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90_HB0313sam001
SRS90HB0313MNbmam01
1 AMENDMENT TO HOUSE BILL 313
2 AMENDMENT NO. . Amend House Bill 313 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee pensions."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Pension Code is amended by
8 changing Sections 3-110.5, 3-110.6, 4-109.1, 4-115.1,
9 5-167.5, 5-237, 6-164.2, 7-139.8, 7-141.1, 8-138, 8-150.1,
10 8-159, 8-164.1, 9-101, 9-121.13, 9-133, 9-133.1, 9-179.3,
11 11-134, 11-145.1, 11-154, 11-160.1, 14-104, 14-110, 15-157,
12 15-157.1, 16-127, 16-141, and 17-116.1 and adding Sections
13 7-145.1, 7-145.2, 9-120.1, 9-134.3, 9-146.2, and 14-104.10 as
14 follows:
15 (40 ILCS 5/3-110.5) (from Ch. 108 1/2, par. 3-110.5)
16 Sec. 3-110.5. Transfer to Article 14 system.
17 (a) Until January 1, 1990, any active member of the
18 State Employees' Retirement System who is a State policeman
19 and until July 1, 1998, any active member of the State
20 Employees' Retirement System who is a security employee of
21 the Department of Corrections may apply for transfer of his
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1 or her creditable service accumulated in any police pension
2 fund under this Article to the State Employees' Retirement
3 System. Such creditable service shall be transferred only
4 upon payment by such police pension fund to the State
5 Employees' Retirement System of an amount equal to:
6 (1) the amounts accumulated to the credit of the
7 applicant on the books of the fund on the date of
8 transfer; and
9 (2) employer contributions in an amount equal to
10 the amount determined under subparagraph (1); and
11 (3) any interest paid by the applicant in order to
12 reinstate service.
13 Participation in this Fund shall terminate on the date of
14 transfer.
15 (b) Until January 1, 1990, any such State policeman and
16 until July 1, 1998, any such security employee of the
17 Department of Corrections may reinstate service which was
18 terminated by receipt of a refund, by payment to the police
19 pension fund of the amount of the refund with interest
20 thereon at the rate of 6% per year, compounded annually, from
21 the date of refund to the date of payment.
22 (Source: P.A. 86-272.)
23 (40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
24 Sec. 3-110.6. Transfer to Article 14 System.
25 (a) Any active member of the State Employees' Retirement
26 System who is an investigator for the Office of the State's
27 Attorneys Appellate Prosecutor or a controlled substance
28 inspector may apply for transfer of his or her creditable
29 service accumulated in any police pension fund under this
30 Article to the State Employees' Retirement System in
31 accordance with Section 14-110. The creditable service shall
32 be transferred only upon payment by the police pension fund
33 to the State Employees' Retirement System of an amount equal
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1 to:
2 (1) the amounts accumulated to the credit of the
3 applicant on the books of the fund on the date of
4 transfer; and
5 (2) employer contributions in an amount equal to
6 the amount determined under subparagraph (1); and
7 (3) any interest paid by the applicant in order to
8 reinstate service.
9 Participation in the police pension fund shall terminate on
10 the date of transfer.
11 (b) Any such investigator or inspector may reinstate
12 service which was terminated by receipt of a refund, by
13 paying to the police pension fund the amount of the refund
14 with interest thereon at the rate of 6% per year, compounded
15 annually, from the date of refund to the date of payment.
16 (Source: P.A. 87-1265.)
17 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
18 Sec. 4-109.1. Increase in pension.
19 (a) Except as provided in subsection (e), the monthly
20 pension of a firefighter who retires after July 1, 1971 and
21 prior to January 1, 1986, shall, upon either the first of the
22 month following the first anniversary of the date of
23 retirement if 60 years of age or over at retirement date, or
24 upon the first day of the month following attainment of age
25 60 if it occurs after the first anniversary of retirement, be
26 increased by 2% of the originally granted monthly pension and
27 by an additional 2% in each January thereafter. Effective
28 January 1976, the rate of the annual increase shall be 3% of
29 the originally granted monthly pension.
30 (b) The monthly pension of a firefighter who retired
31 from service with 20 or more years of service, on or before
32 July 1, 1971, shall be increased, in January of the year
33 following the year of attaining age 65 or in January 1972, if
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1 then over age 65, by 2% of the originally granted monthly
2 pension, for each year the firefighter received pension
3 payments. In each January thereafter, he or she shall
4 receive an additional increase of 2% of the original monthly
5 pension. Effective January 1976, the rate of the annual
6 increase shall be 3%.
7 (c) The monthly pension of a firefighter who is
8 receiving a disability pension under this Article shall be
9 increased, in January of the year following the year the
10 firefighter attains age 60, or in January 1974, if then over
11 age 60, by 2% of the originally granted monthly pension for
12 each year he or she received pension payments. In each
13 January thereafter, the firefighter shall receive an
14 additional increase of 2% of the original monthly pension.
15 Effective January 1976, the rate of the annual increase shall
16 be 3%.
17 (c-1) On January 1, 1998, every child's disability
18 benefit payable on that date under Section 4-110 or 4-110.1
19 shall be increased by an amount equal to 1/12 of 3% of the
20 amount of the benefit, multiplied by the number of months for
21 which the benefit has been payable. On each January 1
22 thereafter, every child's disability benefit payable under
23 Section 4-110 or 4-110.1 shall be increased by 3% of the
24 amount of the benefit then being paid, including any previous
25 increases received under this Article. These increases are
26 not subject to any limitation on the maximum benefit amount
27 included in Section 4-110 or 4-110.1.
28 (d) The monthly pension of a firefighter who retires
29 after January 1, 1986, shall, upon either the first of the
30 month following the first anniversary of the date of
31 retirement if 55 years of age or over at retirement date, or
32 upon the first day of the month following attainment of age
33 55 if it occurs after the first anniversary of retirement, be
34 increased by 3% of the originally granted monthly pension for
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1 each full year that has elapsed since the pension began, and
2 by an additional 3% in each January thereafter.
3 (e) Notwithstanding the provisions of subsection (a),
4 upon the first day of the month following (1) the first
5 anniversary of the date of retirement, or (2) the attainment
6 of age 55, or (3) July 1, 1987, whichever occurs latest, the
7 monthly pension of a firefighter who retired on or after
8 January 1, 1977 and on or before January 1, 1986 and did not
9 receive an increase under subsection (a) before July 1, 1987,
10 shall be increased by 3% of the originally granted monthly
11 pension for each full year that has elapsed since the pension
12 began, and by an additional 3% in each January thereafter.
13 The increases provided under this subsection are in lieu of
14 the increases provided in subsection (a).
15 (Source: P.A. 85-941.)
16 (40 ILCS 5/4-115.1) (from Ch. 108 1/2, par. 4-115.1)
17 Sec. 4-115.1. Eligibility of children. Dependent
18 benefits shall be paid to each natural child of a deceased
19 firefighter, and to each child legally adopted before the
20 firefighter attains age 50, until the child's attainment of
21 age 18, or marriage, whichever occurs first, whether or not
22 the death of the firefighter occurred prior to November 21,
23 1975.
24 Benefits payable to or on account of a child under this
25 Article shall not be reduced or terminated by reason of the
26 child's adoption by a third party after the firefighter's
27 death.
28 Benefits payable to or on account of a child under this
29 Article to children shall not be reduced or terminated by
30 reason of the child's attainment of age 18 if he or she is
31 then dependent by reason of a physical or mental disability
32 but shall continue to be paid as long as such dependency
33 continues. Individuals over the age of 18 and adjudged as a
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1 disabled person pursuant to Article XIa of the Probate Act of
2 1975, except for persons receiving benefits under Article III
3 of the Illinois Public Aid Code, shall be eligible to receive
4 benefits under this Act.
5 (Source: P.A. 83-1440.)
6 (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
7 Sec. 5-167.5. Group health benefit.
8 (a) For the purposes of this Section: (1) "annuitant"
9 means a person receiving an age and service annuity, a prior
10 service annuity, a widow's annuity, a widow's prior service
11 annuity, or a minimum annuity on or after January 1, 1988,
12 under Article 5, 6, 8 or 11, by reason of previous employment
13 by the City of Chicago (hereinafter, in this Section, "the
14 city"); (2) "Medicare Plan annuitant" means an annuitant
15 described in item (1) who is eligible for Medicare benefits;
16 and (3) "non-Medicare Plan annuitant" means an annuitant
17 described in item (1) who is not eligible for Medicare
18 benefits.
19 (b) The city shall continue to offer group health
20 benefits to annuitants and their eligible dependents through
21 June 30, 2002. The same basic city health care plan
22 available as of June 30, 1988 (hereinafter called the basic
23 city plan) shall cease to be a plan offered by the city,
24 except as specified in subparagraphs (4) and (5) below, and
25 shall be closed to new enrollment or transfer of coverage for
26 any non-Medicare Plan annuitant as of the effective date of
27 this amendatory Act of 1997. The city shall offer
28 non-Medicare Plan annuitants and their eligible dependents
29 the option of enrolling in its Annuitant Preferred Provider
30 Plan, and may offer additional plans for any annuitant. The
31 city may amend, modify, or terminate any of its additional
32 plans at its sole discretion. If the city offers more than
33 one annuitant plan, the city shall allow annuitants to
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1 convert coverage from one city annuitant plan to another,
2 except the basic city plan, during times designated by the
3 city, which periods of time shall occur at least annually.
4 For the period dating from the effective date of this
5 amendatory Act of 1997 through June 30, 2002, monthly premium
6 rates may be increased for annuitants during the time of
7 their participation in non-Medicare plans, except as provided
8 in subparagraphs (1) through (4) of this subsection.
9 (1) For non-Medicare Plan annuitants who retired
10 prior to January 1, 1988, the annuitant's share of
11 monthly premium for non-Medicare Plan coverage only shall
12 not exceed the highest premium rate chargeable under any
13 city non-Medicare Plan annuitant coverage as of December
14 1, 1996.
15 (2) For non-Medicare Plan annuitants who retire on
16 or after January 1, 1988, the annuitant's share of
17 monthly premium for non-Medicare Plan coverage only shall
18 be the rate in effect on December 1, 1996, with monthly
19 premium increases to take effect no sooner than April 1,
20 1998 at the lower of (i) the premium rate determined
21 pursuant to subsection (g) or (ii) 10% of the immediately
22 previous month's rate for similar coverage.
23 (3) In no event shall any non-Medicare Plan
24 annuitant's share of monthly premium for non-Medicare
25 Plan coverage exceed 10% of the annuitant's monthly
26 annuity.
27 (4) Non-Medicare Plan annuitants who are enrolled
28 in the basic city plan as of July 1, 1998 may remain in
29 the basic city plan, if they so choose, on the condition
30 that they are not entitled to the caps on rates set forth
31 in subparagraphs (1) through (3), and their premium rate
32 shall be the rate determined in accordance with
33 subsections (c) and (g).
34 (5) Medicare Plan annuitants who are currently
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1 enrolled in the basic city plan for Medicare eligible
2 annuitants may remain in that plan, if they so choose,
3 through June 30, 2002. Annuitants shall not be allowed
4 to enroll in or transfer into the basic city plan for
5 Medicare eligible annuitants on or after July 1, 1999.
6 The city shall continue to offer annuitants a
7 supplemental Medicare Plan for Medicare eligible
8 annuitants through June 30, 2002, and the city may offer
9 additional plans to Medicare eligible annuitants in its
10 sole discretion. All Medicare Plan annuitant monthly
11 rates shall be determined in accordance with subsections
12 (c) and (g).
13 (c) Effective the date the initial increased annuitant
14 payments pursuant to subsection (g) take effect, The city
15 shall pay 50% of the aggregated costs of the claims or
16 premiums, whichever is applicable, as determined in
17 accordance with subsection (g), of annuitants and their
18 dependents under all health care plans offered by the city.
19 The city may reduce its obligation by application of price
20 reductions obtained as a result of financial arrangements
21 with providers or plan administrators. The claims or
22 premiums of all annuitants and their dependents under all of
23 the plans offered by the city shall be aggregated for the
24 purpose of calculating the city's payment required under this
25 subsection, as well as for the setting of rates of payment
26 for annuitants as required under subsection (g).
27 (d) From January 1, 1988 until December 31, 1992, the
28 board shall pay to the city on behalf of each of the board's
29 annuitants who chooses to participate in any of the city's
30 plans the following amounts: up to a maximum of $65 per month
31 for each such annuitant who is not qualified to receive
32 medicare benefits, and up to a maximum of $35 per month for
33 each such annuitant who is qualified to receive medicare
34 benefits. From January 1, 1993 until June 30, 2002 December
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1 31, 1997, the board shall pay to the city on behalf of each
2 of the board's annuitants who chooses to participate in any
3 of the city's plans the following amounts: up to a maximum of
4 $75 per month for each such annuitant who is not qualified to
5 receive medicare benefits, and up to a maximum of $45 per
6 month for each such annuitant who is qualified to receive
7 medicare benefits.
8 For the period January 1, 1988 through the effective date
9 of this amendatory Act of 1989, payments under this Section
10 shall be reduced by the amounts paid by or on behalf of the
11 board's annuitants covered during that period.
12 The payments described in this subsection shall be paid
13 from the tax levy authorized under Section 5-168; such
14 amounts shall be credited to the reserve for group hospital
15 care and group medical and surgical plan benefits, and all
16 payments to the city required under this subsection shall be
17 charged against it.
18 (e) The city's obligations under subsections (b) and (c)
19 shall terminate on June 30, 2002 December 31, 1997, except
20 with regard to covered expenses incurred but not paid as of
21 that date. This subsection shall not affect other
22 obligations that may be imposed by law.
23 (f) The group coverage plans described in this Section
24 are not and shall not be construed to be pension or
25 retirement benefits for purposes of Section 5 of Article XIII
26 of the Illinois Constitution of 1970.
27 (g) For each annuitant plan offered by the city, the
28 aggregate cost of claims, as reflected in the claim records
29 of the plan administrator, and premiums for each calendar
30 year from 1989 through 1997 of all annuitants and dependents
31 covered by the city's group health care plans shall be
32 estimated by the city, based upon a written determination by
33 a qualified independent actuary to be appointed and paid by
34 the city and the board. If the such estimated annual cost
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1 for each annuitant plan offered by the city is more than the
2 estimated amount to be contributed by the city for that plan
3 pursuant to subsections (b) and (c) during that year plus the
4 estimated amounts to be paid pursuant to subsection (d) and
5 by the other pension boards on behalf of other participating
6 annuitants, the difference shall be paid by all participating
7 annuitants participating in the plan, except as provided in
8 subsection (b). The city, based upon the determination of
9 the independent actuary, shall set the monthly amounts to be
10 paid by the participating annuitants. The initial
11 determination of such payments shall be prospective only and
12 shall be based upon the estimated costs for the balance of
13 the year. The board may deduct the amounts to be paid by its
14 annuitants from the participating annuitants' monthly
15 annuities.
16 If it is determined from the city's annual audit, or from
17 audited experience data, that the total amount paid by all
18 participating annuitants was more or less than the difference
19 between (1) the cost of providing the group health care
20 plans, and (2) the sum of the amount to be paid by the city
21 as determined under subsection (c) and the amounts paid by
22 all the pension boards, then the independent actuary and the
23 city shall account for the excess or shortfall in the next
24 year's payments by annuitants, except as provided in
25 subsection (b).
26 (h) An annuitant may elect to terminate coverage in a
27 plan at the end of any month any time, which election shall
28 terminate the annuitant's obligation to contribute toward
29 payment of the excess described in subsection (g).
30 (i) The city shall advise the board of all proposed
31 premium increases for health care at least 75 days prior to
32 the effective date of the change, and any increase shall be
33 prospective only.
34 (Source: P.A. 86-273.)
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1 (40 ILCS 5/5-237)
2 Sec. 5-237. Transfer of creditable service to Article 9
3 fund.
4 (a) Any person who is an active participant in the
5 pension fund established under Article 9 of this Code and who
6 was employed by the office of the Cook County State's
7 Attorney on January 1, 1995 may apply for transfer of his or
8 her credits and creditable service accumulated in this Fund
9 to that Article 9 fund. Upon receipt of a written
10 application to make this transfer, the Fund shall pay to the
11 Article 9 fund an amount consisting of:
12 (1) the amounts credited to the applicant through
13 employee contributions, plus accumulated interest; plus
14 (2) an amount representing municipality
15 contributions, equal to the amount determined under item
16 (1); plus
17 (3) any interest paid to the Fund in order to
18 reinstate credits and creditable service under subsection
19 (b).
20 Participation in this Fund shall terminate on the date of the
21 transfer.
22 (a-5) Until July 1, 1998, any person who is an active
23 participant in the pension fund established under Article 9
24 of this Code and a member of the county police department as
25 defined in Section 9-128.1 may apply for transfer of his or
26 her credits and creditable service accumulated in this Fund
27 to that Article 9 fund. Upon receipt of a written
28 application to make this transfer, the Fund shall pay to the
29 Article 9 fund an amount consisting of:
30 (1) the amounts credited to the applicant through
31 employee contributions, plus accumulated interest; plus
32 (2) an amount representing municipality
33 contributions, equal to the amount determined under item
34 (1); plus
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1 (3) any interest paid to the Fund in order to
2 reinstate credits and creditable service under subsection
3 (b).
4 Participation in this Fund shall terminate on the date of the
5 transfer.
6 (b) As part of a transfer under subsection (a) or (a-5),
7 a person may reinstate credits and creditable service that
8 was terminated upon receipt of a refund, by paying to the
9 Fund the amount of the refund plus interest thereon at the
10 rate of 6% per year, compounded annually, from the date of
11 the refund to the date of payment.
12 (Source: P.A. 89-136, eff. 7-14-95.)
