability benefit), the assets of the
public school employees' pension fund superseded by this fund on July 1,
1923 which were transferred to this reserve, and all amounts transferred
to this reserve from the investment and interest reserve, shall be
credited to this reserve.
At least once each year, before any transfer shall be made from this
reserve to any other reserve, the sums credited in this reserve shall be
improved by interest.
When the annuity for an employee or his widow is fixed, and when
supplemental annuity for a widow first becomes payable, the amount in
this reserve for such annuity shall be transferred to the annuity
payment reserve.
If the credit in this reserve of any employee who withdraws from
service before he attains age 65 is in excess of that required for his
age and service annuity, or in excess of that required for widow's
annuity (either or both), such amounts shall be retained in this reserve
and improved by interest at the effective rate until the employee
becomes age 65 or dies, whichever occurs first. Any such amounts shall
then be used to reduce city contributions.
With respect to employees whose wages are funded as participants
under CETA, the board may elect to establish a separate manpower program
reserve or account for funds made available by the federal government
towards the employer's contribution. The manpower program reserve will
be administered as is the City contribution reserve, except that where
at variance it will be administered in accordance with the rules and
regulations established by the Secretary of the United States Department
of Labor or his designee.
At the time that employees previously funded as participants under
CETA lose their participant status and obtain unsubsidized employment
with the employer, unsubsidized employment with another employer
provided that benefits are portable, or obtain vesting status, as
defined by the Secretary of Labor or his designee, a transfer of funds
equivalent to the amount of contributions made for such employees will
be made out of the manpower program reserve. For prior CETA participants
who continue as employees in public service which is covered by a
participating retirement system, the sums will be credited to the
regular City contribution reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-214) (from Ch. 108 1/2, par. 8-214)
Sec. 8-214.
Employee's contribution reserve.
Amounts deducted from employee's salaries for age and service annuity
and widow's annuity, or otherwise contributed by employees, amounts
contributed by the city for such annuities for an employee receiving
duty disability benefit, the assets of the public school employees'
pension fund superseded by this fund on July 1, 1923, which were
transferred to this reserve, and amounts transferred to this reserve
from the investment and interest reserve, shall be credited to this
reserve.
An individual account shall be kept in this reserve for each employee
to which such salary deductions, interest, and contributions shall be
credited. At least once each year, and before any transfer shall be made
from this reserve to any other reserve the sums credited in this reserve
shall be improved by interest.
When the annuity for any employee or his widow is fixed or granted,
the amount in this reserve for such annuities shall be transferred to
the annuity payment reserve.
There shall be charged to this reserve amounts refunded as provided
in this Article, except refunds under Section 8-215.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-215) (from Ch. 108 1/2, par. 8-215)
Sec. 8-215.
Annuity payment reserve.
Amounts transferred from the city contribution reserve and the
employee's contribution reserve for annuities which have been fixed,
amounts deducted from an employee's salary after the age and service
annuity has been fixed, and amounts transferred to this reserve from the
investment and interest reserve, shall be credited to this reserve.
Age and service annuities and widow's annuities shall be charged to
this reserve. Amounts refunded in accordance with Section 8-170 and
Section 8-154 of this Article shall be charged to this reserve.
When an employee whose annuity was fixed or granted re-enters service
before age 65, an amount determined under the provisions governing
re-entry into service shall be charged to this reserve and transferred
to the city contribution reserve and the employee's contribution
reserve, respectively, for age and service annuity. Such amount shall be
divided in said reserves in the same ratio as that in which the previous
transfer from such reserve to this reserve was made.
If the wife of the employee, when he re-enters service, is the same
as when the widow's annuity was fixed, an amount to be determined under
the provisions governing re-entry into service shall be transferred from
this reserve and credited for widow's annuity in the city contribution
reserve and the employee's contribution reserve, respectively. Such
credit shall be in the same ratio as that in which the previous transfer
was made.
If at the end of any year the balance of the annuity payment reserve
exceeds the liabilities chargeable thereto by more than 15% of the
liabilities, the excess shall be transferred to the investment and
interest reserve, ordinary disability reserve, expense reserve, prior
service annuity reserve, and city contribution reserve, in the order
named, to remove any deficiency existing in any such reserves, provided
that at the end of each year such amount as may be necessary for
employees of the board for service rendered prior to July 1, 1935 shall
be transferred to the city contribution reserve before any transfer to
any of the other reserves shall be made.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-216) (from Ch. 108 1/2, par. 8-216)
Sec. 8-216.
Prior service annuity reserve.
Amounts contributed by the city for prior service annuity, widow's prior
service annuity and minimum annuities, shall be credited to this reserve.
All assets of any Municipal Pension Fund as herein defined in the city on
the effective date, which were received by the board, and all assets of any
municipal pension fund created under the Public School Employees' Pension
Act of 1903, which were received by the board, shall also be credited to
this reserve.
Prior service and widow's prior service annuities payable under this
Article and all annuities, benefits and pensions, granted or which shall be
granted to any employee by any such Municipal Pension Fund or School
Employees' Pension Fund, and that part of any minimum annuity which is in
excess of the age and service and prior service annuity shall be charged to
this reserve.
If the balance of the investment and interest reserve is not sufficient
to permit a transfer from that reserve to the annuity payment reserve of
amounts necessary according to applicable mortality table and interest rate
to make the balance of the annuity payment reserve equal to the liabilities
chargeable thereto (including the present values of all annuities entered
upon or fixed and of all annuities not entered upon), amounts necessary for
such purpose shall be transferred from this reserve to the investment and
interest reserve.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-217) (from Ch. 108 1/2, par. 8-217)
Sec. 8-217.
Child's annuity reserve.
Amounts contributed by the city for child's annuity shall be credited to
this reserve and such annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-218) (from Ch. 108 1/2, par. 8-218)
Sec. 8-218.
Duty disability reserve.
Amounts contributed by the city for duty disability benefits and child's
disability benefits, and amounts contributed by the city for compensation
annuity shall be credited to this reserve. Such benefits and annuities
shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-219) (from Ch. 108 1/2, par. 8-219)
Sec. 8-219.
Ordinary disability reserve.
Amounts contributed by the city for ordinary disability benefits shall
be credited to this reserve and such benefits shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-220) (from Ch. 108 1/2, par. 8-220)
Sec. 8-220.
Gift reserve.
Money or property received by the board for any purpose, under other
laws, or as gifts, grants, or bequests, or in any manner other than
provided in any section of this Article shall be credited to this reserve
and used for such purposes of the fund as are approved by the board. The
balance in this reserve shall be improved by interest at the effective
rate.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-221) (from Ch. 108 1/2, par. 8-221)
Sec. 8-221.
Investment and interest reserve.
(1) Gains from investments and interest earnings shall be credited to
this reserve. Losses from investments shall be charged to it. From this
reserve shall be transferred amounts due in interest upon balances existing
in the city contribution, the salary deduction, the prior service annuity,
and the gift reserves.
(2) Amounts necessary according to the American Experience Table of
Mortality and interest at the rate of 4% per annum or the Combined Annuity
Mortality Table and interest at the rate of 3% per annum, as to those
assets or liabilities to which either table may be applicable in accordance
with the provisions of this Article, to establish a balance in the annuity
payment reserve equal to the liabilities chargeable thereto (including the
present values of all annuities entered upon, or fixed and not entered
upon, to be charged to such reserve) shall be transferred to the annuity
payment reserve at least once each year.
(3) That portion of the annual investment earnings on the fund's
invested assets exclusive of gains or losses on sales or exchanges of
assets during the year on the fund's invested assets, as specified in
Section 8-137.1 of this Article, shall be transferred from the investment
and interest reserve to the Supplementary Payment Reserve set forth in
Section 8-137.1.
Any balance in the investment and interest reserve shall be either
charged or credited to the Prior Service Annuity Reserve depending on
whether a deficiency or surplus exists in said investment and interest
reserve.
(Source: P.A. 76-1302.)
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(40 ILCS 5/8-222) (from Ch. 108 1/2, par. 8-222)
Sec. 8-222.
Deficiencies in reserves.
If the balance in the expense
reserve, the prior service annuity reserve, the child's annuity reserve,
the duty disability reserve or the ordinary disability reserve, either
of these, is not sufficient to provide for expenses, annuities, or
benefits chargeable thereto, the deficiency shall be removed by a
transfer from the following reserves in the order stated: City
contribution reserve; prior service annuity reserve; employee's contribution
reserve; annuity payment reserve. When any excess exists in any of the
said reserves to which a transfer was made, the excess shall be
transferred from any of such reserves to the reserves from which a
transfer had been made until the full sum previously transferred is
restored. Interest of 4% per annum upon such transfers and retransfers
shall be credited to the investment and interest reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-223) (from Ch. 108 1/2, par. 8-223)
Sec. 8-223.
Treasurer of fund.
The city treasurer shall be ex-officio the treasurer and custodian of
the fund and shall furnish to the board a bond of such amount as the board
designates, which shall indemnify the board against any loss which may
result from any action or failure to act by him or any of his agents. Fees
and charges incidental to the procuring of such bond shall be paid by the
board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-224) (from Ch. 108 1/2, par. 8-224)
Sec. 8-224.
Attorney.
The chief legal officer of the city shall be the legal advisor of and
attorney for the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-225) (from Ch. 108 1/2, par. 8-225)
Sec. 8-225.
Computation of term of service, annual salary, salary deductions,
and actual compensation.
For the purpose of this Article, term of service, annual salary,
salary deductions and actual
compensation shall be computed as provided
in Sections 8-226 to 8-235, inclusive.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
Sec. 8-226. Computation of service.
In computing the term of service of an employee prior to the effective
date, the entire period beginning on the date he was first appointed and
ending on the day before the effective date, except any intervening period
during which he was separated by withdrawal from service, shall be counted
for all purposes of this Article, except that for any employee who was not
in service on the day before the effective date, service rendered prior to
such date shall not be considered for the purposes of Section 8-138.
For a person employed by an employer for whom this Article was in effect
prior to January 1, 1950, from whose salary deductions are first made under
this Article after December 31, 1949, any period of service rendered prior
to the effective date, unless he was in service on the day before the
effective date, shall not be counted as service.
The time a person was an employee of any territory annexed to the city
prior to the effective date shall be counted as a period of service.
In computing the term of service of any employee subsequent to the day
before the effective date, the following periods shall be counted as
periods of service for age and service, widow's and child's annuity
purposes:
(a) The time during which he performed the duties of | ||
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(b) Vacations, leaves of absence with whole or part | ||
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(c) Leaves of absence without pay that begin before | ||
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(d) Any period of disability for which he received | ||
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(e) Any period for which contributions and service | ||
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For a person employed by an employer in which the 1921 Act was in effect
prior to January 1, 1950, from whose salary deductions are first made under
the 1921 Act or this Article after December 31, 1949, any period of service
rendered subsequent to the effective date and prior to the date he became
an employee and contributor, shall not be counted as a period of service
under this Article,
except such period for which he made payment as
provided in Section 8-230 of this Article, in which case such period shall
be counted as a period of service for all annuity purposes hereunder.
In computing the term of service of an employee subsequent to the day
before the effective date for ordinary disability benefit purposes, all
periods described in the preceding paragraph, except any such period for
which he receives ordinary disability benefit, shall be counted as periods
of service; provided, that for any person employed by an employer in which
this Article was in effect prior to January 1, 1950, from whose salary
deductions are first made under this Article after December 31, 1949, any
period of service rendered subsequent to the effective date and prior to
the date he became an employee and contributor, shall not be counted as a
period of service for ordinary disability benefit purposes, unless the person
made payment for the period as provided in Section 8-230 of this Article, in
which case the period shall be counted as a period of service for ordinary
disability purposes for periods of disability on or after the effective date of
this amendatory Act of 1997.
Overtime or extra service shall not be included in computing any term of
service. Not more than 1 year of service shall be allowed for service
rendered during any calendar year. For the purposes of this Section, the phrase "any pension plan established by the local labor organization" means any pension plan in which a participant may receive credit as a result of his or her membership in the local labor organization, including, but not limited to, the local labor organization itself and its affiliates at the local, intrastate, State, multi-state, national, or international level. The definition of this phrase is a declaration of existing law and shall not be construed as a new enactment.
(Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/8-226.1) (from Ch. 108 1/2, par. 8-226.1)
Sec. 8-226.1.
(a) Any active member of the General Assembly Retirement System
may apply for transfer of his credits and creditable service accumulated
under this Fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding any additional
or optional credits, which credits shall be refunded to the applicant; and
(2) municipality credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly who has service credits and
creditable service under the Fund may establish additional service credits
and creditable service for periods during which he was an elected official
and could have elected to participate but did not so elect. Service credits
and creditable service may be established by payment to the fund of an amount
equal to the contributions he would have made if he had elected to participate,
plus interest to the date of payment.
(c) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(d) An active member of the General Assembly having no service credits
or creditable service in the Fund may establish service credit and creditable
service for periods during which he was an employee and could have elected
to participate in the Fund but did not so elect, by paying to the Fund prior
to January 1, 1990 an amount equal to the
contributions he would have made
if he had elected to participate, plus interest thereon at 6% per annum
compounded annually from such period to the date of payment.
Any active member of the General Assembly may apply for transfer of his
credits and creditable service established under this subsection (d) to
any annuity and benefit fund established under Article 12 of this
Act. Such credits and creditable service shall be transferred forthwith,
together with a payment from this Fund to the designated Article 12 fund
consisting of the amounts accumulated to the credit of the applicant under
this subsection (d), including corresponding employer contributions and interest, on the
books of the Fund on the date of transfer. Participation in this Fund as
to any credits transferred under this subsection shall terminate on the
date of transfer.
(Source: P.A. 86-272.)
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(40 ILCS 5/8-226.2) (from Ch. 108 1/2, par. 8-226.2)
Sec. 8-226.2.
Validation of service credits.
An active member of
the General Assembly having no service credits or creditable service in
the Fund, may establish service credit and creditable service for
periods during which he was an employee of an employer in an elective
office, or in the service of an employer by temporary appointment or in
a position exempt from the classified service as set forth in the Civil
Service Act, or in a provisional or exempt position as specified in the
personnel ordinance, and could have elected to participate in the Fund
but did not so elect. Service credits and creditable service may be established by
payment to the Fund of an amount equal to the contributions he would
have made if he had elected to participate plus interest to the date of
payment, together with a like amount as the applicable municipality
credits including interest, but the total period of such creditable
service that may be validated shall not exceed 8 years.
(Source: P.A. 82-785.)
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(40 ILCS 5/8-226.3) (from Ch. 108 1/2, par. 8-226.3)
Sec. 8-226.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer
and employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/8-226.4) (from Ch. 108 1/2, par. 8-226.4)
Sec. 8-226.4.
Transfer of creditable service to Article 9 or 13 fund.
(a) Any county officer elected by vote of the people (and until March
1, 1993 any other person in accordance with Section 9-121.11) who is a
participant in a pension fund established under Article 9 of this Code,
any chief of the County Police Department or undersheriff of the County
Sheriff's Department who has elected under subparagraph (j) of Section 9-128.1
to be included within the provisions of Section 9-128.1 of Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in
a pension fund established under Article 13 of this Code, may apply for
transfer of his credits and creditable service accumulated under this Fund
to such Article 9 or 13 fund. Such creditable service shall be
transferred forthwith. Payment by this Fund to the Article 9 or 13 fund
shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected county officer, chief of the County Police
Department, undersheriff of the County Sheriff's Department, or sanitary
district commissioner
who has credits and creditable service under the Fund may establish
additional credits and creditable service for periods during which he
could have elected to participate but did not so elect. Credits and creditable
service may be established by payment to the Fund of an amount equal to the
contributions he would have made if he had elected to participate, plus
interest to the date of payment.
(c) Any such elected county officer, chief of the County Police
Department, undersheriff of the County Sheriff's Department, or sanitary
district commissioner
may reinstate credits and creditable service terminated upon receipt of a
separation benefit, by payment to the Fund of the amount of the separation
benefit plus interest thereon to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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(40 ILCS 5/8-226.5) (from Ch. 108 1/2, par. 8-226.5)
Sec. 8-226.5.
Transfer of creditable service to Article 5 fund.
Pursuant to Section 5-234 of this Code, a police officer who is a
participant in a pension fund established under
Article 5 of this Code may apply for transfer of his credits and creditable
service accumulated under this Fund to such Article 5 fund. Such
creditable service shall be transferred forthwith. Payment by this Fund to
the Article 5 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding
any additional or optional credits, which credits shall be refunded to the
applicant; and
(2) municipality credits computed and credited under this Article,
including interest, on the books of the Fund on the date the member
terminated service under the Fund.
Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(Source: P.A. 86-272.)
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(40 ILCS 5/8-226.6) (from Ch. 108 1/2, par. 8-226.6)
Sec. 8-226.6.
Transfer to Article 18 system.
Any active member of the
Judges Retirement System who is eligible to transfer service credit to that
System from this Fund under subsection (g) of Section 18-112 may apply for
transfer of that service credit to the Judges Retirement System. The
credits and creditable service shall be transferred upon application, and
shall include payment by this Fund to the Judges Retirement System of:
(1) the amounts accumulated to the credit of the | ||
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(2) the corresponding employer credits computed and | ||
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Participation in this Fund as to the credits transferred under this
Section shall terminate on the date of transfer.
(Source: P.A. 87-1265.)
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(40 ILCS 5/8-226.7) Sec. 8-226.7. Transfer to Article 7. Until 6 months after the effective date of this amendatory Act of the 95th General Assembly, any member who is a sheriff's law enforcement employee under Article 7 of this Code who is eligible to transfer service credit to that Fund from this Fund under paragraph (9) of subsection (a) of Section 7-139 may apply for transfer of that service credit to the Illinois Municipal Retirement Fund. The credits and creditable service shall be transferred upon application, and shall include payment by this Fund to the Illinois Municipal Retirement Fund of: (1) the amounts accumulated to the credit of the | ||
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(2) the corresponding employer credits computed and | ||
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Participation in this Fund as to the credits transferred under this Section shall terminate on the date of transfer.
(Source: P.A. 95-504, eff. 8-28-07.) |
(40 ILCS 5/8-227) (from Ch. 108 1/2, par. 8-227)
Sec. 8-227.
Service as police officer, firefighter or teacher.
(a) Service rendered by an employee as a police officer and member of
the regularly constituted police department of the city, or as a firefighter
and regular member of the paid fire department of the city, or as a teacher in
the public school system in the city shall be counted, for the purposes of this
Article, as service rendered as an employee of the city. Salary received for
any such service shall be treated, for the purposes of this Article, as salary
received for the performance of duty as an employee.
(b) Subsection (a) applies
to service rendered after the effective date only if the employee pays to the
Fund, prior to separation from service, an amount equal to what
would have accumulated in his or her account from salary deductions as
employee contributions, including interest at the effective rate, if such
contributions had been made for age and service and spouse's annuity during
all of such service; provided, that no service shall be counted or payments
received for any period of service for which the employee retains or has not
forfeited his or her rights to credit for the same period of service in
another annuity and benefit fund, or pension fund, in operation in the city
for the benefit of such police officers, firefighters, or teachers. The
amount transferred to the Fund under item (1) of Section 5-233.1, if any,
shall be credited against the contributions required under this subsection.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-228) (from Ch. 108 1/2, par. 8-228)
Sec. 8-228.
Transfers within service.
Whenever an employee is transferred
or assigned from one position in
the service of the employer to another position in such service, he
shall not be involuntarily removed from membership in this fund, but may
continue to participate as a contributor until because of such other
position he becomes a participant in another public pension fund for the
benefit of employees of the employer.
Any employee who withdraws from a position in the service which he
holds because of employment in the classified civil service or career service other than
by temporary or provisional appointment, and who then accepts a position in the service
which would normally require his election for participation and
membership, shall be continued as a participant and member in the fund
while employed by virtue of a temporary or provisional appointment, unless
he elects to sever his membership
by making application for refund within a period of 90 days from the
date of such employment in such other position, and is otherwise
eligible for refund.
(Source: P.A. 81-782.)
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(40 ILCS 5/8-228.5) Sec. 8-228.5. Action by Fund against third party; subrogation. In those cases where the injury or death for which a disability or death benefit is payable under this Article was caused under circumstances creating a legal liability on the part of some person or entity (hereinafter "third party") to pay damages to the employee, legal proceedings may be taken against such third party to recover damages notwithstanding the Fund's payment of or liability to pay disability or death benefits under this Article. In such case, however, if the action against such third party is brought by the injured employee or his or her personal representative and judgment is obtained and paid, or settlement is made with such third party, either with or without suit, from the amount received by such employee or personal representative, then there shall be paid to the Fund the amount of money representing the death or disability benefits paid or to be paid to the disabled employee pursuant to the provisions of this Article. In all circumstances where the action against a third party is brought by the disabled employee or his or her personal representative, the Fund shall have a claim or lien upon any recovery, by judgment or settlement, out of which the disabled employee or his or her personal representative might be compensated from such third party. The Fund may satisfy or enforce any such claim or lien only from that portion of a recovery that has been, or can be, allocated or attributed to past and future lost salary, which recovery is by judgment or settlement. The Fund's claim or lien shall not be satisfied or enforced from that portion of a recovery that has been, or can be, allocated or attributed to medical care and treatment, pain and suffering, loss of consortium, and attorney's fees and costs. Where action is brought by the disabled employee or his or her personal representative, he or she shall forthwith notify the Fund, by personal service or registered mail, of such fact and of the name of the court where such suit is brought, filing proof of such notice in such action. The Fund may, at any time thereafter, intervene in such action upon its own motion. Therefore, no release or settlement of claim for damages by reason of injury to the disabled employee, and no satisfaction of judgment in such proceedings, shall be valid without the written consent of the Board of Trustees authorized by this Code to administer the Fund created under this Article, except that such consent shall be provided expeditiously following a settlement or judgment. In the event the disabled employee or his or her personal representative has not instituted an action against a third party at a time when only 3 months remain before such action would thereafter be barred by law, the Fund may, in its own name or in the name of the personal representative, commence a proceeding against such third party seeking the recovery of all damages on account of injuries caused to the employee. From any amount so recovered, the Fund shall pay to the personal representative of such disabled employee all sums collected from such third party by judgment or otherwise in excess of the amount of disability or death benefits paid or to be paid under this Article to the disabled employee or his or her personal representative, and such costs, attorney's fees, and reasonable expenses as may be incurred by the Fund in making the collection or in enforcing such liability. The Fund's recovery shall be satisfied only from that portion of a recovery that has been, or can be, allocated or attributed to past and future lost salary, which recovery is by judgment or settlement. The Fund's recovery shall not be satisfied from that portion of the recovery that has been, or can be, allocated or attributed to medical care and treatment, pain and suffering, loss of consortium, and attorney's fees and costs. Additionally, with respect to any right of subrogation asserted by the Fund under this Section, the Fund, in the exercise of discretion, may determine what amount from past or future salary shall be appropriate under the circumstances to collect from the recovery obtained on behalf of the disabled employee. This Section applies only to persons who first become members or participants under this Article on or after the effective date of this amendatory Act of the 100th General Assembly.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/8-229) (from Ch. 108 1/2, par. 8-229)
Sec. 8-229.
Salary of employees on leave of absence.
The salary of an
employee on leave of absence from a position held by certification and
appointment as a result of competitive civil service or career service
examination for not less than 10 years immediately preceding such leave,
who holds another office or position in the service as an employee,
shall be considered to be the larger of the salary attached to either of
such positions and employee contributions for the
purposes of the fund shall be made on such basis.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-230) (from Ch. 108 1/2, par. 8-230)
Sec. 8-230.
Right of employee to contribute for all periods of
service. An employee may contribute to the fund for all periods of
service (including periods served in the armed forces of the United
States if he left the service of the employer to enter the armed forces
and returned to the service of the employer within 180 days after his
discharge from the armed service, and if the employer has not made such
payment on his behalf) except for those periods for which he received
credit in another annuity and benefit fund or pension fund in operation
in the city for the benefit of employees of the employer, rendered by him
to the employer after the effective date by virtue of appointment or
election to a position not covered by the provisions of this Article,
such amounts as he would have contributed for annuity purposes had
deductions from his salary been made for the purposes of the fund, at
the rates in effect and in accordance with the provisions relating to
future entrants and present employees during the period such service was
rendered. Upon making such payments, he shall be credited with
concurrent city contributions at the rates in effect during the time
such service was rendered. Such payments and concurrent city
contributions shall be made with interest at the effective rate and
shall, together with all other amounts contributed by or for such
employee, be considered in computing the annuities for him and his
widow, and any such service for which payment is made shall be counted
as service under this Article.
Until the effective date of this amendatory Act of 1991,
in order that the foregoing service may be counted for the purposes
of Section 8-138, payment must be made in full while the employee is in
service; if payment in full is not made, any payments made on account
shall be refunded to him when he withdraws from service, or paid to his
widow if he is dead. If there is no widow, a refund shall be paid as
provided in this Article, with interest at the effective rate. An
employee, however, may elect to have such partial payments, together
with the concurrent city contributions and interest, credited and
applied for age and service and widow's annuity, for himself and his
wife, on the assumption that the payments made shall apply beginning
with his earliest service, or his widow, if the employee dies in
service, may elect to have such amounts credited for widow's annuity
purposes, to the extent that they do not increase her annuity above that
which she could have received if her proportionate part of the payments
and related city contributions were included and considered, and an
annuity were fixed for her on the assumption her deceased husband had
continued in service at the rate of his final salary until he became age 65.
Beginning on the effective date of this amendatory Act of 1991, an
employee who is still in service may elect to establish credit under this
Section for only a
fraction of the service that he or she is eligible to establish under this
Section. In such cases, the credit established shall be deemed to relate
to the earliest service for which credit may be established, and shall be
counted for the purposes of Section 8-138. However, in no event shall such
credit be granted until the corresponding employee contributions have been
paid.
Beginning on the effective date of this amendatory Act of 1997,
any employee who is in service, or within 90 days after withdrawing from
service, or who is an active contributor to a participating system as defined
in the Retirement Systems Reciprocal Act, may make payments and establish
credit under this Section.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/8-230.1) (from Ch. 108 1/2, par. 8-230.1)
Sec. 8-230.1. Right of employees to contribute for certain other service.
Any employee in the service, after having made contributions covering a period
of 10 or more years to the annuity and benefit fund herein provided for, may
elect to pay for and receive credit for all annuity purposes for service
theretofore rendered by the employee to the Chicago Transit
Authority created by the Metropolitan Transit Authority Act or its predecessor public utilities;
provided that the last 5 years of service prior to retirement on annuity
shall have been as an employee of the City and a contributor to this Fund.
Such service credit may be paid for and granted on the same basis and
conditions as are applicable in the case of employees who make payment for
past service under the provisions of Section 8-230, but on the assumption that the employee's salary
throughout all of his or her service with the Authority or its
predecessor public utilities was at the rate of the employee's
salary at the later of the date of his or her entrance or reentrance into the service as a municipal
employee, as applicable. In no event, however, shall such service be credited if the employee
has not forfeited and relinquished pension credit for service
covering such period under any pension or retirement plan applicable
to the Authority or its predecessor public utilities and
instituted and maintained by the Authority or its predecessor
public utilities for the benefit of its employees.
(Source: P.A. 103-455, eff. 1-1-24.)
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(40 ILCS 5/8-230.2) (from Ch. 108 1/2, par. 8-230.2)
Sec. 8-230.2.
Right of employees to contribute for service rendered to
Land Clearance Commission. An employee may contribute to the fund for, and
receive credit for, all periods of service rendered to the Land Clearance
Commission created by the employing city and thereafter abolished and superseded
by the city's Department of Urban Renewal, except those periods for which
he received credit in another public annuity and benefit fund or pension fund.
Such service credit shall be paid
for and granted on the same basis and conditions as applicable in the
case of employees who make payment for past service under Section 8-230
provided that such employees also pay the current required employer contribution,
but on the assumption that
such employee's salary throughout all of his service with such Commission
was at the rate of his salary at the date of his entrance into the
service as a municipal employee after the abolition of the Commission.
(Source: P.A. 80-1495.)
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(40 ILCS 5/8-230.3) (from Ch. 108 1/2, par. 8-230.3)
Sec. 8-230.3.
Establishment and restoration of service credit.
(a) Beginning on the effective date of this amendatory Act of 1991, an
employee who is still in service and is eligible to establish optional
service credit under this Article for any period during which he was not an
active participant in the Fund need not establish credit for the entire
period for which he is eligible, but may instead elect to establish credit
for only a fraction of that period. In such cases, the credit established
shall be deemed to relate to the earliest period for which that type of
credit may be established. However, in no event shall any such credit be
granted until the employee contributions required for that credit, if any,
have been paid.
(b) Notwithstanding Section 8-167 or any other provision of this
Article, beginning on the effective date of this amendatory Act of 1991, an
employee who has returned to service and is required (or authorized) to
restore service credit that was surrendered upon payment of a refund need
not restore such credit in full, but may instead elect to restore only a
fraction of the surrendered service credit, or none of it. If only some of
the surrendered credit is to be restored, the credit shall be restored in
the order in which it was earned, and the board shall determine the amount
that must be repaid by the employee to the Fund in order to restore the
credit, based on the corresponding fraction of the refund, plus interest as
required by the other provisions of this Article. In no event shall any
such credit be restored until the payment required for that credit has been
paid, and in no event shall any benefit be granted based on surrendered
credit that has not been restored.
(Source: P.A. 86-1488.)
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(40 ILCS 5/8-230.4)
Sec. 8-230.4.
Certain Department of Public Health employees.
(a) This Section applies only to persons who were employed at any time
during the period July 13 through December 31, 1993, by the City of Chicago
Department of Public Health in connection with clinical health laboratory
functions that are transferred to the State pursuant to an intergovernmental
agreement, and who become employed by the Illinois Department of Public Health
before July 1, 1994 to perform services relating to those transferred
functions.
(b) A person to whom this Section applies who has not begun receiving a
retirement benefit under this Article may elect to participate in the Fund
governed by this Article during the dual eligibility period defined in Section
14-108.2a by giving written notice to this Fund and the Article 14 retirement
system in accordance with subsection (b) of Section 14-108.2a.
(c) The Board of this Fund and the board of the retirement system governed
by Article 14 shall together determine the manner of payment of employee
contributions to the Fund for periods of participation in the Fund under this
Section. These employee contributions may be paid or picked up by the Illinois
Department of Public Health on behalf of the employee as otherwise provided by
law. No employer contribution is required for those periods.
(d) Any period of nonparticipation in the Fund immediately preceding a
period of participation under this Section shall be disregarded for purposes of
establishing eligibility for and the amount and duration of any benefit under
this Article.
(Source: P.A. 88-535.)
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(40 ILCS 5/8-230.5)
Sec. 8-230.5.
Former Chicago Police Department Crime Laboratory Division
employees.
(a) This Section applies only to persons who were employed at any time
between June 30, 1995 and the takeover date (as defined in Section 14-108.2b)
by the Chicago Police Department Crime Laboratory Division in connection with
functions of that Division that are transferred to the State pursuant to an
intergovernmental agreement, and who become employed by the Illinois Department
of State Police on or after July 1, 1995 but no later than 6 months after the
takeover date to perform services relating to those transferred functions.
(b) A person to whom this Section applies who has not begun receiving a
retirement benefit under this Article may elect to participate in the Fund
governed by this Article during the dual eligibility period defined in Section
14-108.2b by giving written notice to this Fund and the Article 14 retirement
system in accordance with subsection (b) of Section 14-108.2b.
(c) The Board of this Fund and the board of the retirement system governed
by Article 14 shall together determine the manner of payment of employee
contributions to the Fund for periods of participation in the Fund under this
Section. These employee contributions may be paid or picked up by the Illinois
Department of State Police on behalf of the employee as otherwise provided by
law. No employer contribution is required for those periods.
(d) Any period of nonparticipation in the Fund immediately preceding a
period of participation under this Section shall be disregarded for purposes of
establishing eligibility for and the amount and duration of any benefit under
this Article.
(Source: P.A. 89-246, eff. 8-4-95.)
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(40 ILCS 5/8-230.6)
Sec. 8-230.6.
Payments and rollovers.
(a) The Board may adopt rules prescribing the manner of repaying refunds
and purchasing any other credits permitted under this Article. The rules may
prescribe the manner of calculating interest when payments or repayments
are made in installments.
(b) Rollover contributions from other retirement plans qualified under the
Internal Revenue Code of 1986 may be used to purchase any optional credit or
repay any refund permitted under this Article.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/8-230.7)
Sec. 8-230.7.
Service rendered to Public Building Commission.
(a) An employee or former employee of the Public Building Commission of
the city who has established credit under the Fund with regard to service to an
employer other than the Public Building Commission of the city may contribute
to the Fund and receive
credit for all periods of full-time employment with the Public
Building Commission created by the employing city occurring prior to 60 days
after the effective date of this amendatory Act, except for those periods for
which the employee retains a right to credit in another public pension fund or
retirement system established under this Code. Such service credit shall
be paid for and granted on the same basis and under the same conditions as are
applicable in the case of employees who make payment for past service under
Section 8-230, provided that the person must also pay the corresponding
employer contributions, and further provided that the contributions and
service credit are permitted under Section 415 of the Internal Revenue Code
of 1986. The contributions shall be based on the salary actually received
by the person from the Commission for that employment.
(b) A person establishing service credit under subsection (a) or electing
to participate in the Fund under subsection (d) may, at the same time,
reinstate service credit that was terminated through receipt of a refund by
repaying to the Fund the amount of the refund plus interest at the effective
rate from the date of the refund to the date of repayment.
(c) An eligible person may establish service credit under subsection (a)
and reinstate service credit under subsection (b) without returning to active
service as an employee under this Article, but the required contributions and
repayment must be received by the Fund before the person begins to receive a
retirement annuity under this Article.
(d) Within 60 days after beginning full-time employment with the Public
Building Commission of the city (or within 60 days after the effective date
of this amendatory Act of the 92nd General Assembly, whichever is later), a
person having service credits in this Fund or reinstating service credits
under subsection (b) may elect to participate in this Fund with respect to
that Public Building Commission employment. An employee who participates in
this Fund with respect to Public Building Commission employment shall not,
with respect to the same period of employment, participate in any other pension
plan for employees of the Commission for which contributions are made by the
Commission, except that this provision shall not prevent an employee from
making elective contributions to a plan of deferred compensation during that
period. An election under this subsection (d), once made, is irrevocable.
Participation under this subsection shall be on the same basis and under
the same conditions as are applicable in the case of participating employees
of the city. Employee contributions shall be based on the salary actually
received by the employee for that employment. Employer contributions shall
be paid by the Public Building Commission rather than the city, at a rate to
be determined by the Retirement Board.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-230.9)
Sec. 8-230.9.
Service rendered to Chicago Housing Authority.
(a) Within 60 days after beginning full-time employment with the Chicago
Housing Authority (or within 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, whichever is later), a
person having service credits in this Fund or reinstating service credits
under subsection (c) may elect to participate in this Fund with respect to
that Chicago Housing Authority employment. An employee who participates in
this Fund with respect to Chicago Housing Authority employment shall not, with
respect to the same period of employment, participate in any other pension
plan for employees of the Authority for which contributions are made by the
Authority, except that this provision shall not prevent an employee from
making elective contributions to a plan of deferred compensation during that
period. An election under this subsection (a), once made, is irrevocable.
Participation under this subsection shall be on the same basis and under
the same conditions as are applicable in the case of participating employees
of the city. Employee contributions shall be based on the salary actually
received by the employee for that employment. Employer contributions shall
be paid by the Chicago Housing Authority rather than the city, at a rate to
be determined by the Retirement Board.
(b) An employee or former employee of the Chicago Housing Authority who has
established credit under the Fund with regard to service to an employer other
than the Chicago Housing Authority may contribute to the Fund and receive
credit for all periods of full-time employment with the Chicago Housing
Authority occurring prior to 60 days after the effective date of this
amendatory Act, except for those periods for which the employee retains a right
to credit in another public pension fund or retirement system established under
this Code. Such service credit shall be paid for and granted on the same basis
and under the same conditions as are applicable in the case of employees who
make payment for past service under Section 8-230, provided that the person
must also pay the corresponding employer contributions, and further provided
that the contributions and service credit are permitted under Section 415 of
the Internal Revenue Code of 1986. The contributions shall be based on the
salary actually received by the person from the Authority for that employment.
(c) A person establishing service credit under subsection (b) or electing
to participate in the Fund under subsection (a) may, at the same time,
reinstate service credit that was terminated through receipt of a refund by
repaying to the Fund the amount of the refund plus interest at the effective
rate from the date of the refund to the date of repayment.
(d) An eligible person may establish service credit under subsection (b)
and reinstate service credit under subsection (c) without returning to active
service as an employee under this Article, but the required contributions and
repayment must be received by the Fund before the person begins to receive a
retirement annuity under this Article.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-230.10)
Sec. 8-230.10.
Service rendered to IHDA.
An employee with at least 10
years of creditable service in the Fund may establish service credit for up to
7 years of full-time employment by the Illinois Housing Development Authority
for which the employee does not have credit in another public pension fund or
retirement system.
To establish service credit under this Section, the employee must apply to
the Fund in writing by January 1, 2003 and pay to the Fund, at any time before
beginning to receive a retirement annuity under this Article, an amount to be
determined by the Fund, consisting of (i) employee contributions based on the
salary actually received by the person from the Illinois Housing Development
Authority for that employment and the contribution rates then in effect for
employees of the Fund, (ii) the corresponding employer contributions, and (iii)
regular interest on the amounts in items (i) and (ii) from the date of the
service to the date of payment.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/8-231) (from Ch. 108 1/2, par. 8-231)
Sec. 8-231.
Employee who becomes participant in another fund.
Any participant in the fund who becomes a participant in any other
annuity and benefit fund, annuity and retirement fund or any pension fund
now or hereafter in operation in the city for the benefit of employees of
the employer, may elect to receive a refund or annuity from this fund in
the same manner as he would if he then resigned from his position in the
service and had not become a participant in such other fund. No credit is
allowed for any period of service as a participant in this fund for which
the employee receives credit in such other fund, and no annuity shall be
paid to such participant by this fund while he holds a position in the
service which entitles him to participation in such other fund.
If a participant in this fund is employed concurrently by an employer
whose employees are participants in a public retirement system created
under other Articles of the Illinois Pension Code as well as by the
employer as defined in this Article, any earnings from such other employer
during such period of concurrent employment shall not be considered for
annuity or benefit purposes under this Article.
(Source: P.A. 76-929.)
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(40 ILCS 5/8-232) (from Ch. 108 1/2, par. 8-232)
Sec. 8-232. Basis of service credit.
(a) In computing the period of
service of any employee for the minimum annuity under Section 8-138, the
following provisions shall govern:
(1) All periods prior to the effective date shall be | ||
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(2) Service subsequent to the day before the | ||
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(3) Service during 6 or more months in any year shall | ||
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(b) For all other purposes of this Article, the following schedule
shall govern the computation of service of an employee whose salary or
wages is on the basis stated, and any fractional part of a year of
service shall be determined according to said schedule:
Annual or Monthly basis: Service during 4 months in any 1 calendar
year shall constitute a year of service.
Weekly basis: Service during any week shall constitute a week of
service and service during any 17 weeks in any 1 calendar year shall
constitute a year of service.
Daily basis: Service during any day shall constitute a day of service
and service during 100 days in any 1 calendar year shall constitute a
year of service.
Hourly basis: Service during any hour shall constitute an hour of
service and service during 700 hours in any 1 calendar year shall
constitute a year of service.
(Source: P.A. 102-15, eff. 6-17-21.)
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(40 ILCS 5/8-233) (from Ch. 108 1/2, par. 8-233)
Sec. 8-233. Basis of annual salary. For the purpose of this Article,
the annual salary of an employee whose salary or wage is
appropriated, fixed, or arranged in the annual appropriation ordinance upon
other than an annual basis shall be determined as follows:
(a) If the employee is paid on a monthly basis, the annual salary
is 12 times the monthly salary. If
the employee is paid on a weekly basis, the annual salary is 52 times
the weekly salary.
"Monthly salary" means the amount of compensation or salary
appropriated and payable for a normal and regular month's work in the
employee's position in the service. "Weekly salary" means
the amount of compensation or salary appropriated and payable
for a normal and regular week's work in the employee's position in the
service. If the work is on a regularly scheduled part time basis, then "monthly salary" and "weekly salary" refer,
respectively, to the part time monthly or weekly salary.
If the appropriation for the position is for a shorter period than 12
months a year, or 52 weeks a year if on a weekly basis, or the employee is
in a class, grade, or category in which the employee normally works for fewer than 12
months or 52 weeks a year, then the basis shall be adjusted
downward to the extent that the appropriated or
customary work period is less than the normal 12 months
or 52 weeks of service in a year.
Compensation for overtime, at regular or overtime rates, that is paid in
addition to the appropriated regular and normal monthly or weekly salary
shall not be considered.
(b) If the employee is paid on a daily basis, the annual salary
is 260 times the daily wage. If the
employee is paid on an hourly basis, the annual salary is 2080 times
the hourly wage.
The norm is based on a 12-month per year, 5-day work week of 8 hours per
day and 40 hours per week, with consideration given only to time
compensated for at the straight time rate of compensation or wage. The
norm shall be increased (subject to a maximum of 300 days or 2400 hours per
year) or decreased for an employee
to the extent that the normal and established work period, at the
straight time compensation or wage for the position held in the
class, grade, or category in which the employee is assigned, is
for a greater or lesser number of months, weeks, days, or hours than
the period on which the established norm is based.
"Daily wage" and "hourly wage" mean,
respectively, the normal, regular, or basic straight time rate of
compensation or wage appropriated and payable for a normal and regular
day's work, or hour's work, in the employee's position in the service.
Any time worked in excess of the norm (or the increased or decreased
norm, whichever is applicable) that is compensated for at overtime,
premium, or other than regular or basic straight time rates shall not be
considered as time worked, and the compensation for that work shall not
be considered as salary or wage. Such time and compensation shall in
every case and for all purposes be considered overtime and shall be
excluded for all purposes under this Article. However, the
straight time portion of compensation or wage, for time worked on holidays
that fall within an employee's established norm, shall be
included for all purposes under this Article.
(c) For minimum annuity purposes under Section 8-138, where a
salary rate change occurs during the year, it shall be considered that the
annual salary for that year is (1) the annual
equivalent of the monthly, weekly, daily, or hourly salary or
wage rate that was applicable for the greater number of months,
weeks, days, or hours (whichever is applicable) in
the year under consideration, or (2) the annual equivalent
of the average salary or wage rate in effect for the employee during the
year, whichever is greater. The average salary or wage rate shall be
calculated by multiplying each salary or wage rate in effect for the
employee during the year by the number of months, weeks, days, or hours
(whichever is applicable) during which that rate was in effect, and
dividing the sum of the resulting products by the total number of months,
weeks, days, or hours (whichever is applicable) worked by the employee
during the year.
(d) The changes to subsection (c) made by this amendatory Act of 1997
apply to persons withdrawing from service on or after July 1, 1990 and for each
such person are intended to be retroactive to the date upon which the affected
annuity began. The Fund shall recompute the affected annuity and shall pay the
additional amount due for the period before the increase resulting from this
amendatory Act in a lump sum, without interest.
(e) This Article shall not be construed to authorize a salary paid by an entity other than an employer, as defined in Section 8-110, to be used to calculate the highest average annual salary of a participant. This subsection (e) is a declaration of existing law and shall not be construed as a new enactment. (Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/8-234) (from Ch. 108 1/2, par. 8-234)
Sec. 8-234.
Basis of salary deduction.
The total of salary deductions for employee contributions for annuity
purposes to be considered for any 1 calendar year shall not exceed that
produced by the application of the proper salary deduction
rates to the
highest annual salary considered for annuity purposes for such year.
For the year 1957 or prior years, where deductions from salary on
overtime pay may have, in the case of some daily or hourly paid
employees, resulted in excess deductions for the year, such excess
deductions may be considered as proper salary deductions for age and
service and widow's annuity, unless refunded at the employee's request.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-235) (from Ch. 108 1/2, par. 8-235)
Sec. 8-235.
Basis of actual compensation.
"Actual Compensation" of any employee whose actual compensation (as
defined herein) is arranged upon other than a yearly basis shall be
determined by the following schedule:
Monthly basis:--12 times the amount of actual compensation per month.
Weekly basis:--52 times the amount of actual compensation per week.
Daily basis:--300 times the amount of actual compensation per day.
Hourly basis:--2400 times the amount of actual compensation per hour.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-236) (from Ch. 108 1/2, par. 8-236)
Sec. 8-236.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code
as now enacted or hereafter amended, is hereby adopted and made a part of
this Article; provided, that where there is a direct conflict in the
provisions of such Act and the specific provisions of this Article, such
latter provisions shall prevail.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-237) (from Ch. 108 1/2, par. 8-237)
Sec. 8-237.
Employees in territory annexed.
Whenever territory is annexed to the city, any person then employed as a
municipal employee in the annexed territory, who shall be employed by the
city on the date of the annexation shall automatically come under this
Article, and any service rendered for the annexed territory shall be
considered, for the purpose of this Article, as service rendered to the
city.
Such employee shall be treated, as of the date such annexation comes
into effect the same as is a present employee of the city on the effective
date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-238) (from Ch. 108 1/2, par. 8-238)
Sec. 8-238.
Municipal Pension Fund superseded.
The fund herein provided for on the effective date shall supersede and
take the place and have transferred to it the assets of any Municipal
Pension Fund as herein defined, in operation in the city, and the fund
herein provided for shall be a continuation of such Municipal Pension Fund.
All annuities, pensions and other benefits allowed prior to the
effective date by the Board of Trustees of such Municipal Pension Fund and
all claims pending or ungranted on the effective date which thereafter are
allowed according to the law establishing such Municipal Pension Fund by
the board herein provided for, shall be paid by the board from the fund
herein provided for, according to the law or laws under which such
annuities, pensions, or other benefits were allowed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-239) (from Ch. 108 1/2, par. 8-239)
Sec. 8-239.
School Employees' Pension Fund superseded.
The fund herein provided for shall, on July 1, 1923, and thereafter,
supersede and take the place of and have transferred to it the assets of
any municipal pension fund which is in operation in the city on June 30,
1923, under the Public School Employees' Pension Act of 1903, and the
fund herein provided for shall be a continuation of such municipal pension
fund.
All annuities, pensions, or other benefits allowed prior to July 1,
1923, by the Board of Trustees of such Municipal Pension Fund and all
claims pending or ungranted on July 1, 1923, which thereafter are allowed
according to the law establishing such municipal pension fund by the board
herein provided for, shall be paid by the board from the fund herein
provided for, according to the law or laws under which such annuities,
pensions, or other benefits were allowed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-240) (from Ch. 108 1/2, par. 8-240)
Sec. 8-240.
Certain funds superseded.
On January 1, 1960 the fund herein provided for shall supersede the
funds created by the Court and Law Department Employees' Annuity Act and
the Board of Election Commissioners Employees' Annuity Act, and shall
have transferred to it the assets of the funds under said Acts.
All annuities or benefits allowed prior to January 1, 1960, by the
respective Boards of Trustees of such superseded funds and all claims
pending prior to such date which thereafter are allowed according to the
law establishing the respective superseded funds by the board herein
provided for shall from and after such date be paid by the board from the
fund herein provided for according to the law under which the same were
allowed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-240.1) (from Ch. 108 1/2, par. 8-240.1)
Sec. 8-240.1.
Public Library Employes' Pension Fund superseded.
On January 1, 1966, the fund herein provided for shall supersede the
fund created by the Public Library Employes' Pension Act, in operation in
the city on December 31, 1965, and, as soon as practicable and possible
thereafter, all monies, securities, other assets, records, and other
property of such superseded fund shall be transferred by the board of
trustees of said superseded fund to the custody and ownership of the
retirement board of the annuity and benefit fund herein provided for, which
said retirement board is hereby empowered to receive them, and shall
thereupon assume all of the liabilities of the superseded fund.
All pensions and other benefits allowed prior to January 1, 1966 by the
board of trustees of the superseded fund, shall thereafter be paid by the
retirement board of the annuity and benefit fund herein provided for, and
all claims accrued, pending or ungranted prior to such date shall be
allowed or disallowed by said retirement board, according to the law
governing the superseded fund on December 31, 1965, and if allowed shall be
paid from the annuity and benefit fund herein provided for.
The assets of the superseded Public Library Employes' Pension Fund,
transferred to the annuity and benefit fund herein provided for, shall be
distributed and credited to appropriate fund accounts otherwise described
in this Article 8, and all liabilities, payments of pensions and benefits
arising out of the merger of said superseded fund into said annuity and
benefit fund shall be reflected in, paid from, and charged to such
accounts, in the same manner as provided for in the case of a superseded
Municipal Pension Fund.
(Source: Laws 1965, p. 2300.)
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(40 ILCS 5/8-240.2) (from Ch. 108 1/2, par. 8-240.2)
Sec. 8-240.2.
House of Correction Employees' Pension Fund superseded.
On January 1, 1969, the fund herein provided for shall supersede the
fund created by the House of Correction Employees' Pension Act, in
operation in the city on December 31, 1968, and, as soon as practicable and
possible thereafter, all monies, securities, other assets, records, and
other property of such superseded fund shall be transferred by the board of
trustees of said superseded fund to the custody and ownership of the
retirement board of the annuity and benefit fund herein provided for, which
said retirement board is hereby empowered to receive them, and shall
thereupon assume all of the liabilities of the superseded fund.
All annuities, pensions, and other benefits allowed prior to January 1,
1969 by the board of trustees of the superseded fund, shall thereafter be
paid by the retirement board of the annuity and benefit fund herein
provided for, and all claims accrued, pending or ungranted prior to such
date shall be allowed or disallowed by said retirement board, according to
the law governing the superseded fund on December 31, 1968, and if allowed
shall be paid from the annuity and benefit fund herein provided for.
The assets of the superseded House of Correction Employees' Pension
Fund, transferred to the annuity and benefit fund herein provided for,
shall be distributed and credited to appropriate fund accounts otherwise
described in this Article 8, and all liabilities, payments of pensions and
benefits arising out of the merger of said superseded fund into the said
annuity and benefit fund shall be reflected in, paid from, and charged to
such accounts, in the same manner as provided for in the case of a
superseded Municipal Pension Fund.
(Source: Laws 1968, p. 181.)
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(40 ILCS 5/8-241) (from Ch. 108 1/2, par. 8-241)
Sec. 8-241.
Board of Education employees' former service.
Any employee or former employee of the Board of Education of the city,
now included under the provisions of this Article, shall be considered, for
all purposes of this Article, to have been an employee during all time
prior to July 1, 1923 that he was in the service of such Board of Education
or of the city. This section shall be retroactive in effect.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-242) (from Ch. 108 1/2, par. 8-242)
Sec. 8-242.
Certain park district employees.
The "Exchange of Functions Act of 1957", to the extent that it applies
to the fund herein established is incorporated into and made a part of this
Article by express reference. Employees of a city who are members of the
fund and who are transferred to the employment of a park district pursuant
to the aforesaid Act shall remain members of the fund, and their rights,
credits and equities shall remain unimpaired by such transfer of
employment.
After such transfer of employment, the city shall assume no further
financial responsibility or obligation for such employees under this
Article, but such financial responsibility and obligation shall become the
duty of the park district by which they are employed. Wherever, as to such
employees, reference is made in this Article to the exercise of a function,
power, responsibility or duty by the city, such reference shall apply,
effective January 1, 1959, to the governing board of the park district by
which such persons are employed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-243) (from Ch. 108 1/2, par. 8-243)
Sec. 8-243. Service as alderperson or member of city council. Whenever any person has served or hereafter serves as a duly elected alderperson
or member of the city council of any city of more than 500,000
inhabitants and is or hereafter becomes a contributing participant in any
pension fund or any annuity and benefit fund in existence in such city by
operation of law, the period of service as such alderperson or member of the
city council shall be counted as a period of service in computing any
annuity or pension which such person may become entitled to receive from
such fund upon separation from the service, except as ruled out for minimum
annuity purposes in Section 8-232(a)(3).
(Source: P.A. 102-15, eff. 6-17-21.)
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(40 ILCS 5/8-243.1) (from Ch. 108 1/2, par. 8-243.1)
Sec. 8-243.1.
Elected city officer transfer of credits.
Any
city officer, as defined in Section 8-243.2,
may transfer to this Fund credits and creditable
service accumulated under any other pension fund or retirement system
established under Articles 2 through 18 of this Code, upon payment to the
Fund of (1) the amount by which the employer and employee contributions
that would have been required if he had participated in this Fund during
the period for which credit is being transferred, plus interest, exceeds
the amounts actually transferred from such other fund or system to this
Fund, plus (2) interest thereon at 6% per year compounded annually from the
date of transfer to the date of payment.
(Source: P.A. 86-1488.)
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(40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
Sec. 8-243.2. Alternative annuity for city officers.
(a) For the purposes of this Section and Sections 8-243.1 and 8-243.3,
"city officer" means the city clerk, the city treasurer, or an alderperson of
the city elected by vote of the people, while serving in that capacity or as
provided in subsection (f), who has elected to participate in the Fund.
(b) Any elected city officer, while serving in that capacity or as
provided in subsection (f), may elect to establish alternative credits for
an alternative annuity by electing in writing to make additional optional
contributions in accordance with this Section and the procedures
established by the board. Such elected city officer may discontinue making
the additional optional contributions by notifying the Fund in writing in
accordance with this Section and procedures established by the board.
Additional optional contributions for the alternative annuity shall
be as follows:
(1) For service after the option is elected, an | ||
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(2) For service before the option is elected, an | ||
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(c) In lieu of the retirement annuity otherwise payable under this
Article, any city officer elected by vote of the people who (1) has
elected to participate in the Fund and make additional optional
contributions in accordance with this Section, and (2) has attained
age 55 with at least 10 years of service credit, or has
attained age 60 with at least 8 years of service credit, may
elect to have his retirement annuity computed as follows: 3% of the
participant's salary at the time of termination of service for each of the
first 8 years of service credit, plus 4% of such salary for each of the
next 4 years of service credit, plus 5% of such salary for each year of
service credit in excess of 12 years, subject to a maximum of 80% of such
salary. To the extent such elected city officer has made additional
optional contributions with respect to only a portion of his years of
service credit, his retirement annuity will first be determined in
accordance with this Section to the extent such additional optional
contributions were made, and then in accordance with the remaining Sections
of this Article to the extent of years of service credit with respect to
which additional optional contributions were not made.
(d) In lieu of the disability benefits otherwise payable under this
Article, any city officer elected by vote of the people who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform the duties
of his office, and (3) was making optional contributions in accordance with
this Section at the time the disability was incurred, may elect to receive
a disability annuity calculated in accordance with the formula in
subsection (c). For the purposes of this subsection, such elected city
officer shall be considered permanently disabled only if: (i) disability
occurs while in service as an elected city officer and is of such a nature
as to prevent him from reasonably performing the duties of his office at
the time; and (ii) the board has received a written certification by at
least 2 licensed physicians appointed by it stating that such officer is
disabled and that the disability is likely to be permanent.
(e) Refunds of additional optional contributions shall be made on the
same basis and under the same conditions as provided under Sections 8-168,
8-170 and 8-171. Interest shall be credited at the effective rate on the
same basis and under the same conditions as for other contributions.
Optional contributions shall be accounted for in a separate Elected City
Officer Optional Contribution Reserve. Optional contributions under this
Section shall be included in the amount of employee contributions used to
compute the tax levy under Section 8-173.
(f) The effective date of this plan of optional alternative benefits
and contributions shall be July 1, 1990, or the date upon which approval is
received from the U.S. Internal Revenue Service, whichever is later.
The plan of optional alternative benefits and contributions shall
not be available to any former city officer or employee receiving an
annuity from the Fund on the effective date of the plan, unless he
re-enters service as an elected city officer and renders at least 3 years
of additional service after the date of re-entry. However, a person who
holds office as a city officer on June 1, 1995 may
elect to participate in the plan, to transfer credits into the Fund from
other Articles of this Code, and to make the contributions required for prior
service, until 30 days after the effective date of this amendatory Act
of the 92nd General Assembly, notwithstanding the
ending of his term of
office prior to that effective date; in the event that the person is already
receiving an annuity from this Fund or any other Article of this Code at the
time of making this election, the annuity shall be recalculated to include any
increase resulting from participation in the plan, with such increase taking
effect on the effective date of the election.
(g) Notwithstanding any other provision in this Section or in this Code to the contrary, any person who first becomes a city officer, as defined in this Section, on or after the effective date of this amendatory Act of the 100th General Assembly, shall not be eligible for the alternative annuity or alternative disability benefits as provided in subsections (a), (b), (c), and (d) of this Section or for the alternative survivor's benefits as provided in Section 8-243.3. Such person shall not be eligible, or be required, to make any additional contributions beyond those required of other participants under Sections 8-137, 8-174, and 8-182. The retirement annuity, disability benefits, and survivor's benefits for a person who first becomes a city officer on or after the effective date of this amendatory Act of the 100th General Assembly shall be determined pursuant to the provisions otherwise provided in this Article.(Source: P.A. 102-15, eff. 6-17-21.)
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(40 ILCS 5/8-243.3) (from Ch. 108 1/2, par. 8-243.3)
Sec. 8-243.3. Alternative survivor's benefits for survivors of city
officers. In lieu of the survivor's benefits otherwise payable under this
Article, the spouse or eligible child of any deceased city officer
elected by vote of the people who (1) had elected to participate in the
Fund, and (2) was either making additional optional contributions in
accordance with Section 8-243.2 on the date of death, or was receiving
an annuity calculated under that Section at the time of death, may elect to
receive an annuity beginning on the date of the
elected city officer's death, provided that the spouse and officer must
have been married on the date of the last termination of his or her service
as an elected city officer and for a continuous period of at least one year
immediately preceding his or her death.
The annuity shall be payable beginning on the date of the elected
city officer's death if the spouse is then age 50 or over, or beginning
at age 50 if the age of the spouse is less than 50 years. If a minor
unmarried child or children of the city officer, under age 18, also
survive, and the child or children are under the care of the eligible
spouse, the annuity shall begin as of the date of death of the elected city
officer without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of retirement
annuity earned by the elected city officer on the date of death, subject to a
minimum payment of 10% of salary, provided that if an eligible spouse,
regardless of age, has in his or her care at the date of death of the
elected city officer any unmarried child or children of the city
officer, under age 18, the minimum annuity shall be 30% of the elected
officer's salary, plus 10% of salary on account of each minor child
of the elected city officer, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of the deceased
officer's salary. In the event there shall be no spouse
of the elected city officer surviving, or should a
spouse remarry or die while eligible minor children still survive the
elected city officer, each such child shall be entitled to an annuity
equal to 20% of salary of the elected officer subject to a combined total
payment on account of all such children not to exceed 50% of salary of the
elected city officer. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining a retirement
annuity as provided in Section 8-243.2.
Upon the death of an elected city officer occurring after termination
of service or while in receipt of a retirement annuity, the combined total
payment to a spouse and minor children, or to minor children alone if no
eligible spouse survives, shall be limited to 75% of the amount of
retirement annuity earned by the city officer.
Marriage of a child or attainment of age 18, whichever first occurs,
shall render the child ineligible for further consideration in the payment
of an annuity to a spouse or in the increase in the amount thereof. Upon
attainment of ineligibility of the youngest minor child of the elected
city officer, the annuity shall immediately revert to the amount payable
upon death of an elected city officer leaving no minor children surviving
him or her. If the spouse is under age 50 at such time, the annuity as
revised shall be deferred until such age is attained. Remarriage of a
widow or widower prior to attainment of age 55 shall disqualify the spouse
from the receipt of an annuity.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
Sec. 8-244. Annuities, etc., exempt.
(a) All annuities, refunds,
pensions, and disability benefits granted under this Article, shall be
exempt from attachment or garnishment process and shall not be seized,
taken, subjected to, detained, or levied upon by virtue of any judgment, or
any process or proceeding whatsoever issued out of or by any court in this
State, for the payment and satisfaction in whole or in part of any debt,
damage, claim, demand, or judgment against any annuitant, pensioner,
participant, refund applicant, or other beneficiary hereunder.
(b) No annuitant, pensioner, refund applicant, or other beneficiary
shall have any right to transfer or assign his annuity, refund, or disability
benefit or any part thereof by way of mortgage or otherwise, except that:
(1) an annuitant or pensioner who elects or has | ||
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(2) in the case of refunds, a participant may pledge | ||
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(3) the board, in its discretion, may pay to the wife | ||
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(c) The board may retain out of any future annuity, pension, refund or
disability benefit payments, such amount, or amounts, as it may require for
the repayment of any moneys paid to any annuitant, pensioner, refund
applicant, or disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and release the board and
the fund from any liability for any moneys so withheld.
(d) Whenever an annuity or disability benefit is payable to a minor or
to a person certified by a medical doctor to be under legal
disability, the board, in its discretion and when it is in the best
interest of the person concerned, may waive guardianship proceedings and pay
the annuity or benefit to the person providing or caring for the minor or
person under legal disability.
In the event that a person certified by a medical doctor to be under legal
disability (i) has no spouse, blood relative, or other person providing or
caring for him or her, (ii) has no guardian of his or her estate, and (iii) is
confined to a Medicare approved, State certified nursing home or to a publicly
owned and operated nursing home, hospital, or mental institution, the Board
may pay any benefit due that person to the nursing home, hospital, or mental
institution, to be used for the sole benefit of the person under legal
disability.
Payment in accordance with this subsection to a person, nursing
home, hospital, or mental institution for the benefit of a minor or person
under legal disability shall be an absolute discharge of the Fund's liability
with respect to the amount so paid. Any person, nursing home, hospital, or
mental institution accepting payment under this subsection shall notify the
Fund of the death or any other relevant change in the status of the minor or
person under legal disability.
(Source: P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
Sec. 8-244.1. Payment of annuity other than direct.
(a) The board, at the written direction and request of any annuitant,
may, solely as an accommodation to such annuitant, pay the annuity due him
to a bank, savings and loan association or any other financial institution
insured by an agency of the federal government, for deposit to his account,
or to a bank or trust company for deposit in a trust established by him for
his benefit with such bank, savings and loan association or trust company,
and such annuitant may withdraw such direction at any
time. An annuitant who directs the board to pay the annuity due him or her to a financial institution shall hold the board and Fund harmless from any claim or loss related to any error as to whether the financial institution is or continues to be federally insured. The board may also, in the case of any disability beneficiary or
annuitant for whom no estate guardian has been appointed and who is
confined in a publicly owned and operated mental institution, pay such
disability benefit or annuity due such person to the superintendent or
other head of such institution or hospital for deposit to such person's
trust fund account maintained for him by such institution or hospital,
if by law such trust fund accounts are authorized or recognized.
(b) An annuitant formerly employed by the City of Chicago may authorize
the withholding of a portion of his or her annuity for payment of dues to a
labor organization; however, no withholding shall be required under this
subsection for payment to one labor organization unless a minimum of 25
annuitants authorize such withholding. The Board shall prescribe a form for
the authorization of withholding of dues, release of name, social security
number and address and shall provide such forms to employees, annuitants and
labor organizations upon request. Amounts withheld by the Board under this
subsection shall be promptly paid over to the designated organizations,
indicating the names, social security numbers and addresses of annuitants on
whose behalf dues were withheld.
At the request and at the expense of the labor organization, the City of Chicago shall coordinate mailings no
more than twice in any twelve-month period to such annuitants and the Board
shall supply current annuitant addresses to the City of Chicago upon request.
These mailings shall be limited to informing the annuitants of their rights
under this subsection (b), the form authorizing the withholding of dues from
their annuity and information supplied by the labor organization pertinent to
the decision of whether to exercise the rights of this subsection.
(Source: P.A. 101-69, eff. 7-12-19; 102-601, eff. 1-1-22.)
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(40 ILCS 5/8-245) (from Ch. 108 1/2, par. 8-245)
Sec. 8-245.
Board members-No compensation.
No member of the board shall receive any moneys from the fund as salary
for service performed as such member. Any employee member shall have a
right to be reimbursed for any salary withheld from him by the city
comptroller or the Board of Education of the city, or by any officer or
employee of the city, or Board of Education, because of attendance at any
meeting of the board or the performance of any other duty in connection
with the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-246) (from Ch. 108 1/2, par. 8-246)
Sec. 8-246.
No commissions on investments.
No member of the board, and no person officially connected with the
board, as employee, legal advisor, custodian of the fund, or otherwise,
shall have any right to receive any commission on account of any investment
made by the board, nor shall any such person act as the agent of any other
person concerning any such investment.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-247) (from Ch. 108 1/2, par. 8-247)
Sec. 8-247.
Duties of city officers.
The proper officers of the city and of the Board of Education and of
the retirement board, without cost to the fund, shall:
(a) Deduct all sums required to be deducted from salaries of
employees, and pay such sums to the board in such manner as the board
shall specify.
(b) Furnish the board on the first day of each month information
regarding the employment of any employees, and of all discharges,
resignations and suspensions from the service, deaths, and changes in
salary which have occurred during the preceding month, with the dates
thereof.
(c) Procure for the board in such form as the board specifies, all
information on the employees as to the service, age, salary, residence,
marital status, and data concerning their dependents, including
information relating to the service rendered by the employee prior to
the effective date.
(d) Keep such records concerning employees as the board may
reasonably require and shall specify.
(Source: P.A. 81-1536.)
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(40 ILCS 5/8-248) (from Ch. 108 1/2, par. 8-248)
Sec. 8-248.
Age of employee.
For any employee who has filed an application for appointment to the
service of the city, the age stated therein shall be conclusive evidence
against the employee of his age for the purposes of this Article, but the
board may decide any claim for any annuity, benefit, refund or payment
according to the age of the employee as shown by other evidence
satisfactory to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-249) (from Ch. 108 1/2, par. 8-249)
Sec. 8-249.
Office facilities.
Suitable rooms for office and meetings of the board shall be assigned by
the mayor of the city.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-250) (from Ch. 108 1/2, par. 8-250)
Sec. 8-250.
Compliance with article.
All officers, officials, and employees of the city shall perform any and
all acts required to carry out the intent and purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/8-251) (from Ch. 108 1/2, par. 8-251)
Sec. 8-251. Felony conviction. None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as a municipal employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under Public Act 100-334, shall not impair any contract or vested right acquired by a survivor prior to August 25, 2017 (the effective date of Public Act 100-334).
Any refund required under this Article shall be calculated based on that person's contributions to the Fund, less the amount of any annuity benefit previously received by the person or his or her beneficiaries. The changes made to this Section by Public Act 100-23 apply only to persons who first become participants under this Article on or after July 6, 2017 (the effective date of Public Act 100-23). All future entrants entering service subsequent to July 11, 1955 shall
be deemed to have consented to the provisions of this Section as a
condition of coverage, and all participants entering service subsequent to August 25, 2017 (the effective date of Public Act 100-334) shall be deemed to have consented to the provisions of Public Act 100-334 as a condition of participation.
(Source: P.A. 100-23, eff. 7-6-17; 100-334, eff. 8-25-17; 100-863, eff. 8-14-18.)
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(40 ILCS 5/8-252) (from Ch. 108 1/2, par. 8-252)
Sec. 8-252.
Administrative review.
The provisions of the Administrative Review Law,
and all amendments and modifications thereof and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the retirement board provided
for under this Article. The term "administrative decision" is as defined in
Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/8-253) (from Ch. 108 1/2, par. 8-253)
Sec. 8-253.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 9 heading) ARTICLE 9. COUNTY EMPLOYEES' AND OFFICERS'
ANNUITY AND BENEFIT FUND - COUNTIES OVER
3,000,000 INHABITANTS
(Source: P.A. 95-331, eff. 8-21-07.) |
(40 ILCS 5/9-101) (from Ch. 108 1/2, par. 9-101)
Sec. 9-101.
Creation of fund.
In each county of more than 3,000,000
inhabitants a County Employees' and Officers' Annuity and Benefit
Fund shall be created, set apart, maintained and administered, in the manner
prescribed in this Article, for the benefit of the employees and officers
herein designated and their beneficiaries.
(Source: P.A. 90-32, eff. 6-27-97.)
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(40 ILCS 5/9-102) (from Ch. 108 1/2, par. 9-102)
Sec. 9-102. Terms defined. The terms used in this Article have the meanings ascribed to them in the Sections following this Section and preceding Section 9-120, except when the context otherwise
requires.
(Source: P.A. 98-756, eff. 7-16-14.)
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(40 ILCS 5/9-103) (from Ch. 108 1/2, par. 9-103)
Sec. 9-103.
Fund.
"Fund": The County Employees' and Officers' Annuity and Benefit Fund
herein created.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-104) (from Ch. 108 1/2, par. 9-104)
Sec. 9-104.
The 1925 Act.
"The 1925 Act": "An Act to provide for the creation, setting apart,
maintenance and administration of a county employees' and officers' annuity
and benefit fund in counties having a population exceeding five hundred
thousand inhabitants", approved July 2, 1925, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-105) (from Ch. 108 1/2, par. 9-105)
Sec. 9-105.
County pension fund.
"County pension fund": Any pension fund created by "An Act to provide
for the formation and disbursement of a pension fund in counties having a
population of 150,000 or more inhabitants, for the benefit of officers and
employees in the service of such counties", approved June 29, 1915, as
amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-106) (from Ch. 108 1/2, par. 9-106)
Sec. 9-106.
Effective date.
"Effective date": January 1, 1926, for any county covered by "The 1925
Act" on the date this Article comes in effect; and January 1 of the first
year after the year in which any county hereafter comes under the
provisions of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-107) (from Ch. 108 1/2, par. 9-107)
Sec. 9-107.
Retirement board or board.
"Retirement board" or "board": The Board of Trustees of the County
Employees' and Officers' Annuity and Benefit Fund created by this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-108) (from Ch. 108 1/2, par. 9-108)
Sec. 9-108.
"Employee", "contributor" or "participant".
(a) Any employee of the county employed in any position in the
classified civil service of the county, or in any position under the
County Police Merit Board as a deputy sheriff in the County Police
Department.
Any such employee employed after January 1, 1968 and before January 1,
1984 shall be entitled only to the benefits provided in Sections 9-147
and 9-156, prior to the earlier of completion of 12 consecutive calendar
months of service and January 1, 1984, and no
contributions shall be made by him during this period. Upon the
completion of said period contributions shall begin and the employee
shall become entitled to the benefits of this Article.
Any such employee may elect to make contributions for such
period and receive credit therefor under rules prescribed by the board.
Any such employee in service on or after January 1, 1984, regardless
of when he became an employee, shall be deemed a participant and contributor
to the fund created by this Article and the employee shall be entitled to
the benefits of this Article.
(b) Any employee of the county employed in any position not included in the
classified civil service of the county whose salary or wage is
paid in whole or in part by the county. Any such employee employed after
July 1, 1957, and before January 1, 1984, shall be entitled only to the
benefits provided in Sections 9-147 and 9-156, prior to the earlier of
completion of 12 consecutive calendar months of service and January 1, 1984,
and no contributions shall be made by him
during this period. Upon the completion of said period contributions
shall begin and the employee shall become entitled to the benefits of
this Article.
Any such employee may elect to make contributions for such
period and receive credit therefor under rules prescribed by the board.
Any such employee in service on or after January 1, 1984, regardless
of when he became an employee, shall be deemed a participant and contributor
to the fund created by this Article and the employee shall be entitled to
the benefits of this Article.
(c) Any county officer elected by vote of the people, including a
member of the county board, when such officer elects to become a
contributor.
(d) Any person employed by the board.
(e) Employees of a County Department of Public Aid in counties of
3,000,000 or more population who are transferred to State employment by
operation of law enacted by the 76th General Assembly and who elect not
to become members of the Retirement System established under Article 14
of this Code as of the date they become State employees shall retain
their membership in the fund established in this Article 9 until the
first day of the calendar month next following the date on which they
become State employees, at which time they shall become members of the
System established under Article 14.
(f) If, by operation of law, a function of a "Governmental Unit", as
such term is defined in the "Retirement Systems Reciprocal Act" in
Article 20 of the Illinois Pension Code, is transferred in whole or in
part to the county in which this Article is in force and effect, and
employees are transferred as a group or class to such county service,
such transferred employee shall, if on the day immediately prior to the
date of such transfer he was a contributor and participant in the
annuity and benefit fund or retirement system in operation in such other
"Governmental Unit" for employees of such Unit, immediately upon such
transfer be deemed a participant and contributor to the fund created by
this Article.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/9-108.1) (from Ch. 108 1/2, par. 9-108.1)
Sec. 9-108.1.
Employees of County Department of Public Aid transferred to State
employment by operation of law.
Employees of a County Department of Public Aid in a county of 3,000,000
or more population who, on January 1, 1974, are transferred by operation of
law to State employment and who elect not to become members of the
Retirement System established under Article 14 of this Code as of the date
they become State employees shall retain their membership in the fund
established in this Article 9 until February 1, 1974, at which time they
shall become members of the System established under Article 14.
(Source: P.A. 78-365.)
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(40 ILCS 5/9-108.2) (from Ch. 108 1/2, par. 9-108.2)
Sec. 9-108.2.
Gender.
The masculine gender whenever used in this Article includes the feminine
gender and all annuities and other benefits applicable to male employees
and their survivors, and the contributions to be made for widows' annuities
or other annuities, benefits, and refunds, shall apply with equal force to
female employees and their survivors, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/9-108.3) Sec. 9-108.3. In service. "In service": Any period during which contributions are being made to the Fund on behalf of an employee except for temporary election work as described in subsection (c) of Section 9-161.
(Source: P.A. 103-552, eff. 8-11-23.) |
(40 ILCS 5/9-109) (from Ch. 108 1/2, par. 9-109)
Sec. 9-109.
"Present employee".
(a) Any employee on the day before the effective date who becomes a
contributor on the effective date; and
(b) Any person who was an employee of the county or the Board of
Trustees of the County Pension Fund on the day before the effective date
who did not become a contributor on the effective date and who is in the
employ of the county or the board on August 31, 1935 and who has made
application on or before September 1, 1935 to the board to have the
provisions of "The 1925 Act" apply to his former periods of service, and
who
(1) was not a contributor to the fund prior to September 1, 1935, or
(2) became a contributor prior to September 1, 1935, and was employed by
the county or board prior to the time he became a contributor;
(c) Any person who (1) was an employee of the county or the Board of
Trustees of the pension fund which the fund herein provided for supersedes,
prior to the effective date but who was not in such employ on such date,
and (2) returns to the service of the county or of the board subsequently
and is an employee for 10 or more years, at least 6 of which were
employment subsequent to such date; and
(d) Any person elected by vote of the people to a county office prior to
July 1, 1947, who on said date is serving in such elective office and who
elects to become a contributor.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-110) (from Ch. 108 1/2, par. 9-110)
Sec. 9-110.
"Future entrant".
(a) Any person not described in subdivisions (b), (c), (d), or (e) of
this definition of "Future Entrant" who becomes an employee on or after the
effective date, except a county officer elected prior to July 1, 1947; and
any person elected by vote of the people to a county office after July 1,
1947, who elects to become a contributor;
(b) Any person who (1) was an employee on August 31, 1935, (2) was not a
contributor prior to September 1, 1935, and (3) did not make application on
or before September 1, 1935, to be covered by "The 1925 Act" for his
periods of service prior to September 1, 1935;
(c) Any person becoming an employee for the first time on or after the
effective date, who (1) was an employee on August 31, 1935, (2) became a
contributor prior to September 1, 1935, (3) rendered service to the county
or board before he became a contributor, and (4) did not make application
to the board on or before September 1, 1935, to be covered by "The 1925
Act" for his former periods of service;
(d) Any person becoming an employee for the first time on or after the
effective date who (1) was an employee on August 31, 1935, (2) became a
contributor prior to September 1, 1935, (3) was employed by the county
prior to becoming a contributor, and (4) made application on or before
September 1, 1935, to the board to be covered by "The 1925 Act" for such
former periods of service;
(e) Any person becoming an employee for the first time on or after the
effective date who (1) was in the employ of the county or the board on
August 31, 1935, (2) did not become a contributor prior to September 1,
1935 and (3) made application on or before September 1, 1935, to be covered
by "The 1925 Act" for his former periods of service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-111) (from Ch. 108 1/2, par. 9-111)
Sec. 9-111.
Re-entrant.
"Re-entrant": Any employee who withdraws from service and receives a
refund, and thereafter re-enters service prior to age 65.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-112) (from Ch. 108 1/2, par. 9-112)
Sec. 9-112. Salary. "Salary": Annual salary of an employee under this Article as follows:
(a) Beginning on the effective date and prior to July 1, 1947 $3000
shall be the maximum amount of annual salary of any employee to be
considered for the purposes of this Article; and beginning on July 1,
1947 and prior to July 1, 1953, said maximum amount shall be $4800; and
beginning on July 1, 1953 and prior to July 1, 1957 said maximum amount
shall be $6,000; and beginning on July 1, 1957, salary shall be based upon the actual sum paid and reported to the Fund, exclusive of
overtime and extra service.
(b) (Blank).
(c) Where the county provides lodging, board and laundry service for
an employee without charge and so reports to the Fund while the employee is receiving such lodging, board and laundry service, his salary shall be considered to be $480 a
year more for the period from the effective date to August 1, 1959 and
thereafter $960 more than the amount payable as salary for the year, and
the salary of an employee for whom one or more daily meals are provided
by the county without charge therefor and are reported by the county to the Fund while the employee is receiving such meals shall be considered to be $120 a
year more for each such daily meal for the period from the effective
date to August 1, 1959 and thereafter $240 more for each such daily meal
than the amount payable as his salary for the year.
(d) For the purposes of ordinary disability, salary shall be based upon the rate reported to the Fund at the date of disability and adjusted to reflect the actual hours paid during the prior year. (Source: P.A. 98-551, eff. 8-27-13.)
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(40 ILCS 5/9-113) (from Ch. 108 1/2, par. 9-113)
Sec. 9-113.
Disability.
"Disability": A physical or mental incapacity as the result of which an
employee is unable to perform the duties of his position.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-114) (from Ch. 108 1/2, par. 9-114)
Sec. 9-114.
Injury.
"Injury": A physical hurt resulting from external force or violence.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-115) (from Ch. 108 1/2, par. 9-115)
Sec. 9-115. Child or children.
"Child" or "children": The natural child or children or any child or
children legally adopted by an employee.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/9-116) (from Ch. 108 1/2, par. 9-116)
Sec. 9-116.
Withdraws from service, withdrawal from service or withdrawal.
"Withdraws from service", "withdrawal from service" or "withdrawal":
Discharge or resignation of an employee.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-117) (from Ch. 108 1/2, par. 9-117)
Sec. 9-117.
Assets.
"Assets": The total value of cash, securities and other property held.
Bonds shall be valued at their amortized book values.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-118) (from Ch. 108 1/2, par. 9-118)
Sec. 9-118.
Effective rate of interest, interest at the effective rate, or interest.
"Effective rate of interest", "interest at the effective rate", or
"interest": Interest at 4% per annum for a present employee, or for a
future entrant or re-entrant who was a participant or contributor on
January 1, 1954; and at 3% per annum for a future entrant or re-entrant who
becomes a contributor after January 1, 1954. In all cases involving
reserves, credits, transfers, and charges, "effective rate of interest",
"interest at the effective rate" or "interest" shall be applied at these
rates.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-119) (from Ch. 108 1/2, par. 9-119)
Sec. 9-119.
Annuity.
"Annuity": Equal monthly payments for life, unless otherwise specified.
The first payment shall be due and payable 1 month after the occurrence of
the event upon which payment of the annuity depends, and the last payment
shall be payable as of the date of the annuitant's death and be prorated
from the date of the last preceding payment to the date of death; provided,
that as to annuities effective July 1, 1973, and thereafter payments shall
be made as of the first day of each calendar month during the annuity
payment period, the first payment to be made as of the first day of the
calendar month coincidental with or next following the first day of the
annuity payment period and the last payment to be made as of the first day
of the calendar month in which the annuitant dies or the annuity payment
period ends.
(Source: P.A. 78-656.)
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(40 ILCS 5/9-119.1) Sec. 9-119.1. Earned annuity. "Earned annuity": (1) The annuity a participant has accrued as provided in Section 9-134, disregarding minimum age and service eligibility requirements and without any reduction due to age, or (2) the age and service annuity as provided in Sections 9-125 through 9-128, inclusive.
(Source: P.A. 98-551, eff. 8-27-13.) |
(40 ILCS 5/9-120) (from Ch. 108 1/2, par. 9-120)
Sec. 9-120.
Persons to whom article does not apply.
This Article
does not apply to:
(a) Any person whose position will not ordinarily permit service during
one month in a calendar year, nor to any person who is age 65 or over when
he enters service unless such a person elects to have this Article apply by
filing written notice of such intent with the retirement board within 4
months after the date of entering service. Any person to whom this Article
did not apply because of the age 65 limitation may file such written notice
within 4 months of the effective date of this Amendatory Act. Such a
person may establish credit for any periods for which this Article did not
apply by making the employee contributions which would have been required
had this Article applied to such person together with interest.
(b) Any person who becomes an employee after June 30, 1979 as a public
service employment program participant under the Federal Comprehensive
Employment and Training Act and whose wages or fringe benefits are paid in
whole or in part by funds provided under such Act.
(Source: P.A. 87-794.)
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(40 ILCS 5/9-120.1)
Sec. 9-120.1.
CTA - continued participation; military service credit.
(a) A person who (i) has at least 20 years of creditable service in the
Fund, (ii) has not begun receiving a retirement annuity under this Article,
and (iii) is employed in a position under which he or she is eligible to
actively participate in the retirement system established under Section 22-101
of this Code may elect, after he or she ceases to be a participant but in no
event after June 1, 1998, to continue his or her participation in this Fund
while employed by the Chicago Transit Authority, for up to 10 additional years,
by making written application to the Board.
(b) A person who elects to continue participation under this Section shall
make contributions directly to the Fund, not less frequently than monthly,
based on the person's actual Chicago Transit Authority compensation and the
rates applicable to employees under this Fund. Creditable service shall be
granted to any person for the period, not exceeding 10 years, during which the
person continues participation in this Fund under this Section and continues to
make contributions as required. For periods of service established under this
Section, the person's actual Chicago Transit Authority compensation shall be
considered his or her salary for purposes of calculating benefits under this
Article.
(c) A person who elects to continue participation under this Section may
cancel that election at any time.
(d) A person who elects to continue participation under this Section may
establish service credit in this Fund for periods of employment by the Chicago
Transit Authority prior to that election, by applying in writing and paying to
the Fund an amount representing employee contributions for the service being
established, based on the person's actual Chicago Transit Authority
compensation and the rates then applicable to employees under this Fund,
without interest.
(e) A person who qualifies under this Section may elect to purchase
credit for up to 4 years of military service, whether or not that
service followed service as a county employee. The military service need
not have been served in wartime, but the employee must not have been
dishonorably discharged. To establish this creditable service the
applicant must pay to the Fund, on or before July 1, 1998, an amount determined
by the Fund to represent the employee contributions for the creditable service,
based on the employee's rate of compensation on his or her last day of service
as a contributor before the military service or his or her
salary on the first day of service following the military service, whichever is
greater, plus interest at the effective rate from the date of discharge to the
date of payment. For the purposes of this subsection, "military service"
includes service in the United States armed forces reserves.
(f) Notwithstanding any other provision of this Section, a person may not
establish creditable service under this Section for any period for which the
person receives credit under any other public employee retirement system,
including the retirement system established under Section 22-101 of this Code,
unless the credit under that retirement system has been irrevocably
relinquished.
(Source: P.A. 90-32, eff. 6-27-97.)
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(40 ILCS 5/9-121) (from Ch. 108 1/2, par. 9-121)
Sec. 9-121.
Election of county officer to become contributor.
(a) Any employee elected by a vote of the people to a county office
may elect to become a contributor by exercising such election while in
office.
(b) Upon election by a future entrant, credit shall accrue for all
service and credit shall be granted for all contributions made by and on
his behalf by the county for age and service and widow's annuity. The
employee may make contributions with interest at the effective rate,
equal to the sum which would have accumulated to his credit for age and
service and widow's annuity as of the date he becomes a contributor had
he made contributions from the
date of his assuming elective office to
the date he becomes a contributor. Concurrent credit shall be granted
for county contributions at the rate in effect during the periods for
which the employee made contributions.
Any future entrant who renders at least 2 years of service after such
election shall receive credit for all purposes of this Article,
including prior service, provided that if he has received a refund of
contributions with respect to any such service, credit shall not be
granted unless repayment is made of all such refunds, including interest
to the date of repayment.
(c) Upon election by a present employee, credit shall be granted and
county contributions shall be made for all purposes of this Article for
all periods prior to October 1, 1947, during which he was an officer or
employee of the county, except as otherwise prescribed in this Section.
Such county contributions shall be at the rates in effect for employees
under the provisions of "The 1925 Act" during periods for which credit
is allowed for the purposes specified in this paragraph together with
interest, and shall be considered together with all other contributions
in the computation of annuities to which the employee or his widow may
be entitled.
Any such present employee may elect to make additional contributions
with interest at 4% per annum, equal to the sum which would have
accumulated for age and service annuity and widow's annuity as of the
date he became a contributor had he made contributions throughout his
entire period of service for which county contributions are provided in
this Section. Such additional contributions shall be improved at
interest for the same period of time as regular contributions in the
case of any other present employee, and shall, together with all other
amounts contributed by the employee, be considered as
contributions for
age and service annuity, widow's annuity and refund purposes.
(d) Any present employee who received a refund under "The 1925 Act"
prior to July 1, 1947, shall receive no credit for service covered by
such refund unless repayment is made by him of all such refunds,
including interest to the date of repayment.
(e) The time and manner of making additional contributions and
repayment of refunds shall be prescribed by the board.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-121.1) (from Ch. 108 1/2, par. 9-121.1)
Sec. 9-121.1.
General Assembly transfer.
(a) Any active (and until February 1, 1993, any former) member of
the General Assembly Retirement System may apply for transfer of his
credits and creditable service accumulated under this Fund to the General
Assembly System. Such credits and creditable service shall be transferred
forthwith. Payment by this Fund to the General Assembly Retirement System
shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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(b) An active (and until February 1, 1993, a former) member of the
General Assembly Retirement System who has service credits and
creditable service under the Fund may establish additional service credits
and creditable service for periods during which he was an elected official
and could have elected to participate but did not so elect. Service credits
and creditable service may be established by payment to the fund of an amount
equal to the contributions he would have made if he had elected to participate,
plus interest to the date of payment.
(c) An active (and until February 1, 1993, a former) member of the
General Assembly Retirement System may reinstate service and service
credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(d) An active (and until February 1, 1993, a former) member of the
General Assembly having no service credits or creditable service in the
Fund may establish service credit and creditable service for periods during
which he was employed by the county but did not participate in the Fund, by
paying to the Fund prior to July 1, 1991 an amount equal to the
contributions he would have made if he had participated, plus interest
thereon at 6% per annum compounded annually from such period to the date
of payment.
(e) Any active member of the General Assembly may apply for transfer of
his credits and creditable service established under subsection (c) or (d)
to any annuity and benefit fund established under Article 5, 8 or 12 of
this Act. Such credits and creditable service shall be transferred
forthwith, together with a payment from this Fund to the designated Article
5, 8 or 12 fund consisting of the amounts accumulated to the credit of the
applicant under subsection (c) or (d), including the corresponding employer
contributions and interest, on the books of the Fund on the date of
transfer. Participation in this Fund as to any credits transferred under
this subsection shall terminate on the date of transfer.
(Source: P.A. 86-27; 86-273; 86-1028; 86-1488; 87-794.)
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(40 ILCS 5/9-121.2) (from Ch. 108 1/2, par. 9-121.2)
Sec. 9-121.2.
Validation of service credits.
An active member of
the General Assembly having no service credits or creditable service in
the Fund, may establish service credit and creditable service for
periods during which he was an employee of an employer in an elective
office and could have elected to participate in the Fund but did not so
elect. Service credits and creditable service may be established by
payment to the Fund of an amount equal to the contributions he would
have made if he had elected to
participate plus interest to the date of
payment, together with a like amount as the applicable municipality
credits including interest, but the total period of such creditable
service that may be validated shall not exceed 8 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-121.3) (from Ch. 108 1/2, par. 9-121.3)
Sec. 9-121.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer and
employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/9-121.4) (from Ch. 108 1/2, par. 9-121.4)
Sec. 9-121.4.
Service as Village Trustee.
Any participant who served as
a Village Trustee, and was not then eligible to participate in the Illinois
Municipal Retirement Fund for such service, may elect to receive credit
under this Article for such service by paying to the Fund: (1) an amount equal
to his annual salary at the time of election, times the employee contribution
rate in effect at the time of election, times the number of years of service
credit to be granted under this Section; plus (2) an amount equal to his
annual salary at the time of election, times the employer contribution rate
in effect at the time of election, times the number of years of service
credit to be granted under this Section. The service credit received under
this Section may not exceed 50% of the participant's service credit in the
Fund at the time of election. No person may receive more than 4 years of
service credit under this Section.
(Source: P.A. 82-785.)
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(40 ILCS 5/9-121.5) (from Ch. 108 1/2, par. 9-121.5)
Sec. 9-121.5.
Elected county officer transfer of credits.
Any county
officer elected by vote of the people who has elected to participate in the
Fund may transfer to this Fund credits and creditable service accumulated
under any other pension fund or retirement system established under
Articles 2 through 18 of this Code, upon payment to the Fund of (1) the
amount by which the employer and employee contributions that would have
been required if he had participated in this Fund during the period for
which credit is being transferred, plus interest, exceeds the amounts
actually transferred from such other fund or system to this Fund, plus (2)
interest thereon at 6% per year compounded annually from the date of transfer
to the date of payment.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-121.6) (from Ch. 108 1/2, par. 9-121.6)
Sec. 9-121.6. Alternative annuity for county officers. (a) Any
county officer elected by vote of the people may elect to establish
alternative credits for an alternative annuity by electing in writing to
make additional optional contributions in accordance with this Section and
procedures established by the board. Such elected county officer
may discontinue making the additional optional contributions by notifying
the Fund in writing in accordance with this Section and procedures
established by the board.
Additional optional contributions for the alternative annuity shall
be as follows:
(1) For service after the option is elected, an | ||
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(2) For service before the option is elected, an | ||
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(b) In lieu of the retirement annuity otherwise payable under this
Article, any county officer elected by vote of the people who (1) has
elected to participate in the Fund and make additional optional
contributions in accordance with this Section, and (2)
has attained age 60 with at least 10 years of service credit,
or has attained age 65 with at least 8 years of service credit, may elect
to have his retirement annuity computed as follows: 3% of the
participant's salary at the time of termination of service for each of the
first 8 years of service credit, plus 4% of such salary for each of the
next 4 years of service credit, plus
5% of such salary for each year of service credit in excess of 12 years,
subject to a maximum of 80% of such salary. To the extent such elected
county officer has made additional optional contributions with respect to
only a portion of his years of service credit, his retirement annuity will
first be determined in accordance with this Section to the extent such
additional optional contributions were made, and then in accordance with
the remaining Sections of this Article to the extent of years of service
credit with respect to which additional optional contributions were not made.
(c) In lieu of the disability benefits otherwise payable under this
Article, any county officer elected by vote of the people who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform the duties
of his office, and (3) was making optional contributions in accordance with
this Section at the time the disability was incurred, may elect to receive
a disability annuity calculated in
accordance with the formula in subsection (b). For the purposes of this
subsection, such elected county officer shall be considered permanently
disabled only if: (i) disability occurs while in service as an elected
county officer and is of such a nature as to prevent him from reasonably
performing the duties of his office at the time; and (ii) the board has
received a written certification by at least 2 licensed physicians
appointed by it stating that such officer is disabled and that the
disability is likely to be permanent.
(d) Refunds of additional optional contributions shall be made on the
same basis and under the same conditions as provided under Sections 9-164,
9-166, and 9-167. Interest shall be credited at the effective rate on the
same basis and under the same conditions as for other contributions.
Optional contributions under this
Section shall be included in the amount of employee contributions used to
compute the tax levy under Section 9-169.
(e) The effective date of this plan of optional alternative benefits
and contributions shall be January 1, 1988, or the date upon which
approval is received from the U.S. Internal Revenue Service, whichever is
later. The plan of optional alternative benefits and contributions shall
not be available to any former county officer or employee receiving an
annuity from the Fund on the effective date of the plan, unless he
re-enters service as an elected county officer and renders at least 3 years
of additional service after the date of re-entry.
(f) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after July 2, 2010 (the effective date of Public Act 96-961) and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate. (g) The plan of optional alternative benefits and contributions authorized under this Section applies only to county officers elected by vote of the people on or before January 1, 2008 (the effective date of Public Act 95-654).
(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/9-121.7) (from Ch. 108 1/2, par. 9-121.7)
Sec. 9-121.7. Alternative survivor's benefits for survivors of county
officers. In lieu of the survivor's benefits otherwise payable under this
Article, the spouse or eligible child of any deceased county officer
elected by vote of the people who (1) had elected to participate in the
Fund, and (2) was either making additional optional contributions in
accordance with Section 9-121.6 on the date of death, or was receiving
an annuity calculated under that Section at the time of death, may elect to
receive an annuity beginning on the date of the
elected county officer's death, provided that the spouse and officer must
have been married on the date of the last termination of his or her service
as an elected county officer and for a continuous period of at least one year
immediately preceding his or her death.
The annuity shall be payable beginning on the date of the elected
county officer's death if the spouse is then age 50 or over, or beginning
at age 50 if the age of the spouse is less than 50 years. If a minor
unmarried child or children of the county officer, under age 18, also
survive, and the child or children are under the care of the eligible
spouse, the annuity shall begin as of the date of death of the elected county
officer without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of retirement
annuity earned by the elected county officer on the date of death, subject to a
minimum payment of 10% of salary, provided that if an eligible spouse,
regardless of age, has in his or her care at the date of death of the
elected county officer any unmarried child or children of the county
officer, under age 18, the minimum annuity shall be 30% of the elected
officer's salary, plus 10% of salary on account of each minor child
of the elected county officer, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of the deceased
officer's salary. In the event there shall be no spouse
of the elected county officer surviving, or should a
spouse remarry or die while eligible minor children still survive the
elected county officer, each such child shall be entitled to an annuity
equal to 20% of salary of the elected officer subject to a combined total
payment on account of all such children not to exceed 50% of salary of the
elected county officer. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining a retirement
annuity as provided in Section 9-121.6.
Upon the death of an elected county officer occurring after termination
of service or while in receipt of a retirement annuity, the combined total
payment to a spouse and minor children, or to minor children alone if no
eligible spouse survives, shall be limited to 75% of the amount of
retirement annuity earned by the county officer.
Marriage of a child or attainment of age 18, whichever first occurs,
shall render the child ineligible for further consideration in the payment
of an annuity to a spouse or in the increase in the amount thereof. Upon
attainment of ineligibility of the youngest minor child of the elected
county officer, the annuity shall immediately revert to the amount payable
upon death of an elected county officer leaving no minor children surviving
him or her. If the spouse is under age 50 at such time, the annuity as
revised shall be deferred until such age is attained. Remarriage of a
widow or widower prior to attainment of age 55 shall disqualify the spouse
from the receipt of an annuity.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/9-121.8) (from Ch. 108 1/2, par. 9-121.8)
Sec. 9-121.8.
Transfer of creditable service to Article 8 or 13
Fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, and any sanitary district commissioner elected by
vote of the people who is a participant in the pension fund established
under Article 13 of this Code, may apply for transfer of his credits and
creditable service accumulated under this Fund to such Article 8 or 13
fund. Such creditable service shall be transferred forthwith. Payment by
this Fund to the Article 8 or 13 fund shall be made at the same time
and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions computed by the Board and | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer or sanitary district commissioner
who has credits and
creditable service under the Fund may establish additional credits
and creditable service for periods during which he
could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the
Fund of an amount equal to the contributions he would have made if he had
elected to participate, plus interest to the date of payment.
(c) Any such elected city officer or sanitary district commissioner may reinstate
credits and creditable service terminated upon receipt of a separation
benefit, by payment to the Fund of the amount of the separation benefit
plus interest thereon to the date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/9-121.9) (from Ch. 108 1/2, par. 9-121.9)
Sec. 9-121.9.
Age Discrimination.
Notwithstanding any other
provisions in this Article, it is the intention of the General Assembly to
comply with the federal Age Discrimination in Employment Act of 1967, as
amended by the Age Discrimination in Employment Amendments of 1986 and the
Omnibus Budget Reconciliation Act of 1986, as required with respect to
benefits for older individuals. For this purpose, if required, the
following changes shall govern with respect to other Sections of this
Article, effective January 1, 1988 unless otherwise specified:
(1) Contributions. Beginning January 1, 1988, the spouse contribution
shall not cease at age 65, but shall continue during the term of service.
Beginning January 1, 1988, concurrent county contributions shall be made
during the term of service.
(2) Money purchase accounts "fixed" at age 65. Beginning January 1,
1988, for all purposes, accruals after age 65 for the accounts of those
employees who have not withdrawn or retired shall be "unfixed" with
interest from the date fixed to January 1, 1988, without any contribution
from the time originally fixed until the effective date of this amendatory
Act of 1989. Thereafter, all
money purchase accounts shall not be "fixed", but shall continue to accrue
until time of withdrawal. No contributions are permitted from the time
"fixed" until the time "unfixed".
(3) Employee money purchase annuity after age 65. Beginning January 1,
1988, all money purchase annuities shall be computed without limitation for
age at time of withdrawal and without being "fixed" at any limiting age.
(4) Widows and wives not entitled to annuity. Beginning January 1,
1988, there shall be no requirement that marriage take place before the
employee attained age 65. Any "no spouse" refund must be repaid with
interest at the effective rate before a spouse annuity is payable.
(5) Children. Beginning January 1, 1988, there shall be no age
requirement on the employee age for a child's annuity.
(6) Compensation and supplemental annuities. The age condition shall remain at 65.
(7) Accounting. Beginning January 1, 1988, or as soon as practical, the
Annuity Payment Fund Accounts and the Prior Service Fund Accounts "fixed"
shall be "unfixed" and the appropriate amounts returned to the Salary
Deduction Fund Account and the corresponding County Contribution Fund Account.
(8) Refunds. Beginning immediately, there shall be no in-service
distribution of a "no spouse" refund. Such distribution, if any, shall be
made as otherwise provided. Likewise, there shall be no other refund
of deductions after fixed or excess cost. Any "no spouse" refund must be repaid with
interest at the effective rate before a spouse annuity is payable.
(9) Re-entry into service. Beginning January 1, 1988, for any re-entry
into service after age 65, the employee's money purchase annuity and the
widow's money purchase annuity may be recomputed if it is more beneficial to do so.
(10) Computation. Benefits using accruals after age 65 will begin to be
computed January 1, 1988. No benefits will be recomputed for any annuitant
who has withdrawn before January 1, 1988.
(11) Participation. Effective immediately, this Article shall apply
to all persons eligible to participate regardless of age. Beginning
immediately all eligible persons previously excluded from participation in
the fund either voluntarily or involuntarily, shall be enrolled as
participants and contributions shall begin and continue during the term of service.
(Source: P.A. 86-272.)
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(40 ILCS 5/9-121.10) (from Ch. 108 1/2, par. 9-121.10)
Sec. 9-121.10. Transfer to Article 14.
(a) Any active member of the State Employees'
Retirement System who is a State policeman, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, investigator for the Illinois Gaming Board, arson investigator, investigator for the Secretary of State, or conservation police officer may apply for transfer of some
or all of his creditable service as a member of the County Police
Department, a county corrections officer, or a court services officer accumulated under this Article to the State Employees'
Retirement System in accordance with Section 14-110. At the time of the transfer the Fund shall pay to the
State Employees' Retirement System an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) the corresponding municipality credits, including | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in this Fund with respect to the credits transferred shall
terminate on the date of transfer.
(b) Any person applying to transfer service under this Section
may reinstate credit for service as a member of the County Police
Department that was terminated by receipt of a refund, by paying to the
Fund the amount of the refund with interest thereon at the actuarially assumed rate of interest, compounded annually, from the date of refund to the date of payment.
(Source: P.A. 102-856, eff. 1-1-23.)
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(40 ILCS 5/9-121.11) (from Ch. 108 1/2, par. 9-121.11)
Sec. 9-121.11.
Transfer of credit from Article 8 or 11.
Until March 1,
1993, an employee may transfer to this Fund up to a total of 10 years of
creditable service accumulated under Article 8 or 11 of this Code, upon
payment to this Fund of (1) the amount by which the employee and employer
contributions that would have been required if the employee had participated
in this Fund during the period for which credit is being transferred, plus
interest, exceeds the amount actually transferred from the Article 8 or 11
fund to this Fund, plus (2) interest on the amount determined under item
(1) at the rate of 6% per year, compounded annually, from the date of the
transfer to the date of payment.
(Source: P.A. 87-1265.)
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(40 ILCS 5/9-121.12) (from Ch. 108 1/2, par. 9-121.12)
Sec. 9-121.12.
Transfer to Article 18 system.
Any active member of the
Judges Retirement System who is eligible to transfer service credit to that
System from this Fund under subsection (g) of Section 18-112 may apply for
transfer of that service credit to the Judges Retirement System. The
credits and creditable service shall be transferred upon application, and
shall include payment by this Fund to the Judges Retirement System of:
(1) the amounts accumulated to the credit of the | ||
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(2) the corresponding employer credits computed and | ||
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Participation in this Fund as to the credits transferred under this
Section shall terminate on the date of transfer.
(Source: P.A. 87-1265.)
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(40 ILCS 5/9-121.13)
Sec. 9-121.13.
Transfer of Article 5
credits.
(a) An active participant in the Fund who was employed by the office of
the Cook County State's Attorney on January 1, 1995 may transfer to this Fund
credits and creditable service accumulated under the pension fund established
under Article 5 of this Code, as provided in Section 5-237, by submitting a
written application to the Fund and paying to the Fund the amount, if any,
by which the amount transferred to the Fund under Section 5-237 is less than
the amount of employee and employer contributions that would have been received
by the Fund if the service being transferred had been served as a participant
of this Fund, including interest at the rate of 6% per year, compounded
annually, from the date of the service to the date of payment.
(b) Until July 1, 1998, an active participant in the Fund who is a member
of the county police department may transfer to
this Fund credits and creditable service accumulated under the pension fund
established under Article 5 of this Code, as provided in Section 5-237, by
submitting a written application to the Fund and paying to the Fund the amount,
if any, by which the amount transferred to the Fund under Section 5-237 is less
than the amount of employee and employer contributions that would have been
received by the Fund if the service being transferred had been served as a
participant of this Fund, including interest at the rate of 6% per year,
compounded annually, from the date of the service to the date of payment.
(c) The applicant may elect to have the service transferred be deemed
service as a member of the county police department; if the applicant so
elects, the required payment shall be calculated on the basis of the rates
applicable to members of the county police department.
(Source: P.A. 89-136, eff. 7-14-95; 90-32, eff. 6-27-97.)
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(40 ILCS 5/9-121.15)
Sec. 9-121.15.
Transfer of credit from Article 14 system.
A current or
former employee shall be entitled to service credit in the Fund
for any creditable service transferred to this Fund from the State Employees'
Retirement System under Section 14-105.7 of this Code. Credit under this Fund
shall be granted upon receipt by the Fund of the amounts required to be
transferred under Section 14-105.7; no additional contribution is necessary.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-121.16)
Sec. 9-121.16.
Contractual service to the Retirement Board.
A person who
has rendered continuous contractual services (other than legal or actuarial
services) to
the Retirement Board for a period of at least 5 years may establish creditable
service in the Fund for up to 10 years of those services by making written
application to the Board before July 1, 2003 and paying to the Fund an amount
to be determined by the Board, equal to the employee contributions that would
have been required if those services had been performed as an employee.
For the purposes of calculating the required payment, the Board may determine
the applicable salary equivalent based on the compensation received by the
person for performing those contractual services. The salary equivalent
calculated under this Section shall not be used for determining final average
salary under Section 9-134 or any other provisions of this Code.
A person may not make optional contributions under Section 9-121.6 or
9-179.3 for periods of credit established under this Section.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-121.17) Sec. 9-121.17. Transfer from Article 3. Until 6 months after the effective date, an employee may transfer to this Fund up to 6 years of creditable service accumulated under Article 3 of this Code, upon payment to this Fund of (1) the amount by which the employee and employer contributions that would have been required if the employee had participated in this Fund during the period for which credit is being transferred, plus interest, exceeds the amount actually transferred from the Article 3 fund to this Fund, plus (2) interest on the amount determined under item (1) at the rate of 6% per year, compounded annually, from the date of the transfer to the date of payment.
(Source: P.A. 95-504, eff. 8-28-07.) |
(40 ILCS 5/9-121.18) Sec. 9-121.18. Transfer to Article 5. (a) Any active member of Article 5 of this Code may apply for transfer of some or all of his creditable service as a correctional officer with the county department of corrections accumulated under this Article to the Article 5 Fund in accordance with paragraph (b) of Section 5-234. At the time of the transfer the Fund shall pay to the Article 5 Fund an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) the corresponding employer credits, including | ||
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(3) any interest paid by the applicant in order to | ||
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Participation in this Fund with respect to the credits transferred shall terminate on the date of transfer. (b) Any person applying to transfer service under this Section may reinstate credit for service as a member of the county department of corrections that was terminated by receipt of a refund, by paying to the Fund the amount of the refund with interest thereon at the actuarially assumed rate, compounded annually, from the date of refund to the date of payment.
(Source: P.A. 96-727, eff. 8-25-09.) |
(40 ILCS 5/9-122) (from Ch. 108 1/2, par. 9-122)
Sec. 9-122.
Time of fixing annuities-Waiver.
No annuity or disability benefit shall be fixed, granted, or paid under
this Article before the effective date.
Any employee annuitant or widow annuitant may execute a waiver of his or
her right to receive any part of his or her total annuity. A waiver shall
take effect upon its being filed with the board. A waiver may not be
revoked after it is executed and filed, except within the first 30 days
after being filed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-123) (from Ch. 108 1/2, par. 9-123)
Sec. 9-123.
Prior service annuities-When due.
A "Prior Service Annuity" shall be credited to present employees in
accordance with "The 1925 Act" for service rendered prior to the
effective date.
Each such credit shall be improved by interest at the effective rate
during the time the employee is in service until his annuity is fixed. In
determining such credit, the employee's annual salary for his entire period
of prior service shall be the salary in effect on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-124) (from Ch. 108 1/2, par. 9-124)
Sec. 9-124.
Age and service annuity.
An "Age and Service Annuity" shall be credited employees for
contributing service rendered after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-125) (from Ch. 108 1/2, par. 9-125)
Sec. 9-125.
Annuities - Present employees and future entrants
attaining age 65 in service.
(a) A present employee who attains age 65 or more in service, having
age and service and prior service annuity credits sufficient to provide
an annuity as of age 65 equal to the amount he would have had if employee
contributions and county contributions had been made in
accordance with this Article during his entire term of service until age
65 shall be entitled upon withdrawal to an annuity from the sum
accumulated for age and service annuity and the applicable credits for
prior service annuity.
(b) A present employee who attains age 65 or more in service, and
who does not have the credits described in paragraph (a), shall be
entitled on the date of withdrawal, based upon the assumption that his
age is then 65, to an annuity based on the sum accumulated for age and
service annuity and the applicable credits for prior service annuity.
(c) A future entrant who attains age 65 in service shall be
entitled, upon withdrawal, to age and service annuity provided from the
sum accumulated for such annuity at such age.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-126) (from Ch. 108 1/2, par. 9-126)
Sec. 9-126.
Annuities-Present employees and future entrants-Withdrawal after age 60
and prior to 65.
An employee who attains age 60 or more but less than age 65 in service,
upon withdrawal, shall be entitled to annuity as follows:
1. Present Employee--Age and service and prior service annuities
provided from the total sum accumulated to his credit for such annuities on
the date of withdrawal, computed as of his age on such date of withdrawal.
2. Future Entrant--Age and service annuity provided from the total sum
accumulated to his credit for such annuity on the date of withdrawal,
computed as of his age on such date of withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-127) (from Ch. 108 1/2, par. 9-127)
Sec. 9-127.
Annuities - Present employees and future
entrants - Withdrawal after age 50 and prior to age 60.
An employee who (i) withdraws prior to January 1, 1988,
having attained age 55 or more but less than age 60 in
service and having 10 or more years of service at date of withdrawal, or (ii)
beginning January 1, 1988, attains age 50 in the service and withdraws
before age 60 with at least 10 years of creditable service, shall
be entitled to annuity, from the date of withdrawal, as follows:
1. Present employee and future entrant with 20 or more years of
service - Age and service annuity provided from the total sum accumulated
to his credit from employee contributions and county contributions for
such annuity, and, for a present employee, prior service annuity from
the total sum accumulated to his credit for such annuity.
2. Present employee and future entrant with 10 or more but less than
20 years of service - Age and service annuity provided from the total sum
accumulated to his credit for such annuity from employee contributions,
plus 1/10 of the corresponding credits accumulated for such annuity from
county contributions for each year of service after the first 10 years;
and, in addition in the case of a present employee, the total sum
accumulated to his credit for prior service annuity on account of
employee contributions to any county pension fund in operation in the
county on the effective date, and 1/10 of prior service annuity
accumulated to his credit under "The 1925 Act" and this Article, for
each year of service after the first 10 years.
Any such annuity shall be computed as of the employee's age on the
date of withdrawal.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-128) (from Ch. 108 1/2, par. 9-128)
Sec. 9-128.
Annuities - Present employees and future
entrants - Withdrawal before age 50. An employee who, prior to January 1,
1988, withdraws after 10 years of service before age 55 and
attains age 55 while out of service shall be entitled to annuity after
attainment of age 55. An employee with at least 10 years of creditable
service who withdraws from service on or after January 1, 1988 at less than
age 50 shall be entitled to annuity upon attaining age 50. Such annuities
shall be calculated as follows:
1. Present employee and future entrant with 20 or more years of
service - Age and service annuity provided from the total sum accumulated to
his credit from employee contributions and county contributions for such
annuity, and, in addition in the case of a present employee, prior service
annuity from the sum accumulated to his credit for such annuity.
2. Present employee and future entrant with 10 or more but less than 20
years of service - Age and service annuity provided from total sum
accumulated to his credit for such annuities from employee contributions,
plus 1/10 of the county contributions accumulated to his credit for each
year of service after the first 10 years; and, in addition, in the case of
a present employee, credits for prior service annuity on account of
employee contributions to any county pension fund in operation in the
county on the effective date, and 1/10 of the prior service annuity
accumulated to his credit under "The 1925 Act" and this Article, for each
year of service after the first 10 years.
Any such annuity shall be computed as though the employee were age 50
when the annuity was granted (age 55 for employees withdrawing before
January 1, 1988), regardless of his actual age at the time of application for
annuity. An employee shall not be entitled to annuity for any period
between the date he attained age 50 (age 55 for employees withdrawing
before January 1, 1988) and the date of application for annuity.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-128.1) (from Ch. 108 1/2, par. 9-128.1)
Sec. 9-128.1.
Annuities for members of the County Police Department.
(a) In lieu of the regular or minimum annuity or annuities for any deputy
sheriff who is a member of a County Police Department, he may, upon withdrawal
from service after not less than 20 years of service in the position of
deputy sheriff as defined below, upon
or after attainment of age 55, receive a total annuity equal to 2% for each
year of service based upon his highest average annual salary for any 4
consecutive years within the last 10 years of service immediately
preceding the date of withdrawal from service, subject to a maximum
annuity equal to 75% of such average annual salary.
(b) Any deputy sheriff who withdraws from the service after July 1, 1979,
after having attained age 53 in the service with 23 or more years of service
credit shall be entitled to an annuity computed as follows if such annuity
is greater than that provided in the foregoing paragraphs of this Section
9-128.1: An annuity equal to 50% of the average salary for the 4 highest
consecutive years of the last 10 years of service plus additional annuity
equal to 2% of such average salary for each completed year of service or
fraction thereof rendered after his attainment of age 53 and the completion
of 23 years of service, plus an additional annuity equal to 1% of such
average salary for each completed year of service or fraction thereof in
excess of 23 years up to age 53.
(c) Any deputy sheriff who withdraws from the service after December 31,
1987 with 20 or more years of service credit, shall be entitled, upon
attainment of age 50, to an annuity computed as follows if such annuity is
greater than that provided in the foregoing paragraphs of this Section
9-128.1: An annuity equal to 50% of the average salary for the 4 highest
consecutive years of the last 10 years of service, plus additional annuity
equal to 2% of such average salary for each completed year of service or
fraction thereof in excess of 20 years.
(d) A deputy sheriff who reaches compulsory retirement age and who has less
than 23 years of service shall be entitled to a minimum annuity equal to
an amount determined by the product of (1) his years of service and (2)
2% of his average salary for the 4 consecutive highest years of salary within
the last 10 years of service immediately prior to his reaching compulsory
retirement age.
(e) Any deputy sheriff who retires after January 1, 1984 and elects to
receive an annuity under this Section, and who has credits under this
Article for service not as a deputy sheriff, shall be entitled to receive,
in addition to the amount of annuity otherwise provided under this Section,
an additional amount of annuity provided from the totals accumulated to his
credit for prior service and age and service annuities for such service not
as a deputy sheriff.
(f) The term "deputy sheriff" means an employee charged with the duty of
law enforcement as a deputy sheriff as specified in Section 1 of "An Act
in relation to County Police Departments in certain Counties, creating a
County Police Department Merit Board and defining its powers and
duties", approved August 5, 1963, who rendered service in such position
before and after such date.
The terms "deputy sheriff" and "member of a County Police Department"
shall also include an elected sheriff of the county who has elected to become
a contributor and who has submitted to the board his written election to
be included within the provisions of this Section. With respect to any
such sheriff, service as the elected sheriff of the county shall be deemed
to be service in the position of deputy sheriff for the purposes of this
Section provided that the employee contributions therefor are made at the
rate prescribed for members of the County Police Department. A sheriff
electing to be included under this Section may also elect to have his service
as sheriff of the county before the date of such election included as service
as a deputy sheriff for the purposes of this Section, by making an additional
contribution for each year of such service, equal to the difference between
the amount he would have contributed to the Fund during such year had he
been contributing at the rate then in effect for members of the County Police
Department and the amount actually contributed, plus interest thereon at
the rate of 6% per annum from the end of such year to the date of payment.
(g) In no case shall an annual annuity provided in this Section 9-128.1
exceed 80% of the average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the date of withdrawal from
service.
A deputy sheriff may in addition, be entitled to the benefits provided by
Section 9-133 or 9-133.1 if he so qualifies under such Sections.
(h) A deputy sheriff may elect, between January 1 and January 15, 1983, to
transfer his creditable service as a member of the State Employees' Retirement
System of Illinois to any Fund established under this Article of which he
is a member, and such transferred creditable service shall be included as
service for the purpose of calculating his benefits under this Article to
the extent that the payment specified in Section 14-105.3 has been received
by such Fund.
(i) An active deputy sheriff who has at least 15 years of service
credit in that capacity may elect to have any or all of his credits under
this Article for service not as a deputy sheriff deemed to be credits for
service as a deputy sheriff, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the Board, equal to
(1) the difference between the amount of employee contributions actually
contributed by the applicant for such service not as a deputy sheriff, and
the amounts that would have been contributed had such contributions been
made at the rates applicable to service as a deputy sheriff, plus (2)
interest thereon at the rate of 3% per annum, compounded annually, from the
date of service to the date of payment.
(j) Beginning on the effective date of this amendatory Act of 1996, the
terms "deputy sheriff" and "member of a County Police Department" shall also
include any chief of the County Police Department or undersheriff of the
County Sheriff's Department who has submitted to the board his or her written
election to be included within the provisions of this Section. With respect to
any such police chief or undersheriff, service as a chief of the County Police
Department or an undersheriff of the County Sheriff's Department shall be
deemed to be service in the position of deputy sheriff for the purposes of this
Section, provided that the employee contributions therefor are made at the rate
prescribed for members of the County Police Department.
A chief of the County Police Department or undersheriff of the County
Sheriff's Department electing to be
included under this Section may also elect to have his or her service as chief
of the County Police Department or undersheriff of the County Sheriff's
Department before the date of the election included as service as a deputy
sheriff for the purposes of this Section, by making an additional contribution
for each year of such service, equal to the difference between the amount that
he or she would have contributed to the Fund during that year at the rate then
in effect for members of the County Police Department and the amount actually
contributed, plus interest thereon at the rate of 6% per year, compounded
annually, from the end of that year to the date of payment.
A chief of the County Police Department or undersheriff of the County
Sheriff's Department who has elected to be included within the provisions of
this Section may transfer to this Fund credits and creditable service
accumulated under any pension fund or retirement system established under
Article 3, 7, 8, 14, or 15, upon payment to the Fund of (1) the amount by which
the employee contributions that would have been required if he or she had
participated in this Fund during the period for which credit is being
transferred, plus interest, plus an equal amount for employer
contributions, exceeds the amounts actually transferred from that other fund or
system to this Fund, plus (2) interest thereon at 6% per year, compounded
annually, from the date of transfer to the date of payment.
A chief of the County Police Department or undersheriff of the County
Sheriff's Department may purchase credits and creditable service for up to 2
years of public employment rendered to an out-of-state public agency. Payment
for that service shall be at the applicable rates in effect for employee and
employer contributions during the period for which credit is being purchased,
plus interest at the rate of 6% per year, compounded annually, from the date of
service until the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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(40 ILCS 5/9-128.2) Sec. 9-128.2. Stipends. Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate.
(Source: P.A. 96-961, eff. 7-2-10.) |
(40 ILCS 5/9-129) (from Ch. 108 1/2, par. 9-129)
Sec. 9-129.
Annuities-Re-entry into service.
Annuity in excess of that fixed in Sections 9-126, 9-127 or 9-128
shall not be granted to any employee described therein, unless he
re-entered service before age 65. If such re-entry occurs, his annuity
shall be provided in accordance with Sections 9-125 to 9-128, inclusive,
whichever are applicable.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-130) (from Ch. 108 1/2, par. 9-130)
Sec. 9-130.
Service after time of fixing annuity.
Service rendered after the time of fixing an annuity shall not be
considered for age and service annuity and for prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-131) (from Ch. 108 1/2, par. 9-131)
Sec. 9-131.
Prior service annuity credits.
(a) The sum to be credited for prior service annuity in the case of
any present employee described in subdivision (a) of Section 9-109
shall be the entire sum credited for such purposes.
(b) The sum to be credited for prior service annuity in the case of
any present employee described in subdivision (b) of Section 9-109
shall be the sum credited for such purpose less the excess which would
have accumulated under this Article from contributions by the employee
after he attained age 65 if such contributions had been made from the
effective date to the date of withdrawal with interest at the effective
rate to the date of his withdrawal, over the amounts actually
contributed for such purpose with like interest computed to such date of
withdrawal; provided that the sum so computed shall be less than the sum
credited for prior service annuity under the foregoing provisions of
this Article. If the sum so computed shall be equal to or greater than
the sum credited for prior service annuity as aforesaid, such employee
shall not be entitled to prior service annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-132) (from Ch. 108 1/2, par. 9-132)
Sec. 9-132.
Minimum annuity.
A present employee who was a contributor to a county pension fund in
operation on the effective date who withdraws on or after such date having
20 or more years of service and for whom the amount of annuity provided by
this Article is less than the amount stated in this section has a right to
receive annuity as follows:
(a) $600 a year after the date of withdrawal if he is | ||
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(b) $600 a year after the date he becomes age 55 if | ||
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In addition to the combined age and service and prior service annuities
to which a present employee is entitled, an employee with 24 or more years
of service who has attained age 65 or more at the time he withdraws is
entitled to receive a sum equal to the difference between the combined age
and service annuity and prior service annuity, and 1/3 of his salary at the
date of his withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
Sec. 9-133. Automatic increase in annuity.
(a) An employee who retired or retires from service after December 31, 1959,
having attained age 60 or more or, beginning January 1, 1991, having attained
30 or more years of creditable service, shall, in the month of January of the
year following the year in which the first anniversary of retirement occurs,
have his then fixed and payable monthly annuity increased by 1 1/2%, and such
first fixed annuity as granted at retirement increased by a further 1 1/2% in
January of each year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
Beginning with January of the year 1982, such increases shall be at the rate
of 3% in lieu of the aforesaid specified 2%. Beginning January 1, 1998,
these increases shall be at the rate of 3% of the current amount of the
annuity, including any previous increases received under this Article,
without regard to whether the annuitant is in service on or after the
effective date of this amendatory Act of 1997.
An employee who retires on
annuity before age 60 and, beginning January 1, 1991, with less than 30 years
of creditable service shall receive such increases beginning with January of
the year immediately following the year in which he attains the age of 60
years. An employee who retires on annuity before age 60 and before January 1,
1991, with at least 30 years of creditable service, shall be entitled to
receive the first increase under this subsection no later than January 1, 1993.
For an employee who, in accordance with the provisions of Section
9-108.1 of this Act, shall have become a member of the State System
established under Article 14 on February 1, 1974, the first such
automatic increase shall begin in January of 1975.
(b) Subsection (a) is not applicable to an employee retiring and receiving a
term annuity, as defined in this Act, nor to any otherwise qualified employee
who retires before he makes employee contributions (at the 1/2 of 1% rate as
provided in this Section) for this additional annuity for not less than the
equivalent of one full year. Such employee, however, shall make arrangement to
pay to the fund a balance of such contributions, based on his final salary, as
will bring such 1/2 of 1% contributions, computed without interest, to the
equivalent of one year's contributions.
Beginning with the month of January, 1960, each employee shall
contribute by means of salary deductions 1/2 of 1% of each salary
payment, concurrently with and in addition to the employee contributions
otherwise provided for annuity purposes.
Each such additional contribution shall be used, together with county
contributions, to defray the cost of the specified annuity increments.
Such additional employee contributions are not refundable, except to
an employee who withdraws and applies for refund under this Article, or
applies for annuity, and also in cases where a term annuity becomes
payable. In such cases his contributions shall be refunded, without
interest.
(Source: P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
Sec. 9-133.1. Automatic increases in annuity for certain heretofore retired
participants. A retired employee retired at age 55 or over and who (a) is
receiving annuity based on a service credit of 20 or more years, and (b) does
not qualify for the automatic increases in annuity provided for in Sec. 9-133
of this Article, and (c) elects to make a contribution to the Fund at a
time and manner prescribed by the Retirement Board, of a sum equal to 1% of
the final average monthly salary forming the basis of the calculation of
their annuity multiplied by years of credited service, or 1% of their final
monthly salary multiplied by years of credited service in any case where
the final average salary is not used in the calculation, shall have his
original fixed and payable monthly amount of annuity increased in January
of the year following the year in which he attains the age of 65 years, if
such age of 65 years is attained in the year 1969 or later, by an amount
equal to 1 1/2%, and by an equal additional 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
with January of the year 1982, such increases shall be at the rate of 3%
in lieu of the aforesaid specified 2%. Beginning January 1, 1998,
these increases shall be at the rate of 3% of the current amount of the
annuity, including any previous increases received under this Article,
without regard to whether the annuitant is in service on or after the
effective date of this amendatory Act of 1997.
In those cases in which the retired employee receiving annuity has
attained the age of 66 or more years in the year 1969, he shall have such
annuity increased in January of the year 1970 by an amount equal to 1 1/2%
multiplied by the number equal to the number of months of January elapsing
from and including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65, or from and
including January of the year immediately following the year of retirement
if retired at an age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
with January of the year 1982, such increases shall be at the rate of 3%
in lieu of the aforesaid specified 2%. Beginning January 1, 1998,
these increases shall be at the rate of 3% of the current amount of the
annuity, including any previous increases received under this Article,
without regard to whether the annuitant is in service on or after the
effective date of this amendatory Act of 1997.
To defray the annual cost of such increases, the annual interest income
of the Fund, accruing from investments held by the Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over and above
4% a year, shall be used to the extent necessary and available to finance
the cost of such increases for the following year.
(Source: P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
Sec. 9-134.
Minimum annuity - Additional provisions.
(a) An employee who withdraws after July 1, 1957 at age 60 or more with
20 or more years of service, for whom the amount of age and service and
prior service annuity combined is less than the amount stated in this
Section from the date of withdrawal, instead of all annuities otherwise
provided in this Article, is entitled to receive an annuity for life of an
amount equal to 1 2/3% for each year of service, of his highest average
annual salary for any 5 consecutive years within the last 10 years of
service immediately preceding the date of withdrawal; provided that in the
case of any employee who withdraws on or after July 1, 1971, such employee
age 60 or over with 20 or more years of service, or who withdraws on or
after January 1, 1982 and on or after attainment of age 65 with 10 or more
years of service, shall instead receive an annuity for life equal to 1.67%
for each of the first 10 years of service; 1.90% for each of the next 10
years of service; 2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year of service in excess of 30, based on
the highest average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957, but prior to January 1,
1988, with 20 or more years of service, before age 60 is entitled to
annuity, to begin not earlier than age 55, if under such age at withdrawal,
as computed in the last preceding paragraph, reduced 1/2 of 1% for each
full month or fractional part thereof that his attained age when annuity is
to begin is less than 60 to the end that the total reduction at age 55
shall be 30%, except that an employee retiring at age 55 or over but less
than age 60, having at least 35 years of service, shall not be subject to
the reduction in his retirement annuity because of retirement below age 60.
An employee who withdraws on or after January 1, 1988, with 20 or more
years of service and before age 60, is entitled to annuity as computed
above, to begin not earlier than age 50 if under such age at withdrawal,
reduced 1/2 of 1% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60, to the end that the
total reduction at age 50 shall be 60%, except that an employee retiring at
age 50 or over but less than age 60, having at least 30 years of service,
shall not be subject to the reduction in retirement annuity because of
retirement below age 60.
An employee who withdraws on or after January 1, 1992 but before
January 1, 1993, at age 60 or over with 5 or more years of service, may
elect, in lieu of any other employee annuity provided in this Section, to
receive an annuity for life equal to 2.20% for each of the first 20 years
of service, and 2.40% for each year of service in excess of 20, based on the
highest average annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of withdrawal. An
employee who withdraws on or after January 1, 1992, but before January 1,
1993, on or after attainment of age 55 but before attainment of age 60 with
5 or more years of service, is entitled to elect such annuity, but the
annuity shall be reduced 0.25% for each full month or fractional part
thereof that his attained age when the annuity is to begin is less than age
60, to the end that the total reduction at age 55 shall be 15%, except that
an employee retiring at age 55 or over but less than age 60, having at
least 30 years of service, shall not be subject to the reduction in
retirement annuity because of retirement below age 60. This annuity benefit
formula shall only apply to those employees who are age 55 or over prior to
January 1, 1993, and who elect to withdraw at age 55 or over on or after
January 1, 1992 but before January 1, 1993.
An employee who withdraws on or after July 1, 1996 but before
August 1, 1996, at age 55 or over with 8 or more years of service, may
elect, in lieu of any other employee annuity provided in this Section, to
receive an annuity for life equal to 2.20% for each of the first 20 years
of service, and 2.40% for each year of service in excess of 20, based on the
highest average annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of withdrawal, but the
annuity shall be reduced by 0.25% for each full month or fractional part
thereof that the annuitant's attained age when the annuity is to begin is
less than age 60, unless the annuitant has at least 30 years of service.
The maximum annuity under this paragraph (a) shall not exceed 70% of
highest average annual salary for any 5 consecutive years within the last
10 years of service in the case of an employee who withdraws prior to July
1, 1971, and 75% of the highest average annual salary for any 4 consecutive
years within the last 10 years of service immediately preceding the date of
withdrawal if withdrawal takes place on or after July 1, 1971 and prior
to January 1, 1988, and 80% of the highest average annual salary for any 4
consecutive years within the last 10 years of service immediately preceding
the date of withdrawal if withdrawal takes place on or after January 1,
1988. Fifteen hundred dollars shall be considered the minimum amount of
annual salary for any year, and the maximum shall be his salary as defined
in this Article, except that for the years before 1957 and subsequent to
1952 the maximum annual salary to be considered shall be $6,000, and for
any year before the year 1953, $4,800.
(b) Any employee who withdraws on or after July 1, 1985 but prior to
January 1, 1988, at age 60 or over with 10 or more years of service, may
elect in lieu of the benefit in paragraph (a) to receive an annuity for
life equal to 2.00% for each year of service, based on the highest average
annual salary for any 4 consecutive years within the last 10 years of
service immediately preceding the date of withdrawal. An employee who
withdraws on or after July 1, 1985, but prior to January 1, 1988, with 10
or more years of service, but before age 60, is entitled to elect such
annuity, to begin not earlier than age 55, but the annuity shall be reduced
0.5% for each full month or fractional part thereof that his attained age
when the annuity is to begin is less than 60, to the end that the total
reduction at age 55 shall be 30%; except that an employee retiring at age
55 or over but less than age 60, having at least 30 years of service, shall
not be subject to the reduction in retirement annuity because of retirement
below age 60.
An employee who withdraws on or after January 1, 1988, at age 60 or
over with 10 or more years of service, may elect, in lieu of the benefit in
paragraph (a), to receive an annuity for life equal to 2.20% for each of the
first 20 years of service, and 2.4% for each year of service in excess of 20,
based on the highest average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the date of withdrawal.
An employee who withdraws on or after January 1, 1988, with 10 or more
years of service, but before age 60, is entitled to elect such annuity, to
begin not earlier than age 50, but the annuity shall be reduced 0.5% for
each full month or fractional part thereof that his attained age when the
annuity is to begin is less than 60, to the end that the total reduction at
age 50 shall be 60%, except that an employee retiring at age 50 or over
but less than age 60, having at least 30 years of service, shall not be
subject to the reduction in retirement annuity because of retirement below
age 60.
An employee who withdraws on or after June 30, 2002 with 10 or more
years of service may elect, in lieu of any other retirement annuity provided
under this Article, to receive an annuity for life, beginning no earlier than
upon attainment of age 50, equal to 2.40% of his or her highest average annual
salary for any 4 consecutive years within the last 10 years of service
immediately preceding withdrawal, for each year of service. If the employee
has less than 30 years of service, the annuity shall be reduced by 0.5% for
each full month or remaining fraction thereof that the employee's attained age
when the annuity is to begin is less than 60.
The maximum annuity under this paragraph (b) shall not exceed 75% of the
highest average annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of withdrawal if
withdrawal occurs prior to January 1, 1988, or 80% of the highest average
annual salary for any 4 consecutive years within the last 10 years of
service immediately preceding the date of withdrawal if withdrawal takes
place on or after January 1, 1988.
The provisions of this paragraph (b) do not apply to any former County
employee receiving an annuity from the fund, who re-enters service as a
County employee, unless he renders at least 3 years of additional service
after the date of re-entry.
(c) For an employee receiving disability benefit, the salary for annuity
purposes under paragraph (a) or (b) of this Section shall, for all periods of
disability benefit subsequent to the year 1956, be the amount on which his
disability benefit was based.
(d) A county employee with 20 or more years of service, whose entire
disability benefit credit period expires before attainment of age 50
(age 55 if expiration occurs before January 1, 1988), while
still disabled for service is entitled upon withdrawal to the larger of:
(1) The minimum annuity provided above, assuming that | ||
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(2) the annuity provided from his age and service and | ||
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(e) The minimum annuity provisions above do not apply to any former
county employee receiving an annuity from the fund, who re-enters service
as a county employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(f) Any employee in service on July 1, 1947, or who enters service
thereafter before attaining age 65 and withdraws after age 65 with less
than 10 years of service for whom the annuity has been fixed under the
foregoing Sections of this Article, shall, instead of the annuity so fixed,
receive an annuity as follows:
Such amount as he could have received had the accumulated amounts for
annuity been improved with interest at the effective rate to the date of
withdrawal, or to attainment of age 70, whichever is earlier, and had the
county contributed to such earlier date for age and service annuity the
amount that it would have contributed had he been under age 65, after the
date his annuity was fixed in accordance with this Article, and assuming
his annuity were computed from such accumulations as of his age on such
earlier date. However those employees who before July 1, 1953, made
additional contributions in accordance with this Article, the annuity so
computed under this paragraph shall not exceed the annuity which would be
payable under the other provisions of this Section if the employee
concerned was credited with 20 years of service and would qualify for
annuity thereunder.
(g) Instead of the annuity provided in this or any other Section of this
Article, an employee having attained age 65 with at least 15 years of
service may elect to receive a minimum annual annuity for life equal to 1%
of the highest average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding retirement for each year of
service, plus the sum of $25 for each year of service provided that no such
minimum annual annuity may be greater than 60% of such highest average
annual salary.
(h) The annuity is payable in equal monthly installments.
(i) If, by operation of law, a function of a governmental unit, as
defined by Section 20-107 of this Code, is transferred in whole or in part
to the county in which this Article 9 is created as set forth in Section
9-101, and employees of the governmental unit are transferred as a class to
such county, the earnings credits in the retirement system covering the
governmental unit which have been validated under Section 20-109 of this
Code shall be considered in determining the highest average annual salary
for purposes of this Section 9-134.
(j) The annuity being paid to an employee annuitant on July 1, 1988,
shall be increased on that date by 1% for each full year that has elapsed
from the date the annuity began.
(k) Notwithstanding anything to the contrary in this Article 9, Section
20-131 shall not apply to an employee who withdraws on or after January 1,
1988, but prior to attaining age 55. Therefore, no employee shall be
entitled to elect to have the alternative formula previously set forth in
Section 20-122 prior to the amendatory Act of 1975 apply to any annuity,
the payment of which commenced after January 1, 1988, but prior to such
employee's attainment of age 55.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-134.1) (from Ch. 108 1/2, par. 9-134.1)
Sec. 9-134.1.
Preservation of minimum annuity rights for certain house of
correction employees and their widows.
In the case of employees who were contributors to and participants as of
December 31, 1968, in a House of Correction Employees' Pension Fund, who,
by virtue of group transfer on January 1, 1969 became participants in
Municipal Employees' Annuity and Benefit Fund under Article 8 of this Code,
and who, because of further group or class transfer become participants in
the Fund created under Article 9 of this Code, Section 8-136.2 of this Code
preserving certain minimum annuity rights for certain house of correction
employees and their widows is made applicable to such employees so
transferred to this Fund, and such Section is made part of this Article 9
so that such transferred employees are guaranteed such rights under the
Fund created by this Article 9 of the Illinois Pension Code as outlined in
Section 8-136.2 of this Code.
(Source: P.A. 76-1574.)
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(40 ILCS 5/9-134.2) (from Ch. 108 1/2, par. 9-134.2)
Sec. 9-134.2.
Early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person must:
(1) be a current contributing member of this Fund | ||
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(2) have not previously retired under this Article;
(3) file with the Board before May 1, 1993, a written | ||
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(4) elect to retire under this Section on or after | ||
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(5) have attained age 55 on or before the date of | ||
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(6) have at least 10 years of creditable service | ||
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(b) An employee who qualifies for the benefits provided under this
Section shall be entitled to the following:
(1) The employee's retirement annuity, as calculated | ||
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(2) If the employee's retirement annuity is | ||
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(c) In the case of an employee whose immediate retirement could
jeopardize public safety or create hardship for the employer, the deadline
for retirement provided in subdivision (a)(4) of this Section may be
extended to a specified date, no later than November 30, 1993, by the
employee's department head, with the approval of the President of the
County Board. In the case of an employee who is not employed by a
department of the County, the employee's "department head", for the
purposes of this Section, shall be a person designated by the President of
the County Board.
(d) Notwithstanding Section 9-161, an annuitant who reenters service
under this Article after receiving a retirement annuity based on benefits
provided under this Section thereby forfeits the right to continue to
receive those benefits, and shall have his or her retirement annuity
recalculated without the benefits provided in this Section.
(Source: P.A. 87-1130.)
|
(40 ILCS 5/9-134.3)
Sec. 9-134.3.
Early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person must:
(1) be a current contributing member of the Fund | ||
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(2) have not previously retired from the Fund, except | ||
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(3) file with the Board before October 1, 1997 (or | ||
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(4) elect to retire under this Section on or after | ||
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(5) have attained age 55 on or before the date of | ||
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(6) have at least 10 years of creditable service in | ||
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(b) An employee who qualifies for the benefits provided under this Section
shall be entitled to the following:
(1) The employee's retirement annuity, as calculated | ||
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(2) If the employee's retirement annuity is | ||
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(c) A person who elects to retire under the provisions of this Section
thereby relinquishes his or her right, if any, to have the retirement
annuity calculated under the alternative formula formerly set forth in Section
20-122 of the Retirement Systems Reciprocal Act.
(d) In the case of an employee whose immediate retirement could jeopardize
public safety or create hardship for the employer, the deadline for retirement
provided in subdivision (a)(4) of this Section may be extended to a specified
date, no later than August 31, 1998, by the employee's department head, with
the approval of the President of the County Board. In the case of an employee
who is not employed by a department of the County, the employee's "department
head", for the purposes of this Section, shall be a person designated by the
President of the County Board.
(e) Notwithstanding Section 9-161, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits and shall have his or her retirement annuity recalculated without the
benefits provided in this Section.
(f) This Section also applies to the Fund established under
Article 10 of this Code.
(g) A person who (1) was a participating employee on November 30, 1996,
(2) was laid off on or after December 1, 1996 and before May 1, 1997 due to
the elimination of the employee's job or position, (3) meets the requirements
of items (3) through (6) of subsection (a), and (4) has not been reinstated
as a Cook County employee since being laid off is eligible for the benefits
provided under this Section. For such a person, the application required under
subdivision (a)(3) of this Section must be filed within 60 days after the
effective date of this amendatory Act of the 92nd General Assembly, and the
date of retirement must be within 60 days after the effective date of this
amendatory Act.
In the case of a person eligible under this subsection (g) who began to
receive a retirement annuity before the effective date of this amendatory Act,
the annuity shall be recalculated to include the increase under this Section,
and that increase shall take effect on the first annuity payment date following
the date of application.
(Source: P.A. 92-599, eff. 6-28-02.)
|
(40 ILCS 5/9-134.4)
Sec. 9-134.4.
Early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person must:
(1) be a current contributing member of the Fund | ||
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(2) have not previously retired from the Fund;
(3) file with the Board before March 1, 2003 a | ||
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(4) elect to retire under this Section on or after | ||
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(5) have attained age 50 on or before the date of | ||
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(6) have at least 20 years of creditable service in | ||
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(b) An employee who qualifies for the benefits provided under this Section
shall be entitled to the following:
(1) The employee's retirement annuity, as calculated | ||
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(2) If the employee's retirement annuity is | ||
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(c) A person who elects to retire under the provisions of this Section
thereby relinquishes his or her right, if any, to have the retirement
annuity calculated under the alternative formula formerly set forth in Section
20-122 of the Retirement Systems Reciprocal Act.
(d) In the case of an employee whose immediate retirement could jeopardize
public safety or create hardship for the employer, the deadline for retirement
provided in subdivision (a)(4) of this Section may be extended to a specified
date, no later than September 30, 2003, by the employee's department head, with
the approval of the President of the County Board. In the case of an employee
who is not employed by a department of the County, the employee's "department
head", for the purposes of this Section, shall be a person designated by the
President of the County Board.
(e) Notwithstanding Section 9-161, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits and shall have his or her retirement annuity recalculated without the
benefits provided in this Section.
(f) This Section also applies to the Fund established under Article 10 of
this Code.
(Source: P.A. 92-599, eff. 6-28-02.)
|
(40 ILCS 5/9-134.5) Sec. 9-134.5. Alternative retirement cancellation payment. (a) To be eligible for the alternative retirement cancellation payment provided in this Section, a person must: (1) be a member of this Fund who, on December 31, | ||
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(2) have not previously received any retirement | ||
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(3) file with the Board on or before 45 days after | ||
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(4) terminate employment under this Article no later | ||
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(5) if there is a QILDRO in effect against the | ||
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(b) In lieu of any retirement annuity or other benefit provided under this Article, a person who qualifies for and elects to receive the alternative retirement cancellation payment under this Section shall be entitled to receive a one-time lump sum retirement cancellation payment equal to the amount of his or her contributions to the Fund (including any employee contributions for optional service credit and including any employee contributions paid by the employer or credited to the employee during disability) on the date of termination, with regular interest, multiplied by 1.5. (c) Notwithstanding any other provision of this Article, a person who receives an alternative retirement cancellation payment under this Section thereby forfeits the right to any other retirement or disability benefit or refund under this Article, and no widow's, survivor's, or death benefit deriving from that person shall be payable under this Article. Upon accepting an alternative retirement cancellation payment under this Section, the person's creditable service and all other rights in the Fund are terminated for all purposes. (d) To the extent permitted by federal law, a person who receives an alternative retirement cancellation payment under this Section may direct the Fund to pay all or a portion of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (e) Notwithstanding any other provision of this Article, a person who has received an alternative retirement cancellation payment under this Section and who reenters service under this Article must first repay to the Fund the amount by which that alternative retirement cancellation payment exceeded the amount of his or her refundable employee contributions with interest at 6% per annum. For the purposes of re-establishing creditable service that was terminated upon election of the alternative retirement cancellation payment, the portion of the alternative retirement cancellation payment representing refundable employee contributions shall be deemed a refund repayable in accordance with Section 9-163. (f) No individual who receives an alternative retirement cancellation payment under this Section may return to active payroll status within 365 days after separation from service to the employer.
(Source: P.A. 95-369, eff. 8-23-07; 95-876, eff. 8-21-08.) |
(40 ILCS 5/9-135) (from Ch. 108 1/2, par. 9-135)
Sec. 9-135.
Reversionary annuity.
(a) An employee, prior to retirement on annuity, may elect to take a
lesser amount of annuity and provide, with the actuarial value of the
amount by which his annuity is reduced, a reversionary annuity for a wife,
husband, parent, child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to retirement, and may be
revoked by the employee at any time before retirement. The death of the
employee prior to his retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant prior to the
employee's retirement shall automatically void the option. If the
reversionary annuitant dies after the employee's retirement and before
the death of the employee annuitant, the
reduced annuity being paid to the retired employee annuitant shall be
increased to the amount of annuity before reduction for the reversionary
annuity and no reversionary annuity shall be payable.
The option is subject to the further condition that no reversionary
annuity shall be paid if the employee dies before the expiration of 730
days from the date his written designation was filed with the board, even
though he has retired and is receiving a reduced annuity.
(c) The employee exercising this option shall not reduce his retirement
annuity by more than $100 a month or by 25%, whichever is the lesser, or
elect to provide a reversionary annuity of less than $50 per month. After
July 1, 1981 the $100 limitation shall not apply. No
option shall be permitted if the reversionary annuity for a widow, when
added to the widow's annuity payable under this Article, exceeds 80% of the
reduced annuity payable to the employee.
(d) A reversionary annuity shall begin on the day following the death of
the employee annuitant, with the first payment to be made on the
first day of the calendar month following the death of the employee
annuitant and the last payment to be made on the first day of the calendar
month in which the reversionary annuitant dies.
(e) The increases in annuity provided in Section 9-133 of this Article
shall, as to an employee so electing a reduced annuity, relate to the
amount of the original annuity, and such amount shall constitute the
annuity on which such automatic increases shall be based.
(f) The amount of the monthly reversionary annuity shall be determined
by multiplying the amount of the monthly reduction in the employee's
annuity by the factor in the following table based on the age of the
employee and the difference in the age of the employee and the age of the
reversionary annuitant at the starting date of the employee's annuity:
Reversionary Annuitant's Age
in Years Younger than Employee
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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In Years Older than Employee
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(Source: P.A. 86-1488.)
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(40 ILCS 5/9-135.1) (from Ch. 108 1/2, par. 9-135.1)
Sec. 9-135.1.
Death benefit.
Upon the death of an employee in service
or while receiving a retirement annuity, a death benefit of $1,000 shall be
payable to such beneficiary as the member may have nominated by written
direction duly acknowledged and filed with the Board, or if there is no
such nomination, to the estate of the employee.
(Source: P.A. 87-794.)
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(40 ILCS 5/9-136) (from Ch. 108 1/2, par. 9-136)
Sec. 9-136.
Widow's prior service annuity.
A "Widow's Prior Service Annuity" shall be credited for the widow of a
male present employee for service prior to the effective date in accordance
with "The 1925 Act" and this Article, payable from and after the death of
the employee.
The amount so credited shall be improved by interest at the effective
rate during the time the employee is in the service or until the employee
attains age 65 or withdraws from the service, whichever event first occurs.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/9-137) (from Ch. 108 1/2, par. 9-137)
Sec. 9-137.
Widow's annuity.
A "Widow's Annuity" shall be credited for a widow of any male employee
covering service after the effective date, payable from and after his
death.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/9-138) (from Ch. 108 1/2, par. 9-138)
Sec. 9-138.
Widow's annuity-Present employee age 65 on effective date.
The widow of a present employee who is age 65 or more on the effective
date is entitled after his death to an annuity fixed as of the date he
becomes age 65.
The annuity shall be that provided on a reversionary annuity basis from
the credit for widow's prior service annuity on the effective date.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/9-139) (from Ch. 108 1/2, par. 9-139)
Sec. 9-139.
Widow's annuity-Present employees and future entrants attaining age 65 in
service.
The widow of a present employee who attains age 65 while in service
after the effective date, or of a future entrant who attains age 65 while
in service, is entitled, after the date of his death, to an annuity fixed
for the wife of such present employee or future entrant on the date he
attains age 65.
The widow is entitled to annuity as follows:
If the employee's withdrawal occurs after age 65 and he enters upon
annuity or if the employee's death occurs in the service after he has
attained age 65 the annuity shall be that provided on a reversionary
annuity basis from the total sum accumulated to his credit for widow's
annuity and (if he was a present employee) widow's prior service annuity as
of the date he became age 65.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-140) (from Ch. 108 1/2, par. 9-140)
Sec. 9-140.
Widow's annuity-Present employees and future entrants-Death in service
before 65.
The widow of an employee whose death occurs in service before age 65
shall be entitled to an annuity of the amount provided on a single life
annuity basis from the total sum accumulated to his credit as of the date
of death in service for age and service annuity and widow's annuity, plus
the credit for prior service annuity and widow's prior service annuity, if
he was a present employee; but no part thereof representing contributions
by the county shall be used to provide an annuity in excess of that which
she would have had if the employee had lived and remained in service at the
rate of his final salary until he became age 65, and the widow's annuity
were fixed on a reversionary annuity basis as provided in this Article. The
annuity shall be computed as of the date of the employee's death.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-141) (from Ch. 108 1/2, par. 9-141)
Sec. 9-141.
Widow's annuity-Present employees and future entrants-Withdrawal after
age 60 but before 65.
The widow of an employee who attains age 60 or more but less than age 65
while in service and who withdraws from service shall be entitled after his
death, to an annuity fixed on the date of withdrawal.
The annuity shall be the amount provided on a reversionary annuity basis
from the total sum accumulated to his credit for widow's annuity and (if he
was a present employee) widow's prior service annuity as of the date of
withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-142) (from Ch. 108 1/2, par. 9-142)
Sec. 9-142.
Widow's annuity - Present employees and future
entrants - Withdrawal after age 50 but before 60.
The widow of an employee who (1) attains age 50 or more (age
55 if withdrawal occurs before January 1, 1988) but less than
age 60 in service, and (2) has served 10 or more years, and (3) withdraws
from service, shall be entitled after the employee's death to an annuity
fixed as of the date of withdrawal.
The widow is entitled to receive the amount provided on a
reversionary annuity basis from the total sum accumulated to the
employee's credit on the date when the annuity was fixed as follows:
(1) If service is 20 or more years, the total credits for widow's
annuity and in addition, if he was a present employee, the total credits
for widow's prior service annuity; or
(2) If service is 10 or more, but less than 20 years, the total
credits for widow's annuity from employee contributions and 1/10 of the
total credits for widow's annuity from county contributions for each
year of service after the first 10 years, including for the widow of a
present employee 1/10 of the total credits for widow's prior service
annuity from county contributions for each year of service after the
first 10 years.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-143) (from Ch. 108 1/2, par. 9-143)
Sec. 9-143.
Widow's annuity - Present employees and future
entrants - Withdrawal before age 50.
The widow of an employee who withdraws after 10 or more years of
service before age 50 (age 55 if withdrawal occurs before January 1,
1988), and later attains such age while not in service,
shall be entitled after his death to an annuity fixed on the date the
employee attained such age.
The widow shall be entitled to the amount provided on a reversionary
annuity basis from the following sums accumulated to his credit on the
date when the annuity is fixed as follows:
(1) If service is 20 or more years, the total credits for widow's
annuity and, in addition, if he was a present employee, the total
credits for widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the total
credits for widow's annuity from employee contributions and 1/10 of the
total credits for widow's annuity from county contributions for each
year of service after the first 10 years, including, for the widow of a
present employee, 1/10 of the total credits for widow's prior service
annuity from county contributions for each year of service after the
first 10 years.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-144) (from Ch. 108 1/2, par. 9-144)
Sec. 9-144.
Widow's annuities - Present employees and future
entrants - Withdrawal and death before age 50.
The widow of an employee with 10 or more years of service who
withdraws before age 50 (age 55 if withdrawal occurs before January
1, 1988) and who dies while out of service before attaining such age,
shall be entitled to an annuity computed on a single life annuity basis
at the date of death from the following sum accumulated to his credit:
(1) If service is 20 or more years, the total credits for age and
service annuity and widow's annuity, and, in addition, if he was a
present employee, the total credits for prior service annuity and
widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the total
credits for age and service annuity and widow's annuity from
employee contributions, and,
in addition, if he was a present employee, the total
credits for prior service annuity and 1/10 of the total credits for age
and service annuity and widow's annuity from county contributions for
each year of service after the first 10 years, including, for the widow
of a present employee, 1/10 of the total credits for prior service and
widow's prior service annuity from county contributions for each year of
service after the first 10 years.
No county contributions shall be used for a widow's annuity in excess
of that which she would receive if the employee had lived until he
attained age 50 (age 55 if withdrawal occurs before January 1,
1988) and had not re-entered service, and an annuity were fixed
for her on a reversionary annuity basis as of her age when her husband would
have attained age 50 (age 55 if withdrawal occurs before January 1, 1988).
(Source: P.A. 85-964.)
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(40 ILCS 5/9-145) (from Ch. 108 1/2, par. 9-145)
Sec. 9-145.
Widow's annuities-Re-entry of employee into service.
No annuity in excess of that fixed in accordance with Sections 9-141,
9-142 and 9-143 shall be granted to a widow described in those sections
unless the employee re-enters service before age 65, in which case the
annuity for his wife shall be fixed as of the date he attains age 65 while
in service, or when he again withdraws, whichever first occurs.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-146) (from Ch. 108 1/2, par. 9-146)
Sec. 9-146.
Employee's widow's annuities - No contributions or service
credits after fixation.
No contributions by the employee or the county for an
annuity for the
widow of an employee shall be made after the date when her annuity has
been fixed. No service of an employee rendered after such date shall be
considered for widow's annuity, except as herein otherwise provided.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-146.1) (from Ch. 108 1/2, par. 9-146.1)
Sec. 9-146.1.
Minimum annuities for widows.
The widow of an employee who
retires from service or dies while in the service subsequent to June 11,
1965, who is otherwise eligible for widow's annuity under this Article and
for whom the amount of widow's annuity and widow's prior service annuity
combined, fixed or provided for such widow under other provisions of this
Article 9 is less than the amount hereinafter provided in this Section,
shall, from and after the date her otherwise provided annuity would begin,
in lieu of such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of annuity:
(a) The widow of any employee who dies while in the service on or after
the date on which he attains the age of 60 or more years with at least 20
years of service, or 10 or more years of service if death occurs on or after
attainment of age 65 and on or after January 1, 1982, shall be entitled
to an annuity equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn from the
service on the day immediately preceding the date of his death, conditional
upon such widow having attained the age of 60 or more years on such date.
Such amount of widow's annuity shall not, however, exceed the sum of $500 a
month if death in service occurs before July 1, 1985.
If such widow of such described employee shall not be 60 or more years of
age on such date of death, the amount provided in the immediately
preceding paragraph for a widow 60 or more years of age, shall, in the case
of such younger widow, be reduced by 1/2 of 1 per cent for each month that
her then attained age is less than 60 years; except that such younger
widow of an employee who dies while in service on or after July 1, 1985
with at least 30 years of service, shall not be subject to the reduction in
widow's annuity because of her age less than 60 on the date of the employee's
death.
(b) The widow, of any employee who dies subsequent to the date of his
retirement on annuity, and who so retired on or after the date on which he
attained the age of 60 or more years with at least 20 years of service,
or 10 or more years of service if retirement occurs on or after attainment
of age 65 and on or after January 1, 1982, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased husband
received as of the date of his retirement on annuity, conditional upon such
widow having attained the age of 60 or more years on the date of her
husband's retirement on annuity. Such amount of widow's annuity shall not,
however, exceed the sum of $500 a month if the death occurs before the
effective date of this amendatory Act of 1991.
If such widow of such described employee shall not have attained such
age of 60 or more years on such date of her husband's retirement on
annuity, the amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then younger widow, be
reduced by 1/2 of 1 per cent for each month that her then attained age was
less than 60 years; except that such younger widow of an
employee retiring on or after July 1, 1985 with at least 30 years of
service, shall not be subject to the reduction in widow's annuity because
of her age less than 60 on the date of the employee's retirement.
(c) The foregoing provisions relating to minimum annuities for widows
shall not apply to the widow of any former county employee receiving an
annuity from the Fund on June 11, 1965, who re-enters service as a county
employee, unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) An annuity being paid to a surviving spouse on January 1, 1984 shall
be increased by 10% and shall thereafter be paid at the increased rate until
the termination of the annuity by death or other cause. The annuity for
a qualifying widow shall not exceed $500 per month.
(e) The widow of any employee who dies while in service on or after July
1, 1985 but prior to January 1, 1988, and the widow of an employee who
retires on or after July 1, 1985 but prior to January 1, 1988 with at
least 10 years of service, and the widow of an employee who retires on or
after January 1, 1984 but prior to July 1, 1985 with at least 30 years of
service, shall be entitled to an annuity equal to
one-half of the amount of annuity which her deceased husband would have
received had he retired immediately prior to his death or one-half the
amount of the originally granted retirement annuity, whichever is
applicable. Such widow's annuity will be reduced 0.5% for each month that
the widow's attained age is less than age 60 on the date of the employee's
death in service or retirement if the employee's death in service or
retirement is before January 1, 1988; except that such younger widow of an
employee with at least 30 years of service shall not be subject to the
reduction in widow's annuity because of her age less than 60 on the date of
the employee's death in service or retirement.
The widow of an employee who dies in service on or after January 1,
1988, or retires on or after January 1, 1988 with at least 10 years of
service, shall be entitled to an annuity equal to 1/2 of the amount of
annuity which her deceased husband would have received had he retired
immediately prior to his death or 1/2 of the amount of the annuity which
her deceased husband received as of the date of his death, whichever is
applicable. Such widow's annuity shall be reduced 0.5% for each month that
the widow's attained age is less than age 60 on the date of the employee's
death if employee's death in service or retirement is after January 1,
1988; except that such younger widow of an employee with at least 30
years of service shall not be subject to the reduction in widow's annuity
because of her age on the date of the employee's death.
In lieu of any other annuity provided by this Article,
the widow of an employee who dies in service on or after January 1,
1992, or retires on or after January 1, 1992 with at least 10 years of
service, shall be entitled to an annuity equal to 1/2 of the amount of
annuity which her deceased husband would have received had he retired
immediately prior to his death or 1/2 of the amount of the annuity which
her deceased husband received as of the date of his death, whichever is
applicable. Such widow's annuity shall be reduced 0.5% for each month that
the widow's attained age is less than age 55 on the date of the employee's
death; except that such younger widow of an employee with at least 30
years of service shall not be subject to the reduction in widow's annuity
because of her age on the date of the employee's death.
In lieu of any other annuity provided by this Article, the widow of an
employee who dies in service or withdraws from service on or after January
1, 1992 but before January 1, 1993 at age 55 or over with at least 5 but
less than 10 years of service, shall be entitled to an annuity equal to
half of the amount of annuity which her deceased husband would have
received had he retired immediately prior to his death or half of the
amount of the annuity which her deceased husband received as of the date of
his death, whichever is applicable. This widow's annuity shall be reduced
0.5% for each month that the widow's attained age is less than 60 on the
date of the employee's death.
However, in the case of an employee dying in service,
the amount of widow's annuity shall not be less than 10% of the highest
average annual salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal. The maximum amount of
annuity under this paragraph shall not be limited to a dollar maximum. The
provisions of this paragraph shall not apply to the widow of any former
County employee receiving an annuity from the fund who re-enters service as
a County employee, unless such employee renders at least 3 years of
additional service after the date of re-entry.
(f) An annuity being paid to a surviving spouse on July 1, 1988, shall
be increased on that date by 1% for each full year that has elapsed from
the date the annuity began.
(g) In lieu of any other annuity provided under this Article, if the
deceased employee was receiving a retirement annuity at the time of his
death and that death occurs on or after January 1, 1993, the widow's
annuity shall be 50% of the deceased employee's retirement annuity at the
time of death, reduced by 0.5% for each month that the widow's age on the
date of death is less than 55, except that the reduction does not apply if
the deceased employee had at least 30 years of service.
(h) In lieu of any other annuity provided under this Article, the widow
of an employee who dies in service on or after July 1, 2002 or has at
least 10 years of service and dies on or after July 1, 2002 while receiving
an annuity shall be entitled to a widow's annuity equal to 65% of the amount
of annuity which her deceased husband would have received had he retired
immediately prior to his death or 65% of the amount of the annuity which
her deceased husband received as of the date of his death, whichever is
applicable. This widow's annuity shall be reduced by 0.5% for each month
that the widow's age on the date of the employee's death is less than 55,
unless the deceased husband had at least 30 years of service.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-146.2)
Sec. 9-146.2.
Automatic annual increase in widow's annuity.
(a) Every widow's annuity, other than a term annuity, shall be increased
on January 1, 1998 or the January 1 occurring on or immediately after the first
anniversary of the deceased employee's death, whichever occurs later, by an
amount equal to 3% of the amount of the annuity.
On each January 1 after the date of the initial increase under this Section,
the widow's annuity shall be increased by an amount equal to 3% of the amount
of the widow's annuity payable at the time of the increase, including any
increases previously granted under this Article.
(b) Limitations on the maximum amount of widow's annuity imposed under
Section 9-150 do not apply to the annual increases provided under this Section.
(c) The increases provided under this Section also apply to compensation
annuities and supplemental annuities payable under Section 9-147. The
increases provided under this Section do not apply to term annuities.
(Source: P.A. 90-32, eff. 6-27-97.)
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(40 ILCS 5/9-147) (from Ch. 108 1/2, par. 9-147)
Sec. 9-147.
Compensation annuity and supplemental annuity.
When annuity otherwise provided in this Article for the widow of an
employee whose death results from injury incurred in the performance of an
act of duty is less than 60% of his salary in effect at the time of the
injury, "Compensation Annuity" equal to the difference between such annuity
and 60% of such salary, shall be payable to her until the date when the
employee, if alive, would have attained age 65. The county shall contribute
to the fund each year the amount required for all compensation annuities
payable during any such year.
Thereafter, the widow shall be entitled to "Supplemental Annuity" equal
to the differences between the annuity otherwise provided her in this
Article and the annuity to which she would be entitled if the employee had
lived and continued in service at the salary in effect at the date of the
injury until he attained age 65, and based upon her age as it would be on
the date he would have attained 65. Supplemental Annuity shall be provided
from county contributions after the date of the employee's death, of such
equal amounts annually which when improved by interest at the effective
rate, will be sufficient, at the time payment of Compensation Annuity to
the widow ceases to provide Supplemental Annuity, as stated, for the widow
throughout her life thereafter.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-148) (from Ch. 108 1/2, par. 9-148)
Sec. 9-148.
Widows or wives not entitled to annuity.
Except as provided in Section 9-148.1, the following widows or wives of
employees have no right to annuity
from the fund:
(a) The widow or wife, married subsequent to the effective date, of
an employee who dies in service if she was not married to him before he
attained age 65;
(b) The widow or wife, married subsequent to the effective date, of
an employee who withdraws from service whether or not he enters upon
annuity, and who dies while out of service, if she was not his wife
while he was in service and before he attained age 65;
(c) The widow or wife of an employee with 10 or more years of
service whose death occurs out of and after he has withdrawn from
service, and who has received a refund of contributions for annuity
purposes;
(d) The widow or wife of an employee with less than 10 years of
service who dies out of service after he has withdrawn from service
before he attained age 60.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-148.1)
Sec. 9-148.1.
Widow's annuity for widow married to member for at least
one year. Notwithstanding Section 9-148, if a member was not married at the
time of retirement but married after retirement, that member's widow shall be
entitled to a widow's annuity if (1) the widow was married to the member for
at least the last year prior to the member's death; (2) the widow is otherwise
eligible for a widow's annuity; and (3) the widow repays to the Fund (i) an
amount equal to the amount of any refund paid to the member at the time of
retirement pursuant to Section 9-165 plus (ii) interest thereon from the date
of the refund until the time of repayment at the rate of
6% per year.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149)
Sec. 9-149.
Widow's remarriage to terminate annuity.
A widow's annuity shall terminate when she remarries if the marriage takes
place before the date 60 days after the effective date of this amendatory Act
of the 91st General Assembly. If a widow remarries 60 or more days after the
effective date of this amendatory Act of the 91st General Assembly, the widow's
annuity shall continue without interruption.
When a widow dies, if she has not received, in the form of an
annuity, an amount equal to the total sums accumulated and credited from the
employee's contributions and applied for the widow's annuity, the difference
between such accumulated annuity credits and the amount received by her in
annuity payments shall be refunded to her; provided that if a reversionary
annuity is payable to her or to any other person designated by the employee,
this amount shall not be refunded, but the reversionary
annuity shall be payable.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/9-149.1) (from Ch. 108 1/2, par. 9-149.1)
Sec. 9-149.1.
Annuities to survivors of female employees.
All provisions of this Article relating to annuities or benefits to a
widow, minor children or other survivors of a male employee shall apply
with equal force to a surviving spouse, children or other eligible
survivors of a female employee, including credits for the several annuity
purposes, refunds and death benefits, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/9-150) (from Ch. 108 1/2, par. 9-150)
Sec. 9-150.
Maximum annuities.
(1) The annuities to an employee and his widow are subject to the following limitations:
(a) No age and service annuity or age and service and | ||
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(b) No annuity in excess of 60% of such highest | ||
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(c) No annuity in excess of 50% of such highest | ||
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(2) Until July 1, 1985, if at the death of an employee prior to age 65
the credit for widow's annuity exceeds that necessary to provide the maximum
annuity prescribed in this section, all employee contributions for annuity
purposes, for service after the date on which the accumulated sums to
the credit of such employee for annuity purposes would first have
provided such widow with such amount of annuity if such annuity were
computed on the basis of the combined annuity mortality table with
interest at 3% per annum with ages at date of determination taken as
specified in this article shall be refunded to the widow, with interest
at the effective rate.
If the employee was credited with county contributions for any period
of service during which he was not required to make a contribution or made
a contribution of less than 3 1/4% of salary, the refund shall be
reduced by the equivalent of the contributions he would have made during
such period, less any amount he contributed, had the rate of employee
contributions in effect on the effective date been in force throughout
his entire service, prior to the effective date, with interest at the
effective rate; provided, that if the employee was credited with county
contributions for widow's annuity for any service prior to the effective
date, any amount so refundable shall be further reduced by the
equivalent of what he would have contributed had he made contributions
for widow's annuity at the rate of 1% throughout his entire service,
prior to such effective date, with interest at the effective rate.
(3) Notwithstanding any other provision of this Article,
any benefit payable under this Article which would otherwise exceed
the maximum limitations on benefits provided by "qualified
plans" as set forth in Section 415 of the federal Internal Revenue Code of
1986, as now or hereafter amended, or any successor thereto,
shall be paid only in accordance with Section 1-116 of this Code.
(Source: P.A. 87-794.)
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(40 ILCS 5/9-150.1) (from Ch. 108 1/2, par. 9-150.1)
Sec. 9-150.1.
The provisions of parts (1) (b) and (c) of Section 9-150, of this
Article 9, increasing the maximum widow's annuity from $300 to $400 a
month, shall be effective July 1, 1971, and apply in the case of every
qualifying widow whose husband dies while in service on or after July 1,
1971 or withdraws and enters on annuity on or after July 1, 1971.
(Source: P.A. 77-2146.)
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(40 ILCS 5/9-151) (from Ch. 108 1/2, par. 9-151)
Sec. 9-151.
Mortality tables and interest rates.
(a) Any single life annuity fixed or granted to any employee who was a
participant on or before January 1, 1954, or any reversionary or single
life annuity, fixed for or granted to a wife or widow shall be computed, in
the case of the employee as of his attained age when the annuity is fixed
or granted, and in the case of the wife or widow, as of employee's age and
that of his wife or widow on the date her annuity is fixed or granted,
provided that if the wife or widow is older than 5 years the junior of her
husband her age shall be assumed 5 years less than his. The American
Experience Table of Mortality with interest at 4% per annum shall be used
for the computation of the annuity values in this paragraph.
(b) Until the effective date of this amendatory Act of 1985, any single
life annuity fixed or granted to any employee who becomes
a participant for the first time after January 1, 1954, or any reversionary
or single life annuity, fixed or granted to the wife or widow shall be
computed, in the case of the employee as of his attained age when the
annuity is fixed or granted, and in the case of the wife or widow her age
shall be taken as 4 years younger than her actual age, or 4 years younger
than the age of her husband, whichever will produce the lower age, as of
the date the employee's, or the wife's or widow's annuity is fixed or
granted. The Combined Annuity Mortality Table for Male Lives with interest
at 3% per annum shall be used for the computation of the single life
employee annuity values in this paragraph. Such table shall also be used
for the computation of single life widow annuity values and for the
computation of the reversionary annuities specified in this paragraph with
the female life taken as 4 years less than the male life.
On or after the effective date of this amendatory Act of 1985, any
single life annuity fixed or granted to any employee who becomes a
participant for the first time after January 1, 1954, or any reversionary
or single life annuity fixed or granted to a wife or widow, shall be
computed, in the case of an employee as of his attained age when the
annuity is fixed or granted, and in the case of the wife or widow her age
shall be taken as the lower of her actual age or the age of her husband as
of the date the employee's or wife's or widow's annuity is fixed or
granted. The Combined Annuity Mortality Table for Male Lives with
interest at 3% per annum shall be used for the computation of the single
life employee and widow annuity values in this paragraph. Such table shall
also be used for the computation of the reversionary annuity values
specified in this paragraph with the employee life taken as 4 years less
than the male life and the spouse life taken as the male life.
Any increased costs of a local government attributable to this amendatory
Act of 1985 are not reimbursable by the State.
(c) All sums credited to any employee for annuity purposes when he
withdraws from service before age 55 shall be improved with interest at the
effective rate thereafter while he is not in service and has not entered
upon annuity until he attains age 65.
(d) The amount of widow's annuity or widow's prior service annuity which
shall be fixed for the wife of an employee who is alive shall be calculated
as a reversionary annuity derived from the total accumulated sum to the
employee's credit for widow's annuity and widow's prior service annuity on
the date the annuity is fixed. An annuity for a widow shall be computed as
of her age at the date of fixation, subject to the foregoing provisions of
this Section.
(Source: P.A. 84-306.)
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(40 ILCS 5/9-152) (from Ch. 108 1/2, par. 9-152)
Sec. 9-152.
Computation of interest.
For the computation of interest upon any sum contributed by an
employee into any county pension fund or into this fund, it shall be
assumed that the sum was contributed on the last day of the calendar
month in which such contribution was made.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-153) (from Ch. 108 1/2, par. 9-153)
Sec. 9-153.
Term annuities - How computed.
In any case in which an employee's credit for an annuity for himself or
his widow is insufficient - at the time the annuity is fixed, - to provide an
immediate life annuity of $150 a month for the employee or his widow, a term
annuity of equal actuarial value of $150 a month shall be paid for such time
as such payments can be made from such credits for the respective
annuities.
(Source: P.A. 83-1362.)
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(40 ILCS 5/9-154) (from Ch. 108 1/2, par. 9-154)
Sec. 9-154.
Child's annuity.
A "Child's Annuity" shall be payable monthly after the death of an
employee parent to the unmarried child until the child's attainment of age
18, under the following conditions, if the child was born before the
employee attained age 65, and before he withdrew from service:
(a) Upon death resulting from injury incurred in the performance of an
act of duty;
(b) Upon death in service from any cause other than injury incurred in
the performance of an act of duty, if the employee has at least 4 years of
service after the date of his original entry into service, and at least 2
years after the date of his latest re-entry;
(c) Upon death of an employee who withdraws from service after age 50
(age 55 if withdrawal was before January 1, 1988), and who has entered
upon or is eligible for annuity.
The first payment shall become due and payable one month after the date
of death.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-155) (from Ch. 108 1/2, par. 9-155)
Sec. 9-155.
Amount of child's annuity.
A child's annuity shall be $140
per month for each child, and shall be subject to the following limitations:
(1) If the combined annuities for the widow and children of an employee
whose death resulted from injury incurred in the performance of duty, or
for the children where a widow does not exist, exceed 70% of the employee's
final monthly salary, the annuity for each child shall be reduced pro rata
so that the combined annuities for the family shall not exceed such limitation.
(2) For the family of an employee whose death is the result of any cause
other than injury incurred in the performance of duty, in which the
combined annuities for the family exceed 60% of the employee's final
monthly salary, the annuity for each child shall be reduced pro rata so
that the combined annuities for the family shall not exceed such limitation.
A child's annuity shall be paid to the parent who is providing for the
child, unless another person has been appointed the child's legal guardian.
Beginning with any child's annuity payment made on or after
July 1, 1988, all child's
annuities otherwise payable at the rate of $140 per
month shall be increased
to 10% of the employee's salary at date of death if greater than $140,
subject to the limitation that the combined annuities for a
family may not
exceed the applicable amount hereinbefore in this Section stated.
(Source: P.A. 86-272.)
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(40 ILCS 5/9-156) (from Ch. 108 1/2, par. 9-156)
Sec. 9-156. Duty disability benefit - Child's disability benefit. An employee who becomes disabled after the effective date while under age
65 and prior to January 1, 1979, or while under age 70 after January 1,
1979 and prior to January 1, 1987, as the result of injury incurred -
on or after the date he has been
included under this Article - in the performance of an act or acts of duty
shall have a right to receive duty disability benefit, during any period of
such disability for which he receives no salary. Any employee who
becomes disabled after January 1, 1987, as the result of injury
incurred on or after the date he has been included under the Article and in
the performance of an act or acts of duty, shall have a right to receive a
duty disability benefit during any period of such disability for which he
receives no salary. The benefit shall be 75%
of salary at date of injury; provided, that if disability, in any measure,
has resulted from any physical defect or disease which existed at the time
such injury was sustained, the duty disability benefit shall be 50% of
salary at date of such injury.
The employee shall also have a right to receive child's disability
benefit of $10 a month on account of each child less than age 18. Child's
disability benefits shall not exceed 15% of the salary as aforesaid.
These benefits shall not be allowed unless application therefor is made while the disability exists; except that this limitation does not apply if the board finds that there was reasonable cause for delay in filing the application while the disability existed. This amendatory Act of the 95th General Assembly is intended to be a restatement and clarification of existing law and does not imply that application for a duty disability benefit made after the disability had ceased, without a finding of reasonable cause, was previously allowed under this Article. The first payment of duty disability or child's disability benefit shall
be made not later than one month after such benefit is granted and each
subsequent payment shall be made not later than one month after the last
preceding payment.
Duty disability benefit is payable during disability until the employee
attains age 65 if the disability commences prior to January 1, 1979. If
the disability commences on or after January 1, 1979, the benefit prescribed
herein shall be payable during disability until the employee attains age 65
for disability commencing prior to age 60, or for a period of 5 years or
until attainment of age 70, whichever occurs first, for disability
commencing at age 60 or older and on or after January 1, 1979 but prior
to January 1, 1987. If the disability commences on or after January 1,
1987, the benefit prescribed herein shall be payable during disability for
a period of 5 years for disability commencing at age 60 or older. In
either case, child's disability benefit shall be paid to the
employee parent of any unmarried child less than age 18, during such time
until the child marries or attains age 18. The employee shall thereafter
receive such annuity as is otherwise provided under this Article.
Any employee whose duty disability benefit was terminated on or after
January 1, 1987 by reason of his attainment of age 70, and who continues to
be disabled after age 70, may elect before March 31, 1988, to have such
benefits resumed beginning at the time of such termination and continuing
until termination is required under this Section as amended by this
amendatory Act of 1987. The amount payable to any employee for such
resumed benefit for any period shall be reduced by the amount of any
retirement annuity paid to such employee under this Article for the same
period of time or by any refund paid in lieu of annuity.
(Source: P.A. 95-1036, eff. 2-17-09.)
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(40 ILCS 5/9-157) (from Ch. 108 1/2, par. 9-157) Sec. 9-157. Ordinary disability benefit. An employee while under age 65
and prior to January 1, 1979, or while under age 70 and after January 1,
1979, but prior to January 1, 1987, and regardless of age on or after
January 1, 1987, who becomes disabled after becoming a contributor to the
fund as the result of any cause other than injury incurred in the
performance of an act of duty is entitled to ordinary disability benefit
during such disability, after the first 30 days thereof. No employee who becomes disabled and whose disability commences
during any period of absence from duty without pay may
receive ordinary disability benefit until he recovers from such
disability and performs the duties of his position in the service for at
least 15 consecutive days, Sundays and holidays excepted, after his
recovery from such disability. The benefit shall not be allowed unless application therefor is made
while the disability exists, nor for any period of disability before 30
days before the application for such benefit is made. The foregoing
limitations do not apply if the board finds from satisfactory evidence
presented to it that there was reasonable cause for delay in filing such
application within such periods of time. The first payment shall be made not later than one month after the
benefit is granted and each subsequent payment shall be made not later
than one month after the last preceding payment. The disability benefit prescribed herein shall cease when the first of
the following dates shall occur and the employee, if still disabled, shall
thereafter be entitled to such annuity as is otherwise provided in this
Article: (a) the date disability ceases. (b) the date the disabled employee attains age 65 for disability
commencing prior to January 1, 1979. (c) the date the disabled employee attains 65 for disability commencing
prior to attainment of age 60 in the service and after January 1, 1979. (d) the date the disabled employee attains the age of 70 for disability
commencing after attainment of age 60 in the service and after January 1, 1979. (e) the date the payments of the benefit shall exceed in the aggregate,
throughout the employee's service, a period equal to 1/4 of the total service
rendered prior to the date of disability but in no event more than 5 years.
In computing such total service any period during which the employee
received ordinary disability benefit and any period of absence from duty
other than paid vacation shall be excluded. Any employee whose duty disability benefit was terminated on or after
January 1, 1979 by reason of his attainment of age 65 and who continues to
be disabled after age 65 may elect before July 1, 1986 to have such
benefits resumed beginning at the time of such termination and continuing
until termination is required under this Section as amended by this
amendatory Act of 1985. The amount payable to any employee for such
resumed benefit for any period shall be reduced by the amount of any
retirement annuity paid to such employee under this Article for the same
period of time or by any refund paid in lieu of annuity. Any employee whose disability benefit was terminated on or after
January 1, 1987 by reason of his attainment of age 70, and who continues to
be disabled after age 70, may elect before March 31, 1988, to have such
benefits resumed beginning at the time of such termination and continuing
until termination is required under this Section as amended by this
amendatory Act of 1987. The amount payable to any employee for such
resumed benefit for any period shall be reduced by the amount of any
retirement annuity paid to such employee under this Article for the same
period of time or by any refund paid in lieu of annuity. Ordinary disability benefit shall be 50% of the employee's salary at
the date of disability. Instead of all amounts ordinarily contributed by
an employee and by the county for age and service
annuity and widow's annuity based on the salary at date of disability,
the county shall contribute sums equal to such amounts for any period
during which the employee receives ordinary disability and such is
deemed for annuity and refund purposes as amounts contributed by him. The
county shall also contribute 1/2 of 1% salary deductions required
as a contribution from the employee under Section 9-133. An employee who has withdrawn from service or was laid off for any
reason, who is absent from service thereafter for 60 days or more who
re-enters the service subsequent to such absence is not entitled to
ordinary disability benefit unless he renders at least 6 months of
service subsequent to the date of such last re-entry.(Source: P.A. 96-1466, eff. 8-20-10.) |
(40 ILCS 5/9-158) (from Ch. 108 1/2, par. 9-158)
Sec. 9-158. Proof of disability, duty and ordinary. Proof of duty or ordinary disability shall be furnished to the board by
at least one licensed and practicing physician appointed by or acceptable to the board, except that this requirement may be waived by the board for proof of duty disability if the employee has been compensated by the county for such disability or specific loss under the Workers' Compensation Act or Workers' Occupational Diseases Act. The physician requirement may also be waived by the board for ordinary disability maternity claims of up to 8 weeks. With respect to duty disability, satisfactory proof must be provided to the board that the final adjudication of the claim required under subsection (d) of Section 9-159 established that the disability or death resulted from an injury incurred in the performance of an act or acts of duty. The
board may require other evidence of disability. Each disabled employee who
receives duty or ordinary disability benefit shall be examined at least
once a year or a longer period of time as determined by the board, by one or more licensed and practicing physicians appointed by
the board. When the disability ceases, the board shall discontinue payment
of the benefit.
(Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/9-159) (from Ch. 108 1/2, par. 9-159)
Sec. 9-159. When disability benefit not payable. (a) If an employee receiving duty disability or ordinary disability
benefit refuses to submit to examination by a physician appointed by the
board, he shall have no further right to receive the benefit.
(b) Disability benefit shall not be paid for any time for which the
employee receives any part of his salary, or while employed by any
public body supported in whole or in part by taxation.
(c) If an employee who shall be disabled, or his widow or children
receive any compensation or payment from the county for specific loss,
disability or death under the Workers' Compensation Act or Workers'
Occupational Diseases Act, the disability benefit or any annuity for him
or his widow or children payable as the result of such specific loss,
disability or death shall be reduced by any amount so received or
recoverable. If the amount received as such compensation or payment
exceeds such disability benefit or other annuity payable as the result
of such specific loss, disability or death, no payment of disability
benefit or other annuity shall be made until the accumulative amounts
thereof equals the amount of such compensation or payment. In such
calculation no interest shall be considered. In adjusting the amount of
any annuity in relation to compensation received or recoverable during
any period of time, the annuity to the widow shall be first reduced.
If any employee, or widow shall be denied compensation by such county
under the aforesaid Acts, or if such county shall fail to act, such
denial or failure to act shall not be considered final until the claim
has been adjudicated by the Illinois Workers' Compensation Commission.
(d) Before any action may be taken by the board on an application for duty disability benefit or widow's compensation or supplemental benefit, other than rejection of any such application that is otherwise incomplete or untimely, the related applicant must file a timely claim under the Workers' Compensation Act or the Workers' Occupational Diseases Act, as applicable, to establish that the disability or death resulted from an injury incurred in the performance of an act or acts of duty, and the applicant must receive compensation or payment from the claim or the claim must otherwise be finally adjudicated. (Source: P.A. 95-1036, eff. 2-17-09.)
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(40 ILCS 5/9-160) (from Ch. 108 1/2, par. 9-160)
Sec. 9-160.
Annuity after withdrawal while disabled.
An employee whose disability continues after he has received ordinary
disability benefit for the maximum period of time prescribed by this
Article, and who withdraws before age 60 while still so disabled, is
entitled to receive the annuity provided from the total sum accumulated
to his credit from employee contributions and county contributions to be
computed as of his age on the date of withdrawal.
The annuity to which his wife shall be entitled upon his death, shall
be fixed on the date of his withdrawal. It shall be provided on a
reversionary annuity basis from the total sum accumulated to his credit
for widow's annuity on the date of such withdrawal.
Upon the death of any such employee while on annuity, if his service
was at least 4 years after the date of his original entry, and at least
2 years after the date of his latest re-entry, his unmarried child or
children under age 18 shall be entitled to annuity specified in this
Article for children of an employee who retires after age 50 (age 55 for
withdrawal before January 1, 1988), subject to
prescribed limitations on total payments to a family of an employee.
(Source: P.A. 85-964.)
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(40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
Sec. 9-161. Re-entry into service. (a) When an employee who has withdrawn from service after the
effective date re-enters service before age 65, any annuity previously
granted and any annuity fixed for his wife shall be cancelled. The
employee shall be credited for annuity purposes with the actuarial value
of annuities equal to those cancelled as of their ages on the date of
re-entry; provided, the maximum age of the wife for this purpose shall
be as provided in Section 9-151 of this Article. The sums so credited
shall provide for annuities to be fixed and granted in the future.
Contributions by the employee and the county for the
purposes of this
Article shall be made and when the proper time arrives, as provided in
this Article, new annuities based upon the total sums accumulated to his
credit for annuity purposes and the entire term of his service shall be
fixed for the employee and his wife.
If the employee's wife has died before he re-entered service, no part
of any credits for widow's or widow's prior service annuity at the time
annuity for his wife was fixed shall be credited upon re-entry into
service, and no such sums shall thereafter be used to provide such
annuity.
(b) When an employee re-enters service after age 65, payments on
account of any annuity previously granted shall be suspended during the
time thereafter that he is in service, and when he again withdraws
annuity payments shall be resumed. If the employee dies in service, his
widow shall receive the annuity previously fixed for her.
(c) If an employee annuitant re-enters service as an election worker and provides services for a scheduled federal, State, or local election for a period of 60 days or less during a calendar year, that employee annuitant's annuity shall not be suspended and such employee annuitant shall not be considered to be in service within the meaning of Section 9-108.3 and is not entitled to benefits for employees in service. If an employee annuitant re-enters service for a period longer than 60 days during a calendar year, the annuity shall be suspended or cancelled retroactive to the initial date of re-entry. (Source: P.A. 103-552, eff. 8-11-23.)
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(40 ILCS 5/9-162) (from Ch. 108 1/2, par. 9-162)
Sec. 9-162.
Re-entry into service - Prior employee.
An employee other than a present employee described in subdivision
(c) of Section 9-109 who was not in the service of such county or of
the board on the day prior to the effective date, and who was in service
prior to that date and who re-enters the service after that date and
before age 65, shall not be credited for prior service annuity or
widow's prior service annuity on account of service prior to the
effective date. The period of service, prior to the effective date,
shall, however, be included in computing service for age and service
annuity, widow's annuity and ordinary disability purposes.
Contributions by the employee and county contributions for age and
service annuity and widow's annuity shall be made until such employee
attains age 65.
Any such employee shall have a right to receive age and service
annuity, from the date of withdrawal from service, as of his age on such
date, provided from the total sum accumulated to his credit for such
purposes on such date.
The amount of annuity for the wife or widow of any such employee,
from the date of the death of such employee, shall be fixed in
accordance with the provisions of this Article relating to annuities for
widows of future entrants.
The foregoing provisions of this section shall apply to any employee
who was not in service of such county or of the board on the day prior
to the effective date, unless such employee qualifies as a present
employee as described in subdivision (c) of Section 9-109, in which
event he shall be credited for prior service annuity and widow's prior
service annuity with accumulated sums computed as prescribed in this
Article. The period of service rendered by such employee prior to the
day before the effective date shall be credited in addition to the
periods of service otherwise credited to such employee.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-163) (from Ch. 108 1/2, par. 9-163)
Sec. 9-163.
Restoration of rights.
An employee who has withdrawn as a
refund the amounts credited for annuity purposes, and who re-enters service
and serves for periods comprising at least 2 years after the date of the last
refund paid to him, may have his annuity rights restored by making application
to the board in writing for the privilege of reinstating such rights and by
compliance with the following provisions:
(a) The employee shall repay in full to the fund | ||
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(b) If payment is not made in a single sum, the | ||
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(c) If the employee withdraws from service or dies in | ||
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For an employee who applies to the Fund to reinstate credit and repay a
refund between January 1, 1993 and March 1, 1993, the 2 year minimum period
of subsequent service required under item (a) shall be instead a period of
6 months.
A person who establishes service credit under Section 9-121.16 may, at
the same time, reinstate credit in this Fund and repay a refund without a
return to service, notwithstanding the other provisions of this Section.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/9-164) (from Ch. 108 1/2, par. 9-164)
Sec. 9-164. Refunds - Withdrawal before age 55 or with less than 10
years of service.
(1) An employee, without regard to length of service, who withdraws
before age 55 (age 62 for an employee who first becomes a member on or after January 1, 2011), and any employee with less than 10 years of service who
withdraws before age 60, and any employee who first becomes a member on or after January 1, 2011 who withdraws with less than 10 years of service, shall be entitled to a refund of the total sums
accumulated to his credit as of date of withdrawal for age and service
annuity and widow's annuity resulting from amounts contributed by him or
by the county in lieu of employee contributions during duty disability.
If he is a present employee he shall also be entitled to a refund of the
total sum accumulated from any sums contributed by him and applied to
any county pension fund superseded by this fund. An employee withdrawing
on or after January 1, 1984 may receive a refund only after he has been
off the payroll for at least 30 days during which time he has received no salary.
(2) Upon receipt of the refund, the employee surrenders and forfeits
all rights to any annuity or other benefits for himself and for any
other persons who might have benefited through him; provided that he may
have any such period of service counted in computing the term of his
service - for age and service annuity purposes only - if he becomes an
employee before age 65, excepting as limited by the provisions of this
Article relating to the basis of computing the term of service.
(3) An employee who does not receive a refund shall have all amounts
to his credit for annuity purposes on the date of his withdrawal
improved by interest only until he becomes 65 while out of service at
the effective rate for his benefit and the benefit of any person who may
have any right to annuity through him if he re-enters service and
attains a right to annuity.
(4) Any such employee shall retain such right to a refund of such
amounts when he shall apply for same until he re-enters the service or
until the amount of annuity shall have been fixed as provided in this
Article. Thereafter, no such right shall exist in the case of any such
employee.
(Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/9-165) (from Ch. 108 1/2, par. 9-165)
Sec. 9-165.
Refund of widow's annuity deductions.
If a male employee is (1) unmarried when he attains age 65 or (2) is
married at age 65 and subsequently becomes a widower while still in
service, or (3) unmarried upon withdrawal before age 65 and enters upon
annuity, the sum accumulated from employee contributions for widow's
annuity shall be refunded to him.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-166) (from Ch. 108 1/2, par. 9-166)
Sec. 9-166. Refunds - when paid to beneficiary, children or estate. Whenever the total amount accumulated to the account of a deceased
employee from employee contributions for
annuity purposes, and from
employee contributions applied to any county pension fund superseded by
this fund, have not been paid to him, and in the case of a married male
employee to the employee and his widow together, in form of annuity or
refund before the death of the last of such persons, a refund shall be
payable as follows:
An amount equal to the excess of such amounts over the amounts paid
on any annuity or annuities or refund, without interest upon either of
such amounts, shall be refunded to a beneficiary theretofore designated
by the employee in writing, signed by him, and filed with the board before the employee's
death.
If there is no designated beneficiary or the beneficiary does not
survive the employee, the amount shall be refunded to the employee's
children, in equal parts with the children of a deceased child taking
the share of their parent. If there is no designated beneficiary or
children, the refund shall be paid to the administrator or executor of
the employee's estate.
If an administrator or executor of the estate has not been appointed
within 90 days from the date the refund became payable the refund may be
applied in the discretion of the board toward the payment of the
employee's burial expenses. Any remaining balance shall be paid to the
heirs of the employee according to the law of descent and distribution
of this state but assuming for the purpose of such payment of refund and
determination of heirs that the deceased male employee left no widow
surviving in those cases where a widow eligible for widow's annuity as
his widow survived him and subsequently died; provided,
(a) that if any child or children of the employee are | ||
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(b) that if a reversionary annuity becomes payable as | ||
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(Source: P.A. 99-578, eff. 7-15-16.)
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(40 ILCS 5/9-167) (from Ch. 108 1/2, par. 9-167)
Sec. 9-167.
Refund - In lieu of annuity.
In lieu of an annuity, an employee who withdraws after age 60, having annuity
rights based on a credit of not more than 10 years of service, or an employee
who withdraws and whose annuity would amount to less than $150
a month for life, or a former employee who is receiving an annuity from
the Fund of less than $150 per month, regardless of his date of withdrawal
from service, may elect to receive a refund of the total sum accumulated
to his credit from employee contributions for annuity purposes, minus
any amounts previously paid to him by the Fund.
The widow of any employee, eligible for annuity upon the death of her
husband, whose annuity would amount to less than $150 a month for life,
and any widow receiving an annuity of less than $150 per month, may,
in lieu of a widow's annuity, elect to receive a refund of the accumulated
contributions for annuity purposes, based on the amounts contributed by
her deceased employee husband, but reduced by any amounts theretofore paid
to either the widow or the employee in the form of an
annuity or refund out of such accumulated contributions.
Accumulated contributions shall mean the amounts including interest credited
thereon contributed by the employee for age and service and widow's annuity
to the date of his withdrawal or death, whichever first
occurs, including the accumulations from any amounts contributed for him
as salary deductions while receiving duty disability benefits, and if
not otherwise included any accumulations from sums contributed by him and
applied to any pension fund superseded by this fund, and interest credited
thereon in accordance with the other provisions of this Article.
The acceptance of such refund in lieu of widow's annuity, on the part of
a widow, shall not deprive a child or children of the right to receive a
child's annuity as provided for in Sections 9-154 and 9-155 of
this Article, and neither shall the payment of child's annuity in the case of
such refund to a widow reduce the amount herein set forth as refundable to such
widow electing a refund in lieu of widow's annuity.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/9-168)
Sec. 9-168. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
Sec. 9-169. Financing; tax levy and other funding sources. (a) The county board shall levy a
tax annually upon all taxable property in the county at the rate that
will produce a sum which, when added to the amounts deducted from the salaries
of the employees or otherwise contributed by them is sufficient
for the requirements of this Article.
For the years before 1962 the tax rate shall be as provided in "The
1925 Act". For the years 1962 and 1963 the tax rate shall be not more
than .0200 per cent; for the years 1964 and 1965 the tax rate shall be
not more than .0202 per cent; for the years 1966 and 1967 the tax rate
shall be not more than .0207 per cent; for the year 1968 the tax rate
shall be not more than .0220 per cent; for the year 1969 the tax rate
shall be not more than .0233 per cent; for the year 1970 the tax rate
shall be not more than .0255 per cent; for the year 1971 the tax rate
shall be not more than .0268 per cent of the value, as equalized or
assessed by the Department of Revenue upon all taxable
property in the county. Beginning with the year 1972 and for each year
thereafter the county shall levy a tax annually at a rate on the dollar
of the value, as equalized or assessed by the Department of Revenue
of all taxable property within the county that will
produce, when extended, not to exceed an amount equal to the total
amount of contributions made by the employees to the
fund in the calendar year 2 years prior to the year for which the annual
applicable tax is levied multiplied by .8 for the years 1972 through
1976; by .8 for the year 1977; by .87 for the year 1978; by .94 for the
year 1979; by 1.02 for the year 1980 and by 1.10 for the year 1981 and
by 1.18 for the year 1982 and by 1.36 for the year 1983 and by 1.54 for
the year 1984 and for each year thereafter.
This tax shall be levied and collected in like manner with the
general taxes of the county, and shall be in addition to all other taxes
which the county is authorized to levy upon the aggregate valuation of
all taxable property within the county and shall be exclusive of and in
addition to the amount of tax the county is authorized to levy for
general purposes under any laws which may limit the amount of tax which
the county may levy for general purposes. The county clerk, in reducing
tax levies under any Act concerning the levy and extension of taxes,
shall not consider this tax as a part of the general tax levy for county
purposes, and shall not include it within any limitation of the per cent
of the assessed valuation upon which taxes are required to be extended
for the county. It is lawful to extend this tax in addition to the
general county rate fixed by statute, without being authorized as
additional by a vote of the people of the county.
Revenues derived from this tax shall be paid to the treasurer of the
county and held by the treasurer for the benefit of the fund.
If the payments on account of taxes are insufficient during any year
to meet the requirements of this Article, the county may issue tax
anticipation warrants against the current tax levy.
(b) By January 10, annually, the board shall notify the county board
of the requirement of this Article that this tax shall be levied. The
board shall make an annual determination
of the required county contributions, and shall certify the results
thereof to the county board.
(c) Beginning in the year 2024, the county's minimum required employer contribution as provided in Section 9-169.2 shall be paid with the portion of the tax levy as provided in subsection (a) of this Section and any other lawfully available funds of the county. The county shall disburse to and deposit with the county treasurer on a monthly basis beginning no later than the December 31 preceding the beginning of the Fund's fiscal year 1/12 of the balance of what is not paid under subsection (a), for the benefit of the Fund, to be held in accordance with this Article. This amount, together with such real estate taxes as are specifically levied under this Section for that year, shall not be less than the amount of the minimum required employer contribution for that year as certified by the Fund to the county board. The deposit may be derived from any source otherwise legally available to the county for that purpose, including, but not limited to, home rule taxes. The making of a deposit shall satisfy the requirements of this Section for that year to the extent of the amounts so deposited. Amounts deposited under this subsection may be used by the Fund for any of the purposes for which the proceeds of real estate taxes levied by the county under this Section may otherwise be used, including the payment of any amount that is otherwise required by this Article to be paid from the proceeds of that tax. If the county, before the effective date of this amendatory Act of the 103rd General Assembly, made a contribution or agreed to make a contribution to the Fund from sources other than real estate taxes, this paragraph confirms the validity of or ratifies such contribution or agreement, and neither the county nor any of its officers or employees shall be required to answer for such contribution or agreement in any court.
If it is not possible or practicable for the county to make
contributions for age and service annuity and widow's annuity
concurrently with the employee contributions made for such purposes,
such county shall make such contributions as soon as possible and
practicable thereafter with interest thereon at the effective rate until
the time it shall be made.
(d) With respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, subsequent to October 1, 1978, and in instances
where the board has elected to establish a manpower program reserve, the
board shall compute the amounts necessary to be credited to the manpower
program reserves established and maintained as herein provided, and
shall make a periodic determination of the amount of required
contributions from the County to the reserve to be reimbursed by the
federal government in accordance with rules and regulations established
by the Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the County Board. Any such
amounts shall become a credit to the County and will be used to reduce
the amount which the County would otherwise contribute during succeeding
years for all employees.
(e) In lieu of establishing a manpower program reserve with respect
to employees whose wages are funded as participants under the
Comprehensive Employment and Training Act of 1973, as authorized by
subsection (d), the board may elect to establish a special County
contribution rate for all such employees. If this option is elected, the
County shall contribute to the Fund from federal funds provided under
the Comprehensive Employment and Training Act program at the special
rate so established and such contributions shall become a credit to the
County and be used to reduce the amount which the County would otherwise
contribute during succeeding years for all employees.
(Source: P.A. 103-529, eff. 8-11-23.)
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(40 ILCS 5/9-169.1) Sec. 9-169.1. Annual actuarial report. The retirement board shall retain an actuary who is a member in good standing of the American Academy of Actuaries to produce an annual actuarial report of the Fund. The annual actuarial report shall include, but not be limited to: (1) a statement of the minimum required contribution, the actuarial value of the Fund's assets as projected over at least 30 years' time, and the actuarial value of the Fund's liabilities as projected over the same period of time; and (2) the minimum required employer contribution, as determined under Section 9-169.2, for the second year immediately following the year ending on the valuation date upon which the annual actuarial report is based. The annual actuarial report may be prepared as part of the annual audit required under Section 9-195. The annual actuarial report shall be reviewed and formally adopted by the retirement board and shall be included in the annual report that is required to be submitted to the county in July of each year under Section 9-199. In this Section, "valuation date" means the date that the value of the assets and liabilities of the Fund is based on in the annual actuarial report.
(Source: P.A. 103-529, eff. 8-11-23.) |
(40 ILCS 5/9-169.2) Sec. 9-169.2. Minimum required employer contribution. The minimum required employer contribution for a specified year, as set forth in the annual actuarial report required under Section 9-169.1, shall be the amount determined by the Fund's actuary to be equal to the sum of: (i) the projected normal cost for pensions for that fiscal year based on the entry age actuarial cost method, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, less (v) projected employee contributions for that fiscal year. The minimum required employer contribution for the next year shall be submitted annually by the county on or before June 14 of each year unless another time frame is agreed upon by the county and the Fund. For the purposes of this Section: "5-Year smoothed actuarial value of assets" means the value of assets as determined by a method that spreads the effect of each year's investment return in excess of or below the expected return. "Entry age actuarial cost method" means a method of determining the normal cost and is determined as a level percentage of pay that, if paid from entry age to the assumed retirement age, assuming all the actuarial assumptions are exactly met by experience and no changes in assumptions or benefit provisions, would accumulate to a fund sufficient to pay all benefits provided by the Fund. "Layered amortization" means a technique that separately layers the different components of the unfunded actuarial accrued liabilities to be amortized over a fixed period not to exceed 30 years. "Projected expenses" means the projected administrative expenses for the cost of administrating the Fund. "Projected normal costs for pensions" means the cost of the benefits that accrue during the year for active members under the entry age actuarial cost method. "Unfunded actuarial accrued liability amortization payment" means the annual contribution equal to the difference between the values of assets and the accrued liabilities of the plan, calculated by an actuary, needed to amortize the Fund's liabilities over a period of 30 years starting in 2017, with layered amortization of the Fund's unexpected unfunded actuarial accrued liability amortization payment following 2017 in periods of 30 years, with amortization payments increasing 2% per year, and reflecting a discount rate for all liabilities consistent with the assumed investment rate of return on fund assets and a 5-year smoothed actuarial value of assets.
(Source: P.A. 103-529, eff. 8-11-23.) |
(40 ILCS 5/9-170) (from Ch. 108 1/2, par. 9-170)
Sec. 9-170.
Contributions for age and service annuities for present
employees, future entrants and re-entrants.
(a) Beginning on the effective date as to a present employee in
paragraph (a) or (c) of Section 9-109, or as to a future entrant in
paragraph (a) of Section 9-110, and beginning on September 1, 1935 as
to a present employee in paragraph (b) (1) of Section 9-109 or as to a
future entrant in paragraph (b) or (d) of Section 9-110, and beginning
from the date of becoming a contributor as to any present employee in
paragraph (b)(2) or (d) of Section 9-109, or any future entrant in
paragraph (c) or (e) of Section 9-110, there shall be deducted and
contributed to this fund 3 1/4% of each payment of salary for age and
service annuity until July 1, 1947. Beginning July 1, 1947 and prior to
July 1, 1953, 5% and beginning July 1, 1953, and prior to September 1,
1971, 6%; and beginning September 1, 1971, 6 1/2% of each payment of
salary of such employees shall be deducted and contributed for such
purpose.
From and after January 1, 1966, each deputy sheriff as defined
in Section 9-128.1 who is a member of the County Police Department and
a participant of this fund shall contribute 7% of salary for age and
service annuity. At the time of retirement on annuity, a deputy sheriff
who is a member of the County Police Department, who chooses to retire
under provisions of this Article other than Section 9-128.1, may receive a
refund of the difference between the contributions made as a deputy sheriff
who is a member of the County Police Department and the contributions that
would have been made for such service not as a deputy sheriff who is a
member of the County Police Department, including interest earned.
Such deductions beginning on the effective date and prior to July 1,
1947 shall be made and continued for a future entrant while he is in the
service until he attains age 65, and beginning on the effective date and
prior to July 1, 1953 for a present employee while he is in the service
until the amount so deducted from his salary or paid by him according to
law to any county pension
fund in force on the effective date, with interest on both such amounts
at 4% per annum, equals the sum that would have been to his credit from
sums deducted from his salary if deductions at the rate herein stated
had been made during his entire service until he attained age 65, with
interest at 4% per annum for the period subsequent to his attainment of
age 65. Such deductions beginning July 1, 1947 for future entrants and
beginning July 1, 1953 for present employees shall be made and continued
while such future entrant or present employee is in the service.
(b) Concurrently with each employee contribution, the county shall
contribute beginning on the effective date and prior to July 1, 1947, 5
3/4%, and beginning on July 1, 1947 and prior to July 1, 1953, 7%; and
beginning on July 1, 1953, 6% of each payment of such salary until the
employee attains age 65.
(c) Each present employee contribution made prior to the date the
age and service annuity for such employee is fixed, each future entrant
contribution, and each corresponding county contribution shall be
allocated to the account of and credited to the employee for whose
benefit it is made.
(Source: P.A. 86-1488.)
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(40 ILCS 5/9-170.1) (from Ch. 108 1/2, par. 9-170.1)
Sec. 9-170.1.
From and after January 1, 1970 any employee who is
credited with 35 or more years of contributing service may elect to
discontinue the salary deductions for all annuities as specified in
Sections 9-133, 9-170, and 9-176. Upon such election the
annuity for the employee and his wife or widow is fixed and determined as of
the date of such discontinuance. No increase in annuity for the employee or
his wife or widow accrues thereafter while he is in service. This election
shall be in writing to the Retirement Board at least 60 days before the date
the salary deductions cease.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/9-170.2) (from Ch. 108 1/2, par. 9-170.2)
Sec. 9-170.2.
The county may pick up the employee contributions required
by Sections 9-133, 9-170, 9-176, 9-176.1 for salary earned after December
31, 1981. If employee contributions are not picked up, the amount that
would have been picked up under this amendatory Act of 1980 shall continue
to be deducted from salary. If contributions are picked up they shall be
treated as employer contributions in determining tax treatment under the
United States Internal Revenue Code; however, the county shall continue
to withhold Federal and state income taxes based upon these contributions
until the Internal Revenue Service or the Federal courts rule that pursuant
to Section 414(h) of the United States Internal Revenue Code, these contributions
shall not be included as gross income of the employee
until such time as they are distributed or made available.
