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90_HB0313enr
40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110
Amends the State Employee Article of the Pension Code to
provide the alternative (State Police) formula for arson
investigators employed by the Office of the State Fire
Marshal. Effective immediately.
LRB9000555EGfg
HB0313 Enrolled LRB9000555EGfg
1 AN ACT in relation to public employee pensions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 3-110.5, 3-110.6, 4-109.1, 4-115.1,
6 5-167.5, 5-237, 6-164.2, 7-139.8, 7-141.1, 8-138, 8-150.1,
7 8-159, 8-164.1, 9-101, 9-121.13, 9-133, 9-133.1, 9-179.3,
8 11-134, 11-145.1, 11-154, 11-160.1, 14-104, 14-110, 15-157,
9 15-157.1, 16-127, 16-141, 17-106, 17-115, 17-116.1, 17-117,
10 17-117.1, 17-120, 17-122, 17-134, 17-146, 17-146.1 and 17-149
11 and adding Sections 7-145.1, 7-145.2, 9-120.1, 9-134.3,
12 9-146.2, and 14-104.10 as follows:
13 (40 ILCS 5/3-110.5) (from Ch. 108 1/2, par. 3-110.5)
14 Sec. 3-110.5. Transfer to Article 14 system.
15 (a) Until January 1, 1990, any active member of the
16 State Employees' Retirement System who is a State policeman
17 and until July 1, 1998, any active member of the State
18 Employees' Retirement System who is a security employee of
19 the Department of Corrections may apply for transfer of his
20 or her creditable service accumulated in any police pension
21 fund under this Article to the State Employees' Retirement
22 System. Such creditable service shall be transferred only
23 upon payment by such police pension fund to the State
24 Employees' Retirement System of an amount equal to:
25 (1) the amounts accumulated to the credit of the
26 applicant on the books of the fund on the date of
27 transfer; and
28 (2) employer contributions in an amount equal to
29 the amount determined under subparagraph (1); and
30 (3) any interest paid by the applicant in order to
31 reinstate service.
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1 Participation in this Fund shall terminate on the date of
2 transfer.
3 (b) Until January 1, 1990, any such State policeman and
4 until July 1, 1998, any such security employee of the
5 Department of Corrections may reinstate service which was
6 terminated by receipt of a refund, by payment to the police
7 pension fund of the amount of the refund with interest
8 thereon at the rate of 6% per year, compounded annually, from
9 the date of refund to the date of payment.
10 (Source: P.A. 86-272.)
11 (40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
12 Sec. 3-110.6. Transfer to Article 14 System.
13 (a) Any active member of the State Employees' Retirement
14 System who is an investigator for the Office of the State's
15 Attorneys Appellate Prosecutor or a controlled substance
16 inspector may apply for transfer of his or her creditable
17 service accumulated in any police pension fund under this
18 Article to the State Employees' Retirement System in
19 accordance with Section 14-110. The creditable service shall
20 be transferred only upon payment by the police pension fund
21 to the State Employees' Retirement System of an amount equal
22 to:
23 (1) the amounts accumulated to the credit of the
24 applicant on the books of the fund on the date of
25 transfer; and
26 (2) employer contributions in an amount equal to
27 the amount determined under subparagraph (1); and
28 (3) any interest paid by the applicant in order to
29 reinstate service.
30 Participation in the police pension fund shall terminate on
31 the date of transfer.
32 (b) Any such investigator or inspector may reinstate
33 service which was terminated by receipt of a refund, by
HB0313 Enrolled -3- LRB9000555EGfg
1 paying to the police pension fund the amount of the refund
2 with interest thereon at the rate of 6% per year, compounded
3 annually, from the date of refund to the date of payment.
4 (Source: P.A. 87-1265.)
5 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
6 Sec. 4-109.1. Increase in pension.
7 (a) Except as provided in subsection (e), the monthly
8 pension of a firefighter who retires after July 1, 1971 and
9 prior to January 1, 1986, shall, upon either the first of the
10 month following the first anniversary of the date of
11 retirement if 60 years of age or over at retirement date, or
12 upon the first day of the month following attainment of age
13 60 if it occurs after the first anniversary of retirement, be
14 increased by 2% of the originally granted monthly pension and
15 by an additional 2% in each January thereafter. Effective
16 January 1976, the rate of the annual increase shall be 3% of
17 the originally granted monthly pension.
18 (b) The monthly pension of a firefighter who retired
19 from service with 20 or more years of service, on or before
20 July 1, 1971, shall be increased, in January of the year
21 following the year of attaining age 65 or in January 1972, if
22 then over age 65, by 2% of the originally granted monthly
23 pension, for each year the firefighter received pension
24 payments. In each January thereafter, he or she shall
25 receive an additional increase of 2% of the original monthly
26 pension. Effective January 1976, the rate of the annual
27 increase shall be 3%.
28 (c) The monthly pension of a firefighter who is
29 receiving a disability pension under this Article shall be
30 increased, in January of the year following the year the
31 firefighter attains age 60, or in January 1974, if then over
32 age 60, by 2% of the originally granted monthly pension for
33 each year he or she received pension payments. In each
HB0313 Enrolled -4- LRB9000555EGfg
1 January thereafter, the firefighter shall receive an
2 additional increase of 2% of the original monthly pension.
3 Effective January 1976, the rate of the annual increase shall
4 be 3%.
5 (c-1) On January 1, 1998, every child's disability
6 benefit payable on that date under Section 4-110 or 4-110.1
7 shall be increased by an amount equal to 1/12 of 3% of the
8 amount of the benefit, multiplied by the number of months for
9 which the benefit has been payable. On each January 1
10 thereafter, every child's disability benefit payable under
11 Section 4-110 or 4-110.1 shall be increased by 3% of the
12 amount of the benefit then being paid, including any previous
13 increases received under this Article. These increases are
14 not subject to any limitation on the maximum benefit amount
15 included in Section 4-110 or 4-110.1.
16 (d) The monthly pension of a firefighter who retires
17 after January 1, 1986, shall, upon either the first of the
18 month following the first anniversary of the date of
19 retirement if 55 years of age or over at retirement date, or
20 upon the first day of the month following attainment of age
21 55 if it occurs after the first anniversary of retirement, be
22 increased by 3% of the originally granted monthly pension for
23 each full year that has elapsed since the pension began, and
24 by an additional 3% in each January thereafter.
25 (e) Notwithstanding the provisions of subsection (a),
26 upon the first day of the month following (1) the first
27 anniversary of the date of retirement, or (2) the attainment
28 of age 55, or (3) July 1, 1987, whichever occurs latest, the
29 monthly pension of a firefighter who retired on or after
30 January 1, 1977 and on or before January 1, 1986 and did not
31 receive an increase under subsection (a) before July 1, 1987,
32 shall be increased by 3% of the originally granted monthly
33 pension for each full year that has elapsed since the pension
34 began, and by an additional 3% in each January thereafter.
HB0313 Enrolled -5- LRB9000555EGfg
1 The increases provided under this subsection are in lieu of
2 the increases provided in subsection (a).
3 (Source: P.A. 85-941.)
4 (40 ILCS 5/4-115.1) (from Ch. 108 1/2, par. 4-115.1)
5 Sec. 4-115.1. Eligibility of children. Dependent
6 benefits shall be paid to each natural child of a deceased
7 firefighter, and to each child legally adopted before the
8 firefighter attains age 50, until the child's attainment of
9 age 18, or marriage, whichever occurs first, whether or not
10 the death of the firefighter occurred prior to November 21,
11 1975.
12 Benefits payable to or on account of a child under this
13 Article shall not be reduced or terminated by reason of the
14 child's adoption by a third party after the firefighter's
15 death.
16 Benefits payable to or on account of a child under this
17 Article to children shall not be reduced or terminated by
18 reason of the child's attainment of age 18 if he or she is
19 then dependent by reason of a physical or mental disability
20 but shall continue to be paid as long as such dependency
21 continues. Individuals over the age of 18 and adjudged as a
22 disabled person pursuant to Article XIa of the Probate Act of
23 1975, except for persons receiving benefits under Article III
24 of the Illinois Public Aid Code, shall be eligible to receive
25 benefits under this Act.
26 (Source: P.A. 83-1440.)
27 (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
28 Sec. 5-167.5. Group health benefit.
29 (a) For the purposes of this Section: (1) "annuitant"
30 means a person receiving an age and service annuity, a prior
31 service annuity, a widow's annuity, a widow's prior service
32 annuity, or a minimum annuity on or after January 1, 1988,
HB0313 Enrolled -6- LRB9000555EGfg
1 under Article 5, 6, 8 or 11, by reason of previous employment
2 by the City of Chicago (hereinafter, in this Section, "the
3 city"); (2) "Medicare Plan annuitant" means an annuitant
4 described in item (1) who is eligible for Medicare benefits;
5 and (3) "non-Medicare Plan annuitant" means an annuitant
6 described in item (1) who is not eligible for Medicare
7 benefits.
8 (b) The city shall continue to offer group health
9 benefits to annuitants and their eligible dependents through
10 June 30, 2002. The same basic city health care plan
11 available as of June 30, 1988 (hereinafter called the basic
12 city plan) shall cease to be a plan offered by the city,
13 except as specified in subparagraphs (4) and (5) below, and
14 shall be closed to new enrollment or transfer of coverage for
15 any non-Medicare Plan annuitant as of the effective date of
16 this amendatory Act of 1997. The city shall offer
17 non-Medicare Plan annuitants and their eligible dependents
18 the option of enrolling in its Annuitant Preferred Provider
19 Plan, and may offer additional plans for any annuitant. The
20 city may amend, modify, or terminate any of its additional
21 plans at its sole discretion. If the city offers more than
22 one annuitant plan, the city shall allow annuitants to
23 convert coverage from one city annuitant plan to another,
24 except the basic city plan, during times designated by the
25 city, which periods of time shall occur at least annually.
26 For the period dating from the effective date of this
27 amendatory Act of 1997 through June 30, 2002, monthly premium
28 rates may be increased for annuitants during the time of
29 their participation in non-Medicare plans, except as provided
30 in subparagraphs (1) through (4) of this subsection.
31 (1) For non-Medicare Plan annuitants who retired
32 prior to January 1, 1988, the annuitant's share of
33 monthly premium for non-Medicare Plan coverage only shall
34 not exceed the highest premium rate chargeable under any
HB0313 Enrolled -7- LRB9000555EGfg
1 city non-Medicare Plan annuitant coverage as of December
2 1, 1996.
3 (2) For non-Medicare Plan annuitants who retire on
4 or after January 1, 1988, the annuitant's share of
5 monthly premium for non-Medicare Plan coverage only shall
6 be the rate in effect on December 1, 1996, with monthly
7 premium increases to take effect no sooner than April 1,
8 1998 at the lower of (i) the premium rate determined
9 pursuant to subsection (g) or (ii) 10% of the immediately
10 previous month's rate for similar coverage.
11 (3) In no event shall any non-Medicare Plan
12 annuitant's share of monthly premium for non-Medicare
13 Plan coverage exceed 10% of the annuitant's monthly
14 annuity.
15 (4) Non-Medicare Plan annuitants who are enrolled
16 in the basic city plan as of July 1, 1998 may remain in
17 the basic city plan, if they so choose, on the condition
18 that they are not entitled to the caps on rates set forth
19 in subparagraphs (1) through (3), and their premium rate
20 shall be the rate determined in accordance with
21 subsections (c) and (g).
22 (5) Medicare Plan annuitants who are currently
23 enrolled in the basic city plan for Medicare eligible
24 annuitants may remain in that plan, if they so choose,
25 through June 30, 2002. Annuitants shall not be allowed
26 to enroll in or transfer into the basic city plan for
27 Medicare eligible annuitants on or after July 1, 1999.
28 The city shall continue to offer annuitants a
29 supplemental Medicare Plan for Medicare eligible
30 annuitants through June 30, 2002, and the city may offer
31 additional plans to Medicare eligible annuitants in its
32 sole discretion. All Medicare Plan annuitant monthly
33 rates shall be determined in accordance with subsections
34 (c) and (g).
HB0313 Enrolled -8- LRB9000555EGfg
1 (c) Effective the date the initial increased annuitant
2 payments pursuant to subsection (g) take effect, The city
3 shall pay 50% of the aggregated costs of the claims or
4 premiums, whichever is applicable, as determined in
5 accordance with subsection (g), of annuitants and their
6 dependents under all health care plans offered by the city.
7 The city may reduce its obligation by application of price
8 reductions obtained as a result of financial arrangements
9 with providers or plan administrators. The claims or
10 premiums of all annuitants and their dependents under all of
11 the plans offered by the city shall be aggregated for the
12 purpose of calculating the city's payment required under this
13 subsection, as well as for the setting of rates of payment
14 for annuitants as required under subsection (g).
15 (d) From January 1, 1988 until December 31, 1992, the
16 board shall pay to the city on behalf of each of the board's
17 annuitants who chooses to participate in any of the city's
18 plans the following amounts: up to a maximum of $65 per month
19 for each such annuitant who is not qualified to receive
20 medicare benefits, and up to a maximum of $35 per month for
21 each such annuitant who is qualified to receive medicare
22 benefits. From January 1, 1993 until June 30, 2002 December
23 31, 1997, the board shall pay to the city on behalf of each
24 of the board's annuitants who chooses to participate in any
25 of the city's plans the following amounts: up to a maximum of
26 $75 per month for each such annuitant who is not qualified to
27 receive medicare benefits, and up to a maximum of $45 per
28 month for each such annuitant who is qualified to receive
29 medicare benefits.
30 For the period January 1, 1988 through the effective date
31 of this amendatory Act of 1989, payments under this Section
32 shall be reduced by the amounts paid by or on behalf of the
33 board's annuitants covered during that period.
34 The payments described in this subsection shall be paid
HB0313 Enrolled -9- LRB9000555EGfg
1 from the tax levy authorized under Section 5-168; such
2 amounts shall be credited to the reserve for group hospital
3 care and group medical and surgical plan benefits, and all
4 payments to the city required under this subsection shall be
5 charged against it.
6 (e) The city's obligations under subsections (b) and (c)
7 shall terminate on June 30, 2002 December 31, 1997, except
8 with regard to covered expenses incurred but not paid as of
9 that date. This subsection shall not affect other
10 obligations that may be imposed by law.
11 (f) The group coverage plans described in this Section
12 are not and shall not be construed to be pension or
13 retirement benefits for purposes of Section 5 of Article XIII
14 of the Illinois Constitution of 1970.
15 (g) For each annuitant plan offered by the city, the
16 aggregate cost of claims, as reflected in the claim records
17 of the plan administrator, and premiums for each calendar
18 year from 1989 through 1997 of all annuitants and dependents
19 covered by the city's group health care plans shall be
20 estimated by the city, based upon a written determination by
21 a qualified independent actuary to be appointed and paid by
22 the city and the board. If the such estimated annual cost
23 for each annuitant plan offered by the city is more than the
24 estimated amount to be contributed by the city for that plan
25 pursuant to subsections (b) and (c) during that year plus the
26 estimated amounts to be paid pursuant to subsection (d) and
27 by the other pension boards on behalf of other participating
28 annuitants, the difference shall be paid by all participating
29 annuitants participating in the plan, except as provided in
30 subsection (b). The city, based upon the determination of
31 the independent actuary, shall set the monthly amounts to be
32 paid by the participating annuitants. The initial
33 determination of such payments shall be prospective only and
34 shall be based upon the estimated costs for the balance of
HB0313 Enrolled -10- LRB9000555EGfg
1 the year. The board may deduct the amounts to be paid by its
2 annuitants from the participating annuitants' monthly
3 annuities.
4 If it is determined from the city's annual audit, or from
5 audited experience data, that the total amount paid by all
6 participating annuitants was more or less than the difference
7 between (1) the cost of providing the group health care
8 plans, and (2) the sum of the amount to be paid by the city
9 as determined under subsection (c) and the amounts paid by
10 all the pension boards, then the independent actuary and the
11 city shall account for the excess or shortfall in the next
12 year's payments by annuitants, except as provided in
13 subsection (b).
14 (h) An annuitant may elect to terminate coverage in a
15 plan at the end of any month any time, which election shall
16 terminate the annuitant's obligation to contribute toward
17 payment of the excess described in subsection (g).
18 (i) The city shall advise the board of all proposed
19 premium increases for health care at least 75 days prior to
20 the effective date of the change, and any increase shall be
21 prospective only.
22 (Source: P.A. 86-273.)
23 (40 ILCS 5/5-237)
24 Sec. 5-237. Transfer of creditable service to Article 9
25 fund.
26 (a) Any person who is an active participant in the
27 pension fund established under Article 9 of this Code and who
28 was employed by the office of the Cook County State's
29 Attorney on January 1, 1995 may apply for transfer of his or
30 her credits and creditable service accumulated in this Fund
31 to that Article 9 fund. Upon receipt of a written
32 application to make this transfer, the Fund shall pay to the
33 Article 9 fund an amount consisting of:
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1 (1) the amounts credited to the applicant through
2 employee contributions, plus accumulated interest; plus
3 (2) an amount representing municipality
4 contributions, equal to the amount determined under item
5 (1); plus
6 (3) any interest paid to the Fund in order to
7 reinstate credits and creditable service under subsection
8 (b).
9 Participation in this Fund shall terminate on the date of the
10 transfer.
11 (a-5) Until July 1, 1998, any person who is an active
12 participant in the pension fund established under Article 9
13 of this Code and a member of the county police department as
14 defined in Section 9-128.1 may apply for transfer of his or
15 her credits and creditable service accumulated in this Fund
16 to that Article 9 fund. Upon receipt of a written
17 application to make this transfer, the Fund shall pay to the
18 Article 9 fund an amount consisting of:
19 (1) the amounts credited to the applicant through
20 employee contributions, plus accumulated interest; plus
21 (2) an amount representing municipality
22 contributions, equal to the amount determined under item
23 (1); plus
24 (3) any interest paid to the Fund in order to
25 reinstate credits and creditable service under subsection
26 (b).
27 Participation in this Fund shall terminate on the date of the
28 transfer.
29 (b) As part of a transfer under subsection (a) or (a-5),
30 a person may reinstate credits and creditable service that
31 was terminated upon receipt of a refund, by paying to the
32 Fund the amount of the refund plus interest thereon at the
33 rate of 6% per year, compounded annually, from the date of
34 the refund to the date of payment.
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1 (Source: P.A. 89-136, eff. 7-14-95.)
2 (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
3 Sec. 6-164.2. Group health benefit.
4 (a) For the purposes of this Section: (1) "annuitant"
5 means a person receiving an age and service annuity, a prior
6 service annuity, a widow's annuity, a widow's prior service
7 annuity, or a minimum annuity on or after January 1, 1988,
8 under Article 5, 6, 8 or 11, by reason of previous employment
9 by the City of Chicago (hereinafter, in this Section, "the
10 city"); (2) "Medicare Plan annuitant" means an annuitant
11 described in item (1) who is eligible for Medicare benefits;
12 and (3) "non-Medicare Plan annuitant" means an annuitant
13 described in item (1) who is not eligible for Medicare
14 benefits.
15 (b) The city shall continue to offer group health
16 benefits to annuitants and their eligible dependents through
17 June 30, 2002. The same basic city health care plan
18 available as of June 30, 1988 (hereinafter called the basic
19 city plan) shall cease to be a plan offered by the city,
20 except as specified in subparagraphs (4) and (5) below, and
21 shall be closed to new enrollment or transfer of coverage for
22 any non-Medicare Plan annuitant as of the effective date of
23 this amendatory Act of 1997. The city shall offer
24 non-Medicare Plan annuitants and their eligible dependents
25 the option of enrolling in its Annuitant Preferred Provider
26 Plan, and may offer additional plans for any annuitant. The
27 city may amend, modify, or terminate any of its additional
28 plans at its sole discretion. If the city offers more than
29 one annuitant plan, the city shall allow annuitants to
30 convert coverage from one city annuitant plan to another,
31 except the basic city plan, during times designated by the
32 city, which periods of time shall occur at least annually.
33 For the period dating from the effective date of this
HB0313 Enrolled -13- LRB9000555EGfg
1 amendatory Act of 1997 through June 30, 2002, monthly
2 premium rates may be increased for annuitants during the time
3 of their participation in non-Medicare plans, except as
4 provided in subparagraphs (1) through (4) of this subsection.
5 (1) For non-Medicare Plan annuitants who retired
6 prior to January 1, 1988, the annuitant's share of
7 monthly premium for non-Medicare Plan coverage only shall
8 not exceed the highest premium rate chargeable under any
9 city non-Medicare Plan annuitant coverage as of December
10 1, 1996.
11 (2) For non-Medicare Plan annuitants who retire on
12 or after January 1, 1988, the annuitant's share of
13 monthly premium for non-Medicare Plan coverage only shall
14 be the rate in effect on December 1, 1996, with monthly
15 premium increases to take effect no sooner than April 1,
16 1998 at the lower of (i) the premium rate determined
17 pursuant to subsection (g) or (ii) 10% of the immediately
18 previous month's rate for similar coverage.
19 (3) In no event shall any non-Medicare Plan
20 annuitant's share of monthly premium for non-Medicare
21 Plan coverage exceed 10% of the annuitant's monthly
22 annuity.
23 (4) Non-Medicare Plan annuitants who are enrolled
24 in the basic city plan as of July 1, 1998 may remain in
25 the basic city plan, if they so choose, on the condition
26 that they are not entitled to the caps on rates set forth
27 in subparagraphs (1) through (3), and their premium rate
28 shall be the rate determined in accordance with
29 subsections (c) and (g).
30 (5) Medicare Plan annuitants who are currently
31 enrolled in the basic city plan for Medicare eligible
32 annuitants may remain in that plan, if they so choose,
33 through June 30, 2002. Annuitants shall not be allowed
34 to enroll in or transfer into the basic city plan for
HB0313 Enrolled -14- LRB9000555EGfg
1 Medicare eligible annuitants on or after July 1, 1999.
2 The city shall continue to offer annuitants a
3 supplemental Medicare Plan for Medicare eligible
4 annuitants through June 30, 2002, and the city may offer
5 additional plans to Medicare eligible annuitants in its
6 sole discretion. All Medicare Plan annuitant monthly
7 rates shall be determined in accordance with subsections
8 (c) and (g).
9 (c) Effective the date the initial increased annuitant
10 payments pursuant to subsection (g) take effect, The city
11 shall pay 50% of the aggregated costs of the claims or
12 premiums, whichever is applicable, as determined in
13 accordance with subsection (g), of annuitants and their
14 dependents under all health care plans offered by the city.
15 The city may reduce its obligation by application of price
16 reductions obtained as a result of financial arrangements
17 with providers or plan administrators. The claims or
18 premiums of all annuitants and their dependents under all of
19 the plans offered by the city shall be aggregated for the
20 purpose of calculating the city's payment required under this
21 subsection, as well as for the setting of rates of payment
22 for annuitants as required under subsection (g).
23 (d) From January 1, 1988 until December 31, 1992, the
24 board shall pay to the city on behalf of each of the board's
25 annuitants who chooses to participate in any of the city's
26 plans the following amounts: up to a maximum of $65 per month
27 for each such annuitant who is not qualified to receive
28 medicare benefits, and up to a maximum of $35 per month for
29 each such annuitant who is qualified to receive medicare
30 benefits. From January 1, 1993 until June 30, 2002 December
31 31, 1997, the board shall pay to the city on behalf of each
32 of the board's annuitants who chooses to participate in any
33 of the city's plans the following amounts: up to a maximum of
34 $75 per month for each such annuitant who is not qualified to
HB0313 Enrolled -15- LRB9000555EGfg
1 receive medicare benefits, and up to a maximum of $45 per
2 month for each such annuitant who is qualified to receive
3 medicare benefits.
4 For the period January 1, 1988 through the effective date
5 of this amendatory Act of 1989, payments under this Section
6 shall be reduced by the amounts paid by or on behalf of the
7 board's annuitants covered during that period.
8 The payments described in this subsection shall be paid
9 from the tax levy authorized under Section 6-165; such
10 amounts shall be credited to the reserve for group hospital
11 care and group medical and surgical plan benefits, and all
12 payments to the city required under this subsection shall be
13 charged against it.
14 (e) The city's obligations under subsections (b) and (c)
15 shall terminate on June 30, 2002 December 31, 1997, except
16 with regard to covered expenses incurred but not paid as of
17 that date. This subsection shall not affect other
18 obligations that may be imposed by law.
19 (f) The group coverage plans described in this Section
20 are not and shall not be construed to be pension or
21 retirement benefits for purposes of Section 5 of Article XIII
22 of the Illinois Constitution of 1970.
23 (g) For each annuitant plan offered by the city, the
24 aggregate cost of claims, as reflected in the claim records
25 of the plan administrator, and premiums for each calendar
26 year from 1989 through 1997 of all annuitants and dependents
27 covered by the city's group health care plans shall be
28 estimated by the city, based upon a written determination by
29 a qualified independent actuary to be appointed and paid by
30 the city and the board. If the such estimated annual cost
31 for each annuitant plan offered by the city is more than the
32 estimated amount to be contributed by the city for that plan
33 pursuant to subsections (b) and (c) during that year plus the
34 estimated amounts to be paid pursuant to subsection (d) and
HB0313 Enrolled -16- LRB9000555EGfg
1 by the other pension boards on behalf of other participating
2 annuitants, the difference shall be paid by all participating
3 annuitants participating in the plan, except as provided in
4 subsection (b). The city, based upon the determination of
5 the independent actuary, shall set the monthly amounts to be
6 paid by the participating annuitants. The initial
7 determination of such payments shall be prospective only and
8 shall be based upon the estimated costs for the balance of
9 the year. The board may deduct the amounts to be paid by its
10 annuitants from the participating annuitants' monthly
11 annuities.
12 If it is determined from the city's annual audit, or from
13 audited experience data, that the total amount paid by all
14 participating annuitants was more or less than the difference
15 between (1) the cost of providing the group health care
16 plans, and (2) the sum of the amount to be paid by the city
17 as determined under subsection (c) and the amounts paid by
18 all the pension boards, then the independent actuary and the
19 city shall account for the excess or shortfall in the next
20 year's payments by annuitants, except as provided in
21 subsection (b).
22 (h) An annuitant may elect to terminate coverage in a
23 plan at the end of any month any time, which election shall
24 terminate the annuitant's obligation to contribute toward
25 payment of the excess described in subsection (g).
26 (i) The city shall advise the board of all proposed
27 premium increases for health care at least 75 days prior to
28 the effective date of the change, and any increase shall be
29 prospective only.
30 (Source: P.A. 86-273.)
31 (40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
32 Sec. 7-139.8. Transfer to Article 14 System.
33 (a) Any active member of the State Employees' Retirement
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1 System who is an investigator for the Office of the State's
2 Attorneys Appellate Prosecutor or a controlled substance
3 inspector may apply for transfer of his or her credits and
4 creditable service accumulated in this Fund for service as a
5 sheriff's law enforcement employee to the State Employees'
6 Retirement System in accordance with Section 14-110. The
7 creditable service shall be transferred only upon payment by
8 this Fund to the State Employees' Retirement System of an
9 amount equal to:
10 (1) the amounts accumulated to the credit of the
11 applicant for service as a sheriff's law enforcement
12 employee, including interest; and
13 (2) municipality credits based on such service,
14 including interest; and
15 (3) any interest paid by the applicant to reinstate
16 such service.