13 (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
14 Sec. 6-164.2. Group health benefit.
15 (a) For the purposes of this Section: (1) "annuitant"
16 means a person receiving an age and service annuity, a prior
17 service annuity, a widow's annuity, a widow's prior service
18 annuity, or a minimum annuity on or after January 1, 1988,
19 under Article 5, 6, 8 or 11, by reason of previous employment
20 by the City of Chicago (hereinafter, in this Section, "the
21 city"); (2) "Medicare Plan annuitant" means an annuitant
22 described in item (1) who is eligible for Medicare benefits;
23 and (3) "non-Medicare Plan annuitant" means an annuitant
24 described in item (1) who is not eligible for Medicare
25 benefits.
26 (b) The city shall continue to offer group health
27 benefits to annuitants and their eligible dependents through
28 June 30, 2002. The same basic city health care plan
29 available as of June 30, 1988 (hereinafter called the basic
30 city plan) shall cease to be a plan offered by the city,
31 except as specified in subparagraphs (4) and (5) below, and
32 shall be closed to new enrollment or transfer of coverage for
33 any non-Medicare Plan annuitant as of the effective date of
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1 this amendatory Act of 1997. The city shall offer
2 non-Medicare Plan annuitants and their eligible dependents
3 the option of enrolling in its Annuitant Preferred Provider
4 Plan, and may offer additional plans for any annuitant. The
5 city may amend, modify, or terminate any of its additional
6 plans at its sole discretion. If the city offers more than
7 one annuitant plan, the city shall allow annuitants to
8 convert coverage from one city annuitant plan to another,
9 except the basic city plan, during times designated by the
10 city, which periods of time shall occur at least annually.
11 For the period dating from the effective date of this
12 amendatory Act of 1997 through June 30, 2002, monthly
13 premium rates may be increased for annuitants during the time
14 of their participation in non-Medicare plans, except as
15 provided in subparagraphs (1) through (4) of this subsection.
16 (1) For non-Medicare Plan annuitants who retired
17 prior to January 1, 1988, the annuitant's share of
18 monthly premium for non-Medicare Plan coverage only shall
19 not exceed the highest premium rate chargeable under any
20 city non-Medicare Plan annuitant coverage as of December
21 1, 1996.
22 (2) For non-Medicare Plan annuitants who retire on
23 or after January 1, 1988, the annuitant's share of
24 monthly premium for non-Medicare Plan coverage only shall
25 be the rate in effect on December 1, 1996, with monthly
26 premium increases to take effect no sooner than April 1,
27 1998 at the lower of (i) the premium rate determined
28 pursuant to subsection (g) or (ii) 10% of the immediately
29 previous month's rate for similar coverage.
30 (3) In no event shall any non-Medicare Plan
31 annuitant's share of monthly premium for non-Medicare
32 Plan coverage exceed 10% of the annuitant's monthly
33 annuity.
34 (4) Non-Medicare Plan annuitants who are enrolled
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1 in the basic city plan as of July 1, 1998 may remain in
2 the basic city plan, if they so choose, on the condition
3 that they are not entitled to the caps on rates set forth
4 in subparagraphs (1) through (3), and their premium rate
5 shall be the rate determined in accordance with
6 subsections (c) and (g).
7 (5) Medicare Plan annuitants who are currently
8 enrolled in the basic city plan for Medicare eligible
9 annuitants may remain in that plan, if they so choose,
10 through June 30, 2002. Annuitants shall not be allowed
11 to enroll in or transfer into the basic city plan for
12 Medicare eligible annuitants on or after July 1, 1999.
13 The city shall continue to offer annuitants a
14 supplemental Medicare Plan for Medicare eligible
15 annuitants through June 30, 2002, and the city may offer
16 additional plans to Medicare eligible annuitants in its
17 sole discretion. All Medicare Plan annuitant monthly
18 rates shall be determined in accordance with subsections
19 (c) and (g).
20 (c) Effective the date the initial increased annuitant
21 payments pursuant to subsection (g) take effect, The city
22 shall pay 50% of the aggregated costs of the claims or
23 premiums, whichever is applicable, as determined in
24 accordance with subsection (g), of annuitants and their
25 dependents under all health care plans offered by the city.
26 The city may reduce its obligation by application of price
27 reductions obtained as a result of financial arrangements
28 with providers or plan administrators. The claims or
29 premiums of all annuitants and their dependents under all of
30 the plans offered by the city shall be aggregated for the
31 purpose of calculating the city's payment required under this
32 subsection, as well as for the setting of rates of payment
33 for annuitants as required under subsection (g).
34 (d) From January 1, 1988 until December 31, 1992, the
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1 board shall pay to the city on behalf of each of the board's
2 annuitants who chooses to participate in any of the city's
3 plans the following amounts: up to a maximum of $65 per month
4 for each such annuitant who is not qualified to receive
5 medicare benefits, and up to a maximum of $35 per month for
6 each such annuitant who is qualified to receive medicare
7 benefits. From January 1, 1993 until June 30, 2002 December
8 31, 1997, the board shall pay to the city on behalf of each
9 of the board's annuitants who chooses to participate in any
10 of the city's plans the following amounts: up to a maximum of
11 $75 per month for each such annuitant who is not qualified to
12 receive medicare benefits, and up to a maximum of $45 per
13 month for each such annuitant who is qualified to receive
14 medicare benefits.
15 For the period January 1, 1988 through the effective date
16 of this amendatory Act of 1989, payments under this Section
17 shall be reduced by the amounts paid by or on behalf of the
18 board's annuitants covered during that period.
19 The payments described in this subsection shall be paid
20 from the tax levy authorized under Section 6-165; such
21 amounts shall be credited to the reserve for group hospital
22 care and group medical and surgical plan benefits, and all
23 payments to the city required under this subsection shall be
24 charged against it.
25 (e) The city's obligations under subsections (b) and (c)
26 shall terminate on June 30, 2002 December 31, 1997, except
27 with regard to covered expenses incurred but not paid as of
28 that date. This subsection shall not affect other
29 obligations that may be imposed by law.
30 (f) The group coverage plans described in this Section
31 are not and shall not be construed to be pension or
32 retirement benefits for purposes of Section 5 of Article XIII
33 of the Illinois Constitution of 1970.
34 (g) For each annuitant plan offered by the city, the
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1 aggregate cost of claims, as reflected in the claim records
2 of the plan administrator, and premiums for each calendar
3 year from 1989 through 1997 of all annuitants and dependents
4 covered by the city's group health care plans shall be
5 estimated by the city, based upon a written determination by
6 a qualified independent actuary to be appointed and paid by
7 the city and the board. If the such estimated annual cost
8 for each annuitant plan offered by the city is more than the
9 estimated amount to be contributed by the city for that plan
10 pursuant to subsections (b) and (c) during that year plus the
11 estimated amounts to be paid pursuant to subsection (d) and
12 by the other pension boards on behalf of other participating
13 annuitants, the difference shall be paid by all participating
14 annuitants participating in the plan, except as provided in
15 subsection (b). The city, based upon the determination of
16 the independent actuary, shall set the monthly amounts to be
17 paid by the participating annuitants. The initial
18 determination of such payments shall be prospective only and
19 shall be based upon the estimated costs for the balance of
20 the year. The board may deduct the amounts to be paid by its
21 annuitants from the participating annuitants' monthly
22 annuities.
23 If it is determined from the city's annual audit, or from
24 audited experience data, that the total amount paid by all
25 participating annuitants was more or less than the difference
26 between (1) the cost of providing the group health care
27 plans, and (2) the sum of the amount to be paid by the city
28 as determined under subsection (c) and the amounts paid by
29 all the pension boards, then the independent actuary and the
30 city shall account for the excess or shortfall in the next
31 year's payments by annuitants, except as provided in
32 subsection (b).
33 (h) An annuitant may elect to terminate coverage in a
34 plan at the end of any month any time, which election shall
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1 terminate the annuitant's obligation to contribute toward
2 payment of the excess described in subsection (g).
3 (i) The city shall advise the board of all proposed
4 premium increases for health care at least 75 days prior to
5 the effective date of the change, and any increase shall be
6 prospective only.
7 (Source: P.A. 86-273.)
8 (40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
9 Sec. 7-139.8. Transfer to Article 14 System.
10 (a) Any active member of the State Employees' Retirement
11 System who is an investigator for the Office of the State's
12 Attorneys Appellate Prosecutor or a controlled substance
13 inspector may apply for transfer of his or her credits and
14 creditable service accumulated in this Fund for service as a
15 sheriff's law enforcement employee to the State Employees'
16 Retirement System in accordance with Section 14-110. The
17 creditable service shall be transferred only upon payment by
18 this Fund to the State Employees' Retirement System of an
19 amount equal to:
20 (1) the amounts accumulated to the credit of the
21 applicant for service as a sheriff's law enforcement
22 employee, including interest; and
23 (2) municipality credits based on such service,
24 including interest; and
25 (3) any interest paid by the applicant to reinstate
26 such service.
27 Participation in this Fund as to any credits transferred
28 under this Section shall terminate on the date of transfer.
29 (b) Any such investigator or inspector may reinstate
30 credits and creditable service terminated upon receipt of a
31 separation benefit, by paying to the Fund the amount of the
32 separation benefit plus interest thereon at the rate of 6%
33 per year to the date of payment.
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1 (Source: P.A. 87-1265.)
2 (40 ILCS 5/7-141.1)
3 Sec. 7-141.1. Early retirement incentive.
4 (a) The General Assembly finds and declares that:
5 (1) Units of local government across the State have
6 been functioning under a financial crisis.
7 (2) This financial crisis is expected to continue.
8 (3) Units of local government must depend on
9 additional sources of revenue and, when those sources are
10 not forthcoming, must establish cost-saving programs.
11 (4) An early retirement incentive designed
12 specifically to target highly-paid senior employees could
13 result in significant annual cost savings.
14 (5) The early retirement incentive should be made
15 available only to those units of local government that
16 determine that an early retirement incentive is in their
17 best interest.
18 (6) A unit of local government adopting a program
19 of early retirement incentives under this Section is
20 encouraged to implement personnel procedures to prohibit,
21 for at least 5 years, the rehiring (whether on payroll or
22 by independent contract) of employees who receive early
23 retirement incentives.
24 (7) A unit of local government adopting a program
25 of early retirement incentives under this Section is also
26 encouraged to replace as few of the participating
27 employees as possible and to hire replacement employees
28 for salaries totaling no more than 80% of the total
29 salaries formerly paid to the employees who participate
30 in the early retirement program.
31 It is the primary purpose of this Section to encourage
32 units of local government that can realize true cost savings,
33 or have determined that an early retirement program is in
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1 their best interest, to implement an early retirement
2 program.
3 (b) Until the effective date of this amendatory Act of
4 1997, this Section does not apply to any employer that is a
5 city, village, or incorporated town, nor to the employees of
6 any such employer. Beginning on the effective date of this
7 amendatory Act of 1997, any employer under this Article,
8 including an employer that is a city, village, or
9 incorporated town, may establish an early retirement
10 incentive program for its employees under this Section. The
11 decision of a city, village, or incorporated town to consider
12 or establish an early retirement program is at the sole
13 discretion of that city, village, or incorporated town, and
14 nothing in this amendatory Act of 1997 limits or otherwise
15 diminishes this discretion. Nothing contained in this
16 Section shall be construed to require a city, village, or
17 incorporated town to establish an early retirement program
18 and no city, village, or incorporated town may be compelled
19 to implement such a program. All references in this Section
20 to an "employer" or "unit of local government" are
21 specifically intended to exclude every employer that is a
22 city, village, or incorporated town.
23 The benefits provided in this Section are available only
24 to members employed by a participating employer that has
25 filed with the Board of the Fund a resolution or ordinance
26 expressly providing for the creation of an early retirement
27 incentive program under this Section for its employees and
28 specifying the effective date of the early retirement
29 incentive program. Subject to the limitation in subsection
30 (h), an employer may adopt a resolution or ordinance
31 providing a program of early retirement incentives under this
32 Section at any time, but no more often than once in 5 years.
33 The resolution or ordinance shall be in substantially the
34 following form:
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1 RESOLUTION (ORDINANCE) NO. ....
2 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
3 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
4 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
5 WHEREAS, Section 7-141.1 of the Illinois Pension Code
6 provides that a participating employer may elect to adopt an
7 early retirement incentive program offered by the Illinois
8 Municipal Retirement Fund by adopting a resolution or
9 ordinance; and
10 WHEREAS, The goal of adopting an early retirement program
11 is to realize a substantial savings in personnel costs by
12 offering early retirement incentives to employees who have
13 accumulated many years of service credit; and
14 WHEREAS, Implementation of the early retirement program
15 will provide a budgeting tool to aid in controlling payroll
16 costs; and
17 WHEREAS, The (name of governing body) has determined that
18 the adoption of an early retirement incentive program is in
19 the best interests of the (name of participating employer);
20 therefore be it
21 RESOLVED (ORDAINED) by the (name of governing body) of
22 (name of participating employer) that:
23 (1) The (name of participating employer) does hereby
24 adopt the Illinois Municipal Retirement Fund early retirement
25 incentive program as provided in Section 7-141.1 of the
26 Illinois Pension Code. The early retirement incentive
27 program shall take effect on (date).
28 (2) In order to help achieve a true cost savings, a
29 person who retires under the early retirement incentive
30 program shall lose those incentives if he or she later
31 accepts employment with any IMRF employer in a position for
32 which participation in IMRF is required or is elected by the
33 employee.
34 (3) In order to utilize an early retirement incentive as
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1 a budgeting tool, the (name of participating employer) will
2 use its best efforts either to limit the number of employees
3 who replace the employees who retire under the early
4 retirement program or to limit the salaries paid to the
5 employees who replace the employees who retire under the
6 early retirement program.
7 (4) The effective date of each employee's retirement
8 under this early retirement program shall be set by (name of
9 employer) and shall be no earlier than the effective date of
10 the program and no later than one year after that effective
11 date; except that the employee may require that the
12 retirement date set by the employer be no later than the June
13 30 next occurring after the effective date of the program and
14 no earlier than the date upon which the employee qualifies
15 for retirement.
16 (5) To be eligible for the early retirement incentive
17 under this Section, the employee must have attained age 50
18 and have at least 20 years of creditable service by his or
19 her retirement date.
20 (6) The (clerk or secretary) shall promptly file a
21 certified copy of this resolution (ordinance) with the Board
22 of Trustees of the Illinois Municipal Retirement Fund.
23 CERTIFICATION
24 I, (name), the (clerk or secretary) of the (name of
25 participating employer) of the County of (name), State of
26 Illinois, do hereby certify that I am the keeper of the books
27 and records of the (name of employer) and that the foregoing
28 is a true and correct copy of a resolution (ordinance) duly
29 adopted by the (governing body) at a meeting duly convened
30 and held on (date).
31 SEAL
32 (Signature of clerk or secretary)
33 (c) To be eligible for the benefits provided under an
34 early retirement incentive program adopted under this
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1 Section, a member must:
2 (1) be a participating employee of this Fund who,
3 on the effective date of the program, (i) is in active
4 payroll status as an employee of a participating employer
5 that has filed the required ordinance or resolution with
6 the Board, (ii) is on layoff status from such a position
7 with a right of re-employment or recall to service, (iii)
8 is on a leave of absence from such a position, or (iv) is
9 on disability but has not been receiving benefits under
10 Section 7-146 or 7-150 for a period of more than 2 years
11 from the date of application;
12 (2) have never previously received a retirement
13 annuity under this Article or under the Retirement
14 Systems Reciprocal Act using service credit established
15 under this Article;
16 (3) file with the Board within 60 days of the
17 effective date of the program an application requesting
18 the benefits provided in this Section;
19 (4) have at least 20 years of creditable service in
20 the Fund by the date of retirement, without the use of
21 any creditable service established under this Section;
22 (5) have attained age 50 by the date of retirement,
23 without the use of any age enhancement received under
24 this Section; and
25 (6) be eligible to receive a retirement annuity
26 under this Article by the date of retirement, for which
27 purpose the age enhancement and creditable service
28 established under this Section may be considered.
29 (d) The employer shall determine the retirement date for
30 each employee participating in the early retirement program
31 adopted under this Section. The retirement date shall be no
32 earlier than the effective date of the program and no later
33 than one year after that effective date, except that the
34 employee may require that the retirement date set by the
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1 employer be no later than the June 30 next occurring after
2 the effective date of the program and no earlier than the
3 date upon which the employee qualifies for retirement. The
4 employer shall give each employee participating in the early
5 retirement program at least 30 days written notice of the
6 employee's designated retirement date, unless the employee
7 waives this notice requirement.
8 (e) An eligible person may establish up to 5 years of
9 creditable service under this Section. In addition, for each
10 period of creditable service established under this Section,
11 a person shall have his or her age at retirement deemed
12 enhanced by an equivalent period.
13 The creditable service established under this Section may
14 be used for all purposes under this Article and the
15 Retirement Systems Reciprocal Act, except for the computation
16 of final rate of earnings and the determination of earnings,
17 salary, or compensation under this or any other Article of
18 the Code.
19 The age enhancement established under this Section may be
20 used for all purposes under this Article (including
21 calculation of the reduction imposed under subdivision
22 (a)1b(iv) of Section 7-142), except for purposes of a
23 reversionary annuity under Section 7-145 and any
24 distributions required because of age. The age enhancement
25 established under this Section may be used in calculating a
26 proportionate annuity payable by this Fund under the
27 Retirement Systems Reciprocal Act, but shall not be used in
28 determining benefits payable under other Articles of this
29 Code under the Retirement Systems Reciprocal Act.
30 (f) For all creditable service established under this
31 Section, the member must pay to the Fund an employee
32 contribution consisting of 4.5% of the member's highest
33 annual salary rate used in the determination of the final
34 rate of earnings for retirement annuity purposes for each
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1 year of creditable service granted under this Section. For
2 creditable service established under this Section by a person
3 who is a sheriff's law enforcement employee to be deemed
4 service as a sheriff's law enforcement employee, the employee
5 contribution shall be at the rate of 6.5% of highest annual
6 salary per year of creditable service granted. Contributions
7 for fractions of a year of service shall be prorated. Any
8 amounts that are disregarded in determining the final rate of
9 earnings under subdivision (d)(5) of Section 7-116 (the 125%
10 rule) shall also be disregarded in determining the required
11 contribution under this subsection (f).