The county shall pay these
employee contributions from the same source of funds which is used in paying
salary to the employee. The county
may pick up these contributions by a reduction in the cash salary of the
employee or by an offset against a future salary increase or by a combination
of a reduction in salary and offset against a future salary increase. If
employee contributions are picked up they shall be treated for all purposes
of this Article 9, including Section 9-169, in the same manner and to the
same extent as employee contributions made prior to the date picked up.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-171) (from Ch. 108 1/2, par. 9-171)
Sec. 9-171.
Additional contributions for age and service annuities for present
employees, future entrants and re-entrants.
(a) From and after September 1, 1935, in addition to the contributions
provided in Section 9-170 for each present employee described in
subdivision (b) of Section 9-109 and each future entrant and each
re-entrant described in subdivision (d) or (e) of Section 9-110, 3 1/4% of
each payment of salary, not in excess of salary of $3,000 per year, shall
be contributed by an employee for age and service annuity. Upon election by
such employee made prior to September 1, 1935, any other integral multiple
of 3 1/4% of such payment shall be contributed.
The contributions shall be made as a deduction from salary and shall be
continued while the employee is in service until the total of the amounts
contributed for age and service annuity with interest at the effective rate
is equal to the sum which would have accumulated under this Article because
of contributions for age and service annuity if such contributions were
made for such purposes during the entire periods of his service for such
county or the retirement board under this Article and improved by interest
at the effective rate.
(b) Concurrently with each such contribution, the county shall
contribute 5 3/4% of each payment of salary, not in excess of $3,000 a
year. Such contributions shall be made until the total of the amounts
contributed by the county on behalf of such employee for age and service
annuity with interest at the effective rate shall be equal to the sum which
would have accumulated from county contributions for age and service
annuity if contributions by the county had been made for such purposes
during the entire periods of service in accordance with this Article and
improved by interest to such time at the effective rate.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-172) (from Ch. 108 1/2, par. 9-172)
Sec. 9-172.
Contributions by employee after annuity is fixed.
Any contributions by an employee from and after the date when his age
and service annuity is fixed shall not increase the amount of such
annuity. The contributions shall be applied toward the extra cost of a
minimum annuity where payable over the amount of age and service
annuity. The accumulated sum arising therefrom shall be refunded when
the employee withdraws from service if he is not entitled to annuity, or
shall be applied toward the extra cost of such minimum annuity if he is
eligible therefor over the age and service annuity to the extent of such
extra cost as provided in Section 9-150 of this Act and the balance, if
any, shall be refunded. When the employee is not entitled to minimum
annuity, or upon death of the employee while in the service after
attaining age 65 with less than 10 years of service credit at date of
death, the accumulated sum arising from employee contributions after his
annuity was fixed at age 65 shall be refunded to his widow.
(Source: P.A. 83-1362.)
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(40 ILCS 5/9-173) (from Ch. 108 1/2, par. 9-173)
Sec. 9-173.
Additional contributions and credits-all employees.
Any employee in service on July 1, 1947, may elect to make additional
contributions while in service which shall not exceed 7/13 of the sum
accumulated for age and service annuity on July 1, 1947, or at age 65 if he
attained such age prior thereto. The time and manner of making such
additional contributions shall be prescribed by the board. Concurrently
with each such additional contribution, the county shall contribute 1 and
4/10 times the additional contributions.
These contributions shall be improved at interest at the rate and in
like manner as other employee and county contributions; provided, that the
employee, while in service, may request a refund of all or any part of his
contributions, without interest, or shall have them refunded to him,
without interest, when he retires on annuity or to his widow, if and to the
extent they do not serve to increase the annuity otherwise payable to him
or his widow.
By such refund the employee or his widow surrenders and forfeits all
rights which might otherwise have accrued by virtue of any amount so
refunded, including related county contributions.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-174) (from Ch. 108 1/2, par. 9-174)
Sec. 9-174.
Contributions by disabled employee whose ordinary disability benefit has
expired.
In the case of any disabled employee whose credit for ordinary
disability benefit purposes has expired and who continues to be disabled
such employee shall have the right to contribute to the fund at the current
contribution rate for a period not to exceed a total of 12 months during
his entire period of service and to receive credit for all annuity purposes
for any such periods paid for. Such payment shall not affect the
employee's resignation date for purposes of annuity.
(Source: P.A. 86-1488.)
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(40 ILCS 5/9-175) (from Ch. 108 1/2, par. 9-175)
Sec. 9-175.
Interest credits-all employees.
Amounts allocated to the account of and credited for age and service and
prior service annuity shall be improved by interest at the effective rate
during the time thereafter an employee is in service until the amount of
his annuity is fixed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-176) (from Ch. 108 1/2, par. 9-176)
Sec. 9-176.
Contributions for widow's annuity for widows of present employees, future
entrants and re-entrants.
(a) Beginning on the effective date as to a present employee in
paragraph (a) or (c) of Section 9-109, or as to a future entrant in
paragraph (a) of Section 9-110, and beginning on September 1, 1935, as to
a present employee in paragraph (b) (1) of Section 9-109 or as to a future
entrant in paragraph (b) or (d) of Section 9-110, and beginning from the
date of becoming a contributor as to any present employee in paragraph (b)
(2) or (d) of Section 9-109, or any future entrant in paragraph (c) or (e)
of Section 9-110, there shall be deducted and contributed by each male
employee 1%, and from and after January 1, 1966, 1 1/2%, of each payment of
salary for widow's annuity. Deductions shall be continued during service
until the employee attains age 65.
(b) Concurrently with each employee contribution, the county shall
contribute beginning on the effective date and prior to July 1, 1947, 1
3/4%, and beginning on July 1, 1947, 2% of salary.
(c) Each employee contribution made prior to the date when the amount of
widow's annuity for an employee is fixed and each concurrent County
Contribution Credit shall be allocated to the account of and credited to
the employee for whose benefit it is made.
(Source: Laws 1965, p. 1254.)
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(40 ILCS 5/9-176.1) (from Ch. 108 1/2, par. 9-176.1)
Sec. 9-176.1.
Contributions by female employees.
(a) Effective as of October 1, 1974, each female employee shall
contribute at the same rates as a
male employee for widow's annuity or
other benefits, to the end that like credits may be established and
maintained for both male and female employees for all purposes of this
Article with respect to annuities, benefits, contribution rates, refunds
and other provisions of this Article.
(b) Any female employee shall have the option of making
contributions for the aforesaid purposes covering the period prior to
October 1, 1974, and receiving pension credits therefor, including the
concurrent credits from city contributions. Such contributions shall
include interest at 4% per annum from the dates such contributions
should have been made from the beginning of their service to the dates
of payment to the end that equal credits may be provided for all
employees under this Article.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-177) (from Ch. 108 1/2, par. 9-177)
Sec. 9-177.
Additional contributions for widow's annuity for widows of
present employees, future entrants and re-entrants. In addition to the
contributions to be made by each employee and by the county for widow's
annuity as herein provided additional contributions shall be made as follows:
(a) Beginning September 1, 1935, 1% of each payment of salary, not in
excess of $3,000 a year, of each present employee described in subdivision
(b) of Section 9-109, and of each future entrant and re-entrant
described in subdivision (d) or (e) of Section 9-110.
(b) Concurrently with each deduction from salary, the county shall
contribute a sum equal to 1 3/4% of each payment of salary, not in excess
of $3,000 a year.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/9-178) (from Ch. 108 1/2, par. 9-178)
Sec. 9-178.
Widow's annuity interest credits-all employees.
Amounts allocated to the account of and credited to the employee for
widow's and widow's prior service annuity shall be improved by interest at
the effective rate during the time thereafter the employee is in service,
until the amount of her annuity is fixed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-179) (from Ch. 108 1/2, par. 9-179)
Sec. 9-179.
Election as to amount to be deducted from compensation-refunds.
(a) Any employee who failed to elect to make contributions beginning on
September 1, 1935, for any period of service while he was not a contributor
to the fund or any employee who elected to make contributions for such
period and desires to change the amounts previously authorized by him, may,
upon application to the board elect to make such contributions. Any such
election shall be made in accordance with the provisions of this Article.
Interest on sums accumulated to the credit of such employee shall be
adjusted for the periods of time during which such contributions are made.
(b) Any employee may contribute to the fund for any period of service
rendered to such county after January 1, 1926, by virtue of appointment or
election to a position which did not allow him to contribute or to receive
credit under the provisions of "The 1925 Act" of this Article. Such
contributions may include: (1) any period during which he was in the armed
service of the United States if he left the service of the county to enter
military service in the armed services and returned to the service of such
county within 90 days after his discharge from such armed service, and if
such county did not make such payment on his behalf, (2) any period of
service for the county for which salary or wages were paid in whole or in
part by the State of Illinois and for which he was not allowed to
participate in a pension fund and also such period of service for which
lodging, board, and laundry was provided by the employer, in lieu of
salary, and no other salary or wages were paid, in which case the salary
base to be considered for such service shall be the amount set forth in
Section 9-112, paragraph (c) of this Article, (3) such amounts as he would
have contributed for annuity purposes had deductions from his salary been
made at the rates in effect under the provisions of "The 1925 Act" during
the period of time such service was rendered.
Upon making such contributions he shall be credited with concurrent
county contributions at the rates in effect for county employees during the
periods such service was rendered. Such payments and concurrent county
contributions shall be made with interest at the effective rate and shall,
together with all other amounts contributed by such employee for annuity
purposes, be considered in computing the annuities to which such employee
or his widow shall have a right. Any such periods of service for which
payment is made shall be counted as periods of service for annuity
purposes.
In order to be credited as service under Section 9-134 of this Article
all such payments by a county employee must be made in full while the
employee is still in service of the county. If payment is not so made any
payments made with interest at the effective rate shall be refunded to the
employee when he withdraws from service, or to his widow in the event of
his death, or if no widow, in accordance with the other refund provisions
of this Article. The employee may elect to have such partial payments made
by him, together with the concurrent county contributions and interest,
credited toward the age and service and widow's annuities on the assumption
that the payments shall apply to his earliest service. In the event of
death of the employee, while in service, his widow may elect to have such
payments and related county contributions, and interest, credited for
widow's annuity, to the extent that they do not increase her annuity above
that fixed for her on the assumption her deceased husband had continued in
service at the rate of his final salary until he became 65 years of age,
and the proportional part of the payments and related contributions were
included.
(Source: P.A. 77-1199.)
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(40 ILCS 5/9-179.1) (from Ch. 108 1/2, par. 9-179.1)
Sec. 9-179.1. Military service. A contributing employee may apply for creditable
service for up to 2 years of military service whether or not the military
service followed service as a county employee. The military service need
not have been served in wartime, but the employee must not have been
dishonorably discharged. To establish this creditable service the
applicant must pay to the Fund, while in the service of the county, an
amount determined by the Fund to represent the employee contributions for
the creditable service established, based on the employee's rate of
compensation on his or her last day as a contributor before the military
service, or on his or her first day as a contributor after the military
service, whichever is greater, plus interest at the effective rate from the
date of discharge to the date of payment. If a person who has established
any credit under this Section applies for or receives any early retirement
incentive under Section 9-134.2, the credit under this Section shall be
forfeited and the amount paid to the Fund under this Section shall be
refunded.
(Source: P.A. 103-529, eff. 8-11-23.)
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(40 ILCS 5/9-179.2) (from Ch. 108 1/2, par. 9-179.2)
Sec. 9-179.2. Other governmental service-former county
service. Any employee who first becomes a contributor before the effective date of this amendatory Act of the 99th General Assembly, who has rendered service to any
"governmental unit" as such term is defined in the
"Retirement Systems Reciprocal Act" under Article 20 of the
Illinois Pension Code, who did not contribute to the retirement
system of such "governmental unit", including the retirement
system created by this Article 9 of the Illinois Pension Code,
for such service because of ineligibility for participation and
has no equity or rights in such retirement system because of
such service shall be given credit for such service in this
fund, provided:
(a) the employee shall pay to this fund, while in the | ||
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(b) this Section shall not be applicable to any | ||
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(Source: P.A. 99-578, eff. 7-15-16.)
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(40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
Sec. 9-179.3. Optional plan of additional benefits and contributions.
(a) While this plan is in effect, an employee may establish additional
optional credit for additional optional benefits by electing in writing at
any time to make additional optional contributions. The employee may
discontinue making the additional optional contributions at any time by
notifying the fund in writing.
(b) Additional optional contributions for the additional optional
benefits shall be as follows:
(1) For service after the option is elected, an | ||
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(2) For service before the option is elected, an | ||
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(c) Additional optional benefits shall accrue for all periods of
eligible service for which additional contributions are paid in full. The
additional benefit shall consist of an additional 1% for each year of
service for which optional contributions have been paid, based on the
highest average annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of withdrawal, to be
added to the employee retirement annuity benefits as otherwise computed
under this Article. The calculation of these additional benefits shall be
subject to the same terms and conditions as are used in the calculation of
retirement annuity under Section 9-134. The additional benefit shall be
included in the calculation of the automatic annual increase in annuity,
and in the calculation of widow's annuity, where applicable. However no
additional benefits will be granted which produce a total annuity greater
than the applicable maximum established for that type of annuity in this
Article, and additional benefits shall not apply to any benefit computed
under Section 9-128.1.
(d) Refunds of additional optional contributions shall be made on the
same basis and under the same conditions as provided under Sections 9-164,
9-166 and 9-167. Interest shall be credited at the effective rate on the
same basis and under the same conditions as for other contributions.
(e) (Blank).
(f) The tax levy, computed under Section 9-169, shall be based on
employee contributions including the amount of optional additional employee
contributions.
(g) Service eligible under this Section may include only service as an
employee of the County as defined in Section 9-108, and subject to Sections
9-219 and 9-220. No service granted under Section 9-121.1, 9-121.4 or
9-179.2 shall be eligible for optional service credit. No optional service
credit may be established for any military service, or for any service
under any other Article of this Code. Optional service credit may be
established for any period of disability paid from this fund, if the employee
makes additional optional contributions for such periods of disability.
(h) This plan of optional benefits and contributions shall not apply to
any former county employee receiving an annuity from the fund, who
re-enters service as a County employee, unless he renders at least 3 years
of additional service after the date of re-entry.
(i) The effective date of the optional plan of additional benefits and
contributions shall be July 1, 1985, or the date upon which approval is
received from the Internal Revenue Service, whichever is later.
(j) This plan of additional benefits and contributions shall expire
July 1, 2005. No additional contributions may be made after
that date, and no additional benefits will accrue after that date.
(Source: P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-179.4) Sec. 9-179.4. Service for periods of furlough or salary reduction. (a) An active participant may establish service credit and earnings credit for periods of furlough beginning on or after December 1, 2017 and ending on or before November 30, 2018. To receive this credit, the participant must (i) apply in writing to the Fund before December 31, 2019; (ii) not receive compensation or any type of remuneration from the county for any furlough period; (iii) make, on an after-tax basis, employee contributions required under this Article based on his or her salary during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of furlough to the date of payment; and (iv) pay the employee contributions required by this Section while he or she is an active participant and within 12 months after the date of application. The participant shall provide, at the time of application, written certification from the county stating (1) the total number of furlough days the participant has been required to take and (2) that the participant has not received compensation or any type of remuneration from the county for such furlough days. (b) An active participant may establish earnings credit for periods of salary reduction beginning on or after December 1, 2017 and ending on or before November 30, 2018. To receive this credit, the participant must: (i) apply in writing to the Fund before December 31, 2019; (ii) not receive compensation or any type of remuneration from the county for any reduction in salary; (iii) make, on an after-tax basis, employee contributions required under this Article based on the reduction in salary, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of reduction in salary to the date of payment; and (iv) pay the employee contributions required by this Section while he or she is an active participant and within 12 months after the date of application. The participant shall provide, at the time of application, written certification from the county stating (1) the total reduction in salary for each pay period with a reduction in salary and (2) that the participant has not received compensation or any type of remuneration from the county for such reduction in salary. (c) For the purposes of this Section, the employer's normal cost shall be determined by the Fund's actuarial valuation for the year ending December 31, 2018. Any payments received under this Section shall be considered contributions made by the employee for the purposes of Sections 9-169 and 10-107 of this Code.
(Source: P.A. 101-11, eff. 6-7-19.) |
(40 ILCS 5/9-180) (from Ch. 108 1/2, par. 9-180)
Sec. 9-180.
Contributions by county for duty disability benefit.
In lieu of all amounts ordinarily contributed by an employee and by
the county for age and service annuity, and widow's annuity the county
shall contribute sums equal to such amounts for any period during which
the employee receives duty disability benefit to be credited to the
disabled employee for annuity purposes as though he were in active
discharge of his duties during any such period of disability.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-181) (from Ch. 108 1/2, par. 9-181)
Sec. 9-181.
Contributions by county for ordinary disability benefit.
The county shall contribute all amounts ordinarily contributed by it for
annuity purposes for any employee receiving ordinary disability benefit as
though he were in active discharge of his duties during such period of
disability.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-182) (from Ch. 108 1/2, par. 9-182)
Sec. 9-182. Contributions by county for prior service annuities and
pensions under former acts.
(a) The county, State or federal contributions authorized in
Section 9-169 shall be applied first for the purposes of this
Article 9 other than those stated in this Section.
The balance of the sum produced from such contributions shall be applied
for the following purposes:
1. "An Act to provide for the formation and | ||
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2. Section 9-225 of this Article;
3. To meet such part of any minimum annuity as shall | ||
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4. (Blank);
5. (Blank).
(b) (Blank).
(Source: P.A. 95-369, eff. 8-23-07.)
|
(40 ILCS 5/9-183) (from Ch. 108 1/2, par. 9-183)
Sec. 9-183.
Contribution by county for administration costs.
The county shall contribute, from revenue derived from taxes herein
authorized, the amount necessary to defray costs of administration of the
fund.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/9-184) (from Ch. 108 1/2, par. 9-184)
Sec. 9-184. Estimates of sums required for certain annuities and benefits. The board shall estimate and itemize the amounts required each year to pay for all
annuities, each benefit category, and administrative expenses associated with this Article, by way of a written report and request to the County Board of Commissioners. The amounts shall be
paid into the fund annually by the county as provided in Section 9-169.
(Source: P.A. 103-529, eff. 8-11-23.)
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(40 ILCS 5/9-184.5) Sec. 9-184.5. Delinquent contributions; deduction from payments of State funds to the county. If the county fails to transmit to the Fund contributions required of it under this Article by December 31st of the year in which such contributions are due, the Fund may, after giving notice to the county, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in payment year 2016, deduct and remit to the Fund the certified amounts from payments of State funds to the county. The State Comptroller may not deduct from any payments of State funds to the county more than the amount of delinquent payments certified to the State Comptroller by the Fund.
(Source: P.A. 99-8, eff. 7-9-15.) |
(40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
Sec. 9-185. Board created.
(a) A board of 9 members shall constitute the
board of trustees authorized to carry out the provisions of this Article.
The board of trustees shall be known as "The Retirement Board of the County
Employees' Annuity and Benefit Fund of .... County". The board shall
consist of 2 members appointed and 7 members elected as
hereinafter prescribed.
(b) The appointed members shall be appointed as follows: One member
shall be appointed by the comptroller of such county, who may be the
comptroller or some person chosen by the comptroller from among employees of the county,
who are
versed in the affairs of the comptroller's office; and one member shall be
appointed by the treasurer of such county, who may be the treasurer or some
person chosen by the treasurer from among employees of the County who are versed in
the affairs of the treasurer's office.
The member appointed by the comptroller shall hold office for a term
ending on December 1st of the first year following the year of appointment.
The member appointed by the county treasurer shall hold office for a term
ending on December 1st of the second year following the year of appointment.
Thereafter, each appointed member shall be appointed by the officer that
appointed the predecessor for a term of 2 years.
(c) Three county employee members of the board shall be
elected as follows: within 30 days from and after the date upon which this
Article comes into effect in the county, the clerk of the county shall
arrange for and hold an election. One employee shall be elected for a term
ending on the first day in the month of December of the first year next
following the effective date; one for a term ending on December 1st of the
following year; and one for a term ending December 1st of the second following
year.
(d) Beginning December 1, 1988, and every 3 years thereafter,
an annuitant member of the board shall be elected as follows:
the board shall arrange for and hold an election in which only those
participants who are currently receiving retirement benefits
under this Article shall be eligible to vote and be elected. Each such
member shall be elected to a term ending on the first day in the month of
December of the third following year.
(d-1) Beginning December 1, 2001, and every 3 years thereafter, an
annuitant member of the board shall be elected as follows:
the board shall arrange for and hold an election in which only those
participants who are currently receiving retirement benefits
under this Article shall be eligible to vote and be elected. Each such
member shall be elected to a term ending on the first day in the month of
December of the third following year. Until December 1, 2001, the position
created under this subsection (d-1) may be filled by the board as in the case
of a vacancy.
(e) Beginning December 1, 1988, if a Forest Preserve District Employees'
Annuity and Benefit Fund shall be in force in such county and the board of
this fund is charged with administering the affairs of such annuity and
benefit fund for employees of such forest preserve district, a forest
preserve district member of the board shall be elected as of December 1, 1988,
and every 3 years thereafter as follows: the board shall arrange for and
hold an election in which only those employees of such forest preserve
district who are contributors to the annuity and benefit fund for employees
of such forest preserve district shall be eligible to vote and be elected.
Each such member shall be elected to a term ending on the first day in the
month of December of the third following year.
(f) Beginning December 1, 2001, and every 3 years thereafter, if a Forest
Preserve District Employees' Annuity and Benefit Fund is in force in the
county and the board of this Fund is charged with administering the affairs of
that annuity and benefit fund for employees of the forest preserve district,
a forest preserve district annuitant member of the board shall be elected as
follows: the board shall arrange for and hold an election in which only those
participants who are currently receiving retirement benefits under Article 10
shall be eligible to vote and be elected. Each such member shall be elected to
a term ending on the first day in the month of December of the third following
year. Until December 1, 2001, the position created under this subsection (f)
may be filled by the board as in the case of a vacancy.
(Source: P.A. 103-529, eff. 8-11-23.)
|
(40 ILCS 5/9-186) (from Ch. 108 1/2, par. 9-186)
Sec. 9-186.
Board elections.
In each year, the board shall conduct a
regular election, under rules adopted by it, at least 30 days prior to the
expiration of the term of each elected employee or annuitant member.
To be eligible to be a county employee member, a person must be an
employee of the county and must have at least 5 years of service credit in
that capacity by December 1 of the year of election. To be eligible to be
a forest preserve district member, a person must be an employee of the
forest preserve district and must have at least 5 years of service credit
in that capacity by December 1 of the year of election.
Only those persons who are employees of the county shall be eligible to vote
for the 3 county employee members, only those persons who are employees of the
forest preserve district shall be eligible to vote for the forest preserve
district member, only those persons who are currently receiving
retirement benefits under this Article shall be eligible to
vote
for the annuitant members elected under subsections (d) and (d-1) of Section
9-185, and only those persons who are currently receiving retirement benefits
under Article 10 shall be eligible to vote for the forest preserve district
annuitant member elected under subsection (f) of Section 9-185. The
ballot shall be of secret character.
Except as otherwise provided in Section 9-187, each member of the board
shall hold office until his successor is chosen and has qualified.
Any person elected or appointed a member of the board shall qualify
for the office by taking an oath of office to be administered by the county
clerk or a person designated by him. A copy thereof shall be kept in the
office of the county clerk. Any appointment or notice of election shall be
in writing and the written instrument shall be filed with the oath.
(Source: P.A. 92-66, eff. 7-12-01.)
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(40 ILCS 5/9-187) (from Ch. 108 1/2, par. 9-187)
Sec. 9-187.
Board vacancy.
(a) A vacancy in the membership of the board shall be filled as follows:
If the vacancy is that of an appointive member, the official who
appointed him shall appoint a person to serve for the unexpired term.
If the vacancy is that of a county employee member, the remaining members of
the board shall appoint a successor from among the employees of the county,
who shall serve during the remainder of the unexpired term.
If the vacancy is that of a forest preserve district member, the remaining
members of the board shall appoint a successor from among the employees of
the forest preserve district, who shall serve during the remainder of the
unexpired term.
If the vacancy is that of an annuitant member other than a forest preserve
district annuitant member, the remaining members of the board shall appoint
a successor from among those persons who are currently receiving retirement benefits under this Article.
If the vacancy is that of a forest preserve district annuitant member,
the remaining members of the board shall appoint a successor from among those
persons who are currently receiving retirement benefits under Article 10.
(b) Any county or forest preserve district member who withdraws from
service shall automatically cease to be a member of the board. Any annuitant
member (other than a forest preserve district annuitant member) whose
retirement benefits cease under this Article, and any
forest preserve district annuitant member whose retirement benefits cease under
Article 10, shall also automatically cease to be a member of the Board.
(Source: P.A. 92-66, eff. 7-12-01.)
|
(40 ILCS 5/9-188) (from Ch. 108 1/2, par. 9-188)
Sec. 9-188.
Board officers.
The board shall elect annually at its regular December meeting from
among its members, by a majority vote of the members voting on the
question, a president, vice-president and a secretary who shall serve,
respectively, until a successor is elected. The secretary shall keep a
complete record of the proceedings of all board meetings and perform such
other duties as the board directs.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-189) (from Ch. 108 1/2, par. 9-189)
Sec. 9-189.
Board meetings.
The board shall hold regular meetings in each
month and special meetings as it deems necessary. A majority of the members
shall constitute a quorum for the transaction of business at any meeting,
but no annuity or benefit shall be granted or payments made by the fund
unless ordered by a vote of the majority of the board members as shown by
roll call entered upon the official record of the meeting. Meetings of the
board shall be open to the public.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-190) (from Ch. 108 1/2, par. 9-190)
Sec. 9-190. Board powers and duties. The board shall have the powers and duties stated in Sections 9-191 to
9-202.1, inclusive, in addition to such other powers and duties provided in
this Article.
(Source: P.A. 98-551, eff. 8-27-13.)
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(40 ILCS 5/9-191) (from Ch. 108 1/2, par. 9-191)
Sec. 9-191.
To supervise collections.
To see that all amounts specified in this Article to be applied to the
fund, from any source, are collected and applied.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/9-192) (from Ch. 108 1/2, par. 9-192)
Sec. 9-192.
To notify of deductions.
To notify the comptroller of the county of the deductions to be made
from the salaries of employees.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-193) (from Ch. 108 1/2, par. 9-193)
Sec. 9-193.
To accept gifts.
To accept by gift, grant, bequest or otherwise any money or property of
any kind and use the same for the purposes of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194)
Sec. 9-194.
To invest the reserves.
To invest the reserves of the
fund in accordance with Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
1-114, and 1-115 of this Act. Investments made in accordance with Section
1-113 shall be deemed to be prudent.
The retirement board may sell any security held by it at any time it
deems it desirable.
The board may enter into agreements and execute documents that it
determines to be necessary to complete any investment transaction.
All investments shall be clearly held and accounted for to indicate
ownership by the board. The board may direct the registration of securities
in its own name or in the name of a nominee created for the express purpose
of registration of securities by a savings and loan association or national
or State bank or trust company authorized to conduct a trust business in the
State of Illinois.
Investments shall be carried at cost or at a value determined in
accordance with generally accepted accounting principles.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/9-194.1) (from Ch. 108 1/2, par. 9-194.1)
Sec. 9-194.1.
To lend securities.
The Board may lend securities owned
by the Fund to a borrower upon such terms and conditions as may be mutually
agreed in writing. The agreement shall provide that during the period of
the loan the Fund shall retain the right to receive, or collect from the
borrower, all dividends, interest rights, or any distributions to which the
Fund would have otherwise been entitled. The borrower shall deposit with
the Fund as collateral for the loan cash, U.S. Government securities, or
letters of credit equal to the market value of the securities at the time
the loan is made and shall increase the amount of collateral if and when
the Fund requests an additional amount because of subsequent increased
market value of the securities.
The period for which the securities may be loaned may not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 87-794.)
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(40 ILCS 5/9-194.2) (from Ch. 108 1/2, par. 9-194.2)
Sec. 9-194.2.
To rent office facilities.
The Retirement Board may
rent or lease any office facilities that it deems desirable for the
purposes of the Fund.
(Source: P.A. 87-794.)
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(40 ILCS 5/9-195) (from Ch. 108 1/2, par. 9-195)
Sec. 9-195. To have an audit. To have an audit of the accounts of the fund made at least once each
year by certified public accountants. The audit may include the preparation of the annual actuarial report required under Section 9-169.1.
(Source: P.A. 103-529, eff. 8-11-23.)
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(40 ILCS 5/9-196) (from Ch. 108 1/2, par. 9-196)
Sec. 9-196.
To authorize payments.
To authorize or suspend the payment of any annuity or benefit in
accordance with this Article. The board shall have exclusive original
jurisdiction in all matters relating to the fund, including, in addition to
all other matters, all claims for annuities, pensions, benefits or refunds.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-197) (from Ch. 108 1/2, par. 9-197)
Sec. 9-197.
To determine service credits.
To require each employee to file a statement concerning service rendered
the county prior to the effective date. The board shall make a
determination of the length of such service and establish from any
available information the period of service rendered prior to the effective
date.
Such determination shall be conclusive unless the board reconsiders and
changes its determination.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-198) (from Ch. 108 1/2, par. 9-198)
Sec. 9-198.
To issue certificate of prior service.
To issue a certificate showing the entire period of service rendered by
a present employee prior to the effective date and the amounts to his
credit for prior service and widow's prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-199) (from Ch. 108 1/2, par. 9-199)
Sec. 9-199. To submit an annual report. To submit a report in July of each year to the county board of the
county as of the close of business on December 31st of the preceding year.
The report shall contain a detailed statement of the affairs of the fund,
its income and expenditures, and assets and liabilities, and it shall include the annual actuarial report required under Section 9-169.1. The county board shall have power to require and
compel the retirement board to prepare and submit such reports.
(Source: P.A. 103-529, eff. 8-11-23.)
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(40 ILCS 5/9-200) (from Ch. 108 1/2, par. 9-200)
Sec. 9-200.
To subpoena witnesses.
To compel witnesses to attend and testify before it upon any matter
concerning the fund and allow witness fees not in excess of $6 for
attendance upon any one day. The president and other members of the board
may administer oaths to witnesses.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-201) (from Ch. 108 1/2, par. 9-201)
Sec. 9-201.
To appoint employees.
To appoint such actuarial, medical, legal, clerical or other employees
as are necessary and fix their compensation.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-202) (from Ch. 108 1/2, par. 9-202)
Sec. 9-202.
To make rules.
To make rules and regulations necessary for the administration of the
fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-202.1) Sec. 9-202.1. To reproduce records. To have any records kept by the board photographed, microfilmed, or digitally or electronically reproduced in accordance with the Local Records Act. The photographs, microfilm, and digital and electronic reproductions shall be deemed original records and documents for all purposes, including introduction in evidence before all courts and administrative agencies.
(Source: P.A. 98-551, eff. 8-27-13.) |
(40 ILCS 5/9-203) (from Ch. 108 1/2, par. 9-203)
Sec. 9-203.
Moneys to be held on deposit.
To make the payments authorized by this Article, the board may keep and
hold uninvested a sum not in excess of the amounts required to make all
annuity payments which become due and payable in the following 90 days.
Such sum or any part thereof shall be kept on deposit only in banks or
savings and loan associations authorized to do business under the laws
of this State. The amount which may be deposited in any such
bank or savings and loan association shall not exceed 25% of its paid
up capital and surplus.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or hereafter
amended.
(Source: P.A. 83-541.)
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(40 ILCS 5/9-204) (from Ch. 108 1/2, par. 9-204)
Sec. 9-204. Accounting.
An adequate system of accounts and records shall be established to give
effect to the requirements of this Article and to report the financial condition of the fund. Such additional data as is necessary for required calculations, actuarial valuations, and operation of the fund shall be maintained.
(Source: P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-205)
Sec. 9-205. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-206)
Sec. 9-206. (Repealed).
(Source: P.A. 81-1536. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-207)
Sec. 9-207. (Repealed).
(Source: P.A. 81-1536. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-208)
Sec. 9-208. (Repealed).
(Source: P.A. 81-1536. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-209)
Sec. 9-209. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-210)
Sec. 9-210. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-211)
Sec. 9-211. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-212)
Sec. 9-212. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-213)
Sec. 9-213. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-214)
Sec. 9-214. (Repealed).
(Source: P.A. 76-1574. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-215)
Sec. 9-215. (Repealed).
(Source: P.A. 81-1536. Repealed by P.A. 95-369, eff. 8-23-07.)
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(40 ILCS 5/9-216) (from Ch. 108 1/2, par. 9-216)
Sec. 9-216.
Treasurer of fund.
The county treasurer shall be ex-officio the treasurer and custodian
of the fund and shall furnish to the board a bond of such amount as the
board designates, which shall indemnify the board against any loss which
may result from any action or failure to act by him or any of his
agents. Fees and charges incidental to the procuring of such bond shall
be paid by the board. In addition to tax and employee contributions
constituting the fund, the treasurer
is authorized to receive and
deposit in the fund warrants issued by this State representing
deductions from the salary of the employees designated in paragraph (e)
of Section 9-108, but only for such period as they remain members of the
fund, and such other contributions of State funds as may be authorized
by law.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-217) (from Ch. 108 1/2, par. 9-217)
Sec. 9-217.
Attorney.
The chief legal officer of the county shall be the legal advisor of an
attorney for the board. If it shall deem such action necessary for the
conservation of the fund, the board may in its discretion employ another
attorney for advice or other service in relation to any particular case.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-218) (from Ch. 108 1/2, par. 9-218)
Sec. 9-218.
Computation of term of service, annual salary and salary
deductions.
For the purpose of this Article, term of service, annual salary, and
salary deductions shall be
computed as provided in Sections 9-219 to
9- 222 inclusive.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 9-219. Computation of service.
(1) In computing the term of service of an employee prior to the effective
date, the entire period beginning on the date he was first appointed and
ending on the day before the effective date, except any intervening period
during which he was separated by withdrawal from service, shall be counted
for all purposes of this Article.
(2) In computing the term of service of any employee on or after the
effective date, the following periods of time shall be counted as periods
of service for age and service, widow's and child's annuity purposes:
(a) The time during which he performed the duties of | ||
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(b) Vacations, leaves of absence with whole or part | ||
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(c) For an employee who is a member of a county | ||
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For a former member of a county police department who | ||
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For leaves of absence to which this item (c) applies | ||
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(d) Any period of disability for which he received | ||
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(e) For a person who first becomes an employee before | ||
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(f) An employee who first becomes an employee before | ||
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(3) In computing the term of service of an employee on or after the
effective date for ordinary disability benefit purposes, the following
periods of time shall be counted as periods of service:
(a) Unless otherwise specified in Section 9-157, the | ||
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(b) Paid vacations and leaves of absence with whole | ||
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(c) Any period for which he received duty disability | ||
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(d) Any period of disability for which he received | ||
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(4) For an employee who on January 1, 1958, was transferred by Act
of the 70th General Assembly from his position in a department of welfare
of any city located in the county in which this Article is in force and
effect to a similar position in a department of such county, service shall
also be credited for ordinary disability benefit and child's annuity for
such period of department of welfare service during which period he was a
contributor to a statutory annuity and benefit fund in such city and for
which purposes service credit would otherwise not be credited by virtue of
such involuntary transfer.
(5) An employee described in subsection (e) of Section 9-108 shall receive
credit for child's annuity and ordinary disability benefit for the period of
time for which he was credited with service in the fund from which he was
involuntarily separated through class or group transfer; provided, that no such
credit shall be allowed to the extent that it results in a duplication of
credits or benefits, and neither shall such credit be allowed to the extent
that it was or may be forfeited by the application for and acceptance of a
refund from the fund from which the employee was transferred.
(6) Overtime or extra service shall not be included in computing
service. Not more than 1 year of service shall be allowed for service
rendered during any calendar year.
(7) Unused sick or vacation time shall not be used to
compute the service of an employee who first becomes an
employee on or after the effective date of this amendatory Act
of the 98th General Assembly. (Source: P.A. 97-651, eff. 1-5-12; 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 9-219. Computation of service.
(1) In computing the term of service of an employee prior to the effective
date, the entire period beginning on the date he was first appointed and
ending on the day before the effective date, except any intervening period
during which he was separated by withdrawal from service, shall be counted
for all purposes of this Article.
(2) In computing the term of service of any employee on or after the
effective date, the following periods of time shall be counted as periods
of service for age and service, widow's and child's annuity purposes:
(a) The time during which he performed the duties of | ||
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(b) Vacations, leaves of absence with whole or part | ||
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(c) For an employee who is a member of a county | ||
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For a former member of a county police department who | ||
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For leaves of absence to which this item (c) applies | ||
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(d) Any period of disability for which he received | ||
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(e) Accumulated vacation or other time for which an | ||
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(f) An employee may receive service credit for | ||
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(3) In computing the term of service of an employee on or after the
effective date for ordinary disability benefit purposes, the following
periods of time shall be counted as periods of service:
(a) Unless otherwise specified in Section 9-157, the | ||
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(b) Paid vacations and leaves of absence with whole | ||
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(c) Any period for which he received duty disability | ||
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(d) Any period of disability for which he received | ||
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(4) For an employee who on January 1, 1958, was transferred by Act
of the 70th General Assembly from his position in a department of welfare
of any city located in the county in which this Article is in force and
effect to a similar position in a department of such county, service shall
also be credited for ordinary disability benefit and child's annuity for
such period of department of welfare service during which period he was a
contributor to a statutory annuity and benefit fund in such city and for
which purposes service credit would otherwise not be credited by virtue of
such involuntary transfer.
(5) An employee described in subsection (e) of Section 9-108 shall receive
credit for child's annuity and ordinary disability benefit for the period of
time for which he was credited with service in the fund from which he was
involuntarily separated through class or group transfer; provided, that no such
credit shall be allowed to the extent that it results in a duplication of
credits or benefits, and neither shall such credit be allowed to the extent
that it was or may be forfeited by the application for and acceptance of a
refund from the fund from which the employee was transferred.
(6) Overtime or extra service shall not be included in computing
service. Not more than 1 year of service shall be allowed for service
rendered during any calendar year.
(Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/9-220) (from Ch. 108 1/2, par. 9-220)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 9-220. Basis of service credit.
(a) In computing the period of service of any employee for annuity
purposes under Section 9-134, the following provisions shall govern:
(1) All periods prior to the effective date shall be | ||
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(2) Service on or after the effective date shall | ||
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(i) The actual period of time the employee | ||
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(ii) Leaves of absence from duty, or vacation, | ||
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(iii) For a person who first becomes an employee | ||
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(iv) For a person who first becomes an employee | ||
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(v) Periods during which the employee has had | ||
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(vi) Periods during which the employee receives a | ||
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(vii) For any person who first becomes a member | ||
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(3) The right to have certain periods of time | ||
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(4) All service shall be computed in whole calendar | ||
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(5) Unused sick or vacation time shall not be used to | ||
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(b) For all other annuity purposes of this Article the following
schedule shall govern the computation of a year of service of an
employee whose salary or wages is on the basis stated, and any
fractional part of a year of service shall be determined according to
said schedule:
Annual or Monthly Basis: Service during 4 months in any 1 calendar
year;
Weekly Basis: Service during any 17 weeks of any 1 calendar year, and
service during any week shall constitute a week of service;
Daily Basis: Service during 100 days in any 1 calendar year, and
service during any day shall constitute a day of service;
Hourly Basis: Service during 800 hours in any 1 calendar year, and
service during any hour shall constitute an hour of service.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 9-220. Basis of service credit.
(a) In computing the period of service of any employee for annuity
purposes under Section 9-134, the following provisions shall govern:
(1) All periods prior to the effective date shall be | ||
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(2) Service on or after the effective date shall | ||
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(i) The actual period of time the employee | ||
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(ii) Leaves of absence from duty, or vacation, | ||
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(iii) Accumulated vacation or other time for | ||
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(iv) Accumulated sick leave as of the date of the | ||
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(v) Periods during which the employee has had | ||
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(vi) Periods during which the employee receives a | ||
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(vii) For any person who first becomes a member | ||
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(3) The right to have certain periods of time | ||
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(4) All service shall be computed in whole calendar | ||
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(b) For all other annuity purposes of this Article the following
schedule shall govern the computation of a year of service of an
employee whose salary or wages is on the basis stated, and any
fractional part of a year of service shall be determined according to
said schedule:
Annual or Monthly Basis: Service during 4 months in any 1 calendar
year;
Weekly Basis: Service during any 17 weeks of any 1 calendar year, and
service during any week shall constitute a week of service;
Daily Basis: Service during 100 days in any 1 calendar year, and
service during any day shall constitute a day of service;
Hourly Basis: Service during 800 hours in any 1 calendar year, and
service during any hour shall constitute an hour of service.
(Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/9-220.1)
Sec. 9-220.1.
Service of less than 15 days in one month.
A member of the
General Assembly with service credit in the Fund may establish service credit
in the Fund for up to 24 months, during each of which he or she worked for at
least one but fewer than 15 days, by purchasing service credit for the number
of days needed to bring the total of days worked in each such month up to 15.
To establish this credit, the member must pay to the Fund before January 1,
1998 an amount equal to (1) employee contributions based on the number of days
for which credit is being purchased, the rate of compensation received by the
applicant for the time actually worked during that month, and the rate of
contribution in effect for the applicant during that month; plus (2) an amount
representing employer contributions, equal to the amount specified in item (1);
plus (3) interest on the amounts specified in items (1) and (2) at the rate of
6% per annum, compounded annually, from the date of service to the date of
payment. This Section is not limited to persons in service under this Article
on or after the effective date of this amendatory Act of 1997.
(Source: P.A. 90-511, eff. 8-22-97.)
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(40 ILCS 5/9-221)
Sec. 9-221. (Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 98-551, eff. 8-27-13.)
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(40 ILCS 5/9-222) (from Ch. 108 1/2, par. 9-222)
Sec. 9-222.
Basis of salary deduction.
The total of salary deductions for employee contributions for annuity
purposes to be considered for any 1 calendar year shall not exceed that
produced by the application of the proper salary deduction
rates to the
highest annual salary considered for annuity purposes for such year.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-223) (from Ch. 108 1/2, par. 9-223)
Sec. 9-223.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted or hereafter amended, is hereby adopted and made a part of
this Article; provided, that where there is a direct conflict in the
provisions of such Act and the specific provisions of this Article such
latter provisions shall prevail.
(Source: P.A. 86-272.)
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(40 ILCS 5/9-224) (from Ch. 108 1/2, par. 9-224)
Sec. 9-224.
Employees in territory annexed.
Whenever territory is annexed to the county, any person then employed as
a county employee in the annexed territory, who shall be employed by the
county on the date of the annexation shall automatically come under this
Article, and any service rendered for the annexed territory shall be
considered, for the purpose of this Article, as service rendered to the
county.
Such employee shall be treated, as of the date such annexation comes
into effect, as a present employee of the county on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-225) (from Ch. 108 1/2, par. 9-225)
Sec. 9-225.
County pension fund superseded.
The fund herein provided for on the effective date shall supersede and
take the place of and have transferred to it the assets of any county
pension fund as herein defined in operation in the county, and the fund
herein provided for shall be a continuation of such county pension fund.
All annuities, pensions and other benefits allowed prior to the
effective date by the board of trustees of such County Pension Fund and all
claims pending or ungranted on the effective date which thereafter are
allowed according to the law establishing such County Pension Fund by the
board herein provided for, shall be paid by the board from the fund herein
provided for, according to the law or laws under which such annuities,
pensions, or other benefits were allowed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-226) (from Ch. 108 1/2, par. 9-226)
Sec. 9-226.
Employees serving county and forest preserve district.
In any forest preserve district created by "An Act to provide for the
creation and management of forest preserve districts and repealing certain
acts therein named", approved June 27, 1913, as amended, whose employees
are covered by an annuity and benefit fund of which the retirement board of
the fund created by this Article is ex-officio the retirement board of the
fund provided for employees of such forest preserve district, the following
provisions shall apply where such employees render service to both the
county and such forest preserve district:
(a) Any person who shall be a contributor to the annuity and benefit
fund provided for employees of such forest preserve district who withdraws
from the service of such district, and becomes employed by such county,
shall become a contributor to the fund herein provided for, with the same
rights as he would have in the annuity and benefit fund pertaining to such
district. All sums to the credit of such employee in the annuity and
benefit fund pertaining to such forest preserve district shall be
transferred to the annuity and benefit fund for the county, to be used for
the benefit of the employee, and such employee shall thereupon cease to
have any rights in the fund provided for employees of such district.
(b) If any county employee who is on leave of absence from the service
of such county becomes employed by such forest preserve district, the
retirement board shall cause deductions to be made from his salary and such
deductions shall be credited to him in this fund to be used for the purpose
hereof. Contributions on behalf of such employee shall be made by such
county, on the same basis as if such service for such forest preserve
district had been rendered to such county, and the employee shall have the
same rights in this fund while such service is being rendered for such
forest preserve district as if it had been rendered to such county.
(c) Any person employed by such county on July 6, 1937, who was employed
by such forest preserve district prior to such date, who shall become a
contributor to this fund shall be entitled to prior service credit in this
fund for all service rendered by such employee to such forest preserve
district prior to such date.
Except as provided in this section, no person classified as an employee
of such county shall become classified as an employee of such forest
preserve district for any purpose of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-227) (from Ch. 108 1/2, par. 9-227)
Sec. 9-227.
Employees of Cook County School of Nursing-credits.
(a) Any person who was in the employ of the Cook County School of
Nursing on July 1, 1947, who becomes included within the provisions of this
Article shall be credited in his account as follows:
Contributions by the county for prior service annuity, widow's prior
service annuity, age and service annuity and widow's annuity for all
periods of time during which he was an employee of such county or such
School of Nursing or its predecessor schools for which he has not received
such credits. Such contributions shall be at the same rates as were in
effect for employees under "The 1925 Act" during such periods of time,
and shall bear interest at 4% per annum in the same manner as in the case
of any other employee, and shall, together with all other amounts
contributed by or for such employee for annuity purposes, be considered in
computing the annuity for such employee or his widow.
Any period of employment for which credit is hereby provided shall also
be counted as service for all other purposes of this Article, and any other
county employee in the service on July 1, 1947, shall receive like credits
for service theretofore rendered such schools.
(b) Any such employee may elect to make additional contributions to the
fund equal to the sum which, including interest at 4% per annum, would as
of the date he became a contributor have accumulated to his credit for age
and service annuity and widow's annuity had deductions from his salary been
made throughout his entire period of service for which county contributions
are hereinbefore in this section provided. Any such additional
contributions shall be improved at interest in the same manner as regular
salary deductions and shall, together with all other amounts contributed by
such employee for age and service and widow's annuity, be considered as
deductions from salary for age and service annuity, widow's annuity and
refund purposes.
The time and manner in which such additional contributions may be made
shall be prescribed by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-228) (from Ch. 108 1/2, par. 9-228)
Sec. 9-228. Attachment; withholding.
(a) The annuities, pensions, refunds, and disability benefits granted
under this Article shall be exempt from attachment or garnishment process
and shall not be seized, taken, subjected to, detained, or levied upon by
virtue of any judgment, or any process or proceeding whatsoever issued out
of or by any court in this State, for the payment and satisfaction in whole
or in part of any debt, damage, claim, demand, or judgment against any
annuitant, pensioner, person entitled to a refund, or other beneficiary
hereunder.
(b) No annuitant, pensioner, person entitled to a refund, or other
beneficiary shall have any right to transfer or assign his annuity or
disability benefit or any part thereof by way of mortgage or otherwise
except that an annuitant or a widow annuitant who elects to participate in
any group hospitalization plan or group medical surgical plan shall have
the right to authorize the Board to deduct the cost to him of such plan
from the annuity check and to pay such deducted amount to the group
insurance carrier, provided, however, that the Board in its discretion may
terminate such right; provided, that the board in its discretion may pay to
the wife of any annuitant, pensioner, refund applicant, or disability
beneficiary such an amount out of her husband's annuity, pension, refund,
or disability benefit as any court may order, or such an amount as the
board may consider necessary for the support of his wife or children or
both in the event of his disappearance or unexplained absence or his
failure to support such wife or children.
(c) The board may retain out of any future annuity, pension, refund or
disability benefit payments, such amount, or amounts, as it may require for
the repayment of any moneys paid to any annuitant, pensioner, refund
applicant, or disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and release the board and
the fund from any liability for any moneys so withheld.
(d) Whenever an annuity, pension, refund, or disability benefit is
payable to a minor or to a person adjudged to be under legal disability,
the board, in its discretion and when to the best interest of the person
concerned, may waive guardianship proceedings and pay the annuity, pension,
refund or benefit to the person providing or caring for the minor and to
the wife, parent or blood relative providing or caring for the person.
In the event that a person certified by a medical doctor to be under legal disability (i) has no spouse, blood relative, or other person providing or caring for him or her, (ii) has no guardian of his or her estate, and (iii) is confined to a Medicare-certified, State-licensed nursing home or to a publicly owned and operated nursing home, hospital, or mental institution, the Board may pay any benefit due that person to the nursing home, hospital, or mental institution, to be used for the sole benefit of the person under legal disability. Payment in accordance with this subsection to a person, nursing home, hospital, or mental institution for the benefit of a minor or person under legal disability shall be an absolute discharge of the Fund's liability with respect to the amount so paid. Any person, nursing home, hospital, or mental institution accepting payment under this subsection shall notify the Fund of the death or any other relevant change in the status of the minor or person under legal disability. (e) An annuitant may authorize the withholding of a portion of his
annuity for payment of dues to any labor organization designated by the
annuitant; however, no portion of annuities may be withheld pursuant to
this subsection for payment to any one labor organization unless a minimum
of 100 annuitants authorize such withholding, except that the Board may
allow such withholding for less than 100 annuitants during a probationary
period of between 3 and 6 months, as determined by the Board. The Board
shall prescribe a form for the authorization of such withholding, and shall
provide such forms to employees, annuitants and labor organizations upon
request. Amounts withheld by the Board under this subsection shall be
promptly paid over to the designated organizations.
Any such labor organization shall have access to the Fund's mailing list
of annuitants, upon such terms as the Board may approve. The expenses of
any mailing conducted by the labor organization shall be borne by the labor
organization.
(Source: P.A. 100-794, eff. 8-10-18.)
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(40 ILCS 5/9-229) (from Ch. 108 1/2, par. 9-229)
Sec. 9-229.
Board members-no compensation.
No member of the board shall receive any moneys from the fund as salary
for service performed as a member of the board or as an employee of the
board. Any employee member shall have a right to be reimbursed for any
salary withheld from him by any officer or employee of the county, because
of attendance at any meeting of the board or the performance of any other
duty in connection with the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-230) (from Ch. 108 1/2, par. 9-230)
Sec. 9-230.
No commissions on investments.
No member of the board, and no person officially connected with the
board, as employee, legal advisor, custodian of the fund, or otherwise
shall have any right to receive any commission or other remuneration on
account of any investment made by the board, nor shall any such person act
as the agent of any other person concerning any such investment.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-231) (from Ch. 108 1/2, par. 9-231)
Sec. 9-231.
Duties of county officers.
The proper officers of the county and of the retirement board without
cost to the fund, shall:
(a) Deduct all sums required to be deducted from the
salaries of
employees, and pay such sums to the board in such manner as the board
shall specify;
(b) Furnish the board on the first day of each month information
regarding the employment of any employees, and of all discharges,
resignations and suspensions from the service, deaths, and changes in
salary which have occurred during the preceding month, with the dates
thereof;
(c) Procure for the board, in such form as the board specifies, all
information on the employees as to the service, age, salary, residence,
marital status, and data concerning their dependents, including
information relating to the service rendered by the employee prior to
the effective date;
(d) Keep such records concerning employees as the board may
reasonably require and shall specify.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-232) (from Ch. 108 1/2, par. 9-232)
Sec. 9-232.
Age of employee.
For any employee who has filed an application for appointment to the
service of the county, the age stated therein shall be conclusive evidence
against the employee of his age for the purposes of this Article, but the
board may decide any claim for any annuity, disability benefit, refund or
payment according to the age of the employee as shown by other evidence
satisfactory to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-233) (from Ch. 108 1/2, par. 9-233)
Sec. 9-233.
Office facilities.
Suitable rooms for office and meetings of the board shall be assigned by
the sheriff of the county.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-234) (from Ch. 108 1/2, par. 9-234)
Sec. 9-234.
Compliance with article.
All officers, officials, and employees of the county shall perform any
and all acts required to carry out the intent and purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-235) (from Ch. 108 1/2, par. 9-235)
Sec. 9-235. Felony conviction.
None of the benefits provided in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as an employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants entering service after July 11, 1955, shall be
deemed to have consented to the provisions of this section as a condition
of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/9-236) (from Ch. 108 1/2, par. 9-236)
Sec. 9-236.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the board provided for
under this Article. The term "administrative decision" is as defined in
Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/9-237) (from Ch. 108 1/2, par. 9-237)
Sec. 9-237.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/9-238) (from Ch. 108 1/2, par. 9-238)
Sec. 9-238.
Employees of county department of public aid who transfer
to state employment-preservation of rights.
Employees of a County Department of Public Aid in counties of
3,000,000 or more population who transfer to the employment of the State
in positions of comparable or substantially similar responsibilities or
duties shall retain their earned and accrued rights and benefits
established under this Article if they do not receive a refund of
their contributions hereunder.
Such employees who on the effective date of the transfer are
recipients of any disability benefit hereunder shall continue to receive
their benefit from the fund established under this Article.
If, after such transfer, an employee becomes disabled or dies under
circumstances which would have qualified him or any beneficiaries
claiming through him for disability, death, widow's, or survivorship
benefits payable under this Article had such transfer of employment not
occurred, where such benefits are not payable under Article 14 or under
the reciprocal provisions of Article 20, the employee or his
beneficiaries shall be entitled to the benefits prescribed in this
Article 9 from the fund established hereunder.
(Source: P.A. 81-1536.)
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(40 ILCS 5/9-239) (from Ch. 108 1/2, par. 9-239)
Sec. 9-239.
Group Health Benefit.
(a) For the purposes of this Section, "annuitant" means a person
receiving an age and service annuity, a prior service annuity, a widow's
annuity, a widow's prior service annuity, a minimum annuity, or a child's
annuity on or after January 1, 1990, under Article 9 or 10 by reason of
previous employment by Cook County or the Forest Preserve District of Cook
County (hereinafter, in this Section, "the County").
(b) Beginning December 1, 1991, the Fund may pay, on behalf of each of
the Fund's annuitants who chooses to participate in any of the county's
health care plans, all or any portion of the total health care
premium (including coverage for other family members) due from each such
annuitant.
(c) The difference between the required monthly premiums for such
coverage and the amount paid by the Fund may be deducted from the
annuitant's annuity if the annuitant so elects; otherwise such coverage
shall terminate and the obligation of the Fund shall also terminate.
(d) Amounts contributed by the county as authorized under Section 9-182
for the benefits set forth in this Section shall be credited to the reserve
for group hospital care and all such premiums shall be charged to it.
(e) The group coverage plan and benefits described in this Section are
not and shall not be construed to be pension or retirement benefits for
purposes of Section 5 of Article XIII of the Illinois Constitution of 1970.
(Source: P.A. 86-1025; 87-794.)
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(40 ILCS 5/9-240) Sec. 9-240. Group health benefit funding. Beginning on the effective date of this amendatory Act of the 103rd General Assembly, the county shall be notified by June 14 of each year of the proposed costs of any such payments allocated by the Fund for all or any portion of the total health premium paid by the Fund pursuant to Section 9-239.
(Source: P.A. 103-529, eff. 8-11-23.) |
(40 ILCS 5/9-241) Sec. 9-241. Mistake in benefit. If the Fund mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the Fund shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid, without interest. If the benefit was mistakenly set too high, the Fund may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient, without interest. If the overpayment is recovered by deductions from the remaining benefits payable to the recipient, the monthly deduction shall not exceed 10% of the corrected monthly benefit unless otherwise indicated by the recipient. However, if (1) the amount of the benefit was mistakenly set too high, and (2) the error was undiscovered for 3 years or longer, and (3) the error was not the result of incorrect information supplied by the employer, the affected participant, or any beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the Fund the excess amounts received in error. This Section applies to all mistakes in benefit calculations that occur before, on, or after the effective date of this amendatory Act of the 99th General Assembly.
(Source: P.A. 99-578, eff. 7-15-16.) |
(40 ILCS 5/Art. 10 heading) ARTICLE 10.
FOREST PRESERVE DISTRICT EMPLOYEES' ANNUITY AND BENEFIT FUND
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(40 ILCS 5/10-101) (from Ch. 108 1/2, par. 10-101)
Sec. 10-101.
Creation of fund.
In forest preserve districts, the boundaries of which are coextensive
with the boundaries of a county in which an annuity and benefit fund is
created and set apart and is maintained and administered for county
employees under Article 9 of this Code, a forest preserve district
employees' annuity and benefit fund shall be created, set apart, maintained
and administered for the employees of the forest preserve district, in the
same manner as the fund created and set apart, maintained and administered
for such county employees.
The fund herein created may be referred to as the fund.
The term "district" means a forest preserve district as above described.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/10-102) (from Ch. 108 1/2, par. 10-102)
Sec. 10-102.
Board created.
The retirement board of the county employees' annuity and benefit fund
constituted in Article 9 of this Code is ex officio the retirement board
for the forest preserve district employees' annuity and benefit fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/10-103) (from Ch. 108 1/2, par. 10-103)
Sec. 10-103. Members, contributions and benefits. The board shall cause the same deductions to be made
from salaries
and, subject to Section 10-109, allow the same annuities, refunds and benefits for employees of the
district as are made and allowed for employees of the county.
(Source: P.A. 95-1036, eff. 2-17-09.)
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(40 ILCS 5/10-103.1) (from Ch. 108 1/2, par. 10-103.1)
Sec. 10-103.1.
This Article does not apply to any person who becomes an
employee after June 30, 1979 as a public service employment program participant
under the Federal Comprehensive Employment and Training Act and whose wages
or fringe benefits are paid in whole or in part by funds provided under such Act.
(Source: P.A. 81-39.)
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(40 ILCS 5/10-104) (from Ch. 108 1/2, par. 10-104)
Sec. 10-104.
Prior county service.
Any person employed by the county prior to July 1, 1935, who on such
date is an employee of the forest preserve district and becomes a
contributor to the fund, shall receive prior service credit accumulations
and credit for years of service in the fund, for all such service by him to
the county.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/10-104.1) (from Ch. 108 1/2, par. 10-104.1)
Sec. 10-104.1.
(a) Any active member of the General Assembly Retirement
System may apply for transfer of his credits and creditable service accumulated
under this fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding
any additional or optional credits, which credits shall be refunded to the
applicant; and
(2) municipality credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly who has service credits and
creditable service under the Fund may establish additional service credits
and creditable service for periods during which he was an elected official
and could have elected to participate but did not so elect. Service credits
and creditable service may be established by payment to the fund of an amount
equal to the contributions he would have made if he had elected to participate,
plus interest to the date of payment.
(c) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 80-1419; 80-1438.)
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(40 ILCS 5/10-104.2) (from Ch. 108 1/2, par. 10-104.2)
Sec. 10-104.2.
Validation of service credits.
An active member of
the General Assembly having no service credits or creditable service in
the Fund, may establish service credit and creditable service for
periods during which he was an employee of an employer in an elective
office and could have elected to participate in the Fund but did not so
elect. Service credits and creditable service may be established by
payment to the Fund of an amount equal to the contributions he would
have made if he had elected to
participate plus interest to the date of
payment, together with a like amount as the applicable municipality
credits including interest, but the total period of such creditable
service that may be validated shall not exceed 8 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/10-104.3) (from Ch. 108 1/2, par. 10-104.3)
Sec. 10-104.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly System
under Section 2-117.1 may not participate in the Fund for the duration of
such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer and
employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/10-104.4) (from Ch. 108 1/2, par. 10-104.4)
Sec. 10-104.4.
Transfer of creditable service to Article 8, 9 or 13
Fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the
people who is a participant in the pension fund established under Article 9
of this Code, and any elected sanitary district commissioner who is a
participant in a pension fund established under Article 13 of this Code,
may apply for transfer of his credits and creditable service accumulated
under this Fund to such Article 8, 9 or 13 fund. Such creditable
service shall be transferred forthwith. Payment by this Fund to the
Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions computed by the Board and | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner who has credits and creditable service under the
Fund may establish additional credits and creditable service for periods during
which he
could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the
Fund of an amount equal to the contributions he would have made if he had
elected to participate, plus interest to the date of payment.
(c) Any such elected city officer, county officer or sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a separation benefit, by payment to the
Fund of the amount of the separation benefit plus interest thereon to the
date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/10-104.5) Sec. 10-104.5. Alternative retirement cancellation payment. (a) To be eligible for the alternative retirement cancellation payment provided in this Section, a person must: (1) be a member of this Fund who, on December 31, | ||
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(2) have not previously received any retirement | ||
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(3) file with the Board on or before 45 days after | ||
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(4) terminate employment under this Article no later | ||
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(5) if there is a QILDRO in effect against the | ||
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(b) In lieu of any retirement annuity or other benefit provided under this Article, a person who qualifies for and elects to receive the alternative retirement cancellation payment under this Section shall be entitled to receive a one-time lump sum retirement cancellation payment equal to the amount of his or her contributions to the Fund (including any employee contributions for optional service credit and including any employee contributions paid by the employer or credited to the employee during disability) on the date of termination, with regular interest, multiplied by 1.5. (c) Notwithstanding any other provision of this Article, a person who receives an alternative retirement cancellation payment under this Section thereby forfeits the right to any other retirement or disability benefit or refund under this Article, and no widow's, survivor's, or death benefit deriving from that person shall be payable under this Article. Upon accepting an alternative retirement cancellation payment under this Section, the person's creditable service and all other rights in the Fund are terminated for all purposes. (d) To the extent permitted by federal law, a person who receives an alternative retirement cancellation payment under this Section may direct the Fund to pay all or a portion of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (e) Notwithstanding any other provision of this Article, a person who has received an alternative retirement cancellation payment under this Section and who reenters service under this Article must first repay to the Fund the amount by which that alternative retirement cancellation payment exceeded the amount of his or her refundable employee contributions with interest of 6% per annum. For the purposes of re-establishing creditable service that was terminated upon election of the alternative retirement cancellation payment, the portion of the alternative retirement cancellation payment representing refundable employee contributions shall be deemed a refund repayable together with interest at the effective rate from the application date of such refund to the date of repayment. (f) No individual who receives an alternative retirement cancellation payment under this Section may return to active payroll status within 365 days after separation from service to the employer.
(Source: P.A. 95-369, eff. 8-23-07; 95-876, eff. 8-21-08.) |
(40 ILCS 5/10-105) (from Ch. 108 1/2, par. 10-105)
Sec. 10-105.
Employment of former county employees.
A contributor to and participant in the annuity and benefit fund
provided for employees of such county, who resigns or is discharged from
the county service, and thereafter is employed by the district, shall, upon
the date of entering the employ of the district, become a contributor to
and participant in the fund, with the same status he would have had in the
county annuity and benefit fund if he had become a re-entrant into the
service of the county on that date. The board shall transfer all sums to
his credit in the county annuity and benefit fund to the fund, to be used
therein for his benefit. The employee shall thereupon cease to have any
rights in the county annuity and benefit fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/10-106) (from Ch. 108 1/2, par. 10-106)
Sec. 10-106.
Employees with county while on leave from district.
If an employee on leave of absence from the service of the district is
employed by the county, the board shall cause deductions to be made from
his salary on the same basis as if he were employed by the district. The
sums so deducted shall be placed in the fund to be used for the benefit of
the employee.
Contributions on behalf of the employee shall be made by the forest
preserve district, and placed in the fund on the same basis as if the
service for the county had been rendered the district. The employee shall
have the same rights in the fund while such service is being rendered for
the county and after the service is terminated as if the service was
rendered for the district.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/10-107) (from Ch. 108 1/2, par. 10-107)
Sec. 10-107. Financing; tax levy. (a) The forest preserve district may
levy an annual tax on the value, as equalized or assessed by the
Department of Revenue, of all taxable property in the
district for the purpose of providing revenue for the fund. The rate of
such tax in any year may not exceed the rate herein specified for that
year or the rate which will produce, when extended, the sum herein
stated for that year, whichever is higher: for any year prior to 1970,
.00103% or $195,000; for the year 1970, .00111% or $210,000; for the
year 1971, .00116% or $220,000. For the year 1972 and each year
thereafter through levy year 2022, the Forest Preserve District shall levy a tax annually at a
rate on the dollar of the value, as equalized or assessed by the
Department of Revenue upon all taxable property in the
county, when extended, not to exceed an amount equal to the total amount
of contributions by the employees to the fund made in the calendar year
2 years prior to the year for which the annual applicable tax is levied,
multiplied by 1.25 for the year 1972; and by 1.30 for the year 1973 and
for each year thereafter through levy year 2022. Beginning in levy year 2023,
and in each levy year thereafter, the Forest Preserve
District shall levy a tax annually at a rate on the dollar of
the value, as equalized or assessed by the Department of
Revenue, of all taxable property within the county that will
produce, when extended, an amount equal to no less than the
amount of the Forest Preserve District's total required
contribution to the Fund for the next payment year, as
determined under subsection (b). For the purposes of this
Section, the payment year is the year immediately following
the levy year.
The tax shall be levied and collected in like manner with the general
taxes of the district and shall be in addition to the maximum of all
other tax rates which the district may levy upon the aggregate valuation
of all taxable property and shall be exclusive of and in addition to the
maximum amount and rate of taxes the district may levy for general
purposes or under and by virtue of any laws which limit the amount of
tax which the district may levy for general purposes. The county clerk
of the county in which the forest preserve district is located in
reducing tax levies under the provisions of "An Act concerning the levy
and extension of taxes", approved May 9, 1901, as amended, shall not
consider any such tax as a part of the general tax levy for forest
preserve purposes, and shall not include the same in the limitation of
1% of the assessed valuation upon which taxes are required to be
extended, and shall not reduce the same under the provisions of that
Act. The proceeds of the tax herein authorized shall be kept as a
separate fund. The forest preserve district may use other lawfully available funds in lieu of all or part of the levy.
The Board may establish a manpower program reserve, or a special
forest preserve district contribution rate, with respect to employees
whose wages are funded as program participants under the Comprehensive
Employment and Training Act of 1973 in the manner provided in subsection
(d) or (e), respectively, of Section 9-169.
(b)(1) For payment years 2024 through 2054, the Forest
Preserve District's required annual contribution to the fund
shall be the minimum required employer contribution set forth
in paragraph (3) of this subsection (b). (2) The Board shall retain an actuary who is a
member in good standing of the American Academy of Actuaries
to produce an annual actuarial report of the Fund. The annual
actuarial report shall include, but not be limited to: (i) a
statement of the actuarial value of the Fund's assets as
projected over 30 years' time and the actuarial value of the
Fund's liabilities as projected over the same period of time;
and (ii) the minimum required employer contribution for the
second year immediately following the year ending on the
valuation date upon which the annual actuarial report is
based. The annual actuarial report shall be reviewed and
formally adopted by the Board and may be included
in other annual reports. (3) The minimum required employer contribution for a
specified year as set forth in the annual actuarial report
required under paragraph (2) shall be the amount determined by
the Fund's actuary to be equal to the sum of: (i) the projected
normal cost for pensions for that fiscal year, plus (ii) a
projected unfunded actuarial accrued liability amortization
payment for pensions for the fiscal year, plus (iii) projected
expenses for that fiscal year, plus (iv) interest to adjust
for payment pattern during the fiscal year, minus (v)
projected employee contributions for that fiscal year. The
Forest Preserve District's required annual contribution to the
Fund shall not be less than the sum of: (i) the projected
normal cost for pensions for that fiscal year, plus (ii) a
projected unfunded actuarial accrued liability amortization
payment for pensions for the fiscal year, plus (iii) projected
expenses for that fiscal year, plus (iv) interest to adjust
for payment pattern during the fiscal year, minus (v)
projected employee contributions for that fiscal year. The
minimum required employer contribution shall be based on the
entry age normal cost method, a 5-year smoothed actuarial
value of assets, and a 30-year layered amortization of
unfunded actuarial accrued liability with payments increasing
at 2% per year. The unfunded actuarial accrued liability
payment schedule shall be based on the schedule initially
established in 2016 and ending in 2046. The minimum required employer contribution shall be
submitted annually by the Forest Preserve District on or
before July 31 unless another time frame is agreed upon by the
Forest Preserve District and the Fund. The methods provided in
this Section may be amended as recommended by an independent
actuary engaged by the Fund and in compliance with actuarial
standards of practice and as adopted by an affirmative vote of
a simple majority of the Board and the Forest Preserve
District Board of Commissioners. (4) For payment years after 2055, the Forest Preserve District's required annual contribution to the Fund shall be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 100% of the total actuarial liabilities of the Fund by the end of the year. (5) To the extent that the Forest Preserve District's
contribution for any of the payment years referenced in this
subsection (b) is made with property taxes, those property
taxes shall be levied, collected, and paid to the Fund in a
like manner with the general taxes of the Forest
Preserve District. (Source: P.A. 102-210, eff. 1-1-22; 102-1131, eff. 6-1-23.)
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(40 ILCS 5/10-107.5) Sec. 10-107.5. Delinquent contributions; deduction from payments of State funds to the district. If the district fails to transmit to the Fund contributions required of it under this Article by December 31st of the year in which such contributions are due, the Fund may, after giving notice to the district, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in payment year 2016, deduct and remit to the Fund the certified amounts from payments of State funds to the district. The State Comptroller may not deduct from any payments of State funds to the district more than the amount of delinquent payments certified to the State Comptroller by the Fund.
(Source: P.A. 99-8, eff. 7-9-15.) |
(40 ILCS 5/10-108) (from Ch. 108 1/2, par. 10-108)
Sec. 10-108.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted or hereafter amended, is hereby adopted and made a part of
this Article; provided, that where there is a direct conflict in the
provisions of such Act and the specific provisions of this Article such
latter provisions shall prevail.
(Source: Laws 1965, p. 1182.)
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(40 ILCS 5/10-109) Sec. 10-109. Felony conviction. None of the benefits provided in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as an employee. None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly. All future entrants entering service after the effective date of this amendatory Act of the 95th General Assembly shall be
deemed to have consented to the provisions of this Section as a condition
of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.) |
(40 ILCS 5/Art. 11 heading) ARTICLE 11.
LABORERS' AND RETIREMENT BOARD EMPLOYEES' ANNUITY AND BENEFIT
FUND--CITIES OVER 500,000 INHABITANTS
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(40 ILCS 5/11-101) (from Ch. 108 1/2, par. 11-101)
Sec. 11-101.
Creation of fund.
In each city of more than 500,000 inhabitants a Laborers' and Retirement
Board Employees' Annuity and Benefit Fund shall be created, set apart,
maintained and administered, in the manner prescribed in this Article, for
the benefit of the laborers and retirement board employees, herein
designated, and their beneficiaries.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-102) (from Ch. 108 1/2, par. 11-102)
Sec. 11-102.
Terms defined.
The terms used in this Article have the meanings ascribed to them in
Sections 11-103 to 11-124, inclusive, except when the context otherwise
requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-103) (from Ch. 108 1/2, par. 11-103)
Sec. 11-103.
Fund.
"Fund": The Laborers' and Retirement Board Employees' Annuity and
Benefit Fund herein created.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-104) (from Ch. 108 1/2, par. 11-104)
Sec. 11-104.
The 1935 Act.
"The 1935 Act": "An Act to provide for the creation, setting apart,
maintenance, and administration of a laborers' and retirement board
employees' annuity and benefit fund in cities having a population exceeding
two hundred thousand inhabitants", approved June 21, 1935, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-105) (from Ch. 108 1/2, par. 11-105)
Sec. 11-105.
Exchange of Functions Act of 1957.
"Exchange of Functions Act of 1957": "An Act in relation to an exchange
of certain functions, property and personnel among cities and park
districts having coextensive geographic areas and populations in excess of
500,000", approved July 5, 1957.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-106) (from Ch. 108 1/2, par. 11-106)
Sec. 11-106.
Civil Service Act.
"Civil Service Act": "An Act to regulate the civil service of cities",
approved March 20, 1895, as amended, superseded by the provisions of Division
1 of Article 10 of the Illinois Municipal Code, relating to civil service in cities.
(Source: P.A. 83-499.)
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(40 ILCS 5/11-106.1) (from Ch. 108 1/2, par. 11-106.1)
Sec. 11-106.1.
"Municipal Personnel Ordinance":
In the case of a city
exercising constitutionally authorized home rule unit authority, an ordinance
of any city in which this Article is in force and effect, establishing a
substitute for and to supersede the "Civil Service Act" as the governing
employment system of such city.
(Source: P.A. 83-499.)
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(40 ILCS 5/11-107) (from Ch. 108 1/2, par. 11-107)
Sec. 11-107.
Employer.
"Employer": A city of more than 500,000 inhabitants, the Board of
Education of such city to which this Article applies, the board of this
fund, or the retirement board
of any other annuity and benefit fund on a reserve basis in such city (one
or more employees of which have applied for participation in this fund as
provided in this Article).
(Source: P.A. 83-499.)
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(40 ILCS 5/11-108) (from Ch. 108 1/2, par. 11-108)
Sec. 11-108.
Effective date.
"Effective Date": July 1, 1935, for any city covered by "The 1935 Act"
on the date this Article comes in effect; and the date on which any city
hereafter for the first time comes under this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-109) (from Ch. 108 1/2, par. 11-109)
Sec. 11-109.
Retirement board or board.
"Retirement board" or "board": The Retirement Board of the Laborers' and
Retirement Board Employees' Annuity and Benefit Fund created by this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-110) (from Ch. 108 1/2, par. 11-110)
Sec. 11-110.
Employee, contributory, contributor or participant.
"Employee", "contributory", "contributor" or "participant":
(a) Any employee of an employer in a position classified by the civil
service commission thereof as labor service and who was appointed to such
position under the Civil Service Act, other than by temporary appointment
as defined in said Act.
(b) Any employee in the service of an employer before the Civil Service
Act came into effect for the employer.
(c) Any person employed by the board.
(d) Any person employed by a retirement board of any other annuity and
benefit fund in such city which is on a reserve basis on the effective date
or thereafter in operation for the employer, other than the fund created by
this Article.
(e) Any person employed after July 31, 1951, by temporary appointment as
defined in Section 10 of the Civil Service Act, in a position classified
by the Civil Service Commission of the employer as labor service of the
employer; or in the case of a city operating under a municipal personnel
ordinance, any employee of an employer employed under the provisions of
such municipal personnel ordinance as labor service of the employer.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/11-110.1) (from Ch. 108 1/2, par. 11-110.1)
Sec. 11-110.1.
Gender.
The masculine gender whenever used in this Article includes the feminine
gender and all annuities and other benefits applicable to male employees
and their survivors, and the contributions to be made for widows' annuities
or other annuities, benefits, and refunds shall apply with equal force to
female employees and their survivors, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/11-111) (from Ch. 108 1/2, par. 11-111)
Sec. 11-111.
Present employee.
"Present employee":
(a) Any employee of an employer on the day before the effective date;
(b) Any person who becomes an employee of the board prior to the next
January 1st after the effective date who was in service on the day prior to
the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-112) (from Ch. 108 1/2, par. 11-112)
Sec. 11-112.
Future entrant.
"Future entrant": any employee of an employer employed for the first
time on or after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-113) (from Ch. 108 1/2, par. 11-113)
Sec. 11-113.
Re-entrant.
"Re-entrant": Any employee who withdraws from service and receives a
refund, and thereafter re-enters service prior to age 65.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-114) (from Ch. 108 1/2, par. 11-114)
Sec. 11-114.
The service or service.
"The service" or "service": Any employment for which a contributor is
entitled to receive monetary compensation from an employer; also any
employment of a present employee prior to January 1st of the year following
the effective date in a position in which he was entitled to receive
monetary compensation from the employer.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-115) (from Ch. 108 1/2, par. 11-115)
Sec. 11-115.
Term of service.
"Term of service": All periods of time during which the employee shall
perform service as hereinbefore defined.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-116) (from Ch. 108 1/2, par. 11-116)
Sec. 11-116. Salary. "Salary": Annual salary of an employee as follows:
(a) Beginning on the effective date and prior to July | ||
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(b) If appropriated, fixed or arranged on other than | ||
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(c) Beginning July 1, 1951, if the city provides | ||
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(d) Beginning September 1, 1981, the salary of a | ||
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(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/11-117) (from Ch. 108 1/2, par. 11-117)
Sec. 11-117.
Reserve basis.
"Reserve basis": A method for the calculation of annuities from credited
sums by recognized actuarial criteria involving a designated mortality
table and a specified rate of interest.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-118) (from Ch. 108 1/2, par. 11-118)
Sec. 11-118.
Disability.
"Disability": A physical or mental incapacity as the result of which an
employee is unable to perform the duties of his assigned position.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-119) (from Ch. 108 1/2, par. 11-119)
Sec. 11-119.
Injury.
"Injury": A physical hurt resulting from external force or violence.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-120) (from Ch. 108 1/2, par. 11-120)
Sec. 11-120.
Withdraws from service, withdrawal from service or withdrawal.
"Withdraws from service", "withdrawal from service" or "withdrawal":
Discharge or resignation of an employee. For refund purposes a withdrawal
from service shall not be final until 30 days after the effective date of
the withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-121) (from Ch. 108 1/2, par. 11-121)
Sec. 11-121.
Assets.
"Assets": The total value of cash, securities and other property held.
Bonds shall be valued at their amortized book values.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-122) (from Ch. 108 1/2, par. 11-122)
Sec. 11-122.
Age.
"Age": Age at last birthday preceding the date of ascertainment of age
under this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-123) (from Ch. 108 1/2, par. 11-123)
Sec. 11-123.
Effective rate of interest, interest at the effective rate or
interest.
"Effective rate of interest", "interest at the effective rate" or
"interest": Interest at 4% per annum for an employee who was a contributor
on January 1, 1952; and at 3% per annum for an employee who becomes a
contributor after January 1, 1952. In all cases involving reserves,
credits, transfers, and charges, "effective rate of interest", "interest at
the effective rate" or "interest" shall be applied at these rates.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
Sec. 11-124.
Annuity.
"Annuity": Equal monthly payments for life, unless terminated earlier under
Section 11-148, 11-152, 11-153, or 11-230.
For annuities taking effect before January 1, 1998, the first payment shall
be due and payable one month after the occurrence of the event upon which
payment of the annuity depends. Until August 1, 1999, payment
shall be made for any part of a monthly period in which death of the annuitant
occurs. Beginning August 1, 1999, all payments shall be made on the first
day of the calendar month and shall be for the entire calendar month, without
proration. The last payment shall be made on the first day of the calendar
month in which the annuity payment period ends. A pro rata amount shall be
paid for that part of the month from the July 1999 annuity payment date
through July 31, 1999.
For annuities taking effect on or after January 1, 1998,
payments shall be made as of the first day of the calendar month, with the
first payment to be made as of the first day
of the calendar month coincidental with or next following the first day of the
annuity payment period, and the last payment to be made as of the first day of
the calendar month in which the annuity payment
period ends. For annuities taking effect on or after January 1, 1998, all
payments shall be for the entire calendar month, without proration.
For the purposes of this Section, the "annuity payment period" means the
period beginning on the day after the occurrence of the event upon which
payment of the annuity depends, and ending on the day upon which the death of
the annuitant or other event terminating the annuity occurs.
(Source: P.A. 90-31, eff. 6-27-97; 91-887, eff. 7-6-00.)
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(40 ILCS 5/11-125) (from Ch. 108 1/2, par. 11-125)
Sec. 11-125.
Persons to whom article does not apply.
(A) This Article does not apply to any of the following persons:
(a) Any person employed prior to August 1, 1951 by such city, or
board of education of such city by temporary appointment as defined in
Section 10 of the Civil Service Act;
(b) Any person employed by such city or the board of education of
such city or the retirement board of any other annuity and benefit fund
operating on a reserve basis in such city while he is eligible to
contribute thereto;
(c) Any person receiving a pension or annuity other than widow's or
child's annuity, from a fund described in subparagraph (b) above;
(d) Any person who enters service at age 65 or over prior to January
1, 1979, or who enters the service at age 70 or more subsequent to January 1, 1979;
(e) Any person transferred to the employment of such city by virtue
of the "Exchange of Functions Act, 1957".
(B) The board of trustees may, by resolution, exclude persons who become
employees after June 30, 1979 as public service employment program
participants under the Federal Comprehensive Employment and Training Act
and whose wages or fringe benefits are paid in whole or in part by funds
provided under such Act.
(Source: P.A. 84-159.)
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(40 ILCS 5/11-125.1) (from Ch. 108 1/2, par. 11-125.1)
Sec. 11-125.1.
(a) Any active member of the General Assembly Retirement
System may apply for transfer of his credits and creditable service accumulated
under this Fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding
any additional or optional credits, which credits shall be refunded to the
applicant; and
(2) municipality credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly who has service credits and
creditable service under the Fund may establish additional service credits
and creditable service for periods during which he was an elected official
and could have elected to participate but did not so elect. Service credits
and creditable service may be established by payment to the fund of an amount
equal to the contributions he would have made if he had elected to participate,
plus interest to the date of payment.
(c) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 80-1419; 80-1438.)
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(40 ILCS 5/11-125.2) (from Ch. 108 1/2, par. 11-125.2)
Sec. 11-125.2.
Validation of service credits.
An active member of
the General Assembly having no service credits or creditable service in
the Fund, may establish service credit and creditable service for
periods during which he was an employee of an employer in an elective
office and could have elected to participate in the Fund but did not so
elect. Service credits and creditable service may be established by
payment to the Fund of an amount equal to the contributions he would
have made if he had elected to
participate plus interest to the date of
payment, together with a like amount as the applicable municipality
credits including interest, but the total period of such creditable
service that may be validated shall not exceed 8 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-125.3) (from Ch. 108 1/2, par. 11-125.3)
Sec. 11-125.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer and
employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
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(40 ILCS 5/11-125.4) (from Ch. 108 1/2, par. 11-125.4)
Sec. 11-125.4.
Validation of Service.
Every participant in the Fund
on the effective date of this amendatory Act of 1983 shall be deemed to
have been an employee throughout the entire period of his service during
which he was a contributor and participant and for which period of service
he is credited with the required contributions to the Fund for annuity
purposes. The period or term of service credited shall be based on the
applicable provisions of this Article. Any past service credited or
annuity granted to any participant and contributor prior to the effective
date of this amendatory Act of 1983, based on the service of any
participant and contributor prior to or subsequent to the effective date of
the "Municipal Personnel Ordinance" of Chicago or the "Illinois Municipal
Code" relating to civil service of cities, shall be deemed validly credited
or granted for all purposes of this Article.
(Source: P.A. 83-499.)
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(40 ILCS 5/11-125.5) (from Ch. 108 1/2, par. 11-125.5)
Sec. 11-125.5. Transfer of creditable service to Article 8, 9, or 13
Fund.
(a) Any city officer as defined in Section 8-243.2 of this Code, any county
officer elected by vote of the people (and until March 1, 1993 any other person
in accordance with Section 9-121.11) who is a participant in the pension fund
established under Article 9 of this Code, and any elected sanitary district
commissioner who is a participant in a pension fund established under Article
13 of this Code, may apply for transfer of his credits and creditable service
accumulated under this Fund to such Article 8, 9, or 13 fund. Such creditable
service shall be transferred forthwith. Payments by this Fund to the Article
8, 9, or 13 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer, or sanitary
district commissioner who has credits and creditable service under the Fund
may establish additional credits and creditable service for periods during
which he could have elected to participate but did not so elect. Credits
and creditable service may be established by payment to the Fund of an
amount equal to the contributions he would have made if he had elected to
participate, plus interest to the date of payment.
(c) Any such elected city officer, county officer, or sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a separation benefit, by payment to the Fund of
the amount of the separation benefit plus interest thereon to the date of
payment.
(Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/11-125.6) (from Ch. 108 1/2, par. 11-125.6)
Sec. 11-125.6.
Age Discrimination.
Notwithstanding any other
provisions in this Article, it is the intention of the General Assembly to
comply with the federal Age Discrimination in Employment Act of 1967, as
amended by the Age Discrimination in Employment Amendments of 1986 and the
Omnibus Budget Reconciliation Act of 1986, as required with respect to
benefits for older individuals. For this purpose, if required, the
following changes shall govern with respect to other Sections of this
Article, effective January 1, 1988 unless otherwise specified.
(1) Contributions. Beginning immediately, the spouse contribution
shall not cease at age 65, but shall continue during the term of service.
Beginning immediately, concurrent city contributions shall be made
during the term of service.
(2) Money purchase accounts "fixed" at age 65. Beginning January 1,
1988, for all purposes, accruals after age 65 for the accounts of those
employees who have not withdrawn or retired shall be "unfixed" with
interest from the date fixed to January 1, 1988, without any contribution
from the time originally fixed until the effective date of this amendatory
Act of 1989. Thereafter, all
money purchase accounts shall not be "fixed", but shall continue to accrue
until time of withdrawal. No contributions are permitted from the time
"fixed" until the time "unfixed".
(3) Employee money purchase annuity after age 65. Beginning January 1,
1988, all money purchase annuities shall be computed without limitation for
age at time of withdrawal and without being "fixed" at any limiting age.
(4) Disability benefits. Beginning January 1, 1987, the age 70 limitation is removed.
(5) Widows and wives not entitled to annuity. Beginning January 1,
1988, there shall be no requirement that marriage take place before the
employee attained age 65. Any "no spouse" refund must be repaid with
interest before a spouse annuity is payable.
(6) Children. Beginning January 1, 1988, there shall be no age 65
requirement on the employee age for a child's annuity.
(7) Service credit. Beginning January 1, 1987, service credit shall
include any period of disability after age 70 for which the participant
receives Workers' Compensation benefits and during which the participant
did not receive a disability benefit from the fund but could have except
for the age 70 limitation.
(8) Compensation and supplemental annuities. The age condition shall remain at 65.
(9) Accounting. Beginning January 1, 1988, or as soon as practical, the
Annuity Payment Fund Accounts and the Prior Service Fund Accounts "fixed"
shall be "unfixed" and the appropriate amounts returned to the Salary
Deduction Fund Account and the corresponding City Contribution Fund Account.
(10) Refunds. Beginning immediately, there shall be no in-service
distribution of a "no spouse" refund. Such distribution, if any, shall be
made as otherwise provided. Likewise, there shall be no other refund
of deductions after fixed or excess cost. Any "no spouse" refund must be repaid with
interest before a spouse annuity is payable.
(11) Re-entry into service. Beginning January 1, 1988, for any re-entry
into service after age 65, the employee's money purchase annuity and the
widow's money purchase annuity may be recomputed if it is more beneficial to do so.
(12) Membership. Beginning January 1, 1988, the age 70 limitation for
membership shall be removed if federal law or regulation should require it.
Accordingly, any person age 70 or older may elect to have this Article
apply by filing written notice of such intent with the retirement board
within 4 months after the date of entering service.
(13) Computation. Benefits using accruals after age 65 will begin to be
computed January 1, 1988. No benefits will be recomputed for any annuitant
who has withdrawn before January 1, 1988.
(Source: P.A. 86-272.)
|
(40 ILCS 5/11-125.7) (from Ch. 108 1/2, par. 11-125.7)
Sec. 11-125.7.
Transfer to Article 18 system.
Any active member of the
Judges Retirement System who is eligible to transfer service credit to that
System from this Fund under subsection (g) of Section 18-112 may apply for
transfer of that service credit to the Judges Retirement System. The
credits and creditable service shall be transferred upon application, and
shall include payment by this Fund to the Judges Retirement System of:
(1) the amounts accumulated to the credit of the | ||
| ||
(2) the corresponding employer credits computed and | ||
| ||
Participation in this Fund as to the credits transferred under this
Section shall terminate on the date of transfer.
(Source: P.A. 87-1265.)
|
(40 ILCS 5/11-125.8)
Sec. 11-125.8.
Service as police officer, firefighter, or teacher.
(a) Service rendered by an employee as a police officer and member of the
regularly constituted police department of the city, or as a firefighter
and regular member of the paid fire department of the city, or as a teacher
in the public school system in the city shall be counted, for the purposes
of this Article, as service rendered as an employee of the city. Salary
received for any such service shall be treated, for the purposes of this
Article, as salary received for the performance of duty as an employee.
(b) Credit shall be granted under subsection (a) only if (1) the employee
pays to the Fund prior to his or her separation from service an amount
equal to the employee contributions that would have been payable for that
service, based on the salary actually received, plus interest at the effective
rate, and (2) the employee has terminated any credit for that service
earned in any other annuity and benefit fund or pension fund in operation
in the city for the benefit of police officers, firefighters, or
teachers. The amount transferred to the Fund under item (1) of Section
5-233.1, if any, shall be credited against the contributions required under
this subsection.
(Source: P.A. 92-599, eff. 6-28-02.)
|
(40 ILCS 5/11-125.9) Sec. 11-125.9 Action by Fund against third party; subrogation. In those cases where the injury or death for which a disability or death benefit is payable under this Article was caused under circumstances creating a legal liability on the part of some person or entity (hereinafter "third party") to pay damages to the employee, legal proceedings may be taken against such third party to recover damages notwithstanding the Fund's payment of or liability to pay disability or death benefits under this Article. In such case, however, if the action against such third party is brought by the injured employee or his or her personal representative and judgment is obtained and paid, or settlement is made with such third party, either with or without suit, from the amount received by such employee or personal representative, then there shall be paid to the Fund the amount of money representing the death or disability benefits paid or to be paid to the disabled employee pursuant to the provisions of this Article. In all circumstances where the action against a third party is brought by the disabled employee or his or her personal representative, the Fund shall have a claim or lien upon any recovery, by judgment or settlement, out of which the disabled employee or his or her personal representative might be compensated from such third party. The Fund may satisfy or enforce any such claim or lien only from that portion of a recovery that has been, or can be, allocated or attributed to past and future lost salary, which recovery is by judgment or settlement. The Fund's claim or lien shall not be satisfied or enforced from that portion of a recovery that has been, or can be, allocated or attributed to medical care and treatment, pain and suffering, loss of consortium, and attorney's fees and costs.
Where action is brought by the disabled employee or his or her personal representative, he or she shall forthwith notify the Fund, by personal service or registered mail, of such fact and of the name of the court where such suit is brought, filing proof of such notice in such action. The Fund may, at any time thereafter, intervene in such action upon its own motion. Therefore, no release or settlement of claim for damages by reason of injury to the disabled employee, and no satisfaction of judgment in such proceedings, shall be valid without the written consent of the Board of Trustees authorized by this Code to administer the Fund created under this Article, except that such consent shall be provided expeditiously following a settlement or judgment. In the event the disabled employee or his or her personal representative has not instituted an action against a third party at a time when only 3 months remain before such action would thereafter be barred by law, the Fund may, in its own name or in the name of the personal representative, commence a proceeding against such third party seeking the recovery of all damages on account of injuries caused to the employee. From any amount so recovered, the Fund shall pay to the personal representative of such disabled employee all sums collected from such third party by judgment or otherwise in excess of the amount of disability or death benefits paid or to be paid under this Article to the disabled employee or his or her personal representative, and such costs, attorney's fees, and reasonable expenses as may be incurred by the Fund in making the collection or in enforcing such liability. The Fund's recovery shall be satisfied only from that portion of a recovery that has been, or can be, allocated or attributed to past and future lost salary, which recovery is by judgment or settlement. The Fund's recovery shall not be satisfied from that portion of the recovery that has been, or can be, allocated or attributed to medical care and treatment, pain and suffering, loss of consortium, and attorney's fees and costs.
Additionally, with respect to any right of subrogation asserted by the Fund under this Section, the Fund, in the exercise of discretion, may determine what amount from past or future salary shall be appropriate under the circumstances to collect from the recovery obtained on behalf of the disabled employee. This Section applies only to persons who first become members or participants under this Article on or after the effective date of this amendatory Act of the 100th General Assembly.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/11-126) (from Ch. 108 1/2, par. 11-126)
Sec. 11-126.
Prior service annuity-When due.
A "Prior Service Annuity" shall be credited to present employees in
accordance with "The 1935 Act" for service rendered prior to the
effective date.
Each such credit shall be improved by interest at the effective rate
during the time the employee is in service until his annuity is fixed. In
determining such credit, the employee's annual salary for his entire period
of prior service shall be the salary in effect on the effective date.
(Source: Laws 1963, p. 161.)
|
(40 ILCS 5/11-127) (from Ch. 108 1/2, par. 11-127)
Sec. 11-127.
Age and service annuity.
An "Age and Service Annuity" shall be credited employees for service
rendered after the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-128) (from Ch. 108 1/2, par. 11-128)
Sec. 11-128.
Annuities - Present employees and future entrants
attaining age 65 in service.
(a) A present employee who attains age 65 or more in service, having
age and service and prior service annuity credits sufficient to provide
an annuity as of his age at such time equal to the amount he would have
had if employee contributions and
city contributions had been made in
accordance with this Article during his entire term of service until age
65, shall be entitled to such annuity upon withdrawal.
(b) A present employee who attains age 65 or more in service, and
who does not have the credits described in paragraph (a), shall be
entitled, on the date of withdrawal, to such age and service annuity and
prior service annuity provided from the entire sum accumulated to his
credit therefor on the date of his withdrawal computed as of his age on
such date of withdrawal.
(c) A future entrant who attains age 65 in service shall be
entitled, upon withdrawal, to age and service annuity provided from the
entire sum accumulated to his credit for such annuity computed as of his
age 65.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-129) (from Ch. 108 1/2, par. 11-129)
Sec. 11-129.
Annuities-Present employees and future entrants-Withdrawal after
age 60 and prior to 65.
An employee who attains age 60 or more but less than 65 in service, upon
withdrawal, shall be entitled to annuity as follows:
1. Present Employee--age and service and prior service annuities
provided from the total sum accumulated to his credit for such annuities on
the date of withdrawal, computed as of his age on such date of withdrawal.
2. Future entrant--age and service annuity provided from the total sum
accumulated to his credit for such annuity on the date of withdrawal,
computed as of his age on such date of withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-130) (from Ch. 108 1/2, par. 11-130)
Sec. 11-130.
Annuities - Present employees and future
entrants - Withdrawal after age 55 and prior to 60.
An employee who attains age 55 or more but less than age 60 in
service having 10 or more years of service at date of withdrawal shall
be entitled to annuity, from the date of withdrawal, as follows:
1. Present employee and future entrant with 20 or more years of
service-age and service annuity provided from the total sum accumulated
to his credit from employee contributions and city contributions for
such annuity, and, for a present employee, prior service annuity from
the total sum accumulated to his credit for such annuity.
2. Present employee and future entrant with 10 or more but less than
20 years of service-age and service annuity provided from the total sum
accumulated to his credit for such annuity
from employee contributions plus 1/10 of the accumulation for such annuity
from city contributions
for each year of service after the first 10 years and in addition, in
the case of a present employee, 1/10 of the prior service annuity
accumulated to his credit under "The 1935 Act" and this Article, for
each year of service after the first 10 years.
Any such annuity shall be computed as of the employee's age on the
date of withdrawal.
(Source: P.A. 81-1536.)
|
(40 ILCS 5/11-131) (from Ch. 108 1/2, par. 11-131)
Sec. 11-131.
Annuities - Present employees and future
entrants - Withdrawal before age 55.
An employee who withdraws after 10 years of service before age 55 and
attains age 55 while out of service, shall be entitled to annuity, after
attainment of age 55, as follows:
1. Present employee and future entrant with 20 or more years of
service-age and service annuity provided from the total sum accumulated
to his credit from employee contributions and city contributions for
such annuity, and, in addition in the case of a present employee, prior
service annuity from the total sum accumulated to his credit for such
annuity.
2. Present employee and future entrant with 10 or more but less than
20 years of service-age and service annuity provided from the total sum
accumulated to his credit for such annuities
from employee contributions plus 1/10 of the city contributions for
each year of service after the
first 10 years and in addition, in the case of a present employee, 1/10
of the total sum accumulated to his credit for prior service annuity
under "The 1935 Act" and this Article, for each year of service after
the first 10 years.
Any such annuity shall be computed as though the employee were age 55
when granted regardless of his actual age at the time of application for
annuity. An employee shall not be entitled to annuity for any period
between the date he attained age 55 and the date of application for
annuity.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-132) (from Ch. 108 1/2, par. 11-132)
Sec. 11-132.
Annuities-Re-entry into service.
Annuity in excess of that fixed in Sections 11-129, 11-130 and 11-131
shall not be granted to any employee described therein, unless he reentered
service before age 65. If such re-entry occurs, his annuity shall be
provided in accordance with Sections 11-128 to 11-131, inclusive,
whichever are applicable.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-133) (from Ch. 108 1/2, par. 11-133)
Sec. 11-133.
Service after time of fixing annuity.
Service rendered after the time of fixing an annuity shall not be
considered for age and service annuity or prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-133.1) (from Ch. 108 1/2, par. 11-133.1)
Sec. 11-133.1.
Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) be a current contributor to the Fund who, on | ||
| ||
(2) have not previously retired under this Article;
(3) file with the Board before June 1, 1993, a | ||
| ||
(4) withdraw from service on or after December 31, | ||
| ||
(5) have attained age 55 on or before the date of | ||
| ||
(6) by the date of withdrawal, have at least 10 years | ||
| ||
A person is not eligible for the benefits provided in this Section if the
person elects to receive a retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). An eligible person must
establish at least the amount of creditable service necessary to bring his
or her total creditable service, including service in this Fund, service
established under this Section, and service in any of the other participating
systems under the Retirement Systems Reciprocal Act, to a minimum of 20 years.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
11-134, but with the following exceptions:
(1) The annuity shall not be subject to reduction | ||
| ||
(2) The annuity shall be subject to a maximum of 80% | ||
| ||
(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on November
1, 1992. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall be deemed
contributions made by employees for annuity purposes under Section 11-169
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 11-161, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(Source: P.A. 87-1265.)
|
(40 ILCS 5/11-133.2)
Sec. 11-133.2.
Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) be a current contributor to the Fund who, on | ||
| ||
(2) have not previously retired under this Article;
(3) file with the Board before June 1, 1998, a | ||
| ||
(4) withdraw from service on or after December 31, | ||
| ||
(5) by the date of withdrawal: (i) have attained age | ||
| ||
A person is not eligible for the benefits provided in this Section if the
person elects to receive a retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). An eligible person must
establish at least the amount of creditable service necessary to bring his
or her total creditable service, including service in this Fund, service
established under this Section, and service in any of the other participating
systems under the Retirement Systems Reciprocal Act, to a minimum of 20 years.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
11-134, but with the following exceptions:
(1) The annuity shall not be subject to reduction | ||
| ||
(2) The annuity shall be subject to a maximum of 80% | ||
| ||
(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on November
1, 1997. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall be deemed
contributions made by employees for annuity purposes under Section 11-169
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 11-161, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(Source: P.A. 90-511, eff. 8-22-97.)
|
(40 ILCS 5/11-133.3)
Sec. 11-133.3. Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) have been a contributor to the Fund who (i) on | ||
| ||
(2) have not previously retired under this Article;
(3) file with the Board on or before January 30, | ||
| ||
(4) withdraw from service on or after January 31, | ||
| ||
(5) by the date of withdrawal or by January 31, 2004, | ||
| ||
A person is not eligible for the benefits provided in this Section if the
person
elects to receive a retirement annuity
calculated under the alternative formula formerly set forth in Section
20-122.
(a-5) To ensure that the efficient operation of employers under this Article
is not jeopardized by the simultaneous retirement of large numbers of critical
personnel, each employer may, for its critical employees, extend the February 29, 2004 deadline for terminating employment under this Article established in
subdivision (a)(4) of this Section to a date not later than May 31, 2004 by
so notifying the Fund by January 31, 2004.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). In addition, for each month of
creditable service established under this Section, a person's age at retirement
shall be deemed to be one month older than it actually is, except for
determination of eligibility for automatic annual increases under Sections
11-134.1 and 11-134.3. Furthermore, an eligible employee must establish at
least the amount of age and creditable service necessary to bring his or her
age and total creditable service, including service in this Fund, service
established under this Section, and service in any of the other participating
systems under the Retirement Systems Reciprocal Act, to a minimum that will
satisfy the requirements of Section 11-134.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
11-134, except that the annuity shall not be subject to reduction because of
withdrawal or commencement of the annuity before attainment of age 60.
(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on October
15, 2003. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall not be deemed
contributions made by employees for annuity purposes under Section 11-169,
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 11-161, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(f) No employer action in declaring an employee to be a critical employee pursuant to subsection (a-5) shall be construed as an impairment of any pension benefit or entitlement. No early retirement option or resultant benefit conferred under this Section shall, in any manner, vest for any employee until the earlier date of the employer's decision to release the employee from service or May 31, 2004.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/11-133.4)
Sec. 11-133.4. Early retirement incentive for employees who have earned
maximum pension benefits.
(a) A person who is eligible for the benefits provided
under Section 11-133.3 and who, if he or she had retired on or before February 29, 2004,
would have been entitled to a pension equal to 80% of his or her highest
average annual salary for any 4 consecutive years within the last 10 years of
service immediately preceding February 29, 2004 without receiving the benefits
provided in Section 11-133.3, may elect, by filing a written election with the
Fund by January 30, 2004, to receive a lump sum from the Fund equal to 100% of
his or her salary on February 29, 2004 or the date of
withdrawal, whichever is earlier. To be eligible to receive the benefit
provided under this Section, the person must withdraw from service on or after
January 31, 2004 and on or before February 29, 2004 (or the date established
under subsection (b), if applicable). If a person elects to receive the
benefit provided under this Section, his or her retirement annuity otherwise
payable under Section 11-134
shall be reduced by an amount equal to the actuarial equivalent of the lump
sum.
(b) To ensure that the efficient operation of employers under this Article
is not jeopardized by the simultaneous retirement of large numbers of critical
personnel, each employer may, for its critical employees, extend the February 29,
2004 deadline for terminating employment under this Article established in
subdivision (a) of this Section to a date not later than May 31, 2004 by
so notifying the Fund by January 31, 2004.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
Sec. 11-134. Minimum annuities.
(a) An employee whose withdrawal occurs after July 1, 1957 at age 60 or
over, with 20 or more years of service, (as service is defined or computed
in Section 11-216), for whom the age and service and prior service annuity
combined is less than the amount stated in this Section, shall, from and
after the date of withdrawal, in lieu of all annuities otherwise provided
in this Article, be entitled to receive an annuity for life of an amount
equal to 1 2/3% for each year of service, of the highest average annual
salary for any 5 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that in the case of
any employee who withdraws on or after July 1, 1971, such employee age 60
or over with 20 or more years of service, shall be entitled to instead
receive an annuity for life equal to 1.67% for each of the first 10 years
of service; 1.90% for each of the next 10 years of service; 2.10% for each
year of service in excess of 20 but not exceeding 30; and 2.30% for each
year of service in excess of 30, based on the highest average annual salary
for any 4 consecutive years within the last 10 years of service immediately
preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before January 1,
1988, with 20 or more years of service, before age 60, shall be entitled to
an annuity, to begin not earlier than age 55, if under such age at
withdrawal, as computed in the last preceding paragraph, reduced 0.25% if
the employee was born before January 1, 1936, or 0.5% if the employee was
born on or after January 1, 1936, for each full month or fractional part
thereof that his attained age when such annuity is to begin is less than 60.
Any employee born before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or more years of
service who withdraws on or after January 1, 1988, may elect to receive, in
lieu of any other employee
annuity provided in this Section, an annuity for life equal to 1.80% for
each of the first 10 years of service, 2.00% for each of the next 10 years
of service, 2.20% for each year of service in excess of 20, but not
exceeding 30, and 2.40% for each year of service in excess of 30,
of the highest average annual salary for any 4
consecutive years within the last 10 years of service immediately preceding
the date of withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for each full month
or fractional part thereof that his attained age when annuity is to begin
is less than 60; except that an employee retiring on or after January 1,
1988, at age 55 or over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at age 55
or over but less than age 60, having at least 30 years of service,
or an employee retiring on or after the effective date of this amendatory Act
of 1997, at age 55 or over but less than age 60, having at least 25 years of
service, shall not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or after January 1,
1985 but before January 1, 1988, at age 55 or older and with at least 35
years of service, and who was subject under this subsection (a) to the
reduction in retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and the retirement
annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with 20 or more
years of service, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal to 2.20% for
each year of service if withdrawal is before January 1, 2002, or
2.40% for each year of service if withdrawal is on or after January 1,
2002, of the highest average annual salary for any 4
consecutive years within the last 10 years of service immediately preceding
the date of withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for each full month
or fractional part thereof that his attained age when annuity is to begin
is less than 60; except that an employee retiring at age 55 or over but
less than age 60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement below age 60.
Any employee who withdraws on or after the effective date of this
amendatory Act of 1997 with 20 or more years of service may elect to receive,
in lieu of any other employee annuity provided in this Section, an annuity for
life equal to 2.20% for each year of service if withdrawal is before
January 1, 2002, or 2.40% for each year of service if withdrawal is
on or
after January 1, 2002, of the
highest average annual
salary for any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, to begin not earlier than upon
attainment of age 55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional part thereof that the
employee's attained age when annuity is to begin is less than 60; except that
an employee retiring at age 50 or over with at least 30 years of service or at
age 55 or over with at least 25 years of service shall not be subject to the
reduction in retirement annuity because of retirement below age 60.
The maximum annuity payable under this paragraph (a) of this Section
shall not exceed 70% of highest average annual salary in the case of an
employee who withdraws prior to July 1, 1971, 75% if withdrawal takes place on
or after July 1, 1971 and prior to January 1, 2002, or 80% if
withdrawal
is on or after January 1, 2002. For the purpose of the
minimum annuity
provided in said paragraphs $1,500 shall be considered the minimum annual
salary for any year; and the maximum annual salary to be considered for the
computation of such annuity shall be $4,800 for any year prior to 1953,
$6,000 for the years 1953 to 1956, inclusive, and the actual annual salary,
as salary is defined in this Article, for any year thereafter.
(b) For an employee receiving disability benefit, his salary for annuity
purposes under this Section shall, for all periods of disability benefit
subsequent to the year 1956, be the amount on which his disability benefit
was based.
(c) An employee with 20 or more years of service, whose entire
disability benefit credit period expires prior to attainment of age 55
while still disabled for service, shall be entitled upon withdrawal to the
larger of (1) the minimum annuity provided above assuming that he is then
age 55, and reducing such annuity to its actuarial equivalent at his
attained age on such date, or (2) the annuity provided from his age and
service and prior service annuity credits.
(d) The minimum annuity provisions as aforesaid shall not apply to any
former employee receiving an annuity from the fund, and who re-enters
service as an employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(e) An employee in service on July 1, 1947, or who became a contributor
after July 1, 1947 and prior to July 1, 1950, or who shall become a
contributor to the fund after July 1, 1950 prior to attainment of age 70,
who withdraws after age 65 with less than 20 years of service, for whom the
annuity has been fixed under the foregoing Sections of this Article shall,
in lieu of the annuity so fixed, receive an annuity as follows:
Such amount as he could have received had the accumulated amounts for
annuity been improved with interest at the effective rate to the date of
his withdrawal, or to attainment of age 70, whichever is earlier, and had
the city contributed to such earlier date for age and service annuity the
amount that would have been contributed had he been under age 65, after the
date his annuity was fixed in accordance with this Article, and assuming
his annuity were computed from such accumulations as of his age on such
earlier date. The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section if the employee
was credited with 20 years of service and would qualify for annuity
thereunder.
(f) In lieu of the annuity provided in this or in any other Section of
this Article, an employee having attained age 65 with at least 15 years of
service who withdraws from service on or after July 1, 1971 and whose
annuity computed under other provisions of this Article is less than the
amount provided under this paragraph shall be entitled to receive a minimum
annual annuity for life equal to 1% of the highest average annual salary
for any 4 consecutive years within the last 10 years of service immediately
preceding retirement for each year of his service plus the sum of $25 for
each year of service. Such annual annuity shall not exceed the maximum
percentages stated under paragraph (a) of this Section of such highest
average annual salary.
(f-1) Instead of any other retirement annuity provided in this Article,
an employee who has at least 10 years of service and withdraws from service
on or after January 1, 1999 may elect to receive a retirement annuity for
life, beginning no earlier than upon attainment of age 60, equal to 2.2%
if withdrawal is before January 1, 2002, or 2.4% for each year of
service if
withdrawal is on or after January 1, 2002, of final
average salary for
each
year of service, subject to a maximum of 75% of final average salary
if withdrawal is before January 1, 2002, or 80% if withdrawal is on
or after
January 1, 2002. For the purpose of calculating this
annuity, "final average
salary" means the highest average annual salary for any 4 consecutive years
in the last 10 years of service. Notwithstanding any provision of this subsection to the contrary, the "final average salary" for a participant that received credit under item (3) of subsection (c) of Section 11-215 means the highest average salary for any 4 consecutive years (or any 8 consecutive years if the employee first became a participant on or after January 1, 2011) in the 10 years immediately prior to the leave of absence, and adding to that highest average salary, the product of (i) that highest average salary, (ii) the average percentage increase in the Consumer Price Index during each 12-month calendar year for the calendar years during the participant's leave of absence, and (iii) the length of the leave of absence in years, provided that this shall not exceed the participant's salary at the local labor organization. For purposes of this Section, the Consumer Price Index is the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.
(g) Any annuity payable under the preceding subsections of this Section
11-134 shall be paid in equal monthly installments.
(h) The amendatory provisions of part (a) and (f) of this Section shall
be effective July 1, 1971 and apply in the case of every qualifying
employee withdrawing on or after July 1, 1971.
(h-1) The changes made to this Section by Public Act 92-609 (increasing the retirement
formula to 2.4% per year of service and increasing the maximum to 80%) apply
to persons who withdraw from service on or after January 1, 2002, regardless
of whether that withdrawal takes place before the effective date of that Act. In the case of a person who withdraws from service
on or after January 1, 2002 but begins to receive a retirement annuity before
July 1, 2002, the annuity
shall be recalculated, with the increase resulting from Public Act 92-609
accruing from the date the retirement annuity
began. The changes made by Public Act 92-609 control over the changes made
by Public Act 92-599, as provided in Section 95 of P.A. 92-609.
(i) The amendatory provisions of this amendatory Act of 1985 relating to
the discount of annuity because of retirement prior to attainment of age 60
and increasing the retirement formula for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or after
August 16, 1985.
(j) Beginning on January 1, 1999, the minimum amount of employee's annuity
shall be $850 per month for life for the following classes of employees,
without regard to the fact that withdrawal occurred prior to the effective
date of this amendatory Act of 1998:
(1) any employee annuitant alive and receiving a life | ||
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(2) any employee annuitant alive and receiving a term | ||
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(3) any employee annuitant alive and receiving a | ||
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(4) any employee annuitant withdrawing after age 60 | ||
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The increases granted under items (1), (2) and (3) of this subsection (j)
shall not be limited by any other Section of this Act.
(Source: P.A. 97-651, eff. 1-5-12; 98-756, eff. 7-16-14.)
|
(40 ILCS 5/11-134.1)
(from Ch. 108 1/2, par. 11-134.1)
(Text of Section WITH the changes made by P.A. 98-641, which has been held unconstitutional) Sec. 11-134.1. Automatic increase in annuity.
(a) An employee who retired or retires from service after December 31,
1963, and before January 1, 1987, having attained age 60 or more,
shall, in the month of January of
the year following the year in which the first anniversary of retirement
occurs, have the amount of his then fixed and payable monthly annuity
increased by 1 1/2%, and such first fixed annuity as granted at
retirement increased by a further 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases
shall be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
Beginning January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases
previously granted under this Article. An employee who retires on annuity
after December 31, 1963 and before January 1, 1987, but prior to age
60, shall receive such increases beginning with January of the year
immediately following the year in which he attains the age of 60 years.
An employee who retires from service on or after January 1, 1987 shall,
upon the first annuity payment date following the first anniversary of the
date of retirement, or upon the first annuity payment date following
attainment of age 60, whichever occurs later, have his then fixed and
payable monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity on the same
date each year thereafter.
Beginning in January of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases previously granted
under this Article.
(a-5) Notwithstanding the provisions of subsection (a), upon the first
annuity payment date following (1) the third anniversary of retirement, (2)
the attainment of age 53, or (3) January 1, 2002,
whichever occurs latest, the monthly annuity of an employee who retires on
annuity prior to the attainment of age 60 and has not received an
increase under subsection (a) shall be increased by 3%, and the
annuity shall be increased by an additional 3% of the current payable monthly
annuity, including any
increases previously granted under this
Article, on the same date each year thereafter. The increases provided under
this subsection are in lieu of the increases provided in subsection (a).
(a-6) Notwithstanding the provisions of subsections (a) and (a-5), for
all calendar years following the year in which this amendatory Act of the 93rd
General Assembly takes effect, an increase in annuity under this Section that
would otherwise take effect at any time during the year shall instead take
effect in January of that year.
(b) Subsections (a), (a-5), and (a-6) are not applicable to
an employee retiring and receiving a term annuity, as defined in this Article,
nor to any otherwise
qualified employee who retires before he shall have made employee contributions
(at the 1/2 of 1% rate as hereinafter provided) for the purposes of this
additional annuity for not less than the equivalent of one full year. Such
employee, however, shall make arrangement to pay to the fund a balance of such
1/2 of 1% contributions, based on his final salary, as will bring such 1/2 of
1% contributions, computed without interest, to the equivalent of or completion
of one year's contributions.
Beginning with the month of January, 1964, each employee shall contribute
by means of salary deductions 1/2 of 1% of each salary payment, concurrently
with and in addition to the employee contributions otherwise made for annuity
purposes.
Each such additional employee contribution shall be credited to an
account in the prior service annuity reserve, to be used, together with
city contributions, to defray the cost of the specified annuity
increments. Any balance as of the beginning of each calendar year
existing in such account shall be credited with interest at the rate of
3% per annum.
Such employee contributions shall not be subject to refund, except to
an employee who resigns or is discharged and applies for refund under
this Article, and also in cases where a term annuity becomes payable.
In such cases the employee contributions shall be refunded him,
without interest, and charged to the aforementioned account in the prior
service annuity reserve.
(b-5) Notwithstanding any provision of this Section to the contrary: (1) A person retiring after the effective date of | ||
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(2) Except for persons eligible under subdivision (4) | ||
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(3) In all other years, beginning January 1, 2015, | ||
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For the purposes of this Section, "consumer price | ||
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(4) A person is eligible under this subdivision (4) | ||
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Beginning January 1, 2015, for a person who is | ||
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Beginning January 1, 2015, for any other year in | ||
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For the purposes of Section 1-103.1, this subsection (b-5) is applicable without regard to whether the employee was in active service on or after the effective date of this amendatory Act of the 98th General Assembly. This subsection (b-5) applies to any former employee who on or after the effective date of this amendatory Act of the 98th General Assembly is receiving a retirement annuity and is eligible for an automatic annual increase under this Section. (Source: P.A. 98-641, eff. 6-9-14.)
(Text of Section WITHOUT the changes made by P.A. 98-641, which has been held unconstitutional) Sec. 11-134.1. Automatic increase in annuity.
(a) An employee who retired or retires from service after December 31,
1963, and before January 1, 1987, having attained age 60 or more,
shall, in the month of January of
the year following the year in which the first anniversary of retirement
occurs, have the amount of his then fixed and payable monthly annuity
increased by 1 1/2%, and such first fixed annuity as granted at
retirement increased by a further 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases
shall be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
Beginning January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases
previously granted under this Article. An employee who retires on annuity
after December 31, 1963 and before January 1, 1987, but prior to age
60, shall receive such increases beginning with January of the year
immediately following the year in which he attains the age of 60 years.
An employee who retires from service on or after January 1, 1987 shall,
upon the first annuity payment date following the first anniversary of the
date of retirement, or upon the first annuity payment date following
attainment of age 60, whichever occurs later, have his then fixed and
payable monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity on the same
date each year thereafter.
Beginning in January of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases previously granted
under this Article.
(a-5) Notwithstanding the provisions of subsection (a), upon the first
annuity payment date following (1) the third anniversary of retirement, (2)
the attainment of age 53, or (3) January 1, 2002,
whichever occurs latest, the monthly annuity of an employee who retires on
annuity prior to the attainment of age 60 and has not received an
increase under subsection (a) shall be increased by 3%, and the
annuity shall be increased by an additional 3% of the current payable monthly
annuity, including any
increases previously granted under this
Article, on the same date each year thereafter. The increases provided under
this subsection are in lieu of the increases provided in subsection (a).
(a-6) Notwithstanding the provisions of subsections (a) and (a-5), for
all calendar years following the year in which this amendatory Act of the 93rd
General Assembly takes effect, an increase in annuity under this Section that
would otherwise take effect at any time during the year shall instead take
effect in January of that year.
(b) Subsections (a), (a-5), and (a-6) are not applicable to
an employee retiring and receiving a term annuity, as defined in this Article,
nor to any otherwise
qualified employee who retires before he shall have made employee contributions
(at the 1/2 of 1% rate as hereinafter provided) for the purposes of this
additional annuity for not less than the equivalent of one full year. Such
employee, however, shall make arrangement to pay to the fund a balance of such
1/2 of 1% contributions, based on his final salary, as will bring such 1/2 of
1% contributions, computed without interest, to the equivalent of or completion
of one year's contributions.
Beginning with the month of January, 1964, each employee shall contribute
by means of salary deductions 1/2 of 1% of each salary payment, concurrently
with and in addition to the employee contributions otherwise made for annuity
purposes.
Each such additional employee contribution shall be credited to an
account in the prior service annuity reserve, to be used, together with
city contributions, to defray the cost of the specified annuity
increments. Any balance as of the beginning of each calendar year
existing in such account shall be credited with interest at the rate of
3% per annum.
Such employee contributions shall not be subject to refund, except to
an employee who resigns or is discharged and applies for refund under
this Article, and also in cases where a term annuity becomes payable.
In such cases the employee contributions shall be refunded him,
without interest, and charged to the aforementioned account in the prior
service annuity reserve.
(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.
7-1-02; 93-654, eff. 1-16-04.) |
(40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
Sec. 11-134.2.
Reversionary annuity.
(a) An employee, prior to retirement on annuity, may elect to take a
lesser amount of annuity and provide, with the actuarial value of the
amount by which his annuity is reduced, a reversionary annuity for a wife,
husband, parent, child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to retirement, and may be
revoked by the employee at any time before retirement. The death of the
employee prior to his retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant prior to the
employee's retirement shall automatically void the option. If the
reversionary annuitant dies after the employee's retirement, and before
the death of the employee annuitant, the reduced
annuity being paid to the retired employee annuitant shall be increased
to the amount of annuity before reduction for the reversionary annuity
and no reversionary annuity shall be payable.
The option is subject to the further condition that no reversionary
annuity shall be paid to a parent, child, brother, or sister if the
employee dies before the expiration of 365
days from the date his written designation was filed with the board, even
though he has retired and is receiving a reduced annuity.
(c) The employee exercising this option shall not reduce his retirement
annuity by more than $400 per month, or elect to provide a
reversionary
annuity of less than $50 per month. No option shall be permitted if the
reversionary annuity for a widow, when added to the widow's annuity payable
under this Article, exceeds 100% of the reduced annuity payable to
the employee.
(d) A reversionary annuity shall begin on the day following the death of
the annuitant and shall be paid as provided in Section 11-124.
(e) The increases in annuity provided in Section 11-134.1 of this
Article shall, as to an employee so electing a reduced annuity, relate to
the amount of the original annuity, and such amount shall constitute the
annuity on which such increases shall be based.
(f) For annuities elected after June 30, 1983, the amount of the monthly
reversionary annuity shall be determined by multiplying the amount of the
monthly reduction in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in the age of
the employee and the age of the reversionary annuitant at the starting date
of the employee's annuity:
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(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98; 91-887, 7-6-00.)
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(40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
(Text of Section WITH the changes made by P.A. 98-641, which has been held unconstitutional) Sec. 11-134.3. Automatic increases in annuity for certain heretofore retired
participants. (a) A retired employee who (i) is receiving annuity based on a
service credit of 20 or more years regardless of age at retirement or based on
a service credit of 15 or more years with retirement at age 55 or over, and
(ii) does not qualify for the automatic increases in annuity provided for in
Section 11-134.1 of this Article, and (iii) elects to make a contribution to the
Fund at a time and manner prescribed by the Retirement Board, of a sum
equal to 1% of the amount of final monthly salary times the number of full
years of service on which the annuity was based in those cases where the
annuity was computed on the money purchase formula, and in those cases in
which the annuity was computed under the minimum annuity formula provisions
of this Article a sum equal to 1% of the average monthly salary on which
the annuity was based times such number of full years of service, shall
have his original fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the age of 65
years, if such age of 65 years is attained in the year 1969 or later, by an
amount equal to 1 1/2%, and by an equal additional 1 1/2% in January of
each year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
In those cases in which the retired employee receiving annuity has
attained the age of 66 or more years in the year 1969, he shall have such
annuity increased in January of the year 1970 by an amount equal to 1 1/2%
multiplied by the number equal to the number of months of January elapsing
from and including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65, or from and
including January of the year immediately following the year of retirement
if retired at an age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
(b) To defray the annual cost of such increases, the annual interest income
of the Fund, accruing from investments held by the Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over and above
4% a year, shall be used to the extent necessary and available to finance
the cost of such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year 1969, to a
Fund account designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Sec. 11-210. The sums
contributed by annuitants as provided for in this Section shall also be
placed in the aforesaid Supplementary Payment Reserve and shall be applied
for and used for the purposes of such Fund account, together with the
aforesaid interest.
In the event the monies in the Supplementary Payment Reserve in any year
arising from: (1) the available interest income as defined hereinbefore and
accruing in the preceding year above 4% a year and (2) the contributions by
retired persons, as set forth hereinbefore, are insufficient to make the
total payments to all persons estimated to be entitled to the annuity
increases specified hereinbefore, then (3) any interest earnings over 4% a
year beginning with the year 1969 which were not previously used to finance
such increases and which were transferred to the Prior Service Annuity
Reserve may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current year, and such
sums shall be transferred from the Prior Service Annuity Reserve.
In the event the total monies available in the Supplementary Payment
Reserve from the preceding indicated sources are insufficient to make the
total payments to all persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies available to the
total of the total payments for that year shall be paid to each person for
that year.
The Fund shall be obligated for the payment of the increases in annuity
as provided for in this Section only to the extent that the assets for such
purpose, as specified herein, are available.
(b-5) Notwithstanding any provision of this Section to the contrary: (1) Except for persons eligible under subdivision (3) | ||
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(2) In all other years, beginning January 1, 2015, | ||
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For the purposes of this Section, "consumer price | ||
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(3) A person is eligible under this subdivision (3) | ||
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Beginning January 1, 2015, for a person who is | ||
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Beginning January 1, 2015, for any other year in | ||
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For the purposes of Section 1-103.1, this subsection (b-5) is applicable without regard to whether the employee was in active service on or after the effective date of this amendatory Act of the 98th General Assembly. This subsection (b-5) applies to any former employee who on or after the effective date of this amendatory Act of the 98th General Assembly is receiving a retirement annuity and is eligible for an automatic annual increase under this Section. (Source: P.A. 98-641, eff. 6-9-14.)
(Text of Section WITHOUT the changes made by P.A. 98-641, which has been held unconstitutional) Sec. 11-134.3. Automatic increases in annuity for certain heretofore retired
participants. A retired employee who (a) is receiving annuity based on a
service credit of 20 or more years regardless of age at retirement or based on
a service credit of 15 or more years with retirement at age 55 or over, and
(b) does not qualify for the automatic increases in annuity provided for in
Section 11-134.1 of this Article, and (c) elects to make a contribution to the
Fund at a time and manner prescribed by the Retirement Board, of a sum
equal to 1% of the amount of final monthly salary times the number of full
years of service on which the annuity was based in those cases where the
annuity was computed on the money purchase formula, and in those cases in
which the annuity was computed under the minimum annuity formula provisions
of this Article a sum equal to 1% of the average monthly salary on which
the annuity was based times such number of full years of service, shall
have his original fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the age of 65
years, if such age of 65 years is attained in the year 1969 or later, by an
amount equal to 1 1/2%, and by an equal additional 1 1/2% in January of
each year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
In those cases in which the retired employee receiving annuity has
attained the age of 66 or more years in the year 1969, he shall have such
annuity increased in January of the year 1970 by an amount equal to 1 1/2%
multiplied by the number equal to the number of months of January elapsing
from and including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65, or from and
including January of the year immediately following the year of retirement
if retired at an age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the rate of
3% of the currently payable monthly annuity, including any increases previously
granted under this Article.
To defray the annual cost of such increases, the annual interest income
of the Fund, accruing from investments held by the Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over and above
4% a year, shall be used to the extent necessary and available to finance
the cost of such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year 1969, to a
Fund account designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Sec. 11-210. The sums
contributed by annuitants as provided for in this Section shall also be
placed in the aforesaid Supplementary Payment Reserve and shall be applied
for and used for the purposes of such Fund account, together with the
aforesaid interest.
In the event the monies in the Supplementary Payment Reserve in any year
arising from: (1) the available interest income as defined hereinbefore and
accruing in the preceding year above 4% a year and (2) the contributions by
retired persons, as set forth hereinbefore, are insufficient to make the
total payments to all persons estimated to be entitled to the annuity
increases specified hereinbefore, then (3) any interest earnings over 4% a
year beginning with the year 1969 which were not previously used to finance
such increases and which were transferred to the Prior Service Annuity
Reserve may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current year, and such
sums shall be transferred from the Prior Service Annuity Reserve.
In the event the total monies available in the Supplementary Payment
Reserve from the preceding indicated sources are insufficient to make the
total payments to all persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies available to the
total of the total payments for that year shall be paid to each person for
that year.
The Fund shall be obligated for the payment of the increases in annuity
as provided for in this Section only to the extent that the assets for such
purpose, as specified herein, are available.
(Source: P.A. 90-766, eff. 8-14-98.) |
(40 ILCS 5/11-135) (from Ch. 108 1/2, par. 11-135)
Sec. 11-135.
Widow's prior service annuity.
A "Widow's Prior Service Annuity" shall be credited for the widow of a
male present employee for service prior to the effective date, in
accordance with "The 1935 Act" and this Article, payable from and after
the death of the employee.
The amount so credited shall be improved by interest at the effective
rate during the time the employee is in the service or until the employee
attains age 65 or withdraws from the service, whichever event first occurs.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-136) (from Ch. 108 1/2, par. 11-136)
Sec. 11-136.
Widow's annuity.
A "Widow's Annuity" shall be credited for the widow of any male employee
covering service after the effective date, payable from and after his
death.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-137) (from Ch. 108 1/2, par. 11-137)
Sec. 11-137.
Widow's annuity-Present employee age 65 on effective date.
The widow of a present employee who attains age 65 or more on or before
the effective date is entitled, after his death, to an annuity fixed on the
date he becomes age 65.
The annuity shall be that provided on a reversionary annuity basis from
the credit for widow's prior service annuity on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-138) (from Ch. 108 1/2, par. 11-138)
Sec. 11-138.
Widow's annuity-Present employees and future entrants attaining
age 65 in service.
The widow of a present employee who attains age 65 while in service
after the effective date, or of a future entrant who attains age 65 while
in service, is entitled, after the date of his death, to an annuity fixed
for the widow of a present employee or future entrant on the date he
attains age 65.
The widow is entitled to annuity as follows:
If the employee's withdrawal occurs after age 65 and he enters upon
annuity or if the employee's death occurs in the service after his
attainment of age 65, the annuity shall be that provided on a reversionary
annuity basis from the total sums accumulated to his credit for widow's
annuity and (if he was a present employee) widow's prior service annuity on
the date he became age 65.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-139) (from Ch. 108 1/2, par. 11-139)
Sec. 11-139.
Widow's annuity-Present employees and future entrants-Death in
service before 65.
The widow of an employee whose death occurs in service before age 65
shall be entitled to an annuity of an amount provided on a single life
annuity basis from the total sum accumulated to his credit for age and
service annuity and widow's annuity, plus the credit as of the date of
death in the service for prior service annuity, and widow's prior service
annuity if he was a present employee; but no part thereof representing
contributions by the city shall be used to provide an annuity in excess of
that which she would have had if the employee had lived and remained in
service at the rate of his final salary until he became age 65, and the
widow's annuity were fixed on a reversionary annuity basis as provided in
this Article. The annuity shall be computed as of the date of the
employee's death.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-140) (from Ch. 108 1/2, par. 11-140)
Sec. 11-140.
Widow's annuity-Present employees and future entrants-Withdrawal
after age 60 but before 65.
The widow of an employee who attains age 60 or more but less than age 65
in service and who withdraws from service shall be entitled, after his
death, to an annuity fixed as of the date of withdrawal.
The annuity shall be the amount provided on a reversionary annuity basis
from the total sums accumulated to his credit for widow's annuity and (if
he was a present employee) widow's prior service annuity as of the date of
withdrawal.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-141) (from Ch. 108 1/2, par. 11-141)
Sec. 11-141.
Widow's annuity - Present employees and future
entrants - Withdrawal after age 55 but before 60.
The widow of an employee who, (1) attains age 55 or more but less
than age 60 in service, and (2) has served 10 or more years and (3)
withdraws from service, shall be entitled after his death to an annuity
fixed as of the date of withdrawal.
The widow is entitled to receive the amount provided on a
reversionary annuity basis from the total sum accumulated to the
employee's credit on the date when the annuity was fixed, as follows:
(1) If service is 20 or more years, the total credits for widow's
annuity and in addition, if he was a present employee, the total credits
for widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the total
credits for widow's annuity from employee contributions and 1/10 of the
total credits for widow's annuity from city contributions for each year
of service after the first 10 years, including for the widow of a
present employee 1/10 of the total credits for widow's prior service
annuity from city contributions for each year of service after the first
10 years.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-142) (from Ch. 108 1/2, par. 11-142)
Sec. 11-142.
Widow's annuity - Present employees and future
entrants - Withdrawal before age 55.
The widow of an employee who withdraws after 10 or more years of
service before age 55 and later attains such age while not in service,
shall be entitled after his death to an annuity fixed on the date the
employee becomes age 55.
The widow shall be entitled to an amount provided on a reversionary
annuity basis from the following sums accumulated to his credit on the
date when the annuity is fixed:
(1) If service is 20 or more years, the total credits for widow's
annuity and, in addition, if he was a present employee, the total
credits for widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years:
(a) For the widow of a future entrant the total credits for widow's
annuity from employee contributions
and 1/10 of the total credits for
widow's annuity from city contributions for each year of service after
the first 10 years;
(b) For the widow of a present employee the total credits for
widow's annuity from employee contributions and 1/10 of the total
credits for widow's annuity and widow's prior service annuity from city
contributions.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-143) (from Ch. 108 1/2, par. 11-143)
Sec. 11-143.
Widow's annuity - Present employees and future
entrants - Withdrawal and death before age 55.
The widow of an employee with 10 or more years of service who
withdraws before age 55 and who dies while out of service before age 55
shall be entitled to an annuity computed on a single life annuity basis
at the date of death from the following sums accumulated to his credit:
(1) If service is 20 or more years, the total credits for age and
service annuity and widow's annuity, and, in addition, if he was a
present employee, the total credits for prior service annuity and
widow's prior service annuity; or
(2) If service is 10 or more but less than 20 years, the total
credits for age and service annuity and widow's annuity from
employee contributions plus
1/10 of the total credits for age and service annuity
and widow's annuity from city contributions for each year of service
after the first 10 years of service, and, for the widow of a present
employee, 1/10 of the total credits for prior service and widow's prior
service annuity from city contributions for each year of service after
the first 10 years.
No city contributions shall be used for a widow's annuity in excess
of that which she would receive if the employee had lived until he
attained age 55 and had not re-entered the service and an annuity were
fixed for her on a reversionary annuity basis as of her age when her
husband would have attained age 55.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-144) (from Ch. 108 1/2, par. 11-144)
Sec. 11-144.
Widow's annuity-Re-entry of employee into service.
No annuity in excess of that fixed in accordance with Sections 11-140,
11-141 and 11-142 shall be granted to a widow described in those sections
unless the employee re-enters service before age 65, in which case the
annuity for his wife shall be fixed as of the date he attains age 65 while
in service, or when he again withdraws, whichever first occurs.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-145) (from Ch. 108 1/2, par. 11-145)
Sec. 11-145.
Employee's widow's annuity - No contributions or service
credits after fixation.
No contributions by the employee or the city for an annuity for the
widow of an employee shall be made after the date when her annuity has
been fixed. No service of an employee rendered after such date shall be
considered for widow's annuity except as herein provided.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-145.1)
(from Ch. 108 1/2, par. 11-145.1)
Sec. 11-145.1. Minimum annuities for widows.
The widow otherwise eligible for widow's annuity under other Sections of
this Article 11, of an employee hereinafter described, who retires from
service or dies while in the service subsequent to the effective date of
this amendatory provision, and for which widow the amount of widow's
annuity and widow's prior service annuity combined, fixed or provided for
such widow under other provisions of said Article 11 is less than the
amount hereinafter provided in this section, shall, from and after the date
her otherwise provided annuity would begin, in lieu of such otherwise
provided widow's and widow's prior service annuity, be entitled to the
following indicated amount of annuity:
(a) The widow of any employee who dies while in service on or after the date
on which he attains age 60 if the death occurs before July 1, 1990, or on or
after the date on which he attains age 55 if the death occurs on or after July
1, 1990, with at least 20 years of service, or on or after the date on which
he attains age 50 if the death occurs on or after the effective date of this
amendatory Act of 1997 with at least 30 years of service, shall be entitled
to an annuity equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn from the service
on the day immediately preceding the date of his death, conditional upon such
widow having attained age 60 on or before such date if the death occurs before
July 1, 1990, or age 55 if the death occurs on or after July 1, 1990, or age
50 if the death occurs on or after January 1, 1998 and the employee is age 50
or over with at least 30 years of service or age 55 or over with at least 25
years of service. Except
as provided in subsection (j), the widow's annuity shall not, however,
exceed the sum of $500 a month if the employee's death in service occurs before
January 23, 1987. The widow's annuity shall not be limited to a maximum dollar
amount if the employee's death in service occurs on or after January 23, 1987.
If the employee dies in service before July 1, 1990, and if such
widow of such described employee shall not be 60 or more years
of age on such date of death, the amount provided in the immediately
preceding paragraph for a widow 60 or more years of age, shall, in the case
of such younger widow, be reduced by 0.25% for each month that
her then attained age is less than 60 years if the employee was born before
January 1, 1936, or dies in service on or after January 1, 1988, or
0.5% for each month that her then attained age is less
than 60 years if the employee was born on or after January 1, 1936 and
dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990, and if the
widow of the employee has not attained age 55 on or before the employee's
date of death, the amount otherwise provided in this subsection (a) shall
be reduced by 0.25% for each month that her then attained age is less than
55 years; except that
if the employee dies in service on or after January 1, 1998 at age 50 or over
with at least 30 years of service or at age 55 or over with at least 25 years
of service, there shall be no reduction due to the widow's age if she has
attained age 50 on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of death the amount
otherwise provided in this subsection (a) shall be reduced by 0.25% for each
month that her then attained age is less than 50 years.
(b) The widow of any employee who dies subsequent to the date of his
retirement on annuity, and who so retired on or after the date on which he
attained age 60 if retirement occurs before July 1, 1990, or on or after the
date on which he attained age 55 if retirement occurs on or after July 1, 1990,
with at least 20 years of service, or on or after the date on which he
attained age 50 if the retirement occurs on or after the effective date of this
amendatory Act of 1997 with at least 30 years of service, shall be entitled
to an annuity equal to one-half of the amount of annuity which her deceased
husband received as of the date of his retirement on annuity, conditional upon
such widow having attained age 60 on or before the date of her husband's
retirement on annuity if retirement occurs before July 1, 1990, or age 55 if
retirement occurs on or after July 1, 1990, or age 50 if the
retirement on annuity
occurs on or after January 1, 1998 and the employee is age 50 or over with
at least 30 years of service or age 55 or over with at least 25 years of
service.
Except as provided in subsection
(j), this widow's annuity shall not, however, exceed the
sum of $500 a month if the employee's death occurs before January 23, 1987.
The widow's annuity shall not be limited to a maximum dollar amount if the
employee's death occurs on or after January 23, 1987, regardless of the date
of retirement; provided that, if retirement was before January 23, 1987, the
employee or eligible spouse repays the excess spouse refund with interest at
the effective rate from the date of refund to the date of repayment.
If the date of the employee's retirement on annuity is before July 1,
1990, and if such widow of such described employee shall not have
attained such age of 60 or more years on such date of her husband's
retirement on annuity, the amount provided in the immediately preceding
paragraph for a widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then younger widow, be
reduced by 0.25% for each month that her then attained age was less than 60
years if the employee was born before January 1, 1936, or withdraws from
service on or after January 1, 1988, or 0.5% for each month that her then
attained age was less than 60 years if the employee was born on or after
January 1, 1936 and withdraws from service before January 1, 1988.
If the date of the employee's retirement on annuity is on or after July
1, 1990, and if the widow of the employee has not attained age 55 by the
date of the employee's retirement on annuity, the amount otherwise provided
in this subsection (b) shall be reduced by 0.25% for each month that her
then attained age is less than 55 years; except that if
the employee retires on annuity on or after January 1, 1998 at age 50 or over
with at least 30 years of service or at age 55 or over with at least 25 years
of service, there shall be no reduction due to the widow's age if she has
attained age 50 on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of death the amount
otherwise provided in this subsection (b) shall be reduced by 0.25% for each
month that her then attained age is less than 50 years.
(c) The foregoing provisions relating to minimum annuities for widows
shall not apply to the widow of any former employee receiving an annuity
from the fund on August 2, 1965 or on the effective date of this amendatory
provision, who re-enters service as a former employee, unless such employee
renders at least 3 years of additional service after the date of re-entry.
(d) (Blank).
(e) (Blank).
(f) The amendments to this Section by this amendatory Act of 1985, relating
to changing the discount because of age from 1/2 of 1% to 0.25% per month for
widows of employees born before January 1, 1936, shall apply only to qualifying
widows whose husbands die while in the service on or after August 16, 1985 or
withdraw and enter on annuity on or after August 16, 1985.
(g) Beginning on January 1, 1999, the minimum amount of widow's
annuity shall be $800 per month for life for the following
classes of widows, without regard to the fact that the death of the employee
occurred prior to the effective date of this amendatory Act of
1998:
(1) any widow annuitant alive and receiving a term | ||
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(2) any widow annuitant alive and receiving a life | ||
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(3) any widow annuitant alive and receiving a | ||
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(4) the widow of an employee with at least 10 years | ||
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(5) the widow of an employee with at least 10 years | ||
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(6) the widow of an employee who dies in service with | ||
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The increases granted under items (1), (2), (3) and (4) of this
subsection (g) shall not be limited by any other Section of this Act.
(h) The widow of an employee who retired or died in service on or
after January 1, 1985 and before July 1, 1990, at age 55 or older, and with
at least 35 years of service credit, shall be entitled to have her widow's
annuity increased, effective January 1, 1991, to an amount equal to 50% of
the retirement annuity that the deceased employee received on the date of
retirement, or would have been eligible to receive if he had retired on the
day preceding the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's retirement or death
in service, the amount of the annuity shall be reduced by 0.25% for each
month that her then attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January 1, 1988, or by
0.5% for each month that her attained age is less than age 60 if the
employee's retirement or death in service occurred prior to January 1,
1988. However, in cases where a refund of excess contributions for
widow's annuity has been paid by the Fund, the increase in benefit provided
by this subsection (h) shall be contingent upon repayment of the
refund to the Fund with interest at the effective rate from the date of refund
to the date of payment.
(i) If a deceased employee is receiving a retirement annuity at the time
of death and that death occurs on or after June 27, 1997,
the widow may elect to receive, in lieu of any
other annuity provided under this Article, 50% of the deceased employee's
retirement annuity at the time of death reduced by 0.25% for each month that
the widow's age on the date of death is less than 55; except that if the
employee dies on or after January 1, 1998 and withdrew from service on or
after June 27, 1997 at age 50 or over with at least 30 years of service
or at age 55 or over with at least 25 years of service, there shall be no
reduction due to the widow's age if she has attained age 50 on or before the
employee's date of death, and if the widow has not attained age 50 on or before
the employee's date of death the amount otherwise provided in this subsection
(i) shall be reduced by 0.25% for each month that her age on the date of death
is less than 50 years. However, in cases where
a refund of excess contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (i) is contingent upon repayment of the
refund to the Fund with interest at the effective rate from the date of refund
to the date of payment.
(j) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum dollar amount
limitation on widow's annuity shall cease to apply, beginning with the first
annuity payment after the effective date of this amendatory Act
of 1997; except
that if a refund of excess contributions for widow's annuity has been paid by
the Fund, the increase resulting from this subsection (j) shall not begin
before the refund has been repaid to the Fund, together with interest at the
effective rate from the date of the refund to the date of repayment.
(k) In lieu of any other annuity provided in this Article, an eligible
spouse of an employee who dies in service on or after January 1, 2002
(regardless of whether that death in service occurs prior to the effective date of this amendatory Act of the 93rd General Assembly)
with at least 10 years of service shall be
entitled to an annuity of 50% of the minimum formula annuity earned and
accrued to the credit of the employee at the date of death.
For the purposes of this subsection, the minimum formula annuity earned and
accrued to the credit of the employee is equal to 2.40% for each year of
service of the highest average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the date of death, up to
a maximum of 80% of the highest average annual salary. This annuity shall
not be reduced due to the age of the employee or spouse. In addition to any
other eligibility requirements under this Article, the spouse is eligible for
this annuity only if the marriage was in effect for 10 full years or more.
(Source: P.A. 92-599, eff. 6-28-02; 93-654, eff. 1-16-04.)
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(40 ILCS 5/11-146) (from Ch. 108 1/2, par. 11-146)
Sec. 11-146.
Compensation annuity and supplemental annuity.
When annuity otherwise provided in this Article for the widow of an
employee whose death results solely from injury incurred in the performance
of an act of duty is less than 60% of his salary in effect at the time of
the injury, "Compensation Annuity" equal to the difference between such
annuity and 60% of such salary, shall be payable to her until the date when
the employee, if alive, would have attained age 65; and in any case where
the employee's death is only partly due to the duty incurred injury, the
"Compensation Annuity" shall be based on an amount equal to 40% of such
salary.
Thereafter, the widow shall be entitled to "Supplemental Annuity" equal
to the difference between the annuity otherwise provided in this Article
and the annuity to which she would be entitled if the employee had lived
and continued in the service at the salary in effect at the date of injury
until he attained age 65, and based upon her age as it would be on the date
he would have attained 65.
"Compensation" or "Supplemental Annuity" shall not be payable unless the
widow was the wife of the employee when the injury was incurred.
The city shall contribute to the fund each year the amount required for
all Compensation Annuities. Supplemental Annuity shall be provided from
city contributions after the date of the employee's death, of such equal
sums annually, which when improved by interest at the effective rate, will
be sufficient, at the time payment of Compensation Annuity to the widow
ceases to provide Supplemental Annuity, as stated, for the widow throughout
her life thereafter.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-147) (from Ch. 108 1/2, par. 11-147)
Sec. 11-147.
Widows or wives not entitled to annuity.
The following
widows or wives of employees have no right to annuity from the fund:
(a) The wife or widow, married subsequent to the effective date, of
an employee who dies in service if she was not married to him before he
attained age 65;
(b) The wife or widow, married subsequent to the effective date, of
an employee who withdraws whether or not he enters upon annuity, and who
dies while out of service, if she was not his wife while he was in
service and before he attained age 65;
(c) The wife or widow of an employee with 10 or more years of
service whose death occurs out of and after he has withdrawn from
service, and who has received a refund of his contributions for annuity purposes;
(d) The wife or widow of an employee with less than 10 years of
service who dies out of service after he has withdrawn from service
before he attained age 65;
(e) The former wife or widow of an employee whose judgment of
dissolution of marriage has been vacated or set aside after the
employee's death, unless the proceedings to vacate or set aside the
judgment were filed in court within 5 years after the entry thereof and
within 1 year after the employee's death, and unless the board is made a
party defendant to such proceedings;
(f) The wife or widow who married an employee while he was in
receipt of disability benefit from this fund unless he re-entered and
rendered service subsequent to such marriage for a period of at least 1
year or died while in service.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148)
Sec. 11-148.
Widow's remarriage.
A widow's annuity shall terminate when she remarries if the marriage takes
place before the date 60 days after the effective date of this amendatory Act
of the 91st General Assembly. If a widow remarries 60 or
more days after the effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without interruption.
When a widow dies, if she has not
received, in the form of an annuity, an amount equal to the total sum
accumulated to his credit from employee's contributions and applied for
the widow's annuity, the difference between such accumulated annuity
credits and the amount received by her in annuity payments shall be
refunded to her, provided, that if a reversionary annuity is payable if to
her, or to any other person designated by the employee, such aforesaid
amount shall not be refunded but the reversionary annuity shall be
payable. If there is any child of the employee who is under 18 years of age,
the part of any such amount that is required to pay an annuity to the child
shall be transferred to the child's annuity reserve. In making refunds under
this Section, no interest shall be paid upon either the total of annuity
payments made or the amounts subject to refund. Any refund shall be paid
according to the provisions of Section 11-166.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/11-148.1) (from Ch. 108 1/2, par. 11-148.1)
Sec. 11-148.1.
Annuities to survivors of female employees.
All provisions of this Article relating to annuities or benefits to a
widow, minor children or other survivors of a male employee shall apply
with equal force to a surviving spouse, children or other eligible
survivors of a female employee, including credits for the several annuity
purposes, refunds and death benefits, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/11-149) (from Ch. 108 1/2, par. 11-149)
Sec. 11-149.
Maximum annuities.
(1) The annuities to an employee and his widow are subject to the
following limitations:
(a) No age and service annuity or age and service and | ||
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(b) No annuity in excess of 60% of such highest | ||
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(c) No annuity in excess of 50% of such highest | ||
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(d) For widows of employees who died before January | ||
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(2) If when an employee's annuity is fixed, the amount accumulated to
his credit therefor, as of his age at such time, exceeds the amount necessary
for the annuity, all employee contributions for annuity purposes, after
the date on which the accumulated sums to the credit of such employee for
annuity purposes would first have provided such employee with such amount
of annuity as of his age at such date shall be refunded when he enters upon
annuity, with interest at the effective rate.
If the aforesaid annuity so fixed is not payable, but a larger amount is
payable as a minimum annuity, such refund shall be reduced by 5/12 of the
value of the difference in the annuity payable and the amount theretofore
fixed as the value of such difference may be at the date and as of the age
of the employee when his annuity begins; provided that if the employee was
credited with city contributions for any period for which he made no
contribution, or a contribution of less than 3 1/4% of salary, a further
reduction in the refund shall be made by the equivalent of what he would have
contributed during such period less his actual contributions, had the rate of
employee contributions in force on the effective date been in effect throughout
his entire service, prior to such effective date, with interest computed
on such amounts at the effective rate.
(3) If at the time the annuity for a wife is fixed, the employee's credit
for a widow's annuity exceeds that necessary to provide the maximum annuity
prescribed in this section, all employee contributions for such widow's
annuity for service after the date on which the accumulated sums to the
credit of the employee for such annuity purposes would first have provided
the wife of such employee with such amount of annuity if such annuity were
computed on the basis of the combined annuity mortality table with interest at
3% per annum with ages at date of determination taken as specified in this
article, shall be refunded to the employee, with interest at the effective
rate.
If the employee was credited with city contributions for widow's annuity
for any service prior to the effective date, any amount so refundable, shall
be reduced by the equivalent of what he would have contributed, had his
contributions for widow's annuity been made at the rate of 1% throughout
his entire service, prior to the effective date, with interest on such amounts
at the effective rate.
(4) If at the death of an employee prior to age 65, the credit for widow's
annuity, exceeds that necessary to provide the maximum annuity prescribed
in this section, all employee contributions for annuity purposes, for service
after the date on which the accumulated sums to the credit of such employee
for annuity purposes would first have provided such widow with such amount
of annuity if such annuity were computed on the basis of the combined annuity
mortality table with interest at 3% per annum with ages at date of
determination taken as specified in this article, shall be refunded to the
widow, with applicable interest.
If the employee was credited with city contributions for any period of
service during which he was not required to make a contribution, or made
a contribution of less than 3 1/4% of salary, the refund shall be reduced
by the equivalent of the contributions he would have made during such
period, less any amount he contributed, had the rate of employee
contributions in effect on the effective date been in force throughout his
entire service, prior to the effective date, with applicable interest;
provided, that if the employee was credited with city contributions for
widow's annuity for any service prior to the effective date, any amount so
refundable shall be further reduced by the equivalent of what he would have
contributed had he made contributions for widow's annuity at the rate of 1%
throughout his entire service, prior to such effective date, with applicable
interest.
(Source: P.A. 90-511, eff. 8-22-97.)
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(40 ILCS 5/11-150) (from Ch. 108 1/2, par. 11-150)
Sec. 11-150.
Mortality tables and interest rates.
(a) Any single life annuity fixed or granted to any employee who was a
participant on or before January 1, 1952, or any reversionary or single
life annuity, fixed for or granted to a wife or widow shall be computed, in
the case of the employee as of his attained age when the annuity is fixed
or granted, and in the case of the wife or widow, as of employee's age and
that of his wife or widow on the date her annuity is fixed or granted,
provided that if the wife or widow is older than 5 years the junior of her
husband her age shall be assumed 5 years less than his. The American
Experience Table of Mortality with interest at 4% per annum shall be used
for the computation of the annuity values in this paragraph.
(b) Until August 1, 1983, any single life annuity fixed or granted
to any employee who becomes
a participant for the first time after January 1, 1952, or any reversionary
or single life annuity, fixed or granted to the wife or widow shall be
computed, in the case of the employee as of his attained age when the
annuity is fixed or granted, and in the case of the wife or widow her age
shall be taken as 4 years younger than her actual age, or 4 years younger
than the age of her husband, whichever will produce the lower age, as of
the date the employee's or the wife's or widow's annuity is fixed or
granted. The Combined Annuity Mortality Table for Male Lives with interest
at 3 per cent per annum shall be used for the computation of the single
life employee annuity values in this paragraph. Such table shall also be
used for the computation of single life widow annuity values and for the
computation of the reversionary annuities specified in this paragraph with
the female life taken as 4 years less than the male life.
On or after August 1, 1983, any single life annuity fixed or granted to
any employee who becomes a participant for the first time after January 1,
1952, or any reversionary or single life annuity, fixed or granted to a
wife or widow shall be computed, in the case of an employee as of his
attained age when the annuity is fixed or granted, and in the case of the
wife or widow her age shall be taken as the lower of her actual age or the
age of her husband as of the date the employee's or wife's or widow's
annuity is fixed or granted. The Combined Annuity Mortality Table for Male
Lives with interest at 3% per annum shall be used for the computation of
the single life employee and widow annuity values in this paragraph. Such
table shall also be used for the computation of the reversionary annuity
values specified in this paragraph with the employee life taken as 4 years
less than the male life and the spouse life taken as the male life.
(c) All sums credited to any employee for annuity purposes when he
withdraws from service before age 55 shall be improved with interest at the
effective rate thereafter while he is not in service and has not entered
upon annuity until he attains age 65.
(d) The amount of widow's annuity or widow's prior service annuity which
shall be fixed for the wife of an employee who is alive shall be calculated
as a reversionary annuity derived from the total accumulated sum to the
employee's credit for widow's annuity and widow's prior service annuity on
the date the annuity is fixed.
(Source: P.A. 84-159.)
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(40 ILCS 5/11-151) (from Ch. 108 1/2, par. 11-151)
Sec. 11-151.
Computation of interest.
For the computation of interest upon any sum contributed by an
employee, it shall be assumed that the sum was contributed on the last
day of the calendar month in which such contribution was made.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-152) (from Ch. 108 1/2, par. 11-152)
Sec. 11-152.
Term annuities - How computed.
In any case in which an
employee's credit for an annuity for himself or his widow is insufficient - at
the time the annuity is fixed - to provide a life annuity of $100 a
month for the employee or his widow, a term annuity of equal actuarial value of
$100 a month shall be paid for such time as such payments can be made
from such credits for the respective annuities.
(Source: P.A. 79-1154.)
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(40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
Sec. 11-153. Child's annuity.
(a) A "Child's Annuity" shall be payable
monthly after the death of an employee parent to an unmarried child until
the child's attainment of age 18 or marriage, whichever event shall first
occur, under the following conditions, if the child was born or in esse
before the employee attained age 65, and before he withdrew from service:
(1) upon death in service from any cause;
(2) upon death of an employee who withdraws from | ||
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Payment shall be made as provided in Section 11-124.
(b) After July 24, 1967, an adopted child shall be entitled to the same
child's annuity benefits provided for natural children in this Article, if:
(1) (Blank); and
(2) the child was adopted before the employee | ||
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(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
Sec. 11-154.
Amount of child's annuity.
Beginning on the effective date
of this amendatory Act of 1997, the
amount of a child's annuity shall be $220 per month for each child
while
the spouse of the deceased employee parent survives, and $250 per
month for
each child when no such spouse survives, and shall be subject to the
following limitations:
(1) If the combined annuities for the widow and children of an employee
whose death resulted from injury incurred in the performance of duty, or
for the children where a widow does not exist, exceed 70% of the employee's
final monthly salary, the annuity for each child shall be reduced pro rata
so that the combined annuities for the family shall not exceed such
limitation;
(2) For the family of an employee whose death is the result of any cause
other than injury incurred in the performance of duty, in which the
combined annuities for the family exceed 60% of the employee's final
monthly salary, the annuity for each child shall be reduced pro rata so
that the combined annuities for the family shall not exceed such
limitation.
A child's annuity shall be paid to the parent who is providing for the
child, unless another person has been appointed the child's legal guardian.
The increase in child's annuity provided by this amendatory Act of
1997 shall apply to all child's annuities being paid on or after
the effective date of this amendatory Act of 1997. The limitations on the combined annuities for a
family
in parts (1) and (2) of this Section do not apply to
families of employees who died before the effective date of this amendatory Act
of 1997.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/11-155) (from Ch. 108 1/2, par. 11-155)
Sec. 11-155.
Duty disability benefit; Child's disability benefit.
An employee who becomes disabled on or after the
effective date while under age 65 and prior to January 1, 1979 or while
under age 70 after January 1, 1979 as the result of injury incurred on
or after the date he has been included under this Article in the
performance of an act or acts of duty, shall have a right to receive duty
disability benefit, during any period of such disability for which he
receives no salary. The benefit shall be 75% of salary at date of injury;
provided, that if disability, in any measure, has resulted from any mental
disorder, physical defect or disease which existed at the time such injury
was sustained the duty disability benefit shall be 50% of salary
at date of such injury.
If the employee's duty disability benefit continues for more than 5
years, the benefit shall be increased by 10% on January 1 of the sixth year.
Disablement because of commonly termed heart attacks, or strokes, or any
disablement falling within the broad field of coronary involvement or heart
disease, shall not be considered to be the result of an accidental injury
incurred in the performance of duty.
The employee shall also have a right to receive child's disability
benefit of $10 a month on account of each unmarried child (the issue of the
employee) less than age 18. Child's disability benefits shall not exceed
15% of the salary as aforesaid.
If application for duty disability benefit is not filed with the
Retirement Board within one year from the date the
disability applicant became disabled or last received salary, if salary was
continued during the period of disablement, no duty disability benefit
shall begin to accrue for any period of time more than one year prior
to the date on which the application for disability benefit is
received by the Board.
The first payment of duty disability or child's disability benefit shall
be made not later than one month after such benefit is granted and each
subsequent payment shall be made not later than one month after the last
preceding payment.
Duty disability benefit is payable during disability until the employee
attains age 65 if the disability commences prior to January 1, 1979. If
the disability commences after January 1, 1979 the benefit prescribed
herein shall be payable during disability until the employee attains age 65
for disability commencing prior to age 60, or for a period of 5 years or
until attainment of age 70, whichever occurs first, for disability
commencing at age 60 or older and after January 1, 1979, and child's
disability benefit shall be paid to the
employee parent of any unmarried child (the issue of the employee) less
than age 18, during such time until the child marries or attains age 18.
The employee shall thereafter receive such annuity as is otherwise provided
in this Article.
Any employee whose duty disability benefit was terminated after January
1, 1979 by reason of his attainment of age 65 and who continues disabled
after age 65 may elect before July 1, 1986 to have such benefits resumed
beginning at the time of such termination and continuing until termination
is required under this Section as amended by this amendatory Act of 1985.
The amount payable to any employee for such resumed benefit for any period
shall be reduced by the amount of any retirement annuity paid to such
employee under this Article for the same period of time or by any refund
paid in lieu of an annuity.
(Source: P.A. 86-1488.)
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(40 ILCS 5/11-156) (from Ch. 108 1/2, par. 11-156)
Sec. 11-156.
Ordinary disability benefit.
An employee, while under
age 65 and prior to January 1, 1979, or while under age 70 and after
January 1, 1979, who becomes disabled after the effective date as the result of
any cause other than injury incurred in the performance of any act or
acts of duty, shall be entitled to ordinary disability benefit during such
disability, after the first 30 days thereof.
The disability benefit prescribed herein shall cease when the first of
the following dates shall occur and the employee, if still disabled, shall
thereafter be entitled to such annuity as is otherwise provided in this
Article:
(a) the date disability ceases.
(b) the date the disabled employee attains age 65 for disability
commencing prior to January 1, 1979.
(c) the date the disabled employee attains 65 for disability commencing
prior to attainment of age 60 in the service and after January 1, 1979.
(d) the date the disabled employee attains the age of 70 for disability
commencing after attainment of age 60 in the service and after January 1, 1979.
(e) the date the payments of the benefit shall exceed in the aggregate,
throughout the employee's service, a period equal to 1/4 of the total service
rendered prior to the date of disability but in no event more than 5 years.
In computing such total the following periods shall be excluded:
(i) Any period during which the employee received | ||
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(ii) Any period of absence from duty, whether caused | ||
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The first payment shall be made not later than one month after the
benefit is granted and each subsequent payment shall be made not later
than one month after the last preceding payment.
Ordinary disability benefit shall be 50% of the employee's salary at
the date of disability.
For ordinary disability benefits paid before January 1, 2001, before any
payment, an amount equal to the sum ordinarily deducted from salary
for all annuity purposes for such period for which the ordinary disability
benefit is made shall be deducted from such payment and credited to the
employee as a deduction from salary for that period. The
sums so deducted shall be
regarded, for annuity and refund purposes, as an amount contributed by him.
For ordinary disability benefits paid on or after January 1, 2001, the fund
shall credit sums equal to the amounts ordinarily contributed by an employee
for annuity purposes for any period during which the employee receives ordinary
disability, and those sums shall be deemed for annuity purposes and purposes of
Section 11-169 as amounts contributed by the employee. These amounts credited
for annuity purposes shall not be credited for refund purposes.
Any employee whose ordinary disability benefit was terminated after
January 1, 1979 by reason of his attainment of age 65 and who continues
disabled after age 65 may elect before July 1, 1986 to have such benefits
resumed beginning at the time of such termination and continuing until
termination is required under this Section as amended by this amendatory Act
of 1985. The amount payable to any employee for such resumed benefit for
any period shall be reduced by the amount of any retirement annuity paid to
such employee under this Article for the same period of time or by refund
paid in lieu of annuity.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/11-157) (from Ch. 108 1/2, par. 11-157)
Sec. 11-157.
Proof of disability, duty and ordinary.
Proof of duty or ordinary disability shall be furnished to the board by
at least one licensed and practicing physician appointed by the board. The
board may require other evidence of disability. Each disabled employee who
receives duty or ordinary disability benefit shall be examined at least
once a year by one or more licensed and practicing physicians appointed by
the board. When the disability ceases, the board shall discontinue payment
of the benefit, and such employee shall be returned to active service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-158) (from Ch. 108 1/2, par. 11-158)
Sec. 11-158. When disability benefit not payable. (a) If an
employee receiving duty or ordinary disability benefit refuses to submit
to examination by a physician appointed by the board, or fails or refuses
to consent to and sign an authorization allowing the board to receive
copies of or examine the employee's medical and hospital records, or fails
or refuses to provide complete information regarding any other employment
for compensation he has received since he has become disabled, he shall have no
further right to receive the benefit.
(b) Disability benefit shall not be paid for any time for which the
employee receives any part of his salary or while employed by any public
body supported in whole or in part by taxation.
(c) Before any action is taken by the Board on an application for a duty disability benefit or a widow's compensation or supplemental benefit, the employee or widow shall file a claim with the employer to establish that the disability or death occurred while the employee was acting within the scope of and in the course of his or her duties. Any amounts provided to the employee or surviving spouse as temporary total disability payments, permanent total disability payments, a lump sum settlement award, or other payment under the Workers' Compensation Act or the Workers' Occupational Diseases Act shall be applied as an offset to the disability benefit paid by the Fund, whether duty or ordinary, or any widow compensation or supplemental benefit payable under this Article until a period of time has elapsed when the benefit payable equals the amount of such compensation, payment, or award. The duty disability benefit shall be offset at the rate of the amount of temporary total disability payments or permanent disability payments made under the Workers' Compensation Act or the Workers' Occupational Diseases Act. If such amounts are not readily determinable or if an employee has not received temporary total disability payments or permanent weekly or monthly payments for the entire period of disability up to the time of the compensation, payment, or award under the Workers' Compensation Act or the Workers' Occupational Diseases Act, the disability benefit paid by the Fund shall be offset by 66 2/3% of the employee's salary on the date of disablement. The offset shall not be greater than the amount of disability benefits due from the Fund. The offset shall be applied until a period of time has elapsed when the benefit payable equals the amount of such compensation, payment, or award. This offset shall not apply to the initial days of disability when workers' compensation would not ordinarily be payable. The amount of compensation or supplemental annuity payable to a widow shall be offset by any compensation, payment, or award until a period of time has elapsed when the benefit payable equals the amount of such compensation, payment, or award. If an employee who has been disabled has received ordinary disability from the Fund and also receives any compensation or payment for specific loss, disability, or death under the Workers' Compensation Act or the Workers' Occupational Diseases Act, then the ordinary disability benefit must be repaid to the Fund before any other benefit under this Article may be granted or paid. If no other benefit is applied for, then the ordinary disability is offset according to the provisions of this Section. The employee and the employer shall provide the Fund, on a timely basis, with the entry of the settlement contract lump sum petition and order settlement of any such lawsuit, including all details of the settlement.
(d) An employee who enters service after December 31, 1987, or an
employee who makes application for a disability benefit or applies for a
disability benefit for a recurrence of a previous disability, and who,
while in receipt of an ordinary or duty disability benefit, assumes any
employment for compensation, shall not be entitled to receive any amount of
such disability benefit which, when added to his compensation for such
employment during disability, plus any amount payable under the provisions
of the Workers' Compensation Act or Workers' Occupational Diseases Act,
would exceed the rate of salary on which his disability benefit is based.
(Source: P.A. 95-1036, eff. 2-17-09.)
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(40 ILCS 5/11-159) (from Ch. 108 1/2, par. 11-159)
Sec. 11-159. Annuity after withdrawal while disabled for employees who first became participants prior to January 1, 2011. (a) This Section applies to employees who first became participants prior to January 1, 2011. (b) An employee whose disability continues after the employee has received ordinary
disability benefits for the maximum period of time prescribed by this
Article and who withdraws before age 60 while still so disabled is
entitled to receive an annuity in such amount as can be provided from the
total sum accumulated to the employee's credit from employee contributions and employer
contributions, to be computed as of the employee's age on the date of withdrawal. If the minimum annuity under Section 11-134 applies and is greater than the annuity under this subsection (b), then the Section 11-134 annuity shall apply. Any annuity under this subsection (b) shall be subject to automatic annual increases under Section 11-134.1.
(c) The annuity to which the employee's spouse shall be entitled upon the employee's death shall
be fixed on the date of the employee's withdrawal. It shall be provided on a
reversionary annuity basis from the total sum accumulated to the employee's credit
for widow's annuity on the date of such withdrawal. If the minimum annuity under Section 11-145.1 applies and is greater than the annuity under this subsection (c), then the Section 11-145.1 annuity shall apply. Any widow's annuity shall not be subject to any automatic annual increases.
(d) Upon the death of any such employee while on annuity, if the employee's service
was at least 4 years after the date of the employee's original entry, and at least
2 years after the date of the employee's latest re-entry, the employee's unmarried
children under age 18 shall be entitled to an annuity as specified in this
Article for children of an employee who retires after age 55, subject to
prescribed limitations on total payments to a family of an employee.
(Source: P.A. 103-553, eff. 8-11-23.)
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(40 ILCS 5/11-159.1) Sec. 11-159.1. Annuity after withdrawal while disabled for employees who first became participants on or after January 1, 2011. (a) This Section applies to employees who first became participants on or after January 1, 2011. (b) An employee whose disability continues after the employee has received ordinary disability benefits for the maximum period of time prescribed by this Article and who withdraws before becoming eligible for a retirement annuity under subsection (c), (c-5), (d), or (d-5) of Section 1-160 while still so disabled is entitled to receive an annuity in such amount as can be provided from the total sum accumulated to the employee's credit from employee contributions and employer contributions, to be computed as of the employee's age on the date of withdrawal. The minimum annuity under Section 11-134 shall not apply, and any annuity under this subsection (b) shall not be subject to any automatic annual increases. (c) The annuity to which the employee's spouse shall be entitled upon the employee's death shall be fixed on the date of the employee's withdrawal. It shall be provided on a reversionary annuity basis from the total sum accumulated to the employee's credit for widow's annuity on the date of such withdrawal. The minimum annuity under Section 11-145.1 shall not apply and any widow's annuity under this subsection (c) shall not be subject to any automatic annual increases. (d) Upon the death of any such employee while on annuity, if the employee's service was at least 4 years after the date of the employee's original entry, and at least 2 years after the date of the employee's latest re-entry, the employee's unmarried children under age 18 shall be entitled to an annuity as specified in this Article for children of an employee who retires after age 55, subject to prescribed limitations on total payments to a family of an employee.
(Source: P.A. 103-553, eff. 8-11-23.) |
(40 ILCS 5/11-160) (from Ch. 108 1/2, par. 11-160)
Sec. 11-160.
Prior disability.
No disability benefit shall be granted or paid, under this Article, for
any disability incurred by an employee before the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
Sec. 11-160.1. Payments to city.
(a) For the purposes of this Section, "city annuitant" means a person
receiving an age and service annuity, a widow's annuity, a child's annuity, or
a minimum annuity under this Article as a direct result of previous employment
by the City of Chicago ("the city").
(b) The board shall pay to the city, on behalf of the board's city
annuitants who participate in any of the city's health care plans, the
following amounts:
(1) From July 1, 2003 through June 30, 2008, $85 per | ||
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(2) Beginning July 1, 2008 and until such time as the | ||
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The payments described in this subsection shall be paid from the tax levy
authorized under Section 11-169; such amounts shall be credited to the reserve
for group hospital care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be charged against
it.
(c) The city health care plans referred to in this Section and the board's
payments to the city under this Section are not and shall not be construed to
be pension or retirement benefits for the purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(Source: P.A. 98-43, eff. 6-28-13.)
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(40 ILCS 5/11-160.2)
Sec. 11-160.2. Payments to board of education for group health benefits.
(a) Should the Board of Education continue to sponsor a retiree health
plan, the board is authorized to pay to the Board of Education, on behalf of
each eligible annuitant who chooses to participate in the Board of Education's
retiree health benefit plan, the following amounts:
(1) From July 1, 2003 through June 30, 2008, $85 per | ||
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(2) Beginning July 1, 2008 and until such time as the | ||
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The payments described in this subsection shall be paid from the tax levy
authorized under Section 11-169; such amounts shall be credited to the reserve
for group hospital care and group medical and surgical plan benefits, and all
payments to the Board of Education under this subsection shall be charged
against it.
(b) The Board of Education health benefit plan referred to in this Section
and the board's payments to the Board of Education under this Section are
not and shall not be construed to be pension or retirement benefits for the
purposes of Section 5 of Article XIII of the Illinois Constitution of 1970.
(Source: P.A. 98-43, eff. 6-28-13.)
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(40 ILCS 5/11-161) (from Ch. 108 1/2, par. 11-161)
Sec. 11-161.
Re-entry into service.
(a) When an employee who has withdrawn from service reenters service
before age 65, any annuity previously granted and any annuity fixed for
his wife shall be cancelled. The employee shall be credited for annuity
purposes with sums sufficient to provide annuities equal to those
cancelled as of their ages on the date of re-entry; provided, the
maximum age of the wife for this purpose shall be as provided in Section
11-150 of this Article.
The sums so credited shall provide for annuities to be fixed and
granted in the future. Contributions by the employee
and by the city for
purposes of this Article shall be made, and when the proper time
arrives, as provided in this Article, new annuities based upon the total
sum accumulated to his credit for annuity purposes and the entire term
of service shall be fixed for the employee and his wife. If the
employee's wife is not his wife when he re-enters service, no part of
any credits for widow's annuity or widow's prior service annuity at the
time annuity for his wife was fixed shall be credited upon re-entry into
service, and no such sums shall thereafter be used to provide such
annuity.
(b) When an employee re-enters service after age 65, payments on
account of any annuity previously granted shall be suspended during the
time thereafter that he is in service, and when he again withdraws,
annuity payments shall be resumed. If the employee dies in service, his
widow shall receive the amount of annuity previously fixed for her.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-162) (from Ch. 108 1/2, par. 11-162)
Sec. 11-162.
Re-entry into service - Prior employee.
An employee who was not in the service of an employer or the
retirement board of any annuity and benefit fund which is on an
actuarial reserve basis on the effective date, who was in service prior
to that date, and who re-enters service after that date and before age
65, shall not be credited for prior service annuity or widow's prior
service annuity on account of service prior to the effective date. The
period of service, prior to the effective date, shall, however, be
included in computing service for age and service annuity and widow's
annuity. Such employee shall be a future entrant for the purposes of
this Article.
For any person employed by an employer prior to August 1, 1949, from
whose salary deductions were made for the purposes of this Article for
the first time after July 31, 1949, any service rendered prior to July
1, 1935, unless he was in service on the day before the effective date,
shall not, regardless of any other provisions of this Article, be
counted as service for the purposes of this Article.
Contributions by the employee to whom this section
applies, and city
contributions for age and service annuity and widow's annuity, shall be
made as herein provided.
Any person employed by an employer, or retirement board, in which
this Article was in force prior to August 1, 1949, who (1) was not a
participant in this fund on August 1, 1949, (2) attained age 65 or more
on or before July 1, 1950, and (3) fails to qualify as an employee by
July 1, 1950, shall not be credited for any annuity purposes under this
Article; nor shall any other person so employed, who attains age 65
before July 1, 1950, and before qualifying as an employee, be credited
for any annuity purposes under this Article. Such persons shall not be
considered employees.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-163)
(from Ch. 108 1/2, par. 11-163)
Sec. 11-163. Restoration of rights. An employee who has withdrawn as a
refund the amounts credited for annuity purposes, and who (i) re-enters
service of the employer and serves for periods comprising at least 90
days after the date of the last refund paid to him or (ii) has
completed at least 2 years of service under a participating system (as defined
in the Retirement Systems Reciprocal Act) other than this Fund after the date
of the last refund, shall have his annuity rights restored by making
application to the board in writing for the privilege of re-instating such
rights and by compliance with the following provisions:
(a) After that 90 day or 2 year period, whichever | ||
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(b) If payment is not made in a single sum, repayment | ||
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(c) If the employee withdraws from service or dies in | ||
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(d) If the employee withdraws from service or dies in | ||
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(e) If the employee repays the refund while | ||
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(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/11-164) (from Ch. 108 1/2, par. 11-164)
Sec. 11-164. Refunds - Withdrawal before age 55 or age 62 or with less than 10
years of service.
(1) An employee who first became a member before January 1, 2011, without regard to length of service, who withdraws
before age 55, and any employee with less than 10 years of service who
withdraws before age 60, shall be entitled to a refund of the total sum
accumulated to his credit as of date of withdrawal for age and service
annuity and widow's annuity from amounts contributed by him or by the
City in lieu of employee contributions during duty disability; provided
that such amounts contributed by the city after December 31, 1983 while
the employee is receiving duty disability benefits and amounts credited to
the employee for annuity purposes by the fund after December 31, 2000 while the
employee is receiving ordinary disability benefits shall not be credited
for refund purposes.
An employee who first becomes a member on or after January 1, 2011 who withdraws before age 62 without regard to length of service, or who withdraws with less than 10 years of service regardless of age, shall be entitled to a refund of the total sum accumulated to his credit as of date of withdrawal for age and service annuity and widow's annuity provided that such amounts contributed by the city while the employee is receiving duty disability benefits and amounts credited to the employee for annuity purposes by the fund while the employee is receiving ordinary disability benefits shall not be credited for refund purposes. The board may in its discretion withhold payment of refund for a
period not to exceed 6 months from the date of withdrawal. Interest at
the effective rate shall be paid on any such refund withheld during such
withheld period not to exceed 6 months.
(2) Upon receipt of the refund, the employee surrenders and forfeits
all rights to any annuity or other benefits, for himself and for any
other persons who might have benefited through him; provided that he may
have such period of service counted in computing the term of his service
for age and service annuity purposes only if he becomes an employee
before age 65.
(3) An employee who does not receive a refund shall have all amounts
to his credit for annuity purposes on the date of his withdrawal
improved by interest only until he becomes age 65, while out of service,
at the effective rate, for his benefit and the benefit of any person who
may have any right to annuity through him if he re-enters the service
and attains a right to annuity.
(4) Any such employee shall retain such right to refund of such
amounts when he shall apply for same, until he re-enters the service or
until the amount of annuity to which he shall have a right shall have
been fixed as provided in this Article. Thereafter, no such right shall
exist in the case of any such employee.
(Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/11-165) (from Ch. 108 1/2, par. 11-165)
Sec. 11-165.
Refund of widow's annuity deductions.
If a male employee is (1) unmarried when he attains age 65, or (2)
married at age 65, and subsequently becomes a widower while still in
service, or (3) unmarried upon withdrawal before age 65 and enters upon
annuity, the sum accumulated from employee contributions for widow's
annuity shall be refunded to him.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-166) (from Ch. 108 1/2, par. 11-166)
Sec. 11-166.
Refunds - When paid to beneficiaries, children or estate.
Whenever the total amount accumulated to the account of a deceased
employee from employee contributions
for annuity purposes have not been
paid to him, and in the case of a married male employee to the employee
and his widow, both together, in form of annuity before the death of the
last of such persons, a refund shall be paid as follows:
An amount equal to the excess of such amounts, over the amount paid
on any annuity or annuities, or refund, without interest upon either of
such amounts, shall be refunded to a beneficiary theretofore designated
by the employee in writing, signed by him before an officer authorized
to administer oaths, and filed with the board before the employee's
death.
If there is no designated beneficiary or the beneficiary does not
survive the employee, the amount shall be refunded to the employee's
children, in equal parts, with the children of a deceased child taking
the share of their parent. If there is no designated beneficiary or
children, the refund shall be paid to the administrator or executor of
the employee's estate.
If an administrator or executor of the estate has not been appointed
within 90 days from the date the refund became payable, the refund may
be applied in the discretion of the board toward the payment of the
employee's burial expenses. Any remaining balance shall be paid to the
heirs of the employee according to the law of descent and distribution
of this State but assuming for the purpose of such payment of refund and
determination of heirs that the deceased male employee left no widow of
him surviving in those cases where a widow eligible for widow's annuity
as his widow survived him and subsequently dies; provided, that if any
child or children of the employee are less than age 18, such part or all
of any such amount necessary to pay annuities to them shall not be
refunded as hereinbefore stated but shall be transferred to the child's
annuity reserve and used therein for the payment of such annuities.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
Sec. 11-167. Refunds in lieu of annuity. In lieu of an annuity, an
employee who withdraws, and whose annuity would amount to less than
$800 a month for life may elect to receive a refund of the
total sum accumulated to his credit from employee contributions for
annuity purposes.
The widow of any employee, eligible for annuity upon the death of her
husband, whose annuity would amount to less than $800 a month
for life, may, in lieu of a widow's annuity, elect to receive a refund of the
accumulated contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by any amounts
theretofore paid to him in the form of an annuity or refund out of such
accumulated contributions.
Accumulated contributions shall mean the amounts including interest
credited thereon contributed by the employee for age and service and
widow's annuity to the date of his withdrawal or death, whichever first
occurs, and including the accumulations from any amounts contributed for
him as salary deductions while receiving duty disability benefits; provided
that such amounts contributed by the city after December 31, 1983 while
the employee is receiving duty disability benefits and amounts credited to
the employee for annuity purposes by the fund after December 31, 2000 while the
employee is receiving ordinary disability benefits shall not be included.
The acceptance of such refund in lieu of widow's annuity, on the part of a
widow, shall not deprive a child or children of the right to receive a child's
annuity as provided for in Sections 11-153 and 11-154 of this Article, and
neither shall the payment of a child's annuity in the case of such refund to a
widow reduce the amount herein set forth as refundable to such widow electing a
refund in lieu of widow's annuity.
(Source: P.A. 92-599, eff. 6-28-02; 93-654, eff. 1-16-04.)
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(40 ILCS 5/11-168) (from Ch. 108 1/2, par. 11-168)
Sec. 11-168.
Refunds-Transfer of city contributions.
Whenever any amount is refunded, as provided in Sections 11-164 and
11-165, the amounts to the credit of the employee from contributions by
the city, shall be transferred to the prior service annuity reserve.
Thereafter any such remaining amounts shall become a credit to the
remaining amounts shall become a credit to the city to be used to reduce
the amount which the city would otherwise pay during a succeeding year.
Any amounts accumulated from contributions by the City for widow's
annuity for any male employee who becomes a widower after he attains age
65, who is paid a refund, shall remain in the annuity payment reserve.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
Sec. 11-169. Financing; tax levy.
(a) Except as provided in subsection (f) of this Section, the city
council of the city shall levy a tax annually upon all taxable property in the
city at the rate that will produce a sum which, when added to the amounts
deducted from the salaries of the employees or otherwise contributed by them
and the amounts deposited under subsection (f), will be sufficient for the
requirements of this Article. For the years prior to the year 1950 the tax
rate shall be as provided for under "The 1935 Act". Beginning with the year
1950 to and including the year 1969 such tax shall be not more than .036%
annually of the value, as equalized or assessed by the Department of Revenue,
of all taxable property within such city. Beginning with the year 1970 and
each year thereafter through levy year 2016, the city shall levy a tax annually at a rate on the dollar
of the value, as equalized or assessed by the Department of Revenue
of all taxable property within such city that will
produce, when extended, not to exceed an amount equal to the total
amount of contributions by the employees to the fund
made in the calendar year 2 years prior to the year for which the annual
applicable tax is levied, multiplied by 1.1 for the years 1970, 1971 and
1972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235 for the
year 1975; 1.280 for the year 1976; 1.325 for the year 1977; 1.370
for the years 1978 through 1998; and 1.000 for the year 1999
and for each year thereafter through levy year 2016. Beginning in levy year 2017, and in each year thereafter, the levy shall not exceed the amount of the city's total required contribution to the Fund for the next payment year, as determined under subsection (a-5). For the purposes of this Section, the payment year is the year immediately following the levy year.
The tax shall be levied and collected in like manner with the general
taxes of the city, and shall be exclusive of and in addition to the
amount of tax the city is now or may hereafter be authorized to levy for
general purposes under any laws which may limit the amount of tax which
the city may levy for general purposes. The county clerk of the county
in which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of taxes, shall
not consider the tax herein provided for as a part of the general tax
levy for city purposes, and shall not include the same within any
limitation of the per cent of the assessed valuation upon which taxes
are required to be extended for such city.
Revenues derived from such tax shall be paid to the city treasurer of
the city as collected and held by the city treasurer for the benefit of the fund.
If the payments on account of taxes are insufficient during any year
to meet the requirements of this Article, the city may issue tax
anticipation warrants against the current tax levy.
The city may continue to use other lawfully available funds in lieu of all or part of the levy, as provided under subsection (f) of this Section. (a-5)(1) Beginning in payment year 2018, the city's required annual contribution to the Fund for payment years 2018 through 2022 shall be: for 2018, $36,000,000; for 2019, $48,000,000; for 2020, $60,000,000; for 2021, $72,000,000; and for 2022, $84,000,000. (2) For payment years 2023 through 2058, the city's required annual contribution to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the city's portion of projected normal cost for that fiscal year, plus (ii) an amount determined on a level percentage of applicable employee payroll basis that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2058. (3) For payment years after 2058, the city's required annual contribution to the Fund shall be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund as of the end of the year. In making the determinations under paragraphs (2) and (3) of this subsection, the actuarial calculations shall be determined under the entry age normal actuarial cost method, and any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following the fiscal year. To the extent that the city's contribution for any of the payment years referenced in this subsection is made with property taxes, those property taxes shall be levied, collected, and paid to the Fund in a like manner with the general taxes of the city. (a-10) If the city fails to transmit to the Fund contributions required of it under this Article by December 31 of the year in which such contributions are due, the Fund may, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in payment year 2018, deduct and deposit into the Fund the certified amounts or a portion of those amounts from the following proportions of grants of State funds to the city: (1) in payment year 2018, one-third of the total | ||
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(2) in payment year 2019, two-thirds of the total | ||
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(3) in payment year 2020 and each payment year | ||
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The State Comptroller may not deduct from any grants of State funds to the city more than the amount of delinquent payments certified to the State Comptroller by the Fund. (b) On or before July 1, 2017, and each July 1 thereafter, the board shall certify to the
city council the annual amounts required under this Article, for which the tax herein
provided shall be levied for the following year. The board shall compute
the amounts necessary for the purposes of this fund to be credited to
the reserves established and maintained as herein provided, and shall
make an annual determination of the amount of the required city
contributions; and certify the results thereof to the city council.
(c) In respect to employees of the city who are transferred to the
employment of a park district by virtue of "Exchange of Functions Act of
1957" the corporate authorities of the park district shall annually levy
a tax upon all the taxable property in the park district at such rate
per cent of the value of such property, as equalized or assessed by the
Department of Revenue, as shall be sufficient, when
added to the amounts deducted from their salaries and
otherwise contributed by them, to provide the benefits to which they and
their dependents and beneficiaries are entitled under this Article. The
city shall not levy a tax hereunder in respect to such employees.
The tax so levied by the park district shall be in addition to and
exclusive of all other taxes authorized to be levied by the park
district for corporate, annuity fund, or other purposes. The county
clerk of the county in which the park district is located, in reducing
any tax levied under the provisions of any Act concerning the levy and
extension of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in any
limitation of the per cent of the assessed valuation upon which taxes
are required to be extended for the park district. The proceeds of the
tax levied by the park district, upon receipt by the district, shall be
immediately paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums to be contributed by the city and allocated for the
purposes of this Article, and any interest to be contributed by the city,
shall be taken from the revenue derived from the taxes authorized in this
Section, and no money of such city derived from any source other than
the levy and collection of those taxes or the sale of tax
anticipation warrants in accordance with the provisions of this Article shall
be used to provide revenue for this Article, except as expressly provided in
this Section.
If it is not possible for the city to make contributions for age and
service annuity and widow's annuity concurrently with the employee's
contributions made for such purposes, such city shall
make such contributions as soon as possible and practicable thereafter
with interest thereon at the effective rate to the time they shall be
made.
(d) With respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, subsequent to October 1, 1978, and in instances
where the board has elected to establish a manpower program reserve, the
board shall compute the amounts necessary to be credited to the manpower
program reserves established and maintained as herein provided, and
shall make a periodic determination of the amount of required
contributions from the City to the reserve to be reimbursed by the
federal government in accordance with rules and regulations established
by the Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the City Council. Any such
amounts shall become a credit to the City and will be used to reduce the
amount which the City would otherwise contribute during succeeding years
for all employees.
(e) In lieu of establishing a manpower program reserve with respect
to employees whose wages are funded as participants under the
Comprehensive Employment and Training Act of 1973, as authorized by
subsection (d), the board may elect to establish a special municipality
contribution rate for all such employees. If this option is elected,
the City shall contribute to the Fund from federal funds provided under
the Comprehensive Employment and Training Act program at the special
rate so established and such contributions shall become a credit to the
City and be used to reduce the amount which the City would otherwise
contribute during succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax required under this
Section in any year, the city may deposit of that year for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied under this Section
for that year, is not less than the amount of the city contributions for that
year as certified by the board to the city council. The deposit may be derived
from any source legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit shall satisfy
fully the requirements of this Section for that year to the extent of the
amounts so deposited. Amounts deposited under this subsection may be used by
the fund for any of the purposes for which the proceeds of the tax levied by
the city under this Section may be used, including the payment of any amount
that is otherwise required by this Article to be paid from the proceeds of that
tax.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/11-169.1)
Sec. 11-169.1. (Repealed).
(Source: P.A. 98-641, eff. 6-9-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
Sec. 11-170. Contributions for age and service annuities for present
employees, future entrants and re-entrants.
(a) Beginning on the effective date and prior to July 1, 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July 1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, 1972, 6%; and beginning
January 1, 1972, 6 1/2% of each payment of the salary of each present
employee, future entrant and re-entrant, except as provided in subsection (a-5) and (a-10), shall be contributed to the fund
as a deduction from salary for age and service annuity. (a-5) Except as provided in subsection (a-10), for an employee who made the election under item (i) of subsection (d-10) of Section 1-160: prior to the effective date of this amendatory Act of the 100th General Assembly, 6.5%; and beginning on the effective date of this amendatory Act of the 100th General Assembly and prior to January 1, 2018, 7.5%; and beginning January 1, 2018 and prior to January 1, 2019, 8.5%; and beginning January 1, 2019 and thereafter, employee
contributions for those employees who made the
election under item (i) of subsection (d-10) of Section 1-160
shall be the lesser of: (i) the total normal cost, calculated
using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first became members or participants on or after the effective date
of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or
(ii) the aggregate employee contribution consisting of 9.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174 of
this Article. For the one-year period beginning with
the first pay period in January of each year the date when the funded ratio
of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding
goal, and each subsequent one-year period thereafter for as long as the fund
maintains a funding ratio of 75% or more, employee
contributions for age and service annuity for those employees
who made the election under item (i) of subsection (d-10) of
Section 1-160 shall be 5.5% of each payment of salary. If the
funding ratio falls below 75%, then employee contributions for age and service annuity for those employees who made the
election under item (i) of subsection (d-10) shall revert to the lesser of: (A) the total normal cost, calculated
using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first became members or participants on or after the effective date
of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or
(B) the aggregate employee contribution consisting of 9.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and 11-174 of
this Article. If the fund once again is determined to
have reached a funding ratio of 75%, the 5.5% of
salary contribution for age and service annuity shall resume.
An employee who made the election under item (ii) of subsection
(d-10) of Section 1-160 shall continue to have the
contributions for age and service annuity determined under
subsection (a) of this Section. If contributions are reduced to less than the
aggregate employee contribution described in item (ii) or item (B) of this
subsection due to application of the normal cost criterion,
the employee contribution amount shall be
consistent for that fiscal year. The normal cost, for the purposes of this subsection (a-5) and subsection (a-10), shall be calculated by an independent enrolled actuary mutually agreed upon by the fund and the City. The fees and expenses of the independent actuary shall be the responsibility of the City. For purposes of this subsection (a-5), the fund and the City shall both be considered to be the clients of the actuary, and the actuary shall utilize participant data and actuarial standards to calculate the normal cost. The fund shall provide information that the actuary requests in order to calculate the applicable normal cost. (a-10) For each employee subject to subsection (c-5) of Section 1-160, 9.5% of each payment of salary shall be contributed to the fund as a deduction from salary for age and service annuity. Beginning January 1, 2018
and each year thereafter, employee contributions
for each employee subject to this subsection (a-10) shall be
the lesser of: (i) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first
become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or (ii) the aggregate
employee contribution consisting of 9.5% of each payment of
salary combined with the employee contributions provided for in
subsection (b) of Section 11-134.1 and Section 11-174 of this
Article. For the one-year period beginning with the first pay period in January of each year after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall be 5.5% of each payment of salary. If the funding ratio falls below 75%, then employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall revert to the lesser of: (A) the total normal cost, calculated using the entry age normal actuarial method, projected for the prior
fiscal year for the benefits and expenses of the plan of
benefits applicable to those members and participants who first
become members or participants on or after the effective date of this amendatory Act of the 100th General Assembly and to
those employees who made the election under item (i) of
subsection (d-10) of Section 1-160, but not less than 6.5% of
each payment of salary combined with the employee contributions
provided for in subsection (b) of Section 11-134.1 and Section
11-174 of this Article; or (B) the aggregate
employee contribution consisting of 9.5% of each payment of
salary combined with the employee contributions provided for in
subsection (b) of Section 11-134.1 and Section 11-174 of this
Article. If the fund once again is determined to have reached a funding ratio of 75%, the 5.5% of salary contribution for age and service annuity shall resume. If contributions are reduced to less than the
aggregate employee contribution described in item (ii) or item (B) of this
subsection (a-10) due to application of the normal cost
criterion, the employee contribution amount shall be consistent for that fiscal year. Such deductions
beginning on the effective date and prior to June 30, 1947, inclusive
shall be made for a future entrant while he is in service until he
attains age 65, and for a present employee while he is in service until
the amount so deducted from his salary with interest at the rate of 4%
per annum shall be equal to the sum which would have accumulated to his
credit from sums deducted from his salary if deductions at the rate
herein stated had been made during his entire service until he attained
age 65 with interest at 4% per annum for the period subsequent to his
attainment of age 65. Such deductions beginning July 1, 1947 shall be
made and continued for employees while in the service.
(b) Concurrently with each employee contribution, the city shall contribute beginning on the effective date and prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 6, 2017, 6% of each payment of such salary until the employee attains age 65. Beginning July 6, 2017, the Fund shall credit sums equal to 6% of each payment of such salary for annuity purposes. The amounts credited for annuity purposes shall not be credited for refund purposes.
(c) Each employee contribution made prior to the date age and
service annuity for an employee is fixed and each corresponding city
contribution shall be allocated to the account of and credited to the
employee for whose benefit it is made.
(d) Notwithstanding Section 1-103.1, the changes to this Section made by this amendatory Act of the 100th General Assembly apply regardless of whether the employee was in active service on or after the effective date of this amendatory Act.(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.) |
(40 ILCS 5/11-170.1)
(from Ch. 108 1/2, par. 11-170.1)
Sec. 11-170.1. Pickup of employee contributions.
(a) The employer may pick up the employee contributions required
by Sections 11-156, 11-170, 11-174 and 11-175.1 for salary earned after
December 31, 1981. If employee contributions are not picked up, the amount
that would have been picked up under this amendatory Act of 1980 shall
continue to be deducted from salary. If contributions are picked up they shall
be treated as employer contributions in determining tax treatment under the
United States Internal Revenue Code; however, the employer shall continue to
withhold Federal and state income taxes based upon these contributions until
the Internal Revenue Service or the Federal courts rule that pursuant to
Section 414(h) of the United States Internal Revenue Code, these contributions
shall not be included as gross income of the employee until such time as they
are distributed or made available. The employer shall pay these employee
contributions from the same source
of funds which is used in paying salary to the employee. The employer
may pick up these contributions by a reduction in the cash salary of the
employee or by an offset against a future salary increase or by a combination
of a reduction in salary and offset against a future salary increase. If
employee contributions are picked up they shall be treated for all purposes
of this Article 11, including Section 11-169, in the same manner and to
the same extent as employee contributions made prior to the date picked up.
(b) Subject to the requirements of federal law and the rules of the Board,
the Fund may allow the employee to elect to have the employer pick up the
optional contributions that the employee has elected to pay to the Fund, and
the contributions so picked up shall be treated as employer contributions for
the purpose of determining federal tax treatment. The employer shall pick up
the contributions by a reduction in the cash salary of the employee and shall
pay contributions from the same source of funds that is used to pay earnings of
the employee. The election to have the contributions picked up is irrevocable,
and the optional contributions may not thereafter be prepaid, by direct payment
or otherwise.
If the provision authorizing the optional contribution requires payment by a
stated date (rather than the date of withdrawal or retirement), the requirement
will be deemed to have been satisfied if (i) on or before the stated date the
employee executes a valid irrevocable election to have the contributions picked
up under this subsection, and (ii) the picked-up contributions are in fact paid
to the Fund as provided in the election.
If employee contributions are picked up under this subsection, they shall be
treated for all purposes of this Article 11, including Section 11-169, in the
same manner and to the same extent as optional employee contributions made
prior to the date picked up.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/11-171) (from Ch. 108 1/2, par. 11-171)
Sec. 11-171.
Additional contributions and credits-All employees.
Any employee in service on July 1, 1947, may elect to make an additional
contribution while in service which shall not exceed 7/13 of the sum
accumulated for age and service annuity plus interest on July 1, 1947, or
at age 65, if he attained such age prior thereto. The time and manner of
making such additional contributions shall be prescribed by the board.
Concurrently with each such additional contribution, the city shall
contribute 1 and 4/10 times the additional contribution.
These contributions shall be improved at interest at the effective rate,
in like manner as other employee and city contributions; provided, that the
employee, while in service, may request a refund of all or any part of such
contributions, without interest, or shall have them refunded to him,
without interest when he retires on annuity or to his widow, if and to the
extent they do not serve to increase the annuity otherwise payable to him
or to his widow.
By such refund the employee or his widow surrenders and forfeits all
rights which might otherwise have accrued by virtue of any amount so
refunded, including related city contributions.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-172) (from Ch. 108 1/2, par. 11-172)
Sec. 11-172.
Contributions by employee after annuity is fixed.
Any contributions by an employee, after the date when his age and
service annuity is fixed, shall not increase the amount of such annuity.
Such contributions shall be applied toward the extra cost of a minimum
annuity where payable over the amount of age and service annuity. The
accumulated sum arising therefrom shall be refunded when the employee
withdraws from service if he be not entitled to such minimum annuity, or
shall be applied toward the extra cost of such minimum annuity if he is
eligible therefor, over the age and service annuity to the extent of such
extra cost as provided in Section 11-149. The balance, if any, shall be
refunded.
In the event the employee is not entitled to a minimum annuity, or upon
death of the employee while in the service after his attainment of age 65
with less than 20 years of service credit at date of death, the accumulated
sum arising from employee contributions after his annuity was fixed at age
65 shall be refunded to his widow.
(Source: P.A. 76-1509.)
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(40 ILCS 5/11-173) (from Ch. 108 1/2, par. 11-173)
Sec. 11-173.
Interest credits-All employees.
Amounts credited for age and service and prior service annuity shall be
improved by interest at the effective rate from the end of the month in
which the contributions were due during the time thereafter an employee is
in service until his annuity is fixed if a present employee or until
attainment of age 65 if a future entrant or a re-entrant.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-174) (from Ch. 108 1/2, par. 11-174)
Sec. 11-174.
Contributions for widow's annuity for widows of present employees,
future entrants and re-entrants.
(a) Beginning on the effective date, 1%, and from and after January 1,
1966, 1 1/2%, of each payment of salary, shall be contributed by each male
employee for widow's annuity as a deduction from salary. Deductions shall
be continued during service until the employee attains age 65.
(b) Concurrently with each employee contribution, the city shall
contribute beginning on the effective date and prior to July 1, 1947, 1
3/4%; and beginning July 1, 1947, 2% of salary.
(c) Each employee contribution made prior to the date when the amount of
widow's annuity is fixed and each corresponding city contribution shall be
allocated to the account of and credited to the employee for whose benefit
it is made.
(Source: Laws 1965, p. 2292.)
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(40 ILCS 5/11-175) (from Ch. 108 1/2, par. 11-175)
Sec. 11-175.
Widow's annuity interest credits-All employees.
Amounts allocated to the account of and credited for widow's and widow's
prior service annuity shall be improved by interest at the effective rate
from the end of the month in which such contributions were due during the
time thereafter an employee is in service until he attains age 65.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-175.1) (from Ch. 108 1/2, par. 11-175.1)
Sec. 11-175.1.
Contributions by female employees.
(a) Effective as of October 1, 1974, each female employee shall
contribute at the same rates as a
male employee for widow's annuity or
other benefits, to the end that like credits may be established and
maintained for both male and female employees for all purposes of this
Article with respect to annuities, benefits, contribution rates, refunds
and other provisions of this Article.
(b) Any female employee shall have the option of making
contributions for the aforesaid purposes covering the period prior to
October 1, 1974, and receiving pension credits therefor, including the
concurrent credits from city contributions. Such contributions shall
include interest at 4% per annum from the dates such contributions
should have been made from the beginning of their service to the dates
of payment to the end that equal credits may be provided for all
employees under this Article.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-176) (from Ch. 108 1/2, par. 11-176)
Sec. 11-176.
Contributions by city for duty disability benefit.
In lieu of all amounts ordinarily contributed by an employee and by
the city for age and service annuity, and widow's annuity the city shall
contribute sums equal to such amounts for any period during which the
employee receives a duty disability benefit under this Article, or a
temporary total disability benefit under the Workers' Compensation Act if
the disability results from a condition commonly termed heart attack or
stroke or any other condition falling within the broad field of coronary
involvement or heart disease, to be credited to the disabled employee for
annuity purposes as though he were in active discharge of his duties during
any such period of disability.
(Source: P.A. 86-1488.)
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(40 ILCS 5/11-177) (from Ch. 108 1/2, par. 11-177)
Sec. 11-177.
Contributions by city for ordinary disability benefit.
The city shall contribute all amounts ordinarily contributed by it for
annuity purposes for any employee receiving ordinary disability benefit as
though he were in active discharge of his duties during such period of
disability.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-178)
(from Ch. 108 1/2, par. 11-178)
Sec. 11-178. Contributions by city for prior service annuities and other
benefits.
The city shall make contributions to provide prior service and widow's
prior service annuities, and other annuities and benefits, as follows:
1. To credit to the city contribution reserve such | ||
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2. To meet such part of any minimum annuity as shall | ||
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3. To provide a sufficient balance in the investment | ||
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4. An amount equal to the difference between (1) the | ||
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Provided that if in any year such total sums together with all other
sums required during such year for the other purposes of the fund, are in
excess of the total amount contributed by the city during such year, the
sums required for purposes other than those stated in this Section shall
first be provided for. The balance shall then be applied for the purposes
stated in this Section.
All such contributions shall be credited to the prior service annuity
reserve. When the balance of this reserve equals its liabilities (including
in addition to all other liabilities, the present values of all annuities,
present or prospective, according to the applicable mortality tables and
rates of interest, but excluding any liabilities arising under Sections
11-133.3 and 11-133.4), the city shall cease to contribute the sum stated in
this Section.
If annexation of territory and the employment by the city of any person
employed as a city laborer in any such territory at the time of annexation,
after the city has ceased to contribute as herein provided, results in
additional liabilities for prior service annuity and widow's prior service
annuity for any such employee, contributions by the city for such purposes
shall be resumed.
Notwithstanding any provision in this Section to the contrary, the city
shall not make a contribution for credit established by an employee under
subsection (b) of Section 11-133.3.
(Source: P.A. 93-654, eff. 1-16-04.)
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(40 ILCS 5/11-179) (from Ch. 108 1/2, par. 11-179)
Sec. 11-179.
Contribution by city for administration costs.
The city shall contribute from revenue derived from taxes herein
authorized, the amount necessary to defray costs of administration of the
fund. Beginning July 1, 1987, the board shall estimate and approve a budget
for the entire cost of administration of the fund required each year to be
contributed by the city by its regular January meeting for the current
fiscal year.
(Source: P.A. 85-964.)
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(40 ILCS 5/11-179.1) (This Section was added by P.A. 98-641, which has been held unconstitutional) Sec. 11-179.1. Use of contributions for health care subsidies. Except as may be required pursuant to Sections 11-160.1 and 11-160.2 of this Code, the Fund shall not use any contribution received by the Fund under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-641, eff. 6-9-14.) |
(40 ILCS 5/11-180) (from Ch. 108 1/2, par. 11-180)
Sec. 11-180.
Estimates of sums required for certain annuities and benefits.
The board shall estimate the amounts required each year to pay for all
annuities and benefits and administrative expenses. The amounts shall be
paid into the fund annually by the city from the prescribed tax levy.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-181)
(from Ch. 108 1/2, par. 11-181)
Sec. 11-181. Board created. A board of 8 members shall constitute
the board of trustees authorized to carry out the provisions of this
Article. The board shall be known as the Retirement Board of the Laborers'
and Retirement Board Employees' Annuity and Benefit Fund of the city.
The board shall consist of 5 persons appointed and 2 employees and one
annuitant elected in the manner hereinafter prescribed.
The appointed members of the board shall be appointed as follows:
One member shall be appointed by the comptroller of the city, who
may be the comptroller or anyone chosen by the comptroller from among employees of the city who is
versed in the affairs of the comptroller's office. One member shall
be appointed by the City Treasurer of the city, who may be the City Treasurer or
a person chosen from among employees of the city who is versed in the affairs
of the City Treasurer's office; the City Treasurer, with the prior approval of the board, may also appoint a designee from among employees of the city who is versed in the affairs of the City Treasurer's office to act in the absence of the City Treasurer on all matters pertaining to administering the provisions of this Article. One member shall be an employee of the city
appointed by the president of the local labor organization representing a
majority of the employees participating in the Fund. Two members shall
be appointed by the civil service commission or the Department
of Personnel of the city from among employees of the
city who are versed in the affairs of the civil service commission's office or
the Department of Personnel.