17 Participation in this Fund as to any credits transferred
18 under this Section shall terminate on the date of transfer.
19 (b) Any such investigator or inspector may reinstate
20 credits and creditable service terminated upon receipt of a
21 separation benefit, by paying to the Fund the amount of the
22 separation benefit plus interest thereon at the rate of 6%
23 per year to the date of payment.
24 (Source: P.A. 87-1265.)
25 (40 ILCS 5/7-141.1)
26 Sec. 7-141.1. Early retirement incentive.
27 (a) The General Assembly finds and declares that:
28 (1) Units of local government across the State have
29 been functioning under a financial crisis.
30 (2) This financial crisis is expected to continue.
31 (3) Units of local government must depend on
32 additional sources of revenue and, when those sources are
33 not forthcoming, must establish cost-saving programs.
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1 (4) An early retirement incentive designed
2 specifically to target highly-paid senior employees could
3 result in significant annual cost savings.
4 (5) The early retirement incentive should be made
5 available only to those units of local government that
6 determine that an early retirement incentive is in their
7 best interest.
8 (6) A unit of local government adopting a program
9 of early retirement incentives under this Section is
10 encouraged to implement personnel procedures to prohibit,
11 for at least 5 years, the rehiring (whether on payroll or
12 by independent contract) of employees who receive early
13 retirement incentives.
14 (7) A unit of local government adopting a program
15 of early retirement incentives under this Section is also
16 encouraged to replace as few of the participating
17 employees as possible and to hire replacement employees
18 for salaries totaling no more than 80% of the total
19 salaries formerly paid to the employees who participate
20 in the early retirement program.
21 It is the primary purpose of this Section to encourage
22 units of local government that can realize true cost savings,
23 or have determined that an early retirement program is in
24 their best interest, to implement an early retirement
25 program.
26 (b) Until the effective date of this amendatory Act of
27 1997, this Section does not apply to any employer that is a
28 city, village, or incorporated town, nor to the employees of
29 any such employer. Beginning on the effective date of this
30 amendatory Act of 1997, any employer under this Article,
31 including an employer that is a city, village, or
32 incorporated town, may establish an early retirement
33 incentive program for its employees under this Section. The
34 decision of a city, village, or incorporated town to consider
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1 or establish an early retirement program is at the sole
2 discretion of that city, village, or incorporated town, and
3 nothing in this amendatory Act of 1997 limits or otherwise
4 diminishes this discretion. Nothing contained in this
5 Section shall be construed to require a city, village, or
6 incorporated town to establish an early retirement program
7 and no city, village, or incorporated town may be compelled
8 to implement such a program. All references in this Section
9 to an "employer" or "unit of local government" are
10 specifically intended to exclude every employer that is a
11 city, village, or incorporated town.
12 The benefits provided in this Section are available only
13 to members employed by a participating employer that has
14 filed with the Board of the Fund a resolution or ordinance
15 expressly providing for the creation of an early retirement
16 incentive program under this Section for its employees and
17 specifying the effective date of the early retirement
18 incentive program. Subject to the limitation in subsection
19 (h), an employer may adopt a resolution or ordinance
20 providing a program of early retirement incentives under this
21 Section at any time, but no more often than once in 5 years.
22 The resolution or ordinance shall be in substantially the
23 following form:
24 RESOLUTION (ORDINANCE) NO. ....
25 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
26 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
27 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
28 WHEREAS, Section 7-141.1 of the Illinois Pension Code
29 provides that a participating employer may elect to adopt an
30 early retirement incentive program offered by the Illinois
31 Municipal Retirement Fund by adopting a resolution or
32 ordinance; and
33 WHEREAS, The goal of adopting an early retirement program
34 is to realize a substantial savings in personnel costs by
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1 offering early retirement incentives to employees who have
2 accumulated many years of service credit; and
3 WHEREAS, Implementation of the early retirement program
4 will provide a budgeting tool to aid in controlling payroll
5 costs; and
6 WHEREAS, The (name of governing body) has determined that
7 the adoption of an early retirement incentive program is in
8 the best interests of the (name of participating employer);
9 therefore be it
10 RESOLVED (ORDAINED) by the (name of governing body) of
11 (name of participating employer) that:
12 (1) The (name of participating employer) does hereby
13 adopt the Illinois Municipal Retirement Fund early retirement
14 incentive program as provided in Section 7-141.1 of the
15 Illinois Pension Code. The early retirement incentive
16 program shall take effect on (date).
17 (2) In order to help achieve a true cost savings, a
18 person who retires under the early retirement incentive
19 program shall lose those incentives if he or she later
20 accepts employment with any IMRF employer in a position for
21 which participation in IMRF is required or is elected by the
22 employee.
23 (3) In order to utilize an early retirement incentive as
24 a budgeting tool, the (name of participating employer) will
25 use its best efforts either to limit the number of employees
26 who replace the employees who retire under the early
27 retirement program or to limit the salaries paid to the
28 employees who replace the employees who retire under the
29 early retirement program.
30 (4) The effective date of each employee's retirement
31 under this early retirement program shall be set by (name of
32 employer) and shall be no earlier than the effective date of
33 the program and no later than one year after that effective
34 date; except that the employee may require that the
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1 retirement date set by the employer be no later than the June
2 30 next occurring after the effective date of the program and
3 no earlier than the date upon which the employee qualifies
4 for retirement.
5 (5) To be eligible for the early retirement incentive
6 under this Section, the employee must have attained age 50
7 and have at least 20 years of creditable service by his or
8 her retirement date.
9 (6) The (clerk or secretary) shall promptly file a
10 certified copy of this resolution (ordinance) with the Board
11 of Trustees of the Illinois Municipal Retirement Fund.
12 CERTIFICATION
13 I, (name), the (clerk or secretary) of the (name of
14 participating employer) of the County of (name), State of
15 Illinois, do hereby certify that I am the keeper of the books
16 and records of the (name of employer) and that the foregoing
17 is a true and correct copy of a resolution (ordinance) duly
18 adopted by the (governing body) at a meeting duly convened
19 and held on (date).
20 SEAL
21 (Signature of clerk or secretary)
22 (c) To be eligible for the benefits provided under an
23 early retirement incentive program adopted under this
24 Section, a member must:
25 (1) be a participating employee of this Fund who,
26 on the effective date of the program, (i) is in active
27 payroll status as an employee of a participating employer
28 that has filed the required ordinance or resolution with
29 the Board, (ii) is on layoff status from such a position
30 with a right of re-employment or recall to service, (iii)
31 is on a leave of absence from such a position, or (iv) is
32 on disability but has not been receiving benefits under
33 Section 7-146 or 7-150 for a period of more than 2 years
34 from the date of application;
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1 (2) have never previously received a retirement
2 annuity under this Article or under the Retirement
3 Systems Reciprocal Act using service credit established
4 under this Article;
5 (3) file with the Board within 60 days of the
6 effective date of the program an application requesting
7 the benefits provided in this Section;
8 (4) have at least 20 years of creditable service in
9 the Fund by the date of retirement, without the use of
10 any creditable service established under this Section;
11 (5) have attained age 50 by the date of retirement,
12 without the use of any age enhancement received under
13 this Section; and
14 (6) be eligible to receive a retirement annuity
15 under this Article by the date of retirement, for which
16 purpose the age enhancement and creditable service
17 established under this Section may be considered.
18 (d) The employer shall determine the retirement date for
19 each employee participating in the early retirement program
20 adopted under this Section. The retirement date shall be no
21 earlier than the effective date of the program and no later
22 than one year after that effective date, except that the
23 employee may require that the retirement date set by the
24 employer be no later than the June 30 next occurring after
25 the effective date of the program and no earlier than the
26 date upon which the employee qualifies for retirement. The
27 employer shall give each employee participating in the early
28 retirement program at least 30 days written notice of the
29 employee's designated retirement date, unless the employee
30 waives this notice requirement.
31 (e) An eligible person may establish up to 5 years of
32 creditable service under this Section. In addition, for each
33 period of creditable service established under this Section,
34 a person shall have his or her age at retirement deemed
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1 enhanced by an equivalent period.
2 The creditable service established under this Section may
3 be used for all purposes under this Article and the
4 Retirement Systems Reciprocal Act, except for the computation
5 of final rate of earnings and the determination of earnings,
6 salary, or compensation under this or any other Article of
7 the Code.
8 The age enhancement established under this Section may be
9 used for all purposes under this Article (including
10 calculation of the reduction imposed under subdivision
11 (a)1b(iv) of Section 7-142), except for purposes of a
12 reversionary annuity under Section 7-145 and any
13 distributions required because of age. The age enhancement
14 established under this Section may be used in calculating a
15 proportionate annuity payable by this Fund under the
16 Retirement Systems Reciprocal Act, but shall not be used in
17 determining benefits payable under other Articles of this
18 Code under the Retirement Systems Reciprocal Act.
19 (f) For all creditable service established under this
20 Section, the member must pay to the Fund an employee
21 contribution consisting of 4.5% of the member's highest
22 annual salary rate used in the determination of the final
23 rate of earnings for retirement annuity purposes for each
24 year of creditable service granted under this Section. For
25 creditable service established under this Section by a person
26 who is a sheriff's law enforcement employee to be deemed
27 service as a sheriff's law enforcement employee, the employee
28 contribution shall be at the rate of 6.5% of highest annual
29 salary per year of creditable service granted. Contributions
30 for fractions of a year of service shall be prorated. Any
31 amounts that are disregarded in determining the final rate of
32 earnings under subdivision (d)(5) of Section 7-116 (the 125%
33 rule) shall also be disregarded in determining the required
34 contribution under this subsection (f).
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1 The employee contribution shall be paid to the Fund as
2 follows: If the member is entitled to a lump sum payment for
3 accumulated vacation, sick leave, or personal leave upon
4 withdrawal from service, the employer shall deduct the
5 employee contribution from that lump sum and pay the deducted
6 amount directly to the Fund. If there is no such lump sum
7 payment or the required employee contribution exceeds the net
8 amount of the lump sum payment, then the remaining amount
9 due, at the option of the employee, may either be paid to the
10 Fund before the annuity commences or deducted from the
11 retirement annuity in 24 equal monthly installments.
12 (g) An annuitant who has received any age enhancement or
13 creditable service under this Section and thereafter accepts
14 employment with or enters into a personal services contract
15 with an employer under this Article thereby forfeits that age
16 enhancement and creditable service. A person forfeiting
17 early retirement incentives under this subsection (i) must
18 repay to the Fund that portion of the retirement annuity
19 already received which is attributable to the early
20 retirement incentives that are being forfeited, (ii) shall
21 not be eligible to participate in any future early retirement
22 program adopted under this Section, and (iii) is entitled to
23 a refund of the employee contribution paid under subsection
24 (f). The Board shall deduct the required repayment from the
25 refund and may impose a reasonable payment schedule for
26 repaying the amount, if any, by which the required repayment
27 exceeds the refund amount.
28 (h) The additional unfunded liability accruing as a
29 result of the adoption of a program of early retirement
30 incentives under this Section by an employer shall be
31 amortized over a period of 10 years beginning on January 1 of
32 the second calendar year following the calendar year in which
33 the latest date for beginning to receive a retirement annuity
34 under the program (as determined by the employer under
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1 subsection (d) of this Section) occurs; except that the
2 employer may provide for a shorter amortization period (of no
3 less than 5 years) by adopting an ordinance or resolution
4 specifying the length of the amortization period and
5 submitting a certified copy of the ordinance or resolution to
6 the Fund no later than 6 months after the effective date of
7 the program. An employer, at its discretion, may accelerate
8 payments to the Fund.
9 An employer may provide more than one early retirement
10 incentive program for its employees under this Section.
11 However, an employer that has provided an early retirement
12 incentive program for its employees under this Section may
13 not provide another early retirement incentive program under
14 this Section until (1) the liability arising from the earlier
15 program has been fully paid to the Fund and (2) at least 6
16 years have elapsed from the effective date of the previous
17 program.
18 (Source: P.A. 89-329, eff. 8-17-95.)
19 (40 ILCS 5/7-145.1 new)
20 Sec. 7-145.1. Alternative annuity for county officers.
21 (a) The benefits provided in this Section and Section
22 7-145.2 are available only if the county board has filed with
23 the Board of the Fund a resolution or ordinance expressly
24 consenting to the availability of these benefits for its
25 elected county officers. The county board's consent is
26 irrevocable.
27 An elected county officer may elect to establish
28 alternative credits for an alternative annuity by electing in
29 writing to make additional optional contributions in
30 accordance with this Section and procedures established by
31 the board. The elected county officer may discontinue making
32 the additional optional contributions by notifying the Fund
33 in writing in accordance with this Section and procedures
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1 established by the board.
2 Additional optional contributions for the alternative
3 annuity shall be as follows:
4 (1) For service after the option is elected, an
5 additional contribution of 3% of salary shall be
6 contributed to the Fund on the same basis and under the
7 same conditions as contributions required under Section
8 7-173.
9 (2) For service before the option is elected, an
10 additional contribution of 3% of the salary for the
11 applicable period of service, plus interest at the
12 effective rate from the date of service to the date of
13 payment. All payments for past service must be paid in
14 full before credit is given. No additional optional
15 contributions may be made for any period of service for
16 which credit has been previously forfeited by acceptance
17 of a refund, unless the refund is repaid in full with
18 interest at the effective rate from the date of refund to
19 the date of repayment.
20 (b) In lieu of the retirement annuity otherwise payable
21 under this Article, an elected county officer who (1) has
22 elected to participate in the Fund and make additional
23 optional contributions in accordance with this Section and
24 (2) has attained age 55 with at least 8 years of service
25 credit (or has attained age 50 with at least 20 years of
26 service as a sheriff's law enforcement employee) may elect to
27 have his retirement annuity computed as follows: 3% of the
28 participant's salary at the time of termination of service
29 for each of the first 8 years of service credit, plus 4% of
30 that salary for each of the next 4 years of service credit,
31 plus 5% of that salary for each year of service credit in
32 excess of 12 years, subject to a maximum of 80% of that
33 salary. To the extent that the elected county officer has
34 made additional optional contributions with respect to only a
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1 portion of his years of service credit, his retirement
2 annuity will first be determined in accordance with this
3 Section to the extent that additional optional contributions
4 were made, and then in accordance with the remaining Sections
5 of this Article to the extent of years of service credit with
6 respect to which additional optional contributions were not
7 made.
8 (c) In lieu of the disability benefits otherwise payable
9 under this Article, an elected county officer who (1) has
10 elected to participate in the Fund, and (2) has become
11 permanently disabled and as a consequence is unable to
12 perform the duties of his office, and (3) was making optional
13 contributions in accordance with this Section at the time the
14 disability was incurred, may elect to receive a disability
15 annuity calculated in accordance with the formula in
16 subsection (b). For the purposes of this subsection, an
17 elected county officer shall be considered permanently
18 disabled only if: (i) disability occurs while in service as
19 an elected county officer and is of such a nature as to
20 prevent him from reasonably performing the duties of his
21 office at the time; and (ii) the board has received a written
22 certification by at least 2 licensed physicians appointed by
23 it stating that the officer is disabled and that the
24 disability is likely to be permanent.
25 (d) Refunds of additional optional contributions shall
26 be made on the same basis and under the same conditions as
27 provided under Section 7-166, 7-167 and 7-168. Interest
28 shall be credited at the effective rate on the same basis and
29 under the same conditions as for other contributions.
30 (e) The plan of optional alternative benefits and
31 contributions shall be available to persons who are elected
32 county officers and active contributors to the Fund on or
33 after November 15, 1994. A person who was an elected county
34 officer and an active contributor to the Fund on November 15,
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1 1994 but is no longer an active contributor may apply to make
2 additional optional contributions under this Section at any
3 time within 90 days after the effective date of this
4 amendatory Act of 1997; if the person is an annuitant, the
5 resulting increase in annuity shall begin to accrue on the
6 first day of the month following the month in which the
7 required payment is received by the Fund.
8 (f) For the purposes of this Section and Section
9 7-145.2, the terms "elected county officer" and "elected
10 county office" include, but are not limited to: (1) the
11 county clerk, recorder, treasurer, coroner, assessor (if
12 elected), auditor, sheriff, and State's Attorney; members of
13 the county board; and the clerk of the circuit court; and (2)
14 a person who has been appointed to fill a vacancy in an
15 office that is normally filled by election on a countywide
16 basis, for the duration of his or her service in that office.
17 The terms "elected county officer" and "elected county
18 office" do not include any officer or office of a county that
19 has not consented to the availability of benefits under this
20 Section and Section 7-145.2.
21 (40 ILCS 5/7-145.2 new)
22 Sec. 7-145.2. Alternative survivor's benefits for
23 survivors of county officers.
24 In lieu of the survivor's benefits otherwise payable
25 under this Article, the spouse or eligible child of any
26 deceased elected county officer who (1) had elected to
27 participate in the Fund, and (2) was either making additional
28 optional contributions in accordance with Section 7-145.1 on
29 the date of death, or was receiving an annuity calculated
30 under that Section at the time of death, may elect to receive
31 an annuity beginning on the date of the elected county
32 officer's death, provided that the spouse and officer must
33 have been married on the date of the last termination of his
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1 or her service as an elected county officer and for a
2 continuous period of at least one year immediately preceding
3 his or her death.
4 The annuity shall be payable beginning on the date of the
5 elected county officer's death if the spouse is then age 50
6 or over, or beginning at age 50 if the age of the spouse is
7 less than 50 years. If a minor unmarried child or children
8 of the county officer, under age 18, also survive, and the
9 child or children are under the care of the eligible spouse,
10 the annuity shall begin as of the date of death of the
11 elected county officer without regard to the spouse's age.
12 The annuity to a spouse shall be 66 2/3% of the amount of
13 retirement annuity earned by the elected county officer on
14 the date of death, subject to a minimum payment of 10% of
15 salary, provided that if an eligible spouse, regardless of
16 age, has in his or her care at the date of death of the
17 elected county officer any unmarried child or children of the
18 county officer, under age 18, the minimum annuity shall be
19 30% of the elected officer's salary, plus 10% of salary on
20 account of each minor child of the elected county officer,
21 subject to a combined total payment on account of a spouse
22 and minor children not to exceed 50% of the deceased
23 officer's salary. In the event there shall be no spouse of
24 the elected county officer surviving, or should a spouse
25 remarry or die while eligible minor children still survive
26 the elected county officer, each such child shall be entitled
27 to an annuity equal to 20% of salary of the elected officer
28 subject to a combined total payment on account of all such
29 children not to exceed 50% of salary of the elected county
30 officer. The salary to be used in the calculation of these
31 benefits shall be the same as that prescribed for determining
32 a retirement annuity as provided in Section 7-145.1.
33 Upon the death of an elected county officer occurring
34 after termination of service or while in receipt of a
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1 retirement annuity, the combined total payment to a spouse
2 and minor children, or to minor children alone if no eligible
3 spouse survives, shall be limited to 75% of the amount of
4 retirement annuity earned by the county officer.
5 Adopted children shall have status as children of the
6 elected county officer only if the proceedings for adoption
7 were commenced at least one year prior to the date of the
8 elected county officer's death.
9 Marriage of a child or attainment of age 18, whichever
10 first occurs, shall render the child ineligible for further
11 consideration in the payment of an annuity to a spouse or in
12 the increase in the amount thereof. Upon attainment of
13 ineligibility of the youngest minor child of the elected
14 county officer, the annuity shall immediately revert to the
15 amount payable upon death of an elected county officer
16 leaving no minor children surviving him or her. If the
17 spouse is under age 50 at such time, the annuity as revised
18 shall be deferred until such age is attained. Remarriage of
19 a widow or widower prior to attainment of age 55 shall
20 disqualify the spouse from the receipt of an annuity.
21 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
22 Sec. 8-138. Minimum annuities - Additional provisions.
23 (a) An employee who withdraws after age 65 or more with
24 at least 20 years of service, for whom the amount of age and
25 service and prior service annuity combined is less than the
26 amount stated in this Section, shall from the date of
27 withdrawal, instead of all annuities otherwise provided, be
28 entitled to receive an annuity for life of $150 a year, plus
29 1 1/2% for each year of service, to and including 20 years,
30 and 1 2/3% for each year of service over 20 years, of his
31 highest average annual salary for any 4 consecutive years
32 within the last 10 years of service immediately preceding the
33 date of withdrawal.
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1 An employee who withdraws after 20 or more years of
2 service, before age 65, shall be entitled to such annuity, to
3 begin not earlier than upon attained age of 55 years if under
4 such age at withdrawal, reduced by 2% for each full year or
5 fractional part thereof that his attained age is less than
6 65, plus an additional 2% reduction for each full year or
7 fractional part thereof that his attained age when annuity is
8 to begin is less than 60 so that the total reduction at age
9 55 shall be 30%.
10 (b) An employee who withdraws after July 1, 1957, at age
11 60 or over, with 20 or more years of service, for whom the
12 age and service and prior service annuity combined, is less
13 than the amount stated in this paragraph, shall, from the
14 date of withdrawal, instead of such annuities, be entitled to
15 receive an annuity for life equal to 1 2/3% for each year of
16 service, of the highest average annual salary for any 5
17 consecutive years within the last 10 years of service
18 immediately preceding the date of withdrawal; provided, that
19 in the case of any employee who withdraws on or after July 1,
20 1971, such employee age 60 or over with 20 or more years of
21 service, shall receive an annuity for life equal to 1.67% for
22 each of the first 10 years of service; 1.90% for each of the
23 next 10 years of service; 2.10% for each year of service in
24 excess of 20 but not exceeding 30; and 2.30% for each year of
25 service in excess of 30, based on the highest average annual
26 salary for any 4 consecutive years within the last 10 years
27 of service immediately preceding the date of withdrawal.
28 An employee who withdraws after July 1, 1957 and before
29 January 1, 1988, with 20 or more years of service, before age
30 60 years is entitled to annuity, to begin not earlier than
31 upon attained age of 55 years, if under such age at
32 withdrawal, as computed in the last preceding paragraph,
33 reduced 0.25% for each full month or fractional part thereof
34 that his attained age when annuity is to begin is less than
HB0313 Enrolled -32- LRB9000555EGfg
1 60 if the employee was born before January 1, 1936, or 0.5%
2 for each such month if the employee was born on or after
3 January 1, 1936.
4 Any employee born before January 1, 1936, who withdraws
5 with 20 or more years of service, and any employee with 20 or
6 more years of service who withdraws on or after January 1,
7 1988, may elect to receive, in lieu of any other employee
8 annuity provided in this Section, an annuity for life equal
9 to 1.80% for each of the first 10 years of service, 2.00% for
10 each of the next 10 years of service, 2.20% for each year of
11 service in excess of 20 but not exceeding 30, and 2.40% for
12 each year of service in excess of 30, of the highest average
13 annual salary for any 4 consecutive years within the last 10
14 years of service immediately preceding the date of
15 withdrawal, to begin not earlier than upon attained age of 55
16 years, if under such age at withdrawal, reduced 0.25% for
17 each full month or fractional part thereof that his attained
18 age when annuity is to begin is less than 60; except that an
19 employee retiring on or after January 1, 1988, at age 55 or
20 over but less than age 60, having at least 35 years of
21 service, or an employee retiring on or after July 1, 1990, at
22 age 55 or over but less than age 60, having at least 30 years
23 of service, or an employee retiring on or after the effective
24 date of this amendatory Act of 1997, at age 55 or over but
25 less than age 60, having at least 25 years of service, shall
26 not be subject to the reduction in retirement annuity because
27 of retirement below age 60.
28 However, in the case of an employee who retired on or
29 after January 1, 1985 but before January 1, 1988, at age 55
30 or older and with at least 35 years of service, and who was
31 subject under this subsection (b) to the reduction in
32 retirement annuity because of retirement below age 60, that
33 reduction shall cease to be effective January 1, 1991, and
34 the retirement annuity shall be recalculated accordingly.
HB0313 Enrolled -33- LRB9000555EGfg
1 Any employee who withdraws on or after July 1, 1990, with
2 20 or more years of service, may elect to receive, in lieu of
3 any other employee annuity provided in this Section, an
4 annuity for life equal to 2.20% for each year of service of
5 the highest average annual salary for any 4 consecutive years
6 within the last 10 years of service immediately preceding the
7 date of withdrawal, to begin not earlier than upon attained
8 age of 55 years, if under such age at withdrawal, reduced
9 0.25% for each full month or fractional part thereof that his
10 attained age when annuity is to begin is less than 60; except
11 that an employee retiring at age 55 or over but less than age
12 60, having at least 30 years of service, shall not be subject
13 to the reduction in retirement annuity because of retirement
14 below age 60.
15 Any employee who withdraws on or after the effective date
16 of this amendatory Act of 1997 with 20 or more years of
17 service may elect to receive, in lieu of any other employee
18 annuity provided in this Section, an annuity for life equal
19 to 2.20%, for each year of service, of the highest average
20 annual salary for any 4 consecutive years within the last 10
21 years of service immediately preceding the date of
22 withdrawal, to begin not earlier than upon attainment of age
23 55 (age 50 if the employee has at least 30 years of service),
24 reduced 0.25% for each full month or remaining fractional
25 part thereof that the employee's attained age when annuity is
26 to begin is less than 60; except that an employee retiring at
27 age 50 or over with at least 30 years of service or at age 55
28 or over with at least 25 years of service shall not be
29 subject to the reduction in retirement annuity because of
30 retirement below age 60.
31 The maximum annuity payable under part (a) and (b) of
32 this Section shall not exceed 70% of highest average annual
33 salary in the case of an employee who withdraws prior to July
34 1, 1971, and 75% if withdrawal takes place on or after July
HB0313 Enrolled -34- LRB9000555EGfg
1 1, 1971. For the purpose of the minimum annuity provided in
2 this Section $1,500 is considered the minimum annual salary
3 for any year; and the maximum annual salary for the
4 computation of such annuity is $4,800 for any year before
5 1953, $6000 for the years 1953 to 1956, inclusive, and the
6 actual annual salary, as salary is defined in this Article,
7 for any year thereafter.
8 To preserve rights existing on December 31, 1959, for
9 participants and contributors on that date to the fund
10 created by the Court and Law Department Employees' Annuity
11 Act, who became participants in the fund provided for on
12 January 1, 1960, the maximum annual salary to be considered
13 for such persons for the years 1955 and 1956 is $7,500.
14 (c) For an employee receiving disability benefit, his
15 salary for annuity purposes under paragraphs (a) and (b) of
16 this Section, for all periods of disability benefit
17 subsequent to the year 1956, is the amount on which his
18 disability benefit was based.