12 The employee contribution shall be paid to the Fund as
13 follows: If the member is entitled to a lump sum payment for
14 accumulated vacation, sick leave, or personal leave upon
15 withdrawal from service, the employer shall deduct the
16 employee contribution from that lump sum and pay the deducted
17 amount directly to the Fund. If there is no such lump sum
18 payment or the required employee contribution exceeds the net
19 amount of the lump sum payment, then the remaining amount
20 due, at the option of the employee, may either be paid to the
21 Fund before the annuity commences or deducted from the
22 retirement annuity in 24 equal monthly installments.
23 (g) An annuitant who has received any age enhancement or
24 creditable service under this Section and thereafter accepts
25 employment with or enters into a personal services contract
26 with an employer under this Article thereby forfeits that age
27 enhancement and creditable service. A person forfeiting
28 early retirement incentives under this subsection (i) must
29 repay to the Fund that portion of the retirement annuity
30 already received which is attributable to the early
31 retirement incentives that are being forfeited, (ii) shall
32 not be eligible to participate in any future early retirement
33 program adopted under this Section, and (iii) is entitled to
34 a refund of the employee contribution paid under subsection
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1 (f). The Board shall deduct the required repayment from the
2 refund and may impose a reasonable payment schedule for
3 repaying the amount, if any, by which the required repayment
4 exceeds the refund amount.
5 (h) The additional unfunded liability accruing as a
6 result of the adoption of a program of early retirement
7 incentives under this Section by an employer shall be
8 amortized over a period of 10 years beginning on January 1 of
9 the second calendar year following the calendar year in which
10 the latest date for beginning to receive a retirement annuity
11 under the program (as determined by the employer under
12 subsection (d) of this Section) occurs; except that the
13 employer may provide for a shorter amortization period (of no
14 less than 5 years) by adopting an ordinance or resolution
15 specifying the length of the amortization period and
16 submitting a certified copy of the ordinance or resolution to
17 the Fund no later than 6 months after the effective date of
18 the program. An employer, at its discretion, may accelerate
19 payments to the Fund.
20 An employer may provide more than one early retirement
21 incentive program for its employees under this Section.
22 However, an employer that has provided an early retirement
23 incentive program for its employees under this Section may
24 not provide another early retirement incentive program under
25 this Section until (1) the liability arising from the earlier
26 program has been fully paid to the Fund and (2) at least 6
27 years have elapsed from the effective date of the previous
28 program.
29 (Source: P.A. 89-329, eff. 8-17-95.)
30 (40 ILCS 5/7-145.1 new)
31 Sec. 7-145.1. Alternative annuity for county officers.
32 (a) The benefits provided in this Section and Section
33 7-145.2 are available only if the county board has filed with
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1 the Board of the Fund a resolution or ordinance expressly
2 consenting to the availability of these benefits for its
3 elected county officers. The county board's consent is
4 irrevocable.
5 An elected county officer may elect to establish
6 alternative credits for an alternative annuity by electing in
7 writing to make additional optional contributions in
8 accordance with this Section and procedures established by
9 the board. The elected county officer may discontinue making
10 the additional optional contributions by notifying the Fund
11 in writing in accordance with this Section and procedures
12 established by the board.
13 Additional optional contributions for the alternative
14 annuity shall be as follows:
15 (1) For service after the option is elected, an
16 additional contribution of 3% of salary shall be
17 contributed to the Fund on the same basis and under the
18 same conditions as contributions required under Section
19 7-173.
20 (2) For service before the option is elected, an
21 additional contribution of 3% of the salary for the
22 applicable period of service, plus interest at the
23 effective rate from the date of service to the date of
24 payment. All payments for past service must be paid in
25 full before credit is given. No additional optional
26 contributions may be made for any period of service for
27 which credit has been previously forfeited by acceptance
28 of a refund, unless the refund is repaid in full with
29 interest at the effective rate from the date of refund to
30 the date of repayment.
31 (b) In lieu of the retirement annuity otherwise payable
32 under this Article, an elected county officer who (1) has
33 elected to participate in the Fund and make additional
34 optional contributions in accordance with this Section and
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1 (2) has attained age 55 with at least 8 years of service
2 credit (or has attained age 50 with at least 20 years of
3 service as a sheriff's law enforcement employee) may elect to
4 have his retirement annuity computed as follows: 3% of the
5 participant's salary at the time of termination of service
6 for each of the first 8 years of service credit, plus 4% of
7 that salary for each of the next 4 years of service credit,
8 plus 5% of that salary for each year of service credit in
9 excess of 12 years, subject to a maximum of 80% of that
10 salary. To the extent that the elected county officer has
11 made additional optional contributions with respect to only a
12 portion of his years of service credit, his retirement
13 annuity will first be determined in accordance with this
14 Section to the extent that additional optional contributions
15 were made, and then in accordance with the remaining Sections
16 of this Article to the extent of years of service credit with
17 respect to which additional optional contributions were not
18 made.
19 (c) In lieu of the disability benefits otherwise payable
20 under this Article, an elected county officer who (1) has
21 elected to participate in the Fund, and (2) has become
22 permanently disabled and as a consequence is unable to
23 perform the duties of his office, and (3) was making optional
24 contributions in accordance with this Section at the time the
25 disability was incurred, may elect to receive a disability
26 annuity calculated in accordance with the formula in
27 subsection (b). For the purposes of this subsection, an
28 elected county officer shall be considered permanently
29 disabled only if: (i) disability occurs while in service as
30 an elected county officer and is of such a nature as to
31 prevent him from reasonably performing the duties of his
32 office at the time; and (ii) the board has received a written
33 certification by at least 2 licensed physicians appointed by
34 it stating that the officer is disabled and that the
-28- SRS90HB0313MNbmam01
1 disability is likely to be permanent.
2 (d) Refunds of additional optional contributions shall
3 be made on the same basis and under the same conditions as
4 provided under Section 7-166, 7-167 and 7-168. Interest
5 shall be credited at the effective rate on the same basis and
6 under the same conditions as for other contributions.
7 (e) The plan of optional alternative benefits and
8 contributions shall be available to persons who are elected
9 county officers and active contributors to the Fund on or
10 after November 15, 1994. A person who was an elected county
11 officer and an active contributor to the Fund on November 15,
12 1994 but is no longer an active contributor may apply to make
13 additional optional contributions under this Section at any
14 time within 90 days after the effective date of this
15 amendatory Act of 1997; if the person is an annuitant, the
16 resulting increase in annuity shall begin to accrue on the
17 first day of the month following the month in which the
18 required payment is received by the Fund.
19 (f) For the purposes of this Section and Section
20 7-145.2, the terms "elected county officer" and "elected
21 county office" include, but are not limited to: (1) the
22 county clerk, recorder, treasurer, coroner, assessor (if
23 elected), auditor, sheriff, and State's Attorney; members of
24 the county board; and the clerk of the circuit court; and (2)
25 a person who has been appointed to fill a vacancy in an
26 office that is normally filled by election on a countywide
27 basis, for the duration of his or her service in that office.
28 The terms "elected county officer" and "elected county
29 office" do not include any officer or office of a county that
30 has not consented to the availability of benefits under this
31 Section and Section 7-145.2.
32 (40 ILCS 5/7-145.2 new)
33 Sec. 7-145.2. Alternative survivor's benefits for
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1 survivors of county officers.
2 In lieu of the survivor's benefits otherwise payable
3 under this Article, the spouse or eligible child of any
4 deceased elected county officer who (1) had elected to
5 participate in the Fund, and (2) was either making additional
6 optional contributions in accordance with Section 7-145.1 on
7 the date of death, or was receiving an annuity calculated
8 under that Section at the time of death, may elect to receive
9 an annuity beginning on the date of the elected county
10 officer's death, provided that the spouse and officer must
11 have been married on the date of the last termination of his
12 or her service as an elected county officer and for a
13 continuous period of at least one year immediately preceding
14 his or her death.
15 The annuity shall be payable beginning on the date of the
16 elected county officer's death if the spouse is then age 50
17 or over, or beginning at age 50 if the age of the spouse is
18 less than 50 years. If a minor unmarried child or children
19 of the county officer, under age 18, also survive, and the
20 child or children are under the care of the eligible spouse,
21 the annuity shall begin as of the date of death of the
22 elected county officer without regard to the spouse's age.
23 The annuity to a spouse shall be 66 2/3% of the amount of
24 retirement annuity earned by the elected county officer on
25 the date of death, subject to a minimum payment of 10% of
26 salary, provided that if an eligible spouse, regardless of
27 age, has in his or her care at the date of death of the
28 elected county officer any unmarried child or children of the
29 county officer, under age 18, the minimum annuity shall be
30 30% of the elected officer's salary, plus 10% of salary on
31 account of each minor child of the elected county officer,
32 subject to a combined total payment on account of a spouse
33 and minor children not to exceed 50% of the deceased
34 officer's salary. In the event there shall be no spouse of
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1 the elected county officer surviving, or should a spouse
2 remarry or die while eligible minor children still survive
3 the elected county officer, each such child shall be entitled
4 to an annuity equal to 20% of salary of the elected officer
5 subject to a combined total payment on account of all such
6 children not to exceed 50% of salary of the elected county
7 officer. The salary to be used in the calculation of these
8 benefits shall be the same as that prescribed for determining
9 a retirement annuity as provided in Section 7-145.1.
10 Upon the death of an elected county officer occurring
11 after termination of service or while in receipt of a
12 retirement annuity, the combined total payment to a spouse
13 and minor children, or to minor children alone if no eligible
14 spouse survives, shall be limited to 75% of the amount of
15 retirement annuity earned by the county officer.
16 Adopted children shall have status as children of the
17 elected county officer only if the proceedings for adoption
18 were commenced at least one year prior to the date of the
19 elected county officer's death.
20 Marriage of a child or attainment of age 18, whichever
21 first occurs, shall render the child ineligible for further
22 consideration in the payment of an annuity to a spouse or in
23 the increase in the amount thereof. Upon attainment of
24 ineligibility of the youngest minor child of the elected
25 county officer, the annuity shall immediately revert to the
26 amount payable upon death of an elected county officer
27 leaving no minor children surviving him or her. If the
28 spouse is under age 50 at such time, the annuity as revised
29 shall be deferred until such age is attained. Remarriage of
30 a widow or widower prior to attainment of age 55 shall
31 disqualify the spouse from the receipt of an annuity.
32 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
33 Sec. 8-138. Minimum annuities - Additional provisions.
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1 (a) An employee who withdraws after age 65 or more with
2 at least 20 years of service, for whom the amount of age and
3 service and prior service annuity combined is less than the
4 amount stated in this Section, shall from the date of
5 withdrawal, instead of all annuities otherwise provided, be
6 entitled to receive an annuity for life of $150 a year, plus
7 1 1/2% for each year of service, to and including 20 years,
8 and 1 2/3% for each year of service over 20 years, of his
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.
12 An employee who withdraws after 20 or more years of
13 service, before age 65, shall be entitled to such annuity, to
14 begin not earlier than upon attained age of 55 years if under
15 such age at withdrawal, reduced by 2% for each full year or
16 fractional part thereof that his attained age is less than
17 65, plus an additional 2% reduction for each full year or
18 fractional part thereof that his attained age when annuity is
19 to begin is less than 60 so that the total reduction at age
20 55 shall be 30%.
21 (b) An employee who withdraws after July 1, 1957, at age
22 60 or over, with 20 or more years of service, for whom the
23 age and service and prior service annuity combined, is less
24 than the amount stated in this paragraph, shall, from the
25 date of withdrawal, instead of such annuities, be entitled to
26 receive an annuity for life equal to 1 2/3% for each year of
27 service, of the highest average annual salary for any 5
28 consecutive years within the last 10 years of service
29 immediately preceding the date of withdrawal; provided, that
30 in the case of any employee who withdraws on or after July 1,
31 1971, such employee age 60 or over with 20 or more years of
32 service, shall receive an annuity for life equal to 1.67% for
33 each of the first 10 years of service; 1.90% for each of the
34 next 10 years of service; 2.10% for each year of service in
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1 excess of 20 but not exceeding 30; and 2.30% for each year of
2 service in excess of 30, based on the highest average annual
3 salary for any 4 consecutive years within the last 10 years
4 of service immediately preceding the date of withdrawal.
5 An employee who withdraws after July 1, 1957 and before
6 January 1, 1988, with 20 or more years of service, before age
7 60 years is entitled to annuity, to begin not earlier than
8 upon attained age of 55 years, if under such age at
9 withdrawal, as computed in the last preceding paragraph,
10 reduced 0.25% for each full month or fractional part thereof
11 that his attained age when annuity is to begin is less than
12 60 if the employee was born before January 1, 1936, or 0.5%
13 for each such month if the employee was born on or after
14 January 1, 1936.
15 Any employee born before January 1, 1936, who withdraws
16 with 20 or more years of service, and any employee with 20 or
17 more years of service who withdraws on or after January 1,
18 1988, may elect to receive, in lieu of any other employee
19 annuity provided in this Section, an annuity for life equal
20 to 1.80% for each of the first 10 years of service, 2.00% for
21 each of the next 10 years of service, 2.20% for each year of
22 service in excess of 20 but not exceeding 30, and 2.40% for
23 each year of service in excess of 30, of the highest average
24 annual salary for any 4 consecutive years within the last 10
25 years of service immediately preceding the date of
26 withdrawal, to begin not earlier than upon attained age of 55
27 years, if under such age at withdrawal, reduced 0.25% for
28 each full month or fractional part thereof that his attained
29 age when annuity is to begin is less than 60; except that an
30 employee retiring on or after January 1, 1988, at age 55 or
31 over but less than age 60, having at least 35 years of
32 service, or an employee retiring on or after July 1, 1990, at
33 age 55 or over but less than age 60, having at least 30 years
34 of service, or an employee retiring on or after the effective
-33- SRS90HB0313MNbmam01
1 date of this amendatory Act of 1997, at age 55 or over but
2 less than age 60, having at least 25 years of service, shall
3 not be subject to the reduction in retirement annuity because
4 of retirement below age 60.
5 However, in the case of an employee who retired on or
6 after January 1, 1985 but before January 1, 1988, at age 55
7 or older and with at least 35 years of service, and who was
8 subject under this subsection (b) to the reduction in
9 retirement annuity because of retirement below age 60, that
10 reduction shall cease to be effective January 1, 1991, and
11 the retirement annuity shall be recalculated accordingly.
12 Any employee who withdraws on or after July 1, 1990, with
13 20 or more years of service, may elect to receive, in lieu of
14 any other employee annuity provided in this Section, an
15 annuity for life equal to 2.20% for each year of service of
16 the highest average annual salary for any 4 consecutive years
17 within the last 10 years of service immediately preceding the
18 date of withdrawal, to begin not earlier than upon attained
19 age of 55 years, if under such age at withdrawal, reduced
20 0.25% for each full month or fractional part thereof that his
21 attained age when annuity is to begin is less than 60; except
22 that an employee retiring at age 55 or over but less than age
23 60, having at least 30 years of service, shall not be subject
24 to the reduction in retirement annuity because of retirement
25 below age 60.
26 Any employee who withdraws on or after the effective date
27 of this amendatory Act of 1997 with 20 or more years of
28 service may elect to receive, in lieu of any other employee
29 annuity provided in this Section, an annuity for life equal
30 to 2.20%, for each year of service, of the highest average
31 annual salary for any 4 consecutive years within the last 10
32 years of service immediately preceding the date of
33 withdrawal, to begin not earlier than upon attainment of age
34 55 (age 50 if the employee has at least 30 years of service),
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1 reduced 0.25% for each full month or remaining fractional
2 part thereof that the employee's attained age when annuity is
3 to begin is less than 60; except that an employee retiring at
4 age 50 or over with at least 30 years of service or at age 55
5 or over with at least 25 years of service shall not be
6 subject to the reduction in retirement annuity because of
7 retirement below age 60.
8 The maximum annuity payable under part (a) and (b) of
9 this Section shall not exceed 70% of highest average annual
10 salary in the case of an employee who withdraws prior to July
11 1, 1971, and 75% if withdrawal takes place on or after July
12 1, 1971. For the purpose of the minimum annuity provided in
13 this Section $1,500 is considered the minimum annual salary
14 for any year; and the maximum annual salary for the
15 computation of such annuity is $4,800 for any year before
16 1953, $6000 for the years 1953 to 1956, inclusive, and the
17 actual annual salary, as salary is defined in this Article,
18 for any year thereafter.
19 To preserve rights existing on December 31, 1959, for
20 participants and contributors on that date to the fund
21 created by the Court and Law Department Employees' Annuity
22 Act, who became participants in the fund provided for on
23 January 1, 1960, the maximum annual salary to be considered
24 for such persons for the years 1955 and 1956 is $7,500.
25 (c) For an employee receiving disability benefit, his
26 salary for annuity purposes under paragraphs (a) and (b) of
27 this Section, for all periods of disability benefit
28 subsequent to the year 1956, is the amount on which his
29 disability benefit was based.
30 (d) An employee with 20 or more years of service, whose
31 entire disability benefit credit period expires before
32 attainment of age 55 while still disabled for service, is
33 entitled upon withdrawal to the larger of (1) the minimum
34 annuity provided above, assuming he is then age 55, and
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1 reducing such annuity to its actuarial equivalent as of his
2 attained age on such date or (2) the annuity provided from
3 his age and service and prior service annuity credits.