The member appointed by the comptroller shall hold office for a term
ending on December 1st of the first year following the year of appointment.
The member appointed by the City Treasurer shall hold office for a term
ending on December 1st of the second year following the year of appointment.
The member appointed by the civil service commission shall hold office for a
term ending on the first day in the month of December of the third year
following the year of appointment. The additional member appointed by the
civil service commission under this amendatory Act of 1998 shall hold office
for an initial term ending on December 1, 2000, and the member appointed by the
labor organization president shall hold office for an initial term ending on
December 1, 2001. Thereafter each appointive member shall be appointed by
the officer or body that appointed his predecessor, for a term of 3 years.
The 2 employee members of the board shall be elected as follows:
Within 30 days from and after the appointive members have been appointed
and have qualified, the appointive members shall arrange for and hold an
election.
One employee shall be elected for a term ending on December 1st of the
first year next following the effective date; one for a term ending on
December 1st of the following year.
An employee member who takes advantage of the early retirement incentives
provided under this amendatory Act of the 93rd General Assembly may continue as
a member until the end of his or her term.
The initial annuitant member shall be appointed by the other members of
the board for an initial term ending on December 1, 1999.
The annuitant member elected in 1999 shall be deemed to have been
elected for a 3-year term ending on December 1, 2002.
Thereafter, the annuitant member shall be elected for a 3-year term ending
on December 1st of the third year following the election.
(Source: P.A. 102-995, eff. 5-27-22.)
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(40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
Sec. 11-182.
Board elections; qualification; oath.
(a) In each year, the board shall conduct a regular election, under
rules adopted by it, at least 30 days prior to the expiration of the term of
the employee member whose term next expires, for the election of a successor
for a term of 3 years. Each employee member and his or her successor
shall be an employee who holds a position by certification and appointment as a
result of competitive civil service examination as distinguished from temporary
appointment, or so holds a position which is not exempt from the classified
service or the personnel ordinance of a city that has adopted a career
service ordinance, for a period of not less than 5 years prior to date of
election. At any such election, all persons who are employees at
the time such election is held shall have a right to vote. The ballot
shall be of secret character.
(b) The board shall conduct a regular
election, under rules adopted by it, at least 30 days prior to the expiration
of the term of the annuitant member, for the election of a successor for a
term of 3 years. Each annuitant member and his or her successor
shall be a former employee receiving a retirement (age and service or prior
service) annuity from the Fund. At any such election, all persons who are
receiving a retirement (age and service or prior service) annuity from the
Fund at the time the election is held have a right to vote. The ballot shall
be of secret character.
(c) Any appointive or elective member of the board shall hold office
until his or her successor is elected and qualified.
Any person elected or appointed as a member of the board shall
qualify for the office by taking an oath of office to be administered by the
city clerk or any person designated by the city clerk. A copy
thereof shall be kept in the office of the city clerk.
Any appointment shall be in writing and the written instrument shall be
filed with the oath.
(Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/11-183) (from Ch. 108 1/2, par. 11-183)
Sec. 11-183.
Board vacancy.
A vacancy in the membership of the board shall
be filled as follows:
If the vacancy is that of an appointive member, the person or body who
appointed the member shall appoint a person to serve for the
unexpired term. If the vacancy is that of an elective member,
the remaining members of the board shall appoint a successor, who shall
be an employee or annuitant (as the case may be) who is qualified to hold the
position, to serve during the remainder of the unexpired term.
Any appointive or elective member who leaves the service of the city,
other than the annuitant member, shall automatically cease to be a member
of the board. If the annuitant member ceases to be an annuitant of the Fund,
he or she shall cease to be a member of the board and the position shall be
deemed to have become vacant.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/11-184) (from Ch. 108 1/2, par. 11-184)
Sec. 11-184.
Board officers.
The board shall elect annually at its regular December meeting from
among its members, by a majority vote of the members voting upon the
question, a president, vice-president and a secretary who shall serve,
respectively, until a successor is elected. The secretary shall keep a
complete record of the proceedings of all board meetings and perform such
other duties as the board directs.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-185) (from Ch. 108 1/2, par. 11-185)
Sec. 11-185.
Board meetings.
The board shall hold regular meetings in each month and special meetings
as it deems necessary. A majority of the members shall constitute a quorum
for the transaction of business at any meeting, but no annuity or benefit
shall be granted or payments made by the fund unless ordered by a vote of a
majority of the board members as shown by roll call entered upon the
official record of the meeting.
All meetings of the board shall be open to the public.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-186) (from Ch. 108 1/2, par. 11-186)
Sec. 11-186.
Board powers and duties.
The board shall have the powers and duties stated in Sections 11-187 to
11-198, inclusive, in addition to such other powers and duties provided in
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-187) (from Ch. 108 1/2, par. 11-187)
Sec. 11-187.
To supervise collections.
To see that all amounts specified in this Article to be applied to the
fund, from any source, are collected and applied.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-188) (from Ch. 108 1/2, par. 11-188)
Sec. 11-188.
To notify of deductions.
To notify the city comptroller and the board of education of the city
and any such retirement board concerned of the deductions
to be made from the salaries of employees.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-189) (from Ch. 108 1/2, par. 11-189)
Sec. 11-189.
To accept gifts.
To accept by gift, grant, bequest or otherwise any money or property of
any kind and use the same for the purposes of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-190) (from Ch. 108 1/2, par. 11-190)
Sec. 11-190.
To invest the reserves.
To invest the reserves of the fund in
accordance with Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and
1-115 of this Act. Investments made in accordance with Section 1-113 shall be
deemed to be prudent.
The retirement board may sell any security held by it at any time it deems it
desirable.
The board may enter into any agreements and execute any documents that it
determines to be necessary to complete any investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its own
name or in the name of a nominee created for the express purpose of
registration of securities by a savings and loan association or national or
State bank or trust company authorized to conduct a trust business in the State
of Illinois.
Investments shall be carried at cost or at book value in accordance with
accounting procedures approved by the board. No adjustments shall be made in
investment carrying values for ordinary current market price fluctuations, but
reserves may be provided to account for possible losses or unrealized gains, as
determined by the board.
The book value of investments held by the fund in commingled investment
accounts shall be the cost of its units of participation in those commingled
accounts as recorded on the books of the board.
The board of trustees of any fund established under this Article may
not transfer its investment authority, nor transfer the assets of the fund,
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the board resolution authorizing that transfer
is submitted for approval to the contributors and retirees of the fund at
elections held not less than 30 days after the adoption of the
resolution by the board and the resolution is approved by a
majority of the votes cast on the question in both the contributors election
and the retirees election. The election procedures and qualifications
governing the election of trustees shall govern the submission of resolutions
for approval under this paragraph, insofar as they may be made applicable.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/11-190.1) (from Ch. 108 1/2, par. 11-190.1)
Sec. 11-190.1.
Loan of securities.
The Board may lend securities
owned by the Fund to a
borrower upon such written terms and conditions as may be mutually agreed.
Such agreement shall provide that during the period of such loan the Fund
shall retain the right to receive, or collect from the borrower, all dividends,
interest rights, or any distributions to which the Fund would have otherwise
been entitled. The borrower shall deposit with the Fund, as collateral
for such loan, cash, U.S. Government securities, or letters of credit
equal to the market value of the securities at the time
the loan is made, and shall increase the amount of collateral if and when
the Fund shall request an additional amount because of subsequent increased
market value of the securities.
The period for which the securities may be loaned shall not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 86-1488.)
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(40 ILCS 5/11-191) (from Ch. 108 1/2, par. 11-191)
Sec. 11-191.
To have an audit.
To have an audit of the accounts of the fund made at least once each
year by certified public accountants.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-192) (from Ch. 108 1/2, par. 11-192)
Sec. 11-192.
To authorize payments.
To authorize or suspend the payment of any annuity or benefit in
accordance with this Article. The board shall have exclusive original
jurisdiction in all matters relating to or affecting the fund, including,
in addition to all other matters, all claims for annuities, pensions,
benefits or refunds.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-193) (from Ch. 108 1/2, par. 11-193)
Sec. 11-193.
To determine service credits.
To require each employee to file a statement concerning service rendered
the employer and the retirement board, prior to the effective date. The
board shall make a determination of the length of such service and
establish, from any available information, the period of service rendered
prior to the effective date. Such determination shall be conclusive unless
the board reconsiders and changes its determination.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-194) (from Ch. 108 1/2, par. 11-194)
Sec. 11-194.
To issue certificate of prior service.
To issue a certificate showing the entire period of service rendered by
a present employee prior to the effective date and the amounts to his
credit, for prior service and widow's prior service annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-195) (from Ch. 108 1/2, par. 11-195)
Sec. 11-195.
To submit an annual report.
To submit a report in July of each year to the city council of the city,
as of the close of business on December 31st of the preceding year. The
report shall contain a detailed statement of the affairs of the fund, its
income and expenditures, and assets and liabilities, and the status of the
several reserves. The city council shall have the power to require the
board to submit such report.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196) Sec. 11-196. To subpoena witnesses and compel the production of records. To issue subpoenas to compel the attendance of witnesses to testify before it and to compel the production of documents and records upon any matter concerning the Fund, including, but not limited to, in conjunction with: (1) a disability claim; (2) an administrative review proceeding; (3) an attempt to obtain information to assist in the | ||
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(4) obtaining any and all personal identifying | ||
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(5) the determination of the death of a benefit | ||
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(6) a felony forfeiture investigation. The fees of witnesses for attendance and travel shall be the same as the fees of witnesses before the circuit courts of this State and shall be paid by the party seeking the subpoena. The Board may apply to any circuit court in the State for an order requiring compliance with a subpoena issued under this Section. Subpoenas issued under this Section shall be subject to applicable provisions of the Code of Civil Procedure. The president or other members of the Board may administer oaths to witnesses.(Source: P.A. 103-424, eff. 8-4-23; 103-552, eff. 8-11-23.) |
(40 ILCS 5/11-197) (from Ch. 108 1/2, par. 11-197)
Sec. 11-197.
To appoint employees.
To appoint such actuarial, medical,
legal, clerical or other employees as are necessary and fix their
compensation. The board shall develop procedures for obtaining, by contract
or employment, any necessary professional assistance including investment
advisors and managers, auditors, actuaries, and medical and legal
professionals, for any vacancies which may arise after December 31, 1987.
(Source: P.A. 85-964.)
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(40 ILCS 5/11-197.7) Sec. 11-197.7. Payment of annuity other than direct. The board, at the written direction and request of any annuitant, may, solely as an accommodation to such annuitant, pay the annuity due him or her to a bank, savings and loan association, or any other financial institution insured by an agency of the federal government, for deposit to his or her account, or to a bank or trust company for deposit in a trust established by him or her for his benefit with such bank, savings and loan association, or trust company, and such annuitant may withdraw such direction at any time. An annuitant who directs the board to pay the annuity due him or her to a financial institution shall hold the board and the fund harmless from any claim or loss related to any error as to whether the financial institution is or continues to be federally insured.
(Source: P.A. 100-23, eff. 7-6-17; 100-1166, eff. 1-4-19.) |
(40 ILCS 5/11-198) (from Ch. 108 1/2, par. 11-198)
Sec. 11-198.
To make rules.
To make rules and regulations necessary for the administration of the
fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-199) (from Ch. 108 1/2, par. 11-199)
Sec. 11-199.
Moneys to be held on deposit.
To make the payments authorized by this Article, the board may keep and
hold uninvested a sum not in excess of the amounts required to make all
annuity payments which become due in the following 90 days. Such sum or any
part thereof shall be kept on deposit only in banks or savings and loan
associations authorized to do business under the
laws of this State. The amount
which may be deposited in any bank shall not exceed 25% of its paid up
capital and surplus.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public agencies",
approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
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(40 ILCS 5/11-200) (from Ch. 108 1/2, par. 11-200)
Sec. 11-200.
Accounting.
An adequate system of accounts and records shall
be established to give effect to the requirements of this Article, and
shall be maintained in accordance with generally accepted accounting
principles. The reserves designated in Sections 11-201 to 11-210,
inclusive, shall be maintained. At the end of each year and at any other
time when necessary the amounts in such reserves shall be improved by their
proper interest accretions.
(Source: P.A. 85-964.)
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(40 ILCS 5/11-201) (from Ch. 108 1/2, par. 11-201)
Sec. 11-201.
Expense reserve.
Amounts contributed by the city to defray the cost of administration of
the fund shall be credited to this reserve. Expenses of administration
shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-202) (from Ch. 108 1/2, par. 11-202)
Sec. 11-202.
City contribution reserve.
Amounts contributed by the
city for age and service annuity, widow's annuity and supplemental
annuity (except those contributed in lieu of deductions from the salary
of an employee who receives duty disability benefit), and all amounts
transferred to this reserve from the investment and interest reserve,
shall be credited to this reserve.
An individual account shall be kept in this reserve for each employee
and each widow for which the city shall contribute for supplemental
annuity to which city contributions shall be credited.
When the annuity for an employee or his widow is fixed, and when
supplemental annuity for a widow first becomes payable, the amount in
this reserve for such annuity shall be transferred to the annuity
payment reserve.
If the credit in this reserve of any employee who withdraws from
service before he attains age 65 is in excess of that required for his
age and service annuity, or in excess of that required for widow's
annuity (either or both), such amounts shall be retained in this reserve
and improved by interest at the effective rate until the employee
becomes age 65, or applies for annuity, or dies, whichever occurs first.
Any such amounts shall then be used to reduce city contributions.
With respect to employees whose wages are funded as participants
under CETA, the board may elect to establish a separate manpower program
reserve or account for funds made available by the federal government
towards the employer's contribution. The manpower program reserve will
be administered as is the City contribution reserve, except that where
at variance it will be administered in accordance with the rules and
regulations established by the Secretary of the United States Department
of Labor or his designee.
At the time that employees previously funded as participants under
CETA lose their participant status and obtain unsubsidized employment
with the employer, unsubsidized employment with another employer
provided that benefits are portable, or obtain vesting status, as
defined by the Secretary of Labor or his designee, a transfer of funds
equivalent to the amount of contributions made for such employees will
be made out of the manpower program reserve. For prior CETA participants
who continue as employees in public service which is covered by a
participating retirement system, the sums will be credited to the
regular City contribution reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-203) (from Ch. 108 1/2, par. 11-203)
Sec. 11-203.
Employees' contribution reserve.
Amounts deducted from employee's salaries for age and service annuity
and widow's annuity, or otherwise contributed by employees, amounts
contributed by the city for such annuities for an employee receiving
duty disability benefit, and transfers to this reserve from the
investment and interest reserve, shall be credited to this reserve.
An individual account shall be kept in this reserve for each employee
to which such salary deductions and contributions shall be credited.
When the annuity for any employee or his widow is fixed or granted,
the amount in this reserve for such annuities shall be transferred to
the annuity payment reserve.
There shall be charged to this reserve amounts refunded, except
refunds under Section 11-204.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-204) (from Ch. 108 1/2, par. 11-204)
Sec. 11-204.
Annuity payment reserve.
Amounts transferred from the city contribution reserve and the
employees' contribution reserve for annuities which have been fixed,
amounts deducted from an employee's salary after the age and service
annuity has been fixed, and amounts transferred to this reserve from the
investment and interest reserve, shall be credited to this reserve.
Age and service annuities and widow's annuities shall be charged to
this reserve. Amounts refunded in accordance with Sections 11-148,
11-166, 11-172 and 11-149(2) of this Article shall be charged to this
reserve.
When an employee whose annuity was fixed or granted, re-enters
service before age 65, an amount determined under the provisions
governing re-entry into service shall be charged to this reserve and
transferred to the city contribution reserve and the salary deduction
reserve, respectively, for age and service annuity. Such amount shall be
divided in said reserves in the same proportion as that in which the
previous transfer from such reserves to this reserve was made.
If the wife of the employee, when he re-enters service, is the same
as that when the widow's annuity was fixed, an amount to be determined
under the provisions governing re-entry into service shall be
transferred from this reserve and credited for widow's annuity in the
city contribution reserve and the employees' contribution reserve,
respectively. Such credit shall be in the same proportion as that in
which the previous transfer was made.
If at the end of any year the credit balance of the annuity payment
reserve exceeds the liabilities chargeable thereto by more than 15% of
such liabilities, the excess shall be transferred to the investment and
interest reserve, expense reserve, ordinary disabling reserve, prior
service annuity reserve, and city contribution reserve, in the order
named, to remove any deficiency existing in any such reserves.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-205) (from Ch. 108 1/2, par. 11-205)
Sec. 11-205.
Prior service annuity reserve.
Amounts contributed by the city for prior service annuity, widow's prior
service annuity and minimum annuities, shall be credited to this reserve.
Prior service and widow's prior service annuities payable under this
Article and that part of any minimum annuity which is in excess of the age
and service and prior service annuity shall be charged to this reserve.
If the balance of the investment and interest reserve is not sufficient
to permit a transfer from that reserve to the annuity payment reserve to
make the credit balance of the annuity payment reserve equal to the
liabilities chargeable thereto (including the present values of all
annuities entered upon or fixed and of all annuities not entered upon),
amounts necessary for such purpose shall be transferred from this reserve
to the investment and interest reserve.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-206) (from Ch. 108 1/2, par. 11-206)
Sec. 11-206.
Child's annuity reserve.
Amounts contributed by the city for child's annuity shall be credited to
this reserve and such annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-207) (from Ch. 108 1/2, par. 11-207)
Sec. 11-207.
Duty disability reserve.
Amounts contributed by the city for duty disability benefits and child's
disability benefits, and amounts contributed by the city for compensation
annuity shall be credited to this reserve. Such benefits and annuities
shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-208) (from Ch. 108 1/2, par. 11-208)
Sec. 11-208.
Ordinary disability reserve.
Amounts contributed by the city for ordinary disability benefit shall be
credited to this reserve and such benefits shall be charged to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-209) (from Ch. 108 1/2, par. 11-209)
Sec. 11-209.
Gift reserve.
Money or property received by the board for any purpose under other
laws, or as gifts, grants, or bequests, or in any manner other than
provided in any section of this Article shall be credited to this reserve
and used for such purposes of the fund as are approved by the board. The
balance in this reserve shall be improved by interest at 4% per annum.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-210) (from Ch. 108 1/2, par. 11-210)
Sec. 11-210.
Investment and interest reserve.
(1) Gains from investments and interest earnings shall be credited to
this reserve. Losses from investments shall be charged to it. From this
reserve shall be transferred amounts due in interest upon balances existing
in other reserves of this fund.
(2) Amounts necessary according to the American Experience Table of
Mortality and interest at the rate of 4% per annum or the Combined Annuity
Mortality Table and interest at the rate of 3% per annum, as to those
assets or liabilities to which either table may be applicable in accordance
with the provisions of this Article, to make the annuity payment reserve
equal to its liabilities (including the present values of all annuities
entered upon, or fixed and not entered upon, chargeable to such reserve)
shall be transferred to the annuity payment reserve at least once each
year.
(3) That portion of the annual investment earnings on the fund's
invested assets exclusive of gains or losses on sales or exchanges of
assets during the year on the fund's invested assets, as specified in
Section 11-134.3 of this Article, shall be transferred from the investment
and interest reserve to the Supplementary Payment Reserve set forth in said
Section 11-134.3.
Any balance in the investment and interest reserve shall be either
charged or credited to the Prior Service Annuity Reserve depending on
whether a deficiency or surplus exists in said investment and interest
reserve.
(Source: P.A. 76-1510.)
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(40 ILCS 5/11-211) (from Ch. 108 1/2, par. 11-211)
Sec. 11-211.
Deficiencies in reserves.
If the balance in the expense reserve, the prior service annuity
reserve, the child's annuity reserve, the duty disability reserve or the
ordinary disability reserve, or either one of these is not sufficient to
provide for expenses, annuities, or benefits chargeable thereto, the
deficiency shall be removed by a transfer from the following reserves in
the order stated: City contribution reserve; prior service annuity
reserve; employees' contribution reserve; annuity payment reserve. When
an excess exists in the said reserves to which a transfer was made, the
excess shall be transferred from any of such reserves to the reserves
from which a transfer had been made until the full sum previously
transferred is restored. Interest of 4% per annum upon such transfers
and retransfers shall be credited to the investment and interest
reserve.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-212) (from Ch. 108 1/2, par. 11-212)
Sec. 11-212.
Treasurer of fund.
The city treasurer shall be ex-officio the treasurer and custodian of
the fund and shall furnish to the board a bond of such amount as the board
designates, which shall indemnify the board against any loss which may
result from any action or failure to act by him or any of his agents. Fees
and charges incidental to the procuring of such bond shall be paid by the
board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-213) (from Ch. 108 1/2, par. 11-213)
Sec. 11-213.
Attorney.
The chief legal officer of the city shall be the legal advisor of and
attorney for the board. If it shall deem such action necessary or
advisable, the board may, in its discretion, employ another attorney for
special services.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-214) (from Ch. 108 1/2, par. 11-214)
Sec. 11-214.
Computation of term of service, annual salary and salary
deductions.
For the purpose of this Article, term of service, annual salary and
salary deductions shall be
computed as provided in Sections 11-215 to
11- 218, inclusive.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
Sec. 11-215. Computation of service.
(a) In computing the term of service of an employee prior to the effective
date, the entire period beginning on the date he was first appointed and ending
on the day before the effective date, except any intervening period during
which he was separated by withdrawal from service, shall be counted for all
purposes of this Article. Only the first year of each period of lay-off or
leave of absence without pay, continuing or extending for a period in excess
of one year, shall be counted as such service.
(b) For a person employed by an employer for whom this Article was in effect
prior to August 1, 1949, from whose salary deductions are first made under
this Article after July 31, 1949, any period of service rendered prior to
the effective date, unless he was in service on the day before the
effective date, shall not be counted as service.
(c) In computing the term of service of an employee subsequent to the day
before the effective date, the following periods of time shall be counted
as periods of service for annuity purposes:
(1) the time during which he performed the duties of | ||
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(2) leaves of absence with whole or part pay, and | ||
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(3) leaves of absence without pay that begin before | ||
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(A) the participant continues to make employee | ||
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(B) the participant, or the labor organization | ||
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(i) after January 1, 1989 and prior to levy | ||
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(ii) beginning in levy year 2017 and until | ||
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(iii) on and after the effective date of | ||
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(C) the participant does not receive credit in | ||
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(4) any period of disability for which he received | ||
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(d) For a person employed by an employer, or the retirement board, in which
"The 1935 Act" was in effect prior to August 1, 1949, from whose salary
deductions are first made under "The 1935 Act" or this Article after July
31, 1949, any period of service rendered subsequent to the effective date
and prior to August 1, 1949, shall not be counted as a period of service
under this Article, except such period for which he made payment, as
provided in Section 11-221 of this Article, in which case such period
shall be counted as a period of service for all annuity purposes hereunder.
(e) In computing the term of service of an employee subsequent to the day
before the effective date for ordinary disability benefit purposes, the
following periods of time shall be counted as periods of service:
(1) any period during which he performed the duties | ||
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(2) leaves of absence with whole or part pay;
(3) any period of disability for which he received | ||
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However, any period of service rendered by an employee contributor prior to
the date he became a contributor to the fund shall not be counted as a
period of service for ordinary disability purposes, unless the person
made payment for the period as provided in Section 11-221 of this Article, in
which case the period shall be counted as a period of service for ordinary
disability purposes for periods of disability on or after the effective date of
this amendatory Act of 1997.
Overtime or extra service shall not be included in computing any term of
service. Not more than 1 year of service shall be allowed for service
rendered during any calendar year.
For the purposes of this Section, the phrase "any pension plan established by the local labor organization" means any pension plan in which a participant may receive credit as a result of his or her membership in the local labor organization, including, but not limited to, the local labor organization itself and its affiliates at the local, intrastate, State, multi-state, national, or international level. The definition of this phrase is a declaration of existing law and shall not be construed as a new enactment. (Source: P.A. 102-742, eff. 5-6-22.)
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(40 ILCS 5/11-215.1) (from Ch. 108 1/2, par. 11-215.1)
Sec. 11-215.1.
Concurrent Employment.
If a participant in this fund is employed concurrently by an employer
whose employees are participants in a public retirement system created
under other Articles of the Illinois Pension Code as well as by the
employer, as defined in this Article, any earnings from such other employer
during such period of concurrent employment shall, in no event, be
considered for annuity or benefit purposes under the provisions of this
Article.
(Source: P.A. 76-1509.)
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(40 ILCS 5/11-216) (from Ch. 108 1/2, par. 11-216)
Sec. 11-216.
Basis of service credit.
(a) In computing the period of service of any employee for the minimum
annuities, the following provisions shall govern:
(1) all periods prior to the effective date shall be | ||
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(2) Service subsequent to the day before the | ||
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(b) Service during 6 or more months in any year shall constitute a year
of service, and service of less than 6 months and at least 1 month in any
year shall constitute a half year of service. However, the right to have
certain periods of time considered as service as stated in paragraph 2 of
Section 11-164 shall not apply for minimum annuity purposes.
(c) For all other annuity purposes of this Article, the following
schedule shall govern the computation of a year of service of an employee
whose salary or wages is on the basis stated, and any fractional part of a
year of service shall be determined according to said schedule:
Annual or Monthly Basis: Service during 4 months in any one calendar
year;
Weekly Basis: Service during any 17 weeks of any 1 calendar year, and
service during any week shall constitute a week of service;
Daily Basis: Service during 100 days in any 1 calendar year, and service
during any day shall constitute a day of service;
Hourly Basis: Service during 700 hours in any 1 calendar year and
service during any hour shall constitute an hour of service.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/11-217) (from Ch. 108 1/2, par. 11-217)
Sec. 11-217. Basis of annual salary. For the purpose of this Article,
the annual salary of an employee whose salary or wage is
appropriated, fixed, or arranged in the annual appropriation ordinance upon
other than an annual basis shall be determined as follows:
(a) If the employee is paid on a monthly basis, the annual salary
is 12 times the monthly salary. If
the employee is paid on a weekly basis, the annual salary is 52 times
the weekly salary.
"Monthly salary" means the amount of compensation or salary
appropriated and payable for a normal and regular month's work in the
employee's position in the service. "Weekly salary" means
the amount of compensation or salary appropriated and payable
for a normal and regular week's work in the employee's position in the
service. If the work is on a regularly scheduled part time basis, then "monthly salary" and "weekly salary" refer,
respectively, to the part time monthly or weekly salary.
If the appropriation for the position is for a shorter period than 12
months a year, or 52 weeks a year if on a weekly basis, or the employee is
in a class, grade, or category in which the employee normally works for fewer than 12
months or 52 weeks a year, then the basis shall be adjusted
downward to the extent that the appropriated or
customary work period is less than the normal 12 months or 52
weeks of service in a year.
Compensation for overtime, at regular or overtime rates, that is paid in
addition to the appropriated regular and normal monthly or weekly salary
shall not be considered.
(b) If the employee is paid on a daily basis, the annual salary
is 260 times the daily wage. If the
employee is paid on an hourly basis, the annual salary is 2080 times
the hourly wage.
The norm is based on a 12-month per year, 5-day work week of 8 hours per
day and 40 hours per week, with consideration given only to time
compensated for at the straight time rate of compensation or wage. The
norm shall be increased (subject to a maximum of 300 days or 2400 hours per
year) or decreased for an employee
to the extent that the normal and established work period, at the
straight time compensation or wage for the position held in the
class, grade, or category in which the employee is assigned, is
for a greater or lesser number of months, weeks, days, or hours than
the period on which the established norm is based.
"Daily wage" and "hourly wage" mean,
respectively, the normal, regular, or basic straight time rate of
compensation or wage appropriated and payable for a normal and regular
day's work, or hour's work, in the employee's position in the service.
Any time worked in excess of the norm (or the increased or decreased
norm, whichever is applicable) that is compensated for at overtime,
premium, or other than regular or basic straight time rates shall not be
considered as time worked, and the compensation for that work shall not
be considered as salary or wage. Such time and compensation shall in
every case and for all purposes be considered overtime and shall be
excluded for all purposes under this Article. However, the
straight time portion of compensation or wage, for time worked on holidays
that fall within an employee's established norm, shall be
included for all purposes under this Article.
(c) For minimum annuity purposes under Section 11-134, where a
salary rate change occurs during the year, it shall be considered that the
annual salary for that year is (1) the annual
equivalent of the monthly, weekly, daily, or hourly salary or
wage rate that was applicable for the greater number of months,
weeks, days, or hours (whichever is applicable) in
the year under consideration, or (2) the annual equivalent
of the average salary or wage rate in effect for the employee during the
year, whichever is greater. The average salary or wage rate shall be
calculated by multiplying each salary or wage rate in effect for the
employee during the year by the number of months, weeks, days, or hours
(whichever is applicable) during which that rate was in effect, and
dividing the sum of the resulting products by the total number of months,
weeks, days, or hours (whichever is applicable) worked by the employee
during the year.
(d) The changes to subsection (c) made by this amendatory Act of 1997
apply to persons withdrawing from service on or after July 1, 1990 and for each
such person are intended to be retroactive to the date upon which the affected
annuity began. The Fund shall recompute the affected annuity and shall pay the
additional amount due for the period before the increase resulting from this
amendatory Act in a lump sum, without interest.
(e) This Article shall not be construed to authorize a salary paid by an entity other than an employer, as defined in Section 11-107, to be used to calculate the highest average annual salary of a participant. This subsection (e) is a declaration of existing law and shall not be construed as a new enactment. (Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/11-218) (from Ch. 108 1/2, par. 11-218)
Sec. 11-218.
Basis of salary deduction.
The total of salary deductions for employee contributions for annuity
purposes for any 1 calendar year shall not exceed that produced by the
application of the proper salary deduction rates to
the highest annual
salary considered for annuity purposes for such year.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-219) (from Ch. 108 1/2, par. 11-219)
Sec. 11-219.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted or hereafter amended, is hereby adopted and made a part of
this Article; provided that where there is a direct conflict in the
provisions of such Act and the specific provisions of this Article, such
latter provisions shall prevail.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-220) (from Ch. 108 1/2, par. 11-220)
Sec. 11-220.
Employees in territory annexed.
Whenever territory is annexed to the city, any person then employed as a
laborer by such annexed territory, who shall be employed by the city on the
date of annexation shall automatically come under this Article, and any
service rendered for annexed territory shall be considered, for the purpose
of this Article, as service rendered to the city.
Such laborer shall be treated, as of the date such annexation comes into
effect, as a present employee of the city on the effective date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-221) (from Ch. 108 1/2, par. 11-221)
Sec. 11-221.
Employees under Act.
(a) Any contributor becoming employed on or after the effective date
(except a participant in any other annuity, retirement or pension fund
in operation in such city) shall be subject to the provisions of this
Article. Any such contributor shall continue as a contributor to this
fund, in the event that he shall be employed by an employer in any
capacity, other than as a member of the police department, or as a
member of the fire department or as a public school teacher.
(b) Beginning August 1, 1949, any contributor shall have the right
to contribute for service rendered an employer or retirement board after
July 1, 1935, by virtue of appointment to a position which did not
include him under the provisions of "The 1935 Act". Such contributions
shall be the amounts he would have contributed for annuity purposes had
deductions from his salary been made for the purposes of the fund in
accordance with the provisions of "The 1935 Act" relating to future
entrants and present employees during the period such service was
rendered.
Periods of service for the aforesaid employee shall include service
in the armed forces of the United States if he left the employment of an
employer to enter the armed forces and returned to the employ of the
employer within 90 days after his discharge from such armed forces, and
if such employer has not made such payment on his behalf. Those periods
for which he has received and retains credit in some other annuity or
pension fund in operation in such city for the benefit of employees of
an employer shall not be included. Upon making such payments such
employee shall be credited with concurrent city contributions at the
rates in effect for contributors during the period of time such service
was rendered. Such payments and concurrent city contributions shall be
made with interest at the effective rate and shall together with all
other amounts contributed by or for such employee for all annuity
purposes, be considered in computing the annuity or annuities to which
such employee or his widow shall have a right. Any such period of
service for which payment is made by such employee shall be counted as a
period of service for annuity purposes under this Article.
Until the effective date of this amendatory Act of 1991,
in order to be credited for a minimum annuity, all such payments by a
contributor must be made in full while such contributor is still in the
service; if payment is not made in full while such contributor is
in service, any payments made shall be refunded to him when he withdraws
from the service or to his widow in the event of his death or if no
widow in accordance with the other refund provisions of this Article.
Such employee may elect to have such partial payments together with the
concurrent city contributions and interest, credited and applied for age
and service and widow's annuity, for himself and his wife, on the
assumption that the payments made shall apply to his earliest service.
In the event of his death while in the service, his widow may elect to
have such payments and related city contributions and interest, credited
for widow's annuity, to the extent that they do not increase her annuity
above that which she could have received if such amounts were included,
and an annuity were fixed for her on the assumption that her deceased
husband had continued in service at the rate of his final salary until
he became 65 years of age.
Beginning on the effective date of this amendatory Act of 1991, an
employee who is still in service may elect to establish credit under this
Section for only a
fraction of the service that he or she is eligible to establish under this
Section. In such cases, the credit established shall be deemed to relate
to the earliest service for which credit may be established. In no event
shall such credit be granted until the corresponding employee contributions
have been paid.
Beginning on the effective date of this amendatory Act of 1997, any
employee who is in service, or within 90 days after withdrawing from service,
or who is an active contributor to a participating system
as defined in the Retirement Systems Reciprocal Act, may make payments and
establish credit under this Section.
(c) Any employee, who shall become a participant in any other
annuity, retirement or pension fund now or hereafter in operation in
such city for the benefit of employees of an employer, shall have the
right, notwithstanding other provisions of this Article relating to
participation in other funds, to elect to receive a refund or an annuity
from this fund in the same manner as he would if he had then resigned
from his position in the service and had not become a participant in any
such other fund. No credit shall be allowed for any period of service as
a participant in this fund for which he shall receive credit in such
other fund. No annuity payments shall be paid to such participant during
the time he holds a position in the service which entitles him to
participation in such other fund.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/11-221.1) (from Ch. 108 1/2, par. 11-221.1)
Sec. 11-221.1.
Right of employees to contribute for certain other service.
Any employee in the service, after having made contributions covering a period
of 10 or more years to the annuity and benefit fund herein provided
for, may elect to pay for and receive credit for all annuity purposes for
service theretofore rendered by the employee to the Chicago Transit
Authority created by the Metropolitan Transit Authority Act; provided that if the employee
has more than 10 years of such service, only the last 10 years of such service shall be credited. Such service credit may be
paid for and granted on the same basis and conditions as are applicable in
the case of employees who make payment for past service under the provisions of
Section 11-221, but on the assumption
that the employee's salary throughout all of his or her
service with the Authority was at the rate of the employee's salary at the date of his or her entrance into the service as an
employee. In no event, however, shall such service be credited if the employee
has not forfeited and relinquished pension credit for service
covering such period under any pension or retirement plan applicable to the
Authority and instituted and maintained by the Authority
for the benefit of its employees.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/11-221.2) (from Ch. 108 1/2, par. 11-221.2)
Sec. 11-221.2.
Establishment and restoration of service credit.
(a) Beginning on the effective date of this amendatory Act of 1991, an
employee who is still in service and is eligible to establish optional
service credit under this Article for any period during which he was not an
active participant in the Fund need not establish credit for the entire
period for which he is eligible, but may instead elect to establish credit
for only a fraction of that period. In such cases, the credit established
shall be deemed to relate to the earliest period for which that type of
credit may be established. However, in no event shall any such credit be
granted until the employee contributions required for that credit, if any,
have been paid.
(b) Notwithstanding Section 11-163 or any other provision of this
Article, beginning on the effective date of this amendatory Act of 1991, an
employee who has returned to service and is required (or authorized) to
restore service credit that was surrendered upon payment of a refund need
not restore such credit in full, but may instead elect to restore only a
fraction of the surrendered service credit, or none of it. If only some of
the surrendered credit is to be restored, the credit shall be restored in
the order in which it was earned, and the board shall determine the amount
that must be repaid by the employee to the Fund in order to restore the
credit, based on the corresponding fraction of the refund, plus interest as
required by the other provisions of this Article. In no event shall any
such credit be restored until the payment required for that credit has been
paid, and in no event shall any benefit be granted based on surrendered
credit that has not been restored.
(Source: P.A. 86-1488.)
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(40 ILCS 5/11-221.3)
Sec. 11-221.3.
Payments and rollovers.
(a) The Board may adopt rules prescribing the manner of repaying refunds
and purchasing any other credits permitted under this Article. The rules may
prescribe the manner of calculating interest when payments or repayments
are made in installments.
(b) Rollover contributions from other retirement plans qualified under the
Internal Revenue Code of 1986 may be used to purchase any optional credit or
repay any refund permitted under this Article.
(Source: P.A. 90-31, eff. 6-27-97.)
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(40 ILCS 5/11-222) (from Ch. 108 1/2, par. 11-222)
Sec. 11-222.
Certain park district employees.
The "Exchange of Functions Act of 1957", to the extent that it applies
to the fund, is incorporated into and made a part of this Article by
express reference. Employees of a city who are members of the fund and who
are transferred to the employment of a park district pursuant to the
aforesaid Act shall remain members of the fund, and their rights, credits
and equities shall remain unimpaired by such transfer of employment.
After such transfer of employment, the city shall assume no further
financial responsibility or obligation for such employees under this
Article, but such financial responsibility and obligation shall become the
duty of the park district by which they are employed. Wherever, as to such
employees, reference is made in this Article to the exercise of a function,
power, responsibility or duty by the city, such reference shall apply,
effective January 1, 1959, to the governing board of the park district by
which such persons are employed.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
Sec. 11-223.
Annuities, etc., exempt.
(a) All annuities, refunds, pensions, and disability benefits
granted under this Article shall be exempt from attachment or
garnishment process and shall not be seized, taken, subjected to,
detained, or levied upon by virtue of any judgment, or any process or
proceeding whatsoever issued out of or by any court in this State, for
the payment and satisfaction in whole or in part of any debt, damage,
claim, demand, or judgment against any annuitant, participant, refund
applicant, or other beneficiary hereunder.
No annuitant, refund applicant, or other beneficiary may
transfer or assign his annuity, refund, or
disability benefit or any part thereof by way of mortgage or otherwise,
except as provided in Section 11-223.1, and except in the case of refunds,
when a participant has pledged by assignment, power of attorney, or otherwise,
as security for a loan from a legally operating credit union making loans
only to participants in certain public employee pension funds described
in the Illinois Pension Code, all or part of any refund which may become
payable to him in the event of his separation from service.
The board in its discretion may, however, pay to the wife or to the
unmarried child under 18 years of age of any annuitant, refund
applicant, or disability beneficiary, such an amount out of her
husband's annuity refund, or disability benefit as any court may order,
or such an amount as the board may consider necessary for the support of
his wife or children or both in the event of his disappearance or
unexplained absence or of his failure to support such wife or children.
(b) The board may retain out of any future annuity, refund, or
disability benefit payments such amount or amounts as it may require
for the repayment of any moneys paid to any annuitant, pensioner, refund
applicant, or disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and release the board
and the fund from any liability for any moneys so withheld.
(c) Whenever an annuity or disability benefit is payable to a minor or
to a person certified by a medical doctor to be under legal
disability, the board, in its discretion and when it is in the best
interest of the person concerned, may waive guardianship or conservatorship
proceedings and pay the annuity or benefit to the person providing or caring
for the minor or person under legal disability.
In the event that a person certified by a medical doctor to be under legal
disability (i) has no spouse, blood relative, or other person providing or
caring for him or her, (ii) has no guardian of his or her estate, and (iii) is
confined to a Medicare approved, State certified nursing home or to a publicly
owned and operated nursing home, hospital, or mental institution, the Board
may pay any benefit due that person to the nursing home, hospital, or mental
institution, to be used for the sole benefit of the person under legal
disability.
Payment in accordance with this subsection to a person, nursing
home, hospital, or mental institution for the benefit of a minor or person
under legal disability shall be an absolute discharge of the Fund's liability
with respect to the amount so paid. Any person, nursing home, hospital, or
mental institution accepting payment under this subsection shall notify the
Fund of the death or any other relevant change in the status of the minor or
person under legal disability.
(d) Whenever an annuitant, applicant for refund or disability
beneficiary disappears and his whereabouts are unknown, and it cannot be
ascertained that he is alive, there shall be paid to his wife or
children or both such amount as will not be in excess of the amount
payable to them in the event such annuitant, applicant for refund or
disability beneficiary had died on the date of disappearance. If he
returns, or upon satisfactory proof of his being alive, the amount
theretofore paid to such beneficiaries shall be charged against any
moneys payable to him under this Article as though such payment to such
beneficiaries had been an allowance to them out of the moneys payable to
the employee as an annuitant, applicant for refund or disability
beneficiary.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/11-223.1) (from Ch. 108 1/2, par. 11-223.1)
Sec. 11-223.1. Assignment for health, hospital, and medical insurance. The board may provide, by regulation, that any annuitant or pensioner
may assign his annuity or disability benefit, or any part thereof, for the
purpose of premium payment for a membership for the annuitant, and his or
her spouse and children, in a hospital care plan or
medical surgical plan, provided, however, that the board may, in its
discretion, terminate the right of assignment. Any such hospital or medical
insurance plan may include provision for the beneficiaries thereof who rely
on treatment by spiritual means alone through prayer for healing in
accordance with the tenets and practice of a well-recognized religious
denomination.
Upon the adoption of a regulation permitting such assignment, the board
shall establish and administer a plan for the maintenance of the insurance
plan membership by the annuitant or pensioner.
(Source: P.A. 100-23, eff. 7-6-17; 100-863, eff. 8-14-18.)
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(40 ILCS 5/11-223.2) (from Ch. 108 1/2, par. 11-223.2)
Sec. 11-223.2.
Notification of assignment.
The annuitant or pensioner shall notify the board in writing of the
assignment of his annuity or disability benefit for payment of health,
hospital or medical insurance premiums. Such notification of assignment is
authorization for the board to make insurance premium payments for the
benefit of the annuitant or pensioner out of his annuity or disability
benefit.
(Source: Laws 1965, p. 2290.)
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(40 ILCS 5/11-223.3) (from Ch. 108 1/2, par. 11-223.3)
Sec. 11-223.3.
Termination of assignment.
Any notification of assignment and authorization to make insurance
premium payments shall cease;
(a) upon written notice to the board of termination of the assignment by
the annuitant or pensioner, or
(b) upon expiration of the time during which such assignment and payment
of premiums is authorized.
(Source: Laws 1965, p. 2290.)
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(40 ILCS 5/11-223.4) (from Ch. 108 1/2, par. 11-223.4)
Sec. 11-223.4.
Notification forms.
The board shall prescribe a form or forms to be used for the
notification of assignment required by Section 11-223.2. The board shall
also prescribe a form or forms to be used for the notification of
termination of assignment and authorization to make insurance premium
payments as provided in Section 11-223.3.
(Source: Laws 1965, p. 2290.)
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(40 ILCS 5/11-224) (from Ch. 108 1/2, par. 11-224)
Sec. 11-224.
Board members-No compensation.
No member of the board shall receive any moneys from the fund as salary
for service performed as a member or as an employee of the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-225) (from Ch. 108 1/2, par. 11-225)
Sec. 11-225.
No commissions on investments.
No member of the board, and no person officially connected with the
board, as employee, legal advisor, custodian of the fund or otherwise,
shall have any right to receive any commission or other remuneration on
account of any investment made by the board, nor shall any such person act
as the agent of any other person concerning any such investment.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-226) (from Ch. 108 1/2, par. 11-226)
Sec. 11-226.
Duties of municipal officers.
The proper officers of the city and of the board of education and of
the retirement board without cost to the fund, shall:
(a) deduct all sums required to be deducted from the
salaries of
employees, and pay such sums to the board in such manner as the board
shall specify;
(b) furnish the board on the first day of each month, information
regarding the employment of any employee, and of all discharges,
resignations and suspensions from the service, deaths, and changes in
salary which have occurred during the preceding month, with the dates
thereof;
(c) procure for the board in such form as the board specifies, all
information on an employee as to the service, age, salary, residence,
marital status and data concerning their dependents, including
information relative to the service rendered by the employee prior to
the effective date;
(d) keep such records concerning employees as the board may
reasonably require and shall specify.
(Source: P.A. 81-1536.)
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(40 ILCS 5/11-227) (from Ch. 108 1/2, par. 11-227)
Sec. 11-227.
Age of employee.
For any employee who has filed an application for appointment to the
service of an employer or retirement board, the age stated therein shall be
conclusive evidence against the employee of his age for the purposes of
this Article, but the board may decide any claim for any annuity, benefit,
refund or payment according to the age of the employee as shown by other
evidence satisfactory to it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-228) (from Ch. 108 1/2, par. 11-228)
Sec. 11-228.
Office facilities.
Suitable rooms for office and meetings of the board shall be assigned by
the mayor of the city.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-229) (from Ch. 108 1/2, par. 11-229)
Sec. 11-229.
Compliance with article.
All officers, officials, and employees of the city or of such board of
education or of any retirement board concerned shall perform any and all
acts required to carry out the intent and purposes of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/11-230) (from Ch. 108 1/2, par. 11-230)
Sec. 11-230. Felony conviction. None of the benefits provided in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under Public Act 100-334, shall not impair any contract or vested right acquired by a survivor prior to August 25, 2017 (the effective date of Public Act 100-334).
Any refund required under this Article shall be calculated based on that person's contributions to the Fund, less the amount of any annuity benefit previously received by the person or his or beneficiaries. The changes made to this Section by Public Act 100-23 apply only to persons who first become members or participants under this Article on or after July 6, 2017 (the effective date of Public Act 100-23). All future entrants entering service after July 11, 1955, shall be
deemed to have consented to the provisions of this Section as a condition
of coverage, and all participants entering service subsequent to August 25, 2017 (the effective date of Public Act 100-334) shall be deemed to have consented to the provisions of Public Act 100-334 as a condition of participation.
(Source: P.A. 100-23, eff. 7-6-17; 100-334, eff. 8-25-17; 100-863, eff. 8-14-18.)
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(40 ILCS 5/11-231) (from Ch. 108 1/2, par. 11-231)
Sec. 11-231.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof, and the rules
adopted pursuant thereto shall apply to and govern all proceedings for
the judicial review of final administrative decisions of the board
provided for under this Article. The term "administrative decision" is
as defined in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/11-232) (from Ch. 108 1/2, par. 11-232)
Sec. 11-232.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 12 heading) ARTICLE 12.
PARK EMPLOYEES' AND RETIREMENT BOARD EMPLOYEES' ANNUITY AND
BENEFIT FUND--CITIES OVER 500,000
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(40 ILCS 5/12-101) (from Ch. 108 1/2, par. 12-101)
Sec. 12-101.
Creation of fund.
In each city of more than 500,000
population, and having a board of park commissioners, under and in
pursuance of an Act of the General Assembly, for the purpose of locating,
establishing and enclosing, improving or maintaining any public park,
boulevard, driveway, or highway or other public work or improvement, an
annuity and benefit fund, hereinafter referred to as the "fund", shall be
created, maintained, administered and disbursed in the manner described in
this Article for the employees of such board as described in "An Act
relating to the civil service in park systems", approved June 10, 1911, as
amended, including employees in the classified service, and all persons in
exempt positions, and employees of the retirement board charged herein with
the duty of administering such fund, and for the surviving spouses and
children of such employees.
It is the intention of this Article that any employee or former
employee of a board of park commissioners or of the retirement board,
shall be deemed to have been an employee during all time heretofore that
the employee shall have been in such service, and that this Article
shall be construed to be retroactive in effect.
Participation in the fund by any person entering the service of the board
of park commissioners or the retirement board shall be effective only upon
completion of 6 months of continuous service, except that beginning July 1,
1991, this 6-month qualification period shall not apply to any person
employed in a position requiring service for 6 months or more in a calendar
year who would be exempted from mandatory participation in the federal
Social Security program by virtue of his participation in the fund.
Contributions to the fund shall begin with the payroll period next
following that in which the qualification period ends, or if no
qualification period is required, upon the commencement of employment.
The right to any annuity or benefit shall accrue from the date when such
contributions begin.
Any employee shall have the right to make contributions for retirement
and spouse's annuity purposes for the qualification period
prior to membership upon completing 10 years of service or attaining age 60
whichever event first occurs. Any person who entered service for the first
time on or before September 16, 1980 at age 60 or over may contribute and
receive credit for all service rendered prior to his date of entry into
the fund. These contributions shall be based upon the salary and rate
of contributions in effect at the date of his entry into the fund, plus
regular interest compounded annually from the end of the waiting period to
the date the contributions are made, whereupon credit as service for such
period shall be granted the employee.
The provisions of the "Exchange of Functions Act of 1957", approved
July 5, 1957, as heretofore or hereafter amended, to the extent that
they apply to and affect the fund herein established, are incorporated
into and made a part of this Article by express reference. Employees of
a park district, other than park policemen, transferred to the
employment of a city pursuant to said Act, if members of the fund herein
established, shall remain members of said fund, and their rights,
credits and equities therein shall remain unimpaired by such transfer of
employment.
(Source: P.A. 87-794.)
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(40 ILCS 5/12-102) (from Ch. 108 1/2, par. 12-102)
Sec. 12-102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 12-103 to 12-126, inclusive, except when the context
otherwise requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-103) (from Ch. 108 1/2, par. 12-103)
Sec. 12-103.
The 1919 Act.
"The 1919 Act": "An Act to provide for the creation, setting apart,
formation, administration and disbursement of a park employees' and
retirement board employees' annuity and benefit fund", approved June 21,
1919, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-104) (from Ch. 108 1/2, par. 12-104)
Sec. 12-104.
Exchange of Functions Act of 1957.
"Exchange of Functions Act of 1957": "An Act in relation to an exchange
of certain functions, property and personnel among cities and park
districts having coextensive geographic areas and populations in excess of
500,000", approved July 5, 1957, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-105) (from Ch. 108 1/2, par. 12-105)
Sec. 12-105.
Retirement board or board.
"Retirement board" or "board": The board of trustees of the Park
Employees' and Retirement Board Employees' Annuity and Benefit Fund as
created and constituted in this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-106) (from Ch. 108 1/2, par. 12-106)
Sec. 12-106.
Actuarial tables.
"Actuarial tables": The American Experience Table of Mortality and 4%
interest for any present employee or future entrant who was a
participant or contributor to the fund on June 30, 1959, and for their
widows or other beneficiaries, except as to reserves on annuities for
the computation of which the Combined Annuity Mortality Table and 4%
interest shall be used, and the Combined Annuity Mortality Table and 4%
interest for any future entrant whose first participation in the fund
began on or after July 1, 1959, and for his widow or other
beneficiaries.
All annuities and reserves on annuities, present or prospective,
except as may otherwise be provided, shall be computed according to such
actuarial tables and regular interest, as herein defined: provided, however,
that effective as of July 1, 1979 the actuarial table and rate of interest
to be used shall be that adopted by the retirement board upon recommendation
of the actuary.
(Source: P.A. 81-698.)
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(40 ILCS 5/12-107) (from Ch. 108 1/2, par. 12-107)
Sec. 12-107.
Reserve.
"Reserve": when applied to an annuity means the present value, according
to the applicable actuarial tables and rate of interest, of the payments to
be made on account of such annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-108) (from Ch. 108 1/2, par. 12-108)
Sec. 12-108.
Highest salary.
"Highest salary": The highest rate of salary received by an employee
during his total service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-109) (from Ch. 108 1/2, par. 12-109)
Sec. 12-109.
Service.
"Service": Employment by an employer in a position
covered by this Article, including (a) actual employment in pay status,
(b) periods of approved leaves of absence for which contributions are made
by the employee, (c) periods of military
service for which credit is granted, and (d) periods for which contribution
credits are granted during disability.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-111) (from Ch. 108 1/2, par. 12-111)
Sec. 12-111.
Withdrawal or withdraws.
"Withdrawal" or "withdraws": Resignation, separation or discharge from
service as an employee from any position to which a person has civil
service status and may be subject to re-employment in the classified civil
service under "An Act relating to the civil service in park systems",
approved June 10, 1911, as amended.
(Source: Laws 1963, p. 2177.)
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(40 ILCS 5/12-112) (from Ch. 108 1/2, par. 12-112)
Sec. 12-112.
Future entrant.
"Future entrant": An employee who entered service after July 1, 1919,
or, as applied to an employee of the board, an employee who entered service
after July 1, 1937.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-114) (from Ch. 108 1/2, par. 12-114)
Sec. 12-114.
Regular interest.
"Regular interest": Interest at the rate
prescribed by the Board upon recommendation of the actuary for all employees,
spouses or other beneficiaries.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-115) (from Ch. 108 1/2, par. 12-115)
Sec. 12-115.
Present value.
"Present value": The amount of funds presently required to provide an
annuity or benefit at some future date when computed according to the
actuarial tables.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-116) (from Ch. 108 1/2, par. 12-116)
Sec. 12-116. Fiscal year.
"Fiscal year": For periods prior to July 1, 2012, the year commencing with July 1st and ending with June
30th next following. Beginning January 1, 2013, the year commencing January 1 and ending December 31. The fiscal year which begins July 1, 2012 shall end December 31, 2012.
(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-117) (from Ch. 108 1/2, par. 12-117)
Sec. 12-117.
Contributions.
"Contributions": Amounts deducted from the salary or amounts otherwise
paid by an employee for the purposes
of this Article.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-118) (from Ch. 108 1/2, par. 12-118)
Sec. 12-118.
Employee.
"Employee": Any person in the service of a board
of park commissioners as described in Section 12-101, or employees of the
board, except (a) any person employed in any position requiring service of
less than 90 hours during a monthly period, or, beginning July 1, 1991, in
any position requiring service of less than 6 months during a calendar
year, unless that person is already a member of the fund, and (b) any
employee of a city or district transferred to the employment of a park
district by virtue of the Exchange of Functions Act of 1957.
(Source: P.A. 86-272; 87-794.)
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(40 ILCS 5/12-118.1) (from Ch. 108 1/2, par. 12-118.1)
Sec. 12-118.1.
Employee annuitant.
"Employee annuitant": An employee who has withdrawn from service and has
been granted a service retirement annuity.
(Source: Laws 1965, p. 1936.)
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(40 ILCS 5/12-118.2) (from Ch. 108 1/2, par. 12-118.2)
Sec. 12-118.2.
Gender.
The masculine gender whenever used in this Article includes the feminine
gender and all annuities and other benefits applicable to male employees
and their survivors, and the contributions to be made for widows' annuities
or other annuities, benefits, and refunds shall apply with equal force to
female employees and their survivors, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/12-119) (from Ch. 108 1/2, par. 12-119)
Sec. 12-119.
Transferred employee.
"Transferred employee": An employee who was transferred to the
employment of a city by virtue of "An Act in relation to an exchange of
certain functions, property and personnel among cities and park districts
having coextensive geographic areas and populations in excess of 500,000",
approved July 5, 1957, as amended. A park policeman shall not be included
as being a transferred employee within the meaning of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-120) (from Ch. 108 1/2, par. 12-120)
Sec. 12-120.
Employer.
"Employer": Any board of park commissioners referred to in this Article
and the retirement board defined in this Article. Effective January 1,
1959, "employer" shall also include any city to which is transferred by
virtue of the "Exchange of Functions Act of 1957" the employment of
employees of a park district (other than park policemen) who are members of
the fund established by "The 1919 Act".
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-121) (from Ch. 108 1/2, par. 12-121)
Sec. 12-121.
Leave of absence.
"Leave of absence": Absence from service for a temporary period on
permission given by the employer upon written request of the employee.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-122) (from Ch. 108 1/2, par. 12-122)
Sec. 12-122.
Salary.
"Salary":
(a) The annual salary of any employee whose salary is on a yearly basis;
(b) 12 times the amount of the salary per month of an employee whose salary
is on a monthly basis; (c) 52 times the amount of the salary per week of an
employee whose salary is on a weekly basis; (d) 260 times the amount of the
salary per day of an employee whose salary is on a daily basis or 2,080
times the amount of the salary per hour of an employee whose salary is on
an hourly basis. The number of days or hours in excess of the maximum
prescribed by the employer shall not be considered; (e) the maximum annual
salary when arranged on a yearly basis to be considered for contributions
and benefits for the various purposes of this Article for the periods
specified shall be as follows: July 1, 1919 to June 30, 1921, inclusive,
$2,500; July 1, 1921 to July 20, 1947, inclusive, $3,000; July 21, 1947, to
June 30, 1951, inclusive, $4,800; July 1, 1951 to June 30, 1957, inclusive,
$6,000; July 1, 1957 and thereafter, no maximum limitation; (f) the maximum
annual salary where arranged on other than a yearly basis to be considered
for contributions and benefits for the various purposes of this Article for
the periods prior to the effective date of the formulas specified in
paragraph (b), (c) or (d) of this section, shall be computed in accordance
with the applicable law in force during such periods.
Salary for part-time employment in positions of a seasonal or part-time
character shall be computed in accordance with the foregoing standards as
the same may be applicable for the respective periods of employment under
rules established by the board.
(Source: P.A. 78-266.)
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(40 ILCS 5/12-123) (from Ch. 108 1/2, par. 12-123)
Sec. 12-123.
Age.
"Age": Age at the latest birthday. In the computation of any
retirement annuity, the actuarial factor shall be prorated for the
number of days between the employee's last birthday and his age on the
effective date of the annuity.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-123.1) (from Ch. 108 1/2, par. 12-123.1)
Sec. 12-123.1.
Surviving spouse.
Surviving spouse: The spouse of an
active employee on the date of the employee's death; the spouse of an
inactive member on the date of separation from park service, unless the
member has subsequent service with another pension fund or retirement system
under the Retirement Systems Reciprocal Act and elects to receive a
retirement annuity calculated under that Act; the spouse of an annuitant on the
date of retirement. If the marriage terminates after the inactive member
separates from service or the member retires, the former spouse is no longer
eligible for benefits as the surviving spouse. The term "widow" means
"surviving spouse" for the purposes of this Article.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-124) (from Ch. 108 1/2, par. 12-124)
Sec. 12-124.
Fixation of annuity; limitation on reversionary annuity.
"Fixation of annuity": As applied to a service annuity or prior
service annuity or a surviving spouse's annuity, the final
determination of the annuity at the date of retirement.
A reversionary annuity calculated after January 1, 1990 may not be
more than 75% of the service annuity granted to the employee annuitant on
the date of retirement unless the minimum annuity to the surviving spouse
payable under Section 12-135.1 exceeds the 75% maximum payable, in which
case the minimum will be payable.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/12-125) (from Ch. 108 1/2, par. 12-125)
Sec. 12-125.
Reversionary annuity.
"Reversionary annuity": A deferred annuity
computed according to the applicable actuarial table, based on employee and
employer contributions for surviving spouse's service annuity and surviving
spouse's prior service annuity, and payable to the beneficiary during lifetime,
or other stated period, only if the beneficiary survives the employee receiving
a retirement annuity and qualifies as the surviving spouse under Section
12-123.1.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-125.1) (from Ch. 108 1/2, par. 12-125.1)
Sec. 12-125.1.
Optional reversionary annuity.
"Optional reversionary annuity": A deferred annuity derived from part of
the actuarial value of an employee's retirement annuity, computed according
to the applicable actuarial tables and payable during the lifetime of the
beneficiary only if the beneficiary survives the employee receiving a
retirement annuity and qualifies as the surviving spouse under
Section 12-123.1.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-126) (from Ch. 108 1/2, par. 12-126)
Sec. 12-126.
Actuarial equivalent.
"Actuarial equivalent": An annuity or benefit of equal value to the
accumulated contributions, annuity or other benefit, when computed upon the
basis of the actuarial tables in use by the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-127) (from Ch. 108 1/2, par. 12-127)
Sec. 12-127. Computation of service.
(a) If an employee during any leave of absence for 30 days or more
without pay who is not receiving ordinary disability or duty disability
benefits contributes the percentage of salary theretofore deducted from
his salary for annuity purposes, the employer shall contribute
corresponding amounts for such purposes. Payment for any approved leave
of absence shall not be valid unless made during such absence or within
30 days from expiration thereof. The aggregate of leaves of absence for
which contributions may be made during the entire employee's service
shall be 1 year.
(b) In computing service, credit shall be given for all leaves of
absence subject to the limitations specified in the following paragraph
during the time an employee was engaged in the military or naval service
of the United States of America during the years 1914 to 1919,
inclusive, or between September 16, 1940, and July 25, 1947, or between
June 25, 1950, and January 31, 1955, and any such service rendered after
January 31, 1955, and who within 180 days subsequent to the completion of
military or naval service re-enters the service of the employer.
The total credit any employee shall receive for military or naval
service during the entire term of service as an employee shall be
subject to the following conditions and limitations:
(1) if entry into military or naval service occurs | ||
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(2) if entry into military or naval service occurred | ||
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(3) an employee who on July 1, 1961, had accrued more | ||
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The contributions an employee would have made during the period of
such military or naval service, together with the prescribed employer
contributions, shall be made by the employer and shall be based on the
salary for the position occupied by the employee on the date of
commencement of the leave of absence.
(c) For all purposes of this Article except the provisions of
Section 12-133, the following shall constitute a year of service in any
fiscal year for salary payable according to the basis specified: Monthly
Basis: 4 months; Weekly Basis: 17 weeks; Daily Basis: 100 days; Hourly
Basis: 800 hours, except that in the case of an employee becoming a
participant of the fund on and after July 1, 1973, the following
schedule shall govern for all purposes of this Article: Service during 9
months or more in any fiscal year shall constitute a year of service; 6
to 8 months, inclusive, 3/4 of a year; 3 to 5 months, inclusive, 1/2
year; less than 3 months, 1/4 of a year; 15 days or more in any month, a
month of service. However, for the 6-month fiscal year July 1, 2012 through December 31, 2012, the amount of service earned shall not exceed 1/2 year.
(d) The periods an employee received ordinary or duty disability
benefit shall be included in the computation of service.
(e) Upon receipt of the specified payment, credits transferred to a
fund established under this Article pursuant to subsection (d) of Section
8-226.1, subsection (d) of Section 9-121.1, or Section
14-105.1 of this Code shall be included in the computation
of service.
(f) A contributing employee may establish additional
service credit for a period of up to 2 years spent in active military
service for which he or she does not qualify for credit under subsection
(b), provided that (1) the person was not dishonorably discharged from the
military service, and (2) the amount of service credit established by the
person under this subsection (f), when added to the amount of any military
service credit granted to the person under subsection (b), shall not exceed
5 years. In order to establish military service credit under this
subsection (f), the applicant must submit a written application to the
Fund, including a copy of the applicant's discharge from military service,
and pay to the Fund (1) employee contributions at the rates provided in
this Article based upon the person's salary on the last date as a
participating employee prior to the military service, or on the first date
as a participating employee after the military service, whichever is
greater, plus (2) an amount determined by the board to be equal to the
employer's normal cost of the benefits accrued for such military service,
plus (3) regular interest on items (1) and (2) from the date of conclusion
of the military service to the date of payment. Contributions must be paid
in a single lump sum before the credit will be granted. Credit established
under this subsection may be used for pension purposes only.
(g) A contributing employee may establish additional service credit for a
period of up to 5 years of employment by the United States federal government
for which he or she does not qualify for credit under any other provision of
this Article, provided that (1) the amount of service credit established by the
person under this subsection (g), when added to the amount of all military
service credit granted to the person under subsections (b) and (f), shall not
exceed 5 years, and (2) any credit received for the federal employment in any
other public pension fund or retirement system has been terminated or
relinquished.
In order to establish service credit under this subsection (g), the
applicant must submit a written application to the Fund, including such
documentation of the federal employment as the Board may require, and pay
to the Fund (1) employee contributions at the rates provided in
this Article based upon the person's salary on the last date as a
participating employee prior to the federal service, or on the first date
as a participating employee after the federal service, whichever is
greater, plus (2) an amount determined by the Board to be equal to the
employer's normal cost of the benefits accrued for such federal service,
plus (3) regular interest on items (1) and (2) from the date of conclusion
of the federal service to the date of payment. Contributions must be paid
in a single lump sum before the credit is granted. Credit established
under this subsection may be used for pension purposes only.
(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-127.1) (from Ch. 108 1/2, par. 12-127.1)
Sec. 12-127.1.
Transfer to General Assembly Retirement System.
(a) Any active (and until April 1, 1993, any former) member of the
General Assembly Retirement System may apply for transfer of his credits
and creditable service accumulated under this Fund to the General Assembly
System. Such credits and creditable service shall be transferred
forthwith. Payment by this Fund to the General Assembly Retirement System
shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) An active (and until April 1, 1993, a former) member of the General
Assembly who has service credits and creditable service under the Fund may
establish additional service credits and creditable service for periods during
which he was an elected official and could have elected to participate but did
not so elect. Service credits and creditable service may be established by
payment to the fund of an amount equal to the contributions he would have made
if he had elected to participate, plus interest to the date of payment.
(c) An active (and until April 1, 1993, a former) member of the General
Assembly may reinstate service and service credits terminated upon receipt of a
separation benefit, by payment to the Fund of the amount of the separation
benefit plus interest thereon to the date of payment.
(d) An active member of the General Assembly having no service credits
or creditable service in the Fund may establish service credit and
creditable service for periods during which he was employed by the board of
park commissioners or the retirement board but did not participate in the
Fund, by paying to the Fund prior to July 1, 1992 an amount equal to the
contributions he would have made if he had participated, plus interest
thereon at 6% per annum compounded annually from such period to the date of
payment.
Any active member of the General Assembly may apply for transfer of his
credits and creditable service established under this subsection (d) to any
annuity and benefit fund established under Article 8 of this Act. Such
credits and creditable service shall be transferred forthwith, together
with a payment from this Fund to the designated Article 8 fund consisting
of the amounts accumulated to the credit of the applicant under this
subsection (d), including the corresponding employer contributions and
interest, on the books of the Fund on the date of transfer. Participation
in this Fund as to any credits transferred under this subsection shall
terminate on the date of transfer.
(Source: P.A. 86-1488; 87-1265.)
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(40 ILCS 5/12-127.5) (from Ch. 108 1/2, par. 12-127.5)
Sec. 12-127.5.
Transfer of creditable service to Article 5 fund.
Pursuant to Section 5-234 of this Code, a police officer who is a
participant in a pension fund established under
Article 5 of this Code may apply for transfer of his credits and creditable
service accumulated under this Fund to such Article 5 fund. Such
creditable service shall be transferred forthwith. Payment by this Fund to
the Article 5 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding
any additional or optional credits, which credits shall be refunded to the
applicant; and
(2) employer contribution credits computed and credited under this Article,
including interest, on the books of the Fund on the date the member
terminated service under the Fund.
Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-128) (from Ch. 108 1/2, par. 12-128)
Sec. 12-128.
Annuities provided.
A service annuity shall be provided for
future entrants and present employees.
A prior service annuity shall be provided for present employees. A
widow's prior service annuity shall be provided for widows of present
employees. A widow's service annuity shall be provided for widows of future
entrants and present employees.
A retirement annuity shall consist of a service annuity and a prior
service annuity where applicable, and a widow's annuity shall consist of a
widow's service annuity and a widow's prior service annuity, where
applicable.
If the total annuities to an employee from accumulation for prior
service annuity and service annuity, or to a widow for widow's service
annuity and widow's prior service annuity, as an actuarial equivalent of
such accumulations, effective on or after July 1, 1983 are
less than $100 per month, a temporary annuity of $100
per month shall be payable to the employee or widow, except in the case
of a reciprocal pension.
Except as to a temporary annuity, the annuity payable to an employee or
widow shall consist of equal monthly payments for life or widowhood,
provided that upon termination thereof due to death or other cause, payment
shall be made for the period from the date of the last payment to the date
of termination. The first payment of any annuity shall be due and payable 1
month after the occurrence of the event upon which payment thereof depends;
provided, that as to annuities effective July 1, 1973, and thereafter
payments shall be made as of the first day of each calendar month during
the annuity payment period, the first payment to be made as of the first
day of the calendar month coincidental with or next following the first day
of the annuity payment period and the last payment to be made as of the
first day of the calendar month in which the annuitant dies or the annuity
payment period ends.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-130) (from Ch. 108 1/2, par. 12-130)
Sec. 12-130. Retirement prior to age 60. An employee withdrawing prior
to January 1, 1990 with at least 10 years of service and before attainment
of age 55 shall be entitled at his option to a retirement annuity beginning at age 55.
An employee withdrawing prior to January 1, 1990 with at least 10 years
of service upon or after attainment of age 55, and before age 60, shall be
entitled to a retirement annuity beginning at any time thereafter.
An employee who withdraws on or after January 1, 1990 with at least 10
years of service and prior to age 60 shall be entitled, at his option, to a
retirement annuity beginning at any time after withdrawal or attainment of
age 50, whichever occurs later.
Any employee upon withdrawal after at least 15 years of service, upon
or after attainment of age 50, and before attainment of age 55, who
received ordinary disability benefit for the maximum period of time
provided herein, and who continues to be disabled, shall be entitled to
a retirement annuity.
The amount of retirement annuity for any employee who entered service
prior to July 1, 1971 shall be provided from the total of the
accumulations as stated in this Section, at the employee's attained age
on the date of retirement:
(a) the accumulation from employee contributions for | ||
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(b) 1/10 of the accumulation, on the date of | ||
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(Source: P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-131) (from Ch. 108 1/2, par. 12-131)
Sec. 12-131.
Retirement at age 60 or over.
An employee, upon
withdrawal upon or after age 60 with 4 or more years of service, shall
be entitled to a retirement annuity. Such annuity for an employee who
entered service prior to July 1, 1971 shall be that provided, as of his
age on the date of retirement, from the total of the accumulations
described below:
(a) the accumulation from employee contributions for service annuity
on the date of withdrawal, improved by
regular interest to the date when he enters upon retirement annuity;
(b) the accumulation from the contributions by the employer for
service annuity, on the date of the employee's withdrawal, improved by
regular interest to the date when he enters upon retirement annuity.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-132.1) (from Ch. 108 1/2, par. 12-132.1)
Sec. 12-132.1.
Employees still in service whose annuities were fixed
at age 70 prior to July 1, 1988. For all employees who have not withdrawn
from service or retired, whose annuities were fixed under prior law at age
70, prior to July 1, 1988, contributions and service credits shall be
resumed on January 1, 1990. However, no contributions or service credits
shall be permitted from the time that annuities were fixed to January 1, 1990.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-133)
(from Ch. 108 1/2, par. 12-133)
Sec. 12-133. Fixed benefit retirement annuity.
(a) Subject to the provisions of paragraph (b) of this Section, the
retirement annuity for any employee who withdraws from service on or after
January 1, 1983 and before January 1, 1990, at age 60 or over, having at
least 4 years of service, shall be 1.70% for each of the first 10 years of
service; 2.00% for each of the next 10 years of service; 2.40% for each
year of service in excess of 20 but not exceeding 30; and 2.80% for each
year of service in excess of 30, with a pro-rated amount for service of
less than a full year, based upon the highest average annual salary for any
4 consecutive years within the last 10 years of service immediately
preceding the date of withdrawal, provided that: (1) if retirement of the
employee occurs below age 60, such annuity shall be reduced 1/2 of 1% for
each month or fraction thereof that the employee's age is less than 60,
except that an employee retiring at age 55 or over but less than age 60,
having at least 35 years of service, shall not be subject to the reduction
in his retirement annuity because of retirement below age 60; (2) the
annuity shall not exceed 75% of such average annual salary; (3) the actual
salary shall be considered in the computation of this annuity.
The retirement annuity for any employee who withdraws from service on or
after January 1, 1990 and prior to December 31, 2003 at age 50 or over with
at least 10 years of service, or
at age 60 or over with at least 4 years of service, shall be 1.90%
for each of the first 10 years of service, 2.20% for each of the next 10 years
of service, 2.40% for each of the next 10 years of service, and
2.80% for each year of service in excess of 30, with a pro-rated amount for
service of less than a full year, based upon the highest average annual
salary for any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, provided that:
(1) if retirement of the employee occurs below age | ||
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(2) the annuity shall not exceed 80% of such average | ||
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(3) the actual salary shall be considered in the | ||
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An employee who withdraws from service on or after December 31, 2003, at
age 50 or over with at least 10 years of service or at age 60 or over with at
least 4 years of service, shall receive, in lieu of any other retirement
annuity provided for in this Section, a retirement annuity calculated as
follows: for each year of service immediately preceding the date of withdrawal,
2.40% of the highest average annual salary for any 4 consecutive years within
the last 10 years of service immediately preceding the date of withdrawal, with
a prorated amount for service of less than a full year, provided that:
(1) if retirement of the employee occurs below age | ||
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(2) the annuity shall not exceed 80% of such average | ||
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(3) the actual salary shall be considered in the | ||
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Notwithstanding any other formula, the annuity for employees retiring on or
after January 31, 2004 and on or before February 29, 2004 with at least 30 years of
service shall be 80% of average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the date of
withdrawal.
(b) In lieu of the retirement annuity provided as an actuarial
equivalent of the total accumulations from contributions by the employee,
contributions by the employer, and prior service annuity plus regular
interest, an employee in service prior to July 1, 1971 shall be entitled to
the largest applicable retirement annuity provided in this Section if the
same is larger than the annuity provided in other Sections of this Article.
(c) The following schedule shall govern the computation of service
for the fixed benefit annuities provided by this Section: Service during
9 months or more during any fiscal year shall constitute a year of
service; 6 to 8 months, inclusive, 3/4 of a year; 3 to 5 months,
inclusive, 1/2 year; less than 3 months, 1/4 of a year; 15 days or more
in any month, a month of service. However, for the 6-month fiscal year July 1, 2012 through December 31, 2012, the amount of service earned shall not exceed 1/2 year.
(d) The other provisions of this Section shall not apply in the case of
any former employee who is receiving a retirement annuity from the fund
and who re-enters service as an employee, unless the employee renders
from and after the date of re-entry, at least 3 years of additional
service.
(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-133.1) (from Ch. 108 1/2, par. 12-133.1)
Sec. 12-133.1. Annual increase in basic retirement annuity.
(a) Any employee upon withdrawal from service on or after July 1,
1965, and retiring on a retirement annuity, shall be entitled to an annual
increase in his basic retirement annuity as defined herein while he is
in receipt of such annuity.
The term "basic retirement annuity" shall mean the retirement
annuity of the amount fixed and payable at date of retirement of the
employee.
(b) The annual increase in annuity shall be 1 1/2% of the basic retirement
annuity. The increase shall first occur in the month of January or the month
of July, whichever first occurs next following or coincidental with the first
anniversary of retirement. Effective January 1, 1972, the annual rate of
increase in annuity thereafter shall be 2% of the basic retirement annuity,
provided that beginning as of January 1, 1976, the annual rate of increase
shall be 3% of the basic retirement annuity.
(c) For an employee who retires with less than 30 years of service, the increase in the basic retirement annuity shall begin
not earlier than in the month of January or the month of July, whichever occurs
first, following or coincidental with the employee's attainment of age 60.
For an employee who retires with at least 30 years of service, the
annual increase under this Section shall begin in the month of January or the
month of July, whichever first occurs next following or coincidental with the
later of (1) the first anniversary of retirement or (2) July 1, 1998, without
regard to the attainment of age 60 and without regard to whether or not the
employee was in service on or after the effective date of this amendatory Act
of 1998.
(d) The increase in the basic retirement annuity shall not be applicable
unless the employee otherwise qualified has made contributions to the fund as
provided herein for an equivalent period of one full year. If such
contributions were not made, the employee may make the required payment to the
fund at the time of retirement, in a single sum, without interest.
(e) The additional contributions by an employee towards the annual
increase in basic retirement annuity shall not be refundable, except to
an employee who withdraws and applies for a refund under this Article,
or dies while in service, and also in cases where a temporary annuity
becomes payable. In such cases his contributions shall be refunded
without interest.
(Source: P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-133.2) (from Ch. 108 1/2, par. 12-133.2)
Sec. 12-133.2. Increases to employee annuitants. Employees who
retired on service retirement annuity prior to July 1, 1965 who were at
least 55 years of age at date of retirement and had at least 20 years of
credited service, who shall have attained age 65, and any employee retired
on or after such date who meets such qualifying conditions and who is not
eligible for an annual increase in basic retirement annuity otherwise
provided in this Article, shall be entitled to receive benefits under this
Section.
These benefits shall be in an amount equal to 1 1/2% of the service
retirement annuity multiplied by the number of full years that the annuitant
was in receipt of such annuity. This payment shall begin in January of 1970,
and an additional 1 1/2% based upon the original grant of annuity shall be
added in January of each year thereafter. Beginning January 1, 1972, the
annual rate of increase in annuity shall be 2% of the original grant of annuity
and shall also apply thereafter to any person who shall have had at least 15
years of credited service and less than 20 years on the same basis as was
applicable to persons retired with 20 or more years of service; provided that
beginning January 1, 1976, the annual rate of increase in retirement annuity
shall be 3% of the basic retirement annuity.
An employee annuitant who otherwise qualifies for the aforesaid
benefit shall make a one-time contribution of 1% of the final monthly average
salary multiplied by the number of completed years of service forming the
basis of his service retirement annuity, provided that if the annuity was
computed on any other basis, the contribution shall be 1% of the rate of
monthly salary in effect on the date of retirement multiplied by the number of
completed years of service forming the basis of his service retirement annuity.
(Source: P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-133.3) (from Ch. 108 1/2, par. 12-133.3)
Sec. 12-133.3.
Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, an
employee must:
(1) be a current contributor to the Fund who, on | ||
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(2) have not previously retired under this Article;
(3) file with the Board before June 1, 1993, a | ||
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(4) withdraw from service on or after December 31, | ||
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(5) have attained age 55 on or before the date of | ||
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(6) by the date of withdrawal, have at least 10 years | ||
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A person is not eligible for the benefits provided in this Section if the
person elects to receive a retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122.
(b) An eligible employee may establish up to 5 years of creditable
service under this Section, in increments of one month, by making the
contributions specified in subsection (d). An eligible person must
establish at least the amount of creditable service necessary to bring his
or her total creditable service, including service in this Fund, service
established under this Section, and service in any of the other participating
systems under the Retirement Systems Reciprocal Act, to a minimum of 20 years.
The creditable service under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of average annual salary and the determination
of salary, earnings, or compensation under this or any other Article of
this Code.
(c) An eligible employee shall be entitled to have his or her retirement
annuity calculated in accordance with the formula provided in Section
12-133, but the annuity shall not be subject to reduction because of
withdrawal or commencement of the annuity before attainment of age 60.
(d) For each month of creditable service established under this Section,
the employee must pay to the Fund an employee contribution, to be calculated
by the Fund, equal to 4.25% of the member's monthly salary rate on November
1, 1992. The employee may elect to pay the entire contribution before the
retirement annuity commences, or to have it deducted from the annuity over
a period not longer than 24 months. If the retired employee dies before the
contribution has been paid in full, the unpaid installments may be deducted
from any annuity or other benefit payable to the employee's survivors.
All employee contributions paid under this Section shall be deemed
contributions made by employees for annuity purposes under Section 12-149
and shall be made and credited to a special reserve, without interest.
Employee contributions paid under this Section may be refunded under the
same terms and conditions as are applicable to other employee contributions
for retirement annuity.
(e) Notwithstanding Section 12-146, an annuitant who reenters service under
this Article after receiving a retirement annuity based on benefits provided
under this Section thereby forfeits the right to continue to receive those
benefits, and shall have his or her retirement annuity recalculated at the
appropriate time without the benefits provided in this Section.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-133.4)
Sec. 12-133.4.
Early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person
must:
(1) have been, on March 1, 1994, an employee (i) | ||
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(2) not have begun to receive a retirement annuity | ||
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(3) file with the Board, within 90 days after the | ||
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(4) withdraw from service on or after April 30, 1994 | ||
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(5) have attained age 50 on or before the date of | ||
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(6) have at least 25 years of creditable service | ||
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(b) An eligible person may establish up to 5 years of creditable service
under this Article, in increments of one month, by making the contributions
specified in subsection (c).
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act, except
for the computation of the highest average annual salary under Section 12-133
or the determination of salary under this or any other Article of this Code.
(c) For each month of creditable service established under this Section, the
person must pay to the Fund an employee contribution to be determined by the
Fund, equal to 4.50% of the person's monthly salary rate in effect on the date
of withdrawal. Subject to the requirements of subsection (d), the person may
elect to pay the required employee contribution before the retirement annuity
begins or through deduction from the retirement annuity over a period of up to
24 months.
If a person who retires under this Section dies before all payments of
employee contribution have been made, the remaining payments shall be deducted
from any survivor or death benefits payable to the person's surviving spouse or
beneficiary.
All employee contributions paid under this Section shall be
deemed employee contributions for the purposes of determining the tax levy
under Section 12-149. Employee contributions made under this Section may be
refunded under the same terms and conditions as other employee contributions
under this Article.
(d) In the case of a person who begins receiving a retirement annuity under
the other provisions of this Article on or after March 1, 1994 and qualifies
for benefits under this Section after that retirement annuity begins, the
increase in retirement annuity resulting from this Section shall be applied
retroactively to the date the retirement annuity began.
If a person who has retired under this Section receives a retroactive
increase in salary, the person's retirement annuity shall be recalculated to
reflect the retroactive salary increase, and the resulting increase in
retirement annuity, if any, shall be applied retroactively to the date the
retirement annuity began. If the retroactive salary increase affects the
monthly salary rate that was in effect for the person on the date of
withdrawal, the employee contribution required under subsection (c), if any,
shall also be recalculated.
The amount due the annuitant as a result of a retroactive increase in
retirement annuity under this subsection shall first be applied against any
part of the employee contribution required under this Section that remains
unpaid; the remainder shall be paid to the annuitant in a lump sum, without
interest.
(e) A person who retires under the provisions of this Section shall have
his or her retirement annuity calculated under the provisions of Section
12-133, except that the retirement annuity shall not be subject to the
reduction for retirement under age 60 that is specified in Section 12-133.
(f) Notwithstanding Section 12-146 of this Article, an annuitant who
re-enters service under this Article after receiving a retirement annuity based
on the additional benefits provided under this Section thereby forfeits the
right to continue to receive those additional benefits and upon again retiring
shall have his or her retirement annuity recalculated without the additional
benefits provided in this Section.
(Source: P.A. 89-136, eff. 7-14-95.)
|
(40 ILCS 5/12-133.5)
Sec. 12-133.5.
Early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person
must:
(1) have been, on July 1, 1998, an employee (i) | ||
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(2) not have begun to receive a retirement annuity | ||
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(3) file with the Board, within 90 days after the | ||
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(4) withdraw from service on or after August 31, 1998 | ||
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(5) have attained age 50 on or before the date of | ||
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(6) have, by the date of withdrawal, a total of at | ||
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(b) An eligible person may establish up to 5 years of creditable service
under this Article, in increments of one month, by making the contributions
specified in subsection (c).
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act, except
for the computation of the highest average annual salary under Section 12-133
or the determination of salary under this or any other Article of this Code.
(c) For each month of creditable service established under this Section, the
person must pay to the Fund an employee contribution to be determined by the
Fund, equal to 4.50% of the person's monthly salary rate in effect on the date
of withdrawal. Subject to the requirements of subsection (d), the person may
elect to pay the required employee contribution before the retirement annuity
begins or through deduction from the retirement annuity over a period of up to
24 months.
If a person who retires under this Section dies before all payments of
employee contribution have been made, the remaining payments shall be deducted
from any survivor or death benefits payable to the person's surviving spouse or
beneficiary.
All employee contributions paid under this Section shall be
deemed employee contributions for the purposes of determining the tax levy
under Section 12-149. Employee contributions made under this Section may be
refunded under the same terms and conditions as other employee contributions
under this Article.
(d) A person who retires under the provisions of this Section shall have
his or her retirement annuity calculated under the provisions of Section
12-133, except that the retirement annuity shall not be subject to the
reduction for retirement under age 60 that is specified in Section 12-133.
(e) Notwithstanding Section 12-146 of this Article, an annuitant who
re-enters service under this Article after receiving a retirement annuity based
on the additional benefits provided under this Section thereby forfeits the
right to continue to receive those additional benefits and upon again retiring
shall have his or her retirement annuity recalculated without the additional
benefits provided in this Section.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/12-133.6)
Sec. 12-133.6. Early retirement incentive.
(a) To be eligible for the benefits provided in this Section, a person
must:
(1) have been, on November 1, 2003, an employee (i) | ||
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(2) have not previously retired under this Article;
(3) file with the Board before January 31, 2004 a | ||
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(4) withdraw from service on or after January 31, | ||
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(5) have, by the date of withdrawal or by February | ||
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(a-5) To ensure that the efficient operation of employers under this Article
is not jeopardized by the simultaneous retirement of large numbers of critical
personnel, each employer may, for its critical employees, extend the February 29, 2004 deadline for terminating employment under this Article established in
subdivision (a)(4) of this Section to a date not later than May 31, 2004 by
so
notifying the Fund by January 31, 2004. (b) An eligible person may establish up to 5 years of creditable service
under this Section, in increments of one month, by making the contributions
specified in subsection (c). In addition, for each month of creditable service
established under this Section, a person's age at retirement shall be deemed to
be one month older than it actually is, except for purposes of determining age
under item (5) of subsection (a).
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act, except
for the computation of highest average annual salary under Section 12-133 or
the determination of salary under this or any other Article of this Code.
(c) For each month of creditable service established under this Section, the
person must pay to the Fund an employee contribution to be determined by the
Fund, equal to 4.50% of the person's monthly salary rate on the date of
withdrawal from service. Subject to the requirements of subsection (d), the
person may elect to pay the required employee contribution before the
retirement annuity commences or through deductions from the retirement annuity
over a period not longer than 24 months.
If a person who retires dies before all payments of the employee contribution
have been made, the remaining payments shall be deducted from any survivor or
death benefits payable to the employee's surviving spouse or beneficiary.
Notwithstanding any provision in this Article to the contrary, all employee
contributions paid under this Section shall not be deemed employee
contributions for the purpose of determining the tax levy under Section 12-149.
Notwithstanding any provision in this Article to the contrary, the employer
shall not make a contribution for any credit established by an employee under
subsection (b) of this Section. Employee contributions made under this Section
may be refunded under the same terms and conditions as other employee
contributions under this Article.
(d) A person who retires under the provisions of this Section shall be
entitled to have his or her retirement annuity calculated under the provisions
of Section 12-133, except that the retirement annuity shall not be subject to
reduction for retirement under age 60.
(e) Notwithstanding Section 12-146 of this Article, an annuitant who
reenters service under this Article after receiving a retirement annuity based
on additional benefits provided under this Section thereby forfeits the right
to continue to receive those benefits, and upon again retiring shall have his
or her retirement annuity recalculated at the appropriate time without the
additional benefits provided in this Section.
(f) No employer action in declaring an employee to be a critical employee pursuant to subsection (a-5) shall be construed as an impairment of any pension benefit or entitlement. No early retirement option or resultant benefit conferred under this Section shall, in any manner, vest for any employee until the earlier date of the employer's decision to release the employee from service or May 31, 2004.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/12-133.7)
Sec. 12-133.7. Early retirement incentive for employees who have earned
maximum pension benefits. A person who is eligible for the benefits provided
under Section 12-133.6 and who, if he or she had retired on or before February 29, 2004, would have been entitled to a pension equal to 80% of his or her
highest average salary for any 4 consecutive years within the last 10 years of
service immediately preceding February 29, 2004 without receiving the benefits
provided in Section 12-133.6 may elect, by filing a written election with
the Fund by January 30, 2004, to receive a lump sum from the Fund on his or
her last day of employment equal to 100% of his or her salary for the year
ending on February 29, 2004 or the date of withdrawal, whichever is earlier. To
be eligible to receive the benefit provided under this Section, the person
must withdraw from service on or after January 31, 2004 and on or before
February 29, 2004. If a person elects to receive the benefit provided under this
Section, his or her retirement annuity otherwise payable under Section 12-133
shall be reduced by an amount equal to the actuarial equivalent of the lump
sum. If a person elects to receive the benefit provided under this Section,
the resulting reduction in retirement annuity under this Section shall not
affect the amount of any widow's service annuity or widow's prior service
annuity under Section 12-135 or any optional reversionary annuity for a
surviving spouse under Section 12-136.1.
(Source: P.A. 93-654, eff. 1-16-04.) |
(40 ILCS 5/12-134) (from Ch. 108 1/2, par. 12-134)
Sec. 12-134.
Maximum retirement annuity.
Except as modified by the provisions of Sections 12-133.1 and
12-133.2, the maximum retirement annuity for any employee under the
provisions of this Article shall be 70% of the highest average annual
salary for any 5 consecutive years within the last 10 years immediately
preceding the date of withdrawal; provided that in the case of an
employee in service on June 30, 1957, the maximum retirement annuity
shall be the amount prescribed by the provisions of "The 1919 Act" in
effect on June 30, 1957, increased by the amount resulting from
accumulations accruing during service rendered thereafter consisting of
contributions by the employee and employer for service annuity, improved
by regular interest, subject to a maximum annuity equal to 75% of the
highest salary received by an employee while in service for that part of
such salary which does not exceed $6,000 per year, and 60% of that part
of such salary which exceeds $6,000 per year.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-135) (from Ch. 108 1/2, par. 12-135)
Sec. 12-135.
Widow's service annuity and widow's prior service annuity.
(a) The widow of an employee who withdraws after at least 10 years
of service and before attainment of age 60 shall be entitled to a
widow's annuity beginning on the day next following his death,
if he has not received a refund upon withdrawal before age 55.
If fixation has occurred in the annuities payable on account of such
employee, the annuity to a widow shall be a reversionary annuity to be
provided from the total of the following accumulations, as of her attained age
on the date of fixation, to begin on the day next following the death of the
employee provided that the accumulation from contributions by the employer
shall not be used to an extent which, when taken with the accumulation from
employee contributions, will provide the widow an annuity in excess of 50% of
the highest salary which the employee received while in service:
(1) the accumulation from employee contributions for | ||
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(2) 1/10 of the accumulation from contributions by | ||
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(b) The widow's annuity upon death of the employee while in service,
shall be that provided from the total of the accumulations as stated
below, on the day next following the date of death of the employee as
of the widow's age on such date, provided that the accumulations from sums
contributed by the employer shall not be used to an extent which, when taken
with the deductions from salary, will provide for such widow an annuity in
excess of 50% of the highest salary which the employee received while in
service, and in no case greater than the reversionary annuity that would
be payable if the employee had retired at age 55 if he withdrew prior to
such age or had retired on annuity when he withdrew if withdrawal
occurred after age 55:
(1) the accumulation from employee contributions for | ||
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(2) 1/10 of the total of the accumulations from | ||
| ||
(c) The widow of an employee who withdraws or dies while in service,
upon or after attainment of age 60, and after fixation of the widow's
annuity, shall be entitled to a widow's annuity beginning on the day next
following the date of death of
the employee.
The amount of such annuity shall be that provided from the total of
the accumulations derived as stated below on the date of fixation, as of
her attained age on such date; provided that the accumulation from sums
contributed by the employer shall not be used to an extent which, when
taken with the accumulation from employee contributions for such
purpose, shall provide an annuity in excess of 50% of the highest salary
which such employee received while in service:
(1) the accumulation from employee contributions for | ||
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(2) the accumulation from contributions by the | ||
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(3) for a present employee the accumulation for | ||
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(d) The widow of an employee who dies while in service before
fixation of the annuity rights of such widow shall be entitled to a
widow's annuity beginning on the day next following his death.
Such annuity shall be that
provided from the total of the accumulations derived as stated below on
the date of death of the employee as of her attained age on such date;
provided that the accumulation from sums contributed by the employer
shall not be used to an extent which, when taken with the accumulation
from employee contributions, for such purpose, will provide an annuity
in excess of 50% of the highest salary received by the employee while in
service:
(1) The accumulation from employee contributions for | ||
| ||
(2) the accumulation from contributions by the | ||
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(e) The widow's service annuity or widow's prior service annuity
which shall be determined for the wife of any employee at the date of
his retirement shall be derived from the sum to the credit of such
employee for such purposes, on the date of fixation of the widow's
annuity, to provide a reversionary annuity for the wife after the death
of her husband.
(f) In lieu of the widow's annuity described above, a widow of any
employee who dies while in service, or after retirement on annuity, may
elect to receive a lump sum payment of $300 which is to be applied to
reduce the accumulations for widow's service annuity and widow's prior
service annuity, and a reduced widow's annuity from the remainder of
said accumulations. Said payment shall be applied against the
accumulations for the respective annuities in proportionate amounts. In
the event a widow elects a lump sum payment, and the total of the
aforesaid accumulations prior to adjustment for said payment is equal to
or less than $300, the total payment to said widow shall consist only of
the amount of said accumulations, and no widow's annuity shall be
payable to said widow.
(g) Any widow's annuity provided for in this section shall be
computed as provided above, except that the maximum age of such widow
for the computation of annuity for the widow shall not be more than 5
years less than the age of her employee husband.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-135.1) (from Ch. 108 1/2, par. 12-135.1)
Sec. 12-135.1.
Minimum annuity to surviving spouse.
Upon death of an
employee or annuitant occurring on or after January 1, 1976, who has
completed at least 20 years of service and has established accumulations
for such annuity by employee contributions as provided in Section 12-151
hereof, plus the prescribed concurrent contributions by the employer, the
annuity to the surviving spouse shall in no event be less than one-half of
the retirement annuity which had accrued to an employee if death occurs
while in service, or one-half of the amount of retirement annuity of the
retired employee on the date of death; provided that if the age of the
surviving spouse is less than 60 years at the date of death of the employee
or annuitant, the annuity to the spouse shall be reduced 1/2 of 1% for each
month that such age is less than 60 years.
If the minimum annuity survivor's benefit provided in this Section
exceeds the maximum survivor's benefit payable under Section 12-125 or
12-135, such minimum benefit shall be payable.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-135.2) (from Ch. 108 1/2, par. 12-135.2)
Sec. 12-135.2.
Increase in annuity to a surviving spouse.
An annuity
being paid to a surviving spouse on December 31, 1992, other
than a temporary annuity, shall be increased by 10% effective January 1,
1993 and shall thereafter be paid at the increased rate until
the termination of the annuity by death or other cause, subject to the
annual increases provided under Section 12-135.3.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-135.3) (from Ch. 108 1/2, par. 12-135.3)
Sec. 12-135.3.
Annual increases to surviving spouses.
On January
1 of each year, every surviving spouse, other than a surviving spouse who
is receiving a temporary annuity or who has received a surviving spouse
annuity for less than one full year, shall be entitled to a 3% annual
increase in his or her surviving spouse's annuity. The 3% annual increase
shall be based on the amount of annuity then payable, including any
increases previously received under this Section.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-136) (from Ch. 108 1/2, par. 12-136)
Sec. 12-136.
Spouses not entitled to a surviving spouse's annuity.
The
following described spouses and former spouses of employees shall not have any
right to a surviving spouse's annuity from the fund:
(a) the spouse of an employee who withdraws or | ||
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(b) the spouse of an employee who received a refund;
(c) the spouse of an employee who dies after | ||
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(d) the spouse of an employee or annuitant who | ||
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(e) the former spouse of any employee, inactive | ||
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A spouse's annuity shall terminate upon remarriage while under age 55. Such
termination shall be permanent and shall not be affected by any future change
in marital status.
(Source: P.A. 86-272; 87-1265.)
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(40 ILCS 5/12-136.1) (from Ch. 108 1/2, par. 12-136.1)
Sec. 12-136.1.
Optional reversionary annuity for surviving spouse.
An employee may elect to take a lesser retirement annuity reduced by not
more than 1/3 thereof and provide an optional reversionary annuity for a
surviving spouse derived from the actuarial value of his retirement
annuity; provided (a) a written notice of election by the employee to
provide such annuity is received by the board at least 1 year before the
date of his retirement, except that for an employee retiring prior to July
1, 1964, such notice must be given the board at least 60 days before his
retirement, (b) the amount of the optional reversionary annuity as
specified in the employee's notice of election is not less than $100
per month nor more than the employee's reduced retirement annuity, and (c)
death of the employee occurs after retirement.
The employee may revoke the election if notice thereof is received by
the board at least 1 year before the date the retirement annuity begins.
The death of the employee or death of the spouse prior to retirement of the
employee shall constitute an automatic revocation of the election.
No option shall be permitted in any case where the reversionary annuity
for a wife, when added to the widow's annuity provided herein, exceeds the
reduced retirement annuity payable to the employee.
The increases in the retirement annuity provided in Section 12-133.1
shall, as to a member so electing a reversionary annuity, be applicable to
the amount of the reduced retirement annuity.
An optional reversionary annuity shall begin on the day next following
the annuitant's death. If the beneficiary does not survive the annuitant,
no such annuity shall be payable.
(Source: P.A. 82-1008.)
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(40 ILCS 5/12-136.2) (from Ch. 108 1/2, par. 12-136.2)
Sec. 12-136.2.
Annuities to survivors of female employees.
All provisions of this Article relating to annuities or benefits to a
widow, minor children or other survivors of a male employee shall apply
with equal force to a surviving spouse, children or other eligible
survivors of a female employee, including credits for the several annuity
purposes, refunds and death benefits, without any modification or
distinction whatsoever.
(Source: P.A. 78-1129.)
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(40 ILCS 5/12-137) (from Ch. 108 1/2, par. 12-137)
Sec. 12-137. Eligibility for child's benefit. A benefit shall be granted to any child of the employee under 18 years
of age or any child under such age legally adopted by the employee whose death occurred under the
following conditions:
(a) from injury incurred in the performance of duty | ||
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(b) from any other cause after completion of at least | ||
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(c) after the employee withdraws from service | ||
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In the case of an employee whose death
occurs after withdrawal subsequent to age 55, if eligible for an annuity,
birth of a child must have occurred before the date of the employee's
latest withdrawal.
No annuity shall be payable to any child after such child's marriage.
The termination date of any child's annuity due to the attainment of age 18
or marriage shall be the due date of the last annuity payment for the
child, next preceding such due date with no proration for any period which
is less than a full month.
A posthumous child shall be regarded as a child of the employee entitled
to an annuity.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/12-138) (from Ch. 108 1/2, par. 12-138)
Sec. 12-138.
Amount of child's benefit.
A child's benefit effective upon
death of an employee occurring on or after July 1, 1983 shall
be $100 per month, if a parent survives; or $150
per month if no parent survives, or upon the death of the surviving parent;
provided that the combined benefits to a widow and children, or for children
only if there is no widow, shall not exceed 60% of final salary in any case
where the employee's death resulted from any cause other than an act of
duty, or 75% of such salary if death was the result of an act of duty. Where
such limitations are exceeded, the benefits to the widow and children shall
be reduced pro rata to conform to the applicable limitation.
If a parent survives, the child's benefit shall be paid to the parent if
the parent is providing support for the child, unless another person has
been appointed by a court as the guardian of the child. If no parent
survives, or if a surviving parent is not providing support for the child,
the child's benefit shall be paid to the legally appointed guardian.
(Source: P.A. 82-1008.)
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(40 ILCS 5/12-139) (from Ch. 108 1/2, par. 12-139)
Sec. 12-139.
Death benefit.
Effective July 1, 1955, a death
benefit is provided for employees and annuitants, in addition to other
annuities and benefits, payable upon death of the employee while (a) in
actual salary status or within 60 days thereof; (b) on an approved leave
of absence, without salary, if death occurs within 60 days from the date
he was in salary status; (c) receiving ordinary or duty disability
benefit; or within 60 days from the date of termination of such benefit
payments. Upon death of an annuitant the death benefit is payable if
the annuity was granted and became effective on or after the employee's
attainment of age 50. The death benefit is also payable upon death of an
employee whose annuity was determined at age 65 or over and the employee and
employer's contributions were transferred to the annuity reserve. No death
benefit is payable unless application for the annuity was made within 60 days
from the date of withdrawal from service.
This death benefit shall be payable to the surviving spouse as defined
in Section 12-123.1 of the employee or annuitant; but if no spouse
survives, payment shall be made according to the last written designation
filed with the board prior to death by the employee or annuitant. If
no such designation was filed, payment shall be made to the executor or
administrator of the estate of the employee or annuitant, or if the estate
is under the amount required under law for opening an estate, payment shall
be made to the person filing a small estate affidavit as prescribed by law.
Upon death on or after January 1, 1980 and before January 1, 1990,
prior to retirement on annuity, the amount of benefit shall be $2,000 payable
upon death of the employee during the first year of membership in the Fund,
$3,000 upon death during the second year of membership, $4,000 upon death
during the third year of membership, $5,000 upon death during the fourth year
of membership and $6,000 upon death during the fifth year of membership or
over. Upon the death of an employee on or after January 1, 1990, prior to
retirement on annuity, the amount of benefit shall be $3,000 upon death during
the first year of membership in the Fund, $4,000 upon death during the second
year of membership, $5,000 upon death during the third year of membership, and
$6,000 upon death during the fourth through tenth years of membership. Upon the
death, on or after January 1, 1983, of an employee prior to retirement with 10
or more years of service, the amount of benefit shall be $10,000.
Upon death of an employee while on retirement, occurring on or after
January 1, 1980, the benefit computed according to the foregoing
formula, subject to the aforesaid maximum, shall be reduced $1,500 for
each year or fraction of a year that the employee was on retirement,
provided that the minimum benefit payable on account of death of a
retirant shall be $1,500. Upon the death of an employee who retired on
or after January 1, 1983, with at least 10 years of service, the $10,000
benefit shall be reduced to $6,000 if death occurs during the first year
of retirement, and shall be reduced $1,500 for each year or fraction of
a year thereafter that the employee was retired, provided that the minimum
benefit payable shall be $1,500. Upon the death, on or after January 1, 1990,
of an employee while on retirement, the minimum benefit payable shall be
$3,000.
The board shall establish rules to govern the administration of this benefit.
(Source: P.A. 86-272; 87-1265.)
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(40 ILCS 5/12-140) (from Ch. 108 1/2, par. 12-140)
Sec. 12-140. Duty disability benefit. An employee who becomes
disabled as the direct result of injury incurred in the performance of an
act of duty and cannot perform the duties of the regularly assigned position,
is entitled to receive, while so disabled, a benefit of 75% of the salary
at the date when such duty disability benefits commence,
subject to the conditions hereinafter stated.
In the event an employee returns to service from any duty disability and
renders actual employment in pay status performing the duties of the regularly
assigned position for at least 60 days, and again becomes disabled, whether
due to the previous disability or a new disability, the salary to be used
in the computation of the benefit shall be the salary in effect at the date
of the last day of service prior to the latest disability.
The employee shall also receive a further benefit of $20 per month on account
of each eligible minor child as prescribed in Section 12-137, but the combined
benefit to employee and children shall not exceed the annual salary at the
date of such disability less the sums that would be deducted from his
salary for service annuity and spouse's service annuity.
The benefit prescribed herein shall be payable during disability until
the employee attains age 65, if disability is incurred before age 60, or
for a period of 5 years if disability
is incurred at age 60 or older. If the disability is incurred after age
65, this 5 year period may be reduced if such reduction can be justified on
the basis of actuarial cost data approved by the board upon the
recommendation of the actuary. At such time if the employee
remains disabled the employee may retire on a retirement annuity.
If an employee dies as the direct result of injury incurred
in the performance of an act of duty, or if death results from any cause
which is compensable under the Workers' Occupational Diseases
Act, a surviving spouse shall be entitled to a benefit (subject to the modifications
stated in Section 12-141) of 50% of the employee's salary as it was at the
date of injury resulting in death, until the date when the employee would
have attained age 65, if injury was incurred under age 60, or for a period
of 5 years if disability is incurred
at age 60 or older. After such
date, the spouse shall be entitled to receive the reversionary annuity that
would have been fixed had the employee continued in service at the rate
of salary received at the date of his injury resulting in death, until the
employee attained age 65 or as stated herein
and had then retired.
If a spouse remarries while under age 55 while in receipt of a benefit
under this section, the benefit shall terminate. Such termination shall
be final and shall not be affected by any change thereafter in his or her
marital status.
(Source: P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-141) (from Ch. 108 1/2, par. 12-141)
Sec. 12-141. Workers' compensation offset. If an employee or surviving
spouse and minor children receive any compensation or payment for specific
loss, disability or death under or by virtue of the Workers' Compensation Act
or the Workers' Occupational Diseases Act on account of disability or death
resulting from the performance of an act of duty, the benefit payable to them
under this Article shall be reduced by the amount of such compensation. If the
amount received as compensation exceeds such benefits, no payment shall be made
to the employee or surviving spouse until the expiration of the period during
which the benefit payments, accumulated at the rates herein stated, becomes
equal to the sum received as compensation; provided, that the commutation of
compensation to a lump sum basis as provided by the aforesaid Acts shall not
increase the benefits payable by the fund but such benefits shall be adjusted
to the amount of the compensation awarded under the aforesaid Acts prior to any
commutation of such compensation. No interest shall be considered in these
calculations.
If any employee or surviving spouse and children are denied
compensation by the park or city under those Acts, or if the park
or city fails to act, the denial or failure to act shall not be
considered final until the claim has been adjudicated by the Illinois Workers' Compensation
Commission.
(Source: P.A. 93-721, eff. 1-1-05.)
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(40 ILCS 5/12-142) (from Ch. 108 1/2, par. 12-142)
Sec. 12-142.
Ordinary disability benefit.
Only employees in active
status are entitled to ordinary disability. In order
that payments may begin from the date of absence, without pay, on account
of disability, an employee must file an application within 60 days from
the date when the employee was in salary status. If the filing
of the application is delayed beyond such period, the benefit shall begin
to accrue as of a date not more than 60 days prior to the date on which
the application is received by the board.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-143) (from Ch. 108 1/2, par. 12-143)
Sec. 12-143.
Amount of ordinary disability benefit.
Any employee disabled as the result of any cause other than
injury incurred in the performance of an act of duty, while in actual service
or in salary status within a period of 30 days from date of disability,
whose absence from service without salary extends for 8 days or more, shall
be entitled to an ordinary disability benefit. No benefit
shall be payable if the total period of disability is less than 8 days.
The benefit shall begin to accrue from the first day of such absence and
shall be payable during the period of disability, subject to the following
limitations: (1) the maximum cumulative period for which the benefit is
payable during the entire period of the employee's service shall be 1/4
of the employee's total credited service (excluding periods for which ordinary
disability benefits were paid) or 5 years, whichever is the lesser; (2)
if the disability is incurred after age 65, the 5 year period may be
reduced if such reduction can be justified on the basis of actuarial cost
data approved by the board upon the recommendation of the actuary.
The amount of benefit shall be 45% of the rate of salary of the employee
at the time ordinary disability benefits commence together
with the credits specified in Section 12-155; provided that if an employee
reenters service and renders more than 30 days of actual employment in pay
status performing the duties of his regularly assigned position, and again
becomes eligible for ordinary disability benefit, the rate of salary to
be used in the computation of his latest benefit shall be the rate in effect
on the date of commencement
of the last period of absence on account of disability.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-143.1) (from Ch. 108 1/2, par. 12-143.1)
Sec. 12-143.1.
Limitations on payment of ordinary or duty disability.
(a) An employee who has withdrawn from service, has been on a leave of
absence, is laid off or is out of pay status for any reason for more than
30 days, and who subsequently reenters service, shall not be entitled to
ordinary or duty disability payments unless the employee (1) qualified for
an ordinary or duty disability benefit before the absence from service, or
(2) renders at least 6 months of service subsequent to the date of the last reentry.
(b) An ordinary or duty disability benefit otherwise payable under
this Article shall be suspended for the duration of any period during which
the disabled employee receives salary or other compensation for personal
services (but not including any worker's compensation benefit) that exceeds
50% of the amount of the disability benefit.
A person receiving an ordinary or duty disability benefit shall provide
to the Board, upon request, a tax return, pay stub, or other documentation of earnings.
(Source: P.A. 86-272; 86-273; 86-1028.)
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(40 ILCS 5/12-144) (from Ch. 108 1/2, par. 12-144)
Sec. 12-144.
Medical examinations.
An employee in receipt of any disability benefit shall undergo a medical
examination periodically and in any event at least once each year by a
physician designated by the board. Should the board decide as the result of
such examination that the employee is no longer disabled for the
performance of duty, the board shall discontinue payment of benefits.
Should the employee refuse to submit to such examination, benefit payments
shall cease and written notice thereof shall be given the employer by the
board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-145) (from Ch. 108 1/2, par. 12-145)
Sec. 12-145.
Re-entry of former employee.
(a) Any former employee who received a refund who re-enters service
and remains in continuous service for a period of 2 years may have
restored to him all service and accumulations for annuity purposes for
all previous employment; provided he repays to the fund all amounts
received as refund, including regular interest from the dates of refund
to the date of repayment. Such repayment may be made in installments,
and must be fully paid within 1 year from the date of application of the
employee for the exercise of the right of repayment.
(b) Any employee entering service as a future entrant shall be
entitled to credit for service rendered an employer in any capacity
other than employee as herein defined; provided, that such service was
rendered immediately preceding his entry into the new service of the
employer. All amounts to the credit of the employee for annuity purposes
in any annuity and benefit fund to which such employee was a contributor
in such other capacity shall be transferred to this fund and used for
the respective annuity purposes herein provided.
(c) Whenever any former employee shall have reentered the service
after July 1, 1919, or after July 1, 1937 in the case of an employee of
the board, and completes 5 years of continuous service following such
reentry, but who was not in the service of the employer on July 1, 1919
or July 1, 1937, as the case may be, so as to be classed as a present
employee, such employee having had service prior to said date, shall
receive credit for such prior service in accordance with the provisions
of "The 1919 Act", upon completion of said 5 years of continuous
service. Such employee shall thereupon be entitled to the classification
of a present employee.
(d) Any employee who shall not withdraw the amounts to which he
shall have a right to refund, or shall not have entered upon annuity,
shall have a right to have all such amounts and all other amounts to his
credit for annuity purposes on the date of his withdrawal retained to
his credit and improved by regular interest until the date of
retirement. These amounts are to be used for annuity purposes
for his benefit and the benefit of any person who may have any right to
annuity through him because of his service according to the provisions
of this Article in the event he shall subsequently re-enter service.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-146) (from Ch. 108 1/2, par. 12-146)
Sec. 12-146.
Re-entry of annuitant.
When any person receiving an annuity
shall re-enter service, the annuity previously granted to such person and any
annuity fixed for his wife shall be cancelled. Such employee shall be
credited, in accordance with the applicable actuarial tables, with sums
sufficient to provide annuities equal in amount to those cancelled for
the employee and wife, as of their respective ages on the date of the
employee's re-entrance into service. Employee Contributions as salary
deductions shall be made from the
time of such re-entry into service.
Upon subsequent retirement, new annuities based upon the amounts to the
credit of the employee for annuity purposes, and the entire period of
his service, shall be fixed for the employee and his wife.
In the case of an employee described in the foregoing paragraph,
whose wife for whom annuity was fixed prior to such re-entry died before
he re-entered service, any sum to the credit of the employee for widow's
service annuity and widow's prior service annuity at the time annuity
for such wife was fixed shall not be credited to the employee when he
re-enters service, and no such sum or any part thereof shall be used to
provide a widow's annuity for any wife of the employee who has married
the employee after such re-entry.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-147) (from Ch. 108 1/2, par. 12-147)
Sec. 12-147.
Refunds of employee contributions.
(1) (a) Any employee who withdraws from service before | ||
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Any employee who withdraws from service after | ||
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Any employee who withdraws from service on or after | ||
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The refund shall consist of the accumulation from | ||
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(b) If a male employee has no spouse when his or her | ||
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(c) Whenever an employee and surviving spouse have | ||
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(d) If a surviving spouse remarries before age 55 and | ||
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(2) Upon death of an employee or an employee annuitant, refunds,
accrued annuity payments, accrued ordinary and duty disability benefits,
or other accrued benefits, shall be payable as follows in the order
designated:
(a) to the surviving spouse of the deceased employee | ||
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(b) if there is no surviving spouse, or if upon the | ||
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(c) if there is no such surviving spouse, or if upon | ||
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Probate of the estate of an employee may be waived when and in the
manner provided by statute. Payment to the person appointed by a court
of competent jurisdiction to administer the testate or intestate estate
of a deceased employee or employee annuitant, or to the person filing a
small estate affidavit as prescribed by law, shall be a complete
discharge of the board's obligations under this Article.
The board may at its discretion defer payment of refunds for a period
not to exceed one year. If at the end of the year suit is pending
to determine the employee's right to retain his or her former position,
payment of refunds shall be suspended until final disposition of the suit.
Any employee who receives a refund shall forfeit all rights to annuity
for himself or herself and for any one who may have any right to
annuity through him or her, and credit for service rendered by him or
her before refund was made. If he or she re-enters service, his or
her status shall be that of an employee who enters service for the first
time but he or she may regain the credits so forfeited by fulfilling
the requirements specified elsewhere in this Article.
The board is hereby authorized to write off on its books of account
any pending claim subject to the provisions of this section which
remains unpaid for 2 years or more from the date of death of the
employee or annuitant; provided, however, that when a valid claim is
subsequently filed to the satisfaction of the board in the case of any
account so written off the amount shall be paid in the manner prescribed
herein.
(3) Upon the death of an employee while in service or an employee who
had withdrawn from service and was not eligible to receive a pension, the
refund to the beneficiary or estate shall consist of the accumulation from
employee contributions for service annuity, annual increase in retirement
annuity, surviving spouse's service annuity, and interest deficiency, if any,
without interest for employee contributions for the period on and after August
1, 1947. For the period prior to August 1, 1947, the refund of employee
contributions shall be improved by interest at 4% per annum only. Contributions
by the employer for military or naval service shall not be included in any
refund. Credits in lieu of salary deductions during ordinary or duty
disability shall be refundable.
(Source: P.A. 86-272; 86-1488; 87-1265.)
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(40 ILCS 5/12-148) (from Ch. 108 1/2, par. 12-148)
Sec. 12-148.
Credits of employer contributions.
Refunds of accumulation from contributions of the employer for service
annuity and widow's service annuity, and also for prior service annuity and
widow's prior service annuity after contributions for such purposes are
completed shall be made to the employer in the form of a credit to reduce
the contributions otherwise required in subsequent years.
(Source: P.A. 77-319.)
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(40 ILCS 5/12-149)
(from Ch. 108 1/2, par. 12-149)
Sec. 12-149. Financing. (a) The board of park commissioners of any such
park district shall annually levy a tax (in addition to the taxes now
authorized by law) upon all taxable property embraced in the district,
at the rate which, when added to the employee contributions under this
Article and applied to the fund created
hereunder, shall be sufficient to provide for the purposes of this
Article in accordance with the provisions thereof. Such tax shall be
levied and collected with and in like manner as the general taxes of
such district, and shall not in any event be included within any
limitations of rate for general park purposes as now or hereafter
provided by law, but shall be excluded therefrom and be in addition
thereto. The amount of such annual tax to and including the year 1977
shall not exceed .0275% of the value, as equalized or assessed by the
Department of Revenue, of all taxable property embraced
within the park district, provided that for the year 1978, and for each
year thereafter, the amount of such annual tax shall be at a rate on the
dollar of assessed valuation of all taxable property that will produce,
when extended, for the year 1978 the following sum: 0.825 times the
amount of employee contributions during the fiscal year 1976; for the
year 1979, 0.85 times the amount of employee contributions during the
fiscal year 1977; for the year 1980, 0.90 times the amount of employee
contributions during the fiscal year 1978; for the year 1981, 0.95 times
the amount of employee contributions during the fiscal year 1979; for the year
1982, 1.00 times the amount of employee contributions during the fiscal year
1980; for the year 1983, 1.05 times the amount of contributions made on behalf
of employees during the fiscal year 1981; and for the year 1984 and each year
thereafter through the year 2019, an amount equal to 1.10 times the employee contributions during the
fiscal year 2-years prior to the year for which the applicable tax is levied.
Beginning in levy year 2020, and in each year thereafter, the levy shall not exceed the amount of the Park District's total required contribution to the Fund for the next payment year, as determined under this subsection. Beginning payment year 2021, the Park District's required annual contribution shall be as follows: For payment year 2021, the Park District's required annual contribution to the Fund shall be one-fourth of the amount, as determined by an actuary retained by the Fund, equal to the sum of (i) the Park District's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined by an actuary retained by the Fund, using a 35-year period starting on December 31, 2020 with the entry age normal actuarial cost method, that is sufficient to bring the total actuarial assets of the Fund up to 100% of the total actuarial accrued liabilities of the Fund by the end of 2055. For payment year 2022, the Park District's required annual contribution to the Fund shall be one-half of the amount, as determined by an actuary retained by the Fund, equal to the sum of (i) the Park District's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined by an actuary retained by the Fund, using a 35-year period starting on December 31, 2021 with the entry age normal actuarial cost method, that is sufficient to bring the total actuarial assets of the Fund up to 100% of the total actuarial accrued liabilities of the Fund by the end of 2056. For payment year 2023, the Park District's required annual contribution to the Fund shall be three-fourths of the amount, as determined by an actuary retained by the Fund, equal to the sum of (i) the Park District's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined by an actuary retained by the Fund, using a 35-year period starting on December 31, 2022 with the entry age normal actuarial cost method, that is sufficient to bring the total actuarial assets of the Fund up to 100% of the total actuarial accrued liabilities of the Fund by the end of 2057. For payment years 2024 through 2058, the Park District's required annual contribution to the Fund shall be the amount, as determined by an actuary retained by the Fund, equal to the sum of (i) the Park District's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined by an actuary retained by the Fund, using a 35-year period starting on December 31, 2023 with the entry age normal actuarial cost method, that is sufficient to bring the total actuarial assets of the Fund up to 100% of the total actuarial accrued liabilities of the Fund by the end of 2058. For payment year 2059 and each year thereafter, the Park District's required annual contribution to the Fund shall be the amount, as determined by an actuary retained by the Fund, if any, needed to bring the total actuarial assets of the Fund up to 100% of the total actuarial accrued liabilities of the Fund, using the entry age normal actuarial cost method, as of the end of the year. In making determinations under this subsection, any actuarial gains or losses from investment returns that differ from the expected investment returns incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following the fiscal year. As used in this Section, "payment year" means the year immediately following the levy year. (b) In addition to the contributions required under the other provisions of this Article, no later than November 1, 2021 the employer shall contribute $40,000,000 to the Fund. The additional employer contributions required under this subsection (b) are intended to decrease the unfunded liability of the Fund and shall not decrease the amount of the employer contributions required under the other provisions of this Article. The additional employer contributions made under this subsection (b) may be used by the Fund for any of its lawful purposes. (c) As used in this Section, the term "employee contributions" means contributions
by employees for retirement annuity, spouse's annuity, automatic increase in
retirement annuity, and death benefit.
In making required contributions under this Section, the employer may, in lieu of levying all or a portion of the tax required under this Section, deposit an amount not less than the required amount of employer contributions derived from any source legally available for that purpose. (d) In respect to park district employees, other than policemen, who are
transferred to the employment of a city by virtue of the "Exchange of
Functions Act of 1957", the corporate authorities of the city shall
annually levy a tax upon all taxable property embraced in the city, as
equalized or assessed by the Department of Revenue, at such rate per
cent of the value of such property as shall be sufficient, when added
to the amounts deducted from the salary or wages of such employees, to
provide the benefits to which such employees, their dependents and
beneficiaries are entitled under the provisions of this Article. The
park district shall not levy a tax hereunder in respect to such
employees. The tax levied by the city under authority of this Article
shall be in addition to and exclusive of all other taxes authorized by
law to be levied by the city for corporate, annuity fund or other
purposes.
(e) All moneys accruing from the levy and collection of taxes, pursuant
to this section, shall be remitted to the board by the employers as soon
as they are received. Where a city has levied a tax pursuant to this
Section in respect to park district employees transferred to the
employment of a city, the treasurer of such city or other authorized
officer shall remit the moneys accruing from the levy and collection of
such tax as soon as they are received. Such remittances shall be made
upon a pro rata share basis, whereby each employer shall pay to the
board such employer's proportionate percentage of each payment of taxes
received by it, according to the ratio which its tax levy for this fund
bears to the total tax levy of such employer.
(f) Should any board of park commissioners included under the provisions
of this Article be without authority to levy the tax provided in this
Section the corporation authorities (meaning the supervisor, clerk and
assessor) of the town or towns for which such board shall be the board
of park commissioners shall levy such tax.
(g) Employer contributions to the Fund may be reduced by $5,000,000 for
calendar years 2004 and 2005.
(Source: P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-149.5) Sec. 12-149.5. Delinquent contributions; deduction from payments of State funds to the employer. If the employer fails to transmit to the Fund contributions required of it under this Article by December 31st of the year in which such contributions are due, the Fund may, after giving notice to the employer, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in payment year 2016, deduct and remit to the Fund the certified amounts from payments of State funds to the employer. The State Comptroller may not deduct from any payments of State funds to the employer more than the amount of delinquent payments certified to the State Comptroller by the Fund.
(Source: P.A. 99-8, eff. 7-9-15.) |
(40 ILCS 5/12-150) (from Ch. 108 1/2, par. 12-150)
Sec. 12-150. Contributions by employees for service
annuity. (a) From each payment of salary to a present employee beginning
August 4, 1961, and prior to September 1, 1971, there shall be deducted
as contributions for service annuity 6% of such payment. Beginning
September 1, 1971, the deduction shall be 6 1/2% of salary. These
contributions shall continue until the amounts thus deducted will
provide an accumulation, at regular interest, at least equal to the
amount that would be provided on such date from employee contributions,
assuming regular interest to such date, if such employee had been
contributing in accordance with the provisions of "The 1919 Act" and
this Article from the beginning of his service and the salary of the
employee during his prior service was the same as it was on July 1,
1919, or on July 1, 1937 in the case of an employee of the board.
(b) From each payment of salary to a future entrant beginning August
4, 1961, and prior to September 1, 1971, there shall be deducted as
contributions for service annuity 6% of such payment. Beginning
September 1, 1971, the deduction shall be 6 1/2% of salary.
Beginning January 1, 1990, the deduction shall be 7% of salary, except that the deduction shall be 9% of salary for a person who first becomes an employee on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of Section 1-160.
(c) For service rendered prior to August 4, 1961, the rates of
contribution by employees for service annuity shall be as follows: July
1, 1919 to July 20, 1947, inclusive, 4% of salary; July 21, 1947 to
August 3, 1961, inclusive, 5% of salary.
For the period from July 1, 1919, to August 4, 1961 such deductions
for a present employee shall continue until such date as the amounts
deducted will provide an accumulation at least equal to that which would
be provided on such date, assuming regular interest to such date, from
deductions from salary of such employee if such employee had been under
the provisions of "The 1919 Act" and this Article from the beginning of
his service and the salary of such employee during his period of prior
service was the same as it was on July 1, 1919 or on July 1, 1937 in the
case of an employee of the board.
(d) Any employee shall have the option to contribute for service
annuity an amount, together with regular interest, equal to the
difference between the amount he had accumulated in the fund on June 30,
1947, from contributions at the rate of 4% of salary, together with
regular interest, and the amount he would have accumulated, together
with regular interest, if he had made contributions at the rate of 5% of
salary. All such contributions shall be subject to salary limitations
and other conditions in effect prior to July 1, 1947. Upon making such
contribution the employer of such employee shall contribute in the ratio
of 2 to 1 with such employee.
(Source: P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-150.1) (from Ch. 108 1/2, par. 12-150.1)
Sec. 12-150.1.
The employer may pick up the employee contributions required
by Sections 12-150, 12-151, 12-151.1, 12-151.2 and 12-152 for salary earned
after December 31, 1981. If employee contributions are not picked up, the
amount that would have been picked up under this amendatory Act of 1980
shall continue to be deducted from salary. If contributions are picked up
they shall
be treated as employer contributions in determining tax treatment under
the United States Internal Revenue Code; however, the employer shall continue
to withhold Federal and state income taxes based upon these contributions
until the Internal Revenue Service or the Federal courts rule that pursuant
to Section 414(h) of the United States Internal Revenue Code, these contributions
shall not be included
as gross income of the employee
until such time as they are distributed or made available.
The employer shall pay these employee contributions from the same source
of funds which is used in paying salary to the employee. The employer
may pick up these contributions by a reduction in the cash
salary of the employee or by an offset against a future salary increase
or by a combination of a reduction in salary and offset against a future
salary increase. If employee contributions are picked up they shall be
treated for all purposes of this Article 12 in the same manner and to the
same extent as employee contributions made prior to the date picked up.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-150.5)
Sec. 12-150.5. (Repealed).
(Source: P.A. 98-622, eff. 6-1-14. Repealed by P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-151) (from Ch. 108 1/2, par. 12-151)
Sec. 12-151.
Contributions by employees for widow's service annuity.
Beginning July 1, 1919, subject to the provisions of Section 12-184
for transferred employees, from each payment of salary to a male
employee, there shall be deducted as contributions 1% of salary to
provide for a widow's service annuity. Such deduction shall continue
until the employee withdraws from service or retires.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-151.1) (from Ch. 108 1/2, par. 12-151.1)
Sec. 12-151.1.
Contributions by employees towards annual increase
in retirement annuity. Beginning July 1, 1965, there shall be deducted 1/2
of 1% of salary in the case of each employee as his contribution for the
annual increase in the basic retirement annuity; provided that beginning
January 1, 1976, the rate of deduction shall be 1% of salary. Such deduction
shall continue during the entire time the employee is in service and in
receipt of salary.
(Source: P.A. 79-478.)
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(40 ILCS 5/12-151.2) (from Ch. 108 1/2, par. 12-151.2)
Sec. 12-151.2.
Contributions by female employees.
(a) Effective as of October 1, 1974, each female employee shall
contribute at the same rates as a
male employee for widow's annuity or
other benefits, to the end that like credits may be established and
maintained for both male and female employees for all purposes of this
Article with respect to annuities, benefits, contribution rates, refunds
and other provisions of this Article.
(b) Any female employee shall have the option of making
contributions for the aforesaid purposes covering the period prior to
October 1, 1974, and receiving pension credits therefor, including the
concurrent credits from city contributions. Such contributions shall
include interest at the regular interest rate from the
dates such contributions
should have been made from the beginning of their service to the dates
of payment to the end that equal credits may be provided for all
employees under this Article.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-152) (from Ch. 108 1/2, par. 12-152)
Sec. 12-152.
Contributions by employer for service annuity and widow's service
annuity.
(a) In the case of any present employee or future entrant, and for an
employee of the board, the employer shall contribute for service annuity
beginning August 4, 1961, 1.50 times the employee's contribution for this
purpose.
(b) For widow's service annuity, the employer shall contribute beginning
August 4, 1961, in the case of any employee, 2.75 times the employee's
contribution for this purpose.
(c) For service prior to August 4, 1961, the employer's contributions
for any employee shall be a percentage of salary as follows:
For service annuity: July 1, 1919 to July 13, 1927, inclusive, 8% of
salary; July 14, 1927 to July 20, 1947, inclusive, 11% of salary; July 21,
1947 to August 3, 1961, inclusive, 10% of salary.
For widow's service annuity: July 1, 1919 to July 13, 1927, inclusive,
2% of salary; July 14, 1927 to August 3, 1961, inclusive, 2 3/4% of salary.
In determining the amounts to be contributed by an employer on behalf of
an employee for service annuity and widow's service annuity in conformity
with the percentage prescribed for such annuities, the contributions to be
made by the employee during any fiscal year shall be accumulated at regular
interest to the end of such year, and the employer shall make his
contributions plus such interest, with additional regular interest between
the end of such fiscal year and the dates when contributions by the
employer are made.
(Source: P.A. 77-319.)
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(40 ILCS 5/12-153) (from Ch. 108 1/2, par. 12-153)
Sec. 12-153.
Contributions for death benefit.
To defray the cost of the death benefit provided in Section 12-139,
each employee in service shall make an additional contribution during the
period prior to retirement, in the form of a deduction from salary, at a
rate estimated by the board to be sufficient to provide, in any fiscal
year, 1/2 of the amount necessary to meet the requirements for such benefit
payments. For the fiscal year July 1, 1955 to June 30, 1956, the rate of
employee contribution shall be 3/10 of 1% of salary. The employer shall
make contributions for this benefit through the established tax levy in an
amount equal to the contributions made by the employees.
On and after July 1, 1956, the rate of employee contribution, and the
amount of employer contributions shall be fixed by the board for each
fiscal year, prior to the beginning of such year, based upon the experience
of the fund in the payment of benefits hereunder. Employees receiving ordinary
or duty disability benefit and persons receiving a retirement annuity shall not be
required to make contributions towards this benefit.
An employee in a position involving part-time employment shall make contributions in
accordance with the rules of the board.
(Source: P.A. 79-478.)
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(40 ILCS 5/12-154) (from Ch. 108 1/2, par. 12-154)
Sec. 12-154.
Contributions by employer for ordinary disability benefit.
The amount necessary to provide the ordinary disability benefit shall be
paid by the employer. Effective January 1, 1959, in respect to employees of
a park district other than park policemen, who were transferred to the
employment of a city by virtue of the "Exchange of Functions Act of
1957", the city to which such employees are transferred shall pay the
amount necessary for the purposes of the ordinary disability benefit.
The board shall notify the board of park commissioners and the corporate
authorities of the city to which employees of a park district have been
transferred under the "Exchange of Functions Act of 1957" of the amount
necessary for said purpose, and such amount, when approved by the board of
park commissioners, or by the corporate authorities of the city in respect
to such transferred employees, shall be included in the annual tax levy as
provided in this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-155) (from Ch. 108 1/2, par. 12-155)
Sec. 12-155.
Contributions by employer while employee disabled.
The employer of any employee who is receiving ordinary disability
benefit or duty disability benefit shall contribute amounts ordinarily
contributed by such employee and employer for service annuity and
widow's service annuity and the annual increase in retirement annuity
during any period for which disability benefit is paid to the employee,
and such amounts shall be credited to the employee in lieu of salary deductions.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-155.1) (from Ch. 108 1/2, par. 12-155.1)
Sec. 12-155.1.
Contributions by employer towards annual increase in
retirement annuity. The employer shall contribute for the annual increase
in retirement annuity an amount representing the remainder required to
finance such increase.
(Source: P.A. 79-478.)
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(40 ILCS 5/12-155.5)
Sec. 12-155.5. (Repealed).
(Source: P.A. 98-622, eff. 6-1-14. Repealed by P.A. 102-263, eff. 8-6-21.)
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(40 ILCS 5/12-156) (from Ch. 108 1/2, par. 12-156)
Sec. 12-156.
Board created.
A board composed of 7 members shall constitute a Board of Trustees
authorized to carry out the provisions of this Article. Such Board of
Trustees shall be known as the Retirement Board of the Park Employees' and
Retirement Board Employees' Annuity and Benefit Fund.
Three members of such board shall be appointed by the board of park
commissioners for terms of 3 years. Four members of such board shall be
elected from among the employees for terms of 4 years who shall serve until
their respective successors have been elected and have qualified.
The members of the board of a fund holding office at the time this
Article becomes effective, including elected and appointed members, shall
continue in office until the expiration of their respective terms or
appointments and until their respective successors are appointed or elected
and have qualified. When the term of any appointed member expires, the
board of park commissioners shall appoint a successor.
The board shall conduct regular elections annually under rules which
shall be adopted by it for the election of successors to members of the
board whose terms shall expire. All employees who are included under the
provisions of this Article shall be entitled to vote. The ballots shall be
of secret character.
Each person elected or appointed to membership upon the board shall take
a written oath of office that he will, so far as it devolves upon him,
diligently and honestly administer the affairs of the office to which he
was elected or appointed and that he will not knowingly violate or wilfully
permit to be violated any of the provisions of law applicable under this
Article. Such oath shall be subscribed by the person making it, and
certified to by the officer before whom it is taken, and deposited with the
custodian of the fund. Anyone after appointment or election shall be deemed
to have qualified for membership on the board when such certificate is
deposited with the custodian of the fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-157) (from Ch. 108 1/2, par. 12-157)
Sec. 12-157.
Board vacancy.
If a vacancy shall occur in the membership of the board, due to death,
resignation or other cause, said vacancy shall be filled by appointment. If
the vacant membership be of appointive character, appointment for the
unexpired portion of such term shall be made by the board of park
commissioners, and if it be of elective character, it shall be filled by
appointment by the elective members of the board, provided that the person
appointed to the vacancy of an elective member shall be an employee. The
persons so appointed to elective membership shall serve until an employee
who shall be elected to serve for the unexpired portion of such term shall
be chosen. Such election shall be held concurrently with and in the same
manner as the next regular annual election.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-158) (from Ch. 108 1/2, par. 12-158)
Sec. 12-158.
Board officers.
The board shall elect from its
membership a president, a vice president and a secretary, all of whom
shall serve without salary, except that the secretary, if not an
employee as defined herein, may be compensated during his tenure in the
office of secretary in an amount not to exceed $2,400 per year.
(Source: P.A. 81-697.)
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(40 ILCS 5/12-159) (from Ch. 108 1/2, par. 12-159)
Sec. 12-159.
Board's powers and duties.
The board shall have the powers and duties stated in Section 12-160 to
12-169, inclusive, in addition to the other powers and duties provided in
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-160) (from Ch. 108 1/2, par. 12-160)
Sec. 12-160.
To determine service credits.
To determine the length of service of each present employee rendered
prior to the date when he comes under the provisions of "The 1919 Act" or
this Article, including all service rendered to any employer as defined
herein; to require each employee to file with the board a detailed
statement of all such service rendered by him and to prescribe rules and
regulations for the filing of such statements; to fix the period for which
such employee shall receive credit for prior service from such information
as is available, if the employee fails to file the aforesaid statement, or
if the board is unable to verify such statement; to certify such statement
and issue a certificate to the employee stating the length of prior service
allowed.
Such certificate shall be final and conclusive as to length of prior
service and amount of credit unless modified by the board, either of its
own volition or upon application of the employee, within one year from the
date when the certificate or a modified certificate is issued.
All leaves of absence without pay shall be excluded in computing prior
service, and leaves of absence on full or part pay shall be included in
computing the prior service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-161) (from Ch. 108 1/2, par. 12-161)
Sec. 12-161.
To supervise contributions.
To see that all employee contributions by way of salary deductions
and contributions by each employer are made, and that all funds
collected are deposited when collected with the custodian of the fund;
and to certify to each employer the amount to be deducted from the salary
of each employee.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-162) (from Ch. 108 1/2, par. 12-162)
Sec. 12-162.
To have exclusive original jurisdiction.
To have exclusive original jurisdiction in all matters relating to or
affecting the fund, including, in addition to all other matters, all claims
for annuities, benefits or refunds under this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-162.5) Sec. 12-162.5. To subpoena witnesses and compel the production of records. To issue subpoenas to compel the attendance of witnesses to testify before it and to compel the production of documents and records upon any matter concerning the Fund, including, but not limited to, in conjunction with: (1) a disability claim; (2) an administrative review proceeding; (3) an attempt to obtain information to assist in the | ||
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(4) obtaining any and all personal identifying | ||
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(5) the determination of the death of a benefit | ||
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(6) a felony forfeiture investigation. The fees of witnesses for attendance and travel shall be the same as the fees of witnesses before the circuit courts of this State and shall be paid by the party seeking the subpoena. The Board may apply to any circuit court in the State for an order requiring compliance with a subpoena issued under this Section. Subpoenas issued under this Section shall be subject to applicable provisions of the Code of Civil Procedure. The president or other members of the Board may administer oaths to witnesses. (Source: P.A. 103-424, eff. 8-4-23; 103-552, eff. 8-11-23.) |
(40 ILCS 5/12-163) (from Ch. 108 1/2, par. 12-163)
Sec. 12-163.
To see that duties of employer are performed.
To see that all the other duties under this Article of each employer are
being performed, and in the event that an employer fails to perform any
duties imposed on said employer under the provisions of this Article to
take such steps as in its judgment seem advisable to enforce compliance by
the employer with the provisions of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-164) (from Ch. 108 1/2, par. 12-164)
Sec. 12-164.
To appoint custodian.
To appoint annually a custodian of the fund; and to deposit all moneys
received or accruing to the fund with the custodian.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-165) (from Ch. 108 1/2, par. 12-165)
Sec. 12-165.
To manage fund.
To have exclusive control and management of all moneys, securities and
other property of said fund; and to defray the total cost of administration
of this Article by means of the tax levy authority provided herein.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-166) (from Ch. 108 1/2, par. 12-166)
Sec. 12-166.
To invest money.
To invest and reinvest the moneys of the
fund subject to the requirements and restrictions set forth in this Article
and in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115.
No investments shall be purchased or sold or in any manner hypothecated
except by the action of the board duly entered in the record of its
proceedings.
The board may hold, purchase, sell, assign, transfer or dispose of any
of the securities and investments in which any of the moneys of the fund
or the proceeds of those investments have been invested.
The board shall have the authority to enter into any agreements and to
execute any documents that it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate
ownership by the fund. The board may direct the registration of
securities or the holding of interests in real property in the name of the
fund or in the name of a nominee created for the express purpose of
registering securities or holding interests in real property by a
national or state bank or trust company authorized to conduct a trust
business in the State of Illinois. The board may hold title to interests
in real property in the name of the fund or in the name of a title
holding corporation created for the express purpose of holding title to
interests in real property.
Investments shall be carried at cost or at a value determined
in accordance with generally accepted accounting principles and accounting
procedures approved by the board.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act.
Those requirements shall be applicable only at the time of investment and
shall not require the liquidation of any investment at any time.
The board of trustees of any fund established under this Article may
not transfer its investment authority, nor transfer the assets of the fund
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the board resolution authorizing such transfer is submitted
for approval to the contributors and retirees of the fund at elections held
not less than 30 days after the adoption of such resolution by the board,
and such resolution is approved by a majority of the votes cast on the question
in both the contributors election and the retirees election. The election
procedures and qualifications governing the election of trustees shall govern
the submission of resolutions for approval under this paragraph, insofar
as they may be made applicable.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/12-166.1) (from Ch. 108 1/2, par. 12-166.1)
Sec. 12-166.1.
Participation in commingled investment funds-Transfer of
investment functions and securities.
(a) The retirement board may invest in any commingled investment fund or
funds established and maintained by the Illinois State Board of Investment
under the provisions of Article 22A of this Code. The book value of all
commingled equity participations plus the book value of other stock
investments owned by this system shall not exceed the maximum permissible
percentage rate for equity investments prescribed in Section 12-166. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The retirement board may, by resolution duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the Fund of every kind and character. Upon completion
of such transfer, the authority of the retirement board to make investments
shall terminate. Thereafter, all investments of the reserves of the Fund
shall be made by the Illinois State Board of Investment in accordance with
the provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the retirement board.
(Source: P.A. 78-645.)
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(40 ILCS 5/12-166.2) (from Ch. 108 1/2, par. 12-166.2)
Sec. 12-166.2.
To lend securities.
The Board may lend securities owned
by the Fund to a borrower upon such terms and conditions as may be mutually
agreed in writing. The agreement shall provide that during the period of
the loan the Fund shall retain the right to receive, or collect from the
borrower, all dividends, interest rights, and any distributions to which
the Fund would have otherwise been entitled. The borrower shall deposit
with the Fund as collateral for the loan cash, U.S. Government securities,
or letters of credit equal to the market value of the securities at the
time the loan is made and shall increase the amount of collateral if and
when the Fund requests an additional amount because of subsequent increases
in the market value of the securities.
The period for which the securities may be loaned shall not exceed one
year, and the loan agreement may specify earlier termination by either party
upon mutually agreed conditions.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-167) (from Ch. 108 1/2, par. 12-167)
Sec. 12-167. To keep records, books and prepare reports.
To keep a record of all its proceedings which shall be open to
inspection by the public; to keep such books and records as are necessary
for the transaction of its business; and to prepare a report, as of the last day
of each fiscal year, setting forth the income and disbursements of the fund for
the year, and the amount of its assets and liabilities at the close of the
year. Such statement shall include, among other things, the following
information:
(a) the total of the reserves on all annuities being | ||
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(b) the total of the liabilities of the employer for | ||
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(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-168) (from Ch. 108 1/2, par. 12-168)
Sec. 12-168. To have an audit.
To have an annual audit of the books, records and reserves of the fund
as of the last day of each fiscal year, by a certified public accountant. A copy of
the report of such audit shall be filed with the board of park
commissioners, and a synopsis thereof shall be prepared for public
distribution.
(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-169) (from Ch. 108 1/2, par. 12-169)
Sec. 12-169. To appoint employees.
To appoint such actuarial, legal, medical, clerical and other employees
as may be necessary in the administration of the fund and fix their
compensation.
One or more actuaries shall be employed with duty to determine the
amount of money necessary to be provided under this Article, and to assist
the board in preparing the annual statement as of the last day of each fiscal year, and
to certify to the correctness thereof.
(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-170) (from Ch. 108 1/2, par. 12-170)
Sec. 12-170.
Custodian of fund.
All payments from the fund shall be made by the custodian of the fund
only, and only upon warrant of or voucher signed by the president or
vice-president of the board and countersigned by the secretary of the
board. No warrant or voucher shall be drawn except by order of the board
duly entered in the record of its proceedings.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-171) (from Ch. 108 1/2, par. 12-171)
Sec. 12-171.
Money which may be held on deposit.
The board may keep as an available sum for the purpose of making
payments for annuities and other benefits, such an amount as shall be
estimated by the board as being necessary to meet the current disbursements
for a period not to exceed 90 days. Such sum shall be kept on deposit in
any bank or savings and loan association in this State organized under
the laws thereof or under the laws
of the United States, or with any trust company incorporated under the laws
of this State; provided said bank, savings and loan association or trust
company shall furnish adequate
security for said sum; and provided further that the sum so deposited shall
not exceed 25% of the paid-up capital and surplus of said bank, savings
and loan association or trust
company.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public agencies",
approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
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(40 ILCS 5/12-171.1) (from Ch. 108 1/2, par. 12-171.1)
Sec. 12-171.1.
Records.
The board shall maintain adequate accounting
records that reflect the financial condition of the fund, and such
additional data as are necessary for required calculations, actuarial
valuations, and operation of the fund.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-177) (from Ch. 108 1/2, par. 12-177)
Sec. 12-177.
Employee accounts.
The amounts contributed by employees for
service annuity and spouse's service annuity shall be credited to this account;
also all amounts contributed by the employer in lieu of deductions from salary
in cases of ordinary or duty disability.
An individual account shall be kept with each employee. As contributions by
or on behalf of the employee are made, each such account shall be credited with
the amounts thereof. At least once each year each account shall be credited
with regular interest.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-183) (from Ch. 108 1/2, par. 12-183)
Sec. 12-183. Annual actuarial valuation.
An actuarial valuation shall be made annually of the liabilities and
reserves for present and prospective annuities and benefits, and beginning January 1, 2013
a general investigation shall be made and shall be completed
every 5 years thereafter of the operating experience of the fund as to
mortality, disability, retirement, marital status of employees, withdrawal
from service without right to annuity, investment earnings and other
factors of actuarial criteria.
Upon the basis of the annual actuarial valuation and quinquennial
actuarial investigations, the actuary shall recommend the tables to be used
in the annual valuations and in current operations including the prescribed
rate of interest, and shall advise the board on any matters of actuarial
character affecting the financial condition of the fund and its operations.
(Source: P.A. 97-973, eff. 8-16-12.)
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(40 ILCS 5/12-185) (from Ch. 108 1/2, par. 12-185)
Sec. 12-185.
Duties of employer.
It shall be the duty of each employer hereunder to:
(a) notify each person to whom this Article shall apply before
employing him of his duties and obligations under this Article as a
condition of his employment;
(b) notify the board of the employment of new employees, removals,
withdrawals, deaths and changes in salary of employees, setting forth
the dates upon which such employments, removals, withdrawals, deaths and
changes in salaries occurred;
(c) furnish such other information to the board as the board may
reasonably require hereunder in the discharge of its duties;
(d) deduct from the salary
of each employee, for each and every
payroll period, such amounts as shall be required under the provisions
of this Article. Each employer shall certify to the treasurer of said
employer, on each and every payroll, a statement as voucher for the
amount so deducted, and shall send a duplicate of such
statement to the
board. The treasurer of each employer, on receipt of such voucher for
deductions from salaries of employees, shall
transmit to the board the
amounts specified in such voucher.
(e) Keep such records as the board may require hereunder.
(Source: P.A. 81-1536.)
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(40 ILCS 5/12-186) (from Ch. 108 1/2, par. 12-186)
Sec. 12-186.
No commissions or compensation.
No member of the board, nor any one connected with the board, shall have
any interest, direct or indirect, in the gains or profits of any investment
made by such board, nor as such, directly or indirectly, receive any pay or
emoluments for his services. Nor shall any such person as an agent or
partner of others borrow any funds or deposits, or in any manner use the
same, except to make such current and necessary payments as are authorized
by the board. Nor shall any member of said board, or anyone connected with
said board, become an endorser or surety or become in any manner an obligor
for moneys loaned by or borrowed of any such board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-187) (from Ch. 108 1/2, par. 12-187)
Sec. 12-187.
Condition of employment.
Any person included as an employee
as defined in this Article, or any person who shall hereafter be included
as an employee, shall by such employment accept the provisions of this Article
and thereupon become a contributor in accordance with the provisions hereof.
The provisions of this Article shall become a condition of employment of
such person and part
of any contract of employment entered into by and with any such person.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-188) (from Ch. 108 1/2, par. 12-188)
Sec. 12-188.
Employees under legal disabilities.
In the event that an employee is adjudicated to be a person under legal
disability by
a court having jurisdiction to so determine and a guardian
is appointed
by a court having jurisdiction so to do, such guardian may, with the
approval of the court, execute such documents, including resignations from
the service, as may be necessary for the protection and best interests of
the employee.
(Source: P.A. 83-706.)
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(40 ILCS 5/12-189) (from Ch. 108 1/2, par. 12-189)
Sec. 12-189.
Retirement Systems Reciprocal Act.
The "Retirement Systems
Reciprocal Act", being Article 20 of this Code, as now enacted or hereafter
amended, is hereby adopted and made a part of this Article. Where there is a
direct conflict in the provisions of that Act and the specific provisions of
this Article, the latter provisions shall prevail; except that the provisions
of this Article shall be applied without taking into account the provisions of
Section 12-130 regarding commencement of benefits at age 50 unless all the
systems to which the member is applying allow for a service retirement annuity
payable at age 50.
(Source: P.A. 87-1265.)
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(40 ILCS 5/12-190) (from Ch. 108 1/2, par. 12-190)
Sec. 12-190.
Annuities etc.
Exempt.
(a) All pensions, annuities, refunds or disability benefits granted under
this Article, and every portion thereof, are exempt from any State or
municipal tax, and exempt from attachment or garnishment process and shall
not be seized, taken, subjected to, detained or levied upon by virtue of
any judgment, or any process or proceeding whatsoever issued out of or by
any court for the payment and satisfaction in whole or in part of any debt,
damage, claim, demand or judgment against a pensioner, annuitant, refund
applicant or other beneficiary hereunder.
(b) No pensioner, annuitant, applicant for refund, disability
beneficiary or other beneficiary has a right to transfer or assign his or
her pension, annuity, refund or disability benefit or any part thereof,
either by mortgage or otherwise, except that an annuitant may direct that a
monthly payment be made to the group health or hospital insurance plan
administered by his or her former employer or by the pension fund
established under this Article.
(c) Whenever an annuity, pension, refund or disability benefit is
payable to a minor or a person adjudged to be under legal disability, the
board, in its discretion, when in the apparent interest of such minor or
person under legal disability, may waive guardianship proceedings and pay
such money to the person providing for or caring for such minor and to the
spouse or blood relative providing or caring for such person under legal
disability. In the event the person under legal disability has no spouse
or blood relatives willing to provide or care for him or her, and for whom
no estate guardian has been appointed, and who is confined to a Medicare approved,
State certified nursing home or a publicly owned and operated nursing home,
hospital or mental institution, the board may pay such benefit due such
person to the head of the nursing home, hospital or mental institution for
deposit to such person's trust fund account maintained by the
certified nursing home, hospital or institution, if such trust fund
accounts are authorized or recognized by law. The acceptance of
the payment and the endorsement of the payment by the person caring for or
providing for a minor or a person under legal disability shall be an
absolute discharge of the board's and the fund's liability in respect to
the amount so paid.
(d) Whenever an employee, pensioner, annuitant, applicant for refund or
disability beneficiary disappears or the person's whereabouts are unknown
and it cannot be ascertained whether or not the person is alive, there
shall be paid to the person's spouse the amount which would be payable to
the spouse in the event that the person died on the date of disappearance.
In the event the missing person returns, or is proved to be alive, the
amount previously paid to the spouse shall be charged against any moneys
payable to the person under this Article as though such payment to the
spouse had been an allowance out of the moneys payable to such person.
(Source: P.A. 86-1488.)
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(40 ILCS 5/12-190.1) (from Ch. 108 1/5, par. 12-190.1)
Sec. 12-190.1.
Payment of an annuity other than direct.
The board, at
the written direction and request of any annuitant, may, solely as an
accommodation to the annuitant, pay the amounts due the annuitant to a bank,
savings and loan association or any other financial institution insured by
an agency of the federal government, for deposit to his or her account, or
to a bank or trust company for deposit in a trust established by the
annuitant for his or her benefit with such bank, savings and loan
association or trust company. An annuitant may withdraw such direction at any time.
(Source: P.A. 86-1488.)
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(40 ILCS 5/12-190.2) (from Ch. 108 1/2, par. 12-190.2)
Sec. 12-190.2.
Overpayment; deduction.
The amount of any overpayment,
of any pension or benefit granted under this Article, due to fraud,
misrepresentation or error, may be deducted from future payments or refunds
made to the recipient of the overpayment. The board also may
withhold payment of any benefits or pensions payable under this Article
where any type of lawsuit or Workers' Compensation suit has been
instituted until the specific liability of the board and the fund for
payments due is established by the adjudication or dismissal of the suit.
Any such action of the board shall relieve and release the board and the
fund from any liability for any moneys deducted or withheld.
(Source: P.A. 86-1488.)
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(40 ILCS 5/12-190.3) (from Ch. 108 1/2, par. 12-190.3)
Sec. 12-190.3. Fraud. Any person who knowingly makes any false
statement or falsifies or permits to be falsified any record of this Fund
in any attempt to defraud the Fund is guilty of a Class A misdemeanor.
None of the benefits provided for in this Article shall be paid to any person who is convicted of any misdemeanor or felony relating to or arising out of or in connection with any attempt to defraud the Fund. This Section shall not operate to impair any contract or vested right previously acquired under any law or laws continued in this Article, nor to preclude the right to a refund. (Source: P.A. 96-1466, eff. 8-20-10.)
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(40 ILCS 5/12-191) (from Ch. 108 1/2, par. 12-191)
Sec. 12-191. Felony conviction.
None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as an employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants entering service subsequent to July 11, 1955 shall
be deemed to have consented to the provisions of this section as a
condition of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/12-192) (from Ch. 108 1/2, par. 12-192)
Sec. 12-192.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the retirement board
provided for under this Article. The term "administrative decision" is as
defined in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/12-193) (from Ch. 108 1/2, par. 12-193)
Sec. 12-193.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/12-194) (from Ch. 108 1/2, par. 12-194)
Sec. 12-194.
Effective Date of Certain Provisions.
The changes made
by this amendatory Act of 1989 pertaining to the date of fixation of
annuities and the period of time for which disability benefits are payable
shall be effective July 1, 1988.
(Source: P.A. 86-272.)
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(40 ILCS 5/12-195) Sec. 12-195. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after the effective date of this amendatory Act of the 98th General Assembly. (b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section. (c) The Public Act enacting a new benefit increase must identify and provide for payment to the Fund of additional funding at least sufficient to fund the resulting annual increase in cost to the Fund as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection (c). The State Actuary shall analyze whether adequate additional funding has been provided for the new benefit increase. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection (c) is null and void. If the State Actuary determines that the additional funding provided for a new benefit increase under this subsection (c) is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(Source: P.A. 102-263, eff. 8-6-21.) |
(40 ILCS 5/Art. 13 heading) ARTICLE 13. METROPOLITAN WATER RECLAMATION
DISTRICT RETIREMENT FUND
(Source: P.A. 95-331, eff. 8-21-07.) |
(40 ILCS 5/Art. 13 Pt. I heading) Part I.
General Provisions.
|
(40 ILCS 5/13-101) (from Ch. 108 1/2, par. 13-101)
Sec. 13-101.
Creation of Fund.
In each sanitary district organized
under the Metropolitan Water Reclamation District Act, a Sanitary District
Employees' and Trustees' Annuity and Benefit Fund shall be created, set
apart, maintained and administered, in the manner prescribed in this
Article for the benefit of the employees herein designated and their
beneficiaries. Beginning January 1, 1992, the Fund shall be known as the
Metropolitan Water Reclamation District Retirement Fund.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-102) (from Ch. 108 1/2, par. 13-102)
Sec. 13-102.
Amendatory Act of 1991.
This amendatory Act of 1991
is intended to clarify and restate the provisions of this Article 13
and to make certain substantive changes. This amendatory Act shall
not be applied to deprive any person of eligibility for an annuity
or benefit, to reduce the annuity or benefit, or to deprive a
person of any right to which that person would have been entitled
prior to the effective date of this amendatory Act of 1991, if
the person from whose employment the annuity, benefit or right
derives was an employee prior to that date.
(Source: P.A. 87-794.)
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(40 ILCS 5/Art. 13 Pt. II heading) Part II.
Definitions.
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(40 ILCS 5/13-201) (from Ch. 108 1/2, par. 13-201)
Sec. 13-201.
Terms defined.
The terms used in this Article shall have
the meanings ascribed to them in this Part II, except when the context
otherwise indicates.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-202) (from Ch. 108 1/2, par. 13-202)
Sec. 13-202.
"Fund":
The Metropolitan Water Reclamation District
Retirement Fund, formerly known as the "Sanitary District Employees' and
Trustees' Annuity and Benefit Fund" which was heretofore created for the
benefit of the employees herein designated and their beneficiaries.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-203) (from Ch. 108 1/2, par. 13-203)
Sec. 13-203.
"Employer":
The Metropolitan Water Reclamation District
of Greater Chicago, a unit of local government organized pursuant to the
provisions of the Metropolitan Water Reclamation District Act, hereinafter
sometimes referred to as Water Reclamation District or District. With
respect to those persons employed by the Retirement Board, the Retirement
Board is the Employer.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-204) (from Ch. 108 1/2, par. 13-204)
Sec. 13-204.
"Employee":
(a) Any employee of the Water Reclamation
District appointed to the classified civil service under the Metropolitan
Water Reclamation District Act or any employee exempt from civil service
under that Act, including any person absent from such position due to
assignment to any other position of employment for the District; (b) any
temporary employee of the District; (c) all appointed officers or acting
officers of the District; (d) any employee of the Retirement Board; and (e)
any member of the Board of Commissioners of the District who elects to
participate in the Fund within 90 days after becoming a member.
No person shall be an employee hereunder whose duties will not ordinarily
permit 120 days of service during one calendar year.
A member of the Civil Service Board of the District who is first appointed
to that office on or after the effective date of this amendatory Act of 1997
is not, by virtue of holding that office, an "employee" for the purposes of
this Article.
(Source: P.A. 90-12, eff. 6-13-97.)
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(40 ILCS 5/13-205) (from Ch. 108 1/2, par. 13-205)
Sec. 13-205.
"Retirement Board" or "Board":
The Board of Trustees of
the Metropolitan Water Reclamation District Retirement Fund.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-206) (from Ch. 108 1/2, par. 13-206)
Sec. 13-206.
"Service":
Any employment for the District or the Board,
excluding overtime or extra service for which an employee is entitled to
receive salary.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-207) (from Ch. 108 1/2, par. 13-207)
Sec. 13-207.
"Salary":
The salary paid to an employee for service to the
District or to the Board, including salary paid for vacation and sick leave and
any amounts deferred under a deferred compensation plan established under this
Code, but excluding (1) payment for unused vacation or sick leave, (2)
overtime pay, (3) termination pay, and (4) any compensation
in the form of benefits other than the salary.
(Source: P.A. 90-12, eff. 6-13-97.)
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(40 ILCS 5/13-208) (from Ch. 108 1/2, par. 13-208)
Sec. 13-208. "Average final salary": The highest average monthly salary
as calculated by accumulating the salary for the highest 520
consecutive paid days of service within the last 10 years of service immediately
preceding the date of retirement and dividing by 24. If the employee is paid for any portion of a work day, the fraction of the day worked and the salary for that fraction of the day shall be counted in accordance with the Fund's administrative rules.
(Source: P.A. 101-339, eff. 8-9-19.)
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(40 ILCS 5/13-209) (from Ch. 108 1/2, par. 13-209)
Sec. 13-209.
"Disability":
A physical or mental incapacity of an
employee to perform assigned duties.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-209.5) Sec. 13-209.5. Licensed health care professional. "Licensed health care professional" means any individual who has obtained a license through the Department of Financial and Professional Regulation under the Medical Practice Act of 1987 or under the Physician Assistant Practice Act of 1987 or an advanced practice registered nurse licensed under the Nurse Practice Act.(Source: P.A. 103-523, eff. 1-1-24.) |
(40 ILCS 5/13-210) (from Ch. 108 1/2, par. 13-210)
Sec. 13-210.
"Withdraw" or "withdrawal":
Discharge, termination or
resignation of an employee.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-211) (from Ch. 108 1/2, par. 13-211)
Sec. 13-211.
"Assets":
The total value of cash, securities and other
property held. Bonds shall be held at their amortized book values. Other
investments shall be carried at book value in accordance with accounting
procedures approved by the Board. Adjustments shall not be made in
investment valuations for ordinary current market price fluctuation.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-212) (from Ch. 108 1/2, par. 13-212)
Sec. 13-212.
"Age":
Age at last birthday preceding the date on which
ascertainment of age is necessary to any computation under this Article.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-213) (from Ch. 108 1/2, par. 13-213)
Sec. 13-213.
"Contributions":
Any moneys paid or payable to
the Fund by the District or by any employee, or any salary deduction hereunder.
(Source: P.A. 92-53, eff. 7-12-01.)
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(40 ILCS 5/13-214) (from Ch. 108 1/2, par. 13-214)
Sec. 13-214.
"Accumulated employee contributions":
The amounts,
including interest credited thereon, contributed by the employee for
retirement and surviving spouse's annuity to the date of the employee's
withdrawal or death.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-215) (from Ch. 108 1/2, par. 13-215)
Sec. 13-215. "Retirement annuity": A benefit payable as an annuity for
service as an employee. The annuity shall be payable in equal monthly
installments for life, except as otherwise provided in this Article,
beginning in the month after the effective date of the annuity, which shall not be prior to the date of withdrawal nor more than one
year prior to the date of the employee's application for the annuity. A
pro rata amount of the annuity shall be paid for part of a month when the
annuity begins after the first day of the month or ends before
the last day of the month.
Notwithstanding the above, all retirement annuity payments first payable on or after January 1, 2008, shall begin the first of the month following the effective date of retirement.
Effective January 1, 2008, benefits are payable for the full month if the annuitant was alive on the first day of the month.
(Source: P.A. 95-586, eff. 8-31-07.)
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(40 ILCS 5/13-216) (from Ch. 108 1/2, par. 13-216)
Sec. 13-216. "Surviving spouse's annuity": The amount payable as a
surviving spouse annuity commencing on the date of the employee's or
retiree's death. The annuity shall be payable in equal monthly
installments for life, except as otherwise provided in this Article,
in the month after the effective date of the annuity. A pro rata
amount of the annuity shall be paid for part of a month when the annuity
begins after the first day of the month or ends before the last day of
the month.
Notwithstanding the above, all surviving spouse annuity payments first payable on or after January 1, 2008, shall begin the first of the month following the employee's or annuitant's date of death.
Effective January 1, 2008, benefits are payable for the full month if the annuitant was alive on the first day of the month.
(Source: P.A. 95-586, eff. 8-31-07.)
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(40 ILCS 5/Art. 13 Pt. III heading) Part III.
Annuities and Benefits.
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(40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
Sec. 13-301. Retirement annuity; eligibility. Any employee who
withdraws from service and meets the age and service requirements and other
conditions set forth in subsections (a), (b), (c) or (d) hereof is entitled
to receive a retirement annuity.
(a) Withdrawal on or after age 60. Any employee, upon withdrawal from
service on or after attainment of age 60 and having at least 5 years of
service, is entitled to a retirement annuity.
(b) Withdrawal on or after attainment of minimum retirement
qualifications and prior to
age 60.
(1) Any employee, upon withdrawal from service on or | ||
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(2) Any employee who withdraws on or after attainment | ||
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(3) Any employee who withdraws from service on or | ||
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(c) Withdrawal prior to minimum retirement age. Any employee,
upon withdrawal from service prior to age 55 (age 50 if the employee
first entered service before June 13,
1997) and having at least 10 years of service, shall become entitled to a
retirement annuity upon attainment of age 55 (age 50 if the employee
first entered service before June 13,
1997) or, at the option of the employee, at any time thereafter, subject to
the other requirements of this Article.
(d) Withdrawal while disabled. Any employee having at least 5 years of
service who has received ordinary disability benefits on or after January
1, 1986 for the maximum period of time hereinafter prescribed, and who
continues to be disabled and withdraws from service, shall be entitled to a
retirement annuity. In the case of an employee who enters service after
the effective date of this amendatory Act of the 94th General Assembly, the
required 5 years of service is exclusive of service credit described in
Section 13-313. The age and service conditions as to eligibility for
such annuity shall be waived as to the employee, but the early retirement
discount under Section 13-302(b) shall apply. If the employee is under age
55 on the date of withdrawal, the retirement annuity shall be computed by
assuming that the employee is then age 55 and then reduced to its actuarial
equivalent at his attained age on that date according to applicable
mortality tables and interest rates. The retirement annuity shall not be
payable for any period prior to the employee's attainment of age 55 during
which the employee is able to return to gainful employment.
Upon the employee's death while in
receipt of a retirement annuity, a surviving spouse or minor children shall
be entitled to receive a surviving spouse's annuity or child's annuity
subject to the conditions hereinafter prescribed in Sections 13-305 through
13-308.
(Source: P.A. 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
Sec. 13-302. Computation of retirement annuity.
(a) Computation of annuity. An employee who withdraws from service on
or after July 1, 1989 and who has met the age and service requirements and
other conditions for eligibility set forth in Section 13-301 of this
Article is entitled to receive a retirement annuity for life equal to 2.2%
of average final salary for each of the first 20 years of service, and 2.4%
of average final salary for each year of service in excess of 20. The
retirement annuity shall not exceed 80% of average final salary.
(b) Early retirement discount. If an employee retires prior to
attainment of age 60 with less than 30 years of service, the annuity
computed above shall be reduced by 1/2 of 1% for each full month between
the date the annuity begins and attainment of age 60, or each full month by
which the employee's service is less than 30 years, whichever is less.
However, where the employee first enters service after June 13, 1997 and does not have at least 10
years of service exclusive of credit under Article 20, the annuity computed
above shall be reduced by 1/2 of 1% for each full month between the date the
annuity begins and attainment of age 60.
(c) Rule of 80 - Early retirement without discount. For an employee
who
retires on or after January 1, 2003 but on or before December 31, 2007, if the
employee is eligible for a retirement annuity under Section 13-301 and has at
least
10 years of service exclusive of credit under Article 20 and if at the date of
withdrawal the employee's age when added to the number of years of his or her
creditable
service equals at least 80, the early retirement discount in subsection (b) of
this
Section does not apply. For purposes of this Rule of 80, portions of years
shall be
considered in whole months.
An employee who has terminated employment with the employer under this
Article prior to the effective date of this amendatory Act of the 92nd General
Assembly and subsequently re-enters service must remain in service with the
employer under this Article for at least 2 years after re-entry during the
period
beginning on January 1, 2003 and ending on December 31, 2007 to be entitled to
early retirement without discount under this subsection (c).
In the case of an employee who retires under the terms of Article 20,
eligibility
for early retirement without discount under this subsection (c) shall be based
upon
the employee's age and service credit at the time of withdrawal from the final
fund.
(c-1) Early retirement without discount; retirement after June 29,
1997 and before January 1, 2003. An employee
who (i) has attained age 55 (age 50 if the employee
first entered service before June 13, 1997), (ii) has at least 10 years of
service exclusive
of credit under Article 20, (iii) retires after June 29, 1997 and before
January 1, 2003, and (iv) retires within 6 months of the last day for which
retirement contributions were required, may elect at the time of application to
make a one-time employee
contribution to the Fund and thereby avoid the early retirement reduction
specified in subsection (b). The exercise of the election shall also obligate
the employer to make a one-time nonrefundable contribution to the Fund.
The one-time employee and employer contributions shall be a percentage
of the retiring employee's highest full-time annual salary, calculated as the
total amount of salary included in the highest 26 consecutive pay periods as
used in the average final salary calculation, and based on the employee's age
and service at retirement. The employee rate shall be 7% multiplied by the
lesser of the following 2 numbers: (1) the number of years, or portion thereof,
that the employee is less than age 60; or (2) the number of years, or portion
thereof, that the employee's service is less than 30 years. The employer
contribution shall be at the rate of 20% for each year, or portion thereof,
that the participant is less than age 60.
Upon receipt of the application, the Board shall determine the corresponding
employee and employer contributions. The annuity shall not be payable
under this subsection until both the required contributions have been received
by the Fund. However, the date the contributions are received shall
not be considered in determining the effective date of retirement.
The number of employees who may retire under this Section in any year may
be limited at the option of the District to a specified percentage of those
eligible, not lower than 30%, with the right to participate to be allocated
among those applying on the basis of seniority in the service of the employer.
An employee who has terminated employment and subsequently re-enters
service shall not be entitled to early retirement without discount under
this subsection unless the employee continues in service for at least 4
years after re-entry.
(d) Annual increase. Except for employees retiring and receiving a term
annuity, an employee who retires on or after July 1, 1985 but before July 12,
2001, shall,
upon the first payment date following the first anniversary of the date of
retirement, have the monthly annuity increased by 3% of the amount of the
monthly annuity fixed at the date of retirement.
Except for employees retiring and receiving a term annuity, an employee who
retires on or after July 12, 2001 shall, on the first day of the month in which the first
anniversary of the date of retirement occurs, have the monthly annuity
increased by 3% of the amount of the monthly annuity fixed at the date of
retirement.
The monthly annuity shall be increased by an additional 3% on the same date
each year thereafter. Beginning January 1, 1993, all annual increases payable
under this subsection (or any predecessor provision, regardless of the date
of retirement) shall be calculated at the rate of 3% of the monthly annuity
payable at the time of the increase, including any increases previously granted
under this Article.
Any employee who (i) retired before July 1, 1985 with at least 10 years of
creditable service, (ii) is receiving a retirement annuity under this Article,
other than a term annuity, and (iii) has not received any annual increase under
this subsection, shall begin receiving the annual increases provided under this
subsection (d) beginning on the next annuity payment date following June
13, 1997.
(e) Minimum retirement annuity. Beginning January 1, 1993, the
minimum monthly retirement annuity shall be $500 for any annuitant having
at least 10 years of service under this Article, other than a term
annuitant or an annuitant who began receiving the annuity before attaining
age 60. Any such annuitant who is receiving a monthly annuity of less than
$500 shall have the annuity increased to $500 on that date.
Beginning January 1, 1993, the minimum monthly retirement annuity shall
be $250 for any annuitant (other than a term or reciprocal annuitant or an
annuitant under subsection (d) of Section 13-301) having less than 10 years
of service under this Article, and for any annuitant (other than a term
annuitant) having at least 10 years of service under this Article who began
receiving the annuity before attaining age 60. Any such annuitant who is
receiving a monthly annuity of less than $250 shall have the annuity
increased to $250 on that date.
Beginning August 1, 2001
(and without regard to whether the annuitant was in service on or after that
effective date), the
minimum monthly retirement annuity for any annuitant having at least 10 years
of service, other than an annuitant whose annuity is subject to an early
retirement discount, shall be $500 plus $25 for each year of service in excess
of 10, not to exceed $750 for an annuitant with 20 or more years of service.
In the case of a reciprocal annuity, this minimum shall apply only if the
annuitant has at least 10 years of service under this Article, and the amount
of the minimum annuity shall be reduced by the sum of all the reciprocal
annuities payable to the annuitant by other participating systems under Article
20 of this Code.
Notwithstanding any other provision of this subsection, beginning on the
first annuity payment date following July 12, 2001, an employee who retired
before August 23, 1989
with at least 10 years of service under this Article but before attaining age
60 (regardless of whether the retirement annuity was subject to an early
retirement discount) shall be entitled to the same minimum monthly retirement
annuity under this subsection as an employee who retired with at least 10
years of service under this Article and after attaining age 60.
Notwithstanding any other provision of this subsection, beginning on the
first day of the month following the month in which this amendatory Act of the
94th General Assembly takes effect (and without regard to whether the annuitant
was in service on or after that effective date), an employee who retired on or
after August 23, 1989 with at least 10 years of service under this Article but
before attaining age 60 (regardless of whether the retirement annuity was
subject to an early retirement discount), except for an employee who is eligible for an annuity under Section 13-301(d), shall be entitled to the same minimum
monthly retirement annuity under this subsection as an employee who retired
with at least 10 years of service under this Article and after attaining age
60.
(Source: P.A. 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
Sec. 13-303. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may elect a lesser
amount of annuity and provide, with the actuarial value of the amount by
which his annuity is reduced, a reversionary annuity for a wife, husband,
parents, children, brothers or sisters. The election may be exercised by
filing a written designation with the Board prior to retirement, and may be
revoked by the employee at any time before retirement. The death of the
employee prior to retirement shall automatically void the election.
(b) The death of the designated reversionary annuitant prior to the
employee's retirement shall automatically void the election, but, if death
of the designated reversionary annuitant occurs after retirement, the
reduced annuity being paid to the retired employee annuitant shall remain
unchanged and no reversionary annuity shall be payable.
No reversionary annuity shall be paid if the employee dies before the
expiration of 730 days from the date the written designation
was filed with the board, even though the employee retired and was
receiving a reduced annuity.
(c) An employee exercising this option shall not reduce the annuity by
more than 25%, nor elect to provide a reversionary annuity of less than $100
per month. No such option shall be permitted if the reversionary annuity
for a surviving spouse, when added to the surviving spouse's annuity
payable under this Article, exceeds 85% of the reduced annuity payable to the employee.
(d) A reversionary annuity shall begin on the day following the death of
the annuitant, with the first payment due and payable one month later, and
shall continue monthly thereafter until the death of the reversionary
annuitant. Beginning on the first day of the month following the month in which this amendatory Act of the 96th General Assembly takes effect, a reversionary annuity shall begin on the first of the month following the annuitant's death and is payable for the full month if the reversionary annuitant is alive on the first day of the month.
(e) The increases in annuity provided in Section 13-302(d) shall, as to
an employee so electing a reduced annuity, relate to the amount of reduced
annuity, and such lesser amount shall constitute the annuity on which such
increases shall be based.
(f) For determining the actuarial value under this option of the employee's
annuity and the reversionary annuity, the Fund shall use an actuarial table
recommended by the Fund's actuarial consultant and approved by the Board of
Trustees.
(Source: P.A. 96-251, eff. 8-11-09.)
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(40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
Sec. 13-304.
Optional plan of additional benefits and contributions
made through December 31, 2002.
(a) While this plan is in effect, an eligible employee may establish
additional optional credit for additional benefits by electing in writing
at any time to make additional optional contributions. The employee may
discontinue making the additional optional contributions at any time by
notifying the Fund in writing.
Employees first entering service after June 30, 1997 are not eligible to
participate in the plan established under this Section.
(b) Additional optional contributions for the additional optional
benefits shall be as follows:
(1) For service after the option is elected, an | ||
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(2) For service before the option is elected, an | ||
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(c) Additional optional benefit shall accrue for all periods of eligible
service for which additional contributions are paid in full. The additional
benefit shall consist of an additional 1% of average final salary for each
year of service for which optional contributions have been paid, to be
added to the employee's retirement annuity as otherwise computed under this
Article. The calculation of these additional benefits shall be subject to
the same terms and conditions as are used in the calculation of the
retirement annuity under this Article. The additional benefit shall be
included in the calculation of the automatic annual increase in annuity
under Section 13-302(d), and in the calculation of surviving spouse's
annuity where applicable. However, no additional benefits will be granted
which produce a total annuity greater than the applicable maximum
established for that type of annuity in this Article. The total additional
optional benefit that may be received under this Section is 15%
of average final salary.
(d) Refunds of additional optional contributions shall be made on the
same basis and under the same conditions as provided under Section 13-601.
(e) Optional contributions shall be accounted for in a separate Optional
Contribution Reserve.
(f) The tax levy computed under Section 13-503 shall be based on employee
contributions including the amount of optional additional employee
contributions.
(g) Service eligible under this Section may include only service as an
employee as defined in Section 13-204, and subject to Section 13-401 and
13-402. No service granted under Section 13-801 or 13-802 shall be
eligible for optional service credit. No optional service credit may be
established for any military service, or for any service under any other
Article of this Code. Optional service credit may be established for any
period of disability paid from this Fund, if the employee makes additional
optional contributions for such period of disability.
(h) This plan of optional benefits and contributions shall not apply to
service prior to withdrawal rendered by any former employee who re-enters
service unless such employee renders not less than 36 consecutive months of
additional service after the date of re-entry.
(i) The effective date of this optional plan of additional benefits and
contributions shall be the date upon which approval was received from the
Internal Revenue Service, July 31, 1987.
(j) This plan of additional benefits and contributions shall expire
December 31, 2002. No additional contributions may be made after that date,
and no additional benefits will accrue after that date.
(k) The maximum optional benefits for current and prior service for which
an employee can make contributions in a single year shall be limited to 15
years of service in 1997 and before; 9 years of service in 1998; 6 years of
service in 1999; and 3 years of service in 2000, 2001, and 2002. No person
may establish additional optional benefits under this Section for more than 15
years of service.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/13-304.1)
Sec. 13-304.1.
Optional plan of additional benefits and contributions
made January 1, 2003 through December 31, 2007.
(a) While this plan is in effect, an employee may establish optional
additional credit toward additional benefits for eligible service by making
an irrevocable written election to make additional contributions as authorized
in this Section. An employee may begin to make additional contributions under
this Section, via payroll deduction, no earlier than the first pay period of
the calendar year in which the employee fulfills the 10-year service
requirement described in subsection (g). The additional contributions of
4% of salary shall be paid to the Fund on the same basis and under the same
conditions as contributions required under Section 13-502.
(b) For service before an irrevocable option is elected, but within the same
calendar year, an additional contribution may be made of 4% of the salary for
the applicable period of service, plus interest from the date of service to
the date of contribution at a rate equal to the higher of 8% per annum or the
actuarial investment return assumption used in the Fund's most recent annual
actuarial statement. All payments for past service must be paid within the
calendar year in which the service was earned; except that a person who has
withdrawn from service and is eligible for a retirement annuity under Section
13-301 may pay the additional contribution for past service within the calendar
year of withdrawal within the 30 days after withdrawal from service, as long
as payment is made in full before the retirement annuity commences and before
December 31, 2007. Nothing in this Section may be construed to allow an
additional optional contribution to be made on the account of a deceased
employee.
(c) The maximum additional benefit for current service for which an
employee may make contributions under this Section in a single year is
limited to one year of service in each of 2003, 2004, 2005, 2006, and 2007.
The total additional benefit that may be accumulated under this Section,
including any additional benefit accumulated under a prior optional benefit
plan, is 12% of average final salary at retirement.
The additional benefit shall accrue for all periods of eligible service
for which additional contributions have been paid in full in accordance with
this Section, subject to the applicable limitations on maximum annuity.
The additional benefit shall consist of an additional 1% of average final
salary for each year of service for which optional contributions have been
paid, to be added to the employee's retirement annuity as otherwise computed
under this Article. The calculation of these additional benefits shall be
subject to the same terms and conditions as are used in the calculation of
the retirement annuity under this Article. The additional benefit shall be
included in the calculation of the automatic annual increase in annuity under
Section 13-302(d) and in the calculation of surviving spouse's annuity, where
applicable. However, no additional benefit may be granted which produces a
total annuity greater than the applicable maximum established for that type of
annuity in this Article.
(d) Refunds of additional optional contributions made in accordance with
the provisions and limitations of this Section shall be made on the same basis
and under the same conditions as are provided under Section 13-601. Any refund
of contributions that exceed the limits specified in this Section shall be made
in accordance with established Fund policy.
(e) The additional contributions shall be accounted for in a separate
Optional Contribution Reserve.
(f) The tax levy computed under Section 13-503 shall be based on employee
contributions and the amount of optional additional employee contributions, as
provided in that Section.
(g) The service eligible for optional additional contributions under this
Section is limited to service as an employee as defined in Section 13-204,
and subject to Sections 13-401 and 13-402, but excluding service credited
under subsections 13-401(a)4 and 13-401(d). Service granted under Section
13-801 or 13-802 is not eligible for optional additional contributions.
Eligible service is further limited to service rendered during or after the
calendar year in which the employee reaches 10 years of service as defined
under Section 13-402, exclusive of any credit under Article 20.
Service eligible for optional additional contributions under this Section
includes any period of disability paid from this Fund that would have been
eligible service if the employee were in active service rather than disabled.
The additional contributions for a period of disability shall be calculated
as 4% of the salary that the employee would have received if he or she had been
in active service during the applicable period of disability, plus interest
at a rate equal to the higher of 8% per annum or the actuarial investment
return assumption used in the Fund's most recent annual actuarial statement,
compounded annually, from the date of the service to the date of payment.
The contribution must be paid to the Fund no later than 3 months after the
employee returns to service from disability, and in any event prior to December
31, 2007.
(h) The minimum period for which an employee may make an irrevocable
election to make additional contributions shall be 26 consecutive pay periods,
unless the employee first accumulates the maximum optional credit as described
in subsection (c) of this Section. The maximum period for which an employee
may make irrevocable elections for additional contributions shall be from the
date of election through the last pay period eligible for contributions under
this Section.
(i) This plan of additional benefits and contributions expires on December
31, 2007. No additional contributions may be made after that date, and no
additional benefits will accrue after that date.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305)
Sec. 13-305. Surviving spouse's annuity; eligibility. A surviving spouse
who was married to an employee on the date of the employee's death
while in service, or was married to an employee on the date of withdrawal from
service and remained married to that employee until the employee's
death, shall be entitled to a surviving spouse's annuity payable for
life. However, the annuity shall not be payable to the surviving spouse of (1)
an employee who withdraws from service
before attaining the minimum retirement age unless the deceased employee had at least 10 years of service, or at least 5
years of service if the employee was eligible for an annuity upon attainment of age 62 pursuant to Section 13-301(b) or had been receiving a retirement annuity
pursuant to Section
13-301(d), or (2) an employee not described in item (1) who first enters
service on or after the effective date of this amendatory Act of 1997 and who
has been employed as an employee for (i) less than 36 months from the date of
the employee's original entry into service or (ii) less than 12 months from the
employee's date of latest re-entry into service; except as otherwise provided
in Section 13-306(a) for an employee whose death arises out of or in the course
of the employee's service to the employer.
Notwithstanding any other provision of this Section and notwithstanding the forfeiture of rights provisions under subsection (e) of Section 13-601, surviving spouse annuity eligibility or eligibility for alternative survivor's benefits, if applicable, shall be extended to the spouse or civil union partner of an annuitant who retired prior to June 1, 2011 and received a refund of surviving spouse annuity contributions as provided in subsection (b) of Section 13-601 if the annuitant (i) repaid the surviving spouse annuity contributions under subsection (b-5) of Section 13-601, (ii) could not enter into either a civil union or marriage recognized in the State of Illinois prior to that date, and (iii) became: (A) a party to a civil union or a party to a legal | ||
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(B) a party to a marriage under the Illinois Marriage | ||
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(C) a party to a marriage, civil union, or other | ||
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A dissolution of marriage after retirement shall not divest the
employee's spouse of the entitlement to a surviving spouse's annuity upon
the subsequent death of the employee, provided that the surviving spouse
and the deceased employee had been married to each other for a period of
not less than 10 continuous years on the date of retirement.
For purposes of Section 1-103.1, the changes made by this amendatory Act of the 100th General Assembly apply to persons not in service on or after the effective date of this amendatory Act of the 100th General Assembly. (Source: P.A. 100-244, eff. 8-22-17.)
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(40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
Sec. 13-306. Computation of surviving spouse's annuity.
(a) Computation of the annuity. The surviving spouse's annuity shall be
equal to 60% of the retirement annuity earned and accrued to the
credit of the deceased employee, whether death occurs while in service or
after withdrawal, plus 1% for each year of total service of the employee to
a maximum of 85%; provided, however, that if the employee's death arises
out of and in the course of the employee's service to the employer and is
compensable under either the Illinois Workers' Compensation Act or Illinois
Workers' Occupational Diseases Act, the surviving spouse's annuity is payable
regardless of the employee's length of service and shall be
not less than 50% of the employee's salary at the date of death.
For any death in service the early retirement discount required under
Section 13-302(b) shall not be applied in computing the retirement annuity
upon which is based the surviving spouse's annuity.
For any death after withdrawal and prior to application for annuity benefits, the early retirement discount required under Section 13-302(b) shall be applied in computing the retirement annuity upon which the surviving spouse's annuity is based. The maximum age discount applied to the employee's retirement annuity shall not exceed 60%.
Further, the annuity for a surviving spouse of a withdrawn employee who was eligible for an annuity upon attainment of age 62 pursuant to Section 13-301(b) but who died prior to age 60 shall be based upon an employee annuity that has been reduced by 1/2% for each full month between the date the surviving spouse's annuity begins and the employee's attainment of age 60.
(b) Reciprocal service. For any employee or annuitant who retires on or
after July 1, 1985 and whose death occurs after January 1, 1991, having
at least 15 years of service with the employer under this Article, and
who was eligible at the time of death or elected at the time of retirement
to have his or her retirement annuity calculated as provided in Section 20-131
of this Code, the surviving spouse benefit shall be calculated as of the
date of the employee's death as indicated in subsection
(a) as a percentage of the employee's total benefit as if all service had
been with the employer. That benefit shall then be reduced by
the amounts payable by each of the reciprocal funds as of the date of death
so that the total surviving spouse benefit at that date will be equal to
the benefit which would have been payable had all service been with the
employer under this Article.
(c) Discount for age differential. The annuity for a surviving spouse
shall be discounted by 0.25% for each full month that the spouse is younger
than the employee as of the date of withdrawal from service or death in service
to a maximum discount of 60% of the surviving spouse annuity as calculated
under subsections (a), (b), and (e) of this Section. The discount shall be
reduced by 10% for each full
year the marriage has been in continuous effect as of the date of
withdrawal or death in service. There shall be no discount if the marriage has
been in continuous effect for 10 full years or more at the
time of withdrawal or death in service.
(d) Annual increase. Effective August 23, 1989, on the first day of
each calendar month in which
there occurs an anniversary of the employee's date of retirement or date of
death, whichever occurred first, the surviving spouse's annuity, other than a
term annuity under Section 13-307, shall be increased by an amount equal to 3%
of the amount of the annuity. Beginning January 1, 1993, all annual increases
payable under this subsection (or any predecessor provision of this
Article) shall be calculated at the rate of 3% of the monthly annuity payable
at the time of the increase, including any increases previously granted under
this Article.
Beginning January 1, 1993, surviving spouse annuitants whose deceased
spouse died, retired or withdrew from service before August 23, 1989 with
at least 10 years of service under this Article shall be eligible for the
annual increases provided under this subsection.
(e) Minimum surviving spouse's annuity.
(1) Beginning January 1, 1993, the minimum monthly | ||
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Beginning January 1, 1993, the minimum monthly | ||
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(2) Beginning August 1, 2001 (and without regard to | ||
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(A) An amount equal to $500, plus $25 for each | ||
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(B) An amount equal to (i) 50% of the retirement | ||
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In the case of a reciprocal annuity, the minimum | ||
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The minimum annuity calculated under this | ||
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(3) Beginning August 1, 2001 (and without regard to | ||
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(4) Notwithstanding any other provision of this | ||
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(5) The minimum annuity provided under this | ||
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(Source: P.A. 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-307) (from Ch. 108 1/2, par. 13-307)
Sec. 13-307.
Term annuity.
Whenever a retirement or surviving spouse
annuity is less than $200 per month, it may be converted to a term annuity
in the amount of $200 per month to be paid for such period as is determined
in accordance with actuarial tables adopted by the Board.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-308) (from Ch. 108 1/2, par. 13-308)
Sec. 13-308. Child's annuity.
(a) Eligibility. A child's annuity shall be provided for each unmarried
child under the age of 18 years (under the age of 23 years in the case of a full-time student) whose employee
parent dies while in service, or whose deceased parent is an annuitant or
former employee with at least 10 years of creditable service who did not take a
refund of employee contributions. Eligibility for benefits to unmarried children over the age of 18 but under the age of 23 begins no earlier than September 1, 2005.
For purposes of this Section, "employee" includes a former employee, and
"child" means the issue of an employee or a child adopted by an employee.
Payments shall cease when a child attains the age of 18 years (age of 23 years in the case of a full-time student) or marries,
whichever first occurs. The annuity shall not be payable unless the employee
has been employed as an employee for at
least 36 months from the date of the employee's original
entry into service (at least 24 months in the case of an employee who first
entered service before June 13, 1997) and
at least 12 months from the date of the employee's latest
re-entry into service; provided, however, that if death arises out of and
in the course of service to the employer and is compensable under either the
Illinois Workers' Compensation Act or Illinois Workers' Occupational
Diseases Act, the annuity is payable regardless of the employee's length of
service.
(b) Amount. Beginning on the first day of the month following the month in which this amendatory Act of the 96th General Assembly takes effect, a child's annuity shall be $500 per month for
each child, up to a
maximum of $5,000 per month for all children of the employee, as provided in
this Section, if a parent of the child is living. The child's annuity
shall be $1,000 per month for each child, up to a maximum of $5,000 for all children of
the employee, when neither parent is alive. The total amount payable to
all children of the employee shall be divided equally among those children.
(c) Payment. Until a child attains the age of 18 years, a
child's annuity shall be paid to the child's parent or
other person who shall be providing for the child without requiring formal
letters of guardianship, unless another person shall be appointed by a
court of law as guardian. Beginning on the first day of the month following the month in which this amendatory Act of the 96th General Assembly takes effect, benefits shall begin on the first of the month following the employee's or annuitant's date of death and are payable for the full month if the annuitant was alive on the first day of the month.
(Source: P.A. 95-279, eff. 1-1-08; 96-251, eff. 8-11-09.)
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(40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309) Sec. 13-309. Duty disability benefit. (a) Any employee who becomes disabled, which disability is the result of an injury or illness compensable under the Illinois Workers' Compensation Act or the Illinois Workers' Occupational Diseases Act, is entitled to a duty disability benefit during the period of disability for which the employee does not receive any part of salary, or any part of a retirement annuity under this Article; except that in the case of an employee who first enters service on or after June 13, 1997 and becomes disabled before August 18, 2005 (the effective date of Public Act 94-621), a duty disability benefit is not payable for the first 3 days of disability that would otherwise be payable under this Section if the disability does not continue for at least 11 additional days. The changes made to this Section by Public Act 94-621 are prospective only and do not entitle an employee to a duty disability benefit for the first 3 days of any disability that occurred before that effective date and did not continue for at least 11 additional days. This benefit shall be 75% of salary at the date disability begins. However, if the disability in any measure resulted from any physical defect or disease which existed at the time such injury was sustained or such illness commenced, the duty disability benefit shall be 50% of salary. Unless the employer acknowledges that the disability is a result of injury or illness compensable under the Workers' Compensation Act or the Workers' Occupational Diseases Act, the duty disability benefit shall not be payable until the issue of compensability under those Acts is finally adjudicated. The period of disability shall be as determined by the Illinois Workers' Compensation Commission or acknowledged by the employer. An employee in service before June 13, 1997 shall also receive a child's disability benefit during the period of disability of $10 per month for each unmarried natural or adopted child of the employee under 18 years of age. The first payment shall be made not later than one month after the benefit is granted, and subsequent payments shall be made at least monthly. The Board shall by rule prescribe for the payment of such benefits on the basis of the amount of salary lost during the period of disability. (b) The benefit shall be allowed only if all of the following requirements are met by the employee: (1) Application is made to the Board. (2) A medical report is submitted by at least one | ||
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(3) The employee is examined by at least one licensed | ||
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(c) The benefit shall terminate when: (1) The employee returns to work or receives a | ||
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(2) The disability ceases; (3) The employee attains age 65, but if the employee | ||
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(4) The employee (i) refuses to submit to reasonable | ||
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(5) The employee willfully and continuously refuses | ||
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In the case of a duty disability recipient who returns to work, the employee must make application to the Retirement Board within 2 years from the date the employee last received duty disability benefits in order to become again entitled to duty disability benefits based on the injury for which a duty disability benefit was theretofore paid.(Source: P.A. 103-523, eff. 1-1-24.) |
(40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
Sec. 13-310. Ordinary disability benefit.
(a) Any employee who becomes disabled as the result of
any cause other than injury or illness incurred in the performance of duty
for the employer or any other employer, or while engaged in self-employment
activities, shall be entitled to an ordinary disability benefit. The
eligible period for this benefit shall be 25% of the employee's total
actual service prior to the date of disability with a cumulative maximum
period of 5 years.
(b) The benefit shall be allowed only if the employee files an
application in writing with the Board, and a medical report is submitted by
at least one licensed health care professional as part of the employee's
application.
The benefit is not payable for any disability which begins during any
period of unpaid leave of absence. No benefit shall be allowed for any
period of disability prior to 30 days before application is made, unless
the Board finds good cause for the delay in filing the application. The
benefit shall not be paid during any period for which the employee receives
or is entitled to receive any part of salary.
The benefit is not payable for any disability which begins during any
period of absence from duty other than allowable vacation time in any
calendar year. An employee whose disability begins during any such
ineligible period of absence from service may not receive benefits until
the employee recovers from the disability and is in service for at least 15
consecutive working days after such recovery.
In the case of an employee who first enters service on or after June 13,
1997, an ordinary disability benefit
is not payable for the first 3 days of disability that would otherwise be
payable under this Section if the disability does not continue for at least 11
additional days.
Beginning on the effective date of this amendatory Act of the 94th General Assembly, an employee who first entered service on or after June 13, 1997 is also eligible for ordinary disability benefits on the 31st day after the last day worked, provided all sick leave is exhausted.
(c) The benefit shall be 50% of the employee's salary at the date of
disability, and shall terminate when the earliest of the following occurs:
(1) The employee returns to work or receives a | ||
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(2) The disability ceases;
(3) The employee willfully and continuously refuses | ||
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(4) The employee (i) refuses to submit to a | ||
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(5) The eligible period for this benefit has been | ||
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The first payment of the benefit shall be made not later than one month
after the same has been granted, and subsequent payments shall be made at least monthly.
(Source: P.A. 102-210, eff. 7-30-21; 103-523, eff. 1-1-24.)
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(40 ILCS 5/13-311) (from Ch. 108 1/2, par. 13-311)
Sec. 13-311.
Credit for Workers' Compensation payments.
If an
employee, or an employee's spouse or children, receives compensation under any
workers' compensation or occupational diseases law, the benefit payable under this Article
shall be reduced by the amount of the compensation so received if the amount is
less than the annuity or benefit. If the compensation exceeds the annuity or
benefit, no payment of annuity or benefit shall be made until the period of
time has elapsed when the annuity or benefit payable at the rates provided in
this Article equals the amount of such compensation. However, the commutation
of compensation to a lump sum basis as provided in the workers' compensation or
occupational diseases law shall not increase the annuity or benefit provided
under this Article; the annuity or benefit to be paid hereunder shall be based
on the amount of compensation awarded under such laws prior to commutation of
such compensation. No interest shall be considered in these calculations.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/13-312) (from Ch. 108 1/2, par. 13-312)
Sec. 13-312.
Subrogation.
In those cases where injury or death for
which any disability or other benefit because of death resulting from such
injury is payable under this Article was caused under circumstances
creating a legal liability for damages on the part of some person other
than the employer, all of the rights and privileges, including the right to
notice of suit brought against such other person and the right to commence
or join in such suit, as given the employer, together with the conditions
or obligations imposed under paragraph (b) of Section 5 of the Illinois
Workers' Compensation Act or such similar provisions as might be set forth
in the Workers' Compensation Act of any other state when such benefits are
paid under the Workers' Compensation Act of such other state, are also
given and granted to the retirement Board to the end that the fund may be
paid or reimbursed for the amount of disability benefits paid or to be paid
by the Fund to the injured employee or the employee's surviving spouse,
children or personal representative out of any judgment, settlement, or
payment for such injury or death obtained by such injured employee or the
employee's spouse, children or personal representative from such other person.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-313) (from Ch. 108 1/2, par. 13-313)
Sec. 13-313.
Credit during disability.
An employee shall receive credit
during any period of duty disability and beginning September 1, 1969 during
any period of ordinary disability for which benefits are paid of any amount
representing the contributions that would have been made under Section
13-502 had the employee been in active service and in receipt of salary
during such period. The employee shall also receive credit for District
contributions during such period. Credit as service for the various
purposes of this Article shall be granted the employee during the period of
disability for which benefits have been paid as hereinbefore provided for
in this Section.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
Sec. 13-314. Alternative provisions for Water Reclamation District
commissioners.
(a) Transfer of credits. Any Water Reclamation District commissioner
elected by vote of the people and who has elected to participate in this
Fund may transfer to this Fund credits and creditable service accumulated
under any other pension fund or retirement system established under
Articles 2 through 18 of this Code, upon payment to the Fund of (1) the
amount by which the employer and employee contributions that would have
been required if he had participated in this Fund during the period for
which credit is being transferred, plus interest, exceeds the amounts
actually transferred from such other fund or system to this Fund, plus (2)
interest thereon at 6% per year compounded annually from the date of
transfer to the date of payment.
(b) Alternative annuity. Any participant commissioner may elect to
establish alternative credits for an alternative annuity by electing in
writing to make additional optional contributions in accordance with this
Section and procedures established by the Board. Unless and until such
time as the U.S. Internal Revenue Service or the federal courts provide a
favorable ruling as described in Section 13-502(f), a
commissioner
may discontinue making the additional optional contributions by notifying the
Fund in writing in accordance with this Section and procedures established
by the Board.
Additional optional contributions for the alternative annuity shall be
as follows:
(1) For service after the option is elected, an | ||
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(2) For contributions on past service, the additional | ||
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In lieu of the retirement annuity otherwise payable under this Article,
any commissioner who has elected to participate in the Fund and make
additional optional contributions in accordance with this Section,
has attained age 55, and has at least 6 years of service
credit, may elect to have the retirement annuity computed as follows: 3% of
the participant's average final salary as a commissioner for each of
the first 8 years of service credit, plus 4% of such salary for each of the
next 4 years of service credit, plus 5% of such salary for each year of
service credit in excess of 12 years, subject to a maximum of 80% of such
salary. To the extent such commissioner has made additional optional
contributions with respect to only a portion of years of service credit,
the retirement annuity will first be determined in accordance with this
Section to the extent such additional optional contributions were made, and
then in accordance with the remaining Sections of this Article to the
extent of years of service credit with respect to which additional optional
contributions were not made. The change in minimum retirement age (from
60 to 55) made by Public Act 87-1265 applies to persons who begin
receiving a retirement annuity under this Section on or after January 25, 1993 (the effective
date of Public Act 87-1265), without regard to whether they are in service
on or after that date.
(c) Disability benefits. In lieu of the disability benefits otherwise
payable under this Article, any commissioner who (1) has elected to
participate in the Fund, and (2) has become permanently disabled and as a
consequence is unable to perform the duties of office, and (3) was making
optional contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability annuity
calculated in accordance with the formula in subsection (b). For the
purposes of this subsection, such commissioner shall be
considered permanently disabled only if: (i) disability occurs while in
service as a commissioner and is of such a nature as to prevent the
reasonable performance of the duties of office at the time; and (ii) the
Board has received a written certification by at least 2 licensed health care professionals
appointed by it stating that such commissioner is disabled and
that the disability is likely to be permanent.
(d) Alternative survivor's benefits. In lieu of the
survivor's benefits otherwise payable under this Article, the spouse or
eligible child of any deceased commissioner who (1) had elected to
participate in the Fund, and (2) was either making (or had already made) additional optional
contributions on the date of death, or was receiving an annuity calculated
under this Section at the time of death, may elect to receive an annuity
beginning on the date of the commissioner's death, provided that the spouse
and commissioner must have been married on the date of the last termination
of a service as commissioner and for a continuous period of at least one
year immediately preceding death.
The annuity shall be payable beginning on the date of the commissioner's
death if the spouse is then age 50 or over, or beginning at age 50 if the
age of the spouse is less than 50 years. If a minor unmarried child or
children of the commissioner, under age 18 (age 23 in the case of a full-time student), also survive, and the child or
children are under the care of the eligible spouse, the annuity shall begin
as of the date of death of the commissioner without regard to the spouse's age.
Beginning on the first day of the month following the month in which this amendatory Act of the 96th General Assembly takes effect, benefits shall begin on the first of the month following the commissioner's date of death if the spouse is then age 50 or over or, if a minor unmarried child or children of the commissioner, under age 18 (age 23 in the case of a full time student), also survive, and the child or children are under the care of the eligible spouse. The benefit is payable for the full month if the annuitant was alive on the first day of the month.
The annuity to a spouse shall be the greater of (i) 66 2/3% of the amount of retirement
annuity earned by the commissioner on the date of death, subject to a
minimum payment of 10% of salary, provided that if an eligible spouse,
regardless of age, has in his or her care at the date of death of the
commissioner any unmarried child or children of the commissioner under age
18, the minimum annuity shall be 30% of the commissioner's salary, plus 10%
of salary on account of each minor child of the commissioner, subject to a
combined total payment on account of a spouse and minor children not to
exceed 50% of the deceased commissioner's salary or (ii) for the spouse of a commissioner whose death occurs on or after August 18, 2005 (the effective date of Public Act 94-621), the surviving spouse annuity shall be computed in the same manner as described in Section 13-306(a). The number of total service years used to calculate the commissioner's annuity shall be the number of service years used to calculate the annuity for that commissioner's surviving spouse. In the event there shall
be no spouse of the commissioner surviving, or should a spouse die while
eligible minor children still survive the commissioner, each such child
shall be entitled to an annuity equal to 20% of salary of the commissioner
subject to a combined total payment on account of all such children not to
exceed 50% of salary of the commissioner. The salary to be used in the
calculation of these benefits shall be the same as that prescribed for
determining a retirement annuity as provided in subsection (b) of this Section.
Upon the death of a commissioner occurring after termination of a service
or while in receipt of a retirement annuity, the combined total payment to
a spouse and minor children, or to minor children alone if no eligible
spouse survives, shall be limited to 85% of the amount of retirement
annuity earned by the commissioner.
Marriage of a child or attainment of age 18 (age 23 in the case of a full-time student), whichever first occurs,
shall render the child ineligible for further consideration in the payment
of annuity to a spouse or in the increase in the amount thereof. Upon
attainment of ineligibility of the youngest minor child of the
commissioner, the annuity shall immediately revert to the amount payable
upon death of a commissioner leaving no minor children surviving. If the
spouse is under age 50 at such time, the annuity as revised shall be
deferred until such age is attained.
(e) Refunds. Refunds of additional optional contributions shall be made
on the same basis and under the same conditions as provided under Section
13-601. Interest shall be credited on the same basis and under the same
conditions as for other contributions.
Optional contributions shall be accounted for in a separate Commission's
Optional Contribution Reserve. Optional contributions under this Section
shall be included in the amount of employee contributions used to compute
the tax levy under Section 13-503.
(f) Effective date. The effective date of this plan of optional
alternative benefits and contributions shall be the date upon which
approval was received from the U.S. Internal Revenue Service. The plan of
optional alternative benefits and contributions shall not be available to
any former employee receiving an annuity from the Fund on the effective
date, unless said former employee re-enters service and renders at least 3
years of additional service after the date of re-entry as a commissioner.
(Source: P.A. 103-523, eff. 1-1-24.)
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(40 ILCS 5/13-315) (from Ch. 108 1/2, par. 13-315)
Sec. 13-315.
Waiver of annuity.
Any competent employee annuitant or
surviving spouse annuitant may execute a waiver of the right to receive any
part of the total annuity. The waiver shall be effective when filed with
the Board. A waiver once filed may not be revoked, except within the first
30 days after being filed.
(Source: P.A. 87-794.)
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(40 ILCS 5/Art. 13 Pt. IV heading) Part IV.
Computation of Service.
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(40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
Sec. 13-401.
Term of service.
(a) In computing the term of service, the following periods of time shall
be counted as periods of service for annuity purposes only:
(1) the time during which the employee performs | ||
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(2) approved vacations or leaves of absence with | ||
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(3) any period for which the employee receives a | ||
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(4) leaves of absence for military service as | ||
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(b) In computing the term of service for the ordinary disability benefit,
the following periods of time shall be counted as periods of service:
(1) the time during which the employee performs | ||
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(2) approved vacations or leaves of absence with | ||
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(3) any period for which the employee receives a duty | ||
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(c) Any employee who first enters service before the effective date
of this amendatory Act of 1997 may, during any period of approved leave of
absence without pay, continue to make contributions for the retirement and
surviving spouse's annuities for a total period not to exceed one year during
the employee's entire aggregate service with the Employer. Upon making these
contributions, the employee shall receive credit in terms of length of service
for the retirement and surviving spouse's annuities. Concurrent Employer's
contributions shall be provided by the District.