19 (d) An employee with 20 or more years of service, whose
20 entire disability benefit credit period expires before
21 attainment of age 55 while still disabled for service, is
22 entitled upon withdrawal to the larger of (1) the minimum
23 annuity provided above, assuming he is then age 55, and
24 reducing such annuity to its actuarial equivalent as of his
25 attained age on such date or (2) the annuity provided from
26 his age and service and prior service annuity credits.
27 (e) The minimum annuity provisions do not apply to any
28 former municipal employee receiving an annuity from the fund
29 who re-enters service as a municipal employee, unless he
30 renders at least 3 years of additional service after the date
31 of re-entry.
32 (f) An employee in service on July 1, 1947, or who
33 became a contributor after July 1, 1947 and before attainment
34 of age 70, who withdraws after age 65, with less than 20
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1 years of service for whom the annuity has been fixed under
2 this Article shall, instead of the annuity so fixed, receive
3 an annuity as follows:
4 Such amount as he could have received had the accumulated
5 amounts for annuity been improved with interest at the
6 effective rate to the date of his withdrawal, or to
7 attainment of age 70, whichever is earlier, and had the city
8 contributed to such earlier date for age and service annuity
9 the amount that it would have contributed had he been under
10 age 65, after the date his annuity was fixed in accordance
11 with this Article, and assuming his annuity were computed
12 from such accumulations as of his age on such earlier date.
13 The annuity so computed shall not exceed the annuity which
14 would be payable under the other provisions of this Section
15 if the employee was credited with 20 years of service and
16 would qualify for annuity thereunder.
17 (g) Instead of the annuity provided in this Article, an
18 employee having attained age 65 with at least 15 years of
19 service who withdraws from service on or after July 1, 1971
20 and whose annuity computed under other provisions of this
21 Article is less than the amount provided under this
22 paragraph, is entitled to a minimum annuity for life equal to
23 1% of the highest average annual salary, as salary is defined
24 and limited in this Section for any 4 consecutive years
25 within the last 10 years of service for each year of service,
26 plus the sum of $25 for each year of service. The annuity
27 shall not exceed 60% of such highest average annual salary.
28 (h) The minimum annuities provided under this Section
29 shall be paid in equal monthly installments.
30 (i) The amendatory provisions of part (b) and (g) of
31 this Section shall be effective July 1, 1971 and apply in the
32 case of every qualifying employee withdrawing on or after
33 July 1, 1971.
34 (j) The amendatory provisions of this amendatory Act of
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1 1985 (P.A. 84-23) relating to the discount of annuity because
2 of retirement prior to attainment of age 60, and to the
3 retirement formula, for those born before January 1, 1936,
4 shall apply only to qualifying employees withdrawing on or
5 after July 18, 1985.
6 (k) Beginning on the effective date of this amendatory
7 Act of 1997 January 1, 1991, the minimum amount of employee's
8 annuity shall be $550 $350 per month for life for the
9 following classes of employees, without regard to the fact
10 that withdrawal occurred prior to the effective date of this
11 amendatory Act of 1997 January 1, 1991:
12 (1) any employee annuitant alive and receiving a
13 life annuity on the effective date of this amendatory Act
14 of 1997 January 1, 1991, except a reciprocal annuity;
15 (2) any employee annuitant alive and receiving a
16 term annuity on the effective date of this amendatory Act
17 of 1997 January 1, 1991, except a reciprocal annuity;
18 (3) any employee annuitant alive and receiving a
19 reciprocal annuity on the effective date of this
20 amendatory Act of 1997 January 1, 1991, whose service in
21 this fund is at least 5 years;
22 (4) any employee annuitant withdrawing after age 60
23 on or after the effective date of this amendatory Act of
24 1997 January 1, 1991, with at least 10 years of service
25 in this fund.
26 The increases granted under items (1), (2) and (3) of
27 this subsection (k) shall not be limited by any other Section
28 of this Act.
29 (Source: P.A. 85-964; 86-1488.)
30 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
31 Sec. 8-150.1. Minimum annuities for widows. The widow
32 (otherwise eligible for widow's annuity under other Sections
33 of this Article 8) of an employee hereinafter described, who
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1 retires from service or dies while in the service subsequent
2 to the effective date of this amendatory provision, and for
3 which widow the amount of widow's annuity and widow's prior
4 service annuity combined, fixed or provided for such widow
5 under other provisions of this Article is less than the
6 amount provided in this Section, shall, from and after the
7 date her otherwise provided annuity would begin, in lieu of
8 such otherwise provided widow's and widow's prior service
9 annuity, be entitled to the following indicated amount of
10 annuity:
11 (a) The widow of any employee who dies while in service
12 on or after the date on which he attains age 60 if the death
13 occurs before July 1, 1990, or on or after the date on which
14 he attains age 55 if the death occurs on or after July 1,
15 1990, with at least 20 years of service, or on or after the
16 date on which he attains age 50 if the death occurs on or
17 after the effective date of this amendatory Act of 1997 with
18 at least 30 years of service, shall be entitled to an annuity
19 equal to one-half of the amount of annuity which her deceased
20 husband would have been entitled to receive had he withdrawn
21 from the service on the day immediately preceding the date of
22 his death, conditional upon such widow having attained the
23 age of 60 or more years on such date if the death occurs
24 before July 1, 1990, or age 55 or more if the death occurs on
25 or after July 1, 1990. Such amount of widow's annuity shall
26 not, however, exceed the sum of $500 a month if the
27 employee's death in service occurs before January 23, 1987.
28 The widow's annuity shall not be limited to a maximum dollar
29 amount if the employee's death in service occurs on or after
30 January 23, 1987.
31 If the employee dies in service before July 1, 1990, and
32 if such widow of such described employee shall not be 60 or
33 more years of age on such date of death, the amount provided
34 in the immediately preceding paragraph for a widow 60 or more
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1 years of age, shall, in the case of such younger widow, be
2 reduced by 0.25% for each month that her then attained age is
3 less than 60 years if the employee was born before January 1,
4 1936 or dies in service on or after January 1, 1988, or by
5 0.5% for each month that her then attained age is less than
6 60 years if the employee was born on or after July 1, 1936
7 and dies in service before January 1, 1988.
8 If the employee dies in service on or after July 1, 1990,
9 and if the widow of the employee has not attained age 55 on
10 or before the employee's date of death, the amount otherwise
11 provided in this subsection (a) shall be reduced by 0.25% for
12 each month that her then attained age is less than 55 years.
13 (b) The widow of any employee who dies subsequent to the
14 date of his retirement on annuity, and who so retired on or
15 after the date on which he attained the age of 60 or more
16 years if retirement occurs before July 1, 1990, or on or
17 after the date on which he attained age 55 if retirement
18 occurs on or after July 1, 1990, with at least 20 years of
19 service, or on or after the date on which he attained age 50
20 if the retirement occurs on or after the effective date of
21 this amendatory Act of 1997 with at least 30 years of
22 service, shall be entitled to an annuity equal to one-half of
23 the amount of annuity which her deceased husband received as
24 of the date of his retirement on annuity, conditional upon
25 such widow having attained the age of 60 or more years on the
26 date of her husband's retirement on annuity if retirement
27 occurs before July 1, 1990, or age 55 or more if retirement
28 occurs on or after July 1, 1990. Such amount of widow's
29 annuity shall not, however, exceed the sum of $500 a month if
30 the employee's death occurs before January 23, 1987. The
31 widow's annuity shall not be limited to a maximum dollar
32 amount if the employee's death occurs on or after January 23,
33 1987, regardless of the date of retirement; provided that, if
34 retirement was before January 23, 1987, the employee or
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1 eligible spouse repays the excess spouse refund with interest
2 at the effective rate from the date of refund to the date of
3 repayment.
4 If the date of the employee's retirement on annuity is
5 before July 1, 1990, and if such widow of such described
6 employee shall not have attained such age of 60 or more years
7 on such date of her husband's retirement on annuity, the
8 amount provided in the immediately preceding paragraph for a
9 widow 60 or more years of age on the date of her husband's
10 retirement on annuity, shall, in the case of such then
11 younger widow, be reduced by 0.25% for each month that her
12 then attained age was less than 60 years if the employee was
13 born before January 1, 1936 or withdraws from service on or
14 after January 1, 1988, or by 0.5% for each month that her
15 then attained age is less than 60 years if the employee was
16 born on or after January 1, 1936 and withdraws from service
17 before January 1, 1988.
18 If the date of the employee's retirement on annuity is on
19 or after July 1, 1990, and if the widow of the employee has
20 not attained age 55 by the date of the employee's retirement
21 on annuity, the amount otherwise provided in this subsection
22 (b) shall be reduced by 0.25% for each month that her then
23 attained age is less than 55 years.
24 (c) The foregoing provisions relating to minimum
25 annuities for widows shall not apply to the widow of any
26 former municipal employee receiving an annuity from the fund
27 on August 9, 1965 or on the effective date of this amendatory
28 provision, who re-enters service as a municipal employee,
29 unless such employee renders at least 3 years of additional
30 service after the date of re-entry.
31 (d) In computing the amount of annuity which the husband
32 specified in the foregoing paragraphs (a) and (b) of this
33 Section would have been entitled to receive, or received,
34 such amount shall be the annuity to which such husband would
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1 have been, or was entitled, before reduction in the amount of
2 his annuity for the purposes of the voluntary optional
3 reversionary annuity provided for in Sec. 8-139 of this
4 Article, if such option was elected.
5 (e) The amendatory provisions of part (a) and (b) of
6 this Section (increasing the maximum from $300 to $400 a
7 month) shall be effective as of July 1, 1971, and apply in
8 the case of every qualifying widow whose husband dies while
9 in service on or after July 1, 1971 or withdraws and enters
10 on annuity on or after July 1, 1971.
11 (f) The amendments of part (a) and (b) of this Section
12 by this amendatory Act of 1983 (increasing the maximum from
13 $400 to $500 a month) shall be effective as of January 1,
14 1984 and shall apply in the case of every qualifying widow
15 whose husband dies while in the service on or after January
16 1, 1984, or withdraws and enters on annuity on or after
17 January 1, 1984.
18 (g) The amendatory provisions of this amendatory Act of
19 1985 relating to annuity discount because of age for widows
20 of employees born before January 1, 1936, shall apply only to
21 qualifying widows of employees withdrawing or dying in
22 service on or after July 18, 1985.
23 (h) Beginning on the effective date of this amendatory
24 Act of 1997 January 1, 1991, the minimum amount of widow's
25 annuity shall be $500 $300 per month for life for the
26 following classes of widows, without regard to the fact that
27 the death of the employee occurred prior to the effective
28 date of this amendatory Act of 1997 January 1, 1991:
29 (1) any widow annuitant alive and receiving a life
30 annuity on the effective date of this amendatory Act of
31 1997 January 1, 1991, except a reciprocal annuity;
32 (2) any widow annuitant alive and receiving a term
33 annuity on the effective date of this amendatory Act of
34 1997 January 1, 1991, except a reciprocal annuity;
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1 (3) any widow annuitant alive and receiving a
2 reciprocal annuity on the effective date of this
3 amendatory Act of 1997 January 1, 1991, whose employee
4 spouse's service in this fund was at least 5 years;
5 (4) the widow of an employee with at least 10 years
6 of service in this fund who dies after retirement, if the
7 retirement occurred prior to the effective date of this
8 amendatory Act of 1997 January 1, 1991;
9 (5) the widow of an employee with at least 10 years
10 of service in this fund who dies after retirement, if
11 withdrawal occurs on or after the effective date of this
12 amendatory Act of 1997 January 1, 1991;
13 (6) the widow of an employee who dies in service
14 with at least 5 years of service in this fund, if the
15 death in service occurs on or after the effective date of
16 this amendatory Act of 1997 January 1, 1991.
17 The increases granted under items (1), (2), (3) and (4)
18 of this subsection (h) shall not be limited by any other
19 Section of this Act.
20 (i) The widow of an employee who retired or died in
21 service on or after January 1, 1985 and before July 1, 1990,
22 at age 55 or older, and with at least 35 years of service
23 credit, shall be entitled to have her widow's annuity
24 increased, effective January 1, 1991, to an amount equal to
25 50% of the retirement annuity that the deceased employee
26 received on the date of retirement, or would have been
27 eligible to receive if he had retired on the day preceding
28 the date of his death in service, provided that if the widow
29 had not attained age 60 by the date of the employee's
30 retirement or death in service, the amount of the annuity
31 shall be reduced by 0.25% for each month that her then
32 attained age was less than age 60 if the employee's
33 retirement or death in service occurred on or after January
34 1, 1988, or by 0.5% for each month that her attained age is
HB0313 Enrolled -42- LRB9000555EGfg
1 less than age 60 if the employee's retirement or death in
2 service occurred prior to January 1, 1988. However, in cases
3 where a refund of excess contributions for widow's annuity
4 has been paid by the Fund, the increase in benefit provided
5 by this subsection (i) shall be contingent upon repayment of
6 the refund to the Fund with interest at the effective rate
7 from the date of refund to the date of payment.
8 (j) If a deceased employee is receiving a retirement
9 annuity at the time of death and that death occurs on or
10 after the effective date of this amendatory Act of 1997, the
11 widow may elect to receive, in lieu of any other annuity
12 provided under this Article, 50% of the deceased employee's
13 retirement annuity at the time of death reduced by 0.25% for
14 each month that the widow's age on the date of death is less
15 than 55. However, in cases where a refund of excess
16 contributions for widow's annuity has been paid by the Fund,
17 the benefit provided by this subsection (j) is contingent
18 upon repayment of the refund to the Fund with interest at the
19 effective rate from the date of refund to the date of
20 payment.
21 (Source: P.A. 85-964; 86-1488.)
22 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
23 Sec. 8-159. Amount of child's annuity. Beginning on the
24 effective date of this amendatory Act of 1997 January 1,
25 1988, the amount of a child's annuity shall be $220 $120 per
26 month for each child while the spouse of the deceased
27 employee parent survives, and $250 $150 per month for each
28 child when no such spouse survives, and shall be subject to
29 the following limitations:
30 (1) If the combined annuities for the widow and children
31 of an employee whose death resulted from injury incurred in
32 the performance of duty, or for the children where a widow
33 does not exist, exceed 70% of the employee's final monthly
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1 salary, the annuity for each child shall be reduced pro rata
2 so that the combined annuities for the family shall not
3 exceed such limitation.
4 (2) For the family of an employee whose death is the
5 result of any cause other than injury incurred in the
6 performance of duty, in which the combined annuities for the
7 family exceed 60% of the employee's final monthly salary, the
8 annuity for each child shall be reduced pro rata so that the
9 combined annuities for the family shall not exceed such
10 limitation.
11 (3) The increase in child's annuity provided by this
12 amendatory Act of 1997 1987 shall apply to all child's
13 annuities being paid on or after the effective date of this
14 amendatory Act of 1997. January 1, 1988, subject to The
15 above limitations on the combined annuities for a family in
16 parts (1) and (2) of this Section do not apply to families of
17 employees who died before the effective date of this
18 amendatory Act of 1997.
19 (4) The amendments to parts (1) and (2) of this Section
20 made by Public Act 84-1472 (eliminating the further
21 limitation that the monthly combined family amount shall not
22 exceed $500 plus 10% of the employee's final monthly salary)
23 shall apply in the case of every qualifying child whose
24 employee parent dies in the service or enters on annuity on
25 or after January 23, 1987.
26 (Source: P.A. 85-964.)
27 (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
28 Sec. 8-164.1. Group health benefit.
29 (a) For the purposes of this Section: (1) "annuitant"
30 means a person receiving an age and service annuity, a prior
31 service annuity, a widow's annuity, a widow's prior service
32 annuity, or a minimum annuity on or after January 1, 1988,
33 under Article 5, 6, 8 or 11, by reason of previous employment
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1 by the City of Chicago (hereinafter, in this Section, "the
2 city"); (2) "Medicare Plan annuitant" means an annuitant
3 described in item (1) who is eligible for Medicare benefits;
4 and (3) "non-Medicare Plan annuitant" means an annuitant
5 described in item (1) who is not eligible for Medicare
6 benefits.
7 (b) The city shall continue to offer group health
8 benefits to annuitants and their eligible dependents through
9 June 30, 2002. The same basic city health care plan
10 available as of June 30, 1988 (hereinafter called the basic
11 city plan) shall cease to be a plan offered by the city,
12 except as specified in subparagraphs (4) and (5) below, and
13 shall be closed to new enrollment or transfer of coverage for
14 any non-Medicare Plan annuitant as of the effective date of
15 this amendatory Act of 1997. The city shall offer
16 non-Medicare Plan annuitants and their eligible dependents
17 the option of enrolling in its Annuitant Preferred Provider
18 Plan, and may offer additional plans for any annuitant. The
19 city may amend, modify, or terminate any of its additional
20 plans at its sole discretion. If the city offers more than
21 one annuitant plan, the city shall allow annuitants to
22 convert coverage from one city annuitant plan to another,
23 except the basic city plan, during times designated by the
24 city, which periods of time shall occur at least annually.
25 For the period dating from the effective date of this
26 amendatory Act of 1997 through June 30, 2002, monthly premium
27 rates may be increased for annuitants during the time of
28 their participation in non-Medicare plans, except as provided
29 in subparagraphs (1) through (4) of this subsection.
30 (1) For non-Medicare Plan annuitants who retired
31 prior to January 1, 1988, the annuitant's share of
32 monthly premium for non-Medicare Plan coverage only shall
33 not exceed the highest premium rate chargeable under any
34 city non-Medicare Plan annuitant coverage as of December
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1 1, 1996.
2 (2) For non-Medicare Plan annuitants who retire on
3 or after January 1, 1988, the annuitant's share of
4 monthly premium for non-Medicare Plan coverage only shall
5 be the rate in effect on December 1, 1996, with monthly
6 premium increases to take effect no sooner than April 1,
7 1998 at the lower of (i) the premium rate determined
8 pursuant to subsection (g) or (ii) 10% of the immediately
9 previous month's rate for similar coverage.
10 (3) In no event shall any non-Medicare Plan
11 annuitant's share of monthly premium for non-Medicare
12 Plan coverage exceed 10% of the annuitant's monthly
13 annuity.
14 (4) Non-Medicare Plan annuitants who are enrolled
15 in the basic city plan as of July 1, 1998 may remain in
16 the basic city plan, if they so choose, on the condition
17 that they are not entitled to the caps on rates set forth
18 in subparagraphs (1) through (3), and their premium rate
19 shall be the rate determined in accordance with
20 subsections (c) and (g).
21 (5) Medicare Plan annuitants who are currently
22 enrolled in the basic city plan for Medicare eligible
23 annuitants may remain in that plan, if they so choose,
24 through June 30, 2002. Annuitants shall not be allowed
25 to enroll in or transfer into the basic city plan for
26 Medicare eligible annuitants on or after July 1, 1999.
27 The city shall continue to offer annuitants a
28 supplemental Medicare Plan for Medicare eligible
29 annuitants through June 30, 2002, and the city may offer
30 additional plans to Medicare eligible annuitants in its
31 sole discretion. All Medicare Plan annuitant monthly
32 rates shall be determined in accordance with subsections
33 (c) and (g).
34 (c) Effective the date the initial increased annuitant
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1 payments pursuant to subsection (g) take effect, The city
2 shall pay 50% of the aggregated costs of the claims or
3 premiums, whichever is applicable, as determined in
4 accordance with subsection (g), of annuitants and their
5 dependents under all health care plans offered by the city.
6 The city may reduce its obligation by application of price
7 reductions obtained as a result of financial arrangements
8 with providers or plan administrators. The claims or
9 premiums of all annuitants and their dependents under all of
10 the plans offered by the city shall be aggregated for the
11 purpose of calculating the city's payment required under this
12 subsection, as well as for the setting of rates of payment
13 for annuitants as required under subsection (g).
14 (d) From January 1, 1988 until December 31, 1992, the
15 board shall pay to the city on behalf of each of the board's
16 annuitants who chooses to participate in any of the city's
17 plans the following amounts: up to a maximum of $65 per month
18 for each such annuitant who is not qualified to receive
19 medicare benefits, and up to a maximum of $35 per month for
20 each such annuitant who is qualified to receive medicare
21 benefits. From January 1, 1993 until June 30, 2002 December
22 31, 1997, the board shall pay to the city on behalf of each
23 of the board's annuitants who chooses to participate in any
24 of the city's plans the following amounts: up to a maximum of
25 $75 per month for each such annuitant who is not qualified to
26 receive medicare benefits, and up to a maximum of $45 per
27 month for each such annuitant who is qualified to receive
28 medicare benefits.
29 For the period January 1, 1988 through the effective date
30 of this amendatory Act of 1989, payments under this Section
31 shall be reduced by the amounts paid by or on behalf of the
32 board's annuitants covered during that period.
33 Commencing on the effective date of this amendatory Act
34 of 1989, the board is authorized to pay to the board of
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1 education on behalf of each person who chooses to participate
2 in the board of education's plan the amounts specified in
3 this subsection (d) during the years indicated. For the
4 period January 1, 1988 through the effective date of this
5 amendatory Act of 1989, the board shall pay to the board of
6 education annuitants who participate in the board of
7 education's health benefits plan for annuitants the following
8 amounts: $10 per month to each annuitant who is not qualified
9 to receive medicare benefits, and $14 per month to each
10 annuitant who is qualified to receive medicare benefits.
11 The payments described in this subsection shall be paid
12 from the tax levy authorized under Section 8-189; such
13 amounts shall be credited to the reserve for group hospital
14 care and group medical and surgical plan benefits, and all
15 payments to the city required under this subsection shall be
16 charged against it.
17 (e) The city's obligations under subsections (b) and (c)
18 shall terminate on June 30, 2002 December 31, 1997, except
19 with regard to covered expenses incurred but not paid as of
20 that date. This subsection shall not affect other
21 obligations that may be imposed by law.
22 (f) The group coverage plans described in this Section
23 are not and shall not be construed to be pension or
24 retirement benefits for purposes of Section 5 of Article XIII
25 of the Illinois Constitution of 1970.
26 (g) For each annuitant plan offered by the city, the
27 aggregate cost of claims, as reflected in the claim records
28 of the plan administrator, and premiums for each calendar
29 year from 1989 through 1997 of all annuitants and dependents
30 covered by the city's group health care plans shall be
31 estimated by the city, based upon a written determination by
32 a qualified independent actuary to be appointed and paid by
33 the city and the board. If the such estimated annual cost
34 for each annuitant plan offered by the city is more than the
HB0313 Enrolled -48- LRB9000555EGfg
1 estimated amount to be contributed by the city for that plan
2 pursuant to subsections (b) and (c) during that year plus the
3 estimated amounts to be paid pursuant to subsection (d) and
4 by the other pension boards on behalf of other participating
5 annuitants, the difference shall be paid by all participating
6 annuitants participating in the plan, except as provided in
7 subsection (b). The city, based upon the determination of
8 the independent actuary, shall set the monthly amounts to be
9 paid by the participating annuitants. The initial
10 determination of such payments shall be prospective only and
11 shall be based upon the estimated costs for the balance of
12 the year. The board may deduct the amounts to be paid by its
13 annuitants from the participating annuitants' monthly
14 annuities.
15 If it is determined from the city's annual audit, or from
16 audited experience data, that the total amount paid by all
17 participating annuitants was more or less than the difference
18 between (1) the cost of providing the group health care
19 plans, and (2) the sum of the amount to be paid by the city
20 as determined under subsection (c) and the amounts paid by
21 all the pension boards, then the independent actuary and the
22 city shall account for the excess or shortfall in the next
23 year's payments by annuitants, except as provided in
24 subsection (b).
25 (h) An annuitant may elect to terminate coverage in a
26 plan at the end of any month any time, which election shall
27 terminate the annuitant's obligation to contribute toward
28 payment of the excess described in subsection (g).
29 (i) The city shall advise the board of all proposed
30 premium increases for health care at least 75 days prior to
31 the effective date of the change, and any increase shall be
32 prospective only.
33 (Source: P.A. 86-273.)
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1 (40 ILCS 5/9-101) (from Ch. 108 1/2, par. 9-101)
2 Sec. 9-101. Creation of fund. In each county of more
3 than 3,000,000 500,000 inhabitants a County Employees' and
4 Officers' Annuity and Benefit Fund shall be created, set
5 apart, maintained and administered, in the manner prescribed
6 in this Article, for the benefit of the employees and
7 officers herein designated and their beneficiaries.
8 (Source: Laws 1963, p. 161.)
9 (40 ILCS 5/9-120.1 new)
10 Sec. 9-120.1. CTA - continued participation; military
11 service credit.
12 (a) A person who (i) has at least 20 years of creditable
13 service in the Fund, (ii) has not begun receiving a
14 retirement annuity under this Article, and (iii) is employed
15 in a position under which he or she is eligible to actively
16 participate in the retirement system established under
17 Section 22-101 of this Code may elect, after he or she ceases
18 to be a participant but in no event after June 1, 1998, to
19 continue his or her participation in this Fund while employed
20 by the Chicago Transit Authority, for up to 10 additional
21 years, by making written application to the Board.
22 (b) A person who elects to continue participation under
23 this Section shall make contributions directly to the Fund,
24 not less frequently than monthly, based on the person's
25 actual Chicago Transit Authority compensation and the rates
26 applicable to employees under this Fund. Creditable service
27 shall be granted to any person for the period, not exceeding
28 10 years, during which the person continues participation in
29 this Fund under this Section and continues to make
30 contributions as required. For periods of service
31 established under this Section, the person's actual Chicago
32 Transit Authority compensation shall be considered his or her
33 salary for purposes of calculating benefits under this
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1 Article.
2 (c) A person who elects to continue participation under
3 this Section may cancel that election at any time.
4 (d) A person who elects to continue participation under
5 this Section may establish service credit in this Fund for
6 periods of employment by the Chicago Transit Authority prior
7 to that election, by applying in writing and paying to the
8 Fund an amount representing employee contributions for the
9 service being established, based on the person's actual
10 Chicago Transit Authority compensation and the rates then
11 applicable to employees under this Fund, without interest.
12 (e) A person who qualifies under this Section may elect
13 to purchase credit for up to 4 years of military service,
14 whether or not that service followed service as a county
15 employee. The military service need not have been served in
16 wartime, but the employee must not have been dishonorably
17 discharged. To establish this creditable service the
18 applicant must pay to the Fund, on or before July 1, 1998, an
19 amount determined by the Fund to represent the employee
20 contributions for the creditable service, based on the
21 employee's rate of compensation on his or her last day of
22 service as a contributor before the military service or his
23 or her salary on the first day of service following the
24 military service, whichever is greater, plus interest at the
25 effective rate from the date of discharge to the date of
26 payment. For the purposes of this subsection, "military
27 service" includes service in the United States armed forces
28 reserves.
29 (f) Notwithstanding any other provision of this Section,
30 a person may not establish creditable service under this
31 Section for any period for which the person receives credit
32 under any other public employee retirement system, including
33 the retirement system established under Section 22-101 of
34 this Code, unless the credit under that retirement system has
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1 been irrevocably relinquished.