4 (e) The minimum annuity provisions do not apply to any
5 former municipal employee receiving an annuity from the fund
6 who re-enters service as a municipal employee, unless he
7 renders at least 3 years of additional service after the date
8 of re-entry.
9 (f) An employee in service on July 1, 1947, or who
10 became a contributor after July 1, 1947 and before attainment
11 of age 70, who withdraws after age 65, with less than 20
12 years of service for whom the annuity has been fixed under
13 this Article shall, instead of the annuity so fixed, receive
14 an annuity as follows:
15 Such amount as he could have received had the accumulated
16 amounts for annuity been improved with interest at the
17 effective rate to the date of his withdrawal, or to
18 attainment of age 70, whichever is earlier, and had the city
19 contributed to such earlier date for age and service annuity
20 the amount that it would have contributed had he been under
21 age 65, after the date his annuity was fixed in accordance
22 with this Article, and assuming his annuity were computed
23 from such accumulations as of his age on such earlier date.
24 The annuity so computed shall not exceed the annuity which
25 would be payable under the other provisions of this Section
26 if the employee was credited with 20 years of service and
27 would qualify for annuity thereunder.
28 (g) Instead of the annuity provided in this Article, an
29 employee having attained age 65 with at least 15 years of
30 service who withdraws from service on or after July 1, 1971
31 and whose annuity computed under other provisions of this
32 Article is less than the amount provided under this
33 paragraph, is entitled to a minimum annuity for life equal to
34 1% of the highest average annual salary, as salary is defined
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1 and limited in this Section for any 4 consecutive years
2 within the last 10 years of service for each year of service,
3 plus the sum of $25 for each year of service. The annuity
4 shall not exceed 60% of such highest average annual salary.
5 (h) The minimum annuities provided under this Section
6 shall be paid in equal monthly installments.
7 (i) The amendatory provisions of part (b) and (g) of
8 this Section shall be effective July 1, 1971 and apply in the
9 case of every qualifying employee withdrawing on or after
10 July 1, 1971.
11 (j) The amendatory provisions of this amendatory Act of
12 1985 (P.A. 84-23) relating to the discount of annuity because
13 of retirement prior to attainment of age 60, and to the
14 retirement formula, for those born before January 1, 1936,
15 shall apply only to qualifying employees withdrawing on or
16 after July 18, 1985.
17 (k) Beginning on the effective date of this amendatory
18 Act of 1997 January 1, 1991, the minimum amount of employee's
19 annuity shall be $550 $350 per month for life for the
20 following classes of employees, without regard to the fact
21 that withdrawal occurred prior to the effective date of this
22 amendatory Act of 1997 January 1, 1991:
23 (1) any employee annuitant alive and receiving a
24 life annuity on the effective date of this amendatory Act
25 of 1997 January 1, 1991, except a reciprocal annuity;
26 (2) any employee annuitant alive and receiving a
27 term annuity on the effective date of this amendatory Act
28 of 1997 January 1, 1991, except a reciprocal annuity;
29 (3) any employee annuitant alive and receiving a
30 reciprocal annuity on the effective date of this
31 amendatory Act of 1997 January 1, 1991, whose service in
32 this fund is at least 5 years;
33 (4) any employee annuitant withdrawing after age 60
34 on or after the effective date of this amendatory Act of
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1 1997 January 1, 1991, with at least 10 years of service
2 in this fund.
3 The increases granted under items (1), (2) and (3) of
4 this subsection (k) shall not be limited by any other Section
5 of this Act.
6 (Source: P.A. 85-964; 86-1488.)
7 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
8 Sec. 8-150.1. Minimum annuities for widows. The widow
9 (otherwise eligible for widow's annuity under other Sections
10 of this Article 8) of an employee hereinafter described, who
11 retires from service or dies while in the service subsequent
12 to the effective date of this amendatory provision, and for
13 which widow the amount of widow's annuity and widow's prior
14 service annuity combined, fixed or provided for such widow
15 under other provisions of this Article is less than the
16 amount provided in this Section, shall, from and after the
17 date her otherwise provided annuity would begin, in lieu of
18 such otherwise provided widow's and widow's prior service
19 annuity, be entitled to the following indicated amount of
20 annuity:
21 (a) The widow of any employee who dies while in service
22 on or after the date on which he attains age 60 if the death
23 occurs before July 1, 1990, or on or after the date on which
24 he attains age 55 if the death occurs on or after July 1,
25 1990, with at least 20 years of service, or on or after the
26 date on which he attains age 50 if the death occurs on or
27 after the effective date of this amendatory Act of 1997 with
28 at least 30 years of service, shall be entitled to an annuity
29 equal to one-half of the amount of annuity which her deceased
30 husband would have been entitled to receive had he withdrawn
31 from the service on the day immediately preceding the date of
32 his death, conditional upon such widow having attained the
33 age of 60 or more years on such date if the death occurs
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1 before July 1, 1990, or age 55 or more if the death occurs on
2 or after July 1, 1990. Such amount of widow's annuity shall
3 not, however, exceed the sum of $500 a month if the
4 employee's death in service occurs before January 23, 1987.
5 The widow's annuity shall not be limited to a maximum dollar
6 amount if the employee's death in service occurs on or after
7 January 23, 1987.
8 If the employee dies in service before July 1, 1990, and
9 if such widow of such described employee shall not be 60 or
10 more years of age on such date of death, the amount provided
11 in the immediately preceding paragraph for a widow 60 or more
12 years of age, shall, in the case of such younger widow, be
13 reduced by 0.25% for each month that her then attained age is
14 less than 60 years if the employee was born before January 1,
15 1936 or dies in service on or after January 1, 1988, or by
16 0.5% for each month that her then attained age is less than
17 60 years if the employee was born on or after July 1, 1936
18 and dies in service before January 1, 1988.
19 If the employee dies in service on or after July 1, 1990,
20 and if the widow of the employee has not attained age 55 on
21 or before the employee's date of death, the amount otherwise
22 provided in this subsection (a) shall be reduced by 0.25% for
23 each month that her then attained age is less than 55 years.
24 (b) The widow of any employee who dies subsequent to the
25 date of his retirement on annuity, and who so retired on or
26 after the date on which he attained the age of 60 or more
27 years if retirement occurs before July 1, 1990, or on or
28 after the date on which he attained age 55 if retirement
29 occurs on or after July 1, 1990, with at least 20 years of
30 service, or on or after the date on which he attained age 50
31 if the retirement occurs on or after the effective date of
32 this amendatory Act of 1997 with at least 30 years of
33 service, shall be entitled to an annuity equal to one-half of
34 the amount of annuity which her deceased husband received as
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1 of the date of his retirement on annuity, conditional upon
2 such widow having attained the age of 60 or more years on the
3 date of her husband's retirement on annuity if retirement
4 occurs before July 1, 1990, or age 55 or more if retirement
5 occurs on or after July 1, 1990. Such amount of widow's
6 annuity shall not, however, exceed the sum of $500 a month if
7 the employee's death occurs before January 23, 1987. The
8 widow's annuity shall not be limited to a maximum dollar
9 amount if the employee's death occurs on or after January 23,
10 1987, regardless of the date of retirement; provided that, if
11 retirement was before January 23, 1987, the employee or
12 eligible spouse repays the excess spouse refund with interest
13 at the effective rate from the date of refund to the date of
14 repayment.
15 If the date of the employee's retirement on annuity is
16 before July 1, 1990, and if such widow of such described
17 employee shall not have attained such age of 60 or more years
18 on such date of her husband's retirement on annuity, the
19 amount provided in the immediately preceding paragraph for a
20 widow 60 or more years of age on the date of her husband's
21 retirement on annuity, shall, in the case of such then
22 younger widow, be reduced by 0.25% for each month that her
23 then attained age was less than 60 years if the employee was
24 born before January 1, 1936 or withdraws from service on or
25 after January 1, 1988, or by 0.5% for each month that her
26 then attained age is less than 60 years if the employee was
27 born on or after January 1, 1936 and withdraws from service
28 before January 1, 1988.
29 If the date of the employee's retirement on annuity is on
30 or after July 1, 1990, and if the widow of the employee has
31 not attained age 55 by the date of the employee's retirement
32 on annuity, the amount otherwise provided in this subsection
33 (b) shall be reduced by 0.25% for each month that her then
34 attained age is less than 55 years.
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1 (c) The foregoing provisions relating to minimum
2 annuities for widows shall not apply to the widow of any
3 former municipal employee receiving an annuity from the fund
4 on August 9, 1965 or on the effective date of this amendatory
5 provision, who re-enters service as a municipal employee,
6 unless such employee renders at least 3 years of additional
7 service after the date of re-entry.
8 (d) In computing the amount of annuity which the husband
9 specified in the foregoing paragraphs (a) and (b) of this
10 Section would have been entitled to receive, or received,
11 such amount shall be the annuity to which such husband would
12 have been, or was entitled, before reduction in the amount of
13 his annuity for the purposes of the voluntary optional
14 reversionary annuity provided for in Sec. 8-139 of this
15 Article, if such option was elected.
16 (e) The amendatory provisions of part (a) and (b) of
17 this Section (increasing the maximum from $300 to $400 a
18 month) shall be effective as of July 1, 1971, and apply in
19 the case of every qualifying widow whose husband dies while
20 in service on or after July 1, 1971 or withdraws and enters
21 on annuity on or after July 1, 1971.
22 (f) The amendments of part (a) and (b) of this Section
23 by this amendatory Act of 1983 (increasing the maximum from
24 $400 to $500 a month) shall be effective as of January 1,
25 1984 and shall apply in the case of every qualifying widow
26 whose husband dies while in the service on or after January
27 1, 1984, or withdraws and enters on annuity on or after
28 January 1, 1984.
29 (g) The amendatory provisions of this amendatory Act of
30 1985 relating to annuity discount because of age for widows
31 of employees born before January 1, 1936, shall apply only to
32 qualifying widows of employees withdrawing or dying in
33 service on or after July 18, 1985.
34 (h) Beginning on the effective date of this amendatory
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1 Act of 1997 January 1, 1991, the minimum amount of widow's
2 annuity shall be $500 $300 per month for life for the
3 following classes of widows, without regard to the fact that
4 the death of the employee occurred prior to the effective
5 date of this amendatory Act of 1997 January 1, 1991:
6 (1) any widow annuitant alive and receiving a life
7 annuity on the effective date of this amendatory Act of
8 1997 January 1, 1991, except a reciprocal annuity;
9 (2) any widow annuitant alive and receiving a term
10 annuity on the effective date of this amendatory Act of
11 1997 January 1, 1991, except a reciprocal annuity;
12 (3) any widow annuitant alive and receiving a
13 reciprocal annuity on the effective date of this
14 amendatory Act of 1997 January 1, 1991, whose employee
15 spouse's service in this fund was at least 5 years;
16 (4) the widow of an employee with at least 10 years
17 of service in this fund who dies after retirement, if the
18 retirement occurred prior to the effective date of this
19 amendatory Act of 1997 January 1, 1991;
20 (5) the widow of an employee with at least 10 years
21 of service in this fund who dies after retirement, if
22 withdrawal occurs on or after the effective date of this
23 amendatory Act of 1997 January 1, 1991;
24 (6) the widow of an employee who dies in service
25 with at least 5 years of service in this fund, if the
26 death in service occurs on or after the effective date of
27 this amendatory Act of 1997 January 1, 1991.
28 The increases granted under items (1), (2), (3) and (4)
29 of this subsection (h) shall not be limited by any other
30 Section of this Act.
31 (i) The widow of an employee who retired or died in
32 service on or after January 1, 1985 and before July 1, 1990,
33 at age 55 or older, and with at least 35 years of service
34 credit, shall be entitled to have her widow's annuity
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1 increased, effective January 1, 1991, to an amount equal to
2 50% of the retirement annuity that the deceased employee
3 received on the date of retirement, or would have been
4 eligible to receive if he had retired on the day preceding
5 the date of his death in service, provided that if the widow
6 had not attained age 60 by the date of the employee's
7 retirement or death in service, the amount of the annuity
8 shall be reduced by 0.25% for each month that her then
9 attained age was less than age 60 if the employee's
10 retirement or death in service occurred on or after January
11 1, 1988, or by 0.5% for each month that her attained age is
12 less than age 60 if the employee's retirement or death in
13 service occurred prior to January 1, 1988. However, in cases
14 where a refund of excess contributions for widow's annuity
15 has been paid by the Fund, the increase in benefit provided
16 by this subsection (i) shall be contingent upon repayment of
17 the refund to the Fund with interest at the effective rate
18 from the date of refund to the date of payment.
19 (j) If a deceased employee is receiving a retirement
20 annuity at the time of death and that death occurs on or
21 after the effective date of this amendatory Act of 1997, the
22 widow may elect to receive, in lieu of any other annuity
23 provided under this Article, 50% of the deceased employee's
24 retirement annuity at the time of death reduced by 0.25% for
25 each month that the widow's age on the date of death is less
26 than 55. However, in cases where a refund of excess
27 contributions for widow's annuity has been paid by the Fund,
28 the benefit provided by this subsection (j) is contingent
29 upon repayment of the refund to the Fund with interest at the
30 effective rate from the date of refund to the date of
31 payment.
32 (Source: P.A. 85-964; 86-1488.)
33 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
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1 Sec. 8-159. Amount of child's annuity. Beginning on the
2 effective date of this amendatory Act of 1997 January 1,
3 1988, the amount of a child's annuity shall be $220 $120 per
4 month for each child while the spouse of the deceased
5 employee parent survives, and $250 $150 per month for each
6 child when no such spouse survives, and shall be subject to
7 the following limitations:
8 (1) If the combined annuities for the widow and children
9 of an employee whose death resulted from injury incurred in
10 the performance of duty, or for the children where a widow
11 does not exist, exceed 70% of the employee's final monthly
12 salary, the annuity for each child shall be reduced pro rata
13 so that the combined annuities for the family shall not
14 exceed such limitation.
15 (2) For the family of an employee whose death is the
16 result of any cause other than injury incurred in the
17 performance of duty, in which the combined annuities for the
18 family exceed 60% of the employee's final monthly salary, the
19 annuity for each child shall be reduced pro rata so that the
20 combined annuities for the family shall not exceed such
21 limitation.
22 (3) The increase in child's annuity provided by this
23 amendatory Act of 1997 1987 shall apply to all child's
24 annuities being paid on or after the effective date of this
25 amendatory Act of 1997. January 1, 1988, subject to The
26 above limitations on the combined annuities for a family in
27 parts (1) and (2) of this Section do not apply to families of
28 employees who died before the effective date of this
29 amendatory Act of 1997.
30 (4) The amendments to parts (1) and (2) of this Section
31 made by Public Act 84-1472 (eliminating the further
32 limitation that the monthly combined family amount shall not
33 exceed $500 plus 10% of the employee's final monthly salary)
34 shall apply in the case of every qualifying child whose
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1 employee parent dies in the service or enters on annuity on
2 or after January 23, 1987.
3 (Source: P.A. 85-964.)
4 (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
5 Sec. 8-164.1. Group health benefit.
6 (a) For the purposes of this Section: (1) "annuitant"
7 means a person receiving an age and service annuity, a prior
8 service annuity, a widow's annuity, a widow's prior service
9 annuity, or a minimum annuity on or after January 1, 1988,
10 under Article 5, 6, 8 or 11, by reason of previous employment
11 by the City of Chicago (hereinafter, in this Section, "the
12 city"); (2) "Medicare Plan annuitant" means an annuitant
13 described in item (1) who is eligible for Medicare benefits;
14 and (3) "non-Medicare Plan annuitant" means an annuitant
15 described in item (1) who is not eligible for Medicare
16 benefits.
17 (b) The city shall continue to offer group health
18 benefits to annuitants and their eligible dependents through
19 June 30, 2002. The same basic city health care plan
20 available as of June 30, 1988 (hereinafter called the basic
21 city plan) shall cease to be a plan offered by the city,
22 except as specified in subparagraphs (4) and (5) below, and
23 shall be closed to new enrollment or transfer of coverage for
24 any non-Medicare Plan annuitant as of the effective date of
25 this amendatory Act of 1997. The city shall offer
26 non-Medicare Plan annuitants and their eligible dependents
27 the option of enrolling in its Annuitant Preferred Provider
28 Plan, and may offer additional plans for any annuitant. The
29 city may amend, modify, or terminate any of its additional
30 plans at its sole discretion. If the city offers more than
31 one annuitant plan, the city shall allow annuitants to
32 convert coverage from one city annuitant plan to another,
33 except the basic city plan, during times designated by the
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1 city, which periods of time shall occur at least annually.
2 For the period dating from the effective date of this
3 amendatory Act of 1997 through June 30, 2002, monthly premium
4 rates may be increased for annuitants during the time of
5 their participation in non-Medicare plans, except as provided
6 in subparagraphs (1) through (4) of this subsection.
7 (1) For non-Medicare Plan annuitants who retired
8 prior to January 1, 1988, the annuitant's share of
9 monthly premium for non-Medicare Plan coverage only shall
10 not exceed the highest premium rate chargeable under any
11 city non-Medicare Plan annuitant coverage as of December
12 1, 1996.
13 (2) For non-Medicare Plan annuitants who retire on
14 or after January 1, 1988, the annuitant's share of
15 monthly premium for non-Medicare Plan coverage only shall
16 be the rate in effect on December 1, 1996, with monthly
17 premium increases to take effect no sooner than April 1,
18 1998 at the lower of (i) the premium rate determined
19 pursuant to subsection (g) or (ii) 10% of the immediately
20 previous month's rate for similar coverage.
21 (3) In no event shall any non-Medicare Plan
22 annuitant's share of monthly premium for non-Medicare
23 Plan coverage exceed 10% of the annuitant's monthly
24 annuity.