(d) An employee may establish credit for periods of approved leave of
absence without pay, not to exceed a total of one year during the employee's
aggregate service with the employer. To establish this credit, the employee
must either continue to remain on approved leave of absence, return to service
with the employer, or in the case of an employee who first enters service on or
after the effective date of this amendatory Act of 1997, return to service with
the employer for at least one calendar year. The employee must pay to the Fund
the corresponding employee contributions, plus interest at the annual rate from
time to time determined by the Board, compounded annually from the date of
service to the date of payment. The corresponding employer contributions shall
be provided by the District. Upon making the required contributions, the
employee shall receive credit in terms of length of service for the retirement
and surviving spouse's annuity in proportion to the number of pay periods or
portion thereof for which contributions were made relative to 26 pay periods.
(e) Overtime or extra service shall not be included in computing any
service. Not more than one year of service credit shall be allowed
for service rendered during any calendar year.
(Source: P.A. 93-334, eff. 7-24-03.)
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(40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
Sec. 13-402. Length of service. For the purpose of computing the length
of service for the retirement annuity, surviving spouse's annuity, and
child's annuity, and calculating the minimum service requirement for
payment of military service under subsection (b) of Section 13-403,
service of 120 days in any one calendar year shall constitute one year
of service and service for any fractional part thereof shall constitute an
equal fractional part of one year of service unless specifically provided
otherwise. For all other purposes under this Article, including but not
limited to the optional plans of additional benefits and contributions provided
under Sections 13-304, 13-304.1, and 13-314 of this Article, 26 pay periods of service
during any 12 consecutive months shall constitute a year of service, and
service rendered for 50% or more of a single pay period shall constitute
service for the full pay period. Service of less than 50% of a single pay
period shall not be counted.
(Source: P.A. 93-334, eff. 7-24-03; 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-403) (from Ch. 108 1/2, par. 13-403)
Sec. 13-403. Military service.
(a) Any employee who, after commencement of
service with the Employer, enlisted, was inducted or was otherwise ordered
to serve in the military forces of the United States pursuant to any law,
shall receive full service credit for the various purposes of this Article
as though the employee were in the active service of the Employer during
the period of military service provided that:
(1) such service credit shall be granted for military | ||
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(2) the employee returns to the employ of the | ||
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(3) the total service credit for such military | ||
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(b) For a ten-year period following July 24, 2003, a contributing employee or commissioner
meeting the minimum service requirements provided under this subsection may
establish additional service credit for a period of up to 2 years of active
military service in the United States Armed Forces for which he or she does not
qualify for credit under subsection (a), provided that (1) the person was not
dishonorably discharged from the military service, and (2) the amount of
service credit established by the person under this subsection (b), when added
to the amount of any military service credit granted to the person under
subsection (a), shall not exceed 5 years.
The minimum service requirement for a contributing employee is 10 years of
service credit as provided in Sections 13-401 and 13-402 of this Article and
exclusive of Article 20. The minimum service requirement for a contributing
commissioner is 5 years of service credit as provided in Sections 13-401 and
13-402 of this Article and
exclusive of Article 20.
In order to establish military service credit under this subsection (b),
the applicant must submit a written application to the Fund, including the
applicant's discharge papers from military service, and pay to the Fund (i)
employee contributions at the rates provided in this Article, based upon the
person's salary on the last date as a participating employee prior to the
military service or on the first date as a participating employee after the
military service, whichever is greater, plus (ii) the current amount determined
by the board to be equal to the employer's normal cost of the benefits accrued
for such military service, plus (iii) regular interest of 3% compounded
annually on items (i) and (ii) from the date of entry or re-entry as a
participating employee following the military service to the date of payment.
Contributions must be paid in full before the credit is granted. Credit
established under this subsection may be used for pension purposes only.
Notwithstanding any other provision of this Section, a person may not
establish creditable service under this Section for any period for which the
person receives credit under any other public employee retirement system,
unless the credit under that other retirement system has been irrevocably
relinquished.
(Source: P.A. 93-334, eff. 7-24-03; 94-621, eff. 8-18-05.)
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(40 ILCS 5/Art. 13 Pt. V heading) Part V.
Contributions and Tax Levy
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(40 ILCS 5/13-501) (from Ch. 108 1/2, par. 13-501)
Sec. 13-501.
Contributions computed on actuarially funded basis.
The
obligations of the various annuities and benefits provided by this Article
shall be financed by contributions by employees, contributions by the Water
Reclamation District, income from investments and other income that may
accrue to the Fund during the course of its operations. The amount to be
contributed by the District for any calendar year shall be computed on an
actuarially funded basis and shall be equal to the sum of the following:
(1) For retirement and surviving spouse's annuities | ||
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(2) For the current annual cash requirements covering | ||
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The District contributions provided in this Section shall be allocated
for the purposes for which contributions have been made, and credited to
appropriate reserve accounts established by the Board.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
Sec. 13-502. Employee contributions; deductions from salary.
(a) Retirement annuity and child's annuity. Except as otherwise provided in this Section, there shall be deducted
from each payment of salary an amount equal to 7% of salary as the
employee's contribution for the retirement annuity, including
child's annuity, and 0.5% of salary as the employee's contribution for annual increases to the retirement annuity.
(a-1) For employees who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code: (1) beginning with the first pay period paid on or | ||
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(2) beginning with the first pay period paid on or | ||
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(3) beginning with the first pay period paid on or | ||
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(4) beginning with the first pay period paid on or | ||
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(b) Surviving spouse's annuity. There shall be deducted from each
payment of salary an amount equal to 1 1/2% of salary as the employee's
contribution for the surviving spouse's annuity and annual increases therefor. For employees that first became a member or a participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code, beginning with the first pay period paid on or after January 1, 2015 and ending with the last pay period paid on or before the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, there shall be deducted an additional 0.5% of salary for a total of 2.0% for the surviving spouse's annuity and annual increases.
(c) Pickup of employee contributions. The Employer may pick up employee
contributions required under subsections (a) and (b) of this Section. If
contributions are picked up they shall be treated as Employer contributions
in determining tax treatment under the United States Internal Revenue Code,
and shall not be included as gross income of the employee until such time
as they are distributed. The Employer shall pay these employee
contributions from the same source of funds used in paying salary to the
employee. The Employer may pick up these contributions by a reduction in
the cash salary of the employee or by an offset against a future salary
increase or by a combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up they shall be
treated for all purposes of this Article 13, including Sections 13-503 and
13-601, in the same manner and to the same extent as employee contributions
made prior to the date picked up.
(d) Subject to the requirements of federal law, the Employer shall
pick up optional contributions that the employee has elected to pay to the
Fund under Section 13-304.1, and the contributions so picked up
shall be treated as employer contributions for the purposes of determining
federal tax treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the contributions
from the same fund that is used to pay earnings to the employee. The Employer
shall, however, continue to withhold federal and State income taxes based upon
contributions made under Section 13-304.1 until the Internal Revenue Service or
the federal courts rule that pursuant to Section 414(h) of the U.S. Internal
Revenue Code of 1986, as amended, these contributions shall not be included as
gross income of the employee until such time as they are distributed or made
available.
(e) Each employee is deemed to consent and agree to the deductions from
compensation provided for in this Article.
(f) Subject to the requirements of federal law, the Employer shall pick up
contributions that a commissioner has elected to pay to the Fund under Section
13-314, and the contributions so picked up shall be treated as Employer
contributions for the purposes of determining federal tax treatment. The
Employer shall pick up the contributions by a reduction in the cash salary of
the commissioner and shall pay the contributions from the same fund as is
used to pay earnings to the commissioner. The Employer shall, however,
continue to withhold federal and State income taxes based upon contributions
made under Section 13-314 until the U.S. Internal Revenue Service or the
federal courts rule that pursuant to Section 414(h) of the Internal Revenue
Code of 1986, as amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed or made
available.
(Source: P.A. 97-894, eff. 8-3-12.)
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(40 ILCS 5/13-503) (from Ch. 108 1/2, par. 13-503)
Sec. 13-503. Tax levy. Until fiscal year 2013, the Water Reclamation District shall annually
levy a tax upon all the taxable real property within the District at a rate
which, when extended, will produce a sum that (i) when added to the amounts
deducted from the salaries of employees, interest income on investments, and
other income, will be sufficient to meet the requirements of the Fund on an
actuarially funded basis, but (ii) shall not exceed an amount equal to the
total amount of contributions by the employees to the Fund made in the
calendar year 2 years prior to the year for which the tax is levied,
multiplied by 2.19, except that the amount of employee contributions made on
or after January 1, 2003 towards the purchase of additional optional benefits
under Section 13-304.1 shall only be multiplied by 1.00. Beginning in fiscal year 2013, the District shall annually
levy a tax upon all the taxable real property within the District at a rate
which, when extended, will produce a sum that (i) will be sufficient to meet the Fund's actuarially determined contribution requirement, but (ii) shall not exceed an amount equal to the total employee contributions 2 years prior multiplied by 4.19. The actuarially determined contribution requirement is equal to the employer's normal cost plus the annual amount needed to amortize the unfunded liability by the year 2050 as a level percent of payroll. The funding goal is to attain a funded ratio of 100% by the year 2050, with the funded ratio being the ratio of the actuarial value of assets to the total actuarial liability. The tax shall be
levied and collected in the same manner as the general taxes of the District.
The tax shall be exclusive of and in addition to the amount of tax the
District is now or may hereafter be authorized to levy for general purposes
under the Metropolitan Water Reclamation District Act or under any other
laws which may limit the amount of tax for general purposes. The county
clerk of any county, in reducing tax levies as may be authorized by law,
shall not consider any such tax as a part of the general tax levy for
District purposes, and shall not include the same in any limitation of the
percent of the assessed valuation upon which taxes are required to be extended.
Revenues derived from the tax shall be paid to the Fund for the benefit
of the Fund, except for the amount of revenue to be retained by the District and used to pay principal and interest on bonds issued for the sole purpose of making contributions to the Fund as set forth in Section 9.6a of the Metropolitan Water Reclamation District Act.
If the funds available for the purposes of this Article are insufficient
during any year to meet the requirements of this Article, the District may
issue tax anticipation warrants or notes, as provided by law, against the
current tax levy.
The Board shall submit annually to the Board of Commissioners of the
District an estimate of the amount required to be raised by taxation for
the purposes of the Fund. The Board of Commissioners shall review the
estimate and determine the tax to be levied for such purposes.
(Source: P.A. 102-707, eff. 4-22-22.)
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(40 ILCS 5/13-503.5) Sec. 13-503.5. Delinquent contributions; deduction from payments of State funds to the employer. If the employer fails to transmit to the Fund contributions required of it under this Article by December 31st of the year in which such contributions are due, the Fund may, after giving notice to the employer, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in payment year 2016, deduct and remit to the Fund the certified amounts from payments of State funds to the employer. The State Comptroller may not deduct from any payments of State funds to the employer more than the amount of delinquent payments certified to the State Comptroller by the Fund.
(Source: P.A. 99-8, eff. 7-9-15.) |
(40 ILCS 5/13-504) (from Ch. 108 1/2, par. 13-504)
Sec. 13-504.
Mortality tables and interest rates.
All reserves and
liabilities for annuities under this Article shall be computed according to
actuarial tables adopted by the Board.
At least once every 5 years a valuation shall be made by the actuary of
the liabilities and reserves of the Fund, including a general investigation
of the mortality, retirement, employment turnover, interest, and earnable
compensation experience of the Fund, and a report thereon shall be made to
the Board. The actuary shall recommend to the Board such actuarial tables
and rates of interest as are required in the operation of the Fund.
For computing retirement and surviving spouse's annuities, all employee
contributions in the form of salary deductions or otherwise, and all
concurrent contributions by the District shall be improved in an amount
equal to 3% per annum from the date contributions become due or have
accrued to the date an annuity is applied for and becomes payable.
(Source: P.A. 87-794.)
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(40 ILCS 5/Art. 13 Pt. VI heading) Part VI.
Refunds, Re-entry and Restoration of Rights.
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(40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
Sec. 13-601. Refunds.
(a) Withdrawal from service. Upon withdrawal from service, an employee
who first became a member before January 1, 2011, who is under age 55 (age 50 if the employee first entered service before June
13, 1997), or an employee age 55 (age 50 if the employee first entered
service before June 13, 1997) or over but less than age 60 having less
than 20 years of service, or an employee age 60 or over having less than 5
years of service shall be entitled, upon application, to a refund of total
contributions from salary deductions or amounts otherwise paid under this
Article by the employee. An employee who first becomes a member on or after January 1, 2011, who withdraws before age 62 regardless of length of service, or who withdraws with less than 10 years of service regardless of age is entitled to a refund of total contributions from salary deductions or amounts otherwise paid under this Article by the employee. The refund shall not include interest credited to
the contributions. The Board may, in its discretion, withhold payment of a
refund for a period not to exceed one year from the date of filing an
application for refund.
(b) Surviving spouse's annuity contributions. A refund of all amounts
deducted from salary or otherwise contributed by an employee for the
surviving spouse's annuity shall be paid upon retirement to any employee
who on the date of retirement is either not married or is married but whose
spouse is not eligible for a surviving spouse's annuity paid wholly or in
part under this Article. The refund shall include interest on
each contribution at the rate of 3% per annum compounded annually from the
date of the contribution to the date of the refund.
(b-5) An annuitant who (i) retired prior to June 1, 2011, (ii) received a refund of surviving spouse's annuity contributions under subsection (b), and (iii) thereafter became and remains a party to a civil union or marriage, as described in Section 13-305, may, within a period of one year beginning 5 months after the effective date of this amendatory Act of the 100th General Assembly, and in accordance with any rules adopted by the Board and consents required by the Board, make an irrevocable election to re-establish rights to a surviving spouse annuity under Sections 13-305 and 13-306 or to alternative survivor's benefits under subsection (d) of Section 13-314, whichever is applicable, by paying to the Fund: (1) the total amount of the refund received for surviving spouse's annuity contributions; and (2) interest thereon at the actuarially assumed rate of return at the time of the election from the date of the refund to the date of repayment in full. Such election may only be made by the annuitant. The Fund shall allow the annuitant to repay the total amount of the refund, plus interest, over a period not to exceed 24 months. To the extent permitted by the Internal Revenue Code of 1986, as amended, and for federal and State tax purposes, if a member pays in monthly installments by reducing the monthly annuity by the amount of the otherwise applicable contribution, the monthly amount by which the annuitant's benefit is reduced shall not be treated as a contribution by the annuitant, but rather as a reduction of the annuitant's monthly annuity. In the event of the death of the annuitant prior to repayment of the total amount of the refund, plus interest, the amount owed as of the date of death shall be deducted from the spouse annuity by a reduction in the surviving spouse's monthly annuity. The death of the spouse or civil union partner prior to the annuitant's death shall not void the election. (c) Payment of Refunds After Death. Whenever any refund is payable after the death of the employee or annuitant as provided for in this Article, the refund shall be paid as follows: to the employee's surviving spouse, but if there is no surviving spouse then in accordance with the employee's written designation of beneficiary filed with the Board on the prescribed form before the employee's death. If there is no such designation of beneficiary, then to the employee's surviving children in equal parts to each. If there are no such children, the refund shall be paid to the heirs of the employee according to the law of descent and distribution of the State of Illinois.
If a personal representative of the estate has not been appointed within
90 days from the date on which a refund became payable, the refund may be
applied, in the discretion of the Board, toward the payment of the
employee's or the surviving spouse's burial expenses. Any remaining
balance shall be paid to the heirs of the employee according to the law of
descent and distribution of the State of Illinois.
Whenever the total accumulations to the account of an employee from employee contributions other than the contribution for the cost of living increase, including interest to the employee's date of withdrawal, have not been paid to the employee and surviving spouse as a retirement or spouse's annuity before the death of the employee and spouse, a refund shall be paid as follows: an amount equal to the excess of such amounts over the amounts paid on such annuities without interest on either such amount.
If a reversionary annuity becomes payable under Section 13-303, the
refund provided in this section shall not be paid until the death of the
reversionary annuitant and the refund otherwise payable under this section
shall be then further reduced by the amount of the reversionary annuity paid.
(d) In lieu of annuity. Notwithstanding the provisions set forth in
subsection (a) of this section, whenever an employee's or surviving
spouse's annuity will be less than $200 per month, the employee or
surviving spouse, as the case may be, may elect to receive a refund of
accumulated employee contributions; provided, however, that if the election
is made by a surviving spouse the refund shall be reduced by any amounts
theretofore paid to the employee in the form of an annuity.
(e) Forfeiture of rights. An employee or surviving spouse who receives
a refund forfeits the right to receive an annuity or any other benefit
payable under this Article except that if the refund is to a surviving
spouse, any child or children of the employee shall not be deprived of the
right to receive a child's annuity as provided in Section 13-308 of this
Article, and the payment of a child's annuity shall not reduce the amount
refundable to the surviving spouse.
(Source: P.A. 100-244, eff. 8-22-17.)
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(40 ILCS 5/13-602) (from Ch. 108 1/2, par. 13-602)
Sec. 13-602.
Re-entry.
(a) Before retirement. An employee who withdraws and elects not to
receive a refund and later returns to service shall receive credit for the
service previously rendered for which contributions were made and remained
in the Fund.
(b) After retirement. When any person receiving a retirement annuity
re-enters service, payments of an annuity to that person shall be suspended
while such person remains in service. When that person again withdraws,
payments of the annuity previously granted shall be resumed and shall be
adjusted to reflect the annual increases under Section 13-302(d) of this
Article during the period of suspension. The surviving spouse's annuity
shall remain fixed at the amount set at the first retirement date, subject
to adjustments for annual increases as provided in Section 13-306(b) of
this Article. No contributions shall be made by the formerly retired
employee during service after re-entry, nor shall the employee be entitled
to credit for service during such reemployment.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
Sec. 13-603. Restoration of rights. If an employee who has received a
refund subsequently re-enters the service and renders one year of contributing
service from the date of such re-entry, the employee shall be entitled to
have restored all accumulation and service credits previously forfeited by
making a repayment of the refund, including interest from the date of the
refund to the date of repayment at a rate equal to the higher of 8% per annum
or the actuarial investment return assumption used in the Fund's most recent
Annual Actuarial Statement. Repayment may be made either directly to the Fund
or in a manner similar to that provided for the contributions required under
Section 13-502. The service credits represented thereby, or any part thereof,
shall not become effective unless the full amount due has been paid by the
employee, including interest. The repayment must be made in full by the employee no later
than 90 days following the date of the employee's final withdrawal from
service. If the employee fails to make a full repayment, any partial amounts
paid by the employee shall be refunded without interest.
(Source: P.A. 94-621, eff. 8-18-05.)
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(40 ILCS 5/Art. 13 Pt. VII heading) Part VII.
Retirement Board.
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(40 ILCS 5/13-701) (from Ch. 108 1/2, par. 13-701)
Sec. 13-701. Board created. A board of 7 members shall constitute the
Board of Trustees authorized to carry out the provisions of this Article.
The board shall be known as the Retirement Board of the Metropolitan Water
Reclamation District Pension Fund.
The board shall consist of 3 members appointed by the Board of
Commissioners of the Water Reclamation District, one of which must be a retiree participating in the Fund, and 4 elected employee members. The appointed retiree to the Board must be recommended by the Board of Commissioners of the Metropolitan Water Reclamation District and approved by the Board of Trustees prior to serving his or her term.
Each appointed member shall be appointed for a term of 3 years in the
month of January prior to the expiration of the term of office of the
appointed member whose term next expires.
Members of the Board shall hold office until the expiration of their
respective terms and until their respective successors are appointed or
elected and have qualified. This amendatory Act of the 95th General Assembly shall not affect
the terms of the Board members holding office on its effective date. The new employee member authorized by this amendatory Act of the 95th General Assembly shall begin his or her term following a special election no later than 90 days after the effective date of this amendatory Act and serve an initial term that expires on November 30, 2011. The appointed retiree member authorized by this amendatory Act of the 95th General Assembly shall be appointed no later than 90 days after the effective date of this amendatory Act and serve an initial term that expires on January 31, 2011.
Any person elected or appointed as a member of the Board shall qualify by
taking an oath of office to be administered by any officer authorized to
administer oaths or any sitting member of the Board. A copy thereof shall
be filed with the clerk of the Water Reclamation District and with the
Executive Director of the Fund.
(Source: P.A. 95-923, eff. 8-26-08.)
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(40 ILCS 5/13-702) (from Ch. 108 1/2, par. 13-702)
Sec. 13-702. Board elections. Beginning on the effective date of this amendatory Act of the 95th General Assembly, in each year, the Board shall conduct a
regular election, under rules adopted by it, at least 30 days prior to the
expiration of the term of the employee member whose term next expires, for
the election of a successor for a term of 4 years. Any employee at the
time the election is held shall have a right to vote. The election
shall be conducted by secret ballot.
(Source: P.A. 95-923, eff. 8-26-08.)
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(40 ILCS 5/13-703) (from Ch. 108 1/2, par. 13-703)
Sec. 13-703.
Board vacancy.
A vacancy occurring in the membership of the
Board shall be filled as follows:
If the vacancy is of an appointive member, the President of the Water
Reclamation District shall designate a person to serve until the Board of
Commissioners of the District appoints a member to fill the vacancy for the
unexpired term. If the vacancy is of an elective office the remaining
members of the Retirement Board shall designate an employee to serve the
remainder of the unexpired term.
Any employee who leaves the service of the District or who shall be or
become a member or beneficiary of any public annuity or pension fund other
than the Fund created by this Article, shall automatically become
ineligible to elective membership on the Board, and if such person is an
elected member of the Board, that office shall automatically become vacant
and shall be filled as herein provided for the filling of vacancies. This
Section shall not apply to pensions or benefits granted by the Government
of the United States or by any state for service in the military or naval
forces of the United States.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-704) (from Ch. 108 1/2, par. 13-704)
Sec. 13-704.
Board officers.
The Board shall elect annually at its
regular December meeting, from among its members by a majority vote of the
members voting upon the question, a president, a vice president, and a
secretary who shall serve, respectively, until a successor is elected.
If a vacancy occurs in any such office by reason of death, resignation,
separation from service, or any other cause, a successor shall be elected
to fill such vacancy for the unexpired term at the first regular or special
meeting held next after such vacancy occurs.
The president and vice president shall perform such duties as may be
incumbent upon them by virtue of their respective offices on the Board, or
by virtue of rules adopted by the Board fixing such duties.
The secretary shall keep a complete record of the proceedings of all
Board meetings and perform such other duties as the Board directs.
All records belonging to the Board shall be kept in the custody of the
Executive Director of the Fund.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-705) (from Ch. 108 1/2, par. 13-705)
Sec. 13-705.
Board meetings.
The Board shall hold regular meetings in
each month, and special meetings as it deems necessary. A majority of the
members shall constitute a quorum for the transaction of business at any
meeting, but no annuity or benefit shall be granted or allowed, or payments
made from the Fund unless ordered by a vote of a majority of the Board
members, as shown by roll call entered upon the official record of the
meeting at which such action is taken.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-706) (from Ch. 108 1/2, par. 13-706)
Sec. 13-706. Board powers and duties. The Board shall have the powers and
duties set forth in this Section, in addition to such other powers and
duties as may be provided in this Article and in this Code:
(a) To supervise collections. To see that all | ||
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(b) To notify of deductions. To notify the Clerk of | ||
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(c) To accept gifts. To accept by gift, grant, | ||
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(d) To invest the reserves. To invest the reserves | ||
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(e) To authorize payments. To consider and pass upon | ||
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(f) To submit an annual report. To submit a report | ||
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(1) A balance sheet, showing the financial and | ||
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(2) A statement of receipts and disbursements | ||
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(3) A statement showing changes in the asset, | ||
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(4) A detailed statement of investments as of the | ||
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(5) Any additional information as is deemed | ||
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(g) To subpoena witnesses. To compel witnesses to | ||
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(h) To appoint employees and consultants. To appoint | ||
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(i) To make rules. To make rules and regulations | ||
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(j) To waive guardianship. To waive the requirement | ||
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(k) To collect amounts due. To collect any amounts | ||
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(l) To invoke rule of offset. To offset against any | ||
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(m) To assess and collect interest on amounts due to | ||
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(Source: P.A. 103-523, eff. 1-1-24.)
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(40 ILCS 5/13-707) (from Ch. 108 1/2, par. 13-707)
Sec. 13-707.
No Compensation.
A member of the Retirement Board shall not
receive any moneys from the Fund, as salary for service performed as a
member, consultant or employee of the Board but any member shall be
entitled to reimbursement for expenses incurred on behalf of the Fund,
subject to the approval of the Board. Any elected employee member shall
have a right to and shall be reimbursed for any amount of salary, wages or
compensation withheld by the District because of attendance at any meeting
of the Board or because of the performance of any other duty in connection
with the Fund.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-708) (from Ch. 108 1/2, par. 13-708)
Sec. 13-708.
No commissions on investments.
No member of the Board, and no
person officially connected with the Board, either as an employee or as a
custodian of the Fund, shall receive any commissions on any investment made
by the Board, or act as the agent of any other person or persons concerning
any such investment.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-709) (from Ch. 108 1/2, par. 13-709)
Sec. 13-709.
Duties of officers of the District.
(a) In addition to those other requirements set forth in this Article,
the proper officers of the Water Reclamation District shall, without cost
to the Fund:
(1) deduct all required sums from the salaries of | ||
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(2) furnish to the Board, in the manner and form | ||
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(3) furnish suitable rooms for offices and meetings.
(b) The treasurer of the Water Reclamation District shall be, ex
officio, the treasurer of the Fund. The treasurer shall have the authority
to collect employee contributions, tax levies, and other payments to the
Fund, and to perform such other functions as the Board may direct.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-710) (from Ch. 108 1/2, par. 13-710)
Sec. 13-710.
Age of employee.
In any application for appointment to the
service of the District, the age stated therein shall be conclusive
evidence of the applicant's age for the purposes of this Article, but the
Board may require such evidence of an employee's age as it deems necessary,
and may fix such age for the purposes of this Article based upon such evidence.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-711) (from Ch. 108 1/2, par. 13-711)
Sec. 13-711.
Examination of Fund.
The Board shall have an audit and a
thorough examination of the affairs of the fund made annually by a
certified public accountant. The Board shall submit the results of the
examination to the Director of Insurance, and to the Board of Commissioners
of the District. The report shall be filed in the official record of the
proceedings of the meeting of the District at which it is received. The
expenses of the examination shall be paid by the Board.
(Source: P.A. 87-794.)
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(40 ILCS 5/Art. 13 Pt. VIII heading) Part VIII.
Miscellaneous.
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(40 ILCS 5/13-801) (from Ch. 108 1/2, par. 13-801)
Sec. 13-801.
Transfer of credits to General Assembly Retirement System.
(a) Payments. Any active member of the General Assembly Retirement
System may apply for a transfer of credits and creditable service
accumulated under this Fund to the General Assembly System. Such credits
and creditable service shall be transferred forthwith. Payment by this
Fund to the General Assembly Retirement System shall be made at the same
time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) municipality credits computed and credited under | ||
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An active member of the General Assembly who has service credits and
creditable service under the Fund may establish additional service credits
and creditable service for periods during which such member was an elected
official and could have elected to participate but did not so elect.
Service credits and creditable service may be established by payment to the
fund of an amount equal to the contributions such member would have made if
an election to participate had been made, plus interest to the date of payment.
(b) Validation of service credits. An active member of the General
Assembly having no service credits or creditable service in the Fund, may
establish service credit and creditable service for periods during which
such member was an employee of an employer in an elective office and could
have elected to participate in the Fund but did not so elect.
Service credits and creditable service may be established by payment to
the Fund of an amount equal to the contributions such member would have
made if an election to participate had been made, plus interest to the date
of payment, together with a like amount as the applicable municipality
credits including interest, but the total period of such creditable service
that may be validated shall not exceed 8 years.
(c) Termination of continued participation. Persons otherwise required
or eligible to participate in the Fund who elect to continue participation
in the General Assembly System under Section 2-117.1 may not participate in
the Fund for the duration of such continued participation under Section
2-117.1.
Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to this Fund of:
(1) the amount by which the employer and employee | ||
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(2) interest thereon at 6% per annum compounded | ||
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(Source: P.A. 87-794.)
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(40 ILCS 5/13-802) (from Ch. 108 1/2, par. 13-802)
Sec. 13-802.
Transfer of creditable service to Article 8 or 9 funds.
(a) Any city officer as defined in Section 8-243.2 of this Code, and any
county officer elected by vote of the people who is a participant in the
pension fund established under Article 9 of this Code, may apply for a
transfer of credits and creditable service accumulated under this Fund to
such Article 8 or 9 fund. Such creditable service shall be transferred
forthwith. Payment by this Fund to the Article 8 or 9 fund shall be made
at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions computed by the Board and | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer or county officer who has credits and
creditable service under the Fund may establish additional credits and
creditable service for periods during which such officer could have elected
to participate but did not so elect. Credits and creditable service may be
established by payment to the Fund of an amount equal to the contributions
such officer would have made if an election to participate had been made,
plus interest to the date of payment.
(c) Any such elected city officer or county officer may reinstate
credits and creditable service terminated upon receipt of a separation
benefit, by payment to the Fund of the amount of the separation benefit
plus interest thereon to the date of payment.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-803) (from Ch. 108 1/2, par. 13-803)
Sec. 13-803.
Moneys to be held on deposit.
To make the payments
authorized by this Article, the Board may keep and hold uninvested a sum
not in excess of the amount required to make all annuity and disability
benefit payments which shall become due and payable within the following 60
days. Such sum or any part thereof shall be kept on deposit in any bank or
savings and loan association authorized to do business under the laws of
this State. The amount deposited in any such bank or savings and loan
association shall not exceed 25% of its paid-up capital and surplus.
No bank or savings and loan association shall receive investment funds as
permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public
agencies", approved July 28, 1943, as now or hereafter amended.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-804) (from Ch. 108 1/2, par. 13-804)
Sec. 13-804.
Accounting.
An adequate system of accounts and records
shall be established which will give effect to all requirements of this
Article. Individual employee accounts shall be maintained, to which shall
be credited contributions by salary deductions or otherwise, and such
interest increments thereon as are provided herein. The assets of the Fund
shall be credited according to the purposes for which they are held.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-805) (from Ch. 108 1/2, par. 13-805)
Sec. 13-805.
Annuities and benefits exempt.
All annuities and benefits
granted under this Article shall be exempt from attachment or garnishment
process and shall not be seized, taken, subjected to, detained, or levied
upon by virtue of any judgment, or any process or proceeding whatsoever
issued out of or by any court, for the payment and satisfaction in whole or
in part of any debt, damage, claim, demand, or judgment against any
annuitant or other beneficiary hereunder.
No annuitant or other beneficiary shall have any right to transfer or
assign an annuity or benefit or any part thereof, either by mortgage or
otherwise except that an annuitant who elects to participate in any group
hospital care plan or group medical or surgical plan shall have the right to
authorize the Board to deduct the cost of such plan from the annuity check
and to pay such deducted amount to the group insurance carrier; provided,
that the Board, in its discretion, may pay to the spouse of any annuitant,
or disability beneficiary, such amount from the annuity or disability
benefit as any court of competent jurisdiction may order, or as the Board
may consider necessary for the support of the spouse and children in the
event of the disappearance or unexplained absence of the annuitant, or
disability beneficiary, or of failure to support the spouse and children.
The Board may withhold from any future annuity or benefit payments such
amounts as it may in its discretion require for the purpose of repayment
into the Fund of any moneys paid to any annuitant, or disability beneficiary
through misrepresentation, fraud or error. The Board, and the members
thereof, and the Fund shall not be held liable for any amounts so withheld.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-806) (from Ch. 108 1/2, par. 13-806)
Sec. 13-806.
Fraud.
Any person, member, trustee or employee of the
Retirement Board who knowingly makes any false statement or falsifies or
permits to be falsified any record in any attempt to defraud the Fund as a
result of such act or intentionally or knowingly defrauds the Fund in any
manner is guilty of a Class A misdemeanor.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-807) (from Ch. 108 1/2, par. 13-807)
Sec. 13-807. Felony conviction. None of the benefits provided in this
Article shall be paid to any person who is convicted of any felony relating
to or arising out of or in connection with service as an employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All persons entering service subsequent to July 11, 1955 shall be deemed
to have consented to the provisions of this Section as a condition of
coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/13-808) (from Ch. 108 1/2, par. 13-808)
Sec. 13-808.
Retirement Systems Reciprocal Act.
The "Retirement Systems
Reciprocal Act", being Article 20 of this Code, as now enacted and
hereafter amended, is hereby adopted and made a part of this Article;
provided that where there is a direct conflict in the provisions of such
Act and the specific provisions of this Article, such latter provisions shall
prevail.
(Source: P.A. 87-794.)
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(40 ILCS 5/13-809) (from Ch. 108 1/2, par. 13-809)
Sec. 13-809. Administrative review. The provisions of the
Administrative Review Law, and all amendments and modifications thereof and
the rules adopted pursuant thereto shall apply to and govern all
proceedings for the judicial review of final administrative decisions of
the Retirement Board provided for under this Article. The term
"administrative decision" is as defined in Section 3-101 of the Code of
Civil Procedure.
(Source: P.A. 98-756, eff. 7-16-14.)
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(40 ILCS 5/13-810) (from Ch. 108 1/2, par. 13-810)
Sec. 13-810.
General provisions and savings clause.
The provisions of
Article 1 and Article 23 of this Code apply to this Article as though such
provisions were fully set forth in this Article as a part hereof.
(Source: P.A. 87-794.)
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(40 ILCS 5/Art. 14 heading) ARTICLE 14.
STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS
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(40 ILCS 5/14-101) (from Ch. 108 1/2, par. 14-101)
Sec. 14-101.
Creation of system.
A retirement and benefit system is created to provide retirement
annuities and other benefits for employees of the State of Illinois. The
system shall be known as the "State Employees' Retirement System of
Illinois". By such name all its business shall be transacted and its cash
and other property held in trust for
the purposes of this Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-102) (from Ch. 108 1/2, par. 14-102)
Sec. 14-102.
Purpose.
The purpose of the system is to provide an orderly means whereby aged
or disabled employees may be retired from active service, without
prejudice or hardship, and to enable the employees to accumulate
reserves for themselves and their dependents for old age, disability,
death and termination of employment, thus effecting economy and
efficiency in the administration of the State Government.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103) (from Ch. 108 1/2, par. 14-103)
Sec. 14-103.
Terms defined.
The terms used in this Article shall have the meanings ascribed to
them in the Sections which succeed this Section and precede Section 14-104,
except when the context
otherwise requires.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.01) (from Ch. 108 1/2, par. 14-103.01)
Sec. 14-103.01.
Retirement system or system.
"Retirement system" or "system": the State Employees' Retirement
System of Illinois.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.02) (from Ch. 108 1/2, par. 14-103.02)
Sec. 14-103.02.
Board of trustees or board.
"Board of trustees" or "board": the board created in this Article to
direct the affairs of the system.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.03) (from Ch. 108 1/2, par. 14-103.03)
Sec. 14-103.03.
Date of establishment.
"Date of establishment": January 1, 1944.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
Sec. 14-103.04. Department. "Department": Any department, institution,
board, commission, officer, court, or any agency of the State having power to
certify payrolls to the State Comptroller authorizing payments of salary or
wages against State appropriations, or against trust funds held by the State
Treasurer, except those departments included under the term "employer" in the
State Universities Retirement System. "Department" includes the Illinois
Finance Authority. "Department" also includes the
Illinois
Comprehensive Health Insurance Board.
(Source: P.A. 95-331, eff. 8-21-07.)
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(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
Sec. 14-103.05. Employee.
(a) Any person employed by a Department who receives salary
for personal services rendered to the Department on a warrant
issued pursuant to a payroll voucher certified by a Department and drawn
by the State Comptroller upon the State Treasurer, including an elected
official described in subparagraph (d) of Section 14-104, shall become
an employee for purpose of membership in the Retirement System on the
first day of such employment.
A person entering service on or after January 1, 1972 and prior to January
1, 1984 shall become a member as a condition of employment and shall begin
making contributions as of the first day of employment.
A person entering service on or after January 1, 1984 shall, upon completion
of 6 months of continuous service which is not interrupted by a break of more
than 2 months, become a member as a condition of employment. Contributions
shall begin the first of the month after completion of the qualifying period.
A person employed by the Chicago Metropolitan Agency for Planning on the effective date of this amendatory Act of the 95th General Assembly who was a member of this System as an employee of the Chicago Area Transportation Study and makes an election under Section 14-104.13 to participate in this System for his or her employment with the Chicago Metropolitan Agency for Planning.
The qualifying period of 6 months of service is not applicable to: (1)
a person who has been granted credit for service in a position covered by
the State Universities Retirement System, the Teachers' Retirement System
of the State of Illinois, the General Assembly Retirement System, or the
Judges Retirement System of Illinois unless that service has been forfeited
under the laws of those systems; (2) a person entering service on or
after July 1, 1991 in a noncovered position; (3) a person to whom Section
14-108.2a or 14-108.2b applies; or (4) a person to whom subsection (a-5) of this Section applies.
(a-5) A person entering service on or after December 1, 2010 shall become a member as a condition of employment and shall begin making contributions as of the first day of employment. A person serving in the qualifying period on December 1, 2010 will become a member on December 1, 2010 and shall begin making contributions as of December 1, 2010. (b) The term "employee" does not include the following:
(1) members of the State Legislature, and persons | ||
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(2) incumbents of offices normally filled by vote of | ||
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(3) except as otherwise provided in this Section, any | ||
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(3.1) any person serving as a commissioner of an | ||
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(3.2) any person serving as a part-time employee in | ||
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(3.3) any person who has made an election under | ||
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(4) except as provided in Section 14-108.2 or | ||
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(5) an employee of a municipality or any other | ||
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(6) any person who becomes an employee after June 30, | ||
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(7) enrollees of the Illinois Young Adult | ||
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(8) enrollees and temporary staff of programs | ||
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(9) any person who is a member of any professional | ||
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(10) any person who is a member of the Illinois | ||
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(11) any person who is a member of the Oil and Gas | ||
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(12) a person employed by the State Board of Higher | ||
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(13) any person who first becomes a member of the | ||
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(14) any person, other than the Director of | ||
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(15) any person who first becomes a member of the | ||
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(16) any person who first becomes a member of the | ||
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(17) any person who first becomes a member of the | ||
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(18) any person who first becomes a member of the | ||
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(19) any person who first becomes a member of the | ||
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(20) any person who first becomes a member of the | ||
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(21) any person who first becomes a member of the | ||
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(22) any person who first becomes a member of the | ||
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(23) any person who first becomes a member of the | ||
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(24) any person who first becomes a member of the | ||
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(c) An individual who represents or is employed as an officer or employee of a statewide labor organization that represents members of this System may participate in the System and shall be deemed an employee, provided that (1) the individual has previously earned creditable service under this Article, (2) the individual files with the System an irrevocable election to become a participant within 6 months after the effective date of this amendatory Act of the 94th General Assembly, and (3) the individual does not receive credit for that employment under any other provisions of this Code. An employee under this subsection (c) is responsible for paying to the System both (i) employee contributions based on the actual compensation received for service with the labor organization and (ii) employer contributions based on the percentage of payroll certified by the board; all or any part of these contributions may be paid on the employee's behalf or picked up for tax purposes (if authorized under federal law) by the labor organization. A person who is an employee as defined in this subsection (c) may establish service credit for similar employment prior to becoming an employee under this subsection by paying to the System for that employment the contributions specified in this subsection, plus interest at the effective rate from the date of service to the date of payment. However, credit shall not be granted under this subsection (c) for any such prior employment for which the applicant received credit under any other provision of this Code or during which the applicant was on a leave of absence.
(d) A person appointed as a member of the Human Rights Commission on or after June 1, 2019 may elect to participate in the System and shall be deemed an employee. Service and contributions shall begin on the first payroll period immediately following the employee's election to participate in the System. A person who is an employee as described in this subsection (d) may establish service credit for employment as a Human Rights Commissioner that occurred on or after June 1, 2019 and before establishing service under this subsection by paying to the System for that employment the contributions specified in paragraph (1) of subsection (a) of Section 14-133, plus regular interest from the date of service to the date of payment. (Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
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(40 ILCS 5/14-103.06) (from Ch. 108 1/2, par. 14-103.06)
Sec. 14-103.06.
Member.
"Member": Any employee included in the membership
of the system; and any former employee who made contributions to the system
and has not received a refund and who is not receiving a retirement annuity
under this Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.07) (from Ch. 108 1/2, par. 14-103.07)
Sec. 14-103.07.
Annuitant.
"Annuitant": A person receiving a retirement annuity under
this Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.08) (from Ch. 108 1/2, par. 14-103.08)
Sec. 14-103.08.
Beneficiary.
"Beneficiary": A person receiving an annuity or benefit under this
Article other than a retirement annuity.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.09) (from Ch. 108 1/2, par. 14-103.09)
Sec. 14-103.09.
Service.
"Service": Service as an employee of a Department, for which
compensation is paid by the State.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-103.10. Compensation.
(a) For periods of service prior to January 1, 1978, the full rate of salary
or wages payable to an employee for personal services performed if he worked
the full normal working period for his position, subject to the following
maximum amounts: (1) prior to July 1, 1951, $400 per month or $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 inclusive, $625 per month or $7,500
per year; (3) beginning July 1, 1957, no limitation.
In the case of service of an employee in a position involving
part-time employment, compensation shall be determined according to the
employees' earnings record.
(b) For periods of service on and after January 1, 1978, all
remuneration for personal services performed defined as "wages" under
the Social Security Enabling Act, including that part of such
remuneration which is in excess of any maximum limitation provided in
such Act, and including any benefits received by an employee under a sick
pay plan in effect before January 1, 1981, but excluding lump sum salary
payments:
(1) for vacation,
(2) for accumulated unused sick leave,
(3) upon discharge or dismissal,
(4) for approved holidays.
(c) For periods of service on or after December 16, 1978, compensation
also includes any benefits, other than lump sum salary payments made at
termination of employment, which an employee receives or is eligible to
receive under a sick pay plan authorized by law.
(d) For periods of service after September 30, 1985, compensation also
includes any remuneration for personal services not included as "wages"
under the Social Security Enabling Act, which is deducted for purposes of
participation in a program established pursuant to Section 125 of the
Internal Revenue Code or its successor laws.
(e) For members for which Section 1-160 applies for periods of service on and after January 1, 2011, all remuneration for personal services performed defined as "wages" under the Social Security Enabling Act, excluding remuneration that is in excess of the annual earnings, salary, or wages of a member or participant, as provided in subsection (b-5) of Section 1-160, but including any benefits received by an employee under a sick pay plan in effect before January 1, 1981.
Compensation shall exclude lump sum salary payments: (1) for vacation; (2) for accumulated unused sick leave; (3) upon discharge or dismissal; and (4) for approved holidays. (f) Notwithstanding the other provisions of this Section, for service on or after July 1, 2013, "compensation"
does not include any stipend payable to an employee for service on a board or commission. (g) Notwithstanding any other provision of this Section,
for an employee who first becomes a participant on or after the
effective date of this amendatory Act of the 98th General
Assembly, "compensation" does not include any payments or
reimbursements for travel vouchers submitted more than 30 days
after the last day of travel for which the voucher is
submitted. (h) Notwithstanding any other provision of this Code, the
annual compensation of a Tier 1 member for the purposes of this Code
shall not exceed, for periods of service on or after the
effective date of this amendatory Act of the 98th General
Assembly, the greater of (i) the annual limitation determined from
time to time under subsection (b-5) of Section 1-160 of this
Code, (ii) the annualized compensation of the Tier 1 member as of that effective date, or (iii) the annualized compensation of the Tier 1 member immediately preceding the expiration, renewal, or amendment of an employment contract or collective bargaining agreement in effect on that effective date. (Source: P.A. 98-449, eff. 8-16-13; 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-103.10. Compensation.
(a) For periods of service prior to January 1, 1978, the full rate of salary
or wages payable to an employee for personal services performed if he worked
the full normal working period for his position, subject to the following
maximum amounts: (1) prior to July 1, 1951, $400 per month or $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 inclusive, $625 per month or $7,500
per year; (3) beginning July 1, 1957, no limitation.
In the case of service of an employee in a position involving
part-time employment, compensation shall be determined according to the
employees' earnings record.
(b) For periods of service on and after January 1, 1978, all
remuneration for personal services performed defined as "wages" under
the Social Security Enabling Act, including that part of such
remuneration which is in excess of any maximum limitation provided in
such Act, and including any benefits received by an employee under a sick
pay plan in effect before January 1, 1981, but excluding lump sum salary
payments:
(1) for vacation,
(2) for accumulated unused sick leave,
(3) upon discharge or dismissal,
(4) for approved holidays.
(c) For periods of service on or after December 16, 1978, compensation
also includes any benefits, other than lump sum salary payments made at
termination of employment, which an employee receives or is eligible to
receive under a sick pay plan authorized by law.
(d) For periods of service after September 30, 1985, compensation also
includes any remuneration for personal services not included as "wages"
under the Social Security Enabling Act, which is deducted for purposes of
participation in a program established pursuant to Section 125 of the
Internal Revenue Code or its successor laws.
(e) For members for which Section 1-160 applies for periods of service on and after January 1, 2011, all remuneration for personal services performed defined as "wages" under the Social Security Enabling Act, excluding remuneration that is in excess of the annual earnings, salary, or wages of a member or participant, as provided in subsection (b-5) of Section 1-160, but including any benefits received by an employee under a sick pay plan in effect before January 1, 1981.
Compensation shall exclude lump sum salary payments: (1) for vacation; (2) for accumulated unused sick leave; (3) upon discharge or dismissal; and (4) for approved holidays. (f) Notwithstanding the other provisions of this Section, for service on or after July 1, 2013, "compensation"
does not include any stipend payable to an employee for service on a board or commission. (Source: P.A. 98-449, eff. 8-16-13.)
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(40 ILCS 5/14-103.11) (from Ch. 108 1/2, par. 14-103.11)
Sec. 14-103.11.
Rate of Compensation.
The actual rate upon which the compensation of an individual is calculated
at any time as certified on a payroll.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
Sec. 14-103.12. Final average compensation.
(a) For retirement and
survivor annuities, "final average compensation" means the monthly
compensation obtained by dividing the total compensation of an employee
during the period of: (1) the 48 consecutive months of service within the
last 120 months of service in which the total compensation was the highest,
or (2) the total period of service, if less than 48 months, by the number
of months of service in such period; provided that for purposes of
a retirement annuity the average compensation for the last 12 months of the
48-month period shall not exceed the final average compensation by more than
25%.
(b) For death and disability benefits, in the case of a full-time
employee, "final average compensation" means the greater of (1) the rate
of compensation of the employee at the date of death or disability
multiplied by 1 in the case of a salaried employee, by 174 in the case of
an hourly employee, and by 22 in the case of a per diem employee, or (2)
for benefits commencing on or after January 1, 1991, final average
compensation as determined under subsection (a).
For purposes of this paragraph, full or part-time status shall be
certified by the employing agency. Final rate of compensation for a
part-time employee shall be the total compensation earned during the last
full calendar month prior to the date of death or disability.
(c) Notwithstanding the provisions of subsection (a), for the purpose
of calculating retirement and survivor annuities of persons with at least
20 years of eligible creditable service as defined in Section 14-110, "final average compensation" means the monthly rate of
compensation received by the person on the last day of eligible creditable
service (but not to exceed 115% of the average monthly compensation received
by the person for the last 24 months of service, unless the person was in
service as a State policeman before the effective date of this amendatory
Act of 1997), or the average monthly compensation received by the person for
the last 48 months of service prior to retirement, whichever is greater.
(d) Notwithstanding the provisions of subsection (a), for a person who
was receiving, on the date of retirement or death, a disability benefit
calculated under subdivision (b)(2) of this Section, the final average
compensation used to calculate the disability benefit may be used for
purposes of calculating the retirement and survivor annuities.
(e) In computing the final average compensation, periods of military leave
shall not be considered.
(f) The changes to this Section made by this amendatory Act of 1997
(redefining final average compensation for members under the alternative
formula) apply to members who retire on or after January 1, 1998, without
regard to whether employment terminated before the effective date of this
amendatory Act of 1997.
(g) For a member on leave of absence without pay who purchases service credit for such period of leave pursuant to subsection (l) of Section 14-104, earnings are assumed to be equal to the rate of compensation in effect immediately prior to the leave. If no contributions are required to establish service credit for the period of leave, the member may elect to establish earnings credit for the leave period within 48 months after returning to work by making the employee and employer contributions required by subsection (l) of Section 14-104, based on the rate of compensation in effect immediately prior to the leave, plus interest at the actuarially assumed rate. In determining the contributions required for establishing service credit under this subsection (g), the interest shall be calculated from the beginning of the leave of absence to the date of payment. (Source: P.A. 96-525, eff. 8-14-09.)
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(40 ILCS 5/14-103.13) (from Ch. 108 1/2, par. 14-103.13)
Sec. 14-103.13.
Membership service.
"Membership service": Service rendered
while a member of the System for which credit is allowable under this Article,
and for persons entering service on or after January 1, 1984, or after July 1,
1982 in the case of an emergency or temporary employee as defined in Sections
8b.8 and 8b.9 of the Personnel Code, service
rendered as an employee before becoming a member, if credit for such service
is received pursuant to Section 14-104.5.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/14-103.14) (from Ch. 108 1/2, par. 14-103.14)
Sec. 14-103.14.
Prior service.
"Prior service": Service rendered prior
to January 1, 1944 for which credit is allowable under this Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.15) (from Ch. 108 1/2, par. 14-103.15)
Sec. 14-103.15.
Creditable service.
"Creditable service": Membership
service and the total service certified in prior or military service certificates,
if any.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.16) (from Ch. 108 1/2, par. 14-103.16) (Text of Section before amendment by P.A. 103-746) Sec. 14-103.16. Military service. "Military service": Service in the
United States Army, Navy, Air Force, Marines or Coast Guard or any women's
auxiliary thereof for which credit is allowed under this Article.(Source: P.A. 80-841.) (Text of Section after amendment by P.A. 103-746) Sec. 14-103.16. Military service. "Military service": Service in the United States Army, Navy, Air Force, Space Force, Marines or Coast Guard or any women's auxiliary thereof for which credit is allowed under this Article.(Source: P.A. 103-746, eff. 1-1-25.) |
(40 ILCS 5/14-103.17) (from Ch. 108 1/2, par. 14-103.17)
Sec. 14-103.17.
Accumulated contributions.
"Accumulated
contributions": The sum contributed by a member including credits
granted during disability.
(Source: P.A. 81-1536.)
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(40 ILCS 5/14-103.18) (from Ch. 108 1/2, par. 14-103.18)
Sec. 14-103.18.
Annuity.
"Annuity": Annual payments for life, or as
otherwise provided in this Article, payable in 12 equal monthly
installments during the annuity payment period. The first payment shall
be made for the first whole calendar month of eligibility after
application and the last payment shall be made for the whole calendar month
in which eligibility
terminates. If an annuity to an annuitant or beneficiary, other than a
survivor annuity,
is less than $10 per month, the minimum payment shall be $10 per month.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.19) (from Ch. 108 1/2, par. 14-103.19)
Sec. 14-103.19. Actuarial tables. "Actuarial tables": Tables of mathematical functions derived from
mortality, disability and turn-over rates, combined with interest
discount factors as adopted by the board on recommendation of the
actuary.
The adopted actuarial tables shall be used to determine the amount of all benefits under this Article, including any optional forms of benefits. Optional forms of benefits must be the actuarial equivalent of the normal benefit payable under this Article. (Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/14-103.20) (from Ch. 108 1/2, par. 14-103.20)
Sec. 14-103.20.
Reversionary annuity.
"Reversionary annuity": A deferred annuity computed according to the
actuarial tables payable to a beneficiary who survives the specified
annuitant.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.21) (from Ch. 108 1/2, par. 14-103.21)
Sec. 14-103.21.
Actuarial reserves.
"Actuarial reserves": An accumulation of funds in advance of benefit
payments which will be sufficient with respect to each
member and his beneficiaries, if any, to pay the prescribed benefits,
computed according to the actuarial tables, without further
contributions by or on behalf of the member.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.22) (from Ch. 108 1/2, par. 14-103.22)
Sec. 14-103.22.
Retirement.
"Retirement": The acceptance of a retirement annuity.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.23) (from Ch. 108 1/2, par. 14-103.23)
Sec. 14-103.23.
Regular interest.
"Regular interest": Interest at such rate
determined from the actual experience of the system as may be prescribed
by the board, compounded annually. Credit for regular interest each fiscal
year on a member's individual contribution account shall be computed on
the accumulated balance in the account at the beginning of each fiscal year.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.24) (from Ch. 108 1/2, par. 14-103.24)
Sec. 14-103.24.
State.
"State": The State of Illinois.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.25) (from Ch. 108 1/2, par. 14-103.25)
Sec. 14-103.25.
Actuarial equivalent.
"Actuarial equivalent": An
annuity or benefit of equal value to the contributions plus regular
interest, annuity or other benefit, when computed upon the basis of the
actuarial tables in use by the system.
(Source: P.A. 81-1536.)
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(40 ILCS 5/14-103.26) (from Ch. 108 1/2, par. 14-103.26)
Sec. 14-103.26.
Withdrawal.
"Withdrawal": Severance of employment of a member as an
employee of the State or of all Departments, by resignation, discharge,
dismissal or layoff.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.27) (from Ch. 108 1/2, par. 14-103.27)
Sec. 14-103.27.
Fiscal year.
"Fiscal year": The period beginning on July 1 in any year and ending
on June 30 of the next succeeding year.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.28) (from Ch. 108 1/2, par. 14-103.28)
Sec. 14-103.28.
Masculine includes feminine.
"Masculine includes feminine": The masculine pronoun includes the
feminine pronoun.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.29) (from Ch. 108 1/2, par. 14-103.29)
Sec. 14-103.29.
The 1943 Act.
"The 1943 Act": "An Act to provide for the creation, maintenance and
administration of a retirement and benefit system for certain officers
and employees of the State of Illinois, their dependents and
beneficiaries", approved July 23, 1943, as amended.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.30) (from Ch. 108 1/2, par. 14-103.30)
Sec. 14-103.30.
State Universities Retirement System.
"State Universities Retirement System": The system defined in Article
15 of this Code, being a continuation of the University Retirement
System of Illinois.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.31) (from Ch. 108 1/2, par. 14-103.31)
Sec. 14-103.31.
Teachers' Retirement System of the State of Illinois.
"Teachers' Retirement System of the State of Illinois": The system
defined in Article 16 of this Code.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.32) (from Ch. 108 1/2, par. 14-103.32)
Sec. 14-103.32.
Social Security Act.
"Social Security Act": The Act of Congress approved August 14, 1935,
Chapter 531, 49 Stat. 620, officially cited as the "Social Security
Act", as heretofore or hereafter amended.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.33) (from Ch. 108 1/2, par. 14-103.33)
Sec. 14-103.33.
Federal Insurance Contribution Act.
"Federal Insurance
Contributions Act" or "FICA" means Subchapters A, B and C of Chapter 21 of
the federal Internal Revenue Code of 1986, as such Code may from time to
time be amended.
(Source: P.A. 87-11.)
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(40 ILCS 5/14-103.34) (from Ch. 108 1/2, par. 14-103.34)
Sec. 14-103.34.
Social Security Enabling Act.
"Social Security Enabling Act": Article 21 of the "Illinois Pension
Code", approved March 18, 1963, and all amendments thereto.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.35) (from Ch. 108 1/2, par. 14-103.35)
Sec. 14-103.35.
State Agency.
"State Agency": The Social Security Unit of the State Employees'
Retirement System of Illinois as defined in the Social Security Enabling
Act, or any agency succeeding to the duties thereof.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.36) (from Ch. 108 1/2, par. 14-103.36)
Sec. 14-103.36.
Covered employee.
"Covered employee": Any employee covered by coordination with the
Federal Social Security Act as herein provided.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.37) (from Ch. 108 1/2, par. 14-103.37)
Sec. 14-103.37.
Coordination.
"Coordination": A plan providing for a
coordination of the benefits payable by the system and the contributions
to be made by the member with the old age, survivors and disability
provisions of the Federal Social Security Act and the Federal Insurance
Contributions Act.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.38) (from Ch. 108 1/2, par. 14-103.38)
Sec. 14-103.38.
Noncovered employee.
"Noncovered employee": A member,
either in service or on an authorized leave of absence on October 31, 1968
who elected not to accept coordination with the Federal Social Security
Act as provided in this Act, or on or after January 1, 1969 in a position
not eligible for Social Security coverage.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-103.39) (from Ch. 108 1/2, par. 14-103.39)
Sec. 14-103.39.
"Personal services":
Beginning January 1, 1978,
employment by the State of Illinois for which compensation is certified by
a department to the State Comptroller and paid on a regular payroll.
(Source: P.A. 86-272.)
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(40 ILCS 5/14-103.40)
Sec. 14-103.40. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-587, eff. 6-4-18.)
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(40 ILCS 5/14-103.41) Sec. 14-103.41. Tier 1 member. "Tier 1 member": A member of this System who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code.
(Source: P.A. 100-587, eff. 6-4-18.) |
(40 ILCS 5/14-103.42) Sec. 14-103.42. Licensed health care professional. "Licensed health care professional": Any individual who has obtained a license through the Department of Financial and Professional Regulation under the Medical Practice Act of 1987, under the Physician Assistant Practice Act of 1987, or under the Clinical Psychologist Licensing Act or an advanced practice registered nurse licensed under the Nurse Practice Act.
(Source: P.A. 101-54, eff. 7-12-19; 102-813, eff. 5-13-22.) |
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104) Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the period of
service granted. Except as otherwise provided in this Section, the
contributions shall be based upon the employee's compensation and
contribution rate in effect on the date he last became a member of the
System; provided that for all employment prior to January 1, 1969 the
contribution rate shall be that in effect for a noncovered employee on
the date he last became a member of the System. Except as otherwise provided
in this Section, contributions permitted under this Section shall include
regular interest from the date an employee last became a member of the System
to the date of payment.
These contributions must be paid in full before retirement either in
a lump sum or in installment payments in accordance with such rules as
may be adopted by the board.
(a) Any member may make contributions as required in this Section
for any period of service, subsequent to the date of establishment, but
prior to the date of membership.
(b) Any employee who had been previously excluded from membership
because of age at entry and subsequently became eligible may elect to
make contributions as required in this Section for the period of service
during which he was ineligible.
(c) An employee of the Department of Insurance who, after January 1,
1944 but prior to becoming eligible for membership, received salary from
funds of insurance companies in the process of rehabilitation,
liquidation, conservation or dissolution, may elect to make
contributions as required in this Section for such service.
(d) Any employee who rendered service in a State office to which he
was elected, or rendered service in the elective office of Clerk of the
Appellate Court prior to the date he became a member, may make
contributions for such service as required in this Section. Any member
who served by appointment of the Governor under the Civil Administrative
Code of Illinois and did not participate in this System may make
contributions as required in this Section for such service.
(e) Any person employed by the United States government or any
instrumentality or agency thereof from January 1, 1942 through November
15, 1946 as the result of a transfer from State service by executive
order of the President of the United States shall be entitled to prior
service credit covering the period from January 1, 1942 through December
31, 1943 as provided for in this Article and to membership service
credit for the period from January 1, 1944 through November 15, 1946 by
making the contributions required in this Section. A person so employed
on January 1, 1944 but whose employment began after January 1, 1942 may
qualify for prior service and membership service credit under the same
conditions.
(f) An employee of the Department of Labor of the State of Illinois who
performed services for and under the supervision of that Department
prior to January 1, 1944 but who was compensated for those services
directly by federal funds and not by a warrant of the Auditor of Public
Accounts paid by the State Treasurer may establish credit for such
employment by making the contributions required in this Section. An
employee of the Department of Agriculture of the State of Illinois, who
performed services for and under the supervision of that Department
prior to June 1, 1963, but was compensated for those services directly
by federal funds and not paid by a warrant of the Auditor of Public
Accounts paid by the State Treasurer, and who did not contribute to any
other public employee retirement system for such service, may establish
credit for such employment by making the contributions required in this
Section.
(g) Any employee who executed a waiver of membership within
60 days prior to January 1, 1944 may, at any time while in the service of a
department, file with the board a rescission of such waiver. Upon
making the contributions required by this Section, the member shall be
granted the creditable service that would have been received if the
waiver had not been executed.
(h) Until May 1, 1990, an employee who was employed on a full-time
basis by a regional planning commission for at least 5 continuous years may
establish creditable service for such employment by making the
contributions required under this Section, provided that any credits earned
by the employee in the commission's retirement plan have been terminated.
(i) Any person who rendered full time contractual services to the General
Assembly as a member of a legislative staff may establish service credit for up
to 8 years of such services by making the contributions required under this
Section, provided that application therefor is made not later than July 1,
1991.
(j) By paying the contributions otherwise required under this Section,
plus an amount determined by the Board to be equal to the employer's normal
cost of the benefit plus interest, but with all of the interest calculated
from the date the employee last became a member of the System or November 19,
1991, whichever is later, to the date of payment, an employee may establish
service credit
for a period of up to 4 years spent in active military service for which he
does not qualify for credit under Section 14-105, provided that (1) he was
not dishonorably discharged from such military service, and (2) the amount
of service credit established by a member under this subsection (j), when
added to the amount of military service credit granted to the member under
subsection (b) of Section 14-105, shall not exceed 5 years. The change
in the manner of calculating interest under this subsection (j) made by this
amendatory Act of the 92nd General Assembly applies to credit purchased by an
employee on or after its effective date and does not entitle any person to a
refund of contributions or interest already paid.
In compliance with Section 14-152.1 of this Act concerning new benefit increases, any new benefit increase as a result of the changes to this subsection (j) made by Public Act 95-483
is funded through the employee contributions provided for in this subsection (j). Any new benefit increase as a result of the changes made to this subsection (j) by Public Act 95-483
is exempt from the provisions of subsection (d) of Section 14-152.1.
(k) An employee who was employed on a full-time basis by the Illinois
State's Attorneys Association Statewide Appellate Assistance Service
LEAA-ILEC grant project prior to the time that project became the State's
Attorneys Appellate Service Commission, now the Office of the State's
Attorneys Appellate Prosecutor, an agency of State government, may
establish creditable service for not more than 60 months service for
such employment by making contributions required under this Section.
(l) By paying the contributions otherwise required under this Section,
plus an amount determined by the Board to be equal to the employer's normal
cost of the benefit plus interest, a member may establish service credit
for periods of less than one year spent on authorized leave of absence from
service, provided that (1) the period of leave began on or after January 1,
1982 and (2) any credit established by the member for the period of leave in
any other public employee retirement system has been terminated. A member
may establish service credit under this subsection for more than one period
of authorized leave, and in that case the total period of service credit
established by the member under this subsection may exceed one year. In
determining the contributions required for establishing service credit under
this subsection, the interest shall be calculated from the beginning of the
leave of absence to the date of payment.
(l-5) By paying the contributions otherwise required under this Section,
plus an amount determined by the Board to be equal to the employer's normal
cost of the benefit plus interest, a member may establish service credit
for periods of up to 2 years spent on authorized leave of absence from
service, provided that during that leave the member represented or was employed as an officer or employee of a statewide labor organization that represents members of this System. In
determining the contributions required for establishing service credit under
this subsection, the interest shall be calculated from the beginning of the
leave of absence to the date of payment.
(m) Any person who rendered contractual services to a member of
the General Assembly as a worker in the member's district office may establish
creditable service for up to 3 years of those contractual services by making
the contributions required under this Section. The System shall determine a
full-time salary equivalent for the purpose of calculating the required
contribution. To establish credit under this subsection, the applicant must
apply to the System by March 1, 1998.
(n) Any person who rendered contractual services to a member of
the General Assembly as a worker providing constituent services to persons in
the member's district may establish
creditable service for up to 8 years of those contractual services by making
the contributions required under this Section. The System shall determine a
full-time salary equivalent for the purpose of calculating the required
contribution. To establish credit under this subsection, the applicant must
apply to the System by March 1, 1998.
(o) A member who participated in the Illinois Legislative Staff
Internship Program may establish creditable service for up to one year
of that participation by making the contribution required under this Section.
The System shall determine a full-time salary equivalent for the purpose of
calculating the required contribution. Credit may not be established under
this subsection for any period for which service credit is established under
any other provision of this Code.
(p) By paying the contributions otherwise required under this Section,
plus an amount determined by the Board to be equal to the employer's normal
cost of the benefit plus interest, a member may establish service credit
for a period of up to 8 years during which he or she was employed by the
Visually Handicapped Managers of Illinois in a vending program operated under
a contractual agreement with the Department of Rehabilitation Services or its successor agency.
This subsection (p) applies without regard to whether the person was in service on or after the effective date of this amendatory Act of the 94th General Assembly. In the case of a person who is receiving a retirement annuity on that effective date, the increase, if any, shall begin to accrue on the first annuity payment date following receipt by the System of the contributions required under this subsection (p).
(q) By paying the required contributions under this Section, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit plus interest, an employee who was laid off but returned to any State employment may establish creditable service for the period of the layoff, provided that (1) the applicant applies for the creditable service under this subsection (q) within 6 months after July 27, 2010 (the effective date of Public Act 96-1320), (2) the applicant does not receive credit for that period under any other provision of this Code, (3) at the time of the layoff, the applicant is not in an initial probationary status consistent with the rules of the Department of Central Management Services, and (4) the total amount of creditable service established by the applicant under this subsection (q) does not exceed 3 years. For service established under this subsection (q), the required employee contribution shall be based on the rate of compensation earned by the employee on the date of returning to employment after the layoff and the contribution rate then in effect, and the required interest shall be calculated at the actuarially assumed rate from the date of returning to employment after the layoff to the date of payment.
Funding for any new benefit increase, as defined in Section 14-152.1 of this Act, that is created under this subsection (q) will be provided by the employee contributions required under this subsection (q). (r) A member who participated in the University of Illinois Government Public Service Internship Program (GPSI) may establish creditable service for up to 2 years
of that participation by making the contribution required under this Section, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit plus interest.
The System shall determine a full-time salary equivalent for the purpose of
calculating the required contribution. Credit may not be established under
this subsection for any period for which service credit is established under
any other provision of this Code. (s)
A member who worked as a nurse under a contractual agreement for the Department of Public Aid, or its successor agency, the Department of Human Services, in the Client Assessment Unit and was subsequently determined to be a State employee by the United States Internal Revenue Service and the Illinois Labor Relations Board may establish creditable service for those contractual services by making the contributions required under this Section. To establish credit under this subsection, the applicant must apply to the System by July 1, 2008. The Department of Human Services shall pay an employer contribution based upon an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus interest. In compliance with Section 14-152.1 added by Public Act 94-4, the cost of the benefits provided by Public Act 95-583
are offset by the required employee and employer contributions.
(t) Any person who rendered contractual services on a full-time basis to the Illinois Institute of Natural Resources and the Illinois Department of Energy and Natural Resources may establish creditable service for up to 4 years of those contractual services by making the contributions required under this Section, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit plus interest at the actuarially assumed rate from the first day of the service for which credit is being established to the date of payment. To establish credit under this subsection (t), the applicant must apply to the System within 6 months after July 27, 2010 (the effective date of Public Act 96-1320). (u) By paying the required contributions under this Section, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus interest, a member may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2008. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2011 and (ii) not receive compensation for the furlough period. For service established under this subsection, the required employee contribution shall be based on the rate of compensation earned by the employee immediately following the date of the first furlough day in the time period specified in this subsection (u), and the required interest shall be calculated at the actuarially assumed rate from the date of the furlough to the date of payment. (v) Any member who rendered full-time contractual services to an Illinois Veterans Home operated by the Department of Veterans' Affairs may establish service credit for up
to 8 years of such services by making the contributions required under this
Section, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus interest at the actuarially assumed rate. To establish credit under this subsection, the applicant must
apply to the System no later than 6 months after July 27, 2010 (the effective date of Public Act 96-1320). (Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09; 96-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff. 7-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333, 8-12-11.)
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(40 ILCS 5/14-104.1) (from Ch. 108 1/2, par. 14-104.1)
Sec. 14-104.1.
Any member who was an elected police magistrate or
justice of the peace serving as a magistrate of the Circuit Court for
the duration of his elected term, who has not elected coverage in a
retirement system financed in whole or in part by public funds for such
elective service, may receive credit for such service, beginning as of
January 1, 1963 and for the remainder of his elective term of office by
making contributions for the period of such service based upon the
member's compensation and the contribution rate in effect at the time
the service was rendered with regular interest thereon from January
1, 1963 until the date of payment.
These contributions must be paid in full before retirement either in a
lump sum or in installment payments in accordance with such rules as may
be adopted by the Board.
(Source: P.A. 83-430.)
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(40 ILCS 5/14-104.2) (from Ch. 108 1/2, par. 14-104.2)
Sec. 14-104.2.
Any member who participated in a voluntary furlough plan
or who was subject to a 4 day work week pursuant to negotiated agreements
in fiscal years 1983 and 1984 may receive service and earnings credit for
such periods by making contributions on or before December 31, 1984, based
on the rate of compensation in effect immediately prior to the furlough
or the fifth work day of any calendar week and the contribution rate then
in effect. Contributions made under this Section must be made prior to
retirement except that any member who retired on or before August 22, 1983
may receive service and earnings credit for such periods by making the
contribution as required in this Section. Any annuitant who establishes
service and earnings credit as herein provided shall have his retirement
annuity adjusted retroactively to the date of retirement.
(Source: P.A. 84-1308.)
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(40 ILCS 5/14-104.3) (from Ch. 108 1/2, par. 14-104.3)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-104.3.
Notwithstanding provisions contained in
Section 14-103.10, any person who first becomes a member before
the effective date of this amendatory Act of the 98th General
Assembly and who at the time of retirement and after December
6, 1983 receives compensation
in a lump sum for accumulated vacation, sickness, or personal business may
receive service credit for such periods by making contributions within 90
days of withdrawal, based on the rate of compensation in effect immediately
prior to retirement and the contribution rate then in effect. Any person who first becomes a member on or after
the effective date of this amendatory Act of the 98th General Assembly and who receives compensation in a lump sum for
accumulated vacation, sickness, or personal business may not
receive service credit for such periods. Exercising
the option provided in
this Section shall not change a member's date of withdrawal or final average
compensation for purposes of computing the amount or effective date of a
retirement annuity. Any annuitant who establishes service credit as herein
provided shall have his retirement annuity adjusted retroactively to the
date of retirement.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-104.3.
Notwithstanding provisions contained in
Section 14-103.10, any member who at the time of retirement and after December
6, 1983 receives compensation
in a lump sum for accumulated vacation, sickness, or personal business may
receive service credit for such periods by making contributions within 90
days of withdrawal, based on the rate of compensation in effect immediately
prior to retirement and the contribution rate then in effect. Exercising
the option provided in
this Section shall not change a member's date of withdrawal or final average
compensation for purposes of computing the amount or effective date of a
retirement annuity. Any annuitant who establishes service credit as herein
provided shall have his retirement annuity adjusted retroactively to the
date of retirement.
(Source: P.A. 83-1362.)
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(40 ILCS 5/14-104.4) (from Ch. 108 1/2, par. 14-104.4)
Sec. 14-104.4.
For purposes of this Article, the term "award for back pay under a
statute" means an award, determination or agreement granted or approved by
a court or administrative agency which arises under a State or federal law
protecting an employee's right to employment or wages, and which provides
for payment by the employer for a period of deemed employment for which the
employee has not already established service credit.
Membership service credit will be retroactively granted
pursuant to an "award for back pay under a statute" for the time
period during which the service was deemed to have been performed.
Employee contributions will
be deducted at the applicable rates in effect for the time periods
involved. The employer's share of retirement contributions will be paid at
the current Board rate in effect at the time of payment.
(Source: P.A. 85-1008.)
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(40 ILCS 5/14-104.5) (from Ch. 108 1/2, par. 14-104.5)
Sec. 14-104.5.
A member who enters service on or after January 1, 1984,
or after July 1, 1982 as an emergency or temporary employee, as defined in
Sections 8b.8 and 8b.9 of the Personnel Code, may
receive membership service credit for periods of employment during which he
or she was an employee but not a member by making contributions for such
periods based on his or her compensation and the contribution rate in
effect when he or she last became a member of the System, plus regular
interest thereon to the date of payment unless payment is made within
the first 6 months after becoming a member or prior to July 1, 1984.
(Source: P.A. 90-655, eff. 7-30-98.)
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(40 ILCS 5/14-104.6) (from Ch. 108 1/2, par. 14-104.6)
Sec. 14-104.6.
Service transferred from Article 16.
Service also
includes the following:
(a) Any period as a teacher employed by the Department of Corrections
for which credit was established under Article 16 of this Code, subject to
the following conditions: (1) the credits accrued for such employment under
Article 16 have been transferred to this System; and (2) the participant has
contributed to this System an amount equal to (A) employee contributions at the
rate in effect for noncoordinated eligible creditable service at the date of
membership in this System, based upon the salary in effect during such period
of service, plus (B) the employer's share of the normal cost under this System
for each year that credit is being established, based on the salary in effect
during such period of service, plus (C) regular interest, compounded annually,
from July 1, 1987 to the date of payment, less (D) the amount transferred on
behalf of the participant under Section 16-131.6.
(b) Any period as a security employee of the Department of Human
Services, as defined in Section 14-110, for which credit was established
under Article 16 of this Code, subject to the following conditions:
(1) the credits accrued for that employment under Article 16 have been
transferred to this System; and (2) the participant has contributed to this
System an amount equal to (A) employee contributions at the rate in effect for
noncoordinated eligible creditable service at the date of membership in this
System, based upon the salary in effect during the period of service, plus (B)
the employer's share of the normal cost under this System for each year that
credit is being established, based on the salary in effect during the period
of service, plus (C) regular interest, compounded annually, from July 1, 2001
to the date of payment, less (D) the amount transferred on behalf of the
participant under Section 16-131.6.
(c) Credit established under this Section shall be deemed
noncoordinated eligible creditable service as defined in Section 14-110.
(Source: P.A. 92-14, eff. 6-28-01.)
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(40 ILCS 5/14-104.7) (from Ch. 108 1/2, par. 14-104.7)
Sec. 14-104.7.
Payments and Rollovers.
(a) The Board may adopt rules
prescribing the manner of repaying refunds and purchasing any optional
credits permitted under this Article. The rules may prescribe the manner
of calculating interest when such payments or repayments are made in
installments.
(b) Rollover contributions from other retirement plans qualified under
the U.S. Internal Revenue Code may be used to purchase any optional credit
or repay any refund permitted under this Article.
(Source: P.A. 86-1488.)
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(40 ILCS 5/14-104.8) (from Ch. 108 1/2, par. 14-104.8)
Sec. 14-104.8.
Grant of noncoordinated service credit.
The entire
period of service between June 30, 1969 and December 15, 1984 during which
an employee was erroneously classified as eligible for federal Social
Security coverage and for which the employee paid FICA contributions that
were not refundable at the time the error was discovered shall be deemed to
be service as a noncovered employee, notwithstanding that the employee has
paid FICA contributions and retains federal Social Security coverage for
that period, if the employee applies to the Board within 30 days after the
effective date of this amendatory Act of 1993.
(Source: P.A. 87-1265.)
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(40 ILCS 5/14-104.9) (from Ch. 108 1/2, par. 14-104.9)
Sec. 14-104.9.
Credit for leave of absence.
A member may establish
creditable service under this Article for up to one year during which he or
she was on a leave of absence from employment for which credit is not
otherwise available under this Code, subject to the following conditions: (1)
the leave of absence terminated before January 1, 1971, and (2) on or before
March 1, 1993, the member files a written application with the System and
contributes to the System an amount determined by the Board, equal to (i)
employee contributions at the appropriate rate in effect for members of this
System during the period for which credit is being established, and based upon
the compensation received by the applicant at the time the leave began, plus
(ii) the employer's share of the normal cost of the creditable service being
established, plus (iii) regular interest, compounded annually, from the date of
service to the date of payment.
(Source: P.A. 87-1265.)
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(40 ILCS 5/14-104.10)
Sec. 14-104.10.
Federal or out-of-state employment.
A contributing
employee may establish additional service credit for periods of full-time
employment by the federal government or a unit of state or local government
located outside Illinois for which he or she does not qualify for credit under
any other provision of this Article, provided that (i) the amount of service
credit established by a person under this Section shall not exceed 8 years or
40% of his or her membership service under this Article, whichever is less,
(ii) the amount of service credit established by a person under this Section
for federal employment, when added to the amount of all military service credit
granted to the person under this Article, shall not exceed 8 years, and (iii)
any credit received for the federal or out-of-state employment in any federal
or other public employee pension fund or retirement system has been terminated
or relinquished. Credit may not be established under this Section for any
period of military service or for any period for which credit has been or may
be established under Section 14-110 or any other provision of this Article.
In order to establish service credit under this Section, the applicant must
submit a written application to the System by June 30, 1999,
including documentation of the federal or out-of-state employment satisfactory
to the Board, and pay to the System (1) employee contributions at the rates
provided in this Article based upon the person's salary on the last day as a
participating employee prior to the federal or out-of-state employment, or on
the first day as a participating employee after that employment, whichever is
greater, plus (2) an amount determined by the Board to be equal to the
employer's normal cost of the benefits accrued for that employment, plus (3)
regular interest on items (1) and (2) from the date of conclusion of the
employment to the date of payment.
(Source: P.A. 90-32, eff. 6-27-97; 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
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(40 ILCS 5/14-104.11)
Sec. 14-104.11.
Illinois Finance Authority.
An employee may
establish creditable service for periods prior to the date upon which the
Illinois Finance Authority first becomes a department
(as defined
in Section 14-103.04) during which he or she was employed by the Illinois
Finance Authority or the Illinois Industrial
Development Authority,
by applying in writing and paying to the System an amount equal to (i) employee
contributions for the period for which credit is being established, based upon
the employee's compensation and the applicable contribution rate in effect on
the date he or she last became a member of the System, plus (ii) the employer's
normal cost of the credit established, plus (iii) interest on the amounts in
items (i) and (ii) at the rate of 2.5% per year, compounded annually, from the
date the applicant last became a member of the System to the date of payment.
This payment must be paid in full before retirement, either in a lump sum or in
installment payments in accordance with the rules of the Board.
(Source: P.A. 93-205, eff. 1-1-04.)
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(40 ILCS 5/14-104.12)
Sec. 14-104.12. Early termination incentives under the State Finance Act. Notwithstanding any other provision of this Article and notwithstanding that they may be payable from a personal services line item, early termination incentives paid under Section 14a.5 of the State Finance Act: (1) shall not be included in, and do not affect the | ||
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(2) do not entitle the recipient to establish any | ||
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(3) do not require and shall not result in the | ||
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(4) have no effect under this Article except to | ||
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(Source: P.A. 93-839, eff. 7-30-04.) |
(40 ILCS 5/14-104.13) Sec. 14-104.13. Chicago Metropolitan Agency for Planning; employee election.
(a) Within one year after the effective date of this Section, a person employed by the Chicago Metropolitan Agency for Planning (formerly the Regional Planning Board) on the effective date of this Section who was a member of this System as an employee of the Chicago Area Transportation Study may elect to participate in this System for his or her employment with the Chicago Metropolitan Agency for Planning.
(b) An employee who elects to participate in the System pursuant to subsection (a) may elect to transfer any creditable service earned by the employee under the Illinois Municipal Retirement Fund for his or her employment with the Chicago Metropolitan Agency for Planning (formerly the Regional Planning Board) upon payment to this System of the amount by which (1) the employer and employee contributions that would have been required if the employee had participated in this System during the period for which the credit under Section 7-139.12 is being transferred, plus interest thereon from the date of such participation to the date of payment, exceeds (2) the amounts actually transferred under Section 7-139.12 to this System.
(Source: P.A. 95-677, eff. 10-11-07.) |
(40 ILCS 5/14-105) (from Ch. 108 1/2, par. 14-105)
Sec. 14-105.
Service credit for which contributions are not required.
(a) Each employee in service on December 31, 1943, or then on leave of
absence not in conflict with Civil Service rules, if such leave had not
extended for more than one year continuously, or who is otherwise entitled
to prior service credit, who becomes a member shall file with the board
on a form supplied by it, a detailed statement of all service rendered prior
to January 1, 1944, for which credit is claimed.
Upon verification thereof, the board shall issue a prior service certificate
certifying length of prior service. A prior service certificate shall be
conclusive so long as membership continues, provided, that a member may,
within one year from the date of original issuance of the certificate or
modification thereof, request the board to modify or correct the certificate.
When membership ceases, a prior service certificate shall become void,
and shall be revived only under the conditions specified in this Article.
In the computation of prior service, the following schedule shall govern:
9 months of service or more during any fiscal year constitutes a year of
service; 6 to 9 months, 3/4 of a year; 3 to 6 months, 1/2 year; less than
3 months shall not be considered. Credit shall not be allowed for any period
of absence without compensation or for less than 15 days service in any
month, nor shall more than one year of service be creditable for all service
rendered in any one fiscal year.
(b) Any member shall receive credit for military service provided all
of the following conditions are met:
(1) the member was a State employee within 6 months | ||
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(2) the member returns as a State employee within 15 | ||
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(3) the member establishes creditable service for | ||
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The total amount of creditable military service for any member during
his entire term of service shall not exceed 5 years in the aggregate, except
that any member who on July 1, 1963, had accrued more than 5 years of such
credit shall be entitled to the total amount of such accrued credit.
(c) Any active member of the System who (1) was earning eligible
creditable service under subdivision (b)(12) of Section 14-110 on January
1, 1992, and (2) has at least 17 years of creditable service under Article
5, and (3) is eligible to transfer that creditable service to this System
under subsection (c) of Section 5-236 of this Code, and (4) applies in
writing for transfer of that creditable service to this System within 30
days after the effective date of this amendatory Act of 1993, shall receive
eligible creditable service in this System for that creditable service upon
receipt by this System of the amounts transferred under Section 5-236. No
additional contributions shall be required for the transferred service.
(d) Any active member of the system who (1) was earning eligible
creditable service under subdivision (b)(5) of Section 14-110 on January 1,
1992, and (2) has no more than 7 years of creditable service as a municipal
conservator of the peace under Article 7, and (3) is eligible to transfer
that creditable service to this System under subsection (a) of Section
7-139.7 of this Code, and (4) makes written notification to this System by
January 31, 1994, shall receive eligible creditable service in this System
for that service upon receipt by this System of the amounts transferred
under Section 7-139.7. No additional contributions shall be required for
the transferred service.
(e) Any member may establish creditable service and earnings credit
for a period of voluntary or involuntary furlough, not exceeding 5 days,
beginning on or after December 1, 2001 and ending before January 1, 2003, that
is utilized as a means of addressing a State fiscal emergency. To receive
this credit, the member must apply in writing to the System or the member's
employer before July 1, 2005. No additional contribution is required for
this credit.
(Source: P.A. 92-566, eff. 6-25-02.)
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(40 ILCS 5/14-105.1) (from Ch. 108 1/2, par. 14-105.1)
Sec. 14-105.1.
(a) Any active (and until February 1, 1993, any
former) member of the General Assembly Retirement System may apply for
transfer of his credits and creditable service accumulated
under this System to the General Assembly System or a Fund established
under Article 5 or 12 of this Code. Such credits and creditable
service shall be transferred forthwith. Payment by this System to the General
Assembly Retirement System or the Fund established under Article 5 or 12
shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in this System as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) An active (and until February 1, 1993, a former) member of the
General Assembly who has service credits and creditable service under the
System may establish additional service credits and creditable service for
periods during which he was an elected official and could have elected to
participate but did not so elect. Service credits and creditable service
may be established by payment to the System of an amount equal to the
contributions he would have made if he had elected to participate, plus
regular interest to the date of payment.
(c) An active (and until February 1, 1993, a former) member of the
General Assembly Retirement System may reinstate service and service
credits terminated upon receipt of a separation benefit, by payment to the
System of the amount of the separation benefit plus regular interest
thereon to the date of payment.
(Source: P.A. 86-27; 86-273; 86-1028; 86-1488; 87-794.)
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(40 ILCS 5/14-105.2) (from Ch. 108 1/2, par. 14-105.2)
Sec. 14-105.2.
Validation of service credits.
An active member of the
General Assembly Retirement System or the Judges Retirement System
having no service credits or creditable
service in the System, may establish service credit and creditable service
for periods during which he was an employee and did not participate in the
System. Service credits and creditable service may be established by payment
to the System of an amount equal to the contributions he would have made
if he had participated,
plus regular interest to the date of payment,
together with a like amount representing the employer contributions. The
total period of such creditable service that may be validated shall not exceed 8 years.
(Source: P.A. 85-1008.)
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(40 ILCS 5/14-105.3) (from Ch. 108 1/2, par. 14-105.3)
Sec. 14-105.3.
Any active member of the Judges Retirement System and,
between January 1 and January 15, 1983, any deputy sheriff who is an active
member of a Fund created under Article 9 of this Act may apply for transfer
of his credits and creditable service accumulated under this System to the
Judges Retirement System or such Article 9 Fund, respectively.
Such credits and creditable service shall be transferred forthwith. Payment
by this System to the Judges Retirement System or such Article 9 Fund
shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the System on the date of transfer; and
(2) employer contributions in an amount equal to the amount of member
contributions as determined under subparagraph (1). Participation in this System as
to any credits transferred under this Section shall terminate on the date of
transfer.
(Source: P.A. 82-768.)
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(40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
Sec. 14-105.4.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in this System for the
duration of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this System,
upon payment to this System of (1) the amount by which the employer and
employee contributions that would have been required if he had participated
in this System during the period for which credit under Section 2-117.1
is being transferred, plus regular interest, exceeds the amounts actually
transferred under that Section to this System, plus (2) regular interest
thereon from the date of such participation
to the date of payment.
(Source: P.A. 83-430.)
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(40 ILCS 5/14-105.5) (from Ch. 108 1/2, par. 14-105.5)
Sec. 14-105.5.
Transfer of creditable service to Article 8, 9 or 13
Fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, any county officer elected by vote of the people
who is a participant in the pension fund established under Article 9 of
this Code, any chief of the County Police Department or undersheriff of
the County Sheriff's Department who has elected under subparagraph (j) of
Section 9-128.1 to be included within the provisions of Section 9-128.1 of
Article 9 of this Code, and any elected sanitary district commissioner who is
a participant in a pension fund established under Article 13 of this Code,
may apply for transfer of his credits and creditable service accumulated
under this System to such Article 8, 9 or 13 fund. Such creditable service
shall be transferred forthwith. Payment by this System to the Article
8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in this System as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary district commissioner who has credits and creditable service under the
System may establish additional credits and creditable service for periods
during which he could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the System of
an amount equal to the contributions he would have made if he had elected to
participate, plus regular interest to the date of payment.
(c) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a refund, by payment to the System of the amount
of the refund plus regular interest thereon to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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(40 ILCS 5/14-105.6) (from Ch. 108 1/2, par. 14-105.6)
Sec. 14-105.6.
(a) Until July 1, 1990, any active or
inactive member of the pension fund established under Article 7 of
this Code who has been a county sheriff may apply for transfer of his
creditable service accumulated under this System to such Article 7 fund. Such
creditable service shall be transferred forthwith. Payment by this System
to the Article 7 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant for such
service, including regular interest, on the books of the System on the date
of transfer; and
(2) employer contributions in an amount equal to the amount of member
contributions as determined under item (1) above.
Participation in this System as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any person transferring credit under this Section may reinstate
credits and creditable service terminated upon receipt of a refund, by
payment to the System, prior to July 1, 1990, of the amount of the refund
plus regular interest thereon to the date of payment. This is not a
limitation on the repayment provisions of Article 20.
(Source: P.A. 86-273.)
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(40 ILCS 5/14-105.7)
Sec. 14-105.7.
Transfer to Article 9 fund.
(a) Until July 1, 2003, any active or inactive member of the
System who has established creditable service under paragraph (i) of Section
14-104 (relating to contractual service to the General Assembly) and is an
active or former contributor to the pension fund established under Article
9 of this Code may apply to the Board for transfer of all of his or her
creditable service accumulated under this System to the Article 9 fund. The
creditable service shall be transferred forthwith. Payment by this System to
the Article 9 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in this System as to the credits transferred under this
Section terminates on the date of transfer.
(b) Any person transferring credit under this Section may reinstate
credits and creditable service terminated upon receipt of a refund, by
paying to the System, before July 1, 2003, the amount of the
refund plus regular interest from the date of refund to the date of payment.
(c) The changes to this Section and Section 9-121.15 made by this
amendatory Act of the 92nd General Assembly apply without regard to whether
the person is in active service, under this System or the Article 9 Fund, on
or after the effective date of this amendatory Act.
(Source: P.A. 92-599, eff. 6-28-02.)
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(40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-106. Membership service credit.
(a) After January 1, 1944, all
service of a member since he last became a member with respect to which
contributions are made shall count as membership service; provided, that
for service on and after July 1, 1950, 12 months of service shall
constitute a year of membership service, the completion of 15 days or
more of service during any month shall constitute 1 month of membership
service, 8 to 15 days shall constitute 1/2 month of membership service
and less than 8 days shall constitute 1/4 month of membership service.
The payroll record of each department shall constitute conclusive
evidence of the record of service rendered by a member.
(b) For a member who is employed and paid on an academic-year basis
rather than on a 12-month annual basis, employment for a full academic year
shall constitute a full year of membership service, except that the member
shall not receive more than one year of membership service credit (plus any
additional service credit granted for unused sick leave) for service during
any 12-month period. This subsection (b) applies to all such service for which
the member has not begun to receive a retirement annuity before January 1,
2001.
(c) A person who first becomes a member before
the effective date of this amendatory Act of the 98th General
Assembly shall be entitled to additional service credit, under
rules prescribed by the Board, for accumulated unused sick leave credited
to his account in the last Department on the date of withdrawal from
service or for any period for which he would have been eligible to receive
benefits under a sick pay plan authorized by law, if he had suffered a
sickness or accident on the date of withdrawal from service. It shall be the
responsibility of the last Department to certify to the Board the length of
time salary or benefits would have been paid to the member based upon the
accumulated unused sick leave or the applicable sick pay plan if he had
become entitled thereto because of sickness on the date that his status as
an employee terminated. This period of service credit granted under this
paragraph shall not be considered in determining the date the retirement
annuity is to begin, or final average compensation.
(d) A person who first becomes a member on or after the effective date of this amendatory Act of the 98th General
Assembly shall not be entitled to additional service credit for
accumulated unused sick leave. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-106.
Membership service credit.
(a) After January 1, 1944, all
service of a member since he last became a member with respect to which
contributions are made shall count as membership service; provided, that
for service on and after July 1, 1950, 12 months of service shall
constitute a year of membership service, the completion of 15 days or
more of service during any month shall constitute 1 month of membership
service, 8 to 15 days shall constitute 1/2 month of membership service
and less than 8 days shall constitute 1/4 month of membership service.
The payroll record of each department shall constitute conclusive
evidence of the record of service rendered by a member.
(b) For a member who is employed and paid on an academic-year basis
rather than on a 12-month annual basis, employment for a full academic year
shall constitute a full year of membership service, except that the member
shall not receive more than one year of membership service credit (plus any
additional service credit granted for unused sick leave) for service during
any 12-month period. This subsection (b) applies to all such service for which
the member has not begun to receive a retirement annuity before January 1,
2001.
(c) A member shall be entitled to additional service credit, under
rules prescribed by the Board, for accumulated unused sick leave credited
to his account in the last Department on the date of withdrawal from
service or for any period for which he would have been eligible to receive
benefits under a sick pay plan authorized by law, if he had suffered a
sickness or accident on the date of withdrawal from service. It shall be the
responsibility of the last Department to certify to the Board the length of
time salary or benefits would have been paid to the member based upon the
accumulated unused sick leave or the applicable sick pay plan if he had
become entitled thereto because of sickness on the date that his status as
an employee terminated. This period of service credit granted under this
paragraph shall not be considered in determining the date the retirement
annuity is to begin, or final average compensation.
(Source: P.A. 92-14, eff. 6-28-01.)
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(40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-107. Retirement annuity - service and age - conditions. (a) A member is entitled to a retirement annuity after having at least 8 years of
creditable service.
(b) A member who has at least 35 years of creditable service may claim his
or her retirement annuity at any age.
A member having at least 8 years of creditable service but less than 35 may
claim his or her retirement annuity upon or after attainment of age 60
or, beginning January 1, 2001, any lesser age which, when added to the
number of years of his or her creditable service, equals at least 85.
A member upon or after attainment of age 55 having at least 25 years of creditable service (30 years if retirement is before
January 1, 2001) may elect to receive the lower retirement annuity provided
in paragraph (c) of Section 14-108 of this Code. For purposes of the rule
of 85, portions of years shall be counted in whole months.
(c) Notwithstanding subsection (b) of this Section, for a Tier 1 member who begins receiving a retirement annuity under this Section on or after July 1, 2014, the required retirement age under subsection (b) is increased as follows, based on the Tier 1 member's age on June 1, 2014: (1) If he or she is at least age 46 on June 1, 2014, | ||
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(2) If he or she is at least age 45 but less than age | ||
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(3) If he or she is at least age 44 but less than age | ||
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(4) If he or she is at least age 43 but less than age | ||
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(5) If he or she is at least age 42 but less than age | ||
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(6) If he or she is at least age 41 but less than age | ||
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(7) If he or she is at least age 40 but less than age | ||
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(8) If he or she is at least age 39 but less than age | ||
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(9) If he or she is at least age 38 but less than age | ||
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(10) If he or she is at least age 37 but less than | ||
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(11) If he or she is at least age 36 but less than | ||
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(12) If he or she is at least age 35 but less than | ||
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(13) If he or she is at least age 34 but less than | ||
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(14) If he or she is at least age 33 but less than | ||
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(15) If he or she is at least age 32 but less than | ||
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(16) If he or she is less than age 32 on June 1, | ||
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Notwithstanding Section 1-103.1, this subsection (c) applies without regard to whether or not the Tier 1 member is in active service under this Article on or after the effective date of this amendatory Act of the 98th General Assembly. (d) The allowance shall begin with the first full calendar month specified in the
member's application therefor, the first day of which shall not be before the
date of withdrawal as approved by the board. Regardless of the date of
withdrawal, the allowance need not begin within one year of application
therefor.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-107.
Retirement annuity - service and age - conditions.
A member is entitled to a retirement annuity after having at least 8 years of
creditable service.
A member who has at least 35 years of creditable service may claim his
or her retirement annuity at any age.
A member having at least 8 years of creditable service but less than 35 may
claim his or her retirement annuity upon or after attainment of age 60
or, beginning January 1, 2001, any lesser age which, when added to the
number of years of his or her creditable service, equals at least 85.
A member upon or after attainment of age 55 having at least 25 years of creditable service (30 years if retirement is before
January 1, 2001) may elect to receive the lower retirement annuity provided
in paragraph (c) of Section 14-108 of this Code. For purposes of the rule
of 85, portions of years shall be counted in whole months.
The allowance shall begin with the first full calendar month specified in the
member's application therefor, the first day of which shall not be before the
date of withdrawal as approved by the board. Regardless of the date of
withdrawal, the allowance need not begin within one year of application
therefor.
(Source: P.A. 91-927, eff. 12-14-00.)
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(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-108. Amount of retirement annuity. A member who has contributed to the System for at least 12 months shall
be entitled to a prior service annuity for each year of certified prior
service credited to him, except that a member shall receive 1/3 of the prior
service annuity for each year of service for which contributions have been
made and all of such annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts shall be payable
for service of less than a full year after completion of at least 12 months.
The total period of service to be considered in establishing the measure
of prior service annuity shall include service credited in the Teachers'
Retirement System of the State of Illinois and the State Universities
Retirement System for which contributions have been made by the member to
such systems; provided that at least 1 year of the total period of 3 years
prescribed for the allowance of a full measure of prior service annuity
shall consist of membership service in this system for which credit has been
granted.
(a) In the case of a member who retires on or after January 1, 1998 and
is a noncovered employee, the retirement annuity for membership service and
prior service shall be 2.2% of final average compensation for each year of
service. Any service credit established as a covered employee shall be
computed as stated in
paragraph (b).
(b) In the case of a member who retires on or after January 1, 1998
and is a covered employee, the retirement annuity for membership
service and prior service shall be computed as stated in paragraph (a) for
all service credit established as a noncovered employee; for service credit
established as a covered employee it shall be 1.67% of final average
compensation for each year of service.
(c) For a member
retiring after attaining age 55 but before age 60 with at least 30 but less
than 35 years of creditable service if retirement is before January 1, 2001, or
with at least 25 but less than 30 years of creditable service if retirement is
on or after January 1, 2001, the retirement annuity shall be reduced by 1/2
of 1% for each month that the member's age is under age 60 at the time of
retirement. For members to whom subsection (c) of Section 14-107 applies, the references to age 55 and 60 in this subsection (c) are increased as provided in subsection (c) of Section 14-107.
(d) A retirement annuity shall not exceed 75% of final average compensation,
subject to such extension as may result from the application of Section 14-114
or Section 14-115.
(e) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county employment in a
county Department of Public Aid in counties of 3,000,000 or more population,
under a plan of coordination with the Old Age, Survivors and Disability
provisions thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance provisions
at the date of acceptance of a retirement annuity, shall not be less than
the amount for which the member would have been eligible if coordination
were not applicable.
(f) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments under the Federal
Social Security Act at the date of acceptance of a retirement annuity, shall
not be less than an amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such Federal Act,
will equal the annuity which would otherwise be payable if the coordinated
plan of coverage were not applicable.
(g) In the case of a member who is a noncovered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be: if retirement occurs on or after January 1, 2001, 3% of final average
compensation for each year of creditable service; or if retirement occurs
before January 1, 2001, 1.9% of final average compensation for each of the
first 10 years of service, 2.1% for each of the next 10 years of
service, 2.25% for each year of service in excess of 20 but not
exceeding 30, and 2.5% for each year in excess of 30; except that the
annuity may be calculated under subsection (a) rather than this subsection (g)
if the resulting annuity is greater.
(h) In the case of a member who is a covered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be: if retirement occurs on or after January 1, 2001, 2.5% of final average
compensation for each year of creditable service; if retirement occurs before
January 1, 2001, 1.67% of final average compensation for each of the first
10 years of service, 1.90% for each of the next 10 years of
service, 2.10% for each year of service in excess of 20 but not
exceeding 30, and 2.30% for each year in excess of 30.
(i) For the purposes of this Section and Section 14-133 of this Act,
the term "security employee of the Department of Corrections" and the term
"security employee of the Department of Human Services" shall have the
meanings ascribed to them in subsection (c) of Section 14-110.
(j) The retirement annuity computed pursuant to paragraphs (g) or (h)
shall be applicable only to those security employees of the Department of
Corrections and security employees of the Department of Human Services who
have at least 20 years of membership service and who are not eligible for
the alternative retirement annuity provided under Section 14-110. However,
persons transferring to this System under Section 14-108.2 or 14-108.2c
who have service credit under Article 16 of this Code may count such service
toward establishing their eligibility under the 20-year service requirement of
this subsection; but such service may be used only for establishing such
eligibility, and not for the purpose of increasing or calculating any benefit.
(k) (Blank).
(l) The changes to this Section made by this amendatory Act of 1997
(changing certain retirement annuity formulas from a stepped rate to a flat
rate) apply to members who retire on or after January 1, 1998, without regard
to whether employment terminated before the effective date of this amendatory
Act of 1997. An annuity shall not be calculated in steps by using the new flat
rate for some steps and the superseded stepped rate for other steps of the same
type of service.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been
held unconstitutional)
Sec. 14-108.
Amount of retirement annuity.
A member who has contributed to the System for at least 12 months shall
be entitled to a prior service annuity for each year of certified prior
service credited to him, except that a member shall receive 1/3 of the prior
service annuity for each year of service for which contributions have been
made and all of such annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts shall be payable
for service of less than a full year after completion of at least 12 months.
The total period of service to be considered in establishing the measure
of prior service annuity shall include service credited in the Teachers'
Retirement System of the State of Illinois and the State Universities
Retirement System for which contributions have been made by the member to
such systems; provided that at least 1 year of the total period of 3 years
prescribed for the allowance of a full measure of prior service annuity
shall consist of membership service in this system for which credit has been
granted.
(a) In the case of a member who retires on or after January 1, 1998 and
is a noncovered employee, the retirement annuity for membership service and
prior service shall be 2.2% of final average compensation for each year of
service. Any service credit established as a covered employee shall be
computed as stated in
paragraph (b).
(b) In the case of a member who retires on or after January 1, 1998
and is a covered employee, the retirement annuity for membership
service and prior service shall be computed as stated in paragraph (a) for
all service credit established as a noncovered employee; for service credit
established as a covered employee it shall be 1.67% of final average
compensation for each year of service.
(c) For a member
retiring after attaining age 55 but before age 60 with at least 30 but less
than 35 years of creditable service if retirement is before January 1, 2001, or
with at least 25 but less than 30 years of creditable service if retirement is
on or after January 1, 2001, the retirement annuity shall be reduced by 1/2
of 1% for each month that the member's age is under age 60 at the time of
retirement.
(d) A retirement annuity shall not exceed 75% of final average compensation,
subject to such extension as may result from the application of Section 14-114
or Section 14-115.
(e) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county employment in a
county Department of Public Aid in counties of 3,000,000 or more population,
under a plan of coordination with the Old Age, Survivors and Disability
provisions thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance provisions
at the date of acceptance of a retirement annuity, shall not be less than
the amount for which the member would have been eligible if coordination
were not applicable.
(f) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments under the Federal
Social Security Act at the date of acceptance of a retirement annuity, shall
not be less than an amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such Federal Act,
will equal the annuity which would otherwise be payable if the coordinated
plan of coverage were not applicable.
(g) In the case of a member who is a noncovered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be: if retirement occurs on or after January 1, 2001, 3% of final average
compensation for each year of creditable service; or if retirement occurs
before January 1, 2001, 1.9% of final average compensation for each of the
first 10 years of service, 2.1% for each of the next 10 years of
service, 2.25% for each year of service in excess of 20 but not
exceeding 30, and 2.5% for each year in excess of 30; except that the
annuity may be calculated under subsection (a) rather than this subsection (g)
if the resulting annuity is greater.
(h) In the case of a member who is a covered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be: if retirement occurs on or after January 1, 2001, 2.5% of final average
compensation for each year of creditable service; if retirement occurs before
January 1, 2001, 1.67% of final average compensation for each of the first
10 years of service, 1.90% for each of the next 10 years of
service, 2.10% for each year of service in excess of 20 but not
exceeding 30, and 2.30% for each year in excess of 30.
(i) For the purposes of this Section and Section 14-133 of this Act,
the term "security employee of the Department of Corrections" and the term
"security employee of the Department of Human Services" shall have the
meanings ascribed to them in subsection (c) of Section 14-110.
(j) The retirement annuity computed pursuant to paragraphs (g) or (h)
shall be applicable only to those security employees of the Department of
Corrections and security employees of the Department of Human Services who
have at least 20 years of membership service and who are not eligible for
the alternative retirement annuity provided under Section 14-110. However,
persons transferring to this System under Section 14-108.2 or 14-108.2c
who have service credit under Article 16 of this Code may count such service
toward establishing their eligibility under the 20-year service requirement of
this subsection; but such service may be used only for establishing such
eligibility, and not for the purpose of increasing or calculating any benefit.
(k) (Blank).
(l) The changes to this Section made by this amendatory Act of 1997
(changing certain retirement annuity formulas from a stepped rate to a flat
rate) apply to members who retire on or after January 1, 1998, without regard
to whether employment terminated before the effective date of this amendatory
Act of 1997. An annuity shall not be calculated in steps by using the new flat
rate for some steps and the superseded stepped rate for other steps of the same
type of service.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
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(40 ILCS 5/14-108.2) (from Ch. 108 1/2, par. 14-108.2)
Sec. 14-108.2.
Any person employed by the Department of Corrections
who is a member of the Teachers' Retirement System established under
Article 16 of this Code may elect to become a member of this System on
either June 1, 1987 or July 1, 1987, by notifying the board of his
election in writing on or before May 31, 1987.
For such persons electing to become covered employees, participation in
the Article 16 system shall terminate on June 1, 1987, and membership in
this System shall begin on that date.
For such persons electing to become noncovered employees, participation
in the Article 16 system shall terminate on July 1, 1987, and
membership in this System shall begin on that date.
(Source: P.A. 84-1472.)
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(40 ILCS 5/14-108.2a)
Sec. 14-108.2a.
Former Chicago public health employees.
(a) This Section applies only to persons who were employed at any time
during the period July 13 through December 31, 1993, by the City of Chicago
Department of Public Health in connection with clinical health laboratory
functions that are transferred to the State pursuant to an intergovernmental
agreement, and who become employed by the Illinois Department of Public Health
before July 1, 1994 to perform services relating to those transferred
functions.
For the purposes of this Section and Section 8-230.4, the "dual eligibility
period" of a person to whom this Section applies means the period beginning
when the person is employed by the Illinois Department of Public Health to
perform services relating to the transferred clinical health laboratory
functions and ending on the last day of the second complete pay period of that
employment following the effective date of this Section.
(b) A person to whom this Section applies who has not begun receiving a
retirement benefit under Article 8 may elect to continue participation in the
pension fund governed by Article 8 through the last day of his or her dual
eligibility period by giving written notice to the System and the Article 8
fund of this election within 15 days of beginning service or within 15 days
after this Section takes effect. Any person so electing shall become a member
of this System beginning on the day following the last day of the dual
eligibility period and shall be a noncovered employee for the remainder of his
or her employment, except as may be otherwise required under
federal law.
(c) If a person to whom this Section applies does not elect to become a
member of this System in accordance with subsection (b), the person shall be
deemed to have elected to participate in the System as of the first day of
his or her employment with the Illinois Department of Public Health and shall
be a covered employee for the duration of that employment.
(d) In the case of a person to whom this Section applies and who is
performing services for the Illinois Department of Public Health relating to
the transferred clinical health laboratory functions at the time of death or
the commencement of disability, the following requirements are not applicable:
(1) The requirement of 18 months of creditable | ||
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(2) The requirement of 1 1/2 years of creditable | ||
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(3) The requirement of 1 1/2 years of contributing | ||
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(Source: P.A. 88-535.)
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(40 ILCS 5/14-108.2b)
Sec. 14-108.2b.
Former Chicago Police Department Crime Laboratory Division
employees.
(a) For the purposes of this Section and Section 8-230.5:
(1) "Takeover date" means the date upon which the | ||
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(2) The "dual eligibility period" of a person to whom | ||
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(b) This Section applies only to persons who were employed at any time
between June 30, 1995 and the takeover date by the Chicago Police Department
Crime Laboratory Division in connection with functions of that Division that
are transferred to the State pursuant to an intergovernmental agreement, and
who become employed by the Illinois Department of State Police on or after July
1, 1995 but no later than 6 months after the takeover date to perform services
relating to those transferred functions.
(c) A person to whom this Section applies who has not begun receiving a
retirement benefit under Article 8 may elect to continue participation in the
pension fund governed by Article 8 through the last day of his or her dual
eligibility period by giving written notice to the System and the Article 8
fund of this election within 15 days of beginning service or within 15 days
after this Section takes effect, whichever is later. Any person so electing
shall become a member of this System beginning on the day following the last
day of the dual eligibility period and shall be a noncovered employee for the
remainder of his or her employment, except as may be otherwise required under
federal law.
(d) If a person to whom this Section applies does not elect to become a
member of this System in accordance with subsection (c), the person shall be
deemed to have elected to participate in the System as of the first day of
his or her employment with the Illinois Department of State Police and shall
be a covered employee for the duration of that employment.
(e) In the case of a person to whom this Section applies and who is
performing services for the Department of State Police relating to the
transferred crime laboratory functions at the time of death or the
commencement of disability, the following requirements are not applicable:
(1) The requirement of 18 months of creditable | ||
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(2) The requirement of 1 1/2 years of creditable | ||
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(3) The requirement of 1 1/2 years of contributing | ||
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(Source: P.A. 89-246, eff. 8-4-95.)
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(40 ILCS 5/14-108.2c)
Sec. 14-108.2c.
Transfer of membership from TRS.
A security employee
of the Department of Human Services, as defined in Section 14-110, who is a
member of the Teachers'
Retirement System established under Article 16 of this Code may elect to
become a member of this System on either June 1, 2001 or July 1, 2001 by
notifying the Board of the election in writing on or before May 31, 2001.
For persons electing to become covered employees, participation in
the Article 16 system shall terminate on June 1, 2001, and membership in
this System shall begin on that date.
For persons electing to become noncovered employees, participation in
the Article 16 system shall terminate on July 1, 2001, and membership in
this System shall begin on that date.
(Source: P.A. 92-14, eff. 6-28-01.)
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(40 ILCS 5/14-108.3)
Sec. 14-108.3. Early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person
must:
(1) be a member of this System who, on any day during | ||
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(2) not have received any retirement annuity under | ||
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(3) file with the Board on or before December 31, | ||
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(4) terminate employment under this Article no later | ||
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(5) by the date of termination of service, have at | ||
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(6) by the date of termination of service, have at | ||
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(7) not receive any early retirement benefit under | ||
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(b)
An eligible person may establish up to 5 years of creditable service
under this Article, in increments of one month, by making the contributions
specified in subsection (c). In addition, for each month of creditable
service established under this Section, a person's age at retirement shall
be deemed to be one month older than it actually is.
The creditable service established under this Section may be used for
all purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average compensation under Section
14-103.12 or the determination of compensation under this or any other
Article of this Code.
The age enhancement established under this Section may not be used to
enable any person to begin receiving a retirement annuity calculated under
Section 14-110 before actually attaining age 50 (without any age enhancement
under this Section). The age enhancement established under this Section may
be used for all other purposes under this Article (including calculation of
a proportionate annuity payable by this System under the Retirement Systems
Reciprocal Act), except for purposes of the level income option in Section
14-112, the reversionary annuity under Section 14-113, and the required
distributions under Section 14-121.1.
The age enhancement established under this Section may be used in
determining benefits payable under Article 16 of this Code under the
Retirement Systems Reciprocal Act, if the person has at least 5 years of
service credit in the Article 16 system that was earned while participating
in that system as a teacher (as defined in Section 16-106) employed by a
department (as defined in Section 14-103.04).
Age enhancement established under this Section shall not otherwise be used
in determining benefits payable under other Articles of this Code under the
Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section, a person
must pay to the System an employee contribution to be determined by the
System, based on the member's rate of compensation on June 1, 2002 (or
the last date before June 1, 2002 for which a rate can be determined) and
the retirement contribution rate in effect on June 1, 2002 for the member
(or for members with the same social security and alternative formula status
as the member).
If the member receives a lump sum payment for accumulated vacation, sick
leave and personal leave upon withdrawal from service, and the net amount of
that lump sum payment is at least as great as the amount of the contribution
required under this Section, the entire contribution must be paid by the
employee by payroll deduction. If there is no such lump sum payment, or if
it is less than the contribution required under this Section, the member shall
make an initial payment by payroll deduction, equal to the net amount of the
lump sum payment for accumulated vacation, sick leave, and personal leave,
and have the remaining amount due treated as a reduction from the retirement
annuity in 24 equal monthly installments beginning in the month in which the
retirement annuity takes effect. The required contribution may be paid as a
pre-tax deduction from earnings. For federal and Illinois tax purposes, the
monthly amount by which the annuitant's benefit is reduced shall not be
treated as a contribution by the annuitant, but rather as a reduction of the
annuitant's monthly benefit.
(c-5) The reduction in retirement annuity provided in subsection (c) of
Section 14-108 does not apply to the annuity of a person who retires under this
Section. A person who has received any age enhancement or creditable service
under this Section may begin to receive an unreduced retirement annuity upon
attainment of age 55 with at least 25 years of creditable service (including
any age enhancement and creditable service established under this Section).
(d) In order to ensure that the efficient operation of State government
is not jeopardized by the simultaneous retirement of large numbers of key
personnel, the director or other head of a department may, for key employees
of that department, extend the December 31, 2002 deadline for terminating
employment under this Article established in subdivision (a)(4) of this
Section to a date not later than April 30, 2003 by so notifying the System
in writing by December 31, 2002.
(e) Notwithstanding Section 14-111, a person who has received any
age enhancement or creditable service under this Section and who reenters
service under this Article (or as an employee of a department under Article
16) other than as a temporary employee thereby forfeits that age enhancement
and creditable service and is entitled to a refund of the contributions
made pursuant to this Section.
(f) The System shall determine the amount of the increase in the present value of future benefits resulting from the granting of early retirement incentives
under this Section and shall report that amount to the Governor and the Commission on Government Forecasting and Accountability
on or after the effective date of this amendatory Act of the 93rd General Assembly and on or before November 15,
2004. Beginning with State fiscal year 2008, the increase
reported under this subsection (f) shall be included in the
calculation of the required State contribution under Section 14-131.
(g) In addition to the contributions otherwise required under this Article,
the State shall appropriate and pay to the System an amount equal to
$70,000,000 in State fiscal years 2004 and 2005.
(h) The Commission on Government Forecasting and Accountability (i) shall hold one or more hearings on or before the last session day during the fall veto session of 2004 to review recommendations relating to funding of early retirement incentives under this Section and (ii) shall file its report with the General Assembly on or before December 31, 2004 making its recommendations relating to funding of early retirement incentives under this Section; the Commission's report may contain both majority recommendations and minority recommendations. The System shall recalculate and recertify to the Governor by January 31, 2005 the amount of the required State contribution to the System for State fiscal year 2005 with respect to those incentives. The Pension Laws Commission (or its successor, the
Commission on Government Forecasting and Accountability) shall determine
and report to the General
Assembly, on or before January 1, 2004 and annually thereafter through the year
2006, its estimate of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early retirement of persons receiving
early retirement incentives under this Section and (2) the net annual savings
or cost to the State from the program of early retirement incentives created
under this Section.
The System, the Department of Central Management Services, the
Governor's Office of Management and Budget (formerly
Bureau of
the Budget), and all other departments shall provide to the Commission any
assistance that the Commission may request with respect to its reports under
this Section. The Commission may require departments to provide it with any
information that it deems necessary or useful with respect to its reports under
this Section, including without limitation information about (1) the final
earnings of former department employees who elected to receive benefits under
this Section, (2) the earnings of current department employees holding the
positions vacated by persons who elected to receive benefits under this
Section, and (3) positions vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
(i) The changes made to this Section by this amendatory Act of the 92nd
General Assembly do not apply to persons who retired under this Section on or
before May 1, 1992.
(Source: P.A. 93-632, eff. 2-1-04; 93-839, eff. 7-30-04; 93-1067, eff. 1-15-05; 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)
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(40 ILCS 5/14-108.4) (from Ch. 108 1/2, par. 14-108.4)
Sec. 14-108.4. State police early retirement incentives.
(a) To be eligible for the benefits provided in this Section, a person must:
(1) be a member of this System who, on any day during | ||
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(2) have not previously retired under this Article;
(3) file a written application requesting the | ||
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(4) establish eligibility to receive a retirement | ||
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(b) An eligible person may establish up to 5 years of creditable service
under this Article, in increments of one month, by making the contributions
specified in subsection (c). In addition, for each month of creditable
service established under this Section, a person's age at retirement shall
be deemed to be one month older than it actually is.
The creditable service established under this Section shall be deemed
eligible creditable service as defined in Section 14-110, and may be used
for all purposes under this Article and the Retirement Systems Reciprocal
Act, except for the computation of final average compensation under Section
14-103.12, or the determination of compensation under this or any other
Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of the level income option in Section 14-112, the
reversionary annuity under Section 14-113, and the required distributions
under Section 14-121.1. However, age enhancement established under this
Section shall not be used in determining benefits payable under other
Articles of this Code under the Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section, a person
must pay to the System an employee contribution to be determined by the
System, based on the member's final rate of compensation and one-half of
the total retirement contribution rate in effect for the member under
subdivision (a)(3) of Section 14-133 on the date of withdrawal.
If the member receives a lump sum payment for accumulated vacation, sick
leave and personal leave upon withdrawal from service, and the net amount
of that lump sum payment is at least as great as the amount of the
contribution required under this Section, the entire contribution (or so
much of it as does not exceed the contribution limitations of Section 415
of the Internal Revenue Code of 1986) must be paid by the employee before
the retirement annuity may become payable. If there is no such lump sum
payment, or if it is less than the contribution required under this
Section, the member may either pay the entire contribution before the
retirement annuity becomes payable, or may instead make an initial payment
before the retirement annuity becomes payable, equal to the net amount of
the lump sum payment for accumulated vacation, sick leave and personal
leave (or so much of it as does not exceed the contribution limitations of
Section 415 of the Internal Revenue Code of 1986), and have the remaining
amount due deducted from the retirement annuity in 24 equal monthly
installments beginning in the month in which the retirement annuity takes
effect.
However, if the net amount of the lump sum payment for accumulated
vacation, sick leave and personal leave equals or exceeds the contribution
required under this Section, but the required contribution exceeds an
applicable contribution limitation contained in Section 415 of the Internal
Revenue Code of 1986, then the amount of the contribution in excess of the
Section 415 limitation shall instead be paid by the annuitant in January of
1994. If this additional amount is not paid as required, the retirement
annuity shall be suspended until the required contribution is received.
(d) Notwithstanding Section 14-111, an annuitant who has received any
age enhancement or creditable service under this Section and who reenters
service under this Article other than as a temporary employee shall thereby
forfeit such age enhancement and creditable service, and become entitled to
a refund of the contributions made pursuant to this Section.
(e) The Board shall determine the unfunded accrued liability
created by the granting of early retirement benefits to State policemen
under this Section, and shall certify the amount of that liability to the
Department of State Police, the State Comptroller, the State Treasurer, and
the
Bureau of the Budget
(now Governor's Office of Management and Budget)
by June 1, 1993, or as soon thereafter as is
practical. In addition to any other payments to the System required under
this Code, the Department of State Police shall pay to the System the
amount of that unfunded accrued liability, out of funds appropriated to the
Department for that purpose, over a period of 7 years at the rate of 14.3%
of the certified amount per year, plus interest on the unpaid balance at
the actuarial rate as calculated and certified annually by the Board.
Beginning in State fiscal year 1996, the liability created under this
subsection (e) shall be included in the calculation of the required State
contribution under Section 14-131 and no additional payments need be made under
this subsection.
(Source: P.A. 94-793, eff. 5-19-06.)
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(40 ILCS 5/14-108.5) Sec. 14-108.5. Alternative retirement cancellation payment. (a) To be eligible for the alternative retirement cancellation payment provided in this Section, a person
must:
(1) be a member of this System who, on any day | ||
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(2) have not previously received any retirement | ||
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(3) not accept an incentive payment under Section | ||
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(4) in the case of persons employed in a position | ||
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(5) in the case of persons employed in a position | ||
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(6) if there is a QILDRO in effect against the | ||
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(7) terminate employment under this Article within 2 | ||
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(b)(1) Position titles eligible for the alternative | ||
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911 Analyst III; Brickmason; Account Clerk I and II; | ||
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(2) In addition, any position titles with the Speaker | ||
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(c) In lieu of any retirement annuity or other benefit provided under this Article, a person who qualifies for and elects to receive the alternative retirement cancellation payment under this Section shall be entitled to receive a one-time lump sum retirement cancellation payment equal to the amount of his or her contributions to the System (including any employee contributions for optional service credit and including any employee contributions paid by the employer or credited to the employee during disability) as of the date of termination, with regular interest, multiplied by 2. (d) Notwithstanding any other provision of this Article, a person who receives an alternative retirement cancellation payment under this Section thereby forfeits the right to any other retirement or disability benefit or refund under this Article, and no widow's, survivor's, or death benefit deriving from that person shall be payable under this Article. Upon accepting an alternative retirement cancellation payment under this Section, the person's creditable service and all other rights in the System are terminated for all purposes, except for the purpose of determining State group life and health benefits for the person and his or her survivors as provided under the State Employees Group Insurance Act of 1971.
(e) To the extent permitted by federal law, a person who receives an alternative retirement cancellation payment under this Section may direct the System to pay all or a portion of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (f) Notwithstanding Section 14-111, a person who has received an alternative retirement cancellation payment under this Section and who reenters
service under this Article other than as a temporary employee must repay to the System the amount by which that alternative retirement cancellation payment exceeded the amount of his or her refundable employee contributions within 60 days of resuming employment under this System. For the purposes of re-establishing creditable service that was terminated upon election of the alternative retirement cancellation payment, the portion of the alternative retirement cancellation payment representing refundable employee contributions shall be deemed a refund repayable in accordance with Section 14-130. (g) The Commission on Government Forecasting and Accountability shall determine
and report to the Governor and the General
Assembly, on or before January 1, 2006, its estimate of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early termination of persons receiving
the alternative retirement cancellation payment under this Section and (2) the net annual savings
or cost to the State from the program of alternative retirement cancellation payments under this Section.
The System, the Department of Central Management Services, the
Governor's Office of Management and Budget, and all other departments shall provide to the Commission any
assistance that the Commission may request with respect to its report under
this Section. The Commission may require departments to provide it with any
information that it deems necessary or useful with respect to its reports under
this Section, including without limitation information about (1) the final
earnings of former department employees who elected to receive alternative retirement cancellation payments under
this Section, (2) the earnings of current department employees holding the
positions vacated by persons who elected to receive alternative retirement cancellation payments under this
Section, and (3) positions vacated by persons who elected to receive alternative retirement cancellation payments
under this Section that have not yet been refilled.
(Source: P.A. 93-839, eff. 7-30-04; 93-1067, eff. 1-15-05.) |
(40 ILCS 5/14-108.6) Sec. 14-108.6. Alternative retirement cancellation payment. (a) To be eligible for the alternative retirement cancellation payment provided in this Section, a person
must: (1) be a member of this System who, as of June 1, | ||
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(2) have not previously received any retirement | ||
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(3) in the case of persons employed in a position | ||
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(4) in the case of persons employed in a position | ||
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(5) if there is a QILDRO in effect against the | ||
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(6) terminate employment under this Article within | ||
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(b)(1) Position titles eligible for the alternative retirement cancellation payment provided in this Section are: 911 Analyst III; Brickmason; Account Clerk I and | ||
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(2) In addition, any position titles with the Speaker | ||
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(c) In lieu of any retirement annuity or other benefit provided under this Article, a person who qualifies for and elects to receive the alternative retirement cancellation payment under this Section shall be entitled to receive a one-time lump sum retirement cancellation payment equal to the amount of his or her contributions to the System (including any employee contributions for optional service credit and including any employee contributions paid by the employer or credited to the employee during disability) as of the date of termination, with regular interest, multiplied by 2.
(d) Notwithstanding any other provision of this Article, a person who receives an alternative retirement cancellation payment under this Section thereby forfeits the right to any other retirement or disability benefit or refund under this Article, and no widow's, survivor's, or death benefit deriving from that person shall be payable under this Article. Upon accepting an alternative retirement cancellation payment under this Section, the person's creditable service and all other rights in the System are terminated for all purposes, except for the purpose of determining State group life and health benefits for the person and his or her survivors as provided under the State Employees Group Insurance Act of 1971. (e) To the extent permitted by federal law, a person who receives an alternative retirement cancellation payment under this Section may direct the System to pay all or a portion of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (f) Notwithstanding Section 14-111, a person who has received an alternative retirement cancellation payment under this Section and who reenters
service under this Article other than as a temporary employee must repay to the System the amount by which that alternative retirement cancellation payment exceeded the amount of his or her refundable employee contributions within 60 days of resuming employment under this System. For the purposes of re-establishing creditable service that was terminated upon election of the alternative retirement cancellation payment, the portion of the alternative retirement cancellation payment representing refundable employee contributions shall be deemed a refund repayable in accordance with Section 14-130. (g) The Commission on Government Forecasting and Accountability shall determine
and report to the Governor and the General
Assembly, on or before January 1, 2008, its estimate of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early termination of persons receiving
the alternative retirement cancellation payment under this Section and (2) the net annual savings
or cost to the State from the program of alternative retirement cancellation payments under this Section. The System, the Department of Central Management Services, the
Governor's Office of Management and Budget, and all other departments shall provide to the Commission any
assistance that the Commission may request with respect to its report under
this Section. The Commission may require departments to provide it with any
information that it deems necessary or useful with respect to its reports under
this Section, including without limitation information about (1) the final
earnings of former department employees who elected to receive alternative retirement cancellation payments under
this Section, (2) the earnings of current department employees holding the
positions vacated by persons who elected to receive alternative retirement cancellation payments under this
Section, and (3) positions vacated by persons who elected to receive alternative retirement cancellation payments
under this Section that have not yet been refilled.
(Source: P.A. 94-109, eff. 7-1-05; 94-839, eff. 6-6-06.) |
(40 ILCS 5/14-109) (from Ch. 108 1/2, par. 14-109)
Sec. 14-109.
Minimum retirement annuity.
(a) Beginning January 1, 1987, any person who is receiving a monthly
retirement annuity under this Article which, after inclusion of (1) all
one-time and automatic annual increases to which the person is entitled,
(2) any supplemental annuity payable under Section 14-115, and (3) any
amount deducted under Section 14-113 to provide a reversionary annuity, is
less than the minimum monthly retirement benefit amount specified in
subsection (b) of this Section, shall be entitled to a monthly supplemental
payment equal to the difference.
(b) For purposes of the calculation in subsection (a):
(1) Until January 1, 1997, the minimum monthly | ||
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(2) Beginning January 1, 1997, the minimum monthly | ||
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(c) This Section applies to all persons receiving a
retirement annuity under this Article, without regard to whether or not
employment terminated prior to the effective date of this amendatory Act of
1996.
(Source: P.A. 89-616, eff. 8-9-96.)
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(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) (Text of Section from P.A. 102-813 and 103-34) Sec. 14-110. Alternative retirement annuity. (a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows: (i) for periods of service as a noncovered employee: | ||
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(ii) for periods of eligible creditable service as a | ||
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Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001. These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108. (b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions: (1) State policeman; (2) fire fighter in the fire protection service of a | ||
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(3) air pilot; (4) special agent; (5) investigator for the Secretary of State; (6) conservation police officer; (7) investigator for the Department of Revenue or the | ||
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(8) security employee of the Department of Human | ||
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(9) Central Management Services security police | ||
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(10) security employee of the Department of | ||
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(11) dangerous drugs investigator; (12) investigator for the Illinois State Police; (13) investigator for the Office of the Attorney | ||
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(14) controlled substance inspector; (15) investigator for the Office of the State's | ||
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(16) Commerce Commission police officer; (17) arson investigator; (18) State highway maintenance worker; (19) security employee of the Department of | ||
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(20) transferred employee. A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training. A person under paragraph (20) is entitled to eligible creditable service for service credit earned under this Article on and after his or her transfer by Executive Order No. 2003-10, Executive Order No. 2004-2, or Executive Order No. 2016-1. (c) For the purposes of this Section: (1) The term "State policeman" includes any title or | ||
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(2) The term "fire fighter in the fire protection | ||
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(3) The term "air pilot" includes any employee whose | ||
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(4) The term "special agent" means any person who by | ||
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(5) The term "investigator for the Secretary of | ||
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A person who became employed as an investigator for | ||
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(6) The term "Conservation Police Officer" means any | ||
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(7) The term "investigator for the Department of | ||
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The term "investigator for the Illinois Gaming Board" | ||
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(8) The term "security employee of the Department of | ||
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The changes made to this subdivision (c)(8) by Public | ||
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(9) "Central Management Services security police | ||
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(10) For a member who first became an employee under | ||
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(11) The term "dangerous drugs investigator" means | ||
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(12) The term "investigator for the Illinois State | ||
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(13) "Investigator for the Office of the Attorney | ||
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(14) "Controlled substance inspector" means any | ||
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(15) The term "investigator for the Office of the | ||
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(16) "Commerce Commission police officer" means any | ||
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(17) "Arson investigator" means any person who is | ||
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(18) The term "State highway maintenance worker" | ||
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(i) A person employed on a full-time basis by the | ||
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(ii) A person employed on a full-time basis by | ||
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(19) The term "security employee of the Department of | ||
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(20) "Transferred employee" means an employee who was | ||
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(d) A security employee of the Department of Corrections or the Department of Juvenile Justice, a security employee of the Department of Human Services who is not a mental health police officer, and a security employee of the Department of Innovation and Technology shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement: (i) 25 years of eligible creditable service and age | ||
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(ii) beginning January 1, 1987, 25 years of eligible | ||
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(iii) beginning January 1, 1988, 25 years of eligible | ||
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(iv) beginning January 1, 1989, 25 years of eligible | ||
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(v) beginning January 1, 1990, 25 years of eligible | ||
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(vi) beginning January 1, 1991, 25 years of eligible | ||
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Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit. (e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section. (f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment. For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment. (g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, arson investigator, or Commerce Commission police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. (i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), (l), (l-5), and (o) of this Section shall not exceed 12 years. (j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment. (l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (l-5) Subject to the limitation in subsection (i) of this Section, a State policeman may elect to establish eligible creditable service for up to 5 years of service as a full-time law enforcement officer employed by the federal government or by a state or local government located outside of Illinois for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment. (m) The amendatory changes to this Section made by Public Act 94-696 apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before June 1, 2006 (the effective date of Public Act 94-696) and transferred to the Department of Juvenile Justice by Public Act 94-696; and (2) persons employed by the Department of Juvenile Justice on or after June 1, 2006 (the effective date of Public Act 94-696) who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have any bachelor's or advanced degree from an accredited college or university or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training. (n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment. (o) Subject to the limitation in subsection (i), a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before January 1, 2020 (the effective date of Public Act 101-610) as a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator under this Article into eligible creditable service by filing a written election with the Board no later than one year after January 1, 2020 (the effective date of Public Act 101-610), accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22; 103-34, eff. 1-1-24.) (Text of Section from P.A. 102-856 and 103-34) Sec. 14-110. Alternative retirement annuity. (a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows: (i) for periods of service as a noncovered employee: | ||
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(ii) for periods of eligible creditable service as a | ||
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Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001. These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108. (b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions: (1) State policeman; (2) fire fighter in the fire protection service of a | ||
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(3) air pilot; (4) special agent; (5) investigator for the Secretary of State; (6) conservation police officer; (7) investigator for the Department of Revenue or the | ||
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(8) security employee of the Department of Human | ||
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(9) Central Management Services security police | ||
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(10) security employee of the Department of | ||
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(11) dangerous drugs investigator; (12) investigator for the Illinois State Police; (13) investigator for the Office of the Attorney | ||
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(14) controlled substance inspector; (15) investigator for the Office of the State's | ||
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(16) Commerce Commission police officer; (17) arson investigator; (18) State highway maintenance worker; (19) security employee of the Department of | ||
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(20) transferred employee. A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training. A person under paragraph (20) is entitled to eligible creditable service for service credit earned under this Article on and after his or her transfer by Executive Order No. 2003-10, Executive Order No. 2004-2, or Executive Order No. 2016-1. (c) For the purposes of this Section: (1) The term "State policeman" includes any title or | ||
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(2) The term "fire fighter in the fire protection | ||
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(3) The term "air pilot" includes any employee whose | ||
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(4) The term "special agent" means any person who by | ||
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(5) The term "investigator for the Secretary of | ||
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A person who became employed as an investigator for | ||
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(6) The term "Conservation Police Officer" means any | ||
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(7) The term "investigator for the Department of | ||
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The term "investigator for the Illinois Gaming Board" | ||
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(8) The term "security employee of the Department of | ||
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The changes made to this subdivision (c)(8) by Public | ||
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(9) "Central Management Services security police | ||
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(10) For a member who first became an employee under | ||
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(11) The term "dangerous drugs investigator" means | ||
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(12) The term "investigator for the Illinois State | ||
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(13) "Investigator for the Office of the Attorney | ||
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(14) "Controlled substance inspector" means any | ||
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(15) The term "investigator for the Office of the | ||
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(16) "Commerce Commission police officer" means any | ||
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(17) "Arson investigator" means any person who is | ||
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(18) The term "State highway maintenance worker" | ||
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(i) A person employed on a full-time basis by the | ||
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(ii) A person employed on a full-time basis by | ||
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(19) The term "security employee of the Department of | ||
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(20) "Transferred employee" means an employee who was | ||
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(d) A security employee of the Department of Corrections or the Department of Juvenile Justice, a security employee of the Department of Human Services who is not a mental health police officer, and a security employee of the Department of Innovation and Technology shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement: (i) 25 years of eligible creditable service and age | ||
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(ii) beginning January 1, 1987, 25 years of eligible | ||
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(iii) beginning January 1, 1988, 25 years of eligible | ||
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(iv) beginning January 1, 1989, 25 years of eligible | ||
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(v) beginning January 1, 1990, 25 years of eligible | ||
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(vi) beginning January 1, 1991, 25 years of eligible | ||
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Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit. (e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section. (f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment. For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment. (g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, arson investigator, or Commerce Commission police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), an investigator for the Department of Revenue, investigator for the Illinois Gaming Board, investigator for the Secretary of State, or arson investigator may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after the effective date of this amendatory Act of the 102nd General Assembly and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Notwithstanding the limitation in subsection (i), an investigator for the Department of Revenue, investigator for the Illinois Gaming Board, investigator for the Secretary of State, or arson investigator may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the Board within 6 months after the effective date of this amendatory Act of the 102nd General Assembly and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to investigators for the Department of Revenue, investigators for the Illinois Gaming Board, investigators for the Secretary of State, or arson investigators, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by this amendatory Act of the 102nd General Assembly and the employer's normal cost of the credit converted in accordance with this amendatory Act of the 102nd General Assembly, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. (i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), (l), (l-5), and (o) of this Section shall not exceed 12 years. (j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment. (l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (l-5) Subject to the limitation in subsection (i) of this Section, a State policeman may elect to establish eligible creditable service for up to 5 years of service as a full-time law enforcement officer employed by the federal government or by a state or local government located outside of Illinois for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment. (m) The amendatory changes to this Section made by Public Act 94-696 apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before June 1, 2006 (the effective date of Public Act 94-696) and transferred to the Department of Juvenile Justice by Public Act 94-696; and (2) persons employed by the Department of Juvenile Justice on or after June 1, 2006 (the effective date of Public Act 94-696) who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have any bachelor's or advanced degree from an accredited college or university or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training. (n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment. (o) Subject to the limitation in subsection (i), a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before January 1, 2020 (the effective date of Public Act 101-610) as a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator under this Article into eligible creditable service by filing a written election with the Board no later than one year after January 1, 2020 (the effective date of Public Act 101-610), accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 102-856, eff. 1-1-23; 103-34, eff. 1-1-24.) (Text of Section from P.A. 102-956 and 103-34) Sec. 14-110. Alternative retirement annuity. (a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows: (i) for periods of service as a noncovered employee: | ||
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(ii) for periods of eligible creditable service as a | ||
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Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001. These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108. (b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions: (1) State policeman; (2) fire fighter in the fire protection service of a | ||
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(3) air pilot; (4) special agent; (5) investigator for the Secretary of State; (6) conservation police officer; (7) investigator for the Department of Revenue or the | ||
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(8) security employee of the Department of Human | ||
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(9) Central Management Services security police | ||
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(10) security employee of the Department of | ||
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(11) dangerous drugs investigator; (12) investigator for the Illinois State Police; (13) investigator for the Office of the Attorney | ||
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(14) controlled substance inspector; (15) investigator for the Office of the State's | ||
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(16) Commerce Commission police officer; (17) arson investigator; (18) State highway maintenance worker; (19) security employee of the Department of | ||
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(20) transferred employee. A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training. A person under paragraph (20) is entitled to eligible creditable service for service credit earned under this Article on and after his or her transfer by Executive Order No. 2003-10, Executive Order No. 2004-2, or Executive Order No. 2016-1. (c) For the purposes of this Section: (1) The term "State policeman" includes any title or | ||
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(2) The term "fire fighter in the fire protection | ||
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(3) The term "air pilot" includes any employee whose | ||
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(4) The term "special agent" means any person who by | ||
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(5) The term "investigator for the Secretary of | ||
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A person who became employed as an investigator for | ||
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(6) The term "Conservation Police Officer" means any | ||
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(7) The term "investigator for the Department of | ||
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The term "investigator for the Illinois Gaming Board" | ||
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(8) The term "security employee of the Department of | ||
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The changes made to this subdivision (c)(8) by Public | ||
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(9) "Central Management Services security police | ||
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(10) For a member who first became an employee under | ||
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(11) The term "dangerous drugs investigator" means | ||
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(12) The term "investigator for the Illinois State | ||
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(13) "Investigator for the Office of the Attorney | ||
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(14) "Controlled substance inspector" means any | ||
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(15) The term "investigator for the Office of the | ||
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(16) "Commerce Commission police officer" means any | ||
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(17) "Arson investigator" means any person who is | ||
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(18) The term "State highway maintenance worker" | ||
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(i) A person employed on a full-time basis by the | ||
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(ii) A person employed on a full-time basis by | ||
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(19) The term "security employee of the Department of | ||
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(20) "Transferred employee" means an employee who was | ||
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(d) A security employee of the Department of Corrections or the Department of Juvenile Justice, a security employee of the Department of Human Services who is not a mental health police officer, and a security employee of the Department of Innovation and Technology shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement: (i) 25 years of eligible creditable service and age | ||
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(ii) beginning January 1, 1987, 25 years of eligible | ||
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(iii) beginning January 1, 1988, 25 years of eligible | ||
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(iv) beginning January 1, 1989, 25 years of eligible | ||
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(v) beginning January 1, 1990, 25 years of eligible | ||
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(vi) beginning January 1, 1991, 25 years of eligible | ||
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Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit. (e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section. (f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment. For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment. (g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a State policeman, arson investigator, or Commerce Commission police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment. (i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), (l), (l-5), (o), and (p) of this Section shall not exceed 12 years. (j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment. (l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (l-5) Subject to the limitation in subsection (i) of this Section, a State policeman may elect to establish eligible creditable service for up to 5 years of service as a full-time law enforcement officer employed by the federal government or by a state or local government located outside of Illinois for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment. (m) The amendatory changes to this Section made by Public Act 94-696 apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before June 1, 2006 (the effective date of Public Act 94-696) and transferred to the Department of Juvenile Justice by Public Act 94-696; and (2) persons employed by the Department of Juvenile Justice on or after June 1, 2006 (the effective date of Public Act 94-696) who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have any bachelor's or advanced degree from an accredited college or university or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training. (n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment. (o) Subject to the limitation in subsection (i), a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before January 1, 2020 (the effective date of Public Act 101-610) as a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator under this Article into eligible creditable service by filing a written election with the Board no later than one year after January 1, 2020 (the effective date of Public Act 101-610), accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (p) Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before the effective date of this amendatory Act of the 102nd General Assembly as an investigator for the Office of the Attorney General under this Article into eligible creditable service by filing a written election with the Board no later than one year after the effective date of this amendatory Act of the 102nd General Assembly, accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment. (Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 102-956, eff. 5-27-22; 103-34, eff. 1-1-24.) |
(40 ILCS 5/14-111) (from Ch. 108 1/2, par. 14-111)
Sec. 14-111.
Re-entry After retirement.
(a) An annuitant who re-enters the service of a department and receives
compensation on a regular payroll shall receive no payments of the
retirement annuity during the time he is so employed, with the following
exceptions:
(1) An annuitant who is employed by a department | ||
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(2) An annuitant who accepts temporary employment | ||
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(b) If such person re-enters the service of a department, not as a
temporary employee, contributions to the system shall begin as of the
date of re-employment and additional creditable service shall begin to
accrue. He shall assume the status of a member entitled to all rights
and privileges in the system, including death and disability benefits,
excluding a refund of contributions.
Upon subsequent retirement, his retirement annuity shall consist of:
(1) the amounts of the annuities terminated by | ||
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(2) the amount of the additional retirement annuity | ||
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The total retirement annuity shall not, however, exceed the maximum
applicable to the member at the time of original retirement.
In the computation of any such retirement annuity, the time that the
member was on retirement shall not interrupt the continuity of service
for the computation of final average compensation and the additional
membership service shall be considered, together with service rendered
before the previous retirement, in establishing final average
compensation.
A person who re-enters the service of a department within 3 years
after retiring may qualify to have the retirement annuity computed as
though the member had not previously retired by paying to
the System, within 5 years after re-entry and prior to subsequent
retirement, in a lump sum or in installment payments in accordance with
such rules as may be adopted by the Board, an amount equal to all
retirement payments received, including any payments received in accordance
with subsection (c) or (d) of Section 14-130, plus regular interest from
the date retirement payments were suspended to the date of repayment.
(Source: P.A. 86-1488; 87-794.)
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(40 ILCS 5/14-112) (from Ch. 108 1/2, par. 14-112)
Sec. 14-112.
Level Income Option.
A covered employee who retires
from service prior to the age of becoming eligible for old age insurance
payments under the Federal Social Security Act and who at the time of
retirement is fully insured under that Act, may elect to have the
retirement annuity increased prior to such eligible age and reduced
after such age by amounts which have equivalent actuarial values. Such
modification is for the purpose of coordinating a member's retirement
annuity with old age insurance benefits receivable under that Federal
Act.
However, the option under this Section is not available if the resulting
payments by the System after the employee becomes eligible for old age insurance
payments under the Federal Social Security Act would be less than $10 per month.
(Source: P.A. 81-863.)
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(40 ILCS 5/14-113) (from Ch. 108 1/2, par. 14-113)
Sec. 14-113.
Reversionary annuity.
A member entitled to a
retirement annuity may elect, at the time of retirement, to receive a
lesser amount of such allowance and provide with the remainder of his
equity, as actuarially determined, an annuity for any person who is
dependent upon the member at the time of retirement, as named in a written
direction filed with the board as a part of his application for a
retirement annuity; provided, that (1) the condition of
dependency exists and is proved to the satisfaction of the board; and
that (2) the reversionary annuity resulting from such election is not
less than $10 per month, nor more than the amount of reduced
retirement annuity which the member receives under this option.
The reversionary annuity shall be the amount determined by the board
in accordance with the member's written direction. A reversionary
annuity shall begin the first day of the month following the death of
the annuitant; provided, that if the designated reversionary annuity
beneficiary does not survive the annuitant, a reversionary annuity shall
not be payable nor shall any change be permitted in the written
direction filed with the board after the retirement annuity has been granted
and became effective.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-114. Automatic increase in retirement annuity.
(a) This subsection (a) is subject to subsections (a-1) and (a-2) of this Section. Any person receiving a retirement annuity under this Article who
retires having attained age 60, or who retires before age 60 having at
least 35 years of creditable service, or who retires on or after January
1, 2001 at an age which, when added to the number of years of his or her
creditable service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount of the then fixed
and payable monthly retirement annuity increased 3%. Any person receiving a
retirement annuity under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if retirement
is before January 1, 2001, or (ii) the number of years of creditable service
which, when added to the member's age, would equal 85, if retirement is on
or after January 1, 2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring on or next
following (1) attainment of age 60, or (2) the first anniversary of retirement,
whichever occurs later. However, for persons who receive the alternative
retirement annuity under Section 14-110, references in this subsection (a) to
attainment of age 60 shall be deemed to refer to attainment of age 55. For a
person receiving early retirement incentives under Section 14-108.3 whose
retirement annuity began after January 1, 1992 pursuant to an extension granted
under subsection (e) of that Section, the first anniversary of retirement shall
be deemed to be January 1, 1993.
For a person who retires on or after June 28, 2001 and on or before October 1, 2001,
and whose retirement annuity is calculated, in whole or in part, under Section
14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of
retirement shall be deemed to be January 1, 2002.
On each January 1 following the date of the initial increase under this
subsection, the employee's monthly retirement annuity shall be increased
by an additional 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) multiplied by
the number of years of creditable service upon which the
annuity is based. Beginning January 1, 2016, the $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) referred in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (a-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 member who has not begun to receive a retirement annuity under this Article before July 1, 2014: (1) the second automatic annual increase payable | ||
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(2) the second, fourth, and sixth automatic annual | ||
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(3) the second, fourth, sixth, and eighth automatic | ||
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(4) the second, fourth, sixth, eighth, and tenth | ||
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For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (b) The provisions of subsection (a) of this Section shall be
applicable to an employee only if the employee makes the additional
contributions required after December 31, 1969 for the purpose of the
automatic increases for not less than the equivalent of one full year.
If an employee becomes an annuitant before his additional contributions
equal one full year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be eligible for the
increasing annuity authorized by this Section.
(c) The provisions of subsection (a) of this Section shall not be
applicable to any annuitant who is on retirement on December 31, 1969, and
thereafter returns to State service, unless the member has established at
least one year of additional creditable service following reentry into service.
(d) In addition to other increases which may be provided by this Section,
on January 1, 1981 any annuitant who was receiving a retirement annuity
on or before January 1, 1971 shall have his retirement annuity then being
paid increased $1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement annuity on or
before January 1, 1977, shall have his retirement annuity then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have the monthly retirement annuity
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement annuity under
Section 14-110 and who is eligible to receive the 3% increase under subsection
(a) on January 1, 1986, shall also receive on that date a one-time increase
in retirement annuity equal to the difference between (1) his actual
retirement annuity on that date, including any increases received under
subsection (a), and (2) the amount of retirement annuity he would have
received on that date if the amendments to subsection (a) made by Public
Act 84-162 had been in effect since the date of his retirement.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-114.
Automatic increase in retirement annuity.
(a) Any person receiving a retirement annuity under this Article who
retires having attained age 60, or who retires before age 60 having at
least 35 years of creditable service, or who retires on or after January
1, 2001 at an age which, when added to the number of years of his or her
creditable service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount of the then fixed
and payable monthly retirement annuity increased 3%. Any person receiving a
retirement annuity under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if retirement
is before January 1, 2001, or (ii) the number of years of creditable service
which, when added to the member's age, would equal 85, if retirement is on
or after January 1, 2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring on or next
following (1) attainment of age 60, or (2) the first anniversary of retirement,
whichever occurs later. However, for persons who receive the alternative
retirement annuity under Section 14-110, references in this subsection (a) to
attainment of age 60 shall be deemed to refer to attainment of age 55. For a
person receiving early retirement incentives under Section 14-108.3 whose
retirement annuity began after January 1, 1992 pursuant to an extension granted
under subsection (e) of that Section, the first anniversary of retirement shall
be deemed to be January 1, 1993.
For a person who retires on or after June 28, 2001 and on or before October 1, 2001,
and whose retirement annuity is calculated, in whole or in part, under Section
14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of
retirement shall be deemed to be January 1, 2002.
On each January 1 following the date of the initial increase under this
subsection, the employee's monthly retirement annuity shall be increased
by an additional 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(b) The provisions of subsection (a) of this Section shall be
applicable to an employee only if the employee makes the additional
contributions required after December 31, 1969 for the purpose of the
automatic increases for not less than the equivalent of one full year.
If an employee becomes an annuitant before his additional contributions
equal one full year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be eligible for the
increasing annuity authorized by this Section.
(c) The provisions of subsection (a) of this Section shall not be
applicable to any annuitant who is on retirement on December 31, 1969, and
thereafter returns to State service, unless the member has established at
least one year of additional creditable service following reentry into service.
(d) In addition to other increases which may be provided by this Section,
on January 1, 1981 any annuitant who was receiving a retirement annuity
on or before January 1, 1971 shall have his retirement annuity then being
paid increased $1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement annuity on or
before January 1, 1977, shall have his retirement annuity then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have the monthly retirement annuity
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement annuity under
Section 14-110 and who is eligible to receive the 3% increase under subsection
(a) on January 1, 1986, shall also receive on that date a one-time increase
in retirement annuity equal to the difference between (1) his actual
retirement annuity on that date, including any increases received under
subsection (a), and (2) the amount of retirement annuity he would have
received on that date if the amendments to subsection (a) made by Public
Act 84-162 had been in effect since the date of his retirement.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
92-651, eff. 7-11-02.)
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(40 ILCS 5/14-115) (from Ch. 108 1/2, par. 14-115)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-115. Supplemental Annuity. (a) Each annuitant, who retired at age
55 or over and after the completion of at least 15 years of creditable
service, whose status as an employee terminated before January 1, 1970,
is entitled to a monthly supplemental annuity effective January 1, 1970,
or on January 1 nearest the annuitant's 65th birthday, whichever is
later. Such supplemental annuity shall be 1-1/2% of the monthly
retirement annuity, multiplied by the number of full years which elapsed
from the date of the member's latest retirement to the effective date of
the supplemental annuity. This monthly supplemental annuity shall be
increased on each January 1 thereafter during the lifetime of the
annuitant by 1-1/2% of the monthly retirement annuity disregarding any
supplemental annuity previously granted. Beginning January 1, 1972, the
rate of increase in the supplemental annuity shall be 2%. Beginning January
1, 1979, the rate of increase in the supplemental annuity shall be 3%.
The supplemental annuity under this subsection is payable only if the
annuitant pays to the System, in a single sum, an amount equal to 1% of his
monthly final average compensation multiplied by the number of full years
of creditable service.
(b) Any member who retired with less than 15 years of creditable service
whose status as an employee terminated before January 1, 1970, shall be
entitled to an increase of 3% of the original monthly retirement allowance,
effective January 1, 1982, or on January 1 nearest the annuitant's 65th
birthday, whichever is later. On each January 1 thereafter during the lifetime
of the member, he shall be entitled to an additional increase of 3% of the
original monthly retirement allowance. No qualifying contribution is required
for the supplemental annuity under this subsection.
(c) Beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total monthly
amount of annuity payable at the time of the increase, including any
supplemental annuity or other increase previously granted under this Article.
(d) Notwithstanding any other provision of this Section, all increases payable under this Section on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) multiplied by
the number of years of creditable service upon which the
annuity is based. Beginning January 1, 2016, the $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) referred in item (2) of this subsection (d) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (d), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (d) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-115.
Supplemental Annuity.
(a) Each annuitant, who retired at age
55 or over and after the completion of at least 15 years of creditable
service, whose status as an employee terminated before January 1, 1970,
is entitled to a monthly supplemental annuity effective January 1, 1970,
or on January 1 nearest the annuitant's 65th birthday, whichever is
later. Such supplemental annuity shall be 1-1/2% of the monthly
retirement annuity, multiplied by the number of full years which elapsed
from the date of the member's latest retirement to the effective date of
the supplemental annuity. This monthly supplemental annuity shall be
increased on each January 1 thereafter during the lifetime of the
annuitant by 1-1/2% of the monthly retirement annuity disregarding any
supplemental annuity previously granted. Beginning January 1, 1972, the
rate of increase in the supplemental annuity shall be 2%. Beginning January
1, 1979, the rate of increase in the supplemental annuity shall be 3%.
The supplemental annuity under this subsection is payable only if the
annuitant pays to the System, in a single sum, an amount equal to 1% of his
monthly final average compensation multiplied by the number of full years
of creditable service.
(b) Any member who retired with less than 15 years of creditable service
whose status as an employee terminated before January 1, 1970, shall be
entitled to an increase of 3% of the original monthly retirement allowance,
effective January 1, 1982, or on January 1 nearest the annuitant's 65th
birthday, whichever is later. On each January 1 thereafter during the lifetime
of the member, he shall be entitled to an additional increase of 3% of the
original monthly retirement allowance. No qualifying contribution is required
for the supplemental annuity under this subsection.
(c) Beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total monthly
amount of annuity payable at the time of the increase, including any
supplemental annuity or other increase previously granted under this Article.
(Source: P.A. 86-273.)
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(40 ILCS 5/14-116) (from Ch. 108 1/2, par. 14-116)
Sec. 14-116.
Nonoccupational death benefit-death before
retirement.
(a) Upon death of a member before retirement from any cause other
than illness contracted or injuries received in the performance of duty
to the State, if no survivors annuity beneficiary survives the member,
such person as the member has nominated by written direction
duly acknowledged
and filed with the board or if no such nomination the estate of the
member, except as otherwise provided, shall receive the member's accumulated
contributions plus credited interest. If such member dies in service
and was in receipt of
compensation within a period of 12 months before death, or if death
occurred during the first 30 days of absence on account of disability or
while in receipt of a nonoccupational disability or
occupational disability
benefit, a death benefit shall also be payable in the manner provided in
this Section. The benefit shall be equal to one month's final average
compensation upon death occurring during the first year of service and
an additional amount of one month's final average
compensation for each
additional complete year of creditable service, but not to exceed 6 months'
final average compensation.
(b) When an annuitant re-enters the service in a department, and
dies under the conditions described in paragraph (a) of this Section,
the accumulated contributions plus credited interest to be paid as provided
in this Section
shall, if the member has not previously elected a reversionary
annuity, consist
of the excess, if any, of his accumulated contributions plus credited
interest over the total
amount of retirement annuity payments received
by the member before
death. The death benefit provided from State contributions is
payable only if the member has rendered at least one year of
creditable service
during such re-employment and is paid in the manner provided in this
Article.
(c) Upon the death of a member before retirement, or while in
service after having previously retired, from any cause other than
illness contracted or injuries received in the performance of duty to
the State, leaving an eligible survivors annuity beneficiary, such
person as the member has nominated by written direction duly
acknowledged and
filed with the board or if no such nomination the estate of the member
is entitled to a refund of the member's contributions for
retirement annuity plus credited interest
less
retirement annuity payments, if any, and a
survivors annuity
is payable in the manner provided in this Article.
(d) Instead of a death benefit provided in this Section, the widow
of a member, if eligible therefor, may elect to receive the widow's
annuity and lump sum payment provided in this Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-117) (from Ch. 108 1/2, par. 14-117)
Sec. 14-117.
Nonoccupational death benefit-Death after retirement.
Upon death of a retired member, unless a reversionary annuity,
widow's annuity or survivors annuity is payable, a death benefit shall
be payable to such person as the member shall have nominated by written
direction duly acknowledged and filed with the board or if no such
nomination, to the estate of the member. Such benefit shall consist of
the excess, if any, of the member's accumulated contributions plus credited
interest still
remaining in the system at the time of retirement, over the total amount
of all retirement annuity payments received by the member prior to
death subject to a minimum payment of $500.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
Sec. 14-118.
Widow's annuity - Conditions for payment.
A widow who
exercises the right of election to receive an annuity pursuant to this
Section is entitled to a lump sum payment of $500 plus a widow's
annuity, if:
(1) she was married to the deceased member:
(i) in the case of a member who dies before the | ||
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(ii) in the case of a member who dies on or after | ||
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(2) the deceased member had at least 8 years of | ||
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(3) she was nominated exclusively to receive the | ||
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(4) death of the member occurred after withdrawal, | ||
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(5) she elected to receive the widow's annuity within | ||
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If a widow's annuity beneficiary becomes entitled to a survivors
annuity and a widow's annuity, she shall elect to receive only one of such
annuities.
The surviving spouse of a person who (1) died on or after January 1,
1985, (2) withdrew from service prior to August 1, 1953, (3) was receiving
an annuity from the system at the time of death, and (4) meets all other
requirements of this Section, shall be entitled to the benefits provided
under this Section.
A widow's annuity shall be payable beginning on the first of the
month following the date of death of the member if the widow has then
attained age 50 or, if she is under age 50 on such date, on the first of
the month following her attainment of such age; provided, that if an
unmarried child or children of the member under age 18 (or under age
22 if a full-time student) also survive him,
and the child or children are under the care of the eligible widow, the
widow's annuity shall begin on the first of the month following the
member's death without regard to the age of the widow. If she is under
age 50 at the death of the member and she qualifies for a widow's
annuity, she is entitled to receive the lump sum payment immediately
upon application, but payment of the widow's annuity shall be deferred
as provided above.
The provision for a widow's annuity shall not be construed to affect the
payment of a reversionary annuity.
If a widow qualifies for more than one widow's annuity, or for a
widow's annuity and a survivors annuity, she shall elect
to receive only one of such annuities.
This Section shall not apply to the widow of any male person who
first became a member after July 19, 1961.
(Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
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(40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
Sec. 14-119. Amount of widow's annuity.
(a) The widow's annuity shall be 50% of the amount of retirement annuity
payable to the member on the date of death while on retirement if an
annuitant, or on the date of his death while in service if an employee,
regardless of his age on such date, or on the date of withdrawal if death
occurred after termination of service under the conditions prescribed in
the preceding Section.
(b) If an eligible widow, regardless of age, has in her care any
unmarried child or children of the member under age 18 (under age 22 if a
full-time student), the widow's
annuity shall be increased in the amount of 5% of the retirement annuity
for each such child, but the combined payments for a widow and
children shall not exceed 66 2/3% of the member's earned
retirement annuity.
The amount of retirement annuity from which the widow's
annuity is derived shall be that earned by the member without regard to
whether he attained age 60 prior to his withdrawal under the conditions
stated or prior to his death.
(c) Marriage of a child shall render the child ineligible for further
consideration in the increase in the amount of the widow's annuity.
Attainment of age 18 (age 22 if a full-time student)
shall render a child ineligible for
further consideration in the increase of the widow's annuity, but the
annuity to the widow shall be continued thereafter, without regard to
her age at that time.
(d) Except as otherwise provided in this subsection (d), a widow's annuity payable on account of any covered employee who
has been a covered employee for at least 18 months shall be reduced
by 1/2 of the amount of survivors benefits to which his beneficiaries are
eligible under the provisions of the Federal Social Security Act, except
that (1) the amount of any widow's annuity payable under this Article shall
not be reduced by reason of any increase under that Act which occurs after
the offset required by this subsection is first applied to that annuity,
and (2) for benefits granted on or after January 1, 1992, the offset under
this subsection (d) shall not exceed 50% of the amount of widow's annuity
otherwise payable.
Beginning July 1, 2009, the offset under this subsection (d) shall no
longer be applied to any widow's annuity of any person who began receiving retirement benefits or a widow's annuity prior to January 1, 1998.
Beginning July 1, 2009, the offset under this subsection (d) shall no longer be applied to the widow's annuity of any person who began receiving a widow's annuity on or after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly. Any person who began receiving retirement benefits after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly may, during a one-time election period established by the System, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (d) applied to his or her widow's annuity. Any employee in service on the effective date of this amendatory Act of the 95th General Assembly may, at the time of retirement, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (d) applied to his or her widow's annuity. If a widow's annuity is payable to the widow of an employee based on the employee's death in service, then the offset under this subsection (d) shall no longer be applied to the widow's annuity. A retiree who elects to reduce his or her retirement annuity under this subsection (d) in exchange for not having the offset applied may make an irrevocable election to eliminate the reduction of his or her retirement annuity if there is a change in marital status due to death or divorce, but the retiree is not entitled to reimbursement of any benefit reduction prior to the election. (e) Upon the death of a recipient of a widow's annuity the excess, if
any, of the member's accumulated contributions plus credited interest over
all annuity payments to the member and widow, exclusive of the $500 lump
sum payment, shall be paid to the named beneficiary of the widow, or if
none has been named, to the estate of the widow, provided no reversionary
annuity is payable.
(f) On January 1, 1981, any recipient of a widow's annuity who was receiving
a widow's annuity on or before January 1, 1971, shall have her widow's annuity
then being paid increased by 1% for each full year which has elapsed from
the date the widow's annuity began. On January 1, 1982, any recipient
of a widow's annuity who began receiving a widow's annuity after January
1, 1971, but before January 1, 1981, shall have her widow's annuity then
being paid increased by 1% for each full year which has elapsed from the
date the widow's annuity began. On January 1, 1987, any recipient of a
widow's annuity who began receiving the widow's annuity on or before January
1, 1977, shall have the monthly widow's annuity increased by $1
for each full year which has elapsed since the date the
annuity began.
(g) Beginning January 1, 1990, every widow's annuity shall be
increased (1) on each January 1 occurring on or after the commencement
of the annuity if the deceased member died while receiving a retirement
annuity, or (2) in other cases, on each January 1 occurring on or after
the first anniversary of the commencement of the annuity, by an amount
equal to 3% of the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply without regard to
whether the deceased member was in service on or after the effective date
of Public Act 86-1488, but shall not accrue for any period prior to January
1, 1990.
(Source: P.A. 95-279, eff. 1-1-08; 95-1043, eff. 3-26-09.)
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(40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
Sec. 14-120. Survivors annuities - Conditions for payments. A
survivors annuity is established for all members of the System. Upon
the death of any male person who was a member on July 19, 1961, however,
his widow may have the option of receiving the widow's annuity provided
in this Article, in lieu of the survivors annuity.
(a) A survivors annuity beneficiary, as herein defined, is eligible
for a survivors annuity if the deceased member had completed at least 1
1/2 years of contributing creditable service if death occurred:
(1) while in service;
(2) while on an approved or authorized leave of | ||
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(3) while in receipt of a non-occupational disability | ||
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(b) If death of the member occurs after withdrawal, the survivors
annuity beneficiary is eligible for such annuity only if the member had
fulfilled at the date of withdrawal the prescribed service conditions
for establishing a right in a retirement annuity.
(c) Payment of the survivors annuity shall begin immediately if the
beneficiary is 50 years or over, or upon attainment of age 50 if the
beneficiary is under that age at the date of the member's death. In the
case of survivors of a member whose death occurred between November 1,
1970 and July 15, 1971, the payment of the survivors annuity shall begin
upon October 1, 1977, if the beneficiary is then 50 years of age or
older, or upon the attainment of age 50 if the beneficiary is under that
age on October 1, 1977.
If an eligible child or children, under the care of the spouse also
survive the member, the survivors annuity shall begin immediately
without regard to whether the beneficiary has attained age 50.
Benefits under this Section shall accrue and be payable for whole
calendar months, beginning on the first day of the month after the
initiating event occurs and ending on the last day of the month in which
the terminating event occurs.
(d) A survivor annuity beneficiary means:
(1) A spouse of a member or annuitant if:
(i) in the case of a member or annuitant who dies | ||
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(ii) in the case of a member or annuitant who | ||
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(2) An unmarried child under age 18 (under age 22 if | ||
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(3) A dependent parent of the member or annuitant; a | ||
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(e) Payment of a survivors annuity to a beneficiary terminates upon:
(1) remarriage before age 55 that occurs before the effective date of this
amendatory Act of the 91st General Assembly or death, if the beneficiary
is a spouse; (2) marriage or death, if the beneficiary is
a child; or (3) remarriage before age 55 or death, if the
beneficiary is a parent.
Remarriage of a prospective beneficiary prior
to the attainment of age 50 disqualifies the beneficiary for the annuity
expectancy hereunder, if the remarriage occurs before the effective
date of this amendatory Act of the 91st General Assembly.
Termination due to marriage or remarriage shall be permanent,
regardless of any future changes in marital status.
The substantive changes made to this subsection by this amendatory Act
of the 91st General Assembly (pertaining to remarriage prior to age 55 or 50)
apply without regard to whether the deceased participant or annuitant was in
service on or after the effective date of this amendatory Act.
Any person whose survivors annuity was terminated during 1978 or
1979 due to remarriage at age 55 or over shall be eligible to apply, not later
than July 1, 1990, for a resumption of that annuity, to begin on July 1, 1990.
(f) The term "dependent" relating to a survivors annuity means a
beneficiary of a survivors annuity who was receiving from the member at
the date of the member's death at least 1/2 of the support for
maintenance including board, lodging, medical care and like living costs.
(g) If there is no eligible spouse surviving the member, or if a survivors
annuity beneficiary includes a spouse who dies or is disqualified by
remarriage, the annuity is payable to an unmarried child or
children. If at the date of death of the member there is no spouse or
unmarried child, payments shall be made to a dependent parent or parents.
If no eligible survivors annuity beneficiary survives the member, the
non-occupational death benefit is payable in the manner provided in this
Article.
(h) Survivor benefits do not affect any reversionary annuity.
(i) If a survivors annuity beneficiary becomes entitled to a widow's
annuity or one or more survivors annuities or both such annuities, the
beneficiary shall elect to receive only one of such annuities.
(j) Contributing creditable service under the State Universities Retirement
System and the Teachers' Retirement System of the State of
Illinois shall be considered in determining whether the member has met the
contributing service requirements of this Section.
(k) In lieu of the Survivor's Annuity described in this Section, the spouse
of the member has the option to select the Nonoccupational Death
Benefit described in this Article, provided the spouse is the sole survivor
and the sole nominated beneficiary of the member.
(l) The changes made to this Section and Sections 14-118, 14-119, and
14-128 by this amendatory Act of 1997, relating to benefits for certain
unmarried children who are full-time students under age 22, apply without
regard to whether the deceased member was in service on or after the effective
date of this amendatory Act of 1997. These changes do not authorize the
repayment of a refund or a re-election of benefits, and any benefit or increase
in benefits resulting from these changes is not payable retroactively for any
period before the effective date of this amendatory Act of 1997.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
Sec. 14-121. Amount of survivors annuity. A survivors annuity
beneficiary shall be entitled upon death of the member to a single sum
payment of $1,000, payable pro rata among all persons entitled thereto,
together with a survivors annuity payable at the rates and under the
conditions specified in this Article.
(a) If the survivors annuity beneficiary is a spouse, the survivors
annuity shall be 30% of final average compensation subject to a maximum
payment of $400 per month.
(b) If an eligible child or children under the care of a spouse also
survives the member, such spouse as natural guardian of the child or
children shall receive, in addition to the foregoing annuity, 20% of final
average compensation on account of each such child and 10% of final average
compensation divided pro rata among such children, subject to a maximum
payment on account of all survivor annuity beneficiaries of $600 per month,
or 80% of the member's final average compensation, whichever is the lesser.
(c) If the survivors annuity beneficiary or beneficiaries consists of
an unmarried child or children, the amount of survivors annuity shall be
20% of final average compensation to each child, and 10% of final average
compensation divided pro rata among all such children entitled to such annuity,
subject to a maximum payment to all children combined of $600 per month
or 80% of the member's final average compensation, whichever is the lesser.
(d) If the survivors annuity beneficiary is one or more dependent parents,
the annuity shall be 20% of final average compensation to each parent and
10% of final average compensation divided pro rata among the parents who
qualify for this annuity, subject to a maximum payment to both dependent
parents of $400 per month.
(e) The survivors annuity to the spouse, children or dependent parents of
a member whose death occurs after the date of last withdrawal, or after
retirement, or while in service following reentry into service after
retirement but before completing 1 1/2 years of additional creditable
service, shall not exceed the lesser of 80% of the member's earned
retirement annuity at the date of death or the maximum previously
established in this Section.
(f) In applying the limitation prescribed on the combined payments to
2 or more survivors annuity beneficiaries, the annuity on account of each
beneficiary shall be reduced pro rata until such time as the number of
beneficiaries makes the reduction no longer applicable.
(g) Except as otherwise provided in this subsection (g), a survivors annuity payable on account of
any covered employee who has
been a covered employee for at
least 18 months at date of death or last withdrawal, whichever is the later,
shall be reduced by 1/2 of the survivors benefits to which his beneficiaries
are eligible under the federal Social Security Act, except that (1) the
survivors annuity payable under this Article shall not be reduced by any
increase under that Act which occurs after the offset required by this
subsection is first applied to that annuity, (2) for benefits granted on or
after January 1, 1992, the offset under this subsection (g) shall not exceed
50% of the amount of survivors annuity otherwise payable.
Beginning July 1, 2009, the offset under this subsection (g) shall no
longer be applied to any survivors annuity of any person who began receiving retirement benefits or a survivors annuity prior to January 1, 1998.
Beginning July 1, 2009, the offset under this subsection (g) shall no longer be applied to the survivors annuity of any person who began receiving a survivors annuity on or after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly.
Any person who began receiving retirement benefits after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly may, during a one-time election period established by the System, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (g) applied to his or her survivors annuity. Any employee in service on the effective date of this amendatory Act of the 95th General Assembly may, at the time of retirement, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (g) applied to his or her survivors annuity. If a survivors annuity is payable to the widow of an employee based on the employee's death in service, then the offset under this subsection (g) shall no longer be applied to the survivors annuity. A retiree who elects to reduce his or her retirement annuity under this subsection (g) in exchange for not having the offset applied may make an irrevocable election to eliminate the reduction of his or her retirement annuity if there is a change in marital status due to death or divorce, but the retiree is not entitled to reimbursement of any benefit reduction prior to the election. (h) The minimum payment to a beneficiary hereunder shall be $60 per month,
which shall be reduced in accordance with the limitation prescribed on the
combined payments to all beneficiaries of a member.
(i) Subject to the conditions set forth in Section 14-120, the minimum
total survivors annuity benefit payable to the survivors annuity beneficiaries
of a deceased member or annuitant whose death occurs on or after January
1, 1984, shall be 50% of the amount of retirement annuity that was or would
have been payable to the deceased on the date of death, regardless of the
age of the deceased on such date. If the minimum total benefit provided
by this subsection exceeds the maximum otherwise imposed by this Section,
the minimum total benefit shall nevertheless be payable. Any increase in
the total survivors annuity benefit resulting from the operation of this
subsection shall be divided among the survivors annuity beneficiaries of
the deceased in proportion to their shares of the total survivors annuity
benefit otherwise payable under this Section.
(j) Any survivors annuity beneficiary whose annuity terminates due to any
condition specified in this Article other than death shall be entitled to
a refund of the excess, if any, of the accumulated contributions of the
member plus credited interest over all payments to the member and beneficiary
or beneficiaries, exclusive of the single sum payment of $1,000, provided
no future survivors or reversionary annuity benefits are payable.
(k) Upon the death of the last eligible recipient of a survivors
annuity the excess, if any, of the member's accumulated contributions plus
credited interest over all annuity payments to the member and survivors
exclusive of the single sum payment of $1000, shall be paid to the named
beneficiary of the last eligible survivor, or if none has been named, to
the estate of the last eligible survivor, provided no reversionary annuity
is payable.
(l) On January 1, 1981, any survivor who was receiving a survivors
annuity on or before January 1, 1971, shall have his survivors annuity then
being paid increased by 1% for each full year which has elapsed from the
date the annuity began. On January 1, 1982, any survivor who began receiving
a survivor's annuity after January 1, 1971, but before January 1, 1981,
shall have his survivor's annuity then being paid increased by 1% for each
full year that has elapsed from the date the annuity began.
On January 1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's annuity
increased by $1 for each full year which has elapsed since the date the
survivor's annuity began.
(m) Beginning January 1, 1990, every survivor's annuity shall be increased
(1) on each January 1 occurring on or after the commencement of the annuity if
the deceased member died while receiving a retirement annuity, or (2) in
other cases, on each January 1 occurring on or after the first anniversary
of the commencement of the annuity, by an amount equal to 3% of the current
amount of the annuity, including any previous increases under this Article.
Such increases shall apply without regard to whether the deceased member
was in service on or after the effective date of Public Act 86-1488,
but shall not accrue for any period prior to January 1, 1990.
(Source: P.A. 95-1043, eff. 3-26-09.)
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(40 ILCS 5/14-121.1) (from Ch. 108 1/2, par. 14-121.1)
Sec. 14-121.1. Required distributions. (a) A person who would be
eligible to receive a widow's or survivor's annuity under this Article but
for the fact that the person has not yet attained age 50, shall be eligible
for a monthly distribution under this subsection (a), provided that the
payment of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987, (ii) December
1 of the calendar year immediately following the calendar year in which the
deceased spouse died, or (iii) December 1 of the calendar year in which the
deceased spouse would have attained age 72, whichever occurs last, and
shall remain payable until the first of the following to occur: (1) the
person becomes eligible to receive a widow's or survivor's annuity under
this Article; (2) the end of the month in which the person
ceases to be eligible to receive a widow's or survivor's annuity upon
attainment of age 50, due to remarriage or death; or (3) the end of the
month in which such distribution ceases to be required by federal law.
The amount of the distribution shall be fixed at the time the
distribution first becomes payable, and shall be calculated in the same
manner as a survivor's annuity under Sections 14-120, 14-121 and 14-122
(or, in the case of a person who has elected to receive a widow's annuity
instead of a survivor's annuity, in the same manner as the widow's annuity
under Sections 14-118 and 14-119), but excluding: (A) any requirement for
an application for the distribution; (B) any automatic annual increases,
supplemental increases, or one-time increases that may be provided by law
for survivor's or widow's annuities; and (C) any lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall be deemed to be
required by federal law if: (1) directly mandated by federal statute, rule,
or administrative or court decision; or (2) indirectly mandated through
imposition of substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member need not be
in service on or after the effective date of this amendatory Act of 1989
for the member's surviving spouse to be eligible for a
distribution under this Section.
(Source: P.A. 102-210, eff. 7-30-21.)
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(40 ILCS 5/14-122) (from Ch. 108 1/2, par. 14-122)
Sec. 14-122.
Limitation on widow's and survivors annuity.
(a) If a beneficiary
also qualifies for a widow's annuity or
survivors annuity under Articles 2, 15, 16, 17 or 18 of this Code, and
the combined annuities payable thereunder to a widow's annuity or
survivors annuity beneficiary, because of established pension credits,
exceed the highest annuity to such a beneficiary under the aforesaid
Articles, the annuity payable by this system to the eligible beneficiary
shall be reduced to an amount which when added to the annuity payable by
such other system or systems would equal such highest annuity.
(b) If any of the other retirement systems involved provide for a
similar adjustment, the respective annuities shall be reduced in
proportion to the ratio which the amount of each proportional annuity
bears to the aggregate of all proportional annuities.
(c) In the event a beneficiary of such other system or systems
elects to waive a widow's or survivors annuity in favor of a lump sum or
death benefit payment, this system shall, for the adjustment of the
widow's or survivors annuity under this section, assume that the
beneficiary had been entitled to an annuity as an actuarial equivalent
at the date of death of the member or annuitant of such lump sum or
death benefit payment as of attained age of the beneficiary at such date
according to the actuarial tables in use by the system.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-123) (from Ch. 108 1/2, par. 14-123)
Sec. 14-123. Occupational disability benefits. A member who becomes incapacitated to perform the duties of his position
as the proximate result of bodily injuries
sustained or a hazard undergone while in the performance and within the
scope of the member's duties, shall receive an occupational disability benefit;
provided:
(a) application is made after the date that such | ||
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(b) proper proof is received from one or more | ||
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The benefit shall be 75% of the member's final average compensation at
date of disability and shall be payable until the first of the following
dates occurs:
(1) the date on which disability ceases;
(2) the date on which the member engages in gainful | ||
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(3) the end of the month in which the member attains | ||
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(4) the end of the month following the fifth | ||
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(5) the end of the month in which the death of the | ||
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At the end of the month in which the benefits cease as prescribed in paragraphs
(3) or (4) above, if the member is still disabled, he shall become entitled
to a retirement annuity and the minimum period of service prescribed for
the receipt of such annuity shall be waived.
In the event that a temporary disability benefit has been received, the
benefit paid under this Section shall be subject to adjustment by the Board
under Section 14-123.1.
The Board shall prescribe rules and regulations governing the filing of
claims for occupational disability benefits, and the investigation, control
and supervision of such claims.
(Source: P.A. 101-54, eff. 7-12-19.)
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(40 ILCS 5/14-123.1) (from Ch. 108 1/2, par. 14-123.1)
Sec. 14-123.1. Temporary disability benefit.
(a) A member who has at least 18 months of creditable service and who
becomes physically or mentally incapacitated to perform the duties of his
position shall receive a temporary disability benefit, provided that:
(1) the agency responsible for determining the | ||
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(2) application is made after the date that the | ||
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(3) proper proof is received from one or more | ||
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(b) In the case of a denial of benefits,
the temporary disability benefit shall begin to accrue on the 31st
day of absence from work on account of disability, but the benefit shall
not become actually payable to the member until the expiration of 31
days from the day upon which the member last received or had a
right to receive any compensation.
In the case of termination of an employer-paid temporary total disability
benefit, the temporary disability benefit under this Section shall be
calculated from the day following the date of termination of the employer-paid
benefit or the 31st day of absence from work on account of disability,
whichever is later, but shall not become payable to the member until (i) the
member's right to an employer-paid temporary total disability benefit is denied
as a result of the hearing held under Section 19(b) or Section 19(b-1) of the Workers'
Compensation Act or Section 19(b) or Section 19(b-1) of the Workers' Occupational Diseases Act
or (ii) the expiration of 30 days from the date of termination of the
employer-paid benefit, whichever occurs first. If a terminated employer-paid
temporary total disability benefit is resumed or replaced with another
employer-paid disability benefit and the resumed or replacement benefit is
later terminated and the member again files a petition for a hearing
under Section 19(b) or Section 19(b-1) of the Workers' Compensation Act or Section 19(b) or Section 19(b-1) of
the Workers' Occupational Diseases Act, the member may again become eligible to
receive a temporary disability benefit under this Section. The waiting period
before the temporary disability benefit under this Section becomes payable
applies each time that the benefit is reinstated.
The benefit shall continue to accrue until the first of the following events
occurs:
(1) the disability ceases;
(2) the member engages in gainful employment;
(3) the end of the month in which the member attains | ||
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(4) the end of the month following the fifth | ||
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(5) the end of the month in which the death of the | ||
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(6) the end of the month in which the aggregate | ||
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(7) a payment is made on the member's claim pursuant | ||
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(8) a final determination is made on the member's | ||
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(c) The temporary disability benefit shall be 50% of the member's final
average compensation at the date of disability.
If a covered employee is eligible under the Social Security Act for a
disability benefit before attaining the Social Security full retirement age, or a retirement benefit on or
after attaining the Social Security full retirement age, then the amount of the member's temporary
disability benefit shall be reduced by the amount of primary benefit the
member is eligible to receive under the Social Security Act, whether or not
such eligibility came about as the result of service as a covered employee
under this Article. The Board may make such reduction pending a
determination of eligibility if it appears that the employee may be so
eligible, and shall make an appropriate adjustment if necessary after such
determination has been made. The amount of temporary disability benefit
payable under this Article shall not be reduced by reason of any increase
in benefits payable under the Social Security Act which occurs after the
reduction required by this paragraph has been applied. As used in this subsection, "Social Security full retirement age" means the age at which an individual is eligible to receive full Social Security retirement benefits.
(d) The temporary disability benefit provided under this Section is
intended as a temporary payment of occupational or nonoccupational
disability benefit, whichever is appropriate, in cases in which the
occupational or nonoccupational character of the disability has not been
finally determined.
When an employer-paid disability benefit is paid or resumed, the Board
shall calculate the benefit that is payable under Section 14-123 and shall
deduct from the benefit payable under Section 14-123 the amounts already paid
under this Section; those amounts shall then be treated as if they had been
paid under Section 14-123.
When a final determination of the character of the
disability has been made by the Illinois Workers' Compensation Commission, or by
settlement between the parties to the disputed claim, the Board shall
calculate the benefit that is payable under Section 14-123 or 14-124,
whichever is applicable, and shall deduct from such benefit the amounts
already paid under this Section; such amounts shall then be treated as if
they had been paid under such Section 14-123 or 14-124.
(e) Any excess benefits paid under this Section shall be subject to recovery
by the System from benefits payable under the Workers' Compensation Act or the
Workers' Occupational Diseases Act or from third parties as provided in Section
14-129, or from any other benefits payable either to the member or on his
behalf under this Article. A member who accepts benefits under this Section
acknowledges and authorizes these recovery rights of the System.
(f) Service credits under the State Universities Retirement System and
the Teachers' Retirement System of the State of Illinois shall be
considered for the purposes of determining temporary disability benefit
eligibility under this Section, and for determining the total period of
time for which such benefits are payable.
(g) The Board shall prescribe rules and regulations governing the filing
of claims for temporary disability benefits, and the investigation, control
and supervision of such claims.
(h) References in this Section to employer-paid benefits include benefits
paid for by the State, either directly or through a program of insurance or
self-insurance, whether paid through the member's own department or through
some other department or entity; but the term does not include benefits paid by
the System under this Article.
(Source: P.A. 101-54, eff. 7-12-19; 102-538, eff. 8-20-21.)
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(40 ILCS 5/14-124) (from Ch. 108 1/2, par. 14-124)
Sec. 14-124. Nonoccupational disability benefit. A member with at least
1 1/2 years of creditable service may be granted a nonoccupational disability
benefit, if:
(1) application for the benefit is made to the system | ||
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(2) the member is found upon medical examination to | ||
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(3) the disability resulted from a cause other than | ||
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(4) the member has been granted a leave of absence | ||
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(5) the member has used all accumulated sick leave | ||
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The benefit shall begin to accrue on the latest of (i) the 31st
day of absence from work on account of
disability (including any periods of such absence for which sick pay was
received); or (ii) the day following the day on which the member last receives
or has a right to receive any compensation as an employee,
including any sick pay. The benefit shall continue to accrue until the
first of the following to occur:
(a) the date on which disability ceases;
(b) the end of the month in which the member attains | ||
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(c) the end of the month following the fifth | ||
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(d) the end of the month in which the aggregate | ||
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(e) the date on which the member engages in gainful | ||
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(f) the end of the month in which the death of the | ||
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If disability has ceased and the member again becomes disabled within
60 days from date of resumption of State employment, and if the
disability is due to the same cause for which he received
nonoccupational disability benefit immediately preceding such reentry
into service, the 30 days waiting period prescribed for the receipt of
benefits is waived as to such new period of disability.
A member shall be considered disabled only when the board has
received:
(a) a written certificate by one or more licensed | ||
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(b) the employee certifies that he is not and has not | ||
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The board shall prescribe rules and regulations governing the filing
of claims for nonoccupational disability benefits, and the
investigation, control and supervision of such claims.
Service credits under the State Universities Retirement System and
the Teachers' Retirement System of the State of Illinois shall be
considered for the purposes of nonoccupational disability benefit
eligibility under this Article and for the total period of time for
which such benefits are payable.
(Source: P.A. 101-54, eff. 7-12-19; 102-538, eff. 8-20-21.)
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(40 ILCS 5/14-124.5) Sec. 14-124.5. Reports submitted to the System by licensed health care professionals. A licensed health care professional must submit his or her registration number on all reports submitted to the System.
(Source: P.A. 101-54, eff. 7-12-19.) |
(40 ILCS 5/14-125) (from Ch. 108 1/2, par. 14-125)
Sec. 14-125. Nonoccupational disability benefit; amount of. The
nonoccupational disability benefit shall be 50% of the member's final
average compensation at the time disability occurred. In the case of a
member whose benefit was resumed due to the same disability, the amount of
the benefit shall be the same
as that last paid before resumption of State employment. In the event
that a temporary disability benefit has been received, the nonoccupational
disability benefit shall be subject to adjustment by the Board under Section 14-123.1.
If a covered employee is eligible for a disability benefit before attaining the Social Security full retirement
age or a retirement benefit on or after attaining the Social Security full retirement age under the federal
Social Security Act, the amount of the member's nonoccupational disability
benefit shall be reduced by the amount of primary benefit the member would
be eligible to receive
under such Act, whether or not entitlement thereto came
about as the result of service as a covered employee under this Article.
The Board may make such reduction if it appears that the employee may be
so eligible pending determination of eligibility and make an appropriate
adjustment if necessary after such determination. The amount of any
nonoccupational
disability benefit payable under
this Article shall not be reduced by reason of any increase under the federal
Social Security Act which occurs after the offset required by this
Section is first applied to that benefit.
As used in this Section, "Social Security full retirement age" means the age at which an individual is eligible to receive full Social Security retirement benefits. (Source: P.A. 101-54, eff. 7-12-19; 102-558, eff. 8-20-21.)
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(40 ILCS 5/14-125.1) (from Ch. 108 1/2, par. 14-125.1)
Sec. 14-125.1.
Automatic increase in disability benefit.
Each
disability benefit payable under Section 14-123 or 14-124 shall be
increased by 7% of the original fixed amount of such benefit on January 1,
1986 or January 1 following the fourth anniversary of the granting of the
benefit, whichever occurs later. On each January 1 following the 7%
increase, but not earlier than January 1, 1991, the disability benefit
shall be increased by 3% of the current
amount of the benefit, including prior increases under this Article.
(Source: P.A. 86-1488.)
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(40 ILCS 5/14-126) (from Ch. 108 1/2, par. 14-126)
Sec. 14-126.
Nonoccupational disability benefit-Rights on expiration-Retirement
annuity option on re-entry. Any member having 15 or more years of creditable
service, and having attained at least age 55, or having 20 or more years
of creditable service and having attained at least age 50, who, after receiving
nonoccupational disability benefit for the maximum period of time specified
herein is still disabled for service, shall be entitled to receive a retirement
annuity beginning the first of the month following application, without
regard to whether the member has attained age 60.
If a member having 15 but less than 20 years of creditable service is under
age 55 when nonoccupational disability benefits terminate, and the member
has been continuously disabled for service, the member is entitled upon
application to the retirement annuity upon the first of the month after
attainment of age 55.
If a member having 20 or more years of creditable service is under age
50 when nonoccupational disability benefits terminate, and the member has
been continuously disabled for service, the member is entitled upon application
to the retirement annuity beginning upon the first of the month after attainment
of age 50.
As an option to the computation of a retirement annuity in the manner provided
in this Article, if a person who retires on a retirement annuity prior to
age 60 under the provisions of this Section re-enters State employment,
that person may refund to the system the amount theretofore received as
a retirement annuity and upon subsequently retiring from State service shall
be entitled to a retirement annuity computed as though that member had not
previously received such annuity.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-126.5) Sec. 14-126.5. Retirement annuity option for termination of ordinary disability benefit. A member who is subject to the provisions of Section 1-160 whose disability continues but whose disability benefit is either terminated due to attaining age 65 or terminated after 5 years because the ordinary disability benefit commenced after age 60 shall immediately qualify to begin receiving a retirement annuity without the reduction provided under subsection (d) of Section 1-160 if the member has earned at least 10 years of creditable service.
(Source: P.A. 103-553, eff. 8-11-23.) |
(40 ILCS 5/14-127) (from Ch. 108 1/2, par. 14-127)
Sec. 14-127. Credit during disability. During
any period of disability for which
nonoccupational, occupational or temporary disability benefits are
paid, there shall be credited to the account of the disabled member amounts
representing the contributions the member would have made had he or she remained in active
employment in the same position and at the rate of compensation in effect
at the time disability occurred. Service credit shall also be granted
during any such
periods of disability for all purposes of this Article except for
measuring the duration of nonoccupational and temporary disability
benefits. The resolution of a temporary disability
benefit into an occupational or nonoccupational disability benefit shall
not entitle the disabled member to receive duplicate contribution and
service credit under this Section for the period during which the temporary
disability benefit was paid.
(Source: P.A. 101-54, eff. 7-12-19.)
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(40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
Sec. 14-128. Occupational death benefit. An occupational death
benefit is provided for a member of the System whose death, prior to
retirement, is the proximate result of bodily injuries sustained or a
hazard undergone while in the performance and within the scope of the
member's duties.
(a) Conditions for payment.
Exclusive of the lump sum payment provided for herein, all annuities
under this Section shall accrue and be payable for complete calendar
months, beginning on the first day of the month next following the month
in which the initiating event occurs and ending on the last day of the
month in which the terminating event occurs.
The following named survivors of the member
may be eligible for an annuity under this Section:
(i) The member's spouse.
(ii) An unmarried child of the member under age 18 | ||
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(iii) If no spouse or eligible children survive: a | ||
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The term "dependent" relating to an occupational death
benefit means a survivor of the member who was receiving from the member
at the date of the member's death at least 1/2 of the support for maintenance
including board, lodging, medical care and like living costs.
Payment of the annuity shall continue until the occurrence of the following:
(1) remarriage before age 55 that occurs before the | ||
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(2) attainment of age 18 or termination of | ||
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(3) remarriage before age 55 or death, in the case of | ||
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If none of the aforementioned beneficiaries is living at the date of
death of the member, no occupational death benefit shall be payable, but
the nonoccupational death benefit shall be payable as provided in this
Article.
The change made to this subsection by this amendatory Act of the 91st
General Assembly (pertaining to remarriage prior to age 55) applies without
regard to whether the deceased member was in service on or after the effective
date of this amendatory Act.
(b) Amount of benefit.
The member's accumulated contributions plus credited interest shall
be payable in a lump sum to such person as the member has nominated by
written direction, duly acknowledged and filed with the Board, or if no
such nomination to the estate of the member. When an annuitant is
re-employed by a Department, the accumulated contributions plus credited
interest payable on the member's account shall, if the member has not
previously elected a reversionary annuity, consist of the excess, if
any, of the member's total accumulated contributions plus credited
interest for all creditable service over the total amount of all
retirement annuity payments received by the member prior to death.
In addition to the foregoing payment, an annuity is provided for
eligible survivors as follows:
(1) If the survivor is a spouse only, the annuity | ||
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(2) If the spouse has in his or her care an eligible | ||
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(3) If there is no surviving spouse, or if the | ||
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(4) If there is no surviving spouse or eligible | ||
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If any annuity payable under this Section is less than the corresponding
survivors annuity, the beneficiary or beneficiaries of the annuity under this
Section may elect to receive the survivors annuity and the nonoccupational
death benefit provided for in this Article in lieu of the annuity provided
under this Section.
(c) Occupational death claims pending adjudication by the Illinois Workers' Compensation
Commission or a ruling by the agency responsible for determining the liability
of the State under the "Workers' Compensation Act" or "Workers' Occupational
Diseases Act" shall be payable under Sections 14-120 and 14-121 until a ruling or adjudication
occurs, if the beneficiary or beneficiaries: (1) meet all conditions for
payment as prescribed in this Article; and (2) execute an assignment of
benefits payable as a result of adjudication by the Illinois Workers' Compensation Commission or
a ruling by the agency responsible for determining the liability of the State
under such Acts. The assignment shall be made to the System and shall be for
an amount equal to the excess of benefits paid under Sections 14-120 and
14-121 over benefits
payable as a result of adjudication of the workers' compensation claim
computed from the date of death of the member.
(d) Every occupational death annuity payable under this Section shall
be increased on each January 1 occurring on or after (i) January 1, 1990, or
(ii) the first anniversary of the commencement of the annuity, whichever
occurs later, by an amount equal to 3% of the current amount of the
annuity, including any previous increases under this Article, without
regard to whether the deceased member was in service on the effective date
of this amendatory Act of 1991.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/14-129) (from Ch. 108 1/2, par. 14-129)
Sec. 14-129. Determination of compensability - Offset - Subrogation. Except as provided in Section 14-128 of this Act with respect to occupational
death claims, and except as provided in Section 14-123.1 for temporary
disability benefits, before the board takes any action on an application
for an occupational
disability or occupational death benefit, adjudication by the Illinois Workers' Compensation
Commission or a ruling by the agency responsible for
determining the liability of the State under the Workers' Compensation
Act or the Workers' Occupational Diseases Act shall be had on a claim
to establish that the disability or death was incurred while in the
performance and within the scope of the member's duties, under the terms
of the Illinois Workers' Compensation Act or the Workers' Occupational
Diseases Act, whichever applies. The system shall make payment of an
occupational disability or occupational death
benefit only if the claim is found to be compensable under one or
both of those
Acts.
Any amounts provided for a member or his dependents under those Acts
shall be applied for the period of time prescribed by such Acts for
payments thereunder as an offset to any
occupational disability or
occupational death benefit or to a survivors annuity or annuities
provided in this Article in such manner as may be prescribed by the
rules of the board.
In those cases where the injury or death for which
an occupational
disability or death benefit is payable under this Article was caused
under circumstances creating a legal liability for damages on the part
of some person other than the employer, all of the rights
and privileges, including the right to notice of suit brought against
such other person and the right to commence or join in such suit, as
given the employer, together with the conditions or obligations imposed
under paragraph (b) of Section 5 of the "Workers' Compensation Act",
are also given and granted to the System, to the end that the System
created by this Article may be paid or reimbursed for the amount of
temporary disability, occupational disability or death benefit paid or
to be paid by the
System to the injured employee, or his personal representative in the
event of death, including any contribution amounts credited to the
account of the member under Section 14-127, out of any
judgment, settlement, or payment
for such injury or death obtained by such injured employee or his
personal representative from such other person, or be paid or reimbursed
for such amount paid or to be paid by the System to the surviving spouse
or children of such employee by virtue of the injury or the death of
such employee from such injury.
(Source: P.A. 93-721, eff. 1-1-05.)
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(40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
Sec. 14-130. Refunds; rules.
(a) Upon withdrawal a member is entitled to receive, upon written
request, a refund of the member's contributions, including credits granted
while in receipt of disability benefits, without credited interest. The
board, in its discretion may withhold payment of the refund of a member's
contributions for a period not to exceed 1 year after the member has ceased
to be an employee.
For purposes of this Section, a member will be considered to have
withdrawn from service if a change in, or transfer of, his position
results in his becoming ineligible for continued membership in this
System and eligible for membership in another public retirement system
under this Act.
(b) A member receiving a refund forfeits and relinquishes all
accrued rights in the System, including all accumulated creditable
service. If the person again becomes a member of the System and
establishes at least 2 years of creditable service, the member may repay
all the moneys previously refunded or a portion of the moneys previously refunded representing contributions for one or more whole months of creditable service. If a member repays a portion of moneys previously refunded, he or she may later repay some or all of the remaining portion of those previously refunded moneys. However, a former member may restore
credits previously forfeited by acceptance of a refund without returning to
service by applying in writing and repaying to the System, by April 1,
1993, the amount of the refund plus regular interest calculated from the
date of refund to the date of repayment.
The repayment of refunds issued prior to January 1, 1984 shall consist
of the amount refunded plus 5% interest per annum compounded annually for
the period from the date of the refund to the end of the month in which
repayment is made. The repayment of refunds issued after January 1, 1984
shall consist of the amount refunded plus regular interest for the period
from the date of refund to the end of the month in which repayment is made.
The repayment of the refund of a person who accepts an alternative retirement cancellation payment under Section 14-108.5 shall consist of the entire amount paid to the person under subsection (c) of Section 14-108.5 plus regular interest for the period from the date of the refund to the end of the month in which repayment is made. However, in the case of a refund that is repaid in a lump sum between
January 1, 1991 and July 1, 1991, repayment shall consist of the amount
refunded plus interest at the rate of 2.5% per annum compounded annually
from the date of the refund to the end of the month in which repayment is made.
Upon repayment, the member shall receive credit for the
service for which the refund has been repaid, and the corresponding member contributions and regular interest that was forfeited by
acceptance of the refund, as well as regular interest for the period of
non-membership. Such repayment shall be made in full before retirement
either in a lump sum or in installment payments in accordance with such
rules as may be adopted by the board.
(b-5) The Board may adopt rules governing the repayment of refunds
and establishment of credits in cases involving awards of back pay or
reinstatement. The rules may authorize repayment of a refund in installment
payments and may waive the payment of interest on refund amounts repaid in
full within a specified period.
(c) A member no longer in service who is unmarried and does not have an eligible survivors annuity
beneficiary on the date of application therefor is
entitled to a refund of contributions for widow's annuity or survivors
annuity purposes, or both, as the case may be, without interest. A widow's
annuity or survivors annuity shall not be payable upon the death of a person
who has received this refund, unless prior to that death the amount of the
refund has been repaid to the System, together with regular interest from the
date of the refund to the date of repayment.
(d) Any member who has service credit in any position for which an
alternative retirement annuity is provided and in relation to which an
increase in the rate of employee contribution is required, shall be
entitled to a refund, without interest, of that part of the member's
employee contribution which results from that increase in the employee
rate if the member does not qualify for that alternative retirement
annuity at the time of retirement.
(Source: P.A. 93-839, eff. 7-30-04; 94-455, eff. 8-4-05.)
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(40 ILCS 5/14-131) Sec. 14-131. Contributions by State. (a) The State shall make contributions to the System by appropriations of amounts which, together with other employer contributions from trust, federal, and other funds, employee contributions, investment income, and other income, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations. For the purposes of this Section and Section 14-135.08, references to State contributions refer only to employer contributions and do not include employee contributions that are picked up or otherwise paid by the State or a department on behalf of the employee. (b) The Board shall determine the total amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board, using the formula in subsection (e). The Board shall also determine a State contribution rate for each fiscal year, expressed as a percentage of payroll, based on the total required State contribution for that fiscal year (less the amount received by the System from appropriations under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act, if any, for the fiscal year ending on the June 30 immediately preceding the applicable November 15 certification deadline), the estimated payroll (including all forms of compensation) for personal services rendered by eligible employees, and the recommendations of the actuary. For the purposes of this Section and Section 14.1 of the State Finance Act, the term "eligible employees" includes employees who participate in the System, persons who may elect to participate in the System but have not so elected, persons who are serving a qualifying period that is required for participation, and annuitants employed by a department as described in subdivision (a)(1) or (a)(2) of Section 14-111. (c) Contributions shall be made by the several departments for each pay period by warrants drawn by the State Comptroller against their respective funds or appropriations based upon vouchers stating the amount to be so contributed. These amounts shall be based on the full rate certified by the Board under Section 14-135.08 for that fiscal year. From March 5, 2004 (the effective date of Public Act 93-665) through the payment of the final payroll from fiscal year 2004 appropriations, the several departments shall not make contributions for the remainder of fiscal year 2004 but shall instead make payments as required under subsection (a-1) of Section 14.1 of the State Finance Act. The several departments shall resume those contributions at the commencement of fiscal year 2005. (c-1) Notwithstanding subsection (c) of this Section, for fiscal years 2010, 2012, and each fiscal year thereafter, contributions by the several departments are not required to be made for General Revenue Funds payrolls processed by the Comptroller. Payrolls paid by the several departments from all other State funds must continue to be processed pursuant to subsection (c) of this Section. (c-2) Unless otherwise directed by the Comptroller under subsection (c-3), the Board shall submit vouchers for payment of State contributions to the System for the applicable month on the 15th day of each month, or as soon thereafter as may be practicable. The amount vouchered for a monthly payment shall total one-twelfth of the fiscal year General Revenue Fund contribution as certified by the System pursuant to Section 14-135.08 of this Code. (c-3) Beginning in State fiscal year 2025, if the Comptroller requests that the Board submit, during a State fiscal year, vouchers for multiple monthly payments for advance payment of State contributions due to the System for that State fiscal year, then the Board shall submit those additional vouchers as directed by the Comptroller, notwithstanding subsection (c-2). Unless an act of appropriations provides otherwise, nothing in this Section authorizes the Board to submit, in a State fiscal year, vouchers for the payment of State contributions to the System in an amount that exceeds the rate of payroll that is certified by the System under Section 14-135.08 for that State fiscal year. (d) If an employee is paid from trust funds or federal funds, the department or other employer shall pay employer contributions from those funds to the System at the certified rate, unless the terms of the trust or the federal-State agreement preclude the use of the funds for that purpose, in which case the required employer contributions shall be paid by the State. (e) For State fiscal years 2012 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045. In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method. A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applies in State fiscal year 2018 or thereafter shall be implemented in equal annual amounts over a 5-year period beginning in the State fiscal year in which the actuarial change first applies to the required State contribution. A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be implemented: (i) as already applied in State fiscal years before | ||
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(ii) in the portion of the 5-year period beginning in | ||
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For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments so that by State fiscal year 2011, the State is contributing at the rate required under this Section; except that (i) for State fiscal year 1998, for all purposes of this Code and any other law of this State, the certified percentage of the applicable employee payroll shall be 5.052% for employees earning eligible creditable service under Section 14-110 and 6.500% for all other employees, notwithstanding any contrary certification made under Section 14-135.08 before July 7, 1997 (the effective date of Public Act 90-65), and (ii) in the following specified State fiscal years, the State contribution to the System shall not be less than the following indicated percentages of the applicable employee payroll, even if the indicated percentage will produce a State contribution in excess of the amount otherwise required under this subsection and subsection (a): 9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003; and 10.8% in FY 2004. Beginning in State fiscal year 2046, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 90% of the total actuarial liabilities of the System. Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of this Section, the required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under Section 14-135.08, shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act. (f) (Blank). (g) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows: As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date. In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year. (h) For purposes of determining the required State contribution to the System for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the System's actuarially assumed rate of return. (i) (Blank). (j) (Blank). (k) For fiscal year 2012 and each fiscal year thereafter, after the submission of all payments for eligible employees from personal services line items paid from the General Revenue Fund in the fiscal year have been made, the Comptroller shall provide to the System a certification of the sum of all expenditures in the fiscal year for personal services. Upon receipt of the certification, the System shall determine the amount due to the System based on the full rate certified by the Board under Section 14-135.08 for the fiscal year in order to meet the State's obligation under this Section. The System shall compare this amount due to the amount received by the System for the fiscal year. If the amount due is more than the amount received, the difference shall be termed the "Prior Fiscal Year Shortfall" for purposes of this Section, and the Prior Fiscal Year Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing Appropriation Act. If the amount due is less than the amount received, the difference shall be termed the "Prior Fiscal Year Overpayment" for purposes of this Section, and the Prior Fiscal Year Overpayment shall be repaid by the System to the General Revenue Fund as soon as practicable after the certification. (Source: P.A. 103-588, eff. 6-5-24.) |
(40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-132. Obligations of State; funding guarantee. (a) The payment of the required department
contributions, all allowances,
annuities, benefits granted under this Article, and all expenses of
administration of the system are obligations of the State of Illinois to
the extent specified in this Article.
(b) All income of the system
shall be credited to a separate account for this system in the State
treasury and shall be used to pay allowances, annuities, benefits and
administration expense.
(c) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law. Notwithstanding any other provision of law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment. If the System submits a voucher for contributions required under Section 14-131 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher. This subsection (c) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 14-131. (d) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and, if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be. If the State fails to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be. This subsection (d) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act. The obligations created by this subsection (d) expire when all of the requirements of subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met. (e) Any payments and transfers required to be made by the State pursuant to subsection (c) or (d) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations.(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-132.