2 (40 ILCS 5/9-121.13)
3 Sec. 9-121.13. State's Attorney employee Transfer of
4 Article 5 credits.
5 (a) An active participant in the Fund who was employed
6 by the office of the Cook County State's Attorney on January
7 1, 1995 may transfer to this Fund credits and creditable
8 service accumulated under the pension fund established under
9 Article 5 of this Code, as provided in Section 5-237, by
10 submitting a written application to the Fund and paying to
11 the Fund the amount, if any, by which the amount transferred
12 to the Fund under Section 5-237 is less than the amount of
13 employee and employer contributions that would have been
14 received by the Fund if the service being transferred had
15 been served as a participant of this Fund, including interest
16 at the rate of 6% per year, compounded annually, from the
17 date of the service to the date of payment.
18 (b) Until July 1, 1998, an active participant in the
19 Fund who is a member of the county police department may
20 transfer to this Fund credits and creditable service
21 accumulated under the pension fund established under Article
22 5 of this Code, as provided in Section 5-237, by submitting a
23 written application to the Fund and paying to the Fund the
24 amount, if any, by which the amount transferred to the Fund
25 under Section 5-237 is less than the amount of employee and
26 employer contributions that would have been received by the
27 Fund if the service being transferred had been served as a
28 participant of this Fund, including interest at the rate of
29 6% per year, compounded annually, from the date of the
30 service to the date of payment.
31 (c) The applicant may elect to have the service
32 transferred be deemed service as a member of the county
33 police department; if the applicant so elects, the required
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1 payment shall be calculated on the basis of the rates
2 applicable to members of the county police department.
3 (Source: P.A. 89-136, eff. 7-14-95.)
4 (40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
5 Sec. 9-133. Automatic increase in annuity.
6 (a) An employee who retired or retires from service
7 after December 31, 1959, having attained age 60 or more or,
8 beginning January 1, 1991, having attained 30 or more years
9 of creditable service, shall, in the month of January of the
10 year following the year in which the first anniversary of
11 retirement occurs, have his then fixed and payable monthly
12 annuity increased by 1 1/2%, and such first fixed annuity as
13 granted at retirement increased by a further 1 1/2% in
14 January of each year thereafter. Beginning with January of
15 the year 1972, such increases shall be at the rate of 2% in
16 lieu of the aforesaid specified 1 1/2%. Beginning with
17 January of the year 1982, such increases shall be at the rate
18 of 3% in lieu of the aforesaid specified 2%. Beginning
19 January 1, 1998, these increases shall be at the rate of 3%
20 of the current amount of the annuity, including any previous
21 increases received under this Article, without regard to
22 whether the annuitant is in service on or after the effective
23 date of this amendatory Act of 1997.
24 An employee who retires on annuity before age 60 and,
25 beginning January 1, 1991, with less than 30 years of
26 creditable service shall receive such increases beginning
27 with January of the year immediately following the year in
28 which he attains the age of 60 years. An employee who
29 retires on annuity before age 60 and before January 1, 1991,
30 with at least 30 years of creditable service, shall be
31 entitled to receive the first increase under this subsection
32 no later than January 1, 1993.
33 For an employee who, in accordance with the provisions of
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1 Section 9-108.1 of this Act, shall have become a member of
2 the State System established under Article 14 on February 1,
3 1974, the first such automatic increase shall begin in
4 January of 1975.
5 (b) Subsection (a) is not applicable to an employee
6 retiring and receiving a term annuity, as defined in this
7 Act, nor to any otherwise qualified employee who retires
8 before he makes employee contributions (at the 1/2 of 1% rate
9 as provided in this Section) for this additional annuity for
10 not less than the equivalent of one full year. Such
11 employee, however, shall make arrangement to pay to the fund
12 a balance of such contributions, based on his final salary,
13 as will bring such 1/2 of 1% contributions, computed without
14 interest, to the equivalent of one year's contributions.
15 Beginning with the month of January, 1960, each employee
16 shall contribute by means of salary deductions 1/2 of 1% of
17 each salary payment, concurrently with and in addition to the
18 employee contributions otherwise provided for annuity
19 purposes.
20 Each such additional contribution shall be credited to an
21 account in the prior service annuity reserve, to be used,
22 together with county contributions, to defray the cost of the
23 specified annuity increments. Any balance in such account as
24 of the beginning of each calendar year shall be credited with
25 interest at the rate of 3% per annum.
26 Such additional employee contributions are not
27 refundable, except to an employee who withdraws and applies
28 for refund under this Article, or applies for annuity, and
29 also in cases where a term annuity becomes payable. In such
30 cases his contributions shall be refunded, without interest,
31 and charged to the prior service annuity reserve.
32 (Source: P.A. 87-794; 87-1265.)
33 (40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
HB0313 Enrolled -54- LRB9000555EGfg
1 Sec. 9-133.1. Automatic increases in annuity for certain
2 heretofore retired participants. A retired employee retired
3 at age 55 or over and who (a) is receiving annuity based on a
4 service credit of 20 or more years, and (b) does not qualify
5 for the automatic increases in annuity provided for in Sec.
6 9-133 of this Article, and (c) elects to make a contribution
7 to the Fund at a time and manner prescribed by the Retirement
8 Board, of a sum equal to 1% of the final average monthly
9 salary forming the basis of the calculation of their annuity
10 multiplied by years of credited service, or 1% of their final
11 monthly salary multiplied by years of credited service in any
12 case where the final average salary is not used in the
13 calculation, shall have his original fixed and payable
14 monthly amount of annuity increased in January of the year
15 following the year in which he attains the age of 65 years,
16 if such age of 65 years is attained in the year 1969 or
17 later, by an amount equal to 1 1/2%, and by an equal
18 additional 1 1/2% in January of each year thereafter.
19 Beginning with January of the year 1972, such increases shall
20 be at the rate of 2% in lieu of the aforesaid specified 1
21 1/2%. Beginning with January of the year 1982, such
22 increases shall be at the rate of 3% in lieu of the aforesaid
23 specified 2%. Beginning January 1, 1998, these increases
24 shall be at the rate of 3% of the current amount of the
25 annuity, including any previous increases received under this
26 Article, without regard to whether the annuitant is in
27 service on or after the effective date of this amendatory Act
28 of 1997.
29 In those cases in which the retired employee receiving
30 annuity has attained the age of 66 or more years in the year
31 1969, he shall have such annuity increased in January of the
32 year 1970 by an amount equal to 1 1/2% multiplied by the
33 number equal to the number of months of January elapsing from
34 and including January of the year immediately following the
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1 year he attained the age of 65 years if retired at or prior
2 to age 65, or from and including January of the year
3 immediately following the year of retirement if retired at an
4 age greater than 65 years, to and including January of the
5 year 1970, and by an equal additional 1 1/2% in January of
6 each year thereafter. Beginning with January of the year
7 1972, such increases shall be at the rate of 2% in lieu of
8 the aforesaid specified 1 1/2%. Beginning with January of
9 the year 1982, such increases shall be at the rate of 3% in
10 lieu of the aforesaid specified 2%. Beginning January 1,
11 1998, these increases shall be at the rate of 3% of the
12 current amount of the annuity, including any previous
13 increases received under this Article, without regard to
14 whether the annuitant is in service on or after the effective
15 date of this amendatory Act of 1997.
16 To defray the annual cost of such increases, the annual
17 interest income of the Fund, accruing from investments held
18 by the Fund, exclusive of gains or losses on sales or
19 exchanges of assets during the year, over and above 4% a
20 year, shall be used to the extent necessary and available to
21 finance the cost of such increases for the following year,
22 and such amount shall be transferred as of the end of each
23 year, beginning with the year 1969, to a Fund account
24 designated as the Supplementary Payment Reserve from the
25 Investment and Interest Reserve set forth in Sec. 9-214. The
26 sums contributed by annuitants as provided for in this
27 Section shall also be placed in the aforesaid Supplementary
28 Payment Reserve and shall be applied for and used for the
29 purposes of such Fund account, together with the aforesaid
30 interest.
31 In the event the monies in the Supplementary Payment
32 Reserve in any year arising from: (1) the available interest
33 income as defined hereinbefore and accruing in the preceding
34 year above 4% a year and (2) the contributions by retired
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1 persons, as set forth hereinbefore, are insufficient to make
2 the total payments to all persons estimated to be entitled to
3 the annuity increases specified hereinbefore, then (3) any
4 interest earnings over 4% a year beginning with the year 1969
5 which were not previously used to finance such increases and
6 which were transferred to the Prior Service Annuity Reserve
7 may be used to the extent necessary and available to provide
8 sufficient funds to finance such increases for the current
9 year, and such sums shall be transferred from the Prior
10 Service Annuity Reserve.
11 In the event the total monies available in the
12 Supplementary Payment Reserve from the preceding indicated
13 sources are insufficient to make the total payments to all
14 persons entitled to such increases for the year, a
15 proportionate amount computed as the ratio of the monies
16 available to the total of the total payments for that year
17 shall be paid to each person for that year.
18 The Fund shall be obligated for the payment of the
19 increases in annuity as provided for in this Section only to
20 the extent that the assets for such purpose, as specified
21 herein, are available.
22 (Source: P.A. 83-1362.)
23 (40 ILCS 5/9-134.3 new)
24 Sec. 9-134.3. Early retirement incentives.
25 (a) To be eligible for the benefits provided in this
26 Section, a person must:
27 (1) be a current contributing member of the Fund
28 established under this Article who, on May 1, 1997 and
29 within 30 days prior to the date of retirement, is (i) in
30 active payroll status in a position of employment under
31 this Article or (ii) receiving disability benefits under
32 Section 9-156 or 9-157;
33 (2) have not previously retired from the Fund;
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1 (3) file with the Board before October 1, 1997, a
2 written application requesting the benefits provided in
3 this Section;
4 (4) elect to retire under this Section on or after
5 September 1, 1997 and on or before February 28, 1998 (or
6 the date established under subsection (d), if
7 applicable);
8 (5) have attained age 55 on or before the date of
9 retirement and before February 28, 1998; and
10 (6) have at least 10 years of creditable service in
11 the Fund, excluding service in any of the other
12 participating systems under the Retirement Systems
13 Reciprocal Act, by the effective date of the retirement
14 annuity or February 28, 1998, whichever occurs first.
15 (b) An employee who qualifies for the benefits provided
16 under this Section shall be entitled to the following:
17 (1) The employee's retirement annuity, as
18 calculated under the other provisions of this Article,
19 shall be increased at the time of retirement by an amount
20 equal to 1% of the employee's average annual salary for
21 the highest 4 consecutive years within the last 10 years
22 of service, multiplied by the employee's number of years
23 of service credit in this Fund up to a maximum of 10
24 years; except that the total retirement annuity,
25 including any additional benefits elected under Section
26 9-121.6 or 9-179.3, shall not exceed 80% of that highest
27 average annual salary.
28 (2) If the employee's retirement annuity is
29 calculated under Section 9-134, the employee shall not be
30 subject to the reduction in retirement annuity because of
31 retirement below age 60 that is otherwise required under
32 that Section.
33 (c) A person who elects to retire under the provisions
34 of this Section thereby relinquishes his or her right, if
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1 any, to have the retirement annuity calculated under the
2 alternative formula formerly set forth in Section 20-122 of
3 the Retirement Systems Reciprocal Act.
4 (d) In the case of an employee whose immediate
5 retirement could jeopardize public safety or create hardship
6 for the employer, the deadline for retirement provided in
7 subdivision (a)(4) of this Section may be extended to a
8 specified date, no later than August 31, 1998, by the
9 employee's department head, with the approval of the
10 President of the County Board. In the case of an employee
11 who is not employed by a department of the County, the
12 employee's "department head", for the purposes of this
13 Section, shall be a person designated by the President of the
14 County Board.
15 (e) Notwithstanding Section 9-161, an annuitant who
16 reenters service under this Article after receiving a
17 retirement annuity based on benefits provided under this
18 Section thereby forfeits the right to continue to receive
19 those benefits and shall have his or her retirement annuity
20 recalculated without the benefits provided in this Section.
21 (f) This Section also applies to the Fund established
22 under Article 10 of this Code.
23 (40 ILCS 5/9-146.2 new)
24 Sec. 9-146.2. Automatic annual increase in widow's
25 annuity.
26 (a) Every widow's annuity, other than a term annuity,
27 shall be increased on January 1, 1998 or the January 1
28 occurring on or immediately after the first anniversary of
29 the deceased employee's death, whichever occurs later, by an
30 amount equal to 3% of the amount of the annuity.
31 On each January 1 after the date of the initial increase
32 under this Section, the widow's annuity shall be increased by
33 an amount equal to 3% of the amount of the widow's annuity
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1 payable at the time of the increase, including any increases
2 previously granted under this Article.
3 (b) Limitations on the maximum amount of widow's annuity
4 imposed under Section 9-150 do not apply to the annual
5 increases provided under this Section.
6 (c) The increases provided under this Section also apply
7 to compensation annuities and supplemental annuities payable
8 under Section 9-147. The increases provided under this
9 Section do not apply to term annuities.
10 (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
11 Sec. 9-179.3. Optional plan of additional benefits and
12 contributions.
13 (a) While this plan is in effect, an employee may
14 establish additional optional credit for additional optional
15 benefits by electing in writing at any time to make
16 additional optional contributions. The employee may
17 discontinue making the additional optional contributions at
18 any time by notifying the fund in writing.
19 (b) Additional optional contributions for the additional
20 optional benefits shall be as follows:
21 (1) For service after the option is elected, an
22 additional contribution of 3% of salary shall be
23 contributed to the fund on the same basis and under the
24 same conditions as contributions required under Sections
25 9-170 and 9-176.
26 (2) For service before the option is elected, an
27 additional contribution of 3% of the salary for the
28 applicable period of service, plus interest at the
29 effective rate from the date of service to the date of
30 payment. All payments for past service must be paid in
31 full before credit is given. No additional optional
32 contributions may be made for any period of service for
33 which credit has been previously forfeited by acceptance
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1 of a refund, unless the refund is repaid in full with
2 interest at the effective rate from the date of refund to
3 the date of repayment.
4 (c) Additional optional benefits shall accrue for all
5 periods of eligible service for which additional
6 contributions are paid in full. The additional benefit shall
7 consist of an additional 1% for each year of service for
8 which optional contributions have been paid, based on the
9 highest average annual salary for any 4 consecutive years
10 within the last 10 years of service immediately preceding the
11 date of withdrawal, to be added to the employee retirement
12 annuity benefits as otherwise computed under this Article.
13 The calculation of these additional benefits shall be subject
14 to the same terms and conditions as are used in the
15 calculation of retirement annuity under Section 9-134. The
16 additional benefit shall be included in the calculation of
17 the automatic annual increase in annuity, and in the
18 calculation of widow's annuity, where applicable. However no
19 additional benefits will be granted which produce a total
20 annuity greater than the applicable maximum established for
21 that type of annuity in this Article, and additional benefits
22 shall not apply to any benefit computed under Section
23 9-128.1.
24 (d) Refunds of additional optional contributions shall
25 be made on the same basis and under the same conditions as
26 provided under Sections 9-164, 9-166 and 9-167. Interest
27 shall be credited at the effective rate on the same basis and
28 under the same conditions as for other contributions.
29 (e) Optional contributions shall be accounted for in a
30 separate Optional Contribution Reserve.
31 (f) The tax levy, computed under Section 9-169, shall be
32 based on employee contributions including the amount of
33 optional additional employee contributions.
34 (g) Service eligible under this Section may include only
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1 service as an employee of the County as defined in Section
2 9-108, and subject to Sections 9-219 and 9-220. No service
3 granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
4 eligible for optional service credit. No optional service
5 credit may be established for any military service, or for
6 any service under any other Article of this Code. Optional
7 service credit may be established for any period of
8 disability paid from this fund, if the employee makes
9 additional optional contributions for such periods of
10 disability.
11 (h) This plan of optional benefits and contributions
12 shall not apply to any former county employee receiving an
13 annuity from the fund, who re-enters service as a County
14 employee, unless he renders at least 3 years of additional
15 service after the date of re-entry.
16 (i) The effective date of the optional plan of
17 additional benefits and contributions shall be July 1, 1985,
18 or the date upon which approval is received from the Internal
19 Revenue Service, whichever is later.
20 (j) This plan of additional benefits and contributions
21 shall expire July 1, 2002 1997. No additional contributions
22 may be made after that date, and no additional benefits will
23 accrue after that date.
24 (Source: P.A. 86-1027; 87-794.)
25 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
26 Sec. 11-134. Minimum annuities.
27 (a) An employee whose withdrawal occurs after July 1,
28 1957 at age 60 or over, with 20 or more years of service, (as
29 service is defined or computed in Section 11-216), for whom
30 the age and service and prior service annuity combined is
31 less than the amount stated in this section, shall, from and
32 after the date of withdrawal, in lieu of all annuities
33 otherwise provided in this Article, be entitled to receive an
HB0313 Enrolled -62- LRB9000555EGfg
1 annuity for life of an amount equal to 1 2/3% for each year
2 of service, of the highest average annual salary for any 5
3 consecutive years within the last 10 years of service
4 immediately preceding the date of withdrawal; provided, that
5 in the case of any employee who withdraws on or after July 1,
6 1971, such employee age 60 or over with 20 or more years of
7 service, shall be entitled to instead receive an annuity for
8 life equal to 1.67% for each of the first 10 years of
9 service; 1.90% for each of the next 10 years of service;
10 2.10% for each year of service in excess of 20 but not
11 exceeding 30; and 2.30% for each year of service in excess of
12 30, based on the highest average annual salary for any 4
13 consecutive years within the last 10 years of service
14 immediately preceding the date of withdrawal.
15 An employee who withdraws after July 1, 1957 and before
16 January 1, 1988, with 20 or more years of service, before age
17 60, shall be entitled to an annuity, to begin not earlier
18 than age 55, if under such age at withdrawal, as computed in
19 the last preceding paragraph, reduced 0.25% if the employee
20 was born before January 1, 1936, or 0.5% if the employee was
21 born on or after January 1, 1936, for each full month or
22 fractional part thereof that his attained age when such
23 annuity is to begin is less than 60.
24 Any employee born before January 1, 1936 who withdraws
25 with 20 or more years of service, and any employee with 20 or
26 more years of service who withdraws on or after January 1,
27 1988, may elect to receive, in lieu of any other employee
28 annuity provided in this Section, an annuity for life equal
29 to 1.80% for each of the first 10 years of service, 2.00% for
30 each of the next 10 years of service, 2.20% for each year of
31 service in excess of 20, but not exceeding 30, and 2.40% for
32 each year of service in excess of 30, of the highest average
33 annual salary for any 4 consecutive years within the last 10
34 years of service immediately preceding the date of
HB0313 Enrolled -63- LRB9000555EGfg
1 withdrawal, to begin not earlier than upon attained age of 55
2 years, if under such age at withdrawal, reduced 0.25% for
3 each full month or fractional part thereof that his attained
4 age when annuity is to begin is less than 60; except that an
5 employee retiring on or after January 1, 1988, at age 55 or
6 over but less than age 60, having at least 35 years of
7 service, or an employee retiring on or after July 1, 1990, at
8 age 55 or over but less than age 60, having at least 30 years
9 of service, or an employee retiring on or after the effective
10 date of this amendatory Act of 1997, at age 55 or over but
11 less than age 60, having at least 25 years of service, shall
12 not be subject to the reduction in retirement annuity because
13 of retirement below age 60.
14 However, in the case of an employee who retired on or
15 after January 1, 1985 but before January 1, 1988, at age 55
16 or older and with at least 35 years of service, and who was
17 subject under this subsection (a) to the reduction in
18 retirement annuity because of retirement below age 60, that
19 reduction shall cease to be effective January 1, 1991, and
20 the retirement annuity shall be recalculated accordingly.
21 Any employee who withdraws on or after July 1, 1990, with
22 20 or more years of service, may elect to receive, in lieu of
23 any other employee annuity provided in this Section, an
24 annuity for life equal to 2.20% for each year of service of
25 the highest average annual salary for any 4 consecutive years
26 within the last 10 years of service immediately preceding the
27 date of withdrawal, to begin not earlier than upon attained
28 age of 55 years, if under such age at withdrawal, reduced
29 0.25% for each full month or fractional part thereof that his
30 attained age when annuity is to begin is less than 60; except
31 that an employee retiring at age 55 or over but less than age
32 60, having at least 30 years of service, shall not be subject
33 to the reduction in retirement annuity because of retirement
34 below age 60.
HB0313 Enrolled -64- LRB9000555EGfg
1 Any employee who withdraws on or after the effective date
2 of this amendatory Act of 1997 with 20 or more years of
3 service may elect to receive, in lieu of any other employee
4 annuity provided in this Section, an annuity for life equal
5 to 2.20%, for each year of service, of the highest average
6 annual salary for any 4 consecutive years within the last 10
7 years of service immediately preceding the date of
8 withdrawal, to begin not earlier than upon attainment of age
9 55 (age 50 if the employee has at least 30 years of service),
10 reduced 0.25% for each full month or remaining fractional
11 part thereof that the employee's attained age when annuity is
12 to begin is less than 60; except that an employee retiring at
13 age 50 or over with at least 30 years of service or at age 55
14 or over with at least 25 years of service shall not be
15 subject to the reduction in retirement annuity because of
16 retirement below age 60.
17 The maximum annuity payable under this paragraph (a) of
18 this Section shall not exceed 70% of highest average annual
19 salary in the case of an employee who withdraws prior to July
20 1, 1971, and 75% if withdrawal takes place on or after July
21 1, 1971. For the purpose of the minimum annuity provided in
22 said paragraphs $1,500 shall be considered the minimum annual
23 salary for any year; and the maximum annual salary to be
24 considered for the computation of such annuity shall be
25 $4,800 for any year prior to 1953, $6,000 for the years 1953
26 to 1956, inclusive, and the actual annual salary, as salary
27 is defined in this Article, for any year thereafter.
28 (b) For an employee receiving disability benefit, his
29 salary for annuity purposes under this section shall, for all
30 periods of disability benefit subsequent to the year 1956, be
31 the amount on which his disability benefit was based.
32 (c) An employee with 20 or more years of service, whose
33 entire disability benefit credit period expires prior to
34 attainment of age 55 while still disabled for service, shall
HB0313 Enrolled -65- LRB9000555EGfg
1 be entitled upon withdrawal to the larger of (1) the minimum
2 annuity provided above assuming that he is then age 55, and
3 reducing such annuity to its actuarial equivalent at his
4 attained age on such date, or (2) the annuity provided from
5 his age and service and prior service annuity credits.
6 (d) The minimum annuity provisions as aforesaid shall
7 not apply to any former employee receiving an annuity from
8 the fund, and who re-enters service as an employee, unless he
9 renders at least 3 years of additional service after the date
10 of re-entry.
11 (e) An employee in service on July 1, 1947, or who
12 became a contributor after July 1, 1947 and prior to July 1,
13 1950, or who shall become a contributor to the fund after
14 July 1, 1950 prior to attainment of age 70, who withdraws
15 after age 65 with less than 20 years of service, for whom the
16 annuity has been fixed under the foregoing sections of this
17 Article shall, in lieu of the annuity so fixed, receive an
18 annuity as follows:
19 Such amount as he could have received had the accumulated
20 amounts for annuity been improved with interest at the
21 effective rate to the date of his withdrawal, or to
22 attainment of age 70, whichever is earlier, and had the city
23 contributed to such earlier date for age and service annuity
24 the amount that would have been contributed had he been under
25 age 65, after the date his annuity was fixed in accordance
26 with this Article, and assuming his annuity were computed
27 from such accumulations as of his age on such earlier date.
28 The annuity so computed shall not exceed the annuity which
29 would be payable under the other provisions of this section
30 if the employee was credited with 20 years of service and
31 would qualify for annuity thereunder.
32 (f) In lieu of the annuity provided in this or in any
33 other section of this Article, an employee having attained
34 age 65 with at least 15 years of service who withdraws from
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1 service on or after July 1, 1971 and whose annuity computed
2 under other provisions of this Article is less than the
3 amount provided under this paragraph shall be entitled to
4 receive a minimum annual annuity for life equal to 1% of the
5 highest average annual salary for any 4 consecutive years
6 within the last 10 years of service immediately preceding
7 retirement for each year of his service plus the sum of $25
8 for each year of service. Such annual annuity shall not
9 exceed the maximum percentages stated under paragraph (a) of
10 this Section of such highest average annual salary.
11 (g) Any annuity payable under the preceding subsections
12 of this Section 11-134 shall be paid in equal monthly
13 installments.
14 (h) The amendatory provisions of part (a) and (f) of
15 this Section shall be effective July 1, 1971 and apply in the
16 case of every qualifying employee withdrawing on or after
17 July 1, 1971.
18 (i) The amendatory provisions of this amendatory Act of
19 1985 relating to the discount of annuity because of
20 retirement prior to attainment of age 60 and increasing the
21 retirement formula for those born before January 1, 1936,
22 shall apply only to qualifying employees withdrawing on or
23 after August 16, 1985.
24 (j) Beginning on the effective date of this amendatory
25 Act of 1997 January 1, 1991, the minimum amount of employee's
26 annuity shall be $550 $350 per month for life for the
27 following classes of employees, without regard to the fact
28 that withdrawal occurred prior to the effective date of this
29 amendatory Act of 1997 January 1, 1991:
30 (1) any employee annuitant alive and receiving a
31 life annuity on the effective date of this amendatory Act
32 of 1997 January 1, 1991, except a reciprocal annuity;
33 (2) any employee annuitant alive and receiving a
34 term annuity on the effective date of this amendatory Act
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1 of 1997 January 1, 1991, except a reciprocal annuity;
2 (3) any employee annuitant alive and receiving a
3 reciprocal annuity on the effective date of this
4 amendatory Act of 1997 January 1, 1991, whose service in
5 this fund is at least 5 years;
6 (4) any employee annuitant withdrawing after age 60
7 on or after the effective date of this amendatory Act of
8 1997 January 1, 1991, with at least 10 years of service
9 in this fund.
10 The increases granted under items (1), (2) and (3) of
11 this subsection (j) shall not be limited by any other Section
12 of this Act.
13 (Source: P.A. 85-964; 86-1488.)
14 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
15 Sec. 11-145.1. Minimum annuities for widows. The widow
16 otherwise eligible for widow's annuity under other Sections
17 of this Article 11, of an employee hereinafter described, who
18 retires from service or dies while in the service subsequent
19 to the effective date of this amendatory provision, and for
20 which widow the amount of widow's annuity and widow's prior
21 service annuity combined, fixed or provided for such widow
22 under other provisions of said Article 11 is less than the
23 amount hereinafter provided in this section, shall, from and
24 after the date her otherwise provided annuity would begin, in
25 lieu of such otherwise provided widow's and widow's prior
26 service annuity, be entitled to the following indicated
27 amount of annuity:
28 (a) The widow of any employee who dies while in service
29 on or after the date on which he attains age 60 if the death
30 occurs before July 1, 1990, or on or after the date on which
31 he attains age 55 if the death occurs on or after July 1,
32 1990, with at least 20 years of service, or on or after the
33 date on which he attains age 50 if the death occurs on or
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1 after the effective date of this amendatory Act of 1997 with
2 at least 30 years of service, shall be entitled to an annuity
3 equal to one-half of the amount of annuity which her deceased
4 husband would have been entitled to receive had he withdrawn
5 from the service on the day immediately preceding the date of
6 his death, conditional upon such widow having attained age 60
7 on or before such date if the death occurs before July 1,
8 1990, or age 55 if the death occurs on or after July 1, 1990.