25 (4) Non-Medicare Plan annuitants who are enrolled
26 in the basic city plan as of July 1, 1998 may remain in
27 the basic city plan, if they so choose, on the condition
28 that they are not entitled to the caps on rates set forth
29 in subparagraphs (1) through (3), and their premium rate
30 shall be the rate determined in accordance with
31 subsections (c) and (g).
32 (5) Medicare Plan annuitants who are currently
33 enrolled in the basic city plan for Medicare eligible
34 annuitants may remain in that plan, if they so choose,
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1 through June 30, 2002. Annuitants shall not be allowed
2 to enroll in or transfer into the basic city plan for
3 Medicare eligible annuitants on or after July 1, 1999.
4 The city shall continue to offer annuitants a
5 supplemental Medicare Plan for Medicare eligible
6 annuitants through June 30, 2002, and the city may offer
7 additional plans to Medicare eligible annuitants in its
8 sole discretion. All Medicare Plan annuitant monthly
9 rates shall be determined in accordance with subsections
10 (c) and (g).
11 (c) Effective the date the initial increased annuitant
12 payments pursuant to subsection (g) take effect, The city
13 shall pay 50% of the aggregated costs of the claims or
14 premiums, whichever is applicable, as determined in
15 accordance with subsection (g), of annuitants and their
16 dependents under all health care plans offered by the city.
17 The city may reduce its obligation by application of price
18 reductions obtained as a result of financial arrangements
19 with providers or plan administrators. The claims or
20 premiums of all annuitants and their dependents under all of
21 the plans offered by the city shall be aggregated for the
22 purpose of calculating the city's payment required under this
23 subsection, as well as for the setting of rates of payment
24 for annuitants as required under subsection (g).
25 (d) From January 1, 1988 until December 31, 1992, the
26 board shall pay to the city on behalf of each of the board's
27 annuitants who chooses to participate in any of the city's
28 plans the following amounts: up to a maximum of $65 per month
29 for each such annuitant who is not qualified to receive
30 medicare benefits, and up to a maximum of $35 per month for
31 each such annuitant who is qualified to receive medicare
32 benefits. From January 1, 1993 until June 30, 2002 December
33 31, 1997, the board shall pay to the city on behalf of each
34 of the board's annuitants who chooses to participate in any
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1 of the city's plans the following amounts: up to a maximum of
2 $75 per month for each such annuitant who is not qualified to
3 receive medicare benefits, and up to a maximum of $45 per
4 month for each such annuitant who is qualified to receive
5 medicare benefits.
6 For the period January 1, 1988 through the effective date
7 of this amendatory Act of 1989, payments under this Section
8 shall be reduced by the amounts paid by or on behalf of the
9 board's annuitants covered during that period.
10 Commencing on the effective date of this amendatory Act
11 of 1989, the board is authorized to pay to the board of
12 education on behalf of each person who chooses to participate
13 in the board of education's plan the amounts specified in
14 this subsection (d) during the years indicated. For the
15 period January 1, 1988 through the effective date of this
16 amendatory Act of 1989, the board shall pay to the board of
17 education annuitants who participate in the board of
18 education's health benefits plan for annuitants the following
19 amounts: $10 per month to each annuitant who is not qualified
20 to receive medicare benefits, and $14 per month to each
21 annuitant who is qualified to receive medicare benefits.
22 The payments described in this subsection shall be paid
23 from the tax levy authorized under Section 8-189; such
24 amounts shall be credited to the reserve for group hospital
25 care and group medical and surgical plan benefits, and all
26 payments to the city required under this subsection shall be
27 charged against it.
28 (e) The city's obligations under subsections (b) and (c)
29 shall terminate on June 30, 2002 December 31, 1997, except
30 with regard to covered expenses incurred but not paid as of
31 that date. This subsection shall not affect other
32 obligations that may be imposed by law.
33 (f) The group coverage plans described in this Section
34 are not and shall not be construed to be pension or
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1 retirement benefits for purposes of Section 5 of Article XIII
2 of the Illinois Constitution of 1970.
3 (g) For each annuitant plan offered by the city, the
4 aggregate cost of claims, as reflected in the claim records
5 of the plan administrator, and premiums for each calendar
6 year from 1989 through 1997 of all annuitants and dependents
7 covered by the city's group health care plans shall be
8 estimated by the city, based upon a written determination by
9 a qualified independent actuary to be appointed and paid by
10 the city and the board. If the such estimated annual cost
11 for each annuitant plan offered by the city is more than the
12 estimated amount to be contributed by the city for that plan
13 pursuant to subsections (b) and (c) during that year plus the
14 estimated amounts to be paid pursuant to subsection (d) and
15 by the other pension boards on behalf of other participating
16 annuitants, the difference shall be paid by all participating
17 annuitants participating in the plan, except as provided in
18 subsection (b). The city, based upon the determination of
19 the independent actuary, shall set the monthly amounts to be
20 paid by the participating annuitants. The initial
21 determination of such payments shall be prospective only and
22 shall be based upon the estimated costs for the balance of
23 the year. The board may deduct the amounts to be paid by its
24 annuitants from the participating annuitants' monthly
25 annuities.
26 If it is determined from the city's annual audit, or from
27 audited experience data, that the total amount paid by all
28 participating annuitants was more or less than the difference
29 between (1) the cost of providing the group health care
30 plans, and (2) the sum of the amount to be paid by the city
31 as determined under subsection (c) and the amounts paid by
32 all the pension boards, then the independent actuary and the
33 city shall account for the excess or shortfall in the next
34 year's payments by annuitants, except as provided in
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1 subsection (b).
2 (h) An annuitant may elect to terminate coverage in a
3 plan at the end of any month any time, which election shall
4 terminate the annuitant's obligation to contribute toward
5 payment of the excess described in subsection (g).
6 (i) The city shall advise the board of all proposed
7 premium increases for health care at least 75 days prior to
8 the effective date of the change, and any increase shall be
9 prospective only.
10 (Source: P.A. 86-273.)
11 (40 ILCS 5/9-101) (from Ch. 108 1/2, par. 9-101)
12 Sec. 9-101. Creation of fund. In each county of more
13 than 3,000,000 500,000 inhabitants a County Employees' and
14 Officers' Annuity and Benefit Fund shall be created, set
15 apart, maintained and administered, in the manner prescribed
16 in this Article, for the benefit of the employees and
17 officers herein designated and their beneficiaries.
18 (Source: Laws 1963, p. 161.)
19 (40 ILCS 5/9-120.1 new)
20 Sec. 9-120.1. CTA - continued participation; military
21 service credit.
22 (a) A person who (i) has at least 20 years of creditable
23 service in the Fund, (ii) has not begun receiving a
24 retirement annuity under this Article, and (iii) is employed
25 in a position under which he or she is eligible to actively
26 participate in the retirement system established under
27 Section 22-101 of this Code may elect, after he or she ceases
28 to be a participant but in no event after June 1, 1998, to
29 continue his or her participation in this Fund while employed
30 by the Chicago Transit Authority, for up to 10 additional
31 years, by making written application to the Board.
32 (b) A person who elects to continue participation under
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1 this Section shall make contributions directly to the Fund,
2 not less frequently than monthly, based on the person's
3 actual Chicago Transit Authority compensation and the rates
4 applicable to employees under this Fund. Creditable service
5 shall be granted to any person for the period, not exceeding
6 10 years, during which the person continues participation in
7 this Fund under this Section and continues to make
8 contributions as required. For periods of service
9 established under this Section, the person's actual Chicago
10 Transit Authority compensation shall be considered his or her
11 salary for purposes of calculating benefits under this
12 Article.
13 (c) A person who elects to continue participation under
14 this Section may cancel that election at any time.
15 (d) A person who elects to continue participation under
16 this Section may establish service credit in this Fund for
17 periods of employment by the Chicago Transit Authority prior
18 to that election, by applying in writing and paying to the
19 Fund an amount representing employee contributions for the
20 service being established, based on the person's actual
21 Chicago Transit Authority compensation and the rates then
22 applicable to employees under this Fund, without interest.
23 (e) A person who qualifies under this Section may elect
24 to purchase credit for up to 4 years of military service,
25 whether or not that service followed service as a county
26 employee. The military service need not have been served in
27 wartime, but the employee must not have been dishonorably
28 discharged. To establish this creditable service the
29 applicant must pay to the Fund, on or before July 1, 1998, an
30 amount determined by the Fund to represent the employee
31 contributions for the creditable service, based on the
32 employee's rate of compensation on his or her last day of
33 service as a contributor before the military service or his
34 or her salary on the first day of service following the
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1 military service, whichever is greater, plus interest at the
2 effective rate from the date of discharge to the date of
3 payment. For the purposes of this subsection, "military
4 service" includes service in the United States armed forces
5 reserves.
6 (f) Notwithstanding any other provision of this Section,
7 a person may not establish creditable service under this
8 Section for any period for which the person receives credit
9 under any other public employee retirement system, including
10 the retirement system established under Section 22-101 of
11 this Code, unless the credit under that retirement system has
12 been irrevocably relinquished.
13 (40 ILCS 5/9-121.13)
14 Sec. 9-121.13. State's Attorney employee Transfer of
15 Article 5 credits.
16 (a) An active participant in the Fund who was employed
17 by the office of the Cook County State's Attorney on January
18 1, 1995 may transfer to this Fund credits and creditable
19 service accumulated under the pension fund established under
20 Article 5 of this Code, as provided in Section 5-237, by
21 submitting a written application to the Fund and paying to
22 the Fund the amount, if any, by which the amount transferred
23 to the Fund under Section 5-237 is less than the amount of
24 employee and employer contributions that would have been
25 received by the Fund if the service being transferred had
26 been served as a participant of this Fund, including interest
27 at the rate of 6% per year, compounded annually, from the
28 date of the service to the date of payment.
29 (b) Until July 1, 1998, an active participant in the
30 Fund who is a member of the county police department may
31 transfer to this Fund credits and creditable service
32 accumulated under the pension fund established under Article
33 5 of this Code, as provided in Section 5-237, by submitting a
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1 written application to the Fund and paying to the Fund the
2 amount, if any, by which the amount transferred to the Fund
3 under Section 5-237 is less than the amount of employee and
4 employer contributions that would have been received by the
5 Fund if the service being transferred had been served as a
6 participant of this Fund, including interest at the rate of
7 6% per year, compounded annually, from the date of the
8 service to the date of payment.
9 (c) The applicant may elect to have the service
10 transferred be deemed service as a member of the county
11 police department; if the applicant so elects, the required
12 payment shall be calculated on the basis of the rates
13 applicable to members of the county police department.
14 (Source: P.A. 89-136, eff. 7-14-95.)
15 (40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
16 Sec. 9-133. Automatic increase in annuity.
17 (a) An employee who retired or retires from service
18 after December 31, 1959, having attained age 60 or more or,
19 beginning January 1, 1991, having attained 30 or more years
20 of creditable service, shall, in the month of January of the
21 year following the year in which the first anniversary of
22 retirement occurs, have his then fixed and payable monthly
23 annuity increased by 1 1/2%, and such first fixed annuity as
24 granted at retirement increased by a further 1 1/2% in
25 January of each year thereafter. Beginning with January of
26 the year 1972, such increases shall be at the rate of 2% in
27 lieu of the aforesaid specified 1 1/2%. Beginning with
28 January of the year 1982, such increases shall be at the rate
29 of 3% in lieu of the aforesaid specified 2%. Beginning
30 January 1, 1998, these increases shall be at the rate of 3%
31 of the current amount of the annuity, including any previous
32 increases received under this Article, without regard to
33 whether the annuitant is in service on or after the effective
-53- SRS90HB0313MNbmam01
1 date of this amendatory Act of 1997.
2 An employee who retires on annuity before age 60 and,
3 beginning January 1, 1991, with less than 30 years of
4 creditable service shall receive such increases beginning
5 with January of the year immediately following the year in
6 which he attains the age of 60 years. An employee who
7 retires on annuity before age 60 and before January 1, 1991,
8 with at least 30 years of creditable service, shall be
9 entitled to receive the first increase under this subsection
10 no later than January 1, 1993.
11 For an employee who, in accordance with the provisions of
12 Section 9-108.1 of this Act, shall have become a member of
13 the State System established under Article 14 on February 1,
14 1974, the first such automatic increase shall begin in
15 January of 1975.
16 (b) Subsection (a) is not applicable to an employee
17 retiring and receiving a term annuity, as defined in this
18 Act, nor to any otherwise qualified employee who retires
19 before he makes employee contributions (at the 1/2 of 1% rate
20 as provided in this Section) for this additional annuity for
21 not less than the equivalent of one full year. Such
22 employee, however, shall make arrangement to pay to the fund
23 a balance of such contributions, based on his final salary,
24 as will bring such 1/2 of 1% contributions, computed without
25 interest, to the equivalent of one year's contributions.
26 Beginning with the month of January, 1960, each employee
27 shall contribute by means of salary deductions 1/2 of 1% of
28 each salary payment, concurrently with and in addition to the
29 employee contributions otherwise provided for annuity
30 purposes.
31 Each such additional contribution shall be credited to an
32 account in the prior service annuity reserve, to be used,
33 together with county contributions, to defray the cost of the
34 specified annuity increments. Any balance in such account as
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1 of the beginning of each calendar year shall be credited with
2 interest at the rate of 3% per annum.
3 Such additional employee contributions are not
4 refundable, except to an employee who withdraws and applies
5 for refund under this Article, or applies for annuity, and
6 also in cases where a term annuity becomes payable. In such
7 cases his contributions shall be refunded, without interest,
8 and charged to the prior service annuity reserve.
9 (Source: P.A. 87-794; 87-1265.)
10 (40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
11 Sec. 9-133.1. Automatic increases in annuity for certain
12 heretofore retired participants. A retired employee retired
13 at age 55 or over and who (a) is receiving annuity based on a
14 service credit of 20 or more years, and (b) does not qualify
15 for the automatic increases in annuity provided for in Sec.
16 9-133 of this Article, and (c) elects to make a contribution
17 to the Fund at a time and manner prescribed by the Retirement
18 Board, of a sum equal to 1% of the final average monthly
19 salary forming the basis of the calculation of their annuity
20 multiplied by years of credited service, or 1% of their final
21 monthly salary multiplied by years of credited service in any
22 case where the final average salary is not used in the
23 calculation, shall have his original fixed and payable
24 monthly amount of annuity increased in January of the year
25 following the year in which he attains the age of 65 years,
26 if such age of 65 years is attained in the year 1969 or
27 later, by an amount equal to 1 1/2%, and by an equal
28 additional 1 1/2% in January of each year thereafter.
29 Beginning with January of the year 1972, such increases shall
30 be at the rate of 2% in lieu of the aforesaid specified 1
31 1/2%. Beginning with January of the year 1982, such
32 increases shall be at the rate of 3% in lieu of the aforesaid
33 specified 2%. Beginning January 1, 1998, these increases
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1 shall be at the rate of 3% of the current amount of the
2 annuity, including any previous increases received under this
3 Article, without regard to whether the annuitant is in
4 service on or after the effective date of this amendatory Act
5 of 1997.
6 In those cases in which the retired employee receiving
7 annuity has attained the age of 66 or more years in the year
8 1969, he shall have such annuity increased in January of the
9 year 1970 by an amount equal to 1 1/2% multiplied by the
10 number equal to the number of months of January elapsing from
11 and including January of the year immediately following the
12 year he attained the age of 65 years if retired at or prior
13 to age 65, or from and including January of the year
14 immediately following the year of retirement if retired at an
15 age greater than 65 years, to and including January of the
16 year 1970, and by an equal additional 1 1/2% in January of
17 each year thereafter. Beginning with January of the year
18 1972, such increases shall be at the rate of 2% in lieu of
19 the aforesaid specified 1 1/2%. Beginning with January of
20 the year 1982, such increases shall be at the rate of 3% in
21 lieu of the aforesaid specified 2%. Beginning January 1,
22 1998, these increases shall be at the rate of 3% of the
23 current amount of the annuity, including any previous
24 increases received under this Article, without regard to
25 whether the annuitant is in service on or after the effective
26 date of this amendatory Act of 1997.
27 To defray the annual cost of such increases, the annual
28 interest income of the Fund, accruing from investments held
29 by the Fund, exclusive of gains or losses on sales or
30 exchanges of assets during the year, over and above 4% a
31 year, shall be used to the extent necessary and available to
32 finance the cost of such increases for the following year,
33 and such amount shall be transferred as of the end of each
34 year, beginning with the year 1969, to a Fund account
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1 designated as the Supplementary Payment Reserve from the
2 Investment and Interest Reserve set forth in Sec. 9-214. The
3 sums contributed by annuitants as provided for in this
4 Section shall also be placed in the aforesaid Supplementary
5 Payment Reserve and shall be applied for and used for the
6 purposes of such Fund account, together with the aforesaid
7 interest.
8 In the event the monies in the Supplementary Payment
9 Reserve in any year arising from: (1) the available interest
10 income as defined hereinbefore and accruing in the preceding
11 year above 4% a year and (2) the contributions by retired
12 persons, as set forth hereinbefore, are insufficient to make
13 the total payments to all persons estimated to be entitled to
14 the annuity increases specified hereinbefore, then (3) any
15 interest earnings over 4% a year beginning with the year 1969
16 which were not previously used to finance such increases and
17 which were transferred to the Prior Service Annuity Reserve
18 may be used to the extent necessary and available to provide
19 sufficient funds to finance such increases for the current
20 year, and such sums shall be transferred from the Prior
21 Service Annuity Reserve.
22 In the event the total monies available in the
23 Supplementary Payment Reserve from the preceding indicated
24 sources are insufficient to make the total payments to all
25 persons entitled to such increases for the year, a
26 proportionate amount computed as the ratio of the monies
27 available to the total of the total payments for that year
28 shall be paid to each person for that year.