Obligations of State.
The payment of the required department
contributions, all allowances,
annuities, benefits granted under this Article, and all expenses of
administration of the system are obligations of the State of Illinois to
the extent specified in this Article.
All income of the system
shall be credited to a separate account for this system in the State
treasury and shall be used to pay allowances, annuities, benefits and
administration expense.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-132.2)
Sec. 14-132.2. Payment into the General Obligation Retirement and Interest Fund. Notwithstanding any other law, on the first day of each month, or as soon thereafter as practical, the System shall pay over to the State for deposit into the General Obligation Retirement and Interest Fund all amounts previously received by the System pursuant to Section 14-135.08(b) representing additional amounts to pay principal of and interest on general obligation bonds authorized by Section 7.2(a) of the General Obligation Bond Act and issued to provide those proceeds deposited by the State with the System in July 2003, representing deposits other than amounts reserved under Section 7.2 of the General Obligation Bond Act.
(Source: P.A. 93-839, eff. 7-30-04.) |
(40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-133. Contributions on behalf of members.
(a) Except as provided in subsection (a-5), each participating employee shall make contributions to the System,
based on the employee's compensation, as follows:
(1) Covered employees, except as indicated below, | ||
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(2) Noncovered employees, except as indicated below, | ||
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(3) Noncovered employees serving in a position in | ||
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(4) Covered employees serving in a position in which | ||
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(5) Each security employee of the Department of | ||
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(6) Each security employee of the Department of | ||
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(a-5) Beginning July 1, 2014, in lieu of the contributions otherwise required under subsection (a), each Tier 1 member who is a participating employee shall make contributions to the System,
based on his or her compensation, as follows: (1) Covered employees, except as indicated below, | ||
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(2) Noncovered employees, except as indicated below, | ||
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(3) Noncovered employees serving in a position in | ||
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(4) Covered employees serving in a position in which | ||
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(5) Each security employee of the Department of | ||
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(6) Each security employee of the Department of | ||
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(b) Contributions shall be in the form of a deduction from
compensation and shall be made notwithstanding that the compensation
paid in cash to the employee shall be reduced thereby below the minimum
prescribed by law or regulation. Each member is deemed to consent and
agree to the deductions from compensation provided for in this Article,
and shall receipt in full for salary or compensation.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-133.
Contributions on behalf of members.
(a) Each participating employee shall make contributions to the System,
based on the employee's compensation, as follows:
(1) Covered employees, except as indicated below, | ||
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(2) Noncovered employees, except as indicated below, | ||
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(3) Noncovered employees serving in a position in | ||
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(4) Covered employees serving in a position in which | ||
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(5) Each security employee of the Department of | ||
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(6) Each security employee of the Department of | ||
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(b) Contributions shall be in the form of a deduction from
compensation and shall be made notwithstanding that the compensation
paid in cash to the employee shall be reduced thereby below the minimum
prescribed by law or regulation. Each member is deemed to consent and
agree to the deductions from compensation provided for in this Article,
and shall receipt in full for salary or compensation.
(Source: P.A. 92-14, eff. 6-28-01.)
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(40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
Sec. 14-133.1.
Pickup of contributions.
(a) Each department shall pick up the employee contributions
required by Section 14-133 for all compensation earned after December 31,
1981, and the contributions so picked up shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code; however, each department shall continue to withhold federal
and State income taxes based upon these contributions until the Internal
Revenue Service or the federal courts rule that pursuant to Section 414(h)
of the United States Internal Revenue Code, these contributions shall not
be included as gross income of the employee until such time as they are
distributed or made available.
The department shall pay these employee contributions from the same
fund which is used in paying earnings to the
employee. The department may pick up these contributions by a reduction in
the cash salary of the employee or by an offset against a future salary
increase or by a combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up they shall
be treated for all purposes of this Article 14 in the same manner and to
the same extent as employee contributions made prior to the date picked up.
(b) Subject to the requirements of federal law, an employee of a
department may elect to have the department pick up optional contributions that
the employee has elected to pay to the System, and the contributions so picked
up shall be treated as employer contributions for the purposes of determining
federal tax treatment. The department shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the contributions
from the same fund that is used to pay earnings to the employee.
The election to have optional contributions picked up is irrevocable and the
optional contributions may not thereafter be prepaid, by direct payment or
otherwise.
If the provision authorizing the optional contribution requires
payment by a stated date (rather than the date of withdrawal or retirement),
that requirement shall be deemed to have been satisfied if (i) on or before the
stated date the employee executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the picked-up
contributions are in fact paid to the System as provided in the election.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
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(40 ILCS 5/14-133.5) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 14-133.5. Use of contributions for health care subsidies. The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-599, eff. 6-1-14.) |
(40 ILCS 5/14-134) (from Ch. 108 1/2, par. 14-134)
Sec. 14-134. Board created.
The retirement system created by this
Article shall be a trust, separate and distinct from all other entities.
The responsibility for the operation of the system and for making effective
this Article is vested in a board of trustees.
The board shall consist of 7 trustees, as follows:
(a) the Director of the
Governor's Office of Management and Budget; (b) the Comptroller; (c)
one trustee, not a State employee, who shall be Chairman, to be appointed
by the Governor for a 5 year term; (d) two members of the system, one of
whom shall be an annuitant age 60 or over, having at least 8 years of
creditable service, to be appointed by the Governor for terms of 5 years;
(e) one member of the system having at least 8 years of creditable service,
to be elected from the contributing membership of the system by the
contributing members as provided in Section 14-134.1; (f) one annuitant of
the system who has been an annuitant for at least one full year, to be
elected from and by the annuitants of the system, as provided in Section
14-134.1. The Director of the
Governor's Office of Management and Budget
and the Comptroller shall
be ex-officio members and shall serve as trustees during their respective terms
of office, except that each of them may designate another officer or employee
from the same agency to serve in his or her place. However, no ex-officio
member may designate a different proxy within one year after designating a
proxy unless the person last so designated has become ineligible to serve in
that capacity. Except for the elected trustees, any vacancy in the office of
trustee shall be filled in the same manner as the office was filled previously.
A trustee shall serve until a successor qualifies, except
that a trustee who is a member of the system shall be disqualified as a
trustee immediately upon terminating service with the State.
Notwithstanding any provision of this Section to the contrary, the term of office of each trustee of the board appointed by the Governor who is sitting on the board on the effective date of this amendatory Act of the 96th General Assembly is terminated on that effective date. Beginning on the 90th day after the effective date of this amendatory Act of the 96th General Assembly, the board shall consist of 13 trustees as follows: (1) the Comptroller, who shall be the Chairperson; (2) six persons appointed by the Governor with the | ||
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(3) four active participants of the system having at | ||
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(4) two annuitants of the system who have been | ||
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For the purposes of this Section, the Governor may make a nomination and the Senate may confirm the nominee in advance of the commencement of the nominee's term of office.
The Governor shall make nominations for appointment to the board under this Section within 60 days after the effective date of this amendatory Act of the 96th General Assembly. A trustee sitting on the board on the effective date of this amendatory Act of the 96th General Assembly may not hold over in office for more than 90 days after the effective date of this amendatory Act of the 96th General Assembly. Nothing in this Section shall prevent the Governor from making a temporary appointment or nominating a trustee holding office on the day before the effective date of this amendatory Act of the 96th General Assembly. Each trustee is entitled to one vote on the board, and 4 trustees shall
constitute a quorum for the transaction of business. The affirmative
votes of a majority of the trustees present, but at least 3 trustees, shall be
necessary for action by the board at any meeting. On the 90th day after the effective date of this amendatory Act of the 96th General Assembly, 7 trustees shall constitute a quorum for the transaction of business and the affirmative vote of a majority of the trustees present, but at least 7 trustees, shall be necessary for action by the board at any meeting. The board's action of July
22, 1986, by which it amended the bylaws of the system to increase the number
of affirmative votes required for board action from 3 to 4 (in response to
Public Act 84-1028, which increased the number of trustees from 5 to 7), and
the board's rejection, between that date and the effective date of this
amendatory Act of 1993, of proposed actions not receiving at least 4
affirmative votes, are hereby validated.
The trustees shall serve without compensation, but shall be reimbursed
from the funds of the system for all necessary expenses incurred through
service on the board.
Each trustee shall take an oath of office that he or she will
diligently and honestly administer the affairs of the system, and will not
knowingly violate or willfully permit the violation of any of
the provisions of law applicable to the system. The oath shall be
subscribed to by the trustee making it, certified by the officer before
whom it is taken, and filed with the Secretary of State. A trustee shall
qualify for membership on the board when the oath has been approved by the
board.
(Source: P.A. 96-6, eff. 4-3-09.)
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(40 ILCS 5/14-134.1) (from Ch. 108 1/2, par. 14-134.1)
Sec. 14-134.1. Board-elected members-vacancies. The 2 elected trustees
shall be elected, beginning in 1986 and every 5 years thereafter, for a
term of 5 years beginning July 15 next following their election. The trustees to be elected under Section 14-134 of this Code in accordance with this amendatory Act of the 96th General Assembly shall be elected within 90 days after the effective date of this amendatory Act of the 96th General Assembly for a term of 5 years after the effective date of this amendatory Act. Trustees shall be elected every 5 years thereafter for a term of 5 years beginning July 15 next following their election. Elections
shall be held on May 1, or on May 2 when May 1 falls on Sunday. Candidates
for the contributing trustee shall be nominated by petitions in writing,
signed by not less than 400 contributors with their addresses shown opposite
their names. Candidates for the annuitant trustee shall be nominated by
petitions in writing, signed by not less than 100 annuitants with their
addresses shown opposite their names.
If there is more than one qualified nominee for either elected trustee,
the board shall conduct a secret ballot election by mail for that trustee,
in accordance with rules as established by the board.
If there is only one qualified person nominated by petition for either
trustee, the election as required by this Section shall not be conducted
for that trustee and the board shall declare such nominee duly elected.
A vacancy occurring in the elective membership of the board shall be filled
for the unexpired term by the board.
(Source: P.A. 96-6, eff. 4-3-09.)
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(40 ILCS 5/14-135) (from Ch. 108 1/2, par. 14-135)
Sec. 14-135.
Board's powers and duties.
The board shall have the powers
and duties stated in the Sections which succeed this Section and precede
Section 14-136, in addition to the other powers and duties provided in this
Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.01) (from Ch. 108 1/2, par. 14-135.01)
Sec. 14-135.01.
To establish an office and system of records.
To establish
an office or offices for the meetings of the board and
for the administrative personnel; to provide for the installation of a
complete and adequate system of accounts and records which will give
effect to the requirements of this Article; and to credit all assets of
the system according to the purposes for which they are held. All books
and records shall be kept in such offices.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.02) (from Ch. 108 1/2, par. 14-135.02)
Sec. 14-135.02.
To hold meetings.
To hold regular meetings at least quarterly
in each year and such special meetings as may be deemed necessary. All
meetings shall be open to the public. The board shall keep a record of
all its proceedings.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.03) (from Ch. 108 1/2, par. 14-135.03)
Sec. 14-135.03.
To prescribe rules and administer system.
To
establish rules and regulations and formulate policy for proper
operation of the system and the transaction of its business; to
prescribe rules for the determination of the value of maintenance,
board, lodging, laundry, and other allowances to employees in lieu of
money; to maintain a separate account on each member's contribution, and
submit a statement of account to each member annually. The Board may
include in such rules and regulations provisions requiring the
disclosure of social security numbers and may provide for the use of
such numbers in the records of the System as it may deem appropriate.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.04) (from Ch. 108 1/2, par. 14-135.04)
Sec. 14-135.04.
To pass on annuities.
To consider and pass on all applications
for annuities, allowances
and benefits, and have examinations made of persons receiving disability
benefits, at least once each year.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.05) (from Ch. 108 1/2, par. 14-135.05)
Sec. 14-135.05.
To adopt actuarial tables.
To adopt all necessary actuarial
tables to be used in the operation
of the system as prepared by the actuary, and compile such additional
data as may be necessary for required actuarial valuation and
calculation.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.06) (from Ch. 108 1/2, par. 14-135.06)
Sec. 14-135.06.
To have an audit and submit statements.
To have the accounts
of the system audited annually by a certified
public accountant designated by the Auditor General; to submit an annual
statement to the Governor as soon as possible after the end of each
fiscal year; and to cause to be published for distribution among the
members a financial statement showing the assets and liabilities of the
system, an income statement, an analysis of operating results, and an
actuarial valuation of the assets and liabilities of the system.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.07) (from Ch. 108 1/2, par. 14-135.07)
Sec. 14-135.07.
To accept gifts.
To accept any gift, grant or bequest
of any money or securities for
the purposes designated by the grantor, made with the specific purpose
of providing cash benefits for some or all of the members or any
beneficiary of the system, or if no such purpose is designated to apply
the same against the amount to be contributed by the State.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
Sec. 14-135.08. To certify required State contributions. (a)
To certify to the Governor and to each department, on or before
November 15 of each year until November 15, 2011, the required rate for State contributions to the
System for the next State fiscal year, as determined under subsection (b) of
Section 14-131. The certification to the Governor under this subsection (a) shall include a copy of the
actuarial recommendations upon which the rate is based and shall specifically identify the System's projected State normal cost for that fiscal year.
(a-5) On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and each January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (b) The certifications under subsections (a) and (a-5) shall include an additional amount necessary to pay all principal of and interest on those general obligation bonds due the next fiscal year authorized by Section 7.2(a) of the General Obligation Bond Act and issued to provide the proceeds deposited by the State with the System in July 2003, representing deposits other than amounts reserved under Section 7.2(c) of the General Obligation Bond Act. For State fiscal year 2005, the Board shall make a supplemental certification of the additional amount necessary to pay all principal of and interest on those general obligation bonds due in State fiscal years 2004 and 2005 authorized by Section 7.2(a) of the General Obligation Bond Act and issued to provide the proceeds deposited by the State with the System in July 2003, representing deposits other than amounts reserved under Section 7.2(c) of the General Obligation Bond Act, as soon as practical after the effective date of this amendatory Act of the 93rd General Assembly.
On or before May 1, 2004, the Board shall recalculate and recertify
to the Governor and to each department the amount of the required State
contribution to the System and the required rates for State contributions
to the System for State fiscal year 2005, taking into account the amounts
appropriated to and received by the System under subsection (d) of Section
7.2 of the General Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and recertify
to the Governor and to each department the amount of the required State
contribution to the System and the required rates for State contributions
to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly.
On or before April 1, 2011, the Board shall recalculate and recertify to the Governor and to each department the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date. By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification. The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this paragraph is submitted to the Governor, Comptroller, and General Assembly. The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct. (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
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(40 ILCS 5/14-135.09) (from Ch. 108 1/2, par. 14-135.09)
Sec. 14-135.09.
To obtain services.
To obtain, pursuant to the "Personnel
Code", approved July 18, 1955, as now or hereafter amended, an executive
secretary, an actuary and such medical
and other services as shall be required to transact the business of the
system; and to pay the expenses of the board necessary for the operation
of the system at such rates and in such amounts as the board determines
and approves.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-135.10) (from Ch. 108 1/2, par. 14-135.10)
Sec. 14-135.10.
To subpoena witnesses.
To compel witnesses to attend
and testify before it upon any necessary matter concerning the System, and
to allow reasonable fees to such witnesses for attendance at such meetings
in amounts to be determined by the board. The presiding member of the board
may administer oaths to witnesses.
(Source: P.A. 84-1028.)
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(40 ILCS 5/14-135.11) Sec. 14-135.11. To request information. To request from any member, annuitant, beneficiary, or employer such information as is necessary for the proper administration of the System.
(Source: P.A. 99-450, eff. 8-24-15.) |
(40 ILCS 5/14-136) (from Ch. 108 1/2, par. 14-136)
Sec. 14-136.
Executive Secretary.
The Executive Secretary shall be the
executive officer in charge of the
administration of the detailed affairs of the system. He shall:
(a) collect and receipt for all payments made to the system,
including member contributions, State contributions, and other income accruing
to the system, and deposit same with the State
Treasurer for its account; (b) sign vouchers for the payment of moneys
by the system in accordance with authorization of the board; and (c)
perform such other duties as the board assigns to him.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-137) (from Ch. 108 1/2, par. 14-137)
Sec. 14-137.
Treasurer.
The Treasurer of the State of Illinois shall
be, ex-officio, the
treasurer of the system. He shall:
(a) act as official custodian of the cash and securities belonging
to the system and provide adequate safe deposit facilities for their
preservation and hold such cash and securities subject to the order of
the board; (b) receive all items of cash belonging to the system, as the
same are transmitted by the Executive Secretary of the system, including member
contributions, State contributions, interest and principal payments on
investments and other income accruing to the system, and deposit all
such amounts in a special trust fund for the account of this system, and
submit a monthly report to the board of all such transactions; (c) make
payments for purposes specified in this Article upon warrants or direct
deposit transmittals of the
State Comptroller issued in accordance with vouchers signed by the
Executive Secretary pursuant to authorization of the board.
The treasurer shall furnish a corporate surety bond, acceptable to
the board in the penal sum of $50,000, conditioned for the faithful
discharge of his duties, and to deliver up all moneys, securities,
papers, books, records and other property appertaining to his office as
treasurer of the system, whole, safe and undefaced, to his successor in
office. Whenever the board deems the amount of the bond insufficient, it
may require an increase to a penal sum not to exceed $100,000. All
reasonable charges incidental to the procuring and giving of such bond
shall be paid by the board.
Any cash accruing to the special trust fund of the system not required for
current operating expenditures shall upon direction by the Executive Secretary
be transferred immediately to the said Illinois
State Board of Investment for purposes of permanent investment for the system.
Until such transfer is made, those funds shall be invested temporarily
by the Treasurer on behalf of the system and interest earned thereon shall
be credited to the trust fund of the system.
(Source: P.A. 82-391.)
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(40 ILCS 5/14-138) (from Ch. 108 1/2, par. 14-138)
Sec. 14-138. Actuary. The Actuary shall be the technical advisor of the
board on matters regarding the operation of the system. The actuary
shall:
(a) at least once every 3 years, make a general | ||
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(b) recommend tables to be used for all required | ||
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(c) make an annual valuation of the liabilities and | ||
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(d) perform such other duties as the board may assign.
(Source: P.A. 99-232, eff. 8-3-15.)
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(40 ILCS 5/14-139) (from Ch. 108 1/2, par. 14-139)
Sec. 14-139.
Legal counsel.
The Attorney General of the State shall be
the legal advisor to the board.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-140) (from Ch. 108 1/2, par. 14-140)
Sec. 14-140.
Duties of a department.
Each department in the
preparation of payroll vouchers covering payments of salary and wages to
members for employment, shall indicate, for each employee who is a
member of the system, in addition to other things:
(a) the rate of compensation;
(b) the total compensation earned; and
(c) the amount of contributions deducted
for the purposes of the
System.
An additional certified copy of each payroll voucher certified by
each such department shall be prepared and forwarded together with the
original payroll voucher to the Director of Central Management
Services,
State Comptroller or other officer receiving the original certified
payroll voucher for transmittal to the board as herein provided.
Each department, in drawing warrants against trust or federal funds
for items of salary on payroll vouchers certified by the department,
shall draw such warrants to the employees who are members of the system
for the amount of salary or wages specified for the period, less the contributions
to be made to the system as certified in such payroll vouchers, and shall
draw a warrant made payable to the system for the
total of the contributions so withheld from such employees on each such
payroll voucher. The warrant drawn to this system, together with the
additional copy of the payroll shall be transmitted immediately to the
Executive Secretary of the board.
Each Department shall submit to the board a current membership record
for each new employee entitled to membership in the system, and such
other information regarding each employee as the board may require.
(Source: P.A. 82-789.)
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(40 ILCS 5/14-141) (from Ch. 108 1/2, par. 14-141)
Sec. 14-141.
Duties of Director of Central Management
Services. The Director of Central Management Services
in considering all payroll vouchers which are
required under "An Act in relation to State finance", approved June 10,
1919, as amended, to be approved by the Department of Central Management Services
before
warrants are drawn by the State Comptroller, shall approve such payrolls
if they are prepared in accordance with Section 14-140 of this Article.
(Source: P.A. 82-789.)
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(40 ILCS 5/14-142) (from Ch. 108 1/2, par. 14-142)
Sec. 14-142.
Duties of Director of Central Management Services.
The Director of Central Management Services in passing
on payroll vouchers as required
under the provisions of the "Personnel Code", approved July 18, 1955, as
amended, shall approve the payroll vouchers if they are prepared in
accordance with Section 14-140 of this Article.
(Source: P.A. 82-789.)
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(40 ILCS 5/14-143) (from Ch. 108 1/2, par. 14-143)
Sec. 14-143.
Duties of State Comptroller.
The State Comptroller shall
draw warrants or prepare direct deposit transmittals upon the State
Treasurer payable from the funds of this
system for purposes provided for in this Article upon the presentation
of vouchers approved by the Executive Secretary of the board in
accordance with authorization of the board.
The Comptroller, in drawing warrants for items of salary and wages on
payroll vouchers certified by a department, shall deduct the employee contribution
to be withheld therefrom in accordance with this Article, as certified in
such payroll vouchers and shall draw a warrant made
payable to the system for the total of the contributions so withheld on
each such payroll voucher.
(Source: P.A. 82-391.)
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(40 ILCS 5/14-144) (from Ch. 108 1/2, par. 14-144)
Sec. 14-144.
Authorizations.
Members shall, by virtue of the payment
of the contributions required to be paid to this system, receive a vested
interest in their accumulated contributions in the system, and, in consideration
of such vested interest, each member is deemed to have agreed to and authorized the
deductions from salary of all contributions payable to this system.
Payment of salary as prescribed by law or as contracted by a
department, less the amounts of contributions provided in this Article,
shall, together with such special vested rights, be a full and complete
discharge of all claims of payments for service rendered by a member to
the State during the period covered by any such payment.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-145) (from Ch. 108 1/2, par. 14-145)
Sec. 14-145.
Retirement systems reciprocal act.
The Retirement Systems
Reciprocal Act, Article 20 of this Code, as now or hereafter amended, is
adopted and made a part of this Article.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-146) (from Ch. 108 1/2, par. 14-146)
Sec. 14-146.
Undivided interests.
The assets of the system shall be invested
as one fund, and no
particular person, group of persons or entity shall have any right in
any specific security or property, or in any item of cash other than an
undivided interest in the whole as specified in this Article as it now
exists or is subsequently amended.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-147) (from Ch. 108 1/2, par. 14-147)
Sec. 14-147.
Annuities, etc.
- Exempt. Except as provided in this
Article, all moneys in the fund created by this Article, and all securities
and other property of the System, and all annuities and other benefits
payable under this Article, and all accumulated contributions and other
credits of employees in this System, and the right of any person to receive
an annuity or other benefit under this Article, or a refund or return of
contributions, shall not be subject to judgment, execution, garnishment,
attachment, or other seizure by process, in bankruptcy or otherwise, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable. A
person receiving an annuity or benefit, or refund or return of
contributions, may authorize withholding from such annuity, benefit, refund
or return of contributions in accordance with the provisions of the "State
Salary and Annuity Withholding Act", approved August 21, 1961, as now or
hereafter amended.
The General Assembly finds and declares that the amendment to this
Section made by this amendatory Act of 1989 is a clarification of existing
law, and an indication of its previous intent in enacting and amending
this Section. Notwithstanding Section 1-103.1, application of this
amendment shall not be limited to persons in service on or after the
effective date of this amendatory Act of 1989.
(Source: P.A. 86-273.)
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(40 ILCS 5/14-147.5) Sec. 14-147.5. Accelerated pension benefit payment in lieu of any pension benefit. (a) As used in this Section: "Eligible person" means a person who: (1) has terminated service; (2) has accrued sufficient service credit to be | ||
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(3) has not received any retirement annuity under | ||
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(4) has not made the election under Section 14-147.6. "Pension benefit" means the benefits under this Article, or Article 1 as it relates to those benefits, including any anticipated annual increases, that an eligible person is entitled to upon attainment of the applicable retirement age. "Pension benefit" also includes applicable survivor's or disability benefits. (b) As soon as practical after June 4, 2018 (the effective date of Public Act 100-587), the System shall calculate, using actuarial tables and other assumptions adopted by the Board, the present value of pension benefits for each eligible person who requests that information and shall offer each eligible person the opportunity to irrevocably elect to receive an amount determined by the System to be equal to 60% of the present value of his or her pension benefits in lieu of receiving any pension benefit. The offer shall specify the dollar amount that the eligible person will receive if he or she so elects and shall expire when a subsequent offer is made to an eligible person. An eligible person is limited to one calculation and offer per calendar year. The System shall make a good faith effort to contact every eligible person to notify him or her of the election. Until June 30, 2026, an eligible person may irrevocably elect to receive an accelerated pension benefit payment in the amount that the System offers under this subsection in lieu of receiving any pension benefit. A person who elects to receive an accelerated pension benefit payment under this Section may not elect to proceed under the Retirement Systems Reciprocal Act with respect to service under this Article. (c) A person's creditable service under this Article shall be terminated upon the person's receipt of an accelerated pension benefit payment under this Section, and no other benefit shall be paid under this Article based on the terminated creditable service, including any retirement, survivor, or other benefit; except that to the extent that participation, benefits, or premiums under the State Employees Group Insurance Act of 1971 are based on the amount of service credit, the terminated service credit shall be used for that purpose. (d) If a person who has received an accelerated pension benefit payment under this Section returns to active service under this Article, then: (1) Any benefits under the System earned as a result | ||
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(2) The accelerated pension benefit payment may not | ||
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(e) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be transferred into a tax qualified retirement plan or account. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (f) Upon receipt of a member's irrevocable election to receive an accelerated pension benefit payment under this Section, the System shall submit a voucher to the Comptroller for payment of the member's accelerated pension benefit payment. The Comptroller shall transfer the amount of the voucher from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall transfer the amount into the member's eligible retirement plan or qualified account. (g) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (h) No provision of this Section shall be interpreted in a way that would cause the applicable System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.) |
(40 ILCS 5/14-147.6) Sec. 14-147.6. Accelerated pension benefit payment for a reduction in annual retirement annuity and survivor's annuity increases. (a) As used in this Section: "Accelerated pension benefit payment" means a lump sum payment equal to 70% of the difference of the present value of the automatic annual increases to a Tier 1 member's retirement annuity and survivor's annuity using the formula applicable to the Tier 1 member and the present value of the automatic annual increases to the Tier 1 member's retirement annuity using the formula provided under subsection (b-5) and survivor's annuity using the formula provided under subsection (b-6). "Eligible person" means a person who: (1) is a Tier 1 member; (2) has submitted an application for a retirement | ||
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(3) meets the age and service requirements for | ||
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(4) has not received any retirement annuity under | ||
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(5) has not made the election under Section 14-147.5. (b) As soon as practical after June 4, 2018 (the effective date of Public Act 100-587) and until June 30, 2026, the System shall implement an accelerated pension benefit payment option for eligible persons. Upon the request of an eligible person, the System shall calculate, using actuarial tables and other assumptions adopted by the Board, an accelerated pension benefit payment amount and shall offer that eligible person the opportunity to irrevocably elect to have his or her automatic annual increases in retirement annuity calculated in accordance with the formula provided under subsection (b-5) and any increases in survivor's annuity payable to his or her survivor's annuity beneficiary calculated in accordance with the formula provided under subsection (b-6) in exchange for the accelerated pension benefit payment. The election under this subsection must be made before the eligible person receives the first payment of a retirement annuity otherwise payable under this Article. (b-5) Notwithstanding any other provision of law, the retirement annuity of a person who made the election under subsection (b) shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 1.5% of the originally granted retirement annuity. (b-6) Notwithstanding any other provision of law, a survivor's annuity payable to a survivor's annuity beneficiary of a person who made the election under subsection (b) shall be subject to annual increases on the January 1 occurring on or after the first anniversary of the commencement of the annuity. Each annual increase shall be calculated at 1.5% of the originally granted survivor's annuity. (c) If a person who has received an accelerated pension benefit payment returns to active service under this Article, then: (1) the calculation of any future automatic annual | ||
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(2) the accelerated pension benefit payment may not | ||
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(d) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be transferred into a tax qualified retirement plan or account. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (d-5) Upon receipt of a member's irrevocable election to receive an accelerated pension benefit payment under this Section, the System shall submit a voucher to the Comptroller for payment of the member's accelerated pension benefit payment. The Comptroller shall transfer the amount of the voucher to the System, and the System shall transfer the amount into a member's eligible retirement plan or qualified account. (e) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (f) No provision of this Section shall be interpreted in a way that would cause the applicable System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.) |
(40 ILCS 5/14-148) (from Ch. 108 1/2, par. 14-148)
Sec. 14-148.
Fraud.
Any person who knowingly makes any false statement,
or falsifies or
permits to be falsified any record of this system, in any attempt to
defraud the system, is guilty of a Class A misdemeanor.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-148.1) Sec. 14-148.1. Mistake in benefit. If the System mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid. If the benefit was mistakenly set too high, the System may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if (1) the amount of the benefit was mistakenly set too high, and (2) the error was undiscovered for 3 years or longer, and (3) the error was not the result of incorrect information supplied by the affected member or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the System the excess amounts received in error. This Section applies to all mistakes in benefit calculations that occur before, on, or after the effective date of this amendatory Act of the 98th General Assembly.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/14-148.5) Sec. 14-148.5. Indemnification of financial institution for recovery of overpayment. The System may indemnify a bank, savings and loan association, or other financial institution insured by an agency of the federal government as necessary to recover for the System any benefit overpayment that the System has made to the financial institution on behalf of a member.
(Source: P.A. 102-210, eff. 7-30-21.) |
(40 ILCS 5/14-149) (from Ch. 108 1/2, par. 14-149)
Sec. 14-149. Felony conviction. None of the benefits herein provided for
shall be paid to any person
who is convicted of any felony relating to or arising out of or in
connection with his service as an employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article nor
to preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants entering service subsequent to July 9, 1955 shall
be deemed to have consented to the provisions of this section as a
condition of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/14-150) (from Ch. 108 1/2, par. 14-150)
Sec. 14-150.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof, and the rules
adopted pursuant thereto, shall apply to and govern all proceedings for
the judicial review of final administrative decisions of the retirement
board provided for under this Article. The term "administrative
decision" is defined as in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/14-151) (from Ch. 108 1/2, par. 14-151)
Sec. 14-151.
General provisions and savings clause.
The provisions of
Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article
as a part thereof.
(Source: P.A. 80-841.)
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(40 ILCS 5/14-152) (from Ch. 108 1/2, par. 14-152)
Sec. 14-152.
The amendments to Sections 14-123, 14-123.1 and 14-124 of
this Article (relating to attainment of age 70) made by this amendatory
Act of 1989 shall be retroactive to January 1, 1987.
(Source: P.A. 86-272.)
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(40 ILCS 5/14-152.1) Sec. 14-152.1. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 96-37, Public Act 100-23, Public Act 100-587, Public Act 100-611, Public Act 101-10, Public Act 101-610, Public Act 102-210, or this amendatory Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law. (e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. 1-1-23; 102-956, eff. 5-27-22.) |
(40 ILCS 5/14-152.2)
Sec. 14-152.2. New benefit increases. The General Assembly finds and declares that the amendment to Section 14-104 made by this amendatory Act of the 95th General Assembly that allows members to establish creditable service for certain participation in the University of Illinois Government Public Service Internship Program (GPSI) constitutes a new benefit increase within the meaning of Section 14-152.1. Funding for this new benefit increase will be provided by additional employee contributions under subsection (r) of Section 14-104.
(Source: P.A. 95-652, eff. 10-11-07.) |
(40 ILCS 5/14-153.3) Sec. 14-153.3. Termination of plan. Upon plan termination, a member's interest in the pension fund will be nonforfeitable.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/14-155)
Sec. 14-155. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/14-156)
Sec. 14-156. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/Art. 15 heading) ARTICLE 15.
STATE UNIVERSITIES RETIREMENT SYSTEM
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(40 ILCS 5/15-101) (from Ch. 108 1/2, par. 15-101)
Sec. 15-101.
Creation of system.
A
retirement system is created to provide
retirement annuities and other benefits for employees,
as defined in this
Article, and their dependents.
The system shall be known and may be cited as State Universities Retirement
System. All the business of the system
shall be transacted in that name.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-102) (from Ch. 108 1/2, par. 15-102)
Sec. 15-102. Terms defined. The terms used in this Article shall have the
meanings ascribed to them in Sections 15-103 through 15-198,
except when the context otherwise requires.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-103) (from Ch. 108 1/2, par. 15-103)
Sec. 15-103.
System.
"System": The State Universities Retirement System.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-103.1)
Sec. 15-103.1.
Traditional Benefit Package.
"Traditional benefit
package":
The defined benefit retirement program maintained under the System which
includes retirement annuities payable directly from the System as provided in
Sections 15-135 through 15-140 (but disregarding Section 15-136.4), disability
retirement annuities payable under Section 15-153.2, death benefits payable
directly from the System as provided in Sections 15-141 through 15-144,
survivors insurance benefits payable directly from the System as provided in
Sections 15-145 through 15-149, and contribution refunds as provided in Section
15-154. The traditional benefit package also includes disability benefits as
provided in Sections 15-150 through 15-153.3.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/15-103.2)
Sec. 15-103.2.
Portable Benefit Package.
"Portable benefit package": The
defined benefit retirement program maintained under the System which includes
retirement annuities payable directly from the System as provided in Sections
15-135 through 15-139 (specifically including Section 15-136.4), disability
retirement annuities payable under Section 15-153.2, death benefits payable
directly from the System as provided in Sections 15-141 through 15-144, and
contribution refunds as provided in Section 15-154. The portable benefit
package also includes disability benefits as provided in Sections 15-150
through 15-153.3. The portable benefit package does not include the survivors
insurance benefits payable directly from the System as provided in Sections
15-145 through 15-149.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/15-103.3)
Sec. 15-103.3.
Self-Managed Plan.
"Self-managed plan": The defined
contribution retirement program maintained under the System as described in
Section 15-158.2. The self-managed plan also includes disability benefits as
provided in Sections 15-150 through 15-153.3 (but disregarding disability
retirement annuities under Section 15-153.2). The self-managed plan does not
include retirement annuities, death benefits, or survivors insurance benefits
payable directly from the System as provided in Sections 15-135 through 15-149
and Section 15-153.2, or refunds determined under Section 15-154.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/15-104) (from Ch. 108 1/2, par. 15-104)
Sec. 15-104.
The 1941 Act.
"The 1941 Act": "An Act to provide for the creation, maintenance and
administration of a Retirement System for the benefit of the staff members
and employees of the state universities and certain affiliated
organizations, certain other state educational and scientific agencies, and
the survivors, dependents and other beneficiaries of such employees",
approved July 21, 1941 as amended, and repealed in 1963.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-105) (from Ch. 108 1/2, par. 15-105)
Sec. 15-105.
Board.
"Board": The Board of Trustees of the System.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
Sec. 15-106. Employer. "Employer": The University of Illinois, Southern
Illinois University, Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Western Illinois University, the
State Board of Higher Education, the Illinois Mathematics and Science Academy,
the University Civil Service Merit Board, the Board of
Trustees of the State Universities Retirement System, the Illinois Community
College Board, community college
boards, any association of community college boards organized under Section
3-55 of the Public Community College Act, the Board of Examiners established
under the Illinois Public Accounting Act, and, only during the period for which
employer contributions required under Section 15-155 are paid, the following
organizations: the alumni associations, the foundations and the athletic
associations which are affiliated with the universities and colleges included
in this Section as employers. An individual who begins employment on or after the effective date of this amendatory Act of the 99th General Assembly with any association of community college boards organized under Section 3-55 of the Public Community College Act, the Association of Illinois Middle-Grade Schools, the Illinois Association of School Administrators, the Illinois Association for Supervision and Curriculum Development, the Illinois Principals Association, the Illinois Association of School Business Officials, the Illinois Special Olympics, or an entity not defined as an employer in this Section shall not be deemed an employee for the purposes of this Article with respect to that employment and shall not be eligible to participate in the System with respect to that employment; provided, however, that those individuals who are both employed by such an entity and are participating in the System with respect to that employment on the effective date of this amendatory Act of the 99th General Assembly shall be allowed to continue as participants in the System for the duration of that employment. A department as defined in Section 14-103.04 is
an employer for any person appointed by the Governor under the Civil
Administrative Code of Illinois who is a participating employee as defined in
Section 15-109. The Department of Central Management Services is an employer with respect to persons employed by the State Board of Higher Education in positions with the Illinois Century Network as of June 30, 2004 who remain continuously employed after that date by the Department of Central Management Services in positions with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau or the Department of Innovation and Technology.
The cities of Champaign and Urbana shall be considered
employers, but only during the period for which contributions are required to
be made under subsection (b-1) of Section 15-155 and only with respect to
individuals described in subsection (h) of Section 15-107.
(Source: P.A. 99-830, eff. 1-1-17; 99-897, eff. 1-1-17; 100-611, eff. 7-20-18.)
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(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational, administrative,
secretarial, clerical, mechanical, labor or other staff of an employer
whose employment is permanent and continuous or who is employed in a
position in which services are expected to be rendered on a continuous
basis for at least 4 months or one academic term, whichever is less, who
(A) receives payment for personal services on a warrant issued pursuant to
a payroll voucher certified by an employer and drawn by the State
Comptroller upon the State Treasurer or by an employer upon trust, federal
or other funds, or (B) is on a leave of absence without pay. Employment
which is irregular, intermittent or temporary shall not be considered
continuous for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly attending | ||
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(2) is currently receiving a retirement annuity or a | ||
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(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil | ||
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(5) is on leave of absence without pay for more than | ||
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(6) is hired after June 30, 1979 as a public service | ||
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(7) is employed on or after July 1, 1991 to perform | ||
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(b) Any employer may, by filing a written notice with the board, exclude
from the definition of "employee" all persons employed pursuant to a federally
funded contract entered into after July 1, 1982 with a federal military
department in a program providing training in military courses to federal
military personnel on a military site owned by the United States Government,
if this exclusion is not prohibited by the federally funded contract or
federal laws or rules governing the administration of the contract.
(c) Any person appointed by the Governor under the Civil Administrative
Code of Illinois is an employee, if he or she is a participant in this
system on the effective date of the appointment.
(d) A participant on lay-off status under civil service rules is
considered an employee for not more than 120 days from the date of the lay-off.
(e) A participant is considered an employee during (1) the first 60 days
of disability leave, (2) the period, not to exceed one year, in which his
or her eligibility for disability benefits is being considered by the board
or reviewed by the courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers' compensation or
occupational disease benefits, or disability income under an insurance
contract financed wholly or partially by the employer.
(f) Absences without pay, other than formal leaves of absence, of less
than 30 calendar days, are not considered as an interruption of a person's
status as an employee. If such absences during any period of 12 months
exceed 30 work days, the employee status of the person is considered as
interrupted as of the 31st work day.
(g) A staff member whose employment contract requires services during
an academic term is to be considered an employee during the summer and
other vacation periods, unless he or she declines an employment contract
for the succeeding academic term or his or her employment status is
otherwise terminated, and he or she receives no earnings during these periods.
(h) An individual who was a participating employee employed in the fire
department of the University of Illinois's Champaign-Urbana campus immediately
prior to the elimination of that fire department and who immediately after the
elimination of that fire department became employed by the fire department of
the City of Urbana or the City of Champaign shall continue to be considered as
an employee for purposes of this Article for so long as the individual remains
employed as a firefighter by the City of Urbana or the City of Champaign. The
individual shall cease to be considered an employee under this subsection (h)
upon the first termination of the individual's employment as a firefighter by
the City of Urbana or the City of Champaign.
(i) An individual who is employed on a full-time basis as an officer
or employee of a statewide teacher organization that serves System
participants or an officer of a national teacher organization that serves
System participants may participate in the System and shall be deemed an
employee, provided that (1) the individual has previously earned
creditable service under this Article, (2) the individual files with the
System an irrevocable election to become a participant before January 5, 2012 (the effective date of Public Act 97-651), (3) the
individual does not receive credit for that employment under any other Article
of this Code, and (4) the individual first became a full-time employee of the teacher organization and becomes a participant before January 5, 2012 (the effective date of Public Act 97-651). An employee under this subsection (i) is responsible for paying
to the System both (A) employee contributions based on the actual compensation
received for service with the teacher organization and (B) employer
contributions equal to the normal costs (as defined in Section 15-155)
resulting from that service; all or any part of these contributions may be
paid on the employee's behalf or picked up for tax purposes (if authorized
under federal law) by the teacher organization.
A person who is an employee as defined in this subsection (i) may establish
service credit for similar employment prior to becoming an employee under this
subsection by paying to the System for that employment the contributions
specified in this subsection, plus interest at the effective rate from the
date of service to the date of payment. However, credit shall not be granted
under this subsection for any such prior employment for which the applicant
received credit under any other provision of this Code, or during which
the applicant was on a leave of absence under Section 15-113.2.
(j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau
or the Department of Innovation and Technology and meets the requirements of subsection (a).
(k) The Board shall promulgate rules with respect to determining whether any person is an employee within the meaning of this Section. In the case of doubt as to whether any person is an employee within the meaning of this
Section or any rule adopted by the Board, the decision of the Board shall be
final.(Source: P.A. 101-81, eff. 7-12-19; 101-321, eff. 8-9-19.)
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(40 ILCS 5/15-108) (from Ch. 108 1/2, par. 15-108)
Sec. 15-108.
Participant.
"Participant": A person participating
in this system as specified in Section 15-134.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-108.1) Sec. 15-108.1. Tier 1 member. "Tier 1 member": A participant or an annuitant of a retirement annuity under this Article, other than a participant in the self-managed plan under Section 15-158.2, who first became a participant or member before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Articles 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a person who first became a participant under this System before January 1, 2011 and who accepts a refund and is subsequently reemployed by an employer on or after January 1, 2011.
(Source: P.A. 98-92, eff. 7-16-13.) |
(40 ILCS 5/15-108.2) Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who first becomes a participant under this Article on or after January 1, 2011 and before the implementation date, as defined under subsection (a) of Section 1-161, determined by the Board, other than a person in the self-managed plan established under Section 15-158.2 or a person who makes the election under subsection (c) of Section 1-161, unless the person is otherwise a Tier 1 member. The changes made to this Section by this amendatory Act of the 98th General Assembly are a correction of existing law and are intended to be retroactive to the effective date of Public Act 96-889, notwithstanding the provisions of Section 1-103.1 of this Code.
(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.) |
(40 ILCS 5/15-109) (from Ch. 108 1/2, par. 15-109)
Sec. 15-109.
Participating employee.
"Participating employee": A
participant who at the time is an employee.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
Sec. 15-110. Basic compensation. "Basic compensation": Subject to Section 15-111.5, the gross
basic rate of salary or wages payable by an employer, including: (1) the value of maintenance, board, living quarters, | ||
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(2) the employee contributions required under Section | ||
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(3) the amount paid by any employer to a custodial | ||
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(4) the amount of the premium payable by any employer | ||
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(5) the amount of any elective deferral to a deferred | ||
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Basic compensation does not include (1)
salary or wages for overtime or other extra service; (2) prospective salary
or wages under a summer teaching contract not yet entered upon; and (3)
overseas differential allowances, quarters allowances, post allowances,
educational allowances and transportation allowances paid by an employer
under a contract with the federal government or its agencies for
services rendered in other countries. If an employee elects to receive in
lieu of cash salary or wages, fringe benefits which are not taxable under
the federal Internal Revenue Code of 1986, as amended, the amount of the cash salary or wages
which is waived shall be included in determining basic compensation.
(Source: P.A. 101-321, eff. 8-9-19.)
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(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
Sec. 15-111. Earnings.
(a) "Earnings": Subject to Section 15-111.5, an amount paid for personal services equal to the sum of
the basic compensation plus extra compensation for summer teaching,
overtime or other extra service. For periods for which an employee receives
service credit under subsection (c) of Section 15-113.1 or Section 15-113.2,
earnings are equal to the basic compensation on which contributions are
paid by the employee during such periods. Compensation for employment which is
irregular, intermittent and temporary shall not be considered earnings, unless
the participant is also receiving earnings from the employer as an employee
under Section 15-107.
With respect to transition pay paid by the University of Illinois to a
person who was a participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus immediately prior to
the elimination of that fire department:
(1) "Earnings" includes transition pay paid to the | ||
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(2) "Earnings" includes transition pay paid to the | ||
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(b) For a Tier 2 member, the annual earnings shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. For the purposes of this Section, "consumer price index u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year. (c) With each submission of payroll information in the manner prescribed by the System, the
employer shall certify that the payroll information is correct and complies with all applicable
State and federal laws.(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
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(40 ILCS 5/15-111.5) Sec. 15-111.5. Basic compensation and earnings restrictions. For an employee who first
becomes a participant on or after the effective date of this amendatory Act of the 99th General
Assembly, basic compensation under Section 15-110 and earnings under Section 15-111 shall
not include bonuses, housing allowances, vehicle allowances, social club dues, or athletic club dues.
(Source: P.A. 99-897, eff. 1-1-17.) |
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of earnings": (a) This subsection (a) applies only to a Tier 1 member. For an employee who is paid on an hourly basis or who receives an annual salary
in installments during 12 months of each academic year, the average annual
earnings during the 48 consecutive calendar month period ending with the last
day of final termination of employment or the 4 consecutive academic years of
service in which the employee's earnings were the highest, whichever is
greater.
For any other employee, the average annual earnings during the 4 consecutive
academic years of service in which his or her earnings were the highest.
For an employee with less than 48 months or 4 consecutive academic years of
service, the average earnings during his or her entire period of service.
The earnings of an employee with more than 36 months of service under item (a) of Section 15-113.1 prior to the
date of becoming a participant are, for such period, considered equal to the
average earnings during the last 36 months of such service. (b) This subsection (b) applies to a Tier 2 member. For an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination. For any other employee, the average annual earnings during the 8 consecutive academic years within the 10 years prior to termination in which the employee's earnings were the highest. For an employee with less than 96 consecutive months or 8 consecutive academic years of service, whichever is necessary, the average earnings during his or her entire period of service. (c) For an
employee on leave of absence with pay, or on leave of absence without pay
who makes contributions during such leave, earnings are assumed to be equal
to the basic compensation on the date the leave began. (d) For an employee on
disability leave, earnings are assumed to be equal to the basic compensation
on the date disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs, whichever is
greater.
(e) For a Tier 1 member who retires on or after the effective date of this
amendatory Act of 1997 with at least 20 years of service as a firefighter or
police officer under this Article, the final rate of earnings shall be the
annual rate of earnings received by the participant on his or her last day as a
firefighter or police officer under this Article, if that is greater than the
final rate of earnings as calculated under the other provisions of this
Section.
(f) If a Tier 1 member is an employee for at least
6 months during the academic year in which his or her employment
is terminated, the annual final rate of earnings shall be 25% of the sum
of (1) the annual basic compensation for that year, and (2) the amount
earned during the 36 months immediately preceding that year, if this is
greater than the final rate of earnings as calculated under the other
provisions of this Section.
(g) In the determination of the final rate of earnings for an employee, that
part of an employee's earnings for any academic year beginning after June 30,
1997, which exceeds the employee's earnings with that employer for the
preceding year by more than 20 percent shall be excluded; in the event
that an employee has more than one employer
this limitation shall be calculated separately for the earnings with
each employer. In making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or overtime or to
contracts for summer employment. Beginning September 1, 2024, this subsection (g) also applies to an employee who has been employed at 1/2 time or less for 3 or more years.
(h) The following are not considered as earnings in determining final rate of
earnings: (1) severance or separation pay, (2) retirement pay, (3)
payment for unused sick leave, and (4) payments from an employer for
the period used in determining final rate of earnings for any purpose other
than (i) services rendered, (ii) leave of absence or vacation granted
during that period, and (iii) vacation of up to 56 work days allowed upon
termination of employment; except that, if the benefit has been collectively
bargained between the employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act, payment received
during a period of up to 2 academic years for unused sick leave may be
considered as earnings in accordance with the applicable collective bargaining
agreement, subject to the 20% increase limitation of this Section. Any unused
sick leave considered as earnings under this Section shall not be taken into
account in calculating service credit under Section 15-113.4.
(i) Intermittent periods of service shall be considered as consecutive in
determining final rate of earnings.
(Source: P.A. 103-548, eff. 8-11-23.)
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(40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
Sec. 15-113. Service. "Service": The periods defined in Sections
15-113.1 through 15-113.9 and Sections 15-113.11 through 15-113.12.
(Source: P.A. 100-556, eff. 12-8-17.)
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(40 ILCS 5/15-113.1) (from Ch. 108 1/2, par. 15-113.1)
Sec. 15-113.1.
Service for employment with an employer defined under
Section 15-106. "Service for employment with an employer defined under
Section 15-106": Includes the following periods:
(a) periods prior to September 1, 1941 during which a person was permanently
and continuously employed by an employer.
(b) periods after August 31, 1941 during which a person was an employee
except (1) those during which the employee elected not to participate or
was ineligible to participate, (2) those during which the employee was
on leave of absence at less than 50% pay, except military and disability
leave, but failed, in accordance with rules prescribed by the board, to
elect to make and to pay the contributions required under Section 15-157,
and (3) those during which the employee's eligibility for disability
benefit was being considered by the board or reviewed by the courts, if the
disability benefit was denied.
(c) periods after August 31, 1941 during which a person was employed at
least one-half time for an employer preceding the date of becoming a
participant or during which a person was employed at least one-half time for an employer
not subject to "The 1941 Act" which employer has since been included as
an employer under "The 1941 Act", or this Article, provided the person makes
the contributions required under Section 15-157 based on the rate of earnings
during this period equal to the basic compensation on the date of becoming
a participating employee together with compound interest from the date participation
began to the date payment is received by the board at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date,
and provided that the contributions required under Section 15-155
are also made. However, no service credit shall be allowed for any period
of employment during which an individual is excluded from the definition
of an employee as provided under subsection (b) of Section 15-107.
(Source: P.A. 84-1028.)
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(40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
Sec. 15-113.2.
Service for leaves of absence.
"Service for leaves of
absence" includes those periods of leaves of absence at less than 50%
pay, except military leave and periods of disability leave in excess of 60
days, for which the employee pays the contributions required under Section
15-157 in accordance with rules prescribed by the board based upon the
employee's basic compensation on the date the leave begins, or in the case
of leave for service with a teacher organization, based upon the actual
compensation received by the employee for such service after January 26,
1988, if the employee so elects within 30 days of that date or the date the
leave for service with a teacher organization begins, whichever is later;
provided that the employee (1) returns to employment covered by this system
at the expiration of the leave, or within 30 days after the termination of
a disability which occurs during the leave and continues this employment
at a percentage of time equal to or greater than the percentage of time
immediately preceding the leave of absence for at least 8 consecutive
months or a period equal to the period of the leave,
whichever is less, or (2) is precluded from meeting the foregoing
conditions because of disability or death. If service credit is denied
because the employee fails to meet these conditions, the contributions
covering the leave of absence shall be refunded without interest. The
return to employment condition does not apply if the leave of absence is
for service with a teacher organization.
Service credit provided under this Section shall not exceed 3 years in
any period of 10 years, unless the employee is on special leave granted
by the employer for service with a teacher organization. Commencing with
the fourth year in any period of 10 years, a participant on such special
leave is also required to pay employer contributions equal to the normal
cost as defined in Section 15-155, based upon the employee's basic compensation
on the date the leave begins, or based upon the actual compensation
received by the employee for service with a teacher organization if the
employee has so elected.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
Sec. 15-113.3.
Service for periods of military service.
"Service for
periods of military service": Those periods, not exceeding 5 years, during
which a person served in the armed forces of the United States, of which
all but 2 years must have immediately followed a period of employment
with an employer under this System or the State Employees' Retirement
System of Illinois; provided that the person received a discharge other
than dishonorable and again became an employee under this System within one
year after discharge. However, for the up to 2 years of military service
not immediately following employment, the applicant must make contributions
to the System equal to (1) 8% of the employee's basic compensation on the last date as a
participating employee prior to such military service, or on the first date as
a participating employee after such military service, whichever is greater,
plus (2) an amount determined by the board to be equal to the employer's normal
cost of the benefits accrued for such military service, plus (3) interest on
items (1) and (2) at the effective rate from the later of the date of first
membership in the System or the date of conclusion of military service to the
date of payment. The change in the required contribution for purchased
military credit made by this amendatory Act of 1993 does not entitle any person
to a refund of contributions already paid. The contributions paid under this
Section are not normal contributions as defined in Section 15-114 or additional
contributions as defined in Section 15-115.
The changes to this Section made by this amendatory Act of 1991 shall
apply not only to persons who on or after its effective date are in service
under the System, but also to persons whose employment terminated prior to
that date, whether or not the person is an annuitant on that date. In the
case of an annuitant who applies for credit allowable under this Section
for a period of military service that did not immediately follow
employment, and who has made the required contributions for such credit,
the annuity shall be recalculated to include the additional service credit,
with the increase taking effect on the date the System received written
notification of the annuitant's intent to purchase the credit, if
payment of all the required contributions is made within 60 days of such
notice, or else on the first annuity payment date following the date of
payment of the required contributions. In calculating the automatic annual
increase for an annuity that has been recalculated under this Section, the
increase attributable to the additional service allowable under this
amendatory Act of 1991 shall be included in the calculation of automatic
annual increases accruing after the effective date of the recalculation.
(Source: P.A. 93-347, eff. 7-24-03.)
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(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-113.4. Service for unused sick leave. "Service for unused
sick leave": A person who first becomes a participant before the effective date of this amendatory Act of the 98th
General Assembly and who is an employee under this System or one of
the other systems subject to Article 20 of this Code within 60 days
immediately preceding the date on which his or her retirement annuity
begins, is entitled to credit for service for that portion of unused sick
leave earned in the course of employment with an employer and credited on
the date of termination of employment by an employer for which payment is
not received, in accordance with the following schedule: 30 through 90
full calendar days and 20 through 59 full work days of unused sick leave,
1/4 of a year of service; 91 through 180 full calendar days and 60 through
119 full work days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of service; 271
through 360 full calendar days and 180 through 240 full work days, one year
of service.
Only uncompensated, unused sick leave earned in accordance with an
employer's sick leave accrual policy generally applicable to employees or a
class of employees shall be taken into account in calculating service credit
under this Section. Any uncompensated, unused sick leave granted by an
employer to facilitate the hiring, retirement, termination, or other special
circumstances of an employee shall not be taken into account in calculating
service credit under this Section.
If a participant transfers from one employer to another, the
unused sick leave credited by the previous employer shall be considered in
determining service to be credited under this Section, even if the
participant terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall be
recalculated to reflect such sick leave credit. Each employer shall
certify to the board the number of days of unused sick leave accrued to the
participant's credit on the date that the participant's status as an
employee terminated. This period of unused sick leave shall not be
considered in determining the date the retirement annuity begins. A person
who first becomes a participant on or after the effective date
of this amendatory Act of the 98th General Assembly shall not
receive service credit for unused sick leave.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-113.4.
Service for unused sick leave.
"Service for unused
sick leave": A participant who is an employee under this System or one of
the other systems subject to Article 20 of this Code within 60 days
immediately preceding the date on which his or her retirement annuity
begins, is entitled to credit for service for that portion of unused sick
leave earned in the course of employment with an employer and credited on
the date of termination of employment by an employer for which payment is
not received, in accordance with the following schedule: 30 through 90
full calendar days and 20 through 59 full work days of unused sick leave,
1/4 of a year of service; 91 through 180 full calendar days and 60 through
119 full work days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of service; 271
through 360 full calendar days and 180 through 240 full work days, one year
of service.
Only uncompensated, unused sick leave earned in accordance with an
employer's sick leave accrual policy generally applicable to employees or a
class of employees shall be taken into account in calculating service credit
under this Section. Any uncompensated, unused sick leave granted by an
employer to facilitate the hiring, retirement, termination, or other special
circumstances of an employee shall not be taken into account in calculating
service credit under this Section.
If a participant transfers from one employer to another, the
unused sick leave credited by the previous employer shall be considered in
determining service to be credited under this Section, even if the
participant terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall be
recalculated to reflect such sick leave credit. Each employer shall
certify to the board the number of days of unused sick leave accrued to the
participant's credit on the date that the participant's status as an
employee terminated. This period of unused sick leave shall not be
considered in determining the date the retirement annuity begins.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
Sec. 15-113.5.
Service for employment with other public agencies in
this State. "Service for employment with other public agencies in
this State" includes the following periods:
(a) periods during which a person rendered services for the State of
Illinois, prior to January 1, 1944, under employment not covered by this
Article, if (1) such periods would have been considered creditable service
under the State Employees' Retirement System of Illinois had that system been
in effect at that time, and (2) service credit for such periods has not been
granted under the State Employees' Retirement System of Illinois.
(b) periods credited under the State Employees' Retirement System of
Illinois on the date an employee became eligible for participation in the State
Universities Retirement System as a result of a transfer of a State function
from a department, commission or other agency of this State to an employer,
excluding periods as a "covered employee" as defined in Article 14 of this
Code, provided the employee has received a refund of his or her contributions
from the State Employees' Retirement System of Illinois and pays to this system
contributions equal to the amount of the refund together with compound interest
at the rate required for repayment of a refund under Section 15-154 from the
date the refund is received to the date payment is made.
(c) periods credited in a retirement system covering a governmental unit,
as defined in Section 20-107 on the date a person becomes a participant,
if (1) a function of this governmental unit is transferred in whole or in
part to an employer, and (2) the person transfers employment from the
governmental unit to such employer within 6 months after the employer
begins operation of this function, and (3) the person cannot qualify for
a proportional retirement annuity from the retirement system covering this
governmental unit, and (4) the participant receives a refund of his or her
contributions from the retirement system covering this governmental unit
and pays to this system contributions equal to the amount of the refund
together with compound interest from the date the refund is made by the
system to the date payment is received by the board at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date.
(d) periods during which a participant contributed to the Park Policemen's
Annuity Fund as defined in Section 5-219, provided the participant
and the Chicago Policemen's Annuity Fund pay to this system the required
employee and employer contributions.
(e) periods during which a person rendered services for an athletic
association affiliated with the University of Illinois, provided that (1) the
employee was employed by that athletic association on January 1, 1960, (2)
annuity contracts covering that employment have been purchased by other
retirement systems covering employees of the athletic association, and (3) the
employee files with the board an election to become a participant and assigns
to the board his or her right, title, and interest in those annuity
contracts.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
Sec. 15-113.6. Service for employment in public schools. "Service for
employment in public schools": Includes
those periods not exceeding the lesser of 10 years or 2/3 of the service
granted under other Sections of this Article dealing with service credit,
during which a person who entered the system after September 1, 1974 was
employed full time by a public common school, public college and public
university, or by an agency or instrumentality of any of the foregoing,
of any state, territory, dependency or possession of the United States of
America, including the Philippine Islands, or a school
operated by or under
the auspices of any agency or department of any other state, if the person
(1) cannot qualify for a retirement pension or other benefit based upon
employer
contributions from another retirement system, exclusive of federal social
security, based in whole or in part upon this employment, and (2) pays the
lesser of (A) an amount equal to 8% of his or her annual basic compensation
on the date of becoming a participating employee subsequent to this service
multiplied by the number of years of such service, together with compound
interest from the date participation begins to the date payment is received
by the board at the rate of 6% per annum through August 31, 1982, and at
the effective rates after that date, and (B) 50% of the actuarial value
of the increase in the retirement annuity provided by this service, and
(3) contributes for at least 5 years subsequent to this employment to one
or more of the following systems: the State Universities Retirement System,
the Teachers' Retirement System of the State of Illinois, and the Public
School Teachers' Pension and Retirement Fund of Chicago.
The service granted under this Section shall not be considered in determining
whether the person has the minimum of 8 years of service required to qualify
for a retirement annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62 or the 10 years of service required to qualify for a retirement annuity at age 67, as provided in Section 15-135.
The maximum allowable service of 10 years for this governmental employment
shall be reduced by the service credit which is validated under paragraph
(2) of subsection (b) of Section 16-127 and paragraph 1 of Section 17-133.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
Sec. 15-113.7. Service for other public employment. "Service for
other public employment": Includes those periods not exceeding the lesser of
10 years or 2/3 of the service granted under other Sections of this Article
dealing with service credit, during which a person was employed full time by
the United States government, or by the government of a state, or by a
political subdivision of a state, or by an agency or instrumentality of any of
the foregoing, if the person (1) cannot qualify for a retirement pension or
other benefit based upon employer contributions from another retirement system,
exclusive of federal social security, based in whole or in part upon this
employment, and (2) pays the lesser of (A) an amount equal to 8% of his or her
annual basic compensation on the date of becoming a participating employee
subsequent to this service multiplied by the number of years of such service,
together with compound interest from the date participation begins to the date
payment is received by the board at the rate of 6% per annum through August 31,
1982, and at the effective rates after that date, and (B) 50% of the actuarial
value of the increase in the retirement annuity provided by this service, and
(3) contributes for at least 5 years subsequent to this employment to one or
more of the following systems: the State Universities Retirement System, the
Teachers' Retirement System of the State of Illinois, and the Public School
Teachers' Pension and Retirement Fund of Chicago. If a function of a
governmental unit as defined by Section 20-107 is transferred by law, in whole
or in part to an employer, and an employee transfers employment from this
governmental unit to such employer within 6 months of the transfer of the
function, the payment for service authorized under this Section shall not
exceed the amount which would have been payable for this service to the
retirement system covering the governmental unit from which the function was
transferred.
The service granted under this Section shall not be considered in determining
whether the person has the minimum of 8 years of service required to qualify
for a retirement annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62, as provided in Section 15-135.
The maximum allowable service of 10 years for this governmental employment
shall be reduced by the service credit which is validated under paragraph
(2) of subsection (b) of Section 16-127 and paragraph one of Section 17-133.
Except as hereinafter provided, this Section shall not apply to
persons who become participants in the system after September 1, 1974.
(Source: P.A. 95-83, eff. 8-13-07.)
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(40 ILCS 5/15-113.8) (from Ch. 108 1/2, par. 15-113.8)
Sec. 15-113.8.
Previous service with employer affiliated alumni and
athletic associations and foundations. "Previous service with employer
affiliated alumni and
athletic associations and foundations": Includes the following periods:
(a) Periods of service prior to October 1, 1959 for employer affiliated
alumni associations and foundations for which service credit has been granted
under the provisions relating to this service in effect on January 1, 1984.
(b) Periods of service prior to October 1, 1966 for affiliated athletic
associations for which service credit has been granted under the provisions
relating to this service in effect on January 1, 1984.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-113.9) (from Ch. 108 1/2, par. 15-113.9)
Sec. 15-113.9.
Service for employment with the Illinois Mathematics
and Science Academy. A participating employee who was employed by the
Illinois Mathematics and Science Academy prior to February 1, 1987 shall be
entitled to receive service credit under this System for any period of such
employment prior to February 1, 1987 for which the required contributions have
been received by this System. If credit for such employment has
been granted under any other retirement system governed by this Code,
credit for such employment shall not be granted under this System unless
(1) the employee so elects in writing prior to April 1, 1987, and (2) the
credit granted for such employment in the other retirement system has been
terminated, and any employee and employer contributions received therefor
by the other retirement system have been
transmitted by that retirement system to this System. Such other
retirement system shall terminate such credit, and transfer the associated
contributions, upon receiving notice of the election from the Board of this System.
(Source: P.A. 84-1472.)
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(40 ILCS 5/15-113.10) (from Ch. 108 1/2, par. 15-113.10)
Sec. 15-113.10.
Transfer of creditable service to Article 8, 9 or 13
fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, any county officer elected by vote of the
people who is a participant in the pension fund established under Article 9
of this Code, any chief of the County Police Department or undersheriff
of the County Sheriff's Department who has elected under subparagraph (j) of
Section 9-128.1 to be included within the provisions of Section 9-128.1 of
Article 9 of this Code, and any elected sanitary district commissioner who is
a participant in a pension fund established under Article 13 of this Code,
may apply to transfer his or her credits and creditable service accumulated
under this System to such Article 8, 9 or 13 fund. Such creditable
service shall be transferred forthwith. Payment by this System to the
Article 8, 9 or 13 Fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions equal in amount to the | ||
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Participation in this System shall terminate on the date of transfer.
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a
refund, by payment to the System of the amount of the refund together with
interest at the rate required for repayment of a refund under Section
15-154 from the date the refund was received to the date of payment.
(c) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or sanitary
district commissioner who has credits and creditable service under the System
may establish additional credits and creditable service for periods during
which he or she could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the System of
an amount equal to the contributions that he or she would have made if he or
she had elected to participate, plus regular interest to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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(40 ILCS 5/15-113.11) Sec. 15-113.11. Service for periods of voluntary or involuntary furlough. (a) A participant may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2009 and ending on or before June 30, 2011. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2011; (ii) not receive compensation from an employer for any furlough period; and (iii) make, on an after-tax basis, employee contributions required under Section 15-157 based on the rate of basic compensation during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary or involuntary furlough to the date of payment. The participant shall provide, at the time of application, written certification from the employer providing the total number of furlough days a participant has been required to take.
(b) A participant may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2015 and ending on or before June 30, 2017. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2018; (ii) not receive compensation from an employer for any furlough period; and (iii) make, on an after-tax basis, employee contributions required under Section 15-157 based on the rate of basic compensation during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary or involuntary furlough to the date of payment. The participant shall provide, at the time of application, written certification from the employer providing the total number of furlough days a participant has been required to take. (Source: P.A. 99-897, eff. 1-1-17.) |
(40 ILCS 5/15-113.12) Sec. 15-113.12. Earnings for periods of voluntary pay reduction taken in lieu of furlough. A participant may establish earnings credit for periods of voluntary pay reduction, taken in lieu of furlough, beginning on or after July 1, 2015 and ending on or before June 30, 2017. To receive this credit, the participant must: (1) apply in writing to the System before December 31, 2018; and (2) make, on an after-tax basis, employee contributions required under Section 15-157 based on the voluntary reduction in pay, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary reduction in pay to the date of payment. The participant shall provide, at the time of application, (i) written certification from the employer providing the total voluntary reduction in pay per pay period for each pay period with a voluntary reduction in pay and (ii) written certification from the employer stating that the voluntary reduction in pay was taken in lieu of furlough.
(Source: P.A. 99-897, eff. 1-1-17.) |
(40 ILCS 5/15-114) (from Ch. 108 1/2, par. 15-114)
Sec. 15-114.
Normal contributions.
"Normal contributions": The required
contributions specified under Section
15-157 as normal contributions and amounts paid by a
participant for annuity contracts assigned
to the board in order to obtain service credit for employment by affiliated
alumni associations, foundations, and athletic associations,
and amounts contributed by a participant under Section 15-113.5, Section
15-113.6 and Section 15-113.7.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-115) (from Ch. 108 1/2, par. 15-115)
Sec. 15-115.
Additional contributions.
"Additional contributions": The
amounts paid by a participating employee which are specified under Section
15-157 as additional contributions.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-116) (from Ch. 108 1/2, par. 15-116)
Sec. 15-116.
Accumulated normal contributions.
"Accumulated normal
contributions": The sum of all normal contributions credited
to an employee's account, together with interest
thereon at the effective rate for the respective years.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-117) (from Ch. 108 1/2, par. 15-117)
Sec. 15-117.
Accumulated additional contributions.
"Accumulated
additional contributions": The sum of all additional contributions credited
to an employee's account,
together with interest
thereon at the effective rate for the respective years.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-118) (from Ch. 108 1/2, par. 15-118)
Sec. 15-118.
Annuity.
"Annuity": A series of monthly payments,
payable as of the first
day of each calendar month during the annuity payment period, the first
payment to be made as of the first day of the calendar month coincidental
with or next following the first day of the annuity payment period and the
last payment to be made as of the first day of the calendar month in which
the annuitant dies or the annuity
payment period ends. An annuitant may
authorize the board to deduct from the annuity, premiums due under any
group hospital-medical insurance program which is sponsored or approved by
any employer.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-119) (from Ch. 108 1/2, par. 15-119)
Sec. 15-119.
Annuitant.
"Annuitant": A person receiving a retirement,
reversionary, survivors or beneficiary annuity or disability retirement
annuity from this System.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
Sec. 15-120. Beneficiary; survivor annuitant under portable benefit
package. "Beneficiary": The person or persons designated
by the participant or annuitant in the last written designation on file
with the board; or if no person so designated survives, or if no designation
is on file, the estate of the participant or annuitant. Acceptance by the
participant of a refund of accumulated contributions or an accelerated pension benefit payment under Section 15-185.5
shall result in cancellation of all beneficiary designations previously
filed. A spouse whose marriage was dissolved shall be disqualified
as beneficiary unless the spouse was designated as beneficiary after the
effective date of the dissolution of marriage.
After a joint and survivor annuity commences under the portable benefit
package, the survivor annuitant of a joint and survivor annuity is not
disqualified, and may not be removed, as the survivor annuitant by a
dissolution of the survivor's marriage with the participant or annuitant.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/15-121) (from Ch. 108 1/2, par. 15-121)
Sec. 15-121.
Additional annuity.
"Additional annuity": The portion of a retirement annuity derived from
accumulated additional contributions.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-122) (from Ch. 108 1/2, par. 15-122)
Sec. 15-122.
Reversionary annuity.
"Reversionary annuity": The annuity payable to a beneficiary after the
death of the annuitant as specified in Section 15-140.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-123) (from Ch. 108 1/2, par. 15-123)
Sec. 15-123.
Beneficiary annuity.
"Beneficiary annuity": The annuity payable to a beneficiary after the
death of a participant or annuitant as specified in Section 15-144.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-124) (from Ch. 108 1/2, par. 15-124)
Sec. 15-124.
Actuarial tables.
"Actuarial tables": Such tabular listings of assumed rates of decrement
such as death, disability, retirement and withdrawal from service,
according to age and sex, including mathematical functions derived from the
rates of probability, combined with an interest discount factor, as are
adopted by the board based upon the experience of the system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate of Interest".
(1) "Prescribed rate of interest": The rate of interest to be used in
actuarial valuations and in development of actuarial tables as determined
by the board on the basis of the probable average rate of
interest on a long term basis, based on factors including the expected investment experience; historical and expected fluctuations in the market value of investments; the desirability of minimizing volatility in the rate of investment earnings from year to year; and the provision of reserves for anticipated losses upon sales, redemptions, or other disposition of investments and for variations in interest experience.
(2) "Effective rate of interest": For a fiscal year concluding no later than June 30, 2014, the interest rate for all or any part of
a fiscal year that is determined by the board based
on factors including the system's past and expected investment experience;
historical and expected fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate of interest from
year to year; and the provision of reserves for anticipated losses upon sales,
redemptions, or other disposition of investments and for variations in interest
experience; except that for the purpose of determining the accumulated normal contributions used in calculating retirement annuities under Rule 2 of Section 15-136, the effective rate of interest shall be determined by the State Comptroller rather than the board. For a fiscal year concluding no later than June 30, 2014, the State Comptroller shall determine the effective rate of interest to be used for this purpose using the factors listed above, and shall certify to the board and the Commission on Government Forecasting and Accountability the rate to be used for this purpose for fiscal year 2006 as soon as possible after the effective date of this amendatory Act of the 94th General Assembly, and for each fiscal year thereafter no later than the January 31 immediately preceding the start of that fiscal year. For a fiscal year that begins on or after July 1, 2014, the effective rate of interest for a given fiscal year shall be equal to the interest rate of 30-year United States Treasury bonds as of the beginning of that given fiscal year, plus 75 basis points. This effective rate of interest shall not be used in determining the prescribed rate of interest as defined in paragraph (1) of this Section. (3) The change made to this Section by Public Acts 90-65 and 90-511 is a clarification of existing law.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate of Interest".
(1) "Prescribed rate of interest": The rate of interest to be used in
actuarial valuations and in development of actuarial tables as determined
by the board on the basis of the probable average effective rate of
interest on a long term basis.
(2) "Effective rate of interest": The interest rate for all or any part of
a fiscal year that is determined by the board based
on factors including the system's past and expected investment experience;
historical and expected fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate of interest from
year to year; and the provision of reserves for anticipated losses upon sales,
redemptions, or other disposition of investments and for variations in interest
experience; except that for the purpose of determining the accumulated normal contributions used in calculating retirement annuities under Rule 2 of Section 15-136, the effective rate of interest shall be determined by the State Comptroller rather than the board. The State Comptroller shall determine the effective rate of interest to be used for this purpose using the factors listed above, and shall certify to the board and the Commission on Government Forecasting and Accountability the rate to be used for this purpose for fiscal year 2006 as soon as possible after the effective date of this amendatory Act of the 94th General Assembly, and for each fiscal year thereafter no later than the January 31 immediately preceding the start of that fiscal year. (3) The change made to this Section by Public Acts 90-65 and 90-511 is a clarification of existing law.
(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
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(40 ILCS 5/15-126) (from Ch. 108 1/2, par. 15-126)
Sec. 15-126.
Fiscal year.
"Fiscal year": Until July 1, 1987, the period
beginning on September 1 in any year, and ending on August 31 of the
succeeding year, except that the 1987 fiscal year shall end on June 30.
Beginning July 1, 1987, "fiscal year" means the period beginning on July 1
in any year, and ending on June 30 of the succeeding year.
(Source: P.A. 84-1472.)
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(40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
Sec. 15-126.1. Academic year. "Academic year": The 12-month period
beginning on the first day of the fall term as determined
by each employer, or if the employer does not have an academic program
divided into terms, then beginning September 1. For the purposes of Section 15-139.5 and subsection (b) of Section 15-139, however, "academic year" means the 12-month period beginning September 1.
(Source: P.A. 98-596, eff. 11-19-13.)
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(40 ILCS 5/15-126.2) Sec. 15-126.2. Plan year. "Plan year": The 12-month period beginning on July 1 in any year, and ending on June 30 of the succeeding year.
(Source: P.A. 99-450, eff. 8-24-15.) |
(40 ILCS 5/15-127) (from Ch. 108 1/2, par. 15-127)
Sec. 15-127.
Surviving spouse.
"Surviving spouse": (a) The surviving wife or husband
of a participant, but only if she or he (1) is the mother or father
of the participant's son or daughter, (2) legally adopted the son
or daughter while married to the participant and while the son or daughter
was under age 18, (3) was married
to the participant at the time both of them legally adopted
a child under age 18, or (4) was married to the participant
for not less than one year immediately prior to
the day the participant died; and (b) The surviving
wife or husband of an annuitant, if their marriage occurred at least
one year prior to the date the annuitant died.
The change in this Section made by Public Act 82-478 shall be applicable
to annuitants whose employment status terminated before September 15, 1981
as well as those who terminate employment after that date but not to annuitants
who pass away before that date.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-129) (from Ch. 108 1/2, par. 15-129)
Sec. 15-129. Child.
"Child": The child of a participant or an annuitant, including a child born out of wedlock, a stepchild who has been such for not less than 1 year
immediately preceding the death of the participant or annuitant, and an
adopted child.
(Source: P.A. 94-229, eff. 1-1-06; 95-279, eff. 1-1-08.)
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(40 ILCS 5/15-130) (from Ch. 108 1/2, par. 15-130)
Sec. 15-130.
Parent.
"Parent": The mother or father of a participant or annuitant, a
stepparent of a participant or an annuitant by a marriage contracted before
the participant or annuitant attained age 16, or an adopting parent by whom
the participant or annuitant was adopted before he or she reached age 16.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
Sec. 15-131.
Survivors insurance beneficiary.
"Survivors insurance
beneficiary": The spouse, dependent unmarried child under age 18 (under age
22 if a full-time student), unmarried child over age 18 who is dependent by
reason of a physical or mental disability which began prior to attainment of
that age, or dependent parent, who could qualify for survivors insurance
payments under this Article.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/15-132) (from Ch. 108 1/2, par. 15-132)
Sec. 15-132.
Accumulated survivors insurance contributions.
"Accumulated survivors insurance contributions": The sum of all
survivors insurance contributions received from a participating
employee, together with interest at the prescribed rate.
(Source: P.A. 81-1165.)
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(40 ILCS 5/15-132.1) (from Ch. 108 1/2, par. 15-132.1)
Sec. 15-132.1.
Police officer.
"Police officer": a participant who is
a peace officer empowered to make arrests to protect the property,
interests, students and personnel of an employer.
(Source: P.A. 86-273; 86-1488.)
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(40 ILCS 5/15-132.2)
Sec. 15-132.2.
Retire and retirement.
A participant "retires", and his or
her "retirement" begins, when his or her annuity payment period begins.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-133) (from Ch. 108 1/2, par. 15-133)
Sec. 15-133.
Employer participation.
Each employer shall participate in and be subject to the provisions of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Each person shall, as a condition of employment, become a participant
and be subject to this Article on the date that he or she becomes an
employee, makes an election to participate in, or otherwise becomes a
participant in one of the retirement programs offered under this Article,
whichever date is later.
An employee who becomes a participant shall continue to be a participant
until he or she becomes an annuitant, dies or accepts a refund of
contributions.
(b) A person employed concurrently by 2 or more employers is
eligible to participate in the system on compensation received from all
employers.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)
Sec. 15-134.1. Service calculation and adjustment.
(a) For the purposes of computing service for academic years for any participant, the following schedule shall govern: one month of service means
a calendar month during which a participant (i) qualifies as an employee
under Section 15-107 for at least 15 or more days, and (ii) receives any
earnings as an employee; 8 or more
months of service during an academic year shall constitute a year of service;
6 or more but less than 8 months of service during an academic year
shall constitute 3/4 of a year of service; 3 or more but less than 6 months
of service during an academic year shall constitute 1/2 of a
year of service; and one or more but less than 3 months of service during
an academic year shall constitute 1/4 of a year of service. No more than
one year of service may be granted per academic year, regardless of the
number of hours or percentage of time worked. This subsection (a) does not apply to service periods to which subsection (a-5) applies. (a-5) For the purposes of computing service for academic years for any participant, the following schedule shall govern: one month of service means a calendar month during which a participant (i) qualifies as an employee under Section 15-107 and contributes to the System, and (ii) receives any earnings as an employee; 8 or more months of service during an academic year shall constitute a year of service; 6 or more but less than 8 months of service during an academic year shall constitute 3/4 of a year of service; 3 or more but less than 6 months of service during an academic year shall constitute 1/2 of a year of service; and one or more but less than 3 months of service during an academic year shall constitute 1/4 of a year of service. No more than one year of service may be granted per academic year, regardless of the number of hours or percentage of time worked. This subsection (a-5) applies to all service periods of a member who is a participant on or after September 1, 2024; except that such changes shall not apply to service periods that were subject to: (1) a purchase under subsection (i) of Section 15-107, subsection (c) of Section 15-113.1, or Section 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or 15-113.11; (2) a repayment of a refund under subsection (b) of Section 15-154 or a distribution under subsection (j) of Section 15-158.2; or (3) a transfer under Section 15-113.10, 15-134.2, or 15-134.4 if payment for such purchase, repayment, or transfer commenced prior to September 1, 2024.
(b) In calculating a retirement annuity, if a participant has been employed
at 1/2 time or less for 3 or more years after September 1, 1959, service
shall be granted for such employment in excess of 3 years, in the proportion
that the percentage of time employed for each such year of employment
bears to the average annual percentage of time employed during
the period on which the final rate of earnings is based. This adjustment
shall not be made, however, in determining the eligibility for a retirement
annuity, disability benefits, additional death benefits, or survivors'
insurance. The percentage of time employed shall be as reported by the
employer. This subsection (b) shall not apply to a member who is a participant on or after September 1, 2024.
(Source: P.A. 103-548, eff. 8-11-23.)
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(40 ILCS 5/15-134.2) (from Ch. 108 1/2, par. 15-134.2)
Sec. 15-134.2.
Transfer of creditable service to the General Assembly
Retirement System. (a) An active member of the General Assembly Retirement
System may apply to transfer his or her credits and creditable service accumulated
under this system to the General Assembly Retirement System. The credits
and creditable service shall be transferred forthwith. Payment by this
system to the General Assembly Retirement System shall be made at the same
time and shall consist of: (1) the amounts credited to the applicant, through
employee contributions, including interest, as of the date of transfer;
and (2) employer contributions equal in amount to the accumulated employee
contributions as determined in subparagraph (1) above. Participation in
this system shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service credits
terminated upon receipt of a refund by payment to the system of the amount
of the refund together with compound interest at the rate required for repayment
of a refund under Section 15-154 from the date the refund was received to
the date of payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-134.3) (from Ch. 108 1/2, par. 15-134.3)
Sec. 15-134.3.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in this System for the
duration of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this System,
upon payment to this System of the amount by which (1) the employer and
employee contributions that would have been required if he had participated
in this System during the period for which credit under Section 2-117.1
is being transferred, plus interest thereon at the effective rate from the
date of such participation to the date of payment, exceeds (2) the amounts
actually transferred under that Section to this System.
(Source: P.A. 86-272.)
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(40 ILCS 5/15-134.4) (from Ch. 108 1/2, par. 15-134.4)
Sec. 15-134.4. Transfer of creditable service to an Article 3 pension fund, the
Article 5 Pension Fund, or the Article 14 System.
(a) An active member of the Pension Fund established under Article 5 of this
Code may apply, not later than January 1, 1990, to transfer his or her
credits and creditable service
accumulated under this System for service with the City Colleges of Chicago
teaching in the Criminal Justice Program, to the Article 5 Fund. Such
credits and creditable service shall be transferred forthwith. Payment by this
System to the Article 5 Fund shall be made at the same time and shall
consist of: (1) the amounts credited to the applicant for such | ||
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(2) employer contributions equal in amount to the | ||
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Participation in this
System with respect to such credits shall terminate on the date of transfer.
(b) Any active member of the State Employees' Retirement System who is
a State policeman, an investigator for the Secretary of State, or a conservation police officer, and who is not a participating employee in this System, may apply for transfer of
some or all of his or her creditable service accumulated
in this System for service as a police officer to the State Employees'
Retirement System in accordance with Section 14-110. The creditable service shall be transferred only upon payment
by this System to the State Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions equal in amount to the | ||
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Participation in this System as to any credits transferred under this
Section shall terminate on the date of transfer.
(c) Any person applying to transfer service under subsection (b) may reinstate credits and
creditable service terminated upon receipt of a refund by paying
to the System the amount of the refund plus interest thereon at the
rate of 6% per year from the date of the refund to the date of payment. (d) No later than June 30, 2023, any active member of a pension fund established under Article 3 of this Code who is not a participating employee in this System may apply for transfer of some or all of his or her creditable service accumulated in this System for service as a police officer to that Article 3 pension fund in accordance with Section 3-110.13. The creditable service shall be transferred only upon payment by this System to that Article 3 pension fund of an amount equal to: (1) the amounts accumulated to the credit of the | ||
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(2) employer contributions equal in amount to the | ||
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Participation in this System as to any credits transferred under this Section shall terminate on the date of transfer. (e) An application to transfer credits and creditable service under this Section shall be irrevocable. (Source: P.A. 102-1061, eff. 1-1-23.)
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(40 ILCS 5/15-134.5)
Sec. 15-134.5.
Retirement program elections.
(a) All participating employees are participants under the traditional
benefit package prior to January 1, 1998.
Effective as of the date that an employer elects, as described in Section
15-158.2, to offer to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package, each of
that employer's eligible employees (as defined in subsection (b)) shall be
given the choice to elect which retirement program he or she wishes to
participate in with respect to all periods of covered employment occurring on
and after the effective date of the employee's election. The retirement
program election made by an eligible employee must be made in writing, in the
manner prescribed by the System, and within the time period described in
subsection (d) or (d-1).
The employee election authorized by this Section is a one-time, irrevocable
election. If an employee terminates employment after making the election
provided under this subsection (a), then upon his or her subsequent
re-employment with an employer the original election shall automatically apply
to him or her, provided that the employer is then a participating employer as
described in Section 15-158.2.
An eligible employee who fails to make this election shall, by default,
participate in the traditional benefit package.
(b) "Eligible employee" means an employee (as defined in Section
15-107) who is either a currently eligible employee or a newly eligible
employee. For purposes of this Section, a "currently eligible employee"
is an employee who is employed by an employer on the effective date on which
the employer offers to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package. A "newly
eligible employee" is an employee who first becomes employed by an employer
after the effective date on which the employer offers its employees the
portable benefit package and the self-managed plan as alternatives to the
traditional benefit package.
A newly eligible employee participates in the traditional benefit package
until he or she makes an election to participate in the portable benefit
package or the self-managed plan. If an employee does not elect to participate
in the portable benefit package or the self-managed plan, he or she shall
continue to participate in the
traditional benefit package by default.
(c) An eligible employee who at the time he or she is first eligible to
make the election described in subsection (a) does not have sufficient age and
service to qualify for a retirement annuity under Section 15-135 may elect to
participate in the traditional benefit package, the portable benefit package,
or the self-managed plan. An eligible employee who has sufficient age and
service to qualify for a retirement annuity under Section 15-135 at the time he
or she is first eligible to make the election described in subsection (a) may
elect to participate in the traditional benefit package or the portable benefit
package, but may not elect to participate in the self-managed plan.
(d) A currently eligible employee must make this election within one year
after the effective date of the employer's adoption of the self-managed plan.
A newly eligible employee must make this election within
6 months after the date on which the System receives the report of status
certification from the employer.
If an employee elects to participate in the self-managed plan, no employer
contributions shall be remitted to the self-managed plan when the employee's
account balance transfer is made. Employer contributions to the self-managed
plan shall commence as of the first pay period that begins after the System
receives the employee's election.
(d-1) A newly eligible employee who, prior to the effective date of this
amendatory Act of the 91st General Assembly, fails to make the election within
the period provided under subsection (d) and participates by default in the
traditional benefit package may make a late election to participate in the
portable benefit package or the self-managed plan instead of the traditional
benefit package at any time within 6 months after the effective date of this
amendatory Act of the 91st General Assembly.
(e) If a currently eligible employee elects the portable benefit
package, that
election shall not become effective until the one-year anniversary of the date
on which the election is filed with the System, provided the employee remains
continuously employed by the employer throughout the one-year waiting period,
and any benefits payable to or on account of the employee before such one-year
waiting period has ended shall not be determined under the provisions
applicable to the portable benefit package but shall instead be determined in
accordance with the traditional benefit package. If a currently
eligible employee who
has elected the portable benefit package terminates employment covered by the
System before the one-year waiting period has ended, then no
benefits shall be determined under the portable benefit package provisions
while he or she is inactive in the System and upon re-employment with an
employer covered by the System he or she shall begin a new one-year waiting
period before the provisions of the portable benefit
package become effective.
(f) An eligible employee shall be provided with written information prepared
or prescribed by the System which describes the employee's retirement program
choices. The eligible employee shall be offered an opportunity to
receive counseling from the System prior to making his or her election. This
counseling may consist of videotaped materials, group presentations, individual
consultation with an employee or authorized representative of the System in
person or by telephone or other electronic means, or any combination of these
methods.
(Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions.
(a) This subsection (a) applies only to a Tier 1 member. A participant who retires in one of the following specified years with
the specified amount of service is entitled to a retirement annuity at any age
under the retirement program applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after September 1, 1941, is
entitled to a retirement annuity on or after attainment of age 55.
A participant with at least 5 but less than 8 years
of service after September 1, 1941, is entitled to a retirement annuity on
or after attainment of age 62.
A participant who has at least 25 years of service in this system as a
police officer or firefighter is entitled to a retirement
annuity on or after the attainment of age 50, if Rule 4 of Section
15-136 is applicable to the participant.
(a-5) A Tier 2 member is entitled to a retirement annuity upon written application if he or she has attained age 67 and has at least 10 years of service credit and is otherwise eligible under the requirements of this Article. A Tier 2 member who has attained age 62 and has at least 10 years of service credit and is otherwise eligible under the requirements of this Article may elect to receive the lower retirement annuity provided in subsection (b-5) of Section 15-136 of this Article. (a-10) A Tier 2 member who has at least 20 years of service in this system as a police officer or firefighter is entitled to a retirement annuity upon written application on or after the attainment of age 60 if Rule 4 of Section 15-136 is applicable to the participant. The changes made to this subsection by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011. (b) The annuity payment period shall begin on the date specified by the
participant or the recipient of a disability retirement annuity submitting a written application. For a participant, the date on which the annuity payment period begins shall not be prior
to termination of employment or more than one year before the application is
received by the board; however, if the participant is not an employee of an
employer participating in this System or in a participating system as defined
in Article 20 of this Code on April 1 of the calendar year next following
the calendar year in which the participant attains the age specified under Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, the annuity
payment period shall begin on that date regardless of whether an application
has been filed. For a recipient of a disability retirement annuity, the date on which the annuity payment period begins shall not be prior to the discontinuation of the disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under Section
15-136 is less than $10 per month.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
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(40 ILCS 5/15-135.1)
Sec. 15-135.1.
Election to avoid application of P.A.
90-65.
(a) A participant who was an employee on July 7, 1997 and retires on or
after the effective date of this amendatory Act of the 91st General Assembly
may elect in writing at the time of retirement to have
the retirement annuity calculated in accordance with the provisions of Sections
15-135 and 15-136 as they existed immediately prior to amendment by Public Act
90-65. This election, once made, is irrevocable.
(b) The fact that a person has elected to participate in the optional
retirement program under Section 15-158.2 or has elected the portability
option under subsection (a-1) of Section 15-154 does not prevent the person
from making an election under subsection (a) of this Section; the fact that
such a person makes an election under subsection (a) does not allow the person
to change the irrevocable election that he or she made under Section 15-158.2
or subsection (a-1) of Section 15-154.
(c) The System shall promptly notify the Department of Central Management
Services of each election made under this Section.
(Source: P.A. 91-395, eff. 7-30-99.)
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(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount. The provisions of this
Section 15-136 apply only to those participants who are participating in the
traditional benefit package or the portable benefit package and do not
apply to participants who are participating in the self-managed plan.
(a) The amount of a participant's retirement annuity, expressed in the form
of a single-life annuity, shall be determined by whichever of the following
rules is applicable and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final rate of earnings for
each of the first 10 years of service, 1.90% for each of the next 10 years of
service, 2.10% for each year of service in excess of 20 but not exceeding 30,
and 2.30% for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for each year of
service.
Rule 2: The retirement annuity shall be the sum of the following,
determined from amounts credited to the participant in accordance with the
actuarial tables and the effective rate of interest in effect at the
time the retirement annuity begins:
(i) the normal annuity which can be provided on an | ||
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(ii) an annuity from employer contributions of an | ||
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(iii) the annuity that can be provided on an | ||
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With respect to a police officer or firefighter who retires on or after
August 14, 1998, the accumulated normal contributions taken into account under
clauses (i) and (ii) of this Rule 2 shall include the additional normal
contributions made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this Rule 2 shall
be computed solely on the basis of the participant's accumulated normal
contributions, as specified in this Rule and defined in Section 15-116.
Neither an employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be used in the
calculation of the amount of a retirement annuity under this Rule 2.
This amendatory Act of the 91st General Assembly is a clarification of
existing law and applies to every participant and annuitant without regard to
whether status as an employee terminates before the effective date of this
amendatory Act.
This Rule 2 does not apply to a person who first becomes an employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is employed
at least one-half time during the period on which his or her final rate of
earnings is based, shall be equal to the participant's years of service
not to exceed 30, multiplied by (1) $96 if the participant's final rate
of earnings is less than $3,500, (2) $108 if the final rate of earnings is
at least $3,500 but less than $4,500, (3) $120 if the final rate of earnings
is at least $4,500 but less than $5,500, (4) $132 if the final rate
of earnings is at least $5,500 but less than $6,500, (5)
$144 if the final rate of earnings is at least $6,500 but less than
$7,500, (6) $156 if the final rate of earnings is at least $7,500 but less
than $8,500, (7) $168 if the final rate of earnings is at least $8,500 but
less than $9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under the portable
retirement benefit program pursuant to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or more years of
service as a police officer or firefighter, and a participant who is age 55 or
over and has at least 20 but less than 25 years of service as a police officer
or firefighter, shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of service as a police
officer or firefighter, 2 1/2% for each of the next 10 years of service as a
police officer or firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity for all other
service shall be computed under Rule 1. A Tier 2 member is eligible for a retirement annuity calculated under Rule 4 only if that Tier 2 member meets the service requirements for that benefit calculation as prescribed under this Rule 4 in addition to the applicable age requirement under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a firefighter
shall also include the following:
(i) service that is performed while the person is an | ||
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(ii) in the case of an individual who was a | ||
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(b) For a Tier 1 member, the retirement annuity provided under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each month the participant is under age 60 at the
time of retirement. However, this reduction shall not apply in the following
cases:
(1) For a disabled participant whose disability | ||
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(2) For a participant who has at least the number of | ||
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(3) For that portion of a retirement annuity which | ||
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(b-5) The retirement annuity of a Tier 2 member who is retiring under Rule 1 or 3 after attaining age 62 with at least 10 years of service credit shall be reduced by 1/2 of 1% for each full month that the member's age is under age 67. (c) The maximum retirement annuity provided under Rules 1, 2, 4,
and 5
shall be the lesser of (1) the annual limit of benefits as specified in
Section 415 of the Internal Revenue Code of 1986, as such Section may be
amended from time to time and as such benefit limits shall be adjusted by
the Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates after August 14,
1969 shall receive automatic increases in his or her retirement annuity as
follows:
Effective January 1 immediately following the date the retirement annuity
begins, the annuitant shall receive an increase in his or her monthly
retirement annuity of 0.125% of the monthly retirement annuity provided under
Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section, multiplied by
the number of full months which elapsed from the date the retirement annuity
payments began to January 1, 1972, plus 0.1667% of such annuity, multiplied by
the number of full months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to January 1, 1978, plus
0.25% of such annuity multiplied by the number of full months which elapsed
from January 1, 1978, or the date the retirement annuity payments began,
whichever is later, to the effective date of the increase.
The annuitant shall receive an increase in his or her monthly retirement
annuity on each January 1 thereafter during the annuitant's life of 3% of
the monthly annuity provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this Section. The change made under this subsection by P.A. 81-970 is
effective January 1, 1980 and applies to each annuitant whose status as
an employee terminates before or after that date.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including all increases previously
granted under this Article.
The change made in this subsection by P.A. 85-1008 is effective January
26, 1988, and is applicable without regard to whether status as an employee
terminated before that date.
(d-5) A retirement annuity of a Tier 2 member shall receive annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased. (e) If, on January 1, 1987, or the date the retirement annuity payment
period begins, whichever is later, the sum of the retirement annuity
provided under Rule 1 or Rule 2 of this Section
and the automatic annual increases provided under the preceding subsection
or Section 15-136.1, amounts to less than the retirement
annuity which would be provided by Rule 3, the retirement
annuity shall be increased as of January 1, 1987, or the date the
retirement annuity payment period begins, whichever is later, to the amount
which would be provided by Rule 3 of this Section. Such increased
amount shall be considered as the retirement annuity in determining
benefits provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee terminated before the
effective date of this amendatory Act of 1987, provided that the annuitant was
employed at least one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity as may be provided
on an actuarially equivalent basis, by any accumulated
additional contributions to his or her credit. However,
the additional contributions made by the participant toward the automatic
increases in annuity provided under this Section shall not be taken into
account in determining the amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as defined by Section
20-107 of this Code, is transferred in whole or in part to an employer, and (2)
a participant transfers employment from such governmental unit to such employer
within 6 months after the transfer of the function, and (3) the sum of (A) the
annuity payable to the participant under Rule 1, 2, or 3 of this Section (B)
all proportional annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary insurance amount to
which the participant is entitled under the Social Security Act, is less than
the retirement annuity which would have been payable if all of the
participant's pension credits validated under Section 20-109 had been validated
under this system, a supplemental annuity equal to the difference in such
amounts shall be payable to the participant.
(h) On January 1, 1981, an annuitant who was receiving
a retirement annuity on or before January 1, 1971 shall have his or her
retirement annuity then being paid increased $1 per month for
each year of creditable service. On January 1, 1982, an annuitant whose
retirement annuity began on or before January 1, 1977, shall have his or her
retirement annuity then being paid increased $1 per month for each year of
creditable service.
(i) On January 1, 1987, any annuitant whose retirement annuity began on or
before January 1, 1977, shall have the monthly retirement annuity increased by
an amount equal to 8¢ per year of creditable service times the number of years
that have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011.(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/15-136.1) (from Ch. 108 1/2, par. 15-136.1)
Sec. 15-136.1.
Retirement annuities - Supplemental annuity.
(a) An
annuitant whose status as an employee terminated before August 15, 1969
with at least 15 years of service is entitled to a supplemental annuity as follows:
Effective January 1, nearest the first anniversary of retirement, or January
1, nearest the annuitant's 65th birthday, whichever is later, the annuitant
shall receive a supplemental annuity of 0.125% of the monthly retirement
annuity which was provided under Rule 1, Rule 2, or Rule 3 of Section 15-136,
multiplied by the number of full months which elapsed from the date of
retirement through December 31, 1971, 0.1667% of such annuity multiplied by
the number of full months which elapsed from January 1, 1972 through
December 31, 1977, and 0.25% of such annuity multiplied by the number of
full months which elapsed from January 1, 1978 to the effective date of the
supplemental annuity.
On each January 1 thereafter during the annuitant's lifetime, he or she
shall receive an additional supplemental annuity of 3% of the monthly annuity
provided under Rule 1, Rule 2 or Rule 3 of Section 15-136. The change made
in this Section by P.A. 81-970 is effective January 1, 1980 and applies
to each annuitant whose status as an employee terminated before August
15, 1969.
The supplemental annuity is payable only if the annuitant files with
the board, an agreement to pay to the system, an amount equal to 1%
of his or her monthly final rate of earnings multiplied by the number of
years of service credited on the date of retirement. The payment shall be
made in a lump sum, and if it is received by the board more than 30 days
after the effective date of the supplemental annuity, the supplemental
annuity shall be deferred to the first day of the month following receipt of the payment.
(b) Each annuitant, whose status as an employee terminated before
August 15, 1969 with less than 15 years of service, is entitled to a monthly
supplemental annuity effective January 1, 1984 or January 1 nearest the
first anniversary of retirement or January 1 nearest his or her
65th birthday, whichever is later, of 3% of the monthly annuity which was
provided by Rule 1, Rule 2, or Rule 3 of Section 15-136. On each January
1 thereafter during the lifetime of the annuitant, he or she shall be
entitled to an additional monthly supplemental annuity of 3% of the monthly
annuity which was provided by Rule 1, Rule 2, or Rule 3 of Section 15-136.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including all increases previously
granted under this Article.
(Source: P.A. 86-273.)
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(40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
Sec. 15-136.2.
Early retirement without discount.
A participant whose
retirement annuity begins after June 1, 1981 and on or before September 1,
2002 and within six months of the last day of employment for which
retirement contributions were required, may elect at the time of
application to make a one time employee contribution to the System and
thereby avoid the early retirement reduction in retirement annuity
specified under subsection (b) of Section 15-136. The exercise of the
election shall obligate the last employer to also make a one time
non-refundable contribution to the System.
The one time employee and employer contributions shall be a percentage
of the retiring participant's highest full time annual salary rate during
the academic years which were considered in determining his or her final
rate of earnings, or if not full time then the full time equivalent. The
employee contribution rate shall be 7% multiplied by the lesser of the
following 2 sums: (1) the number of years that the participant is less than
age 60; or (2) the number of years that the participant's creditable
service is less than 35 years. The employer contribution shall be at the
rate of 20% for each year the participant is less than age 60. The
employer shall pay the employer contribution from the same source of funds
which is used in paying earnings to employees.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions. The provisions of this
Section shall not be applicable until all the above outlined contributions
have been received by the System; however, the date such contributions are
received shall not be considered in determining the effective date of
retirement.
Employee and employer contributions under this Section shall be used only
to eliminate the reduction for early retirement under Rules 1 and 3 of Section
15-136 and shall not be used in calculating annuities under Rules 2
or 4
set forth in Section 15-136. This amendatory Act of the 91st General
Assembly is a clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee terminates before
the effective date of this amendatory Act.
For persons who apply to the Board after the effective date of this
amendatory Act of 1993 and before July 1, 1993, requesting a retirement annuity
to begin no earlier than July 1, 1993 and no later than June 30, 1994, the
employer shall pay both the employee and employer contributions required under
this Section.
The number of employees retiring under this Section in any fiscal year
may be limited at the option of the employer to no less than 15% of those
eligible. The right to elect early retirement without discount shall be
allocated among those applying on the basis of seniority in the service of
the last employer.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97; 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-136.3)
Sec. 15-136.3. Minimum retirement annuity.
(a) Beginning January 1, 1997, any person who is receiving a monthly
retirement
annuity under this Article which, after inclusion of (1) all one-time and
automatic annual increases to which the person is entitled, (2) any
supplemental annuity payable under Section 15-136.1, and (3) any amount
deducted under Section 15-138 or 15-140 to provide a reversionary annuity, is
less than the minimum monthly retirement benefit amount specified in subsection
(b) of this Section, shall be entitled to a monthly supplemental payment equal
to the difference.
(b) For purposes of the calculation in subsection (a), the minimum monthly
retirement benefit amount is the sum of $25 for each year of service credit, up
to a maximum of 30 years of service.
(c) This Section applies to all persons receiving a retirement annuity under
this Article, without regard to whether or not employment terminated prior to
the effective date of this Section.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-136.4)
Sec. 15-136.4. Retirement and Survivor Benefits Under Portable
Benefit Package. (a) This Section 15-136.4 describes the form of annuity and survivor
benefits available to a participant who has elected the portable benefit
package and has completed the one-year waiting period required under subsection
(e) of Section 15-134.5. For purposes of this Section, the term
"eligible spouse" means the husband or wife of a participant to whom the
participant is married on the date the participant's annuity
payment period begins, provided however, that if the participant should die prior
to the commencement of retirement annuity benefits, then "eligible spouse"
means the husband or wife, if any, to whom
the participant was married throughout the one-year period preceding the date
of his or her death.
(b) This subsection (b) describes the normal form of annuity payable
to a participant subject to this Section 15-136.4. If the participant is
unmarried on the date his or her annuity payment period begins, then the annuity
payments shall be made in the form of a single-life annuity as described in
Section 15-118. If the participant is married on the date his or her annuity
payments commence, then the annuity payments shall be paid in the form of a
qualified joint and survivor annuity that is the actuarial equivalent of the
single-life annuity. Under the "qualified joint and survivor annuity", a
reduced amount shall be paid to the participant for his or her lifetime and his
or her eligible spouse, if surviving at the participant's death, shall be
entitled to receive thereafter a lifetime survivorship annuity in a monthly
amount equal to 50% of the reduced monthly amount that was payable to the
participant. The last payment of a qualified joint and survivor annuity shall
be made as of the first day of the month in which the death of the survivor
occurs.
(c) Instead of the normal form of annuity that would be paid under
subsection (b), a participant may elect in writing within the 180-day period
prior to the date his or her annuity payments commence to waive the normal form
of annuity payment and receive an optional form of payment as described in
subsection (h). If the participant is married and elects an optional form of
payment under subsection (h) other than a joint and survivor annuity with the
eligible spouse designated as the contingent annuitant, then such election
shall require the consent of his or her eligible spouse in the manner described
in subsection (d). At any time during the 180-day period preceding the date the
participant's payment period begins, the participant may revoke the optional form
of payment elected under this subsection (c) and reinstate coverage under the qualified
joint and survivor annuity without the spouse's consent, but an election to
revoke the optional form elected and elect a new optional form of payment or designate a
different contingent annuitant shall not be effective without the eligible
spouse's consent.
(d) The eligible spouse's consent to any election made
pursuant to this Section that requires the eligible spouse's consent shall be
in writing and shall acknowledge the effect of the consent. In addition, the
eligible spouse's signature on the written consent must be witnessed by a
notary public. The eligible spouse's consent need not be obtained if the
system is satisfied that there is no eligible spouse, that the eligible spouse
cannot be located, or because of any other relevant circumstances. An eligible
spouse's consent under this Section is valid only with respect to the specified
optional form of payment and, if applicable, contingent
annuitant designated by the participant. If the optional form of payment or
the contingent annuitant is subsequently changed (other than
by a revocation of the optional form of payment and reinstatement of the qualified joint
and survivor annuity), a new consent by the eligible spouse is required. The
eligible spouse's consent to an election made by a participant pursuant to this
Section, once made, may not be revoked by the eligible spouse.
(e) Within a reasonable period of time preceding the date a
participant's annuity commences, a participant shall be supplied with a written
explanation of (1) the terms and conditions of the normal form single-life
annuity and qualified joint and survivor annuity, (2) the
participant's right to elect a single-life annuity or an optional
form of payment under subsection (h) subject to his or her eligible
spouse's consent, if applicable, and (3) the participant's right to
reinstate coverage under the qualified joint and survivor annuity
prior to his or her annuity commencement date by revoking an election of an
optional form of payment under subsection (h).
(f) If a married participant with at least 1.5 years of
service dies prior to commencing retirement annuity payments and prior to
taking a refund under Section 15-154, his or her eligible spouse is entitled
to receive a pre-retirement survivor annuity, if there is not then in effect
a waiver of the pre-retirement survivor annuity. The pre-retirement survivor
annuity payable under this subsection shall be a monthly annuity payable for
the eligible spouse's life, commencing as of the beginning of the month next
following the later of the date of the participant's death or the date the
participant would have first met the eligibility requirements for retirement,
and continuing through the beginning of the month in which the death of the
eligible spouse occurs. The monthly amount payable to the spouse under the
pre-retirement survivor annuity shall be equal to the monthly
amount that would be payable as a survivor annuity under the qualified joint
and survivor annuity described in subsection (b) if: (1) in the case of a
participant who dies on or after the date on which the participant has
met the eligibility requirements for retirement, the participant had retired
with an immediate qualified joint and
survivor annuity on the day before the participant's date of death; or (2) in
the case of a participant who dies before the earliest date on
which the participant would have met the eligibility requirements for retirement age, the participant had separated from
service on the date of death, survived to the earliest retirement age based
on service prior to his or her death, retired with an immediate qualified
joint and survivor annuity at the earliest retirement age, and died on the day
after the day on which the participant would have attained the earliest
retirement age.
(g) A married participant who has not retired may elect at any time to
waive the pre-retirement survivor annuity described in subsection (f). Any
such election shall require the consent of the participant's eligible spouse
in the manner described in subsection (d). A waiver of the pre-retirement
survivor annuity shall increase the lump sum death benefit payable under
subsection (b) of Section 15-141. Prior to electing any waiver of the
pre-retirement survivor annuity, the participant shall be provided with a
written explanation of (1) the terms and conditions of the pre-retirement
survivor annuity and the death benefits payable from the system both with and
without the pre-retirement survivor annuity, (2) the participant's right to
elect a waiver of the pre-retirement survivor annuity coverage subject to his
or her spouse's consent, and (3) the participant's right to reinstate
pre-retirement survivor annuity coverage at any time by revoking a prior waiver
of such coverage.
(h) By filing a timely election with the system, a participant who will
be eligible to receive a retirement annuity under this Section may waive the
normal form of annuity payment described in subsection (b), subject to
obtaining the consent of his or her eligible spouse, if applicable, and elect
to receive any one of the following optional forms of payment:
(1) Joint and Survivor Annuity Options: The | ||
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(2) Single-Life Annuity Option (optional for married | ||
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(3) Lump sum retirement benefit. The participant may | ||
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All joint and survivor annuity forms shall be in an amount that is the actuarial
equivalent of the single-life annuity.
For the purposes of this Section, the term "contingent annuitant" means the
beneficiary who is designated by a participant at the time the participant
elects a joint and survivor annuity to receive the lifetime survivorship
annuity in the event the beneficiary survives the participant at the
participant's death.
(i) Under no circumstances may an option be elected, changed, or revoked
after the date the participant's retirement annuity commences.
(j) An election made pursuant to subsection (h)
shall become inoperative if the participant or the
contingent annuitant dies before the date the participant's annuity payments
commence, or if the eligible spouse's consent is required and not given.
(k) (Blank).
(l) The automatic annual increases described in subsection (d) of Section
15-136 shall apply to retirement benefits under the portable benefit package
and the automatic annual increases described in subsection (j) of Section
15-145 shall apply to survivor benefits under the portable benefit package.
(Source: P.A. 96-586, eff. 8-18-09; 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
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(40 ILCS 5/15-137) (from Ch. 108 1/2, par. 15-137)
Sec. 15-137.
Retirement annuities-Guarantees.
This Article shall not operate to deprive any participant of
eligibility for an annuity or to reduce the annuity to which a participant
would have been entitled under the provisions of "The 1941 Act," in effect
on June 30, 1955, if prior to June 30, 1955, the participant had met
the minimum requirements for an annuity, or was employed
by an employer on that date.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-138) (from Ch. 108 1/2, par. 15-138)
Sec. 15-138.
Retirement annuities-Reduction.
If a participant elects to have a reversionary annuity under this
Article, the retirement annuity otherwise payable shall be reduced by the
actuarial equivalent of the amount required to provide the reversionary
annuity.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
Sec. 15-139. Retirement annuities; cancellation; suspended during
employment. (a) If an annuitant returns to employment for an employer
within 60 days after the beginning of the retirement annuity payment
period, the retirement annuity shall be cancelled, and the annuitant shall
refund to the System the total amount of the retirement annuity payments
which he or she received. If the retirement annuity is cancelled, the
participant shall continue to participate in the System.
(b) If an annuitant retires prior to age 60 and receives or becomes
entitled to receive during any month compensation in excess of the monthly
retirement annuity (including any automatic annual increases) for services
performed after the date of retirement for any employer under this System, that
portion of the monthly
retirement annuity provided by employer contributions shall not be payable.
If an annuitant retires at age 60 or over and receives
or becomes entitled to receive during any academic year compensation in
excess of the difference between his or her highest annual earnings prior
to retirement and his or her annual retirement annuity computed under Rule
1, Rule 2, Rule 3, or Rule 4 of Section 15-136, or under Section
15-136.4,
for services performed after
the date of retirement for any employer under this System, that portion of
the monthly retirement annuity provided by employer contributions shall be
reduced by an amount equal to the compensation that exceeds such difference.
However, any remuneration received for serving as a member of the
Illinois Educational Labor Relations Board shall be excluded from
"compensation" for the purposes of this subsection (b), and serving as a
member of the Illinois Educational Labor Relations Board shall not be
deemed to be a return to employment for the purposes of this Section.
This provision applies without regard to whether service was terminated
prior to the effective date of this amendatory Act of 1991.
"Academic year", as used in this subsection (b), means the 12-month period beginning September 1. (c) If an employer certifies that an annuitant has been reemployed
on a permanent and continuous basis or in a position
in which the annuitant is expected to serve for at least 9 months, the
annuitant shall resume his or her status as a participating employee
and shall be entitled to all rights applicable to
participating employees upon filing with the board an
election to forgo all annuity payments during the period
of reemployment. Upon subsequent retirement, the retirement
annuity shall consist of the annuity which was terminated by the reemployment,
plus the additional retirement annuity based upon service
granted during the period of reemployment, but the combined retirement
annuity shall not exceed the maximum
annuity applicable on the date of the last retirement.
The total service and earnings credited before and after the initial
date of retirement shall be considered in determining eligibility of the
employee or the employee's beneficiary to benefits under this
Article, and in calculating final rate of earnings.
In determining the death benefit
payable to a beneficiary of an annuitant who again becomes a participating
employee under this Section, accumulated normal and additional
contributions shall be considered as the sum of the accumulated normal and
additional contributions at the date of initial retirement and the
accumulated normal and additional contributions credited after that date,
less the sum of the annuity payments received by the annuitant.
The survivors insurance benefits provided under Section 15-145 shall not
be applicable to an annuitant who resumes his or her status as a
participating employee, unless the annuitant, at the time of initial
retirement, has a survivors insurance beneficiary who could qualify
for such benefits or the annuitant repaid the survivors insurance contribution refund or additional annuity under subsection (c-5) of Section 15-154.
If the participant's employment is terminated because of circumstances
other than death before 9 months from the date of reemployment, the
provisions of this Section regarding resumption of status as a
participating employee shall not apply. The normal and survivors insurance
contributions which are deducted during this period shall be refunded to
the annuitant without interest, and subsequent benefits under this Article
shall be the same as those which were applicable prior to the date the
annuitant resumed employment.
The amendments made to this Section by this amendatory Act of the 91st
General Assembly apply without regard to whether the annuitant was in service
on or after the effective date of this amendatory Act.
(Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13; 99-682, eff. 7-29-16.)
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(40 ILCS 5/15-139.1) Sec. 15-139.1. Tier 2 member retirement annuities; suspended during employment. If a Tier 2 member is receiving a retirement annuity under this System and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, then the person's retirement annuity shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity shall resume and be recalculated if recalculation is provided for under this Article.
(Source: P.A. 98-92, eff. 7-16-13.) |
(40 ILCS 5/15-139.5) Sec. 15-139.5. Return to work by affected annuitant; notice and contribution by employer. (a) An employer who employs or re-employs a person receiving a retirement annuity from the System in an academic year beginning on or after August 1, 2013 must notify the System of that employment within 60 days after employing the annuitant. The notice must include a summary of the contract of employment or specify the rate of compensation and the anticipated length of employment of that annuitant. The notice must specify whether the annuitant will be compensated from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name. The notice must include the employer's determination of whether or not the annuitant is an "affected annuitant" as defined in subsection (b). The employer must also record, document, and certify to the System (i) the amount of compensation paid to the annuitant for employment during the academic year, and (ii) the amount of that compensation, if any, that comes from either federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name. As used in this Section, "academic year" means the 12-month period beginning September 1. For the purposes of this Section, an annuitant whose employment by an employer extends over more than one academic year shall be deemed to be re-employed by that employer in each of those academic years. The System may specify the time, form, and manner of providing the determinations, notifications, certifications, and documentation required under this Section. (b) A person receiving a retirement annuity from the System becomes an "affected annuitant" on the first day of the academic year following the academic year in which the annuitant first meets the following conditions: (1) (Blank). (2) While receiving a retirement annuity under this | ||
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(3) The annuitant received an annualized retirement | ||
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A person who becomes an affected annuitant remains an affected annuitant, except for (i) any period during which the person returns to active service and does not receive a retirement annuity from the System or (ii) any period on or after the effective date of this amendatory Act of the 100th General Assembly during which an annuitant received an annualized retirement annuity under this Article that is less than $10,000. (c) It is the obligation of the employer to determine whether an annuitant is an affected annuitant before employing the annuitant. For that purpose the employer may require the annuitant to disclose and document his or her relevant prior employment and earnings history. Failure of the employer to make this determination correctly and in a timely manner or to include this determination with the notification required under subsection (a) does not excuse the employer from making the contribution required under subsection (e). The System may assist the employer in determining whether a person is an affected annuitant. The System shall inform the employer if it discovers that the employer's determination is inconsistent with the employment and earnings information in the System's records. (d) Upon the request of an annuitant, the System shall certify to the annuitant or the employer the following information as reported by the employers, as that information is indicated in the records of the System: (i) the annuitant's highest annual earnings prior
to retirement, (ii) the compensation paid for that employment in each academic year, and (iii) whether any of that employment or compensation has been certified to the System as being paid from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name. The System shall only be required to certify information that is received from the employers. (e) In addition to the requirements of subsection (a), an employer who employs an affected annuitant must pay to the System an employer contribution in the amount and manner provided in this Section, unless the annuitant is compensated by that employer solely from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name. The employer contribution required under this Section for employment of an affected annuitant in an academic year shall be equal to 12 times the amount of the gross monthly retirement annuity payable to the annuitant for the month in which the first paid day of that employment in that academic year occurs, after any reduction in that annuity that may be imposed under subsection (b) of Section 15-139. If an affected annuitant is employed by more than one employer in an academic year, the employer contribution required under this Section shall be divided among those employers in proportion to their respective portions of the total compensation paid to the affected annuitant for that employment during that academic year. If the System determines that an employer, without reasonable justification, has failed to make the determination of affected annuitant status correctly and in a timely manner, or has failed to notify the System or to correctly document or certify to the System any of the information required by this Section, and that failure results in a delayed determination by the System that a contribution is payable under this Section, then the amount of that employer's contribution otherwise determined under this Section shall be doubled. The System shall deem a failure to correctly determine the annuitant's status to be justified if the employer establishes to the System's satisfaction that the employer, after due diligence, made an erroneous determination that the annuitant was not an affected annuitant due to reasonable reliance on false or misleading information provided by the annuitant or another employer, or an error in the annuitant's official employment or earnings records. (f) Whenever the System determines that an employer is liable for a contribution under this Section, it shall so notify the employer and certify the amount of the contribution. The employer may pay the required contribution without interest at any time within one year after receipt of the certification. If the employer fails to pay within that year, then interest shall be charged at a rate equal to the System's prescribed rate of interest, compounded annually from the 366th day after receipt of the certification from the System. Payment must be concluded within 2 years after receipt of the certification by the employer. If the employer fails to make complete payment, including applicable interest, within 2 years, then the System may, after giving notice to the employer, certify the delinquent amount to the State Comptroller, and the Comptroller shall thereupon deduct the certified delinquent amount from State funds payable to the employer and pay them instead to the System. (g) If an employer is required to make a contribution to the System as a result of employing an affected annuitant and the annuitant later elects to forgo his or her annuity in that same academic year pursuant to subsection (c) of Section 15-139, then the required contribution by the employer shall be waived, and if the contribution has already been paid, it shall be refunded to the employer without interest. (h) Notwithstanding any other provision of this Article, the employer contribution required under this Section shall not be included in the determination of any benefit under this Article or any other Article of this Code, regardless of whether the annuitant returns to active service, and is in addition to any other State or employer contribution required under this Article. (i) Notwithstanding any other provision of this Section to the contrary, if an employer employs an affected annuitant in order to continue critical operations in the event of either an employee's unforeseen illness, accident, or death or a catastrophic incident or disaster, then, for one and only one academic year, the employer is not required to pay the contribution set forth in this Section for that annuitant. The employer shall, however, immediately notify the System upon employing a person subject to this subsection (i). For the purposes of this subsection (i), "critical operations" means teaching services, medical services, student welfare services, and any other services that are critical to the mission of the employer.
(j) This Section shall be applied and coordinated with the regulatory obligations contained in the State Universities Civil Service Act. This Section shall not apply to an annuitant if the employer of that annuitant provides documentation to the System that (1) the annuitant is employed in a status appointment position, as that term is defined in 80 Ill. Adm. Code 250.80, and (2) due to obligations contained under the State Universities Civil Service Act, the employer does not have the ability to limit the earnings or duration of employment for the annuitant while employed in the status appointment position. (Source: P.A. 100-556, eff. 12-8-17.) |
(40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
Sec. 15-140.
Reversionary annuities.
A participant in the traditional
benefit package entitled to a retirement
annuity may, prior to retirement, elect to take a reduced retirement annuity
and provide with the actuarial value of the reduction, a reversionary annuity
to a dependent beneficiary, subject to the following conditions: (1) the
participant's written notice of election
to provide such annuity is received by the board at least 30 days before
the retirement annuity payment period begins, and (2) the amount of the
reversionary annuity is not less than $10 per month, and (3) the reversionary
annuity is payable only if the
participant dies after retirement.
The participant may revoke the election by
filing a written notice of revocation with the board. The beneficiary's
death prior to retirement of the participant shall constitute a
revocation of the election.
The amount of the reversionary annuity shall be that specified in the
participant's notice of election, but not more than the amount which when
added to the survivors annuity payable to the dependent beneficiary, would
equal the participant's reduced retirement annuity.
The participant shall specify in the notice of election whether the full
retirement annuity is to be resumed or the reduced retirement annuity is to
be continued, in the event the beneficiary predeceases the annuitant.
The reversionary annuity payment period shall begin on the day following
the annuitant's death. A
reversionary annuity shall not be payable if the beneficiary predeceases
the annuitant.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
Sec. 15-141. Death benefits - Death of participant.
(a) The beneficiary of a participant under the traditional benefit
package is entitled to a death benefit equal to the sum of (1) the employee's
accumulated normal and additional
contributions on the date of death, (2) the employee's accumulated
survivors insurance contributions on the date of death, if a survivors
insurance benefit is not payable, (3) an amount equal to the employee's
final rate of earnings, but not more than $5,000, if
(i) the beneficiary, under rules of the board, was dependent upon the
participant, (ii) the participant was a participating employee
immediately prior to his or her death, and (iii) a survivors insurance benefit
is not payable, and (4) $2,500 if (i) the beneficiary was not dependent
upon the participant, (ii) the participant was a participating employee
immediately prior to his or her death, and (iii) a survivors insurance benefit
is not payable.
(b) If the participant has elected to participate in the
portable benefit package and has completed the one-year waiting period
required under subsection (e) of Section 15-134.5, the death benefit
shall be equal to the employee's accumulated normal and additional
contributions on the date of death plus, if the employee died with 1.5 or more years of service for employment as defined in Section 15-113.1,
employer contributions in an amount equal to the sum of the accumulated normal
and additional contributions; except that if a pre-retirement survivor annuity
is payable under Section 15-136.4, the death benefit payable under this
paragraph shall be reduced, but to not less than zero, by the actuarial value
of the benefit payable to the surviving spouse. If the recipient of a
pre-retirement survivor annuity dies before an amount equal to all accumulated
normal and additional contributions as of the date of death have been paid out,
the remaining difference shall be paid to the member's beneficiary. The
primary beneficiary of the participant must be his or her spouse unless the
spouse has consented to the designation of another beneficiary in the manner
described in subsection (d) of Section 15-136.4.
(c) If payments are made under any State or federal workers'
compensation or occupational diseases law because of the death of an
employee, the portion of the death benefit payable from employer
contributions shall be reduced by the total amount of the payments.
(Source: P.A. 95-83, eff. 8-13-07.)
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(40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
Sec. 15-142.
Death benefits - Death of annuitant.
Upon the death of
an annuitant receiving a retirement annuity or disability retirement annuity,
the annuitant's beneficiary shall, if a survivor's insurance benefit is
not payable under Section 15-145 and an
annuity is not payable under Section 15-136.4, be entitled to a death benefit
equal to the greater of the following: (1) the excess, if any, of the sum of
the accumulated normal, survivors insurance, and additional contributions
as of the date of retirement or the date the disability retirement annuity
began, whichever is earlier, over the sum of all annuity payments made prior to
the date of death, or (2) $1,000.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
Sec. 15-143.
Death benefits - general provisions.
All death benefits
shall be paid as a single cash sum. A death benefit shall be paid as soon
as practicable after receipt by the board of (1) a written application by the
beneficiary and (2) such evidence of death and identification as the board
shall require.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
Sec. 15-144.
Beneficiary annuities.
This Section applies only to the
death benefits of persons who became participants before August 22, 1997
(the effective date of Public Act 90-511).
If a deceased participant has specified in a written notice on file with the
board prior to his or her death, or if the participant has not so specified,
but the beneficiary specifies in the application for the death benefit that the
benefit be paid as an annuity or as a designated cash payment plus an annuity,
it shall be paid in the manner thus specified, unless the annuity is less than
$10 per month, in which case the death benefit shall be paid in a single cash
sum. If the death benefit is paid as an annuity, the beneficiary may elect to
take an amount not in excess of $500 in a single cash sum. The annuity payable
to a beneficiary shall be the actuarial equivalent of the death benefit,
determined as of the participant's date of death, on the basis of the age of
the beneficiary at that time.
The beneficiary annuity payment period shall begin on the day following the
death of the deceased and shall terminate on the date of the beneficiary's
death. If the beneficiary may receive the death benefit in a single cash sum,
but elects to receive an annuity, he or she may, within one year after the
death of the participant or annuitant, revoke this election and receive in a
single cash sum the excess of the amount of the death benefit upon which the
annuity was based over the sum of the annuity payments received.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
Sec. 15-145. Survivors insurance benefits; conditions and amounts.
(a) The survivors insurance benefits provided under this Section shall
be payable to the eligible survivors of a Tier 1 member covered under the
traditional benefit package upon the death of (1) a participating employee
with at least 1 1/2 years of service, (2) a participant who terminated
employment with at least 10 years of service, and (3) an annuitant in receipt
of a retirement annuity or disability retirement annuity under this Article.
Service under the State Employees' Retirement System of Illinois, the
Teachers' Retirement System of the State of Illinois and the Public School
Teachers' Pension and Retirement Fund of Chicago shall be considered in
determining eligibility for survivors benefits under this Section.
If by law, a function of a governmental unit, as defined by Section 20-107,
is transferred in whole or in part to an employer, and an employee transfers
employment from this governmental unit to such employer within 6 months after
the transfer of this function, the service credits in the governmental unit's
retirement system which have been validated under Section 20-109 shall be
considered in determining eligibility for survivors benefits under this
Section.
(b) A surviving spouse of a deceased participant, or of a deceased
annuitant who did not take a refund or additional annuity consisting of
accumulated survivors insurance contributions or who repaid the refund or additional annuity, shall receive a survivors
annuity of 30% of the final rate of earnings. Payments shall begin on the
day following the participant's or annuitant's death or the date the surviving
spouse attains age 50, whichever is later, and continue until the death of the
surviving spouse. The annuity shall be payable to the surviving spouse prior
to attainment of age 50 if the surviving spouse has in his or her care a
deceased participant's or annuitant's dependent unmarried child under age 18
(under age 22 if a full-time student) who is eligible for a survivors annuity.
Remarriage of a surviving spouse prior to attainment of age 55 that occurs
before the effective date of this amendatory Act of the 91st General Assembly
shall disqualify him or her for the receipt of a survivors annuity until July
6, 2000.
A surviving spouse whose survivors annuity has been terminated due to
remarriage may apply for reinstatement of that
annuity. The reinstated annuity shall begin to accrue on July 6, 2000, except
that if, on July 6, 2000, the annuity is payable to an eligible surviving
child or parent, payment of the annuity to the surviving spouse shall not be
reinstated until the annuity is no longer payable to any eligible surviving
child or parent. The reinstated annuity shall include any one-time or annual
increases received prior to the date of termination, as well as any increases
that would otherwise have accrued from the date of termination to the date of
reinstatement.
An eligible surviving spouse whose expectation of receiving a survivors
annuity was lost due to remarriage before attainment of age 50 shall also be
entitled to reinstatement under this subsection, but the resulting survivors
annuity shall not begin to accrue sooner than upon the surviving spouse's
attainment of age 50.
The changes made to this subsection by this amendatory Act of the 92nd
General Assembly (pertaining to remarriage prior to age 55 or 50) apply without
regard to whether the deceased participant or annuitant was in service on or
after the effective date of this amendatory Act.
(c) Each dependent unmarried child under age 18 (under age 22 if a
full-time student) of a deceased participant, or of a deceased annuitant who
did not take a refund or additional annuity consisting of accumulated survivors
insurance contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity equal to the sum of (1) 20% of the final rate
of earnings, and (2) 10% of the final rate of earnings divided by the number of
children entitled to this benefit. Payments shall begin on the day following
the participant's or annuitant's death and continue until the child marries,
dies, or attains age 18 (age 22 if a full-time student). If the child
is in the care of a surviving spouse who is eligible for survivors insurance
benefits, the child's benefit shall be paid to the surviving spouse.
Each unmarried child over age 18 of a deceased participant or of a deceased
annuitant who had a survivor's insurance beneficiary at the time of his or her
retirement, and who was dependent upon the participant or annuitant by reason
of a physical or mental disability which began prior to the date the child
attained age 18, shall receive a survivor's
annuity equal to the
sum of (1) 20% of the final rate of earnings, and (2) 10% of the final rate
of earnings divided by the number of children entitled to survivors
benefits. Payments shall begin on the day following the participant's or
annuitant's death and continue until the child marries, dies, or is no
longer disabled. If the child is in the care of a surviving spouse who is
eligible for survivors insurance benefits, the child's benefit may be paid
to the surviving spouse. For the purposes of this Section, disability
means inability to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment that can be
expected to result in death or that has lasted or can be expected to last
for a continuous period of at least one year.
(d) Each dependent parent of a deceased participant, or of a deceased
annuitant who did not take a refund or additional annuity consisting of
accumulated survivors insurance contributions or who repaid the refund or additional annuity, shall receive a survivors
annuity equal to the sum of (1) 20% of
final rate of earnings, and (2) 10% of final rate of earnings divided by the
number of parents who qualify for the benefit. Payments shall begin when the
parent reaches age 55 or the day following the participant's or annuitant's
death, whichever is later, and continue until the parent dies. Remarriage of
a parent prior to attainment of age 55 shall disqualify the parent for the
receipt of a survivors annuity.
(e) In addition to the survivors annuity provided above, each
survivors insurance beneficiary shall, upon death of the participant or
annuitant, receive a lump sum payment of $1,000 divided by the number
of such beneficiaries.
(f) The changes made in this Section by Public Act 81-712 pertaining
to survivors annuities in cases of remarriage prior to age 55
shall apply to each survivors insurance beneficiary who
remarries after June 30, 1979, regardless of the date that the
participant or annuitant terminated his employment or died.
The change made to this Section by this amendatory Act of the 91st General
Assembly, pertaining to remarriage prior to age 55, applies without regard to
whether the deceased participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General Assembly.
(g) On January 1, 1981, any person who was receiving
a survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each full year which
has elapsed from the date the annuity began. On January 1, 1982, any
survivor whose annuity began after January 1, 1971, but before January 1,
1981, shall have the survivor's annuity then being paid increased by 1% for
each year which has elapsed from the date the survivor's annuity began.
On January 1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's annuity
increased by $1 for each full year which has elapsed since the date the
survivor's annuity began.
(h) If the sum of the lump sum and total monthly survivor benefits
payable under this Section upon the death of a participant amounts to less
than the sum of the death benefits payable under items (2) and (3) of
Section 15-141, the difference shall be paid in a lump sum to the
beneficiary of the participant who is living on the date that this
additional amount becomes payable.
(i) If the sum of the lump sum and total monthly survivor benefits payable
under this Section upon the death of an annuitant receiving a retirement
annuity or disability retirement annuity amounts to less than the death
benefit payable under Section 15-142, the difference shall be paid to the
beneficiary of the annuitant who is living on the date that this
additional amount becomes payable.
(j) Effective on the later of (1) January 1, 1990, or (2) the
January 1 on or next after the date on which the survivor annuity begins,
if the deceased member died while receiving a retirement annuity, or in all
other cases the January 1 nearest the first
anniversary of the date the survivor annuity payments begin, every survivors
insurance beneficiary shall receive an increase in
his or her monthly survivors annuity of 3%. On each January 1 after the
initial increase, the monthly survivors annuity shall be increased by 3% of
the total survivors annuity provided under this Article, including previous
increases provided by this subsection. Such increases shall apply to the
survivors insurance beneficiaries of each participant and annuitant,
whether or not the employment status of the participant or annuitant
terminates before the effective date of this amendatory Act of 1990. This
subsection (j) also applies to persons receiving a survivor annuity
under the portable benefit package.
(k) If the Internal Revenue Code of 1986, as amended, requires that the
survivors benefits be payable at an age earlier than that specified in this
Section the benefits shall begin at the earlier age, in which event, the
survivor's beneficiary shall be entitled only to that amount which is equal
to the actuarial equivalent of the benefits provided by this Section.
(l) The changes made to this Section and Section 15-131 by this amendatory
Act of 1997, relating to benefits for certain unmarried children who are
full-time students under age 22, apply without regard to whether the deceased
member was in service on or after the effective date of this amendatory Act
of 1997. These changes do not authorize the repayment of a refund or a
re-election of benefits, and any benefit or increase in benefits resulting
from these changes is not payable retroactively for any period before the
effective date of this amendatory Act of 1997.
(Source: P.A. 101-321, eff. 8-9-19.)
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(40 ILCS 5/15-145.1) Sec. 15-145.1. Survivor's insurance annuities and lump sum payments for Tier 2 Members; amount. Survivor eligibility, vesting, and conditions for a survivor's insurance annuity and lump sum payment amount payable to a survivor's insurance beneficiary of a deceased Tier 2 member shall be determined under the provisions of this Article applicable to survivor's insurance beneficiaries of a deceased Tier 1 member; however, the amount of a survivor's insurance annuity, including the annual increases thereon, shall be calculated pursuant to this Section. The initial survivor's insurance annuity of a survivors insurance beneficiary of a Tier 2 annuitant shall be in the amount of 66 2/3% of the Tier 2 member's retirement annuity at the date of death. In the case of the death of a Tier 2 member who has not retired, eligibility for a survivor's insurance benefit shall be determined by the applicable Section of this Article. The initial benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A survivor's insurance annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased Tier 2 member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the benefit. Each annual increase shall be calculated at 3% or one half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's insurance annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the survivor's insurance annuity shall not be increased. A beneficiary of a Tier 2 member who elects the Portable Benefit Package provided under this Article shall not be eligible for the survivor's insurance annuity that is provided under this Section. If 2 or more persons are eligible to receive survivor's insurance annuities as provided under this Section based on the same deceased Tier 2 member, the calculation of the survivor's insurance annuities shall be based on the total calculation of the survivor's insurance annuity and divided pro rata. The changes made to this Section by this amendatory Act of the 98th General Assembly are a clarification of existing law and are intended to be retroactive to the effective date of Public Act 96-889, notwithstanding the provisions of Section 1-103.1 of this Code.
(Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.) |
(40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
Sec. 15-146. Survivors insurance benefits - Minimum amounts.
(a) The minimum total survivors annuity payable on account of the
death of a participant shall be 50% of the retirement annuity which
would have been provided under Rule 1, Rule 2, or Rule 3 of
Section 15-136 upon the participant's attainment of the minimum
age at which the penalty for early retirement would not be applicable or
the date of the participant's death, whichever is later, on the basis of
credits earned prior to the time of death.
(b) The minimum total survivors annuity payable on account of the death
of an annuitant shall be 50% of the retirement annuity which is payable
under Section 15-136 at the time of death or 50% of the disability retirement
annuity payable under Section 15-153.2. This
minimum survivors annuity shall apply to each participant and
annuitant who dies after September 16, 1979, whether or not
his or her employee status terminates before or after that date.
(c) If an annuitant has elected a reversionary annuity, the retirement
annuity referred to in this Section is that which would have been payable
had such election not been filed.
(d) Beginning January 1, 2002, any person who is receiving a survivors
annuity under this Article which, after inclusion of all one-time and automatic
annual increases to which the person is entitled, is less than the sum of
$17.50 for each year (up to a maximum of 30 years) of the deceased member's
service credit, shall be entitled to a monthly supplemental payment equal to
the difference.
If 2 or more persons are receiving survivors annuities based on the same
deceased member, the calculation of the supplemental payment under this
subsection shall be based on the total of those annuities and divided pro
rata. The supplemental payment is not subject to any limitation on the
maximum amount of the annuity and shall not be included in the calculation
of any automatic annual increase under Section 15-145.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1)
Sec. 15-146.1. Survivors insurance benefits-Maximum amounts.
(a) The
maximum total survivors annuity payable on account of any deceased
participating
employee shall be the lesser of: (1) 80% of the final rate of earnings;
or (2) (A) $400 per month if one survivors insurance beneficiary is entitled
to a survivors annuity, or (B) $600 per month if there are 2 or more such
beneficiaries.
(b) The maximum total survivors annuity payable on account of the death
of any person occurring after retirement or after termination of his or
her employee status shall be the lesser of: (1) 80% of the final rate of
earnings; (2) (A) $400 per month if one survivors insurance beneficiary
is entitled to a survivors annuity, or (B) $600 per month if there are 2
or more such beneficiaries; or (3) 80% of the retirement annuity payable
to the annuitant at the date of retirement under the provisions of Rule
1, Rule 2, or Rule 3 of Section 15-136, or 80% of the
retirement annuity
which would have been payable to the participant upon attainment of the
minimum age at which the penalty for early retirement would not be applicable
or the date of death, whichever is later, based upon credits earned as of
the date of death.
(c) The maximum total survivors annuity payable on account of the death
of any person whose death occurs while in receipt of a disability retirement
annuity under Section 15-153.2 shall be the lesser of (1) 80% of his or
her final rate of earnings, (2) (A) $400 per month if one survivors insurance
beneficiary is entitled to a survivors annuity, or (B) $600 per month if
2 or more survivors insurance beneficiaries qualify for this benefit, or
(3) 80% of the retirement annuity which would have been payable upon attainment
of the age at which the penalty for early retirement would not be applicable
or the date of death, whichever is later, based upon the participant's credits
on the date of death, or 80% of the disability retirement annuity whichever is greater.
(d) If the minimum annuity provided under Section 15-146 exceeds the maximum
annuity provided under this Section, the minimum annuity shall be payable.
(e) If an annuitant has elected a reversionary annuity, the retirement
annuity referred to in this Section is that which would have been payable
had such election not been filed.
(f) If a survivors insurance beneficiary qualifies for a survivors or
widows annuity because of pension credits established by the participant
or annuitant in another system covered by Article 20, and the combined survivors
annuities exceed the highest survivors annuity which could be provided by
either system based upon the combined pension credits, the survivors annuity
payable by this system shall be reduced to that amount which, when added
to the survivors annuity payable by the other system, would equal this highest
survivors annuity. If the other system has a similar provision for adjustment
of the survivors annuity, the respective proportional survivors annuities
shall be reduced proportionately according to the ratio which the amount
of each proportional survivors annuity bears to the aggregate of all proportional
survivors annuities. If a survivors annuity is payable by another system
covered by Article 20, and the survivor elects to waive the survivors annuity
and accept a lump sum payment or death benefit in lieu of the survivors
annuity, this system shall, for the purpose of adjusting the survivors annuity
under this subsection, assume that the survivor was entitled to a survivors
annuity which, in accordance with actuarial tables of this system, is the
actuarial equivalent of the amount of the lump sum payment or death benefit.
(g) The total monthly survivors annuity payable to the beneficiaries of
any annuitant who terminated employment before July 14, 1959 and whose death
occurs after September 16, 1977 shall not exceed $200.
(h) Whenever a reduction in the survivors annuity is made as
authorized above, the survivors annuity to each dependent parent shall be
proportionately reduced or eliminated, and if further reduction is
necessary, the survivors annuity payable to every other person shall be
proportionately decreased.
(i) This Section applies to the survivors insurance benefits provided to the eligible survivors of a Tier 1 member. (Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-147) (from Ch. 108 1/2, par. 15-147)
Sec. 15-147.
Survivors insurance benefits-Dependency conditions.
A child is deemed dependent upon his or her natural or adopting
father or mother if the child is living with or receiving support
from such parent. If the child is not living with or receiving support from
such parent, he or she is deemed dependent upon that parent
if the child (1) has not been adopted
by some other individual, and (2) is not living with or receiving more than
1/2 support from his or her stepparent.
A child is deemed dependent upon his or her stepfather or stepmother if the
child is living with or receiving at least 1/2 support
from the stepparent.
A parent is considered dependent if receiving at least 1/2 of his
or her support from the participant or annuitant at the time of the death of the
participant or annuitant.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
Sec. 15-148.
Survivors insurance benefits - General provisions.
The survivors annuity is payable monthly. Any annuity due but unpaid upon
the death of the annuitant, shall be paid to the annuitant's estate.
A person who becomes entitled to more than one survivors insurance benefit
because of the death of 2 or more persons shall receive only the largest of the
benefits; except that this limitation does not apply to a survivors insurance
beneficiary who is entitled to a survivor's annuity by reason of a mental or
physical disability.
A survivors insurance beneficiary or the personal representative of the
estate of a deceased survivors insurance beneficiary or the personal
representative of a survivors insurance beneficiary who is under a legal
disability may waive the right to receive survivorship benefits, provided
written notice of the waiver is given by the beneficiary or representative to
the board within 6 months after the death of the participant or annuitant and
before any payment is made pursuant to an application filed by such person.
(Source: P.A. 92-424, eff. 8-17-01.)
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(40 ILCS 5/15-149) (from Ch. 108 1/2, par. 15-149)
Sec. 15-149.
Determination of family status.
Subject to the definitions contained in Sections 15-127 to 15-130,
inclusive, in determining whether an applicant for
a benefit under this Article is the surviving spouse, child, or parent
of a participant
or annuitant, the board shall apply such law as would be applied by the
courts of this State in determining the devolution of intestate property.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-150) (from Ch. 108 1/2, par. 15-150)
Sec. 15-150. Disability benefits; eligibility. A participant may
be granted a disability benefit if: (1) while a
participating employee, he or she becomes physically or mentally
incapacitated and unable to perform the duties of his or her assigned
position for any period exceeding 60 days; and (2) the employee had completed
2 years of service at the time of disability, unless the disability is a result
of an accident or the employee is a police officer who qualifies for the calculation under subsection (b) of Section 15-153.
An employee shall be considered disabled only during the period for which
the board determines, based upon the evidence listed below, that the employee is unable
to reasonably perform the duties of his or her assigned position as a result
of a physical or mental disability. This determination shall be based upon:
(i) a written certificate from one or more licensed | ||
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(ii) a written certificate from the employer stating | ||
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(iii) any other medical examinations, hospital | ||
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(iv) if the employee is a police officer applying | ||
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The board shall prescribe rules governing the filing, investigation,
control, and supervision of disability claims.
Costs incurred by a claimant in connection with completing a claim for
disability benefits shall be paid (A) by the claimant, in the case of the one
required medical examination, medical certificate, and employer's certificate
and any other requirements generally imposed by the board on all disability
benefit claimants; and (B) by the System, in the case of any additional medical
examination or other additional requirement imposed on a particular claimant
that is not imposed generally on all disability benefit claimants.
Pregnancy and childbirth shall be considered a disability.
The same application shall be used to determine eligibility for the calculation of disability benefits under subsection (a) or subsection (b) of Section 15-153. (Source: P.A. 103-80, eff. 6-9-23.)
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(40 ILCS 5/15-151) (from Ch. 108 1/2, par. 15-151)
Sec. 15-151.
Disability benefits - commencement.
Disability benefits shall begin to accrue upon the termination of the
payment of salary or sick leave benefits or the 61st day
after the occurrence of the disability, whichever is later.
However, no benefits
shall be payable covering a period of more than 30 days prior to the
receipt of a written application unless the board finds good cause
for the delay in filing the application. The recurrence within 30 days of a
former disability shall be considered a continuation of the disability. If
a disabled participant returns to his or her assigned position and within 30 days
again becomes disabled from the same cause, the previous period of
disability shall be considered in determining the date benefits may begin,
and the amount of the benefit shall be based upon the basic compensation on
the date the participant first became disabled from this cause.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-152) (from Ch. 108 1/2, par. 15-152)
Sec. 15-152. Disability benefits - Duration. Disability benefits shall be discontinued when the earliest of the following
occurs: (1) when disability ceases, (2) upon refusal
of the participant to submit to a reasonable physical
examination by a physician approved by the board, (3) upon refusal of
the participant to accept any position, assigned in good faith by an
employer, the duties of which could reasonably be performed by the participant
and the earnings of which would be at least equal to the disability benefit
payable under this Article, (4) upon September 1,
following the participant's 70th birthday,
if the disability benefit commenced prior to attainment of age 65, (5)
the end of the month following the fifth anniversary of the
date disability benefits commenced, if such benefits began after the
attainment of age 65, (6) when the total disability
benefits paid equal 50% of the participant's
total earnings for the entire period of
employment for which service has been granted prior to the date
disability benefits began to accrue, or (7) upon failure of the participant to provide an earnings verification necessary to determine continuance of benefits. If the disability was caused by
an on-the-job accident, and the participant is granted workers'
compensation or occupational disease payments from the employer or the
State of Illinois, the limitation in clause (6) shall not be applicable.
Service and earnings credits under the State Employees' Retirement
System of Illinois and the Teachers' Retirement System of the State of
Illinois shall be considered in determining the employee's eligibility
for, and the duration of disability benefits.
If, by law, a function of a governmental unit, as
defined by Section 20-107 is transferred in whole or in
part to an employer and an employee transfers employment from the
governmental unit to such employer within 6 months after the transfer of
this function, the pension credits in the governmental unit's retirement
system which have been validated under
Section 20-109, shall be treated the same as pension credits in this Section
in determining an employee's eligibility
for, and the duration of disability benefits.
(Source: P.A. 100-556, eff. 12-8-17.)
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(40 ILCS 5/15-153) (from Ch. 108 1/2, par. 15-153)
Sec. 15-153. Disability benefits; amount. (a) Except as provided in subsection (b), the disability benefit shall
be the greater of (1) 50% of the basic compensation which would have been paid
had the participant continued in service for the entire period during which
disability benefits are payable, excluding wage or salary increases subsequent
to the date of disability or extra prospective earnings on a summer teaching
contract or other extra service not yet entered upon or (2) 50% of the
participant's average earnings during the 24 months immediately preceding the
month in which disability occurs. In determining the disability benefit, the
basic compensation of a participating employee on leave of absence or on
lay-off status shall be assumed to be equal to his or her basic compensation
on the date the leave of absence or lay-off begins.
(b) In lieu of the amount of the disability benefit otherwise provided for in subsection (a) of this Section, for a participant who is employed as a police officer and who incurs a line of duty disability, the disability benefit under this Section shall be the greater of: (1) 65% of the basic compensation that would have been paid had the participant continued in employment for the entire period during which disability benefits are payable, excluding wage or salary increases subsequent to the date of disability; or (2) 65% of the participant's average earnings during the 24 months immediately preceding the month in which disability occurs. In determining the disability benefit, the basic compensation of a participating employee on leave of absence or on lay-off status shall be assumed to be equal to his or her basic compensation on the date the leave of absence or lay-off begins. Any police officer who suffers a heart attack or stroke as a result of the performance and discharge of police duty shall be considered to have been injured in the performance of an act of duty and shall be eligible for the calculation of benefits provided for under this subsection (b). A police officer shall be considered to be in the performance of an act of duty while on any assignment approved by the police officer's chief, whether the assignment is on or off the employer's property. The changes made to this Section shall apply to participants whose line of duty disability occurred on or after January 1, 2022. For the purposes of this Section, "line of duty disability" means that, as the result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty, the police officer is found to be physically or mentally disabled for employment as a police officer so as to render necessary his or her suspension or retirement from employment as a police officer or is found to be unable to perform his or her duties as a police officer by reason of heart disease, stroke, tuberculosis, or any disease of the lungs or respiratory tract, resulting from employment as a police officer. If the disability benefit is 50% of basic compensation under subsection (a) or 65% of basic compensation under subsection (b), payments during the
academic year shall accrue over the period that the basic
compensation would have been paid had the participant continued in
service. If the disability benefit is 50% under subsection (a) or 65% under subsection (b) of the average earnings of the
participant during the 24 months immediately preceding the month in
which disability occurs, payments during the year shall accrue
over a period of 12 months. Disability benefits shall be paid as of the
end of each calendar month during which payments accrue. Payments for
fractional parts of a month shall be determined by prorating the total
amount payable for the full month on the basis of days elapsing during
the month. Any disability benefit accrued but unpaid on the death of
a participant shall be paid to the participant's beneficiary.
(Source: P.A. 103-80, eff. 6-9-23.)
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(40 ILCS 5/15-153.1) (from Ch. 108 1/2, par. 15-153.1)
Sec. 15-153.1.
Disability benefits - Reduction.
(a) If a participant
receiving disability benefits under this Article earns compensation from
any source for personal or professional services in excess of the amount
of the disability benefit, the disability benefit shall be reduced by the
excess of the earnings over the benefit.
(b) If a participant receiving disability benefits under this Article
receives disability income under an insurance contract financed wholly or
partially by the employer, the disability benefit shall be reduced by the
amount so received.
(c) In determining the monthly benefits payable under this Article, a
deduction shall be made equivalent to any benefits payable to any employee
under any State or Federal Worker's Compensation or Occupational Diseases
Acts for any period for which disability benefits are payable. However,
no deduction shall be made in the case of payment for medical, surgical
and hospital services and artificial members or appliances, fixed statutory
payments for the loss of any bodily member, or the permanent and complete
loss of use of 100% of any bodily member, payments for the loss of industrial
vision or redemption awards payable prior to the date monthly disability
benefits first become payable. If the benefits deductible under this paragraph
are stated as a specified amount per week for a designated calendar period,
then the monthly amounts shall, for purposes of this Section, be 4 1/3 times
such weekly amount.
For any calendar month during which the amount of benefits deductible when
thus computed on the monthly basis exceeds the amount of the monthly benefit
otherwise payable under this Article for that month, no monthly disability
benefit shall be payable under this Article. For any calendar month in
which the amount of benefits deductible when computed on a monthly basis
is less than the monthly disability benefit payable for that month, such
lesser amount shall be deducted from the monthly disability benefit payable
for that month. Lump sum awards provided for the payment in advance of
workers' compensation benefits which are definitely allocable to specific
weeks in a calendar period shall be deducted on the same basis as if the
award had been payable on a weekly basis.
If such workers' compensation is not allocable to any specific calendar
period, including redemption awards payable subsequent to the date monthly
disability benefits first become payable, an equivalent monthly amount of
such awards shall be computed for the purposes of this Section as 4 1/3
times the amount of the weekly workers' compensation benefit provided by
the applicable statute for the participant and his or her dependents. The
total workers' compensation awards shall be divided by such computed equivalent
monthly amounts to determine the number of months and fractions of months
during which monthly disability benefits shall be reduced.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
Sec. 15-153.2. Disability retirement annuity. (a) This subsection (a) applies to a participant receiving benefits calculated under subsection (a) of Section 15-153. A participant whose
disability benefits are discontinued under the provisions of clause (6) of
Section 15-152 and who is not a participant in the optional retirement plan
established under Section 15-158.2 is entitled to a disability
retirement annuity of 35% of the basic compensation which was payable to the
participant at the time that disability began, provided that the board determines that the participant has a medically determinable physical or
mental impairment that prevents him or her from
engaging in any substantial gainful activity, and which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months.
(b) This subsection (b) applies to a participant receiving benefits calculated under subsection (b) of Section 15-153. A participant whose disability benefits are discontinued under clause (6) of Section 15-152 and who is not a participant in the optional retirement plan established under Section 15-158.2 is entitled to a disability retirement annuity of 65% of the basic compensation that was payable to the participant at the time that disability began, provided that the board determines that the participant has a medically determinable physical or mental impairment that prevents him or her from engaging in any substantial gainful activity and can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months. (c) The board's determination of whether a participant is disabled shall be
based upon:
(i) a written certificate from one or more licensed | ||
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(ii) any other medical examinations, hospital | ||
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The terms "medically determinable physical or mental impairment" and
"substantial gainful activity" shall have the meanings ascribed to them in the
federal Social Security Act, as now or hereafter amended, and the
regulations issued thereunder.
(d) The disability retirement annuity payment period shall begin immediately
following the expiration of the disability benefit payments under clause
(6) of Section 15-152 and shall be discontinued for a recipient of a disability retirement annuity when (1) the physical or
mental impairment no longer prevents the recipient from engaging in any
substantial gainful activity, (2) the recipient dies, (3) the recipient
elects to receive a retirement annuity under Sections 15-135 and 15-136, (4) the recipient refuses to submit to a reasonable physical examination by a physician approved by the board, or (5) the recipient fails to provide an earnings verification necessary to determine continuance of benefits.
If a person's disability retirement annuity is discontinued under clause
(1), all rights and credits accrued in the system on the date that the
disability retirement annuity began shall be restored, and the disability
retirement annuity paid shall be considered as disability payments under
clause (6) of Section 15-152.
(e) The board shall adopt rules governing the filing, investigation, control, and supervision of disability retirement annuity claims. Costs incurred by a claimant in connection with completing a claim for a disability retirement annuity shall be paid: (A) by the claimant in the case of the one required medical examination, medical certificate, and any other requirements generally imposed by the board on all disability retirement annuity claimants; and (B) by the System in the case of any additional medical examination or other additional requirement imposed on a particular claimant that is not imposed generally on all disability retirement annuity claimants.(Source: P.A. 103-80, eff. 6-9-23.)
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(40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
Sec. 15-153.3.
Automatic increase in disability benefit.
Each disability
benefit payable under Section 15-150 and calculated under Section 15-153 or
15-153.2 that has not yet received an initial increase under this Section
shall be increased by 0.25% of the monthly disability benefit multiplied by
the number of full months that have elapsed since the benefit began on January 1, 2002 or
the January 1 next following the
granting of the benefit, whichever occurs later.
On each January 1 following the initial increase under this
Section, the disability benefit shall be increased by 3% of the current
amount of the benefit, including prior increases under this Article.
The changes made to this Section by this amendatory Act of the 92nd
General Assembly apply without regard to whether the benefit recipient
was in service on or after the effective date of this amendatory Act.
(Source: P.A. 92-749, eff. 8-2-02.)
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(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
Sec. 15-154. Refunds.
(a) A participant whose status as an employee is terminated, regardless of
cause, or who has been on lay off status for more than 120 days, and who is not
on leave of absence, is entitled to a refund of contributions upon application;
except that not more than one such refund application may be made during any
academic year.
Except as set forth in subsections (a-1) and (a-2), the refund shall
be the sum of the accumulated normal, additional, and survivors insurance
contributions, plus the entire contribution made by the participant under
Section 15-113.3, less the amount of interest credited on these contributions
each year in excess of 4 1/2% of the amount on which interest was calculated.
(a-1) A person who elects, in accordance with the requirements of Section
15-134.5, to participate in the portable benefit package and who becomes a
participating employee under that retirement program upon the conclusion of
the one-year waiting period applicable to the portable benefit package election
shall have his or her refund calculated in accordance with the provisions of
subsection (a-2).
(a-2) The refund payable to a participant described in subsection (a-1)
shall be the sum of the participant's accumulated normal and additional
contributions, as defined in Sections 15-116 and 15-117, plus the entire
contribution made by the participant under Section 15-113.3. If the
participant terminates with 5 or more years of service for employment as
defined in Section 15-113.1, he or she shall also be entitled to a distribution
of employer contributions in an amount equal to the sum of the accumulated
normal and additional contributions, as defined in Sections 15-116 and 15-117.
(b) Upon acceptance of a refund, the participant forfeits all
accrued rights and credits in the System, and if subsequently reemployed, the
participant shall be considered a new employee subject to all the qualifying
conditions for participation and eligibility for benefits applicable to new
employees. If such person again becomes a participating employee and continues
as such for 2 years, or is employed by an employer and participates for at
least 2 years in the Federal Civil Service Retirement System, all such rights,
credits, and previous status as a participant shall be restored upon repayment
of the amount of the refund, together with compound interest thereon from the
date the refund was issued to the date of repayment at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date.
When a participant in the portable benefit package who received a refund
which included a distribution of employer contributions repays a refund
pursuant to this Section, one-half of the amount repaid shall be deemed the
member's reinstated accumulated normal and additional contributions and the
other half shall be allocated as an employer contribution to the System,
except that any amount repaid for previously purchased military service
credit under Section 15-113.3 shall be accounted for as such.
(c) Except as otherwise provided under subsection (c-5), if a participant covered under the traditional
benefit package has made survivors insurance contributions, but has no
survivors insurance beneficiary upon retirement, he or she shall be entitled
to elect a refund of the accumulated survivors insurance contributions, or to
elect an additional annuity the value of which is equal to the accumulated
survivors insurance contributions. This election must be made prior to the
date the person's retirement annuity is approved by the System.
(c-5) Notwithstanding subsection (c), an annuitant who retired prior to June 1, 2011 and made the election under subsection (c), and who thereafter became, and remains, either: (1) a party to a civil union or a party to a legal | ||
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(2) a party to a marriage under the Illinois | ||
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(3) a party to a marriage, civil union or other legal | ||
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may make a one-time, irrevocable election to repay the refund or additional annuity payments received under subsection (c), together with compound interest thereon at the actuarially assumed rate of return from the date the refund was issued or the date each additional annuity payment was issued to the date of repayment. The annuitant shall submit proof of party status for item (1), (2), or (3) in the form of a valid marriage certificate or a civil union certificate with any additional requirements the Board prescribes by rulemaking. The election must be received by the System (i) within a period of one year beginning 5 months after the effective date of this amendatory Act of the 99th General Assembly and (ii) prior to the date of death of the annuitant. To the extent permitted under the Internal Revenue Code of 1986, as amended, the full repayment shall be made within a period beginning on the date of the election and ending on the earlier of the 24th month thereafter or the date of the annuitant's death. If an annuitant fails to make the repayment within the required period, any payments made shall be returned, without interest, to the annuitant (or to the annuitant's estate if the payments ceased due to death), and survivors insurance benefits under Section 15-145 shall not be payable upon the annuitant's death. Upon such repayment, all forfeited survivors insurance benefit rights and credits under Section 15-145 shall be restored. This repayment right shall not alter or modify any eligibility requirement for survivors insurance beneficiaries under this Article applicable upon the annuitant's death. The repayment shall be irrevocable. No person shall have a claim or right to the repaid amounts in a manner not otherwise provided for under this Article in the event that: the marriage, civil union, or other legal relationship described in this subsection is dissolved, annulled, or declared invalid by a court of competent jurisdiction; or the other party to the marriage, civil union, or other legal relationship predeceases the annuitant or otherwise fails to qualify as a survivors insurance beneficiary upon the annuitant's death. For purposes of this subsection (c-5), the term "annuitant" shall include an annuitant who resumed his or her status as a participating employee under Section 15-139(c). (d) A participant, upon application, is entitled to a refund of his
or her accumulated additional contributions attributable to the additional
contributions described in the last sentence of subsection (c) of Section
15-157. Upon the acceptance of such a refund of accumulated additional
contributions, the participant forfeits all rights and credits which may
have accrued because of such contributions.
(e) A participant who terminates his or her employee status and elects to
waive service credit under Section 15-154.2, is entitled to a refund of the
accumulated normal, additional and survivors insurance contributions, if any,
which were credited the participant for this service, or to an additional
annuity the value of which is equal to the accumulated normal, additional and
survivors insurance contributions, if any; except that not more than one such
refund application may be made during any academic year. Upon acceptance of
this refund, the participant forfeits all rights and credits accrued because
of this service.
(f) If a police officer or firefighter receives a retirement annuity
under Rule 1 or 3 of Section 15-136, he or she shall be entitled at
retirement to a refund of the difference between his or her accumulated
normal contributions and the normal contributions which would have
accumulated had such person filed a waiver of the retirement formula
provided by Rule 4 of Section 15-136.
(g) If, at the time of retirement, a participant would be entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of Section 15-136, or under
Section 15-136.4, that exceeds
the maximum specified in clause (1) of subsection (c) of Section 15-136, he
or she shall be entitled to a refund of the employee contributions, if any,
paid under Section 15-157 after the date upon which continuance of such
contributions would have otherwise caused the retirement annuity to exceed
this maximum, plus compound interest at the effective rates.
(Source: P.A. 99-450, eff. 8-24-15; 99-682, eff. 7-29-16.)
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(40 ILCS 5/15-154.1) (from Ch. 108 1/2, par. 15-154.1)
Sec. 15-154.1.
Maximum benefits.
The combined retirement annuity, survivors insurance,
death benefits, or disability benefits under this system and any other
system which is, has been, or may be financed fully or in part by
contributions from any alumni association, foundation or athletic
association affiliated with the universities included as
employers, shall not exceed the largest benefit which could be payable
by this system
or such other system based upon the participant's combined service and
earnings credits.
If the combined benefits exceed the largest benefit as determined
in accordance with this Section, the benefits payable by this system shall
be reduced to that amount which, when added to the benefits payable under
such other system, equals this largest benefit.
If benefits are reduced, this system
shall pay to the alumni association, foundation or athletic association
which financed such other system, that fraction of the reduction, the
numerator of which is the amount of the benefits payable by the other
system prior to the adjustment and the denominator of which is the amount
of the combined benefits which would have been payable prior to the
adjustment. In determining the adjustment of the survivors insurance or
death benefit made under this Section, the benefits payable
under this system and the other systems shall be reduced to common
actuarial equivalents in accordance with the mortality, interest, and
annuity tables adopted by the board and the method of payment required by
this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-154.2) (from Ch. 108 1/2, par. 15-154.2)
Sec. 15-154.2.
Waiver of service and benefits.
A participant or annuitant
may elect to waive all or any portion of his or her service credit and benefits
which may be payable under this Article; however, service purchased under
the provisions of subsection (c) of Section 15-113.1, subsections (b), (c)
and (d) of Section 15-113.5,
Section 15-113.6, and Section 15-113.7 must be waived before other service
which is granted under this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by appropriations of
amounts which, together with the other employer contributions from trust,
federal, and other funds, employee contributions, income from investments,
and other income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis in accordance
with actuarial recommendations.
The Board shall determine the amount of State contributions required for
each fiscal year on the basis of the actuarial tables and other assumptions
adopted by the Board and the recommendations of the actuary, using the formula
in subsection (a-1).
(a-1) For State fiscal years 2012 through 2045, the minimum contribution
to the System to be made by the State for each fiscal year shall be an amount
determined by the System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the required State
contribution shall be calculated each year as a level percentage of payroll
over the years remaining to and including fiscal year 2045 and shall be
determined under the projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the State shall make an additional contribution to the System equal to 2% of the total payroll of each employee who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161. A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution. A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be
implemented: (i) as already applied in State fiscal years before | ||
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(ii) in the portion of the 5-year period beginning in | ||
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For State fiscal years 1996 through 2005, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments so that by State fiscal year 2011, the
State is contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2006 is $166,641,900.
Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2007 is $252,064,100.
For each of State fiscal years 2008 through 2009, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $702,514,000 and shall be made from the State Pensions Fund and proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable. Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011 pursuant to Section 15-165 and shall be made from the State Pensions Fund and
proceeds of bonds sold in fiscal year 2011 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share of
total bond proceeds, (ii) any amounts received from the General
Revenue Fund in fiscal year 2011, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable. Beginning in State fiscal year 2046, the minimum State contribution for
each fiscal year shall be the amount needed to maintain the total assets of
the System at 90% of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of this Section, the required State
contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and
certified under Section 15-165, shall not exceed an amount equal to (i) the
amount of the required State contribution that would have been calculated under
this Section for that fiscal year if the System had not received any payments
under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus
(ii) the portion of the State's total debt service payments for that fiscal
year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined
and certified by the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General
Obligation Bond Act, so that, by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.
(a-2) Beginning in fiscal year 2018, each employer under this Article shall pay to the System a required contribution determined as a percentage of projected payroll and sufficient to produce an annual amount equal to: (i) for each of fiscal years 2018, 2019, and 2020, | ||
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(ii) the amount required for that fiscal year to | ||
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In determining contributions required under item (i) of this subsection, the System shall determine an aggregate rate for all employers, expressed as a percentage of projected payroll. In determining the contributions required under item (ii) of this subsection, the amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The contributions required under this subsection (a-2) shall be paid by an employer concurrently with that employer's payroll payment period. The State, as the actual employer of an employee, shall make the required contributions under this subsection. As used in this subsection, "academic year" means the 12-month period beginning September 1. (b) If an employee is paid from trust or federal funds, the employer
shall pay to the Board contributions from those funds which are
sufficient to cover the accruing normal costs on behalf of the employee.
However, universities having employees who are compensated out of local
auxiliary funds, income funds, or service enterprise funds are not required
to pay such contributions on behalf of those employees. The local auxiliary
funds, income funds, and service enterprise funds of universities shall not be
considered trust funds for the purpose of this Article, but funds of alumni
associations, foundations, and athletic associations which are affiliated with
the universities included as employers under this Article and other employers
which do not receive State appropriations are considered to be trust funds for
the purpose of this Article.
(b-1) The City of Urbana and the City of Champaign shall each make
employer contributions to this System for their respective firefighter
employees who participate in this System pursuant to subsection (h) of Section
15-107. The rate of contributions to be made by those municipalities shall
be determined annually by the Board on the basis of the actuarial assumptions
adopted by the Board and the recommendations of the actuary, and shall be
expressed as a percentage of salary for each such employee. The Board shall
certify the rate to the affected municipalities as soon as may be practical.
The employer contributions required under this subsection shall be remitted by
the municipality to the System at the same time and in the same manner as
employee contributions.
(c) Through State fiscal year 1995: The total employer contribution shall
be apportioned among the various funds of the State and other employers,
whether trust, federal, or other funds, in accordance with actuarial procedures
approved by the Board. State of Illinois contributions for employers receiving
State appropriations for personal services shall be payable from appropriations
made to the employers or to the System. The contributions for Class I
community colleges covering earnings other than those paid from trust and
federal funds, shall be payable solely from appropriations to the Illinois
Community College Board or the System for employer contributions.
(d) Beginning in State fiscal year 1996, the required State contributions
to the System shall be appropriated directly to the System and shall be payable
through vouchers issued in accordance with subsection (c) of Section 15-165, except as provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to the System upon
proper certification by the System or by the employer in accordance with the
appropriation laws and this Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System because of the
credits earned for service rendered by the participants during the
fiscal year and expenses of administering the System, but shall not
include the principal of or any redemption premium or interest on any bonds
issued by the Board or any expenses incurred or deposits required in
connection therewith.
(g) If the amount of a participant's earnings for any academic year used to determine the final rate of earnings, determined on a full-time equivalent basis, exceeds the amount of his or her earnings with the same employer for the previous academic year, determined on a full-time equivalent basis, by more than 6%, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in earnings that is in excess of 6%. This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation. Whenever it determines that a payment is or may be required under this subsection (g), the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (h), (h-5), or (i) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection (g) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill. When assessing payment for any amount due under this subsection (g), the System shall include earnings, to the extent not established by a participant under Section 15-113.11 or 15-113.12, that would have been paid to the participant had the participant not taken (i) periods of voluntary or involuntary furlough occurring on or after July 1, 2015 and on or before June 30, 2017 or (ii) periods of voluntary pay reduction in lieu of furlough occurring on or after July 1, 2015 and on or before June 30, 2017. Determining earnings that would have been paid to a participant had the participant not taken periods of voluntary or involuntary furlough or periods of voluntary pay reduction shall be the responsibility of the employer, and shall be reported in a manner prescribed by the System. This subsection (g) does not apply to (1) Tier 2 hybrid plan members and (2) Tier 2 defined benefit members who first participate under this Article on or after the implementation date of the Optional Hybrid Plan. (g-1) (Blank). (h) This subsection (h) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011. The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July 31, 2006 (the effective date of Public Act 94-1057). When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases paid to participants under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases paid to a participant at a time when the participant is 10 or more years from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases resulting from overload work, including a contract for summer teaching, or overtime when the employer has certified to the System, and the System has approved the certification, that: (i) in the case of overloads (A) the overload work is for the sole purpose of academic instruction in excess of the standard number of instruction hours for a full-time employee occurring during the academic year that the overload is paid and (B) the earnings increases are equal to or less than the rate of pay for academic instruction computed using the participant's current salary rate and work schedule; and (ii) in the case of overtime, the overtime was necessary for the educational mission. When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase resulting from (i) a promotion for which the employee moves from one classification to a higher classification under the State Universities Civil Service System, (ii) a promotion in academic rank for a tenured or tenure-track faculty position, or (iii) a promotion that the Illinois Community College Board has recommended in accordance with subsection (k) of this Section. These earnings increases shall be excluded only if the promotion is to a position that has existed and been filled by a member for no less than one complete academic year and the earnings increase as a result of the promotion is an increase that results in an amount no greater than the average salary paid for other similar positions. (h-5) When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase paid in an academic year beginning on or after July 1, 2020 resulting from overload work performed in an academic year subsequent to an academic year in which the employer was unable to offer or allow to be conducted overload work due to an emergency declaration limiting such activities. (i) When assessing payment for any amount due under subsection (g), the System shall exclude any salary increase described in subsection (h) of this Section given on or after July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Except as provided in subsection (h-5), any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (g) of this Section.
(j) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information: (1) The number of recalculations required by the | ||
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(2) The dollar amount by which each employer's | ||
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(3) The total amount the System received from each | ||
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(4) The increase in the required State contribution | ||
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(j-5) For State fiscal years beginning on or after July 1, 2017, if the amount of a participant's earnings for any State fiscal year exceeds the amount of the salary set by law for the Governor that is in effect on July 1 of that fiscal year, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, an amount determined by the System to be equal to the employer normal cost, as established by the System and expressed as a total percentage of payroll, multiplied by the amount of earnings in excess of the amount of the salary set by law for the Governor. This amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation. Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculation used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due. The employer contributions required under this subsection may be paid in the form of a lump sum within 90 days after issuance of the bill. If the employer contributions are not paid within 90 days after issuance of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after issuance of the bill. All payments must be received within 3 years after issuance of the bill. If the employer fails to make complete payment, including applicable interest, within 3 years, then the System may, after giving notice to the employer, certify the delinquent amount to the State Comptroller, and the Comptroller shall thereupon deduct the certified delinquent amount from State funds payable to the employer and pay them instead to the System. This subsection (j-5) does not apply to a participant's earnings to the extent an employer pays the employer normal cost of such earnings. The changes made to this subsection (j-5) by Public Act 100-624 are intended to apply retroactively to July 6, 2017 (the effective date of Public Act 100-23). (k) The Illinois Community College Board shall adopt rules for recommending lists of promotional positions submitted to the Board by community colleges and for reviewing the promotional lists on an annual basis. When recommending promotional lists, the Board shall consider the similarity of the positions submitted to those positions recognized for State universities by the State Universities Civil Service System. The Illinois Community College Board shall file a copy of its findings with the System. The System shall consider the findings of the Illinois Community College Board when making determinations under this Section. The System shall not exclude any earnings increases resulting from a promotion when the promotion was not submitted by a community college. Nothing in this subsection (k) shall require any community college to submit any information to the Community College Board.
(l) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows: As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date. In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year. (m) For purposes of determining the required State contribution to the system for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the system's actuarially assumed rate of return. (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff. 5-13-22.)
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(40 ILCS 5/15-155.1) Sec. 15-155.1. Actions to enforce payments by employers. (a) Except as otherwise specified, if any employer fails to transmit to the System contributions required of it under this Article or contributions collected by it from its participating employees for the purposes of this Article for more than 120 days after the payment of those contributions is due, the Board, after giving notice to that employer, may certify to the State Comptroller the amounts of such delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller shall deduct the amounts so certified or any part thereof from any payments of State funds to the employer involved and shall remit the amount so deducted to the System. If State funds from which such deductions may be made are not available or if deductions are delayed for longer than 120 days after the date of the certification to the Comptroller, the Board may proceed against the employer to recover the amounts of such delinquent payments in the appropriate circuit court. (b) Except as otherwise specified, if any employer that is a community college district fails to transmit to the System contributions required of it under this Article or contributions collected by it from its participating employees for the purposes of this Article for more than 120 days after the payment of those contributions is due, the Board, after giving notice to that employer, may certify the fact of such delinquent payment to the county treasurer of the county in which that employer is located, who shall thereafter remit the amounts collected from any taxes levied by the employer directly to the System. If the funds from which such remittances may be made are not available or if the remittances are delayed for longer than 120 days after the date of the certification to the county treasurer, the Board may proceed against the employer to recover the amounts of such delinquent payments in the appropriate circuit court. (c) Nothing in this Section prohibits the Board from proceeding against an employer to recover the amounts of any delinquent payments in the appropriate circuit court.
(Source: P.A. 100-988, eff. 8-20-18.) |
(40 ILCS 5/15-155.2) Sec. 15-155.2. Individual employer accounts. (a) The System shall create and maintain an individual account for each employer for the purposes of determining employer contributions under subsection (a-2) of Section 15-155. Each employer's account shall be notionally charged with the liabilities attributable to that employer and credited with the assets attributable to that employer. (b) Beginning with fiscal year 2018, the System shall assign notional liabilities to each employer's account, equal to the amount of employer contributions required to be made by the employer pursuant to items (i) and (ii) of subsection (a-2) of Section 15-155, plus any unfunded actuarial accrued liability associated with the defined benefits attributable to the employer's employees who first became participants on or after the implementation date and the employer's employees who made the election under subsection (c-5) of Section 1-161. (c) Beginning with fiscal year 2018, the System shall assign notional assets to each employer's account equal to the amounts of employer contributions made pursuant to items (i) and (ii) of subsection (a-2) of Section 15-155.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-156. Obligations of State; funding guarantees. (a) The payment of (1) the
required State contributions, (2) all benefits
granted under this system and (3) all expenses in connection with the
administration and operation thereof are obligations of the State of
Illinois to the extent specified in this Article. The accumulated
employee normal, additional and survivors insurance contributions
credited to the accounts of active and inactive participants
shall not be used to pay the State's share of the obligations.
(b) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law. Notwithstanding any other provision of law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment. If the System submits a voucher for contributions required under Section 15-155 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher. This subsection (b) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 15-155. (c) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and, if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be. If the State fails to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be. This subsection (c) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act. The obligations created by this subsection (c) expire when all of the requirements of subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met. (d) Any payments and transfers required to be made by the State pursuant to subsection (b) or (c) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations.(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-156.
Obligations of State.
The payment of (1) the
required State contributions, (2) all benefits
granted under this system and (3) all expenses in connection with the
administration and operation thereof are obligations of the State of
Illinois to the extent specified in this Article. The accumulated
employee normal, additional and survivors insurance contributions
credited to the accounts of active and inactive participants
shall not be used to pay the State's share of the obligations.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
Sec. 15-157. Employee Contributions.
(a) Each participating employee
shall make contributions towards the retirement
benefits payable under the retirement program applicable to the
employee from each payment
of earnings applicable to employment under this system on and after the
date of becoming a participant as follows: Prior to September 1, 1949,
3 1/2% of earnings; from September 1, 1949 to August 31, 1955, 5%; from
September 1, 1955 to August 31, 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions are to be considered as normal contributions for purposes
of this Article.
Each participant who is a police officer or firefighter shall make normal
contributions of 8% of each payment of earnings applicable to employment as a
police officer or firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after the effective date
of this amendatory Act of 1991 or 60 days after the board receives notice that
he or she is employed as a police officer or firefighter, whichever is later,
a written notice waiving the retirement formula provided by Rule 4 of Section
15-136. This waiver shall be irrevocable. If a participant had met the
conditions set forth in Section 15-132.1 prior to the effective date of this
amendatory Act of 1991 but failed to make the additional normal contributions
required by this paragraph, he or she may elect to pay the additional
contributions plus compound interest at the effective rate. If such payment
is received by the board, the service shall be considered as police officer
service in calculating the retirement annuity under Rule 4 of Section 15-136.
While performing service described in clause (i) or (ii) of Rule 4 of Section
15-136, a participating employee shall be deemed to be employed as a
firefighter for the purpose of determining the rate of employee contributions
under this Section.
(b) Starting September 1, 1969, each participating employee shall make
additional contributions of 1/2 of 1% of earnings to finance a portion
of the cost of the annual increases in retirement annuity provided under
Section 15-136, except that with respect to participants in the
self-managed plan this additional contribution shall be used to finance the
benefits obtained under that retirement program.
(c) In addition to the amounts described in subsections (a) and (b) of this
Section, each participating employee shall make contributions of 1% of earnings
applicable under this system on and after August 1, 1959. The contributions
made under this subsection (c) shall be considered as survivor's insurance
contributions for purposes of this Article if the employee is covered under
the traditional benefit package, and such contributions shall be considered
as additional contributions for purposes of this Article if the employee is
participating in the self-managed plan or has elected to participate in the
portable benefit package and has completed the applicable one-year waiting
period. Contributions in excess of $80 during any fiscal year beginning before
August 31, 1969 and in excess of $120 during any fiscal year thereafter until
September 1, 1971 shall be considered as additional contributions for purposes
of this Article.
(d) If the board by board rule so permits and subject to such conditions
and limitations as may be specified in its rules, a participant may make
other additional contributions of such percentage of earnings or amounts as
the participant shall elect in a written notice thereof received by the board.
(e) That fraction of a participant's total accumulated normal
contributions, the numerator of which is equal to the number of years of
service in excess of that which is required to qualify for the maximum
retirement annuity, and the denominator of which is equal to the total
service of the participant, shall be considered as accumulated additional
contributions. The determination of the applicable maximum annuity and
the adjustment in contributions required by this provision shall be made
as of the date of the participant's retirement.
(f) Notwithstanding the foregoing, a participating employee shall not
be required to make contributions under this Section after the date upon
which continuance of such contributions would otherwise cause his or her
retirement annuity to exceed the maximum retirement annuity as specified in
clause (1) of subsection (c) of Section 15-136.
(g) A participant may make contributions for the purchase of
service credit under this Article; however, only a participating employee may make optional contributions under subsection (b) of Section 15-157.1 of this Article.
(h) A Tier 2 member shall not make contributions on earnings that exceed the limitation as prescribed under subsection (b) of Section 15-111 of this Article.(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
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(40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
Sec. 15-157.1.
Pickup of employee contributions.
(a) Each employer shall pick up the employee contributions required
under subsections (a), (b), and (c) of Section 15-157 for all earnings payments
made on and after January 1, 1981, and the contributions so picked up
shall be treated as employer contributions in determining tax treatment
under the United States Internal Revenue Code. These contributions shall
not be included as gross income of the participant until such time as they
are distributed or made available. The employer shall pay these employee
contributions from the same source of funds which is used in paying earnings
to the employee. The employer may pick up these contributions by a reduction
in the cash salary of the participants, or by an offset against a future
salary increase, or by a combination of a reduction in salary and offset
against a future salary increase.
(b) Subject to the requirements of federal law, a participating employee
may elect to have the employer pick up optional contributions that the
participant has elected to pay to the System under Section 15-157(g), and the
contributions so picked up shall be treated as employer contributions for the
purposes of determining federal tax treatment under the federal Internal
Revenue Code of 1986. These contributions shall not be included as gross
income of the participant until such time as they are distributed or made
available. The employer shall pick up the contributions by a reduction in the
cash salary of the participant and shall pay the contributions from the same
source of funds that is used to pay earnings to the participant. The election
to have optional contributions picked up is irrevocable.
(Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97.)
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(40 ILCS 5/15-157.5) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 15-157.5. Use of contributions for health care subsidies. The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-599, eff. 6-1-14.) |
(40 ILCS 5/15-158.1) (from Ch. 108 1/2, par. 15-158.1)
Sec. 15-158.1.
(Repealed).
(Source: P.A. 87-1265. Repealed by P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-158.2)
Sec. 15-158.2. Self-managed plan.
(a) Purpose. The General Assembly finds that it is important for colleges
and universities to be able to attract and retain the most qualified employees
and that in order to attract and retain these employees, colleges and
universities should have the flexibility to provide a defined contribution
plan as an alternative for eligible employees who elect not to participate
in a defined benefit retirement program provided under this Article.
Accordingly, the State Universities Retirement System is hereby authorized to
establish and administer a self-managed plan, which shall offer participating
employees the opportunity to accumulate assets for retirement through a
combination of employee and employer contributions that may be invested in
mutual funds, collective investment funds, or other investment products and
used to purchase annuity contracts, either fixed or variable or a combination
thereof. The plan must be qualified under the Internal Revenue Code of 1986.
(b) Adoption by employers. Each employer subject to this Article may
elect to adopt the self-managed plan established under this Section; this
election is irrevocable. An employer's election to adopt the self-managed
plan makes available to the eligible employees of that employer the elections
described in Section 15-134.5.
The State Universities Retirement System shall be the plan sponsor for the
self-managed plan and shall prepare a plan document and prescribe such rules
and procedures as are considered necessary or desirable for the administration
of the self-managed plan. Consistent with its fiduciary duty to the
participants and beneficiaries of the self-managed plan, the Board of Trustees
of the System may delegate aspects of plan administration as it sees fit to
companies authorized to do business in this State, to the employers, or to a
combination of both.
(c) Selection of service providers and funding vehicles. The System, in
consultation with the employers, shall solicit proposals to provide
administrative services and funding vehicles for the self-managed plan from
insurance and annuity companies and mutual fund companies, banks, trust
companies, or other financial institutions authorized to do business in this
State. In reviewing the proposals received and approving and contracting with
no fewer than 2 and no more than 7 companies, the Board of Trustees of the System shall
consider, among other things, the following criteria:
(1) the nature and extent of the benefits that would | ||
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(2) the reasonableness of the benefits in relation to | ||
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(3) the suitability of the benefits to the needs and | ||
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(4) the ability of the company to provide benefits | ||
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(5) the efficacy of the contract in the recruitment | ||
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The System, in consultation with the employers, shall periodically review
each approved company. A company may continue to provide administrative
services and funding vehicles for the self-managed plan only so long as
it continues to be an approved company under contract with the Board.
(d) Employee Direction. Employees who are participating in the program
must be allowed to direct the transfer of their account balances among the
various investment options offered, subject to applicable contractual
provisions.
The participant shall not be deemed a fiduciary by reason of providing such
investment direction. A person who is a fiduciary shall not be liable for any
loss resulting from such investment direction and shall not be deemed to have
breached any fiduciary duty by acting in accordance with that direction. The System shall provide advance notice to the participant of the participant's obligation to direct the investment of employee and employer contributions into one or more investment funds selected by the System at the time he or she makes his or her initial retirement plan selection. If a participant fails to direct the investment of employee and employer contributions into the various investment options offered to the participant when making his or her initial retirement election choice, that failure shall require the System to invest the employee and employer contributions in a default investment fund on behalf of the participant, and the investment shall be deemed to have been made at the participant's investment direction. The participant has the right to transfer account balances out of the default investment fund during time periods designated by the System.
Neither the System nor the employer guarantees any of the investments in the
employee's account balances.
(e) Participation. An employee eligible to participate in the
self-managed plan must make a written election in accordance with the
provisions of Section 15-134.5 and the procedures established by the System.
Participation in the self-managed plan by an electing employee shall begin
on the first day of the first pay period following the later of the date the
employee's election is filed with the System or the effective date as of
which the employee's employer begins to offer participation in the self-managed
plan. Employers may not make the self-managed plan available earlier than
January 1, 1998. An employee's participation in any other retirement program
administered by the System under this Article shall terminate on the date that
participation in the self-managed plan begins.
An employee who has elected to participate in the self-managed plan under
this Section must continue participation while employed in an eligible
position, and may not participate in any other retirement program administered
by the System under this Article while employed by that employer or any other
employer that has adopted the self-managed plan, unless the self-managed plan
is terminated in accordance with subsection (i).
Notwithstanding any other provision of this Article, a Tier 2 member shall have the option to enroll in the self-managed plan. Participation in the self-managed plan under this Section shall constitute
membership in the State Universities Retirement System.
A participant under this Section shall be entitled to the benefits of
Article 20 of this Code.
(f) Establishment of Initial Account Balance. If at the time an employee
elects to participate in the self-managed plan he or she has rights and credits
in the System due to previous participation in the traditional benefit package,
the System shall establish for the employee an opening account balance in the
self-managed plan, equal to the amount of contribution refund that the employee
would be eligible to receive under Section 15-154 if the employee terminated
employment on that date and elected a refund of contributions, except that this
hypothetical refund shall include interest at the effective rate for the
respective years. The System shall transfer assets from the defined benefit
retirement program to the self-managed plan, as a tax free transfer in
accordance with Internal Revenue Service guidelines, for purposes of funding
the employee's opening account balance.
(g) No Duplication of Service Credit. Notwithstanding any other provision
of this Article, an employee may not purchase or receive service or service
credit applicable to any other retirement program administered by the System
under this Article for any period during which the employee was a participant
in the self-managed plan established under this Section.
(h) Contributions. The self-managed plan shall be funded by contributions
from employees participating in the self-managed plan and employer
contributions as provided in this Section.
The contribution rate for employees participating in the self-managed plan
under this Section shall be equal to the employee contribution rate for other
participants in the System, as provided in Section 15-157. This required
contribution shall be made as an "employer pick-up" under Section 414(h) of the
Internal Revenue Code of 1986 or any successor Section thereof. Any employee
participating in the System's traditional benefit package prior to his or her
election to participate in the self-managed plan shall continue to have the
employer pick up the contributions required under Section 15-157. However, the
amounts picked up after the election of the self-managed plan shall be remitted
to and treated as assets of the self-managed plan. In no event shall an
employee have an option of receiving these amounts in cash. Employees may make
additional contributions to the
self-managed plan in accordance with procedures prescribed by the System, to
the extent permitted under rules prescribed by the System.
The program shall provide for employer contributions to be credited to each
self-managed plan participant at a rate of 7.6%
of the participating employee's salary, less the amount used by
the System to provide disability benefits for the employee.
The amounts so credited
shall be paid into the participant's self-managed plan accounts in a manner
to be prescribed by the System.
An amount of employer contribution, not exceeding 1% of the participating
employee's salary, shall be used for the purpose of providing the disability
benefits of the System to the employee. Prior to the beginning of each plan
year under the self-managed plan, the Board of Trustees shall determine, as a
percentage of salary, the amount of employer contributions to be allocated
during that plan year for providing disability benefits for employees in the
self-managed plan.
The State of Illinois shall make contributions by appropriations to the
System of the employer contributions required for employees who participate in
the self-managed plan under this Section.
The amount required shall
be certified by the Board of Trustees of the System and paid by the State in
accordance with Section 15-165. The System shall not be obligated to remit the
required employer contributions to any of the insurance and annuity
companies, mutual fund
companies, banks, trust companies, financial institutions, or other sponsors
of any of the funding vehicles offered under the self-managed plan
until it has received the required employer contributions from the State. In
the event of a deficiency in the amount of State contributions, the System
shall implement those procedures described in subsection (c) of Section 15-165
to obtain the required funding from the General Revenue
Fund.
(i) Termination. The self-managed plan authorized under this
Section may be terminated by the System, subject to the terms
of any relevant
contracts, and the System shall have no obligation to
reestablish the self-managed plan under this Section. This Section does not
create a right
to continued participation in any self-managed plan set up by the System under
this Section. If the self-managed plan is terminated,
the participants shall have the right to participate in one of the other
retirement programs offered by the System and receive service credit in such
other retirement program for any years of employment following the termination.
(j) Vesting; Withdrawal; Return to Service. A participant in the
self-managed plan becomes vested in the employer contributions credited to his
or her accounts in the self-managed plan on the earliest to occur of the
following: (1) completion of 5 years of service with an employer described in
Section 15-106; (2) the death of the participating employee while employed by
an employer described in Section 15-106, if the participant has completed at
least 1 1/2 years of service; or (3) the participant's election to retire and
apply the reciprocal provisions of Article 20 of this Code.
A participant in the self-managed plan who receives a distribution of his or
her vested amounts from the self-managed plan
while not yet eligible for retirement under this Article
(and Article 20, if applicable) shall forfeit all service credit
and accrued rights in the System; if subsequently re-employed, the participant
shall be considered a new
employee. If a former participant again becomes a participating employee (or
becomes employed by a participating system under Article 20 of this Code) and
continues as such for at least 2 years, all such rights, service credits, and
previous status as a participant shall be restored upon repayment of the amount
of the distribution, without interest.
(k) Benefit amounts. If an employee who is vested in employer
contributions terminates employment, the employee shall be entitled to a
benefit which is based on the
account values attributable to both employer and
employee contributions and any
investment return thereon.
If an employee who is not vested in employer contributions terminates
employment, the employee shall be entitled to a benefit based solely on the
account values attributable to the employee's contributions and any investment
return thereon, and the employer contributions and any investment return
thereon shall be forfeited. Any employer contributions which are forfeited
shall be held in escrow by the
company investing those contributions and shall be used as directed by the
System for future allocations of employer contributions or for the restoration
of amounts previously forfeited by former participants who again become
participating employees.
(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
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(40 ILCS 5/15-158.3) (Text of Section before amendment by P.A. 103-862) Sec. 15-158.3. Reports on cost reduction; effect on retirement at any age with 30 years of service. (a) On or before November 15, 2001 and on or before November 15th of each year thereafter, the Board shall have the System's actuary prepare a report showing, on a fiscal year by fiscal year basis, the actual rate of participation in the self-managed plan authorized by Section 15-158.2, (i) by employees of the System's covered higher educational institutions who were hired on or after the implementation date of the self-managed plan and (ii) by other System participants. (b) On or before November 15th of 2001 and on or before November 15th of each year thereafter, the Illinois Board of Higher Education, in conjunction with the Bureau of the Budget (now Governor's Office of Management and Budget) shall prepare a report showing, on a fiscal year by fiscal year basis, the amount by which the costs associated with compensable sick leave have been reduced as a result of the termination of compensable sick leave accrual on and after January 1, 1998 by employees of higher education institutions who are participants in the System. (c) (Blank). (d) The report required under subsection (b) shall be disseminated to the Board, the Pension Laws Commission (until it ceases to exist), the Commission on Government Forecasting and Accountability, the Illinois Board of Higher Education, and the Governor. (e) The report required under subsection (b) shall be taken into account by the Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) in making any recommendation to extend by legislation beyond December 31, 2002 the provision that allows a System participant to retire at any age with 30 or more years of service as authorized in Section 15-135. (Source: P.A. 102-19, eff. 7-1-21.) (Text of Section after amendment by P.A. 103-862) Sec. 15-158.3. Reports on cost reduction; effect on retirement at any age with 30 years of service. (a) On or before November 15, 2001 and on or before November 15th of each year thereafter, the Board shall have the System's actuary prepare a report showing, on a fiscal year by fiscal year basis, the actual rate of participation in the self-managed plan authorized by Section 15-158.2, (i) by employees of the System's covered higher educational institutions who were hired on or after the implementation date of the self-managed plan and (ii) by other System participants. (b) On or before November 15th of 2001 and on or before November 15th of each year thereafter, the Illinois Board of Higher Education, in conjunction with the Bureau of the Budget (now Governor's Office of Management and Budget) shall prepare a report showing, on a fiscal year by fiscal year basis, the amount by which the costs associated with compensable sick leave have been reduced as a result of the termination of compensable sick leave accrual on and after January 1, 1998 by employees of higher education institutions who are participants in the System. (c) (Blank). (d) The report required under subsection (b) shall be disseminated to the Board, the Pension Laws Commission (until it ceases to exist), the Commission on Government Forecasting and Accountability, the Illinois Board of Higher Education, and the Governor. (e) The report required under subsection (b) shall be taken into account by the Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) in making any recommendation to extend by legislation beyond December 31, 2002 the provision that allows a System participant to retire at any age with 30 or more years of service as authorized in Section 15-135. (f) On and after December 31, 2026, subsections (b), (d), and (e) are inoperative. (Source: P.A. 102-19, eff. 7-1-21; 103-862, eff. 1-1-25.) |
(40 ILCS 5/15-158.4)
Sec. 15-158.4. Election of medicare coverage.
(a) The System shall conduct a divided medicare coverage referendum, open
to employees continuously employed by the same employer since March 31, 1986.
The referendum shall be conducted in accordance with the applicable provisions
of federal law and Article 21 of this Code.
(b) As used in this Section and in compliance with federal law, "referendum"
means the process whereby employees are granted the opportunity to make an
irrevocable individual election to participate in the medicare program on a
prospective basis.
(c) Employers shall pay the necessary employer contributions and make the
necessary deductions from salary for employees who elect to participate in the
federal medicare program under this Section, as required by the System, Article
21 of this Code, and federal law.
(Source: P.A. 94-415, eff. 8-2-05.) |
(40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
Sec. 15-159. Board created. (a) A board of trustees constituted as provided in
this Section shall administer this System. The board shall be known as the
Board of Trustees of the State Universities Retirement System.
(b) (Blank).
(c) (Blank).
(d) Beginning on the 90th day after April 3, 2009 (the effective date of Public Act 96-6), the Board of Trustees shall be constituted as follows: (1) The Chairperson of the Board of Higher Education. (2) Four trustees appointed by the Governor with the | ||
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(3) Four participating employees of the system to be | ||
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(4) Two annuitants of the system who have been | ||
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The chairperson of the Board shall be appointed by the Governor from among the trustees. For the purposes of this Section, the Governor may make a nomination and the Senate may confirm the nominee in advance of the commencement of the nominee's term of office. (e) The 6 elected trustees shall be elected within 90 days after April 3, 2009 (the effective date of Public Act 96-6) for a term beginning on the 90th day after that effective date. Trustees shall be elected thereafter as terms expire for a 6-year term beginning July 15 next following their election, and such election shall be held on May 1, or on May 2 when May 1 falls on a Sunday. The board may establish rules for the election of trustees to implement the provisions of Public Act 96-6 and for future elections. Candidates for the participating trustee shall be nominated by petitions in writing, signed by not less than 400 participants with their addresses shown opposite their names. Candidates for the annuitant trustee shall be nominated by petitions in writing, signed by not less than 100 annuitants with their addresses shown opposite their names. If there is more than one qualified nominee for each elected trustee, then the board shall conduct a secret ballot election by mail for that trustee, in accordance with rules as established by the board. If there is only one qualified person nominated by petition for each elected trustee, then the election as required by this Section shall not be conducted for that trustee and the board shall declare such nominee duly elected. A vacancy occurring in the elective membership of the board shall be filled for the unexpired term by the elected trustees serving on the board for the remainder of the term. Nothing in this subsection shall preclude the adoption of rules providing for internet or phone balloting in addition, or as an alternative, to election by mail. (f) A vacancy in the appointed membership on the board of trustees caused by resignation,
death, expiration of term of office, or other reason shall be filled by a
qualified person appointed by the Governor for the remainder of the unexpired
term.
(g) Trustees
shall continue in office until their respective successors are appointed
and have qualified, except that a trustee elected to one of the participating employee
positions after the effective date of this amendatory Act of the 102nd General Assembly shall be disqualified immediately upon the termination of
his or her status as a participating employee and a trustee elected to one of the
annuitant positions after the effective date of this amendatory Act of the 102nd General Assembly shall be disqualified immediately upon the termination of
his or her status as an annuitant receiving a retirement annuity.
An elected trustee who is incumbent on the effective date of this amendatory Act of the 102nd General Assembly whose status as a participating employee or annuitant has terminated after having been elected shall continue to serve in the participating employee or annuitant position to which he or she was elected for the remainder of the term. (h) Each trustee must take an oath of office
before a notary public of this State and shall qualify as a trustee upon the
presentation to the board of a certified copy of the oath. The oath must state
that the person will diligently and honestly administer the affairs of the
retirement system, and will not knowingly violate or willfully permit to be
violated any provisions of this Article.
Each trustee shall serve without compensation but shall be reimbursed for
expenses necessarily incurred in attending board meetings and carrying out his
or her duties as a trustee or officer of the system.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
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(40 ILCS 5/15-160) (from Ch. 108 1/2, par. 15-160)
Sec. 15-160.
Board's powers and duties.
The board shall have the powers and duties stated in Sections 15-161 through
15-177 in addition to the other powers and duties provided under this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-161) (from Ch. 108 1/2, par. 15-161)
Sec. 15-161.
To contract and act in its corporate name.
To be a public corporation of this State with power to enter into
contracts, accept and make transfers of property, real and personal; to
conduct in its corporate name all court proceedings which the board deems
necessary to protect the interests of the State and of the intended
beneficiaries under this Article; and generally to accomplish the objects
and purposes thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-162) (from Ch. 108 1/2, par. 15-162)
Sec. 15-162. To hold meetings.
To hold regular meetings at least quarterly in each year and special
meetings at such times as the chairperson or a majority of the board deem
necessary.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-163) (from Ch. 108 1/2, par. 15-163)
Sec. 15-163.
To consider applications and authorize payments.
To consider and pass on all applications for annuities and benefits; to
authorize the granting of annuities and benefits; and to limit or suspend
any payment or payments, all in accordance with this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-164) (from Ch. 108 1/2, par. 15-164)
Sec. 15-164.
To certify interest rate, to set value of allowances and
to adopt actuarial tables.
To certify the prescribed and effective rates of interest;
to prescribe rules for the
determination of the value of maintenance, board, living quarters and
personal laundry, and other allowances to employees in lieu of money; and
to adopt all necessary actuarial tables.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165) Sec. 15-165. To certify amounts and submit vouchers. (a) The Board shall certify to the Governor on or before November 15 of each year until November 15, 2011 the appropriation required from State funds for the purposes of this System for the following fiscal year. The certification under this subsection (a) shall include a copy of the actuarial recommendations upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year and the projected State cost for the self-managed plan for that fiscal year. On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking into account the amounts appropriated to and received by the System under subsection (d) of Section 7.2 of the General Obligation Bond Act. On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly. On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date. (a-5) On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and each January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note, in a written response to the State Actuary, any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (a-10) By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (a-15) On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification. The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this subsection is submitted to the Governor, Comptroller, and General Assembly. The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct. (b) The Board shall certify to the State Comptroller or employer, as the case may be, from time to time, by its chairperson and secretary, with its seal attached, the amounts payable to the System from the various funds. (c) Unless otherwise directed by the Comptroller under subsection (c-1), the Board shall submit vouchers for payment of State contributions to the System for the applicable month on the 15th day of each month, or as soon thereafter as may be practicable. The amount vouchered for a monthly payment shall total one-twelfth of the required annual State contribution certified under subsection (a). (c-1) Beginning in State fiscal year 2025, if the Comptroller requests that the Board submit, during a State fiscal year, vouchers for multiple monthly payments for advance payment of State contributions due to the System for that State fiscal year, then the Board shall submit those additional vouchers as directed by the Comptroller, notwithstanding subsection (c). Unless an act of appropriations provides otherwise, nothing in this Section authorizes the Board to submit, in a State fiscal year, vouchers for the payment of State contributions to the System in an amount that exceeds the annual certified contribution for the System under this Section for that State fiscal year. (c-2) The vouchers described in subsections (c) and (c-1) shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year. If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this Section, the difference shall be paid from the General Revenue Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (d) So long as the payments received are the full amount lawfully vouchered under this Section, payments received by the System under this Section shall be applied first toward the employer contribution to the self-managed plan established under Section 15-158.2. Payments shall be applied second toward the employer's portion of the normal costs of the System, as defined in subsection (f) of Section 15-155. The balance shall be applied toward the unfunded actuarial liabilities of the System. (e) In the event that the System does not receive, as a result of legislative enactment or otherwise, payments sufficient to fully fund the employer contribution to the self-managed plan established under Section 15-158.2 and to fully fund that portion of the employer's portion of the normal costs of the System, as calculated in accordance with Section 15-155(a-1), then any payments received shall be applied proportionately to the optional retirement program established under Section 15-158.2 and to the employer's portion of the normal costs of the System, as calculated in accordance with Section 15-155(a-1).(Source: P.A. 103-588, eff. 6-5-24.) |
(40 ILCS 5/15-166) (from Ch. 108 1/2, par. 15-166)
Sec. 15-166.
To be custodian.
To be custodian of all cash and securities belonging to the system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
Sec. 15-167. To invest money. To invest the funds of the system, subject
to the requirements and restrictions set forth in Sections 1A-108.5, 1-109, 1-109.1,
1-109.2, 1-110, 1-111, 1-114, 1-115, and 15-158.2(d) of this
Code and to invest in real estate acquired by
purchase, gift, condemnation or otherwise, and any office building or buildings
existing or to be constructed thereon, including any additions thereto or
expansions thereof, for the use of the system. The board may lease surplus
space in any of the buildings and use rental proceeds for operation,
maintenance, improving, expanding and furnishing of the buildings or for any
other lawful system purpose.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended. The limitations set forth in such Section 6 shall be
applicable only at the time of investment and shall not require the liquidation
of any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its
own name or in the name of a nominee created for the express purpose of
registration of securities by a national or state bank or trust company
authorized to conduct a trust business in the State of Illinois.
Investments shall be carried at cost or at a value determined in
accordance with generally accepted accounting principles and accounting
procedures approved by the Board.
All additions to assets from income, interest, and dividends
from investments shall be used to pay benefits,
operating and administrative expenses of the system, debt service,
including any redemption premium, on any bonds issued by the board,
expenses incurred or deposits required in connection with such bonds, and
such other costs as may be provided in accordance with this
Article.
(Source: P.A. 96-753, eff. 8-25-09.)
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(40 ILCS 5/15-167.1) (from Ch. 108 1/2, par. 15-167.1)
Sec. 15-167.1.
Participation in commingled investment funds-Transfer of
investment functions and securities. (a) The retirement board may invest
in any commingled investment fund or
funds established and maintained by the Illinois State Board of Investment
under Article 22A of this Code. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The retirement board may, by resolution duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the system of every kind and character.
Upon completion
of such transfer, the authority of the retirement board to make investments
shall terminate. Thereafter, all investments of the reserves of the system
shall be made by the Illinois State Board of Investment in accordance
with Article 22A of this Code.
The transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer, an
audit of the investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of the audit
shall be assumed by the retirement board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
Sec. 15-167.2.
To issue bonds.
To borrow money and, in evidence of
its obligation to repay the borrowing, to issue bonds for the purpose of
financing the cost of any project. The bonds shall be authorized pursuant
to a resolution to be adopted by the board setting forth all details in
connection with the bonds.
The principal amount of the outstanding bonds of the board shall not at
any time exceed $20,000,000.
The bonds may be issued in one or more series, bear such date or dates,
become due at such time or times within 40 years, bear interest payable at
such intervals and at such rate or rates, which rates may be fixed or
variable, be in such denominations, be in such form, either coupon,
registered or book-entry, carry such conversion, registration and exchange
privileges, be subject to defeasance upon such terms, have such rank or
priority, be executed in such manner, be payable in such medium of payment
at such place or places within or without the State of Illinois, make
provision for a corporate trustee within or without the State of
Illinois with respect to such bonds, prescribe the rights, powers and
duties thereof to be exercised for the benefit of the board, the system and
the protection of the bondholders, provide for the holding in trust,
investment and use of moneys, funds and accounts held in connection
therewith, be subject to such terms of redemption with or without premium,
and be sold in such manner at private or public sale and at such price, all
as the board shall determine. Whenever bonds are sold at a price less than
par, they shall be sold at such price and bear interest at such rate or
rates that either the true interest cost (yield) or the net interest rate,
as may be selected by the board, received upon the sale of such bonds does
not exceed the maximum interest rate permitted by the Bond Authorization Act,
as amended at the time of the making of the contract.