9 The widow's annuity shall not, however, exceed the sum of
10 $500 a month if the employee's death in service occurs before
11 January 23, 1987. The widow's annuity shall not be limited
12 to a maximum dollar amount if the employee's death in service
13 occurs on or after January 23, 1987.
14 If the employee dies in service before July 1, 1990, and
15 if such widow of such described employee shall not be 60 or
16 more years of age on such date of death, the amount provided
17 in the immediately preceding paragraph for a widow 60 or more
18 years of age, shall, in the case of such younger widow, be
19 reduced by 0.25% for each month that her then attained age is
20 less than 60 years if the employee was born before January 1,
21 1936, or dies in service on or after January 1, 1988, or 0.5%
22 for each month that her then attained age is less than 60
23 years if the employee was born on or after January 1, 1936
24 and dies in service before January 1, 1988.
25 If the employee dies in service on or after July 1, 1990,
26 and if the widow of the employee has not attained age 55 on
27 or before the employee's date of death, the amount otherwise
28 provided in this subsection (a) shall be reduced by 0.25% for
29 each month that her then attained age is less than 55 years.
30 (b) The widow of any employee who dies subsequent to the
31 date of his retirement on annuity, and who so retired on or
32 after the date on which he attained age 60 if retirement
33 occurs before July 1, 1990, or on or after the date on which
34 he attained age 55 if retirement occurs on or after July 1,
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1 1990, with at least 20 years of service, or on or after the
2 date on which he attained age 50 if the retirement occurs on
3 or after the effective date of this amendatory Act of 1997
4 with at least 30 years of service, shall be entitled to an
5 annuity equal to one-half of the amount of annuity which her
6 deceased husband received as of the date of his retirement on
7 annuity, conditional upon such widow having attained age 60
8 on or before the date of her husband's retirement on annuity
9 if retirement occurs before July 1, 1990, or age 55 if
10 retirement occurs on or after July 1, 1990. Such amount of
11 widow's annuity shall not, however, exceed the sum of $500 a
12 month if the employee's death occurs before January 23, 1987.
13 The widow's annuity shall not be limited to a maximum dollar
14 amount if the employee's death occurs on or after January 23,
15 1987, regardless of the date of retirement; provided that, if
16 retirement was before January 23, 1987, the employee or
17 eligible spouse repays the excess spouse refund with interest
18 at the effective rate from the date of refund to the date of
19 repayment.
20 If the date of the employee's retirement on annuity is
21 before July 1, 1990, and if such widow of such described
22 employee shall not have attained such age of 60 or more years
23 on such date of her husband's retirement on annuity, the
24 amount provided in the immediately preceding paragraph for a
25 widow 60 or more years of age on the date of her husband's
26 retirement on annuity, shall, in the case of such then
27 younger widow, be reduced by 0.25% for each month that her
28 then attained age was less than 60 years if the employee was
29 born before January 1, 1936, or withdraws from service on or
30 after January 1, 1988, or 0.5% for each month that her then
31 attained age was less than 60 years if the employee was born
32 on or after January 1, 1936 and withdraws from service before
33 January 1, 1988.
34 If the date of the employee's retirement on annuity is on
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1 or after July 1, 1990, and if the widow of the employee has
2 not attained age 55 by the date of the employee's retirement
3 on annuity, the amount otherwise provided in this subsection
4 (b) shall be reduced by 0.25% for each month that her then
5 attained age is less than 55 years.
6 (c) The foregoing provisions relating to minimum
7 annuities for widows shall not apply to the widow of any
8 former employee receiving an annuity from the fund on August
9 2, 1965 or on the effective date of this amendatory
10 provision, who re-enters service as a former employee, unless
11 such employee renders at least 3 years of additional service
12 after the date of re-entry.
13 (d) The amendatory provisions of part (a) and (b) of
14 this Section (increasing the maximum from $300 to $400 a
15 month) shall be effective as of July 1, 1971, and apply in
16 the case of every qualifying widow whose husband dies while
17 in service on or after July 1, 1971 and prior to January 1,
18 1984, or withdraws and enters on annuity on or after July 1,
19 1971 and prior to January 1, 1984.
20 (e) The changes made in parts (a) and (b) of this
21 Section by this amendatory Act of 1983 (increasing the
22 maximum from $400 to $500 per month) shall apply to every
23 qualifying widow whose husband dies in the service on or
24 after January 1, 1984, or withdraws and enters on annuity on
25 or after January 1, 1984.
26 (f) The amendments to this Section by this amendatory
27 Act of 1985, relating to changing the discount because of age
28 from 1/2 of 1% to 0.25% per month for widows of employees
29 born before January 1, 1936, shall apply only to qualifying
30 widows whose husbands die while in the service on or after
31 August 16, 1985 or withdraw and enter on annuity on or after
32 August 16, 1985.
33 (g) Beginning on the effective date of this amendatory
34 Act of 1997 January 1, 1991, the minimum amount of widow's
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1 annuity shall be $500 $300 per month for life for the
2 following classes of widows, without regard to the fact that
3 the death of the employee occurred prior to the effective
4 date of this amendatory Act of 1997 January 1, 1991:
5 (1) any widow annuitant alive and receiving a term
6 annuity on the effective date of this amendatory Act of
7 1997 January 1, 1991, except a reciprocal annuity;
8 (2) any widow annuitant alive and receiving a life
9 annuity on the effective date of this amendatory Act of
10 1997 January 1, 1991, except a reciprocal annuity;
11 (3) any widow annuitant alive and receiving a
12 reciprocal annuity on the effective date of this
13 amendatory Act of 1997 January 1, 1991, whose employee
14 spouse's service in this fund was at least 5 years;
15 (4) the widow of an employee with at least 10 years
16 of service in this fund who dies after retirement, if the
17 retirement occurred prior to the effective date of this
18 amendatory Act of 1997 January 1, 1991;
19 (5) the widow of an employee with at least 10 years
20 of service in this fund who dies after retirement, if
21 withdrawal occurs on or after the effective date of this
22 amendatory Act of 1997 January 1, 1991;
23 (6) the widow of an employee who dies in service
24 with at least 5 years of service in this fund, if the
25 death in service occurs on or after the effective date of
26 this amendatory Act of 1997 January 1, 1991.
27 The increases granted under items (1), (2), (3) and (4)
28 of this subsection (g) shall not be limited by any other
29 Section of this Act.
30 (h) The widow of an employee who retired or died in
31 service on or after January 1, 1985 and before July 1, 1990,
32 at age 55 or older, and with at least 35 years of service
33 credit, shall be entitled to have her widow's annuity
34 increased, effective January 1, 1991, to an amount equal to
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1 50% of the retirement annuity that the deceased employee
2 received on the date of retirement, or would have been
3 eligible to receive if he had retired on the day preceding
4 the date of his death in service, provided that if the widow
5 had not attained age 60 by the date of the employee's
6 retirement or death in service, the amount of the annuity
7 shall be reduced by 0.25% for each month that her then
8 attained age was less than age 60 if the employee's
9 retirement or death in service occurred on or after January
10 1, 1988, or by 0.5% for each month that her attained age is
11 less than age 60 if the employee's retirement or death in
12 service occurred prior to January 1, 1988. However, in cases
13 where a refund of excess contributions for widow's annuity
14 has been paid by the Fund, the increase in benefit provided
15 by this subsection (h) (i) shall be contingent upon repayment
16 of the refund to the Fund with interest at the effective rate
17 from the date of refund to the date of payment.
18 (i) If a deceased employee is receiving a retirement
19 annuity at the time of death and that death occurs on or
20 after the effective date of this amendatory Act of 1997, the
21 widow may elect to receive, in lieu of any other annuity
22 provided under this Article, 50% of the deceased employee's
23 retirement annuity at the time of death reduced by 0.25% for
24 each month that the widow's age on the date of death is less
25 than 55. However, in cases where a refund of excess
26 contributions for widow's annuity has been paid by the Fund,
27 the benefit provided by this subsection (i) is contingent
28 upon repayment of the refund to the Fund with interest at the
29 effective rate from the date of refund to the date of
30 payment.
31 (Source: P.A. 85-964; 86-1488.)
32 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
33 Sec. 11-154. Amount of child's annuity. Beginning on
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1 the effective date of this amendatory Act of 1997 January 1,
2 1988, the amount of a child's annuity shall be $220 $120 per
3 month for each child while the spouse of the deceased
4 employee parent survives, and $250 $150 per month for each
5 child when no such spouse survives, and shall be subject to
6 the following limitations:
7 (1) If the combined annuities for the widow and children
8 of an employee whose death resulted from injury incurred in
9 the performance of duty, or for the children where a widow
10 does not exist, exceed 70% of the employee's final monthly
11 salary, the annuity for each child shall be reduced pro rata
12 so that the combined annuities for the family shall not
13 exceed such limitation;
14 (2) For the family of an employee whose death is the
15 result of any cause other than injury incurred in the
16 performance of duty, in which the combined annuities for the
17 family exceed 60% of the employee's final monthly salary, the
18 annuity for each child shall be reduced pro rata so that the
19 combined annuities for the family shall not exceed such
20 limitation.
21 A child's annuity shall be paid to the parent who is
22 providing for the child, unless another person has been
23 appointed the child's legal guardian.
24 The increase in child's annuity provided by this
25 amendatory Act of 1997 1987 shall apply to all child's
26 annuities being paid on or after the effective date of this
27 amendatory Act of 1997. January 1, 1988, subject to The above
28 limitations on the combined annuities for a family in parts
29 (1) and (2) of this Section do not apply to families of
30 employees who died before the effective date of this
31 amendatory Act of 1997.
32 (Source: P.A. 85-964.)
33 (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
HB0313 Enrolled -74- LRB9000555EGfg
1 Sec. 11-160.1. Group health benefit.
2 (a) For the purposes of this Section: (1) "annuitant"
3 means a person receiving an age and service annuity, a prior
4 service annuity, a widow's annuity, a widow's prior service
5 annuity, or a minimum annuity on or after January 1, 1988,
6 under Article 5, 6, 8 or 11, by reason of previous employment
7 by the City of Chicago (hereinafter, in this Section, "the
8 city"); (2) "Medicare Plan annuitant" means an annuitant
9 described in item (1) who is eligible for Medicare benefits;
10 and (3) "non-Medicare Plan annuitant" means an annuitant
11 described in item (1) who is not eligible for Medicare
12 benefits.
13 (b) The city shall continue to offer group health
14 benefits to annuitants and their eligible dependents through
15 June 30, 2002. The same basic city health care plan
16 available as of June 30, 1988 (hereinafter called the basic
17 city plan) shall cease to be a plan offered by the city,
18 except as specified in subparagraphs (4) and (5) below, and
19 shall be closed to new enrollment or transfer of coverage for
20 any non-Medicare Plan annuitant as of the effective date of
21 this amendatory Act of 1997. The city shall offer
22 non-Medicare Plan annuitants and their eligible dependents
23 the option of enrolling in its Annuitant Preferred Provider
24 Plan, and may offer additional plans for any annuitant. The
25 city may amend, modify, or terminate any of its additional
26 plans at its sole discretion. If the city offers more than
27 one annuitant plan, the city shall allow annuitants to
28 convert coverage from one city annuitant plan to another,
29 except the basic city plan, during times designated by the
30 city, which periods of time shall occur at least annually.
31 For the period dating from the effective date of this
32 amendatory Act of 1997 through June 30, 2002, monthly premium
33 rates may be increased for annuitants during the time of
34 their participation in non-Medicare plans, except as provided
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1 in subparagraphs (1) through (4) of this subsection.
2 (1) For non-Medicare Plan annuitants who retired
3 prior to January 1, 1988, the annuitant's share of
4 monthly premium for non-Medicare Plan coverage only shall
5 not exceed the highest premium rate chargeable under any
6 city non-Medicare Plan annuitant coverage as of December
7 1, 1996.
8 (2) For non-Medicare Plan annuitants who retire on
9 or after January 1, 1988, the annuitant's share of
10 monthly premium for non-Medicare Plan coverage only shall
11 be the rate in effect on December 1, 1996, with monthly
12 premium increases to take effect no sooner than April 1,
13 1998 at the lower of (i) the premium rate determined
14 pursuant to subsection (g) or (ii) 10% of the immediately
15 previous month's rate for similar coverage.
16 (3) In no event shall any non-Medicare Plan
17 annuitant's share of monthly premium for non-Medicare
18 Plan coverage exceed 10% of the annuitant's monthly
19 annuity.
20 (4) Non-Medicare Plan annuitants who are enrolled
21 in the basic city plan as of July 1, 1998 may remain in
22 the basic city plan, if they so choose, on the condition
23 that they are not entitled to the caps on rates set forth
24 in subparagraphs (1) through (3), and their premium rate
25 shall be the rate determined in accordance with
26 subsections (c) and (g).
27 (5) Medicare Plan annuitants who are currently
28 enrolled in the basic city plan for Medicare eligible
29 annuitants may remain in that plan, if they so choose,
30 through June 30, 2002. Annuitants shall not be allowed
31 to enroll in or transfer into the basic city plan for
32 Medicare eligible annuitants on or after July 1, 1999.
33 The city shall continue to offer annuitants a
34 supplemental Medicare Plan for Medicare eligible
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1 annuitants through June 30, 2002, and the city may offer
2 additional plans to Medicare eligible annuitants in its
3 sole discretion. All Medicare Plan annuitant monthly
4 rates shall be determined in accordance with subsections
5 (c) and (g).
6 (c) Effective the date the initial increased annuitant
7 payments pursuant to subsection (g) take effect, The city
8 shall pay 50% of the aggregated costs of the claims or
9 premiums, whichever is applicable, as determined in
10 accordance with subsection (g), of annuitants and their
11 dependents under all health care plans offered by the city.
12 The city may reduce its obligation by application of price
13 reductions obtained as a result of financial arrangements
14 with providers or plan administrators. The claims or
15 premiums of all annuitants and their dependents under all of
16 the plans offered by the city shall be aggregated for the
17 purpose of calculating the city's payment required under this
18 subsection, as well as for the setting of rates of payment
19 for annuitants as required under subsection (g).
20 (d) From January 1, 1988 until December 31, 1992, the
21 board shall pay to the city on behalf of each of the board's
22 annuitants who chooses to participate in any of the city's
23 plans the following amounts: up to a maximum of $65 per month
24 for each such annuitant who is not qualified to receive
25 medicare benefits, and up to a maximum of $35 per month for
26 each such annuitant who is qualified to receive medicare
27 benefits. From January 1, 1993 until June 30, 2002 December
28 31, 1997, the board shall pay to the city on behalf of each
29 of the board's annuitants who chooses to participate in any
30 of the city's plans the following amounts: up to a maximum of
31 $75 per month for each such annuitant who is not qualified to
32 receive medicare benefits, and up to a maximum of $45 per
33 month for each such annuitant who is qualified to receive
34 medicare benefits.
HB0313 Enrolled -77- LRB9000555EGfg
1 For the period January 1, 1988 through the effective date
2 of this amendatory Act of 1989, payments under this Section
3 shall be reduced by the amounts paid by or on behalf of the
4 board's annuitants covered during that period.
5 The payments described in this subsection shall be paid
6 from the tax levy authorized under Section 11-178; such
7 amounts shall be credited to the reserve for group hospital
8 care and group medical and surgical plan benefits, and all
9 payments to the city required under this subsection shall be
10 charged against it.
11 (e) The city's obligations under subsections (b) and (c)
12 shall terminate on June 30, 2002 December 31, 1997, except
13 with regard to covered expenses incurred but not paid as of
14 that date. This subsection shall not affect other
15 obligations that may be imposed by law.
16 (f) The group coverage plans described in this Section
17 are not and shall not be construed to be pension or
18 retirement benefits for purposes of Section 5 of Article XIII
19 of the Illinois Constitution of 1970.
20 (g) For each annuitant plan offered by the city, the
21 aggregate cost of claims, as reflected in the claim records
22 of the plan administrator, and premiums for each calendar
23 year from 1989 through 1997 of all annuitants and dependents
24 covered by the city's group health care plans shall be
25 estimated by the city, based upon a written determination by
26 a qualified independent actuary to be appointed and paid by
27 the city and the board. If the such estimated annual cost
28 for each annuitant plan offered by the city is more than the
29 estimated amount to be contributed by the city for that plan
30 pursuant to subsections (b) and (c) during that year plus the
31 estimated amounts to be paid pursuant to subsection (d) and
32 by the other pension boards on behalf of other participating
33 annuitants, the difference shall be paid by all participating
34 annuitants participating in the plan, except as provided in
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1 subsection (b). The city, based upon the determination of
2 the independent actuary, shall set the monthly amounts to be
3 paid by the participating annuitants. The initial
4 determination of such payments shall be prospective only and
5 shall be based upon the estimated costs for the balance of
6 the year. The board may deduct the amounts to be paid by its
7 annuitants from the participating annuitants' monthly
8 annuities.
9 If it is determined from the city's annual audit, or from
10 audited experience data, that the total amount paid by all
11 participating annuitants was more or less than the difference
12 between (1) the cost of providing the group health care
13 plans, and (2) the sum of the amount to be paid by the city
14 as determined under subsection (c) and the amounts paid by
15 all the pension boards, then the independent actuary and the
16 city shall account for the excess or shortfall in the next
17 year's payments by annuitants, except as provided in
18 subsection (b).
19 (h) An annuitant may elect to terminate coverage in a
20 plan at the end of any month any time, which election shall
21 terminate the annuitant's obligation to contribute toward
22 payment of the excess described in subsection (g).
23 (i) The city shall advise the board of all proposed
24 premium increases for health care at least 75 days prior to
25 the effective date of the change, and any increase shall be
26 prospective only.
27 (Source: P.A. 86-273.)
28 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
29 Sec. 14-104. Service for which contributions permitted.
30 Contributions provided for in this Section shall cover the
31 period of service granted, and be based upon employee's
32 compensation and contribution rate in effect on the date he
33 last became a member of the System; provided that for all
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1 employment prior to January 1, 1969 the contribution rate
2 shall be that in effect for a noncovered employee on the date
3 he last became a member of the System. Contributions
4 permitted under this Section shall include regular interest
5 from the date an employee last became a member of the System
6 to date of payment.
7 These contributions must be paid in full before
8 retirement either in a lump sum or in installment payments in
9 accordance with such rules as may be adopted by the board.
10 (a) Any member may make contributions as required in
11 this Section for any period of service, subsequent to the
12 date of establishment, but prior to the date of membership.
13 (b) Any employee who had been previously excluded from
14 membership because of age at entry and subsequently became
15 eligible may elect to make contributions as required in this
16 Section for the period of service during which he was
17 ineligible.
18 (c) An employee of the Department of Insurance who,
19 after January 1, 1944 but prior to becoming eligible for
20 membership, received salary from funds of insurance companies
21 in the process of rehabilitation, liquidation, conservation
22 or dissolution, may elect to make contributions as required
23 in this Section for such service.
24 (d) Any employee who rendered service in a State office
25 to which he was elected, or rendered service in the elective
26 office of Clerk of the Appellate Court prior to the date he
27 became a member, may make contributions for such service as
28 required in this Section. Any member who served by
29 appointment of the Governor under the Civil Administrative
30 Code of Illinois and did not participate in this System may
31 make contributions as required in this Section for such
32 service.
33 (e) Any person employed by the United States government
34 or any instrumentality or agency thereof from January 1, 1942
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1 through November 15, 1946 as the result of a transfer from
2 State service by executive order of the President of the
3 United States shall be entitled to prior service credit
4 covering the period from January 1, 1942 through December 31,
5 1943 as provided for in this Article and to membership
6 service credit for the period from January 1, 1944 through
7 November 15, 1946 by making the contributions required in
8 this Section. A person so employed on January 1, 1944 but
9 whose employment began after January 1, 1942 may qualify for
10 prior service and membership service credit under the same
11 conditions.
12 (f) An employee of the Department of Labor of the State
13 of Illinois who performed services for and under the
14 supervision of that Department prior to January 1, 1944 but
15 who was compensated for those services directly by federal
16 funds and not by a warrant of the Auditor of Public Accounts
17 paid by the State Treasurer may establish credit for such
18 employment by making the contributions required in this
19 Section. An employee of the Department of Agriculture of the
20 State of Illinois, who performed services for and under the
21 supervision of that Department prior to June 1, 1963, but was
22 compensated for those services directly by federal funds and
23 not paid by a warrant of the Auditor of Public Accounts paid
24 by the State Treasurer, and who did not contribute to any
25 other public employee retirement system for such service, may
26 establish credit for such employment by making the
27 contributions required in this Section.
28 (g) Any employee who executed a waiver of membership
29 within 60 days prior to January 1, 1944 may, at any time
30 while in the service of a department, file with the board a
31 rescission of such waiver. Upon making the contributions
32 required by this Section, the member shall be granted the
33 creditable service that would have been received if the
34 waiver had not been executed.
HB0313 Enrolled -81- LRB9000555EGfg
1 (h) Until May 1, 1990, an employee who was employed on a
2 full-time basis by a regional planning commission for at
3 least 5 continuous years may establish creditable service for
4 such employment by making the contributions required under
5 this Section, provided that any credits earned by the
6 employee in the commission's retirement plan have been
7 terminated.
8 (i) Any person who rendered full time contractual
9 services to the General Assembly as a member of a legislative
10 staff may establish service credit for up to 8 years of such
11 services by making the contributions required under this
12 Section, provided that application therefor is made not later
13 than July 1, 1991.
14 (j) By paying the contributions otherwise required under
15 this Section, plus an amount determined by the Board to be
16 equal to the employer's normal cost of the benefit plus
17 interest, an employee may establish service credit for a
18 period of up to 2 years spent in active military service for
19 which he does not qualify for credit under Section 14-105,
20 provided that (1) he was not dishonorably discharged from
21 such military service, and (2) the amount of service credit
22 established by a member under this subsection (j), when added
23 to the amount of military service credit granted to the
24 member under subsection (b) of Section 14-105, shall not
25 exceed 5 years.
26 (k) An employee who was employed on a full-time basis by
27 the Illinois State's Attorneys Association Statewide
28 Appellate Assistance Service LEAA-ILEC grant project prior to
29 the time that project became the State's Attorneys Appellate
30 Service Commission, now the Office of the State's Attorneys
31 Appellate Prosecutor, an agency of State government, may
32 establish creditable service for not more than 60 months
33 service for such employment by making contributions required
34 under this Section.
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1 (l) By paying the contributions otherwise required under
2 this Section, plus an amount determined by the Board to be
3 equal to the employer's normal cost of the benefit plus
4 interest, a member may establish service credit for periods
5 of less than one year spent on authorized leave of absence
6 from service, provided that (1) the period of leave began on
7 or after January 1, 1982 and (2) any credit established by
8 the member for the period of leave in any other public
9 employee retirement system has been terminated. A member may
10 establish service credit under this subsection for more than
11 one period of authorized leave, and in that case the total
12 period of service credit established by the member under this
13 subsection may exceed one year.
14 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
15 (40 ILCS 5/14-104.10 new)
16 Sec. 14-104.10. Federal or out-of-state employment. A
17 contributing employee may establish additional service credit
18 for periods of full-time employment by the federal government
19 or a unit of state or local government located outside
20 Illinois for which he or she does not qualify for credit
21 under any other provision of this Article, provided that (i)
22 the amount of service credit established by a person under
23 this Section shall not exceed 8 years or 40% of his or her
24 membership service under this Article, whichever is less,
25 (ii) the amount of service credit established by a person
26 under this Section for federal employment, when added to the
27 amount of all military service credit granted to the person
28 under this Article, shall not exceed 8 years, and (iii) any
29 credit received for the federal or out-of-state employment in
30 any federal or other public employee pension fund or
31 retirement system has been terminated or relinquished.
32 Credit may not be established under this Section for any
33 period of military service or for any period for which credit
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1 has been or may be established under Section 14-110 or any
2 other provision of this Article.
3 In order to establish service credit under this Section,
4 the applicant must submit a written application to the System
5 by June 30, 1998, including documentation of the federal or
6 out-of-state employment satisfactory to the Board, and pay to
7 the System (1) employee contributions at the rates provided
8 in this Article based upon the person's salary on the last
9 day as a participating employee prior to the federal or
10 out-of-state employment, or on the first day as a
11 participating employee after that employment, whichever is
12 greater, plus (2) an amount determined by the Board to be
13 equal to the employer's normal cost of the benefits accrued
14 for that employment, plus (3) regular interest on items (1)
15 and (2) from the date of conclusion of the employment to the
16 date of payment.
17 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
18 (Text of Section before amendment by P.A. 89-507)
19 Sec. 14-110. Alternative retirement annuity.
20 (a) Any member who has withdrawn from service with not
21 less than 20 years of eligible creditable service and has
22 attained age 55, and any member who has withdrawn from
23 service with not less than 25 years of eligible creditable
24 service and has attained age 50, regardless of whether the
25 attainment of either of the specified ages occurs while the
26 member is still in service, shall be entitled to receive at
27 the option of the member, in lieu of the regular or minimum
28 retirement annuity, a retirement annuity computed as
29 follows:
30 (i) for periods of service as a noncovered
31 employee, 2 1/4% of final average compensation for each
32 of the first 10 years of creditable service, 2 1/2% for
33 each year above 10 years to and including 20 years of
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1 creditable service, and 2 3/4% for each year of
2 creditable service above 20 years; and
3 (ii) for periods of eligible creditable service as
4 a covered employee, 1.67% of final average compensation
5 for each of the first 10 years of such service, 1.90% for
6 each of the next 10 years of such service, 2.10% for each
7 year of such service in excess of 20 but not exceeding
8 30, and 2.30% for each year in excess of 30.
9 Such annuity shall be subject to a maximum of 75% of
10 final average compensation. These rates shall not be
11 applicable to any service performed by a member as a covered
12 employee which is not eligible creditable service. Service
13 as a covered employee which is not eligible creditable
14 service shall be subject to the rates and provisions of
15 Section 14-108.
16 (b) For the purpose of this Section, "eligible
17 creditable service" means creditable service resulting from
18 service in one or more of the following positions:
19 (1) State policeman;
20 (2) fire fighter in the fire protection service of
21 a department;
22 (3) air pilot;
23 (4) special agent;
24 (5) investigator for the Secretary of State;
25 (6) conservation police officer;
26 (7) investigator for the Department of Revenue;
27 (8) security employee of the Department of Mental
28 Health and Developmental Disabilities;
29 (9) Central Management Services security police
30 officer;
31 (10) security employee of the Department of
32 Corrections;
33 (11) dangerous drugs investigator;
34 (12) investigator for the Department of State
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1 Police;
2 (13) investigator for the Office of the Attorney
3 General;
4 (14) controlled substance inspector;
5 (15) investigator for the Office of the State's
6 Attorneys Appellate Prosecutor;
7 (16) Commerce Commission police officer;
8 (17) arson investigator.