29 The Fund shall be obligated for the payment of the
30 increases in annuity as provided for in this Section only to
31 the extent that the assets for such purpose, as specified
32 herein, are available.
33 (Source: P.A. 83-1362.)
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1 (40 ILCS 5/9-134.3 new)
2 Sec. 9-134.3. Early retirement incentives.
3 (a) To be eligible for the benefits provided in this
4 Section, a person must:
5 (1) be a current contributing member of the Fund
6 established under this Article who, on May 1, 1997 and
7 within 30 days prior to the date of retirement, is (i) in
8 active payroll status in a position of employment under
9 this Article or (ii) receiving disability benefits under
10 Section 9-156 or 9-157;
11 (2) have not previously retired from the Fund;
12 (3) file with the Board before October 1, 1997, a
13 written application requesting the benefits provided in
14 this Section;
15 (4) elect to retire under this Section on or after
16 September 1, 1997 and on or before February 28, 1998 (or
17 the date established under subsection (d), if
18 applicable);
19 (5) have attained age 55 on or before the date of
20 retirement and before February 28, 1998; and
21 (6) have at least 10 years of creditable service in
22 the Fund, excluding service in any of the other
23 participating systems under the Retirement Systems
24 Reciprocal Act, by the effective date of the retirement
25 annuity or February 28, 1998, whichever occurs first.
26 (b) An employee who qualifies for the benefits provided
27 under this Section shall be entitled to the following:
28 (1) The employee's retirement annuity, as
29 calculated under the other provisions of this Article,
30 shall be increased at the time of retirement by an amount
31 equal to 1% of the employee's average annual salary for
32 the highest 4 consecutive years within the last 10 years
33 of service, multiplied by the employee's number of years
34 of service credit in this Fund up to a maximum of 10
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1 years; except that the total retirement annuity,
2 including any additional benefits elected under Section
3 9-121.6 or 9-179.3, shall not exceed 80% of that highest
4 average annual salary.
5 (2) If the employee's retirement annuity is
6 calculated under Section 9-134, the employee shall not be
7 subject to the reduction in retirement annuity because of
8 retirement below age 60 that is otherwise required under
9 that Section.
10 (c) A person who elects to retire under the provisions
11 of this Section thereby relinquishes his or her right, if
12 any, to have the retirement annuity calculated under the
13 alternative formula formerly set forth in Section 20-122 of
14 the Retirement Systems Reciprocal Act.
15 (d) In the case of an employee whose immediate
16 retirement could jeopardize public safety or create hardship
17 for the employer, the deadline for retirement provided in
18 subdivision (a)(4) of this Section may be extended to a
19 specified date, no later than August 31, 1998, by the
20 employee's department head, with the approval of the
21 President of the County Board. In the case of an employee
22 who is not employed by a department of the County, the
23 employee's "department head", for the purposes of this
24 Section, shall be a person designated by the President of the
25 County Board.
26 (e) Notwithstanding Section 9-161, an annuitant who
27 reenters service under this Article after receiving a
28 retirement annuity based on benefits provided under this
29 Section thereby forfeits the right to continue to receive
30 those benefits and shall have his or her retirement annuity
31 recalculated without the benefits provided in this Section.
32 (f) This Section also applies to the Fund established
33 under Article 10 of this Code.
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1 (40 ILCS 5/9-146.2 new)
2 Sec. 9-146.2. Automatic annual increase in widow's
3 annuity.
4 (a) Every widow's annuity, other than a term annuity,
5 shall be increased on January 1, 1998 or the January 1
6 occurring on or immediately after the first anniversary of
7 the deceased employee's death, whichever occurs later, by an
8 amount equal to 3% of the amount of the annuity.
9 On each January 1 after the date of the initial increase
10 under this Section, the widow's annuity shall be increased by
11 an amount equal to 3% of the amount of the widow's annuity
12 payable at the time of the increase, including any increases
13 previously granted under this Article.
14 (b) Limitations on the maximum amount of widow's annuity
15 imposed under Section 9-150 do not apply to the annual
16 increases provided under this Section.
17 (c) The increases provided under this Section also apply
18 to compensation annuities and supplemental annuities payable
19 under Section 9-147. The increases provided under this
20 Section do not apply to term annuities.
21 (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
22 Sec. 9-179.3. Optional plan of additional benefits and
23 contributions.
24 (a) While this plan is in effect, an employee may
25 establish additional optional credit for additional optional
26 benefits by electing in writing at any time to make
27 additional optional contributions. The employee may
28 discontinue making the additional optional contributions at
29 any time by notifying the fund in writing.
30 (b) Additional optional contributions for the additional
31 optional benefits shall be as follows:
32 (1) For service after the option is elected, an
33 additional contribution of 3% of salary shall be
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1 contributed to the fund on the same basis and under the
2 same conditions as contributions required under Sections
3 9-170 and 9-176.
4 (2) For service before the option is elected, an
5 additional contribution of 3% of the salary for the
6 applicable period of service, plus interest at the
7 effective rate from the date of service to the date of
8 payment. All payments for past service must be paid in
9 full before credit is given. No additional optional
10 contributions may be made for any period of service for
11 which credit has been previously forfeited by acceptance
12 of a refund, unless the refund is repaid in full with
13 interest at the effective rate from the date of refund to
14 the date of repayment.
15 (c) Additional optional benefits shall accrue for all
16 periods of eligible service for which additional
17 contributions are paid in full. The additional benefit shall
18 consist of an additional 1% for each year of service for
19 which optional contributions have been paid, based on the
20 highest average annual salary for any 4 consecutive years
21 within the last 10 years of service immediately preceding the
22 date of withdrawal, to be added to the employee retirement
23 annuity benefits as otherwise computed under this Article.
24 The calculation of these additional benefits shall be subject
25 to the same terms and conditions as are used in the
26 calculation of retirement annuity under Section 9-134. The
27 additional benefit shall be included in the calculation of
28 the automatic annual increase in annuity, and in the
29 calculation of widow's annuity, where applicable. However no
30 additional benefits will be granted which produce a total
31 annuity greater than the applicable maximum established for
32 that type of annuity in this Article, and additional benefits
33 shall not apply to any benefit computed under Section
34 9-128.1.
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1 (d) Refunds of additional optional contributions shall
2 be made on the same basis and under the same conditions as
3 provided under Sections 9-164, 9-166 and 9-167. Interest
4 shall be credited at the effective rate on the same basis and
5 under the same conditions as for other contributions.
6 (e) Optional contributions shall be accounted for in a
7 separate Optional Contribution Reserve.
8 (f) The tax levy, computed under Section 9-169, shall be
9 based on employee contributions including the amount of
10 optional additional employee contributions.
11 (g) Service eligible under this Section may include only
12 service as an employee of the County as defined in Section
13 9-108, and subject to Sections 9-219 and 9-220. No service
14 granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
15 eligible for optional service credit. No optional service
16 credit may be established for any military service, or for
17 any service under any other Article of this Code. Optional
18 service credit may be established for any period of
19 disability paid from this fund, if the employee makes
20 additional optional contributions for such periods of
21 disability.
22 (h) This plan of optional benefits and contributions
23 shall not apply to any former county employee receiving an
24 annuity from the fund, who re-enters service as a County
25 employee, unless he renders at least 3 years of additional
26 service after the date of re-entry.
27 (i) The effective date of the optional plan of
28 additional benefits and contributions shall be July 1, 1985,
29 or the date upon which approval is received from the Internal
30 Revenue Service, whichever is later.
31 (j) This plan of additional benefits and contributions
32 shall expire July 1, 2002 1997. No additional contributions
33 may be made after that date, and no additional benefits will
34 accrue after that date.
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1 (Source: P.A. 86-1027; 87-794.)
2 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
3 Sec. 11-134. Minimum annuities.
4 (a) An employee whose withdrawal occurs after July 1,
5 1957 at age 60 or over, with 20 or more years of service, (as
6 service is defined or computed in Section 11-216), for whom
7 the age and service and prior service annuity combined is
8 less than the amount stated in this section, shall, from and
9 after the date of withdrawal, in lieu of all annuities
10 otherwise provided in this Article, be entitled to receive an
11 annuity for life of an amount equal to 1 2/3% for each year
12 of service, of the highest average annual salary for any 5
13 consecutive years within the last 10 years of service
14 immediately preceding the date of withdrawal; provided, that
15 in the case of any employee who withdraws on or after July 1,
16 1971, such employee age 60 or over with 20 or more years of
17 service, shall be entitled to instead receive an annuity for
18 life equal to 1.67% for each of the first 10 years of
19 service; 1.90% for each of the next 10 years of service;
20 2.10% for each year of service in excess of 20 but not
21 exceeding 30; and 2.30% for each year of service in excess of
22 30, based on the highest average annual salary for any 4
23 consecutive years within the last 10 years of service
24 immediately preceding the date of withdrawal.
25 An employee who withdraws after July 1, 1957 and before
26 January 1, 1988, with 20 or more years of service, before age
27 60, shall be entitled to an annuity, to begin not earlier
28 than age 55, if under such age at withdrawal, as computed in
29 the last preceding paragraph, reduced 0.25% if the employee
30 was born before January 1, 1936, or 0.5% if the employee was
31 born on or after January 1, 1936, for each full month or
32 fractional part thereof that his attained age when such
33 annuity is to begin is less than 60.
-63- SRS90HB0313MNbmam01
1 Any employee born before January 1, 1936 who withdraws
2 with 20 or more years of service, and any employee with 20 or
3 more years of service who withdraws on or after January 1,
4 1988, may elect to receive, in lieu of any other employee
5 annuity provided in this Section, an annuity for life equal
6 to 1.80% for each of the first 10 years of service, 2.00% for
7 each of the next 10 years of service, 2.20% for each year of
8 service in excess of 20, but not exceeding 30, and 2.40% for
9 each year of service in excess of 30, of the highest average
10 annual salary for any 4 consecutive years within the last 10
11 years of service immediately preceding the date of
12 withdrawal, to begin not earlier than upon attained age of 55
13 years, if under such age at withdrawal, reduced 0.25% for
14 each full month or fractional part thereof that his attained
15 age when annuity is to begin is less than 60; except that an
16 employee retiring on or after January 1, 1988, at age 55 or
17 over but less than age 60, having at least 35 years of
18 service, or an employee retiring on or after July 1, 1990, at
19 age 55 or over but less than age 60, having at least 30 years
20 of service, or an employee retiring on or after the effective
21 date of this amendatory Act of 1997, at age 55 or over but
22 less than age 60, having at least 25 years of service, shall
23 not be subject to the reduction in retirement annuity because
24 of retirement below age 60.
25 However, in the case of an employee who retired on or
26 after January 1, 1985 but before January 1, 1988, at age 55
27 or older and with at least 35 years of service, and who was
28 subject under this subsection (a) to the reduction in
29 retirement annuity because of retirement below age 60, that
30 reduction shall cease to be effective January 1, 1991, and
31 the retirement annuity shall be recalculated accordingly.
32 Any employee who withdraws on or after July 1, 1990, with
33 20 or more years of service, may elect to receive, in lieu of
34 any other employee annuity provided in this Section, an
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1 annuity for life equal to 2.20% for each year of service of
2 the highest average annual salary for any 4 consecutive years
3 within the last 10 years of service immediately preceding the
4 date of withdrawal, to begin not earlier than upon attained
5 age of 55 years, if under such age at withdrawal, reduced
6 0.25% for each full month or fractional part thereof that his
7 attained age when annuity is to begin is less than 60; except
8 that an employee retiring at age 55 or over but less than age
9 60, having at least 30 years of service, shall not be subject
10 to the reduction in retirement annuity because of retirement
11 below age 60.
12 Any employee who withdraws on or after the effective date
13 of this amendatory Act of 1997 with 20 or more years of
14 service may elect to receive, in lieu of any other employee
15 annuity provided in this Section, an annuity for life equal
16 to 2.20%, for each year of service, of the highest average
17 annual salary for any 4 consecutive years within the last 10
18 years of service immediately preceding the date of
19 withdrawal, to begin not earlier than upon attainment of age
20 55 (age 50 if the employee has at least 30 years of service),
21 reduced 0.25% for each full month or remaining fractional
22 part thereof that the employee's attained age when annuity is
23 to begin is less than 60; except that an employee retiring at
24 age 50 or over with at least 30 years of service or at age 55
25 or over with at least 25 years of service shall not be
26 subject to the reduction in retirement annuity because of
27 retirement below age 60.
28 The maximum annuity payable under this paragraph (a) of
29 this Section shall not exceed 70% of highest average annual
30 salary in the case of an employee who withdraws prior to July
31 1, 1971, and 75% if withdrawal takes place on or after July
32 1, 1971. For the purpose of the minimum annuity provided in
33 said paragraphs $1,500 shall be considered the minimum annual
34 salary for any year; and the maximum annual salary to be
-65- SRS90HB0313MNbmam01
1 considered for the computation of such annuity shall be
2 $4,800 for any year prior to 1953, $6,000 for the years 1953
3 to 1956, inclusive, and the actual annual salary, as salary
4 is defined in this Article, for any year thereafter.
5 (b) For an employee receiving disability benefit, his
6 salary for annuity purposes under this section shall, for all
7 periods of disability benefit subsequent to the year 1956, be
8 the amount on which his disability benefit was based.
9 (c) An employee with 20 or more years of service, whose
10 entire disability benefit credit period expires prior to
11 attainment of age 55 while still disabled for service, shall
12 be entitled upon withdrawal to the larger of (1) the minimum
13 annuity provided above assuming that he is then age 55, and
14 reducing such annuity to its actuarial equivalent at his
15 attained age on such date, or (2) the annuity provided from
16 his age and service and prior service annuity credits.
17 (d) The minimum annuity provisions as aforesaid shall
18 not apply to any former employee receiving an annuity from
19 the fund, and who re-enters service as an employee, unless he
20 renders at least 3 years of additional service after the date
21 of re-entry.
22 (e) An employee in service on July 1, 1947, or who
23 became a contributor after July 1, 1947 and prior to July 1,
24 1950, or who shall become a contributor to the fund after
25 July 1, 1950 prior to attainment of age 70, who withdraws
26 after age 65 with less than 20 years of service, for whom the
27 annuity has been fixed under the foregoing sections of this
28 Article shall, in lieu of the annuity so fixed, receive an
29 annuity as follows:
30 Such amount as he could have received had the accumulated
31 amounts for annuity been improved with interest at the
32 effective rate to the date of his withdrawal, or to
33 attainment of age 70, whichever is earlier, and had the city
34 contributed to such earlier date for age and service annuity
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1 the amount that would have been contributed had he been under
2 age 65, after the date his annuity was fixed in accordance
3 with this Article, and assuming his annuity were computed
4 from such accumulations as of his age on such earlier date.
5 The annuity so computed shall not exceed the annuity which
6 would be payable under the other provisions of this section
7 if the employee was credited with 20 years of service and
8 would qualify for annuity thereunder.
9 (f) In lieu of the annuity provided in this or in any
10 other section of this Article, an employee having attained
11 age 65 with at least 15 years of service who withdraws from
12 service on or after July 1, 1971 and whose annuity computed
13 under other provisions of this Article is less than the
14 amount provided under this paragraph shall be entitled to
15 receive a minimum annual annuity for life equal to 1% of the
16 highest average annual salary for any 4 consecutive years
17 within the last 10 years of service immediately preceding
18 retirement for each year of his service plus the sum of $25
19 for each year of service. Such annual annuity shall not
20 exceed the maximum percentages stated under paragraph (a) of
21 this Section of such highest average annual salary.
22 (g) Any annuity payable under the preceding subsections
23 of this Section 11-134 shall be paid in equal monthly
24 installments.
25 (h) The amendatory provisions of part (a) and (f) of
26 this Section shall be effective July 1, 1971 and apply in the
27 case of every qualifying employee withdrawing on or after
28 July 1, 1971.
29 (i) The amendatory provisions of this amendatory Act of
30 1985 relating to the discount of annuity because of
31 retirement prior to attainment of age 60 and increasing the
32 retirement formula for those born before January 1, 1936,
33 shall apply only to qualifying employees withdrawing on or
34 after August 16, 1985.
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1 (j) Beginning on the effective date of this amendatory
2 Act of 1997 January 1, 1991, the minimum amount of employee's
3 annuity shall be $550 $350 per month for life for the
4 following classes of employees, without regard to the fact
5 that withdrawal occurred prior to the effective date of this
6 amendatory Act of 1997 January 1, 1991:
7 (1) any employee annuitant alive and receiving a
8 life annuity on the effective date of this amendatory Act
9 of 1997 January 1, 1991, except a reciprocal annuity;
10 (2) any employee annuitant alive and receiving a
11 term annuity on the effective date of this amendatory Act
12 of 1997 January 1, 1991, except a reciprocal annuity;
13 (3) any employee annuitant alive and receiving a
14 reciprocal annuity on the effective date of this
15 amendatory Act of 1997 January 1, 1991, whose service in
16 this fund is at least 5 years;
17 (4) any employee annuitant withdrawing after age 60
18 on or after the effective date of this amendatory Act of
19 1997 January 1, 1991, with at least 10 years of service
20 in this fund.
21 The increases granted under items (1), (2) and (3) of
22 this subsection (j) shall not be limited by any other Section
23 of this Act.
24 (Source: P.A. 85-964; 86-1488.)