Any bonds may be refunded or advance refunded upon such terms as the
board may determine for such term of years, not exceeding 40 years, and in
such principal amount, as may be deemed necessary by the board. Any
redemption premium payable upon the redemption of bonds may be payable from
the proceeds of refunding bonds issued for the purpose of refunding such
bonds, from any lawfully available source or from both refunding bond
proceeds and such other sources.
The bonds or refunding bonds shall be obligations of the board payable
from the income, interest and dividends derived from investments of
the board, all as may be designated in the resolution of the board
authorizing the issuance of the bonds. The bonds shall be secured as
provided in the authorizing resolution, which may, notwithstanding any
other provision of this Code, include a specific pledge or assignment of
and lien on or security interest in the income, interest and dividends
derived from investments of the board and a specific pledge or assignment
of and lien on or security interest in any funds, reserves or accounts
established or provided for by the resolution of the board authorizing the
issuance of the bonds.
The bonds or refunding bonds shall not be payable from any
employer or employee contributions derived from State appropriations nor
constitute obligations or indebtedness of the State of Illinois or of any
municipal corporation or other body politic and corporate in the State.
The holder or holders of any bonds issued by the board may bring suits at
law or proceedings in equity to compel the performance and observance by
the board or any of its agents or employees of any contract or covenant
made with the holders of the bonds, to compel the board or any of its
agents or employees to perform any duties required to be performed for the
benefit of the holders of the bonds by the provisions of the resolution
authorizing their issuance, and to enjoin the board or any of its agents or
employees from taking any action in conflict with any such contract or covenant.
Notwithstanding the provisions of Section 15-188 of this Code, if the
board fails to pay the principal of, premium, if any, or interest on any of
the bonds as they become due, a civil action to compel payment may be
instituted in the appropriate circuit court by the holder or holders of the
bonds upon which such default exists or by a trustee acting on behalf of the holders.
No bonds may be issued under this Section until a copy of the resolution
of the board authorizing such bonds, certified by the secretary of the
board, has been filed with the Governor of the State of Illinois.
"Bonds" means any instrument evidencing the obligation to pay money,
including without limitation bonds, notes, installment or financing
contracts, leases, certificates, warrants, and any other evidences of indebtedness.
"Project" means the acquisition, construction, equipping, improving,
expanding and furnishing of any office building for the use of the system,
including any real estate or interest in real estate necessary or useful in
connection therewith.
"Cost of any project" includes all capital costs of the project, an
amount for expenses of issuing any bonds to finance such project, including
underwriter's discount and costs of bond insurance or other credit
enhancement, an amount necessary to provide for a reserve fund for the
payment of the principal of and interest on such bonds and an amount to pay
interest on such bonds for a period not to exceed the greater of 2 years or
a period ending 6 months after the estimated date of completion of the project.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-167.3)
Sec. 15-167.3. (Repealed).
(Source: P.A. 92-749, eff. 8-2-02. Repealed by P.A. 95-83, eff. 8-13-07.)
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(40 ILCS 5/15-167.4) Sec. 15-167.4. Eminent domain. Notwithstanding any other provision of this Code, any power granted under this Code to acquire property by condemnation or eminent domain is subject to, and shall be exercised in accordance with, the Eminent Domain Act.
(Source: P.A. 94-1055, eff. 1-1-07.) |
(40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
Sec. 15-168. To require information. (a) To require such information as shall be necessary for the proper
operation of the system from any participant or beneficiary or annuitant or from any current or former
employer of a participant or annuitant. Such information may include, but is not limited to, employment
contracts.
(b) When the System submits a request for information under subsection (a) of this Section, the
employer shall respond within 90 calendar days of the System's request. Beginning on the 91st
calendar day after the System's request, the System may assess a penalty of $250 per calendar
day until receipt of the information by the System, with a maximum penalty of $25,000. All
payments must be received within one calendar year after receipt of the information by the System or one
calendar year of reaching the maximum penalty of $25,000, whichever occurs earlier. If the
employer fails to make complete payment within the applicable timeframe, then the System may,
after giving notice to the employer, certify the delinquent amount to the State Comptroller, and
the Comptroller shall thereupon deduct the certified delinquent amount from State funds payable
to the employer and pay them instead to the System. (c) If a participant, beneficiary, or annuitant fails to provide any information that is necessary for
the calculation, payment, or finalization of any benefit under this Article within 90 calendar days
of the date of the System's request under subsection (a) of this Section, then the System may
immediately cease processing the benefit and may not pay any additional benefit payment to the participant, beneficiary, or annuitant until
the requested information is provided.(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15; 99-897, eff. 1-1-17.)
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(40 ILCS 5/15-168.1)
Sec. 15-168.1. Testimony and the production of records. The secretary of
the Board shall have
the power to issue subpoenas to compel the attendance of witnesses and the
production of documents and records, including law enforcement records
maintained by law enforcement agencies, in conjunction with: (1) the determination of employer payments required | ||
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(2) a disability
claim; (3) an administrative review proceeding; (4) an attempt to obtain information to assist in the | ||
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(5) obtaining any and all personal identifying | ||
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(6) the determination of the death of a benefit | ||
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(7) a felony forfeiture investigation. The fees of witnesses for attendance and travel shall be the same as the fees
of witnesses before the circuit courts of this State and shall be paid by the
party seeking the subpoena. The Board may apply to any circuit court in the
State for an order requiring compliance with a subpoena issued under this
Section. Subpoenas issued under this Section shall be subject to applicable
provisions of the Code of Civil Procedure.
(Source: P.A. 100-556, eff. 12-8-17.)
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(40 ILCS 5/15-168.2) Sec. 15-168.2. Audit of employers. (a) Beginning August 1, 2013, the System may audit the employment records and payroll records of all employers. When the System audits an employer, it shall specify the exact information it requires, which may include but need not be limited to the names, titles, and earnings history of every individual receiving compensation from the employer. If an employer is audited by the System, then the employer must provide to the System all necessary documents and records within 60 calendar days after receiving notification from the System. When the System audits an employer, it shall send related correspondence by certified mail.
(b) When the System submits a request for information under subsection (a) of this Section, the
employer shall respond within 60 calendar days of the System's request. Beginning on the 61st
calendar day after the System's request, the System may assess a penalty of $250 per calendar
day until receipt of the information by the System, with a maximum penalty of $25,000. All
payments must be received by the System within one calendar year after receipt of the
information by the System or one calendar year after reaching the maximum penalty of $25,000, whichever
occurs earlier. If the employer fails to make complete payment within the applicable timeframe,
then the System may, after giving notice to the employer, certify the delinquent amount to the
State Comptroller, and the Comptroller shall thereupon deduct the certified delinquent amount
from State funds payable to the employer and pay them instead to the System.(Source: P.A. 99-897, eff. 1-1-17.) |
(40 ILCS 5/15-169) (from Ch. 108 1/2, par. 15-169)
Sec. 15-169. To elect officers and appoint employees. To elect officers; to appoint a secretary and treasurer; to have a seal;
to employ and fix the rate of pay of such actuarial, legal, clerical, audit, medical, or other services, or corporate trustee
organized under the laws of this State with a capital of not less than
$1,000,000, or investment counsel and other persons as shall be required
for the efficient administration of the system.
All actions brought by or against the board shall be prosecuted or
defended by the Attorney General. If the board pursues a mandamus action under Section 15-156 of this Code as amended by Senate Bill No. 1 of the 98th General Assembly in the form passed by the General Assembly, then the board may select the counsel of their choice.
(Source: P.A. 98-92, eff. 7-16-13; 98-598, eff. 12-5-13.)
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(40 ILCS 5/15-170) (from Ch. 108 1/2, par. 15-170)
Sec. 15-170.
To maintain records and accounts.
To maintain a permanent record of all board proceedings which record
shall be available for examination by any participant, annuitant or officer
of the State of Illinois; to maintain a separate record for each individual
participant and annuitant; to maintain adequate accounting records which
shall at all times reflect the financial condition of the system, and such
additional data as shall be necessary for required calculations, valuations
and operation of the system; to have any of the foregoing records
photographed, microfilmed or otherwise reproduced, which photographs,
microfilms or reproductions shall be deemed original records for all
purposes, including introduction in evidence before all courts and
administrative agencies.
(Source: P.A. 77-616.)
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(40 ILCS 5/15-171) (from Ch. 108 1/2, par. 15-171)
Sec. 15-171. To receive, record and deposit payments.
To receive all payments made to the system; to make a record thereof;
and to cause all payments to be deposited immediately with the treasurer of
the system. The Board may delegate the actions prescribed under this Section to persons employed by the System.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-172) (from Ch. 108 1/2, par. 15-172)
Sec. 15-172. To certify warrants, checks, or drafts. To provide for certification on its behalf by its
secretary of all warrants, checks, or drafts upon its depository bank or corporate trustee in accordance with the by-laws and actions of
the board authorizing payments for benefits, expenses,
investments and debt service, including any redemption premium and
required deposits for any bonds of the board, out
of funds belonging to this system.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-173) (from Ch. 108 1/2, par. 15-173)
Sec. 15-173. To cause actuarial analyses.
To cause a general investigation to be made by a competent actuary, at
least once every 3 years, of the retirement, disability, separation,
mortality, interest, and employee earnings rates; to recommend, as a result
of each such investigation, the tables to be adopted for all required
actuarial calculations; and to cause an annual determination to be made by
a competent actuary of the liabilities and reserves of the system and an
annual determination of the amount and distribution of the required
employer contributions.
(Source: P.A. 99-232, eff. 8-3-15.)
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(40 ILCS 5/15-174) (from Ch. 108 1/2, par. 15-174)
Sec. 15-174.
To have an audit.
To cause an audit of the affairs of the system to be made annually by an
independent certified public accountant; and to submit a copy thereof to
the Governor of the State as soon as possible after the end of each fiscal
year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-175) (from Ch. 108 1/2, par. 15-175)
Sec. 15-175.
To provide statements.
To make available to the participants and annuitants a financial
statement including a summary of the report of the certified public
accountant; and to submit an individual statement specifying the
accumulations to the credit, as of the latest date practicable, of any
participant so requesting.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-176) (from Ch. 108 1/2, par. 15-176)
Sec. 15-176.
To accept gifts.
To accept any gift, grant or bequest of any money or securities; if the
grantor designates cash benefits for some or all of
the system's participants or annuitants, to carry
out such intent; if no such intent is designated,
to reduce the costs of the State.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-177) (from Ch. 108 1/2, par. 15-177)
Sec. 15-177. To make rules.
To establish by-laws; to fix the number necessary for a quorum; to set
up an executive committee of its members to exercise all powers of the
board except as limited by the board; to establish rules and regulations,
not inconsistent with the provisions of this Article, as are necessary for
the administration of the system; and generally to carry on any other
reasonable activities which are deemed necessary to accomplish the purposes
of this system, including without limitation the time and manner of reporting contributions by participants and, if applicable, contributions by employers.
(Source: P.A. 98-92, eff. 7-16-13.)
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(40 ILCS 5/15-177.5) (Section scheduled to be repealed on January 1, 2027) Sec. 15-177.5. Proxy voting. (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2. (b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at least three-fifths of the members of the Board, the State Treasurer shall be authorized to manage the domestic and international proxy voting activity for shares held directly by the System and execute required ballots on behalf of the System. The Board's consent granted under this Section may be revoked at any time upon the affirmative vote of a majority of the members of the Board. (c) When the State Treasurer is managing any proxy voting activity in accordance with subsection (b), the following shall apply: (1) the State Treasurer shall provide the Board with (i) comprehensive proxy voting reports on a quarterly basis and as requested by the Board and (ii) access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board; and (2) the Board may provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. (d) The State Treasurer shall act as a fiduciary to the System with regard to all aspects of the State Treasurer's management of the proxy voting activity as provided under subsection (b). (e) With respect to this Section, and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board is exempt from any conflicting statutory or common law obligations, including any fiduciary or co-fiduciary duties under this Article and Article 1. (f) With respect to this Section and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board, its staff, and the trustees of the Board shall not be liable for any damage or suits where damages are sought for negligent or wrongful acts alleged to have been committed in connection with the management of proxy voting activity as provided for under this Section. (g) In order to facilitate the State Treasurer's proxy voting activities under this Section and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. (h) This Section is repealed on January 1, 2027.
(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/15-177.6) Sec. 15-177.6. Fiduciary report. On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act. The report shall: (1) describe the Board's strategy as it relates to | ||
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(2) outline the process for regular assessment across | ||
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(3) disclose how each investment manager serving as a | ||
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(4) provide a comprehensive proxy voting report; (5) provide an overview of all corporate engagement | ||
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(6) include any other information the Board deems | ||
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(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/15-178) (from Ch. 108 1/2, par. 15-178)
Sec. 15-178. Duties of the State Comptroller and payroll officers. The State Comptroller and employer payroll officers, in drawing warrants
and checks for items of salary on payroll vouchers certified by
employers, shall draw such warrants and checks
to participating employees for the amount of salary or wages specified
for the period, and shall draw a warrant,
check, or electronic funds transfer to this system for the
total of the contributions required under Section 15-157. All
warrants and electronic funds transfers covering such contributions, and
a deduction register pertaining to the
payroll supplied by the employer, shall be
transmitted immediately to the board.
The Comptroller shall draw warrants or prepare direct deposit transmittals
upon the State Treasurer payable
from funds appropriated for the purposes specified in this Article upon
the presentation of vouchers approved by the board.
(Source: P.A. 95-83, eff. 8-13-07.)
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(40 ILCS 5/15-179) (from Ch. 108 1/2, par. 15-179)
Sec. 15-179.
Duties of Director of Central Management
Services. The Director of Central Management Services in considering payroll
vouchers required by
"An Act in relation to State Finance", approved June 10, 1919, as
amended, to be approved by the Department of Central Management
Services before warrants are
drawn by the State Comptroller shall approve such payroll vouchers
only if they are prepared in accordance with Section 15-181 and shall not
withhold approval of any payroll because it is prepared in accordance
with Section 15-181. The Director of Central Management Services, in
passing on payroll vouchers required by the "Personnel Code", approved July
18, 1955, as amended, shall approve the vouchers if they are prepared in
accordance with Section 15-181.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
Sec. 15-181.
Duties of employers.
(a) Each employer, in preparing payroll vouchers for participating
employees, shall indicate, in addition to other information: (1) the amount of
employee contributions and survivors insurance contributions required under
Section 15-157, (2) the gross earnings payable to each employee, and (3) the
total of all contributions required under Section 15-157.
(b) Each employer, in drawing warrants or checks against trust or
federal funds for items of salary on payroll vouchers certified by employers,
shall draw such warrants or checks to participating employees for the amount
of cash salary or wages specified for the period, and shall draw a warrant or
check to this system for the total of the contributions required under Section
15-157. The warrant or check drawn to this system, together with the
additional copy of the payroll supplied by the employer, shall be transmitted
immediately to the board.
(c) The City of Champaign and the City of Urbana, as employers of persons
who participate in this System pursuant to subsection (h) of Section 15-107,
shall each collect and transmit to the System from each payroll the employee
contributions required under Section 15-157, together with such payroll
documentation as the Board may require, at the time that the payroll is paid.
(Source: P.A. 90-576, eff. 3-31-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-183) (from Ch. 108 1/2, par. 15-183)
Sec. 15-183.
Authorizations.
Payment of salary as prescribed by law
or as contracted by an employer shall together with the rights in the
benefits provided by this system, be a full and complete discharge of
all claims of payments for service rendered by an employee during the
period covered by the payment.
(Source: P.A. 81-1165.)
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(40 ILCS 5/15-184) (from Ch. 108 1/2, par. 15-184)
Sec. 15-184.
Undivided interest.
The assets of the system shall be invested as one fund, and no
particular person, group of persons or entity shall have any right in any
specific security or property or in any item of cash, other than an
undivided interest in the whole except as otherwise provided in this Article.
The changes to this Section and Sections 15-155, 15-167 and 15-172 made
by this amendatory Act of 1989, and Section 15-167.2, shall be applicable
to all participants, annuitants and beneficiaries now or hereafter covered
by this Article.
(Source: P.A. 86-1034.)
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(40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
Sec. 15-185.
Annuities, etc., exempt.
The accumulated employee and
employer contributions shall be held in trust for each participant and
annuitant, and this trust shall be treated as a spendthrift trust. Except
as provided in this Article, all cash, securities and other property of
this system, all annuities and other benefits payable under this Article
and all accumulated credits of participants and annuitants in
this system and the right of any person to receive an annuity or other
benefit under this Article, or a refund of contributions, shall not be
subject to judgment, execution, garnishment,
attachment, or other seizure by process, in bankruptcy or otherwise, nor
to sale, pledge, mortgage or other alienation, and shall not be assignable.
The board, however, may deduct from the benefits, refunds and credits
payable to the participant, annuitant or beneficiary, amounts owed by the
participant or annuitant to the system. No attempted sale, transfer or
assignment of any benefit, refund or credit shall prevent the right of the
board to make the deduction and offset authorized in this Section. Any
participant or annuitant may authorize the board to deduct from disability
benefits or annuities, premiums due under any group hospital-surgical insurance
program which is sponsored or approved by any employer; however, the deductions
from disability benefits may not begin prior to 6 months after the disability
occurs.
A person receiving an annuity or benefit under this Article may also
authorize withholding from that annuity or benefit for the purposes
enumerated in and in accordance with the provisions of the State Salary and
Annuity Withholding Act.
This Section is not intended to, and does not, affect the calculation of
any benefit under this Article or dictate how or to what extent employee or
employer contributions are to be taken into account in calculating benefits.
This amendatory Act of the 91st General Assembly is a clarification of
existing law and applies to every participant and annuitant without regard to
whether status as an employee terminates before the effective date of this
amendatory Act.
Public Act 86-273 is a clarification of
existing law and shall be applicable to every participant and annuitant without
regard to whether status as an employee terminates before the effective date of
that Act.
(Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97; 90-511, eff.
8-22-97; 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/15-185.5) Sec. 15-185.5. Accelerated pension benefit payment in lieu of any pension benefit. (a) As used in this Section: "Eligible person" means a person who: (1) has terminated service; (2) has accrued sufficient service credit to be | ||
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(3) has not received any retirement annuity under | ||
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(4) has not made the election under Section 15-185.6; | ||
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(5) is not a participant in the self-managed plan | ||
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"Implementation date" means the earliest date upon which the Board authorizes eligible persons to begin irrevocably electing the accelerated pension benefit payment option under this Section. The Board shall endeavor to make such participation available as soon as possible after June 4, 2018 (the effective date of Public Act 100-587) and shall establish an implementation date by Board resolution. "Pension benefit" means the benefits under this Article, or Article 1 as it relates to those benefits, including any anticipated annual increases, that an eligible person is entitled to upon attainment of the applicable retirement age. "Pension benefit" also includes applicable survivors benefits, disability benefits, or disability retirement annuity benefits. (b) Beginning on the implementation date, the System shall offer each eligible person the opportunity to irrevocably elect to receive an amount determined by the System to be equal to 60% of the present value of his or her pension benefits in lieu of receiving any pension benefit. The System shall calculate, using actuarial tables and other assumptions adopted by the Board, the present value of pension benefits for each eligible person upon his or her request in writing to the System. The System shall not perform more than one calculation per eligible member in a State fiscal year. The offer shall specify the dollar amount that the eligible person will receive if he or she so elects and shall expire when a subsequent offer is made to an eligible person. The System shall make a good faith effort to contact every eligible person to notify him or her of the election. Beginning on the implementation date and until June 30, 2026, an eligible person may irrevocably elect to receive an accelerated pension benefit payment in the amount that the System offers under this subsection in lieu of receiving any pension benefit. A person who elects to receive an accelerated pension benefit payment under this Section may not elect to proceed under the Retirement Systems Reciprocal Act with respect to service under this Article. (c) Upon payment of an accelerated pension benefit payment under this Section, the person forfeits all accrued rights and credits in the System and no other benefit shall be paid under this Article based on those forfeited rights and credits, including any retirement, survivor, or other benefit; except that to the extent that participation, benefits, or premiums under the State Employees Group Insurance Act of 1971 are based on the amount of service credit, the terminated service credit shall be used for that purpose. (d) If a person who has received an accelerated pension benefit payment under this Section returns to participation under this Article, any benefits under the System earned as a result of that return to participation shall be based solely on the person's credits and creditable service arising from the return to participation. Upon return to participation, the person shall be considered a new employee subject to all the qualifying conditions for participation and eligibility for benefits applicable to new employees. (d-5) The accelerated pension benefit payment may not be repaid to the System, and the forfeited rights and credits may not under any circumstances be reinstated. (e) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be deposited into a tax qualified retirement plan or account identified by the eligible person at the time of the election. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (f) The System shall submit vouchers to the State Comptroller for the payment of accelerated pension benefit payments under this Section. The State Comptroller shall pay the amounts of the vouchers from the State Pension Obligation Acceleration Bond Fund to the System, and the System shall deposit the amounts into the applicable tax qualified plans or accounts. (g) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (h) No provision of this Section shall be interpreted in a way that would cause the System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.) |
(40 ILCS 5/15-185.6) Sec. 15-185.6. Accelerated pension benefit payment for a reduction in an annual increase to a retirement annuity and an annuity benefit payable as a result of death. (a) As used in this Section: "Accelerated pension benefit payment" means a lump sum payment equal to 70% of the difference of: (i) the present value of the automatic annual increases to a Tier 1 member's retirement annuity, including any increases to any annuity benefit payable as a result of his or her death, using the formula applicable to the Tier 1 member; and (ii) the present value of the automatic annual increases to the Tier 1 member's retirement annuity, including any increases to any annuity benefit payable as a result of his or her death, using the formula provided under subsection (b-5). "Eligible person" means a person who: (1) is a Tier 1 member; (2) has submitted an application for a retirement | ||
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(3) meets the age and service requirements for | ||
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(4) has not received any retirement annuity under | ||
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(5) has not made the election under Section 15-185.5; | ||
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(6) is not a participant in the self-managed plan | ||
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"Implementation date" means the earliest date upon which the Board authorizes eligible persons to begin irrevocably electing the accelerated pension benefit payment option under this Section. The Board shall endeavor to make such participation available as soon as possible after June 4, 2018 (the effective date of Public Act 100-587) and shall establish an implementation date by Board resolution. (b) Beginning on the implementation date and until June 30, 2026, the System shall implement an accelerated pension benefit payment option for eligible persons. The System shall calculate, using actuarial tables and other assumptions adopted by the Board, an accelerated pension benefit payment amount for an eligible person upon his or her request in writing to the System and shall offer that eligible person the opportunity to irrevocably elect to have his or her automatic annual increases in retirement annuity and any annuity benefit payable as a result of his or her death calculated in accordance with the formula provided in subsection (b-5) in exchange for the accelerated pension benefit payment. The System shall not perform more than one calculation under this Section per eligible person in a State fiscal year. The election under this subsection must be made before any retirement annuity is paid to the eligible person, and the eligible survivor, spouse, or contingent annuitant, as applicable, must consent to the election under this subsection. (b-5) Notwithstanding any other provision of law, the retirement annuity of a person who made the election under subsection (b) shall be increased annually beginning on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later, and any annuity benefit payable as a result of his or her death shall be increased annually beginning on: (1) the January 1 occurring on or after the commencement of the annuity if the deceased Tier 1 member died while receiving a retirement annuity; or (2) the January 1 occurring after the first anniversary of the commencement of the benefit. Each annual increase shall be calculated at 1.5% of the originally granted retirement annuity or annuity benefit payable as a result of the Tier 1 member's death. (c) If an annuitant who has received an accelerated pension benefit payment returns to participation under this Article, the calculation of any future automatic annual increase in retirement annuity under subsection (c) of Section 15-139 shall be calculated in accordance with the formula provided in subsection (b-5). (c-5) The accelerated pension benefit payment may not be repaid to the System. (d) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be deposited into a tax qualified retirement plan or account identified by the eligible person at the time of election. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (d-5) The System shall submit vouchers to the State Comptroller for the payment of accelerated pension benefit payments under this Section. The State Comptroller shall pay the amounts of the vouchers from the State Pension Obligation Acceleration Bond Fund to the System, and the System shall deposit the amounts into the applicable tax qualified plans or accounts. (e) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (f) No provision of this Section shall be interpreted in a way that would cause the System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.) |
(40 ILCS 5/15-186) (from Ch. 108 1/2, par. 15-186)
Sec. 15-186. Fraud.
Any person who knowingly makes any false statement, or falsifies or
permits to be falsified any record or records of this system, in any
attempt to defraud the system or to mislead or defraud an employer with respect to employment of an annuitant under Section 15-139.5, is guilty of a Class A misdemeanor.
(Source: P.A. 97-968, eff. 8-16-12.)
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(40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)
Sec. 15-186.1. Mistake in benefit calculation and overpayment recovery. (a) Mistake in benefit calculation. If the System mistakenly sets any
benefit at an incorrect amount, it shall recalculate the benefit as soon as
may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump
sum payment to the recipient of an amount equal to the difference between
the benefits that should have been paid and those actually paid, plus
interest at the effective rate from the date the unpaid amounts accrued to
the date of payment.
If the benefit was mistakenly set too high, the System may recover the
amount overpaid from the recipient thereof, plus interest at the effective
rate from the date of overpayment to the date of recovery, either directly
or by deducting
such amount from the remaining benefits payable to the recipient. However,
if (1) the amount of the benefit was mistakenly set too high, and (2) the
error was undiscovered for 3 years or longer, and (3) the error was not the
result of incorrect information supplied or information omitted by the affected member or
beneficiary, then upon discovery of the mistake the benefit shall be
adjusted to the correct level, but the recipient of the benefit need not
repay to the System the excess amounts received in error.
(b) Overpayment recovery. Regardless of the date an overpayment is discovered, if the System determines that the overpayment has occurred for any reason other than those specified in subsection (a) of this Section, the System may recover the overpayment from the recipient thereof or the recipient's estate, plus interest at the effective rate from the date of the overpayment to the date of recovery, either directly or by deducting such amount from the remaining benefits payable to the recipient or the recipient's estate, or by any other means available to the System. This subsection (b) applies to overpayments occurring before, on, or after the effective date of this amendatory Act of the 102nd General Assembly. (Source: P.A. 102-746, eff. 5-6-22.)
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(40 ILCS 5/15-187) (from Ch. 108 1/2, par. 15-187)
Sec. 15-187. Felony conviction. None of the benefits provided under this
Article shall be paid to any person who is convicted of any felony relating to
or arising out of or in connection with a person's service as an employee from which the benefit derives.
This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor
to preclude the right to a refund. The changes made to this Section by this amendatory Act of the 100th General Assembly shall not impair any contract or vested right acquired prior to the effective date of this amendatory Act of the 100th General Assembly. No refund paid to any person who is
convicted of a felony relating to or arising out of or in connection with the person's service as an employee shall include employer contributions or
interest or, in the case of the self-managed plan authorized under Section
15-158.2, any employer contributions or investment return on such employer
contributions.
All persons entering service subsequent to July 9, 1955 shall be deemed to
have consented to the provisions of this Section as a condition of coverage, and all participants entering service on or subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/15-188) (from Ch. 108 1/2, par. 15-188)
Sec. 15-188.
Administrative review.
The Administrative Review Law, and all
amendments and modifications thereof, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the judicial review
of final administrative decisions of the board of trustees hereunder. The
term "administrative decision" is defined as in Section 3-101 of the Code
of Civil Procedure. The venue for actions brought under the
Administrative Review Law shall be Champaign County.
(Source: P.A. 87-1265.)
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(40 ILCS 5/15-189) (from Ch. 108 1/2, par. 15-189)
Sec. 15-189.
No monetary gain on investments.
Except as otherwise herein provided, no member or employee of the board
shall have any direct interest in the income, gains or profits of any
investments made by the board, or receive any pay or emolument for services
in connection with any investment. No member or employee of the board shall
become an endorser or surety, or in any manner an obligor for money loaned
or borrowed from the system. A violation of any of these restrictions shall
constitute a Class 4 felony.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
Sec. 15-190.
Persons under legal disability.
If a person is under legal
disability when any right or privilege accrues to him or her under this
Article, a guardian may be appointed pursuant to law, and may, on behalf of
such person, claim and exercise any such right or privilege with the same
force and effect as if the person had not been under a legal disability and
had claimed or exercised such right or privilege.
If a person's application for benefits or a physician's certificate
on file with the board shows that the person is under a legal disability, the
benefits payable under this Article may be paid (1) directly to the person
under legal
disability, (2) to any person who has legally qualified and is acting as
guardian of the property of the person under legal disability, (3) to either
parent of the person under legal disability or any adult person with whom the
person under legal disability may at the time be living, provided only that
such parent or adult person to whom any amount is to be paid shall have advised
the board in writing that such amount will be held or used for the benefit of
the person under legal disability, or (4) to the trustee of any
trust created for the sole benefit of the person under legal disability while
that person is living, provided only that
the trustee of such trust to whom any amount is to be paid shall have advised
the board in writing that such amount will be held or used for the benefit of
the person under legal disability. The system shall not be required to
determine the validity of the trust or any of the terms thereof. The
representation of the trustee that the trust meets the requirements of this
Section shall be conclusive as to the system. The written receipt of the
person under legal disability or the other person who receives such payment
shall be an absolute discharge of the system's liability in
respect of the amount so paid.
(Source: P.A. 93-347, eff. 7-24-03.)
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(40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
Sec. 15-191.
Payment of benefits to minors.
If any benefits under this Article become payable to a minor, the board
may make payment (1) directly to the minor, (2) to any person who has
legally qualified and is acting as guardian of the minor's person or
property in any jurisdiction, (3) to either parent of the minor or to
any adult person with whom the minor may at the time be living, provided
only that the parent or other person to whom any amount is to be paid shall
have advised the board in writing that such amount
will be held or used for the benefit of the minor, or (4) to the trustee of
any trust created for the sole benefit of the
minor while that minor is living, provided only that the trustee of such trust
to whom any amount is to be paid shall have advised the board in writing that
such amount will be held or used for the benefit of the minor. The system
shall not be required to determine the validity of the trust or any of the
terms thereof. The representation of the trustee that the trust meets the
requirements of this Section shall be conclusive as to the system. The
written receipt of the minor, parent, trustee, or other person who receives
such payment shall be an absolute discharge of the system's liability in
respect of the amount so paid.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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(40 ILCS 5/15-192) (from Ch. 108 1/2, par. 15-192)
Sec. 15-192.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code
as now enacted and hereafter amended, is hereby adopted and shall apply to
and govern the operations of this system. "An Act to provide for reciprocal
allowance of credits for retirement, death and disability benefits between
the State Employees' Retirement System of Illinois, the University
Retirement System of Illinois and the Teachers' Retirement System of the
State of Illinois, and for the transfer of certain funds between said
systems", approved August 8, 1947, and repealed in 1963, is superseded
by the provisions of the
"Retirement Systems Reciprocal Act", except insofar as said Act of August
8, 1947, may govern rights of persons receiving benefits or who may
hereafter receive benefits by virtue of said Act.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-193) (from Ch. 108 1/2, par. 15-193)
Sec. 15-193.
Reinsurance.
The board may at any time that it appears desirable and advantageous,
contract with any recognized and solvent legal reserve life insurance
company for the payment of any benefits specified in this Article, provided
such contract applies alike to all persons of the same class and does not
cause any discrimination or create conditions which will substantially
limit or reduce the equity or security of any other participant or
annuitant in the system at the time. If any such contract is entered into,
the board may certify vouchers for the payment to any such contractor out
of funds belonging to this system of the amounts payable under such
contracts.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-196) (from Ch. 108 1/2, par. 15-196)
Sec. 15-196.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/15-197) (from Ch. 108 1/2, par. 15-197)
Sec. 15-197.
Savings Clause.
The repeal or amendment of any Section
or provision of this Article by this amendatory Act of 1984 shall not affect
or impair any pension, benefits, rights or credits accrued or in effect prior thereto.
(Source: P.A. 83-1440.)
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(40 ILCS 5/15-198) Sec. 15-198. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 100-23, Public Act 100-587, Public Act 100-769, Public Act 101-10, Public Act 101-610, Public Act 102-16, Public Act 103-80, or Public Act 103-548. (b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section. (c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made. (d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law. (e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23; 103-548, eff. 8-11-23; 103-605, eff. 7-1-24.) |
(40 ILCS 5/15-200)
Sec. 15-200. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/15-201)
Sec. 15-201. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/15-202) Sec. 15-202. Optional deferred compensation plan. (a) As soon as practicable after August 10, 2018 (the effective date of Public Act 100-769), the System shall offer a deferred compensation plan that is eligible under Section 457(b) of the Internal Revenue Code of 1986, as amended, to participating employees of the System employed by employers described in Section 15-106 of this Code that qualify as eligible employers under Section 457(e)(1)(A) of the Internal Revenue Code of 1986, as amended. Such eligible employers shall adopt the plan with an effective date no later than September 1, 2021. Participating employees may voluntarily elect to make elective deferrals to the eligible deferred compensation plan. Eligible employers may make optional employer contributions to the plan on behalf of participating employees, which contributions may be maintained, increased, reduced, or eliminated at the discretion of the employer from plan year to plan year. The plan shall collect voluntary employee and optional employer contributions into an account for each participant and shall offer investment options to the participant. The plan under this Section shall be operated in full compliance with any applicable State and federal laws, and the System shall utilize generally accepted practices in creating and maintaining the plan for the best interest of the participants. In administering the deferred compensation plan, the System shall require that the deferred compensation plan recordkeeper agree that, in performing services with respect to the deferred compensation plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the deferred compensation plan or the participants in the deferred compensation plan to solicit the participants in the deferred compensation plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the deferred compensation plan; and (ii) will not promote, recommend, endorse, or solicit participants in the deferred compensation plan to purchase any financial products or services outside of the deferred compensation plan, except that links to parts of the recordkeeper's website that are generally available to the public, are about commercial products, and may be encountered by a participant in the regular course of navigating the recordkeeper's website will not constitute a violation of this item (ii). The System may use funds from the employee and employer contributions to defray any and all costs of creating and maintaining the plan. The System shall produce an annual report on the participation in the plan and shall make the report public.
(b) The System shall automatically enroll in the eligible deferred compensation plan any employee of an eligible employer who first becomes a participating employee of the System on or after July 1, 2023 under an eligible automatic contribution arrangement that is subject to Section 414(w) of the Internal Revenue Code of 1986, as amended, and the United States Department of Treasury regulations promulgated thereunder. An employee who is automatically enrolled under this subsection (b) shall have 3% of his or her compensation, as defined by the plan, for each pay period deferred on a pre-tax basis into his or her account, subject to any contribution limits applicable to the plan. The Board may increase the default percentage of compensation deferred under this subsection (b). An employee shall have 30 days from the date on which the System provides the notice required under Section 414(w) of the Internal Revenue Code of 1986, as amended, to elect to not participate in the eligible deferred compensation plan or to elect to increase or reduce the initial amount of elective deferrals made to the plan. In the absence of such affirmative election, the employee shall be automatically enrolled in the plan on the first day of the calendar month, or as soon as administratively practicable thereafter, following the 30th day from the date on which the System provides the required notice. An employee who has been automatically enrolled in the plan under this subsection (b) may elect, within 90 days of enrollment, to withdraw from the plan and receive a refund of amounts deferred, adjusted by applicable earnings and fees. An employee making such an election shall forfeit all employer matching contributions, if any, made with respect to such refunded elective deferrals and such forfeited amounts shall be used to defray plan expenses. Any refunded elective deferrals shall be included in the employee's gross income for the taxable year in which the refund is issued. (c) The System may provide for one or more automatic contribution arrangements, which shall comply with all applicable Internal Revenue Service rules and regulations, in conjunction with or in lieu of the eligible automatic contribution arrangement under subsection (b), for participating employees of eligible employers whose annual earnings are limited by application of subsection (b) of Section 15-111 of this Code. The amount of elective deferrals made for the employee each pay period under an automatic contribution arrangement shall equal the default percentage specified by resolution of the Board multiplied by the employee's compensation as defined by the plan, subject to any contribution limits applicable to the plan, and shall be made on a pre-tax basis. An employee subject to this subsection (c) shall have 30 days from the date on which the System provides written notice to the employee to elect to not participate in the eligible deferred compensation plan or to elect to increase or reduce the amount of initial elective deferrals made to the plan. In the absence of such affirmative election, the employee shall be automatically enrolled in the plan beginning the first day of the calendar month, or as soon as administratively practicable thereafter, following the 30th day from the date on which the System provides the required notice. (d) The System may provide that the default percentage for any employee automatically enrolled in the eligible deferred compensation plan under subsection (b) or (c) be increased by a specified percentage each plan year after the plan year in which the employee is automatically enrolled in the plan. The amount of automatic annual increases in any plan year shall not exceed 1% of compensation as defined by the plan. (e) The changes made to this Section by this amendatory Act of the 102nd General Assembly are corrections of existing law and are intended to be retroactive to the effective date of Public Act 100-769, notwithstanding Section 1-103.1 of this Code. (Source: P.A. 102-540, eff. 8-20-21; 103-552, eff. 8-11-23.) |
(40 ILCS 5/Art. 16 heading) ARTICLE 16.
TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
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(40 ILCS 5/16-101) (from Ch. 108 1/2, par. 16-101)
Sec. 16-101.
Creation of system.
Effective July 1, 1939,
there is created the "Teachers' Retirement System of the State of
Illinois" for the purpose of providing retirement annuities and other
benefits for teachers, annuitants and beneficiaries. All of its business
shall be transacted, its funds invested, and its assets held in such name.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-102) (from Ch. 108 1/2, par. 16-102)
Sec. 16-102.
Application of Article.
This Article shall not apply to cities and school districts of more than
500,000 population as shown by the last preceding Federal census.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-103) (from Ch. 108 1/2, par. 16-103)
Sec. 16-103.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 16-104 through 16-122.1, except
when the context
otherwise requires.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-104) (from Ch. 108 1/2, par. 16-104)
Sec. 16-104.
Retirement system or system.
"Retirement system" or "system": The Teachers' Retirement System of the
State of Illinois.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-105) (from Ch. 108 1/2, par. 16-105)
Sec. 16-105.
Board.
"Board": The board of trustees of the retirement system
created under this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
Sec. 16-106. Teacher. "Teacher": The following individuals, provided
that, for employment prior to July 1, 1990, they are employed on a
full-time basis, or if not full-time, on a permanent and continuous basis
in a position in which services are expected to be rendered for at least
one school term:
(1) Any educational, administrative, professional or | ||
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(2) Any educational, administrative, professional or | ||
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(3) Any regional superintendent of schools, assistant | ||
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(4) Any employee of a school board association | ||
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(5) Any person employed by the retirement system
who:
(i) was an employee of and a participant in the | ||
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(ii) becomes an employee of the system on or | ||
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(6) Any educational, administrative, professional or | ||
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(7) Any educational, administrative, professional or | ||
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(8) Any officer or employee of a statewide teacher | ||
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(9) Any educational, administrative, professional, or | ||
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(10) Any person employed, on the effective date of | ||
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An annuitant receiving a retirement annuity under this Article who is employed by a board of education
or other employer as permitted under Section 16-118
or 16-150.1 is not a "teacher" for purposes of this Article. A person who
has received a single-sum retirement benefit under Section 16-136.4 of this
Article is not a "teacher" for purposes of this Article. For purposes of this Article, "teacher" does not include a person employed by an entity that provides substitute teaching services under Section 2-3.173 of the School Code and is not a school district.
(Source: P.A. 101-502, eff. 8-23-19; 102-210, eff. 1-1-22.)
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(40 ILCS 5/16-106.1) (from Ch. 108 1/2, par. 16-106.1)
Sec. 16-106.1.
Full-time teacher.
"Full-time teacher": Any teacher
employed 4 or more clock hours per day, 5 days per week.
(Source: P.A. 86-273.)
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(40 ILCS 5/16-106.2) (from Ch. 108 1/2, par. 16-106.2)
Sec. 16-106.2.
Part-time teacher.
"Part-time teacher": Any teacher
employed less than 4 clock hours per day or less than 5 days per week.
(Source: P.A. 86-273.)
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(40 ILCS 5/16-106.3) (from Ch. 108 1/2, par. 16-106.3)
Sec. 16-106.3. Substitute teacher. "Substitute teacher": Any teacher
employed on a temporary basis to replace another teacher. "Substitute teacher" does not include an individual employed by an entity that provides substitute teaching services under Section 2-3.173 of the School Code and is not a school district.
(Source: P.A. 100-813, eff. 8-13-18.)
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(40 ILCS 5/16-106.4)
Sec. 16-106.4. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-587, eff. 6-4-18.)
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(40 ILCS 5/16-106.6) Sec. 16-106.6. Teacher certification. For purposes of this Article, a teacher shall be deemed to be certificated if he or she is required to be licensed by the Illinois State Board of Education.
(Source: P.A. 98-92, eff. 7-16-13.) |
(40 ILCS 5/16-106.41) Sec. 16-106.41. Tier 1 member. "Tier 1 member": A member under this Article who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code.
(Source: P.A. 100-587, eff. 6-4-18.) |
(40 ILCS 5/16-107) (from Ch. 108 1/2, par. 16-107)
Sec. 16-107.
Member.
"Member": any teacher included in the membership of this system during
such membership.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-108) (from Ch. 108 1/2, par. 16-108)
Sec. 16-108.
Prior service.
"Prior service": Service rendered prior to July 1, 1939.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-109) (from Ch. 108 1/2, par. 16-109)
Sec. 16-109.
Membership service.
"Membership service": Service rendered on and after July 1, 1939.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-110) (from Ch. 108 1/2, par. 16-110)
Sec. 16-110.
Creditable service.
"Creditable service": The total of prior service and membership service
for which credit is allowed under this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-111) (from Ch. 108 1/2, par. 16-111)
Sec. 16-111.
Beneficiary.
"Beneficiary": Any person, organization or other entity designated in
writing to receive or any person receiving a survivor benefit or reversionary
annuity provided by this system or granted under any superseded retirement
fund or system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-111.1) (from Ch. 108 1/2, par. 16-111.1)
Sec. 16-111.1.
Annuitant.
"Annuitant": Any person retired on a retirement
annuity or disability retirement annuity under this system or any superseded
retirement fund or system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-112) (from Ch. 108 1/2, par. 16-112)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-112. Regular interest. "Regular interest": (a) For computations
based upon prior service credits, interest at the following rates compounded
annually: For periods prior to July 1, 1947, 4% per year; for periods from
July 1, 1947 through June 30, 1971, 3% per year; for periods from July 1,
1971 through June 30, 1977 at the rate of 4% per year; for periods from
July 1, 1977 through June 30, 1981, 5% per year; for periods after June
30, 1981 through June 30, 2014, 6% per year.
(b) For computations based upon membership service credits, interest at
the following rates, compounded annually: For periods prior to July 1,
1971, 3% per year; for periods from July 1, 1971 through June 30, 1977, 4%
per year; for periods from July 1, 1977 through June 30, 1981, 5% per year;
for periods after June 30, 1981 through June 30, 2014, 6% per year.
(c) For a fiscal year that begins on or after July 1, 2014, for all computations, the interest rate of 30-year United States Treasury bonds on July 1 of that given fiscal year, plus 75 basis points. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-112.
Regular interest.
"Regular interest": (a) For computations
based upon prior service credits, interest at the following rates compounded
annually: For periods prior to July 1, 1947, 4% per year; for periods from
July 1, 1947 through June 30, 1971, 3% per year; for periods from July 1,
1971 through June 30, 1977 at the rate of 4% per year; for periods from
July 1, 1977 through June 30, 1981, 5% per year; for periods after June
30, 1981, 6% per year.
(b) For computations based upon membership service credits, interest at
the following rates, compounded annually: For periods prior to July 1,
1971, 3% per year; for periods from July 1, 1971 through June 30, 1977, 4%
per year; for periods from July 1, 1977 through June 30, 1981, 5% per year;
for periods after June 30, 1981, 6% per year.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-113) (from Ch. 108 1/2, par. 16-113)
Sec. 16-113.
Accumulated contributions.
"Accumulated contributions": The sum of all contributions to this
System made by or on behalf of a member in respect to membership
service and credited to his or her account in the Benefit Trust Reserve,
together with regular interest thereon.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-114) (from Ch. 108 1/2, par. 16-114)
Sec. 16-114.
Annuity.
"Annuity": A series of monthly payments.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118)
Sec. 16-118. Retirement. "Retirement": Entry upon a retirement annuity
or receipt of a single-sum retirement benefit granted under this Article
after termination of active service as a teacher.
(a) An annuitant receiving a retirement annuity other than a disability
retirement annuity may accept employment as a teacher from a school board
or other employer specified in Section 16-106 without impairing retirement
status, if that employment: (1) is not within the school year during which | ||
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(2) does not exceed the following: (i) before July 1, 2001, 100 paid days or 500 | ||
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(ii) during the period beginning July 1, 2001 | ||
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(iii) during the period beginning July 1, 2011 | ||
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(iv) beginning July 1, 2018 through June 30, | ||
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(v) (blank); and (vi) beginning July 1, 2026, 100 paid days or 500 | ||
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Where
such permitted employment is partly on a daily and partly on an hourly basis,
a day shall be considered as 5 hours.
(b) Subsection (a) does not apply to an annuitant who returns to teaching
under the program established in Section 16-150.1, for the duration of his or
her participation in that program.
(Source: P.A. 102-537, eff. 8-20-21; 102-709, eff. 4-22-22; 103-88, eff. 6-9-23; 103-525, eff. 8-11-23.)
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(40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-121. Salary. "Salary": The actual compensation received by a teacher during any
school year and recognized by the system in accordance with
rules of the board. For purposes of this Section, "school year" includes
the regular school term plus any additional period for which a teacher is
compensated and such compensation is recognized by the rules of the board.
In the case of a person who first becomes a member on or after
the effective date of this amendatory Act of the 98th General
Assembly, "salary" shall not include any payment for unused
sick or vacation time. Notwithstanding any other provision of this Code, the
annual salary of a Tier 1 member for the purposes of this Code shall
not exceed, for periods of service on or after the effective
date of this amendatory Act of the 98th General Assembly, the
greater of (i) the annual limitation determined from time to time
under subsection (b-5) of Section 1-160 of this Code, (ii) the annualized
salary of the Tier 1 member on that effective date, or (iii) the annualized salary of the Tier 1 member immediately preceding the expiration, renewal, or amendment of an employment contract or collective bargaining agreement in effect on that effective date. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-121.
Salary.
"Salary": The actual compensation received by a teacher during any
school year and recognized by the system in accordance with
rules of the board. For purposes of this Section, "school year" includes
the regular school term plus any additional period for which a teacher is
compensated and such compensation is recognized by the rules of the board.
(Source: P.A. 84-1028.)
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(40 ILCS 5/16-122) (from Ch. 108 1/2, par. 16-122)
Sec. 16-122.
Actuarial equivalent.
"Actuarial equivalent": A benefit or sum of equal value to another
benefit or sum when computed on the basis of mortality tables
and interest rates adopted by the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-122.1) (from Ch. 108 1/2, par. 16-122.1)
Sec. 16-122.1.
School term.
"School term": The period specified under
Section 24-1 of the School Code.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-123) (from Ch. 108 1/2, par. 16-123)
Sec. 16-123.
Membership of System.
(a) The membership of this System shall be composed of all teachers
employed after June 30, 1939 who become members as a condition of
employment on the date they become teachers. Membership shall continue
until the date a member becomes an annuitant, dies, accepts a single-sum
retirement benefit, accepts a refund, or forfeits the rights to a refund.
(b) This Article does not apply to any person first employed after June
30, 1979 as a public service employment program participant under the Federal
Comprehensive Employment and Training Act and whose wages or fringe benefits
are paid in whole or in part by funds provided under such Act.
(Source: P.A. 87-11.)
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(40 ILCS 5/16-125) (from Ch. 108 1/2, par. 16-125)
Sec. 16-125.
Creditable service - statement of services.
A member claiming service credit shall file a detailed statement covering
the period for which credit is claimed. As soon as practicable after the
filing of a statement of service credits, the system shall investigate
the validity of the claims for service specified therein. Under rules of
the board, and on the basis of verified service, the board shall furnish
the member a statement of the accumulated service arising therefrom, the
required payment to be made and other conditions to be fulfilled by the
member in order to receive the creditable service. The member may, within
one year from the date of issuance of such statement, request the board
to modify or correct the statement.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127) Sec. 16-127. Computation of creditable service. (a) Each member shall receive regular credit for all service as a teacher from the date membership begins, for which satisfactory evidence is supplied and all contributions have been paid. (b) The following periods of service shall earn optional credit and each member shall receive credit for all such service for which satisfactory evidence is supplied and all contributions have been paid as of the date specified: (1) Prior service as a teacher. (2) Service in a capacity essentially similar or | ||
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(3) Any periods immediately following teaching | ||
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The changes to this Section and Section 16-128 | ||
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Credit for military service shall be determined as | ||
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The total period of military service for which credit | ||
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(4) Any periods served as a member of the General | ||
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(5)(i) Any periods for which a teacher, as defined in | ||
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Any qualified member or annuitant may apply for | ||
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Optional credit may be purchased under this | ||
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The change in this paragraph made by Public Act | ||
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(6) Any days of unused and uncompensated accumulated | ||
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Credit for sick leave shall, at retirement, be | ||
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(7) Periods prior to February 1, 1987 served as an | ||
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(8) Service as a substitute teacher for work | ||
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(9) Service as a part-time teacher for work performed | ||
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(10) Up to 2 years of employment with Southern | ||
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(11) Periods of service as a student teacher as | ||
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(b-1) A member may establish optional credit for up to 2 years of service as a teacher or administrator employed by a private school recognized by the Illinois State Board of Education, provided that the teacher (i) was certified under the law governing the certification of teachers at the time the service was rendered, (ii) applies in writing on or before June 30, 2028, (iii) supplies satisfactory evidence of the employment, (iv) completes at least 10 years of contributing service as a teacher as defined in Section 16-106, and (v) pays the contribution required in subsection (d-5) of Section 16-128. The member may apply for credit under this subsection and pay the required contribution before completing the 10 years of contributing service required under item (iv), but the credit may not be used until the item (iv) contributing service requirement has been met. (c) The service credits specified in this Section shall be granted only if: (1) such service credits are not used for credit in any other statutory tax-supported public employee retirement system other than the federal Social Security program; and (2) the member makes the required contributions as specified in Section 16-128. Except as provided in subsection (b-1) of this Section, the service credit shall be effective as of the date the required contributions are completed. Any service credits granted under this Section shall terminate upon cessation of membership for any cause. Credit may not be granted under this Section covering any period for which an age retirement or disability retirement allowance has been paid. Credit may not be granted under this Section for service as an employee of an entity that provides substitute teaching services under Section 2-3.173 of the School Code and is not a school district. (Source: P.A. 102-525, eff. 8-20-21; 103-17, eff. 6-9-23; 103-525, eff. 8-11-23; 103-605, eff. 7-1-24.) |
(40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
Sec. 16-128. Creditable service - required contributions.
(a) In order to receive the creditable service specified under
subsection (b) of Section 16-127, a member is required to make the
following contributions: (i) an amount equal to the contributions
which would have been required had such service been rendered as a member
under this System; (ii) for military service not immediately following
employment and for service established under subdivision (b)(10) of
Section 16-127, an amount determined by the Board to be equal to the
employer's normal cost of the benefits accrued for such service; and (iii)
interest from the date the contributions would have been due (or, in the case
of a person establishing credit for military service under subdivision (b)(3)
of Section 16-127, the date of first membership in the System, if that date
is later) to the date of payment, at the following rate of interest,
compounded annually: for periods prior to July 1, 1965, regular interest; from
July 1, 1965 to June 30, 1977, 4% per year; on and after July 1, 1977, regular
interest.
(b) In order to receive creditable service under paragraph (2) of
subsection (b) of Section 16-127 for those who were not members on June 30,
1963, the minimum required contribution shall be $420 per year of service
together with interest at 4% per year compounded annually from July 1,
preceding the date of membership until June 30, 1977 and at regular
interest compounded annually thereafter to the date of payment.
(c) In determining the contribution required in order to receive creditable
service under paragraph (3) of subsection (b) of Section 16-127, the salary
rate for the remainder of the school term in which a member enters military
service shall be assumed to be equal to the member's salary rate at the
time of entering military service. However, for military service not
immediately following employment, the salary rate on the last date as a
participating teacher prior to such military service, or on the first date
as a participating teacher after such military service, whichever is
greater, shall be assumed to be equal to the member's salary rate at the
time of entering military service. For each school term thereafter, the
member's salary rate shall be assumed to be 5% higher than the salary rate
in the previous school term.
(d) In determining the contribution required in order to receive creditable
service under paragraph (5) of subsection (b) of Section 16-127, a member's
salary rate during the period for which credit is being established shall be
assumed to be equal to the member's last salary
rate immediately preceding that period.
(d-5) For each year of service credit to be established under subsection
(b-1) of Section 16-127, a member is required to contribute to the System (i) the employee and employer contribution that would have been required had such service been rendered as a member based on the annual salary rate during the first year of full-time employment
as a teacher under this Article following the private or parochial school service, plus
(ii) interest thereon at the actuarially assumed rate from the date of first full-time employment as a teacher
under this Article following the private or parochial school service to the date of payment,
compounded annually, at a rate determined by the Board.
(d-10) For service credit established under paragraph (6) of subsection (b) of Section 16-127 for days granted by an employer in excess of the member's normal annual sick leave allotment, the employer is required to pay the normal cost of benefits based upon such service credit. This subsection (d-10) does not apply to sick leave granted to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005 (the effective date of Public Act 94-4).
The employer contributions required under this subsection (d-10) shall be paid in the form of a lump sum within 30 days after receipt of the bill after the teacher begins receiving benefits under this Article.
(e) Except for contributions under subsection (d-10), the contributions required under this Section may be made from the
date the statement for such creditable service is issued until retirement
date. All such required contributions must be made before any retirement
annuity is granted.
(Source: P.A. 96-546, eff. 8-17-09.)
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(40 ILCS 5/16-129.1)
Sec. 16-129.1.
Optional increase in retirement annuity.
(a) A member of the System may qualify for the augmented rate under
subdivision (a)(B)(1) of Section 16-133 for all years of creditable service
earned before July 1, 1998 by making the optional contribution specified in
subsection (b). A member may not elect to qualify for the augmented rate for
only a portion of his or her creditable service earned before July 1, 1998.
(b) The contribution shall be an amount equal to 1.0% of the member's
highest salary rate in the 4 consecutive school years immediately prior to but
not including the school year in which the application occurs, multiplied by
the number of years of creditable service earned by the member before July 1,
1998 or 20, whichever is less. This contribution shall be reduced by 1.0% of
that salary rate for every 3 full years of creditable service earned by the
member after June 30, 1998. The contribution shall be further reduced at
the rate of 25% of the contribution (as reduced for service after June 30,
1998) for each year of the member's total creditable service in excess of 34
years. The contribution shall not in any event exceed 20% of that salary
rate.
The member shall pay to the System the amount of the contribution as
calculated at the time of application under this Section. The amount of the
contribution determined under this subsection shall be recalculated at the time
of retirement, and if the System determines that the amount paid by the member
exceeds the recalculated amount, the System shall refund the difference to the
member with regular interest from the date of payment to the date of refund.
The contribution required by this subsection shall be paid in one of the
following ways or in a combination of the following ways that does not extend
over more than 5 years:
(i) in a lump sum on or before the date of retirement;
(ii) in substantially equal installments over a | ||
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(iii) in substantially equal monthly installments | ||
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(c) If the member fails to make the full contribution under this Section
in a timely fashion, the payments made under this Section shall be refunded
to the member, without interest. If the member dies before making the full
contribution, the payments made under this Section, together with regular
interest thereon, shall be refunded to the member's designated beneficiary
for benefits under Section 16-138.
(d) For purposes of this Section and subdivision (a)(B)(1) of Section
16-133, optional creditable service established by a member shall be deemed to
have been earned at the time of the employment or other qualifying event upon
which the service is based, rather than at the time the credit was established
in this System.
(e) The contributions required under this Section are the responsibility of
the teacher and not the teacher's employer. However, an employer of teachers
may, after the effective date of this amendatory Act of 1998, specifically
agree, through collective bargaining or otherwise, to make the contributions
required by this Section on behalf of those teachers.
(f) A person who, on or after July 1, 1998 and before June 4, 1999, began
receiving a retirement annuity calculated at the augmented rate may apply in
writing to have the annuity recalculated to reflect the changes to this Section
and Section 16-133 that were enacted in Public Act 91-17. The amount of any
resulting decrease in the optional contribution shall be refunded to the
annuitant, without interest. Any resulting increase in retirement annuity
shall take effect on the next annuity payment date following the date of
application under this subsection.
(Source: P.A. 92-416, eff. 8-17-01; 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-130) (from Ch. 108 1/2, par. 16-130)
Sec. 16-130.
Creditable service - whole or portion of year.
(a) Except
as provided in paragraph (6) of subsection (b) of Section 16-127, only one
year of service is creditable for all service in any one school year.
(b) For employment prior to July 1, 1990, service rendered for the
regular legal school term, if creditable hereunder, is equivalent to one
year of service, and time less than a legal school term shall be counted as
a portion of a year in the ratio that the number of days paid bears to the
number of days
required at the time to constitute a legal school term; however, service of
170 or more days in any school year after June 30, 1959 shall constitute a
year of service.
(c) Creditable service for periods of employment after June 30, 1990
shall be calculated as follows:
For full-time, part-time, and substitute teachers, creditable service in
any school year shall be
that fraction of a year equal to the ratio of
days paid in the legal school term, or the employment agreement if longer, to
170 days.
(d) Creditable service for optional service verified after July 1, 1990
for periods of employment prior to July 1, 1990 shall be calculated as follows:
For full-time, part-time, and substitute teachers, creditable service in
any school year shall be that fraction of a year that is equal to the ratio
of days paid in the legal school term, or employment agreement if longer,
to either the number of days required at the time of service to constitute
a legal school term or the number of days in the employment agreement,
whichever is greater. However, service of 170 or more days in any school
year after June 30, 1959 shall constitute a year of service.
(Source: P.A. 86-273; 86-1028; 86-1488.)
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(40 ILCS 5/16-130.1) (from Ch. 108 1/2, par. 16-130.1)
Sec. 16-130.1.
Any active member of the Judges Retirement System may
apply for transfer of his credits and creditable service accumulated under
this System to the Judges Retirement System. Such creditable
service shall be transferred forthwith. Payment by this System to the
Judges Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the System on the date of transfer; and
(2) employer contributions in an amount equal to the amount of member
contributions as determined under item (1).
Participation in this
System as to any credits transferred under this Section shall terminate on
the date of transfer.
(Source: P.A. 85-1008.)
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(40 ILCS 5/16-131.1) (from Ch. 108 1/2, par. 16-131.1)
Sec. 16-131.1.
Transfer of creditable service to the General Assembly
Retirement System.
(a) An active member of the General Assembly Retirement System, and
until May 1, 1993, any person having service credit therein, may apply
to transfer all or any part of his or her creditable service accumulated under
this system to the General Assembly Retirement System. The specified
creditable service shall be transferred upon application. Payment by this
system to the General Assembly Retirement System shall be made at the same time
and shall consist of:
(1) the amounts credited to the member through member | ||
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(2) employer contributions equal in amount to the | ||
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Participation in this system with respect to the transferred credits
shall terminate on the date of transfer.
(b) An active member of the General Assembly who has creditable service
under the system may establish additional creditable service for periods
during which he or she was an elected official and could have elected to
participate but did not so elect. Creditable service may be established by
payment to the system of an amount equal to the contributions that would
have been made if the person had elected to participate, plus interest at the
rate specified under subsection (a) of Section 16-128 to the date of payment.
(c) An active member of the General Assembly, and until May 1, 1993,
any person having service credit in the General Assembly Retirement System,
may reinstate creditable service terminated upon receipt of a refund, by
payment to the system of the amount of the refund together with interest
thereon at the rate specified under subsection (a) of Section 16-128 to the
date of payment.
(Source: P.A. 87-1265.)
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(40 ILCS 5/16-131.2) (from Ch. 108 1/2, par. 16-131.2)
Sec. 16-131.2.
Validation of service credits.
An active member of the
General Assembly having no creditable service in
the system, may establish creditable service for periods
during which he or she was in an elective office and could have elected
to participate in the system but did not so elect.
Creditable service
may be established by payment to the system of an amount equal to the contributions
that would have been made if the person had elected
to participate plus interest at the rate specified under subsection (a)
of Section 16-128 to the date of payment, together with an equal amount
as the applicable employer contributions, but the total period of such
creditable service that
may be validated shall not exceed 8 years.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-131.3) (from Ch. 108 1/2, par. 16-131.3)
Sec. 16-131.3.
Transfer of creditable service to Article 8, 9 or 13
fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, any county officer elected by vote of the people who is
a participant in the pension fund established under Article 9 of this Code,
and any elected sanitary district commissioner who is a participant in a
pension fund established under Article 13 of this Code, may apply for
transfer of his or her contributions and creditable service accumulated
under this System to such Article 8, 9 or 13 fund. Such creditable
service shall be transferred forthwith. Payment by this System to the
Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts credited to the member through member | ||
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(2) employer contributions equal in amount to the | ||
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Participation in this system shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary district commissioner
who has creditable service under the System may establish additional
creditable service for periods during which he or she could have elected to
participate but did not so elect. Creditable service may be established by
payment to the System of an amount equal to the contributions that would
have been made if the person had elected to participate, plus interest at the
rate specified under subsection (a) of Section 16-128 to the date of payment.
(c) Any such elected city officer, county officer or sanitary district
commissioner
may reinstate creditable service terminated upon receipt of a refund, by
payment to the System of the amount of the refund,
together with interest at the rate specified under subsection (a) of
Section 16-128 to the date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/16-131.4) (from Ch. 108 1/2, par. 16-131.4)
Sec. 16-131.4.
(a) Until July 1, 1989, any county sheriff who is a
participant in the pension fund established under Article 7 of this Act may
apply for transfer of up to 102 months of his or her contributions and
creditable service accumulated under this System to such Article 7 fund.
Such creditable service shall be transferred forthwith. Payment by this
System to the Article 7 fund shall be made at the same time and shall
consist of:
(1) the amounts credited to the member through member contributions for such
service, including interest if applicable, as of the date of transfer, but
excluding any additional or optional contributions, which shall be refunded
to the member; and
(2) employer contributions equal in amount to the accumulated member
contributions as determined in item (1) above.
Participation in this System as to any credits transferred under this Section
shall terminate on the date of transfer.
(b) Any such county sheriff may reinstate creditable service
terminated upon receipt of a refund, by
payment to the System, prior to July 1, 1989, of the amount of the refund,
together with interest at the rate specified under subsection (a) of
Section 16-128 to the date of payment. This is not a limitation on the
repayment provisions of Article 20.
(Source: P.A. 85-941.)
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(40 ILCS 5/16-131.5) (from Ch. 108 1/2, par. 16-131.5)
Sec. 16-131.5.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in this System for the
duration of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this System,
upon payment to this System of the amount by which (1) the employer and
employee contributions that would have been required if he had participated
in this System during the period for which credit under Section 2-117.1
is being transferred, plus interest thereon from the date of such
participation to the date of payment, exceeds (2) the amounts actually
transferred under that Section to this System.
(Source: P.A. 86-272.)
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(40 ILCS 5/16-131.6) (from Ch. 108 1/2, par. 16-131.6)
Sec. 16-131.6.
Transfer to Article 14.
(a) Any active member of the State
Employees' Retirement System of Illinois may apply for transfer to that
System of credits and creditable service accumulated under this System for
service as a teacher employed by the Department of Corrections. Such
creditable service shall be transferred forthwith. Payment by this System
to the State Employees' Retirement System shall be made at the same time
and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in this System as to any credits transferred under this
subsection shall terminate on the date of transfer.
(b) Any active member of the State Employees' Retirement System of
Illinois may apply for transfer to that System of credits and creditable
service accumulated under this System for service as a security employee of
the Department of Human Services as defined (at the time of application) in
Section 14-110. That creditable service shall be transferred forthwith.
Payment by this System to the State Employees' Retirement System shall be
made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions in an amount equal to the | ||
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Participation in this System as to any credits transferred under this
subsection shall terminate on the date of transfer.
(Source: P.A. 92-14, eff. 6-28-01.)
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(40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132) (Text of Section from P.A. 103-8) Sec. 16-132. Retirement annuity eligibility. A member who has at least 20 years of creditable service is entitled to a retirement annuity upon or after attainment of age 55. A member who has at least 10 but less than 20 years of creditable service is entitled to a retirement annuity upon or after attainment of age 60. A member who has at least 5 but less than 10 years of creditable service is entitled to a retirement annuity upon or after attainment of age 62. A member who (i) has earned during the period immediately preceding the last day of service at least one year of contributing creditable service as an employee of a department as defined in Section 14-103.04, (ii) has earned at least 5 years of contributing creditable service as an employee of a department as defined in Section 14-103.04, and (iii) retires on or after January 1, 2001 is entitled to a retirement annuity upon or after attainment of an age which, when added to the number of years of his or her total creditable service, equals at least 85. Portions of years shall be counted as decimal equivalents. A member who is eligible to receive a retirement annuity of at least 74.6% of final average salary and will attain age 55 on or before December 31 during the year which commences on July 1 shall be deemed to attain age 55 on the preceding June 1. A member meeting the above eligibility conditions is entitled to a retirement annuity upon written application to the board setting forth the date the member wishes the retirement annuity to commence. However, the effective date of the retirement annuity shall be no earlier than the day following the last day of creditable service, regardless of the date of official termination of employment; however, upon written application within 6 months after the effective date of the changes made to this Section by this amendatory Act of the 103rd General Assembly by a member or annuitant, the creditable service and earnings received in the last fiscal year of employment may be disregarded when determining the retirement effective date and the retirement benefit as long as such employment is for (1) less than 10 days in length; (2) less than $2,500 in creditable earnings; and (3) the last fiscal year of employment includes only a fiscal year beginning on or after July 1, 2016 and ending before June 30, 2023. The retirement effective date may not, as a result of the application of this amendatory Act of the 103rd General Assembly, be earlier than July 1, 2016. To be eligible for a retirement annuity, a member shall not be employed as a teacher in the schools included under this System or under Article 17, except (i) as provided in Section 16-118 or 16-150.1, (ii) if the member is disabled (in which event, eligibility for salary must cease), or (iii) if the System is required by federal law to commence payment due to the member's age; the changes to this sentence made by this amendatory Act of the 93rd General Assembly apply without regard to whether the member terminated employment before or after its effective date.(Source: P.A. 102-871, eff. 5-13-22; 103-8, eff. 6-7-23.) (Text of Section from P.A. 103-525) Sec. 16-132. Retirement annuity eligibility. A member who has at least 20 years of creditable service is entitled to a retirement annuity upon or after attainment of age 55. A member who has at least 10 but less than 20 years of creditable service is entitled to a retirement annuity upon or after attainment of age 60. A member who has at least 5 but less than 10 years of creditable service is entitled to a retirement annuity upon or after attainment of age 62. A member who (i) has earned during the period immediately preceding the last day of service at least one year of contributing creditable service as an employee of a department as defined in Section 14-103.04, (ii) has earned at least 5 years of contributing creditable service as an employee of a department as defined in Section 14-103.04, and (iii) retires on or after January 1, 2001 is entitled to a retirement annuity upon or after attainment of an age which, when added to the number of years of his or her total creditable service, equals at least 85. Portions of years shall be counted as decimal equivalents. A member who is eligible to receive a retirement annuity of at least 74.6% of final average salary and will attain age 55 on or before December 31 during the year which commences on July 1 shall be deemed to attain age 55 on the preceding June 1. A member meeting the above eligibility conditions is entitled to a retirement annuity upon written application to the board setting forth the date the member wishes the retirement annuity to commence. However, the effective date of the retirement annuity shall be no earlier than the day following the last day of creditable service, regardless of the date of official termination of employment; however, upon written application within 6 months after the effective date of this amendatory Act of the 103rd General Assembly by a member or annuitant, the creditable service and earnings received in the last fiscal year of employment may be disregarded when determining the retirement effective date and the retirement benefit as long as such employment is for (1) less than 10 days in length; (2) less than $2,500 in creditable earnings; and (3) the last fiscal year of employment includes only a fiscal year beginning on or after July 1, 2016 and ending before June 30, 2023. The retirement effective date may not, as a result of the application of this amendatory Act of the 103rd General Assembly, be earlier than July 1, 2016. To be eligible for a retirement annuity, a member shall not be employed as a teacher in the schools included under this System or under Article 17, except (i) as provided in Section 16-118 or 16-150.1, (ii) if the member is disabled (in which event, eligibility for salary must cease), or (iii) if the System is required by federal law to commence payment due to the member's age; the changes to this sentence made by this amendatory Act of the 93rd General Assembly apply without regard to whether the member terminated employment before or after its effective date.(Source: P.A. 102-871, eff. 5-13-22; 103-525, eff. 8-11-23.) |
(40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
Sec. 16-133. Retirement annuity; amount.
(a) The amount of the retirement annuity shall be (i) in the case of a person who first became a teacher under this Article before July 1, 2005, the larger of the
amounts determined under paragraphs (A) and (B) below, or (ii) in the case of a person who first becomes a teacher under this Article on or after July 1, 2005, the amount determined under the applicable provisions of paragraph (B):
(A) An amount consisting of the sum of the following:
(1) An amount that can be provided on an | ||
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(2) The sum of (i) the amount that can be | ||
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(3) If there is prior service, 2 times the amount | ||
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This paragraph (A) does not apply to a person who | ||
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(B) An amount consisting of the greater of the | ||
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(1) For creditable service earned before July 1, | ||
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For creditable service earned on or after July 1, | ||
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For all other creditable service: 2.2% of final | ||
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(2) 1.5% of final average salary for each year of | ||
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The amount of the retirement annuity determined under | ||
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(b) For purposes of this Section, except as provided in subsection (b-5), final average salary shall be the
average salary for the highest 4 consecutive years within the last 10 years
of creditable service as determined under rules of the board. The minimum
final average salary shall be considered to be $2,400 per year.
In the determination of final average salary for members other than
elected officials and their appointees when such appointees are allowed by
statute, that part of a member's salary for any year beginning after June
30, 1979 which exceeds the member's annual full-time salary rate with the
same employer for the preceding year by more than 20% shall be excluded.
The exclusion shall not apply in any year in which the member's creditable
earnings are less than 50% of the preceding year's mean salary for downstate
teachers as determined by the survey of school district salaries provided in
Section 2-3.103 of the School Code.
(b-5) A teacher who retires on or after June 1, 2021 and for whom the 2020-2021 school year is used in the calculation of the member's final average salary shall use the higher of the following for the purpose of determining the member's final average salary: (A) the amount otherwise calculated under subsection | ||
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(B) an amount calculated by the System using the | ||
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(c) In determining the amount of the retirement annuity under paragraph
(B) of this Section, a fractional year shall be granted proportional credit.
(d) The retirement annuity determined under paragraph (B) of this Section
shall be available only to members who render teaching service after July
1, 1947 for which member contributions are required, and to annuitants who
re-enter under the provisions of Section 16-150.
(e) The maximum retirement annuity provided under paragraph (B) of this
Section shall be 75% of final average salary.
(f) A member retiring after the effective date of this amendatory Act
of 1998 shall receive a pension equal to 75% of final average salary if the
member is qualified to receive a retirement annuity equal to at least 74.6%
of final average salary under this Article or as proportional annuities under
Article 20 of this Code.
(Source: P.A. 102-16, eff. 6-17-21.)
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(40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-133.1. Automatic annual increase in annuity.
(a) This subsection (a) is subject to subsections (a-1) and (a-2). Each member with creditable service and retiring on or after August 26,
1969 is entitled to the automatic annual increases in annuity provided under
this Section while receiving a retirement annuity or disability retirement
annuity from the system.
An annuitant shall first be entitled to an initial increase under this
Section on the January 1 next following the first anniversary of retirement,
or January 1 of the year next following attainment of age 61, whichever is
later. At such time, the system shall pay an initial increase determined as
follows:
(1) 1.5% of the originally granted retirement annuity | ||
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(2) 2% of the originally granted annuity multiplied | ||
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(3) 3% of the originally granted annuity multiplied | ||
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However, the initial annual increase calculated under this Section for the
recipient of a disability retirement annuity granted under Section 16-149.2
shall be reduced by an amount equal to the total of all increases in that
annuity received under Section 16-149.5 (but not exceeding 100% of the amount
of the initial increase otherwise provided under this Section).
Following the initial increase, automatic annual increases in annuity shall
be payable on each January 1 thereafter during the lifetime of the annuitant,
determined as a percentage of the originally granted retirement annuity
or disability retirement annuity for increases granted prior to January
1, 1990, and calculated as a percentage of the total amount of annuity,
including previous increases under this Section, for increases granted on
or after January 1, 1990, as follows: 1.5% for periods prior to January 1,
1972, 2% for periods after December 31, 1971 and prior to January 1, 1978,
and 3% for periods after December 31, 1977.
(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $1,000 multiplied by the number of years of creditable service upon which the annuity is based; however, in the case of an initial increase under subsection (a) that is subject to this subsection: (i) if more than one year has elapsed from the date | ||
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(ii) in the case of a disability retirement annuity | ||
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Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (a-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 member who has not begun to receive a retirement annuity under this Article before July 1, 2014: (1) the second automatic annual increase payable | ||
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(2) the second, fourth, and sixth automatic annual | ||
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(3) the second, fourth, sixth, and eighth automatic | ||
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(4) the second, fourth, sixth, eighth, and tenth | ||
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For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (b) The automatic annual increases in annuity provided under this Section
shall not be applicable unless a member has made contributions toward such
increases for a period equivalent to one full year of creditable service.
If a member contributes for service performed after August 26, 1969 but
the member becomes an annuitant before such contributions amount to one
full year's contributions based on the salary at the date of retirement,
he or she may pay the necessary balance of the contributions to the system
and be eligible for the automatic annual increases in annuity provided under
this Section.
(c) Each member shall make contributions toward the cost of the automatic
annual increases in annuity as provided under Section 16-152.
(d) An annuitant receiving a retirement annuity or disability retirement
annuity on July 1, 1969, who subsequently re-enters service as a teacher
is eligible for the automatic annual increases in annuity provided under
this Section if he or she renders at least one year of creditable service
following the latest re-entry.
(e) In addition to the automatic annual increases in annuity provided
under this Section, an annuitant who meets the service requirements of this
Section and whose retirement annuity or disability retirement annuity began
on or before January 1, 1971 shall receive, on January 1, 1981, an increase
in the annuity then being paid of one dollar per month for each year of
creditable service. On January 1, 1982, an annuitant whose retirement
annuity or disability retirement annuity began on or before January 1, 1977
shall receive an increase in the annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-133.1.
Automatic annual increase in annuity.
(a) Each member with creditable service and retiring on or after August 26,
1969 is entitled to the automatic annual increases in annuity provided under
this Section while receiving a retirement annuity or disability retirement
annuity from the system.
An annuitant shall first be entitled to an initial increase under this
Section on the January 1 next following the first anniversary of retirement,
or January 1 of the year next following attainment of age 61, whichever is
later. At such time, the system shall pay an initial increase determined as
follows:
(1) 1.5% of the originally granted retirement annuity | ||
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(2) 2% of the originally granted annuity multiplied | ||
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(3) 3% of the originally granted annuity multiplied | ||
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However, the initial annual increase calculated under this Section for the
recipient of a disability retirement annuity granted under Section 16-149.2
shall be reduced by an amount equal to the total of all increases in that
annuity received under Section 16-149.5 (but not exceeding 100% of the amount
of the initial increase otherwise provided under this Section).
Following the initial increase, automatic annual increases in annuity shall
be payable on each January 1 thereafter during the lifetime of the annuitant,
determined as a percentage of the originally granted retirement annuity
or disability retirement annuity for increases granted prior to January
1, 1990, and calculated as a percentage of the total amount of annuity,
including previous increases under this Section, for increases granted on
or after January 1, 1990, as follows: 1.5% for periods prior to January 1,
1972, 2% for periods after December 31, 1971 and prior to January 1, 1978,
and 3% for periods after December 31, 1977.
(b) The automatic annual increases in annuity provided under this Section
shall not be applicable unless a member has made contributions toward such
increases for a period equivalent to one full year of creditable service.
If a member contributes for service performed after August 26, 1969 but
the member becomes an annuitant before such contributions amount to one
full year's contributions based on the salary at the date of retirement,
he or she may pay the necessary balance of the contributions to the system
and be eligible for the automatic annual increases in annuity provided under
this Section.
(c) Each member shall make contributions toward the cost of the automatic
annual increases in annuity as provided under Section 16-152.
(d) An annuitant receiving a retirement annuity or disability retirement
annuity on July 1, 1969, who subsequently re-enters service as a teacher
is eligible for the automatic annual increases in annuity provided under
this Section if he or she renders at least one year of creditable service
following the latest re-entry.
(e) In addition to the automatic annual increases in annuity provided
under this Section, an annuitant who meets the service requirements of this
Section and whose retirement annuity or disability retirement annuity began
on or before January 1, 1971 shall receive, on January 1, 1981, an increase
in the annuity then being paid of one dollar per month for each year of
creditable service. On January 1, 1982, an annuitant whose retirement
annuity or disability retirement annuity began on or before January 1, 1977
shall receive an increase in the annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 91-927, eff. 12-14-00.)
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(40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-133.2. Early retirement without discount. (a) A member
retiring after June 1, 1980 and on or before June 30, 2005 (or as provided in subsection (b) of this Section), and
applying for a retirement annuity within 6 months of the last day of
teaching for which retirement contributions were required,
may elect at the time of application for a retirement annuity, to make
a one time member contribution to the System and thereby
avoid the reduction in the retirement annuity for retirement before age
60 specified in paragraph (B) of Section 16-133. The exercise of the
election shall also obligate the last employer to make a one time
non-refundable contribution to the System. Substitute teachers wishing to
exercise this election must teach 85 or more days in one school term with
one employer, who shall be deemed the last employer for purposes of this
Section. The last day of teaching with that employer must be within 6
months of the date of application for retirement. All substitute
teaching credit applied toward the required 85 days must be earned after
June 30, 1990.
The one time member and employer contributions shall be a percentage of
the retiring member's highest annual salary rate used in the determination
of the average salary for retirement annuity purposes. However, when
determining the one-time member and employer contributions, that part of a
member's salary with the same employer which exceeds the annual salary rate
for the preceding year by more than 20% shall be excluded. The member
contribution shall be at the rate of 7% for the lesser of the following 2
periods: (1) for each year that the member is less than age 60; or (2) for
each year that the member's creditable service is less than 35 years. If a
member is at least age 55 and has at least 34 years of creditable service, no
member or employer contribution for the early retirement option shall be
required. The employer contribution shall be at the rate of 20% for each year
the member is under age 60.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions required. The member
contribution shall be credited to the individual account of the member and
the employer contribution shall be credited to the Benefit Trust Reserve. The
provisions of this subsection (a) providing for the avoidance of the reduction in retirement annuity shall
not be applicable until the member's contribution, if any, has been received
by the System; however, the date such contributions are received shall not be
considered in determining the effective date of retirement.
The number of members working for a single employer who may
retire under this subsection or subsection (b) in any year may be limited at the option
of the employer to a specified percentage of those eligible, not less
than 30%, with the right to participate to be allocated among those
applying on the basis of seniority in the service of the employer.
(b) The provisions of subsection (a) of this Section shall remain in effect for a member retiring after June 30, 2005 and on or before July 1, 2007, provided that the member satisfies both of the following requirements: (1) the member notified his or her employer of intent | ||
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(2) the effective date of the member's retirement is | ||
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The member's employer must give evidence of the member's notification by providing to the System:
(i) a copy of the member's notification to the | ||
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(ii) an affidavit signed by the member and the | ||
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(iii) any additional documentation that the System | ||
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(c) Except as otherwise provided in subsection (b), and subject to the provisions of Section 16-176, a member retiring on or after July 1, 2005 and on or before June 30, 2013 (or January 1, 2014 in the case of a member who has filed a notice of intent to retire with his or her employer on or before June 30, 2013 and attains age 55 during the period July 1, 2013 through December 31, 2013), and applying for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, and whose last day of teaching is on or before June 30, 2013, may elect at the time of application for a retirement annuity, to make a one-time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16-133. The exercise of the election shall also obligate the last employer to make a one-time nonrefundable contribution to the System. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990. The one-time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one-time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded. The member contribution shall be at the rate of 11.5% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years. The employer contribution shall be at the rate of 23.5% for each year the member is under age 60. Upon receipt of the application and election, the System shall determine the one-time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve. The avoidance of the reduction in retirement annuity provided under this subsection (c) is not applicable until the member's contribution, if any, has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement.
The number of members working for a single employer who may retire under this subsection (c) in any year may be limited at the option of the employer to a specified percentage of those eligible, not less than 10%, with the right to participate to be allocated among those applying on the basis of seniority in the service of the employer. For persons not qualifying for the early retirement without discount option under this subsection (c), the option is extended for 3 years under subsection (d), but subject to the changes in eligibility, conditions, and required contributions provided in that subsection. (d) A member who is not eligible for the early retirement without discount option under subsection (c) may qualify for the early retirement without discount option under this subsection (d) if the member (1) retires on or after July 1, 2013 and before July 1, 2016, (2) applies for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, and (3) receives a certification of eligibility under this subsection from the member's last employer. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990. A qualifying member may elect at the time of application for a retirement annuity to make a one-time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16-133. The exercise of this election shall also obligate the last employer to make a one-time nonrefundable contribution to the System. The one-time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one-time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded. The member contribution shall be at the rate of 14.4% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years. The employer contribution shall be at the rate of 29.3% for each year the member is under age 60. Upon receipt of the application, election, and certification of eligibility, the System shall determine the one-time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve. The avoidance of the reduction in retirement annuity provided under this subsection (d) is not applicable until the member's contribution has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement. Eligibility to retire under this subsection (d) shall require the approval of the member's last employer under this Article, granted in accordance with criteria adopted by that employer with the mutual consent of the bargaining agent of a majority of the members employed by that employer. If the employer grants its approval for a member to retire under this subsection (d), the employer shall submit a certification of eligibility for the member in a manner prescribed by the System. The early retirement without discount option under this subsection (d) terminates on July 1, 2016. For participants to whom subsection (b) of Section 16-132 applies, the references to age 60 in this subsection are increased as provided in subsection (b) of Section 16-132. (Source: P.A. 98-42, eff. 6-28-13; 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-133.2. Early retirement without discount. (a) A member
retiring after June 1, 1980 and on or before June 30, 2005 (or as provided in subsection (b) of this Section), and
applying for a retirement annuity within 6 months of the last day of
teaching for which retirement contributions were required,
may elect at the time of application for a retirement annuity, to make
a one time member contribution to the System and thereby
avoid the reduction in the retirement annuity for retirement before age
60 specified in paragraph (B) of Section 16-133. The exercise of the
election shall also obligate the last employer to make a one time
non-refundable contribution to the System. Substitute teachers wishing to
exercise this election must teach 85 or more days in one school term with
one employer, who shall be deemed the last employer for purposes of this
Section. The last day of teaching with that employer must be within 6
months of the date of application for retirement. All substitute
teaching credit applied toward the required 85 days must be earned after
June 30, 1990.
The one time member and employer contributions shall be a percentage of
the retiring member's highest annual salary rate used in the determination
of the average salary for retirement annuity purposes. However, when
determining the one-time member and employer contributions, that part of a
member's salary with the same employer which exceeds the annual salary rate
for the preceding year by more than 20% shall be excluded. The member
contribution shall be at the rate of 7% for the lesser of the following 2
periods: (1) for each year that the member is less than age 60; or (2) for
each year that the member's creditable service is less than 35 years. If a
member is at least age 55 and has at least 34 years of creditable service, no
member or employer contribution for the early retirement option shall be
required. The employer contribution shall be at the rate of 20% for each year
the member is under age 60.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions required. The member
contribution shall be credited to the individual account of the member and
the employer contribution shall be credited to the Benefit Trust Reserve. The
provisions of this subsection (a) providing for the avoidance of the reduction in retirement annuity shall
not be applicable until the member's contribution, if any, has been received
by the System; however, the date such contributions are received shall not be
considered in determining the effective date of retirement.
The number of members working for a single employer who may
retire under this subsection or subsection (b) in any year may be limited at the option
of the employer to a specified percentage of those eligible, not less
than 30%, with the right to participate to be allocated among those
applying on the basis of seniority in the service of the employer.
(b) The provisions of subsection (a) of this Section shall remain in effect for a member retiring after June 30, 2005 and on or before July 1, 2007, provided that the member satisfies both of the following requirements: (1) the member notified his or her employer of intent | ||
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(2) the effective date of the member's retirement is | ||
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The member's employer must give evidence of the member's notification by providing to the System:
(i) a copy of the member's notification to the | ||
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(ii) an affidavit signed by the member and the | ||
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(iii) any additional documentation that the System | ||
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(c) Except as otherwise provided in subsection (b), and subject to the provisions of Section 16-176, a member retiring on or after July 1, 2005 and on or before June 30, 2013 (or January 1, 2014 in the case of a member who has filed a notice of intent to retire with his or her employer on or before June 30, 2013 and attains age 55 during the period July 1, 2013 through December 31, 2013), and applying for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, and whose last day of teaching is on or before June 30, 2013, may elect at the time of application for a retirement annuity, to make a one-time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16-133. The exercise of the election shall also obligate the last employer to make a one-time nonrefundable contribution to the System. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990. The one-time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one-time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded. The member contribution shall be at the rate of 11.5% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years. The employer contribution shall be at the rate of 23.5% for each year the member is under age 60. Upon receipt of the application and election, the System shall determine the one-time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve. The avoidance of the reduction in retirement annuity provided under this subsection (c) is not applicable until the member's contribution, if any, has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement.
The number of members working for a single employer who may retire under this subsection (c) in any year may be limited at the option of the employer to a specified percentage of those eligible, not less than 10%, with the right to participate to be allocated among those applying on the basis of seniority in the service of the employer. For persons not qualifying for the early retirement without discount option under this subsection (c), the option is extended for 3 years under subsection (d), but subject to the changes in eligibility, conditions, and required contributions provided in that subsection. (d) A member who is not eligible for the early retirement without discount option under subsection (c) may qualify for the early retirement without discount option under this subsection (d) if the member (1) retires on or after July 1, 2013 and before July 1, 2016, (2) applies for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, and (3) receives a certification of eligibility under this subsection from the member's last employer. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990. A qualifying member may elect at the time of application for a retirement annuity to make a one-time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16-133. The exercise of this election shall also obligate the last employer to make a one-time nonrefundable contribution to the System. The one-time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one-time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded. The member contribution shall be at the rate of 14.4% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years. The employer contribution shall be at the rate of 29.3% for each year the member is under age 60. Upon receipt of the application, election, and certification of eligibility, the System shall determine the one-time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve. The avoidance of the reduction in retirement annuity provided under this subsection (d) is not applicable until the member's contribution has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement. Eligibility to retire under this subsection (d) shall require the approval of the member's last employer under this Article, granted in accordance with criteria adopted by that employer with the mutual consent of the bargaining agent of a majority of the members employed by that employer. If the employer grants its approval for a member to retire under this subsection (d), the employer shall submit a certification of eligibility for the member in a manner prescribed by the System. The early retirement without discount option under this subsection (d) terminates on July 1, 2016. (Source: P.A. 98-42, eff. 6-28-13.)
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(40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3) Sec. 16-133.3. Early retirement incentives for State employees.
(a) To be eligible for the benefits provided in this Section, a person
must:
(1) be a member of this System who, on any day during | ||
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(2) not have received any retirement annuity under | ||
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(3) file with the Board on or before December 31, | ||
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(4) terminate employment under this Article no later | ||
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(5) by the date of termination of service, have at | ||
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(6) by the date of termination of service, have at | ||
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(7) not receive any early retirement benefit under | ||
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For the purposes of this Section, "department" means a department as defined
in Section 14-103.04 that employs a teacher as defined in this Article.
(b) An eligible person may establish up to 5 years of creditable service
under this Article by making the contributions
specified in subsection (c). In addition, for each period of creditable
service established under this Section, a person's age at retirement shall
be deemed to be enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of salary
or compensation under this Article or any other Article of this Code, or the
determination of eligibility for or the computation of benefits under Section
16-133.2.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate annuity
payable by this System under the Retirement Systems Reciprocal Act), except for
purposes of a retirement annuity under Section 16-133(a)(A), a
reversionary annuity under Section 16-136, the required distributions under
Section 16-142.3, and the determination of eligibility for or the computation
of benefits under Section 16-133.2. Age enhancement established under this
Section may be used in determining benefits payable under Article 14 of this
Code under the Retirement Systems Reciprocal Act (subject to the limitations
on the use of age enhancement provided in Section 14-108.3); age enhancement
established under this Section shall not be used in determining benefits
payable under other Articles of this Code under the Retirement Systems
Reciprocal Act.
(c) For all creditable service established under this Section, a person
must pay to the System an employee contribution to be determined by the
System, equal to 9.0% of the member's highest annual salary rate that would be
used in the determination of the average salary for retirement annuity purposes
if the member retired immediately after withdrawal, for each year of creditable
service established under this Section.
If the member receives a lump sum payment for accumulated vacation, sick
leave, and personal leave upon withdrawal from service, and the net amount of
that lump sum payment is at least as great as the amount of the contribution
required under this Section, the entire contribution must be paid by the
employee by payroll deduction. If there is no such lump sum payment, or if it
is less than the contribution required under this Section, the member shall
make an initial payment by payroll deduction, equal to the net amount of the
lump sum payment for accumulated vacation, sick leave, and personal leave,
and have the remaining amount due treated as a reduction from the retirement
annuity in 24 equal monthly installments beginning in the month in which the
retirement annuity takes effect. The required contribution may be paid as a
pre-tax deduction from earnings.
(d) In order to ensure that the efficient operation of State government
is not jeopardized by the simultaneous retirement of large numbers of key
personnel, the director or other head of a department may, for key employees
of that department, extend the December 31, 2002 deadline for terminating
employment under this Article established in subdivision (a)(4) of this
Section to a date not later than April 30, 2003 by so notifying the
System in writing by December 31, 2002.
(e) A person who has received any age enhancement or creditable service
under this Section and who reenters contributing service under this Article or
Article 14 shall thereby forfeit that age enhancement and creditable service,
and become entitled to a refund of the contributions made pursuant to this
Section.
(f) The System shall determine the amount of the increase in the present value of future benefits resulting from the granting of early retirement incentives
under this Section and shall report that amount to the Governor and the Commission on Government Forecasting and Accountability
on or after the effective date of this amendatory Act of the 93rd General Assembly and on or before November 15,
2004. Beginning with State fiscal year 2008, the increase in
liability reported under this subsection (f) shall be included in the
calculation of the required State contribution under Section 16-158.
(g)
In addition to the contributions otherwise required under this Article,
the State shall appropriate and pay to the System an amount equal to
$1,000,000 in State fiscal year 2004.
(h) The Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) shall determine
and report to the General
Assembly, on or before January 1, 2004 and annually thereafter through the year
2013, its estimate of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early retirement of persons receiving
early retirement incentives under this Section and (2) the net annual savings
or cost to the State from the program of early retirement incentives created
under this Section.
The System, the Department of Central Management Services, the
Governor's Office of Management and Budget (formerly
Bureau of
the Budget), and all other departments shall provide to the Commission any
assistance that the Commission may request with respect to its reports under
this Section. The Commission may require departments to provide it with any
information that it deems necessary or useful with respect to its reports under
this Section, including without limitation information about (1) the final
earnings of former department employees who elected to receive benefits under
this Section, (2) the earnings of current department employees holding the
positions vacated by persons who elected to receive benefits under this
Section, and (3) positions vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
(i) The changes made to this Section by this amendatory Act of the 92nd
General Assembly do not apply to persons who retired under this Section on or
before May 1, 1992.
(Source: P.A. 93-632, eff. 2-1-04; 93-839, eff. 7-30-04; 93-1067, eff. 1-15-05; 94-4, eff. 6-1-05.)
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(40 ILCS 5/16-133.4) (from Ch. 108 1/2, par. 16-133.4)
Sec. 16-133.4. Early retirement incentives for teachers.
(a) To be eligible for the benefits provided in this Section, a member must:
(1) be a member of this System who, on or after May | ||
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(2) have never previously received a retirement | ||
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(3) file with the Board before March 1, 1993, an | ||
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(4) in the case of an employee of an employer that is | ||
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(5) in the case of an employee of an employer that is | ||
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(6) have attained age 50 (without the use of any age | ||
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(7) have at least 5 years of creditable service under | ||
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(b) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of
salary or compensation under this or any other Article of the Code, or the
determination of eligibility for and the computation of benefits under
Section 16-133.2 of this Article.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of a reversionary annuity under Section 16-136,
the retirement annuity under Section 16-133(a)(A), the required
distributions under Section 16-142.3, and the determination of eligibility
for and the computation of benefits under Section 16-133.2 of this Article.
However, age enhancement established under this Section shall not be used
in determining benefits payable under other Articles of this Code under the
Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section by an
employee of an employer that is not a State agency, the employer must pay
to the System an employer contribution consisting of 20% of the member's
highest annual salary rate used in the determination of the average salary
for retirement annuity purposes for each year of creditable service granted
under this Section. No employer contribution is required under this
Section from any employer that is a State agency.
The employer contribution shall be paid to the System in one of the
following ways: (i) in a single sum at the time of the member's
retirement, (ii) in equal quarterly installments over a period of 5 years
from the date of retirement, or (iii) subject to the approval of the Board
of the System, in unequal installments over a period of no more than 5
years from the date of retirement, as provided in a payment plan designed
by the System to accommodate the needs of the employer. The employer's
failure to make the required contributions in a timely manner shall not
affect the payment of the retirement annuity.
For all creditable service established under this Section, the
employee must pay to the System an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement annuity for each year of creditable service granted under
this Section. The employee may elect either to pay the employee contribution in
full before the retirement annuity commences, or to have it deducted from the
retirement annuity in 24 monthly installments.
(d) An annuitant who has received any age enhancement or creditable
service under this Section and who re-enters contributing service under
this Article shall thereby forfeit the age enhancement and creditable service,
and upon re-retirement the annuity shall be recomputed. The forfeiture of
creditable service under this subsection shall not entitle the employer to a
refund of the employer contribution paid under this Section, nor to forgiveness
of any part of that contribution that remains unpaid. The forfeiture of
creditable service under this subsection shall not entitle the employee to a
refund of the employee contribution paid under this Section.
(e) If the number of employees of an employer that actually apply for
early retirement under this Section exceeds 30% of those eligible, the
employer may require that, for the number of applicants in excess of that
30%, the starting date of the retirement annuity enhanced under this
Section may not be earlier than June 1, 1994. The right to have the
retirement annuity begin before that date shall be allocated among the
applicants on the basis of seniority in the service of that employer.
This delay applies only to persons who are applying for early
retirement incentives under this Section, and does not prevent a person
whose application for early retirement incentives has been withdrawn from
receiving a retirement annuity on the earliest date upon which
the person is otherwise eligible under this Article.
(f) For a member who is notified after February 15, 1993, but before
September 15, 1993, that he or she will be laid off in the 1993-1994 school
year: (1) the March 1 application deadline in subdivision (a)(3) of this
Section is extended to a date 15 days after the date of issuance of the
layoff notice, and (2) the member shall not be included in the calculation
of the 30% under subsection (e) and is not subject to delay in retirement
under that subsection.
(g) A member who receives any early retirement incentive under Section
16-133.5 may not receive any early retirement incentive under
this Section.
(Source: P.A. 98-463, eff. 8-16-13.)
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(40 ILCS 5/16-133.5) (from Ch. 108 1/2, par. 16-133.5)
Sec. 16-133.5.
Early retirement incentives for teachers.
(a) To be eligible for the benefits provided in this Section, a member must:
(1) be a member of this System who, on or after May | ||
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(2) have never previously received a retirement | ||
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(3) file with the Board before March 1, 1994, an | ||
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(4) be eligible to receive a retirement annuity under | ||
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(5) have attained age 50 (without the use of any age | ||
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(6) have at least 5 years of creditable service under | ||
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(b) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of
salary or compensation under this or any other Article of the Code, or the
determination of eligibility for and the computation of benefits under
Section 16-133.2 of this Article.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of a reversionary annuity under Section 16-136,
the retirement annuity under Section 16-133(a)(A), the required
distributions under Section 16-142.3, and the determination of eligibility
for and the computation of benefits under Section 16-133.2 of this Article.
However, age enhancement established under this Section shall not be used
in determining benefits payable under other Articles of this Code under the
Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section, the
employer must pay to the System an employer contribution consisting of
20% of the member's highest annual salary rate used in the determination of
the average salary for retirement annuity purposes for each year of creditable
service granted under this Section.
The employer contribution shall be paid to the System in one of the
following ways: (i) in a single sum at the time of the member's
retirement, (ii) in equal quarterly installments over a period of 5 years
from the date of retirement, or (iii) subject to the approval of the Board
of the System, in unequal installments over a period of no more than 5
years from the date of retirement, as provided in a payment plan designed
by the System to accommodate the needs of the employer. The employer's
failure to make the required contributions in a timely manner shall not
affect the payment of the retirement annuity.
For all creditable service established under this Section, the
employee must pay to the System an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement annuity for each year of creditable service granted under
this Section.
The employee may elect either to pay the employee contribution in full
before the retirement annuity commences, or to have it deducted from
the retirement annuity in 24 monthly installments.
(d) An annuitant who has received any age enhancement or creditable
service under this Section and who re-enters contributing service under
this Article shall thereby forfeit the age enhancement and creditable service,
and upon re-retirement the annuity shall be recomputed. The forfeiture of
creditable service under this subsection shall not entitle the employer to a
refund of the employer contribution paid under this Section, nor to forgiveness
of any part of that contribution that remains unpaid. The forfeiture of
creditable service under this subsection shall not entitle the employee to a
refund of the employee contribution paid under this Section.
(e) If the number of employees of an employer that actually apply for
early retirement under this Section exceeds 30% of those eligible, the
employer may require that, for the number of applicants in excess of that
30%, the starting date of the retirement annuity enhanced under this
Section may not be earlier than June 1, 1995. The right to have the
retirement annuity begin before that date shall be allocated among the
applicants on the basis of seniority in the service of that employer.
This delay applies only to persons who are applying for early
retirement incentives under this Section, and does not prevent a person
whose application for early retirement incentives has been withdrawn from
receiving a retirement annuity on the earliest date upon which
the person is otherwise eligible under this Article.
(f) A member who receives any early retirement incentive under Section
16-133.4 may not receive any early retirement incentive under
this Section.
(Source: P.A. 87-1265.)
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(40 ILCS 5/16-134) (from Ch. 108 1/2, par. 16-134)
Sec. 16-134.
Additional retirement annuity.
(a) An annuitant receiving a retirement annuity on June 30, 1947 who has
at least 25 years of creditable service shall upon attaining age 60 or thereafter
have his or her annual retirement annuity increased to $700 for an annuitant
who is age 60 and by an additional $30 for each year of age attained above
age 60, but not exceeding a total annual retirement annuity of $1,000.
(b) In order to be entitled to such increase in retirement annuity,
the annuitant is required to make an additional contribution of $300 together
with interest at the rate of 3% per annum from June 30, 1947 on any part
of such $300 not paid on such date.
(c) The additional retirement annuity provided under this Section shall
begin to accrue on the first of the month following receipt of the required
contributions from the annuitant.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135)
Sec. 16-135.
Supplementary retirement annuity.
(a) An annuitant who is receiving a retirement annuity on
June 30, 1961 of less than $50 for each year of creditable service forming
the basis of the retirement annuity shall have his or her retirement annuity
increased to $50 per year for each year of such creditable service, but
not exceeding a total annual retirement annuity of $2,250.
(b) In order to be entitled to the increase in retirement annuity provided
under this Section, an annuitant is required to make an additional contribution
of $5 for each year of creditable service, not to exceed 45 years together
with interest at the rate of 3% per annum from August 25, 1961.
(c) The supplementary retirement annuity provided under this Section shall
begin to accrue on the first of the month following receipt of the required
contribution from the annuitant.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/16-136) (from Ch. 108 1/2, par. 16-136)
Sec. 16-136.
Reversionary annuity.
A member entitled to a retirement
annuity may elect at the time of retirement to receive a
reduced retirement annuity and
provide with the actuarial value of the reduction, determined on an
actuarial equivalent basis, a reversionary
annuity for any person who is dependent upon the member
at the time of
retirement, as named in a written direction filed with the system as a
part of the application for the retirement annuity, provided that the
reversionary annuity is not less than $10 per month, nor more
than the reduced retirement annuity
to which the member is
entitled. The condition of dependency must be established and proved to
the satisfaction of the system before the election becomes effective.
The reversionary annuity shall begin as of the first day of the month
following the month in which the death of the annuitant occurs, provided,
that the designated
beneficiary is then living. If the designated beneficiary predeceases
the annuitant, the reversionary annuity shall not be payable,
and beginning the first of the month following notification of the
designated beneficiary's death, the System shall pay the annuitant the
retirement annuity he or she would have received but for the reversionary
annuity election.
(Source: P.A. 84-1028.)
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(40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-136.1. Annual increase for certain annuitants. (a) Any annuitant receiving a retirement annuity on June 30, 1969 and
any member retiring after June 30, 1969 shall be eligible for the annual
increases provided under this Section provided the annuitant is ineligible
for the automatic annual increase in annuity provided under Section
16-133.1, and provided further that (1) retirement occurred at age 55 or over
and was based on 5 or more years of creditable service or (2) if
retirement occurred prior to age 55, the retirement annuity
was based on 20 or more years of creditable service.
(b) This subsection (b) is subject to subsections (b-1) and (b-2). An annuitant entitled to increases under this Section shall be entitled
to the initial increase as of the later of: (1) January 1 following
attainment of age 65, (2) January 1 following the first anniversary
of retirement, or (3) the first day of the month following receipt of
the required qualifying contribution from the annuitant. The initial monthly
increase shall be computed on the basis of the period elapsed between
the later of the date of last retirement or attainment of age 50 and the
date of qualification for the initial increase, at the rate of 1 1/2% of
the original monthly retirement annuity per year for periods
prior to September 1, 1971, and at the rate of 2% per year for periods between
September 1, 1971 and September 1, 1978, and at the rate of 3% per year
for periods thereafter.
An annuitant who has received an initial increase under this Section,
shall be entitled, on each January 1 following the granting of the
initial increase, to an increase of 3% of the original monthly retirement
annuity for increases granted prior to January 1, 1990, and equal to 3%
of the total annuity, including previous increases under this Section, for
increases granted on or after January 1, 1990. The original monthly
retirement annuity for computations under this subsection
(b) shall be considered to be $83.34 for any annuitant entitled to benefits
under Section 16-134. The minimum original disability retirement annuity
for computations under this subsection (b) shall be considered to be
$33.34 per month for any annuitant retired on account of disability.
(b-1) Notwithstanding subsection (b), but subject to the provisions of subsection (b-2), all automatic increases payable under subsection (b) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $1,000 multiplied by the number of years of creditable service upon which the annuity is based; however, in the case of an initial increase under subsection (b) that is subject to this subsection, if more than one year has elapsed from the date of retirement to the effective date of the initial
increase under this Section, the applicable percentage shall be the sum of the percentages for each such elapsed year. Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (b-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (b-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (b-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (b-2) Notwithstanding subsections (b) and (b-1), for an active or inactive Tier 1 member who is subject to this Section and has not begun to receive a retirement annuity under this Article before July 1, 2014: (1) the second automatic annual increase payable | ||
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(2) the second, fourth, and sixth automatic annual | ||
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(3) the second, fourth, sixth, and eighth automatic | ||
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(4) the second, fourth, sixth, eighth, and tenth | ||
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For the purposes of Section 1-103.1, this subsection (b-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (c) An annuitant who otherwise qualifies for annual
increases under this Section must make a one-time payment of
1% of the monthly final average salary for each full year of the creditable
service forming the basis of the retirement annuity or, if the
retirement annuity was not computed using final average salary, 1% of the
original monthly retirement annuity for each full year of service
forming the basis of the retirement annuity.
(d) In addition to other increases which may be provided by this Section,
regardless of creditable service, annuitants not meeting
the service requirements of Section 16-133.1 and whose retirement annuity
began on or before January 1, 1971 shall receive, on January
1, 1981, an increase in the retirement annuity then being paid
of one dollar per month for each year of creditable service forming
the basis of the retirement allowance. On January 1, 1982, annuitants
whose retirement annuity began on or before January 1, 1977, shall receive
an increase in the retirement annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-136.1.
Annual increase for certain annuitants.
(a) Any annuitant receiving a retirement annuity on June 30, 1969 and
any member retiring after June 30, 1969 shall be eligible for the annual
increases provided under this Section provided the annuitant is ineligible
for the automatic annual increase in annuity provided under Section
16-133.1, and provided further that (1) retirement occurred at age 55 or over
and was based on 5 or more years of creditable service or (2) if
retirement occurred prior to age 55, the retirement annuity
was based on 20 or more years of creditable service.
(b) An annuitant entitled to increases under this Section shall be entitled
to the initial increase as of the later of: (1) January 1 following
attainment of age 65, (2) January 1 following the first anniversary
of retirement, or (3) the first day of the month following receipt of
the required qualifying contribution from the annuitant. The initial monthly
increase shall be computed on the basis of the period elapsed between
the later of the date of last retirement or attainment of age 50 and the
date of qualification for the initial increase, at the rate of 1 1/2% of
the original monthly retirement annuity per year for periods
prior to September 1, 1971, and at the rate of 2% per year for periods between
September 1, 1971 and September 1, 1978, and at the rate of 3% per year
for periods thereafter.
An annuitant who has received an initial increase under this Section,
shall be entitled, on each January 1 following the granting of the
initial increase, to an increase of 3% of the original monthly retirement
annuity for increases granted prior to January 1, 1990, and equal to 3%
of the total annuity, including previous increases under this Section, for
increases granted on or after January 1, 1990. The original monthly
retirement annuity for computations under this subsection
(b) shall be considered to be $83.34 for any annuitant entitled to benefits
under Section 16-134. The minimum original disability retirement annuity
for computations under this subsection (b) shall be considered to be
$33.34 per month for any annuitant retired on account of disability.
(c) An annuitant who otherwise qualifies for annual
increases under this Section must make a one-time payment of
1% of the monthly final average salary for each full year of the creditable
service forming the basis of the retirement annuity or, if the
retirement annuity was not computed using final average salary, 1% of the
original monthly retirement annuity for each full year of service
forming the basis of the retirement annuity.
(d) In addition to other increases which may be provided by this Section,
regardless of creditable service, annuitants not meeting
the service requirements of Section 16-133.1 and whose retirement annuity
began on or before January 1, 1971 shall receive, on January
1, 1981, an increase in the retirement annuity then being paid
of one dollar per month for each year of creditable service forming
the basis of the retirement allowance. On January 1, 1982, annuitants
whose retirement annuity began on or before January 1, 1977, shall receive
an increase in the retirement annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 86-273.)
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(40 ILCS 5/16-136.2) (from Ch. 108 1/2, par. 16-136.2)
Sec. 16-136.2.
Minimum retirement annuity.
(a) Any annuitant receiving a retirement annuity under this Article is
entitled to such additional amount of retirement annuity under this
Section, if necessary, that is sufficient to provide a minimum retirement
annuity of $10 per month for each year of creditable service forming the
basis of the retirement annuity, up to $300 per month for 30 or more years
of creditable service. Effective January 1, 1984, the minimum retirement
annuity under this Section is $15 per month per year of service up to $450
per month. Beginning January 1, 1996, the minimum retirement annuity
payable under this Section shall be $25 per month for each year of
creditable service, up to a maximum of $750 per month for 30 or more years
of creditable service.
An annuitant entitled to an increase in retirement annuity under this
Section shall be entitled to such increase in retirement annuity effective
the later of (1) September 1 following attainment of age 60; (2) September
1 following the first anniversary in retirement; or (3) the first of the
month following receipt of the required qualifying contribution from the
annuitant.
(b) An annuitant who qualifies for an additional amount of retirement
annuity under subsection (a) of this Section must make a one-time payment
of 1% of the monthly average salary for each full year of the creditable
service forming the basis of the retirement annuity or, if the retirement
annuity was not computed using average salary, 1% of the original monthly
retirement annuity for each full year of service forming the basis of the
retirement annuity.
(c) The minimum retirement annuity provided under this Section shall
continue to be paid only to the extent that funds are available in the
minimum retirement annuity reserve established under Section 16-186.3.
(d) The annual increase provided on and after September 1, 1977 under
Section 16-136.1 and on and after January 1, 1978 under Section 16-133.1
shall be paid in addition to the minimum retirement annuity. Where an
initial increase is first payable on or after September 1, 1977, only that
portion of the increase based on the period in retirement after August 31,
1976, under Section 16-136.1 and after December 31, 1976, under Section
16-133.1 may be added to the minimum retirement annuity.
(Source: P.A. 89-21, eff. 6-6-95; 89-25, eff. 6-21-95.)
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(40 ILCS 5/16-136.3) (from Ch. 108 1/2, par. 16-136.3)
Sec. 16-136.3.
Alternate minimum retirement annuity.
(a) Any
member retiring with at least 10 years of creditable service on or before
December 31, 1983 is entitled to such additional amount of retirement
annuity under this Section, if necessary, that is sufficient to provide
a minimum retirement annuity of $200 per month. Any increase in retirement
annuity provided under this Section shall not begin to
accrue until the latest of: (1) September
1 following attainment of age 60; (2) September 1 following the first
anniversary of retirement; or (3) the first day of the month following
receipt of the required qualifying contribution from the annuitant as
specified in Section 16-136.2.
(b) The minimum retirement annuity provided under this
Section shall continue to be paid only to
the extent that funds are available in the minimum retirement annuity
reserve established under Section 16-186.3.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
Sec. 16-136.4.
Single-sum retirement benefit.
(a) A member who has less than 5 years of creditable service shall be
entitled, upon written application to the board, to receive a retirement
benefit payable in a single sum upon or after the member's attainment of
age 65. However, the benefit shall not be paid while the member is
employed as a teacher in the schools included under this Article or Article
17, unless the System is required by federal law to make payment due to the
member's age.
(b) The retirement benefit shall consist of a single sum that is the
actuarial equivalent of a life annuity consisting of 1.67% of the member's
final average salary for each year of creditable service. In determining
the amount of the benefit, a fractional year shall be granted proportional
credit.
For the purposes of this Section, final average salary shall be the
average salary of the member's highest 4 consecutive years of service
as determined under rules of the board. For a member with less than 4
consecutive years of service, final average salary shall be the average
salary during the member's entire period of service. In the determination
of final average salary for members other than elected officials and their
appointees when such appointees are allowed by statute, that part of a
member's salary which exceeds the member's annual full-time salary rate
with the same employer for the preceding year by more than 20% shall be
excluded.
The exclusion shall not apply in any year in which the member's creditable
earnings are less than 50% of the preceding year's mean salary for downstate
teachers as determined by the survey of school district salaries provided in
Section 2-3.103 of the School Code.
(c) The retirement benefit determined under this Section shall be
available to all members who render teaching service after July 1, 1947 for
which member contributions are required.
(d) Upon acceptance of the retirement benefit, all of the member's
accrued rights and credits in the System are forfeited. Receipt of a
single-sum retirement benefit under this Section does not make a person an
"annuitant" for the purposes of this Article, nor a "benefit recipient" for
the purposes of Sections 16-153.1 through 16-153.4.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138)
Sec. 16-138.
Refund of contributions upon death of member or annuitant.
Upon the death of a member or annuitant, the following amount shall be
payable (i) to a beneficiary nominated by written designation of the member
or annuitant filed with the system, or (ii) if no beneficiary is nominated,
to the surviving spouse, or (iii) if no beneficiary is nominated and there is
no surviving spouse, to the decedent's estate, upon receipt of proper proof
of death:
(1) Upon the death of a member, an amount consisting of the sum of the
following: (A) the member's accumulated contributions; (B) the sum of the
contributions made by the member toward the cost of the automatic increase
in annuity under Section 16-152, without interest thereon; and (C)
contributions made by the member toward prior service, without interest
thereon.
(2) Upon the death of an annuitant, unless a reversionary annuity is
payable under Section 16-136, an amount determined by subtracting the total
amount of monthly annuity payments received as a result of the deceased
annuitant's retirement from the sum of: (A) the accumulated contributions
at retirement; (B) the sum of the contributions made by the deceased toward
the cost of the automatic increase in annuity under Section 16-152, without
interest thereon; and (C) any contributions made by the
deceased for prior service or other purposes, exclusive of contributions
toward the cost of the automatic increase in annuity, without interest
thereon.
(Source: P.A. 91-887, eff. 7-6-00; 92-16, eff. 6-28-01.)
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(40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
Sec. 16-140. Survivors' benefits - definitions.
(a) For the purpose of Sections 16-138 through 16-143.2, the following
terms shall have the following meanings, unless the context otherwise
requires:
(1) "Average salary": the average salary for the | ||
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(2) "Member": any teacher included in the membership | ||
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(3) "Dependent beneficiary": (A) a surviving spouse | ||
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Unless otherwise designated by the member, | ||
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(4) "Eligible child": an unmarried natural or adopted | ||
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For purposes of this subsection, "disability" means | ||
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The changes made to this Section by Public Act | ||
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(5) "Dependent parent": a parent who was receiving at | ||
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(6) "Non-dependent beneficiary": any person, | ||
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(7) "In service": the condition of a member being in | ||
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(b) The change to this Section made by Public Act 90-511 applies without
regard to whether the deceased member or annuitant was in service on or after
the effective date of that Act.
The change to this Section made by this amendatory Act of the 91st General
Assembly applies without regard to whether the deceased member or annuitant was
in service on or after the effective date of this amendatory Act.
(Source: P.A. 95-870, eff. 8-21-08.)
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(40 ILCS 5/16-141) (from Ch. 108 1/2, par. 16-141)
Sec. 16-141.
Survivors' benefits - death in service.
(a) Upon the death of a member in service occurring on or after
July 1, 1990, a beneficiary designated by the member shall be
entitled to receive, in a single sum, for each completed year of service
up to a maximum of 6 years, an amount equal to 1/6 of the member's
highest annual salary rate within the last 4 years of service. If death occurs
prior to completion of the first year of service, the beneficiary shall be
entitled to receive, in a single sum, an amount equal to 1/6 of the most
recent annual salary rate. If no beneficiary is designated by the member or if
no designated beneficiary survives the member, the single sum benefit under
this paragraph shall be paid to the eligible dependent beneficiary or to the
trust established for such eligible dependent beneficiary, as determined under
paragraph (3) of Section 16-140, or, if there is no dependent beneficiary, to
the decedent's estate upon receipt of proper proof of death.
(b) If the deceased member had at least 1.5 years of creditable service,
had rendered at least 60 days of creditable service within the 18 months
immediately preceding death and had not designated a non-dependent
beneficiary who survives, a dependent beneficiary may elect to receive,
instead of the benefit under subsection (a) of this Section, a single sum
payment of $1,000, divided by the number of such beneficiaries, together
with a survivor's benefit as specified under the following paragraphs:
(1) A surviving spouse, if no eligible children | ||
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(2) A surviving spouse, regardless of age, who is | ||
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(3) Each eligible child, if there is no eligible | ||
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(4) A dependent parent shall receive upon attainment | ||
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(c) No election under this Section may be made by a dependent
beneficiary if a non-dependent beneficiary designated by the member
survives such member.
(d) Notwithstanding the other provisions of this Section, if the member is
in receipt of a benefit at the time of his or her death, a dependent
beneficiary shall receive a survivor benefit beginning the first of the
month following the death of the member.
(e) In cases where the changes to this Section or Section 16-142 made
by Public Act 87-1265 increase the amount
of a single-sum death benefit that has already been paid by the System, the
System shall pay to the beneficiary the amount of the increase provided by this
amendatory Act.
(Source: P.A. 90-32, eff. 6-27-97.)
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(40 ILCS 5/16-142) (from Ch. 108 1/2, par. 16-142)
Sec. 16-142.
Survivors' benefits - death out of service.
The following
benefit shall be payable to the survivors of an annuitant or to the survivors
of a member whose death occurs after termination of service for any cause
if on the date of termination of service, the member had at least 20 years
of creditable service and if the annuitant or member had made contributions
for the purposes of this Section for at least one year of creditable service
after July 24, 1959:
(1) Where the member's death occurs on or after July 1, 1990, a beneficiary
designated by the member shall be entitled to receive, in a single sum, an
amount equal to the member's highest annual rate of salary within the last 4
years of service, reduced by 1/6 of that annual salary for each year or
fraction thereof that has elapsed between the date of retirement or
termination of service and the date of death, but subject to a
minimum payment equal to 1/6 of that annual salary, the actual
contributions made by the member for survivor benefits, not including
interest thereon, or $3,000, whichever is the greatest. If no beneficiary
is designated by the member or if no designated beneficiary survives the
member, the lump sum benefit under this paragraph shall be paid to the
eligible dependent beneficiary or to the trust established for such
eligible dependent beneficiary, as determined under Section 16-140 (3), or,
if there is no dependent beneficiary, to the decedent's estate upon receipt
of proper proof of death.
(2) In lieu of the benefit under paragraph (1) of this Section, a dependent
beneficiary may receive the benefits provided under subsection (b) of Section
16-141. This paragraph (2) is inapplicable where a non-dependent beneficiary
designated by a member survives the member.
(3) Notwithstanding the creditable service limitations contained
elsewhere in this Section and under paragraph (3) of Section 16-143, a
surviving dependent beneficiary of an annuitant whose death occurs after
December 31, 1981, may receive only the benefits provided in subsection (b)
of Section 16-141, subject to a maximum benefit of $200 per month.
(Source: P.A. 87-1265.)
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(40 ILCS 5/16-142.1) (from Ch. 108 1/2, par. 16-142.1)
Sec. 16-142.1.
Survivors' benefits - minimum amounts.
(a) The minimum
survivor's benefit for any one beneficiary shall be the lesser of (1) $30
per month, or (2) 80% of the retirement annuity for which the member would
have been eligible at age 60.
(b) When the death of a member or annuitant occurs after June 30, 1975,
the following minimum survivor's benefit shall be payable:
(1) The minimum total survivor's benefit payable on account of the death
of a member shall be 50% of the retirement annuity earned by the member under
paragraph (B) of Section 16-133 as of the date of death of the member and
which would have been payable upon the later of attainment of age 60 or
date of death when death occurs prior to retirement.
(2) The minimum total survivor's benefit payable on account of the death
of an annuitant shall be 50% of the retirement annuity or disability retirement
annuity paid to the annuitant at the time of death.
(c) The minimum survivor's benefit for the surviving spouse of a member
who died on or before December 31, 1983 after 10 or more years of creditable
service shall be $200 per month.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-142.2) (from Ch. 108 1/2, par. 16-142.2)
Sec. 16-142.2.
Survivors' benefits - maximum amounts.
(a) When the death
of a member or annuitant occurs after August 21, 1981, the following maximum
limitations shall apply in the determination of the survivor's benefits
payable under Section 16-141 and Section 16-142:
(1) The maximum combined survivor's benefits for a surviving spouse and
eligible children or for more than one eligible child where no benefits
are payable to a surviving spouse shall be the lesser of: (A) $600 per
month, or (B) 80% of average salary.
(2) The maximum survivor's benefit for a surviving spouse of a deceased
annuitant or of a deceased member who terminated service for a cause other
than retirement with at least 20 years of creditable service shall be the
lesser of: (A) 80% of the retirement annuity earned by the member and payable
upon the later of attainment of age 60 or the date of retirement, or (B)
$400 per month. The maximum survivor's benefit for a surviving spouse of
a member who dies in service shall be $400 per month.
(3) The maximum survivor's benefit payable for one eligible child shall
be $400 per month.
(4) The maximum combined survivor's benefit for a parent or parents shall
be the lesser of (A) $400 per month, or (B) 50% of average salary.
(b) If the minimum survivor's benefit provided under Section 16-142.1
exceeds the maximum survivor's benefit specified under this Section, such
minimum survivor's benefit shall be payable.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-142.3) (from Ch. 108 1/2, par. 16-142.3)
Sec. 16-142.3. Required distributions. (a) A person who would be
eligible to receive a monthly survivor benefit under this Article but for
the fact that the person has not yet attained age 50, and who has not elected
to receive a lump sum distribution under subsection (a) of Section 16-141,
shall be eligible for a monthly distribution under this subsection (a),
provided that the payment of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987, (ii) December
1 of the calendar year immediately following the calendar year in which the
member or annuitant died, or (iii) December 1 of the calendar year in which
the deceased member or annuitant would have attained age 72, whichever
occurs latest, and shall remain payable until the first of the following to
occur: (1) the person becomes eligible to receive a monthly survivor
benefit under this Article; (2) the day following the date on which the
member ceases to be eligible to receive a monthly survivor benefit upon
attainment of age 50, due to remarriage or death; or (3) the day on which
such distribution ceases to be required by federal law.
The amount of the distribution shall be fixed at the time the
distribution first becomes payable, and shall be calculated in the same
manner as the monthly survivor benefit under Sections 16-141, 16-142,
16-142.1 and 16-142.2, but excluding any
automatic annual increases, supplemental increases, or one-time increases
that may be provided by law for monthly survivor benefits.
(b) For the purpose of this Section, a distribution shall be deemed to
be required by federal law if: (1) directly mandated by federal statute,
rule, or administrative or court decision; or (2) indirectly mandated
through imposition of substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member need not be
in service on or after the effective date of this amendatory Act of 1989
for the member's surviving spouse to be eligible for a distribution under this Section.
(Source: P.A. 102-210, eff. 7-30-21.)
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(40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
Sec. 16-143.
Survivors' benefits - other conditions and limitations.
The benefits provided under Sections 16-141 and 16-142, shall be
subject to the following further conditions and limitations:
(1) The period during which a member was in receipt of a disability or
occupational disability benefit shall be considered as creditable service
at the annual salary rate on which the member last made contributions.
(2) All service prior to July 24, 1959, for which creditable service is
granted towards a retirement annuity shall be considered as creditable service.
(3) No benefits shall be payable unless a member, or a disabled member,
returning to service, has made contributions to the system for at least one
month after July 24, 1959, except that an annuitant must have contributed to
the system for at least 1 year of creditable service after July 24, 1959.
(4) Creditable service under the State Employees' Retirement System
of Illinois, the State Universities Retirement System and the Public
School Teachers' Pension and Retirement Fund of Chicago shall be
considered in determining whether the member has met the creditable
service requirement.
(5) If an eligible beneficiary qualifies for a survivors' benefit
because of pension credits established by the participant or
annuitant in another system covered by Article 20, and the combined
survivors' benefits exceed the highest survivors' benefit payable by
either system based upon the combined pension credits,
the survivors' benefit payable by this system shall be reduced to that
amount which when added to the survivors' benefit payable by the other
system would equal this highest survivors' benefit. If the other system
has a similar provision for adjustment of the survivors' benefit,
the respective proportional survivors' benefits shall be reduced
proportionately according to the ratio which the amount of each
proportional survivors' benefit bears to the aggregate of all
proportional survivors' benefits. If a survivors' benefit is payable by
another system covered by Article 20, and the survivor elects to waive
the monthly survivors' benefit and accept a lump sum payment or death benefit
in lieu of the monthly survivors' benefit, this system shall, for the purpose
of adjusting the monthly survivors' benefit under this paragraph, assume that
the survivor had been entitled to a monthly survivors' benefit which, in
accordance with actuarial tables of this system, is the actuarial equivalent
of the amount of the lump sum payment or death benefit.
(6) Remarriage of a surviving spouse prior to attainment of age 55
that occurs before the effective date of this amendatory Act of the 91st
General Assembly shall terminate his or her survivors' benefits.
The change made to this item (6) by this amendatory Act of the 91st
General Assembly applies without regard to whether the deceased member or
annuitant was in service on or after the effective date of this amendatory
Act of the 91st General Assembly.
(7) The benefits payable to an eligible child shall terminate when the
eligible child marries, dies, or attains age 18 (age 22 if a full-time
student); except that benefits payable to a dependent disabled eligible child
shall terminate only when the eligible child dies or ceases to be disabled.
(Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
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(40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
Sec. 16-143.1.
Increase in survivor benefits.
(a) Beginning January
1, 1990, each survivor's benefit and each reversionary annuity payable
under Section 16-136 shall be increased by 3% of the currently
payable amount thereof
(1) on each January 1 occurring on or after the commencement of the annuity if
the deceased teacher died while receiving a retirement or disability
retirement annuity, or (2) in other cases,
on each January 1 occurring on or after the first
anniversary of the granting of the benefit, without regard to whether the
deceased teacher was in service on or after the effective date of this
amendatory Act of 1991, but such increases shall not accrue for any
period prior to January 1, 1990.
(b) On January 1, 1981, any
beneficiary who was receiving a survivor's monthly benefit on or before
January 1, 1971, shall have the benefit then being paid increased by 1% for
each full year elapsed from the date the survivor's benefit began. On
January 1, 1982, any beneficiary who began receiving a survivor's monthly
benefit after January 1, 1971, but before January 1, 1981 shall have the
benefit then being paid increased by 1% for each year elapsed from the date
the survivor's benefit began.
On January 1, 1987, any beneficiary whose monthly survivor's benefit
began on or before January 1, 1977, shall have the monthly survivor's
benefit increased by $1 for each full year which has elapsed since the date
the survivor's benefit began.
(Source: P.A. 86-273; 86-1488.)
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(40 ILCS 5/16-143.2) (from Ch. 108 1/2, par. 16-143.2)
Sec. 16-143.2. Refund of contributions for survivor benefits at retirement.
(a) If at the time of applying for a retirement annuity under Section
16-132, or while in receipt of such a retirement annuity, a member
does not have a dependent beneficiary as defined in paragraph (3) of
Section 16-140, such member may be granted, upon written request, a refund
of actual contributions for survivor benefits, without interest. Members
will be eligible for a refund of contributions for survivor benefits as
provided in the previous sentence notwithstanding the fact that they began
receiving retirement benefits prior to this amendatory Act of 1985.
Acceptance of the refund will forfeit all rights to survivor benefits under
Sections 16-140 through 16-143.
(b) Except as provided under subsection (c), an annuitant who reestablishes membership following acceptance of
refund of contributions for survivor benefits under subsection (a) of this
Section may reinstate eligibility for benefits provided under Sections 16-140
through 16-143 only through: (1) repayment of such refund together with
regular interest thereon from the date of the refund to the date of repayment,
and (2) completion of one year of creditable service following acceptance
of such refund. If membership is reestablished and the above conditions
(1) and (2) are not met, an additional refund, representing contributions
made following the previous refund will be provided upon the member's death
or retirement, whichever is applicable.
(c) Notwithstanding subsection (b), an annuitant who has received a refund under subsection (a) may, during a period of one year beginning 5 months after the effective date of this amendatory Act of the 99th General Assembly, make an election to reestablish rights to survivor benefits under Sections 16-140 through 16-143 by paying to the System: (1) the total amount of the refund received for | ||
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(2) interest on the amount of the refund at the | ||
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The System may allow an individual to repay this refund through: a tax-deferred lump sum payment in full; substantially equal monthly installments over a period of at least one but not more than 24 months by reducing the annuitant's monthly benefit over the established number of months by the amount of the otherwise applicable contribution; or a combination thereof. To the extent permitted under the Internal Revenue Code of 1986, as amended, for federal and State tax purposes, the monthly amount by which the annuitant's benefit is reduced shall not be treated as a contribution by the annuitant, but rather as a reduction of the annuitant's monthly benefit. If a member makes an election under this subsection (c) and the contributions required in items (1) and (2) of this subsection (c) are not paid in full, an additional one-time lump sum refund representing contributions made following the previous refund shall be provided to the named beneficiary or beneficiaries on file with the System or, if none, to the member's estate, when the member dies. (Source: P.A. 99-682, eff. 7-29-16.)
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(40 ILCS 5/16-149) (from Ch. 108 1/2, par. 16-149)
Sec. 16-149. Disability benefit.
(a) A disability benefit is payable to a member who was in active
service on or after June 30, 1977 and has at least 3 years of creditable
service. Part-time and substitute teachers who are in active service on or
after July 1, 1990 must have worked as a teacher for at least 340 hours in
either the school year in which the disability occurs or in the preceding
school year.
The benefit is payable upon application of a member who is not
receiving a benefit under either Section 16-133, Section 16-149.1
or Section 16-149.2. The benefit shall be granted only if the member is
found by medical examination to be incapacitated to perform the duties of
his or her position as a teacher and only if the commencement of the
incapacity occurred while the member was employed as a teacher or within
90 days of such employment.
A member shall be considered disabled only when the System has received
(1) a written certificate by at least 2 licensed and practicing physicians
designated by the System, certifying that the member is disabled and unable
to properly perform the duties of his or her position at the time of
disability, except in the case of disability due to pregnancy where a
written certificate from only one licensed and practicing physician is
required; (2) a written statement from the employer certifying that the member
is not eligible to receive a salary; and (3) a certification from the member
that he or she is not and has not been engaged in gainful employment
during the period of disability.
The benefit shall begin to accrue on the 31st day of absence from service
on account of disability, except that when an application is made more than
90 days subsequent to the later of the commencement of disability or the
date eligibility for salary ceases, it shall begin to accrue from the date
of application, and shall be payable during the time the member does not
receive a retirement annuity. The benefit is not payable to a member who
is receiving or has a right to receive any salary as a teacher, or is employed
in any capacity as a teacher by the employers included under this System or in
an equivalent capacity in any other public or private school, college or
university, except as provided in Section 16-149.6.
Service credits under the State Employees' Retirement System of
Illinois, the State Universities Retirement System and the Illinois
Municipal Retirement Fund shall be considered in determining the member's
eligibility for a disability benefit and the total period during which the
disability benefit is payable.
(b) The disability benefit shall be 40% of the greater of the
member's most recent annual contract salary rate at the time the disability
benefit becomes payable or the member's annual contract rate on the date the
disability commenced. Prior to July 1, 1990, if the most recent period of
service of any member was rendered on a less than full-time but not less
than half-time basis, the amount of the disability benefit payable to such
member shall be computed on the basis of the salary received by such member
for the member's last year of service on a full-time basis if such salary
was greater than the member's most recent salary. For part-time and
substitute members after June 30, 1990, the disability benefit shall be 40% of
the greater of the member's most recent annualized salary rate at the time the
disability benefit becomes payable or the annualized salary rate or contract
salary rate at the time the disability commenced.
In addition to the above benefit, the member shall receive creditable
service and credit for contributions that the member would have made in
active employment during any period of disability for which benefits
are paid by the System on the basis of the annual salary rate used in
computing the benefit, except as provided in Section 16-149.6.
(c) Effective January 1, 1988, the disability benefit shall continue
until the time one of the following events first occurs: (1) disability
ceases; (2) the member requests termination of the benefit; (3) the
aggregate period for which disability payments made during the member's
entire period of service equals 1/4 of the total period of creditable
service, not including the time he or she has received the disability
payments; or (4) the member is engaged or found to be able to engage in
gainful employment, other than limited employment under Section 16-149.6.
If the disability benefit is discontinued under item (4) but the member is
subsequently found to be unable to be gainfully employed due to the disability
which was the cause for his or her most recent incapacity to perform the duties
of a teacher, the disability benefit will be resumed, upon notification of the
System, as soon as the member is not eligible to receive salary.
A disabled member who receives disability benefits for the maximum period
specified above or who requests that the disability benefits be terminated
may be retired on a disability retirement annuity.
(d) The board shall prescribe rules governing the filing, investigation,
control, and supervision of disability claims. The rules shall include
specific standards to be used when requesting additional medical
examinations, hospital records or other data necessary for determining the
employment capacity and condition of the member. Costs incurred by a
claimant in connection with completing a claim for disability benefits
shall be paid by the claimant.
(Source: P.A. 94-539, eff. 8-10-05.)
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(40 ILCS 5/16-149.1) (from Ch. 108 1/2, par. 16-149.1)
Sec. 16-149.1. Occupational disability benefit.
(a) A member who becomes totally and immediately incapacitated for duty
as the proximate result of bodily injuries sustained or a hazard undergone
while in the performance and within the scope of his or her duties, if such
injuries or hazard were not the consequence of the member's willful
negligence, shall receive an occupational disability benefit upon making
proper application. If application is made more than 90 days subsequent to
the later of the commencement of disability or the date eligibility
for salary ceases, benefits shall begin to accrue from the date of
application, but service credit and credit for contributions will be earned
from the date of disability. The benefit is not payable to, and credit for
service and contributions may not be earned under this Section by, a member
who is receiving a benefit under Section 16-133, 16-149, or 16-149.2, or
who is receiving salary as a teacher, or is employed in any capacity as a
teacher by the employers included under this System or in an equivalent
capacity in any other public or private school, college or university,
except as provided in Section 16-149.6.
Proper proof of disability shall consist of: (1) a written certificate by
at least 2 licensed and practicing physicians designated by the System,
certifying that member is disabled and unable to perform assigned duties;
(2) a written statement from the employer certifying that the member is
disabled and not receiving a salary, and related information as to the cause
and commencement of disability; and (3) a written statement from the member
certifying that the member is not and has not been engaged in gainful
employment.
Occupational disability benefits under this Section shall be payable
only if (1) on the basis of a claim filed by the applicant with the
Illinois Workers' Compensation
Commission, it is determined by the Commission
that the disability was incurred while in the performance and within the
scope of assigned duties, under the terms of the Illinois Workers'
Compensation or Occupational Diseases Act, whichever applies, and the
claim is adjudicated as compensable by the Commission under either of
the aforesaid Acts; or (2) on the basis of a claim filed by the
applicant with an insurance carrier with which the employer of the
applicant has a workers' compensation insurance policy, it is
determined under the terms of the aforesaid policy that the disability
was incurred while in the performance and within the scope of the member's
assigned duties and the claim is approved as compensable.
(b) The occupational disability benefit shall be the greater of 60%
of the member's contract salary rate at the time the disability benefit
becomes payable or the member's annual contract rate on the date the
disability commenced, and shall be payable monthly in equal installments.
For part-time and substitute teachers after June 30, 1990, the benefit
shall be the greater of the member's most recent annualized salary rate at the
time the disability benefit becomes payable or the annualized salary rate or
annual contract rate at the time the disability commenced.
Any amounts provided for a member or a member's dependents under the
Illinois Workers' Compensation Act, the Illinois Occupational Diseases Act
or a workers' compensation insurance policy provided by the employer shall
be applied as an offset to any occupational benefit provided under this
Section in such manner as may be prescribed by the board.
In addition to the above benefit, the member shall receive creditable
service and credit for contributions that the member would have made in
active employment during the period of disability,
except as provided in Section 16-149.6. Creditable service and
credit for contributions shall be calculated on the basis of the annual
salary rate used in computing the benefit; however, such credit shall not
be used in the determination of the period for which disability benefits
are payable. A member who remains disabled after the termination of benefits
due to age or the expiration of the maximum period for which benefits are
payable shall be entitled to the retirement annuity provided under Section
16-133, notwithstanding that the member may not have the required minimum
period of creditable service prescribed for such annuity.
(c) Effective January 1, 1988, the occupational disability benefit shall
continue until the time one of the following first occurs: (1) disability
ceases; (2) the member requests termination of the benefit; or (3) the
member is engaged or found to be able to engage in gainful employment,
other than limited employment under Section 16-149.6. If
the disability benefit is discontinued under item (3) but the member is
subsequently found to be unable to be gainfully employed due to the
disability which was the cause for his or her most recent incapacity to
perform the duties of a teacher, the disability benefit will be resumed,
upon notification of the System, as soon as the member is not eligible to
receive salary.
(d) The board shall prescribe rules governing the filing,
investigation, control, and supervision of disability claims. Costs
incurred by a claimant in connection with completing a claim for disability
benefits shall be paid by the claimant.
(Source: P.A. 93-721, eff. 1-1-05; 94-539, eff. 8-10-05.)
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(40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2)
Sec. 16-149.2. Disability retirement annuity.
(a) A member whose disability benefit has been terminated under the
provisions of Section 16-149 may be retired on a disability retirement
annuity payable effective the day following such termination provided the
member remains disabled under the standard of disability provided in Section
16-149.
The disability retirement annuity shall be payable upon receipt of written
certificates from at least 2 licensed physicians designated
by the System verifying the continuation of the disability condition.
A disability retirement annuity shall not be paid during any period for
which the member receives benefits under Section 16-133, Section 16-149,
or Section 16-149.1 or has a right to receive a salary as a teacher, or
is employed in any capacity as a teacher by the employers included under
this System or in an equivalent capacity in any other public or private school,
college or university, except as provided in Section 16-149.6.
(b) The disability retirement annuity shall be equal to the larger of:
(1) 35% of the most recent annual contract salary rate or for part-time
and substitute members after June 30, 1990, the most recent annualized
salary rate; or (2) if disability commences prior to the member's
attainment of age 55, the amount computed in accordance with Section
16-133, provided the amount computed under paragraph (B) of Section 16-133
shall be reduced by 1/2 of 1% for each month that the member is less than
age 55; or (3) if disability commences after the member's attainment of age
55, and the member is not receiving a retirement annuity under Section
16-133, the amount computed in accordance with Section 16-133.
Prior to July 1, 1990, if the most recent period of service of any
member eligible to receive a disability retirement annuity was rendered on
a less than full-time but not less than half-time basis, the amount of the
disability retirement annuity payable shall be computed on the basis of the
salary received by such member for the member's last year of service on a
full-time basis if such salary was greater than the member's most recent
salary.
(c) If an annuitant receiving a disability retirement annuity under this
Section is engaged in or able to engage in gainful employment (including
limited employment under Section 16-149.6) paying more
than the difference between the disability retirement annuity and the salary
rate upon which the disability benefit is based, with no salary to be
considered less than the minimum prescribed in Section 24-8 of the School
Code, the disability retirement annuity shall be reduced to
an amount which together with the amount earned by the annuitant, equals
the salary rate upon which the disability benefit is based. However, for
the purposes of this subsection (c) only, the salary rate upon which the
benefit is based shall be deemed to increase by 15% on the tenth
anniversary of the commencement of the annuity.
Once each year during the first 5 years following retirement on a disability
retirement annuity, and once in every 3-year period thereafter, the System
may require an annuitant to undergo a medical examination, by a physician
or physicians designated by the System. If the annuitant refuses to submit
to such medical examination, the annuity shall be discontinued until such
time as the annuitant consents to the examination, and if refusal continues
for one year, all the rights to the annuity shall be revoked.
(d) If an annuitant in receipt of a disability retirement annuity returns
to active service as a teacher (other than limited employment under Section
16-149.6) or is no longer disabled, such annuity shall
cease and the annuitant shall again become a member of the Retirement System
and, if in active service as a teacher, shall make regular contributions. All service
for which the annuitant had credit on the date of disability shall be properly
reestablished.
An annuitant in receipt of a disability retirement annuity who returns
to active service as a teacher and who again becomes disabled shall not
be entitled to a recomputation of the disability retirement annuity based
on amendments enacted while the annuitant was in receipt of the annuity
unless at least one year of creditable service is rendered after the latest
re-entry into service.
(e) An annuitant in receipt of a disability retirement annuity may,
upon reaching retirement age as specified in Section 16-132, apply for a
retirement annuity which is to be calculated as specified in Section
16-133. The disability retirement annuity shall be discontinued upon
commencement of the retirement annuity.
(f) The board shall prescribe rules governing the filing, investigation,
control, and supervision of disability retirement claims. The rules
shall include specific standards to be used when requesting additional
medical examinations, hospital records or other data necessary for
determining the employment capacity and condition of the annuitant. Costs
incurred by a claimant in connection with completing a claim for disability
benefits shall be paid by the claimant.
The changes to this Section made by this amendatory Act of 1991
shall apply not only to persons who on or after its effective date are in
service as a teacher under the System, but also to persons whose status as
a teacher terminated prior to that date, whether or not the person is an
annuitant on that date.
(Source: P.A. 93-469, eff. 8-8-03; 94-539, eff. 8-10-05.)
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(40 ILCS 5/16-149.3) (from Ch. 108 1/2, par. 16-149.3)
Sec. 16-149.3.
Increase in disability retirement annuity.
An annuitant
who retired on account of disability prior to July 22, 1947 may have the
amount of his annual disability retirement annuity increased to $400 upon
contributing an amount equal to the lesser of: (1) one month's current
annuity, or (2) the difference between the current annual annuity and $400.
The increase in disability retirement annuity provided under this Section
shall be effective as of the first month following receipt of the required
contribution from the annuitant.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4)
Sec. 16-149.4.
Supplementary disability retirement annuity.
(a) An annuitant receiving a disability retirement annuity on June 30,
1961 of less than $50 for each year of creditable service forming the basis
of the disability retirement annuity shall have his or her disability
retirement annuity increased to $50 per year for each year of such creditable
service, with a minimum annuity of $1,000 per year.
(b) In order to be entitled to the increase in disability retirement annuity
provided under this Section, an annuitant is required to make an additional
contribution of $5 for each year of creditable service, together with interest
at the rate of 3% per annum from August 25, 1961.
(c) The supplementary retirement annuity provided under this Section shall
begin to accrue on the first of the month following receipt of the required
contributions from the annuitant.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/16-149.5) (from Ch. 108 1/2, par. 16-149.5)
Sec. 16-149.5.
Automatic increase in disability benefit.
Each
disability benefit payable under Section 16-149, 16-149.1 or 16-149.2 shall
be increased by 7% of the original fixed amount of such benefit on January
1, 1991 or January 1 following the fourth anniversary of the granting of the
benefit, whichever occurs later. On each January 1 following the 7%
increase, the disability benefit shall be increased by 3% of the current
amount of the benefit, including prior increases under this Article.
However, in the case of a disability retirement annuity granted under
Section 16-149.2, the annual increases provided by this Section shall cease
as soon as the recipient of the annuity qualifies for the automatic annual
increases provided under Section 16-133.1.
(Source: P.A. 86-1488.)
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(40 ILCS 5/16-149.6)
Sec. 16-149.6. Limited employment during disability.
(a) A teacher who (i) has been receiving a disability, occupational
disability, or disability retirement benefit under Section 16-149, 16-149.1,
or 16-149.2 for at least one year and (ii) remains unable to resume regular
full-time teaching due to disability, but is able to engage in limited or
part-time employment as a teacher, may engage in such limited or part-time
employment as a teacher for an employer under either this Article or an employer under Article 15 of this Code without loss of the disability, occupational
disability, or disability retirement benefit, provided that the teacher's
earnings for that limited or part-time employment, when added to the amount
of the benefit, do not exceed 100% of the salary rate upon which the benefit
is based.
(b) A disabled teacher who engages in limited or part-time teaching under
this Section and earns service and contribution credits for that teaching shall
not receive duplicate service or contribution credits under Section 16-149 or
16-149.1.
(Source: P.A. 94-539, eff. 8-10-05; 95-816, eff. 8-13-08.) |
(40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150)
Sec. 16-150. Re-entry.
(a) This Section does not apply to an annuitant who returns to teaching
under the program established in Section 16-150.1, for the duration of his
or her participation in that program.
(b) If an annuitant under this System is again
employed as a teacher for an aggregate period exceeding that permitted by
Section 16-118, his or her retirement annuity shall be terminated and the
annuitant shall thereupon be regarded as an active member.
Such annuitant is not entitled to a recomputation of his or her
retirement annuity unless at least one full year of creditable service is
rendered after the latest re-entry into service and the annuitant must have
rendered at least 3 years of creditable service after last re-entry into
service to qualify for a recomputation of the retirement annuity based on
amendments enacted while in receipt of a retirement annuity, except when
retirement was due to disability.
However, regardless of age, an annuitant in receipt of a retirement annuity
may be given temporary employment by a school board not exceeding that
permitted under Section 16-118 and continue to receive the retirement annuity.
(c) Unless retirement was necessitated by disability, a retirement
shall be considered cancelled and the retirement allowance must be repaid
in full if the annuitant is employed as a teacher within the school year
during which service was terminated.
(d) An annuitant's retirement which does not include a period of at
least one full and complete school year shall be considered cancelled and
the retirement annuity must be repaid in full unless such retirement was
necessitated by disability.
(Source: P.A. 95-331, eff. 8-21-07.)
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(40 ILCS 5/16-150.1) Sec. 16-150.1. Return to teaching in subject shortage area. (a) As used in this Section, "eligible employment" means employment beginning on or after July 1, 2003 and ending no later than June 30, 2027, in a subject shortage area at a qualified school, in a position requiring certification under the law governing the certification of teachers. As used in this Section, "qualified school" means a public elementary or secondary school that meets all of the following requirements: (1) At the time of hiring a retired teacher under | ||
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(2) The school district to which the school belongs | ||
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(3) If the school district to which the school | ||
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(b) An annuitant receiving a retirement annuity under this Article (other than a disability retirement annuity) may engage in eligible employment at a qualified school without impairing his or her retirement status or retirement annuity, subject to the following conditions: (1) the eligible employment does not begin within the | ||
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(2) the annuitant has not received any early | ||
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(3) if the annuitant retired before age 60 and with | ||
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(4) if the annuitant retired at age 60 or above or | ||
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(5) before the eligible employment begins, the | ||
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(c) An annuitant engaged in eligible employment in accordance with subsection (b) shall be deemed a participant in the program established under this Section for so long as he or she remains employed in eligible employment. (d) A participant in the program established under this Section continues to be a retirement annuitant, rather than an active teacher, for all of the purposes of this Code, but shall be deemed an active teacher for other purposes, such as inclusion in a collective bargaining unit, eligibility for group health benefits, and compliance with the laws governing the employment, regulation, certification, treatment, and conduct of teachers. With respect to an annuitant's eligible employment under this Section, neither employee nor employer contributions shall be made to the System and no additional service credit shall be earned. Eligible employment does not affect the annuitant's final average salary or the amount of the retirement annuity. (e) Before hiring a teacher under this Section, the school district to which the school belongs must do the following: (1) If the school district to which the school | ||
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(2) For a period of at least 90 days during the 6 | ||
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A school district replacing a teacher who is unable to continue employment with the school district because of documented illness, injury, or disability that occurred after being hired by a school district under this Section shall be exempt from the provisions of paragraph (2) for 90 school days. However, the school district must on an ongoing basis comply with items (i), (ii), and (iii) of paragraph (2). The school district must submit documentation of its compliance with this subsection to the regional superintendent. Upon receiving satisfactory documentation from the school district, the regional superintendent shall certify the district's compliance with this subsection to the System. (f) This Section applies without regard to whether the annuitant was in service on or after the effective date of this amendatory Act of the 93rd General Assembly.(Source: P.A. 102-440, eff. 8-20-21; 103-588, eff. 6-5-24.) |
(40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
Sec. 16-151.
Refund.
Upon termination of employment as a teacher for
any cause other than death or retirement, a member shall be paid the
following amount upon demand made at least 4 months after ceasing to teach:
(1) from the Benefit Trust Reserve, the actual total | ||
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(2) from the Benefit Trust Reserve, the actual | ||
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Any such amounts may be paid to the member either in one sum or, at the
election of the board, in 4 quarterly payments.
Contributions credited to a member for periods of disability as provided in
Sections 16-149 and 16-149.1 are not refundable.
Upon acceptance of a refund, all accrued rights and credits in the
System are forfeited and may be reinstated only if the refund is repaid
together with interest from the date of the refund to the date of repayment
at the following rates compounded annually: for periods prior to July 1,
1965, regular interest; for periods from July 1, 1965 to June 30, 1977,
4% per year; for periods on and after July 1, 1977, regular interest.
Repayment shall be permitted upon return to membership; however, service
credit previously forfeited by a refund and
subsequently reinstated may not be used as a basis for the payment of
benefits, other
than a refund of contributions, prior to the completion of one year of creditable
service following the refund, except when
repayment is permitted under the provisions of the "Retirement Systems
Reciprocal Act" contained in Article 20.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-152. Contributions by members.
(a) Except as provided in subsection (a-5), each member shall make contributions for membership service to this
System as follows:
(1) Effective July 1, 1998, contributions of 7.50% of | ||
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(2) Effective July 1, 1969 and, in the case of Tier 1 | ||
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(3) Effective July 24, 1959, contributions of 1% of | ||
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(4) Effective July 1, 2005, contributions of 0.40% of | ||
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(a-5) Beginning July 1, 2014, in lieu of the contribution otherwise required under paragraph (1) of subsection (a), each Tier 1 member shall contribute 7% of salary towards the cost of the retirement annuity. Contributions made pursuant to this subsection (a-5) shall be deemed "normal contributions". (b) The minimum required contribution for any year of full-time
teaching service shall be $192.
(c) Contributions shall not be required of any annuitant receiving
a retirement annuity who is given employment as permitted under Section 16-118 or 16-150.1.
(d) A person who (i) was a member before July 1, 1998, (ii) retires with
more than 34 years of creditable service, and (iii) does not elect to qualify
for the augmented rate under Section 16-129.1 shall be entitled, at the time
of retirement, to receive a partial refund of contributions made under this
Section for service occurring after the later of June 30, 1998 or attainment
of 34 years of creditable service, in an amount equal to 1.00% of the salary
upon which those contributions were based.
(e) A member's contributions toward the cost of early retirement without discount made under item (a)(4) of this Section shall not be refunded if the member has elected early retirement without discount under Section 16-133.2 and has begun to receive a retirement annuity under this Article calculated in accordance with that election. Otherwise, a member's contributions toward the cost of early retirement without discount made under item (a)(4) of this Section shall be refunded according to whichever one of the following circumstances occurs first: (1) The contributions shall be refunded to the | ||
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(2) The contributions shall be included, without | ||
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(3) The contributions shall be refunded to the | ||
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(4) The contributions shall be refunded to the | ||
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(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-152. Contributions by members.
(a) Each member shall make contributions for membership service to this
System as follows:
(1) Effective July 1, 1998, contributions of 7.50% of | ||
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(2) Effective July 1, 1969, contributions of 1/2 of | ||
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(3) Effective July 24, 1959, contributions of 1% of | ||
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(4) Effective July 1, 2005, contributions of 0.40% of | ||
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(b) The minimum required contribution for any year of full-time
teaching service shall be $192.
(c) Contributions shall not be required of any annuitant receiving
a retirement annuity who is given employment as permitted under Section 16-118 or 16-150.1.
(d) A person who (i) was a member before July 1, 1998, (ii) retires with
more than 34 years of creditable service, and (iii) does not elect to qualify
for the augmented rate under Section 16-129.1 shall be entitled, at the time
of retirement, to receive a partial refund of contributions made under this
Section for service occurring after the later of June 30, 1998 or attainment
of 34 years of creditable service, in an amount equal to 1.00% of the salary
upon which those contributions were based.
(e) A member's contributions toward the cost of early retirement without discount made under item (a)(4) of this Section shall not be refunded if the member has elected early retirement without discount under Section 16-133.2 and has begun to receive a retirement annuity under this Article calculated in accordance with that election. Otherwise, a member's contributions toward the cost of early retirement without discount made under item (a)(4) of this Section shall be refunded according to whichever one of the following circumstances occurs first: (1) The contributions shall be refunded to the | ||
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(2) The contributions shall be included, without | ||
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(3) The contributions shall be refunded to the | ||
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(4) The contributions shall be refunded to the | ||
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(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; 99-642, eff. 7-28-16.) |
(40 ILCS 5/16-152.1) (from Ch. 108 1/2, par. 16-152.1)
Sec. 16-152.1.
Pickup of contributions.
(a) Each employer may pick up the member contributions required under
Section 16-152 for all salary earned after December 31, 1981. If an employer
decides not to pick up the member
contributions, the amount that would have been picked up shall continue
to be deducted from salary. If contributions are picked up, they
shall be treated as employer contributions in determining tax treatment under
the United States Internal Revenue Code. The employer shall pay these member
contributions from the same source of funds which is used in paying salary to
the member. The employer may pick up these contributions by a reduction in the
cash salary of the member or by an offset against a future salary increase or
by a combination of a reduction in salary and offset against a future salary
increase. If member contributions are picked up, they shall be treated for all
purposes of this Article 16 in the same manner as member contributions made
prior to the date the pick up began.
(b) The State Board of Education shall pick up the contributions of
regional superintendents required under Section 16-152 for all salary
earned for the 1982 calendar year and thereafter.
(c) Effective July 1, 1983, each employer shall pick up the member
contributions required under Section 16-152 for all salary earned after such
date. Contributions so picked up shall be treated as employer contributions in
determining tax treatment under the United States Internal Revenue Code. The
employer shall pay these member contributions from the same source of funds
which is used in paying salary to the member. The employer may pick up these
contributions by a reduction in the cash salary of the member or by an offset
against a future salary increase or by a combination of a reduction in salary
and offset against a future salary increase. Member contributions so picked up
shall be treated for all purposes of this Article 16 in the same manner as
member contributions made prior to the date the pick up began.
(d) Subject to the requirements of federal law and the rules of the
board, beginning July 1, 1998 a member who is employed on a full-time basis
may elect to have the employer pick up optional contributions that the
member has elected to pay to the System, and the contributions so picked up
shall be treated as employer contributions for the purposes of determining
federal tax treatment. The election to have optional contributions picked
up is irrevocable. At the time of making the election, the member shall
execute a binding, irrevocable payroll deduction authorization. Upon receiving
notice of the election, the employer shall pick up the contributions by a
reduction in the cash salary of the member and shall pay the contributions from
the same source of funds that is used to pay earnings to the member.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-152.5) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 16-152.5. Use of contributions for health care subsidies. The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-599, eff. 6-1-14.) |
(40 ILCS 5/16-153.1) (from Ch. 108 1/2, par. 16-153.1)
Sec. 16-153.1.
(Repealed).
(Source: P.A. 89-25, eff. 6-21-95. Repealed internally, eff. 7-1-96.)
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(40 ILCS 5/16-153.2) (from Ch. 108 1/2, par. 16-153.2)
Sec. 16-153.2.
(Repealed).
(Source: P.A. 89-25, eff. 6-21-95. Repealed internally, eff. 7-1-98.)
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(40 ILCS 5/16-153.3) (from Ch. 108 1/2, par. 16-153.3)
Sec. 16-153.3.
(Repealed).
(Source: P.A. 89-25, eff. 6-21-95. Repealed internally, eff. 7-1-96.)
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(40 ILCS 5/16-153.4) (from Ch. 108 1/2, par. 16-153.4)
Sec. 16-153.4.
(Repealed).
(Source: P.A. 89-25, eff. 6-21-95. Repealed internally, eff. 7-1-96.)
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(40 ILCS 5/16-153.5)
Sec. 16-153.5.
Election of medicare coverage.
(a) The System shall conduct a divided medicare coverage referendum, open
to teachers continuously employed by the same employer since March 31, 1986.
The referendum shall be conducted in accordance with the applicable provisions
of federal law and Article 21 of this Code.
(b) As used in this Section and in compliance with federal law,
"referendum" means the process whereby teachers are granted the opportunity
to make an irrevocable individual election to participate in the medicare
program on a prospective basis.
(c) Employers shall pay the necessary employer contributions and make the
necessary deductions from salary for teachers who elect to participate in the
federal medicare program under this Section, as required by the System, Article
21 of this Code, and federal law.
(Source: P.A. 93-119, eff. 7-10-03.)
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(40 ILCS 5/16-154) (from Ch. 108 1/2, par. 16-154)
Sec. 16-154.
Deductions from salary.
(a) Required contributions. The governing body of each school district
and of each employing unit coming under this System,
and the State Comptroller or other State officer certifying payroll vouchers,
including payments of salary or wages to teachers, shall pick up or retain on
every pay day the contributions required under Section 16-152 of each member.
Each governing body or officer shall furnish a statement to each member showing
the amount picked up or retained from his or her salary.
(b) Optional contributions. For the purposes of this Section and Section
16-152.1, "optional contributions" means contributions that a member elects to
make in order to establish optional service credit or to reinstate creditable
service that was terminated upon payment of a refund.
The governing body of each school district and of each employing unit coming
under this System and the State Comptroller or other State officer certifying
payroll vouchers shall take the steps necessary to comply with the requirements
of Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, to
permit the pickup of optional contributions on a tax-deferred basis. Beginning
July 1, 1998, a school district or other employing unit shall not withhold
optional contributions from the salary of any member on an after-tax basis.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
Sec. 16-155. Report to system and payment of deductions.
(a) The employer shall submit to the System all required reports and contributions for salary paid during any month by the 10th of the following month. Additionally, all required contributions
for salary earned during a school term are due by July 10 following the
close of such school term.
The governing body of each State institution coming
under this retirement system, the State Comptroller or other State officer
certifying payroll vouchers including payments of salary or wages to
teachers, and any other employer of teachers, shall, monthly, forward to
the secretary of the retirement system the member contributions required
under this Article.
Each employer specified above shall, prior to August 15 of each year,
forward to the System a detailed statement, verified in all cases of school
districts by the secretary or clerk of the district, of the amounts so
contributed since the period covered by the last previous annual statement,
together with required contributions not yet forwarded, such payments being
payable to the System.
The board may prescribe rules governing the form, content, investigation,
control, and supervision of such statements and may establish additional interim employer reporting requirements as the Board deems necessary. If no teacher in
a school district comes under the provisions of this Article, the
governing body of the district shall so state under the oath of its
secretary to this system, and shall at the same time forward a copy of
the statement to the regional superintendent of schools.
The board may also require reporting requirements that are different than those prescribed in this Section and may require different reporting requirements for different benefits or purposes established under this Article, including, but not limited to, any optional benefit plan an employee chooses to participate in. (b) If an employer that is not a State agency fails to forward such
required contributions within the time permitted in subsection (a) above,
the System shall notify the employer of an amount
due, equal to
$50 per day for each day that elapses from the due date until the day such report and contributions are received by the System.
(c) If the system, on August 15, is not in receipt of the detailed
statements required under this Section of any school district or other
employing unit, such school district or other employing unit shall pay to
the system an amount equal to $250 for each day that elapses from August
15, until the day such statement is filed with the system.
(Source: P.A. 103-552, eff. 8-11-23.)
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(40 ILCS 5/16-157) (from Ch. 108 1/2, par. 16-157)
Sec. 16-157.
Consent to deductions - discharge of claims.
Every member
is deemed to have consented to the contributions required under this Article.
Payment of salary or compensation less the
required contribution shall
be a complete discharge and acquittance of all salary and compensation
claims and demands for the member's services rendered during the period
covered by such payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158) Sec. 16-158. Contributions by State and other employing units. (a) The State shall make contributions to the System by means of appropriations from the Common School Fund and other State funds of amounts which, together with other employer contributions, employee contributions, investment income, and other income, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations. The Board shall determine the amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the recommendations of the actuary, using the formula in subsection (b-3). (a-1) Annually, on or before November 15 until November 15, 2011, the Board shall certify to the Governor the amount of the required State contribution for the coming fiscal year. The certification under this subsection (a-1) shall include a copy of the actuarial recommendations upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year. On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking into account the amounts appropriated to and received by the System under subsection (d) of Section 7.2 of the General Obligation Bond Act. On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by Public Act 94-4. On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date. (a-5) On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and each January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (a-10) By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by Public Act 100-23. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (a-15) On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by Public Act 100-587. The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification. The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this subsection is submitted to the Governor, Comptroller, and General Assembly. The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct. (b) Through State fiscal year 1995, the State contributions shall be paid to the System in accordance with Section 18-7 of the School Code. (b-1) Unless otherwise directed by the Comptroller under subsection (b-1.1), the Board shall submit vouchers for payment of State contributions to the System for the applicable month on the 15th day of each month, or as soon thereafter as may be practicable. The amount vouchered for a monthly payment shall total one-twelfth of the required annual State contribution certified under subsection (a-1). (b-1.1) Beginning in State fiscal year 2025, if the Comptroller requests that the Board submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then the Board shall submit those additional vouchers as directed by the Comptroller, notwithstanding subsection (b-1). Unless an act of appropriations provides otherwise, nothing in this Section authorizes the Board to submit, in a State fiscal year, vouchers for the payment of State contributions to the System in an amount that exceeds the rate of payroll that is certified by the System under this Section for that State fiscal year. (b-1.2) The vouchers described in subsections (b-1) and (b-1.1) shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year. If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this subsection, the difference shall be paid from the Common School Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (b-2) Allocations from the Common School Fund apportioned to school districts not coming under this System shall not be diminished or affected by the provisions of this Article. (b-3) For State fiscal years 2012 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045. In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method. For each of State fiscal years 2018, 2019, and 2020, the State shall make an additional contribution to the System equal to 2% of the total payroll of each employee who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161. A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applies in State fiscal year 2018 or thereafter shall be implemented in equal annual amounts over a 5-year period beginning in the State fiscal year in which the actuarial change first applies to the required State contribution. A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be implemented: (i) as already applied in State fiscal years before | ||
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(ii) in the portion of the 5-year period beginning in | ||
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For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments so that by State fiscal year 2011, the State is contributing at the rate required under this Section; except that in the following specified State fiscal years, the State contribution to the System shall not be less than the following indicated percentages of the applicable employee payroll, even if the indicated percentage will produce a State contribution in excess of the amount otherwise required under this subsection and subsection (a), and notwithstanding any contrary certification made under subsection (a-1) before May 27, 1998 (the effective date of Public Act 90-582): 10.02% in FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY 2003; and 13.56% in FY 2004. Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2006 is $534,627,700. Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2007 is $738,014,500. For each of State fiscal years 2008 through 2009, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section. Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $2,089,268,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable. Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 pursuant to subsection (a-1) of this Section and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the Common School Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable. This amount shall include, in addition to the amount certified by the System, an amount necessary to meet employer contributions required by the State as an employer under paragraph (e) of this Section, which may also be used by the System for contributions required by paragraph (a) of Section 16-127. Beginning in State fiscal year 2046, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 90% of the total actuarial liabilities of the System. Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of this Section, the required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under subsection (a-1), shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section. (b-4) Beginning in fiscal year 2018, each employer under this Article shall pay to the System a required contribution determined as a percentage of projected payroll and sufficient to produce an annual amount equal to: (i) for each of fiscal years 2018, 2019, and 2020, | ||
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(ii) the amount required for that fiscal year to | ||
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In determining contributions required under item (i) of this subsection, the System shall determine an aggregate rate for all employers, expressed as a percentage of projected payroll. In determining the contributions required under item (ii) of this subsection, the amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The contributions required under this subsection (b-4) shall be paid by an employer concurrently with that employer's payroll payment period. The State, as the actual employer of an employee, shall make the required contributions under this subsection. (c) Payment of the required State contributions and of all pensions, retirement annuities, death benefits, refunds, and other benefits granted under or assumed by this System, and all expenses in connection with the administration and operation thereof, are obligations of the State. If members are paid from special trust or federal funds which are administered by the employing unit, whether school district or other unit, the employing unit shall pay to the System from such funds the full accruing retirement costs based upon that service, which, beginning July 1, 2017, shall be at a rate, expressed as a percentage of salary, equal to the total employer's normal cost, expressed as a percentage of payroll, as determined by the System. Employer contributions, based on salary paid to members from federal funds, may be forwarded by the distributing agency of the State of Illinois to the System prior to allocation, in an amount determined in accordance with guidelines established by such agency and the System. Any contribution for fiscal year 2015 collected as a result of the change made by Public Act 98-674 shall be considered a State contribution under subsection (b-3) of this Section. (d) Effective July 1, 1986, any employer of a teacher as defined in paragraph (8) of Section 16-106 shall pay the employer's normal cost of benefits based upon the teacher's service, in addition to employee contributions, as determined by the System. Such employer contributions shall be forwarded monthly in accordance with guidelines established by the System. However, with respect to benefits granted under Section 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8) of Section 16-106, the employer's contribution shall be 12% (rather than 20%) of the member's highest annual salary rate for each year of creditable service granted, and the employer shall also pay the required employee contribution on behalf of the teacher. For the purposes of Sections 16-133.4 and 16-133.5, a teacher as defined in paragraph (8) of Section 16-106 who is serving in that capacity while on leave of absence from another employer under this Article shall not be considered an employee of the employer from which the teacher is on leave. (e) Beginning July 1, 1998, every employer of a teacher shall pay to the System an employer contribution computed as follows: (1) Beginning July 1, 1998 through June 30, 1999, the | ||
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(2) Beginning July 1, 1999 and thereafter, the | ||
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The school district or other employing unit may pay these employer contributions out of any source of funding available for that purpose and shall forward the contributions to the System on the schedule established for the payment of member contributions. These employer contributions are intended to offset a portion of the cost to the System of the increases in retirement benefits resulting from Public Act 90-582. Each employer of teachers is entitled to a credit against the contributions required under this subsection (e) with respect to salaries paid to teachers for the period January 1, 2002 through June 30, 2003, equal to the amount paid by that employer under subsection (a-5) of Section 6.6 of the State Employees Group Insurance Act of 1971 with respect to salaries paid to teachers for that period. The additional 1% employee contribution required under Section 16-152 by Public Act 90-582 is the responsibility of the teacher and not the teacher's employer, unless the employer agrees, through collective bargaining or otherwise, to make the contribution on behalf of the teacher. If an employer is required by a contract in effect on May 1, 1998 between the employer and an employee organization to pay, on behalf of all its full-time employees covered by this Article, all mandatory employee contributions required under this Article, then the employer shall be excused from paying the employer contribution required under this subsection (e) for the balance of the term of that contract. The employer and the employee organization shall jointly certify to the System the existence of the contractual requirement, in such form as the System may prescribe. This exclusion shall cease upon the termination, extension, or renewal of the contract at any time after May 1, 1998. (f) If the amount of a teacher's salary for any school year used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%. This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. If a teacher's salary for the 2005-2006 school year is used to determine final average salary under this subsection (f), then the changes made to this subsection (f) by Public Act 94-1057 shall apply in calculating whether the increase in his or her salary is in excess of 6%. For the purposes of this Section, change in employment under Section 10-21.12 of the School Code on or after June 1, 2005 shall constitute a change in employer. The System may require the employer to provide any pertinent information or documentation. The changes made to this subsection (f) by Public Act 94-1111 apply without regard to whether the teacher was in service on or after its effective date. Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due. The employer contributions required under this subsection (f) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill. (f-1) (Blank). (g) This subsection (g) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011. The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July 31, 2006 (the effective date of Public Act 94-1057). When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005. When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to a teacher at a time when the teacher is 10 or more years from retirement eligibility under Section 16-132 or 16-133.2. When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload work, including summer school, when the school district has certified to the System, and the System has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule. When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification. When assessing payment for any amount due under subsection (f), the System shall exclude any payment to the teacher from the State of Illinois or the State Board of Education over which the employer does not have discretion, notwithstanding that the payment is included in the computation of final average salary. (g-5) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload or stipend work performed in a school year subsequent to a school year in which the employer was unable to offer or allow to be conducted overload or stipend work due to an emergency declaration limiting such activities. (g-10) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from increased instructional time that exceeded the instructional time required during the 2019-2020 school year. (g-15) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from teaching summer school on or after May 1, 2021 and before September 15, 2022. (g-20) When assessing payment for any amount due under subsection (f), the System shall exclude salary increases necessary to bring a school board in compliance with Public Act 101-443 or this amendatory Act of the 103rd General Assembly. (h) When assessing payment for any amount due under subsection (f), the System shall exclude any salary increase described in subsection (g) of this Section given on or after July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Notwithstanding any other provision of this Section, any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (f) of this Section. (i) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information: (1) The number of recalculations required by the | ||
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(2) The dollar amount by which each employer's | ||
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(3) The total amount the System received from each | ||
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(4) The increase in the required State contribution | ||
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(i-5) For school years beginning on or after July 1, 2017, if the amount of a participant's salary for any school year exceeds the amount of the salary set for the Governor, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, an amount determined by the System to be equal to the employer normal cost, as established by the System and expressed as a total percentage of payroll, multiplied by the amount of salary in excess of the amount of the salary set for the Governor. This amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation. Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due. The employer contributions required under this subsection may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill. (j) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows: As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date. In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year. (k) For purposes of determining the required State contribution to the system for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the system's actuarially assumed rate of return. (Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff. 8-11-23; 103-588, eff. 6-5-24.) |
(40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
Sec. 16-158.1.
Actions to enforce payments by school districts and
other employing units. Any school district or other
employing unit failing to transmit to the System contributions required of
it under this Article or contributions required of teachers, for more
than 90 days after such contributions are due is subject to the following:
after giving notice to the district or other unit, the System may certify
to the State Comptroller or the Regional Superintendent of Schools the
amounts of such delinquent payments and the State Comptroller or the
Regional Superintendent of Schools shall deduct the amounts so certified
or any part thereof from any State funds to be remitted
to the school district or other employing unit involved and shall
pay the amount so deducted to the System. If State funds from which
such deductions may be made are not available, the System may proceed
against the school district or other employing unit to recover the
amounts of such delinquent payments in the appropriate circuit court.
The System may provide for an
audit of the records of a school district or other employing unit as
may be required to establish the amounts of required contributions.
The school district or other employing unit shall make its records
available to the System for the purpose of such audit. The cost of such
audit shall be added to the amount of the delinquent payments and shall
be recovered by the System from the school district or other employing
unit at the same time and in the same manner as the delinquent payments
are recovered.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-158.2) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 16-158.2. Obligations of State; funding guarantee. (a) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law. Notwithstanding any other provision of law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment. If the System submits a voucher for contributions required under Section 16-158 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher. This subsection (a) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 16-158. (b) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and, if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be. If the State fails to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be. This subsection (b) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act. The obligations created by this subsection (b) expire when all of the requirements of subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met. (c) Any payments and transfers required to be made by the State pursuant to subsection (a) or (b) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations.
(Source: P.A. 98-599, eff. 6-1-14.) |
(40 ILCS 5/16-158.3) Sec. 16-158.3. Individual employer accounts. (a) The System shall create and maintain an individual account for each employer for the purposes of determining employer contributions under subsection (b-4) of Section 16-158. Each employer's account shall be notionally charged with the liabilities attributable to that employer and credited with the assets attributable to that employer. (b) Beginning with fiscal year 2018, the System shall assign notional liabilities to each employer's account, equal to the amount of the employer contributions required to be made by the employer pursuant to items (i) and (ii) of subsection (b-4) of Section 16-158, plus any unfunded actuarial accrued liability associated with the defined benefits attributable to the employer's employees who first became members on or after the implementation date and the employer's employees who made the election under subsection (c-5) of Section 1-161. (c) Beginning with fiscal year 2018, the System shall assign notional assets to each employer's account equal to the amounts of employer contributions made pursuant to items (i) and (ii) of subsection (b-4) of Section 16-158.
(Source: P.A. 100-23, eff. 7-6-17.) |
(40 ILCS 5/16-163) (from Ch. 108 1/2, par. 16-163) Sec. 16-163. Board created. A board of 15 members constitutes the
board of trustees authorized to carry out the provisions of this Article and is
responsible for the general administration of the System. The board shall
be known as the Board of Trustees of the Teachers' Retirement System
of the State of Illinois. The board shall be composed of the
Superintendent of Education, ex officio; 7 persons, not members of the System, to be appointed by the Governor,
who shall hold no elected State office; 5 persons who, at the time of their
election, are
teachers as defined in Section 16-106, elected by the
contributing members; and 2 annuitant members elected by the annuitants of the
System, as provided in Section 16-165.
The president of the board shall be appointed by the Governor from among the trustees.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/16-164) (from Ch. 108 1/2, par. 16-164)
Sec. 16-164. Board; appointed members; vacancies. Terms of office for
the appointed members shall begin on July 15 of an even-numbered year, except that the terms of office for members appointed pursuant to this amendatory Act of the 96th General Assembly shall begin upon being confirmed by the Senate.
The Governor shall appoint 3 members as trustees with the advice and consent of the Senate in each even-numbered year
who shall hold office for a term of 4 years, except that, of the members appointed pursuant to this amendatory Act of the 96th General Assembly, 3 members shall be appointed for a term ending July 14, 2012 and 3 members shall be appointed for a term ending July 14, 2014. The Governor shall appoint the additional member authorized under this amendatory Act of the 101st General Assembly with the advice and consent of the Senate for a term beginning on July 15, 2020 and ending July 14, 2022, and successors shall hold office for a term of 4 years. Each such appointee shall reside in and be
a taxpayer in the territory covered by this system, shall be interested
in public school welfare, and experienced and competent in financial and
business management. A vacancy in the term of an appointed
trustee shall be filled for the unexpired term by appointment of the
Governor.
Notwithstanding any provision of this Section to the contrary, the term of office of each member of the Board appointed by the Governor who is sitting on the Board on the effective date of this amendatory Act of the 96th General Assembly is terminated on that effective date. A trustee sitting on the Board on the effective date of this amendatory Act of the 96th General Assembly may not hold over in office for more than 60 days after the effective date of this amendatory Act of the 96th General Assembly. Nothing in this Section shall prevent the Governor from making a temporary appointment or nominating a trustee holding office on the day before the effective date of this amendatory Act of the 96th General Assembly. (Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/16-165) (from Ch. 108 1/2, par. 16-165)
Sec. 16-165. Board; elected members; vacancies.
(a) In each odd-numbered year, if there are 2 teachers whose terms of office will expire in that year, there shall be elected 2 teachers who
shall hold office for a term of 4 years beginning July 15 next following their
election or, if there are 3 teachers whose terms of office will expire in that year, there shall be elected 3 teachers who shall hold office for a term of 4 years beginning July 15 next following their election, in the manner provided under this Section. An elected teacher
member of the board who ceases to be a teacher as defined in Section 16-106 may
continue to serve on the board for the remainder of the term to which he or she
was elected.
(b) One elected annuitant trustee shall first be elected in
1987, and in every fourth year thereafter, for a
term of 4 years beginning July 15 next following his or her election.
(c) The elected annuitant position created by this amendatory Act of
the 91st General Assembly shall be filled as soon as possible in the manner
provided for vacancies, for an initial term ending July 15, 2001. One
elected annuitant trustee shall be elected in 2001, and in every fourth year
thereafter, for a term of 4 years beginning July 15 next following his or her
election.
The elected teacher position created by this amendatory Act of the 101st General Assembly shall be for an initial 3-year term and shall be filled in the manner provided for vacancies; except that if the teacher candidate who receives the highest number of votes and the incumbent members not up for election belong to the same statewide teacher organization, then the teacher candidate who receives the highest number of votes and is not a member of that statewide teacher organization shall be declared elected. (d) Elections shall be held on May 1, unless May 1 falls on a Saturday
or Sunday, in which event the election shall be conducted on the
following Monday. Candidates shall be nominated by petitions in writing,
signed by not less than 500 teachers or annuitants, as the case may be, with
their addresses shown opposite their names. The petitions shall be filed with
the board's Secretary not less than 90 nor more than 120 days prior to May 1.
The Secretary shall determine their validity not less than 75 days before the
election.
(d-5) Beginning July 15, 2020, not more than 4 of the 5 teachers elected to the Board of Trustees may be active members of the same statewide teacher organization. For the purposes of this Section, "statewide teacher organization" means a teacher organization (1) in which membership is not restricted to persons living or teaching within a limited geographical area of this State and (2) that has among its membership at least 10,000 persons who participate in this System. Candidates for the teacher positions on the Board shall indicate, in their nomination petitions and campaign materials, which (if any) statewide teacher organizations they have belonged to during the 5 years preceding the election. (e) If, for either teacher or annuitant members, the number of qualified
nominees exceeds the number of available positions,
the system shall prepare an appropriate ballot with the names of the candidates
in alphabetical order and shall mail one copy thereof, at least 10 days prior
to the election day, to each teacher or annuitant of this system as of the
latest date practicable, at the latest known address, together with a return
envelope addressed to the board and also a smaller envelope marked "For Ballot
Only", and a slip for signature. Each voter, upon marking his ballot with a
cross mark in the square before the name of the person voted for, shall place
the ballot in the envelope marked "For Ballot Only", seal the envelope, write
on the slip provided therefor his signature and address, enclose both the slip
and sealed envelope containing the marked ballot in the return envelope
addressed to the board, and mail it. Whether a person is eligible to vote for
the teacher nominees or the annuitant nominees shall be
determined from system payroll records as of March 1.
Upon receipt of the return envelopes, the system shall open them and set
aside unopened the envelopes marked "For Ballot Only". On election day ballots
shall be publicly opened and counted by the trustees or canvassers appointed
therefor. Each vote cast for a candidate represents one vote only. No ballot
arriving after 10 o'clock a.m. on election day shall be counted. (e-3) The 2 teacher
candidates or 3 teacher candidates, whichever is applicable for that election, and the annuitant candidate receiving the highest number of votes
shall be declared elected; except that beginning with the election in 2021, if the teacher candidate who receives the highest number of votes and the incumbent members not up for election belong to the same statewide teacher organization, then the second teacher candidate to be declared elected shall be the candidate who is not a member of the same statewide teacher organization and receives the highest number of votes, unless there is no such candidate or at least one candidate declared elected in the same election is not a member of that statewide teacher organization. The board shall declare the results of the election, keep a
record thereof, and notify the candidates of the results thereof within 30 days
after the election.
(e-5) If, for either class of members, there are only as many
qualified nominees as there are positions available, the balloting as described
in this
Section shall not be conducted for those nominees,
and the board shall declare them duly elected.
(f) A vacancy occurring in the elective membership of
the board
shall be filled for the unexpired term by a person qualified
for the vacant position, selected by the remaining elected members of the
board, if there are no more than 6 months remaining on the
term. For a term with more than 6 months remaining, the Director of the
Teachers' Retirement System of the State of Illinois shall institute an
election in accordance with this Act to fill the unexpired term.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/16-166) (from Ch. 108 1/2, par. 16-166)
Sec. 16-166.
Board - oath of office.
Each trustee, prior to assuming office, shall take and subscribe to an
oath that he or she will diligently and honestly administer the affairs of the
board, and that he or she will not knowingly violate or willingly permit to be
violated any of the provisions of law applicable to the retirement system.
The oath shall be certified by the officer before whom it is taken, and
immediately filed in the office of the Secretary of State.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-167) (from Ch. 108 1/2, par. 16-167)
Sec. 16-167.
Board - compensation and expenses.
The trustees shall serve without compensation, but shall be reimbursed for
all necessary expenses.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-168) (from Ch. 108 1/2, par. 16-168)
Sec. 16-168.
Board - meeting - rules - voting.
The board shall meet
regularly at least 4 times a year at such time as it may by by-laws provide, or
at the call of the president or of a majority of the members. The board
may adopt rules for the government of its meetings and for the
administration of the system. Each trustee is entitled to
1 vote. The votes of a majority of the members are necessary for a decision by
the trustees at any meeting of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-169) (from Ch. 108 1/2, par. 16-169)
Sec. 16-169. Board - secretary and other employees. The board, by a majority vote of all its members, shall appoint a
secretary who shall not be a member of the board and who shall serve as
the chief executive officer responsible for the detailed administration
of the system.
The secretary and chief executive officer of the system, known as the Executive Director, holding that position on April 1, 2009 is terminated on July 1, 2009, by operation of law, and shall thereafter no longer hold those positions or any other employment position with the system. The board is directed to take whatever action is necessary to effectuate this termination. (Source: P.A. 96-6, eff. 4-3-09.)
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(40 ILCS 5/16-169.1)
Sec. 16-169.1. Testimony and the production of records. The secretary of
the Board shall have the power to issue subpoenas to compel the attendance of
witnesses and the production of documents and records, including law
enforcement records maintained by law enforcement agencies, in conjunction with
the determination of employer payments required under subsection (f) of Section 16-158, a disability claim, an administrative review proceeding, an attempt to obtain information to assist in the collection of sums due to the System, or a felony forfeiture
investigation. The
fees of witnesses for attendance and travel shall be the same as the fees of
witnesses before the circuit courts of this State and shall be paid by the
party seeking the subpoena. The Board may apply to any circuit court in the
State for an order requiring compliance with a subpoena issued under this
Section. Subpoenas issued under this Section shall be subject to applicable
provisions of the Code of Civil Procedure.
(Source: P.A. 99-450, eff. 8-24-15.)
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(40 ILCS 5/16-170) (from Ch. 108 1/2, par. 16-170)
Sec. 16-170.
Board powers and duties.
The board shall have the powers and duties stated in Sections 16-171 through
16-181.2, in addition to the other powers and
duties granted it
in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-171) (from Ch. 108 1/2, par. 16-171)
Sec. 16-171. To sue and be sued. To sue and be sued in the name of the board.
The board shall not be a corporation. The board may sue to protect any
rights of the retirement system. All actions brought by or against the
board shall be prosecuted or defended, as the case may be, by the Attorney
General. If the board pursues a mandamus action under Section 16-158.2 of this Code as amended by Senate Bill No. 1 of the 98th General Assembly in the form passed by the General Assembly, then the board may select the counsel of their choice.
(Source: P.A. 98-598, eff. 12-5-13.)
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(40 ILCS 5/16-172) (from Ch. 108 1/2, par. 16-172)
Sec. 16-172.
To pay obligations and collect funds due.
To pay promptly expenses and other obligations that accrue under
this Article and to
see that all revenue, including contributions, due the system
is collected without unreasonable delay.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-173) (from Ch. 108 1/2, par. 16-173)
Sec. 16-173.
To maintain records and accounts.
To maintain a separate account for each individual member and annuitant;
to maintain adequate accounting records which shall reflect the financial
condition of the system, and such additional data as shall be necessary for
required calculations, actuarial valuations, and operation of the system;
to have the records of the system photographed, microfilmed or otherwise
reproduced, which photographs, microfilms or reproductions shall be deemed
original records for all purposes.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-174) (from Ch. 108 1/2, par. 16-174)
Sec. 16-174.
To maintain record of proceedings, etc.
To maintain a permanent record of all board
proceedings, which shall be open to public inspection.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-175) (from Ch. 108 1/2, par. 16-175)
Sec. 16-175.
To make annual report.
To make an annual financial report for each fiscal year ended June 30.
A copy of the report shall be transmitted to the State Board of
Education. The report of the retirement system shall contain a summary
of the fiscal transactions for the preceding fiscal year,
the amount of the
accumulated cash and securities, and a balance sheet indicating
the system's financial condition by means of an actuarial
valuation.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-176) (from Ch. 108 1/2, par. 16-176)
Sec. 16-176. To adopt actuarial assumptions. At least once every 3 years, the actuary, as technical advisor,
shall make an actuarial
investigation into the mortality, service and compensation experience of the
members, annuitants, and beneficiaries of the retirement system. Based upon
the result of that investigation, the board shall adopt such
actuarial assumptions as it deems appropriate.
The actuarial investigation required under this Section shall include the System's experience under the early retirement without discount option established in Section 16-133.2, including consideration of the sufficiency of the member and employer contributions under Section 16-133.2 and the active member contribution under Section 16-152 to adequately fund the early retirement without discount option. The Board shall promptly communicate the results of the actuarial investigation to the Commission on Government Forecasting and Accountability. Based on the actuarial investigation, the Commission on Government Forecasting and Accountability shall, no later than February 1 of the next year, recommend to the General Assembly any proportional adjustment in the amounts of the member and employer contributions under Section 16-133.2 that it deems necessary. The early retirement without discount option under subsection (c) of Section 16-133.2 is extended as provided in subsection (d) of that Section. The early retirement without discount option under subsection (d) of Section 16-133.2 terminates on July 1, 2016.(Source: P.A. 98-42, eff. 6-28-13; 99-232, eff. 8-3-15.)
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(40 ILCS 5/16-178) (from Ch. 108 1/2, par. 16-178)
Sec. 16-178.
To receive gifts and legacies.
To receive any gifts or legacies for the benefit of the retirement
system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
Sec. 16-179.
To be trustee of reserves and to invest funds.
To
be the trustee of the reserves created under this Article,
and to invest and reinvest such reserves, subject to the requirements and
restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
1-114 and 1-115.
No bank or savings and loan association shall receive investment funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as now or hereafter
amended. The limitations set forth in such Section 6 shall be applicable
only at the time of investment and shall not require the liquidation of
any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the system. The board may direct the registration of securities or the
holding in interests in real property in the name of the system or in the name
of a nominee created for the express purpose of registration of securities or
holding interests in real property by a national or state bank or trust company
authorized to conduct a trust business in the State of Illinois. The board may
hold title to interests in real property in the name of the system or in the
name of a title holding corporation created for the express purpose of holding
title to interests in real property.
Investments shall be carried at cost or at a value determined in
accordance with generally accepted accounting principles.
(Source: P.A. 90-19, eff. 6-20-97; 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-179.1) (from Ch. 108 1/2, par. 16-179.1)
Sec. 16-179.1.
To
transfer investment functions and securities. The board may, by resolution
duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A, for management and administration, all
investments owned by the system of every kind and character.
Upon completion
of such transfer, the authority of the board to make investments
shall terminate. Thereafter, all investments of the assets
of the system shall be made by the Illinois State Board of
Investment in accordance with
the provisions of Article 22A.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-179.2) (from Ch. 108 1/2, par. 16-179.2)
Sec. 16-179.2.
To Create and Maintain a Salary Reduction Plan.
(1) To
develop a Salary Reduction Plan for members as permitted under the relevant
Sections of the Internal Revenue Code.
(2) To contract with school districts and other employers for the
creation and maintenance of a uniform Salary Reduction Plan for system members.
(3) To adopt all rules necessary and reasonable for the implementation
of this Section.
(Source: P.A. 84-1028.)
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(40 ILCS 5/16-181) (from Ch. 108 1/2, par. 16-181)
Sec. 16-181.
To make deposits.
To keep sufficient cash on deposit in one or more banks, savings and loan
associations or trust companies, organized under the laws of the State of
Illinois or of the United States, for the purpose of making disbursements
for annuities and other expenses; provided that the sum on deposit in any
one bank, savings and loan association or trust company shall not exceed
25% of the paid up capital and surplus of the depository.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public
agencies", approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-181.1) (from Ch. 108 1/2, par. 16-181.1)
Sec. 16-181.1.
To provide office space.
To rent, lease, or acquire
such space as may be necessary for the proper administration of the system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-181.2) (from Ch. 108 1/2, par. 16-181.2)
Sec. 16-181.2.
To furnish statements.
To furnish annually a statement
of account to each teacher.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-181.3)
Sec. 16-181.3.
To prescribe the manner of payment.
To prescribe by rule
the manner of repaying refunds and purchasing the various optional service
credits permitted under this Article. The rules may prescribe the conditions
under which installment payments or partial payments may be accepted and may
specify the method of computing any interest due.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-181.4) Sec. 16-181.4. To request information. To request such information from any member, annuitant, beneficiary, or employer as is necessary for the proper administration of the System.
(Source: P.A. 99-450, eff. 8-24-15.) |
(40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182)
Sec. 16-182. Members' Contribution Reserve. On July 1, 2003, the
Members' Contribution Reserve is abolished and the remaining balance shall be
transferred from that Reserve to the Benefit Trust Reserve.
(Source: P.A. 95-331, eff. 8-21-07.)
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(40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
Sec. 16-184.
Supplementary Annuity Reserve.
On July 1, 2003, the Supplemental Annuity
Reserve is abolished and any remaining balance shall be transferred from that
Reserve to the Benefit Trust Reserve.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
Sec. 16-185.
Benefit Trust Reserve.
(a) On July 1, 2003, the Employer's Contribution Reserve shall be
renamed the Benefit Trust Reserve. The Benefit Trust Reserve
shall serve as a clearing account for income and expenses of the System as
well as transfers to and from the other reserve accounts established under
this Article and adjustments thereto.
(b) This Reserve shall be credited with all contributions, investment
income, and other income received by the System, except as otherwise
required by this Article.
(c) This Reserve shall be charged with all benefits and refunds paid and
all other expenses of the System, except as otherwise required under this
Article.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3)
Sec. 16-186.3.
Reserve for minimum retirement annuity.
(a) A Minimum Retirement Annuity Reserve is established for the purpose
of crediting funds received and charging disbursements for minimum retirement
annuity payments under Section 16-136.2 and Section 16-136.3.
This Reserve shall be credited with:
(1) The total of all contributions made by annuitants | ||
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(2) Amounts contributed to the System by the State of | ||
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(3) Regular interest computed annually on the average | ||
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This Reserve shall be charged with all minimum retirement annuity
payments under Section 16-136.2 and Section 16-136.3.
(b) After all minimum retirement annuity payments have been completed,
any remaining funds shall be transferred from this Reserve to the Benefit
Trust Reserve.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
Sec. 16-187.
Custodian of fund - warrants and vouchers - audits.
(a) The State Treasurer is ex-officio custodian of the funds of the
retirement system. He or she may process
payments from the funds of the system for
the purposes herein specified upon warrants or direct deposit transmittals
of the State Comptroller.
Commencing January 1, 1987, the State Treasurer shall credit interest, at
current rates, for any monies directly held. Such interest shall be
calculated using an average daily cash basis.
He or she shall be liable on the Treasurer's
official bond for the proper performance of duties and be
held accountable for all cash and securities in his or her
custody. He or she shall keep books and
accounts in the manner prescribed by the board, and they shall always be
subject to the inspection of the board or any member thereof.
(b) The State Comptroller may draw warrants or prepare direct deposit
transmittals payable from the fund upon
the State Treasurer for the purposes herein provided upon the
presentation of vouchers approved by the secretary of
the board. The board shall file with the State Comptroller an attested
copy of a resolution designating such persons as his authority for making
payments upon such vouchers.
(c) At the end of each fiscal year, the board shall have the
accounts and records of the system audited by a person authorized to
practice public accounting under the laws of this state selected by the
Auditor General. Copies of all audits performed shall be filed with the
State Board of Education and the Auditor General.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-188) (Section scheduled to be repealed on January 1, 2027) Sec. 16-188. Proxy voting. (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2. (b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at least three-fifths of the members of the Board, the State Treasurer shall be authorized to manage the domestic and international proxy voting activity for shares held directly by the System and execute required ballots on behalf of the System. The Board's consent granted under this Section may be revoked at any time upon the affirmative vote of a majority of the members of the Board. (c) When the State Treasurer is managing any proxy voting activity in accordance with subsection (b), the following shall apply: (1) the State Treasurer shall provide the Board with (i) comprehensive proxy voting reports on a quarterly basis and as requested by the Board and (ii) access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board; and (2) the Board may provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. (d) The State Treasurer shall act as a fiduciary to the System with regard to all aspects of the State Treasurer's management of the proxy voting activity as provided under subsection (b). (e) With respect to this Section, and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board is exempt from any conflicting statutory or common law obligations, including any fiduciary or co-fiduciary duties under this Article and Article 1. (f) With respect to this Section and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board, its staff, and the trustees of the Board shall not be liable for any damage or suits where damages are sought for negligent or wrongful acts alleged to have been committed in connection with the management of proxy voting activity as provided for under this Section. (g) In order to facilitate the State Treasurer's proxy voting activities under this Section and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. (h) This Section is repealed on January 1, 2027.
(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/16-189) Sec. 16-189. Fiduciary report. On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act. The report shall: (1) describe the Board's strategy as it relates to | ||
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(2) outline the process for regular assessment across | ||
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(3) disclose how each investment manager serving as a | ||
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(4) provide a comprehensive proxy voting report; (5) provide an overview of all corporate engagement | ||
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(6) include any other information the Board deems | ||
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(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/16-189.1) (from Ch. 108 1/2, par. 16-189.1)
Sec. 16-189.1.
Benefits payable monthly.
Retirement annuities and other
benefits, unless otherwise specified in this Article, shall be paid in 12
monthly installments as of the first day of each month and shall cover the
preceding month or proportionate part thereof then due. Provided,
however, upon the death of a member in receipt of a benefit, an annuitant
or a beneficiary, benefits shall be paid through the last day of the month
in which death occurs.
(Source: P.A. 84-1028.)
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(40 ILCS 5/16-190) (from Ch. 108 1/2, par. 16-190)
Sec. 16-190.
Annuities, etc., - exempt.
The right of a person to a retirement annuity or other benefit, to the
return of contributions, the retirement annuity or
other benefit itself,
any optional benefit, any other right accrued
or accruing to any person under the provisions of this Article, and the
moneys in the fund created by this Article, shall be subject neither to
attachment, garnishment, execution, or other seizure by process, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable
except as in this Article provided. A person receiving an annuity or benefit
may authorize withholding from such annuity or benefit for the purposes
enumerated in the "State Salary and Annuity Withholding Act", approved August
21, 1961, as now or hereafter amended. The moneys in the fund are exempt from
any state or municipal tax.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-190.1) (from Ch. 108 1/2, par. 16-190.1)
Sec. 16-190.1.
Payment of benefits on account of minors, disabled persons
and others. Benefits under this Article due minors or disabled persons
as defined in Section 16-140(4) may be paid (1) to any person who has legally
qualified and is acting as guardian of the minor's or disabled person's person
or property in any jurisdiction; or (2) to a parent of the minor or to any
adult person with whom the minor or disabled person may be residing, provided
the board is assured that the moneys will be held in trust or used for the
support of the minor or disabled person; or (3) to the trustee of a trust
established for the benefit of the minor or disabled person. In addition, an
adult person to whom benefits under this Article may be paid, while of sound
mind and memory, may designate in writing any adult person with whom he or she
resides or who provides responsible assistance or advice to him or her in the
conduct of his or her affairs to receive benefits due or to become due to him
or her under this Article, and benefits may be paid in accordance with such
designation provided the board is assured that the same will be held in trust
or used for the support of the person making such designation. The written
receipt from the parent or other adult person shall constitute an absolute
discharge of the system's liability in respect of the amounts paid by the
system.
(Source: P.A. 87-1265.)
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(40 ILCS 5/16-190.5) Sec. 16-190.5. Accelerated pension benefit payment in lieu of any pension benefit. (a) As used in this Section: "Eligible person" means a person who: (1) has terminated service; (2) has accrued sufficient service credit to be | ||
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(3) has not received any retirement annuity under | ||
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(4) has not made the election under Section 16-190.6. "Pension benefit" means the benefits under this Article, or Article 1 as it relates to those benefits, including any anticipated annual increases, that an eligible person is entitled to upon attainment of the applicable retirement age. "Pension benefit" also includes applicable survivor's or disability benefits. (b) As soon as practical after June 4, 2018 (the effective date of Public Act 100-587), the System shall calculate, using actuarial tables and other assumptions adopted by the Board, the present value of pension benefits for each eligible person who requests that information and shall offer each eligible person the opportunity to irrevocably elect to receive an amount determined by the System to be equal to 60% of the present value of his or her pension benefits in lieu of receiving any pension benefit. The offer shall specify the dollar amount that the eligible person will receive if he or she so elects and shall expire when a subsequent offer is made to an eligible person. The System shall make a good faith effort to contact every eligible person to notify him or her of the election. Until June 30, 2026, an eligible person may irrevocably elect to receive an accelerated pension benefit payment in the amount that the System offers under this subsection in lieu of receiving any pension benefit. A person who elects to receive an accelerated pension benefit payment under this Section may not elect to proceed under the Retirement Systems Reciprocal Act with respect to service under this Article. (c) A person's creditable service under this Article shall be terminated upon the person's receipt of an accelerated pension benefit payment under this Section, and no other benefit shall be paid under this Article based on the terminated creditable service, including any retirement, survivor, or other benefit; except that to the extent that participation, benefits, or premiums under the State Employees Group Insurance Act of 1971 are based on the amount of service credit, the terminated service credit shall be used for that purpose. (d) If a person who has received an accelerated pension benefit payment under this Section returns to active service under this Article, then: (1) Any benefits under the System earned as a result | ||
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(2) The accelerated pension benefit payment may not | ||
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(e) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be transferred into a tax qualified retirement plan or account. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (f) Upon receipt of a member's irrevocable election to receive an accelerated pension benefit payment under this Section, the System shall submit a voucher to the Comptroller for payment of the member's accelerated pension benefit payment. The Comptroller shall transfer the amount of the voucher from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall transfer the amount into the member's eligible retirement plan or qualified account. (g) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (h) No provision of Public Act 100-587 shall be interpreted in a way that would cause the applicable System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-558, eff. 8-20-21; 102-718, eff. 5-5-22.) |
(40 ILCS 5/16-190.6) Sec. 16-190.6. Accelerated pension benefit payment for a reduction in annual retirement annuity and survivor's annuity increases. (a) As used in this Section: "Accelerated pension benefit payment" means a lump sum payment equal to 70% of the difference of the present value of the automatic annual increases to a Tier 1 member's retirement annuity and survivor's annuity using the formula applicable to the Tier 1 member and the present value of the automatic annual increases to the Tier 1 member's retirement annuity using the formula provided under subsection (b-5) and the survivor's annuity using the formula provided under subsection (b-6). "Eligible person" means a person who: (1) is a Tier 1 member; (2) has submitted an application for a retirement | ||
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(3) meets the age and service requirements for | ||
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(4) has not received any retirement annuity under | ||
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(5) has not made the election under Section 16-190.5. (b) As soon as practical after June 4, 2018 the effective date of Public Act 100-587) and until June 30, 2026, the System shall implement an accelerated pension benefit payment option for eligible persons. Upon the request of an eligible person, the System shall calculate, using actuarial tables and other assumptions adopted by the Board, an accelerated pension benefit payment amount and shall offer that eligible person the opportunity to irrevocably elect to have his or her automatic annual increases in retirement annuity calculated in accordance with the formula provided under subsection (b-5) and any increases in survivor's annuity payable to his or her survivor's annuity beneficiary calculated in accordance with the formula provided under subsection (b-6) in exchange for the accelerated pension benefit payment. The election under this subsection must be made before the eligible person receives the first payment of a retirement annuity otherwise payable under this Article. (b-5) Notwithstanding any other provision of law, the retirement annuity of a person who made the election under subsection (b) shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 1.5% of the originally granted retirement annuity. (b-6) Notwithstanding any other provision of law, a survivor's annuity payable to a survivor's annuity beneficiary of a person who made the election under subsection (b) shall be subject to annual increases on the January 1 occurring on or after the first anniversary of the commencement of the annuity. Each annual increase shall be calculated at 1.5% of the originally granted survivor's annuity. (c) If a person who has received an accelerated pension benefit payment returns to active service under this Article, then: (1) the calculation of any future automatic annual | ||
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(2) the accelerated pension benefit payment may not | ||
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(d) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be transferred into a tax qualified retirement plan or account. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (d-5) Upon receipt of a member's irrevocable election to receive an accelerated pension benefit payment under this Section, the System shall submit a voucher to the Comptroller for payment of the member's accelerated pension benefit payment. The Comptroller shall transfer the amount of the voucher from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall transfer the amount into the member's eligible retirement plan or qualified account. (e) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (f) No provision of this Section shall be interpreted in a way that would cause the applicable System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.) |
(40 ILCS 5/16-191) (from Ch. 108 1/2, par. 16-191)
Sec. 16-191.
No gain or profit on investments.
No trustee or employee of the board shall have any interest in the gains
or profits of any investment made by the board, or as such receive any pay
or emolument for his or her services. No trustee or employee of the board shall,
directly or indirectly, for himself or herself or as an agent, in any
manner use such
gains or profits except to make current and necessary payments authorized
by the board. No trustee or employee of the board shall become an endorser
or surety or in any manner an obligor for moneys loaned or borrowed from
the board.
Any person violating any of the provisions of this section is guilty of
a petty offense.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-192) (from Ch. 108 1/2, par. 16-192)
Sec. 16-192.
Correction of errors.
Should any change or error in the records result in any member, annuitant
or beneficiary receiving from the system more or less than he or she would have been
entitled to receive had the records been correct, the board shall correct
such error, and, as far as practicable, shall adjust the payments in such a
manner that the actuarial equivalent of the benefit to which such
member, annuitant or beneficiary was entitled shall be paid; however, in
no event shall the system be required to change the records of any member,
annuitant or beneficiary if, at the time of discovery of the error,
more than 4 fiscal years have elapsed since the fiscal
year in which the error occurred.
(Source: P.A. 85-1008; 86-1488.)
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(40 ILCS 5/16-193) (from Ch. 108 1/2, par. 16-193)
Sec. 16-193.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted and hereafter amended, is hereby adopted and made a part of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-197) (from Ch. 108 1/2, par. 16-197)
Sec. 16-197.
Undivided interest.
All assets of the system shall be invested as one fund and no person,
group of persons or entity shall have any right other than to an undivided
interest in the whole, and all references to the reserves shall be
construed as not requiring a segregation of assets but only the maintenance
of a separate account indicating the equities in the assets as a whole.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-198) (from Ch. 108 1/2, par. 16-198)
Sec. 16-198.
Fraud.
Any person, member, trustee, or employee of the board who knowingly
makes any false statement or falsifies or permits to be falsified any
record of this retirement system in any attempt to defraud such system as a
result of such act, or intentionally or knowingly defrauds this retirement
system in any manner, is guilty of a Class A misdemeanor.
(Source: P.A. 77-2830.)
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(40 ILCS 5/16-199) (from Ch. 108 1/2, par. 16-199)
Sec. 16-199. Felony conviction. None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his or her service as a teacher.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the teacher from whom the benefit results. This Section shall not operate to impair any contract or vested right acquired
prior to July 9, 1955 under any law or laws
continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly. The System may sue any such person to
collect all moneys paid in excess of refundable contributions.
All teachers entering or re-entering service after July 9, 1955 shall be
deemed to have consented to the provisions of this Section as a condition
of membership, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/16-200) (from Ch. 108 1/2, par. 16-200)
Sec. 16-200.