9 A person employed in one of the positions specified in
10 this subsection is entitled to eligible creditable service
11 for service credit earned under this Article while undergoing
12 the basic police training course approved by the Illinois
13 Local Governmental Law Enforcement Officers Training Board,
14 if completion of that training is required of persons serving
15 in that position. For the purposes of this Code, service
16 during the required basic police training course shall be
17 deemed performance of the duties of the specified position,
18 even though the person is not a sworn peace officer at the
19 time of the training.
20 (c) For the purposes of this Section:
21 (1) The term "state policeman" includes any title
22 or position in the Department of State Police that is
23 held by an individual employed under the State Police
24 Act.
25 (2) The term "fire fighter in the fire protection
26 service of a department" includes all officers in such
27 fire protection service including fire chiefs and
28 assistant fire chiefs.
29 (3) The term "air pilot" includes any employee
30 whose official job description on file in the Department
31 of Central Management Services, or in the department by
32 which he is employed if that department is not covered by
33 the Personnel Code, states that his principal duty is the
34 operation of aircraft, and who possesses a pilot's
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1 license; however, the change in this definition made by
2 this amendatory Act of 1983 shall not operate to exclude
3 any noncovered employee who was an "air pilot" for the
4 purposes of this Section on January 1, 1984.
5 (4) The term "special agent" means any person who
6 by reason of employment by the Division of Narcotic
7 Control, the Bureau of Investigation or, after July 1,
8 1977, the Division of Criminal Investigation, the
9 Division of Internal Investigation or any other Division
10 or organizational entity in the Department of State
11 Police is vested by law with duties to maintain public
12 order, investigate violations of the criminal law of this
13 State, enforce the laws of this State, make arrests and
14 recover property. The term "special agent" includes any
15 title or position in the Department of State Police that
16 is held by an individual employed under the State Police
17 Act.
18 (5) The term "investigator for the Secretary of
19 State" means any person employed by the Office of the
20 Secretary of State and vested with such investigative
21 duties as render him ineligible for coverage under the
22 Social Security Act by reason of Sections 218(d)(5)(A),
23 218(d)(8)(D) and 218(l)(1) of that Act.
24 A person who became employed as an investigator for
25 the Secretary of State between January 1, 1967 and
26 December 31, 1975, and who has served as such until
27 attainment of age 60, either continuously or with a
28 single break in service of not more than 3 years
29 duration, which break terminated before January 1, 1976,
30 shall be entitled to have his retirement annuity
31 calculated in accordance with subsection (a),
32 notwithstanding that he has less than 20 years of credit
33 for such service.
34 (6) The term "Conservation Police Officer" means
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1 any person employed by the Division of Law Enforcement of
2 the Department of Natural Resources and vested with such
3 law enforcement duties as render him ineligible for
4 coverage under the Social Security Act by reason of
5 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
6 that Act. The term "Conservation Police Officer"
7 includes the positions of Chief Conservation Police
8 Administrator and Assistant Conservation Police
9 Administrator.
10 (7) The term "investigator for the Department of
11 Revenue" means any person employed by the Department of
12 Revenue and vested with such investigative duties as
13 render him ineligible for coverage under the Social
14 Security Act by reason of Sections 218(d)(5)(A),
15 218(d)(8)(D) and 218(l)(1) of that Act.
16 (8) The term "security employee of the Department
17 of Mental Health and Developmental Disabilities" means
18 any person employed by the Department of Mental Health
19 and Developmental Disabilities who is employed at the
20 Chester Mental Health Center and has daily contact with
21 the residents thereof, or who is a mental health police
22 officer. "Mental health police officer" means any person
23 employed by the Department of Mental Health and
24 Developmental Disabilities who is vested with such law
25 enforcement duties as render him ineligible for coverage
26 under the Social Security Act by reason of Sections
27 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
28 (9) "Central Management Services security police
29 officer" means any person employed by the Department of
30 Central Management Services who is vested with such law
31 enforcement duties as render him ineligible for coverage
32 under the Social Security Act by reason of Sections
33 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
34 (10) The term "security employee of the Department
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1 of Corrections" means any employee of the Department of
2 Corrections or the former Department of Personnel, and
3 any member or employee of the Prisoner Review Board, who
4 has daily contact with inmates by working within a
5 correctional facility or who is a parole officer or an
6 employee who has direct contact with committed persons in
7 the performance of his or her job duties.
8 (11) The term "dangerous drugs investigator" means
9 any person who is employed as such by the Department of
10 Alcoholism and Substance Abuse.
11 (12) The term "investigator for the Department of
12 State Police" means a person employed by the Department
13 of State Police who is vested under Section 4 of the
14 Narcotic Control Division Abolition Act with such law
15 enforcement powers as render him ineligible for coverage
16 under the Social Security Act by reason of Sections
17 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
18 (13) "Investigator for the Office of the Attorney
19 General" means any person who is employed as such by the
20 Office of the Attorney General and is vested with such
21 investigative duties as render him ineligible for
22 coverage under the Social Security Act by reason of
23 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
24 Act. For the period before January 1, 1989, the term
25 includes all persons who were employed as investigators
26 by the Office of the Attorney General, without regard to
27 social security status.
28 (14) "Controlled substance inspector" means any
29 person who is employed as such by the Department of
30 Professional Regulation and is vested with such law
31 enforcement duties as render him ineligible for coverage
32 under the Social Security Act by reason of Sections
33 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
34 The term "controlled substance inspector" includes the
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1 Program Executive of Enforcement and the Assistant
2 Program Executive of Enforcement.
3 (15) The term "investigator for the Office of the
4 State's Attorneys Appellate Prosecutor" means a person
5 employed in that capacity on a full time basis under the
6 authority of Section 7.06 of the State's Attorneys
7 Appellate Prosecutor's Act.
8 (16) "Commerce Commission police officer" means any
9 person employed by the Illinois Commerce Commission who
10 is vested with such law enforcement duties as render him
11 ineligible for coverage under the Social Security Act by
12 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
13 218(l)(1) of that Act.
14 (17) "Arson investigator" means any person who is
15 employed as such by the Office of the State Fire Marshal
16 and is vested with such law enforcement duties as render
17 the person ineligible for coverage under the Social
18 Security Act by reason of Sections 218(d)(5)(A),
19 218(d)(8)(D), and 218(l)(1) of that Act. A person who
20 was employed as an arson investigator on January 1, 1995
21 and is no longer in service but not yet receiving a
22 retirement annuity may convert his or her creditable
23 service for employment as an arson investigator into
24 eligible creditable service by paying to the System the
25 difference between the employee contributions actually
26 paid for that service and the amounts that would have
27 been contributed if the applicant were contributing at
28 the rate applicable to persons with the same social
29 security status earning eligible creditable service on
30 the date of application.
31 (d) A security employee of the Department of
32 Corrections, and a security employee of the Department of
33 Mental Health and Developmental Disabilities who is not a
34 mental health police officer, shall not be eligible for the
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1 alternative retirement annuity provided by this Section
2 unless he or she meets the following minimum age and service
3 requirements at the time of retirement:
4 (i) 25 years of eligible creditable service and age
5 55; or
6 (ii) beginning January 1, 1987, 25 years of
7 eligible creditable service and age 54, or 24 years of
8 eligible creditable service and age 55; or
9 (iii) beginning January 1, 1988, 25 years of
10 eligible creditable service and age 53, or 23 years of
11 eligible creditable service and age 55; or
12 (iv) beginning January 1, 1989, 25 years of
13 eligible creditable service and age 52, or 22 years of
14 eligible creditable service and age 55; or
15 (v) beginning January 1, 1990, 25 years of eligible
16 creditable service and age 51, or 21 years of eligible
17 creditable service and age 55; or
18 (vi) beginning January 1, 1991, 25 years of
19 eligible creditable service and age 50, or 20 years of
20 eligible creditable service and age 55.
21 Persons who have service credit under Article 16 of this
22 Code for service as a security employee of the Department of
23 Corrections in a position requiring certification as a
24 teacher may count such service toward establishing their
25 eligibility under the service requirements of this Section;
26 but such service may be used only for establishing such
27 eligibility, and not for the purpose of increasing or
28 calculating any benefit.
29 (e) If a member enters military service while working in
30 a position in which eligible creditable service may be
31 earned, and returns to State service in the same or another
32 such position, and fulfills in all other respects the
33 conditions prescribed in this Article for credit for military
34 service, such military service shall be credited as eligible
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1 creditable service for the purposes of the retirement annuity
2 prescribed in this Section.
3 (f) For purposes of calculating retirement annuities
4 under this Section, periods of service rendered after
5 December 31, 1968 and before October 1, 1975 as a covered
6 employee in the position of special agent, conservation
7 police officer, mental health police officer, or investigator
8 for the Secretary of State, shall be deemed to have been
9 service as a noncovered employee, provided that the employee
10 pays to the System prior to retirement an amount equal to (1)
11 the difference between the employee contributions that would
12 have been required for such service as a noncovered employee,
13 and the amount of employee contributions actually paid, plus
14 (2) if payment is made after July 31, 1987, regular interest
15 on the amount specified in item (1) from the date of service
16 to the date of payment.
17 For purposes of calculating retirement annuities under
18 this Section, periods of service rendered after December 31,
19 1968 and before January 1, 1982 as a covered employee in the
20 position of investigator for the Department of Revenue shall
21 be deemed to have been service as a noncovered employee,
22 provided that the employee pays to the System prior to
23 retirement an amount equal to (1) the difference between the
24 employee contributions that would have been required for such
25 service as a noncovered employee, and the amount of employee
26 contributions actually paid, plus (2) if payment is made
27 after January 1, 1990, regular interest on the amount
28 specified in item (1) from the date of service to the date of
29 payment.
30 (g) A State policeman may elect, not later than January
31 1, 1990, to establish eligible creditable service for up to
32 10 years of his service as a policeman under Article 3, by
33 filing a written election with the Board, accompanied by
34 payment of an amount to be determined by the Board, equal to
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1 (i) the difference between the amount of employee and
2 employer contributions transferred to the System under
3 Section 3-110.5, and the amounts that would have been
4 contributed had such contributions been made at the rates
5 applicable to State policemen, plus (ii) interest thereon at
6 the effective rate for each year, compounded annually, from
7 the date of service to the date of payment.
8 Subject to the limitation in subsection (i), a State
9 policeman may elect, not later than July 1, 1993, to
10 establish eligible creditable service for up to 10 years of
11 his service as a member of the County Police Department under
12 Article 9, by filing a written election with the Board,
13 accompanied by payment of an amount to be determined by the
14 Board, equal to (i) the difference between the amount of
15 employee and employer contributions transferred to the System
16 under Section 9-121.10 and the amounts that would have been
17 contributed had those contributions been made at the rates
18 applicable to State policemen, plus (ii) interest thereon at
19 the effective rate for each year, compounded annually, from
20 the date of service to the date of payment.
21 (h) Subject to the limitation in subsection (i), a State
22 policeman or investigator for the Secretary of State may
23 elect to establish eligible creditable service for up to 12
24 years of his service as a policeman under Article 5, by
25 filing a written election with the Board on or before January
26 31, 1992, and paying to the System by January 31, 1994 an
27 amount to be determined by the Board, equal to (i) the
28 difference between the amount of employee and employer
29 contributions transferred to the System under Section 5-236,
30 and the amounts that would have been contributed had such
31 contributions been made at the rates applicable to State
32 policemen, plus (ii) interest thereon at the effective rate
33 for each year, compounded annually, from the date of service
34 to the date of payment.
HB0313 Enrolled -93- LRB9000555EGfg
1 Subject to the limitation in subsection (i), a State
2 policeman, conservation police officer, or investigator for
3 the Secretary of State may elect to establish eligible
4 creditable service for up to 10 years of service as a
5 sheriff's law enforcement employee under Article 7, by filing
6 a written election with the Board on or before January 31,
7 1993, and paying to the System by January 31, 1994 an amount
8 to be determined by the Board, equal to (i) the difference
9 between the amount of employee and employer contributions
10 transferred to the System under Section 7-139.7, and the
11 amounts that would have been contributed had such
12 contributions been made at the rates applicable to State
13 policemen, plus (ii) interest thereon at the effective rate
14 for each year, compounded annually, from the date of service
15 to the date of payment.
16 (i) The total amount of eligible creditable service
17 established by any person under subsections (g), (h), and
18 (j), (k), and (l) of this Section shall not exceed 12 years.
19 (j) Subject to the limitation in subsection (i), an
20 investigator for the Office of the State's Attorneys
21 Appellate Prosecutor or a controlled substance inspector may
22 elect to establish eligible creditable service for up to 10
23 years of his service as a policeman under Article 3 or a
24 sheriff's law enforcement employee under Article 7, by filing
25 a written election with the Board, accompanied by payment of
26 an amount to be determined by the Board, equal to (1) the
27 difference between the amount of employee and employer
28 contributions transferred to the System under Section 3-110.6
29 or 7-139.8, and the amounts that would have been contributed
30 had such contributions been made at the rates applicable to
31 State policemen, plus (2) interest thereon at the effective
32 rate for each year, compounded annually, from the date of
33 service to the date of payment.
34 (k) Subject to the limitation in subsection (i) of this
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1 Section, an alternative formula employee may elect to
2 establish eligible creditable service for periods spent as a
3 full-time law enforcement officer or full-time corrections
4 officer employed by the federal government or by a state or
5 local government located outside of Illinois, for which
6 credit is not held in any other public employee pension fund
7 or retirement system. To obtain this credit, the applicant
8 must file a written application with the Board by March 31,
9 1998, accompanied by evidence of eligibility acceptable to
10 the Board and payment of an amount to be determined by the
11 Board, equal to (1) employee contributions for the credit
12 being established, based upon the applicant's salary on the
13 first day as an alternative formula employee after the
14 employment for which credit is being established and the
15 rates then applicable to alternative formula employees, plus
16 (2) an amount determined by the Board to be the employer's
17 normal cost of the benefits accrued for the credit being
18 established, plus (3) regular interest on the amounts in
19 items (1) and (2) from the first day as an alternative
20 formula employee after the employment for which credit is
21 being established to the date of payment.
22 (l) Subject to the limitation in subsection (i), a
23 security employee of the Department of Corrections may elect,
24 not later than July 1, 1998, to establish eligible creditable
25 service for up to 10 years of his or her service as a
26 policeman under Article 3, by filing a written election with
27 the Board, accompanied by payment of an amount to be
28 determined by the Board, equal to (i) the difference between
29 the amount of employee and employer contributions transferred
30 to the System under Section 3-110.5, and the amounts that
31 would have been contributed had such contributions been made
32 at the rates applicable to security employees of the
33 Department of Corrections, plus (ii) interest thereon at the
34 effective rate for each year, compounded annually, from the
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1 date of service to the date of payment.
2 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96.)
3 (Text of Section after amendment by P.A. 89-507)
4 Sec. 14-110. Alternative retirement annuity.
5 (a) Any member who has withdrawn from service with not
6 less than 20 years of eligible creditable service and has
7 attained age 55, and any member who has withdrawn from
8 service with not less than 25 years of eligible creditable
9 service and has attained age 50, regardless of whether the
10 attainment of either of the specified ages occurs while the
11 member is still in service, shall be entitled to receive at
12 the option of the member, in lieu of the regular or minimum
13 retirement annuity, a retirement annuity computed as
14 follows:
15 (i) for periods of service as a noncovered
16 employee, 2 1/4% of final average compensation for each
17 of the first 10 years of creditable service, 2 1/2% for
18 each year above 10 years to and including 20 years of
19 creditable service, and 2 3/4% for each year of
20 creditable service above 20 years; and
21 (ii) for periods of eligible creditable service as
22 a covered employee, 1.67% of final average compensation
23 for each of the first 10 years of such service, 1.90% for
24 each of the next 10 years of such service, 2.10% for each
25 year of such service in excess of 20 but not exceeding
26 30, and 2.30% for each year in excess of 30.
27 Such annuity shall be subject to a maximum of 75% of
28 final average compensation. These rates shall not be
29 applicable to any service performed by a member as a covered
30 employee which is not eligible creditable service. Service
31 as a covered employee which is not eligible creditable
32 service shall be subject to the rates and provisions of
33 Section 14-108.
34 (b) For the purpose of this Section, "eligible
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1 creditable service" means creditable service resulting from
2 service in one or more of the following positions:
3 (1) State policeman;
4 (2) fire fighter in the fire protection service of
5 a department;
6 (3) air pilot;
7 (4) special agent;
8 (5) investigator for the Secretary of State;
9 (6) conservation police officer;
10 (7) investigator for the Department of Revenue;
11 (8) security employee of the Department of Human
12 Services;
13 (9) Central Management Services security police
14 officer;
15 (10) security employee of the Department of
16 Corrections;
17 (11) dangerous drugs investigator;
18 (12) investigator for the Department of State
19 Police;
20 (13) investigator for the Office of the Attorney
21 General;
22 (14) controlled substance inspector;
23 (15) investigator for the Office of the State's
24 Attorneys Appellate Prosecutor;
25 (16) Commerce Commission police officer;
26 (17) arson investigator.
27 A person employed in one of the positions specified in
28 this subsection is entitled to eligible creditable service
29 for service credit earned under this Article while undergoing
30 the basic police training course approved by the Illinois
31 Local Governmental Law Enforcement Officers Training Board,
32 if completion of that training is required of persons serving
33 in that position. For the purposes of this Code, service
34 during the required basic police training course shall be
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1 deemed performance of the duties of the specified position,
2 even though the person is not a sworn peace officer at the
3 time of the training.
4 (c) For the purposes of this Section:
5 (1) The term "state policeman" includes any title
6 or position in the Department of State Police that is
7 held by an individual employed under the State Police
8 Act.
9 (2) The term "fire fighter in the fire protection
10 service of a department" includes all officers in such
11 fire protection service including fire chiefs and
12 assistant fire chiefs.
13 (3) The term "air pilot" includes any employee
14 whose official job description on file in the Department
15 of Central Management Services, or in the department by
16 which he is employed if that department is not covered by
17 the Personnel Code, states that his principal duty is the
18 operation of aircraft, and who possesses a pilot's
19 license; however, the change in this definition made by
20 this amendatory Act of 1983 shall not operate to exclude
21 any noncovered employee who was an "air pilot" for the
22 purposes of this Section on January 1, 1984.
23 (4) The term "special agent" means any person who
24 by reason of employment by the Division of Narcotic
25 Control, the Bureau of Investigation or, after July 1,
26 1977, the Division of Criminal Investigation, the
27 Division of Internal Investigation or any other Division
28 or organizational entity in the Department of State
29 Police is vested by law with duties to maintain public
30 order, investigate violations of the criminal law of this
31 State, enforce the laws of this State, make arrests and
32 recover property. The term "special agent" includes any
33 title or position in the Department of State Police that
34 is held by an individual employed under the State Police
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1 Act.
2 (5) The term "investigator for the Secretary of
3 State" means any person employed by the Office of the
4 Secretary of State and vested with such investigative
5 duties as render him ineligible for coverage under the
6 Social Security Act by reason of Sections 218(d)(5)(A),
7 218(d)(8)(D) and 218(l)(1) of that Act.
8 A person who became employed as an investigator for
9 the Secretary of State between January 1, 1967 and
10 December 31, 1975, and who has served as such until
11 attainment of age 60, either continuously or with a
12 single break in service of not more than 3 years
13 duration, which break terminated before January 1, 1976,
14 shall be entitled to have his retirement annuity
15 calculated in accordance with subsection (a),
16 notwithstanding that he has less than 20 years of credit
17 for such service.
18 (6) The term "Conservation Police Officer" means
19 any person employed by the Division of Law Enforcement of
20 the Department of Natural Resources and vested with such
21 law enforcement duties as render him ineligible for
22 coverage under the Social Security Act by reason of
23 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
24 that Act. The term "Conservation Police Officer"
25 includes the positions of Chief Conservation Police
26 Administrator and Assistant Conservation Police
27 Administrator.
28 (7) The term "investigator for the Department of
29 Revenue" means any person employed by the Department of
30 Revenue and vested with such investigative duties as
31 render him ineligible for coverage under the Social
32 Security Act by reason of Sections 218(d)(5)(A),
33 218(d)(8)(D) and 218(l)(1) of that Act.
34 (8) The term "security employee of the Department
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1 of Human Services" means any person employed by the
2 Department of Human Services who is employed at the
3 Chester Mental Health Center and has daily contact with
4 the residents thereof, or who is a mental health police
5 officer. "Mental health police officer" means any person
6 employed by the Department of Human Services in a
7 position pertaining to the Department's mental health and
8 developmental disabilities functions who is vested with
9 such law enforcement duties as render the person
10 ineligible for coverage under the Social Security Act by
11 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
12 218(l)(1) of that Act.
13 (9) "Central Management Services security police
14 officer" means any person employed by the Department of
15 Central Management Services who is vested with such law
16 enforcement duties as render him ineligible for coverage
17 under the Social Security Act by reason of Sections
18 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
19 (10) The term "security employee of the Department
20 of Corrections" means any employee of the Department of
21 Corrections or the former Department of Personnel, and
22 any member or employee of the Prisoner Review Board, who
23 has daily contact with inmates by working within a
24 correctional facility or who is a parole officer or an
25 employee who has direct contact with committed persons in
26 the performance of his or her job duties.
27 (11) The term "dangerous drugs investigator" means
28 any person who is employed as such by the Department of
29 Human Services.
30 (12) The term "investigator for the Department of
31 State Police" means a person employed by the Department
32 of State Police who is vested under Section 4 of the
33 Narcotic Control Division Abolition Act with such law
34 enforcement powers as render him ineligible for coverage
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1 under the Social Security Act by reason of Sections
2 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
3 (13) "Investigator for the Office of the Attorney
4 General" means any person who is employed as such by the
5 Office of the Attorney General and is vested with such
6 investigative duties as render him ineligible for
7 coverage under the Social Security Act by reason of
8 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
9 Act. For the period before January 1, 1989, the term
10 includes all persons who were employed as investigators
11 by the Office of the Attorney General, without regard to
12 social security status.
13 (14) "Controlled substance inspector" means any
14 person who is employed as such by the Department of
15 Professional Regulation and is vested with such law
16 enforcement duties as render him ineligible for coverage
17 under the Social Security Act by reason of Sections
18 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
19 The term "controlled substance inspector" includes the
20 Program Executive of Enforcement and the Assistant
21 Program Executive of Enforcement.
22 (15) The term "investigator for the Office of the
23 State's Attorneys Appellate Prosecutor" means a person
24 employed in that capacity on a full time basis under the
25 authority of Section 7.06 of the State's Attorneys
26 Appellate Prosecutor's Act.
27 (16) "Commerce Commission police officer" means any
28 person employed by the Illinois Commerce Commission who
29 is vested with such law enforcement duties as render him
30 ineligible for coverage under the Social Security Act by
31 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
32 218(l)(1) of that Act.
33 (17) "Arson investigator" means any person who is
34 employed as such by the Office of the State Fire Marshal
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1 and is vested with such law enforcement duties as render
2 the person ineligible for coverage under the Social
3 Security Act by reason of Sections 218(d)(5)(A),
4 218(d)(8)(D), and 218(l)(1) of that Act. A person who
5 was employed as an arson investigator on January 1, 1995
6 and is no longer in service but not yet receiving a
7 retirement annuity may convert his or her creditable
8 service for employment as an arson investigator into
9 eligible creditable service by paying to the System the
10 difference between the employee contributions actually
11 paid for that service and the amounts that would have
12 been contributed if the applicant were contributing at
13 the rate applicable to persons with the same social
14 security status earning eligible creditable service on
15 the date of application.
16 (d) A security employee of the Department of
17 Corrections, and a security employee of the Department of
18 Human Services who is not a mental health police officer,
19 shall not be eligible for the alternative retirement annuity
20 provided by this Section unless he or she meets the following
21 minimum age and service requirements at the time of
22 retirement:
23 (i) 25 years of eligible creditable service and age
24 55; or
25 (ii) beginning January 1, 1987, 25 years of
26 eligible creditable service and age 54, or 24 years of
27 eligible creditable service and age 55; or
28 (iii) beginning January 1, 1988, 25 years of
29 eligible creditable service and age 53, or 23 years of
30 eligible creditable service and age 55; or
31 (iv) beginning January 1, 1989, 25 years of
32 eligible creditable service and age 52, or 22 years of
33 eligible creditable service and age 55; or
34 (v) beginning January 1, 1990, 25 years of eligible
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1 creditable service and age 51, or 21 years of eligible
2 creditable service and age 55; or
3 (vi) beginning January 1, 1991, 25 years of
4 eligible creditable service and age 50, or 20 years of
5 eligible creditable service and age 55.
6 Persons who have service credit under Article 16 of this
7 Code for service as a security employee of the Department of
8 Corrections in a position requiring certification as a
9 teacher may count such service toward establishing their
10 eligibility under the service requirements of this Section;
11 but such service may be used only for establishing such
12 eligibility, and not for the purpose of increasing or
13 calculating any benefit.
14 (e) If a member enters military service while working in
15 a position in which eligible creditable service may be
16 earned, and returns to State service in the same or another
17 such position, and fulfills in all other respects the
18 conditions prescribed in this Article for credit for military
19 service, such military service shall be credited as eligible
20 creditable service for the purposes of the retirement annuity
21 prescribed in this Section.
22 (f) For purposes of calculating retirement annuities
23 under this Section, periods of service rendered after
24 December 31, 1968 and before October 1, 1975 as a covered
25 employee in the position of special agent, conservation
26 police officer, mental health police officer, or investigator
27 for the Secretary of State, shall be deemed to have been
28 service as a noncovered employee, provided that the employee
29 pays to the System prior to retirement an amount equal to (1)
30 the difference between the employee contributions that would
31 have been required for such service as a noncovered employee,
32 and the amount of employee contributions actually paid, plus
33 (2) if payment is made after July 31, 1987, regular interest
34 on the amount specified in item (1) from the date of service
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1 to the date of payment.
2 For purposes of calculating retirement annuities under
3 this Section, periods of service rendered after December 31,
4 1968 and before January 1, 1982 as a covered employee in the
5 position of investigator for the Department of Revenue shall
6 be deemed to have been service as a noncovered employee,
7 provided that the employee pays to the System prior to
8 retirement an amount equal to (1) the difference between the
9 employee contributions that would have been required for such
10 service as a noncovered employee, and the amount of employee
11 contributions actually paid, plus (2) if payment is made
12 after January 1, 1990, regular interest on the amount
13 specified in item (1) from the date of service to the date of
14 payment.