25 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
26 Sec. 11-145.1. Minimum annuities for widows. The widow
27 otherwise eligible for widow's annuity under other Sections
28 of this Article 11, of an employee hereinafter described, who
29 retires from service or dies while in the service subsequent
30 to the effective date of this amendatory provision, and for
31 which widow the amount of widow's annuity and widow's prior
32 service annuity combined, fixed or provided for such widow
33 under other provisions of said Article 11 is less than the
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1 amount hereinafter provided in this section, shall, from and
2 after the date her otherwise provided annuity would begin, in
3 lieu of such otherwise provided widow's and widow's prior
4 service annuity, be entitled to the following indicated
5 amount of annuity:
6 (a) The widow of any employee who dies while in service
7 on or after the date on which he attains age 60 if the death
8 occurs before July 1, 1990, or on or after the date on which
9 he attains age 55 if the death occurs on or after July 1,
10 1990, with at least 20 years of service, or on or after the
11 date on which he attains age 50 if the death occurs on or
12 after the effective date of this amendatory Act of 1997 with
13 at least 30 years of service, shall be entitled to an annuity
14 equal to one-half of the amount of annuity which her deceased
15 husband would have been entitled to receive had he withdrawn
16 from the service on the day immediately preceding the date of
17 his death, conditional upon such widow having attained age 60
18 on or before such date if the death occurs before July 1,
19 1990, or age 55 if the death occurs on or after July 1, 1990.
20 The widow's annuity shall not, however, exceed the sum of
21 $500 a month if the employee's death in service occurs before
22 January 23, 1987. The widow's annuity shall not be limited
23 to a maximum dollar amount if the employee's death in service
24 occurs on or after January 23, 1987.
25 If the employee dies in service before July 1, 1990, and
26 if such widow of such described employee shall not be 60 or
27 more years of age on such date of death, the amount provided
28 in the immediately preceding paragraph for a widow 60 or more
29 years of age, shall, in the case of such younger widow, be
30 reduced by 0.25% for each month that her then attained age is
31 less than 60 years if the employee was born before January 1,
32 1936, or dies in service on or after January 1, 1988, or 0.5%
33 for each month that her then attained age is less than 60
34 years if the employee was born on or after January 1, 1936
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1 and dies in service before January 1, 1988.
2 If the employee dies in service on or after July 1, 1990,
3 and if the widow of the employee has not attained age 55 on
4 or before the employee's date of death, the amount otherwise
5 provided in this subsection (a) shall be reduced by 0.25% for
6 each month that her then attained age is less than 55 years.
7 (b) The widow of any employee who dies subsequent to the
8 date of his retirement on annuity, and who so retired on or
9 after the date on which he attained age 60 if retirement
10 occurs before July 1, 1990, or on or after the date on which
11 he attained age 55 if retirement occurs on or after July 1,
12 1990, with at least 20 years of service, or on or after the
13 date on which he attained age 50 if the retirement occurs on
14 or after the effective date of this amendatory Act of 1997
15 with at least 30 years of service, shall be entitled to an
16 annuity equal to one-half of the amount of annuity which her
17 deceased husband received as of the date of his retirement on
18 annuity, conditional upon such widow having attained age 60
19 on or before the date of her husband's retirement on annuity
20 if retirement occurs before July 1, 1990, or age 55 if
21 retirement occurs on or after July 1, 1990. Such amount of
22 widow's annuity shall not, however, exceed the sum of $500 a
23 month if the employee's death occurs before January 23, 1987.
24 The widow's annuity shall not be limited to a maximum dollar
25 amount if the employee's death occurs on or after January 23,
26 1987, regardless of the date of retirement; provided that, if
27 retirement was before January 23, 1987, the employee or
28 eligible spouse repays the excess spouse refund with interest
29 at the effective rate from the date of refund to the date of
30 repayment.
31 If the date of the employee's retirement on annuity is
32 before July 1, 1990, and if such widow of such described
33 employee shall not have attained such age of 60 or more years
34 on such date of her husband's retirement on annuity, the
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1 amount provided in the immediately preceding paragraph for a
2 widow 60 or more years of age on the date of her husband's
3 retirement on annuity, shall, in the case of such then
4 younger widow, be reduced by 0.25% for each month that her
5 then attained age was less than 60 years if the employee was
6 born before January 1, 1936, or withdraws from service on or
7 after January 1, 1988, or 0.5% for each month that her then
8 attained age was less than 60 years if the employee was born
9 on or after January 1, 1936 and withdraws from service before
10 January 1, 1988.
11 If the date of the employee's retirement on annuity is on
12 or after July 1, 1990, and if the widow of the employee has
13 not attained age 55 by the date of the employee's retirement
14 on annuity, the amount otherwise provided in this subsection
15 (b) shall be reduced by 0.25% for each month that her then
16 attained age is less than 55 years.
17 (c) The foregoing provisions relating to minimum
18 annuities for widows shall not apply to the widow of any
19 former employee receiving an annuity from the fund on August
20 2, 1965 or on the effective date of this amendatory
21 provision, who re-enters service as a former employee, unless
22 such employee renders at least 3 years of additional service
23 after the date of re-entry.
24 (d) The amendatory provisions of part (a) and (b) of
25 this Section (increasing the maximum from $300 to $400 a
26 month) shall be effective as of July 1, 1971, and apply in
27 the case of every qualifying widow whose husband dies while
28 in service on or after July 1, 1971 and prior to January 1,
29 1984, or withdraws and enters on annuity on or after July 1,
30 1971 and prior to January 1, 1984.
31 (e) The changes made in parts (a) and (b) of this
32 Section by this amendatory Act of 1983 (increasing the
33 maximum from $400 to $500 per month) shall apply to every
34 qualifying widow whose husband dies in the service on or
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1 after January 1, 1984, or withdraws and enters on annuity on
2 or after January 1, 1984.
3 (f) The amendments to this Section by this amendatory
4 Act of 1985, relating to changing the discount because of age
5 from 1/2 of 1% to 0.25% per month for widows of employees
6 born before January 1, 1936, shall apply only to qualifying
7 widows whose husbands die while in the service on or after
8 August 16, 1985 or withdraw and enter on annuity on or after
9 August 16, 1985.
10 (g) Beginning on the effective date of this amendatory
11 Act of 1997 January 1, 1991, the minimum amount of widow's
12 annuity shall be $500 $300 per month for life for the
13 following classes of widows, without regard to the fact that
14 the death of the employee occurred prior to the effective
15 date of this amendatory Act of 1997 January 1, 1991:
16 (1) any widow annuitant alive and receiving a term
17 annuity on the effective date of this amendatory Act of
18 1997 January 1, 1991, except a reciprocal annuity;
19 (2) any widow annuitant alive and receiving a life
20 annuity on the effective date of this amendatory Act of
21 1997 January 1, 1991, except a reciprocal annuity;
22 (3) any widow annuitant alive and receiving a
23 reciprocal annuity on the effective date of this
24 amendatory Act of 1997 January 1, 1991, whose employee
25 spouse's service in this fund was at least 5 years;
26 (4) the widow of an employee with at least 10 years
27 of service in this fund who dies after retirement, if the
28 retirement occurred prior to the effective date of this
29 amendatory Act of 1997 January 1, 1991;
30 (5) the widow of an employee with at least 10 years
31 of service in this fund who dies after retirement, if
32 withdrawal occurs on or after the effective date of this
33 amendatory Act of 1997 January 1, 1991;
34 (6) the widow of an employee who dies in service
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1 with at least 5 years of service in this fund, if the
2 death in service occurs on or after the effective date of
3 this amendatory Act of 1997 January 1, 1991.
4 The increases granted under items (1), (2), (3) and (4)
5 of this subsection (g) shall not be limited by any other
6 Section of this Act.
7 (h) The widow of an employee who retired or died in
8 service on or after January 1, 1985 and before July 1, 1990,
9 at age 55 or older, and with at least 35 years of service
10 credit, shall be entitled to have her widow's annuity
11 increased, effective January 1, 1991, to an amount equal to
12 50% of the retirement annuity that the deceased employee
13 received on the date of retirement, or would have been
14 eligible to receive if he had retired on the day preceding
15 the date of his death in service, provided that if the widow
16 had not attained age 60 by the date of the employee's
17 retirement or death in service, the amount of the annuity
18 shall be reduced by 0.25% for each month that her then
19 attained age was less than age 60 if the employee's
20 retirement or death in service occurred on or after January
21 1, 1988, or by 0.5% for each month that her attained age is
22 less than age 60 if the employee's retirement or death in
23 service occurred prior to January 1, 1988. However, in cases
24 where a refund of excess contributions for widow's annuity
25 has been paid by the Fund, the increase in benefit provided
26 by this subsection (h) (i) shall be contingent upon repayment
27 of the refund to the Fund with interest at the effective rate
28 from the date of refund to the date of payment.
29 (i) If a deceased employee is receiving a retirement
30 annuity at the time of death and that death occurs on or
31 after the effective date of this amendatory Act of 1997, the
32 widow may elect to receive, in lieu of any other annuity
33 provided under this Article, 50% of the deceased employee's
34 retirement annuity at the time of death reduced by 0.25% for
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1 each month that the widow's age on the date of death is less
2 than 55. However, in cases where a refund of excess
3 contributions for widow's annuity has been paid by the Fund,
4 the benefit provided by this subsection (i) is contingent
5 upon repayment of the refund to the Fund with interest at the
6 effective rate from the date of refund to the date of
7 payment.
8 (Source: P.A. 85-964; 86-1488.)
9 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
10 Sec. 11-154. Amount of child's annuity. Beginning on
11 the effective date of this amendatory Act of 1997 January 1,
12 1988, the amount of a child's annuity shall be $220 $120 per
13 month for each child while the spouse of the deceased
14 employee parent survives, and $250 $150 per month for each
15 child when no such spouse survives, and shall be subject to
16 the following limitations:
17 (1) If the combined annuities for the widow and children
18 of an employee whose death resulted from injury incurred in
19 the performance of duty, or for the children where a widow
20 does not exist, exceed 70% of the employee's final monthly
21 salary, the annuity for each child shall be reduced pro rata
22 so that the combined annuities for the family shall not
23 exceed such limitation;
24 (2) For the family of an employee whose death is the
25 result of any cause other than injury incurred in the
26 performance of duty, in which the combined annuities for the
27 family exceed 60% of the employee's final monthly salary, the
28 annuity for each child shall be reduced pro rata so that the
29 combined annuities for the family shall not exceed such
30 limitation.
31 A child's annuity shall be paid to the parent who is
32 providing for the child, unless another person has been
33 appointed the child's legal guardian.
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1 The increase in child's annuity provided by this
2 amendatory Act of 1997 1987 shall apply to all child's
3 annuities being paid on or after the effective date of this
4 amendatory Act of 1997. January 1, 1988, subject to The above
5 limitations on the combined annuities for a family in parts
6 (1) and (2) of this Section do not apply to families of
7 employees who died before the effective date of this
8 amendatory Act of 1997.
9 (Source: P.A. 85-964.)
10 (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
11 Sec. 11-160.1. Group health benefit.
12 (a) For the purposes of this Section: (1) "annuitant"
13 means a person receiving an age and service annuity, a prior
14 service annuity, a widow's annuity, a widow's prior service
15 annuity, or a minimum annuity on or after January 1, 1988,
16 under Article 5, 6, 8 or 11, by reason of previous employment
17 by the City of Chicago (hereinafter, in this Section, "the
18 city"); (2) "Medicare Plan annuitant" means an annuitant
19 described in item (1) who is eligible for Medicare benefits;
20 and (3) "non-Medicare Plan annuitant" means an annuitant
21 described in item (1) who is not eligible for Medicare
22 benefits.
23 (b) The city shall continue to offer group health
24 benefits to annuitants and their eligible dependents through
25 June 30, 2002. The same basic city health care plan
26 available as of June 30, 1988 (hereinafter called the basic
27 city plan) shall cease to be a plan offered by the city,
28 except as specified in subparagraphs (4) and (5) below, and
29 shall be closed to new enrollment or transfer of coverage for
30 any non-Medicare Plan annuitant as of the effective date of
31 this amendatory Act of 1997. The city shall offer
32 non-Medicare Plan annuitants and their eligible dependents
33 the option of enrolling in its Annuitant Preferred Provider
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1 Plan, and may offer additional plans for any annuitant. The
2 city may amend, modify, or terminate any of its additional
3 plans at its sole discretion. If the city offers more than
4 one annuitant plan, the city shall allow annuitants to
5 convert coverage from one city annuitant plan to another,
6 except the basic city plan, during times designated by the
7 city, which periods of time shall occur at least annually.
8 For the period dating from the effective date of this
9 amendatory Act of 1997 through June 30, 2002, monthly premium
10 rates may be increased for annuitants during the time of
11 their participation in non-Medicare plans, except as provided
12 in subparagraphs (1) through (4) of this subsection.
13 (1) For non-Medicare Plan annuitants who retired
14 prior to January 1, 1988, the annuitant's share of
15 monthly premium for non-Medicare Plan coverage only shall
16 not exceed the highest premium rate chargeable under any
17 city non-Medicare Plan annuitant coverage as of December
18 1, 1996.
19 (2) For non-Medicare Plan annuitants who retire on
20 or after January 1, 1988, the annuitant's share of
21 monthly premium for non-Medicare Plan coverage only shall
22 be the rate in effect on December 1, 1996, with monthly
23 premium increases to take effect no sooner than April 1,
24 1998 at the lower of (i) the premium rate determined
25 pursuant to subsection (g) or (ii) 10% of the immediately
26 previous month's rate for similar coverage.
27 (3) In no event shall any non-Medicare Plan
28 annuitant's share of monthly premium for non-Medicare
29 Plan coverage exceed 10% of the annuitant's monthly
30 annuity.
31 (4) Non-Medicare Plan annuitants who are enrolled
32 in the basic city plan as of July 1, 1998 may remain in
33 the basic city plan, if they so choose, on the condition
34 that they are not entitled to the caps on rates set forth
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1 in subparagraphs (1) through (3), and their premium rate
2 shall be the rate determined in accordance with
3 subsections (c) and (g).
4 (5) Medicare Plan annuitants who are currently
5 enrolled in the basic city plan for Medicare eligible
6 annuitants may remain in that plan, if they so choose,
7 through June 30, 2002. Annuitants shall not be allowed
8 to enroll in or transfer into the basic city plan for
9 Medicare eligible annuitants on or after July 1, 1999.
10 The city shall continue to offer annuitants a
11 supplemental Medicare Plan for Medicare eligible
12 annuitants through June 30, 2002, and the city may offer
13 additional plans to Medicare eligible annuitants in its
14 sole discretion. All Medicare Plan annuitant monthly
15 rates shall be determined in accordance with subsections
16 (c) and (g).
17 (c) Effective the date the initial increased annuitant
18 payments pursuant to subsection (g) take effect, The city
19 shall pay 50% of the aggregated costs of the claims or
20 premiums, whichever is applicable, as determined in
21 accordance with subsection (g), of annuitants and their
22 dependents under all health care plans offered by the city.
23 The city may reduce its obligation by application of price
24 reductions obtained as a result of financial arrangements
25 with providers or plan administrators. The claims or
26 premiums of all annuitants and their dependents under all of
27 the plans offered by the city shall be aggregated for the
28 purpose of calculating the city's payment required under this
29 subsection, as well as for the setting of rates of payment
30 for annuitants as required under subsection (g).
31 (d) From January 1, 1988 until December 31, 1992, the
32 board shall pay to the city on behalf of each of the board's
33 annuitants who chooses to participate in any of the city's
34 plans the following amounts: up to a maximum of $65 per month
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1 for each such annuitant who is not qualified to receive
2 medicare benefits, and up to a maximum of $35 per month for
3 each such annuitant who is qualified to receive medicare
4 benefits. From January 1, 1993 until June 30, 2002 December
5 31, 1997, the board shall pay to the city on behalf of each
6 of the board's annuitants who chooses to participate in any
7 of the city's plans the following amounts: up to a maximum of
8 $75 per month for each such annuitant who is not qualified to
9 receive medicare benefits, and up to a maximum of $45 per
10 month for each such annuitant who is qualified to receive
11 medicare benefits.
12 For the period January 1, 1988 through the effective date
13 of this amendatory Act of 1989, payments under this Section
14 shall be reduced by the amounts paid by or on behalf of the
15 board's annuitants covered during that period.
16 The payments described in this subsection shall be paid
17 from the tax levy authorized under Section 11-178; such
18 amounts shall be credited to the reserve for group hospital
19 care and group medical and surgical plan benefits, and all
20 payments to the city required under this subsection shall be
21 charged against it.
22 (e) The city's obligations under subsections (b) and (c)
23 shall terminate on June 30, 2002 December 31, 1997, except
24 with regard to covered expenses incurred but not paid as of
25 that date. This subsection shall not affect other
26 obligations that may be imposed by law.
27 (f) The group coverage plans described in this Section
28 are not and shall not be construed to be pension or
29 retirement benefits for purposes of Section 5 of Article XIII
30 of the Illinois Constitution of 1970.
31 (g) For each annuitant plan offered by the city, the
32 aggregate cost of claims, as reflected in the claim records
33 of the plan administrator, and premiums for each calendar
34 year from 1989 through 1997 of all annuitants and dependents
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1 covered by the city's group health care plans shall be
2 estimated by the city, based upon a written determination by
3 a qualified independent actuary to be appointed and paid by
4 the city and the board. If the such estimated annual cost
5 for each annuitant plan offered by the city is more than the
6 estimated amount to be contributed by the city for that plan
7 pursuant to subsections (b) and (c) during that year plus the
8 estimated amounts to be paid pursuant to subsection (d) and
9 by the other pension boards on behalf of other participating
10 annuitants, the difference shall be paid by all participating
11 annuitants participating in the plan, except as provided in
12 subsection (b). The city, based upon the determination of
13 the independent actuary, shall set the monthly amounts to be
14 paid by the participating annuitants. The initial
15 determination of such payments shall be prospective only and
16 shall be based upon the estimated costs for the balance of
17 the year. The board may deduct the amounts to be paid by its
18 annuitants from the participating annuitants' monthly
19 annuities.