Administrative review.
The Administrative Review Law, and
all amendments and modifications thereof, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the judicial review
of final administrative decisions of the board provided for under this
Article. The term "administrative decision" is defined as in Section 3-101
of the Code of Civil Procedure. The venue for actions brought under the
Administrative Review Law shall be Sangamon County.
(Source: P.A. 87-794.)
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(40 ILCS 5/16-201) (from Ch. 108 1/2, par. 16-201)
Sec. 16-201.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-202) (from Ch. 108 1/2, par. 16-202)
Sec. 16-202.
Savings clause.
The repeal or amendment of any Section
or provision of this Article by this amendatory Act of 1984 shall not affect
or impair any pensions, benefits, rights or credits accrued or in effect
prior thereto.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 95-910, Public Act 100-23, Public Act 100-587, Public Act 100-743, Public Act 100-769, Public Act 101-10, Public Act 101-49, Public Act 102-16, or Public Act 102-871. (b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law. (e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. 6-30-23.) |
(40 ILCS 5/16-204) Sec. 16-204. Optional defined contribution benefit. As soon as practicable after the effective date of this amendatory Act of the 100th General Assembly, the System shall offer a defined contribution benefit to active members of the System. The defined contribution benefit shall be an optional benefit to any member who chooses to participate. The defined contribution benefit shall collect optional employee and optional employer contributions into an account and shall offer investment options to the participant. The benefit under this Section shall be operated in full compliance with any applicable State and federal laws, and the System shall utilize generally accepted practices in creating and maintaining the benefit for the best interest of the participants. In administering the defined contribution benefit, the System shall require that the defined contribution benefit recordkeeper agree that, in performing services with respect to the defined contribution benefit, the recordkeeper: (i) will not use information received as a result of providing services with respect to the defined contribution benefit or the participants in the defined contribution benefit to solicit the participants in the defined contribution benefit for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the defined contribution benefit; and (ii) will not promote, recommend, endorse, or solicit participants in the defined contribution benefit to purchase any financial products or services outside of the defined contribution benefit, except that links to parts of the recordkeeper's website that are generally available to the public, are about commercial products, and may be encountered by a participant in the regular course of navigating the recordkeeper's website will not constitute a violation of this item (ii). The System may use funds from the employee and employer contributions to defray any and all costs of creating and maintaining the benefit. In addition, the System may use funds provided under Section 16-158 of this Code to defray any and all costs of creating and maintaining the benefit and then shall reimburse those costs from funds received from the employee and employer contributions under this Section. All employers must comply with the reporting and administrative functions established by the System and are required to implement the benefits established under this Section. The System shall produce an annual report on the participation in the benefit and shall make the report public.
As soon as is practicable on or after January 1, 2022, the System shall automatically enroll any employee who first becomes an active member or participant in the System. A member automatically enrolled under this Section shall have 3% of his or her pre-tax gross compensation for each compensation period deferred into his or her deferred compensation account, unless the member otherwise instructs the System on forms approved by the System. A member may elect, in a manner provided for by the System, to not participate in the defined contribution benefit or to increase or reduce the amount of pre-tax gross compensation contributed, consistent with State or federal law. A member shall be automatically enrolled in the benefit beginning the first day of the pay period following the member's 30th day of employment. A member who has been automatically enrolled in the benefit may elect, within 90 days of enrollment, to withdraw from the benefit and receive a refund of amounts deferred, plus or minus any applicable earnings, investment fees, and administrative fees. Any refunded amount shall be included in the member's gross income for the taxable year in which the refund is issued. On or after January 1, 2023, the System may elect to increase the automatic annual contributions under this Section. The increase in the rate of contribution, however, shall not exceed 2% of a member's pre-tax gross compensation per year, and at no time shall any total contribution exceed any contribution limits established by State or federal law. (Source: P.A. 102-540, eff. 8-20-21; 103-552, eff. 8-11-23.) |
(40 ILCS 5/16-205)
Sec. 16-205. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/16-206)
Sec. 16-206. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/Art. 17 heading) ARTICLE 17.
PUBLIC SCHOOL TEACHERS' PENSION AND RETIREMENT FUND--CITIES OF
OVER 500,000 INHABITANTS
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(40 ILCS 5/17-101) (from Ch. 108 1/2, par. 17-101)
Sec. 17-101.
Creation of fund.
In each city with a population over 500,000, there is created a Public
School Teachers' Pension and Retirement Fund to be maintained and
administered in the manner prescribed in this Article and to be known as
the Public School Teachers' Pension and Retirement Fund of ....(city).
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-102) (from Ch. 108 1/2, par. 17-102)
Sec. 17-102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 17-103 to 17-113, inclusive, except when the context
otherwise requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-103) (from Ch. 108 1/2, par. 17-103)
Sec. 17-103.
Actuarial equivalent.
"Actuarial equivalent": A pension equal to the value of another sum or
pension when computed according to the actuarial tables and rate of
interest in use by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-104) (from Ch. 108 1/2, par. 17-104)
Sec. 17-104.
Board.
"Board": Board of Trustees of the Public School Teachers' Pension and
Retirement Fund of ....(city) as created in this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-105) (from Ch. 108 1/2, par. 17-105)
Sec. 17-105.
Board of Education.
"Board of Education": The Board of Education in a city in which the fund
provided by this Article is maintained and operated.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-105.1)
Sec. 17-105.1. Employer. "Employer": The Board of Education, a
charter school as defined under the provisions of Section 27A-5 of the School
Code, and a contract school operating pursuant to an agreement with the Board of Education.
(Source: P.A. 102-636, eff. 8-27-21.)
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(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher. "Contributor", "member"
or "teacher": All members of the teaching force of the city, including
principals, assistant principals, the general superintendent of schools,
deputy superintendents of schools, associate superintendents of schools,
assistant and district superintendents of schools, members of the Board of
Examiners, all other persons whose employment requires a teaching certificate
issued under the laws governing the certification of teachers, any educational staff employed in a contract school operating pursuant to an agreement with the Board of Education who is employed in a position requiring certification or licensure under the School Code (excluding all managerial, supervisory, and confidential employees) and is required to or elects to participate pursuant to Section 17-134.2, any educational,
administrative, professional, or other staff employed in a charter school
operating in compliance with the Charter Schools Law who is certified under
the law governing the certification of teachers, and employees of the Board,
but excluding persons contributing concurrently to any other public employee
pension system in Illinois for the same employment or receiving retirement
pensions under another Article of this Code for that same employment, persons
employed on an hourly basis (provided that an Employer may not reclassify a non-hourly employee as an hourly employee for the purpose of evading or avoiding its obligations under this Article), and persons receiving pensions from the Fund who
are employed temporarily by an Employer and not on an annual basis.
All teachers or staff regardless of their position shall presumptively be participants in the Fund, unless the Employer establishes to the satisfaction of the Board that an individual certified teacher or staff member is not working as a teacher or administrator directly or indirectly with the Charter School. Any certified teacher or staff employed by a corporate or non-profit entity engaged in the administration of a charter school shall presumptively be a participant in the Fund, unless the organization establishes to the satisfaction of the Board that an individual certified teacher or staff member is not working as a teacher or administrator directly or indirectly with the Charter School. In the case of a person who has been making contributions and otherwise
participating in this Fund prior to the effective date of this amendatory
Act of the 91st General Assembly, and whose right to participate in
the Fund is established or confirmed by this amendatory Act, such prior
participation in the Fund, including all contributions previously made and
service credits previously earned by the person, are hereby validated.
The changes made to this Section and Section 17-149 by this amendatory
Act of the 92nd General Assembly apply without regard to whether the person
was in service on or after the effective date of this amendatory Act,
notwithstanding Sections 1-103.1 and 17-157.
(Source: P.A. 102-636, eff. 8-27-21.)
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(40 ILCS 5/17-106.1) Sec. 17-106.1. Administrator. Administrator means a member who (i) is employed in a position that requires him or her to hold a professional educator license with an administrative endorsement issued by the State Board of Education, (ii) is not on the Chicago teachers' or the Chicago charter school teachers' salary schedule, or (iii) is paid on an administrative payroll.
(Source: P.A. 102-210, eff. 1-1-22.) |
(40 ILCS 5/17-107) (from Ch. 108 1/2, par. 17-107)
Sec. 17-107.
Creditable service.
"Creditable service": Service for which pension credits have not been
validated concurrently with its rendition, but which may be validated for
pension purposes upon compliance with the conditions prescribed in this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-108) (from Ch. 108 1/2, par. 17-108)
Sec. 17-108.
Fiscal year and school year.
"Fiscal year" and "school year": Beginning July 1, 1999, the period
beginning on the 1st day of July of one calendar year and ending on the 30th
day of June of the next calendar year. Each fiscal year and each school year
shall be designated for convenience with the same number as the calendar year
in which that fiscal year or school year ends. The fiscal year which begins
September 1, 1998 shall end June 30, 1999.
(Source: P.A. 90-548, eff. 12-4-97.)
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(40 ILCS 5/17-109) (from Ch. 108 1/2, par. 17-109)
Sec. 17-109.
Fund.
"Fund": The Public School Teachers' Pension and Retirement Fund of
....(city).
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-109.1) (from Ch. 108 1/2, par. 17-109.1)
Sec. 17-109.1.
Pension deferred.
"Pension deferred": A pension of a sum determined on termination of
service but payable upon the expiration of a fixed period of time, provided
the person concerned is alive at such date. All such pensions shall be
calculated in accordance with the laws in effect at the date of termination
of service.
(Source: P.A. 83-792.)
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(40 ILCS 5/17-109.2) (from Ch. 108 1/2, par. 17-109.2)
Sec. 17-109.2.
Pension pending period.
"Pension pending period": The time required to process all details attendant on
the granting of a pension after (1) filing an application therefor and (2)
official termination of service.
(Source: P.A. 83-792.)
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(40 ILCS 5/17-110) (from Ch. 108 1/2, par. 17-110)
Sec. 17-110.
Pension period.
"Pension period": All time during which service is creditable for
pension purposes pursuant to this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-111) (from Ch. 108 1/2, par. 17-111)
Sec. 17-111.
Reversionary pension.
"Reversionary pension": A pension computed on an actuarially equated
basis and payable to a contributor's beneficiary designated under a
prescribed option before retirement, commencing upon the death of the
contributor after retirement on pension and continuing thereafter during
the life of the beneficiary.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-111.1) (from Ch. 108 1/2, par. 17-111.1)
Sec. 17-111.1.
Gender.
Whenever used in this Act, the masculine gender shall be understood to
include the feminine gender.
(Source: P.A. 78-1129.)
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(40 ILCS 5/17-112) (from Ch. 108 1/2, par. 17-112)
Sec. 17-112.
Supplementary payment.
"Supplementary payment": The payment from the retired teachers'
supplementary payment fund necessary to increase a retired teacher's
service or disability retirement pension to the amount provided in Section
17-154.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-113) (from Ch. 108 1/2, par. 17-113)
Sec. 17-113.
Validated service.
"Validated service": Service accredited for pension purposes under this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-114) (from Ch. 108 1/2, par. 17-114)
Sec. 17-114. Computation of service. (a) When computing days of validated service, contributors shall receive one day of service credit for each day for which they are paid salary representing a partial or a full day of employment rendered to an Employer or the Board. (b) When computing months of validated service, 17 or more days of service rendered to an Employer or the Board in a calendar month shall entitle a contributor to one month of service credit for purposes of this Article. (c) When computing years of validated service rendered, 170 or more days of service in a fiscal year or 10 or more months of service in a fiscal year shall constitute one year of service credit. (d) Notwithstanding subsections (b) and (c) of this Section, validated service in any fiscal year shall be that fraction of a year equal to the ratio of the number of days of service to 170 days. (e) For purposes of this Section, no contributor shall earn (i) more than one year of service credit per fiscal year, (ii) more than one day of service credit per calendar day, or (iii) more than 10 days of service credit in a 2 calendar week period as determined by the Fund.
(Source: P.A. 99-176, eff. 7-29-15.)
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(40 ILCS 5/17-114.1) (from Ch. 108 1/2, par. 17-114.1)
Sec. 17-114.1.
(a) Any active member of the General Assembly Retirement
System may apply for transfer of his credits and creditable service accumulated
under this Fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding any additional
or optional credits, which credits shall be refunded to the applicant; and
(2) employer credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 81-1128.)
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(40 ILCS 5/17-114.2) (from Ch. 108 1/2, par. 17-114.2)
Sec. 17-114.2.
Transfer of creditable service to Article 8, 9 or 13
Fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, any county officer elected by vote of the people
who is a participant in the pension fund established under Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in a
pension fund established under Article 13 of this Code,
may apply for transfer of his credits and creditable service
accumulated under this Fund to such Article 8, 9 or 13 fund. Such
creditable service shall be transferred forthwith. Payment by this Fund to
the Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions computed by the Board and | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner
may reinstate credits and creditable service terminated upon receipt of a
separation benefit, by payment to the Fund of the amount of the separation
benefit plus interest thereon to the date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/17-114.3) (from Ch. 108 1/2, par. 17-114.3)
Sec. 17-114.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of the amount by which (1) the employer
and employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest thereon at 6% per annum
compounded annually from the date of such participation to the date of
payment, exceeds (2) the amounts actually transferred under that Section to
the Fund.
(Source: P.A. 86-272.)
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(40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115)
Sec. 17-115.
Eligibility for service retirement pension.
(a) The Board shall find a contributor eligible for service
retirement pension when he has:
(1) Left the employment of an Employer after | ||
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(2) Contributed to the Fund the total sums provided | ||
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(3) Contributed as a member of the teaching force in | ||
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(4) Filed a written application for pension.
(b) In computing the years of service for which annuity is granted, the
following conditions shall apply:
(1) No more than 10 years of teaching service in | ||
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(2) Up to 5 years of military active service, if | ||
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(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
Sec. 17-116. Service retirement pension.
(a) Each teacher having 20 years of service upon attainment of age 55,
or who thereafter attains age 55 shall be entitled to a service retirement
pension upon or after attainment of age 55; and each teacher in service on or
after July 1, 1971, with 5 or more but less than 20 years of service shall be
entitled to receive a service retirement pension upon or after attainment of
age 62.
(b) The service retirement pension
for a teacher who retires on or after June 25, 1971, at age
60 or over, shall be calculated as follows:
(1) For creditable service earned before July 1, 1998 | ||
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(2) For creditable service earned on or after July 1, | ||
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(3) For all other creditable service: 2.2% of | ||
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(c) When computing such service retirement pensions, the
following conditions shall apply:
1. Average salary shall consist of the average annual | ||
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2. Proportionate credit shall be given for validated | ||
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3. For retirement at age 60 or over the pension shall | ||
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4. For separation from service below age 60 to a | ||
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5. No additional pension shall be granted for service | ||
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6. Service retirement pensions shall begin on the | ||
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7. A member who is eligible to receive a retirement | ||
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8. A member retiring after the effective date of this | ||
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(Source: P.A. 101-263, eff. 8-9-19.)
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(40 ILCS 5/17-116.1)
Sec. 17-116.1. (Repealed).
(Source: P.A. 94-4, eff. 6-1-05. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.3)
Sec. 17-116.3. (Repealed).
(Source: P.A. 92-416, eff. 8-17-01. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.4)
Sec. 17-116.4. (Repealed).
(Source: P.A. 92-416, eff. 8-17-01. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.5)
Sec. 17-116.5. (Repealed).
(Source: P.A. 88-511. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.6)
Sec. 17-116.6. (Repealed).
(Source: P.A. 90-655, eff. 7-30-98. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
Sec. 17-117.
Disability retirement pension.
(a) The conditions prescribed in items 1 and 2 in Section 17-116 for
computing service retirement pensions shall apply in the computation of
disability retirement pensions.
(1) Each teacher retired or retiring after 10 years | ||
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(2) If the total service is 20 years and less than 25 | ||
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(3) If the total service is 20 years or more and the | ||
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(4) If the total service is 25 years or more | ||
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(5) If the total service is 20 years or more and the | ||
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(b) For disability retirement pensions, the following further
conditions shall apply:
(1) Written application shall be submitted within 3 | ||
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(2) The applicant shall submit to examination by | ||
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(3) Two physicians, appointed by the Board, shall | ||
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(c) Disability retirement pensions shall begin on the effective date of
resignation or the day following the close of the payroll period for
which credit was validated, whichever is later.
(Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)
Sec. 17-117.1. Duty disability. A teacher who becomes wholly and
presumably permanently incapacitated for duty while under age
65 as the proximate result of injuries sustained or a hazardous
condition encountered in the performance and within the scope of his
duties, if such injury or hazard was not the result of his own
negligence, shall be entitled to a duty disability benefit, provided:
(1) application for the benefit is made to the Board | ||
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(2) certification is received from 2 or more | ||
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(3) the teacher provides the Board with a copy of the | ||
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The benefit shall be payable during disability and shall be 75% of
the salary in effect at date of disability, payable until the teacher's
attainment of age 65. At such time if disability still exists, the
teacher shall become entitled to a service retirement pension.
Creditable service shall accrue during the period the disability benefit
is payable.
Before any action is taken by the Board on an application for a
duty
disability benefit, the teacher shall file a claim with the Illinois Workers' Compensation
Commission to establish that the disability was incurred while the
teacher was acting within the scope of and in the course of his duties
under the terms of the Workers' Compensation or Occupational Diseases
Acts, whichever may be applicable. The benefit shall be payable after a
finding by the Commission that the claim was compensable under either of
the aforesaid Acts; but if such finding is appealed the benefit shall be
payable only upon affirmance of the Commission's finding. After the
teacher has made timely application for a duty disability benefit
supported by the certificate of two or more physicians, he shall be
entitled to a disability retirement pension provided in Section 17-117
of this Act until such time as the Illinois Workers' Compensation Commission award finding
that his disability is duty-connected as provided in this Section
becomes final.
Any amounts provided for the teacher under such Acts shall be applied
as an offset to the duty disability benefit payable hereunder in such
manner as may be prescribed by the rules of the Board.
(Source: P.A. 93-721, eff. 1-1-05.)
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(40 ILCS 5/17-118) (from Ch. 108 1/2, par. 17-118)
Sec. 17-118.
Disability pension administration.
A disability
pensioner may be required to submit to an examination periodically by a
physician or physicians appointed by the Board. The purpose of
the
examination is to establish whether the disability still exists and to
determine whether the person is still incapacitated for teaching service
or service as an employee of the Board. The Board
may require disability
pensioners to submit evidence of the continued existence of the
disability. The Board may also employ investigative services to
determine whether such pensioners are employed elsewhere as teachers or
to establish whether they are still disabled.
The Board shall cancel a disability pension upon evidence that
a
pensioner is no longer incapacitated for teaching or service as an
employee of the Board. However, if a pensioner has attained age
55 and
has 20 or more years of service, the pension shall not be cancelled
unless he is re-employed as a teacher or as a pensioner-substitute. If a
disability pensioner is re-employed as a teacher or
pensioner-substitute, the pension shall be cancelled on the first day of
re-employment. The pensioner shall reimburse the Fund for pension
payments received after the date of re-employment (if any), plus 5%
interest compounded annually beginning one year after the Fund's
notification of the cancellation and indebtedness. Upon cancellation of
a disability pension, unless such person re-enters service and becomes a
contributor, a refund shall be payable of the excess, if any, of the
refundable contributions paid by him over the amount
paid in disability
pension.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
Sec. 17-119.
Automatic annual increase in pension.
Each teacher
retiring on or after September 1, 1959, is entitled to the annual
increase in pension, defined herein, while he is receiving a
pension from the Fund.
1. The term "base pension" means a service retirement or disability
retirement pension in the amount fixed and payable at the date of
retirement of a teacher.
2. The annual increase in pension shall be at the rate of 1 1/2% of
base pension. This increase shall first occur in January of the year
next following the first anniversary of retirement. At such time the
Fund shall pay the pro rata part of the increase for the period
from the
first anniversary date to the date of the first increase in
pension. Beginning January 1, 1972, the rate of annual increase in
pension shall be 2% of the base pension. Beginning January 1, 1979, the
rate of annual increase in pension shall be 3% of the base pension.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total pension
payable at the time of the increase, including all increases previously
granted under this Article, notwithstanding Section 17-157.
3. An increase in pension shall be granted only if the retired
teacher is age 60 or over. If the teacher attains age 60 after
retirement, the increase in pension shall begin in January of the
year following the 61st birthday. At such time the Fund also shall
pay
the pro rata part of the increase from the 61st birthday to the date of
first increase in pension.
In addition to other increases which may be provided by this Section, on
January 1, 1981 any teacher who was receiving a retirement pension on or
before January 1, 1971 shall have his retirement pension then being paid
increased $1 per month for each year of creditable service. On January
1, 1982, any teacher whose retirement pension began on or before January 1,
1977, shall have his retirement pension then being paid increased $1 per
month for each year of creditable service.
On January 1, 1987, any teacher whose retirement pension began
on or before January 1, 1977, shall have the monthly retirement pension
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the retirement pension began.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-119.1)
Sec. 17-119.1.
Optional increase in retirement annuity.
(a) A member of the Fund may qualify for the augmented rate under
subdivision (b)(3) of Section 17-116 for all years of creditable service
earned before July 1, 1998 by making the optional contribution specified in
subsection (b); except that a member who retires on or after July 1, 1998
with at least 30 years of creditable service at retirement qualifies for the
augmented rate without making any contribution under subsection (b). Any
member who retires on or after July 1, 1998 and before the effective date of
this amendatory Act of the 92nd General Assembly with at least 30 years of
creditable service shall be paid a lump sum equal to the amount he or she would
have received under the augmented rate minus the amount he or she actually
received. A member may not elect to qualify for the augmented rate for only
a portion of his or her creditable service earned before July 1, 1998.
(b) The contribution shall be an amount equal to 1.0% of the member's
highest salary rate in the 4 consecutive school years immediately prior to but
not including the school year in which the application occurs, multiplied by
the number of years of creditable service earned by the member before July 1,
1998 or 20, whichever is less. This contribution shall be reduced by 1.0% of
that salary rate for every 3 full years of creditable service earned by the
member after June 30, 1998. The contribution shall be further reduced at
the rate of 25% of the contribution (as reduced for service after June 30,
1998) for each year of the member's total creditable service in excess of 34
years. The contribution shall not in any event exceed 20% of that salary
rate.
The member shall pay to the Fund the amount of the contribution as
calculated at the time of application under this Section. The amount of the
contribution determined under this subsection shall be recalculated at the time
of retirement, and if the Fund determines that the amount paid by the member
exceeds the recalculated amount, the Fund shall refund the difference to the
member with regular interest from the date of payment to the date of refund.
The contribution required by this subsection shall be paid in one of the
following ways or in a combination of the following ways that does not extend
over more than 5 years:
(i) in a lump sum on or before the date of retirement;
(ii) in substantially equal installments over a | ||
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(iii) in substantially equal monthly installments | ||
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(c) If the member fails to make the full contribution under this Section
in a timely fashion, the payments made under this Section shall be refunded
to the member, without interest. If the member (including a member who has
become an annuitant) dies before making the full
contribution, the payments made under this Section shall be refunded to the
member's designated beneficiary if there is no survivor's or children's
pension benefit payable. If there is a survivor's or children's benefit
payable, then all payments made under this Section shall be retained by the
Fund and all such survivor's or children's benefits payable shall be calculated
as if all contributions required under this Section have been paid in full.
(d) For purposes of this Section and subsection (b) of Section
17-116, optional creditable service established by a member shall be deemed to
have been earned at the time of the employment or other qualifying event upon
which the service is based, rather than at the time the credit was established
in this Fund.
(e) The contributions required under this Section are the responsibility of
the teacher and not the teacher's employer. However, an employer of teachers
may, after the effective date of this amendatory Act of 1998,
specifically agree, through collective bargaining or otherwise, to make the
contributions required by this Section on behalf of those teachers.
(Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599, eff. 6-28-02;
92-651, eff. 7-11-02.)
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(40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120)
Sec. 17-120.
Reversionary pension.
Any contributor, at any
time prior to retirement on a service
retirement pension, may exercise an option of taking a lesser amount of
service retirement pension and providing with the remainder of his equity,
determined on an actuarial equivalent basis, a reversionary pension benefit
for any person named in a written designation filed by the contributor with
the Board, provided that the pension resulting from such election
is not
less than $40 per month, or more than the reduced pension payable after the
exercise of the option. If the reduced pension to the retired teacher is
less than that provided for a beneficiary, whether or not the aforesaid
minimum amount is payable, the election shall be void.
The pension to a beneficiary shall begin on the first day of the month
next following the month in which the retired teacher dies.
If the beneficiary survives the date of retirement of the teacher, but does
not survive the retired teacher, no reversionary pensions shall be payable,
and the teacher's service pension shall be restored
to the full service pension amount beginning on the first day of the month next
following the month in which the beneficiary dies or on the effective date
of this amendatory Act of 1997, whichever occurs later.
If the beneficiary dies after the election but before the
retirement of the teacher, the election shall be void. No change shall be
permitted in the written designation filed with the Board.
In the case of a reversionary annuity elected on or after January 1,
1984, no reversionary annuity shall be paid if the teacher dies before the
expiration of 730 days from the date that a written designation was filed
with the Board, even though the teacher was receiving a reduced
annuity.
Sections 1-103.1 and 17-157 do not apply to the changes made to this
Section by this amendatory Act of 1997.
(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
Sec. 17-121.
Survivor's pensions - Eligibility.
(a) A surviving spouse of a teacher shall be entitled to a survivor's
pension only if the surviving spouse was married to the teacher for at least one year immediately prior to
the teacher's death.
The changes made to this subsection (a) by this amendatory Act of the 92nd
General Assembly apply (i) only to the surviving spouse of a person who dies on
or after the effective date of this amendatory Act, and only if the amount of
any refund of contributions for survivor's pension is repaid with interest in
accordance with subsection (f), and (ii) notwithstanding Section 17-157 and
without regard to whether the deceased person was in service on or after the
effective date of this amendatory Act.
(b) If the surviving spouse is under age 50 and there are no eligible
minor children born to or legally adopted by the contributor and his or her
surviving spouse, payment of the survivor's pension shall begin when the
surviving spouse attains age 50.
(c) Beginning January 1, 2003, the remarriage of a surviving spouse at
any age does not terminate his or her survivor's pension.
A surviving spouse whose survivor's pension (or expectation of a survivor's
pension upon attainment of age 50) was terminated before January 1, 2003 due
to remarriage and who applies for reinstatement of that pension and repays the
amount of any refund of contributions for survivor's pension with interest in
accordance with subsection (f) shall be entitled to have the survivor's pension
(or
expectation of a survivor's pension upon attainment of age 50) reinstated.
The reinstated pension shall begin to accrue on the first day of the month
following the month in which the application and repayment, if any, are
received by the Fund, but in no event sooner than January 1, 2003 and, if
subsection (b) applies, no sooner than upon attainment of age 50. The
reinstated pension shall include any one-time or annual increases in the
survivor's pension received prior to the date of termination, but not any
increases that would otherwise have accrued from the date of termination to
the date of reinstatement.
This subsection (c) applies notwithstanding Section 17-157 and without
regard to whether the deceased teacher was in service on or after the
effective date of this amendatory Act of the 92nd General Assembly.
(d) Except as provided in subsection (c), remarriage of the surviving
spouse prior to September 1, 1983 while in receipt of a survivor's pension
shall permanently terminate payment thereof, regardless of any subsequent
change in marital status; however, beginning September 1, 1983, remarriage
of a surviving spouse after attainment of age 55 shall not terminate the
survivor's pension.
A surviving spouse whose pension was terminated on or after September
1, 1983 due to remarriage after attainment of age 55, and who applies for
reinstatement of that pension before January 1, 1990, shall be entitled to
have the pension reinstated effective January 1, 1990.
(e) A surviving spouse of a member or annuitant under this Fund who is
also a dependent beneficiary under the provisions of Section 16-140 is eligible
for a reciprocal survivor's pension, provided that any refund of survivor's
pension contributions is repaid to the Fund and application is made within 30
days after the effective date of this amendatory Act of the 92nd General
Assembly.
(f) If a refund of contributions for survivor's pension has been paid, a
person choosing to establish or reestablish the right to receive a survivor's
pension pursuant to the changes made to this Section by this amendatory Act of
the 92nd General Assembly must first repay to the Fund the amount of the refund
of contributions for survivor's pension, together with interest thereon at the
rate of 5% per year, compounded annually, from the date of the refund to the
date of repayment.
(Source: P.A. 92-416, eff. 8-17-01; 92-599, eff. 6-28-02.)
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(40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
Sec. 17-122.
Survivor's and children's pensions - Amount.
Upon the
death of a teacher who has completed at least 1 1/2 years of
contributing service with either this Fund or the State Universities
Retirement System or the Teachers' Retirement System of the State of
Illinois, provided his death occurred while (a) in active service
covered by the Fund or during his first 18 months of continuous
employment without a break in service under any other participating
system as defined in the Illinois Retirement Systems Reciprocal Act
except the State Universities Retirement System and the Teachers'
Retirement System of the State of Illinois, (b) on a creditable leave of
absence, (c) on a noncreditable leave of absence of no more than one
year, or (d) a pension was deferred or pending provided the teacher had
at least 10 years of validated service credit, or upon the death of a
pensioner otherwise qualified for such benefit, the surviving spouse and
unmarried minor children of the deceased teacher under age 18 shall be
entitled to pensions, under the conditions stated hereinafter. Such
survivor's and children's pensions shall be based on the average of the
4 highest consecutive years of salary in the last 10 years of service or
on the average salary for total service, if total service has been less
than 4 years, according to the following percentages:
30% of average salary or 50% of the retirement pension earned by the
teacher, whichever is larger, subject to the prescribed maximum monthly
payment, for a surviving spouse alone on attainment of age 50;
60% of average salary for a surviving spouse and eligible minor
children of the deceased teacher.
If no eligible spouse survives, or the surviving spouse remarries, or
the parent of the children of the deceased member is otherwise
ineligible for a survivor's pension, a children's pension for eligible
minor children under age 18 shall be paid to their parent or legal
guardian for their benefit according to the following percentages:
30% of average salary for one child;
60% of average salary for 2 or more children.
On January 1, 1981, any survivor or child who was receiving a survivor's
or children's pension on or before January 1, 1971, shall have his survivor's
or children's pension then being paid increased by 1% for each full year
which has elapsed from the date the pension began. On January 1, 1982,
any survivor or child whose pension began after January 1, 1971, but before
January 1, 1981, shall have his survivor's or children's pension then being
paid increased 1% for each full year which has elapsed from the date the
pension began. On January 1, 1987, any survivor or child whose pension began
on or before January 1, 1977, shall have the monthly survivor's or
children's pension increased by $1 for each full year which has elapsed
since the pension began.
Beginning January 1, 1990, every survivor's and children's pension shall be
increased (1) on each January 1 occurring on or after the commencement of the
pension if the deceased teacher died while receiving a retirement pension, or
(2) in other cases, on each January 1 occurring on or after the first
anniversary of the commencement of the pension, by an amount equal to 3% of the
current amount of the pension, including all increases previously granted under
this Article, notwithstanding Section 17-157. Such increases shall apply
without regard to whether the deceased teacher was in service on or after the
effective date of this amendatory Act of 1991, but shall not accrue for any
period prior to January 1, 1990.
Subject to the minimum established below, the maximum amount of
pension for a surviving spouse alone or one
minor child shall be $400 per month, and the maximum combined pensions for
a surviving spouse and children of the deceased teacher shall be $600
per month, with individual pensions adjusted for all beneficiaries
pro rata to conform with this limitation. If proration is unnecessary
the minimum survivor's and children's pensions shall be $40 per month. The
minimum total survivor's and children's pension payable upon the death of a
contributor or annuitant which occurs after December 31, 1986, shall be 50% of
the earned retirement pension of such contributor or annuitant, calculated
without early retirement discount in the case of death in service.
On death after retirement, the total survivor's and children's
pensions shall not exceed the monthly retirement or disability pension
paid to the deceased retirant. Survivor's and children's benefits described
in this Section shall apply to all service and disability pensioners eligible
for a pension as of July 1, 1981.
(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-123) (from Ch. 108 1/2, par. 17-123)
Sec. 17-123.
Death benefits - Death in service.
If a teacher dies (a) in
service, (b) after resignation or (c) after retirement but before receiving
any pension payment, his or her estate shall be paid a refund of the
amounts he or she contributed to the Fund less (1) any former refund that
has not been repaid, (2) the amount contributed for a survivor's pension in
the event such pension is payable under Sections 17-121 and 17-122 and (3) pension payments received; but if a written
direction, signed by the contributor before an officer authorized to take
acknowledgments and stating that the refund shall be paid to named
beneficiaries, was filed with the Board prior to his or her death, the
refund shall be paid to such named beneficiaries. If any of several named
beneficiaries does not survive the contributor and no directive was furnished
by the member to cover this contingency, the deceased beneficiary's share of
the refund shall be paid to the estate of the
contributor.
In addition to the payment provided in the foregoing paragraph, if
such teacher has received service credit within 13 calendar months of
the date of death or was on a sick leave authorized by the Employer
at the time of death, and if no other pensions or benefits
were payable under the provisions of this Article or any other
participating system, as defined in the Illinois Retirement Systems
Reciprocal Act, except a refund of contributions or a survivor's pension,
there shall be paid a single payment death benefit. For a teacher who
dies on or after the effective date of this amendatory Act of 1991, this
benefit shall be equal to the last month's base rate of salary, subject
to the limitations and conditions set forth in this Article, for each
year of validated service, not to exceed 6 times such salary, or $10,000,
whichever is less. The single payment death benefit shall be paid in the
manner prescribed for a refund of contributions to the Fund.
Death benefits shall be paid only on written application to the
Board.
(Source: P.A. 90-566, eff. 1-2-98; 91-357, eff. 7-29-99.)
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(40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
Sec. 17-124.
Death Benefits - Death on pension.
On written application to the Board, there shall be paid to the
estate of a deceased teacher-pensioner pension payments, accrued,
temporarily withheld or represented by checks uncashed at the date of
his death and the excess, if any, of an amount equal to his refundable
contributions for service or disability retirement pension over pension
to the date of death; provided, that if there be filed with the Board
prior to the death of the pensioner his written direction, signed and
acknowledged before an officer authorized to take acknowledgments, that
such payments be paid to designated beneficiaries, they shall be so paid
on written application therefor to the Board. If none of several
named
beneficiaries survives the pensioner and no directive was furnished by
the member to cover this contingency, the deceased beneficiary's share
shall be paid to the estate of the pensioner.
If a reversionary pension is payable upon death of a pensioner, the
determination and payment of any refund of contributions payable under
this Section shall be made upon death of the reversionary pensioner. At
such time a refund of contributions less (1) the amount contributed for
annual increases in pension and (2) total pension payments to the
teacher-pensioner and survivor shall be paid in the manner provided in
this Section to the designated beneficiaries, or estate of the deceased
survivor.
If a pension is payable to a surviving spouse and/or minor children
upon death of a pensioner, the determination of any refund of
contributions payable under this Section shall be made upon death of the
survivor and marriage or attainment of age 18 of minor children. At that
time a refund of contributions for retirement and survivors' and
children's pensions less total pension payments to teacher-pensioner,
survivor and minor children shall be paid in the manner provided in this
Section to the designated beneficiaries, or estate of the deceased
survivor.
If eligible beneficiaries for survivors' or children's benefits
existed at the time of a pensioner's retirement but not on the date of
his death thereafter, the excess of total contributions for retirement
and survivors' and children's pensions over pensions paid shall be
determined upon death of the pensioner and paid in the manner provided
in this Section to the designated beneficiaries, or estate of the
deceased teacher-pensioner.
Reversionary or survivor's pension payments accrued, temporarily
withheld, or represented by uncashed checks to the date of death shall
be paid to the reversionary pensioner's or survivor's designated
beneficiaries, or estate in the manner provided in this Section.
On death of a retired teacher whose death occurs on
or after the effective date of this amendatory Act of 1991, there shall
be payable a lump sum
death benefit equal to 6 times the teacher's salary rate for his last
month of service or $10,000, whichever is less, upon death during the
first year on pension minus 1/5 of the death benefit, as defined herein,
for each year or fraction thereof on pension after the first full year,
to a minimum of $5,000.
Notwithstanding Section 17-157, the changes made in this Section and
Section 17-123 by this amendatory Act of 1991 shall apply to teachers dying
on or after the effective date of this amendatory Act of 1991 without
regard to whether service terminated prior to that date.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
Sec. 17-125. Refund of contributions. Upon certification by the Employer of a member's resignation or termination prior to completion of the
minimum term of service required to establish eligibility for a pension
and on written application therefor, a teacher shall be paid a refund of
all the amounts the member has contributed to the Fund, less any former
refund
that has not been repaid.
Upon certification by the Employer of the member's resignation or termination
after completion of the minimum
term of service required to establish eligibility for a pension and on
written application therefor, a teacher shall be paid a refund of all
the amounts the member has contributed, less (1) any former refund that has not
been repaid, and (2) pension payments received, provided the member has executed
and delivered to the Board a written acknowledgment of forfeiture of all service credit and rights to pension payments. Thereupon, the member shall have no further interest in or claim against
the Fund.
A request for refund shall
be considered valid if the member's withdrawal from service occurred at least 2
months prior to the filing of such request.
Upon retirement of a teacher either on immediate or deferred pension,
if the teacher is not then married, or if the member's spouse or children do not
meet the qualifying conditions for a survivor's or children's pension,
the total amount contributed by the member or otherwise paid by deductions from
salary for survivor's pension, shall be refunded to the member, without
interest. No survivor's or children's pension rights shall be effective
thereafter in such a case.
During a teacher's term of service, no refund is payable except
contributions made in error.
(Source: P.A. 101-263, eff. 8-9-19.)
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(40 ILCS 5/17-126) (from Ch. 108 1/2, par. 17-126)
Sec. 17-126.
Repayment of refund.
If any person who has received a refund
is reemployed by an Employer and again becomes a contributor for a period of at
least 2
years, or has established credit of at least 2 years of service
subsequent to the date of such refund, in a retirement system which has
subscribed to the "Retirement Systems Reciprocal Act" and is a contributor
thereto, he may repay to the Fund the amount he received as a
refund,
together with interest thereon at 5% per annum compounded annually from
the time the refund
was paid to the date of repayment.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
Sec. 17-127. Financing; revenues for the Fund.
(a) The revenues for the Fund shall consist of: (1) amounts paid into
the Fund by contributors thereto and from employer contributions and State
appropriations in accordance with this Article; (2) amounts contributed to the
Fund by an Employer; (3) amounts contributed to the Fund pursuant to any law
now in force or hereafter to be enacted; (4) contributions from any other
source; and (5) the earnings on investments.
(b) The General Assembly finds that for many years the State has
contributed to the Fund an annual amount that is between 20% and 30% of the
amount of the annual State contribution to the Article 16 retirement system,
and the General Assembly declares that it is its goal and intention to continue
this level of contribution to the Fund in the future.
(c) Beginning in State fiscal year 1999, the State shall include in its annual
contribution to the Fund an additional amount equal to 0.544% of the Fund's
total teacher payroll; except that this additional contribution need not be
made in a fiscal year if the Board has certified in the previous fiscal year
that the Fund is at least 90% funded, based on actuarial determinations. These
additional State contributions are intended to offset a portion of the cost to
the Fund of the increases in retirement benefits resulting from this amendatory
Act of 1998.
(d) In addition to any other contribution required under this Article, including the contribution required under subsection (c), the State shall contribute to the Fund the following amounts: (1) For State fiscal year 2018, the State shall | ||
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(2) Beginning in State fiscal year 2019, the State | ||
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(e) The Board shall determine the amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the recommendations of the actuary. On or before November 1 of each year, beginning November 1, 2017, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the Fund for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1,
2018, the State Actuary shall issue a preliminary report
concerning the proposed certification and identifying, if
necessary, recommended changes in actuarial assumptions that
the Board must consider before finalizing its certification of
the required State contributions. (f) On or before January 15, 2018 and each January 15 thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The certification shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the Fund's projected employer
normal cost for that fiscal year. The Board's certification
must note any deviations from the State Actuary's recommended
changes, the reason or reasons for not following the State
Actuary's recommended changes, and the fiscal impact of not
following the State Actuary's recommended changes on the
required State contribution. For the purposes of this Article, including issuing vouchers, and for the purposes of subsection (h) of Section 1.1 of the State Pension Funds Continuing Appropriation Act, the State contribution specified for State fiscal year 2018 shall be deemed to have been certified, by operation of law and without official action by the Board or the State Actuary, in the amount provided in subsection (c) and subsection (d) of this Section. (g) For State fiscal year 2018, the State Board of Education shall submit vouchers, as directed by the Board, for payment of State contributions to the Fund for the required annual State contribution under subsection (d) of this Section. These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the amount appropriated to the State Board of Education from the Common School Fund in Section 5 of Article 97 of Public Act 100-21. If State appropriations for State fiscal year 2018 are less than the amount lawfully vouchered under this subsection, the difference shall be paid from the Common School Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (h) For State fiscal year 2018, the Board shall submit vouchers for the payment of State contributions to the Fund for the required annual State contribution under subsection (c) of this Section. Beginning in State fiscal year 2019, the Board shall submit vouchers for payment of State contributions to the Fund for the required annual State contribution under subsections (c) and (d) of this Section. These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the Fund for that fiscal year. If State appropriations to the Fund for the applicable fiscal year are less than the amount lawfully vouchered under this subsection, the difference shall be paid from the Common School Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (Source: P.A. 100-465, eff. 8-31-17.)
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(40 ILCS 5/17-127.1) (from Ch. 108 1/2, par. 17-127.1)
Sec. 17-127.1.
Special revenues.
Donations, gifts, and legacies received
by the fund shall be held and accounted
for as the Board so provides by appropriate
resolution. Nothing
in this Article shall be so construed as to prevent the
Board from directing such resources to be
used for memorial or other commemorative purposes
honoring the grantors, while alive or posthumously, of such special revenues.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-127.2)
Sec. 17-127.2.
Additional contributions by employer of teachers.
Beginning July 1, 1998, the employer of a teacher shall pay to the
Fund an employer contribution computed as follows:
(1) Beginning July 1, 1998 through June 30, 1999, the | ||
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(2) Beginning July 1, 1999 and thereafter, the | ||
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The employer may pay these employer contributions out of any source of funding
available for that purpose and shall forward the contributions to the Fund on
the schedule established for the payment of member contributions.
These employer contributions need not be made in a fiscal year if the Board
has certified in the previous fiscal year that the Fund is at least 90% funded,
based on actuarial determinations.
These employer contributions are intended to offset a portion of the cost to
the Fund of the increases in retirement benefits resulting from Public Act
90-582.
(Source: P.A. 90-582, eff. 5-27-98; 91-357, eff. 7-29-99.)
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(40 ILCS 5/17-128) (from Ch. 108 1/2, par. 17-128)
Sec. 17-128.
(Repealed).
(Source: Repealed by P.A. 89-15, eff. 5-30-95.)
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(40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129) Sec. 17-129. Employer contributions; deficiency in Fund. (a) If in any fiscal year of the Board of Education ending prior to 1997 the
total amounts paid to the Fund from the Board of Education (other than under
this subsection, and other than amounts used for making or "picking up"
contributions on behalf of teachers) and from the State do not equal the total
contributions made by or on behalf of the teachers for such year, or if the
total income of the Fund in any such fiscal year of the Board of Education from
all sources is less than the total such expenditures by the Fund for such year,
the Board of Education shall, in the next succeeding year, in addition to any
other payment to the Fund set apart and appropriate from moneys from its tax
levy for educational purposes, a sum sufficient to remove such deficiency or
deficiencies, and promptly pay such sum into the Fund in order to restore any
of the reserves of the Fund that may have been so temporarily applied. Any
amounts received by the Fund after December 4, 1997 from State appropriations, including under Section
17-127, shall be a credit against and shall fully satisfy any obligation that
may have arisen, or be claimed to have arisen, under this subsection (a) as a
result of any deficiency or deficiencies in the fiscal year of the Board of
Education ending in calendar year 1997. (b) (i) Notwithstanding any other provision of this Section, and notwithstanding any prior certification by the Board under subsection (c) for fiscal year 2011, the Board of Education's total required contribution to the Fund for fiscal year 2011 under this Section is $187,000,000. (ii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2012 under this Section is $192,000,000. (iii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2013 under this Section is $196,000,000. (iv) For fiscal years 2014 through 2059, the minimum contribution to the Fund to be made by the Board of Education in each fiscal year shall be an amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2059. In making these determinations, the required Board of Education contribution shall be calculated each year as a level percentage of the applicable employee payrolls over the years remaining to and including fiscal year 2059 and shall be determined under the projected unit credit actuarial cost method. (v) Beginning in fiscal year 2060, the minimum Board of Education contribution for each fiscal year shall be the amount needed to maintain the total assets of the Fund at 90% of the total actuarial liabilities of the Fund. (vi) Notwithstanding any other provision of this subsection (b), for any fiscal year, the contribution to the Fund from the Board of Education shall not be required to be in excess of the amount calculated as needed to maintain the assets (or cause the assets to be) at the 90% level by the end of the fiscal year. (vii) Any contribution by the State to or for the benefit of the Fund, including, without limitation, as referred to under Section 17-127, shall be a credit against any contribution required to be made by the Board of Education under this subsection (b). (c) The Board shall determine the amount of Board of Education
contributions required for each fiscal year on the basis of the actuarial
tables and other assumptions adopted by the Board and the recommendations of
the actuary, in order to meet the minimum contribution requirements of
subsections (a) and (b). Annually, on or before February 28, the Board shall
certify to the Board of Education the amount of the required Board of Education
contribution for the coming fiscal year. The certification shall include a
copy of the actuarial recommendations upon which it is based.(Source: P.A. 96-889, eff. 4-14-10.) |
(40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
Sec. 17-130. Participants' contributions by payroll deductions.
(a) There shall be deducted from the salary of each teacher 7.50% of his salary for service or disability retirement pension and
0.5% of salary for the annual increase in base pension.
In addition, there shall be deducted from the salary of each teacher
1% of his salary for survivors' and children's pensions.
(b) An Employer and any employer of eligible contributors as defined in
Section 17-106 is authorized to make the necessary deductions from the salaries
of its teachers. Such amounts shall be included as a part of the Fund. An
Employer and any employer of eligible contributors as defined in Section 17-106
shall formulate such rules and regulations as may be necessary to give effect
to the provisions of this Section.
(c) All persons employed as teachers shall, by such employment,
accept the provisions of this Article and of Sections 34-83.1 to 34-85,
inclusive, of the School Code
and thereupon become contributors to the Fund in accordance with the
terms thereof. The provisions of this Article and of those Sections
shall become a part of the contract of employment.
(d) A person who (i) was a member before July 1, 1998, (ii) retires with
more than 34 years of creditable service, and (iii) does not elect to qualify
for the augmented rate under Section 17-119.1 shall be entitled, at the time of
retirement, to receive a partial refund of contributions made under this
Section for service occurring after the later of June 30, 1998 or attainment of
34 years of creditable service, in an amount equal to 1.00% of the salary upon
which those contributions were based.
(Source: P.A. 102-894, eff. 5-20-22.)
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(40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
Sec. 17-130.1.
Employer contributions on behalf of employees.
An Employer
and the Board may make and may incur an obligation
to make contributions on behalf of its employees in an amount not to exceed
the employee contributions required by Section 17-130 for all compensation
earned after September 21, 1981. If the
Employer or the Board of Education determines not to make such
contributions or incur an
obligation to make such contributions, the amount that it could
have contributed on behalf of its employees shall continue to
be deducted from salary. If contributions are made by an Employer or the
Board
on behalf of its employees they shall be treated as employer contributions
in determining tax treatment under the United States Internal Revenue Code.
An Employer or the Board may make these
contributions on behalf
of its employees by a reduction in the cash salary of the employee or by
an offset against a future salary increase or by a combination of a reduction
in salary and offset against
a future salary increase. An Employer or the Board shall
pay these employee contributions
from the same source of funds which is used in paying salary to the employee,
or it may also or alternatively make such contributions from the proceeds
of the tax authorized by Section 34-60
of the School Code. Such employee contributions shall be treated for all purposes of this
Article 17 in the same manner and to
the same extent as employee contributions made by employees and deducted
from salary; provided, however, that contributions made by the Board of
Education on behalf of its employees which are to be paid from the proceeds
of the tax, as provided in Section
34-60
of the School Code, shall not be treated as teachers' pension
contributions for the purposes of Section 17-132 of the Illinois Pension
Code, and provided further, that contributions which are made by the Board
of Education on behalf of its employees shall not be treated as a pension
or retirement obligation of the Board of Education for purposes of Section
12 of "An Act in relation to State revenue sharing with local governmental
entities", approved July 31, 1969.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-130.2)
Sec. 17-130.2.
Pickup of optional contributions.
(a) For the purposes of this Section, "optional contributions" means
contributions that a member elects to make in order to qualify for the
augmented service retirement pension rate under Section 17-119.1.
(b) Subject to the requirements of federal law and the rules of the
Board, beginning July 1, 1998 a member who is employed on a full-time basis
may elect to have the Employer pick up optional contributions that the
member has elected to pay to the Fund, and the contributions so picked up
shall be treated as employer contributions for the purposes of determining
federal tax treatment. The election to have optional contributions picked
up is irrevocable. At the time of making the election, the member shall
execute a binding, irrevocable payroll deduction authorization. Upon receiving
notice of the election, the Employer shall pick up the contributions by a
reduction in the cash salary of the member and shall pay the contributions
from the same source of funds that is used to pay earnings to the member.
(c) Each Employer under this Fund shall take the steps necessary to
comply with the requirements of Section 414(h) of the Internal Revenue Code
of 1986, as amended, to permit the pickup of optional contributions on a
tax-deferred basis.
(Source: P.A. 90-582, eff. 5-27-98.)
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(40 ILCS 5/17-130.3)
Sec. 17-130.3. Election of medicare coverage. (a) The Fund shall conduct a divided medicare coverage referendum, open
to teachers continuously employed by the same employer since March 31, 1986.
The referendum shall be conducted in accordance with the applicable provisions
of federal law and Article 21 of this Code.
(b) As used in this Section and in compliance with federal law,
"referendum" means the process whereby teachers are granted the opportunity
to make an irrevocable individual election to participate in the medicare
program on a prospective basis.
(c) Employers shall pay the necessary employer contributions and make the
necessary deductions from salary for teachers who elect to participate in the
federal medicare program under this Section, as required by the System, Article
21 of this Code, and federal law.
(Source: P.A. 94-724, eff. 1-20-06.) |
(40 ILCS 5/17-131) (from Ch. 108 1/2, par. 17-131)
Sec. 17-131. Administration of payroll deductions. (a) An Employer or the Board shall make pension deductions in each pay period on the basis of the salary earned in that period, exclusive of salaries for overtime, extracurricular activities, or any employment on an optional basis, such as in summer school. (b) If a salary paid in a pay period includes adjustments on account of errors or omissions in prior pay periods, then salary amounts and related pension deductions shall be separately identified as to the adjusted pay period and deductions by the Employer or the Board shall be at rates in force during the applicable adjusted pay period. (c) If members earn salaries for the school year, as established by an Employer, or if they earn annual salaries over more than a 10-calendar month period, or if they earn annual salaries over more than 170 calendar days, the required contribution amount shall be deducted by the Employer in installments on the basis of salary earned in each pay period. The total amounts for each pay period shall be deducted whenever salary payments represent a partial or whole day's pay. (d) If an Employer or the Board pays a salary to a member for vacation periods, then the salary shall be considered part of the member's pensionable salary, shall be subject to the standard deductions for pension contributions, and shall be considered to represent pay for the number of whole days of vacation. (e) If deductions from salaries result in amounts of less than one cent, the fractional sums shall be increased to the next higher cent. Any excess of these fractional increases over the prescribed annual contributions shall be credited to the members' accounts. (f) In the event that, pursuant to Section 17-130.1, employee contributions are picked up or made by the Employer or the Board on behalf of its employees, then the amount of the employee contributions which are picked up or made in that manner shall not be deducted from the salaries of such employees.
(Source: P.A. 101-261, eff. 8-9-19; 102-210, eff. 1-1-22.)
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(40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132)
Sec. 17-132. Payments and certification of salary deductions. (a) An Employer shall cause the Fund to receive all members' payroll records and pension contributions within 30 calendar days after each predesignated payday. For purposes of this Section, the predesignated payday shall be determined in accordance with each Employer's payroll schedule for contributions to the Fund. (b) An Employer that fails to timely certify and submit payroll records to the Fund is subject to a statutory penalty in the amount of $100 per day for each day that a required certification and submission is late. Amounts not received by the 30th calendar day after the predesignated payday shall be deemed delinquent and subject to a penalty consisting of interest, which shall accrue on a monthly basis at the Fund's then effective actuarial rate of return, and liquidated damages in the amount of $100 per day, not to exceed 20% of the principal contributions due, which shall be mandatory except for good cause shown and in the discretion of the Board. An Employer in possession of member contributions deducted from payroll checks is holding Fund assets, and thus becomes a fiduciary over those assets. (c) The payroll records shall report (1) all pensionable salary earned in that pay period, exclusive of salaries for overtime, extracurricular activities, or any employment on an optional basis, such as in summer school; (2) adjustments to pensionable salary, exclusive of salaries for overtime, extracurricular activities, or any employment on an optional basis, such as in summer school, made in a pay period for any prior pay periods; (3) pension contributions attributable to pensionable salary earned in the reported pay period or the adjusted pay period as required by subsection (b) of Section 17-131; and (4) any salary paid by an Employer if that salary is compensation for validated service and is exclusive of salary for overtime, extracurricular activities, or any employment on an optional basis, such as in summer school. Payroll records required by item (4) of this paragraph shall identify the number of days of service rendered by the member and whether each day of service represents a partial or whole day of service. (d) The appropriate officers of the Employer shall certify and submit the payroll records no later than 30 calendar days after each predesignated payday. The certification shall constitute a confirmation of the accuracy of such deductions according to the provisions of this Article. Each Charter School and contract school shall designate an administrator as a "Pension Officer". The Pension Officer shall be responsible for certifying all payroll information, including contributions due and certified sick days payable pursuant to Section 17-134, and assuring resolution of reported payroll and contribution deficiencies. (e) The Board has the authority to conduct payroll audits of a charter school or contract school to determine the existence of any delinquencies in contributions to the Fund, and such charter school or contract school shall be required to provide such books and records and contribution information as the Board or its authorized representative may require. The Board is also authorized to collect delinquent contributions from charter schools and contract schools and develop procedures for the collection of such delinquencies. Collection procedures may include legal proceedings in the courts of the State of Illinois. Expenses, including reasonable attorneys' fees, incurred in the collection of delinquent contributions may be assessed by the Board against the charter school or contract school.
(f) The Fund shall provide a conditional grace period for contract schools that show evidence of timely and good faith efforts to submit payroll records and make pension contributions due between January 1, 2022 and April 1, 2022. If payroll records and pension contributions due during that time period are not submitted by April 1, 2022, the statutory penalties, liquidated damages, and interest shall be calculated from the original due date to the submission date of the pension contributions or payroll records, as applicable. Evidence of timely and good faith efforts shall include, but are not limited to, the following: (1) evidence of the contract school's continuing | ||
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(2) documented evidence submitted by the contract | ||
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(3) evidence in the possession of the Fund of the | ||
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(4) contact by the contract school with the Fund to | ||
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The Fund may adopt rules to implement the changes made by this amendatory Act of the 102nd General Assembly. (Source: P.A. 101-261, eff. 8-9-19; 102-636, eff. 8-27-21.)
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(40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
Sec. 17-133. Contributions for periods of outside and other service.
Regularly certified and appointed teachers who desire to have the following
described services credited for pension purposes shall submit to the Board
evidence thereof and pay into the Fund the amounts prescribed herein:
1. For teaching service by a certified teacher in the | ||
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2. For service as a playground instructor in public | ||
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3. For service prior to September 1, 1955, in the | ||
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4. For service after June 30, 1982 as a member of the | ||
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5. For service during the 1986-87 school year as a | ||
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6. For up to 2 years of service as a teacher or | ||
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For each year of service credit to be established | ||
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For service described in sub-paragraphs 1, 2 and 3 of this Section, interest
shall be charged beginning one year after the effective date of appointment or
reappointment.
Effective September 1, 1974, the interest rate to be charged by the
Fund on contributions provided in sub-paragraphs 1, 2, 3 and 4 shall
be 5% per annum compounded annually.
(Source: P.A. 102-822, eff. 5-13-22; 103-552, eff. 8-11-23.)
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(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 17-134. Contributions for leaves of absence; military service;
computing service. In computing service for pension purposes the following
periods of service shall stand in lieu of a like number of years of teaching
service upon payment therefor in the manner hereinafter provided: (a) time
spent on a leave of absence granted by the
employer;
(b) service with teacher or labor organizations based upon special
leaves of absence therefor granted by an Employer; (c) a maximum of 5 years
spent in the military service of the United States, of which up to 2 years
may have been served outside the pension period; (d) unused sick days at
termination of service to a maximum of 244 days; (e) time lost due
to layoff and curtailment of the school term from June 6 through June 21, 1976;
and (f) time spent after June 30, 1982 as a member of the Board of Education,
if required to resign from an administrative or teaching position in order to
qualify as a member of the Board of Education.
(1) For time spent on or after September 6, 1948 on | ||
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(2) For time spent on a leave of absence granted by | ||
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(3) For time spent prior to September 6, 1948, on | ||
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(4) For service with teacher or labor organizations | ||
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(5) For time spent in the military service, teachers | ||
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The changes to this Section made by Public Act 87-795 | ||
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The total credit for military service shall not | ||
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(6) For persons who first become teachers before the | ||
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(7) In all cases where time spent on leave is | ||
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(8) For time lost without pay due to layoff and | ||
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(9) For time spent after June 30, 1982, as a | ||
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Effective September 1, 1974, the interest charged for validation of
service described in paragraphs (2) through (5) of this Section shall be
compounded annually at a rate of 5% commencing one
year after the termination of the leave or return to service.
(Source: P.A. 97-651, eff. 1-5-12; 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 17-134. Contributions for leaves of absence; military service;
computing service. In computing service for pension purposes the following
periods of service shall stand in lieu of a like number of years of teaching
service upon payment therefor in the manner hereinafter provided: (a) time
spent on a leave of absence granted by the
employer;
(b) service with teacher or labor organizations based upon special
leaves of absence therefor granted by an Employer; (c) a maximum of 5 years
spent in the military service of the United States, of which up to 2 years
may have been served outside the pension period; (d) unused sick days at
termination of service to a maximum of 244 days; (e) time lost due
to layoff and curtailment of the school term from June 6 through June 21, 1976;
and (f) time spent after June 30, 1982 as a member of the Board of Education,
if required to resign from an administrative or teaching position in order to
qualify as a member of the Board of Education.
(1) For time spent on or after September 6, 1948 on | ||
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(2) For time spent on a leave of absence granted by | ||
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(3) For time spent prior to September 6, 1948, on | ||
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(4) For service with teacher or labor organizations | ||
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(5) For time spent in the military service, teachers | ||
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The changes to this Section made by Public Act 87-795 | ||
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The total credit for military service shall not | ||
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(6) A maximum of 244 unused sick days credited to his | ||
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(7) In all cases where time spent on leave is | ||
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(8) For time lost without pay due to layoff and | ||
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(9) For time spent after June 30, 1982, as a | ||
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Effective September 1, 1974, the interest charged for validation of
service described in paragraphs (2) through (5) of this Section shall be
compounded annually at a rate of 5% commencing one
year after the termination of the leave or return to service.
(Source: P.A. 97-651, eff. 1-5-12.)
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(40 ILCS 5/17-134.1)
Sec. 17-134.1.
Labor organization employees.
(a) A former teacher who is employed by a teacher or labor organization and
is not eligible to participate under subdivision (4) of Section 17-134 because
he or she is not on a special leave of absence may elect to participate in the
Fund for the duration of that employment by so notifying the Fund in writing.
Participation shall be subject to the same conditions
as are applicable to persons participating under that subdivision (4), and
service credit shall be contingent upon the required contributions being
received by the Fund.
(b) A person who participates in the Fund under subsection (a) may establish
service credit for periods of such employment that took place before beginning
participation under this Section by submitting a written application to the
Fund. Credit shall be granted upon payment to the Fund
of an amount to be determined by the Fund, equal to (i) the employee
contributions that would have been paid if the person had participated under
subdivision (4) of Section 17-134 during the period for which service credit is
to be established, based on the actual salary received, plus (ii) the
employer's normal cost associated with that service credit, plus (iii) interest
on items (i) and (ii) at the rate of 6% per year, compounded annually, from the
date of the service established to the date of payment. Service credit under
this subsection shall not be granted until the required contribution has been
paid in full; the contribution may be paid at any time before retirement.
(c) A person who participates in the Fund under subsection (a) may
reestablish any service credits previously forfeited by acceptance of a refund
by paying to the Fund the amount of the refund plus interest thereon at the
rate of 5% per annum, compounded annually, from the date of the refund to the
date of payment.
(d) Rollover contributions from other retirement plans qualified under the
Internal Revenue Code of 1986 may be used to make the payments required under
subsections (b) and (c).
(e) No service credit may be established under this Section for any period
of employment for which the person receives service credit under any other
provision of this Code.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/17-134.2) Sec. 17-134.2. Employee of a contract school. Any educational staff of a contract school operating pursuant to an agreement with the Board of Education who is employed in a position requiring certification or licensure under the School Code on or after the effective date of this amendatory Act of the 102nd General Assembly (excluding all managerial, supervisory, and confidential employees) shall participate as a member beginning on January 1, 2022, unless the person began employment with the contract school before the effective date of this amendatory Act of the 102nd General Assembly. Any educational staff employed in a contract school operating pursuant to an agreement with the Board of Education who began employment in a position requiring certification or licensure under the School Code before the effective date of this amendatory Act of the 102nd General Assembly (excluding all managerial, supervisory, and confidential employees) may irrevocably elect, in a manner prescribed by the Board, to participate as a member for service accrued after January 1, 2022 with the contract school, another contract school, a charter school, or the Board of Education. In no event shall a person accrue service for employment with a contract school that occurred before January 1, 2022.
(Source: P.A. 102-636, eff. 8-27-21.) |
(40 ILCS 5/17-135) (from Ch. 108 1/2, par. 17-135)
Sec. 17-135.
Contributions for other service credits.
On payment at the
rates prescribed herein on the date of appointment
or employment as teachers, or as such rates are adjusted by the Board of
Education, but not less than $450 per year of service, members shall be
entitled to have credited for pension purposes service as: (a) a civil
service librarian in the public schools of the city, or in such city;
(b) a playground or recreational instructor for such city or the Park
District in such city; (c) a school clerk, employed by the Board of
Education; and (d) a lunchroom manager for the Board of Education.
Interest on such payments shall be charged commencing one year after the
date of such appointment or employment.
Effective September 1, 1974, the interest rate to be charged by the Fund
shall be 5% per annum compounded annually.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-136) (from Ch. 108 1/2, par. 17-136)
Sec. 17-136.
Computation of aggregate contributions by
teachers. The
aggregate sum required to be contributed by any person otherwise
entitled to a pension under this Article shall be computed as follows:
1. For service as a teacher after July 6, 1931, by computing the
total of the required deductions at the rates in force
when the service
was rendered and required contributions for optionally creditable
service at rates prescribed in this Article.
2. For service as a teacher after September 1, 1963, by computing
the total of the required deductions at the rates
in force when salary
was paid and required contributions for optionally creditable service at
rates prescribed in this Article.
Effective September 1, 1974, any deficiencies resulting under the
provisions of this section shall accrue at an interest rate of 5% per
annum compounded annually until paid.
(Source: P.A. 81-1536.)
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(40 ILCS 5/17-137) (from Ch. 108 1/2, par. 17-137)
Sec. 17-137. Board created. There shall be elected a Board of Trustees,
herein also referred to as the "Board", to administer and
control the Fund
created by this Article. The Board shall consist of 12
members, 2 of whom shall be members of the Board of Education, 6
of whom shall be contributors who are not administrators, one of whom shall be a
contributor who is an administrator, and 3 of whom shall be pensioners,
all to be chosen as provided in this Article.
(Source: P.A. 98-449, eff. 8-16-13.)
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(40 ILCS 5/17-138) (from Ch. 108 1/2, par. 17-138)
Sec. 17-138. Board membership. At the first meeting of the Board of
Education in November of each year, the Board of Education
shall appoint one of its members to serve, while a member of the Board of
Education, on the Board of Trustees for a term of 2 years.
During the first week of November or as soon as possible thereafter, but not later than the third week of November, there
shall be elected 2 members of the Board from the teachers other
than administrators, who shall hold office for terms of 3 years, provided the trustee retains his or her
status as a teacher other than an administrator, and other
members to fill any unexpired terms. The
election shall be by secret ballot conducted in person or by secure electronic ballot, and shall be held in such manner as the
Board by bylaws or rules shall provide. Only teachers who are
not administrators shall be eligible to vote in the election.
During the first week of November of 1995 and every third year thereafter,
one contributor who is an administrator shall be elected a member of the Board. Beginning in November of 2022, the election under this paragraph shall take place during the first week of November or as soon as possible thereafter, but not later than the third week of November. This trustee shall hold office for a term of 3 years, provided the trustee retains
his or her status as an administrator. The election shall be by mail ballot or by secure electronic ballot, and
only contributors who are administrators shall be eligible to vote. The election
shall be held in the manner provided by the Board by rule or
bylaw.
During the first week of November or as soon as possible thereafter, but not later than the third week of November, of each odd-numbered year there shall
be elected 3 members of the Board from the pensioners,
who shall hold office for a term of 2 years while retaining their status
as pensioners. The election shall be by mail ballot or secure electronic ballot to all service and
disability pensioners, and shall be held in such manner as the Board by bylaws or rules shall provide.
All trustees, while members of the Board of Education or while administrators, teachers other than administrators, or pensioners, as the
case may be, shall hold their offices
until their successors shall have been appointed or elected and qualified by
subscribing to the constitutional oath of office at the immediately succeeding
regular meeting of the Board.
(Source: P.A. 102-872, eff. 5-13-22.)
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(40 ILCS 5/17-139) (from Ch. 108 1/2, par. 17-139)
Sec. 17-139. Board elections and vacancies.
(1) Contributors other than administrators election. Every
member who is not an administrator may vote at the election for as many persons
as there are trustees to be elected by the contributors who are not administrators, provided that the contributor obtained that voter eligibility status on or before October 1 of the election year. The name of a candidate shall not be placed on
the ballot unless he or she has been assigned on a regular certificate for
at least 10 years in the Chicago public schools or charter schools and
nominated by a petition signed by not less than 200 contributors who are not
administrators.
Petitions shall be filed with the recording secretary of the Fund on or after September
15 of each year and not later than October 1st of that year. No more than one
candidate may be nominated by any one petition. If the nominations do not
exceed the number of candidates to be elected, the canvassing board shall
declare the nominated candidates elected. Otherwise, candidates receiving the
highest number of votes cast for their respective terms shall be declared
elected. The location and number of polling places shall be designated by the
Board.
Elections to fill vacancies on the Board
shall be held at the next annual election.
(2) Pensioners election. The name of a candidate
shall not be placed on the ballot unless he or she has been nominated by a
petition signed by not less than 100 pensioners of the Fund.
Petitions shall
be filed with the recording secretary of the Fund on or before
October 1 of the
odd-numbered year. If the nominations do not exceed 3, the mailing
of ballots
shall be eliminated and the nominated candidates shall be declared elected.
Otherwise, the 3 candidates receiving the highest number of votes
cast shall be
declared elected.
(3) Administrators election. The name of a candidate shall not be placed on
the ballot unless he or she has been nominated by a petition signed by at least
25 contributors who are administrators. Petitions shall be filed with the
recording secretary of the Fund on or before October 1 of the election year. Every
member who is an administrator may vote at the election for one candidate
who is a contributor who is an administrator, provided that the member obtained such voter eligibility status on or before October 1 of the election year.
If only one eligible candidate is nominated, the election shall not be held and
the nominated candidate shall be declared elected. Otherwise, the candidate
receiving the highest number of votes cast shall be declared elected.
(4) Vacancies. The Board may fill vacancies occurring in
the membership of the Board elected by the administrators, teachers other
than administrators, or pensioners at any regular meeting of the Board. The
Board of Education may fill vacancies occurring in the membership of the Board appointed by the Board of Education at any regular meeting of
the
Board of Education.
(Source: P.A. 98-449, eff. 8-16-13.)
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(40 ILCS 5/17-140) (from Ch. 108 1/2, par. 17-140)
Sec. 17-140. Board officers. The president, recording secretary and other officers of the Board shall
be elected by and from the members of the Board at the first meeting of the
Board after the election of trustees.
In case any officer whose signature appears upon any check or draft,
issued pursuant to this Article, ceases to
hold office, the signature
nevertheless shall be valid and sufficient for all purposes.
(Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/17-141) (from Ch. 108 1/2, par. 17-141)
Sec. 17-141.
Board's powers and duties.
The Board shall have the powers and duties stated in Sections 17-142 to
17-146, inclusive, in addition to the other powers and duties provided in
this Article.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-142) (from Ch. 108 1/2, par. 17-142)
Sec. 17-142.
To make payments.
To make payments from the Fund of pensions and other benefits
provided in this Article.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)
Sec. 17-142.1. To defray health insurance costs. To provide for the
partial reimbursement of health insurance costs.
(1) On the first day of September of each year, beginning in 1988,
the Board may, by separate warrant, pay to each recipient of a service
retirement, disability retirement or survivor's pension an amount to be
determined by the Board, which shall represent partial reimbursement for
the cost of the recipient's health insurance coverage.
(2) In lieu of the annual payment authorized in subdivision (1), for
pensioners enrolled in the Fund's regular health care deduction plans, the
Fund may pay the health insurance premium reimbursement on a monthly rather
than annual basis, at the percentage rate established from time to time by
the Board. If the Board so directs, these monthly payments may be made in
the form of a direct payment of premium and a reduction in the amount
deducted from the annuity, rather than in the form of reimbursement by
separate warrant.
(3) Total payments under this Section in any year may not exceed
$65,000,000 plus any amount that was authorized to be paid
under this Section in the preceding year but was not actually paid by the
Board, including any interest earned thereon.
(4) The total amount of payments under this Section in any year may not exceed 75% of the total cost of health insurance coverage in that year for all the recipients who receive payments authorized by this Section in that year.
(Source: P.A. 93-677, eff. 6-28-04.)
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(40 ILCS 5/17-143) (from Ch. 108 1/2, par. 17-143)
Sec. 17-143.
To employ assistance.
To employ such assistance and service as may be necessary for the proper
administration of this Article and carrying into effect the by-laws and
rules adopted by it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-143.1) (from Ch. 108 1/2, par. 17-143.1)
Sec. 17-143.1.
Office.
To rent, lease, or acquire office space as may
be necessary for the proper administration of the Fund.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-143.5) Sec. 17-143.5. Testimony and the production of records. The Board shall have the power to issue subpoenas to compel the attendance of witnesses and the production of documents and records in conjunction with the determination of employer payments required under subsection (c) of Section 17-116, a disability claim, an administrative review proceeding, an attempt to obtain information to assist in the collection of sums due to the Fund, or a felony forfeiture investigation. The fees of witnesses for attendance and travel shall be the same as the fees of witnesses before the circuit courts of this State and shall be paid by the party seeking the subpoena. The Board may apply to any circuit court in the State for an order requiring compliance with a subpoena issued under this Section. Subpoenas issued under this Section shall be subject to applicable provisions of the Code of Civil Procedure.
(Source: P.A. 99-786, eff. 8-12-16.) |
(40 ILCS 5/17-144) (from Ch. 108 1/2, par. 17-144)
Sec. 17-144.
To fill vacancies.
To fill any vacancies occurring in the Board of members
elected from the teachers or pensioners, until the next annual election, when
the
vacancies shall be filled as provided by this Article.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-145) (from Ch. 108 1/2, par. 17-145)
Sec. 17-145.
To adopt rules.
To adopt such by-laws and rules for the administration of the Fund as it
deems advisable.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146)
Sec. 17-146.
To make investments.
To invest the moneys of the Fund,
subject to the requirements and restrictions set forth in this Article and
in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act.
Those requirements shall be applicable only at the time of investment and
shall not require the liquidation of any investment at any time.
The Board shall have the authority to enter into any agreements
and to
execute any documents that it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate
ownership by the Fund. The Board may direct the
registration of
securities or the holding of interests in real property in the name of the
Fund or in the name of a nominee created for the express purpose
of
registering securities or holding interests in real property by a
national or state bank or trust company authorized to conduct a trust
business in the State of Illinois. The Board may hold title to
interests
in real property in the name of the fund or in the name of a title
holding corporation created for the express purpose of holding title to
interests in real property.
Investments shall be carried at cost or at a value determined
in accordance with generally accepted accounting principles and accounting
procedures approved by the Board.
The value of investments held by the Fund in one or more
commingled
investment accounts shall be determined in accordance with generally accepted
accounting principles.
The Board may
not transfer its investment authority, nor transfer the assets of the Fund
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the Board resolution authorizing such transfer
is submitted
for approval to the contributors and pensioners of the Fund at
elections
held not less than 30 days after the adoption of such resolution by the
Board, and such resolution is approved by a majority of the votes
cast on
the question in both the contributors election and the pensioners election.
The election procedures and qualifications governing the election of
trustees shall govern the submission of resolutions for approval under this
paragraph, insofar as they may be made applicable.
(Source: P.A. 89-636, eff. 8-9-96; 90-19, eff. 6-20-97; 90-32, eff.
6-27-97.)
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(40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1)
Sec. 17-146.1.
Participation in commingled investment funds; transfer of
investment functions and securities.
(a) The Board may invest in any commingled
investment fund or
funds established and maintained by the Illinois State Board of Investment
under the provisions of Article 22A of this Code. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The Board may, by resolution duly adopted by a
majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the Fund of every kind and character. Upon completion
of such transfer, the authority of the Board to make
investments
shall terminate. Thereafter, all investments of the reserves of the Fund
shall be made by the Illinois State Board of Investment in accordance with
the provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the retirement Board.
(Source: P.A. 90-19, eff. 6-20-97; 90-32, eff. 6-27-97; 90-566, eff.
1-2-98.)
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(40 ILCS 5/17-146.2) (from Ch. 108 1/2, par. 17-146.2)
Sec. 17-146.2.
To lend securities.
The Board may
lend
securities owned by the Fund to a borrower upon such written terms and
conditions as may be mutually agreed. The agreement shall provide that
during the period of the loan the Fund (or the custodian of the Fund, or
agent thereof, as applicable) shall retain the right to receive or collect
from the borrower all dividends, interest and distributions to
which the Fund would have otherwise been entitled. The borrower shall
deposit with the Fund collateral for the loan equal to the market value of
the securities at the time the loan is made, and shall increase the amount
of collateral if the Board requests an additional amount because of
subsequent increased market value of the securities. The Board may accept
from the borrower cash collateral or collateral consisting of assets
described in Section 1-113 of this Act. To the extent that the Fund
participates in a securities lending program established and maintained by
(1) a national or State bank which is authorized to do business in the
State of Illinois, or (2) an investment manager, the Board may accept
collateral consisting of an undivided interest in a pool of commingled
collateral that has been established by the bank or investment
manager for the purpose of pooling collateral
received for the loans of securities owned by substantially all of
the participants in such bank's or investment manager's securities lending
program. Nothing in Sections 1-109, 1-110 or 1-113 of this Act shall be
construed to prohibit the Fund's lending of securities in accordance with this
Section.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-147) (from Ch. 108 1/2, par. 17-147)
Sec. 17-147. Custody of Fund; bonds; legal proceedings. The
city treasurer, ex officio, shall be the custodian of the Fund,
and shall secure and safely keep it, subject to the control and
direction of the Board. The city treasurer shall keep the books and accounts
concerning
the Fund in the manner prescribed by the Board. The
books and accounts
shall always be subject to the inspection of the Board or any
member
thereof. The city treasurer shall be liable on the city treasurer's official bond for the
proper performance of duties and the conservation of the Fund.
Payments from the Fund shall be made upon checks or through direct deposit transmittals authorized by the executive director or
by such person as the Board may designate from time to time
by appropriate resolution.
Neither the treasurer nor any other officer having the custody of the
Fund is entitled to retain any interest accruing thereon, but such
interest shall accrue and inure to the benefit of such Fund,
become a
part thereof, subject to the purposes of this Article.
Any legal proceedings necessary for the enforcement of the provisions
of this Article shall be brought by and in the name of the Board of the Fund.
(Source: P.A. 102-210, eff. 1-1-22.)
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(40 ILCS 5/17-148) (from Ch. 108 1/2, par. 17-148)
Sec. 17-148.
Method of paying pensions.
Annual pensions and automatic annual increases shall be paid in 12
monthly installments and shall be so adjusted that all monthly payments are
the same. This shall apply also to automatic increases accrued from the
anniversary of the pension or the 61st birthdate, whichever is later, to
the following January. In computing the first pension payment for a
fractional part of a month, 30 days shall constitute one month. Beginning
January 1, 1970, the pension payment shall begin on the first day of the
month, with the issuance of the last check on the first day of the month in
which death occurs. If a pensioner is reinstated as a contributor, no
pension shall be paid for the month in which re-employment occurs.
The pensioner shall reimburse the Fund for any pension payments received
to which he is not legally entitled, plus 5% interest compounded annually
beginning one year after the Fund's notification of the indebtedness.
(Source: P.A. 84-1028.)
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(40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149) Sec. 17-149. Cancellation of pensions. (a) If any person receiving a disability retirement pension from the Fund is re-employed as a teacher by an Employer, the pension shall be cancelled on the date the re-employment begins, or on the first day of a payroll period for which service credit was validated, whichever is earlier. (b) If any person receiving a service retirement pension from the Fund is re-employed as a teacher on a permanent or annual basis by an Employer, the pension shall be cancelled on the date the re-employment begins, or on the first day of a payroll period for which service credit was validated, whichever is earlier. However, subject to the limitations and requirements of subsection (c-5), (c-6), (c-7), or (c-10), the pension shall not be cancelled in the case of a service retirement pensioner who is re-employed on a temporary and non-annual basis or on an hourly basis. (c) If the date of re-employment on a permanent or annual basis occurs within 5 school months after the date of previous retirement, exclusive of any vacation period, the member shall be deemed to have been out of service only temporarily and not permanently retired. Such person shall be entitled to pension payments for the time he could have been employed as a teacher and received salary, but shall not be entitled to pension for or during the summer vacation prior to his return to service. When the member again retires on pension, the time of service and the money contributed by him during re-employment shall be added to the time and money previously credited. Such person must acquire 3 consecutive years of additional contributing service before he may retire again on a pension at a rate and under conditions other than those in force or attained at the time of his previous retirement. (c-5) For school years beginning on or after July 1, 2019 and before July 1, 2022, the service retirement pension shall not be cancelled in the case of a service retirement pensioner who is re-employed as a teacher on a temporary and non-annual basis or on an hourly basis, so long as the person (1) does not work as a teacher for compensation on more than 120 days in a school year or (2) does not accept gross compensation for the re-employment in a school year in excess of (i) $30,000 or (ii) in the case of a person who retires with at least 5 years of service as a principal, an amount that is equal to the daily rate normally paid to retired principals multiplied by 100. These limitations apply only to school years that begin on or after July 1, 2019 and before July 1, 2022. Such re-employment does not require contributions, result in service credit, or constitute active membership in the Fund. The service retirement pension shall not be cancelled in the case of a service retirement pensioner who is re-employed as a teacher on a temporary and non-annual basis or on an hourly basis, so long as the person (1) does not work as a teacher for compensation on more than 100 days in a school year or (2) does not accept gross compensation for the re-employment in a school year in excess of (i) $30,000 or (ii) in the case of a person who retires with at least 5 years of service as a principal, an amount that is equal to the daily rate normally paid to retired principals multiplied by 100. These limitations apply only to school years that begin on or after August 8, 2012 (the effective date of Public Act 97-912) and before July 1, 2019. Such re-employment does not require contributions, result in service credit, or constitute active membership in the Fund. Notwithstanding the 120-day limit set forth in item (1) of this subsection (c-5), the service retirement pension shall not be cancelled in the case of a service retirement pensioner who teaches only driver education courses after regular school hours and does not teach any other subject area, so long as the person does not work as a teacher for compensation for more than 900 hours in a school year. The $30,000 limit set forth in subitem (i) of item (2) of this subsection (c-5) shall apply to a service retirement pensioner who teaches only driver education courses after regular school hours and does not teach any other subject area. To be eligible for such re-employment without cancellation of pension, the pensioner must notify the Fund and the Board of Education of his or her intention to accept re-employment under this subsection (c-5) before beginning that re-employment (or if the re-employment began before August 8, 2012 (the effective date of Public Act 97-912), then within 30 days after that effective date). An Employer must certify to the Fund the temporary and non-annual or hourly status and the compensation of each pensioner re-employed under this subsection at least quarterly, and when the pensioner is approaching the earnings limitation under this subsection. If the pensioner works more than 100 days or accepts excess gross compensation for such re-employment in any school year that begins on or after August 8, 2012 (the effective date of Public Act 97-912), the service retirement pension shall thereupon be cancelled. If the pensioner who only teaches drivers education courses after regular school hours works more than 900 hours or accepts excess gross compensation for such re-employment in any school year that begins on or after August 12, 2016 (the effective date of Public Act 99-786), the service retirement pension shall thereupon be cancelled. If the pensioner works more than 120 days or accepts excess gross compensation for such re-employment in any school year that begins on or after July 1, 2019, the service retirement pension shall thereupon be cancelled. The Board of the Fund shall adopt rules for the implementation and administration of this subsection. (c-6) For school years beginning on or after July 1, 2022 and before July 1, 2027, the service retirement pension shall not be cancelled in the case of a service retirement pensioner who is re-employed as a teacher or an administrator on a temporary and non-annual basis or on an hourly basis, so long as the person does not work as a teacher or an administrator for compensation on more than 140 days in a school year. Such re-employment does not require contributions, result in service credit, or constitute active membership in the Fund. (c-7) For school years beginning on or after July 1, 2027, the service retirement pension shall not be cancelled in the case of a service retirement pensioner who is re-employed as a teacher or an administrator on a temporary and non-annual basis or on an hourly basis, so long as the person does not work as a teacher or an administrator for compensation on more than 120 days in a school year. Such re-employment does not require contributions, result in service credit, or constitute active membership in the Fund. (c-10) Until June 30, 2027, the service retirement pension of a service retirement pensioner shall not be cancelled if the service retirement pensioner is employed in a subject shortage area and the Employer that is employing the service retirement pensioner meets the following requirements: (1) If the Employer has honorably dismissed, within | ||
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(2) For a period of at least 90 days during the 6 | ||
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An Employer of a teacher who is unable to continue employment with the Employer because of documented illness, injury, or disability that occurred after being hired by the Employer under this subsection is exempt from the provisions of paragraph (2) for 90 school days. However, the Employer must on an ongoing basis comply with items (i), (ii), and (iii) of paragraph (2). The Employer must submit documentation of its compliance with this subsection to the regional superintendent. Upon receiving satisfactory documentation from the Employer, the regional superintendent shall certify the Employer's compliance with this subsection to the Fund. (d) Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section made by Public Act 90-32 apply without regard to whether termination of service occurred before the effective date of that Act and apply retroactively to August 23, 1989. Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section and Section 17-106 made by Public Act 92-599 apply without regard to whether termination of service occurred before June 28, 2002 (the effective date of Public Act 92-599). Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section made by Public Act 97-912 apply without regard to whether termination of service occurred before August 8, 2012 (the effective date of Public Act 97-912). (Source: P.A. 102-1013, eff. 5-27-22; 102-1090, eff. 6-10-22; 103-154, eff. 6-30-23; 103-588, eff. 6-5-24.) |
(40 ILCS 5/17-149.1) (from Ch. 108 1/2, par. 17-149.1)
Sec. 17-149.1. Felony conviction. None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his or her service as a teacher.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the teacher from whom the benefit results. This Section shall not operate to impair any contract or vested right
acquired prior to January 1, 1988, nor to preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All teachers entering service after January 1, 1988 shall be
deemed to have consented to the provisions of this Section as a condition
of membership, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
Sec. 17-150.
Suspension of pensions.
Until July 1, 2000, pension
payments, exclusive of those made to the survivors of persons who were
contributors, shall be suspended while the recipient is employed in a teaching
capacity, outside the City in which the Fund exists, by any public school or
charter school in this State, unless the recipient is so employed temporarily
as a substitute teacher for 100 days or less in a school year or on an hourly
basis with earnings not in excess of the sum payable for 100 days' substitute
service.
Beginning July 1, 2000, pension payments shall no longer be suspended while
the recipient is employed in a teaching capacity, outside the City in which the
Fund exists, by any public school or charter school in this State, and any
pension that is in a state of suspension under this Section on July 1, 2000
shall be reinstated on that date. Notwithstanding Section 17-157, the change
to this Section made by this amendatory Act of the 91st General Assembly
applies without regard to whether or not the pensioner was in service on or
after the effective date of this amendatory Act.
(Source: P.A. 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/17-151) (from Ch. 108 1/2, par. 17-151)
Sec. 17-151.
Annuities, etc.
- Exempt.
All pensions, annuities, refunds, or death benefits granted under the
provisions of this Article are exempt from State and municipal taxes and
are exempt from attachment or garnishment process. They shall not be seized
or levied upon by virtue of any judgment or any process or proceedings
issued out of or by any court for the payment or satisfaction in whole or
in part of any debt, claim, damage, demand or judgment.
No pensioner has the right to transfer or assign his pension or any part
thereof by way of mortgage or otherwise except for the purpose (1) of
establishing and maintaining membership in nonprofit group health or
hospital plans approved by the Board and (2) of establishing a
living
trust, the trustee of which is authorized to engage in the trust business,
provided all pension payments so assigned are required to be paid monthly
to the trustor or, in the event of his incapacity, expended for his
benefit. The Board is hereby authorized to administer all the
details
involved in establishing and maintaining membership in such health or
hospital plans for the benefit of the annuitants, but it shall not be
obligated to do so or to continue doing so, if in its judgment such
continuance is not desirable.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-151.1) Sec. 17-151.1. Recovery of amount paid in error. (a) The Board may retain out of any annuity or benefit payable to any person any amount that the Board determines is owing to the Fund because (i) required employee contributions were not made in whole or in part, (ii) employee or member obligations to return refunds were not met, or (iii) money was paid to any employee, member, or annuitant through misrepresentation, fraud, or error. If the Fund mistakenly sets any benefit at an incorrect amount, the Fund shall recalculate the benefit as soon as may be practicable after the mistake is discovered. The Fund shall provide the recipient, or the survivor or beneficiary of the recipient, as the case may be, with at least 60 days' notice of the corrected amount. If the benefit was mistakenly set too low, the Fund shall make a lump sum payment to the recipient, or the survivor or beneficiary of the recipient, as the case may be, of an amount equal to the difference between the benefits that should have been paid and those actually paid, plus interest at the rate of 3% from the date the unpaid amounts accrued to the date of payment. If the benefit was mistakenly set too high, the Fund may recover the amount overpaid from the recipient, or the survivor or beneficiary of the recipient, as the case may be, plus interest at 3% from the date of overpayment to the date of recovery. The recipient, or the survivor or beneficiary of the recipient, as the case may be, may elect to repay the sum owed either directly by a lump sum payment, in agreed-upon monthly payments over a period not to exceed 5 years, or through an actuarial equivalent reduction of the corrected benefit. However, if (1) the amount of the benefit was mistakenly set too high, (2) the error was undiscovered for 3 years or longer from the date of the first mistaken benefit payment, and (3) the error was not the result of incorrect information supplied by the affected member, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit shall not be required to repay to the Fund the excess amounts received in error. (b) The Board and the Fund shall be held free from any liability for any money retained or paid in accordance with this Section, and the employee, member, or pensioner shall be assumed to have assented and agreed to the disposition of money due. (c) The changes made by this amendatory Act of the 94th General Assembly are not limited to persons in service on or after the effective date of this amendatory Act.
(Source: P.A. 102-210, eff. 1-1-22.) |
(40 ILCS 5/17-152) (from Ch. 108 1/2, par. 17-152)
Sec. 17-152.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted and hereafter amended, is hereby adopted and made a part of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-153) (from Ch. 108 1/2, par. 17-153)
Sec. 17-153.
Accounting - Audits.
The assets of the Fund shall
be held
for the express purposes set forth in the provisions of this Article subject
to the conditions prescribed herein. An adequate system of accounts and
records shall be established and maintained that will give effect to the
requirements hereof. All assets of the Fund shall be credited to
designated
reserve accounts according to the purposes for which they are held.
Appropriate reserves shall be maintained representing member
contributions and other revenues accruing from taxes, state
appropriations and miscellaneous sources.
At the end of each fiscal year the Board shall have
the
accounts and records of the Fund audited by certified public
accountants
selected by the Board. Within 2 weeks after receiving the audit
report,
the Board shall file a copy of the audit report with the State
Superintendent
of Education and the Auditor General.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-154) (from Ch. 108 1/2, par. 17-154)
Sec. 17-154. Retired teachers supplementary payments. All persons who were
on June 30, 1975, entitled to a service retirement
pension or disability retirement pension, under this Fund or any
fund of
which this Fund is a continuation, and who meet the conditions
prescribed
hereinafter, shall receive supplementary payments as follows:
(1) In the case of any such retired person, who attained or shall attain
after June 30, 1975, the age of 60 years, who was in receipt of a service
retirement pension, the payment pursuant to this section shall be an amount
equal to the difference between (a) his annual service retirement pension
from the Fund plus any annual payment received under the
provisions of
Section 34-87 (now repealed) of "The School Code", approved March 18, 1961, as amended,
if the total of such amounts is less than $4500 per year, and (b) an amount
equal to $100 for each year of validated teaching service forming the basis
of the service retirement pension up to a maximum of 45 years of such
service;
(2) In the case of any such retired person, who was in receipt on June
30, 1975, of a disability retirement pension, the payment shall be equal
to the difference between (a) his total annual disability retirement pension
and (b) an amount equal to $100 for each year of validated teaching service
forming the basis of the disability retirement pension.
(Source: P.A. 94-1105, eff. 6-1-07.)
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(40 ILCS 5/17-155) (from Ch. 108 1/2, par. 17-155)
Sec. 17-155.
Retired teachers' contributions for supplementary payments.
Supplementary payment to retired teachers under Section 17-154 shall
not accrue until such retired person has paid a total additional
contribution of $5 per year for each year of validated teaching service,
plus interest at 5% per annum from October
1, 1975. If retirement pension was not computed according to average salary
as defined in Section 17-116, 1% of the monthly base pension multiplied
by each complete year of service forming the basis of his service retirement
pension shall constitute the total additional contribution.
The supplementary
payment (1) shall be prorated on a monthly basis as a one-twelfth addition
to monthly payments due on the service retirement and disability retirement
pensions, (2) shall begin on the date on which the payment of such
allowance is next due after such contribution and interest thereon have
been paid, and (3) shall continue to be paid only to the extent that funds
are available in the Retired Teachers Supplementary Payment Fund
established hereunder for this purpose; provided that in no case shall the
present or future service retirement pension or disability retirement
pension of any person be reduced hereby. No part of any such supplementary
payment shall be an obligation of the fund otherwise established under this
Article.
(Source: P.A. 79-206.)
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(40 ILCS 5/17-156) (from Ch. 108 1/2, par. 17-156)
Sec. 17-156.
Retired Teachers Supplementary Payment Fund.)
A fund to be known as the Retired Teachers Supplementary Payment Fund
shall be established for the purpose of making the supplementary payments
for service and disability retirement under Section 17-154.
1. This fund shall be credited with:
(a) the contributions made by retired persons to | ||
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(b) amounts appropriated by the State of Illinois for | ||
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(c) any interest accruing to this fund.
2. This fund shall be charged with all supplementary payments as they
are made.
3. All supplementary payments shall be paid in the order that the
payments become due and payable from the Retired Teachers Supplementary
Payment Fund. In the event that the moneys in the fund are insufficient to
make full supplementary payments to all persons entitled thereto, a
proportionate amount, determined by the ratio of the moneys available in
the fund to the total supplementary payments then due, shall be payable.
Thereafter supplementary payments shall cease and shall not be resumed
until further funds are made available for this purpose through
appropriation by the State of Illinois. After all supplementary payments to
all persons entitled thereto have been completed, any remaining moneys in
this fund shall be transferred to the Public School Teachers' Pension and
Retirement Fund established by this Article; provided that, notwithstanding
any provision of law to the contrary, in the event such a transfer shall
have been made in prior biennia, and there is insufficient moneys available
in the supplementary payment fund to make full statutory payments to
persons entitled thereto in the current biennium, the Public School
Teachers' Pension and Retirement Fund established by this Article may
transfer back to the supplemental payment fund moneys in an amount not
exceeding the amount so transferred to it at the close of prior biennia.
4. Supplementary payments shall be suspended while the recipient is
employed by the City in which the fund exists, by any other municipal
corporation coterminous with the City or by any public school or charter
school in this
State, unless the recipient is so employed temporarily as a substitute
teacher for 100 days or less in a school year or on an hourly basis with
earnings not in excess of the sum payable for 100 days' substitute service.
5. The Retired Teachers Supplementary Payment Fund shall be held and
administered by the Public School Teachers' Pension and Retirement Fund
established by this Article.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-156.1) (from Ch. 108 1/2, par. 17-156.1)
Sec. 17-156.1. Increases to retired members. A teacher who retired
prior to September 1, 1959 on service retirement pension who was at
least 55 years of age at date of retirement and had at least 20 years of
validated service shall be entitled to receive benefits under this Section.
These benefits shall be in an amount equal to 1-1/2% of the total of
(1) the initial service retirement pension plus (2) any emeritus payment
payable under Sections 34-86 and 34-87 (now repealed) of the School Code, multiplied by the number of full years on
pension. This payment shall begin in January of 1970. An additional
1-1/2% shall be added in January of each year thereafter. Beginning
January 1, 1972 the rate of increase in the service retirement pension
each year shall be 2%. Beginning January 1, 1979, the rate of increase in
the service retirement pension each year shall be 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total pension
payable at the time of the increase, including all increases previously
granted under this Article, notwithstanding Section 17-157.
A pensioner who otherwise qualifies for the aforesaid benefit shall
make a one-time payment of 1% of the final monthly average salary
multiplied by the number of completed years of service forming the basis
of his service retirement pension or, if the pension was not computed according
to average salary as defined in Section 17-116, 1% of the monthly
base pension multiplied by each complete year of service forming the
basis of his service retirement pension. Unless the pensioner rejects
the benefits of this Section, such sum shall be deducted from the
pensioner's December 1969 pension check and shall not be refundable.
(Source: P.A. 94-1105, eff. 6-1-07.)
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(40 ILCS 5/17-156.2) (from Ch. 108 1/2, par. 17-156.2)
Sec. 17-156.2.
Increases to retired members.
Any teacher who retired prior to September 1, 1959 on a service
retirement pension at age 55 or over with at least 15 years of validated
service, or while under age 55 with at least 20 years of validated service,
or any teacher retired for total and permanent disability who is aged 65
years or over, shall be entitled to receive the benefits of this Section
beginning January 1, 1972, except that no teacher may receive increases in
benefits under both this Section and Section 17-156.1.
These benefits shall be the same as provided in Section 17-156.1, as
amended, except that the yearly automatic annual increase to and including
the calendar year 1971 shall be limited to 1 1/2%. This payment shall begin
in January, 1972.
A pensioner who otherwise qualifies for the aforesaid benefit shall make
a one-time payment of 1% of the monthly base pension multiplied by each
complete year of service forming the basis of his service or disability
retirement pension. Unless the pensioner rejects the benefits of this
Section such sum shall be deducted from the pensioner's December 1971
pension check and shall not be refundable.
(Source: P.A. 82-581.)
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(40 ILCS 5/17-156.3) (from Ch. 108 1/2, par. 17-156.3)
Sec. 17-156.3.
Minimum retirement pension.
(a) Beginning January 1,
1987, any person who is receiving a monthly retirement pension under this
Article which, after inclusion of (1) all one-time and automatic annual
increases to which the person is entitled, (2) any supplementary payment
payable under Section 17-154, and (3) any amount deducted under Section
17-120 to provide a reversionary pension, is less than the minimum monthly
retirement benefit amount specified in subsection (b) of this Section,
shall be entitled to a monthly supplemental payment equal to the difference.
(b) Beginning January 1, 1996, for purposes of the calculation in
subsection (a), the minimum monthly retirement benefit amount is the sum of
$25 for each year of service, up to a maximum of $750 per month for 30 or more
years of creditable service.
(c) The changes made to this Section by this amendatory Act of 1995 apply to
all persons receiving a retirement pension under this Article, without regard
to whether or not employment terminated prior to the effective date of this
amendatory Act of 1995 and notwithstanding Section 17-157.
(Source: P.A. 89-21, eff. 6-6-95; 89-25, eff. 6-21-95.)
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(40 ILCS 5/17-157) (from Ch. 108 1/2, par. 17-157)
Sec. 17-157.
Effect of amendments.
Whenever an amendment which is, has
been or may be enacted, proposes
liberalizing changes in qualifying conditions or increases in benefits,
the amendment shall be applicable only to persons who, on or after its
effective date, are teachers, providing that an amendment shall be applicable
to a former teacher who is reinstated as a contributor.
(Source: P.A. 84-1028.)
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(40 ILCS 5/17-158) (from Ch. 108 1/2, par. 17-158)
Sec. 17-158.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Board
provided for under this Article. The term "administrative decision" is as
defined in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-159) (from Ch. 108 1/2, par. 17-159)
Sec. 17-159.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 18 heading) ARTICLE 18.
JUDGES RETIREMENT SYSTEM OF ILLINOIS
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(40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
Sec. 18-101.
Creation of fund.
A retirement system is created to be known as the "Judges Retirement
System of Illinois". It shall be a trust separate and distinct from all
other entities, maintained for the purpose of securing the payment of
annuities and benefits as prescribed herein.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-102) (from Ch. 108 1/2, par. 18-102)
Sec. 18-102.
Purpose.
The purpose of the system is to establish an efficient method of
permitting retirement, without hardship or prejudice, of judges who are
aged or otherwise incapacitated, by enabling them to accumulate reserves
for themselves and their dependents for old age, disability, death, and
termination of employment.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-103) (from Ch. 108 1/2, par. 18-103)
Sec. 18-103.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 18-104 through 18-118, except when
the context otherwise requires.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-104) (from Ch. 108 1/2, par. 18-104)
Sec. 18-104.
Effective date.
"Effective date": July 1, 1941.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-105) (from Ch. 108 1/2, par. 18-105)
Sec. 18-105.
System.
"System": The Judges Retirement System of Illinois.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-106) (from Ch. 108 1/2, par. 18-106)
Sec. 18-106.
Board.
"Board": The Board of Trustees of the Judges Retirement System of
Illinois.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-107) (from Ch. 108 1/2, par. 18-107)
Sec. 18-107.
Employer.
"Employer": The State, and any county as authorized by law, certifying
payments of salary for, or paying salary to, any judge of the Supreme
Court, Appellate Court and Circuit Court.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
Sec. 18-108.
Judge.
"Judge": Any person who receives payment for personal
services as a judge or
associate judge of a court; and any person, previously a participant,
who receives payment for personal services as the administrative director
appointed by the Supreme
Court.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
Sec. 18-109.
Eligible judge.
"Eligible judge": Any judge except one who has elected not
to participate in this system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
Sec. 18-110.
Participant.
"Participant": Any judge participating in this system as
specified in Sections 18-120 and 18-121.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-111) (from Ch. 108 1/2, par. 18-111)
Sec. 18-111.
Salary.
"Salary": The total compensation paid for personal
services as a judge, by the State, or by the State and a county as
authorized by law. However, in the event that federal law results in any
judge receiving imputed income based on the value of group term life
insurance provided by the State, such imputed income shall not be included
in salary for the purposes of this Article.
(Source: P.A. 86-273.)
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(40 ILCS 5/18-112) (from Ch. 108 1/2, par. 18-112)
Sec. 18-112.
Service.
"Service": The period beginning on the day a
person first became a judge, whether prior or subsequent to the effective
date, and ending on the date under consideration, excluding all intervening
periods during which he or she was not a judge following resignation or
expiration of any term of election or appointment.
Service also includes the following: (a) Any period prior to January 1,
1964 during which a judge served as a justice of the peace, police
magistrate or master in chancery, or as a civil referee, commissioner or
trial assistant to the chief judge in the Municipal Court of Chicago, or
performed judicial duties as an assistant to the judge of the Probate Court
of Cook County. A judge shall be entitled to credit for all or as much as
the judge may desire of such service, not exceeding 8 years, upon payment
of the participant's contribution covering such service at the contribution
rates in effect on July 1, 1969, together with interest at 4% per annum
compounded annually, from the dates the service was rendered to the date of
payment, provided credit for such service had not been granted in any
public pension fund or retirement system in the State. The required
contributions shall be based upon the rate of salary in effect for the
judge on the date he or she entered the system or on January 1, 1964,
whichever is later.
(b) Service rendered after January 1, 1964, as a holdover magistrate
or master in chancery of the Circuit Court. A judge shall be entitled to
credit for any period of such service, not exceeding a total of 8 years,
together with the period of service taken into account in paragraph (a).
Service credit under this paragraph is subject to the same contribution
requirements and other limitations that are prescribed for service credit under
paragraph (a).
(c) Any period that a participant served as a member of the General
Assembly, subject to the following conditions:
(1) He or she has been a participant in this system
for at least 4 years and has contributed to the system for
service rendered as a member of the General Assembly subsequent to
November 1, 1941, at the contribution rates in effect for a judge on
the date of becoming a participant, including interest at 3% per annum
compounded annually from the date such service was rendered to the date of
payment, based on the salary in effect during such period of service; and
(2) The participant is not entitled to credit for such service in any
other public retirement system in the State.
(d) Any period a participant served as a judge or commissioner of
the Court of Claims of this State after November 1, 1941, provided he or
she contributes to the system at the contribution rates in effect on the
date of becoming a participant, based on salary received during such
service, including interest at 3% per annum compounded annually from the
date such service was rendered to the date of payment.
(e) Any period that a participant served as State's Attorney or Public
Defender of any county of this State, subject to the following conditions: (1)
such service was not credited under any public pension fund or retirement
system; (2) the maximum service to be credited in this system shall be 8 years;
(3) the participant must have at least 6 years of service as a judge and as a
participant of this system; and (4) the participant has made contributions to
the system for such service at the contribution rates in effect on the date of
becoming a participant in this system based upon the salary of the judge on
such date, including interest at 4% per annum compounded annually from such
date to the date of payment.
A judge who terminated service before January 26, 1988 and whose
retirement annuity began after January 1, 1988 may establish credit for
service as a Public Defender in accordance with the other provisions of
this subsection by making application and paying the required contributions
to the Board not later than 30 days after August 23, 1989. In such
cases, the Board shall recalculate the retirement annuity, effective on the
first day of the next calendar month beginning at least 30 days after the
application is received.
(f) Any period as a participating policeman, employee or teacher under
Article 5, 14 or 16 of this Code, subject to the following conditions: (1) the
credits accrued under Article 5, 14 or 16 have been transferred to this system;
and (2) the participant has contributed to the system an amount equal to (A)
contributions at the rate in effect for participants at the date of membership
in this system based upon the salary of the judge on such date, (B) the
employer's share of the normal cost under this system for each year that credit
is being established, based on the salary in effect at the date of membership
in this system, and (C) interest at 6% per annum, compounded annually, from the
date of membership to the date of payment; less (D) the amount transferred on
behalf of the participant from Article 5, 14 or 16.
(g) Any period that a participant served as the Administrative Director
of the Circuit Court of Cook County, as Executive Director of the Home Rule
Commission, as assistant corporation counsel in the Chicago Law Department, or
as an employee of the Cook County Treasurer, subject to the following
conditions: (1) the maximum amount of such service which may be credited is 10
years; (2) in order to qualify for such credit in this system, a judge must
have at least 6 years of service as a judge and participant of this system; (3)
the last 6 years of service credited in this system shall be as a judge and a
participant in this system; (4) credits accrued to the participant under any
other public pension fund or public retirement system in the State, if any, by
reason of the service to be established under this paragraph (g) has been
transferred to this system; and (5) the participant has contributed to this
system the amount, if any, by which the amount transferred pursuant to
subdivision (4) of this paragraph, if any, is less than the amount which the
participant would have contributed to the system during the period of time
being counted as service under this paragraph had the participant
been a judge participating in this system during that time, based on the
rate of contribution in effect and the salary earned by the participant
on the date he or she became a participant, with interest accruing on
such deficiency at a rate of 5% per annum from the date he or she became a
participant through the date on which such deficiency is paid.
(h) Any period that a participant served as a full-time attorney
employed by the Chicago Transit Authority created by the Metropolitan
Transit Authority Act, subject to the following conditions: (1) any credit
received for such service in the pension fund established under Section
22-101 has been terminated; (2) the maximum amount of such service to be
credited in this system shall be 10 years; (3) the participant must have at
least 6 years of service as a judge and as a participant of this system;
and (4) the participant has made contributions to the system for such
service at the contribution rates in effect on the date of becoming a
participant in this system based upon the salary of the judge on such date,
including interest at 5% per annum compounded annually from such date to
the date of payment.
(i) Any period during which a participant received temporary total
disability benefit payments, as provided in Section 18-126.1.
Service during a fraction of a month shall be considered a month of
service, but no more than one month of service shall be credited for all
service during any calendar month.
(Source: P.A. 86-272; 86-273; 86-1028; 87-1265.)
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(40 ILCS 5/18-112.1) (from Ch. 108 1/2, par. 18-112.1)
Sec. 18-112.1.
(a) An active member of the General Assembly
Retirement System may apply for transfer of his or her credits and creditable
service under this system to the General Assembly Retirement
System.
Payment by this system to the General
Assembly Retirement System shall be made at the same time as the transfer
of credits and shall consist of:
(1) the amounts credited to the applicant, through employee
contributions, including interest if applicable, on the date of transfer; and
(2) employer contributions equal to the accumulated employee
contributions as determined under clause (1) above.
Participation in this system shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate
service credits terminated upon receipt of a refund
by repaying to the system the amount of the refund
together with interest thereon, to the
date of payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-112.2) (from Ch. 108 1/2, par. 18-112.2)
Sec. 18-112.2.
Transfer of creditable service to Article 8, 9 or 13
Fund.
(a) Any city officer as defined in Section 8-243.2 of this
Code, any county officer elected by vote of the people
who is a participant in the pension fund established under Article 9
of this
Code, and any elected sanitary district commissioner who is a participant
in a pension fund established under Article 13 of this Code,
may apply for transfer of his or her credits and creditable service
accumulated under this System to such Article 8, 9 or 13 fund. Such creditable
service shall be transferred forthwith. Payment by this System to the
Article 8, 9 or 13 fund shall be made at the same time, and shall consist of:
(1) the amounts credited to the applicant through | ||
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(2) employer contributions equal to the accumulated | ||
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Participation in this System shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner
may reinstate credits and creditable service
terminated upon receipt of a refund, by repaying to the System the amount of
the refund together with interest thereon to the date of payment.
(Source: P.A. 91-357, eff. 7-29-99.)
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(40 ILCS 5/18-112.3) (from Ch. 108 1/2, par. 18-112.3)
Sec. 18-112.3.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in this System for the
duration of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this System,
upon payment to this System of the amount by which (1) the employer and
employee contributions that would have been required if he had participated
in this System during the period for which credit under Section 2-117.1
is being transferred, plus regular interest thereon at the prescribed rate
from the date of such participation to the date of payment, exceeds (2) the
amounts actually
transferred under that Section to this System.
(Source: P.A. 86-272.)
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(40 ILCS 5/18-112.4) (from Ch. 108 1/2, par. 18-112.4)
Sec. 18-112.4.
Service credit for elected or appointed village
official. An active participant in this System who has at least 6 years of
service as a judge and as a participant of this System on August 23,
1989, and who has no creditable service as a participating employee under
Article 7 of this Code, may establish service credit in this System: (i) for
periods during which the participant held elective office as a member of
the board of trustees of a village, and (ii) for any consecutive period not
exceeding 5 years during which the participant held appointive office as a
member of the zoning board of appeals of the same village in which the
participant later held elective office as village trustee, provided such
period of appointive office terminated within 12 months prior to the date
such period of elective office commenced.
Service credit in this System may be established pursuant to this Section
only if the participant did not contribute to the retirement and benefit fund
established under Article 7 of this Code for the service sought to be
established by the participant in this System, and only if the participant
has no equity or rights in that fund because of such service.
Credit for such service may be established in this System by the
participant paying to this System an amount equal to (1) contributions
at the rate in effect for a judge on the date of becoming a participant in this
System multiplied by the salary of the judge on such date for each year of
service for which credit is being established, plus (2) the employer's
share of the normal cost of benefits under this System, expressed as a
percent of payroll, as determined by the System's actuary as of the date of
the participant's membership in the System, multiplied by the salary of the
judge on such date for each year of service for which credit is being
established, plus (3) interest on (1) and (2) above at 6% per annum
compounded annually from the date of membership to the date of payment by
the participant.
(Source: P.A. 86-273; 86-1028.)
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(40 ILCS 5/18-112.5) (from Ch. 108 1/2, par. 18-112.5)
Sec. 18-112.5.
Payments and Rollovers.
(a) The Board may adopt rules
prescribing the manner of repaying refunds and purchasing any optional
credits permitted under this Article. The rules may prescribe the manner
of calculating interest when such payments or repayments are made in
installments.
(b) Rollover contributions from other retirement plans qualified under
the U.S. Internal Revenue Code may be used to purchase any optional credit
or repay any refund permitted under this Article.
(Source: P.A. 86-1488.)
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(40 ILCS 5/18-112.6)
Sec. 18-112.6.
Service credit for member of educational board.
Until July
1, 1998, an active participant in this System who has at least 6 years of
service as a judge may establish up to 2 years of service credit in this System
for a period during which the participant held elective office as a member of a
board of education in this State or a member of the board of trustees of a
community college district in this State, by applying to the Board in
writing and paying to the System an amount equal to (1) employee contributions
based on the rate in effect for a judge on the date of becoming a participant
in this System and the salary received by the judge on that date, plus (2) the
employer's share of the normal cost of the benefits being established, plus (3)
interest thereon at the prescribed rate, compounded annually, from the date
of membership to the date of payment. However, credit may not be established
under this Section for any period for which the judge has received credit under
any other pension fund or retirement system subject to this Code, unless that
credit has been terminated.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/18-113) (from Ch. 108 1/2, par. 18-113)
Sec. 18-113.
Annuity.
"Annuity": A series of monthly payments payable at the end of each
calendar month during the life of an annuitant or as otherwise provided
in this Article. The first payment shall be
prorated for any fraction of a month elapsing to the end of the first
month and the last payment shall be made for the whole calendar
month in which death occurs.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-114) (from Ch. 108 1/2, par. 18-114)
Sec. 18-114.
Annuitant.
"Annuitant": A person receiving a retirement annuity or survivor's
annuity.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-115) (from Ch. 108 1/2, par. 18-115)
Sec. 18-115. Beneficiary. "Beneficiary": A surviving spouse or children eligible for
an annuity; or, if no
eligible surviving spouse or children survives, the person
or persons designated by
the participant or annuitant in the last written designation on file with
the Board; or, if no person so designated survives, or if no designation is
on file, the estate of the participant or annuitant. If a special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time, has been established for a disabled child, then the special needs trust may stand in lieu of the disabled adult child as a beneficiary for the purposes of this Article.
(Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/18-116) (from Ch. 108 1/2, par. 18-116)
Sec. 18-116. Actuarial tables.
"Actuarial tables": Such tabular listings of assumed rates of death,
disability, retirement and withdrawal from service and mathematical
functions derived from such rates combined with an assumed rate of
interest, based upon the experience of the system, as adopted by the board
upon recommendation by the actuary.
The adopted actuarial tables shall be used to determine the amount of all benefits under this Article, including any optional forms of benefits. Optional forms of benefits must be the actuarial equivalent of the normal benefit payable under this Article. (Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/18-117) (from Ch. 108 1/2, par. 18-117)
Sec. 18-117.
Prescribed rate of interest.
"Prescribed rate of interest": 4% per annum compounded annually, or
such other rate prescribed by the board based on expected long term
investment returns and the experience of the system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-118) (from Ch. 108 1/2, par. 18-118)
Sec. 18-118.
Fiscal year.
"Fiscal year": The period beginning on July 1 and ending on June 30 of
the succeeding year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-119) (from Ch. 108 1/2, par. 18-119)
Sec. 18-119.
Employer participation.
Each employer is subject to the provisions of this system beginning on
the effective date or the date of subsequent qualification as an employer.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
Sec. 18-120.
Employee participation.
An eligible judge who is not a participant shall become a participant beginning on
the date he or she becomes an eligible judge, unless the judge files
with the board a written notice of election not to
participate within 30 days of the date of being notified of the option.
A person electing not to participate shall thereafter be ineligible to
become a participant unless the election is revoked as provided in Section
18-121.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-120.1) (from Ch. 108 1/2, par. 18-120.1)
Sec. 18-120.1.
Gender.
The masculine gender whenever used in this Article includes the feminine
gender unless manifestly inconsistent with the
context.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-121) (from Ch. 108 1/2, par. 18-121)
Sec. 18-121.
Recision of election not to participate.
A judge who
filed a notice of election not to participate shall become a participant
upon filing with the board before July 1, 1992, a written recision of such
notice. The recision shall state that such person is then a judge, his or
her present age, and previous records of service as a judge. After 3 years
of service as a participant, the judge may obtain credit for all service as
a judge prior to the date of participation by paying into the system the
contributions that he or she would have made as a participant at the rates
in effect during such service, together with interest at the rate of 4% per
annum compounded annually from the date the contributions would have been
due to the date of payment. Upon compliance, he or she shall receive
credit for all service rendered as a judge prior to the date of becoming a
participant. The time and manner of making such additional contributions,
including interest, shall be prescribed by the board.
Except as otherwise provided, a judge becoming a participant
by a recision of an election not to participate, shall be governed by
the provisions of this Article in effect on the date of the recision.
(Source: P.A. 87-794.)
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(40 ILCS 5/18-122) (from Ch. 108 1/2, par. 18-122)
Sec. 18-122.
Participation; military service.
Participation shall
continue until the date a participant becomes an annuitant, dies, or
accepts a refund.
Participation shall not cease during any period an eligible judge is
serving with the military or naval forces of the United States while the
United States is engaged in any war or for one year after such war, if the
judge makes contributions, together with any interest payments which might
be required, for delayed contribution payments.
A participant may also apply for creditable service for up to 2 years
of military service that need not have followed service as a judge and need
not have been served during wartime. However, for this military service
not immediately following employment as a judge, the applicant must make
contributions to the System (1) at the rates provided in Section 18-133
based upon the judge's rate of compensation on the last date as a
participating judge prior to such military service, or on the first date as
a participating judge after such military service, whichever is greater,
plus (2) if payment is made on or after May 1, 1993, an amount
determined by the Board to be equal to the employer's normal cost of the
benefits accrued for such military service, plus (3) interest at the effective
rate from the date of first membership in the System to the date of payment.
The amendment to this Section made by this amendatory Act of 1993 shall
apply to persons who are active contributors to the System on or after
November 30, 1992. A person who was an active contributor to the System on
November 30, 1992 but is no longer an active contributor may apply to purchase
military credit not immediately following employment as a judge within 60 days
after the effective date of this amendatory Act of 1993; if the person is an
annuitant, the resulting increase in annuity shall begin to accrue on the first
day of the month following the month in which the required payment is received
by the System. The change in the required contribution for purchased military
credit made by this amendatory Act of 1993 shall not entitle any person to a
refund of contributions already paid.
(Source: P.A. 87-794; 87-1265; 88-45.)
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(40 ILCS 5/18-123) (from Ch. 108 1/2, par. 18-123)
Sec. 18-123.
Participation in survivor's annuity.
A participant in
active service as a judge after July 26, 1949, is eligible to participate
in the survivor's annuity provided under this Article. A married
participant who was in service on July 27, 1949 is subject to the
provisions relating to survivor's annuities unless he or she filed with the
Board written notice not to participate in such annuity within 30 days of
that date.
A married judge who becomes a participant after July 27, 1949, an
unmarried judge who becomes a participant after December 31, 1992,
and a judge who marries after becoming a participant shall be
subject to the provisions relating to survivor's annuities unless he or she
files with the Board written notice of his or her election not to
participate in the survivor's annuity within 30 days of the
date of being notified of the option by the System. Once the
election period has expired, a judge may not withdraw from participation
under this Section except as provided in Section 18-129.
A person who became a participant before January 1, 1997 and
who is not contributing for survivor's annuity may elect to make contributions
for survivor's annuity by filing written notice of the election with the
Board no later than April 1, 1998. Such an election may not be
rescinded. A person who has so elected shall be entitled only to partial
credit for survivor's annuity under subsection (g) of Section 18-129 unless all
of the payments required under subsection (f) of that Section have been made.
A married participant who elects not to participate in the survivor's
annuity provisions shall thereafter be ineligible to participate in the
survivor's annuity unless the election is rescinded as provided herein.
A married participant who elected not to participate in the survivor's
annuity provisions and who is still a judge, may elect to participate therein
by filing with the Board before April 1, 1998 a written recision
of the election not to participate. The participant and his or her spouse
shall be entitled to all the rights of the survivor's annuity, except as
limited in Section 18-129, upon paying the System for the survivor's
annuity 1 1/2% of each payment of salary earned between July 27, 1949 and
July 12, 1953, and 2 1/2% of each payment of salary earned after July 12,
1953, together with interest at 4% per annum, compounded annually from the
date the contributions would have been due to the date of payment. The
time and manner of paying the required contributions and interest shall be
prescribed by the Board.
(Source: P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/18-123.2) (from Ch. 108 1/2, par. 18-123.2)
Sec. 18-123.2.
Annuities to survivors of male and female participants.
All provisions of this Article relating to annuities and benefits to a
surviving spouse, minor children or other survivors of participants shall apply
with equal force to male and female participants without any
distinction whatsoever.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
Sec. 18-124. Retirement annuities - conditions for eligibility. (a) This subsection (a) applies to a participant who first serves as a judge before the effective date of this amendatory Act of the 96th General Assembly. A
participant whose employment as a judge is terminated, regardless of age
or cause is entitled to a retirement annuity beginning on
the date specified in a written application subject to the
following:
(1) the date the annuity begins is subsequent to the | ||
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(2) the participant is at least age 55, or has become | ||
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(3) the participant has at least 10 years of service | ||
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(4) the participant is not receiving or entitled to | ||
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(b) This subsection (b) applies to a participant who first serves as a judge on or after the effective date of this amendatory Act of the 96th General Assembly. A participant who has at least 8 years of creditable service is
entitled to a retirement annuity when he or she has attained age 67. A member who has attained age 62 and has at least 8 years of service credit may elect to receive the lower retirement annuity provided
in subsection (d) of Section 18-125 of this Code. (Source: P.A. 96-889, eff. 1-1-11.)
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(40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
Sec. 18-125. Retirement annuity amount.
(a) The annual retirement annuity for a participant who terminated
service as a judge prior to July 1, 1971 shall be based on the law in
effect at the time of termination of service.
(b) Except as provided in subsection (b-5), effective July 1, 1971, the retirement annuity for any participant
in service on or after such date shall be 3 1/2% of final average salary,
as defined in this Section, for each of the first 10 years of service, and
5% of such final average salary for each year of service in excess of 10.
For purposes of this Section, final average salary for a participant who first serves as a judge before August 10, 2009 (the effective date of Public Act 96-207) shall be:
(1) the average salary for the last 4 years of | ||
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(2) for a participant who terminates service after | ||
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(3) for any participant who terminates service after | ||
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(4) for a participant who terminates service on or | ||
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(5) for a participant who terminates service on or | ||
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However, in the case of a participant who elects to discontinue contributions
as provided in subdivision (a)(2) of Section 18-133, the time of such
election shall be considered the last day of employment in the determination
of final average salary under this subsection.
For a participant who first serves as a judge on or after August 10, 2009 (the effective date of Public Act 96-207) and before January 1, 2011 (the effective date of Public Act 96-889), final average salary shall be the average monthly salary obtained by dividing the total salary of the participant during the period of: (1) the 48 consecutive months of service within the last 120 months of service in which the total compensation was the highest, or (2) the total period of service, if less than 48 months, by the number of months of service in that period. The maximum retirement annuity for any participant shall be 85% of final
average salary.
(b-5) Notwithstanding any other provision of this Article, for a participant who first serves as a judge on or after January 1, 2011 (the effective date of Public Act 96-889), the annual
retirement annuity is 3% of the
participant's final average salary for each year of service. The maximum retirement
annuity payable shall be 60% of the participant's final average salary. For a participant who first serves as a judge on or after January 1, 2011 (the effective date of Public Act 96-889), final average salary shall be the average monthly salary obtained by dividing the total salary of the judge during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period; however, beginning January 1, 2011, the annual salary may not exceed $106,800, except that that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding each November 1. "Consumer price index-u" means
the index published by the Bureau of Labor Statistics of the United States
Department of Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city average, all
items, 1982-84 = 100. The new amount resulting from each annual adjustment
shall be determined by the Public Pension Division of the Department of Insurance and made available to the Board by November 1st of each year. (c) The retirement annuity for a participant who retires prior to age 60
with less than 28 years of service in the System shall be reduced 1/2 of 1%
for each month that the participant's age is under 60 years at the time the
annuity commences. However, for a participant who retires on or after December 10, 1999 (the
effective date of Public Act 91-653), the
percentage reduction in retirement annuity imposed under this subsection shall
be reduced by 5/12 of 1% for every month of service in this System in excess of
20 years, and therefore a participant with at least 26 years of service in this
System may retire at age 55 without any reduction in annuity.
The reduction in retirement annuity imposed by this subsection shall not
apply in the case of retirement on account of disability.
(d) Notwithstanding any other provision of this Article, for a participant who first serves as a judge on or after January 1, 2011 (the effective date of Public Act 96-889) and who is retiring after attaining age 62, the retirement annuity shall be reduced by 1/2
of 1% for each month that the participant's age is under age 67 at the time the annuity commences. (Source: P.A. 100-201, eff. 8-18-17.)
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(40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
Sec. 18-125.1. Automatic increase in retirement annuity. A participant who
retires from service after June 30, 1969, shall, in January of the year next
following the year in which the first anniversary of retirement occurs, and in
January of each year thereafter, have the amount of his or her originally
granted retirement annuity increased as follows: for each year up to and
including 1971, 1 1/2%; for each year from 1972 through 1979 inclusive, 2%; and
for 1980 and each year thereafter, 3%.
Notwithstanding any other provision of this Article, a retirement annuity for a participant who first serves as a judge on or after January 1, 2011 (the effective date of Public Act 96-889) shall be increased in January of the year next
following the year in which the first anniversary of retirement occurs, but in no event prior to age 67, and in
January of each year thereafter, by an amount equal to 3% or the annual percentage increase in the consumer price index-u as determined by the Public Pension Division of the Department of Insurance under subsection (b-5) of Section 18-125, whichever is less, of the retirement annuity then being paid. This Section is not applicable to a participant who retires before he
or she has made contributions at the rate prescribed in Section 18-133 for
automatic increases for not less than the equivalent of one full year, unless
such a participant arranges to pay the system the amount required to bring
the total contributions for the automatic increase to the equivalent of
one year's contribution based upon his or her last year's salary.
This Section is applicable to all participants in service after June 30,
1969 unless a participant has elected, prior to September 1,
1969, in a written direction filed with the board not to be subject to
the provisions of this Section. Any participant in service on or after
July 1, 1992 shall have the option of electing prior to April 1, 1993,
in a written direction filed with the board, to be covered by the provisions of
the 1969 amendatory Act. Such participant shall be required to make the
aforesaid additional contributions with compound interest at 4% per annum.
Any participant who has become eligible to receive the maximum rate of
annuity and who resumes service as a judge after receiving a retirement
annuity under this Article shall have the amount of his or her
retirement annuity increased by 3% of the originally granted annuity amount
for each year of such resumed service, beginning in January of the year
next following the date of such resumed service, upon subsequent
termination of such resumed service.
Beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/18-126) (from Ch. 108 1/2, par. 18-126)
Sec. 18-126.
Retirement annuity for permanent disability-determination of
disability.
A participant shall be considered permanently disabled only if (1)
disability occurs while in employment as a judge and is of such a nature as
to prevent the participant from reasonably performing the duties
of his or her office at the time, and (2) the board
has received a written certificate by at least 2
licensed and practicing physicians appointed by it stating that the participant
is disabled and that the disability is likely to be permanent.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-126.1) (from Ch. 108 1/2, par. 18-126.1)
Sec. 18-126.1.
Temporary total disability.
A participant
who has served for at least 2 years as a judge and has at least 2 years
of service credit shall be entitled to a temporary total disability
benefit provided:
(1) While in employment as a judge, the participant is found by
medical examination to be mentally or physically incompetent to perform his
or her duties;
(2) The participant does not receive or have a right to receive
any salary as a judge;
(3) The board has received written
certifications by at least 2 licensed and practicing physicians designated
by it certifying that the participant is totally disabled
and unable to perform the duties of his or her office as a consequence
thereof; and
(4) The participant is not engaged in any form of gainful
occupation during his or her disability.
The benefit shall begin as of the day following
the removal of the judge from the payroll on account of the disability
and be payable during the period of disability but not beyond the term of
office for which the participant was last elected
or appointed.
The benefit shall be 50% of the participant's rate of salary
in effect at the date of removal from the payroll and shall be payable
monthly.
A participant shall receive service credit for retirement and survivor's
annuity purposes for the period that temporary disability benefits are paid.
The board shall prescribe rules and regulations necessary
for the administration of this benefit.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
Sec. 18-127. Retirement annuity - suspension on reemployment.
(a) A participant receiving a retirement annuity who is regularly
employed for compensation by an employer other than a county, in any
capacity, shall have his or her retirement annuity payments suspended
during such employment. Upon termination of such employment, retirement
annuity payments at the previous rate shall be resumed.
If such a participant resumes service as a judge, he or she
shall receive credit for any additional service. Upon subsequent
retirement, his or her retirement annuity shall be the amount previously
granted, plus the amount earned by the additional judicial service under
the provisions in effect during the period of such additional service.
However, if the participant was receiving the maximum rate of annuity at
the time of re-employment, he or she may elect, in a written direction
filed with the board, not to receive any additional service credit during
the period of re-employment. In such case, contributions shall not be
required during the period of re-employment. Any such election shall be
irrevocable.
(b) Beginning January 1, 1991, any participant receiving a retirement
annuity who accepts temporary employment from an employer other than a
county for a period not exceeding 75 working days in any calendar year
shall not be deemed to be regularly employed for compensation or to have
resumed service as a judge for the purposes of this Article. A day shall
be considered a working day if the annuitant performs on it any of his
duties under the temporary employment agreement.
(c) Except as provided in subsection (a), beginning January 1, 1993,
retirement annuities shall not be subject to suspension upon resumption of
employment for an employer, and any retirement annuity that is then so
suspended shall be reinstated on that date.
(d) The changes made in this Section by this amendatory Act of 1993
shall apply to judges no longer in service on its effective date, as well as to
judges serving on or after that date.
(e) A participant receiving a retirement
annuity under this Article who serves as a part-time employee in any of the following positions: Legislative Inspector General, Special Legislative Inspector General, employee of the Office of the Legislative Inspector General, Executive Director of the Legislative Ethics Commission, or staff of the Legislative Ethics Commission, but has not elected to participate in the Article 14 System with respect to that service, shall not be deemed to be regularly employed for compensation by an employer other than a county, nor to have
resumed service as a judge, on the basis of that service, and the retirement annuity payments and other benefits of that person under this Code shall not be suspended, diminished, or otherwise impaired solely as a consequence of that service. This subsection (e) applies without regard to whether the person is in service as a judge under this Article on or after the effective date of this amendatory Act of the 93rd General Assembly. In this subsection, a "part-time employee" is a person who is not required to work at least 35 hours per week.
(f) A participant receiving a retirement annuity under this Article who has made an election under Section 1-123 and who is serving either as legal counsel in the Office of the Governor or as Chief Deputy Attorney General shall not be deemed to be regularly employed for compensation by an employer other than a county, nor to have resumed service as a judge, on the basis of that service, and the retirement annuity payments and other benefits of that person under this Code shall not be suspended, diminished, or otherwise impaired solely as a consequence of that service. This subsection (f) applies without regard to whether the person is in service as a judge under this Article on or after the effective date of this amendatory Act of the 93rd General Assembly.
(g) Notwithstanding any other provision of this Article, if a person who first becomes a participant under this System on or after January 1, 2011 (the effective date of this amendatory Act of the 96th General Assembly) is receiving a retirement annuity under this Article and becomes a member or participant under this Article or any other Article of this Code and is employed on a full-time basis, then the person's retirement annuity under this System shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity shall resume and, if appropriate, be recalculated under the applicable provisions of this Article.(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128)
Sec. 18-128. Survivor's annuities; Conditions for payment.
(a) A survivor's annuity shall be payable upon the death of a
participant while in service after June 30, 1967 if the participant had at
least 1 1/2 years of service credit as a judge, or upon death of an
inactive participant who had terminated service as a judge on or after June
30, 1967 with at least 10 years of service credit, or upon the death of an
annuitant whose retirement becomes effective after June 30, 1967.
(b) The surviving spouse of a deceased participant or annuitant is
entitled to a survivor's annuity beginning at the date of death if the
surviving spouse (1) has been married to the participant or annuitant for a
continuous period of at least one year immediately preceding the date of
death, and (2) has attained age 50, or, regardless of age, has in his or
her care an eligible child or children of the decedent as provided under
subsections (c) and (d) of this Section. If the surviving spouse has no
such child in his or her care and has not attained age 50, the survivor's
annuity shall begin upon attainment of age 50. When all such children of
the deceased who are in the care of the surviving spouse no longer qualify
for benefits and the surviving spouse is under 50 years of age, the
surviving spouse's annuity shall be suspended until he or she attains age 50.
(c) A child's annuity is payable for an unmarried child of an
annuitant or participant so long as the child is (i) under age 18,
(ii) under age 22 and a full time student, or (iii) age 18 or over
if dependent by reason of physical or mental disability. Disability means
inability to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can expected to
result in death or which has lasted or can be expected to last for a
continuous period of not less than 12 months.
(d) (Blank).
(e) Remarriage prior to attainment of age 50 that occurs before the
effective date of this amendatory Act of the 91st General Assembly shall
disqualify a surviving spouse for the receipt of a survivor's annuity.
The change made to this subsection by this amendatory Act of the 91st
General Assembly applies without regard to whether the deceased judge was
in service on or after the effective date of this amendatory Act of the 91st
General Assembly.
(f) The changes made in survivor's annuity provisions by Public Act
82-306 shall apply to the survivors of a deceased participant or annuitant
whose death occurs on or after August 21, 1981 and whose service as a judge
terminates on or after July 1, 1967.
The provision of child's annuities for dependent students under age 22
by this amendatory Act of 1991 shall apply to all eligible students
beginning January 1, 1992, without regard to whether the deceased judge was
in service on or after the effective date of this amendatory Act.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
Sec. 18-128.01. Amount of survivor's annuity.
(a) Upon the death of
an annuitant, his or her surviving spouse shall be entitled to a survivor's
annuity of 66 2/3% of the annuity the annuitant was receiving immediately
prior to his or her death, inclusive of annual increases in the retirement
annuity to the date of death.
(b) Upon the death of an active participant, his or her surviving spouse
shall receive a survivor's annuity of 66 2/3% of the annuity earned by the
participant as of the date of his or her death, determined without regard
to whether the participant had attained age 60 as of that time, or 7 1/2%
of the last salary of the decedent, whichever is greater.
(c) Upon the death of a participant who had terminated service with at
least 10 years of service, his or her surviving spouse shall be entitled
to a survivor's annuity of 66 2/3% of the annuity earned by the deceased
participant at the date of death.
(d) Upon the death of an annuitant, active participant, or participant
who had terminated service with at least 10 years of service, each surviving
child under the age of 18 or disabled as defined in Section 18-128 shall
be entitled to a child's annuity in an amount equal to 5% of the decedent's
final salary, not to exceed in total for all such children the greater of
20% of the decedent's last salary or 66 2/3% of the annuity received or
earned by the decedent as provided under subsections (a) and (b) of this
Section. This child's annuity shall be paid whether or not a survivor's
annuity was elected under Section 18-123.
(e) The changes made in the survivor's annuity provisions by Public Act
82-306 shall apply to the survivors of a deceased participant or annuitant
whose death occurs on or after August 21, 1981.
(f) Beginning January 1, 1990, every survivor's annuity shall be
increased
(1) on each January 1 occurring on or after the commencement of the annuity if
the deceased member died while receiving a retirement annuity, or (2) in other cases,
on each January 1 occurring on or after the first anniversary of
the commencement of the annuity, by an amount equal to 3% of the current
amount of the annuity, including any previous increases under this Article.
Such increases shall apply without regard to whether the deceased member
was in service on or after the effective date of this amendatory Act of
1991, but shall not accrue for any period prior to January 1, 1990.
(g) Notwithstanding any other provision of this Article, the initial survivor's annuity for a survivor of a participant who first serves as a judge after January 1, 2011 (the effective date of Public Act 96-889) shall be in the amount of 66 2/3% of the annuity received or earned by the decedent, and shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if
the deceased participant died while receiving a retirement annuity, or (2) in other cases,
on each January 1 occurring on or after the first anniversary of
the commencement of the annuity, but in no event prior to age 67, by an amount equal to 3% or the annual unadjusted percentage increase in the consumer price index-u as determined by the Public Pension Division of the Department of Insurance under subsection (b-5) of Section 18-125, whichever is less, of the survivor's annuity then being paid. (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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(40 ILCS 5/18-128.1) (from Ch. 108 1/2, par. 18-128.1)
Sec. 18-128.1.
Limitations.
Payment of a widow's or survivor's annuity shall begin to accrue from the date on
which salary or annuity payments to or on account of a deceased judge
are terminated.
Annuity payments to a spouse shall in no event be made for any period of
time for which supplementary salary is granted or paid to the spouse
following the death of the judge.
(Source: P.A. 83-427.)
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(40 ILCS 5/18-128.2) (from Ch. 108 1/2, par. 18-128.2)
Sec. 18-128.2.
Reduction of disability and survivor's benefits for
corresponding
benefits payable under Workers' Compensation and Workers' Occupational Diseases
Acts. Whenever a person is entitled to a disability or survivor's benefit
under this Article and to benefits under the Workers' Compensation Act
or the Workers' Occupational Diseases Act for the same injury or disease,
the benefits payable under this Article shall be reduced by the amount of
benefits payable under either of those Acts. There shall be no reduction,
however, for payments for medical, surgical and hospital services, non-medical
remedial care and treatment rendered in accordance with a religious method
of healing recognized by the laws of this State and for artificial appliances,
and fixed statutory payments for the loss of or the permanent and complete
loss of the use of any bodily member. If the benefits deductible under this
Section are stated in a weekly amount, the monthly amount for the purposes
of this Section shall be 4 1/3 times the weekly amount.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-128.3) (from Ch. 108 1/2, par. 18-128.3)
Sec. 18-128.3. Required distributions. (a) A person who would be
eligible to receive a survivor's annuity under this Article but for the
fact that the person has not yet attained age 50, shall be eligible for a
monthly distribution under this subsection (a), provided that the payment
of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987, (ii) December
1 of the calendar year immediately following the calendar year in which the
deceased spouse died, or (iii) December 1 of the calendar year in which the
deceased spouse would have attained age 72, whichever occurs last, and
shall remain payable until the first of the following to occur: (1) the
person becomes eligible to receive a survivor's annuity under this Article;
(2) the end of the month in which the person ceases to be eligible to
receive a survivor's annuity upon attainment of age 50, due to remarriage
or death; or (3) the end of the month in which such distribution ceases to
be required by federal law.
The amount of the distribution shall be fixed at the time the
distribution first becomes payable, and shall be calculated in the same
manner as a survivor's annuity under Sections 18-128 through 18-128.2,
but excluding: (A) any requirement for
an application for the distribution; (B) any automatic annual increases,
supplemental increases, or one-time increases that may be provided by law
for survivor's annuities; and (C) any lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall be deemed to be
required by federal law if: (1) directly mandated by federal statute, rule,
or administrative or court decision; or (2) indirectly mandated through
imposition of substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member need not be
in service on or after the effective date of this amendatory Act of 1989
for the member's surviving spouse to be eligible for a
distribution under this Section.
(Source: P.A. 102-210, eff. 7-30-21.)
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(40 ILCS 5/18-129) (from Ch. 108 1/2, par. 18-129)
Sec. 18-129.
Refund of contributions; repayment.
(a) A participant who ceases to be a judge may, upon application to the
Board, receive a refund of his or her total contributions to the System
including the contributions made towards the automatic increase in
retirement annuity and contributions for the survivor's annuity,
without interest, provided he or she is not then immediately eligible to
receive a retirement annuity.
Upon receipt of a refund, the applicant shall cease to be a participant
and shall thereupon relinquish all rights in the System. However, upon
again becoming a participant, the judge shall receive credit for all
previous judicial service upon payment to the System of the amount refunded
together with interest at 4% per annum from the time of the refund to the
date of repayment.
(b) Upon death of a participant who did not become an annuitant, where
no spouse or other beneficiaries eligible for an annuity survive,
the participant's designated beneficiary or estate shall be
entitled to a refund of his or her total contributions to the System,
including contributions made towards the automatic increase in retirement
annuity and contributions for the survivor's annuity, without interest.
(c) Upon death of an annuitant, where no spouse or other beneficiaries
eligible for an annuity survive, the designated beneficiary or estate
shall receive a refund of the contributions made for the survivor's annuity,
without interest. If the annuitant received annuity
payments in the aggregate less than his or her contributions
for retirement annuity and the contributions towards the
automatic increase in the retirement annuity, the designated beneficiary
or estate shall also be refunded the difference between the total of such
contributions, excluding interest, and the sum of annuity payments made.
(d) A participant or annuitant whose marriage is terminated by death or
dissolution, an unmarried participant, and an annuitant who was not married
while he or she was a judge shall, upon application to the Board, receive
a refund of his or her contributions for the survivor's annuity, without
interest. Upon the issuance of a refund under this subsection, the recipient's
credit for survivor's annuity purposes shall terminate and the recipient shall
not thereafter make contributions for survivor's annuity, except in accordance
with subsection (f) or (g). Upon the death of a participant or annuitant who
received such a refund, any eligible children shall nevertheless be entitled to
the child's annuities provided in Section 18-128.01.
(e) Upon the death of a surviving spouse who, together with the
deceased judge, did not receive annuity payments in the aggregate equal to
the judge's total contributions to the System, the estate of the surviving
spouse shall be refunded the difference between the total payments and
total contributions, excluding interest.
(f) Upon marriage or remarriage, a participant or annuitant shall
receive full credit for survivor's annuity purposes upon:
(1) in the case of a participant, making the | ||
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(2) repaying in full any survivor's annuity | ||
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(3) making survivor's annuity contributions for the | ||
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The time and manner of making such repayments shall be prescribed by
the Board.
(g) Upon marriage or remarriage, a participant who does not make the
payments required for full survivor's annuity credit under subsection (f)
may receive partial credit for survivor's annuity by making survivor's
annuity contributions under Section 18-123 beginning on the date of the
marriage or remarriage.
Notwithstanding any other provision of this Article, the survivor's
annuity (but not any child's annuity) payable under this Article on behalf
of a deceased person with only partial credit for survivor's annuity shall
be reduced by multiplying the amount of the survivor's annuity that would
have been payable if the person had full credit by a fraction, the
numerator of which is the number of months of service for which survivor's
annuity contributions have been credited in this System, and the
denominator of which is the total number of months of service in this System.
(Source: P.A. 90-766, eff. 8-14-98.)
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(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
Sec. 18-131. Financing; employer contributions.
(a) The State of Illinois shall make contributions to this System by
appropriations of the amounts which, together with the contributions of
participants, net earnings on investments, and other income, will meet the
costs of maintaining and administering this System on a 90% funded basis in
accordance with actuarial recommendations.
(b) The Board shall determine the amount of State contributions
required for each fiscal year on the basis of the actuarial tables and other
assumptions adopted by the Board and the prescribed rate of interest, using
the formula in subsection (c).
(c) For State fiscal years 2012 through 2045, the minimum contribution
to the System to be made by the State for each fiscal year shall be an amount
determined by the System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the required State
contribution shall be calculated each year as a level percentage of payroll
over the years remaining to and including fiscal year 2045 and shall be
determined under the projected unit credit actuarial cost method.
A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution. A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be
implemented: (i) as already applied in State fiscal years before | ||
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(ii) in the portion of the 5-year period beginning in | ||
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For State fiscal years 1996 through 2005, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments so that by State fiscal year 2011, the
State is contributing at the rate required under this Section.
Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2006 is $29,189,400.
Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2007 is $35,236,800.
For each of State fiscal years 2008 through 2009, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $78,832,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable. Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011 pursuant to Section 18-140 and shall be made from the proceeds of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2011, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable. Beginning in State fiscal year 2046, the minimum State contribution for
each fiscal year shall be the amount needed to maintain the total assets of
the System at 90% of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the required State
contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and
certified under Section 18-140, shall not exceed an amount equal to (i) the
amount of the required State contribution that would have been calculated under
this Section for that fiscal year if the System had not received any payments
under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus
(ii) the portion of the State's total debt service payments for that fiscal
year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined
and certified by the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General
Obligation Bond Act, so that, by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.
(d) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows: As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date. In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year. (e) For purposes of determining the required State contribution to the system for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the system's actuarially assumed rate of return. (Source: P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/18-132) (from Ch. 108 1/2, par. 18-132)
Sec. 18-132.
Obligations of State.
The payment of (1) the required State contributions, (2) all benefits
granted under this system and (3) all expenses in connection with the
administration and operation thereof are the obligations of the State to
the extent specified in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
Sec. 18-133. Financing; employee contributions.
(a) Effective July 1, 1967, each participant is required to contribute
7 1/2% of each payment of salary toward the retirement annuity. Such
contributions shall continue during the entire time the participant is in
service, with the following exceptions:
(1) Contributions for the retirement annuity are not | ||
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(2) A participant who continues to serve as a judge | ||
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(3) A participant who (i) has attained age 60, (ii) | ||
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(b) Beginning July 1, 1969, each participant is required to contribute
1% of each payment of salary towards the automatic increase in annuity
provided in Section 18-125.1. However, such contributions need not be made
by any participant who has elected prior to September 15, 1969, not to be
subject to the automatic increase in annuity provisions.
(c) Effective July 13, 1953, each married participant subject to the
survivor's annuity provisions is required to contribute 2 1/2% of each
payment of salary, whether or not he or she is required to make any other
contributions under this Section. Such contributions shall be made
concurrently with the contributions made for annuity purposes.
(d) Notwithstanding any other provision of this Article, the required contributions for a participant who first becomes a participant on or after January 1, 2011 shall not exceed the contributions that would be due under this Article if that participant's highest salary for annuity purposes were $106,800, plus any increase in that amount under Section 18-125. (Source: P.A. 96-1490, eff. 1-1-11.)
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(40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
Sec. 18-133.1.
Pickup of contributions.
(a) Each employer may pick up the participant contributions required
under Section 18-133 for all salary earned after December 31, 1981. If an
employer decides not to pick up the contributions, the employee contributions
shall continue to be deducted from salary. If contributions are picked up they
shall be treated as employer contributions in determining tax treatment under
the United States Internal Revenue Code. However, the employer shall continue
to withhold Federal and State income taxes based upon these contributions until
the Internal Revenue Service or the Federal courts rule that pursuant to
Section 414(h) of the United States Internal Revenue Code, these contributions
shall not be included as gross income of the participant until such time as
they are distributed or made available. The employer shall pay these
participant contributions from the same source of funds which is used in paying
earnings to the participant. The employer may pick up these contributions by a
reduction in the cash salary of the participant or by an offset against a
future salary increase or by a combination of a reduction in salary and offset
against a future salary increase. If participant contributions are picked up
they shall be treated for all purposes of this Article as participant
contributions were considered prior to the time they were picked up.
(b) Subject to the requirements of federal law, a participant may elect to
have the employer pick up optional contributions that the participant has
elected to pay to the System, and the contributions so picked up shall be
treated as employer contributions for the purposes of determining federal tax
treatment. The employer shall pick up the contributions by a reduction in the
cash salary of the participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The election to have
optional contributions picked up is irrevocable and the
optional contributions may not thereafter be prepaid, by direct payment or
otherwise. If the provision authorizing the optional contribution requires
payment by a stated date (rather than the date of withdrawal or retirement),
that requirement shall be deemed to have been satisfied if (i) on or before the
stated date the participant executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the picked-up
contributions are in fact paid to the System as provided in the election.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
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(40 ILCS 5/18-135) (from Ch. 108 1/2, par. 18-135)
Sec. 18-135.
Board created.
This system shall be administered by a Board of Trustees, of
5 members as follows: the State Treasurer, the Chief Justice
of the Supreme
Court, and 3 participating judges. The State Treasurer and the Chief
Justice shall be ex-officio members and shall serve as trustees during
their respective terms of office. Each participating judge
trustee shall serve for a term of 3 years. Their successors shall
be appointed by the Supreme Court not more than 3 months nor
less than one month prior to the expiration of their respective terms of office.
Each trustee shall take an oath of office. The filing of a certified
copy of the oath with
the secretary of the board shall qualify the person as a trustee. The
oath shall state that the person will diligently and
honestly administer the affairs of the retirement system, and will not
knowingly violate or wilfully permit any of the provisions
of this Article to be violated.
A participant trustee shall be disqualified as a trustee immediately
upon termination
of employment as a judge. The vacancy so created shall be filled
for the unexpired term
by the Supreme Court.
Each trustee shall have one vote on all actions of the board and at
least 3 concurring votes shall be necessary for any action by the board at
any meeting. No decision or action shall become effective unless presented
and so approved by the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-136) (from Ch. 108 1/2, par. 18-136)
Sec. 18-136.
Powers and duties of board.
The board has the powers and duties
stated in Sections 18-137 through 18-150, in addition to the other powers and
duties granted it in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-137) (from Ch. 108 1/2, par. 18-137)
Sec. 18-137.
To hold meetings.
To hold regular meetings at least quarterly in each year and special
meetings at such times as it deems necessary. At least 10 days' notice of
each meeting shall be given to each trustee. All meetings shall be open to
the public and shall be held in the office of the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-138) (from Ch. 108 1/2, par. 18-138)
Sec. 18-138.
To consider applications.
To consider and pass on all applications for annuities and refunds,
authorize the granting thereof and suspend any payment or payments, all in
accordance with this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-139) (from Ch. 108 1/2, par. 18-139)
Sec. 18-139.
To certify interest rate and adopt actuarial tables.
To certify the prescribed interest rate, and adopt the necessary
actuarial tables in accordance with certifications of the actuary.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140) Sec. 18-140. To certify required State contributions and submit vouchers. (a) The Board shall certify to the Governor, on or before November 15 of each year until November 15, 2011, the amount of the required State contribution to the System for the following fiscal year and shall specifically identify the System's projected State normal cost for that fiscal year. The certification shall include a copy of the actuarial recommendations upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year. On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. On or before January 15, 2013 and every January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year. The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking into account the amounts appropriated to and received by the System under subsection (d) of Section 7.2 of the General Obligation Bond Act. On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly. On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date. By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution. (b) Unless otherwise directed by the Comptroller under subsection (b-1), the Board shall submit vouchers for payment of State contributions to the System for the applicable month on the 15th day of each month, or as soon thereafter as may be practicable. The amount vouchered for a monthly payment shall total one-twelfth of the required annual State contribution certified under subsection (a). (b-1) Beginning in State fiscal year 2025, if the Comptroller requests that the Board submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then the Board shall submit those additional vouchers as directed by the Comptroller, notwithstanding subsection (b). Unless an act of appropriations provides otherwise, nothing in this Section authorizes the Board to submit, in a State fiscal year, vouchers for the payment of State contributions to the System in an amount that exceeds the rate of payroll that is certified by the System under this Section for that State fiscal year. (b-2) The vouchers described in subsections (b) and (b-1) shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year. If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this Section, the difference shall be paid from the General Revenue Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act.(Source: P.A. 103-588, eff. 6-5-24.) |
(40 ILCS 5/18-142) (from Ch. 108 1/2, par. 18-142)
Sec. 18-142.
To request information.
To request such information from any participating judge or from any
officer, department head or other persons in authority, of any employer as
is necessary for the proper operation of the system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-143) (from Ch. 108 1/2, par. 18-143)
Sec. 18-143.
To provide examinations.
To provide for the examination of persons receiving disability annuities
prior to age 60, by one or more licensed and practicing physicians
designated by the board at least once each year during the continuance of
disability.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-144) (from Ch. 108 1/2, par. 18-144)
Sec. 18-144.
To establish office.
To establish an office or offices with suitable space for the board
meetings and for the necessary administrative personnel. All books and
records shall be kept in such offices.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-145) (from Ch. 108 1/2, par. 18-145)
Sec. 18-145.
To employ staff.
To appoint a secretary and employ such actuarial, medical, legal,
clerical or other help as is required for the efficient administration of
the system, and determine their rates of pay.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-146) (from Ch. 108 1/2, par. 18-146)
Sec. 18-146.
To keep records.
To keep a permanent record of all proceedings of the board, a separate
account for each individual judge and such additional data as is specified
by the actuary as necessary for required calculations and valuations.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-147) (from Ch. 108 1/2, par. 18-147)
Sec. 18-147.
To have accounts audited and to submit statements.
To have the accounts of the system audited at least biennially by a
certified public accountant designated by the Auditor General, and to
submit an annual statement to the Governor as soon as possible after the
end of each fiscal year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-148) (from Ch. 108 1/2, par. 18-148)
Sec. 18-148.
To accept gifts.
To accept any gift, grant or bequest of any money or securities for the
purpose designated by the grantor, if such purpose is specified as
providing cash benefits for some or all of the participants or annuitants
of the system, or if no such purpose is designated, for the purpose of
reducing the costs of the State for providing benefits.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-149) (from Ch. 108 1/2, par. 18-149)
Sec. 18-149.
To submit individual statements.
To submit an individual statement to a participating judge upon his or
her request, showing the accumulations to his or her credit as of the latest
practicable date.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-150) (from Ch. 108 1/2, par. 18-150)
Sec. 18-150.
To make rules.
To establish rules and regulations consistent
with this Article and deemed necessary for the
administration of the system, and to generally carry on any other reasonable
activities to accomplish the intent
of this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-151) (from Ch. 108 1/2, par. 18-151)
Sec. 18-151.
Duties of secretary.
The secretary shall be in charge of the administration of the
detailed affairs of the system and, in addition to such other powers and
duties delegated by the board, shall:
(1) collect and record the receipt of all payments to the system,
including participants' contributions, State contributions, interest and
principal collections on investments as the same become due and payable,
and other income accruing to the system, and immediately deposit them
with the State Treasurer for its account;
(2) sign vouchers requesting the State Comptroller to draw warrants
upon the State Treasurer in accordance with resolutions of the Board
authorizing payments of benefits, refunds and expenses from the funds of
the system.
(3) certify to each employer the names of the persons from
whose salary deductions
are to be made and the amounts or rates of such deductions.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-152) (from Ch. 108 1/2, par. 18-152)
Sec. 18-152. Duties of actuary. The actuary shall be the technical advisor of the Board and, in addition
to supplying general information on technical matters, shall:
(1) make a general investigation at least once every | ||
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(2) make an annual valuation of the liabilities and | ||
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(Source: P.A. 99-232, eff. 8-3-15.)
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(40 ILCS 5/18-153) (from Ch. 108 1/2, par. 18-153)
Sec. 18-153.
Duties of Treasurer.
The Treasurer of the State of Illinois shall be ex-officio the
Treasurer of the System and shall:
(1) act as official custodian of the cash and securities of the
system, provide adequate safe deposit facilities for the preservation of
such securities, and hold such cash and securities subject to the order
of the board;
(2) receive from the secretary all items of cash belonging to the
system, as the same are transmitted by the secretary, including participants'
contributions, State contributions, interest and principal
on investments and other income accruing to the system, deposit all such
amounts in a special trust fund for the account of this system, and
notify the board of all such transactions at least once each month;
(3) make payments for purposes specified in this Article upon
warrants or direct deposit transmittals of the State Comptroller issued
in accordance with vouchers signed by the secretary pursuant to resolutions of the board;
(4) furnish a corporate surety bond acceptable to the board of such
amount as the board designates. The bond shall indemnify the board
against any loss which may result from any action or failure to act on
the part of the Treasurer or any of his or her agents. All reasonable charges
incidental to the procuring of the bond shall be paid by the board.
Any cash accruing to the special trust fund representing the system not
required for current expenditures shall be transferred to the
Illinois State Board of Investment for purposes of investment.
Until such transfer is made, those funds shall be invested temporarily by
the Treasurer on behalf of the system and interest earned thereon shall be
credited to the trust fund of the system.
(Source: P.A. 86-273.)
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(40 ILCS 5/18-154) (from Ch. 108 1/2, par. 18-154)
Sec. 18-154.
Duties of State Comptroller.
The State Comptroller in drawing warrants for salary on payroll
vouchers certified by an employer shall draw such warrants for the salary
specified, less the employee contribution
to be deducted therefrom as certified in the payroll vouchers, and shall
draw a warrant to this system for the total of the
employee contributions so withheld. The warrant drawn to the system, together
with the additional copy of the payroll supplied by the employer, shall
be transmitted immediately to the secretary of the board.
The Comptroller shall draw warrants or prepare direct deposit transmittals
upon the State Treasurer payable
from the funds of this system for purposes provided in this Article
upon the presentation of vouchers approved by the secretary in
accordance with the resolutions of the board, and
in the exercise of the investment authority, upon presentation of
vouchers approved by the director of the Illinois State Board of
Investment in accordance with the order and direction of said board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-155) (from Ch. 108 1/2, par. 18-155)
Sec. 18-155.
Duties of employers.
Each employer, in preparing payroll vouchers shall indicate, in addition
to other things: (1) the amount of contributions specified to be deducted
from the salary or wages of each participant included in the
voucher; (2) the net amount payable to each participant after
the deduction of such contribution; and (3) the total of all
participant contributions so deducted. An additional certified
copy of each payroll
voucher certified by the State shall be prepared and forwarded together
with the original payroll voucher to the State Comptroller for
transmittal to the board.
Each employer other than the State, in drawing warrants for items of
salary payable to participants, shall draw such warrants for the
salary specified less the participant contribution to be
deducted therefrom as
certified in the payroll vouchers and shall draw a warrant to this
system for the total of the participant contributions so
withheld. The warrant drawn to the system, together with the
additional copy of the payroll supplied by the employer, shall be
transmitted immediately to the secretary of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-156) (from Ch. 108 1/2, par. 18-156)
Sec. 18-156.
Effect of participation.
Each participating judge, by virtue
of the payment of the employee contributions required to be paid to this
system, has a vested interest in the refunds provided
under this Article and, in consideration of that interest, authorizes
the deductions from salary
of all contributions payable to this system under this Article.
Payment of salary as prescribed by law or as contracted by an
employer, less the amounts of contributions provided in this Article,
shall, together with such special vested rights in the refunds, be a
full and complete discharge of all claims of
payments for service rendered by a judge during the period covered by any such payment.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-157) (from Ch. 108 1/2, par. 18-157)
Sec. 18-157.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
is adopted and made a part of
this Article; provided that Section 20-131 shall not apply to this system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-158) (from Ch. 108 1/2, par. 18-158)
Sec. 18-158.
No compensation.
Trustees shall serve without compensation, but shall be reimbursed for
any reasonable traveling expenses incurred in attending meetings of the
board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-159) (from Ch. 108 1/2, par. 18-159)
Sec. 18-159.
No gain or profit on investments.
No trustee or employee of the board shall have any direct interest in
the income, gains or profits of any investments made in behalf of the
system nor receive any pay or emolument
for services in connection with any
investment. No such trustee or employee shall become an endorser or surety,
or in any manner an obligor for money loaned or borrowed from the system.
Whoever violates any of the provisions of this Section is guilty of a petty
offense.
(Source: P.A. 83-1440.)
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(40 ILCS 5/18-160) (from Ch. 108 1/2, par. 18-160)
Sec. 18-160.
Undivided interests.
The assets of the system shall be invested as one fund, and no person,
group of persons, or entity shall have any right in any specific security
or property, or in any item of cash, other than an undivided interest in
the whole.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-161) (from Ch. 108 1/2, par. 18-161)
Sec. 18-161.
Annuities, etc.
- exempt.
Except as provided in this Article, all moneys in the fund created by
this Article, and all securities and other property of the System, and
all annuities and other benefits payable under this Article, and all
accumulated contributions and other credits of participants in this
System, and the right of any person to receive an annuity or other benefit
under this Article, or a refund or return of contributions, shall not be
subject to judgment, execution, garnishment, attachment, or other seizure
by process, in bankruptcy or otherwise, nor to sale, pledge, mortgage or
other alienation, and shall not be assignable. A person receiving an
annuity or benefit, or refund or return of contributions, may authorize
withholding from such annuity, benefit, refund or return of contributions
in accordance with the provisions of the "State Salary and Annuity
Withholding Act", approved August 21, 1961, as now or hereafter amended.
The General Assembly finds and declares that the amendment to this
Section made by this amendatory Act of 1989 is a clarification of existing
law, and an indication of its previous intent in enacting and amending this
Section. Notwithstanding Section 1-103.1, application of this amendment
shall not be limited to persons in service on or after the effective date
of this amendatory Act of 1989.
(Source: P.A. 86-273.)
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(40 ILCS 5/18-162) (from Ch. 108 1/2, par. 18-162)
Sec. 18-162.
Fraud.
Any person who knowingly makes any false statement, or falsifies or
permits to be falsified any record of this system, in any attempt to
defraud the system, is guilty of a Class A misdemeanor.
(Source: P.A. 77-2830.)
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(40 ILCS 5/18-162.1) Sec. 18-162.1. Mistake in benefit. If the System mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid. If the benefit was mistakenly set too high, the System may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if (1) the amount of the benefit was mistakenly set too high, and (2) the error was undiscovered for 3 years or longer, and (3) the error was not the result of incorrect information supplied by the affected member or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the System the excess amounts received in error. This Section applies to all mistakes in benefit calculations that occur before, on, or after the effective date of this amendatory Act of the 98th General Assembly.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/18-163) (from Ch. 108 1/2, par. 18-163)
Sec. 18-163. Felony conviction. None of the benefits herein provided shall be paid to any person who is
convicted of any felony relating to or arising out of or in connection with
his or her service as a judge.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the judge from whom the benefit results. This Section shall not operate to impair any contract or vested right acquired
before July 9, 1955 under any law or laws continued
in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All participants entering service subsequent to
July 9, 1955 are deemed to have consented to the provisions
of this Section as a condition
of participation, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/18-164) (from Ch. 108 1/2, par. 18-164)
Sec. 18-164.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the board provided for
under this Article. The term "administrative decision" is defined as in
Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(40 ILCS 5/18-165) (from Ch. 108 1/2, par. 18-165)
Sec. 18-165.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/18-168) (from Ch. 108 1/2, par. 18-168)
Sec. 18-168.
Savings clause.
The repeal or amendment of any Section
or provision of this Article by Public Act 83-1440 shall not affect or impair
any pensions, benefits, rights or credits accrued or in effect prior thereto.
(Source: P.A. 87-1265.)
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(40 ILCS 5/18-169)
Sec. 18-169. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after the effective date of this amendatory Act of the 94th General Assembly. (b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law. (e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including without limitation a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/18-170) Sec. 18-170. Termination of plan. Upon plan termination, a participant's interest in the pension fund will be nonforfeitable.
(Source: P.A. 98-1117, eff. 8-26-14.) |
(40 ILCS 5/Art. 19 heading) ARTICLE 19.
CLOSED FUNDS
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(40 ILCS 5/Art. 19 Div. 1 heading) DIVISION 1.
HOUSE OF CORRECTION
EMPLOYEES' PENSION FUND
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(40 ILCS 5/19-101) (from Ch. 108 1/2, par. 19-101)
Sec. 19-101.
House of correction employees' pension fund created-"Salary"
defined.
The board of inspectors of the various houses of correction, organized
under "An Act to authorize cities to establish houses of correction and
farm colonies within the corporate limits and outside of the corporate
limits within the same county and authorize the confinement of convicted
persons therein", approved April 25, 1871 and maintained thereunder in
cities having a population exceeding 150,000 inhabitants, shall have power,
and it shall be its duty to create a house of correction employees' pension
fund which shall consist of 6% of the salary or wages of the employee,
together with an additional 2% of the salary or wages of male employees,
deducted in equal monthly installments from such salaries or wages at the
regular time or times of the payment thereof, and the net earnings of the
commissary maintained and operated in the house of correction, together
with the proceeds of the tax levy hereinafter provided. The number and
compensation of all employees in such commissary and the use and
disposition of all the funds thereof shall be approved by the board of
trustees of such pension fund.
The word "salary" as used in this section shall mean actual salary but
not to exceed the amount equal to actual salary paid to a Class A guard, as
classified by the Civil Service Commission in Grade 3.
(Source: Laws 1965, p. 935.)
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(40 ILCS 5/19-102) (from Ch. 108 1/2, par. 19-102)
Sec. 19-102.
The 1911 Act.
For the purposes of this Division the term "The 1911 Act" means "An Act
to provide for the setting apart, formation and disbursement of a house of
correction employees pension fund in cities having a population exceeding
150,000 inhabitants", approved June 10, 1911, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-103) (from Ch. 108 1/2, par. 19-103)
Sec. 19-103.
Ineligibility for benefits.
Notwithstanding any other provision of this Division, none of the
benefits herein provided for shall be paid to any person who is convicted
of any felony relating to or arising out of or in connection with his
service as an employee.
This section shall not operate to impair any contract or vested right
acquired prior to July 11, 1955, under "The 1911 Act" nor to preclude the
right to a refund.
All future entrants shall be deemed to have consented to the provisions
of this section as a condition of coverage.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-104) (from Ch. 108 1/2, par. 19-104)
Sec. 19-104.
Tax levy - disposition of revenue collected - tax
anticipation warrants.
It shall be lawful for any such city to levy a tax upon all taxable
property in such city of not more than .0009 per cent of the value, as
equalized or assessed by the Department of Revenue, of
all taxable property in such city, for the purpose of providing revenue
for the pension fund herein provided for.
For such purpose, the city council of such city shall levy such a tax
annually upon all taxable property in such city at the aforementioned
rate. The tax shall be levied and collected in like manner with the
general taxes of such city, beginning with the first such levy made
subsequent to January 1, 1946, and shall be in addition to all other
taxes which such city is now or may hereafter be authorized to levy on
the aggregate valuation of all taxable property within such city, and
shall be exclusive of and in addition to the amount of tax such city is
now or may hereafter be authorized to levy for general purposes under
and by virtue of any law or laws which limit the amount of tax which
such city may levy for general purposes. The County Clerk of the county
in which such city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of taxes, shall
not consider any such tax levied pursuant to this Division as part of
the general tax levy for city purposes, and shall not include the same
in any limitation of the per cent of the assessed valuation upon which
taxes are required to be extended.
The amount of the tax to be levied in each year shall be certified to
the city council of such city by the board of trustees of said pension
fund.
As soon as any revenue derived from the tax shall be collected, the
same shall be paid to the city treasurer of such city and shall be held
by such city treasurer for the benefit of the pension fund herein
provided for, and all such revenue shall be paid into the pension fund.
If the funds available for the purposes of this Division shall be
insufficient during any year to meet the requirements of this Division,
such city may issue tax anticipation warrants, as provided by law
against the tax levy herein provided for, for the current fiscal year.
(Source: P.A. 81-1509.)
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(40 ILCS 5/19-105) (from Ch. 108 1/2, par. 19-105)
Sec. 19-105.
Term "employee" defined-withdrawal-refund-death.
The term "employee" under this Division, shall include all persons in
the employ of any such house of correction under and by virtue of an Act
entitled "An Act to regulate civil service of cities", approved and in
force March 20, 1895 and for those who were appointed prior to the
passage of such Act and who were in the service of such house of correction
July 1, 1911.
The term "employee" shall also include any person in the employ of such
house of correction who passed the civil service examination, but such
person shall not be eligible to any benefits under this Division until 2
years from the date of becoming a contributor; provided, however, that the
provisions of this Division shall not apply to temporary or probationary
employees, nor to those defined as "60-day employees", nor to any employee
who was 50 or more years of age at the time "The 1911 Act" came in force
and effect and who at said time had not been in the service of such house
of correction for at least 10 years; nor to any employee who shall enter
the service of such house of correction after January 1, 1954; and,
provided, further, that this Division shall apply only to those employees
who voluntarily accept and agree to comply with its provisions.
Any employee on sick leave or leave of absence from such house of
correction who has contributed to said pension fund, will be considered a
member of said pension fund, and will be entitled to all benefits and
annuities under this Division, while he or she remains on said sick leave
or leave of absence from said house of correction: Provided, the said
employee does not take employment other than at such house of correction
while on sick leave or leave of absence from such house of correction, and
if said employee goes to work at employment other than at such house of
correction while on said sick leave or leave of absence, from such house of
correction, he or she will not be considered an employee of such house of
correction, and will not be entitled to any benefits under this Division:
And, provided, further, that any woman employee contributing to said
pension fund, who marries and then takes a leave of absence for reasons
other than sickness of self, will not be entitled to any benefits or
annuities under this Division, while on such leave of absence, unless she
is employed at least 3 months of each year at such house of correction.
Any employee, a part of whose salary may be set apart hereafter to
provide for such fund, shall be released from the necessity of making
further payments to said fund by filing a written notice of his or her
desire to withdraw from complying with the provisions of this Division,
with the board of trustees hereinafter mentioned, which resignation shall
operate and go into effect immediately upon its receipt by said board of
trustees.
Any employee who has contributed to the said fund who shall be dismissed
or resigned from the service of said house of correction, may, upon
application made, receive the total amount paid into said fund by such
person so dismissed or resigned. If an employee dies after having
contributed to said fund his nearest heir or heirs according to the law of
descent in Illinois may, upon application made after said employee's death,
receive the total amount paid into said fund by each deceased employee less
the amount or amounts paid to him and/or his widow or children in the form
of annuity.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-106) (from Ch. 108 1/2, par. 19-106)
Sec. 19-106.
Custodian of fund-duty-bond-where filed.
The city treasurer, subject to the control and direction of the board of
trustees hereinafter mentioned, shall be the custodian of said pension fund
and shall secure and safely keep same and shall keep books and accounts
concerning said funds in such manner as may be prescribed by said board of
trustees, which said books and accounts shall always be subject to the
inspection of said board of trustees, or any member thereof.
The city treasurer shall within 10 days after his election or
appointment, execute a bond to the city, with good and sufficient
securities, in such penal sum as the said board of trustees shall direct,
and shall be conditioned for the faithful performance of the duties of said
office, and that he will safely keep and well and truly account for all
moneys belonging to said pension fund, and all interest thereon, which may
come into his hands, as such treasurer, and on the expiration of his term
of office, or upon his retirement therefrom for any cause, he will
surrender and deliver over to his successor all unexpended moneys, with
such interest as he may have received thereon, and all property which may
come into his hands as treasurer of said pension fund.
Such bond shall be filed in the office of the city clerk of said city
for the use of said board of trustees, or any person or persons injured by
such breach.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-107) (from Ch. 108 1/2, par. 19-107)
Sec. 19-107.
Board of trustees-powers-custodian of funds.
The board of inspectors of any such house of correction shall, in the
month of September immediately following the date of "The 1911 Act" going
into effect, arrange for the election of a board of trustees of said
pension fund composed of 7 members to be chosen as hereinafter provided,
which election shall be held not later than 2 months after "The 1911 Act"
goes into effect. The same board of trustees shall have power, and it shall
be its duty to administer said fund and to carry out the provisions of this
Division for the purpose of enabling such board of trustees to perform the
duties imposed and exercise the powers created by this Division. The board
of trustees shall be and is hereby created a body politic and corporate,
and said board of trustees may invest the accumulation of said funds in the
government, State, county or municipal bonds, and the city treasurer shall
be the custodian of said securities.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-108) (from Ch. 108 1/2, par. 19-108)
Sec. 19-108.
Board, how composed-Term.
The said board of trustees shall consist of the chairman of the board of
inspectors and the superintendent of the house of correction, four
employees contributing to the fund and one member from the beneficiaries.
The chairman of said board of inspectors and the superintendent of the
house of correction shall be ex-officio members of such board of trustees,
and the 5 other members of such board of trustees shall be elected by
ballot, the members of the contributors to be elected by the employees
contributing to said fund at the time and for the terms respectively as
follows:
At the first election the contributors to the said fund shall elect 1 of
their number to serve for the term of 4 years, 1 for a term of 3 years, 1
for a term of 2 years and 1 of their number for the term of 1 year, and
annually thereafter said contributors shall elect 1 of their number to hold
office for the term of 4 years. Provided, that in such cities prior to July
1, 1937, the contributors shall, at the expiration of the term of office in
1937 of the member elected by them, elect 3 members for terms of 2, 3 and 4
years respectively, and annually thereafter, as the term of a member
expires, a successor shall be elected for a term of 4 years. At each
election the beneficiaries shall elect 1 of their number to serve as a
member of such board of trustees for a term of 1 year. And in case the
beneficiary or beneficiaries be a child or children the guardian of such
child or children may cast the votes to which such child or children may be
entitled.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-109) (from Ch. 108 1/2, par. 19-109)
Sec. 19-109.
Membership on board ceases, when - Vacancies - Powers and
duties - Amount of annuities.
Whenever any elective member of the board of trustees shall cease to be
in the employ of or to be a member of the board of inspectors of the house
of correction, or a beneficiary of the house of correction employees' fund,
his or her membership in the board of trustees shall cease. All vacancies
in the board of trustees shall be filled by a ballot as aforesaid.
The board of trustees shall have power and it shall be its duty:
1. To make all payments from the pension fund pursuant to the provisions
of this Division.
2. To administer and invest, to purchase, hold, sell or assign and
transfer any part of the pension fund remaining in the hands of the
treasurer or any of the securities in which the fund, or any part thereof,
may be invested.
3. To pay all necessary expenses in connection with the administration
of the fund and in carrying out the provisions of this Division for which
provisions are not otherwise made.
4. To take by gift, grant or bequest, or otherwise, any money or
property of any kind and hold the same for the benefit of the fund.
5. To make and establish all such rules for the transactions of its
business and such other rules, regulations and bylaws as may be necessary
for the proper administration of the fund committed to its charge, and the
performance of the duties imposed upon it.
6. To see that there is no restitution of deductions from salaries after
the contributor has become eligible to an annuity under this Division.
7. It shall keep full and complete records of its meetings and of the
receipts and disbursements on account of such fund, and also a complete
list of all contributors to the fund, and of all annuitants receiving
benefits therefrom, and such other records as in its judgment shall seem
necessary and shall make and publish annually a full and complete statement
of its financial transactions.
8. The board shall hear and determine all applications for benefits
given under this Division, on account of disability and shall have power to
suspend any annuity given on account of disability whenever in its judgment
the disability of the beneficiary has ceased, or for any other good cause.
9. Any contributor to the fund who is at least 55 years of age and who
has been in the service of the house of correction for a period of 25
years, and has contributed to the fund for the same period, shall have the
right to retire and become a beneficiary under this Division as follows:
Any such contributor who retires and becomes a beneficiary of this fund
after July 1, 1951, shall receive a benefit or annuity of 40% of salary per
annum; provided, if such contributor remains in the service until he serves
30 years or attains an age of 60 years, he shall receive a benefit or
annuity of 45% of salary; and provided further if such contributor remains
in the service until he serves 35 years or attains an age of 65 years, the
amount of such benefit shall be 50% of salary, as defined in this Division.
The annuities are to be paid in equal monthly installments, and in case of
insufficient funds in the treasury, the treasurer shall be empowered to pay
to the beneficiaries a pro rata amount of the sum in the treasury, such pro
rata amount to be divided equally among the beneficiaries entitled to the
same.
Any contributor to the fund who has been in the service of the house of
correction for a period of more than 10 years but less than 25 years and
has contributed to the fund during his entire period of service shall have
a right to receive from this fund after the attainment of age 55 years an
annuity of an amount equal to 1/15 of the amount he would have received had
he remained a contributor to this fund until he had been in the service for
25 years, for each year of service over 10 years; provided, however, that
service for a period of 8 months in any 1 calendar year shall be considered
as a year of service for that year.
Any male contributor to this fund who retires on annuity and at that
time is single and does not have a child or children under the age of 18
years, shall be entitled to receive a refund of the additional 2% which he
has contributed to this fund from and after the effective date of this
Amendatory Act.
(Source: Laws 1965, p. 937.)
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(40 ILCS 5/19-110) (from Ch. 108 1/2, par. 19-110)
Sec. 19-110.
Annuity payments.
Upon the death of any contributor or any beneficiary who before becoming
a beneficiary contributed to said fund for at least 2 years the said board
of trustees shall pay, as hereinafter provided, an annuity not to exceed
$75.00 per month to the widow as long as she remains unmarried: Provided if
at the time of his death such contributor shall have been in the service of
the house of correction for a period of 15 or more years, the board of
trustees shall pay as hereinafter provided an annuity of $125.00 a month to
such widow as long as she remains unmarried; provided she was the wife of
such contributor or beneficiary during the period of time he was an
employee of the house of correction and a contributor to this fund and had
been his wife 2 years before his death, and if there is no widow eligible
to receive such benefits, said board of trustees shall pay such annuity to
the child or children of such deceased contributor or beneficiary, until
such time as the youngest child shall reach the age 18 years. If there be
no widow or child or children eligible, and there is a dependent parent or
parents of the deceased contributor or beneficiary, such dependent parent
or parents may be paid the sum of $25.00 per month upon their furnishing
proof satisfactory to the board of trustees of their dependency upon the
deceased contributor;
Provided, further, that upon the death of any contributor or beneficiary
no annuity shall be paid to the widow, child or children or dependent
parent or parents unless such contributor or beneficiary shall have been in
the service of the house of correction for a period of at least 2 years,
and shall have contributed to said fund for the same period: 50% of the
maximum annuity shall be paid as hereinabove provided if the death of such
contributor or beneficiary occurs before the deceased contributor or
beneficiary shall have served 10 years as an employee of the house of
correction; and the maximum annuity shall be paid, as hereinabove provided,
if the death of such contributor or beneficiary occurs within or after the
11th year next after such contributor or beneficiary became an employee.
(Source: Laws 1965, p. 937.)
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(40 ILCS 5/19-111) (from Ch. 108 1/2, par. 19-111)
Sec. 19-111.
Retirement after ten years-Notice to board.
Any person who is at least 55 years of age and who has been an employee
of said house of correction for a period of 10 years or more and has
contributed to said fund for a period of not less than the full term of
service, or shall pay into the fund the amount of money such person would
have paid had contributions been made by him at the prevailing rate from
the first day of his employment, together with interest at 4% on each such
contribution from the time it should have been paid until it was paid, may
retire from the service of said house of correction upon 60 days notice, to
be given to said board of trustees (unless such notice is waived by said
board of trustees) and become an annuitant under this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-112) (from Ch. 108 1/2, par. 19-112)
Sec. 19-112.
Temporary employees-Certification and appointment to permanent
position.
Any person who is certified and appointed to a position as an employee
of the house of correction, as employee is defined in this Division, who
has served as an employee of the house of correction by virtue of temporary
appointment prior to such certification and appointment, shall have the
right to have credited to such employee for pension and widow's pension
purposes the period of time such employee served in such position by virtue
of temporary appointment, upon such employee paying into the house of
correction employees' pension fund such amount of money as he would have
paid into such pension fund had he been a member of such pension fund
during such period of temporary employment, together with interest at the
rate of 4% per annum upon each such payment from the time such payment
would have been made had he been a participant in the fund, until such
payment is made; provided, however, such right to receive credit must be
exercised by such employee on or before July 1, 1952, or within 3 years
after the date of his appointment and certification, whichever is the later
date.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-113) (from Ch. 108 1/2, par. 19-113)
Sec. 19-113.
Retirement account of disability.
Any person who has contributed to said fund for a period of 3 years or
more may retire from the service of said house of correction on account of
serious disability rendering him or her unable to properly discharge his or
her duties. If such disability is incurred as the result of the performance
of any act or acts of duty, such disabled person shall be entitled to
receive an amount equal to 75% of salary as salary is defined in Section
19-101 of this Division, until such person shall recover from such
disability or shall attain an age of 65 years, at which time he shall
retire from the service and be entitled to receive a pension as provided
for in Section 19-109 of this Division. If such disability shall not be
the result of the performance of an act or acts of duty, and is not due to
alcoholism or pregnancy, such person shall be entitled to receive ordinary
disability pension in the amount of 44% of said contributor's salary per
month for a period of time equal to 1/2 of his period of service, but not
to exceed 5 years.
Neither duty disability pension nor ordinary disability pension shall be
paid to any contributor to this fund after such contributor has attained
the age of 65 years; provided, however, that any person in receipt of
ordinary disability pension or duty disability pension from this fund, if
he shall still be disabled upon attainment of age 65 and shall have a
period of service of 10 years or more (which period of service shall
consist of actual service plus the period of time such person received
disability pension,) shall be retired upon the annuity provided for in
Section 19-109 of this Division.
In the event any person receiving ordinary disability pension shall
continue to be disabled after the expiration of the period of time for
which he shall be entitled to receive disability pension, and before the
attainment by such person of the age of 55 years, such person shall be
entitled to retire upon the annuity provided for in Section 19-109 of this
Division as though such disabled person had attained 55 years of age;
provided, if such annuity shall be less than $300 per year, the employee
concerned may, at his option, in lieu of such annuity, withdraw the
contributions he shall have made to the fund together with the interest
thereon. Such disabled person must be found to be disabled and unable to
discharge the duties of his position upon an examination made by a
physician appointed by the board of trustees. During the period any person
is in receipt of ordinary disability pension, such person shall continue to
make the contributions provided under Section 19-101 of this Division.
When such disabled person shall have recovered from such disability he or
she shall be removed from the disability roll and shall be restored to his
or her position in the service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-114) (from Ch. 108 1/2, par. 19-114)
Sec. 19-114.
Certificate of disability.
No contributor shall receive any benefit from said fund on account of
disability unless there be filed with the board of trustees of the fund a
certificate of his disability which certificate shall be subscribed and
sworn to by the house of correction physician (if there be one) and one
practicing physician of the city where such house of correction is located.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-115) (from Ch. 108 1/2, par. 19-115)
Sec. 19-115. Marriage of beneficiary.
When any contributor to said fund, who has been in the service of the
house of correction for a period of 20 years, has contributed to said fund
for the same period and has retired and become a beneficiary under "The
1911 Act" or this Division, shall then marry, such wife of such marriage
shall after his death receive no benefit nor annuity from said fund.
Any widow or child or children receiving benefits or annuities, under
"The 1911 Act", shall continue to receive such benefits or annuities, which
shall be increased from $480 per year to not more than $720 per year and
paid in accordance with the provisions of Section 19-110 of this Division.
The term "child" or "children" under this Division shall not include
adopted child or children, nor shall it include a stepchild or stepchildren
of any contributor to aforesaid pension fund.
(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/19-116) (from Ch. 108 1/2, par. 19-116)
Sec. 19-116.
Deductions certified monthly to treasurer.
The chairman of the board of inspectors and the superintendent of the
house of correction shall certify monthly to the treasurer all amounts
deducted in accordance with the provisions of this Division from the
salaries paid by the house of correction, which amounts, as well as all
other sums contributed to said fund under the provisions of this Division,
shall be set apart and held by said treasurer for the purpose hereinbefore
specified, subject to the order of said board of trustees and shall be paid
out upon warrants signed by the president and secretary of said board of
trustees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-117) (from Ch. 108 1/2, par. 19-117)
Sec. 19-117.
Exemptions-Assignments.
All annuities granted under the provisions of this Division shall be
exempt from attachment and garnishment process and no annuitant shall have
the right to transfer or assign his or her annuity either by way of
mortgage or otherwise.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-118) (from Ch. 108 1/2, par. 19-118)
Sec. 19-118.
Interference with enforcement-Penalties-Repeal.
Any person who shall directly or indirectly avoid or seek to avoid any
or all the provisions of this Division, or shall directly or indirectly
interfere with, or obstruct the enforcement of any of the provisions of
this Division, shall be guilty of a Class B misdemeanor.
This law shall take preference over all other laws and all laws and
parts of laws which are inconsistent with this Division or any provisions
hereof are hereby repealed.
(Source: P.A. 77-2560.)
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(40 ILCS 5/19-119) (from Ch. 108 1/2, par. 19-119)
Sec. 19-119.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Division as though such provisions were fully set forth in this Division as
a part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-120) (from Ch. 108 1/2, par. 19-120)
Sec. 19-120.
House of Correction Employees' Pension Fund superseded.
Any House of Correction Employees' Pension Fund in operation on December
31, 1968, in a city having a population exceeding 150,000 inhabitants, by
virtue of and under the provisions of this Article 19, Division 1, Sec.
19-101 to 19-119, both inclusive, of the "Illinois Pension Code",
approved March 18, 1963, as amended, shall be superseded by and merged,
effective and as of January 1, 1969, into the fund in operation in such
city for municipal employees on such date under the provisions of and by
virtue of Article 8, Sec. 8-101 to 8-253, both inclusive, of the
"Illinois Pension Code", approved March 18, 1963, as amended.
On such January 1, 1969, or as soon as possible and practicable
thereafter, all monies, securities, assets, records, and other property of
such house of correction employees' pension fund shall be transferred by
the board of trustees of such fund to the custody and ownership of the
retirement board of the annuity and benefit fund, in operation in such city
under and by virtue of the provisions of the aforementioned Article 8 of
the "Illinois Pension Code", and such house of correction employees'
pension fund shall thereupon cease to exist as a separate fund.
The retirement board of the fund into which said house of correction
employees' pension fund is to be merged, shall assume all of the
liabilities of such superseded fund, and all annuities, pensions, refunds
and benefits allowed by the board of trustees of the superseded fund prior
to January 1, 1969, shall, from and after such date, be paid by the
retirement board in accordance with the law then applicable thereto, and if
allowed shall be paid from the fund superseding the house of correction
employees' pension fund.
(Source: Laws 1968, p. 179.)
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(40 ILCS 5/Art. 19 Div. 2 heading) DIVISION 2.
PUBLIC LIBRARY EMPLOYES'
PENSION FUND
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(40 ILCS 5/19-201) (from Ch. 108 1/2, par. 19-201)
Sec. 19-201.
Fund - How created.
The board of directors of public libraries organized under an Act of the
General Assembly of the State of Illinois, entitled "An Act to authorize
cities, incorporated towns and townships to establish and maintain free
public libraries and reading rooms", approved and in force March 7, 1872,
and maintained thereunder in cities having a population exceeding 500,000
inhabitants shall have power and it shall be its duty to create a public
library employes' pension fund, which shall consist of amounts retained
from the salaries or wages of employes, as hereinafter provided, which
amounts shall be deducted in equal monthly installments from such salaries
or wages at the regular time or times of the payment thereof, all fees or
penalties collected for retention of books beyond the time prescribed by
rule of the board of directors by virtue of by-laws, rules and regulations
adopted under authority of Section 5 of the Act herein referred to by its
title and such other moneys derived from miscellaneous sources as the
board of directors shall determine.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-202) (from Ch. 108 1/2, par. 19-202)
Sec. 19-202.
The 1905 Act.
For the purposes of this Division the term "The 1905 Act" means "An Act
to provide for the formation and disbursement of a public library employes'
pension fund in cities having a population exceeding 500,000 inhabitants",
approved May 12, 1905, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-203) (from Ch. 108 1/2, par. 19-203)
Sec. 19-203.
Ineligibility for benefits.
Notwithstanding any other provision of this Division, none of the
benefits herein provided for shall be paid to any person who is convicted
of any felony relating to or arising out of or in connection with his
service as an employe.
This section shall not operate to impair any contract or vested right
acquired prior to July 11, 1955, under "The 1905 Act" nor to preclude the
right to a refund.
All future entrants shall be deemed to have consented to the provisions
of this section as a condition of coverage.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-204) (from Ch. 108 1/2, par. 19-204)
Sec. 19-204.
"Employe" defined - Withdrawals regulated.
The term "employe" under this Division shall include all persons in the
employ of the public library board prior to July 8, 1955, receiving a
stipulated salary per annum; all persons in the employ of the board of
trustees of such Public Library Employes' Pension Fund, prior to July 8,
1955, receiving a stipulated salary; all persons who are contributors to
this fund and have contributed to this fund for a period of at least 1 year
and who may be transferred to any other department of the city or board of
education by reason of the fact that the functions performed by such
persons have been transferred from the jurisdiction of the library board to
that of such other department of the city or board of education; and this
Division shall apply only to those employes who voluntarily accept and
agree to comply with its provisions.
Any employe, a part of whose salary may be set apart to provide for such
fund may be released from the necessity of making further payments to said
fund by filing a written notice of his or her desire to withdraw from
complying with the provisions of this Division with the board of trustees
hereinafter mentioned, which resignation shall operate and go into effect
immediately upon its receipt by said board of trustees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-205) (from Ch. 108 1/2, par. 19-205)
Sec. 19-205.
Custodian of fund - Bond - Filing - Breach.
The city treasurer subject to the control and direction of the board of
trustees hereinafter mentioned, shall be the custodian of said pension
fund, and shall secure and safely keep the same and shall keep books and
accounts concerning said fund, in such manner as may be prescribed by the
said board of trustees, which said books and accounts shall always be
subject to the inspection of said board of trustees, or any member thereof.
The city treasurer shall, within 10 days after his election or
appointment, execute a bond to the city, with good and sufficient sureties,
in such penal sum as the said board of trustees shall direct, which said
bond shall be approved by the said board of trustees, and shall be
conditioned for the faithful performance of the duties of said office, and
that he will safely keep and well and truly account for all moneys
belonging to said pension fund, and all interest thereon, which may come
into his hands as such treasurer, and that upon the expiration of his term
of office, or upon his retirement therefrom for any cause, he will
surrender and deliver over to his successor all unexpended moneys, with
such interest as he may have received thereon, and all property which may
have come into his hands as treasurer of said pension fund. Such bonds
shall be filed in the office of the city clerk of said city, and in case of
a breach of the same, or the conditions thereof, suit may be brought on the
same in the name of the said city for the use of said board of trustees, or
any person or persons injured by such breach.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-206) (from Ch. 108 1/2, par. 19-206)
Sec. 19-206.
Trustees of fund - Powers and duties.
The board of directors of such library shall, in the month of September,
immediately following the passage of "The 1905 Act", arrange for the
election of a board of trustees of said pension fund composed of 5 members,
to be chosen as hereinafter provided, which election shall be held not
later than October 31st of the same year. Said board of trustees shall have
power, and it shall be its duty to administer said fund and to carry out
the provisions of this Division, and for the purpose of enabling such board
of trustees to perform the duties imposed and exercise the powers created
by this Division, the board of trustees shall be and is hereby declared to
be a body politic and corporate.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-207) (from Ch. 108 1/2, par. 19-207)
Sec. 19-207.
Trustees - How constituted - Election.
The said board of trustees shall consist of the president and secretary
of the board of directors of such public library, 2 employes contributing
to said fund and 1 other member of said board of directors. The president
and secretary of such board of directors shall be ex-officio members of
such board of trustees. The 3 other members of such board of trustees shall
be elected by ballot by the employes contributing to said fund at the time
and for the terms, respectively, as follows: At the first election the
contributors to said fund shall elect 1 of their number to serve for the
term of 1 year and 1 of their number to serve for the term of 2 years and
annually thereafter said contributors shall elect 1 of their number to hold
office for the term of 2 years. At each election the contributors shall
elect a member of the board of directors of such public library to serve as
a member of such board of trustees for a term of 1 year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-208) (from Ch. 108 1/2, par. 19-208)
Sec. 19-208.
Trustees - Vacancy - Powers and duties.
Whenever any elective member of the board of trustees shall cease to be
in the employ of or to be a member of said board of directors of such
public library, his or her membership in said board of trustees shall
cease.
Said board of trustees shall have power and it shall be its duty:
(1) To determine the amount which shall be deducted from the salaries or
wages paid to employees for the benefit of said pension fund: Provided, the
amount of such deduction shall not be less than the equivalent of 6% of the
salary or wages of such employe.
(2) To make all payments from said pension fund pursuant to the
provisions of this Division.
(3) To administer and invest in its discretion any part of the said
pension fund remaining in the hands of said treasurer.
(4) To pay all necessary expenses in connection with the administration
of said fund and in carrying out the provisions of this Division for which
provision is not otherwise made.
(5) To determine the amount to be paid as benefits or annuities under
this act and to increase or reduce the same in its discretion: Provided,
that the amount paid as benefit or annuity shall not be increased or
reduced after a contributor has become an annuitant.
(6) To take by gift, grant or bequest, or otherwise, any money or
property of any kind and hold the same for the benefit of said fund.
(7) To purchase, hold, sell or assign and transfer any of the securities
in which said fund or any part thereof may be invested, subject to the
approval of the board of directors of such public library.
(8) To exempt any of said employes from the operation of this Division,
whenever in its judgment the interests of said fund shall render such
exemption necessary and advisable.
(9) To fill any vacancy or vacancies in said board of trustees until the
next annual election, as hereinbefore provided.
(10) To make and establish all such rules for the transaction of its
business and such other rules, regulations and by-laws as may be necessary
for the proper administration of said fund committed to its charge, and the
performance of the duties imposed upon it.
(11) It shall keep full and complete records of its meetings and of the
receipts and disbursements on account of such fund, and also complete lists
of all contributors to said fund, and of all annuitants receiving benefits
therefrom, and such other records as in its judgment shall seem necessary,
and shall make and publish annually a full and complete statement of its
financial transactions.
(12) Said board shall hear and determine all applications for benefits
under this Division, and shall have power to suspend any annuity whenever
the annuitant becomes actively employed by another public body within the
State of Illinois; whenever, in its judgment, the disability of such
beneficiary has ceased; or for other good cause.
(13) To compromise, settle or liquidate any claim against said fund, by
surrendering the contribution or contributions of any individual or
individuals, and make the necessary rules, prescribing the terms under
which such settlements may be made, providing there shall be no rule
allowing restitution of deductions from salaries after the contributor
shall have become eligible to an annuity under this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-209) (from Ch. 108 1/2, par. 19-209)
Sec. 19-209.
Beneficiaries of fund.
Any employe who shall have attained the age of 55 years, and shall have
been an employe for a period of 10 years, and shall have contributed to
said fund for the same period, shall have the right to retire and become a
beneficiary under this Division, and to receive such benefit or annuity
from said fund as shall be determined by said board of trustees, which said
benefit or annuity shall be proportionate to the scale of pensions
enumerated in Section 19-211 of this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-210) (from Ch. 108 1/2, par. 19-210)
Sec. 19-210.
Benefit to widow, next of kin, designated beneficiary, or
estate. Upon the death of any contributor or pensioner, the board of trustees
shall pay an amount equal to a refund of contributions as provided in
Section 19-215 of this Division: (a) to the widow of such deceased
contributor or pensioner, or (b) if there be no widow then to the
children, under the age of 18, of such deceased contributor or
pensioner, share and share alike, or (c) if there be no widow or
children under the age of 18, such amount may be paid to a beneficiary
designated in writing to the board of trustees by such contributor or
pensioner, or (d) if there be no widow, or children under the age of 18,
or designated beneficiary, or if there be a beneficiary designated and
such beneficiary shall predecease the contributor or pensioner, then
such sum shall be paid to the executor or administrator of the estate of
such deceased person provided, that if the estate of such contributor or
pensioner shall come within the provisions of Article XXV of the Probate
Act of 1975, as amended, such amount may be paid out under
the provisions of said Article; and further provided, that wherever any
benefits have been paid to a contributor or pensioner during his life
time, the amount paid under this section shall be decreased by the total
amount previously paid to such contributor or pensioner.
(Source: P.A. 81-264.)
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(40 ILCS 5/19-211) (from Ch. 108 1/2, par. 19-211)
Sec. 19-211.
Annuitants - Retirement from service - Notice - Amount of
pension. Any person who has been an employe for a period of 20 years or more
who shall have attained the age of 50 years, and is a contributor to said fund,
and shall have contributed to said fund for the same period, may retire
upon 60 days' notice to be given to said board of trustees unless such
notice is waived by said board of trustees, and become an annuitant under
this act and be entitled to a monthly pension of $60. Provided, that for
every additional full year of service after 20 years rendered before such
retirement, an increase of $7 per month shall be added to the monthly
pension allowed until the maximum of $200 per month shall have been
attained; And, provided further, that no pension shall exceed 60% of the
maximum annual salary received during the employe's term of service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-212) (from Ch. 108 1/2, par. 19-212)
Sec. 19-212.
Amount of pension - "Average monthly salary" defined.
Any employee who is contributing and has contributed to this fund for 20
or more full years, who shall have attained the age of 60 or more years may
retire and in lieu of the pension otherwise herein provided, and at his
option, receive a monthly pension equal to 1 2/3% of such contributor's
average monthly salary for each full year of service. Provided that for any
contributor who retires under the age of 60, who has attained the age of 55
or more years and has contributed to this fund for 20 or more full years,
the amount of pension under this section shall be reduced by 1/2 of 1% per
month for each month such contributor lacks of attainment of age 60; and
provided further that in no case shall the pension exceed 60% of said
contributor's average monthly salary.
Average monthly salary is defined as the highest average monthly salary
for any 5 consecutive years in the last 10 years of service of such
contributor.
(Source: Laws 1963, p. 2034.)
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(40 ILCS 5/19-213) (from Ch. 108 1/2, par. 19-213)
Sec. 19-213.
Beneficiaries to file statement of intent - right to become
beneficiary. Every person who is in the employ of the board of directors of
such library when "The 1905 Act" goes into effect and who intends to become a
beneficiary of the pension fund created thereby shall, on or before the
15th day of November succeeding the election of said board of trustees,
file a statement of such intent with said board upon blanks prepared for
that purpose. Every person who becomes an employe, after "The 1905 Act" has
taken effect and who intends to become a beneficiary under "The 1905 Act"
or this Division shall within 6 months after such entry file a statement of
such intent with said board of trustees upon blanks prepared for that purpose.
Provided that after July 16, 1941, employes of the board of trustees of
such Public Library Employes' Pension Fund, who become eligible to
participate in the benefits of said fund shall have the right, upon filing
a statement of intent with the board of trustees, to become a beneficiary
of such pension fund, to contribute to such pension fund an amount
equivalent to the contributions which would have been paid to that date had
the person become a contributor at the time "The 1905 Act" became effective
or became a contributor at the date of his entry into the service of the
board of trustees of the Public Library Employes' Pension Fund, and to be
credited with length of service for the period for which contributions
shall have been paid.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-214) (from Ch. 108 1/2, par. 19-214)
Sec. 19-214.
Retirement for disability - Notice - Annuity.
Any person who has contributed to said fund for a period for 10 years or
more may retire on account of serious disability, rendering him or her
unable to properly discharge his or her duties, upon 90 days' notice to be
given to said board of trustees (unless such notice is waived by said board
of trustees) and may become an annuitant under this Division, and shall
thereupon be entitled to receive for a period of 2 years (which may be
extended upon proof of continued disability) such part of the annuity then
allowed under the rules of said trustees, as said trustees may determine.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-215) (from Ch. 108 1/2, par. 19-215)
Sec. 19-215.
Dismissals and resignations - Refund plus
interest - Reinstatement of credit in fund.
Any employe who has been contributing to said fund, and who shall be
dismissed or resign may, upon application receive the total amount paid
into said fund by such person so dismissed or resigning plus interest at
the rate of 4% per annum to the date of such dismissal or resignation;
provided, however, that no interest shall accrue or shall be paid on such
amount in the case of any person becoming an employe and a contributor to
this fund on or after July 21, 1947.
Any present contributor to this fund who shall have received a refund of
prior contributions from this fund may at any time prior to July 1, 1959,
repay to this fund the amount of such refund together with interest at four
per cent per annum from the date of refund to the date of repayment, and
credit for such length of service shall be restored.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-216) (from Ch. 108 1/2, par. 19-216)
Sec. 19-216.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
is hereby adopted and made part of this Division. Provided, that where
there is a direct conflict between the provisions of such act and the
specific provisions of this Division, such latter provisions shall prevail.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-217) (from Ch. 108 1/2, par. 19-217)
Sec. 19-217.
Monthly reports to treasurer of fund.
The president and secretary of the public library board shall certify
monthly to the treasurer all amounts deducted in accordance with the
provisions of this Division from the salaries paid by the public library
board, which amounts, as well as all other sums contributed to said fund
under the provisions of this Division, shall be set apart and held by said
treasurer for the purpose hereinbefore specified, subject to the order of
said board of trustees, and shall be paid out upon warrants signed by the
president and secretary of said board of trustees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-218) (from Ch. 108 1/2, par. 19-218)
Sec. 19-218.
Annuities exempt from execution - Assignments prohibited.
All annuities granted under the provisions of "The 1905 Act" or this
Division shall be exempt from attachment and garnishment process, and no
annuitant shall have the right to transfer or assign his or her annuity,
either by way of mortgage or otherwise.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-219) (from Ch. 108 1/2, par. 19-219)
Sec. 19-219.
Interference with enforcement of division - Penalty.
Any person who shall, directly or indirectly, avoid or seek to avoid any
or all the provisions of this Division, or who shall, directly or
indirectly, interfere with, or obstruct the enforcement of any of the
provisions of this Division, shall be guilty of a Class B misdemeanor.
(Source: P.A. 77-2560.)
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(40 ILCS 5/19-220) (from Ch. 108 1/2, par. 19-220)
Sec. 19-220.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Division as though such provisions were fully set forth in this Division as
a part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/19-221) (from Ch. 108 1/2, par. 19-221)
Sec. 19-221.
Public Library Employes' Pension Fund superseded.
Any Public Library Employes' Pension Fund in operation on December 31,
1965, in a city having a population exceeding 500,000 inhabitants, by
virtue of and under the provisions of this Article 19, Division 2, Sec.
19-201 to 19-220, both inclusive, of the "Illinois Pension Code" approved
March 18, 1963, shall be superseded by and merged, effective and as of
January 1, 1966, into the fund in operation in such city for municipal
employees on such date under the provisions of and by virtue of Article 8,
Section 8-101 to 8-253, both inclusive, of the "Illinois Pension Code"
approved March 18, 1963, as amended.
On such January 1, 1966, or as soon as possible and practicable
thereafter, all monies, securities, assets, records, and other property of
such public library employes' pension fund shall be transferred by the
board of trustees of such fund to the custody and ownership of the
retirement board of the annuity and benefit fund, in operation in such city
under and by virtue of the provisions of the aforementioned Article 8 of
the "Illinois Pension Code", and such public library employes' pension fund
shall thereupon cease to exist as a separate fund.
The retirement board of the fund into which said public library
employes' pension fund is to be merged, shall assume all of the liabilities
of such superseded fund, and all pensions, refunds and benefits allowed by
the board of trustees of the superseded fund prior to January 1, 1966
shall, from and after such date, be paid by the retirement board according
to the law under which they were allowed, and all claims for any pension,
refund, or benefit accrued or pending prior to January 1, 1966 under such
superseded fund, shall be allowed or refused by the retirement board in
accordance with the law then applicable thereto, and if allowed shall be
paid from the fund superseding the public library employes' pension fund.
(Source: Laws 1965, p. 2326.)
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(40 ILCS 5/Art. 20 heading) ARTICLE 20.
RETIREMENT SYSTEMS RECIPROCAL ACT
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(40 ILCS 5/20-101) (from Ch. 108 1/2, par. 20-101)
Sec. 20-101.
Continuity and preservation of pension credits.
There is established a plan for the continuity and preservation of
pension credit, in accordance with the provisions hereof, in the case of
employees transferring employment from one governmental unit to another.
The purpose of this plan is to assure full and continuous pension credit
for all service in public employment which is covered by a retirement
system.
The acceptance of the provisions of this Article, shall be optional with
the employee, or in the event of his death, with his survivor; however, the
provisions of Section 20-120 shall be applicable to every person who applies
for benefits from 2 or more retirement systems covered by this Article.
(Source: P.A. 77-531.)
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(40 ILCS 5/20-102) (from Ch. 108 1/2, par. 20-102)
Sec. 20-102.
Terms defined.
The terms as used in this Article, shall have the meanings ascribed to
them in Sections 20-103 to 20-113, inclusive, except when the context
otherwise requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-103) (from Ch. 108 1/2, par. 20-103)
Sec. 20-103.
Effective date.
"Effective date": July 1, 1955, or in the case of any retirement system
becoming subject to the provisions of "The 1955 Act" or this Article
after such date, the date when such retirement system comes under the
provisions of "The 1955 Act" or this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-104) (from Ch. 108 1/2, par. 20-104)
Sec. 20-104.
Employee.
"Employee": Any person in the service of an employer on or after the
effective date, who has pension credit because of service previous or
subsequent to the effective date, who is an active or inactive member or
participant of a retirement system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-105) (from Ch. 108 1/2, par. 20-105)
Sec. 20-105.