15 (g) A State policeman may elect, not later than January
16 1, 1990, to establish eligible creditable service for up to
17 10 years of his service as a policeman under Article 3, by
18 filing a written election with the Board, accompanied by
19 payment of an amount to be determined by the Board, equal to
20 (i) the difference between the amount of employee and
21 employer contributions transferred to the System under
22 Section 3-110.5, and the amounts that would have been
23 contributed had such contributions been made at the rates
24 applicable to State policemen, plus (ii) interest thereon at
25 the effective rate for each year, compounded annually, from
26 the date of service to the date of payment.
27 Subject to the limitation in subsection (i), a State
28 policeman may elect, not later than July 1, 1993, to
29 establish eligible creditable service for up to 10 years of
30 his service as a member of the County Police Department under
31 Article 9, by filing a written election with the Board,
32 accompanied by payment of an amount to be determined by the
33 Board, equal to (i) the difference between the amount of
34 employee and employer contributions transferred to the System
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1 under Section 9-121.10 and the amounts that would have been
2 contributed had those contributions been made at the rates
3 applicable to State policemen, plus (ii) interest thereon at
4 the effective rate for each year, compounded annually, from
5 the date of service to the date of payment.
6 (h) Subject to the limitation in subsection (i), a State
7 policeman or investigator for the Secretary of State may
8 elect to establish eligible creditable service for up to 12
9 years of his service as a policeman under Article 5, by
10 filing a written election with the Board on or before January
11 31, 1992, and paying to the System by January 31, 1994 an
12 amount to be determined by the Board, equal to (i) the
13 difference between the amount of employee and employer
14 contributions transferred to the System under Section 5-236,
15 and the amounts that would have been contributed had such
16 contributions been made at the rates applicable to State
17 policemen, plus (ii) interest thereon at the effective rate
18 for each year, compounded annually, from the date of service
19 to the date of payment.
20 Subject to the limitation in subsection (i), a State
21 policeman, conservation police officer, or investigator for
22 the Secretary of State may elect to establish eligible
23 creditable service for up to 10 years of service as a
24 sheriff's law enforcement employee under Article 7, by filing
25 a written election with the Board on or before January 31,
26 1993, and paying to the System by January 31, 1994 an amount
27 to be determined by the Board, equal to (i) the difference
28 between the amount of employee and employer contributions
29 transferred to the System under Section 7-139.7, and the
30 amounts that would have been contributed had such
31 contributions been made at the rates applicable to State
32 policemen, plus (ii) interest thereon at the effective rate
33 for each year, compounded annually, from the date of service
34 to the date of payment.
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1 (i) The total amount of eligible creditable service
2 established by any person under subsections (g), (h), and
3 (j), (k), and (l) of this Section shall not exceed 12 years.
4 (j) Subject to the limitation in subsection (i), an
5 investigator for the Office of the State's Attorneys
6 Appellate Prosecutor or a controlled substance inspector may
7 elect to establish eligible creditable service for up to 10
8 years of his service as a policeman under Article 3 or a
9 sheriff's law enforcement employee under Article 7, by filing
10 a written election with the Board, accompanied by payment of
11 an amount to be determined by the Board, equal to (1) the
12 difference between the amount of employee and employer
13 contributions transferred to the System under Section 3-110.6
14 or 7-139.8, and the amounts that would have been contributed
15 had such contributions been made at the rates applicable to
16 State policemen, plus (2) interest thereon at the effective
17 rate for each year, compounded annually, from the date of
18 service to the date of payment.
19 (k) Subject to the limitation in subsection (i) of this
20 Section, an alternative formula employee may elect to
21 establish eligible creditable service for periods spent as a
22 full-time law enforcement officer or full-time corrections
23 officer employed by the federal government or by a state or
24 local government located outside of Illinois, for which
25 credit is not held in any other public employee pension fund
26 or retirement system. To obtain this credit, the applicant
27 must file a written application with the Board by March 31,
28 1998, accompanied by evidence of eligibility acceptable to
29 the Board and payment of an amount to be determined by the
30 Board, equal to (1) employee contributions for the credit
31 being established, based upon the applicant's salary on the
32 first day as an alternative formula employee after the
33 employment for which credit is being established and the
34 rates then applicable to alternative formula employees, plus
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1 (2) an amount determined by the Board to be the employer's
2 normal cost of the benefits accrued for the credit being
3 established, plus (3) regular interest on the amounts in
4 items (1) and (2) from the first day as an alternative
5 formula employee after the employment for which credit is
6 being established to the date of payment.
7 (l) Subject to the limitation in subsection (i), a
8 security employee of the Department of Corrections may elect,
9 not later than July 1, 1998, to establish eligible creditable
10 service for up to 10 years of his or her service as a
11 policeman under Article 3, by filing a written election with
12 the Board, accompanied by payment of an amount to be
13 determined by the Board, equal to (i) the difference between
14 the amount of employee and employer contributions transferred
15 to the System under Section 3-110.5, and the amounts that
16 would have been contributed had such contributions been made
17 at the rates applicable to security employees of the
18 Department of Corrections, plus (ii) interest thereon at the
19 effective rate for each year, compounded annually, from the
20 date of service to the date of payment.
21 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96;
22 89-507, eff. 7-1-97.)
23 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
24 Sec. 15-157. Employee Contributions.
25 (a) Each participating employee shall make contributions
26 towards the retirement annuity of each payment of earnings
27 applicable to employment under this system on and after the
28 date of becoming a participant as follows: Prior to
29 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
30 to August 31, 1955, 5%; from September 1, 1955 to August 31,
31 1969, 6%; from September 1, 1969, 6 1/2%. These
32 contributions are to be considered as normal contributions
33 for purposes of this Article.
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1 Each participant who is a police officer or firefighter
2 shall make normal contributions of 8% of each payment of
3 earnings applicable to employment as a police officer or
4 firefighter under this system on or after September 1, 1981,
5 unless he or she files with the board within 60 days after
6 the effective date of this amendatory Act of 1991 or 60 days
7 after the board receives notice that he or she is employed as
8 a police officer or firefighter, whichever is later, a
9 written notice waiving the retirement formula provided by
10 Rule 4 of Section 15-136. This waiver shall be irrevocable.
11 If a participant had met the conditions set forth in Section
12 15-132.1 prior to the effective date of this amendatory Act
13 of 1991 but failed to make the additional normal
14 contributions required by this paragraph, he or she may elect
15 to pay the additional contributions plus compound interest at
16 the effective rate. If such payment is received by the
17 board, the service shall be considered as police officer
18 service in calculating the retirement annuity under Rule 4 of
19 Section 15-136.
20 (b) Starting September 1, 1969, each participating
21 employee shall make additional contributions of 1/2 of 1% of
22 earnings to finance a portion of the cost of the annual
23 increases in retirement annuity provided under Section
24 15-136.
25 (c) Each participating employee shall make survivors
26 insurance contributions of 1% of earnings applicable under
27 this system on and after August 1, 1959. Contributions in
28 excess of $80 during any fiscal year beginning August 31,
29 1969 and in excess of $120 during any fiscal year thereafter
30 until September 1, 1971 shall be considered as additional
31 contributions for purposes of this Article.
32 (d) If the board by board rule so permits and subject to
33 such conditions and limitations as may be specified in its
34 rules, a participant may make other additional contributions
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1 of such percentage of earnings or amounts as the participant
2 shall elect in a written notice thereof received by the
3 board.
4 (e) That fraction of a participant's total accumulated
5 normal contributions, the numerator of which is equal to the
6 number of years of service in excess of that which is
7 required to qualify for the maximum retirement annuity, and
8 the denominator of which is equal to the total service of the
9 participant, shall be considered as accumulated additional
10 contributions. The determination of the applicable maximum
11 annuity and the adjustment in contributions required by this
12 provision shall be made as of the date of the participant's
13 retirement.
14 (f) Notwithstanding the foregoing, a participating
15 employee shall not be required to make contributions under
16 this Section after the date upon which continuance of such
17 contributions would otherwise cause his or her retirement
18 annuity to exceed the maximum retirement annuity as specified
19 in clause (1) of subsection (c) of Section 15-136.
20 (g) A participating employee may make contributions for
21 the purchase of service credit under this Article.
22 (Source: P.A. 86-272; 86-1488.)
23 (40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
24 Sec. 15-157.1. Pickup Pick up of employee contributions.
25 (a) Each employer shall pick up the employee
26 contributions required under subsections (a), (b), and (c) of
27 Section 15-157 for all earnings payments made on and after
28 January 1, 1981, and the contributions so picked up shall be
29 treated as employer contributions in determining tax
30 treatment under the United States Internal Revenue Code.
31 These contributions shall not be included as gross income of
32 the participant until such time as they are distributed or
33 made available. The employer shall pay these employee
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1 contributions from the same source of funds which is used in
2 paying earnings to the employee. The employer may pick up
3 these contributions by a reduction in the cash salary of the
4 participants, or by an offset against a future salary
5 increase, or by a combination of a reduction in salary and
6 offset against a future salary increase.
7 (b) Subject to the requirements of federal law, a
8 participating employee may elect to have the employer pick up
9 optional contributions that the participant has elected to
10 pay to the System under Section 15-157(g), and the
11 contributions so picked up shall be treated as employer
12 contributions for the purposes of determining federal tax
13 treatment under the federal Internal Revenue Code of 1986.
14 These contributions shall not be included as gross income of
15 the participant until such time as they are distributed or
16 made available. The employer shall pick up the contributions
17 by a reduction in the cash salary of the participant and
18 shall pay the contributions from the same source of funds
19 that is used to pay earnings to the participant. The
20 election to have optional contributions picked up is
21 irrevocable.
22 (Source: P.A. 83-1440.)
23 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
24 Sec. 16-127. Computation of creditable service.
25 (a) Each member shall receive regular credit for all
26 service as a teacher from the date membership begins, for
27 which satisfactory evidence is supplied and all contributions
28 have been paid.
29 (b) The following periods of service shall earn optional
30 credit and each member shall receive credit for all such
31 service for which satisfactory evidence is supplied and all
32 contributions have been paid as of the date specified:
33 (1) Prior service as a teacher.
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1 (2) Service in a capacity essentially similar or
2 equivalent to that of a teacher, in the public common
3 schools in school districts in this State not included
4 within the provisions of this System, or of any other
5 State, territory, dependency or possession of the United
6 States, or in schools operated by or under the auspices
7 of the United States, or under the auspices of any agency
8 or department of any other State, and service during any
9 period of professional speech correction or special
10 education experience for a public agency within this
11 State or any other State, territory, dependency or
12 possession of the United States, and service prior to
13 February 1, 1951 as a recreation worker for the Illinois
14 Department of Public Safety, for a period not exceeding
15 the lesser of 2/5 of the total creditable service of the
16 member or 10 years. The maximum service of 10 years
17 which is allowable under this paragraph shall be reduced
18 by the service credit which is validated by other
19 retirement systems under paragraph (i) of Section 15-113
20 and paragraph 1 of Section 17-133. Credit granted under
21 this paragraph may not be used in determination of a
22 retirement annuity or disability benefits unless the
23 member has at least 5 years of creditable service earned
24 subsequent to this employment with one or more of the
25 following systems: Teachers' Retirement System of the
26 State of Illinois, State Universities Retirement System,
27 and the Public School Teachers' Pension and Retirement
28 Fund of Chicago. Whenever such service credit exceeds
29 the maximum allowed for all purposes of this Article, the
30 first service rendered in point of time shall be
31 considered. The changes to this subdivision (b)(2) made
32 by Public Act 86-272 shall apply not only to persons who
33 on or after its effective date (August 23, 1989) are in
34 service as a teacher under the System, but also to
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1 persons whose status as such a teacher terminated prior
2 to such effective date, whether or not such person is an
3 annuitant on that date.
4 (3) Any periods immediately following teaching
5 service, under this System or under Article 17, (or
6 immediately following service prior to February 1, 1951
7 as a recreation worker for the Illinois Department of
8 Public Safety) spent in active service with the military
9 forces of the United States; periods spent in educational
10 programs that prepare for return to teaching sponsored by
11 the federal government following such active military
12 service; if a teacher returns to teaching service within
13 one calendar year after discharge or after the completion
14 of the educational program, a further period, not
15 exceeding one calendar year, between time spent in
16 military service or in such educational programs and the
17 return to employment as a teacher under this System; and
18 a period of up to 2 years of active military service not
19 immediately following employment as a teacher.
20 The changes to this Section and Section 16-128
21 relating to military service made by P.A. 87-794 shall
22 apply not only to persons who on or after its effective
23 date are in service as a teacher under the System, but
24 also to persons whose status as a teacher terminated
25 prior to that date, whether or not the person is an
26 annuitant on that date. In the case of an annuitant who
27 applies for credit allowable under this Section for a
28 period of military service that did not immediately
29 follow employment, and who has made the required
30 contributions for such credit, the annuity shall be
31 recalculated to include the additional service credit,
32 with the increase taking effect on the date the System
33 received written notification of the annuitant's intent
34 to purchase the credit, if payment of all the required
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1 contributions is made within 60 days of such notice, or
2 else on the first annuity payment date following the date
3 of payment of the required contributions. In calculating
4 the automatic annual increase for an annuity that has
5 been recalculated under this Section, the increase
6 attributable to the additional service allowable under
7 P.A. 87-794 shall be included in the calculation of
8 automatic annual increases accruing after the effective
9 date of the recalculation.
10 Credit for military service shall be determined as
11 follows: if entry occurs during the months of July,
12 August, or September and the member was a teacher at the
13 end of the immediately preceding school term, credit
14 shall be granted from July 1 of the year in which he or
15 she entered service; if entry occurs during the school
16 term and the teacher was in teaching service at the
17 beginning of the school term, credit shall be granted
18 from July 1 of such year. In all other cases where credit
19 for military service is allowed, credit shall be granted
20 from the date of entry into the service.
21 The total period of military service for which
22 credit is granted shall not exceed 5 years for any member
23 unless the service: (A) is validated before July 1,
24 1964, and (B) does not extend beyond July 1, 1963.
25 Credit for military service shall be granted under this
26 Section only if not more than 5 years of the military
27 service for which credit is granted under this Section is
28 used by the member to qualify for a military retirement
29 allotment from any branch of the armed forces of the
30 United States. The changes to this subdivision (b)(3)
31 made by Public Act 86-272 shall apply not only to persons
32 who on or after its effective date (August 23, 1989) are
33 in service as a teacher under the System, but also to
34 persons whose status as such a teacher terminated prior
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1 to such effective date, whether or not such person is an
2 annuitant on that date.
3 (4) Any periods served as a member of the General
4 Assembly.
5 (5)(i) Any periods for which a teacher, as defined
6 in Section 16-106, is granted a leave of absence,
7 provided he or she returns to teaching service creditable
8 under this System or the State Universities Retirement
9 System following the leave; (ii) periods during which a
10 teacher is involuntarily laid off from teaching, provided
11 he or she returns to teaching following the lay-off; and
12 (iii) periods prior to July 1, 1983 during which a
13 teacher ceased covered employment due to pregnancy,
14 provided that the teacher returned to teaching service
15 creditable under this System or the State Universities
16 Retirement System following the pregnancy and submits
17 evidence satisfactory to the Board documenting that the
18 employment ceased due to pregnancy; and (iv) periods
19 prior to July 1, 1983 during which a teacher ceased
20 covered employment for the purpose of adopting an infant
21 under 3 years of age or caring for a newly adopted infant
22 under 3 years of age, provided that the teacher returned
23 to teaching service creditable under this System or the
24 State Universities Retirement System following the
25 adoption and submits evidence satisfactory to the Board
26 documenting that the employment ceased for the purpose of
27 adopting an infant under 3 years of age or caring for a
28 newly adopted infant under 3 years of age. However,
29 total credit under this paragraph (5) may not exceed 3
30 years.
31 Any qualified member or annuitant may apply for
32 credit under item (iii) or (iv) of this paragraph (5)
33 without regard to whether service was terminated before
34 the effective date of this amendatory Act of 1997 1995.
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1 In the case of an annuitant who establishes credit under
2 item (iii) or (iv), the annuity shall be recalculated to
3 include the additional service credit. The increase in
4 annuity shall take effect on the date the System receives
5 written notification of the annuitant's intent to
6 purchase the credit, if the required evidence is
7 submitted and the required contribution paid within 60
8 days of that notification, otherwise on the first annuity
9 payment date following the System's receipt of the
10 required evidence and contribution. The increase in an
11 annuity recalculated under this provision shall be
12 included in the calculation of automatic annual increases
13 in the annuity accruing after the effective date of the
14 recalculation.
15 Optional credit may be purchased under this
16 subsection (b)(5) for periods during which a teacher has
17 been granted a leave of absence pursuant to Section 24-13
18 of the School Code. A teacher whose service under this
19 Article terminated prior to the effective date of P.A.
20 86-1488 shall be eligible to purchase such optional
21 credit. If a teacher who purchases this optional credit
22 is already receiving a retirement annuity under this
23 Article, the annuity shall be recalculated as if the
24 annuitant had applied for the leave of absence credit at
25 the time of retirement. The difference between the
26 entitled annuity and the actual annuity shall be credited
27 to the purchase of the optional credit. The remainder of
28 the purchase cost of the optional credit shall be paid on
29 or before April 1, 1992.
30 The change in this paragraph made by Public Act
31 86-273 shall be applicable to teachers who retire after
32 June 1, 1989, as well as to teachers who are in service
33 on that date.
34 (6) Any days of unused and uncompensated
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1 accumulated sick leave earned by a teacher. The service
2 credit granted under this paragraph shall be the ratio of
3 the number of unused and uncompensated accumulated sick
4 leave days to 170 days, subject to a maximum of one year
5 of service credit. Prior to the member's retirement,
6 each former employer shall certify to the System the
7 number of unused and uncompensated accumulated sick leave
8 days credited to the member at the time of termination of
9 service. The period of unused sick leave shall not be
10 considered in determining the effective date of
11 retirement. A member is not required to make
12 contributions in order to obtain service credit for
13 unused sick leave.
14 Credit for sick leave shall, at retirement, be
15 granted by the System for any retiring regional or
16 assistant regional superintendent of schools at the rate
17 of 6 days per year of creditable service or portion
18 thereof established while serving as such superintendent
19 or assistant superintendent.
20 (7) Periods prior to February 1, 1987 served as an
21 employee of the Illinois Mathematics and Science Academy
22 for which credit has not been terminated under Section
23 15-113.9 of this Code.
24 (8) Service as a substitute teacher for work
25 performed prior to July 1, 1990.
26 (9) Service as a part-time teacher for work
27 performed prior to July 1, 1990.
28 (10) Up to 2 years of employment with Southern
29 Illinois University - Carbondale from September 1, 1959
30 to August 31, 1961, or with Governors State University
31 from September 1, 1972 to August 31, 1974, for which the
32 teacher has no credit under Article 15. To receive
33 credit under this item (10), a teacher must apply in
34 writing to the Board and pay the required contributions
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1 before May 1, 1993 and have at least 12 years of service
2 credit under this Article.
3 (c) The service credits specified in this Section shall
4 be granted only if: (1) such service credits are not used
5 for credit in any other statutory tax-supported public
6 employee retirement system other than the federal Social
7 Security program; and (2) the member makes the required
8 contributions as specified in Section 16-128. The service
9 credit shall be effective as of the date the required
10 contributions are completed.
11 Any service credits granted under this Section shall
12 terminate upon cessation of membership for any cause.
13 Credit may not be granted under this Section covering any
14 period for which an age retirement or disability retirement
15 allowance has been paid.
16 (Source: P.A. 88-45; 89-430, eff. 12-15-95.)
17 (40 ILCS 5/16-141) (from Ch. 108 1/2, par. 16-141)
18 Sec. 16-141. Survivors' benefits - death in service.
19 (a) Upon the death of a member in service occurring on
20 or after July 1, 1990, a beneficiary designated by the member
21 shall be entitled to receive, in a single sum, for each
22 completed year of service up to a maximum of 6 years, an
23 amount equal to 1/6 of the member's highest annual salary
24 rate within the last 4 years of service. If death occurs
25 prior to completion of the first year of service, the
26 beneficiary shall be entitled to receive, in a single sum,
27 an amount equal to 1/6 of the most recent annual salary rate.
28 If no beneficiary is designated by the member or if no
29 designated beneficiary survives the member, the single sum
30 benefit under this paragraph shall be paid to the eligible
31 dependent beneficiary or to the trust established for such
32 eligible dependent beneficiary, as determined under paragraph
33 (3) of Section 16-140, or, if there is no dependent
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1 beneficiary, to the decedent's estate upon receipt of proper
2 proof of death.
3 (b) If the deceased member had at least 1.5 years of
4 creditable service, had rendered at least 60 days of
5 creditable service within the 18 months immediately preceding
6 death and had not designated a non-dependent beneficiary who
7 survives, a dependent beneficiary may elect to receive,
8 instead of the benefit under subsection (a) of this Section,
9 a single sum payment of $1,000, divided by the number of such
10 beneficiaries, together with a survivor's benefit as
11 specified under the following paragraphs:
12 (1) A surviving spouse, if no eligible children
13 exist, shall receive a survivor's benefit of 30% of
14 average salary, beginning at age 50 or upon the date of
15 the member's death, whichever is later, except that if
16 the member's death occurred before July 1, 1973 and the
17 surviving spouse is less than age 55 on the effective
18 date of this amendatory Act of 1997, the survivor's
19 benefit shall begin on the effective date of this
20 amendatory Act of 1997 or upon the surviving spouse's
21 attainment of age 50, whichever occurs later at age 55.
22 (2) A surviving spouse, regardless of age, who is
23 providing for the support of the deceased member's
24 eligible child, shall receive a survivor's benefit of 30%
25 of average salary, plus the sum of (A) 20% of average
26 salary on account of each dependent child, and (B) 10% of
27 average salary divided by the number of children entitled
28 to this benefit.
29 (3) Each eligible child, if there is no eligible
30 surviving spouse, shall receive upon the death of the
31 member a survivor's benefit equal to the sum of: (A) 20%
32 of average salary, and (B) 10% of average salary divided
33 by the number of children entitled to this benefit.
34 (4) A dependent parent shall receive upon
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1 attainment of age 55 or the date of the member's death,
2 whichever is later, a survivor's benefit of 30% of
3 average salary, unless dependency is terminated by
4 remarriage or otherwise.
5 (c) No election under this Section may be made by a
6 dependent beneficiary if a non-dependent beneficiary
7 designated by the member survives such member.
8 (d) Notwithstanding the other provisions of this
9 Section, if the member is in receipt of a benefit at the time
10 of his or her death, a dependent beneficiary shall receive a
11 survivor benefit beginning the first of the month following
12 the death of the member.
13 (e) In cases where the changes to this Section or
14 Section 16-142 made by Public Act 87-1265 this amendatory Act
15 of 1993 increase the amount of a single-sum death benefit
16 that has already been paid by the System, the System shall
17 pay to the beneficiary the amount of the increase provided by
18 this amendatory Act.
19 (Source: P.A. 86-273; 87-1265.)
20 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
21 Sec. 17-106. Contributor, member or teacher.
22 "Contributor", "member" or "teacher": All members of the
23 teaching force of the city, including principals, assistant
24 principals, the general superintendent of schools, deputy
25 superintendents of schools, associate superintendents of
26 schools, assistant and district superintendents of schools,
27 members of the Board of Examiners, all other persons whose
28 employment requires a teaching certificate issued by the
29 Board of Examiners, any educational, administrative,
30 professional, or other staff employed in a charter school
31 operating in compliance with the Charter Schools Law who is
32 certified under the law governing the certification of
33 teachers, and employees of the Board of Trustees, but
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1 excluding persons contributing concurrently to any other
2 public employee pension system in Illinois or receiving
3 retirement pensions under another Article of this Code
4 (unless the person's eligibility to participate in that other
5 pension system arises from the holding of an elective public
6 office, and the person has held that public office for at
7 least 10 years), persons employed on an hourly basis, and
8 persons receiving pensions from the fund who are employed
9 temporarily by the Board of Education for 100 75 days or less
10 in any school year and not on an annual basis.
11 In the case of a person who has been making contributions
12 and otherwise participating in this Fund prior to the
13 effective date of this amendatory Act of 1991, and whose
14 right to participate in the Fund is established or confirmed
15 by this amendatory Act, such prior participation in the Fund,
16 including all contributions previously made and service
17 credits previously earned by the person, are hereby
18 validated.
19 (40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115)
20 Sec. 17-115. Eligibility for service retirement pension.
21 (a) The Board shall find a contributor eligible for
22 service retirement pension when he has:
23 (1) 1. Left the employment of the Board of
24 Education or the board after completing 5 or more years
25 of service, or has been retired compulsorily as a regular
26 teacher because of age.
27 (2) 2. Contributed to the fund the total sums
28 provided in this Article.
29 (3) 3. Contributed as a member of the teaching
30 force in the public schools of the City or to the State
31 Universities Retirement System or to the Teachers'
32 Retirement System of the State of Illinois during the
33 last 5 years of his term of service.
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1 (4) 4. Filed a written application for pension.
2 (b) In computing the years of service for which annuity
3 is granted, the following conditions shall apply:
4 (1) 1. No more than 10 years of teaching service in
5 public schools of the several states or in schools
6 operated by or under the auspices of the United States
7 shall be allowed. This maximum shall be reduced by the
8 service credit which is validated under paragraph (i) of
9 Section 15-113 and paragraph (3) of Section 16-127 of
10 this Code. Three-fifths of the term of service for which
11 an annuity is granted shall have been rendered in the
12 public schools of the city. No portion of any such
13 service shall be included in the total period of service
14 for which a pension is payable or paid by some other
15 public retirement system; provided that this shall not
16 apply to any benefit payable only after the teacher's
17 death or to any compensation or annuity paid by the Board
18 of Education after retirement from active service.
19 (2) 2. Up to No more than 5 years of military
20 active service, if preceded by service as a teacher under
21 this fund or under Article 16, shall be included in the
22 total period of service even though it can otherwise be
23 used in the computation of a pension or other benefit
24 provided for service in any branch of the armed forces of
25 the United States.
26 (Source: P.A. 83-803.)
27 (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
28 Sec. 17-116.1. Early retirement without discount.
29 (a) A member retiring after June 1, 1980 and before June
30 30, 1995 and within 6 months of the last day of teaching for
31 which retirement contributions were required, may elect at
32 the time of application to make a one time employee
33 contribution to the system and thereby avoid the early
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1 retirement reduction in allowance specified in paragraph (4)
2 of Section 17-116 of this Article. The exercise of the
3 election shall obligate the employer to also make a one time
4 non-refundable contribution to the fund.
5 (b) Subject to authorization by the employer as provided
6 in subsection (c), a member retiring on or after June 30,
7 1995 and on or before June 30, 2000 and within 6 months of
8 the last day of teaching for which retirement contributions
9 were required may elect at the time of application to make a
10 one-time employee contribution to the Fund and thereby avoid
11 the early retirement reduction in allowance specified in
12 paragraph (4) of Section 17-116. The exercise of the
13 election shall obligate the employer to also make a one-time
14 nonrefundable contribution to the Fund.