Employer.
"Employer": The State of Illinois, any agency or instrumentality
thereof, or any governmental unit in the State.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-106. Final average salary.
(a) "Final average salary": The average (or other) salary which is
considered by a participating system in determining the amount of the
retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall be
considered by each system in determining final average salary, but subject to the limitations imposed by this amendatory Act of the 98th General Assembly for a participant in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code. In
calculating a proportional retirement or survivor's annuity based on these
earnings credits, the participating system shall apply any limitations on
earnings for annuity purposes that are imposed by the Article governing the
system.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-106.
Final average salary.
(a) "Final average salary": The average (or other) salary which is
considered by a participating system in determining the amount of the
retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall be
considered by each system in determining final average salary. In
calculating a proportional retirement or survivor's annuity based on these
earnings credits, the participating system shall apply any limitations on
earnings for annuity purposes that are imposed by the Article governing the
system.
(Source: P.A. 88-593, eff. 8-22-94.)
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(40 ILCS 5/20-107) (from Ch. 108 1/2, par. 20-107)
Sec. 20-107.
Governmental unit.
"Governmental unit": The State of Illinois or any agency or
instrumentality thereof, or any political subdivision or municipal
corporation in the State, which maintains a retirement system for the
benefit of its employees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-108) (from Ch. 108 1/2, par. 20-108)
Sec. 20-108.
Participating system.
"Participating system": Any retirement system to which "The 1955 Act"
or this Article applies.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-109) (from Ch. 108 1/2, par. 20-109)
Sec. 20-109. "Pension credit": Credit or equities acquired by an
employee in the form of contributions, earnings or service as defined
under the law governing each of the systems in which he has credits or
equities, except credits and equities (1) of less than one year in any
one system, except that this one-year limitation shall not apply to
(A) employees who transfer or are transferred, as a class, from one
participating system to another or who are persons to whom Section
14-108.2a or 14-108.2b applies or (B) persons who move from participation with a school district as a teacher aide under Article 7 to participation under Article 16; or (2) which have previously been
forfeited by acceptance of a refund or which have been applied towards a
retirement annuity and have not been reestablished in accordance with the
law governing the system from which the refund or retirement annuity had
been received. If a retirement system provides no refund of contributions,
the pension credit in the case of any employee who has participated in that
system shall be considered effective for the purposes of this Article.
(Source: P.A. 94-834, eff. 6-6-06.)
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(40 ILCS 5/20-110) (from Ch. 108 1/2, par. 20-110)
Sec. 20-110.
Retirement annuity.
"Retirement annuity": Any pension, retirement allowance, retirement
annuity, disability pension, disability retirement allowance or disability
retirement annuity, and an annuity payable on account of retirement for
age, years of service or total and permanent disability.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-111) (from Ch. 108 1/2, par. 20-111)
Sec. 20-111.
Retirement system.
"Retirement system": Any retirement system or pension fund which has
been created by statute and which is financed in whole or in part by
contributions by the State or by any governmental unit of the State or any
municipality of the State.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-112) (from Ch. 108 1/2, par. 20-112)
Sec. 20-112.
Survivor's annuity.
"Survivor's annuity": Payments by a system which are made to the widow
or survivors of an employee or participant in the form of a pension or
annuity or a lump sum which, under the provisions of the law governing such
system, is considered as a widow's or survivor's benefit, or a lump sum
which is made in lieu of a pension or annuity which would otherwise be
payable to the widow or survivor.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-113) (from Ch. 108 1/2, par. 20-113)
Sec. 20-113.
The 1955 Act.
"The 1955 Act": The "Retirement Systems Reciprocal Act" approved July
11, 1955, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-114) (from Ch. 108 1/2, par. 20-114)
Sec. 20-114.
Benefits covered by this article.
The provisions of this Article shall be applicable and limited only to a
retirement annuity and survivor's annuity, and to the pension credit
established for such purposes. Any death benefit, ordinary disability
benefit, duty disability benefit, accidental disability benefit,
supplemental annuity, or any other type of annuity or benefit provided by
any retirement system, not included in the definition of retirement annuity
and survivor's annuity shall not be affected by the provisions except as
provided in Section 20-124.
(Source: P.A. 76-744.)
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(40 ILCS 5/20-115) (from Ch. 108 1/2, par. 20-115)
Sec. 20-115.
Eligibility for a proportional annuity.
Any person who has
pension credit in 2 or more participating systems shall be entitled to a
proportional retirement annuity, and his survivors shall be entitled to a
survivors annuity in accordance with the provisions of this Article, if his
combined pension credit is at least equal to the longest minimum qualifying
period prescribed by any of such systems. The qualifying period of each of
these systems shall be that which was in effect on the date of the employee's
latest withdrawal from service covered by any of these systems.
Each participating system shall, in determining eligibility for a
proportional retirement annuity or survivors annuity, consider the combined
service and contributions of the employee for which pension credit has been
granted under all participating systems. If the law
governing a participating system provides that a retirement or survivors
annuity shall be payable only if the annuity exceeds a certain dollar
minimum, the proportional annuity provided by pension credits under all
participating systems shall be considered in determining whether this
requirement has been met.
(Source: P.A. 85-1209.)
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(40 ILCS 5/20-116) (from Ch. 108 1/2, par. 20-116)
Sec. 20-116.
Minimum qualifying age - Deferred payments.
If the minimum qualifying age in any of the participating systems is
lower than the minimum qualifying age in any other participating system
which is to provide a proportional retirement annuity, or proportional
survivor's annuity, payments by such other system shall be deferred until
the employee or survivor has attained the minimum qualifying age prescribed
for such system.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-117) (from Ch. 108 1/2, par. 20-117)
Sec. 20-117.
Vesting of pension credit - Combined pension credit under all
participating systems. If the vesting of pension credit in any
participating system for a retirement annuity or survivor's annuity is
based upon length of service, the combined service under all participating
systems shall be considered in establishing such vesting of pension credit.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-118) (from Ch. 108 1/2, par. 20-118)
Sec. 20-118.
Waiver of pension credits - Reinstatement.
Any employee who shall have waived, by the acceptance of a refund, his
pension credit in any participating system, may have his pension credit
reinstated by repayment of the refund, including interest from the date of
refund to the date of repayment, provided (1) the system is authorized by
law to receive the repayment, and (2) the employee has completed at least 2
years of service under a participating system subsequent to the date of the
last refund. Each system shall consider pension credits under all
participating systems in determining whether the employee meets the service
requirements under that system for repayment of a refund. The repayment of
a refund under this section shall not be considered as an election to
accept the provisions of the other sections of this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-119) (from Ch. 108 1/2, par. 20-119)
Sec. 20-119.
Concurrent employment.
Any employee who is concurrently
employed by employers under 2 or more participating systems is entitled to
establish pension credit in accordance with the provisions of each system.
If the concurrent employment results in duplication of credits, each of
the systems shall reduce the service credit for the period of concurrent
employment to its full-time equivalent, using as a basis for this
adjustment, the earnings credited for each employment. However, no such
reduction in service credit shall be applied for the purpose of meeting
the one-year minimum service requirement in item (1) of Section 20-109,
except as provided in Section 20-120.
Combined earnings credits shall be limited to the earnings credits which
would have been established by full-time employment with the employer from
which the employee was receiving the highest salary.
Seasonal employment covered by a retirement system during a period for
which credit has been granted in another retirement system is concurrent
employment within the meaning of this Section and no adjustment of the
credits for seasonal employment is required, unless it results in a
duplication of pension credits. If seasonal employment results in a
duplication of credits, it shall be adjusted in accordance with Section
20-120.
(Source: P.A. 87-794.)
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(40 ILCS 5/20-120) (from Ch. 108 1/2, par. 20-120)
Sec. 20-120.
Duplication of pension credits.
In no event shall pension credit for the same service rendered by an
employee be accredited in more than one participating system. If employment
is covered by more than one participating system, pension credit shall be
granted by that system which was first authorized to grant the credit, or
if more than one participating system was authorized to grant credit at the
same time, the employee shall elect, prior to retirement, the system under
which credit shall be granted. The participating system under which pension
credit is forfeited because of the application of this section, shall
refund to the employee, the contributions for the period of service
forfeited.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-121. Calculation of proportional retirement annuities. (a) Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system. The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article. However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code or under the defined contribution plan established under Article 2, 14, 15, or 16 of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
(a-5) For persons who participate in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit retirement annuity that is
payable by any other participating system. (b) Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied, except as may be otherwise provided with respect to vesting in State or employer contributions in a defined contribution plan.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.
(c) Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-121.
Calculation of proportional retirement annuities.
Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system. The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article. However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.
Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-123. Survivor's annuity. The provisions governing a retirement
annuity shall be applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same conditions and
subject to the same limitations and restrictions herein prescribed for a
retirement annuity. If a participating system has no survivor's annuity
benefit, or if the survivor's annuity benefit under that system is waived,
pension credit established in that system shall not be considered
in determining eligibility for or the amount of the survivor's annuity which
may be payable by any other participating system.
For persons who participate in the self-managed plan established under
Section 15-158.2 or the portable benefit package established under Section
15-136.4, pension credit established under Article 15 may be considered in
determining eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit established in
any other system shall not result in any right to a survivor's annuity under
the Article 15 system.
For persons who participate in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit survivor's annuity that is
payable by any other participating system, but pension credits established in
any other system shall not result in any right to or increase in the value of a survivor's annuity under
the defined contribution plan, which depends solely on the options chosen and the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section. (Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-123.
Survivor's annuity.
The provisions governing a retirement
annuity shall be applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same conditions and
subject to the same limitations and restrictions herein prescribed for a
retirement annuity. If a participating system has no survivor's annuity
benefit, or if the survivor's annuity benefit under that system is waived,
pension credit established in that system shall not be considered
in determining eligibility for or the amount of the survivor's annuity which
may be payable by any other participating system.
For persons who participate in the self-managed plan established under
Section 15-158.2 or the portable benefit package established under Section
15-136.4, pension credit established under Article 15 may be considered in
determining eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit established in
any other system shall not result in any right to a survivor's annuity under
the Article 15 system.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-124. Maximum benefits. (a) In no event shall the combined retirement
or survivors annuities exceed the highest annuity which would have been payable
by any participating system in which the employee has pension credits, if all
of his pension credits had been validated in that system.
If the combined annuities should exceed the highest maximum as determined
in accordance with this Section, the respective annuities shall be reduced
proportionately according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
(b) In the case of a participant in the self-managed plan established under
Section 15-158.2 of this Code to whom the provisions of this Article apply:
(i) For purposes of calculating the combined | ||
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(ii) For purposes of calculating the combined | ||
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(iii) Benefits payable under the self-managed plan | ||
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(c) In the case of a participant in a defined contribution plan established under
Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply: (i) For purposes of calculating the combined | ||
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(ii) For purposes of calculating the combined | ||
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(iii) Benefits payable under a defined contribution | ||
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(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-124.
Maximum benefits.
In no event shall the combined retirement
or survivors annuities exceed the highest annuity which would have been payable
by any participating system in which the employee has pension credits, if all
of his pension credits had been validated in that system.
If the combined annuities should exceed the highest maximum as determined
in accordance with this Section, the respective annuities shall be reduced
proportionately according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
In the case of a participant in the self-managed plan established under
Section 15-158.2 of this Code to whom the provisions of this Article apply:
(i) For purposes of calculating the combined | ||
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(ii) For purposes of calculating the combined | ||
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(iii) Benefits payable under the self-managed plan | ||
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(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-125. Return to employment - suspension of benefits. If a retired
employee returns to employment which is covered by a system from which he is
receiving a proportional annuity under this Article, his proportional annuity
from all participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to any
distributions payable under the self-managed plan established under Section
15-158.2 or under a defined contribution plan established under Article 2, 14, 15, or 16 of this Code.
The provisions of the Article under which such employment would be
covered shall govern the determination of whether the employee has returned
to employment, and if applicable the exemption of temporary employment or
employment not exceeding a specified duration or frequency, for all
participating systems from which the retired employee is receiving a
proportional annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.
(Source: P.A. 98-599, eff. 6-1-14.) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-125.
Return to employment - suspension of benefits.
If a retired
employee returns to employment which is covered by a system from which he is
receiving a proportional annuity under this Article, his proportional annuity
from all participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to any
distributions payable under the self-managed plan established under Section
15-158.2 of this Code.
The provisions of the Article under which such employment would be
covered shall govern the determination of whether the employee has returned
to employment, and if applicable the exemption of temporary employment or
employment not exceeding a specified duration or frequency, for all
participating systems from which the retired employee is receiving a
proportional annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/20-126) (from Ch. 108 1/2, par. 20-126)
Sec. 20-126.
Responsibility of participating systems.
Each
participating system shall submit to the other participating systems,
upon request, a report, properly certified, regarding the
pension credits of each employee and any other pertinent information which may be
necessary for proper administration of this Article.
(Source: P.A. 79-782.)
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(40 ILCS 5/20-127) (from Ch. 108 1/2, par. 20-127)
Sec. 20-127.
Responsibility of employee.
It shall be the duty and responsibility of an employee having pension
credit in any participating system to make available such information or
any other required data relating thereto, to the participating systems in
which he has pension credits, in order that the pension credit may be
applied in the manner herein provided. A participating system shall be
under no obligation or responsibility to initiate any inquiry or
investigation for the purpose of establishing pension credit in the case of
any employee, in the absence of a request from the employee, accompanied by
sufficient facts bearing upon the credit.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-128) (from Ch. 108 1/2, par. 20-128)
Sec. 20-128.
Payment of benefits.
Two or more participating systems may agree to have the combined
benefits paid by one of the systems, in which case, the system which pays
the combined benefit shall receive from the other system, a lump sum
payment equal to the actuarial equivalent of the proportional annuity
determined in accordance with annuity tables which are acceptable to both
systems.
(Source: P.A. 78-779.)
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(40 ILCS 5/20-129) (from Ch. 108 1/2, par. 20-129)
Sec. 20-129.
Retirement systems covered by article.
This Article shall apply only to those retirement systems which have
accepted it, as specified in the respective divisions or Articles of this
Code governing such systems.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-130) (from Ch. 108 1/2, par. 20-130)
Sec. 20-130.
Conflict between this Article and the Articles governing
the participating systems. If any of the provisions of this Article are
inconsistent with the provisions of the Article governing any participating
system, the provisions shall, if possible, be interpreted so as to give effect
to the purpose of both Articles; however, if this is not possible, the
provisions of the Article governing the participating system, with the
exception of those covering suspension of benefits upon return to
employment, shall control.
(Source: P.A. 79-782.)
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(40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
Sec. 20-131.
Retirement Annuities and Survivors Annuities - Guarantees.
(a) This amendatory Act of 1975 (P.A. 79-782) shall not be applied to
deprive any person or his survivor of eligibility for an annuity or to reduce
the annuity or to deprive such person of rights to which he or his survivor
would have been entitled under the provisions of Article 20 which were in
effect immediately prior to September 5, 1975, if he was an employee
immediately prior to that date.
(b) If the combined retirement annuity benefits provided under Public
Act 79-782 are less than the combined retirement annuity benefits that would
have been payable under the alternative formula of Section 20-122, the system
under which retirement would have occurred, as provided by Section 20-122,
shall increase the proportional retirement annuity by an amount equal to the
difference.
(c) Subsection (b) of this Section does not apply to the retirement
annuity benefits payable under the self-managed plan established under Section
15-158.2 of this Code.
(Source: P.A. 91-887, eff. 7-6-00.)
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(40 ILCS 5/20-132) (from Ch. 108 1/2, par. 20-132)
Sec. 20-132.
Short title.
This Article shall be known as the "Retirement Systems Reciprocal Act"
and is a continuation of the "Retirement Systems Reciprocal Act", approved
July 11, 1955, as amended.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/20-133) (from Ch. 108 1/2, par. 20-133)
Sec. 20-133.
General provisions and savings clause.
The provisions of Article
1 and Article 23 of this Code apply to this Article as though such provisions
were fully set forth in this Article as a part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 21 heading) ARTICLE 21.
SOCIAL SECURITY ENABLING ACT
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(40 ILCS 5/21-101) (from Ch. 108 1/2, par. 21-101)
Sec. 21-101.
Name of Act.
This Article shall be known and may be cited
as the "Social Security Enabling Act", and is a continuation of the "Social
Security Enabling Act", approved August 6, 1951, as amended.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102) (from Ch. 108 1/2, par. 21-102)
Sec. 21-102. Terms defined. For the purposes of this Article,
the terms defined in the Section following this Section and preceding Section 21-103 shall have
the meanings ascribed to them, except when the context otherwise
requires.
(Source: P.A. 97-333, eff. 8-12-11.)
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(40 ILCS 5/21-102.1) (from Ch. 108 1/2, par. 21-102.1)
Sec. 21-102.1.
Social Security Act.
"Social Security Act" means the Act of Congress approved August 14, 1935,
Chapter 531, 49 Stat. 620, as heretofore or hereafter amended.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.2) (from Ch. 108 1/2, par. 21-102.2)
Sec. 21-102.2.
Federal Insurance Contributions Act.
"Federal Insurance
Contributions Act" or "FICA" means Subchapters A, B and C of Chapter 21 of
the Federal Internal Revenue Code of 1986, as such Code may from time to
time be amended.
(Source: P.A. 85-442.)
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(40 ILCS 5/21-102.3) (from Ch. 108 1/2, par. 21-102.3)
Sec. 21-102.3.
State Agency.
"State Agency" means the Social Security
Division of the State Employees'
Retirement System of Illinois. The board of trustees of such system shall
serve as the administrative body thereof, but may delegate any of its
functions with respect to the administration of such Division to any
individual.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.4) (from Ch. 108 1/2, par. 21-102.4)
Sec. 21-102.4.
Secretary.
"Secretary" means the Secretary of the
Department of Health and Human Services, or any individual to whom the
Secretary has delegated any of his functions under the Social Security Act
with respect to coverage of employees of States and their political
subdivisions.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.5) (from Ch. 108 1/2, par. 21-102.5)
Sec. 21-102.5.
Federal-State Agreement.
"Federal-State Agreement"
means the agreement between the Secretary and the State of Illinois entered
into by the State Agency on September 15, 1953, as authorized by the Social
Security Enabling Act for the purpose of extending coverage under Title II
of the Social Security Act.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.6) (from Ch. 108 1/2, par. 21-102.6)
Sec. 21-102.6.
Modification to the Federal-State Agreement.
"Modification to the Federal-State Agreement" means an amendment to the
Federal-State Agreement to extend coverage to coverage groups or
additional employee classifications consistent with the provisions of Section
218 of the Social Security Act and this Article.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.7) (from Ch. 108 1/2, par. 21-102.7)
Sec. 21-102.7.
Coverage agreement.
"Coverage agreement" means an
agreement between the State Agency and a coverage group for the purpose of
extending social security coverage to the employees of the coverage group.
Such agreement shall specify the terms, conditions and scope of coverage.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.8) (from Ch. 108 1/2, par. 21-102.8)
Sec. 21-102.8.
Political subdivision.
"Political subdivision" means any of the following:
(a) a city, village, township, incorporated town or county, or a school,
road, library, park, hospital or other local district with general
continuous power to levy taxes on property within such district;
(b) an instrumentality created under the laws of the State of Illinois
which is legally separate and distinct from the State of Illinois, and
which is not an entity included in subdivision (a) of this Section;
(c) a noncorporate public entity created and existing under a contract
or agreement between 2 or more public agencies as provided for in this
Intergovernmental Cooperation Act, or between 2 or more school districts
under The School Code, or between 2 or more governmental entities under any
other Act authorizing intergovernmental cooperation.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.9) (from Ch. 108 1/2, par. 21-102.9)
Sec. 21-102.9.
Retirement system.
"Retirement system" means any annuity, pension or retirement fund or system
established by State law or by action of a political subdivision, except
those applying to municipal firemen and police.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.10) (from Ch. 108 1/2, par. 21-102.10)
Sec. 21-102.10.
Governing body.
"Governing body" means: (a) in cities, the city council; (b)
in villages or incorporated towns, the board of trustees; (c) in townships,
the town clerk for purposes of receiving petitions, the electors for
purposes of the election
of social security coverage, and
the board of town trustees for all other purposes; (d) in other political
subdivisions, the corporate authority, body or officer authorized by law to
levy taxes for the maintenance and operation of the political subdivision;
(e) in political subdivisions without the authority to levy taxes and in
noncorporate public entities, the person or group of persons having ultimate
authority to expend funds for the payment of earnings to employees.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.11) (from Ch. 108 1/2, par. 21-102.11)
Sec. 21-102.11.
Absolute coverage group.
"Absolute coverage group"
means a political subdivision that has not established a retirement system
for its employees as of the time the entity enters into a coverage agreement.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.12) (from Ch. 108 1/2, par. 21-102.12)
Sec. 21-102.12.
"Retirement system coverage group" means a grouping of
employees who are in positions covered by a public retirement system which
has been placed under social security coverage by either Section 218(d)(3)
or Section 218(d)(6) of the Social Security Act.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.13) (from Ch. 108 1/2, par. 21-102.13)
Sec. 21-102.13.
Employment.
"Employment" means service
covered under a coverage agreement pursuant to this Article, which is
performed by a person who is employed by the State or a political
subdivision, or who holds an elective or appointive office of the State or
a political subdivision.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.14) (from Ch. 108 1/2, par. 21-102.14)
Sec. 21-102.14.
Employee.
"Employee" means any person engaged in employment.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.15) (from Ch. 108 1/2, par. 21-102.15)
Sec. 21-102.15.
Policeman.
"Policeman" means any person who is a member
of the police department of a municipality as defined in Section 3-103 of
this Code or of a city subject to Article 5 of this Code, whether paid on a
full-time or part-time basis, or of a law enforcement organization within a
department or agency of the State, and who is by virtue of such public employment
vested by law with a primary duty to maintain public order or to make arrests
for offenses, whether that duty extends to all offenses or is limited to
specific offenses.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.16) (from Ch. 108 1/2, par. 21-102.16)
Sec. 21-102.16.
Fireman.
"Fireman" means any member of
a regularly constituted fire department of a municipality as defined in
Section 4-103 of this Code, or of a city subject to Article 6 of this Code,
whether paid on a full time, part time or per-call basis; or any member
occupying a classified position as a fire fighter in the fire protection
service of a State department.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-102.17) (from Ch. 108 1/2, par. 21-102.17)
Sec. 21-102.17.
Wages.
"Wages" means remuneration for employment, including
the cash value of remuneration paid in any medium other than cash,
but not including that part of such remuneration which would not constitute
"wages" within the meaning of the Social Security Act for wages paid
prior to January 1, 1987, or the Federal Insurance Contributions Act for
wages paid after December 31, 1986.
(Source: P.A. 85-442.)
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(40 ILCS 5/21-102.18) (from Ch. 108 1/2, par. 21-102.18)
Sec. 21-102.18.
Mandatory medicare coverage.
"Mandatory medicare
coverage" means the mandatory coverage in the Federal Medicare Insurance
Program of all State and local governmental personnel who are in positions
not covered under the Federal Social Security Insurance Program and who
were not performing regular and substantial services prior to April 1,
1986, without regard to whether such State or local government has come
under the provisions of this Article with respect to the Federal Social
Security Insurance Program.
(Source: P.A. 84-1472.)
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(40 ILCS 5/21-102.19) (from Ch. 108 1/2, par. 21-102.19)
Sec. 21-102.19.
Optional medicare coverage.
"Optional medicare
coverage" means coverage in the Federal Medicare Insurance Program, by
means of a voluntary coverage agreement, of State or local government
personnel who are in positions not covered under the Federal Social Security
Insurance Program, and who were performing regular and substantial services
for such State or local government on March 31, 1986, and who have not
terminated such service after March 31, 1986.
(Source: P.A. 84-1472.)
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(40 ILCS 5/21-102.20) (from Ch. 108 1/2, par. 21-102.20)
Sec. 21-102.20.
Mandatory Social Security Coverage.
"Mandatory Social
Security coverage" means the coverage in the federal Social Security System
that is required under Section 210 of the federal Social Security Act for
certain State and local government personnel who are not members of a State
or local governmental retirement system.
(Source: P.A. 87-11.)
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(40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
Sec. 21-103.
Political subdivision - election of coverage.
(a) Any political subdivision other than a school district
and other than a political subdivision which is
participating in the Illinois Municipal Retirement Fund under Article 7 of this
Code may, by resolution of the governing body (in the case of a township,
at an annual town meeting or at a special town meeting called for that
purpose), or by referendum, elect to have its employees covered
by the Social Security Act.
Whenever a petition requesting Social Security coverage for
employees, signed by not less than 5% of the legal voters of the
political subdivision, is presented to the governing body, such governing
body shall cause such proposition to be certified to the proper election
officials who shall submit the proposition to the voters at the next
appropriate election in accordance with the general election law, or in the
case of a township at the next annual town meeting if the petition is received
more than 15 and less than 60 days before the annual town meeting, or else at a
special town meeting called for that purpose. In the territory of the
political subdivision every elector may vote upon the proposition stated in the
petition. Such proposition shall be in substantially the following form:
Shall....(political subdivision)enter into a coverage agreement withthe Social Security Division of YESthe State Employees' Retirement System for extension of Federal Social NOSecurity coverage to employeesof....(political subdivision)?
If a majority of all of the votes cast upon the proposition is in favor
thereof, or if the governing body has adopted a resolution or ordinance
providing for coverage of its employees, the governing body shall execute the
coverage agreement provided by the State Agency and submit such coverage
agreement to the State Agency for approval. The coverage agreement shall be
approved by the State Agency if it meets the requirements of subsection (b).
(b) Each coverage agreement of a political subdivision and any
amendment thereof shall be approved by the State Agency if it finds that
such coverage agreement, or such coverage agreement as amended,
is in conformity with such requirements as are provided in the regulations
of the State Agency, except that no such coverage agreement shall be
approved unless:
(1) it is in conformity with the requirements of the | ||
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(2) it provides that all services which constitute | ||
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(3) it provides for such methods of administration of | ||
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(4) it provides for an effective date of coverage not | ||
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(c) In addition to the requirements in subsection (b), no coverage
agreement which provides for an effective date of coverage prior to January
1, 1987 shall be approved unless:
(1) it specifies the sources from which the funds | ||
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(2) it contains a promise to deliver the proper funds | ||
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(3) it specifies some officer to act as custodian of | ||
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(4) it provides that the political subdivision shall | ||
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(5) it provides that the political subdivision will | ||
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(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/21-104) (from Ch. 108 1/2, par. 21-104)
Sec. 21-104.
Noncorporate public entities - election
of coverage. Any noncorporate public entity may by
resolution of its governing body elect to have its employees covered by the
Social Security Act in the same manner and subject to the same
conditions as are set forth in Sections 21-103 and 21-105, but subject
to the following additional conditions:
(a) that the agreement by which the entity was created or an amendment
to that agreement authorizes the entity to provide for the extension of
Social Security benefits to its employees; and
(b) that Social Security contributions due on wages covered under the
agreement paid prior to January 1, 1987 and wage reports required for
calendar years prior to 1987 are submitted to the State Agency along with
the coverage agreement executed by the entity.
(Source: P.A. 85-442.)
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(40 ILCS 5/21-105) (from Ch. 108 1/2, par. 21-105)
Sec. 21-105.
Retirement systems - election of coverage.
A referendum
on the question
of coverage under the Social Security Act may be authorized by the Governor
with respect to any retirement system, or by the
board of trustees of such system, or by the governing body of any
political subdivision which has established a retirement system, except
for a retirement system established under Article
3, 4, 5 or 6 of this Code.
Such a referendum shall also be held upon petition
signed by at least 10% of the members of any retirement system except for
a retirement system established
under Article 3, 4, 5 or 6 of this Code. Such
petition shall be examined and checked by the governing body or board of
trustees of the retirement system, and such
board or body shall certify that each signer of the petition is an
eligible member qualified
to vote in such referendum, and that the names of all ineligible individuals
have been stricken.
Prior to a referendum on that question and to the notice of
the referendum required by either Section 218(d)(3) or 218(d)(7)
of the Social
Security Act, a plan of coverage shall be formulated by the governing
body of each retirement system or Board of Trustees, as the case may be,
whose members are to participate in the referendum for the coordination
of the retirement system with the social security insurance provisions
of Title II of the Social Security Act.
Where a retirement system is governed by an Act of the State of
Illinois, such plan of coverage shall be presented to the General
Assembly for enactment by amendment to such Act.
The ballot to be used in the
referendum shall contain a clear description of the plan of coverage,
which description may take the form of a summary statement setting forth
the changes or revisions, if any, to be made in the benefit and
contribution provisions of the retirement system, and the obligations to
be imposed upon the members of the system if the plan of coverage is
approved in the referendum and their positions are included under an
agreement pursuant to the provisions of this Article.
The referendum shall be subject to the following conditions:
(a) Only eligible employees as defined in Section 218(d)(3) of the Social
Security Act shall be permitted to vote.
(b) Should such referendum under Section 218(d)(3)
fail to obtain approval, any subsequent referendum among members
of the retirement
system in question shall not be held for a period of at least 3 years
from the date of the
referendum.
(c) Upon receipt of satisfactory proof that the conditions of the
referendum specified in either Section 218(d)(3) or Section 218(d)(7)
of the Social Security Act have been met, the Governor or an official of the
State designated by him shall so certify to the Secretary. Proper steps
to give effect to the results of the referendum
shall then be taken by the State Agency, and a modification to the
Federal-State Agreement shall be executed in accordance with
Section 21-108 within a period of 2 years from the date of the referendum.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-105.1) (from Ch. 108 1/2, par. 21-105.1)
Sec. 21-105.1. Election of optional medicare coverage. The State or
any political subdivision or noncorporate public entity may elect to
provide optional medicare coverage for its personnel in the same manner and
subject to the same conditions as are set forth in Sections 21-103, 21-104
and 21-105 for the election of Social Security coverage, including a retirement system established under Article 3, 4, 5, or 6 of this Code, notwithstanding the provisions contained in Section 21-105 of this Article.
(Source: P.A. 98-1117, eff. 8-26-14.)
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(40 ILCS 5/21-105.2) (from Ch. 108 1/2, par. 21-105.2)
Sec. 21-105.2.
Mandatory Social Security Coverage.
Beginning July 1,
1991, the State and all political subdivisions that have any employees who
are subject to mandatory Social Security coverage shall report the wages of
those employees on their quarterly wage reports to the IRS, and shall make
the appropriate FICA contributions as required by law with respect to those
employees. Such employees may be added to the appropriate coverage groups
in accordance with the modification procedures provided in this Article.
(Source: P.A. 87-11.)
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(40 ILCS 5/21-106) (from Ch. 108 1/2, par. 21-106)
Sec. 21-106.
Municipal police and firemen.
(1) If a municipality enters into a coverage agreement under this
Article prior to having established a pension plan under Article 3 or 4 of
this Code, all police positions and all firemen positions, including
members of a volunteer fire department organized pursuant to municipal
ordinance, shall become subject to social security and be included within
the absolute coverage group of the municipality in compliance with Section
218(b)(5) of the Social Security Act. If a municipality establishes a
pension plan under Article 3 or 4 of this Code subsequent to establishing
social security coverage under the conditions set forth in this subsection,
the police and firemen positions shall remain subject to social security as
part of the original absolute coverage group.
(2) If a municipality enters into a coverage agreement under
this Article subsequent to having established a pension plan under
Article 3, 4, 5 or 6 of this Code, or subsequent to becoming legally obligated
to establish such plan even though having not complied, all police and firemen
positions included under such pension plan shall be exempted from social
security coverage and excluded from the absolute coverage group of that
municipality pursuant to Section 218(d)(5)(A) of the Social Security Act.
(3) If the covered or non-covered social security status of the police
and firemen positions in a municipality has been determined under the
conditions set forth in either subsection (1) or (2) of this Section, such
covered or non-covered status shall remain in effect in the event the
municipality shall begin participation in the Illinois Municipal Retirement
Fund pursuant to Sections 7-132 and 7-134 of this Code.
(4) Police and firemen positions which have not acquired social security
coverage as part of an absolute coverage group under an agreement executed
by the municipality pursuant to Section 21-103 shall not acquire social
security coverage by virtue of the municipality's mandate to participate
in the Illinois Municipal Retirement Fund under Section 7-132, or the
municipality's election to participate under Section 7-134.
(5) Incumbents occupying police and firemen positions who because of
age, physical condition, length of service or other disqualifications are
ineligible to participate in local pension plans established under Articles
3 and 4 of this Code are also excluded from social security coverage if the
employing municipality has obtained social security coverage under the
conditions stated in subsections (2) and (4) of this Section, except that
beginning July 1, 1991, such persons are subject to mandatory Social Security
coverage.
(Source: P.A. 87-11.)
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(40 ILCS 5/21-107) (from Ch. 108 1/2, par. 21-107)
Sec. 21-107.
State police and firemen.
Any position in the
service of a State agency, department, board or commission which (1) has
been designated as a fireman, police officer, or law enforcement officer by
the State Department of Central Management Services, the State Attorney
General or the State Agency, or declared to be a fireman or police position
as a result of a court ruling upon the question, and (2) extends to the
incumbent the right to participation in the State Employees' Retirement
System, shall be exempted from Social Security coverage in compliance with
Section 218(d)(5)(A) of the Social Security Act, effective as of the date
of such designation or court ruling, except that beginning July 1, 1991,
incumbents of such positions who do not participate in the State Employees'
Retirement System shall be subject to mandatory Social Security coverage.
(Source: P.A. 85-442; 87-11.)
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(40 ILCS 5/21-108) (from Ch. 108 1/2, par. 21-108)
Sec. 21-108.
Modification to Federal-State Agreement.
Upon approval
of the coverage agreement submitted by an absolute or retirement system
coverage group, the State Agency, on behalf of the State of Illinois, shall
modify the Federal-State Agreement to extend coverage to employees of the
coverage group consistent with the provisions
of Section 218 of the Social Security Act, this Article and the approved
coverage agreement. Such modification shall specify:
(1) the coverage group or employee classification to be covered;
(2) any employee classification to be excluded, or to continue to be excluded in
the case of a modification to extend coverage to additional employee
classifications of a covered political subdivision;
(3) the approximate number of employees to be covered by the modification;
(4) the title of the reporting official designated by the political
subdivision as responsible for social security reporting to the State Agency;
(5) the effective date of coverage; and
(6) the controlling date for purposes of retroactive coverage.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
Sec. 21-109.
Payment of Contributions.
(a) Absolute coverage group: Each political subdivision which has
established Social Security coverage for its employees under this Article
shall pay contributions on
covered wages paid prior to January 1, 1987 in the amounts and at the rates
prescribed by subchapters A and B of the Federal Insurance Contributions
Act at the times prescribed in the regulations of the State Agency.
Taxes due on wages covered under the Social Security Coverage Agreement
paid after December 31, 1986 shall be paid by each political subdivision to
the Internal Revenue Service in the amounts and at the rates specified in
the Federal Insurance Contributions Act and at the times prescribed in the
regulations of the Internal Revenue Service.
Every political subdivision required to make
payments is authorized in consideration of the employee's retention in,
or entry upon, employment to impose upon each of its employees, as to
services which are covered by the coverage agreement, a contribution with
respect to wages computed by applying the rates of contribution prescribed by
Subchapter A of the Federal Insurance Contributions Act, and to deduct the
amount of such contribution from such employee's wages when paid.
Failure to deduct such contribution shall not relieve the employee or
employer of liability therefor.
(b) Retirement system coverage group: As a condition of its coverage
agreement, the governing body or board of trustees of any retirement system
which has adopted Social Security coverage for its members under this Article
shall assume responsibility to the State Agency for the compiling of wage data,
the collection of related contributions prescribed by subchapters A and B of
the Federal Insurance Contributions Act, and the timely reporting and payment
of such items upon the wages of all covered employees paid prior to January 1,
1987 in the manner and at the times prescribed by the State Agency.
Coincident to the adoption of coverage, the governing body or board of
trustees of the retirement system shall promulgate rules and regulations
in conformity with federal regulations, applicable to the State or local
governmental entities or to the agencies and employees participating
therein, to insure the correct application of coverage and the timely and
accurate reporting of wages and collection of contributions.
In the event of failure by the retirement system or the governmental
entities or agencies participating therein to comply with the timely reporting
and payment requirements imposed by this Section, the retirement system
shall be assessed any federal interest or late filing penalties arising
therefrom.
The contributions collected under this Section by any retirement system which
elects to adopt coverage shall be remitted at such times as the State Agency
shall prescribe.
The employees comprising the executive and administrative staff of any
retirement system which elects to adopt the provisions of this
Article shall have the contributions made by the body employing them.
(c) If more or less than the correct amount of contributions is paid to
the State Agency, proper adjustment, or refund without interest if
adjustment is impractical, shall be made in such manner and at such times
as the State Agency shall prescribe.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/21-109.1) (from Ch. 108 1/2, par. 21-109.1)
Sec. 21-109.1.
(a) Notwithstanding any law to the contrary, State
agencies, as defined in the State Auditing Act, shall remit to the
Comptroller all contributions required under subchapters A, B and C
of the Federal Insurance Contributions Act, at the rates and at the times
specified in that Act, for wages paid on or after January 1, 1987 on a
warrant of the State Comptroller.
(b) The Comptroller shall establish a fund to be known as the Social
Security Administration Fund, with the State Treasurer as ex officio
custodian. Contributions and other monies received by the Comptroller for
the purposes of the Federal Insurance Contributions Act shall either be
directly remitted to the U.S. Secretary of the Treasury or be held in
trust in such fund, and shall be paid upon the order of the Comptroller for:
(1) payment of amounts required to be paid to the U. | ||
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(2) payment of refunds for overpayments which are not | ||
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(c) The Comptroller may collect from a State agency the actual or
anticipated amount of any interest and late charges arising from the State
agency's failure to collect and remit to the Comptroller contributions as
required by the Federal Insurance Contributions Act. Such interest and
charges shall be due and payable upon receipt of notice thereof from the
Comptroller.
(d) The Comptroller shall pay to the U. S. Secretary of the Treasury
such amounts at such times as may be required under the Federal Insurance
Contributions Act. (e) The Comptroller may direct and the State Treasurer shall transfer amounts from the Social Security Administration Fund into the Capital Facility and Technology Modernization Fund as the Comptroller deems necessary. The Comptroller may direct and the State Treasurer shall transfer any such amounts so transferred to the Capital Facility and Technology Modernization Fund back to the Social Security Administration Fund at any time.
(Source: P.A. 102-16, eff. 6-17-21.)
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(40 ILCS 5/21-110) (from Ch. 108 1/2, par. 21-110)
Sec. 21-110.
Tax levy.
The governing body of any political subdivision
with the power to levy taxes is hereby authorized and empowered to increase
its annual tax levy above the limitation now or hereafter otherwise
authorized by law, by the amount necessary to meet the cost of
participation in the Federal Social Security Insurance Program, including
any share of the cost of participation of an instrumentality or entity
described in subsection (b) or (c) of Section 21-102.8 for which the
political subdivision is responsible, without regard to whether such
participation is mandatory or optional, and without regard to whether the
political subdivision has otherwise come under the provisions of this
Article for purposes of participation in the Federal Social Security
Insurance Program.
(Source: P.A. 87-11.)
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(40 ILCS 5/21-110.1) (from Ch. 108 1/2, par. 21-110.1)
Sec. 21-110.1.
Medicare taxes.
(a) The governing body of every
political subdivision with the power to levy taxes is hereby authorized and
empowered to increase its annual tax levy above the limitation now or
hereafter otherwise authorized by law, by the amount necessary to meet the
cost of its participation in the Federal Medicare Program, including any
share of the cost of participation of an instrumentality or entity
described in subsection (b) or (c) of Section 21-102.8 for which the
political subdivision is responsible, without regard
to whether such participation is mandatory or optional, and without regard
to whether the political subdivision has come under the provisions of this
Article for purposes of participation in the Federal Social Security Insurance Program.
(b) The payment of medicare taxes to the State Agency shall be made in
the same manner and under the same conditions as are set forth in Section
21-109 for payment of Social Security contributions, except that the State
Agency may designate a retirement system to assume responsibility to the
State Agency for the compiling of wage data, the collection of medicare
taxes, and the timely reporting and payment of such items for specified
persons under mandatory or optional medicare coverage, regardless of
whether such retirement system has entered into a coverage agreement for
Social Security coverage pursuant to Section 21-105.
(c) The penalty and audit provisions of Sections 21-112, 21-113 and
21-114 shall apply to the failure or refusal to make timely and correct
payments of medicare taxes or reports of wages in accordance with State
Agency regulations.
(Source: P.A. 84-1472.)
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(40 ILCS 5/21-112) (from Ch. 108 1/2, par. 21-112)
Sec. 21-112.
Penalties.
For failure to make timely reporting of
employee wages and payment of contributions on covered wages paid prior
to January 1, 1987 in accordance with State Agency
regulations, a delinquent political subdivision or retirement system may be
assessed a late filing penalty which shall be, upon receipt of notice,
immediately due and payable to the State Agency. The amount of the penalty
may be adjusted from time to time with the approval of the Board of
Trustees of the State Employees' Retirement System of Illinois. If
the late filing is of such duration that the State Agency is unable
to make timely payment on behalf of the political subdivision or retirement
system to the U.S. Department of Health and Human Services and a federal
interest charge arises, the late filing penalty shall be applied toward
payment of the federal interest charge. If the federal interest charge
exceeds the amount of the late filing penalty, the political subdivision or
retirement system shall be assessed the balance of the federal interest charge.
(Source: P.A. 85-442.)
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(40 ILCS 5/21-113) (from Ch. 108 1/2, par. 21-113)
Sec. 21-113.
Tax audit.
(1) Upon failure or refusal of any covered
political subdivision or retirement system to submit wage reports and pay
amounts due the State Agency on covered wages paid prior to January 1,
1987 in accordance with the terms of its agreement or applicable
regulations, the State Agency after giving notice may order the entity to
make its payroll books and related records available at the office of the
State Agency in Springfield, or at the business office of the entity as the
State Agency shall direct, and may audit those books and records to determine
the liability for reporting wages, the amount of contributions
due, the late filing penalty, and the federal interest
charge. The expenses incurred by the State
Agency to conduct the audit may be included in the amount due.
(2) Upon completion of the audit, the entity shall be given an opportunity
to make payment of the amount due. In the event of refusal to make
payment, the State Agency shall then certify the amount to be collected to
the State Comptroller who shall deduct such amounts or any part thereof
from any State funds to which the entity may be entitled. Upon exercising
the State's right of setoff, the Comptroller shall pay amounts so deducted
to the State Agency.
(3) If State funds are not available from which setoff can be made by
the Comptroller, the State Agency may proceed by instituting action in
the appropriate circuit court against the defaulting entity
to recover the amount due.
(Source: P.A. 85-442.)
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(40 ILCS 5/21-114) (from Ch. 108 1/2, par. 21-114)
Sec. 21-114.
General investigative audits.
The State Agency upon
its own initiative may conduct investigative field audits of the books and
payroll records for calendar years prior to 1987 of any political
subdivision or retirement system which has adopted coverage. The audits
may be conducted at the business office of any participating entity or at
any other site mutually convenient to the State Agency and the entity. The
State Agency may require covered entities to submit reconciliation
statements disclosing total wages and compensation disbursed for all
personal services performed during a designated period for comparison with
wages included upon reports for which contributions were paid in that same period.
The State Agency may also require, accept and rely upon payroll audits
performed by the field staff of any retirement system conducted in accordance
with guidelines established by the State Agency, to determine compliance
with the reporting and collection of contributions upon covered wages.
The cost of investigative audits conducted by the State Agency under
this Section shall be recovered through levy of the annual administrative
charge as provided in Section 21-116; however, if the investigative audit
should disclose substantial noncompliance requiring an extensive audit,
the State Agency may assess audit costs summarily against the noncomplying
entity.
(Source: P.A. 85-442.)
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(40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
Sec. 21-115.
Special fund abolished; designation of remittance agents.
(a) The Social Security Contribution Fund is abolished at the close of
business on June 30, 1997. Any balance then remaining in that Fund shall be
transferred to the Social Security Administration Fund created under Section
21-109.1, and any amounts thereafter designated for deposit into the Social
Security Contribution Fund shall instead be deposited into the Social Security
Administration Fund.
(b) The State Agency is authorized to designate any retirement
system which has adopted coverage under this Article to act as remittance agent
on behalf of the State Agency and to make payment of the Social Security
contributions collected upon the wages of employees within the retirement
system coverage group directly to the designated Federal Reserve Bank. Any
retirement system so designated as a
remittance agent shall continue to be subject to the regulations of the State
Agency with respect to coverage determinations, wage reporting, corrective
adjustments, and accountability for tax collections in the same manner as any
other covered entity.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/21-117) (from Ch. 108 1/2, par. 21-117)
Sec. 21-117.
Inactivation.
Any political subdivision which ceases its corporate existence as the result of legal
dissolution, annexation, or consolidation, shall promptly notify the
State Agency and furnish
legal documentation of such fact, whereupon the State Agency shall notify
the Secretary of the U.S. Department of Health and
Human Services to permanently inactivate
the coverage and reporting requirements applicable to such entity. If any
employees remain upon the payroll of the entity beyond the official date
of dissolution, the notice to the State Agency shall specify the ending
date of the calendar month in which their employment relationship shall
cease, and the coverage and reporting requirements under the entity's agreement
shall continue upon any wages paid during that period. The dissolution
notice must identify the name and address of the repository where the payroll
books and records of the dissolved entity shall be preserved for the statutory period.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-118) (from Ch. 108 1/2, par. 21-118)
Sec. 21-118.
Administrative review.
All orders for
inactivation of a plan under Section 21-117 made by the State Agency shall
be subject to judicial review pursuant to the provisions of the
Administrative Review Law, and all amendments and modifications thereof,
and the rules adopted pursuant thereto.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-119) (from Ch. 108 1/2, par. 21-119)
Sec. 21-119.
Rules and regulations.
The State Agency shall make and
publish such rules and regulations, not
inconsistent with the provisions of this Article, as it finds necessary or
appropriate to the efficient administration of the functions with which it
is charged under this Article.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-120)
Sec. 21-120. (Repealed).
(Source: P.A. 100-1148, eff. 12-10-18. Repealed by P.A. 102-210, eff. 7-30-21.)
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(40 ILCS 5/21-121) (from Ch. 108 1/2, par. 21-121)
Sec. 21-121.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: P.A. 84-1028.)
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(40 ILCS 5/Art. 22 heading) ARTICLE 22.
MISCELLANEOUS COLLATERAL PROVISIONS
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(40 ILCS 5/Art. 22 Div. 1 heading) DIVISION 1.
ADDITIONAL PENSION
FUNDS - TRANSIT AUTHORITIES
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(40 ILCS 5/22-101) (from Ch. 108 1/2, par. 22-101)
Sec. 22-101. Retirement Plan for Chicago Transit Authority Employees.
(a) There shall be established and maintained by the Authority created by
the "Metropolitan Transit Authority Act", approved April 12, 1945, as
amended, (referred to in this Section as the "Authority") a financially sound pension and retirement system adequate to
provide for all payments when due under such established system or as
modified from time to time by ordinance of the Chicago Transit Board or collective bargaining agreement. For
this purpose, the Board must make contributions to the established system as required under this Section and may make any additional contributions provided for by Board ordinance or collective bargaining agreement. The participating employees shall make
such periodic payments to the established system as required under this Section and may make any additional contributions provided for
by
Board ordinance or collective bargaining agreement. Provisions
shall be made by the Board for all officers, except those who first become members on or after January 1, 2012, and employees of
the Authority appointed pursuant to the "Metropolitan Transit Authority
Act" to become, subject to reasonable rules and regulations, participants
of the pension or retirement system with uniform rights,
privileges, obligations and status as to the class in which such officers
and employees belong. The terms, conditions and provisions of any pension
or retirement system or of any amendment or modification thereof affecting
employees who are members of any labor organization may be established,
amended or modified by agreement with such labor organization, provided the terms, conditions and provisions must be consistent with this Act, the annual funding levels for the retirement system established by law must be met and the benefits paid to future participants in the system may not exceed the benefit ceilings set for future participants under this Act and the contribution levels required by the Authority and its employees may not be less than the contribution levels established under this Act.
(b) The Board of Trustees shall consist of 11 members appointed as follows: (i) 5 trustees shall be appointed by the Chicago Transit Board; (ii) 3 trustees shall be appointed by an organization representing the highest number of Chicago Transit Authority participants; (iii) one trustee shall be appointed by an organization representing the second-highest number of Chicago Transit Authority participants; (iv) one trustee shall be appointed by the recognized coalition representatives of participants who are not represented by an organization with the highest or second-highest number of Chicago Transit Authority participants; and (v) one trustee shall be selected by the Regional Transportation Authority Board of Directors, and the trustee shall be a professional fiduciary who has experience in the area of collectively bargained pension plans. Trustees shall serve until a successor has been appointed and qualified, or until resignation, death, incapacity, or disqualification. Any person appointed as a trustee of the board shall qualify by taking an oath of office that he or she will diligently and honestly administer the affairs of the system and will not knowingly violate or willfully permit the violation of any of the provisions of law applicable to the Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of the Illinois Pension Code. Each trustee shall cast individual votes, and a majority vote shall be final and binding upon all interested parties, provided that the Board of Trustees may require a supermajority vote with respect to the investment of the assets of the Retirement Plan, and may set forth that requirement in the Retirement Plan documents, by-laws, or rules of the Board of Trustees. Each trustee shall have the rights, privileges, authority, and obligations as are usual and customary for such fiduciaries. The Board of Trustees may cause amounts on deposit in the Retirement Plan to be invested in those investments that are permitted investments for the investment of moneys held under any one or more of the pension or retirement systems of the State, any unit of local government or school district, or any agency or instrumentality thereof. The Board, by a vote of at least two-thirds of the trustees, may transfer investment management to the Illinois State Board of Investment, which is hereby authorized to manage these investments when so requested by the Board of Trustees.
Notwithstanding any other provision of this Article or any law to the contrary, any person who first becomes a member of the Chicago Transit Board on or after January 1, 2012 shall not be eligible to participate in this Retirement Plan. (c) All individuals who were previously participants in the Retirement Plan for Chicago Transit Authority Employees shall remain participants, and shall receive the same benefits established by the Retirement Plan for Chicago Transit Authority Employees, except as provided in this amendatory Act or by subsequent legislative enactment or amendment to the Retirement Plan. For Authority employees hired on or after the effective date of this amendatory Act of the 95th General Assembly, the Retirement Plan for Chicago Transit Authority Employees shall be the exclusive retirement plan and such employees shall not be eligible for any supplemental plan, except for a deferred compensation plan funded only by employee contributions. For all Authority employees who are first hired on or after the effective date of this amendatory Act of the 95th General Assembly and are participants in the Retirement Plan for Chicago Transit Authority Employees, the following terms, conditions and provisions with respect to retirement shall be applicable: (1) Such participant shall be eligible for an | ||
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(2) Such participant shall be eligible for a reduced | ||
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(3) For the purpose of determining the retirement | ||
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(d) From the effective date of this amendatory Act through December 31, 2008, all participating employees shall contribute to the Retirement Plan in an amount not less than 6% of compensation, and the Authority shall contribute to the Retirement Plan in an amount not less than 12% of compensation.
(e)(1) Beginning January 1, 2009 the Authority shall make contributions to the Retirement Plan in an amount equal to twelve percent (12%) of compensation and participating employees shall make contributions to the Retirement Plan in an amount equal to six percent (6%) of compensation. These contributions may be paid by the Authority and participating employees on a payroll or other periodic basis, but shall in any case be paid to the Retirement Plan at least monthly.
(2) For the period ending December 31, 2040, the amount paid by the Authority in any year with respect to debt service on bonds issued for the purposes of funding a contribution to the Retirement Plan under Section 12c of the Metropolitan Transit Authority Act, other than debt service paid with the proceeds of bonds or notes issued by the Authority for any year after calendar year 2008, shall be treated as a credit against the amount of required contribution to the Retirement Plan by the Authority under subsection (e)(1) for the following year up to an amount not to exceed 6% of compensation paid by the Authority in that following year.
(3) By September 15 of each year beginning in 2009 and ending on December 31, 2039, on the basis of a report prepared by an enrolled actuary retained by the Plan, the Board of Trustees of the Retirement Plan shall determine the estimated funded ratio of the total assets of the Retirement Plan to its total actuarially determined liabilities. A report containing that determination and the actuarial assumptions on which it is based shall be filed with the Authority, the representatives of its participating employees, the Auditor General of the State of Illinois, and the Regional Transportation Authority. If the funded ratio is projected to decline below 60% in any year before 2040, the Board of Trustees shall also determine the increased contribution required each year as a level percentage of payroll over the years remaining until 2040 using the projected unit credit actuarial cost method so the funded ratio does not decline below 60% and include that determination in its report. If the actual funded ratio declines below 60% in any year prior to 2040, the Board of Trustees shall also determine the increased contribution required each year as a level percentage of payroll during the years after the then current year using the projected unit credit actuarial cost method so the funded ratio is projected to reach at least 60% no later than 10 years after the then current year and include that determination in its report. Within 60 days after receiving the report, the Auditor General shall review the determination and the assumptions on which it is based, and if he finds that the determination and the assumptions on which it is based are unreasonable in the aggregate, he shall issue a new determination of the funded ratio, the assumptions on which it is based and the increased contribution required each year as a level percentage of payroll over the years remaining until 2040 using the projected unit credit actuarial cost method so the funded ratio does not decline below 60%, or, in the event of an actual decline below 60%, so the funded ratio is projected to reach 60% by no later than 10 years after the then current year. If the Board of Trustees or the Auditor General determine that an increased contribution is required to meet the funded ratio required by the subsection, effective January 1 following the determination or 30 days after such determination, whichever is later, one-third of the increased contribution shall be paid by participating employees and two-thirds by the Authority, in addition to the contributions required by this subsection (1).
(4) For the period beginning 2040, the minimum contribution to the Retirement Plan for each fiscal year shall be an amount determined by the Board of Trustees of the Retirement Plan to be sufficient to bring the total assets of the Retirement Plan up to 90% of its total actuarial liabilities by the end of 2059. Participating employees shall be responsible for one-third of the required contribution and the Authority shall be responsible for two-thirds of the required contribution. In making these determinations, the Board of Trustees shall calculate the required contribution each year as a level percentage of payroll over the years remaining to and including fiscal year 2059 using the projected unit credit actuarial cost method. A report containing that determination and the actuarial assumptions on which it is based shall be filed by September 15 of each year with the Authority, the representatives of its participating employees, the Auditor General of the State of Illinois and the Regional Transportation Authority. If the funded ratio is projected to fail to reach 90% by December 31, 2059, the Board of Trustees shall also determine the increased contribution required each year as a level percentage of payroll over the years remaining until December 31, 2059 using the projected unit credit actuarial cost method so the funded ratio will meet 90% by December 31, 2059 and include that determination in its report. Within 60 days after receiving the report, the Auditor General shall review the determination and the assumptions on which it is based and if he finds that the determination and the assumptions on which it is based are unreasonable in the aggregate, he shall issue a new determination of the funded ratio, the assumptions on which it is based and the increased contribution required each year as a level percentage of payroll over the years remaining until December 31, 2059 using the projected unit credit actuarial cost method so the funded ratio reaches no less than 90% by December 31, 2059. If the Board of Trustees or the Auditor General determine that an increased contribution is required to meet the funded ratio required by this subsection, effective January 1 following the determination or 30 days after such determination, whichever is later, one-third of the increased contribution shall be paid by participating employees and two-thirds by the Authority, in addition to the contributions required by subsection (e)(1).
(5) Beginning in 2060, the minimum contribution for each year shall be the amount needed to maintain the total assets of the Retirement Plan at 90% of the total actuarial liabilities of the Plan, and the contribution shall be funded two-thirds by the Authority and one-third by the participating employees in accordance with this subsection.
(f) The Authority shall take the steps necessary to comply with Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, to permit the pick-up of employee contributions under subsections (d) and (e) on a tax-deferred basis.
(g) The Board of Trustees shall certify to the Governor, the General Assembly, the Auditor General, the Board of the Regional Transportation Authority, and the Authority at least 90 days prior to the end of each fiscal year the amount of the required contributions to the retirement system for the next retirement system fiscal year under this Section. The certification shall include a copy of the actuarial recommendations upon which it is based. In addition, copies of the certification shall be sent to the Commission on Government Forecasting and Accountability and the Mayor of Chicago.
(h)(1) As to an employee who first becomes entitled to a retirement
allowance commencing on or after November 30, 1989, the
retirement allowance shall be the amount determined in
accordance with the following formula: (A) One percent (1%) of his "Average Annual | ||
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(B) One and seventy-five hundredths percent (1.75%) | ||
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Provided, however that: (2) As to an employee who first becomes entitled to a retirement
allowance commencing on or after January 1, 1993, the retirement
allowance shall be the amount determined in accordance with the
following formula: (A) One percent (1%) of his "Average Annual | ||
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(B) One and eighty hundredths percent (1.80%) of his | ||
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Provided, however that: (3) As to an employee who first becomes entitled to a retirement
allowance commencing on or after January 1, 1994, the retirement
allowance shall be the amount determined in accordance with the
following formula: (A) One percent (1%) of his "Average Annual | ||
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(B) One and eighty-five hundredths percent (1.85%) of | ||
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Provided, however that: (4) As to an employee who first becomes entitled to a retirement
allowance commencing on or after January 1, 2000, the retirement
allowance shall be the amount determined in accordance with the
following formula: (A) One percent (1%) of his "Average Annual | ||
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(B) Two percent (2%) of his "Average Annual | ||
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Provided, however that: (5) As to an employee who first becomes entitled to a retirement
allowance commencing on or after January 1, 2001, the
retirement allowance shall be the amount determined in
accordance with the following formula: (A) One percent (1%) of his "Average Annual | ||
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(B) Two and fifteen hundredths percent (2.15%) of his | ||
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The changes made by this amendatory Act of the 95th General Assembly, to the extent that they affect the rights or privileges of Authority employees that are currently the subject of collective bargaining, have been agreed to between the authorized representatives of these employees and of the Authority prior to enactment of this amendatory Act, as evidenced by a Memorandum of Understanding between these representatives that will be filed with the Secretary of State Index Department and designated as "95-GA-C05". The General Assembly finds and declares that those changes are consistent with 49 U.S.C. 5333(b) (also known as Section 13(c) of the Federal Transit Act) because of this agreement between authorized representatives of these employees and of the Authority, and that any future amendments to the provisions of this amendatory Act of the 95th General Assembly, to the extent those amendments would affect the rights and privileges of Authority employees that are currently the subject of collective bargaining, would be consistent with 49 U.S.C. 5333(b) if and only if those amendments were agreed to between these authorized representatives prior to enactment. (i) Early retirement incentive plan; funded ratio.
(1) Beginning on the effective date of this Section, | ||
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(2) For the purposes of this Section, the Funded | ||
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(j) Nothing in this amendatory Act of the 95th General Assembly shall impair the rights or privileges of Authority employees under any other law.
(k) Any individual who, on or after August 19, 2011 (the effective date of Public Act 97-442), first becomes a participant of the Retirement Plan shall not be paid any of the benefits provided under this Code if he or she is convicted of a felony relating to, arising out of, or in connection with his or her service as a participant. This subsection (k) shall not operate to impair any contract or vested right acquired before August 19, 2011 (the effective date of Public Act 97-442) under any law or laws continued in this Code, and it shall not preclude the right to refund. (Source: P.A. 97-442, eff. 8-19-11; 97-609, eff. 1-1-12; 97-813, eff. 7-13-12.)
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(40 ILCS 5/22-101B) Sec. 22-101B. Health Care Benefits. (a) The Chicago Transit Authority (hereinafter referred to in this Section as the "Authority") shall take all actions lawfully available to it to separate the funding of health care benefits for retirees and their dependents and survivors from the funding for its retirement system. The Authority shall endeavor to achieve this separation as soon as possible, and in any event no later than July 1, 2009. (b) Effective 90 days after the effective date of this amendatory Act of the 95th General Assembly, a Retiree Health Care Trust is established for the purpose of providing health care benefits to eligible retirees and their dependents and survivors in accordance with the terms and conditions set forth in this Section 22-101B. The Retiree Health Care Trust shall be solely responsible for providing health care benefits to eligible retirees and their dependents and survivors upon the exhaustion of the account established by the Retirement Plan for Chicago Transit Authority Employees pursuant to Section 401(h) of the Internal Revenue Code of 1986, but no earlier than January 1, 2009 and no later than July 1, 2009.
(1) The Board of Trustees shall consist of 7 members | ||
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Any person appointed as a trustee of the board shall | ||
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Each trustee shall cast individual votes, and a | ||
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(2) The Board of Trustees shall establish and | ||
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(2.5) The Board of Trustees may also establish and | ||
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(3) The Retiree Health Care Trust shall be | ||
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(i) The Board of Trustees may cause amounts on | ||
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(ii) The Board of Trustees shall establish and | ||
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(iii) The Board of Trustees shall make an annual | ||
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(A) the actuarial present value of projected | ||
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(B) the actuarial present value of projected | ||
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(C) the reserve required by subsection | ||
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(D) an assessment of whether the actuarial | ||
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If the actuarial present value of projected | ||
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(iv) The Auditor General shall review the report | ||
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(A) In the event of a projected shortfall, if | ||
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(B) In the event of a projected surplus, if | ||
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(C) The Board of Trustees shall submit an | ||
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(4) For any retiree who first retires effective on or | ||
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(5) Effective January 1, 2009, the aggregate amount | ||
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(6) Effective January 1, 2022, all employees of the | ||
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(7) No earlier than January 1, 2009 and no later than | ||
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(Source: P.A. 102-415, eff. 1-1-22.) |
(40 ILCS 5/22-102) (from Ch. 108 1/2, par. 22-102)
Sec. 22-102.
Local Mass Transit District Pension Fund.
The Board of Trustees created under the "Local Mass Transit District
Act", approved July 21, 1959, as amended, may undertake the continuation
of employee pension and retirement funds of an existing public or privately
owned transportation system or systems that have been acquired by the
Board, upon such terms and conditions as the Board shall determine.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-103)
Sec. 22-103. Regional Transportation Authority and related pension plans. (a) As used in this Section: "Affected pension plan" means a defined-benefit pension plan supported in whole or in part by employer contributions and maintained by the Regional Transportation Authority, the Suburban Bus Division, or the Commuter Rail Division, or any combination thereof, under the general authority of the Regional Transportation Authority Act, including but not limited to any such plan that has been established under or is subject to a collective bargaining agreement or is limited to employees covered by a collective bargaining agreement. "Affected pension plan" does not include any pension fund or retirement system subject to Section 22-101 of this Section. "Authority" means the Regional Transportation Authority created under
the Regional Transportation Authority Act.
"Contributing employer" means an employer that is required to make contributions to an affected pension plan under the terms of that plan. "Funding ratio" means the ratio of an affected pension plan's assets to the present value of its actuarial liabilities, as determined at its latest actuarial valuation in accordance with applicable actuarial assumptions and recommendations.
"Under-funded pension plan" or "under-funded" means an affected pension plan that, at the time of its last actuarial valuation, has a funding ratio of less than 90%.
(b) The contributing employers of each affected pension plan have a general duty to make the required employer contributions to the affected pension plan in a timely manner in accordance with the terms of the plan. A contributing employer must make contributions to the affected pension plan as required under this subsection and, if applicable, subsection (c); a contributing employer may make any additional contributions provided for by the board of the employer or collective bargaining agreement. (c) In the case of an affected pension plan that is under-funded on January 1, 2009 or becomes under-funded at any time after that date, the contributing employers shall contribute to the affected pension plan, in addition to all amounts otherwise required, amounts sufficient to bring the funding ratio of the affected pension plan up to 90% in accordance with an amortization schedule adopted jointly by the contributing employers and the trustee of the affected pension plan. The amortization schedule may extend for any period up to a maximum of 50 years and shall provide for additional employer contributions in substantially equal annual amounts over the selected period. If the contributing employers and the trustee of the affected pension plan do not agree on an appropriate period for the amortization schedule within 6 months of the date of determination that the plan is under-funded, then the amortization schedule shall be based on a period of 50 years. In the case of an affected pension plan that has more than one contributing employer, each contributing employer's share of the total additional employer contributions required under this subsection shall be determined: (i) in proportion to the amounts, if any, by which the respective contributing employers have failed to meet their contribution obligations under the terms of the affected pension plan; or (ii) if all of the contributing employers have met their contribution obligations under the terms of the affected pension plan, then in the same proportion as they are required to contribute under the terms of that plan. In the case of an affected pension plan that has only one contributing employer, that contributing employer is responsible for all of the additional employer contributions required under this subsection. If an under-funded pension plan is determined to have achieved a funding ratio of at least 90% during the period when an amortization schedule is in force under this Section, the contributing employers and the trustee of the affected pension plan, acting jointly, may cancel the amortization schedule and the contributing employers may cease making additional contributions under this subsection for as long as the affected pension plan retains a funding ratio of at least 90%.
(d) Beginning January 1, 2009, if the Authority fails to pay to an affected pension fund within 30 days after it is due (i) any employer contribution that it is required to make as a contributing employer, (ii) any additional employer contribution that it is required to pay under subsection (c), or (iii) any payment that it is required to make under Section 4.02a or 4.02b of the Regional Transportation Authority Act, the trustee of the affected pension fund shall promptly so notify the Commission on Government Forecasting and Accountability, the Mayor of Chicago, the Governor, and the General Assembly. (e) For purposes of determining employer contributions, assets, and actuarial liabilities under this subsection, contributions, assets, and liabilities relating to health care benefits shall not be included.
(f) This amendatory Act of the 94th General Assembly does not affect or impair the right of any contributing employer or its employees to collectively bargain the amount or level of employee contributions to an affected pension plan, to the extent that the plan includes employees subject to collective bargaining.
(g) Any individual who, on or after August 19, 2011 (the effective date of Public Act 97-442), first becomes a participant of an affected pension plan shall not be paid any of the benefits provided under this Code if he or she is convicted of a felony relating to, arising out of, or in connection with his or her service as a participant. This subsection shall not operate to impair any contract or vested right acquired before August 19, 2011 (the effective date of Public Act 97-442) under any law or laws continued in this Code, and it shall not preclude the right to refund. (h) Notwithstanding any other provision of this Article or any law to the contrary, a person who, on or after January 1, 2012 (the effective date of Public Act 97-609), first becomes a director on the Suburban Bus Board, the Commuter Rail Board, or the Board of Directors of the Regional Transportation Authority shall not be eligible to participate in an affected pension plan. (Source: P.A. 97-442, eff. 8-19-11; 97-609, eff. 1-1-12; 97-813, eff. 7-13-12.) |
(40 ILCS 5/22-104) Sec. 22-104. Delinquent contributions; deduction from payments of State funds to the employer. If an employer of participants in a pension fund or retirement plan subject to this Division fails to transmit contributions required of it by that pension fund or retirement plan by December 31st of the year in which such contributions are due, the pension fund or retirement plan may, after giving notice to the employer, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in payment year 2016, deduct and remit to that pension fund or retirement plan the certified amounts from payments of State funds to the employer. The State Comptroller may not deduct from any payments of State funds to the employer more than the amount of delinquent payments certified to the State Comptroller by the employer.
(Source: P.A. 99-8, eff. 7-9-15.) |
(40 ILCS 5/22-105) Sec. 22-105. Application to Regional Transportation Authority Board members. This Code does not apply to any individual who first becomes a member of the Regional Transportation Authority Board on or after the effective date of this amendatory Act of the 98th General Assembly with respect to service on that Board.
(Source: P.A. 98-108, eff. 7-23-13.) |
(40 ILCS 5/22-106) Sec. 22-106. Application to Suburban Bus Board members. This Code does not apply to any individual who first becomes a member of the Suburban Bus Board on or after the effective date of this amendatory Act of the 98th General Assembly with respect to service on that Board.
(Source: P.A. 98-108, eff. 7-23-13.) |
(40 ILCS 5/22-107) Sec. 22-107. Application to Commuter Rail Board members. This Code does not apply to any individual who first becomes a member of the Commuter Rail Board on or after the effective date of this amendatory Act of the 98th General Assembly with respect to service on that Board.
(Source: P.A. 98-108, eff. 7-23-13.) |
(40 ILCS 5/22-108) Sec. 22-108. Application to Chicago Transit Authority Board members. This Code does not apply to any individual who first becomes a member of the Chicago Transit Authority Board on or after the effective date of this amendatory Act of the 98th General Assembly with respect to service on that Board.
(Source: P.A. 98-108, eff. 7-23-13.) |
(40 ILCS 5/Art. 22 Div. 2 heading) DIVISION 2.
FIRE INSURANCE
PATROLMEN PENSION FUNDS
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(40 ILCS 5/22-201) (from Ch. 108 1/2, par. 22-201)
Sec. 22-201.
Creation of fund.
In each city, village and incorporated town, whose population exceeds
50,000 and having a paid fire insurance patrol, boards of underwriters may
create a pension fund, in the manner prescribed in this Division, for the
benefit of disabled or retired fire insurance patrolmen, and of the widows
and children of deceased patrolmen.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-202) (from Ch. 108 1/2, par. 22-202)
Sec. 22-202.
Terms defined.
The terms used in this Division for the purposes of this Division shall
have the meanings ascribed to them in Sections 22-203 to 22-205,
inclusive, except when the context otherwise requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-203) (from Ch. 108 1/2, par. 22-203)
Sec. 22-203.
Fire Insurance Patrolmen Pension Fund Act of the Illinois
Municipal Code. "Fire Insurance Patrolmen Pension Fund Act of the Illinois
Municipal Code": Division 10 of Article 10 of the Illinois Municipal Code.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-204) (from Ch. 108 1/2, par. 22-204)
Sec. 22-204.
Board of Trustees.
"Board of Trustees": Board of Trustees of the fire insurance
patrolmen's pension fund authorized by this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-205) (from Ch. 108 1/2, par. 22-205)
Sec. 22-205.
Fund.
"Fund": The fire insurance patrolmen's pension fund
authorized by this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-206) (from Ch. 108 1/2, par. 22-206)
Sec. 22-206.
Persons to whom Division applies.
This Division shall apply to all persons who are now or shall hereafter
become members of the uniformed force of such fire insurance patrol, and
all such persons shall be eligible to the benefits secured by this
Division, but shall not apply to any other employees of the said fire
insurance patrol.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-207) (from Ch. 108 1/2, par. 22-207)
Sec. 22-207.
Retirement pension.
Whenever any member of the said fire insurance patrol has served 25
years or more in such patrol (the last 2 years of which shall have been
continuous), has reached the age of 50 or 55, and is no longer in the
service as a member of the fire insurance patrol, he shall be entitled to a
monthly pension as follows:
(a) If he is age 50 or over but less than 55 and has retired or has been
discharged for any cause, a monthly pension equal to 40% of the wages or
salary received by him at the date of retirement or discharge;
(b) If he is age 55 or over and has retired or has been discharged for
any cause, a monthly pension equal to 50% of the wages or salary received
by him at the date of retirement or discharge.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-208) (from Ch. 108 1/2, par. 22-208)
Sec. 22-208.
Widow's and children's pension.
Whenever any active member of the fire insurance patrol or any former
member of the fire insurance patrol who has retired on pension under the
provisions of this Division dies his widow or his child or children under
16 years of age shall be entitled to pension payable monthly as follows:
(a) To the widow of a deceased active member, 12 1/2% of the salary of
such member at the time of death, but not less than $30;
(b) To the widow of a deceased member who has retired under the
provisions of this Division, and which widow was married to such member at
the date of his retirement 25% of the pension such member was receiving at
the time of death, but not less than $30;
(c) To any child or children under 16 years of age of a deceased active
member or a deceased member who had retired under the provisions of this
Division, $25 until such child or children shall reach the age of 16.
Payment for the benefit of such minor child or children may be made to such
person or persons and in such manner as the Board of Trustees shall in
their sole discretion determine.
The amount of such pensions or payments shall be uniform with respect to
all widows of deceased patrolmen, and with respect to all children of
deceased patrolmen.
The amount of any future payments to be made to widows and children of
deceased patrolmen who were receiving payments prior to July 7, 1955, shall
be determined in accordance with this section.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-209) (from Ch. 108 1/2, par. 22-209)
Sec. 22-209.
Pension ceases on marriage.
No pension provided for in Section 22-208 shall be paid to any widow of
a deceased member or former member of a fire insurance patrol after she has
remarried after the decease of such member or former member.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-210) (from Ch. 108 1/2, par. 22-210)
Sec. 22-210.
Duty disability pension.
Whenever a member of the fire insurance patrol, while in the performance
of his duty, becomes physically or mentally permanently disabled by reason
of service in such fire insurance patrol, to such an extent as to
necessitate his retirement from service in the fire insurance patrol, he
shall be paid from the fund monthly a pension of 50% of his monthly salary
or wages at date of retirement.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-211) (from Ch. 108 1/2, par. 22-211)
Sec. 22-211.
Ordinary disability benefit.
Whenever a member of the fire insurance patrol, while in the service of
the fire insurance patrol, becomes physically or mentally permanently
disabled from any cause not necessarily connected with his service in the
fire insurance patrol, so as to necessitate his retirement from service in
the fire insurance patrol, he may be retired by the Board of Trustees, and
he may, in the discretion of said Board be paid monthly from the fund such
sum as the said Board of Trustees shall determine, not exceeding a sum
equal to 50% of his monthly wages or salary at the date of retirement.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-212) (from Ch. 108 1/2, par. 22-212)
Sec. 22-212.
Physical examination.
No person shall receive any pension or benefits under Sections 22-210
or 22-211 of this Division unless he is found to be physically or mentally
permanently disabled upon examination by a medical officer designated by
the Board of Trustees.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-213) (from Ch. 108 1/2, par. 22-213)
Sec. 22-213.
Duties after retirement.
The Board of Trustees, upon recommendation of the chief officer of the
fire insurance patrol shall have the power to assign former members of the
fire insurance patrol who are receiving a retirement pension under the
provisions of this Division to the performance of light duties in said
patrol without additional compensation.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-214) (from Ch. 108 1/2, par. 22-214)
Sec. 22-214.
Reduction of pension.
The pension or benefits provided for in Sections 22-207, 22-210 or
22-211 may be reduced by the Board of Trustees in an amount not exceeding
50% of any sums which a retired member of a fire insurance patrol receives
under any Act of Congress or under a statute of any state providing for old
age benefits, social security, unemployment insurance or other like
benefits but excluding any payments of the United States or any State by
reason of military or naval service.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-215) (from Ch. 108 1/2, par. 22-215)
Sec. 22-215.
Financing.
The Board of Trustees shall assess each member of the fire insurance
patrol not to exceed 5% of his wages or salary, which assessment shall be
uniform as to all members of the patrol. The amount so assessed shall be
deducted and withheld by the Board of Underwriters, or the committee of the
Board of Underwriters having charge of the fire insurance patrol, from the
pay of each such member of the patrol at such times as the members of the
patrol shall be paid their wages or salaries, and shall be at once paid
into the pension fund.
The Patrol Committee of the Board of Underwriters of such city, village
or incorporated town, shall also set aside and pay into such pension fund
not to exceed 10% of all moneys paid to such Board of Underwriters by
insurance companies for sustaining the fire insurance patrol. Such
percentage shall not be less than twice the percentage of the assessment
against the members of the patrol.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-216) (from Ch. 108 1/2, par. 22-216)
Sec. 22-216.
Board created.
A board, composed of the president, vice president, secretary,
treasurer, manager, chairman of the patrol committee, vice-chairman of the
patrol committee and the chief officer of the fire insurance patrol of the
Board of Underwriters of such city, village or incorporated town, shall be
and constitute the Board of Trustees to control and manage the fund. The
Board shall be known as "The Board of Trustees of the Patrolmen's Pension
Fund".
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-217) (from Ch. 108 1/2, par. 22-217)
Sec. 22-217.
Board officers.
The Board of Trustees shall elect from their number a president, a
secretary and a treasurer, and may elect from their number a vice
president, an assistant secretary and an assistant treasurer. The vice
president, assistant secretary and assistant treasurer, if elected, shall
have all the powers and duties provided in this Division for the president,
secretary and treasurer, respectively.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-218) (from Ch. 108 1/2, par. 22-218)
Sec. 22-218.
Powers and duties of Board.
The Board shall have the powers and duties stated in Section 22-219 to
22-225, inclusive, in addition to the other powers and duties provided in
this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-219) (from Ch. 108 1/2, par. 22-219)
Sec. 22-219.
To control and manage fund.
To have exclusive control and management of the pension fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-220) (from Ch. 108 1/2, par. 22-220)
Sec. 22-220.
To determine benefits.
To hear and decide all applications for pensions or benefits under this
Division. The decision of the board of trustees on applications shall be
final and conclusive and not subject to review or reversal except by the
board of trustees upon application for that purpose.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-221) (from Ch. 108 1/2, par. 22-221)
Sec. 22-221.
To accept gifts.
To receive gifts and donations to the fund from all sources, including
rewards in moneys, fees, gifts and emoluments, that shall be paid or given
for or on account of extraordinary services by the fire insurance patrol or
any member thereof (except when allowed to be retained by such member or
given to endow a medal or other permanent or competitive award). Also to
accept any gifts or donations of money from the Board of Underwriters from
any of its funds in addition to the sums required to be paid into the
pension fund under this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-222) (from Ch. 108 1/2, par. 22-222)
Sec. 22-222.
To invest funds.
To invest funds coming into their hands in the name of the Board of
Trustees of the patrolmen's pension fund, in such investments as may be
made by a trustee of a trust fund under the laws of the State of Illinois
and as may be approved by the Board of Trustees. No personal liability of
the trustees or any of them shall attach by reason of any such investments
made in good faith.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as now or hereafter
amended. The limitations set forth in such Section 6 shall be applicable
only at the time of investment and shall not require the liquidation of
any investment at any time.
(Source: P.A. 83-541.)
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(40 ILCS 5/22-223) (from Ch. 108 1/2, par. 22-223)
Sec. 22-223.
To retain principal of investments.
Except as provided in Section 22-232 the Board of Trustees shall have
the right and power, in their sole discretion, to provide that the
principal of invested funds shall be held intact and that each beneficiary
of the benefit, pensions and payments provided in this Division shall
receive only such equal percentage of such monthly benefits, pensions and
payments as the income from the invested funds and the moneys received in
accordance with Section 22-215 of this Division, shall be sufficient to
provide. Nothing in this Section shall be held to require an increase in
any benefit, pension or payment provided for in this Division.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-224) (from Ch. 108 1/2, par. 22-224)
Sec. 22-224.
To keep records.
To keep full and complete records of all its meetings and proceedings.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-225) (from Ch. 108 1/2, par. 22-225)
Sec. 22-225.
To make rules.
To make all necessary rules and regulations for the discharge of its
duties.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-226) (from Ch. 108 1/2, par. 22-226)
Sec. 22-226.
Deposit of moneys and property.
All moneys, securities and other property belonging to the fund shall be
deposited in such depository as the Board of Trustees shall order, and
shall be at all times subject to the control of such board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-227) (from Ch. 108 1/2, par. 22-227)
Sec. 22-227.
Treasurer.
The treasurer of the Board of Trustees shall keep books and accounts
concerning the fund in the manner prescribed by the Board of Trustees. The
books and accounts shall always be subject to the inspection of the Board
of Trustees or any member thereof.
The treasurer and assistant treasurer, if one be elected, shall each,
within 10 days after his election or appointment, execute a bond to the
Board of Underwriters, with good and sufficient security, in such penal sum
as the Board of Trustees shall direct, to be approved by the Board of
Trustees, conditioned for the faithful performance of the duties of his
office and that he will safely keep, hold and truly account for all moneys
and property which may come into his hands as such treasurer or assistant
treasurer, and that upon the expiration of his term he will surrender and
turn over to his successor all unexpended moneys and all property which may
have come into his hands as treasurer or assistant treasurer of such funds.
Such bonds shall be filed in the office of the Board of Underwriters. In
case of a breach of the same or of the conditions thereof suit may be
brought on the same in the name of such Board of Underwriters for the use
of such Board or of any person or persons injured by such breach.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-228) (from Ch. 108 1/2, par. 22-228)
Sec. 22-228.
Moneys - How paid.
All moneys ordered to be paid from the pension fund shall be paid by the
treasurer or assistant treasurer of said Board of Trustees only upon
warrants signed by the president or vice president of the said Board and
countersigned by the secretary or assistant secretary thereof. No warrant
shall be drawn except by order of the Board of Trustees and duly entered in
the records of the proceedings of the Board of Trustees.
In case the pension fund or any part thereof shall be deposited in any
savings and loan association or bank or loaned, all interest on money
which may be paid on account of any
such loan or deposit shall belong to and constitute a part of such fund.
The treasurer shall have no power to loan or deposit such fund or any part
thereof unless authorized by the Board of Trustees.
(Source: P.A. 83-541.)
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(40 ILCS 5/22-229) (from Ch. 108 1/2, par. 22-229)
Sec. 22-229.
Annual report of trustees.
During the month of January in each year the Board of Trustees shall
make a report to the Board of Underwriters of the condition of the pension
fund as of the close of the preceding calendar year.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-230) (from Ch. 108 1/2, par. 22-230)
Sec. 22-230.
Fund exempt from seizure.
No portion of the pension fund shall, either before or after its order
of distribution by such Board of Trustees to such disabled or retired
members of the fire insurance patrol or to the surviving spouse or such
minor child or children of the deceased, be held, seized, taken, subject
to, or detained or levied on by virtue of any judgment, interlocutory or
other order, or any process or proceeding whatever of or issued
by any court of this State for the payment or satisfaction in whole or in
part of any debt, damages, claim, demand or judgment against such member or
surviving spouse or minor child or children but the fund shall be kept
secure and distributed for the purpose of pensioning the persons named in
this Division, and for no other purpose whatsoever.
(Source: P.A. 83-346.)
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(40 ILCS 5/22-231) (from Ch. 108 1/2, par. 22-231)
Sec. 22-231.
Discontinuance of fire insurance patrol - Trustees of fund.
If the Board of Underwriters of any such city, village or incorporated
town, at any time after creating a pension fund as provided in the Fire
Insurance Patrolmen's Pension Fund Act of the Illinois Municipal Code or
this Division, shall discontinue the operation or sustaining of a paid fire
insurance patrol, the persons constituting the Board of Trustees of such
pension fund shall continue as such trustees until the second annual
meeting of the Board of Underwriters following the effective date of
discontinuing the operation of the paid fire insurance patrol. At the
second annual meeting of the Board of Underwriters following the
discontinuance of a paid fire insurance patrol, trustees shall be selected
composed of the president, secretary and treasurer of the Board of
Underwriters, and 4 trustees to be appointed by the President of the Board
of Underwriters and confirmed by the directors of the Board of
Underwriters, all of whom shall be officers of insurance companies who are
or have been contributors to the Patrolmen's Pension Fund. All of such
trustees shall have their principal place of business in the city, village
or incorporated town in which the Board of Underwriters has its principal
office. The president, secretary and treasurer of the Board of
Underwriters, acting as trustees, shall continue as trustees during their
respective terms of office as officers of the Board of Underwriters. The 4
trustees appointed by the President of the Board of Underwriters shall
serve for terms of 2 years and until their successors are appointed and
confirmed. Vacancies occurring by reason of death, disability or
resignation of a trustee shall be filled in the same manner in which the 4
trustees, not officers of the Board of Underwriters, are selected.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-232) (from Ch. 108 1/2, par. 22-232)
Sec. 22-232.
Discontinuance of fund.
If the Board of Underwriters of any such city, village or incorporated
town, at any time after creating a pension fund as provided in the Fire
Insurance Patrolmen's Pension Fund Act of the Illinois Municipal Code or
this Division shall discontinue the operation or sustaining of a paid fire
insurance patrol and shall thereafter determine that there is, and if in
fact there is, no person entitled to receive a benefit, pension or payment
thereunder, and that there is no person eligible to receive, or who may
become eligible in the future to receive such benefit, pension or payment
thereunder, then the Board of Underwriters, with the consent of the Board
of Trustees of the patrolmen's pension fund, may terminate the pension fund.
Thereupon the treasurer of the pension fund, upon the order of the Board
of Trustees, shall refund and pay to all members of the uniformed force of
the firemen's insurance patrol in the service at the time of such
discontinuance of the operation or sustaining of such fire insurance
patrol, from the pension fund, such sums of money as they have actually
contributed to the pension fund, if there shall then be sufficient money in
the fund to pay the same.
If there be not sufficient money then in the fund to make refund of such
payments in full, then such reimbursement shall be made to each of such
members in such equal proportion as the funds available shall be sufficient
to make. After such refund of all such payments has been made as aforesaid,
all moneys, securities and property of every kind in or belonging to the
pension fund shall be turned over to the Board of Underwriters, as and to
become the sole property of the Board of Underwriters, for its own sole use
and benefit.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 22 Div. 3 heading) DIVISION 3.
POLICEMEN AND FIREMEN DEATH ALLOWANCE,
MEDICAL CARE AND HOSPITAL TREATMENT
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(40 ILCS 5/22-301) (from Ch. 108 1/2, par. 22-301)
Sec. 22-301.
Payments to families or dependents of policemen and firemen
killed or fatally injured.
The corporate authorities of any city or village by general ordinance
may provide for the payment of an allowance of money to the family or
dependents of any policemen or firemen employed by such city or village in
case he is killed or fatally injured while in the performance of his
duties. Such allowance shall not exceed $15,000. It shall be payable only
in case the injury arises from violence or other accidental cause and death
is directly due to such cause and results within one year after such injury.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-302) (from Ch. 108 1/2, par. 22-302)
Sec. 22-302.
Beneficiaries of allowance.
Any payment of death allowance made hereunder shall be made as follows:
(a) If there is a widow and minor child or children, then in equal parts
to the widow and minor child or children;
(b) If there is no widow but there is a minor child or children, then to
the minor child or children in equal parts;
(c) If there is no minor child or children but there is a widow, then
the entire allowance to the widow;
(d) If there is no widow or minor child, then to the next of kin
actually dependent on the deceased at the time of his death.
Provided, that in paying any allowance aforesaid any parent that is
actually dependent on the deceased at the time of his death shall be
entitled to share in such benefits on the same basis as the minor children
of the deceased; and a female unmarried child of full age or a male child
of full age that is physically or mentally disabled and wholly dependent on
the deceased for support at the time of his death, shall be entitled to the
use and benefit of such allowance in the same manner and to the same degree
as a minor child.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-303) (from Ch. 108 1/2, par. 22-303)
Sec. 22-303.
Conservation of allowance.
The corporate authorities of any such city or village may make provision
by ordinance for the conservation of the money paid under the foregoing
sections of this Division and the income therefrom through the means of a
duly accredited National or State bank acting as trustee of the fund
created thereby and making payments therefrom at stated intervals to such
family or dependents.
In the event any such corporate authorities shall make provision by
ordinance for the conservation of the money by the naming of a State or
National bank to act as trustee, such ordinance may specify the general
classes of securities, including tax warrants, in which such trustee may
invest such fund. It shall be unlawful for the trustee to invest the same
in any other class of securities except such as are so specified.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-304) (from Ch. 108 1/2, par. 22-304)
Sec. 22-304.
Source of payment.
The allowance of money to be paid in accordance with the foregoing
provisions of this Division may be paid:
(a) from a fund created and maintained out of the corporate revenues of
such city or village in such manner as the corporate authorities may
direct, or
(b) by means of group insurance taken out by such city or village for
the benefit of the families or dependents of policemen and firemen in a
regularly accredited legal reserve life insurance company with premiums to
be paid out of the corporate revenues of the city or village.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-305) (from Ch. 108 1/2, par. 22-305)
Sec. 22-305.
Certificate of clerk or other officer.
Upon the death of a policeman or fireman who is killed or fatally
injured while in the performance of his duty, the city or village clerk, as
the case may be, or any officer of such city or village authorized by the
corporate authorities of such city or village to act in lieu of such clerk,
shall make out a certificate in such form as may be prescribed by
ordinance. Such certificate shall set forth the facts which caused the
death, and shall have attached the certificate of the attending physician
or the chief health officer of the city or village, stating that such death
was the result of violence or accident. The certificates shall be filed
with the treasurer of the city or village if the allowance is to be paid
out of the corporate fund set apart for that purpose. If insurance has been
taken out the certificates shall be forwarded to the life insurance company
liable therefor. Upon the presentation of said certificates, payment shall
be made out of such fund or by such life insurance company, as the case may
be, to the executor or administrator of the estate of such policeman or
fireman, or to the bank acting as the trustee for such purpose if such
trustee has been provided for by ordinance.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-306) (from Ch. 108 1/2, par. 22-306)
Sec. 22-306.
The corporate authorities of any city or the village may provide by
ordinance that in case of an accident resulting in an injury to or death of
a policeman or fireman in the employ of such city or village while in the
performance of his duties, the officer at the head of the department or
such other officer as may be designated may secure and provide proper
medical care and hospital treatment for any such policeman or fireman. The
city or village may incur the expense aforesaid and appropriate and pay for
the same. For a city with a population of more than 1,000,000 inhabitants, an ordinance providing policeman and fireman medical care and hospital treatment under this Section shall provide:
(1) a requirement to notify an injured employee | ||
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(2) a requirement that the city provide the injured | ||
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If any such accident shall be due to the negligence of some person or
corporation that would be liable in damages therefor, the city or village
may recover any expense of medical care and hospital treatment expended by
it from the person or corporation liable.
The corporate authorities of any city or village may provide by
ordinance for the payment by said city or village of all or any part of the
cost of a hospital plan or medical-surgical plan, or both, for the
dependents of any policeman or fireman killed in the line of duty or who
dies as the result of duty connected injuries, and for any policeman or
fireman and his dependents, provided his retirement is caused by a duty
injury or occupational disease disability and for any policeman and fireman
and his dependents, provided he has reached compulsory retirement age or
has served in the employ of the city or village for at least 20 years.
"Dependent" as used in this paragraph shall mean the wife of the policeman
or fireman and his minor children less than 20 years of age and living at
home and dependent on the policeman or fireman for support.
This amendatory Act of the 102nd General Assembly applies only to a city that is a home rule unit with a population of more than 1,000,000 inhabitants and is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State. This amendatory Act of 1971 does not apply to any city or village which
is a home rule unit.
(Source: P.A. 102-202, eff. 7-30-21.)
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(40 ILCS 5/22-306.1) (from Ch. 108 1/2, par. 22-306.1)
Sec. 22-306.1.
(a) If a physician, medical facility or other provider
of medical treatment receives notice from a municipality that, pursuant to
an ordinance enacted under Section 22-306 or under its home rule powers,
the municipality is willing to assume liability for all or part of the
medical expenses of a policeman or firefighter injured in the line of duty,
and if the provider consents to such assumption of liability by the
municipality for all or part of the cost of the medical services being
provided, then the policeman or firefighter shall thereupon cease to be
liable to the provider for any charges for which liability has been assumed
by the municipality, and the provider may not thereafter attempt to collect
such charges from the policeman or firefighter, nor from the family or estate thereof.
(b) With respect to any liability assumed by a municipality under
subsection (a) of this Section, interest on the unpaid amount thereof shall
begin to accrue 90 days after receipt of proof of claim by the municipality
(or its agent or insurer if it so directs), at the rate established for
judgments in the Code of Civil Procedure.
(c) Pursuant to paragraphs (h) and (i) of Section 6 of Article VII of
the Illinois Constitution, this Section specifically denies and limits the
exercise by a home rule unit of any power which is inconsistent herewith,
and all existing laws and ordinances which are inconsistent with this
Section are hereby superseded. This Section does not preempt the
concurrent exercise by home rule units of powers consistent herewith.
(Source: P.A. 84-845.)
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(40 ILCS 5/22-307) (from Ch. 108 1/2, par. 22-307)
Sec. 22-307.
Common law rights barred.
Whenever any city or village enacts an ordinance pursuant to this
Division, no common law right to recover damages against such
city or village for injury or death sustained by any policeman or fireman
while engaged in the line of his duty as such policeman or fireman, other
than the payment of the allowances of money and of the medical care and
hospital treatment provided in such ordinance, shall be available to any
policeman or fireman who is covered by the provisions of such ordinance, or
to anyone wholly or partially dependent upon such policeman or fireman, or
to the legal representative of the estate of such policeman or fireman, or
to anyone who would otherwise be entitled to recover damages for such injury or
death. Nothing in this Division 3 relieves any municipality with a
population under 500,000 of its duties under the Workers' Compensation Act or
the Workers' Occupational Diseases Act. Nothing in this Division 3 prevents
any policeman or fireman in a municipality with a population under 500,000 from
recovery under the Workers' Compensation Act or the Workers' Occupational
Diseases Act.
If any action against such city or village to enforce a common law right to recover damages for negligently causing the injury or
death of any policeman or fireman is pending, for trial or on appeal, at
the time this Division shall come in force or is so pending at the time
such ordinance is enacted, the amount of any award or allowance of money
made pursuant to such ordinance shall not be paid while such action is so
pending and shall be reduced, before payment, by the amount of any judgment
obtained against such city or village in such pending action; or such
allowance of money, if already paid, together with all moneys expended
pursuant to such ordinance for medical care and hospital expenses, may be
set off against such judgment, either in such pending action or through
other appropriate action by such city or village.
(Source: P.A. 90-525, eff. 11-12-97.)
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(40 ILCS 5/22-308) (from Ch. 108 1/2, par. 22-308)
Sec. 22-308.
Action by city or village against third party.
Where the death of a policeman or fireman for which an award or
allowance of money is payable by any city or village under any ordinance
enacted pursuant to the provisions of this Division, was not proximately
caused by the negligence of such city or village, and was caused under
circumstances creating a legal liability for damages on the part of some
person other than such city or village, then legal proceedings may be taken
against such other person to recover damages notwithstanding such award or
allowance by such city or village. If the action against such other person
is brought by the personal representative of such deceased policeman or
fireman, and judgment is obtained and paid, or settlement is made with such
other person, either with or without suit, then the amount received by such
representative shall be deducted from such award or allowance. Such city or
village may have or claim a lien upon any judgment or fund out of which
such representative might be compensated from such third party, for any
moneys paid out of such award or allowance previous to such judgment or
settlement.
Where action is brought by the representative of a deceased policeman or
fireman, the personal representative shall forthwith notify such city or
village by personal service or registered mail, of such fact and of the
name of the court in which such suit is brought, filing proof of such
notice in such action. Such city or village may, at any time thereafter,
join in said action upon its own motion, and proper orders of court after
hearing and judgment shall be made for the protection of such city or
village. No release or settlement of claim for damages by reason of such
death, and no satisfaction of judgment in such proceedings, shall be valid
without the written consent of such city or village or of any board of
trustees authorized by ordinance to administer the fund herein created,
excepting that such consent shall not be required where such city or
village has been fully indemnified or protected by Court order.
Where the personal representative of such deceased policeman or fireman
fails to institute a proceedings against such third person at any time
prior to 3 months before said action would be barred at law, such city or
village may in its own name, or in the name of the personal representative,
commence a proceeding against such other person for the recovery of damages
on account of such death. From any amount so recovered such city or village
shall pay to the personal representative of such deceased policeman or
fireman all sums collected from such other person by judgment or otherwise
in excess of the amount of any award or allowance of money paid or to be
paid under this Division, and such costs, attorney's fees and reasonable
expenses as may be incurred by such city or village in making such
collection or in enforcing such liability. No payment shall be made by such
city or village on account of any award or allowance of money made under
the provisions of any ordinance enacted pursuant to this Division, during
the pendency, for trial or on appeal, of such suit for damages unless such
city or village is fully protected in such suit by Court order.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 22 Div. 4 heading) DIVISION 4.
NATURE OF PENSION FUNDS -
CONTRIBUTIONS AND PAYMENTS
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(40 ILCS 5/22-401) (from Ch. 108 1/2, par. 22-401)
Sec. 22-401.
Pension fund - body politic and corporate.
Any annuity and benefit fund, annuity and retirement fund or retirement
system, heretofore or hereafter created by the legislature of the State of
Illinois for the benefit of employees of the State or of any county, city,
town, municipal corporation or body politic and corporate, located in the
State of Illinois and functioning pursuant to legislative enactment, to
which the State or any such county, city, town, municipal corporation or
body politic and corporate is required to contribute by way of tax levies,
appropriations from the corporate fund, or otherwise, and by whatever name
such annuity and benefit fund, annuity and retirement fund or retirement
system may be called, is hereby declared to be a pension fund and to be a
body politic and corporate under the title specified in the law creating
such fund, limited to the performance of the duties set out in the law
creating such fund. The trustees of each fund are hereby declared to be the
officials of such body politic and corporate, vested with the powers and
duties set out in said law.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-402) (from Ch. 108 1/2, par. 22-402)
Sec. 22-402.
Purpose of fund.
Each such pension fund is hereby declared to be created in the public
interest and for the general welfare of the State, and pursuant to the
governmental powers of the State, separate and apart from the corporate
purposes of the State, and of any county, city, town, municipal corporation
or body politic and corporate in the State, and in which such pension fund
is empowered to operate by virtue of the terms and provisions of the law
creating such pension fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-403) (from Ch. 108 1/2, par. 22-403)
Sec. 22-403.
Tax levy - nature of obligation.
Any tax heretofore or hereafter levied for the benefit or purposes of
any such pension fund by the tax-levying body authorized by the law
creating such fund to levy such tax, and any payment or contribution to
such fund made by the State, or by any county, city, town, municipal
corporation or body politic and corporate located in the State, is hereby
declared to be so levied or so contributed for governmental purposes under
such law, and not for the corporate purposes of such tax-levying body, or
of the State, or of any county, city, town, municipal corporation or body
politic and corporate of the State, irrespective of the nature or character
of the duties performed or services rendered by any employee member of any
such pension fund. This section shall not apply to any tax levies
heretofore adjudicated by the Supreme Court of this State. Any pension
payable under any law hereinbefore referred to shall not be construed to be
a legal obligation or debt of the State, or of any county, city, town,
municipal corporation or body politic and corporate located in the State,
other than the pension fund concerned, but shall be held to be solely an
obligation of such pension fund, unless otherwise specifically provided in
the law creating such fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-404) (from Ch. 108 1/2, par. 22-404)
Sec. 22-404.
Obligation for expenditures.
Expenditures made and expenses incurred in connection with the
administration of any pension fund shall not be construed to be a debt
imposed upon the State or upon any county, city, town, municipal
corporation or body politic and corporate of the State, to be paid out of
taxes levied for corporate purposes. Such expenditures and expenses shall
be held to be the obligation of such pension fund exclusively, as a body
politic and corporate, unless otherwise specifically provided in the law
creating such pension fund.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-405) (from Ch. 108 1/2, par. 22-405)
Sec. 22-405.
Employees of two or more municipal corporations.
Employees of two or more municipal corporations having the same
territorial limits and the same taxpayers, or of two or more bodies politic
and corporate having the same territorial limits, may be included in and
become members of any pension fund operating in any one of such municipal
corporations, or of such bodies politic and corporate, and shall be
entitled to all the benefits of such pension fund, whenever the terms and
provisions of the law creating such pension fund shall so provide.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 22 Div. 5 heading) DIVISION 5.
PUBLIC EMPLOYEE PENSION
FUND DIVISION IN DEPARTMENT OF INSURANCE
(Repealed by P.A. 90-507, eff. 8-22-97)
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(40 ILCS 5/22-501) (from Ch. 108 1/2, par. 22-501)
Sec. 22-501.
(Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.1) (from Ch. 108 1/2, par. 22-501.1)
Sec. 22-501.1.
(Repealed).
(Source: P.A. 80-906. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.2) (from Ch. 108 1/2, par. 22-501.2)
Sec. 22-501.2.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.3) (from Ch. 108 1/2, par. 22-501.3)
Sec. 22-501.3.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.4) (from Ch. 108 1/2, par. 22-501.4)
Sec. 22-501.4.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.5) (from Ch. 108 1/2, par. 22-501.5)
Sec. 22-501.5.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.6) (from Ch. 108 1/2, par. 22-501.6)
Sec. 22-501.6.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.7) (from Ch. 108 1/2, par. 22-501.7)
Sec. 22-501.7.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.8) (from Ch. 108 1/2, par. 22-501.8)
Sec. 22-501.8.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.9) (from Ch. 108 1/2, par. 22-501.9)
Sec. 22-501.9.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.10) (from Ch. 108 1/2, par. 22-501.10)
Sec. 22-501.10.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.11) (from Ch. 108 1/2, par. 22-501.11)
Sec. 22-501.11.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.12) (from Ch. 108 1/2, par. 22-501.12)
Sec. 22-501.12.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.13) (from Ch. 108 1/2, par. 22-501.13)
Sec. 22-501.13.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-501.14) (from Ch. 108 1/2, par. 22-501.14)
Sec. 22-501.14.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-502) (from Ch. 108 1/2, par. 22-502)
Sec. 22-502.
(Repealed).
(Source: Laws 1963, p. 1035. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-503) (from Ch. 108 1/2, par. 22-503)
Sec. 22-503.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-503.1) (from Ch. 108 1/2, par. 22-503.1)
Sec. 22-503.1.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-503.2) (from Ch. 108 1/2, par. 22-503.2)
Sec. 22-503.2.
(Repealed).
(Source: P.A. 83-861. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-504) (from Ch. 108 1/2, par. 22-504)
Sec. 22-504.
(Repealed).
(Source: Laws 1963, p. 161. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-505) (from Ch. 108 1/2, par. 22-505)
Sec. 22-505.
(Repealed).
(Source: P.A. 87-757. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-506) (from Ch. 108 1/2, par. 22-506)
Sec. 22-506.
(Repealed).
(Source: P.A. 83-334. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-507) (from Ch. 108 1/2, par. 22-507)
Sec. 22-507.
(Repealed).
(Source: P.A. 77-2560. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-508) (from Ch. 108 1/2, par. 22-508)
Sec. 22-508.
(Repealed).
(Source: Laws 1963, p. 161. Repealed P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/22-509) (from Ch. 108 1/2, par. 22-509)
Sec. 22-509.
(Repealed).
(Source: P.A. 81-691. Repealed by P.A. 90-507, eff. 8-22-97.)
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(40 ILCS 5/Art. 22 Div. 6 heading) DIVISION 6.
PENSION RIGHTS OF EMPLOYEES
IN THE MILITARY OR NAVAL SERVICE
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(40 ILCS 5/22-601) (from Ch. 108 1/2, par. 22-601)
Sec. 22-601.
Preservation of pension rights.
The provisions of "An Act authorizing municipal corporations to preserve
civil service and pension rights of their employees inducted into or
enlisting in the land or naval forces of the United States, or ordered to
active duty in the military or naval forces of the State", approved March
26, 1941, and all subsequent amendments and modifications thereof, to the
extent applicable, shall apply to preserve pension rights of employees
subject to this Code.
(Source: Laws 1963, p. 2034.)
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(40 ILCS 5/Art. 22 Div. 7 heading) DIVISION 7.
ADDITIONAL PENSION PROVISION
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(40 ILCS 5/22-701) (from Ch. 108 1/2, par. 22-701)
Sec. 22-701.
Employee with service as elected official.
(a) In addition to all the other powers now granted by law, the city
council of any city of more than 500,000 inhabitants shall, by ordinance,
provide for the payment of a pension from the corporate fund of such city
to any city employee who has served the city in an elective capacity for 18
or more years and who subsequently has served such city as an employee for
a period of time which when added to the period of his service as an
elective official aggregates a total service of 30 or more years, and who
is not eligible for participation in any established pension fund or any
established annuity and benefit fund, upon such employee reaching age 65 or
more and whose service shall be terminated by resignation or otherwise.
(b) The pension herein authorized under paragraph (a) shall be an annual
pension of 60% of the annual salary or compensation paid to such employee
during the last year of his service, provided that such annual pension
shall not exceed $1800.
(c) The pension herein authorized to be granted shall be paid to the
person entitled in the same manner as his salary was paid during his last
period of service by appropriations from moneys in the corporate fund of
such city in the annual appropriation bill.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 22 Div. 8 heading) DIVISION 8. COMMISSION ON GOVERNMENT
FORECASTING AND ACCOUNTABILITY
(Source: P.A. 96-328, eff. 8-11-09.) |
(40 ILCS 5/22-803)
Sec. 22-803. Commission on Government Forecasting and Accountability. The
Illinois State Board of
Investment and all pension funds and retirement systems subject to this Code
shall cooperate with the
Commission on Government Forecasting and Accountability
and shall upon request provide
the Commission with such information and other assistance as it may find
necessary or useful for the performance of its duties.
(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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(40 ILCS 5/Art. 22 Div. 9 heading) DIVISION 9.
GENERAL
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(40 ILCS 5/22-901) (from Ch. 108 1/2, par. 22-901)
Sec. 22-901.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to each
Division of this Article as though such provisions were fully set forth in
each Division of this Article as a part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22-901.1) (from Ch. 108 1/2, par. 22-901.1)
Sec. 22-901.1.
Actuarial tables defined.
Tabular listings of assumed rates of decrement representing such factors
as death, disability, separation from service, and ages of retirement,
according to sex and ages of members of the retirement systems, together
with mathematical functions derived from rates of probability combined with
an interest discount factor that may be adopted by a board of trustees or
retirement board upon recommendation of a qualified actuary based upon the
experience of the pension fund or retirement system.
(Source: P.A. 77-1200.)
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(40 ILCS 5/22-901.2) (from Ch. 108 1/2, par. 22-901.2)
Sec. 22-901.2.
Adjustment of retirement annuity under reversionary annuity
option.
Any member or participant of a pension fund or retirement system covered
by the provisions of this Code who elects a reversionary annuity option
shall have his retirement annuity otherwise payable to him reduced by the
actuarial equivalent of the amount required to provide the reversionary
annuity according to the applicable ages of the member or participant and
the reversionary annuity beneficiary.
The term "actuarial equivalent" shall mean an annuity or benefit of
equal value to an annuity or benefit or accumulated contributions when
computed according to the actuarial tables in effect for the pension fund
or retirement system.
(Source: P.A. 77-1468.)
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(40 ILCS 5/Art. 22 Div. 10 heading) DIVISION 10.
REPORTING TO THE GENERAL ASSEMBLY
ON THE STATE-ADMINISTERED RETIREMENT SYSTEMS
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(40 ILCS 5/22-1001) (from Ch. 108 1/2, par. 22-1001)
Sec. 22-1001. Submission of information. By March 1 of each year, the
retirement systems created under Articles 2, 14, 15, 16 and 18 of this Code
shall each submit the following information to the Commission on Government Forecasting and Accountability:
(1) the most recent actuarial valuation computed | ||
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(2) a full disclosure of the provisions of the plan; | ||
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(3) the State's share of the amount necessary to fund | ||
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(4) a five-year history of the system's liabilities, | ||
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(5) the July 1 market value of system assets and a | ||
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(6) measures of financial status, including ten-year | ||
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For plan years ending prior to December 31, 1984, the historical data
submitted by the retirement systems pursuant to items (4) and (6) above may
be based on a cost method other than the projected unit credit actuarial
cost method. In submitting the data, the retirement systems shall specify
the method used.
(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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(40 ILCS 5/22-1002) (from Ch. 108 1/2, par. 22-1002)
Sec. 22-1002. Within 3 days of the Governor's submission of the State
Budget, the Director of the
Governor's Office of Management and Budget shall provide the
Commission on Government Forecasting and Accountability
with the recommendations for budgeted annual appropriations for
each system as specified in the Governor's budget recommendations.
(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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(40 ILCS 5/22-1003) (from Ch. 108 1/2, par. 22-1003)
Sec. 22-1003. The Commission on Government Forecasting and Accountability shall receive the information specified in Section 22-1001
and Section 22-1002 of this Act. Commission staff shall examine the
information and submit a report of the analysis thereof to the General
Assembly. The report shall also include either an analysis of the effect of
the different economic assumptions used by the 5 systems, or supplemental
valuations using the same economic assumptions for all 5 systems. The
Commission shall compare (1) each system's required actuarial funding computed
using the projected unit credit actuarial cost method, and (2) the
required State contribution levels established by Public Act 88-593. The report shall also identify the amount
of the required funding for each system expected to come from (i) budgeted
annual appropriations and (ii) continuing appropriations under the State
Pension Funds Continuing Appropriation Act.
The Commission shall also compute multiple year projections showing the
effect on system liabilities and the State's annual cost (1) if the systems
were to be funded according to actuarial recommendations that
the Commission deems reasonable, (2) if each system were to be funded
according to recommendations made by the system's actuary, and (3) if the
systems were to be funded according to the required State contribution levels
established by Public Act 88-593;
including (i) comparisons of State costs with projected benefit payments,
payroll, and the general funds budget, and (ii) comparisons of unfunded
liabilities, funded ratios, solvency tests, and projected reserves. The
Commission may conduct additional analyses and projections as it deems useful.
(Source: P.A. 93-632, eff. 2-1-04; 93-1067, eff. 1-15-05.)
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(40 ILCS 5/22-1004)
Sec. 22-1004. Commission on Government Forecasting and Accountability report on Articles 3 and 4 funds. Each odd numbered year, the Commission on Government Forecasting and Accountability shall analyze data submitted by the Public Pension Division of the Department of Insurance pertaining to the pension systems established under Article 3 and Article 4 of this Code. The Commission shall issue a formal report during such years, the content of which is, to the extent practicable, to be similar in nature to that required under Section 22-1003. In addition to providing aggregate analyses of both systems, the report shall analyze the fiscal status and provide forecasting projections for selected individual funds in each system. To the fullest extent practicable, the report shall analyze factors that affect each selected individual fund's unfunded liability and any actuarial gains and losses caused by salary increases, investment returns, employer contributions, benefit increases, change in assumptions, the difference in employer contributions and the normal cost plus interest, and any other applicable factors. In analyzing net investment returns, the report shall analyze the assumed investment return compared to the actual investment return over the preceding 10 fiscal years. The Public Pension Division of the Department of Insurance shall provide to the Commission any assistance that the Commission may request with respect to its report under this Section.
(Source: P.A. 103-426, eff. 8-4-23.) |
(40 ILCS 5/Art. 22A heading) ARTICLE 22A. INVESTMENT BOARD
(Source: P.A. 98-463, eff. 8-16-13.) |
(40 ILCS 5/22A-101) (from Ch. 108 1/2, par. 22A-101)
Sec. 22A-101.
Establishment.
The Illinois State Board of Investment is created with authority to
manage, invest and reinvest, the reserves, funds, assets, securities and
moneys of any pension fund, as provided in this Article, or education
fund as provided by law, and to perform
such other duties as may from time to time be authorized by the General
Assembly.
(Source: P.A. 84-1127.)
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(40 ILCS 5/22A-102) (from Ch. 108 1/2, par. 22A-102)
Sec. 22A-102.
Definitions.
For the purposes of this Article, the following words and phrases shall
have the meaning ascribed to them unless the context requires otherwise.
(Source: P.A. 76-1829.)
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(40 ILCS 5/22A-103) (from Ch. 108 1/2, par. 22A-103)
Sec. 22A-103.
"Board": The Illinois State Board of Investment.
(Source: P.A. 76-1829.)
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(40 ILCS 5/22A-104) (from Ch. 108 1/2, par. 22A-104)
Sec. 22A-104.
Retirement System.
"Retirement System": Any pension fund or retirement system governed by
Articles 1 to 18, inclusive, of the "Illinois Pension Code", approved March
18, 1963, as amended.
(Source: P.A. 77-611.)
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(40 ILCS 5/22A-105) (from Ch. 108 1/2, par. 22A-105)
Sec. 22A-105.
Pension Fund.
"Pension Fund": The reserves, funds, assets, securities, monies and
property of any pension fund or retirement system.
(Source: P.A. 77-611.)
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(40 ILCS 5/22A-105.1) (from Ch. 108 1/2, par. 22A-105.1)
Sec. 22A-105.1.
"Education fund":
The monies, funds, reserves,
assets, securities, and property of the Illinois Bank Examiners' Education
Foundation held in the Illinois Bank Examiners' Education Fund in the State Treasury.
(Source: P.A. 84-1127.)
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(40 ILCS 5/22A-106) (from Ch. 108 1/2, par. 22A-106)
Sec. 22A-106. "Manage": To invest, reinvest, exchange and to perform all investment
functions with regard to reserves, funds, assets, securities and moneys
which the board is authorized to invest, and to preserve and protect such
reserves, funds, assets, securities and moneys, including, but not limited
to, authority to vote any stocks, bonds or other securities and to give
general or special proxies or powers of attorney with or without power of
substitution, except that the authority to vote proxies is subject to
Section 22A-113.4. This term shall not include any functions, duties and
responsibilities incident to the operation and administration of pension
funds or education fund other than that of investments.
(Source: P.A. 103-468, eff. 8-4-23.)
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(40 ILCS 5/22A-107) (from Ch. 108 1/2, par. 22A-107)
Sec. 22A-107.
Invest.
"Invest": To acquire, invest, reinvest, exchange or retain property held
for a pension fund or education fund, sell and manage the reserves,
funds, securities, moneys
or assets of any pension fund, retirement system or education
fund in accordance with this
Article.
(Source: P.A. 84-1127.)
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(40 ILCS 5/22A-108) (from Ch. 108 1/2, par. 22A-108)
Sec. 22A-108.
Investment.
"Investment": Any property acquired by the board for a pension fund,
any retirement system or education fund.
(Source: P.A. 84-1127.)
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(40 ILCS 5/22A-108.1) (from Ch. 108 1/2, par. 22A-108.1)
Sec. 22A-108.1.
Investment Advisor:
Any person or business entity
which provides investment advice to the Board on a personalized basis and with an
understanding of the policies and goals of the Board. "Investment Advisor" shall
not include any person or business entity which provides statistical or general
market research data available for purchase or use by others.
(Source: P.A. 79-1171.)
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(40 ILCS 5/22A-109) (from Ch. 108 1/2, par. 22A-109)
Sec. 22A-109. Membership of board. The board shall consist of the following
members: (1) Five trustees appointed by the Governor with the | ||
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(2) The Treasurer. (3) The Comptroller, who shall represent the State | ||
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(4) The Chairperson of the General Assembly | ||
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(5) The Chairperson of the Judges Retirement System | ||
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The appointive
members shall serve for terms of 4 years except that the terms of office of the
original appointive members pursuant to this amendatory Act of the 96th General Assembly shall be as follows: One member for a term of 1
year; 1 member for a term of 2 years; 1 member for a term of 3 years; and 2 members for a term of 4 years. Vacancies among the appointive
members shall be filled for unexpired terms by appointment in
like manner as for original appointments, and appointive members shall
continue in office until their successors have been appointed and have
qualified.
Notwithstanding any provision of this Section to the contrary, the term of office of each trustee of the Board appointed by the Governor who is sitting on the Board on the effective date of this amendatory Act of the 96th General Assembly is terminated on that effective date. A trustee sitting on the board on the effective date of this amendatory Act of the 96th General Assembly may not hold over in office for more than 60 days after the effective date of this amendatory Act of the 96th General Assembly. Nothing in this Section shall prevent the Governor from making a temporary appointment or nominating a trustee holding office on the day before the effective date of this amendatory Act of the 96th General Assembly. Each person appointed to membership shall qualify by taking an oath of
office before the Secretary of State stating that he will diligently and
honestly administer the affairs of the board and will not violate or knowingly
permit the violation of any provisions of this Article.
Members of the board shall receive no salary for service on the board but
shall be reimbursed for travel expenses incurred while on business for the
board according to the standards in effect for members of the Commission on Government Forecasting and Accountability.
A majority of the members of the board shall constitute a quorum. The
board shall elect from its membership, biennially, a Chairman, Vice Chairman
and a Recording Secretary. These officers, together with one other member
elected by the board, shall constitute the executive committee. During the
interim between regular meetings of the board, the executive committee shall
have authority to conduct all business of the board and shall report such
business conducted at the next following meeting of the board for ratification.
No member of the board shall have any interest in any brokerage fee,
commission or other profit or gain arising out of any investment made by
the board. This paragraph does not preclude ownership by any member of any
minority interest in any common stock or any corporate obligation in which
investment is made by the board.
The board shall contract for a blanket fidelity bond in the penal sum of
not less than $1,000,000.00 to cover members of the board, the director and
all other employees of the board conditioned for the faithful performance of
the duties of their respective offices, the premium on which shall be paid by
the board.
(Source: P.A. 99-708, eff. 7-29-16; 100-1148, eff. 12-10-18.)
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(40 ILCS 5/22A-110) (from Ch. 108 1/2, par. 22A-110)
Sec. 22A-110.
Administration.
The board shall appoint a director to administer
the affairs of the board subject to and under its supervision and fix his
compensation. The Board may appoint investment officers and fix their compensation.
With the approval of the board, the director may employ such personnel,
professional or clerical, as may be desirable and fix their compensation.
The appointment and compensation of the personnel other than the director
and investment officers shall be subject to the Personnel Code.
The board may adopt such rules and regulations (not inconsistent with this
Article) as in its judgment are desirable to implement and properly administer
this Article. A copy thereof shall be filed with the Secretary of State.
The board may exercise any of the powers granted to boards of trustees
of pension funds under Sections 1-107 or 1-108 of this Act, and may by resolution
provide for the indemnification of its members and any of its directors,
officers, advisors or employees in a manner consistent with those Sections.
No such resolution adopted on or after September 27, 1977 shall be deemed
invalid for the reason that it was adopted prior to the effective date of
this amendatory Act of 1983.
An office for meetings of the board and for administrative personnel shall
be established at any suitable place within the State as may be selected
by the board. All books and records of the board shall be kept in such
office.
(Source: P.A. 83-974.)
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(40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111)
Sec. 22A-111.
The Board shall manage the investments of any pension
fund, retirement system, or education fund for the purpose
of obtaining a total return on
investments for the long term. It also shall perform such other functions as
may be assigned or directed by the General Assembly.
The authority of the board to manage pension fund investments and the
liability shall begin when there has been a physical transfer of the pension
fund investments to the board and placed in the custody of the board's custodian.
The authority of the board to manage monies from the education fund for
investment and the liability of the board shall begin when there has been a
physical transfer of education fund investments to the board and placed in
the custody of the board's custodian.
The board may not delegate its management functions, but it may, but is not required to, arrange
to compensate for personalized investment advisory service
for any or all investments under its control with any national or state bank
or trust company authorized to do a trust business and domiciled in Illinois,
other financial institution organized under the laws of Illinois, or an
investment advisor who is qualified under the Federal Investment Advisers Act of 1940
and is registered under the Illinois Securities Law of 1953. Nothing contained
herein shall prevent the Board from subscribing to general investment research
services available for purchase or use by others. The Board shall also have
the authority to compensate for accounting services.
This Section shall not be construed to prohibit the Illinois State Board of Investment from directly investing pension assets in public market investments, private investments, real estate investments, or other investments authorized by this Code. (Source: P.A. 99-708, eff. 7-29-16; 100-201, eff. 8-18-17.)
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(40 ILCS 5/22A-111.1) (from Ch. 108 1/2, par. 22A-111.1)
Sec. 22A-111.1.
Public Employees Deferred Compensation Plan.
The Board shall also have the responsibilities imposed on it by Article
24 of this Act in relation to a deferred compensation plan for public
employees.
(Source: P.A. 78-1277.)
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(40 ILCS 5/22A-112) (from Ch. 108 1/2, par. 22A-112)
Sec. 22A-112.
Investment authority.
The board shall have the authority
to invest funds, subject to the requirements and restrictions set forth
in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115 of this
Code.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended. The limitations set forth in such Section 6 shall be
applicable only at the time of investment and shall not require the liquidation
of any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate
ownership by the board. The board may direct the registration of
securities in its own name or in the name of a nominee created for the
express purpose of registration of securities by a national or state
bank or trust company authorized to conduct a trust business in the State of Illinois.
Investments shall be carried at cost or at a value
determined in accordance with generally accepted accounting principles
and accounting procedures approved
by the board.
The value of investments held by any pension fund, retirement system
or education fund in one or more commingled investment accounts shall be
determined in accordance with generally accepted accounting principles.
(Source: P.A. 90-19, eff. 6-20-97.)
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(40 ILCS 5/22A-113) (from Ch. 108 1/2, par. 22A-113)
Sec. 22A-113.
Transfer of securities and investment functions.
(a) As soon as possible or practicable following the enactment of this
Article and prior to July 1, 1970, the trustees of the State Employees'
Retirement System, the General Assembly Retirement System and the Judges
Retirement System, shall transfer to this board for management and
investment all of their securities or for which commitments have been made,
and all funds, assets or moneys representing permanent or temporary
investments, or cash reserves maintained for the purpose of obtaining
income thereon.
(b) The board of trustees or retirement board of any pension fund or
retirement system electing to come under the authority of the Illinois
State Board of Investment for the management of its investments and the
performance of investment functions previously performed by such board of
that pension fund or retirement system shall effect a transfer of
securities and other assets thereof not later than the first day of the 4th
month next following the date of such election after completion of an audit
by a certified public accountant of such securities and other assets as
authorized by the Illinois State Board of Investment and approved by the
Auditor General of the State, the expense of which shall be assumed by the
pension fund or retirement system. Upon such transfer, the authority of the
Illinois State Board of Investment in the case of such pension fund or
retirement system is effective. These transfers shall be receipted for in
detail by the Chairman and director of the board.
(c) The board of trustees or retirement board of any pension fund or
retirement system authorized under the Illinois Pension Code to participate
in any commingled investment fund or funds established and managed by the
Illinois State Board of Investment under this Article may invest in such
commingled investment fund or funds upon written notice to the Illinois
State Board of Investment. The board of trustees of the Illinois Bank
Examiners' Education Foundation is authorized to participate in any
commingled investment fund or funds established and managed by the Illinois
State Board of Investment upon providing written notice to the Illinois
State Board of Investment. Any participation in a commingled fund and the
management thereof shall be in accordance with the governing law and the
rules, policies and directives of the Illinois State Board of Investment.
(Source: P.A. 84-1127.)
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(40 ILCS 5/22A-113.1) (from Ch. 108 1/2, par. 22A-113.1)
Sec. 22A-113.1. Investable funds.
Each retirement system under the management of the Illinois State Board
of Investment shall report to the board from time to time the amounts of
funds available for investment. These amounts shall be transferred
immediately to the board's custodian or the custodian's authorized agent for the account
of the board to be applied for investment by the board. Notice to the
Illinois State Board of Investment of each such transfer shall be given by
the retirement system as the transfer occurs.
(Source: P.A. 99-708, eff. 7-29-16.)
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(40 ILCS 5/22A-113.2) (from Ch. 108 1/2, par. 22A-113.2)
Sec. 22A-113.2. Custodian.
The securities, funds and other assets transferred to the Illinois State
Board of Investment or otherwise acquired by the board shall be placed in
the custody of the board's custodian. The custodian shall provide adequate safe deposit facilities therefor and hold all
such securities, funds and other assets subject to the order of the board.
As soon as may be practicable, but in no event later than December 31, 2016, the board shall appoint and retain a qualified custodian. Until a custodian has been appointed by the board, the State Treasurer shall serve as official custodian of
the board. The custodian shall furnish a corporate surety bond of such amount
as the board designates, which bond shall indemnify the board against any
loss that may result from any action or failure to act by the custodian or
any of the custodian's agents. All charges incidental to the procuring and giving of
such bond shall be paid by the board. The bond shall be in the custody of
the board.
(Source: P.A. 99-708, eff. 7-29-16.)
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(40 ILCS 5/22A-113.3) (from Ch. 108 1/2, par. 22A-113.3)
Sec. 22A-113.3. Investable funds of education foundation. The
Illinois Bank Examiners'
Education Foundation shall report to the board from time to time the
amounts of monies available for investment by the board. These amounts shall be
transferred promptly to the board's custodian or the custodian's authorized agent for the
account of the board to be applied for investment by the board. Notice to
the board of each such transfer shall be given by the Illinois Bank
Examiners' Education Foundation after the transfer occurs.
(Source: P.A. 99-708, eff. 7-29-16.)
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(40 ILCS 5/22A-113.4) (Section scheduled to be repealed on January 1, 2027) Sec. 22A-113.4. Proxy voting. (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2. (b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at least three-fifths of the members of the Board, the State Treasurer shall be authorized to manage the domestic and international proxy voting activity for shares held directly by the Board and execute required ballots on behalf of the Board. The Board's consent granted under this Section may be revoked at any time upon the affirmative vote of a majority of the members of the Board. (c) When the State Treasurer is managing any proxy voting activity in accordance with subsection (b), the following shall apply: (1) the State Treasurer shall provide the Board with (i) comprehensive proxy voting reports on a quarterly basis and as requested by the Board and (ii) access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board; and (2) the Board may provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. (d) The State Treasurer shall act as a fiduciary to the Illinois State Board of Investment with regard to all aspects of the State Treasurer's management of the proxy voting activity as provided under subsection (b). (e) With respect to this Section, and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board is exempt from any conflicting statutory or common law obligations, including any fiduciary or co-fiduciary duties under this Article and Article 1. (f) With respect to this Section and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board, its staff, and the trustees of the Board shall not be liable for any damage or suits where damages are sought for negligent or wrongful acts alleged to have been committed in connection with the management of proxy voting activity as provided for under this Section. (g) In order to facilitate the State Treasurer's proxy voting activities under this Section and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. (h) This Section is repealed on January 1, 2027.
(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/22A-113.5) Sec. 22A-113.5. Fiduciary report. On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act. The report shall: (1) describe the Board's strategy as it relates to | ||
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(2) outline the process for regular assessment across | ||
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(3) disclose how each investment manager serving as a | ||
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(4) provide a comprehensive proxy voting report; (5) provide an overview of all corporate engagement | ||
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(6) include any other information the Board deems | ||
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(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/22A-114) (from Ch. 108 1/2, par. 22A-114)
Sec. 22A-114.
Accounting.
In the management of pension and education funds
the board:
(1) may, for investment purposes, commingle all or a part of the
invested assets of one or more pension or education funds under its
jurisdiction and authority;
(2) shall carry assets of all funds at cost or a value determined in accordance with
generally accepted
accounting principles and accounting procedures approved by the board. Each investment initially transferred to the board by
a pension fund or monies transferred to the board by an education fund shall be
similarly valued except that the board may elect to place such value on any
investment conditionally in which case the amount of any later realization of
such asset in cash that is in excess of or is less than the amount so credited
shall be credited or charged to the fund that made the transfer;
(3) shall keep proper books of account which shall reflect at all times
the value of all investments held by the board for a pension fund or education
fund whether for the separate account of the fund or in a commingled fund;
(4) shall charge each pension fund or education fund with its share of all
expenses of the board (including those repayable under Section 22A-116) at
quarter-yearly periods pro rata according to the value of the investments held
for the respective funds at the beginning of the quarter or any other equitable
formula;
(5) shall charge all distributions made by the board to or for a pension
fund or education fund to the account maintained for that fund.
(Source: P.A. 90-19, eff. 6-20-97.)
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(40 ILCS 5/22A-115) (from Ch. 108 1/2, par. 22A-115)
Sec. 22A-115.
Audits and reports.
At least annually, the books, records, accounts and securities of the
board shall be audited by a certified public accountant designated by the
Auditor General of the State. The audit opinion shall be published as a
part of the annual report of the board.
For the quarterly periods ending September 30, December 31, and March
31, the board shall submit to each pension fund, retirement
system or education fund under
its jurisdiction a report embracing, among other things, the following
information: (a) a full description of the investments acquired, showing
average costs; (b) a full description of the securities sold or exchanged,
showing average proceeds or other conditions of an exchange; (c) gains or
losses realized during the period; (d) income from investments; (e)
administrative expenses of the board; and (f) the proportion of
administrative expenses allocable to each pension fund, retirement
system or education fund.
An annual report shall be prepared by the board for submission to each
pension fund, retirement system or education fund under its
jurisdiction within 6 months
after the close of each fiscal year. A fiscal year shall date from July 1
of one year to June 30 of the year next following. This report shall embody
full information concerning the results of investment operations of the
board for the year, including the foregoing information and, in addition
thereto, the following:
(a) a listing of the investments held by the board as at the end of the
year showing their book values and market values and their income yields on
market values;
(b) the amounts as determined under paragraph (a) above allocable to
each pension fund or education fund managed by the board;
(c) comments on the pertinent factors affecting the operations of the
board for the year;
(d) a review of the policies maintained by the board and any changes
therein that occurred during the year;
(e) a copy of the audited financial statements for the year;
(f) recommendations for possible changes in the law governing the
operations of the board; and
(g) a listing of the names of securities brokers and dealers dealt with
during the year showing the total amount of commissions received by each on
transactions with the board.
(Source: P.A. 84-1127.)
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(40 ILCS 5/22A-116) (from Ch. 108 1/2, par. 22A-116)
Sec. 22A-116.
(Repealed).
(Source: P.A. 76-1829. Repealed by P.A. 89-657, eff. 8-14-96.)
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(40 ILCS 5/Art. 22B heading) ARTICLE 22B. THE POLICE OFFICERS' PENSION INVESTMENT FUND
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-101) Sec. 22B-101. Establishment. The Police Officers' Pension Investment Fund is created with authority to manage the reserves, funds, assets, securities, properties, and moneys of the police pension funds created pursuant to Article 3 of this Code, all as provided in this Article.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-102) Sec. 22B-102. Definitions. For the purposes of this Article, the following words and phrases shall have the meaning ascribed to them unless the context requires otherwise.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-103) Sec. 22B-103. Fund. "Fund" means the Police Officers' Pension Investment Fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-104) Sec. 22B-104. Transferor pension fund. "Transferor pension fund" means any pension fund established pursuant to Article 3 of this Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-105) Sec. 22B-105. Participating pension fund. "Participating pension fund" means any pension fund established pursuant to Article 3 of this Code that has transferred securities, funds, assets, and moneys, and responsibility for custody and control of those securities, funds, assets, and moneys, to the Fund pursuant to Section 3-132.1.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-106) Sec. 22B-106. Pension fund assets. "Pension fund assets" means the reserves, funds, assets, securities, and moneys of any transferor pension fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-107) Sec. 22B-107. Invest. "Invest" means to acquire, invest, reinvest, exchange, or retain pension fund assets of the transferor pension funds and to sell and manage the reserves, funds, securities, moneys, or assets of the transferor pension fund, all in accordance with this Article.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-108) Sec. 22B-108. Investment advisor. "Investment advisor" means any person or business entity that provides investment advice to the Board on a personalized basis and with an understanding of the policies and goals of the Board. "Investment advisor" does not include any person or business entity that provides statistical or general market research data available for purchase or use by others.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-112) Sec. 22B-112. Transition period. "Transition period" means the period immediately following the effective date of this amendatory Act of the 101st General Assembly during which pension fund assets, and responsibility for custody and control of those assets, will be transferred from the transferor pension funds to the board, as described in Section 22B-120.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-113) Sec. 22B-113. Illinois Municipal League. "Illinois Municipal League" means the unincorporated, nonprofit, nonpolitical association of Illinois cities, villages, and incorporated towns described in Section 1-8-1 of the Illinois Municipal Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-114) Sec. 22B-114. Purpose, establishment, and governance. The Fund is established to consolidate the transferor pension funds to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring more money is available to fund pension benefits for the beneficiaries of the transferor pension funds. The transition board trustees and permanent board trustees of the Fund shall be fiduciaries for the participants and beneficiaries of the participating pension funds and shall discharge their duties with respect to the retirement system or pension fund solely in the interest of the participants and beneficiaries. Further, the transition board trustees and permanent board trustees, acting prudently and as fiduciaries, shall take all reasonable steps to ensure that all of the transferor pension funds are treated equitably and that the financial condition of one participating pension fund, including, but not limited to, pension benefit funding levels and ratios, will have no effect on the financial condition of any other transferor pension fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-115) Sec. 22B-115. Board of Trustees of the Fund. (a) No later than one month after the effective date of this amendatory Act of the 101st General Assembly or as soon thereafter as may be practicable, the Governor shall appoint, by and with the advice and consent of the Senate, a transition board of trustees consisting of 9 members as follows: (1) three members representing municipalities who are | ||
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(2) three members representing participants and who | ||
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(3) two members representing beneficiaries and who | ||
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(4) one member who is a representative of the | ||
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The transition board members shall serve until the initial permanent board members are elected and qualified. The transition board of trustees shall select the chairperson of the transition board of trustees from among the trustees for the duration of the transition board's tenure. (b) The permanent board of trustees shall consist of 9 members as follows: (1) Three members who are mayors, presidents, chief | ||
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(2) Three members who are participants of | ||
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(3) Two members who are beneficiaries of | ||
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(4) One member recommended by the Illinois | ||
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The permanent board of trustees shall select the chairperson of the permanent board of trustees from among the trustees for a term of 2 years. The holder of the office of chairperson shall alternate between a person elected or appointed under item (1) or (4) of this subsection (b) and a person elected under item (2) or (3) of this subsection (b). (c) Each trustee shall qualify by taking an oath of office before the Secretary of State or the legal counsel of the fund stating that he or she will diligently and honestly administer the affairs of the board and will not violate or knowingly permit the violation of any provision of this Article. (d) Trustees shall receive no salary for service on the board but shall be reimbursed for travel expenses incurred while on business for the board according to Article 1 of this Code and rules adopted by the board. A municipality employing a police officer who is an elected or appointed trustee of the board must allow reasonable time off with compensation for the police officer to conduct official business related to his or her position on the board, including time for travel. The board shall notify the municipality in advance of the dates, times, and locations of this official business. The Fund shall timely reimburse the municipality for the reasonable costs incurred that are due to the police officer's absence. (e) No trustee shall have any interest in any brokerage fee, commission, or other profit or gain arising out of any investment directed by the board. This subsection does not preclude ownership by any member of any minority interest in any common stock or any corporate obligation in which an investment is directed by the board. (f) Notwithstanding any provision or interpretation of law to the contrary, any member of the transition board may also be elected or appointed as a member of the permanent board. Notwithstanding any provision or interpretation of law to the contrary, any trustee of a fund established under Article 3 of this Code may also be appointed as a member of the transition board or elected or appointed as a member of the permanent board. The restriction in Section 3.1 of the Lobbyist Registration Act shall not apply to a member of the transition board appointed pursuant to item (4) of subsection (a) or to a member of the permanent board appointed pursuant to item (4) of subsection (b).
(Source: P.A. 103-506, eff. 8-4-23.) |
(40 ILCS 5/22B-116) Sec. 22B-116. Conduct and administration of elections; terms of office. (a) For the election of the permanent trustees, the transition board shall administer the initial elections and the permanent board shall administer all subsequent elections. Each board shall develop and implement such procedures as it determines to be appropriate for the conduct of such elections. For the purposes of obtaining information necessary to conduct elections under this Section, participating pension funds shall cooperate with the Fund. (b) All nominations for election shall be by petition. Each petition for a trustee shall be executed as follows: (1) for trustees to be elected by the mayors and | ||
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(2) for trustees to be elected by participants, by at | ||
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(3) for trustees to be elected by beneficiaries, by | ||
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(c) A separate ballot shall be used for each class of trustee. The board shall prepare and send ballots and ballot envelopes to the participants and beneficiaries eligible to vote in accordance with rules adopted by the board. The ballots shall contain the names of all candidates in alphabetical order. The ballot envelope shall have on the outside a form of certificate stating that the person voting the ballot is a participant or beneficiary entitled to vote. Participants and beneficiaries, upon receipt of the ballot, shall vote the ballot and place it in the ballot envelope, seal the envelope, execute the certificate thereon, and return the ballot to the Fund. The board shall set a final date for ballot return, and ballots received prior to that date in a ballot envelope with a properly executed certificate and properly voted shall be valid ballots. The board shall set a day for counting the ballots and name judges and clerks of election to conduct the count of ballots and shall make any rules necessary for the conduct of the count. The candidate or candidates receiving the highest number of votes for each class of trustee shall be elected. In the case of a tie vote, the winner shall be determined in accordance with procedures developed by the Department of Insurance. In lieu of conducting elections via mail balloting as described in this Section, the board may instead adopt rules to provide for elections to be carried out solely via Internet balloting or phone balloting. Nothing in this Section prohibits the Fund from contracting with a third party to administer the election in accordance with this Section. (d) At any election, voting shall be as follows: (1) Each person authorized to vote for an elected | ||
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(2) If only one candidate for each position is | ||
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(3) The results shall be entered in the minutes of | ||
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(e) The initial election for permanent trustees shall be held and the permanent board shall be seated no later than 12 months after the effective date of this amendatory Act of the 101st General Assembly. Each subsequent election shall be held no later than 30 days prior to the end of the term of the incumbent trustees. (f) The elected trustees shall each serve for terms of 4 years commencing on the first business day of the first month after election; except that the terms of office of the initially elected trustees shall be as follows: (1) one trustee elected pursuant to item (1) of | ||
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(2) two trustees elected pursuant to item (2) of | ||
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(3) one trustee elected pursuant to item (3) of | ||
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(g) The trustee appointed pursuant to item (4) of subsection (b) of Section 22B-115 shall serve for a term of 2 years commencing on the first business day of the first month after the election of the elected trustees. (h) A member of the board who was elected pursuant to item (1) of subsection (b) of Section 22B-115 who ceases to serve as a mayor, president, chief executive officer, chief financial officer, or other officer, executive, or department head of a municipality that has a participating pension fund shall not be eligible to serve as a member of the board and his or her position shall be deemed vacant. A member of the board who was elected by the participants of participating pension funds who ceases to be a participant may serve the remainder of his or her elected term. For a vacancy of a trustee under item (1) of subsection (b) of Section 22B-115, the vacancy shall be filled by appointment by the board for the unexpired term from a list of candidates recommended by the trustees under item (1) of subsection (b) of Section 22B-115. The list of candidates shall be compiled and presented to the board by the executive director of the Fund. For a vacancy of a trustee under item (2) of subsection (b) of Section 22B-115, the vacancy shall be filled by appointment by the board for the unexpired term from a list of candidates recommended by the trustees under item (2) of subsection (b) of Section 22B-115. The list of candidates shall be compiled and presented to the board by the executive director of the Fund. For a vacancy of a trustee under item (3) of subsection (b) of Section 22B-115, the vacancy shall be filled by appointment by the board for the unexpired term from a list of candidates recommended by the trustees under item (3) of subsection (b) of Section 22B-115. The list of candidates shall be compiled and presented to the board by the executive director of the Fund. A trustee appointed to fill the vacancy of an elected trustee shall serve until a successor is elected. Special elections to fill the remainder of an unexpired term vacated by an elected trustee shall be held concurrently with and in the same manner as the next regular election for an elected trustee position. Vacancies among the appointed trustees shall be filled for unexpired terms by appointment in like manner as for the original appointments.
(Source: P.A. 103-506, eff. 8-4-23.) |
(40 ILCS 5/22B-117) Sec. 22B-117. Meetings of the board. (a) The transition board and the permanent board shall each meet at least quarterly and otherwise upon written request of either the Chairperson or 3 other members. The Chairperson shall preside over meetings of the board. The executive director and personnel of the board shall prepare agendas and materials and required postings for meetings of the board. (b) Six members of the board shall constitute a quorum. (c) All actions taken by the transition board and the permanent board shall require a vote of least 5 trustees, except that the following shall require a vote of at least 6 trustees: the adoption of actuarial assumptions; the selection of the chief investment officer, fiduciary counsel, or a consultant as defined under Section 1-101.5 of this Code; the adoption of rules for the conduct of election of trustees; and the adoption of asset allocation policies and investment policies.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-118) Sec. 22B-118. Operation and administration of the Fund. (a) The operation and administration of the Fund shall be managed by an executive director. No later than 2 months after the transition board is appointed or as soon thereafter as may be practicable, the transition board shall appoint an interim executive director who shall serve until a permanent executive director is appointed by the board, with such appointment to be made no later than 6 months after the end of the transition period. The executive director shall act subject to and under the supervision of the board and the board shall fix the compensation of the executive director. (b) The board may appoint one or more custodians to facilitate the transfer of pension fund assets during the transition period, and subsequently to provide custodial and related fiduciary services on behalf of the board, and enter into contracts for such services. The board may also appoint external legal counsel and an independent auditing firm and may appoint investment advisors and other consultants as it determines to be appropriate and enter into contracts for such services. With approval of the board, the executive director may retain such other consultants, advisors, fiduciaries, and service providers as may be desirable and enter into contracts for such services. (c) The board shall separately calculate account balances for each participating pension fund. The operations and financial condition of each participating pension fund account shall not affect the account balance of any other participating pension fund. Further, investment returns earned by the Fund shall be allocated and distributed pro rata among each participating pension fund account in accordance with the value of the pension fund assets attributable to each fund. (d) With approval of the board, the executive director may employ such personnel, professional or clerical, as may be desirable and fix their compensation. The appointment and compensation of the personnel, including the executive director, shall not be subject to the Personnel Code. (e) The board shall annually adopt a budget to support its operations and administration. The board shall apply moneys derived from the pension fund assets transferred and under its control to pay the costs and expenses incurred in the operation and administration of the Fund. The board shall from time to time transfer moneys and other assets to the participating pension funds as required for the participating pension funds to pay expenses, benefits, and other required payments to beneficiaries in the amounts and at the times prescribed in this Code. (f) The board may exercise any of the powers granted to boards of trustees of pension funds under Sections 1-107 and 1-108 of this Code and may by resolution provide for the indemnification of its members and any of its officers, advisors, or employees in a manner consistent with those Sections. (g) An office for meetings of the board and for its administrative personnel shall be established at any suitable place within the State as may be selected by the board. All books and records of the board shall be kept in such office. (h) The board shall contract for a blanket fidelity bond in the penal sum of not less than $1,000,000 to cover members of the board of trustees, the executive director, and all other employees of the board, conditioned for the faithful performance of the duties of their respective offices, the premium on which shall be paid by the board.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-119) Sec. 22B-119. Adoption of rules. The board shall adopt such rules (not inconsistent with this Code) as in its judgment are desirable to implement and properly administer this Article. Such rules shall specifically provide for the following: (1) the implementation of the transition process described in Section 22B-120; (2) the process by which the participating pension funds may request transfer of funds; (3) the process for the transfer in, receipt for, and investment of pension assets received by the Fund after the transition period from the participating pension funds; (4) the process by which contributions from municipalities for the benefit of the participating pension funds may, but are not required to, be directly transferred to the Fund; and (5) compensation and benefits for its employees. A copy of the rules adopted by the Fund shall be filed with the Secretary of State and the Department of Insurance. The adoption and effectiveness of such rules shall not be subject to Article 5 of the Illinois Administrative Procedure Act.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-120) Sec. 22B-120. Transition period; transfer of securities, assets, and investment functions. (a) The transition period shall commence on the effective date of this amendatory Act of the 101st General Assembly and shall end as determined by the board, consistent with and in the application of its fiduciary responsibilities, but in no event later than 30 months thereafter. (b) The board may retain the services of custodians, investment consultants, and other professional services it deems prudent to implement the transition of assets described in this Section. The permanent board of trustees shall not be bound by any contract or agreement regarding such custodians, investment consultants, or other professional services entered into by the transition board of trustees. (c) As soon as practicable after the effective date of this amendatory Act of the 101st General Assembly, the board, in cooperation with the Department of Insurance, shall audit the investment assets of each transferor pension fund to determine a certified investment asset list for each transferor pension fund. The audit shall be performed by a certified public accountant engaged by the board, and the board shall be responsible for payment of the costs and expenses associated with the audit. Upon completion of the audit for any transferor pension fund, the board and the Department of Insurance shall provide the certified investment asset list to that transferor pension fund. Upon determination of the certified investment asset list for any transferor pension fund, the board shall, within 10 business days or as soon thereafter as may be practicable as determined by the board, initiate the transfer of assets from that transferor pension fund. Further and to maintain accuracy of the certified investment asset list, upon determination of the certified investment asset list for a transferor pension fund, that fund shall not purchase or sell any of its pension fund assets. (d) When the Fund is prepared to receive pension fund assets from any transferor pension fund, the executive director shall notify in writing the board of trustees of that transferor pension fund of the Fund's intent to assume fiduciary control of those pension fund assets, and the date at which it will assume such control and that the transferor pension fund will cease to exercise fiduciary responsibility. This letter shall be transmitted no less than 30 days prior to the transfer date. A copy of the letter shall be transmitted to the Department of Insurance. Upon receipt of the letter, the transferor pension fund shall promptly notify its custodian, as well as any and all entities with fiduciary control of any portion of the pension assets. Each transferor pension fund shall have sole fiduciary and statutory responsibility for the management of its pension assets until the start of business on the transfer date. At the start of business on the transfer date, statutory and fiduciary responsibility for the investment of pension fund assets shall shift exclusively to the Fund and the Fund shall promptly and prudently transfer all such pension fund assets to the board and terminate the relationship with the local custodian of that transferor pension fund. The Fund shall provide a receipt for the transfer to the transferor pension fund within 30 days of the transfer date. As used in this subsection, "transfer date" means the date at which the Fund will assume fiduciary control of the transferor pension fund's assets and the transferor pension fund will cease to exercise fiduciary responsibility. (e) Within 90 days after the end of the transition period or as soon thereafter as may be practicable as determined by the board, the Fund and the Department of Insurance shall cooperate in transferring to the Fund all pension fund assets remaining in the custody of the transferor pension funds. (f) The board shall adopt such rules as in its judgment are desirable to implement the transition process, including, without limitation, the transfer of the pension fund assets of the transferor pension funds, the assumption of fiduciary control of such assets by the Fund, and the termination of relationships with local custodians. The adoption and effectiveness of such rules and regulations shall not be subject to Article 5 of the Illinois Administrative Procedure Act. (g) Within 6 months after the end of the transition period or as soon thereafter as may be practicable as determined by the board, the books, records, accounts, and securities of the Fund shall be audited by a certified public accountant selected by the board. This audit shall include, but not be limited to, the following: (1) a full description of the investments acquired, showing average costs; (2) a full description of the securities sold or exchanged, showing average proceeds or other conditions of an exchange; (3) gains or losses realized during the period; (4) income from investments; and (5) administrative expenses incurred by the board. This audit report shall be published on the Fund's official website and filed with the Department of Insurance. (h) To provide funds for payment of the ordinary and regular costs associated with the implementation of this transition process, the Illinois Finance Authority is authorized to loan to the Fund up to $7,500,000 of any of the Authority's funds, including, but not limited to, funds in its Illinois Housing Partnership Program Fund, its Industrial Project Insurance Fund, or its Illinois Venture Investment Fund, for such purpose. Such loan shall be repaid by the Fund with an interest rate tied to the Federal Funds Rate or an equivalent market established variable rate. The Fund and the Illinois Finance Authority shall enter into a loan or similar agreement that specifies the period of the loan, the payment interval, procedures for making periodic loans, the variable rate methodology to which the interest rate for loans should be tied, the funds of the Illinois Finance Authority that will be used to provide the loan, and such other terms that the Fund and the Illinois Finance Authority reasonably believe to be mutually beneficial. Such agreement shall be a public record and the Fund shall post the terms of the agreement on its official website.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-121) Sec. 22B-121. Management and direction of investments. (a) The board shall have the authority to manage the pension fund assets of the transferor pension funds for the purpose of obtaining a total return on investments for the long term. (b) The authority of the board to manage pension fund assets and the liability shall begin when there has been a physical transfer of the pension fund assets to the Fund and placed in the custody of the Fund's custodian or custodians, as described in Section 22B-123. (c) The pension fund assets of the Fund shall be maintained in accounts held outside the State treasury. Moneys in those accounts are not subject to administrative charges or chargebacks, including, but not limited to, those authorized under the State Finance Act. (d) The board may not delegate its management functions, but it may, but is not required to, arrange to compensate for personalized investment advisory service for any or all investments under its control with any national or state bank or trust company authorized to do a trust business and domiciled in Illinois, other financial institution organized under the laws of Illinois, or an investment advisor who is qualified under the federal Investment Advisers Act of 1940 and is registered under the Illinois Securities Law of 1953. Nothing contained in this Article prevents the board from subscribing to general investment research services available for purchase or use by others. The board shall also have the authority to compensate for accounting services. (e) This Section does not prohibit the board from directly investing pension fund assets in public market investments, private investments, real estate investments, or other investments authorized by this Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-122) Sec. 22B-122. Investment authority. The Fund shall have the authority to invest funds, subject to the requirements and restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Code. The Fund shall not be subject to any of the limitations applicable to investments of pension fund assets by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 3 of this Code. The Fund shall not, for purposes of Article 1 of this Code, be deemed to be a retirement system, pension fund, or investment board whose investments are restricted by Section 1-113.2 of this Code, and, as a result, the Fund shall be subject to the provisions of Section 1-109.1, including, but not limited to: utilization of emerging investment managers; increasing racial, ethnic, and gender diversity of its fiduciaries; utilization of businesses owned by minorities, women, and persons with disabilities; utilization of minority broker-dealers; utilization of minority investment managers; and applicable reporting requirements. No bank or savings and loan association shall receive investment funds as permitted by this Section, unless it has complied with the requirements established pursuant to Section 6 of the Public Funds Investment Act. The limitations set forth in Section 6 of the Public Funds Investment Act shall be applicable only at the time of investment and shall not require the liquidation of any investment at any time. The Fund shall have the authority to enter into such agreements and to execute such documents as it determines to be necessary to complete any investment transaction. All investments shall be clearly held and accounted for to indicate ownership by the Fund. The Fund may direct the registration of securities in its own name or in the name of a nominee created for the express purpose of registration of securities by a national or state bank or trust company authorized to conduct a trust business in the State of Illinois. Investments shall be carried at cost or at a value determined in accordance with generally accepted accounting principles and accounting procedures approved by the Fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-123) Sec. 22B-123. Custodian. The pension fund assets transferred to or otherwise acquired by the Fund shall be placed in the custody of a custodian who shall provide adequate safe deposit facilities for those assets and hold all such securities, funds, and other assets subject to the order of the Fund. Each custodian shall furnish a corporate surety bond of such amount as the board designates, which bond shall indemnify the Fund, the board, and the officers and employees of the Fund against any loss that may result from any action or failure to act by the custodian or any of the custodian's agents. All charges incidental to the procuring and giving of any bond shall be paid by the board and each bond shall be in the custody of the board.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-124) Sec. 22B-124. Accounting for pension fund assets. In the management of the pension fund assets of the transferor pension funds, the Fund: (1) shall carry all pension fund assets at fair | ||
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(2) shall keep proper books of account that shall | ||
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(3) shall charge all distributions made by the Fund | ||
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(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22B-125) Sec. 22B-125. Audits and reports. (a) At least annually, the books, records, accounts, and securities of the Fund shall be audited by a certified public accountant selected by the board and conducted in accordance with the rules and procedures promulgated by the Governmental Accounting Standards Board. The audit opinion shall be published as a part of the annual report of the Fund, which shall be submitted to the transferor pension funds and to the Department of Insurance. (b) For the quarterly periods ending September 30, December 31, and March 31, the Fund shall submit to the participating pension funds and to the Department of Insurance a report providing, among other things, the following information: (1) a full description of the investments acquired, | ||
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(2) a full description of the securities sold or | ||
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(3) gains or losses realized during the period; (4) income from investments; and (5) administrative expenses. (c) An annual report shall be prepared by the Fund for submission to the participating pension funds and to the Department of Insurance within 6 months after the close of each fiscal year. A fiscal year shall date from July 1 of one year to June 30 of the year next following. This report shall contain full information concerning the results of investment operations of the Fund. This report shall include the information described in subsection (b) and, in addition thereto, the following information: (1) a listing of the investments held by the Fund at | ||
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(2) comments on the pertinent factors affecting such | ||
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(3) a review of the policies maintained by the Fund | ||
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(4) a copy of the audited financial statements for | ||
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(5) recommendations for possible changes in this | ||
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(6) a listing of the names of securities brokers and | ||
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(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/Art. 22C heading) ARTICLE 22C. THE FIREFIGHTERS' PENSION INVESTMENT FUND
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-101) Sec. 22C-101. Establishment. The Firefighters' Pension Investment Fund is created with authority to manage the reserves, funds, assets, securities, properties, and moneys of the firefighter pension funds created pursuant to Article 4 of this Code, all as provided in this Article.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-102) Sec. 22C-102. Definitions. For the purposes of this Article, the following words and phrases shall have the meaning ascribed to them unless the context requires otherwise.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-103) Sec. 22C-103. Fund. "Fund" means the Firefighters' Pension Investment Fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-104) Sec. 22C-104. Transferor pension fund. "Transferor pension fund" means any pension fund established pursuant to Article 4 of this Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-105) Sec. 22C-105. Participating pension fund. "Participating pension fund" means any pension fund established pursuant to Article 4 of this Code that has transferred securities, funds, assets, and moneys, and responsibility for custody and control of those securities, funds, assets, and moneys, to the Fund pursuant to Section 4-123.2.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-106) Sec. 22C-106. Pension fund assets. "Pension fund assets" means the reserves, funds, assets, securities, and moneys of any transferor pension fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-107) Sec. 22C-107. Invest. "Invest" means to acquire, invest, reinvest, exchange, or retain pension fund assets of the transferor pension funds and to sell and manage the reserves, funds, securities, moneys, or assets of the transferor pension fund, all in accordance with this Article.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-108) Sec. 22C-108. Investment advisor. "Investment advisor" means any person or business entity that provides investment advice to the board on a personalized basis and with an understanding of the policies and goals of the board. "Investment advisor" does not include any person or business entity that provides statistical or general market research data available for purchase or use by others.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-112) Sec. 22C-112. Transition period. "Transition period" means the period immediately following the effective date of this amendatory Act of the 101st General Assembly during which pension fund assets, and responsibility for custody and control of those assets, will be transferred from the transferor pension funds to the board, as described in Section 22C-120.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-113) Sec. 22C-113. Illinois Municipal League. "Illinois Municipal League" means the unincorporated, nonprofit, nonpolitical association of Illinois cities, villages, and incorporated towns described in Section 1-8-1 of the Illinois Municipal Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-114) Sec. 22C-114. Purpose, establishment, and governance. The Fund is established to consolidate the transferor pension funds to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring more money is available to fund pension benefits for the beneficiaries of the transferor pension funds. The transition board trustees and permanent board trustees of the Fund shall be fiduciaries for the participants and beneficiaries of the participating pension funds and shall discharge their duties with respect to the retirement system or pension fund solely in the interest of the participants and beneficiaries. Further, the transition board trustees and permanent board trustees, acting prudently and as fiduciaries, shall take all reasonable steps to ensure that all of the transferor pension funds are treated equitably and that the financial condition of one participating pension fund, including, but not limited to, pension benefit funding levels and ratios, will have no effect on the financial condition of any other transferor pension fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-115) Sec. 22C-115. Board of Trustees of the Fund. (a) No later than February 1, 2020 (one month after the effective date of Public Act 101-610) or as soon thereafter as may be practicable, the Governor shall appoint, by and with the advice and consent of the Senate, a transition board of trustees consisting of 9 members as follows: (1) three members representing municipalities and | ||
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(2) three members representing participants who are | ||
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(3) one member representing beneficiaries who is a | ||
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(4) one member recommended by the Illinois Municipal | ||
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(5) one member who is a participant recommended by | ||
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The transition board members shall serve until the initial permanent board members are elected and qualified. The transition board of trustees shall select the chairperson of the transition board of trustees from among the trustees for the duration of the
transition board's tenure. (b) The permanent board of trustees shall consist of 9 members comprised as follows: (1) Three members who are mayors, presidents, chief | ||
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(2) Three members who are participants of | ||
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(3) One member who is a beneficiary of a | ||
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(4) One member recommended by the Illinois | ||
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(5) One member recommended by the statewide labor | ||
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The permanent board of trustees shall select the chairperson of the permanent board of trustees from among the trustees for a term of 2 years. The holder of the office of chairperson shall alternate between a person elected or appointed under item (1) or (4) of this subsection (b) and a person elected or appointed under item (2), (3), or (5) of this subsection (b). (c) Each trustee shall qualify by taking an oath of office before the Secretary of State or the Board's appointed legal counsel stating that he or she will diligently and honestly administer the affairs of the board and will not violate or knowingly permit the violation of any provision of this Article. (d) Trustees shall receive no salary for service on the board but shall be reimbursed for travel expenses incurred while on business for the board. A municipality or fire protection district employing a firefighter who is an elected or appointed trustee of the board must allow reasonable time off with compensation for the firefighter to conduct official business related to his or her position on the board, including time for travel. The board shall notify the municipality or fire protection district in advance of the dates, times, and locations of this official business. The Fund shall timely reimburse the municipality or fire protection district for the reasonable costs incurred that are due to the firefighter's absence. (e) No trustee shall have any interest in any brokerage fee, commission, or other profit or gain arising out of any investment directed by the board. This subsection does not preclude ownership by any member of any minority interest in any common stock or any corporate obligation in which an investment is directed by the board. (f) Notwithstanding any provision or interpretation of law to the contrary, any member of the transition board may also be elected or appointed as a member of the permanent board. Notwithstanding any provision or interpretation of law to the contrary, any trustee of a fund established under Article 4 of this Code may also be appointed as a member of the transition board or elected or appointed as a member of the permanent board. The restriction in Section 3.1 of the Lobbyist Registration Act shall not apply to a member of the transition board appointed pursuant to items (4) or (5) of subsection (a) or to a member of the permanent board appointed pursuant to items (4) or (5) of subsection (b).
(Source: P.A. 102-558, eff. 8-20-21; 103-552, eff. 8-11-23.) |
(40 ILCS 5/22C-116) Sec. 22C-116. Conduct and administration of elections; terms of office. (a) For the election of the permanent trustees, the transition board shall administer the initial elections and the permanent board shall administer all subsequent elections. Each board shall develop and implement such procedures as it determines to be appropriate for the conduct of such elections. For the purposes of obtaining information necessary to conduct elections under this Section, participating pension funds shall cooperate with the Fund. (b) All nominations for election shall be by petition. Each petition for a trustee shall be executed as follows: (1) for trustees to be elected by the mayors and | ||
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(2) for trustees to be elected by participants, by at | ||
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(3) for trustees to be elected by beneficiaries, by | ||
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(c) A separate ballot shall be used for each class of trustee. The board shall prepare and send ballots and ballot envelopes to eligible voters in accordance with rules adopted by the board. The ballots shall contain the names of all candidates in alphabetical order. Eligible voters, upon receipt of the ballot, shall vote the ballot and place it in the ballot envelope, seal the envelope, and return the ballot to the Fund. The board shall set a final date for ballot return, and ballots received prior to that date in a ballot envelope shall be valid ballots. The board shall set a day for counting the ballots and name judges and clerks of election to conduct the count of ballots and shall make any rules necessary for the conduct of the count. The candidate or candidates receiving the highest number of votes for each class of trustee shall be elected. In the case of a tie vote, the winner shall be determined in accordance with procedures developed by the Department of Insurance. In lieu of conducting elections via mail balloting as described in this Section, the board may instead adopt rules to provide for elections to be carried out solely via Internet balloting or phone balloting. Nothing in this Section prohibits the Fund from contracting with a third party to administer the election in accordance with this Section. (d) At any election, voting shall be as follows: (1) Each person authorized to vote for an elected | ||
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(2) If only one candidate for each position is | ||
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(3) The results shall be entered in the minutes of | ||
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(e) The initial election for permanent trustees shall be held and the permanent board shall be seated no later than 12 months after the effective date of this amendatory Act of the 101st General Assembly. Each subsequent election shall be held no later than 30 days prior to the end of the term of the incumbent trustees. (f) The elected trustees shall each serve for terms of 4 years commencing on the first business day of the first month after election; except that the terms of office of the initially elected trustees shall be as follows: (1) One trustee elected pursuant to item (1) of | ||
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(2) One trustee elected pursuant to item (2) of | ||
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(3) The trustee elected pursuant to item (3) of | ||
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(g) The trustees appointed pursuant to items (4) and (5) of subsection (b) of Section 22C-115 shall each serve for a term of 4 years commencing on the first business day of the first month after the election of the elected trustees. (h) A member of the board who was elected pursuant to item (1) of subsection (b) of Section 22C-115 who ceases to serve as a mayor, president, chief executive officer, chief financial officer, or other officer, executive, or department head of a municipality or fire protection district that has a participating pension fund shall not be eligible to serve as a member of the board and his or her position shall be deemed vacant. A member of the board who was elected by the participants of participating pension funds who ceases to be a participant may serve the remainder of his or her elected term. For a vacancy of an elected trustee, the vacancy shall be filled by appointment by the board as follows: a vacancy of a member elected pursuant to item (1) of subsection (b) of Section 22C-115 shall be filled by a mayor, president, chief executive officer, chief financial officer, or other officer, executive, or department head of a municipality or fire protection district that has a participating pension fund; a vacancy of a member elected pursuant to item (2) of subsection (b) of Section 22C-115 shall be filled by a participant of a participating pension fund; and a vacancy of a member elected under item (3) of subsection (b) of Section 22C-115 shall be filled by a beneficiary of a participating pension fund. A trustee appointed to fill the vacancy of an elected trustee shall serve until a successor is elected. Special elections to fill the remainder of an unexpired term vacated by an elected trustee shall be held concurrently with and in the same manner as the next regular election for an elected trustee position. Vacancies among the appointed trustees shall be filled for unexpired terms by appointment in like manner as for the original appointments.
(Source: P.A. 103-552, eff. 8-11-23.) |
(40 ILCS 5/22C-117) Sec. 22C-117. Meetings of the board. (a) The transition board and the permanent board shall each meet at least quarterly and otherwise upon written request of either the Chairperson or 3 other members. The Chairperson shall preside over meetings of the board. The executive director and personnel of the board shall prepare agendas and materials and required postings for meetings of the board. (b) Six members of the board shall constitute a quorum. (c) All actions taken by the transition board and the permanent board shall require a vote of least 5 trustees, except that the following shall require a vote of at least 6 trustees: the adoption of actuarial assumptions; the selection of the chief investment officer, fiduciary counsel, or a consultant as defined under Section 1-101.5 of this Code; the adoption of rules for the conduct of election of trustees; and the adoption of asset allocation policies and investment policies.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-118) Sec. 22C-118. Operation and administration of the Fund. (a) The operation and administration of the Fund shall be managed by an executive director. No later than 2 months after the transition board is appointed or as soon thereafter as may be practicable, the transition board shall appoint an interim executive director who shall serve until a permanent executive director is appointed by the board, with such appointment to be made no later than 6 months after the end of the transition period. The executive director shall act subject to and under the supervision of the board and the board shall fix the compensation of the executive director. (b) The board may appoint one or more custodians to facilitate the transfer of pension fund assets during the transition period, and subsequently to provide custodial and related fiduciary services on behalf of the board, and enter into contracts for such services. The board may also appoint external legal counsel and an independent auditing firm and may appoint investment advisors and other consultants as it determines to be appropriate and enter into contracts for such services. With approval of the board, the executive director may retain such other consultants, advisors, fiduciaries, and service providers as may be desirable and enter into contracts for such services. (c) The board shall separately calculate account balances for each participating pension fund. The operations and financial condition of each participating pension fund account shall not affect the account balance of any other participating pension fund. Further, investment returns earned by the Fund shall be allocated and distributed pro rata among each participating pension fund account in accordance with the value of the pension fund assets attributable to each fund. (d) With approval of the board, the executive director may employ such personnel, professional or clerical, as may be desirable and fix their compensation. The appointment and compensation of the personnel, including the executive director, shall not be subject to the Personnel Code. (e) The board shall annually adopt a budget to support its operations and administration. The board shall apply moneys derived from the pension fund assets transferred and under its control to pay the costs and expenses incurred in the operation and administration of the Fund. The board shall from time to time transfer moneys and other assets to the participating pension funds as required for the participating pension funds to pay expenses, benefits, and other required payments to beneficiaries in the amounts and at the times prescribed in this Code. (f) The board may exercise any of the powers granted to boards of trustees of pension funds under Sections 1-107 and 1-108 of this Code and may by resolution provide for the indemnification of its members and any of its officers, advisors, or employees in a manner consistent with those Sections. (g) An office for meetings of the board and for its administrative personnel shall be established at any suitable place within the State as may be selected by the board. All books and records of the board shall be kept in such office. (h) The board shall contract for a blanket fidelity bond in the penal sum of not less than $1,000,000 to cover members of the board of trustees, the executive director, and all other employees of the board, conditioned for the faithful performance of the duties of their respective offices, the premium on which shall be paid by the board.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-119) Sec. 22C-119. Adoption of rules. The board shall adopt such rules (not inconsistent with this Code) as in its judgment are desirable to implement and properly administer this Article. Such rules shall specifically provide for the following: (1) the implementation of the transition process described in Section 22C-120; (2) the process by which the participating pension funds may request transfer of funds; (3) the process for the transfer in, receipt for, and investment of pension assets received by the Fund after the transition period from the participating pension funds; (4) the process by which contributions from municipalities and fire protection districts for the benefit of the participating pension funds may, but are not required to, be directly transferred to the Fund; and (5) compensation and benefits for its employees. A copy of the rules adopted by the Fund shall be posted on the Fund's website. The adoption and effectiveness of such rules shall not be subject to Article 5 of the Illinois Administrative Procedure Act.
(Source: P.A. 103-552, eff. 8-11-23.) |
(40 ILCS 5/22C-120) Sec. 22C-120. Transition period; transfer of securities, assets, and investment functions. (a) The transition period shall commence on the effective date of this amendatory Act of the 101st General Assembly and shall end as determined by the board, consistent with and in the application of its fiduciary responsibilities, but in no event later than 30 months thereafter. (b) The board may retain the services of custodians, investment consultants, and other professional services it deems prudent to implement the transition of assets described in this Section. The permanent board of trustees shall not be bound by any contract or agreement regarding such custodians, investment consultants, or other professional services entered into by the transition board of trustees. (c) As soon as practicable after the effective date of this amendatory Act of the 101st General Assembly, the board, in cooperation with the Department of Insurance, shall audit the investment assets of each transferor pension fund to determine a certified investment asset list for each transferor pension fund. The audit shall be performed by a certified public accountant engaged by the board, and the board shall be responsible for payment of the costs and expenses associated with the audit. Upon completion of the audit for any transferor pension fund, the board and the Department of Insurance shall provide the certified investment asset list to that transferor pension fund. Upon determination of the certified investment asset list for any transferor pension fund, the board shall, within 10 business days or as soon thereafter as may be practicable, as determined by the board, initiate the transfer of assets from that transferor pension fund. Further and to maintain accuracy of the certified investment asset list, upon determination of the certified investment asset list for a transferor pension fund, that fund shall not purchase or sell any of its pension fund assets. (d) When the Fund is prepared to receive pension fund assets from any transferor pension fund, the executive director shall notify in writing the board of trustees of that transferor pension fund of the Fund's intent to assume fiduciary control of those pension fund assets, and the date at which it will assume such control and that the transferor pension fund will cease to exercise fiduciary responsibility. This letter shall be transmitted no less than 30 days prior to the transfer date. A copy of the letter shall be transmitted to the Department of Insurance. Upon receipt of the letter, the transferor pension fund shall promptly notify its custodian, as well as any and all entities with fiduciary control of any portion of the pension assets. Each transferor pension fund shall have sole fiduciary and statutory responsibility for the management of its pension assets until the start of business on the transfer date. At the start of business on the transfer date, statutory and fiduciary responsibility for the investment of pension fund assets shall shift exclusively to the Fund and the Fund shall promptly and prudently transfer all such pension fund assets to the board and terminate the relationship with the local custodian of that transferor pension fund. The Fund shall provide a receipt for the transfer to the transferor pension fund within 30 days of the transfer date. As used in this subsection, "transfer date" means the date at which the Fund will assume fiduciary control of the transferor pension fund's assets and the transferor pension fund will cease to exercise fiduciary responsibility. (e) Within 90 days after the end of the transition period or as soon thereafter as may be practicable as determined by the board, the Fund and the Department of Insurance shall cooperate in transferring to the Fund all pension fund assets remaining in the custody of the transferor pension funds. (f) The board shall adopt such rules as in its judgment are desirable to implement the transition process, including, without limitation, the transfer of the pension fund assets of the transferor pension funds, the assumption of fiduciary control of such assets by the Fund, and the termination of relationships with local custodians. The adoption and effectiveness of such rules and regulations shall not be subject to Article 5 of the Illinois Administrative Procedure Act. (g) Within 6 months after the end of the transition period or as soon thereafter as may be practicable as determined by the board, the books, records, accounts, and securities of the Fund shall be audited by a certified public accountant selected by the board. This audit shall include, but not be limited to, the following: (1) a full description of the investments acquired, showing average costs; (2) a full description of the securities sold or exchanged, showing average proceeds or other conditions of an exchange; (3) gains or losses realized during the period; (4) income from investments; and (5) administrative expenses incurred by the board. This audit report shall be published on the Fund's official website and filed with the Department of Insurance. (h) To provide funds for payment of the ordinary and regular costs associated with the implementation of this transition process, the Illinois Finance Authority is authorized to loan to the Fund up to $7,500,000 of any of the Authority's funds, including, but not limited to, funds in its Illinois Housing Partnership Program Fund, its Industrial Project Insurance Fund, or its Illinois Venture Investment Fund, for such purpose. Such loan shall be repaid by the Fund with an interest rate tied to the Federal Funds Rate or an equivalent market established variable rate. The Fund and the Illinois Finance Authority shall enter into a loan or similar agreement that specifies the period of the loan, the payment interval, procedures for making periodic loans, the variable rate methodology to which the interest rate for loans should be tied, the funds of the Illinois Finance Authority that will be used to provide the loan, and such other terms that the Fund and the Illinois Finance Authority reasonably believe to be mutually beneficial. Such agreement shall be a public record and the Fund shall post the terms of the agreement on its official website.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-121) Sec. 22C-121. Management and direction of investments. (a) The board shall have the authority to manage the pension fund assets of the transferor pension funds for the purpose of obtaining a total return on investments for the long term. (b) The authority of the board to manage pension fund assets and the liability shall begin when there has been a physical transfer of the pension fund assets to the Fund and placed in the custody of the Fund's custodian or custodians, as described in Section 22C-123. (c) The pension fund assets of the Fund shall be maintained in accounts held outside the State treasury. Moneys in those accounts are not subject to administrative charges or chargebacks, including, but not limited to, those authorized under the State Finance Act. (d) The board may not delegate its management functions, but it may, but is not required to, arrange to compensate for personalized investment advisory service for any or all investments under its control with any national or state bank or trust company authorized to do a trust business and domiciled in Illinois, other financial institution organized under the laws of Illinois, or an investment advisor who is qualified under the federal Investment Advisers Act of 1940 and is registered under the Illinois Securities Law of 1953. Nothing contained in this Article prevents the board from subscribing to general investment research services available for purchase or use by others. The board shall also have the authority to compensate for accounting services. (e) This Section does not prohibit the board from directly investing pension fund assets in public market investments, private investments, real estate investments, or other investments authorized by this Code.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-122) Sec. 22C-122. Investment authority. The Fund shall have the authority to invest funds, subject to the requirements and restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Code. The Fund shall not be subject to any of the limitations applicable to investments of pension fund assets by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 4 of this Code. The Fund shall not, for purposes of Article 1 of this Code, be deemed to be a retirement system, pension fund, or investment board whose investments are restricted by Section 1-113.2 of this Code, and, as a result, the Fund shall be subject to the provisions of Section 1-109.1, including, but not limited to: utilization of emerging investment managers; increasing racial, ethnic, and gender diversity of its fiduciaries; utilization of businesses owned by minorities, women, and persons with disabilities; utilization of minority broker-dealers; utilization of minority investment managers; and applicable reporting requirements. No bank or savings and loan association shall receive investment funds as permitted by this Section, unless it has complied with the requirements established pursuant to Section 6 of the Public Funds Investment Act. The limitations set forth in Section 6 of the Public Funds Investment Act shall be applicable only at the time of investment and shall not require the liquidation of any investment at any time. The Fund shall have the authority to enter into such agreements and to execute such documents as it determines to be necessary to complete any investment transaction. All investments shall be clearly held and accounted for to indicate ownership by the Fund. The Fund may direct the registration of securities in its own name or in the name of a nominee created for the express purpose of registration of securities by a national or state bank or trust company authorized to conduct a trust business in the State of Illinois. Investments shall be carried at cost or at a value determined in accordance with generally accepted accounting principles and accounting procedures approved by the Fund.
(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-123) Sec. 22C-123. Custodian. The pension fund assets transferred to or otherwise acquired by the Fund shall be placed in the custody of a custodian who shall provide adequate safe deposit facilities for those assets and hold all such securities, funds, and other assets subject to the order of the Fund. Each custodian shall furnish a corporate surety bond of such amount as the board designates, which bond shall indemnify the Fund, the board, and the officers and employees of the Fund against any loss that may result from any action or failure to act by the custodian or any of the custodian's agents, or provide insurance coverages of such type and limits as the board designates. All charges incidental to the procuring and giving of any bond shall be paid by the board and each bond shall be in the custody of the board.
(Source: P.A. 103-552, eff. 8-11-23.) |
(40 ILCS 5/22C-124) Sec. 22C-124. Accounting for pension fund assets. In the management of the pension fund assets of the transferor pension funds, the Fund: (1) shall carry all pension fund assets at fair | ||
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(2) shall keep proper books of account that shall | ||
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(3) shall charge all distributions made by the Fund | ||
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(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/22C-125) Sec. 22C-125. Audits and reports. (a) At least annually, the books, records, accounts, and securities of the Fund shall be audited by a certified public accountant selected by the board and conducted in accordance with the rules and procedures promulgated by the Governmental Accounting Standards Board. The audit opinion shall be published as a part of the annual report of the Fund, which shall be submitted to the transferor pension funds and to the Department of Insurance. (b) For the quarterly periods ending September 30, December 31, and March 31, the Fund shall submit to the participating pension funds and to the Department of Insurance a report providing, among other things, the following information: (1) a full description of the investments acquired, | ||
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(2) a full description of the securities sold or | ||
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(3) gains or losses realized during the period; (4) income from investments; and (5) administrative expenses. (c) An annual report shall be prepared by the Fund for submission to the participating pension funds and to the Department of Insurance within 6 months after the close of each fiscal year. A fiscal year shall date from July 1 of one year to June 30 of the year next following. This report shall contain full information concerning the results of investment operations of the Fund. This report shall include the information described in subsection (b) and, in addition thereto, the following information: (1) a listing of the investments held by the Fund at | ||
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(2) comments on the pertinent factors affecting such | ||
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(3) a review of the policies maintained by the Fund | ||
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(4) a copy of the audited financial statements for | ||
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(5) recommendations for possible changes in this | ||
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(6) a listing of the names of securities brokers and | ||
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(Source: P.A. 101-610, eff. 1-1-20.) |
(40 ILCS 5/Art. 23 heading) ARTICLE 23.
PURPOSE--SAVINGS PROVISIONS--REPEAL
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(40 ILCS 5/23-101) (from Ch. 108 1/2, par. 23-101)
Sec. 23-101.
Purpose-Savings provisions.
It is the purpose of this Code to restate, simplify and codify the
respective Acts and parts of Acts repealed by Section 23-102 which
immediately prior to the effective date of this Code governed the publicly
supported retirement systems, annuity and benefit funds and related pension
and benefit Acts. All such systems and funds shall remain separate and
distinct entities. It is intended that this Code shall grant no lesser or
greater rights, credits, equities, pensions or other benefits than existed
under such Acts or parts of Acts so repealed and incorporated as separate
Articles and Divisions of this Code, immediately prior to the effective
date of this Code, except as they may be changed hereafter by specific
amendment to this Code; and all such rights, credits, equities, annuities,
pensions and other benefits are preserved without change, and without loss
or impairment, precisely as if such Acts or parts of Acts had not been
repealed.
In like manner, any rights in annuities, pensions or other benefits
derived from and in force or which would have come into force under any
Acts or parts of Acts repealed by Section 23-102 and not continued in any
Article or Division of this Code shall be preserved without change, loss or
impairment, precisely as if such Acts or parts of Acts had not been
repealed.
The repeal of any Acts or parts of Acts specified in Section 23-102
shall not affect the validity of any taxes levied or extended under such
Acts or parts of Acts, or of any appropriation ordinances adopted pursuant
thereto, or of any warrants issued against and in anticipation of such
taxes, nor shall the repeal of any Acts or parts of Acts validating and
legalizing appropriation or tax levy ordinances, or both, affect the
validity or operative force of such curative Acts or parts of Acts as
enacted.
The repeal of any Act or parts of Acts specified in Section 23-102
shall not affect the validity of any act, decision, determination or other
authority exercised by any retirement board, or other public officer or
agency pursuant to the powers and duties conferred under such Acts or parts
of Acts, nor shall such repeal affect the validity or course of any
judicial or administrative proceeding or action undertaken and pending or
completed on the effective date of this Code.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/23-102) (from Ch. 108 1/2, par. 23-102)
Sec. 23-102.
Repeal.
The following Acts and parts of Acts are repealed except as provided
in Section 23-103:
(1) Divisions 6 through 12, inclusive, of Article 10 of the
"Illinois Municipal Code", approved May 29, 1961, as amended.
(2) "AN ACT to create a firemen's pension fund in cities,
incorporated towns, villages, townships and fire protection districts
having a population of not less than 5,000 nor more than 200,000
inhabitants", filed July 11, 1919, as amended.
(3) "AN ACT to provide for the creation, setting apart, maintenance
and administration of a municipal employees', officers', and officials'
annuity and benefit fund in cities having a population exceeding two
hundred thousand inhabitants", approved June 29, 1921, as amended.
(4) "AN ACT to provide for the creation, setting apart, maintenance,
and administration of a laborers' and retirement board employees'
annuity and benefit fund in cities having a population exceeding two
hundred thousand inhabitants", approved June 21, 1935, as amended.
(5) "AN ACT to provide for the creation and operation of a
retirement and benefit fund for the benefit of certain officers and
employees, and their beneficiaries, of cities having a population of not
more than two hundred thousand inhabitants, villages, incorporated
towns, counties having a population of not more than five hundred
thousand inhabitants, certain other local governmental districts in the
State, and instrumentalities thereof, and of organizations which are
created by the Statutes of the State of Illinois to perform services for
the above, and to supersede certain other pension and benefit funds",
filed July 29, 1939, as amended.
(6) "AN ACT to provide for the creation, setting apart, maintenance
and administration of a county employees' and officers' annuity and
benefit fund in counties having a population exceeding five hundred
thousand inhabitants", approved July 2, 1925, as amended.
(7) "AN ACT for the creation, maintenance and administration of a
Judges Retirement System in order to provide annuities for Judges upon
their retirement and for their widows", approved July 21, 1941, as
amended.
(8) "AN ACT to provide for the creation, setting apart, maintenance
and administration of a Sanitary District Employees' and Trustees
Annuity and Benefit Fund in sanitary districts organized under an Act
entitled 'An Act to create sanitary districts and to remove obstructions
in the Des Plaines and Illinois Rivers', approved May 29, 1889, as
amended, and including within their territorial limits two or more
cities, villages, or towns having a total population exceeding one
million inhabitants", approved July 7, 1931, as amended.
(9) Section 9a of "AN ACT to provide for the creation and management
of forest preserve districts and repealing certain acts therein named",
approved June 27, 1913, as amended.
(10) "AN ACT for the creation, maintenance and administration of a
general Assembly members' and presiding officers' retirement system, to
provide retirement annuities to the participants thereof, and widows'
annuities and other benefits to their beneficiaries upon death", filed
July 8, 1947, as amended.
(11) "AN ACT to provide for the setting apart, formation and
disbursement of a house of correction employees pension fund in cities
having a population exceeding 150,000 inhabitants", approved June 10,
1911, as amended.
(12) "AN ACT to provide for the formation and disbursement of a
public library employees' pension fund in cities having a population
exceeding 500,000 inhabitants", approved May 12, 1905, as amended.
(13) "AN ACT to provide for the creation, setting apart, formation,
administration and disbursement of a park employes' and retirement board
employes' annuity and benefit fund", approved June 21, 1919, as
amended.
(14) Article 25 of "The School Code", approved March 18, 1961, as
amended.
(15) Sections 34-88 to 34-116, inclusive, of Article 34 of "The
School Code", approved March 18, 1961, as amended.
(16) "AN ACT to provide for the creation, maintenance and
administration of a retirement and benefit system for certain officers
and employees of the State of Illinois, their dependents and
beneficiaries", approved July 23, 1943, as amended.
(17) "AN ACT to provide for the creation, maintenance, and
administration of a Retirement System for the benefit of the staff
members and employees of the State universities and certain affiliated
organizations, certain other state educational and scientific agencies,
and the survivors, dependents and other beneficiaries of such
employees", approved July 21, 1941, as amended.
(18) "AN ACT to provide for the creation, setting apart, maintenance
and administration of a Municipal Court and Law Department Employees'
Annuity and Benefit Fund in cities having a population of more than two
hundred thousand (200,000) inhabitants in which any Municipal Court has
been or shall be established and maintained in accordance with law",
approved July 8, 1935, as amended.
(19) "AN ACT to provide for the creation, setting apart, maintenance
and administration of a Park Policemen's and Retirement Board Employees'
Annuity and Benefit Fund", approved June 29, 1921, as amended.
(20) "AN ACT to provide for service credits for annuity and pension
purposes in cities having a population exceeding five hundred thousand
(500,000) inhabitants", approved July 12, 1937.
(21) "AN ACT entitled An Act to establish the nature and character
of annuity and benefit funds and other pension funds created by the
legislature of the State of Illinois, the contributions to such funds,
and payments from such funds", approved July 18, 1945.
(22) "AN ACT to establish continuity and preservation of pension
credit for employees in Governmental service in the State of Illinois",
approved July 11, 1955, as amended.
(23) "AN ACT to provide for reciprocal allowance of credits for
retirement, death and disability benefits between the State Employees'
Retirement System of Illinois, the University Retirement System of
Illinois and the Teachers' Retirement System of the State of Illinois,
and for the transfer of certain funds between said systems", approved
August 8, 1947, as amended.
(24) "AN ACT to provide for the coverage of certain officers and
employees of the State and its political subdivisions and of the
instrumentalities of either, under the old-age, survivors, and
disability insurance provisions of the Federal Social Security Act, to
provide for the administration of such a coverage program and to make an
appropriation for its administration", approved August 6, 1951, as
amended.
(25) "AN ACT in relation to the examination, investigation and
supervision of pension, annuity and retirement funds or systems for the
benefit of employees and officers of governmental units in the State of
Illinois, to provide means to insure compliance with the laws
establishing such funds, and to repeal an Act herein named", approved
July 20, 1949, as amended.
(26) "AN ACT to provide for the setting apart, formation and
disbursement of a police pension fund in cities, villages and
incorporated towns", approved April 29, 1887, as amended.
(27) "AN ACT to provide for the setting apart, formation and
disbursement of a police pension fund in cities having a population
exceeding two hundred thousand inhabitants", approved June 29, 1915, as
amended.
(28) "AN ACT to provide for a firemen's pension fund and to create a
board of trustees to administer said fund in cities having a population
exceeding two hundred thousand (200,000) inhabitants", filed June 14,
1917, as amended.
(29) "AN ACT for the relief of disabled members of the police and
fire departments in cities and villages", approved May 24, 1877, as
amended.
(30) "AN ACT to provide for the creation, setting apart, maintenance
and administration of a firemen's annuity and benefit fund in cities,
townships, villages and incorporated towns having a population of not
less than ten thousand nor more than one hundred thousand inhabitants",
approved July 31, 1943.
(31) "AN ACT to provide for the formation and disbursement of a
municipal employees' pension fund in cities having a population
exceeding one hundred thousand inhabitants", approved May 16, 1905, as
amended.
(32) "AN ACT to legalize and validate appropriations and tax levy
ordinances and taxes for fiscal years 1957 and 1958 in counties of not
less than 500,000 for County Employees Annuity and Benefit Fund",
approved April 6, 1959.
(33) "AN ACT relating to a tax by certain park districts for the
purpose of making contributions to municipal police pension funds",
approved July 11, 1957, as amended.
(34) Sections 11 and 55 1/2 of "AN ACT to provide for the creation,
setting apart, maintenance and administration of a firemen's annuity and
benefit fund in cities having a population exceeding five hundred
thousand inhabitants", approved June 12, 1931, as amended.
(35) Sections 11, 35, and 54 1/2 of "AN ACT to provide for the
creation, setting apart, maintenance and administration of a policemen's
annuity and benefit fund in cities having a population exceeding two
hundred thousand inhabitants", approved June 29, 1921, as amended.
(36) "AN ACT to provide for the setting apart, formation,
administration and disbursement of a park police pension fund", filed
May 19, 1917, as amended.
(37) "AN ACT creating a Commission for the further study of pension
and annuity and benefit laws relating to employees and officers in
governmental service, to define its powers and duties, and to make
appropriations therefor", approved July 17, 1959.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/23-103) (from Ch. 108 1/2, par. 23-103)
Sec. 23-103.
Construction.
Nothing in this Code shall be construed to repeal any section of the
various Acts of which this Code is comprised when such section is the
subject of an amendment enacted by the Seventy-third General Assembly and
which becomes law. Furthermore, it is the intent of the General Assembly
that the corresponding section of this Code shall be construed with such
amended section so as to give effect to such amendment as if it was made a
part of this Code.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/Art. 24 heading) ARTICLE 24.
PUBLIC EMPLOYEES'
DEFERRED COMPENSATION
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(40 ILCS 5/24-101) (from Ch. 108 1/2, par. 24-101)
Sec. 24-101.
Notwithstanding any law to the contrary, the State of
Illinois or any unit of local government or school district may enter
into a written contract with any of its employees to defer a part of
their gross compensation and may invest such funds in any
such manner as prescribed by the deferred compensation program adopted
by it under this Article. Compensation deferred pursuant to a deferred
compensation program adopted under this Article shall not exceed the amount
of compensation allowed to be deferred without being subject to income tax
in the year in which it is earned, pursuant to Section 457 of the United
States Internal Revenue Code or laws supplementary or amendatory thereto.
It is hereby declared to be in the public interest to provide public employees
with a plan for the deferral of compensation and the accrual of income and
gain thereon if such deferred compensation be invested, and to encourage
the continued service of public employees by making available such benefits to them.
(Source: P.A. 82-145.)
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(40 ILCS 5/24-102) (from Ch. 108 1/2, par. 24-102)
Sec. 24-102.
As used in this Article, "employee" means any person,
including a person elected, appointed or under contract, receiving
compensation from the State or a unit of local government or school
district for personal services rendered, including salaried persons. However, "employee", for the purposes of the State Employees Deferred Compensation Plan established under Section 24-104, does not include a person employed by an employer under Section 15-106 who first becomes a participant of the retirement system under Article 15 on or after July 1, 2023 unless the person has made an election to defer compensation into the State Employees Deferred Compensation Plan under a written agreement and the deferral election is in effect as of June 30, 2023. A health care provider who elects to participate in the State Employees Deferred Compensation Plan established under Section 24-104 of this Code shall, for purposes of that participation, be deemed an "employee" as defined in this Section.
As used in this Article, "health care provider" means a dentist, physician, optometrist, pharmacist, or podiatric physician that participates and receives compensation as a provider under the Illinois Public Aid Code, the Children's Health Insurance Act, or the Covering ALL KIDS Health Insurance Act. As used in this Article, "compensation" includes compensation received
in a lump sum for accumulated unused vacation, personal leave or sick leave, with the exception of health care providers. "Compensation" with respect to health care providers is defined under the Illinois Public Aid Code, the Children's Health Insurance Act, or the Covering ALL KIDS Health Insurance Act.
Where applicable, in no event shall the total of the amount of deferred compensation of an
employee set aside in relation to a particular year under the Illinois
State Employees Deferred Compensation Plan and the employee's
nondeferred compensation for that year exceed the total annual salary or
compensation under the existing salary schedule or classification plan
applicable to such employee in such year; except that any compensation
received in a lump sum for accumulated unused vacation, personal leave or sick
leave shall not be included in the calculation of such totals.
(Source: P.A. 102-540, eff. 8-20-21.)
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(40 ILCS 5/24-103) (from Ch. 108 1/2, par. 24-103)
Sec. 24-103.
The deferred compensation program established by this
Article shall exist and serve in addition to other retirement, pension and
benefit systems established by the State, units of local government or
school districts. Any compensation deferred under such a plan shall
continue to be included as regular compensation for the purpose of
computing the retirement and pension benefits earned by any employee, to
the extent that such inclusion is not inconsistent with the other
applicable Articles of this Code.
(Source: P.A. 84-878.)
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(40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104) Sec. 24-104. State Employees Deferred Compensation Plan. In this Section, "Plan" means the State Employees Deferred Compensation Plan. The Illinois State Board of Investment created under Article 22A of this Act shall develop and establish a deferred compensation plan for employees of the State which shall be known as the State Employees Deferred Compensation Plan. The Plan shall provide for the Board to review proposed investment offerings and shall require that only investments determined to be acceptable by the Board may be used for investing compensation deferred. The Plan shall include appropriate provisions pertaining to its day to day operation providing for methods of electing to defer income, methods of changing the amount of income to be deferred, methods of selecting from among investment options available under the plan and such other provisions as may be appropriate. In administering the Plan, the Board shall require that the Plan recordkeeper agree that, in performing services with respect to the Plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the Plan or the Plan's participants to solicit the Plan's participants for the purpose of cross-selling non-Plan products and services, unless in response to a request by a Plan participant; and (ii) will not promote, recommend, endorse, or solicit Plan participants to purchase any financial products or services outside of the Plan, except that links to parts of the recordkeeper's website that are generally available to the public, are about commercial products, and may be encountered by a Plan participant in the regular course of navigating the recordkeeper's website will not constitute a violation of this item (ii). The Plan shall provide for the preparation, and distribution from time to time to all eligible State employees, of pamphlets describing the Plan and outlining the options and opportunities available to State employees under the Plan. The Plan established under this Section shall not be implemented or amended until the Board is satisfied that compensation deferred under the Plan is not subject to income tax for the year in which it is earned and that the taxation of such compensation will be deferred until the time of its distribution to the employee. The Board shall also review and oversee the administration of the Plan.(Source: P.A. 103-552, eff. 8-11-23.) |
(40 ILCS 5/24-104.1) (from Ch. 108 1/2, par. 24-104.1)
Sec. 24-104.1.
The Plan developed under Section 24-104 shall also provide
for the recovery of the expenses of its administration by charging such
expenses against the earnings from investments or by charging fees equitably
prorated among the participating State employees or by such other appropriate
and equitable method as the Board shall determine. Different methods for
recovery of administrative expenses may be provided in relation to different
types of investment programs and the Board may provide for the allocation
of administration expenses among varying types of programs for this purpose.
All sums advanced by appropriation to the State Board of Investment
for the costs of the development and establishment of the Plan shall be
repaid to the State Treasury not later than June 30, 1986, without interest.
The Plan shall provide for such repayment and may, for that purpose, provide
for the recovery of the development and establishment costs by amortizing
them as a part of the administrative expenses of the Plan over a period
of years ending not later than June 30, 1986.
(Source: P.A. 79-384.)
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(40 ILCS 5/24-104.2)
Sec. 24-104.2. Health care providers; tax-exempt status. Health care providers may participate in the Illinois State Employees Deferred Compensation Plan to the extent that the health care providers' participation does not interfere with the Plan's tax-exempt status under the Internal Revenue Code.
(Source: P.A. 96-806, eff. 7-1-10.) |
(40 ILCS 5/24-105) (from Ch. 108 1/2, par. 24-105)
Sec. 24-105.
The State Employees Deferred Compensation Plan shall be
administered by the Department of Central Management Services
subject to the general
supervision of the Illinois State Board of Investment. Participation in
such plan shall be by a specific written agreement between each such
employee and the State which agreement shall provide for the deferral of
such amount of compensation as requested by the employee. With each
distribution of compensation to a participating employee, the employee
shall receive a memorandum of the amount by which his gross compensation
for the period involved is reduced by reason of the deferment of
compensation, which amount shall not be included as a part of his gross
compensation as to that period.
Funds retained by the State as deferred compensation pursuant to a
written deferred compensation agreement between the State and
participating employees, may be invested in such investments as are
deemed acceptable by the Illinois State Board of Investment including,
but not limited to, life insurance or annuity contracts or mutual funds.
All such insurance, annuities, mutual funds, or other such investments
utilized under this Plan shall have been reviewed and selected by the
Board based on a competitive bidding process as established by such
specifications and considerations as are deemed appropriate by the
Board. Nothing in this Section should be construed as requiring a
limitation on the number and variety of insurance, annuity or mutual
fund contracts which may be selected as a result of this bidding
process. The State Board of Investment may also invest any funds retained
by the State pursuant to a written deferred compensation agreement between
the State and participating employees in share accounts or share certificate
accounts of State or federal credit unions, the accounts of which are insured
as required by The Illinois Credit Union Act or the Federal Credit Union
Act, as applicable. If a participating employee fails to direct the investment of amounts deferred into the various investment options offered to the participant, the amounts deferred shall be invested in the Plan's default investment fund and the investment shall be deemed to have been made at the participant's investment direction. Any income and gain resulting from the investment of
a deferred compensation account may be paid to the participant as additional
compensation
for continued service during the period of participation or be used in part
for administrative expenses, all in accordance with the plan. Such investments
and payments shall not be construed to be prohibited uses of the general
assets of the State.
(Source: P.A. 101-277, eff. 1-1-20.)
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(40 ILCS 5/24-105.1)
Sec. 24-105.1. Changes in federal law. (a) To the extent that federal law or
regulations which require a governmental employer to own the assets of its
deferred compensation plan are changed to allow plans established under Section
457 of the Internal Revenue Code to hold their assets in trust, a custodial
account, an annuity contract, an insurance contract or some other contract, the
Department of Central Management Services and units of local government with
plans established under Section 24-107 shall within a reasonable time amend
their plans accordingly.
(b) To the extent that federal law or
regulations have been changed to allow plans established under Section
457 of the Internal Revenue Code to be amended to allow designated Roth contributions and in-plan rollovers to designated Roth accounts, the
Department of Central Management Services and units of local government with
plans established under Section 24-107 shall within a reasonable time amend
their plans accordingly. (Source: P.A. 98-491, eff. 1-1-14.)
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(40 ILCS 5/24-105.2) Sec. 24-105.2. Automatic enrollment for certain employees. The Department of Central Management Services shall automatically enroll in the State Employees Deferred Compensation Plan any employee who, on or after July 1, 2020, becomes an active member or participant of a retirement system created under Article 2, 14, or 18. Any agency with employees subject to automatic enrollment must systematically provide the employee data necessary for enrollment to the Department of Central Management Services or its designee. An employee automatically enrolled under this Section shall have 3% of his or her pre-tax gross compensation for each compensation period deferred into his or her deferred compensation account. The Board may increase the default percentage amount of compensation deferred into employee accounts. An employee hired on or after January 1, 2024 shall be automatically enrolled in the Plan beginning the first day of the pay period following the close of the notice period, unless the employee elects otherwise within the notice period. During the notice period, an employee may elect to not participate in the Plan or to increase or reduce the amount of pre-tax gross compensation deferred. For the purposes of this Section, "notice period" means a reasonable period of time after the employee is provided with an automatic enrollment notice as required under Section 414(w) of the Internal Revenue Code of 1986, as amended. An employee who has been automatically enrolled in the Plan may elect, within 90 days after enrollment, to withdraw from the Plan and receive a refund of amounts deferred, plus or minus any applicable earnings, investment fees, and administrative fees. An employee making such an election shall forfeit all employer matching contributions, if any, made prior to the election. Any refunded amount shall be included in the employee's gross income for the taxable year in which the refund is issued. An employee hired on or after July 1, 2020 and before January 1, 2024 shall have 30 days from the start date of employment to elect to not participate in the deferred compensation plan or to elect to increase or reduce the amount of pre-tax gross compensation deferred. An employee shall be automatically enrolled in the Plan beginning the first day of the pay period following the employee's thirtieth day of employment. An employee who has been automatically enrolled in the Plan may elect, within 90 days of enrollment, to withdraw from the Plan and receive a refund of amounts deferred, plus or minus any applicable earnings, investment fees, and administrative fees. An employee making such an election shall forfeit all employer matching contributions, if any, made prior to the election. Any refunded amount shall be included in the employee's gross income for the taxable year in which the refund is issued.
As soon as practicable, the Board shall establish annual, automatic increases to employee contribution rates for employees who are automatically enrolled in the Plan pursuant to this Section. The amount of automatic annual increases in any 12-month period shall not exceed 1% of compensation. Employees may elect to not receive automatic annual increases in a manner described by the Board.(Source: P.A. 102-219, eff. 7-30-21; 103-552, eff. 8-11-23.) |
(40 ILCS 5/24-106) (from Ch. 108 1/2, par. 24-106)
Sec. 24-106.
The State or the unit of local government or school district under a
deferred compensation program shall be obligated at any point in time
solely for the then current value of the particular fixed or variable life
insurance or annuity contract, mutual funds or other investment purchased
on behalf of any employee.
(Source: P.A. 78-1277.)
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(40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
Sec. 24-107. Local government plans.
(a) Any unit of local government or school district may
establish for its employees a deferred compensation plan.
Participation shall be by written agreement between each employee and
the legislative authority of the unit of local government or school
district providing for the deferral of such compensation and the
subsequent investment and administration of such funds.
(b) Any unit of local government may establish an employer-funded
money purchase retirement plan for those of its full time employees who are
not eligible to participate in any pension fund or retirement system
established under Articles 2 through 18 of this Code. Contributions to the
plan shall be made by the unit of local government only from general
purpose funds not derived from real property taxes imposed by the unit, at
a rate to be determined from time to time by the unit of local government.
However, the rate of employer contribution shall be (i) the same for all
employees participating in the plan, and (ii) not more than 10% of the
employee's salary.
Any benefits accruing to the participants in a retirement plan
established under this subsection shall be protected from impairment in
accordance with Article XIII, Section 5 of the Illinois Constitution.
However, the unit of local government establishing such a plan may
terminate it at any time, unless it has otherwise contractually agreed
with its participating employees.
(c) The agency or department designated by the unit of local government
or school district to establish and administer a plan or program authorized
under subsection (a) or (b) of this Section may invest the assets of the
plan in investments deemed appropriate by the agency or
department, including but not limited to life insurance or annuity
contracts, and share or share certificate accounts of State or federal
credit unions, the accounts of which are insured as required by the
Illinois Credit Union Act or the Federal Credit Union Act, whichever is
applicable. The payment of employer contributions to a retirement
plan established under subsection (b), and investment and
payment to a participant of deferred compensation and income or gain
thereon, if any, shall not be construed to be prohibited uses of the
general assets of the unit of local government or school district.
This Section does not limit the power or authority of any unit of
local government, school district or any institution supported in whole
or in part by public funds to establish and administer any other
deferred compensation plans that may be authorized by law and deemed
appropriate by the officials of such subdivisions or institutions.
(d) In administering the deferred compensation plans authorized under this Section, the governing board or administrators of the sponsoring unit of local government or school district shall require that the deferred compensation plan recordkeeper agree that, in performing services with respect to the deferred compensation plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the deferred compensation plan or the deferred compensation plan's participants to solicit the participants in the deferred compensation plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the deferred compensation plan; and (ii) will not promote, recommend, endorse, or solicit participants in the deferred compensation plan to purchase any financial products or services outside of the deferred compensation plan, except that links to parts of the recordkeeper's website that are generally available to the public, are about commercial products, and may be encountered by a Plan participant in the regular course of navigating the recordkeeper's website will not constitute a violation of this item (ii). (Source: P.A. 103-552, eff. 8-11-23.)
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(40 ILCS 5/24-108) (from Ch. 108 1/2, par. 24-108)
Sec. 24-108.
In the event that any fireman is transferred to a municipal
fire department as a consequence of the absorption of a fire protection
district occurring prior to January 1, 1980, and such fireman has entered
into a deferred compensation and/or annuity contract with the absorbing
municipality pursuant to Section 24-101, then notwithstanding Section 4-142,
such municipality may make contributions to the deferred compensation or
annuity program on such fireman's behalf, and any such contributions made
prior to the effective date of this amendatory Act of 1981 are hereby validated.
(Source: P.A. 82-179.)
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(40 ILCS 5/24-109) (from Ch. 108 1/2, par. 24-109)
Sec. 24-109.
Football Coaches.
(a) Any football coach employed by the Board of Trustees of Chicago State
University, the Board of Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of Trustees of Illinois State
University, the Board of Trustees of Northeastern Illinois University, the
Board of Trustees of Northern Illinois University, the Board of Trustees of
Western Illinois University, the University of Illinois
Board of Trustees, or the Southern Illinois University System Board of
Trustees, may participate in the American Football Coaches Retirement Trust
in accordance with the conditions of that Trust, of this Section, and of
applicable federal law.
(b) A football coach who elects to participate in the Trust may defer a
part of his compensation as a coach by making employee contributions to the
Trust. Amounts deferred by the coach under this Section shall be deemed a
part of the coach's compensation for purposes of participation in the State
Universities Retirement System but, in accordance with the U.S. Internal
Revenue Code of 1986, shall not be included in the computation of federal
income taxes withheld on behalf of the coach. The employing institution of
higher education shall not make any employer contributions to the Trust on
behalf of the coach.
(c) A football coach who participates in the Trust may not participate
in any other program of deferred compensation under this Article during any
year in which he makes contributions to the Trust.
(d) Participation in the Trust shall be administered by
the institution of higher education that employs the
coach. Each such institution shall report annually to the General
Assembly on the status of the Trust and
participation under this Section.
(e) The right to participate in the Trust that is granted by this
Section is subject to future limitation, and shall not be deemed to be a
pension benefit that is protected from impairment under Section 5 of
Article XIII of the Illinois Constitution.
(Source: P.A. 90-14, eff. 7-1-97.)
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