15 (c) The benefits provided in subsection (b) are
16 available only to members who retire, during a specified
17 period, from employment with an employer that has adopted and
18 filed with the board of the Fund a resolution expressly
19 providing for the creation of an early retirement without
20 discount program under this Section for that period.
21 The employer has the full discretion and authority to
22 determine whether an early retirement without discount
23 program is in its best interest and to provide such a program
24 to its eligible employees in accordance with this Section.
25 The employer may decide to authorize such a program for one
26 or more of the following periods: for the period beginning
27 July 1, 1997 and ending June 30, 1998, in which case the
28 resolution must be adopted by January 1, 1998; for the period
29 beginning July 1, 1998 and ending June 30, 1999, in which
30 case the resolution must be adopted by March 31, 1998; and
31 for the period beginning July 1, 1999 and ending June 30,
32 2000, in which case the resolution must be adopted by March
33 31, 1999. The resolution must be filed with the board of the
34 Fund within 10 days after it is adopted. A single resolution
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1 may authorize an early retirement without discount program as
2 provided in this Section for more than one period.
3 Notwithstanding Section 17-157, the employer shall also
4 have full discretion and authority to determine whether to
5 allow its employees who withdrew from service on or after
6 June 30, 1995 and before the effective date of this
7 amendatory Act of 1997 to participate in an early retirement
8 without discount program under subsection (b). An early
9 retirement without discount program for those who withdrew
10 from service on or after June 30, 1995 and before the
11 effective date of this amendatory Act of 1997 may be
12 authorized only by a resolution of the employer that is
13 adopted by January 1, 1998 and filed with the board of the
14 Fund within 10 days after its adoption. If such a resolution
15 is duly adopted and filed, a person who (i) withdrew from
16 service with the employer on or after June 30, 1995 and
17 before the effective date of this amendatory Act of 1997,
18 (ii) qualifies for early retirement without discount under
19 subsection (b), (iii) applies to the Fund within 90 days
20 after the authorizing resolution is adopted, and (iv) pays
21 the required employee contribution shall have his or her
22 retirement pension recalculated in accordance with subsection
23 (b). The resulting increase shall be effective retroactively
24 to the starting date of the retirement pension.
25 (d) The one-time employee contribution shall be equal to
26 7% of the retiring member's highest full-time annual salary
27 rate used in the determination of the average salary rate for
28 retirement pension, or if not full-time then the full-time
29 equivalent, multiplied by (1) the number of years the teacher
30 is under age 60, or (2) the number of years the employee's
31 creditable service is less than 35 years, whichever is less.
32 The employer contribution shall be 20% of such salary
33 multiplied by such number of years.
34 (e) Upon receipt of the application and election, the
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1 board shall determine the one time employee and employer
2 contributions. The provisions of this Section shall not be
3 applicable until all the above outlined contributions have
4 been received by the fund; however, the date such
5 contributions are received shall not be considered in
6 determining the effective date of retirement.
7 (f) The number of employees who may retire under this
8 Section in any year may be limited at the option of the
9 employer to a specified percentage of those eligible, not
10 lower than 30%, with the right to participate to be allocated
11 among those applying on the basis of seniority in the service
12 of the employer.
13 (Source: P.A. 86-272.)
14 (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
15 Sec. 17-117. Disability retirement pension.
16 (a) The conditions prescribed in items 1 and 2 in
17 Section 17-116 for computing service retirement pensions
18 shall apply in the computation of disability retirement
19 pensions.
20 (1) 1. Each teacher retired or retiring after 10
21 years of service and with less than 20 years of service
22 because of permanent disability not incurred as a
23 proximate result of the performance of duty shall receive
24 a disability retirement pension equal to 1 2/3% of
25 average salary for each year of service.
26 (2) 2. If the total service is 20 years and less
27 than 25 years and the teacher's age is under 55, the
28 disability retirement pension shall equal a service
29 retirement pension discounted 1/2 of 1% for each month
30 the age of the contributor is less than 55 down to a
31 minimum age of 50 years, provided the disability
32 retirement pension so computed shall not be less than the
33 amount payable under paragraph 1.
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1 (3) 3. If the total service is 20 years or more and
2 the teacher has attained age 55, and is under age 60, a
3 disability retirement pension shall equal a service
4 retirement pension without discount.
5 (4) 4. If the total service is 25 years or more
6 regardless of age, a disability pension shall equal a
7 service retirement pension without discount.
8 (5) 5. If the total service is 20 years or more and
9 the teacher is age 60 or over, a service retirement
10 pension shall be payable.
11 (b) For disability retirement pensions, the following
12 further conditions shall apply:
13 (1) 1. Written application shall be submitted
14 within 3 years from the date of separation.
15 (2) 2. The applicant shall submit to examination by
16 physicians appointed by the board within one year from
17 the date of their appointment.
18 (3) 3. Two physicians, appointed by the board,
19 shall declare the applicant to be suffering from a
20 disability which wholly and presumably permanently
21 incapacitates him for teaching or for service as an
22 employee of the board. In the event of disagreement by
23 the physicians, a third physician, appointed by the
24 board, shall declare the applicant wholly and presumably
25 permanently incapacitated.
26 (c) Disability retirement pensions shall begin on the
27 effective date of resignation or the day following the close
28 of the payroll period for which credit was validated,
29 whichever is later.
30 (Source: P.A. 86-1488.)
31 (40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)
32 Sec. 17-117.1. Duty disability. A teacher who becomes
33 wholly and presumably permanently totally incapacitated for
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1 duty while under age 65 as the proximate result of injuries
2 sustained or a hazardous condition encountered in the
3 performance and within the scope of his duties, if such
4 injury or hazard was not the result of his own negligence,
5 shall be entitled to a duty disability benefit, provided:
6 (1) application for the benefit is made to the
7 Board not more than 6 months after a final settlement or
8 an award from the Industrial Commission or within 6
9 months of the manifestation of an injury or illness that
10 can be traced directly to an injury or illness for which
11 a claim was filed with the Industrial Commission the
12 occurrence of an injury disability or 6 months after the
13 occurrence of disablement if an occupational disease;
14 (2) certification is received from 2 or more
15 physicians designated by the board that the teacher is
16 physically incapacitated for teaching service; and
17 (3) the teacher provides the Board with a copy of
18 the notice of the occurrence that was filed with the
19 Board of Education within the time provided by law
20 resulting in disability is filed with the board within 90
21 days of the date thereof.
22 The benefit shall be payable during disability and shall
23 be 75% of the salary in effect at date of disability, payable
24 until the teacher's attainment of age 65. At such time if
25 disability still exists, the teacher shall become entitled to
26 a service retirement pension. Creditable service shall accrue
27 during the period the disability benefit is payable.
28 Before any action is taken by the board on an application
29 for a duty disability benefit, the teacher shall file a claim
30 with the Industrial Commission to establish that the
31 disability was incurred while the teacher was acting within
32 the scope of and in the course of his duties under the terms
33 of the Workers' Compensation or Occupational Diseases Acts,
34 whichever may be applicable. The benefit shall be payable
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1 after a finding by the Commission that the claim was
2 compensable under either of the aforesaid Acts; but if such
3 finding is appealed the benefit shall be payable only upon
4 affirmance of the Commission's finding. After the teacher has
5 made timely application for a duty disability benefit
6 supported by the certificate of two or more physicians, he
7 shall be entitled to a disability retirement pension provided
8 in Section 17-117 of this Act until such time as the
9 Industrial Commission award finding that his disability is
10 duty-connected as provided in this Section becomes final.
11 Any amounts provided for the teacher under such Acts
12 shall be applied as an offset to the duty disability benefit
13 payable hereunder in such manner as may be prescribed by the
14 rules of the board.
15 (Source: P.A. 81-992.)
16 (40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120)
17 Sec. 17-120. Reversionary pension. Any contributor, at
18 any time prior to retirement on a service retirement pension,
19 may exercise an option of taking a lesser amount of service
20 retirement pension and providing with the remainder of his
21 equity, determined on an actuarial equivalent basis, a
22 reversionary pension benefit for any person named in a
23 written designation filed by the contributor with the board,
24 provided that the pension resulting from such election is not
25 less than $40 per month, or more than the reduced pension
26 payable after the exercise of the option. If the reduced
27 pension to the retired teacher is less than that provided for
28 a beneficiary, whether or not the aforesaid minimum amount is
29 payable, the election shall be void.
30 The pension to a beneficiary shall begin on the first day
31 of the month next following the month in which the retired
32 teacher dies.
33 If the beneficiary survives the date of retirement of the
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1 teacher, but does not survive the retired teacher, no
2 reversionary pensions shall be payable, and no change shall
3 be made in the rate of pension granted previously to the
4 retired teacher if the reversionary annuity was elected prior
5 to January 1, 1984. If the reversionary annuity was elected
6 on or after January 1, 1984 and the beneficiary survives the
7 date of retirement of the teacher, but does not survive the
8 retired teacher, the teacher's service pension shall be
9 restored to the full service pension amount beginning on the
10 first day of the month next following the month in which the
11 beneficiary dies or on the effective date of this amendatory
12 Act of 1997, whichever occurs later, provided that the Board
13 adopts actuarial factors that take into account the
14 additional cost involved.
15 If the beneficiary dies after the such election but
16 before the retirement of the teacher, the election shall be
17 void. No change shall be permitted in the written
18 designation filed with the board.
19 In the case of a reversionary annuity elected on or after
20 January 1, 1984, no reversionary annuity shall be paid if the
21 teacher dies before the expiration of 730 days from the date
22 that a written designation was filed with the board, even
23 though the teacher was receiving a reduced annuity.
24 Sections 1-103.1 and 17-157 do not apply to the changes
25 made to this Section by this amendatory Act of 1997.
26 (Source: P.A. 83-812.)
27 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
28 Sec. 17-122. Survivor's and children's pensions - Amount.
29 Upon the death of a teacher who has completed at least 1 1/2
30 years of contributing service with either this Fund or the
31 State Universities Retirement System or the Teachers'
32 Retirement System of the State of Illinois, provided his
33 death occurred while (a) in active service covered by the
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1 fund or during his first 18 months of continuous employment
2 without a break in service under any other participating
3 system as defined in the Illinois Retirement Systems
4 Reciprocal Act except the State Universities Retirement
5 System and the Teachers' Retirement System of the State of
6 Illinois, (b) on a creditable leave of absence, (c) on a
7 noncreditable leave of absence of no more than one year, or
8 (d) a pension was deferred or pending provided the teacher
9 had at least 10 years of validated service credit, or upon
10 the death of a pensioner otherwise qualified for such
11 benefit, the surviving spouse and unmarried minor children of
12 the deceased teacher under age 18 shall be entitled to
13 pensions, under the conditions stated hereinafter. Such
14 survivor's and children's pensions shall be based on the
15 average of the 4 highest consecutive years of salary in the
16 last 10 years of service or on the average salary for total
17 service, if total service has been less than 4 years,
18 according to the following percentages:
19 30% of average salary or 50% of the retirement pension
20 earned by the teacher, whichever is larger, subject to the
21 prescribed maximum monthly payment, for a surviving spouse
22 alone on attainment of age 50;
23 60% of average salary for a surviving spouse and
24 eligible minor children of the deceased teacher.
25 If no eligible spouse survives, or the surviving spouse
26 remarries, or the parent of the children of the deceased
27 member is otherwise ineligible for a survivor's pension, a
28 children's pension for eligible minor children under age 18
29 shall be paid to their parent or legal guardian for their
30 benefit according to the following percentages:
31 30% of average salary for one child;
32 60% of average salary for 2 or more children.
33 On January 1, 1981, any survivor or child who was
34 receiving a survivor's or children's pension on or before
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1 January 1, 1971, shall have his survivor's or children's
2 pension then being paid increased by 1% for each full year
3 which has elapsed from the date the pension began. On January
4 1, 1982, any survivor or child whose pension began after
5 January 1, 1971, but before January 1, 1981, shall have his
6 survivor's or children's pension then being paid increased 1%
7 for each full year which has elapsed from the date the
8 pension began. On January 1, 1987, any survivor or child
9 whose pension began on or before January 1, 1977, shall have
10 the monthly survivor's or children's pension increased by $1
11 for each full year which has elapsed since the pension began.
12 Beginning January 1, 1990, every survivor's and
13 children's pension shall be increased (1) on each January 1
14 occurring on or after the commencement of the pension if the
15 deceased teacher died while receiving a retirement pension,
16 or (2) in other cases, on each January 1 occurring on or
17 after the first anniversary of the commencement of the
18 pension, by an amount equal to 3% of the current amount of
19 the pension, including all increases previously granted under
20 this Article, notwithstanding Section 17-157. Such increases
21 shall apply without regard to whether the deceased teacher
22 was in service on or after the effective date of this
23 amendatory Act of 1991, but shall not accrue for any period
24 prior to January 1, 1990.
25 Subject to the minimum established below, the maximum
26 amount of pension for a surviving spouse alone or one minor
27 child shall be $400 per month, and the maximum combined
28 pensions for a surviving spouse and children of the deceased
29 teacher shall be $600 per month, with individual pensions
30 adjusted for all beneficiaries pro rata to conform with this
31 limitation. If proration is unnecessary the minimum
32 survivor's and children's pensions shall be $40 per month.
33 The minimum total survivor's and children's pension payable
34 upon the death of a contributor or annuitant which occurs
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1 after December 31, 1986, shall be 50% of the earned
2 retirement pension of such contributor or annuitant,
3 calculated without early retirement discount in the case of
4 death in service.
5 On death after retirement, the total survivor's and
6 children's pensions shall not exceed the monthly retirement
7 or disability pension paid to the deceased retirant.
8 Survivor's and children's benefits described in this Section
9 shall apply to all service and disability pensioners eligible
10 for a pension as of July 1, 1981.
11 (Source: P.A. 86-273; 86-1488.)
12 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
13 Sec. 17-134. Contributions for leaves of absence;
14 military service; computing service. In computing service
15 for pension purposes the following periods of service shall
16 stand in lieu of a like number of years of teaching service
17 upon payment therefor in the manner hereinafter provided: (a)
18 time spent on sabbatical leaves of absence, sick leaves or
19 maternity or paternity leaves; (b) service with teacher or
20 labor organizations based upon special leaves of absence
21 therefor granted by the Board of Education; (c) a maximum of
22 5 years spent in the military service of the United States,
23 of which up to 2 years may have been served outside the
24 pension period; (d) unused sick days at termination of
25 service to a maximum of 244 days; (e) time lost due to layoff
26 and curtailment of the school term from June 6 through June
27 21, 1976; and (f) time spent after June 30, 1982 as a member
28 of the Board of Education, if required to resign from an
29 administrative or teaching position in order to qualify as a
30 member of the Board of Education.
31 (1) 1. For time spent on or after September 6, 1948
32 on sabbatical leaves of absence or sick leaves, for which
33 salaries are paid, the Board of Education shall make
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1 payroll deductions at the applicable rates in effect
2 during such periods.
3 (2) 2. For time spent on sabbatical or sick leaves
4 commencing on or after September 1, 1961, and for time
5 spent on maternity or paternity leaves, for which no
6 salaries are paid, teachers desiring credit therefor
7 shall pay the required contributions at the rates in
8 effect during such periods as though they were in
9 teaching service. If the Board of Education pays salary
10 for vacations which occur during a teacher's sick leave
11 or maternity or paternity leave without salary, vacation
12 pay for which the teacher would have qualified while in
13 active service shall be considered part of the teacher's
14 total salary for pension purposes. No more than 12 months
15 of sick leave or maternity or paternity leave credit may
16 be allowed any person during the entire term of service.
17 Sabbatical leave credit shall be limited to the time the
18 person on leave without salary under Board of Education
19 rules is allowed to engage in an activity for which he
20 receives salary or compensation.
21 (3) 3. For time spent prior to September 6, 1948,
22 on sabbatical leaves of absence or sick leaves for which
23 salaries were paid, teachers desiring service credit
24 therefor shall pay the required contributions at the
25 maximum applicable rates in effect during such periods.
26 (4) 4. For service with teacher or labor
27 organizations authorized by special leaves of absence,
28 for which no payroll deductions are made by the Board of
29 Education, teachers desiring service credit therefor
30 shall contribute to the fund upon the basis of the actual
31 salary received from such organizations at the percentage
32 rates in effect during such periods for certified
33 positions with the Board of Education. To the extent the
34 actual salary exceeds the regular salary, which shall be
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1 defined as the salary rate, as calculated by the board of
2 trustees, in effect for the teacher's regular position in
3 teaching service on September 1, 1983 or on the effective
4 date of the leave with the organization, whichever is
5 later, the organization shall pay to the fund the
6 employer's normal cost as set by the board of trustees on
7 the increment.
8 (5) 5. For time spent in the military service,
9 teachers entitled to and desiring credit therefor shall
10 contribute the amount required for each year of service
11 or fraction thereof at the rates in force (a) at the date
12 of appointment, or (b) on return to teaching service as a
13 regularly certified teacher, as the case may be; provided
14 such rates shall not be less than $450 per year of
15 service. These conditions shall apply unless the Board
16 of Education elects to and does pay into the fund the
17 amount which would have been due from such person had he
18 been employed as a teacher during such time. In the case
19 of credit for military service not during the pension
20 period, the teacher must also pay to the Fund an amount
21 determined by the board to be equal to the employer's
22 normal cost of the benefits accrued from such service,
23 plus interest thereon at 5% per year, compounded
24 annually, from the date of appointment conclusion of the
25 military service to the date of payment.
26 The changes to this Section made by Public Act
27 87-795 this amendatory Act of 1991 shall apply not only
28 to persons who on or after its effective date are in
29 service under the Fund, but also to persons whose status
30 as a teacher terminated prior to that date, whether or
31 not the person is an annuitant on that date. In the case
32 of an annuitant who applies for credit allowable under
33 this Section for a period of military service that did
34 not immediately follow employment, and who has made the
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1 required contributions for such credit, the annuity shall
2 be recalculated to include the additional service credit,
3 with the increase taking effect on the date the Fund
4 received written notification of the annuitant's intent
5 to purchase the credit, if payment of all the required
6 contributions is made within 60 days of such notice, or
7 else on the first annuity payment date following the date
8 of payment of the required contributions. In calculating
9 the automatic annual increase for an annuity that has
10 been recalculated under this Section, the increase
11 attributable to the additional service allowable under
12 this amendatory Act of 1991 shall be included in the
13 calculation of automatic annual increases accruing after
14 the effective date of the recalculation.
15 The total credit for military service shall not
16 exceed 5 years, except that any teacher who on July 1,
17 1963, had validated credit for more than 5 years of
18 military service shall be entitled to the total amount of
19 such credit.
20 (6) 6. A maximum of 244 unused sick days credited
21 to his account by the Board of Education on the date of
22 termination of employment. Members, upon verification of
23 unused sick days, may add this service time to total
24 creditable service.
25 (7) 7. In all cases where time spent on leave is
26 creditable and no payroll deductions therefor are made by
27 the Board of Education, persons desiring service credit
28 shall make the required contributions directly to the
29 fund.
30 (8) 8. For time lost without pay due to layoff and
31 curtailment of the school term from June 6 through June
32 21, 1976, as provided in item (e) of the first paragraph
33 of this Section, persons who were contributors on the
34 days immediately preceding such layoff shall receive
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1 credit upon paying to the Fund a contribution based on
2 the rates of compensation and employee contributions in
3 effect at the time of such layoff, together with an
4 additional amount equal to 12.2% of the compensation
5 computed for such period of layoff, plus interest on the
6 entire amount at 5% per annum from January 1, 1978 to the
7 date of payment. If such contribution is paid, salary
8 for pension purposes for any year in which such a layoff
9 occurred shall include the compensation recognized for
10 purposes of computing that contribution.
11 (9) 9. For time spent after June 30, 1982, as a
12 nonsalaried member of the Board of Education, if required
13 to resign from an administrative or teaching position in
14 order to qualify as a member of the Board of Education,
15 an administrator or teacher desiring credit therefor
16 shall pay the required contributions at the rates and
17 salaries in effect during such periods as though the
18 member were in service.
19 Effective September 1, 1974, the interest charged for
20 validation of service described in paragraphs (2) through (5)
21 sub-paragraphs 2 through 5 of this Section shall be
22 compounded annually at a rate of 5% commencing one year after
23 the termination of the leave, or return to service.
24 (Source: P.A. 86-272; 86-1488; 87-794.)
25 (40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146)
26 Sec. 17-146. To make investments. To invest the moneys
27 of the fund, subject to the requirements and restrictions set
28 forth in this Article and in Sections 1-109, 1-109.1,
29 1-109.2, 1-110, 1-111, 1-114 and 1-115. The total book value
30 of all stocks and convertible debt owned by the fund shall
31 not exceed 50% of the aggregate book value of all investments
32 of the fund, calculated on the basis of amortized cost.
33 No bank or savings and loan association shall receive
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1 investment funds as permitted by this Section, unless it has
2 complied with the requirements established pursuant to
3 Section 6 of the Public Funds Investment Act. Those
4 requirements shall be applicable only at the time of
5 investment and shall not require the liquidation of any
6 investment at any time.
7 The board shall have the authority to enter into any
8 agreements and to execute any documents that it determines to
9 be necessary to complete any investment transaction.
10 All investments shall be clearly held and accounted for
11 to indicate ownership by the fund. The board may direct the
12 registration of securities or the holding of interests in
13 real property in the name of the fund or in the name of a
14 nominee created for the express purpose of registering
15 securities or holding interests in real property by a
16 national or state bank or trust company authorized to conduct
17 a trust business in the State of Illinois. The board may
18 hold title to interests in real property in the name of the
19 fund or in the name of a title holding corporation created
20 for the express purpose of holding title to interests in real
21 property.
22 Investments shall be carried at cost or at a book value
23 determined in accordance with generally accepted accounting
24 principles and accounting procedures approved by the board.
25 No adjustments shall be made in investment carrying values
26 for ordinary current market price fluctuations, but reserves
27 may be provided to account for possible losses or unrealized
28 gains.
29 The book value of investments held by the fund in one or
30 more commingled investment accounts shall be determined in
31 accordance with generally accepted accounting principles the
32 cost of its units of participation in those commingled
33 account or accounts.
34 The board of trustees of any fund established under this
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1 Article may not transfer its investment authority, nor
2 transfer the assets of the fund to any other person or entity
3 for the purpose of consolidating or merging its assets and
4 management with any other pension fund or public investment
5 authority, unless the board resolution authorizing such
6 transfer is submitted for approval to the contributors and
7 pensioners of the fund at elections held not less than 30
8 days after the adoption of such resolution by the board, and
9 such resolution is approved by a majority of the votes cast
10 on the question in both the contributors election and the
11 pensioners election. The election procedures and
12 qualifications governing the election of trustees shall
13 govern the submission of resolutions for approval under this
14 paragraph, insofar as they may be made applicable.
15 (Source: P.A. 89-636, eff. 8-9-96.)
16 (40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1)
17 Sec. 17-146.1. Participation in commingled investment
18 funds; transfer of investment functions and securities.
19 (a) The retirement board may invest in any commingled
20 investment fund or funds established and maintained by the
21 Illinois State Board of Investment under the provisions of
22 Article 22A of this Code. The book value of all commingled
23 equity participations plus the book value of other stock
24 investments owned by this system shall not exceed the maximum
25 permissible percentage rate for equity investments prescribed
26 in Section 17-146. All commingled fund participations shall
27 be subject to the law governing the Illinois State Board of
28 Investment and the rules, policies and directives of that
29 Board.
30 (b) The retirement board may, by resolution duly adopted
31 by a majority vote of its membership, transfer to the
32 Illinois State Board of Investment created by Article 22A of
33 this Code, for management and administration, all investments
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1 owned by the Fund of every kind and character. Upon
2 completion of such transfer, the authority of the retirement
3 board to make investments shall terminate. Thereafter, all
4 investments of the reserves of the Fund shall be made by the
5 Illinois State Board of Investment in accordance with the
6 provisions of Article 22A of this Code.
7 Such transfer shall be made not later than the first day
8 of the fourth month next following the date of such
9 resolution. Before such transfer an audit of such investments
10 shall be completed by a certified public accountant selected
11 by the Illinois State Board of Investment and approved by the
12 Auditor General of the State of Illinois. The expense of such
13 audit shall be defrayed by the retirement board.
14 (Source: P. A. 78-645.)
15 (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
16 Sec. 17-149. Cancellation of pensions.
17 If any person receiving a service or disability
18 retirement pension from the fund is re-employed as a teacher
19 by the Board of Education, the pension shall be cancelled on
20 the date the re-employment begins, or on the first day of a
21 payroll period for which service credit was validated,
22 whichever is earlier. However, beginning August 23, 1989,
23 the pension shall not be cancelled in case of a service
24 retirement pensioner who is temporarily re-employed for not
25 more than 100 75 days during any school year or on an hourly
26 basis and is not a contributor, provided the pensioner does
27 not receive salary in any school year of an amount more than
28 that payable to a substitute teacher for 100 75 days'
29 employment. A service retirement pensioner who is
30 temporarily re-employed for not more than 100 days during any
31 school year or on an hourly basis shall be entitled, at the
32 end of the school year, to a refund of any contributions made
33 to the fund during that school year.
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1 If the pensioner does receive salary from the Board of
2 Education in any school year for more than 100 75 days'
3 employment and then is reinstated as a contributor to the
4 fund, the pensioner shall be deemed to have returned to
5 service on the first day of employment as a
6 pensioner-substitute. The pensioner shall reimburse the fund
7 for pension payments received after the return to service and
8 shall pay to the fund the participant's contributions
9 prescribed in Section 17-130 of this Article.
10 If the date of re-employment occurs within 5 school
11 months after the date of previous retirement, exclusive of
12 any vacation period, the member shall be deemed to have been
13 out of service only temporarily and not permanently retired.
14 Such person shall be entitled to pension payments for the
15 time he could have been employed as a teacher and received
16 salary, but shall not be entitled to pension for or during
17 the summer vacation prior to his return to service.
18 When the member again retires on pension, the time of
19 service and the money contributed by him during re-employment
20 shall be added to the time and money previously credited.
21 Such person must acquire 3 consecutive years of additional
22 contributing service before he may retire again on a pension
23 at a rate and under conditions other than those in force or
24 attained at the time of his previous retirement.
25 Notwithstanding Sections 1-103.1 and 17-157, the changes
26 to this Section made by this amendatory Act of 1997 shall
27 apply without regard to whether termination of service
28 occurred before the effective date of this amendatory Act and
29 shall apply retroactively to August 23, 1989.
30 (Source: P.A. 76-742.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.21 as follows:
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1 (30 ILCS 805/8.21 new)
2 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1997.
6 Section 95. No acceleration or delay. Where this Act
7 makes changes in a statute that is represented in this Act by
8 text that is not yet or no longer in effect (for example, a
9 Section represented by multiple versions), the use of that
10 text does not accelerate or delay the taking effect of (i)
11 the changes made by this Act or (ii) provisions derived from
12 any other Public Act.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.