20 If it is determined from the city's annual audit, or from
21 audited experience data, that the total amount paid by all
22 participating annuitants was more or less than the difference
23 between (1) the cost of providing the group health care
24 plans, and (2) the sum of the amount to be paid by the city
25 as determined under subsection (c) and the amounts paid by
26 all the pension boards, then the independent actuary and the
27 city shall account for the excess or shortfall in the next
28 year's payments by annuitants, except as provided in
29 subsection (b).
30 (h) An annuitant may elect to terminate coverage in a
31 plan at the end of any month any time, which election shall
32 terminate the annuitant's obligation to contribute toward
33 payment of the excess described in subsection (g).
34 (i) The city shall advise the board of all proposed
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1 premium increases for health care at least 75 days prior to
2 the effective date of the change, and any increase shall be
3 prospective only.
4 (Source: P.A. 86-273.)
5 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
6 Sec. 14-104. Service for which contributions permitted.
7 Contributions provided for in this Section shall cover the
8 period of service granted, and be based upon employee's
9 compensation and contribution rate in effect on the date he
10 last became a member of the System; provided that for all
11 employment prior to January 1, 1969 the contribution rate
12 shall be that in effect for a noncovered employee on the date
13 he last became a member of the System. Contributions
14 permitted under this Section shall include regular interest
15 from the date an employee last became a member of the System
16 to date of payment.
17 These contributions must be paid in full before
18 retirement either in a lump sum or in installment payments in
19 accordance with such rules as may be adopted by the board.
20 (a) Any member may make contributions as required in
21 this Section for any period of service, subsequent to the
22 date of establishment, but prior to the date of membership.
23 (b) Any employee who had been previously excluded from
24 membership because of age at entry and subsequently became
25 eligible may elect to make contributions as required in this
26 Section for the period of service during which he was
27 ineligible.
28 (c) An employee of the Department of Insurance who,
29 after January 1, 1944 but prior to becoming eligible for
30 membership, received salary from funds of insurance companies
31 in the process of rehabilitation, liquidation, conservation
32 or dissolution, may elect to make contributions as required
33 in this Section for such service.
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1 (d) Any employee who rendered service in a State office
2 to which he was elected, or rendered service in the elective
3 office of Clerk of the Appellate Court prior to the date he
4 became a member, may make contributions for such service as
5 required in this Section. Any member who served by
6 appointment of the Governor under the Civil Administrative
7 Code of Illinois and did not participate in this System may
8 make contributions as required in this Section for such
9 service.
10 (e) Any person employed by the United States government
11 or any instrumentality or agency thereof from January 1, 1942
12 through November 15, 1946 as the result of a transfer from
13 State service by executive order of the President of the
14 United States shall be entitled to prior service credit
15 covering the period from January 1, 1942 through December 31,
16 1943 as provided for in this Article and to membership
17 service credit for the period from January 1, 1944 through
18 November 15, 1946 by making the contributions required in
19 this Section. A person so employed on January 1, 1944 but
20 whose employment began after January 1, 1942 may qualify for
21 prior service and membership service credit under the same
22 conditions.
23 (f) An employee of the Department of Labor of the State
24 of Illinois who performed services for and under the
25 supervision of that Department prior to January 1, 1944 but
26 who was compensated for those services directly by federal
27 funds and not by a warrant of the Auditor of Public Accounts
28 paid by the State Treasurer may establish credit for such
29 employment by making the contributions required in this
30 Section. An employee of the Department of Agriculture of the
31 State of Illinois, who performed services for and under the
32 supervision of that Department prior to June 1, 1963, but was
33 compensated for those services directly by federal funds and
34 not paid by a warrant of the Auditor of Public Accounts paid
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1 by the State Treasurer, and who did not contribute to any
2 other public employee retirement system for such service, may
3 establish credit for such employment by making the
4 contributions required in this Section.
5 (g) Any employee who executed a waiver of membership
6 within 60 days prior to January 1, 1944 may, at any time
7 while in the service of a department, file with the board a
8 rescission of such waiver. Upon making the contributions
9 required by this Section, the member shall be granted the
10 creditable service that would have been received if the
11 waiver had not been executed.
12 (h) Until May 1, 1990, an employee who was employed on a
13 full-time basis by a regional planning commission for at
14 least 5 continuous years may establish creditable service for
15 such employment by making the contributions required under
16 this Section, provided that any credits earned by the
17 employee in the commission's retirement plan have been
18 terminated.
19 (i) Any person who rendered full time contractual
20 services to the General Assembly as a member of a legislative
21 staff may establish service credit for up to 8 years of such
22 services by making the contributions required under this
23 Section, provided that application therefor is made not later
24 than July 1, 1991.
25 (j) By paying the contributions otherwise required under
26 this Section, plus an amount determined by the Board to be
27 equal to the employer's normal cost of the benefit plus
28 interest, an employee may establish service credit for a
29 period of up to 2 years spent in active military service for
30 which he does not qualify for credit under Section 14-105,
31 provided that (1) he was not dishonorably discharged from
32 such military service, and (2) the amount of service credit
33 established by a member under this subsection (j), when added
34 to the amount of military service credit granted to the
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1 member under subsection (b) of Section 14-105, shall not
2 exceed 5 years.
3 (k) An employee who was employed on a full-time basis by
4 the Illinois State's Attorneys Association Statewide
5 Appellate Assistance Service LEAA-ILEC grant project prior to
6 the time that project became the State's Attorneys Appellate
7 Service Commission, now the Office of the State's Attorneys
8 Appellate Prosecutor, an agency of State government, may
9 establish creditable service for not more than 60 months
10 service for such employment by making contributions required
11 under this Section.
12 (l) By paying the contributions otherwise required under
13 this Section, plus an amount determined by the Board to be
14 equal to the employer's normal cost of the benefit plus
15 interest, a member may establish service credit for periods
16 of less than one year spent on authorized leave of absence
17 from service, provided that (1) the period of leave began on
18 or after January 1, 1982 and (2) any credit established by
19 the member for the period of leave in any other public
20 employee retirement system has been terminated. A member may
21 establish service credit under this subsection for more than
22 one period of authorized leave, and in that case the total
23 period of service credit established by the member under this
24 subsection may exceed one year.
25 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
26 (40 ILCS 5/14-104.10 new)
27 Sec. 14-104.10. Federal or out-of-state employment. A
28 contributing employee may establish additional service credit
29 for periods of full-time employment by the federal government
30 or a unit of state or local government located outside
31 Illinois for which he or she does not qualify for credit
32 under any other provision of this Article, provided that (i)
33 the amount of service credit established by a person under
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1 this Section shall not exceed 8 years or 40% of his or her
2 membership service under this Article, whichever is less,
3 (ii) the amount of service credit established by a person
4 under this Section for federal employment, when added to the
5 amount of all military service credit granted to the person
6 under this Article, shall not exceed 8 years, and (iii) any
7 credit received for the federal or out-of-state employment in
8 any federal or other public employee pension fund or
9 retirement system has been terminated or relinquished.
10 Credit may not be established under this Section for any
11 period of military service or for any period for which credit
12 has been or may be established under Section 14-110 or any
13 other provision of this Article.
14 In order to establish service credit under this Section,
15 the applicant must submit a written application to the System
16 by June 30, 1998, including documentation of the federal or
17 out-of-state employment satisfactory to the Board, and pay to
18 the System (1) employee contributions at the rates provided
19 in this Article based upon the person's salary on the last
20 day as a participating employee prior to the federal or
21 out-of-state employment, or on the first day as a
22 participating employee after that employment, whichever is
23 greater, plus (2) an amount determined by the Board to be
24 equal to the employer's normal cost of the benefits accrued
25 for that employment, plus (3) regular interest on items (1)
26 and (2) from the date of conclusion of the employment to the
27 date of payment.
28 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
29 (Text of Section before amendment by P.A. 89-507)
30 Sec. 14-110. Alternative retirement annuity.
31 (a) Any member who has withdrawn from service with not
32 less than 20 years of eligible creditable service and has
33 attained age 55, and any member who has withdrawn from
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1 service with not less than 25 years of eligible creditable
2 service and has attained age 50, regardless of whether the
3 attainment of either of the specified ages occurs while the
4 member is still in service, shall be entitled to receive at
5 the option of the member, in lieu of the regular or minimum
6 retirement annuity, a retirement annuity computed as
7 follows:
8 (i) for periods of service as a noncovered
9 employee, 2 1/4% of final average compensation for each
10 of the first 10 years of creditable service, 2 1/2% for
11 each year above 10 years to and including 20 years of
12 creditable service, and 2 3/4% for each year of
13 creditable service above 20 years; and
14 (ii) for periods of eligible creditable service as
15 a covered employee, 1.67% of final average compensation
16 for each of the first 10 years of such service, 1.90% for
17 each of the next 10 years of such service, 2.10% for each
18 year of such service in excess of 20 but not exceeding
19 30, and 2.30% for each year in excess of 30.
20 Such annuity shall be subject to a maximum of 75% of
21 final average compensation. These rates shall not be
22 applicable to any service performed by a member as a covered
23 employee which is not eligible creditable service. Service
24 as a covered employee which is not eligible creditable
25 service shall be subject to the rates and provisions of
26 Section 14-108.
27 (b) For the purpose of this Section, "eligible
28 creditable service" means creditable service resulting from
29 service in one or more of the following positions:
30 (1) State policeman;
31 (2) fire fighter in the fire protection service of
32 a department;
33 (3) air pilot;
34 (4) special agent;
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1 (5) investigator for the Secretary of State;
2 (6) conservation police officer;
3 (7) investigator for the Department of Revenue;
4 (8) security employee of the Department of Mental
5 Health and Developmental Disabilities;
6 (9) Central Management Services security police
7 officer;
8 (10) security employee of the Department of
9 Corrections;
10 (11) dangerous drugs investigator;
11 (12) investigator for the Department of State
12 Police;
13 (13) investigator for the Office of the Attorney
14 General;
15 (14) controlled substance inspector;
16 (15) investigator for the Office of the State's
17 Attorneys Appellate Prosecutor;
18 (16) Commerce Commission police officer;
19 (17) arson investigator.
20 A person employed in one of the positions specified in
21 this subsection is entitled to eligible creditable service
22 for service credit earned under this Article while undergoing
23 the basic police training course approved by the Illinois
24 Local Governmental Law Enforcement Officers Training Board,
25 if completion of that training is required of persons serving
26 in that position. For the purposes of this Code, service
27 during the required basic police training course shall be
28 deemed performance of the duties of the specified position,
29 even though the person is not a sworn peace officer at the
30 time of the training.
31 (c) For the purposes of this Section:
32 (1) The term "state policeman" includes any title
33 or position in the Department of State Police that is
34 held by an individual employed under the State Police
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1 Act.
2 (2) The term "fire fighter in the fire protection
3 service of a department" includes all officers in such
4 fire protection service including fire chiefs and
5 assistant fire chiefs.
6 (3) The term "air pilot" includes any employee
7 whose official job description on file in the Department
8 of Central Management Services, or in the department by
9 which he is employed if that department is not covered by
10 the Personnel Code, states that his principal duty is the
11 operation of aircraft, and who possesses a pilot's
12 license; however, the change in this definition made by
13 this amendatory Act of 1983 shall not operate to exclude
14 any noncovered employee who was an "air pilot" for the
15 purposes of this Section on January 1, 1984.
16 (4) The term "special agent" means any person who
17 by reason of employment by the Division of Narcotic
18 Control, the Bureau of Investigation or, after July 1,
19 1977, the Division of Criminal Investigation, the
20 Division of Internal Investigation or any other Division
21 or organizational entity in the Department of State
22 Police is vested by law with duties to maintain public
23 order, investigate violations of the criminal law of this
24 State, enforce the laws of this State, make arrests and
25 recover property. The term "special agent" includes any
26 title or position in the Department of State Police that
27 is held by an individual employed under the State Police
28 Act.
29 (5) The term "investigator for the Secretary of
30 State" means any person employed by the Office of the
31 Secretary of State and vested with such investigative
32 duties as render him ineligible for coverage under the
33 Social Security Act by reason of Sections 218(d)(5)(A),
34 218(d)(8)(D) and 218(l)(1) of that Act.
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1 A person who became employed as an investigator for
2 the Secretary of State between January 1, 1967 and
3 December 31, 1975, and who has served as such until
4 attainment of age 60, either continuously or with a
5 single break in service of not more than 3 years
6 duration, which break terminated before January 1, 1976,
7 shall be entitled to have his retirement annuity
8 calculated in accordance with subsection (a),
9 notwithstanding that he has less than 20 years of credit
10 for such service.
11 (6) The term "Conservation Police Officer" means
12 any person employed by the Division of Law Enforcement of
13 the Department of Natural Resources and vested with such
14 law enforcement duties as render him ineligible for
15 coverage under the Social Security Act by reason of
16 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
17 that Act. The term "Conservation Police Officer"
18 includes the positions of Chief Conservation Police
19 Administrator and Assistant Conservation Police
20 Administrator.
21 (7) The term "investigator for the Department of
22 Revenue" means any person employed by the Department of
23 Revenue and vested with such investigative duties as
24 render him ineligible for coverage under the Social
25 Security Act by reason of Sections 218(d)(5)(A),
26 218(d)(8)(D) and 218(l)(1) of that Act.
27 (8) The term "security employee of the Department
28 of Mental Health and Developmental Disabilities" means
29 any person employed by the Department of Mental Health
30 and Developmental Disabilities who is employed at the
31 Chester Mental Health Center and has daily contact with
32 the residents thereof, or who is a mental health police
33 officer. "Mental health police officer" means any person
34 employed by the Department of Mental Health and
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1 Developmental Disabilities who is vested with such law
2 enforcement duties as render him ineligible for coverage
3 under the Social Security Act by reason of Sections
4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
5 (9) "Central Management Services security police
6 officer" means any person employed by the Department of
7 Central Management Services who is vested with such law
8 enforcement duties as render him ineligible for coverage
9 under the Social Security Act by reason of Sections
10 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
11 (10) The term "security employee of the Department
12 of Corrections" means any employee of the Department of
13 Corrections or the former Department of Personnel, and
14 any member or employee of the Prisoner Review Board, who
15 has daily contact with inmates by working within a
16 correctional facility or who is a parole officer or an
17 employee who has direct contact with committed persons in
18 the performance of his or her job duties.
19 (11) The term "dangerous drugs investigator" means
20 any person who is employed as such by the Department of
21 Alcoholism and Substance Abuse.
22 (12) The term "investigator for the Department of
23 State Police" means a person employed by the Department
24 of State Police who is vested under Section 4 of the
25 Narcotic Control Division Abolition Act with such law
26 enforcement powers as render him ineligible for coverage
27 under the Social Security Act by reason of Sections
28 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
29 (13) "Investigator for the Office of the Attorney
30 General" means any person who is employed as such by the
31 Office of the Attorney General and is vested with such
32 investigative duties as render him ineligible for
33 coverage under the Social Security Act by reason of
34 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
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1 Act. For the period before January 1, 1989, the term
2 includes all persons who were employed as investigators
3 by the Office of the Attorney General, without regard to
4 social security status.
5 (14) "Controlled substance inspector" means any
6 person who is employed as such by the Department of
7 Professional Regulation and is vested with such law
8 enforcement duties as render him ineligible for coverage
9 under the Social Security Act by reason of Sections
10 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
11 The term "controlled substance inspector" includes the
12 Program Executive of Enforcement and the Assistant
13 Program Executive of Enforcement.
14 (15) The term "investigator for the Office of the
15 State's Attorneys Appellate Prosecutor" means a person
16 employed in that capacity on a full time basis under the
17 authority of Section 7.06 of the State's Attorneys
18 Appellate Prosecutor's Act.
19 (16) "Commerce Commission police officer" means any
20 person employed by the Illinois Commerce Commission who
21 is vested with such law enforcement duties as render him
22 ineligible for coverage under the Social Security Act by
23 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
24 218(l)(1) of that Act.
25 (17) "Arson investigator" means any person who is
26 employed as such by the Office of the State Fire Marshal
27 and is vested with such law enforcement duties as render
28 the person ineligible for coverage under the Social
29 Security Act by reason of Sections 218(d)(5)(A),
30 218(d)(8)(D), and 218(l)(1) of that Act. A person who
31 was employed as an arson investigator on January 1, 1995
32 and is no longer in service but not yet receiving a
33 retirement annuity may convert his or her creditable
34 service for employment as an arson investigator into
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1 eligible creditable service by paying to the System the
2 difference between the employee contributions actually
3 paid for that service and the amounts that would have
4 been contributed if the applicant were contributing at
5 the rate applicable to persons with the same social
6 security status earning eligible creditable service on
7 the date of application.
8 (d) A security employee of the Department of
9 Corrections, and a security employee of the Department of
10 Mental Health and Developmental Disabilities who is not a
11 mental health police officer, shall not be eligible for the
12 alternative retirement annuity provided by this Section
13 unless he or she meets the following minimum age and service
14 requirements at the time of retirement:
15 (i) 25 years of eligible creditable service and age
16 55; or
17 (ii) beginning January 1, 1987, 25 years of
18 eligible creditable service and age 54, or 24 years of
19 eligible creditable service and age 55; or
20 (iii) beginning January 1, 1988, 25 years of
21 eligible creditable service and age 53, or 23 years of
22 eligible creditable service and age 55; or
23 (iv) beginning January 1, 1989, 25 years of
24 eligible creditable service and age 52, or 22 years of
25 eligible creditable service and age 55; or
26 (v) beginning January 1, 1990, 25 years of eligible
27 creditable service and age 51, or 21 years of eligible
28 creditable service and age 55; or
29 (vi) beginning January 1, 1991, 25 years of
30 eligible creditable service and age 50, or 20 years of
31 eligible creditable service and age 55.
32 Persons who have service credit under Article 16 of this
33 Code for service as a security employee of the Department of
34 Corrections in a position requiring certification as a
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1 teacher may count such service toward establishing their
2 eligibility under the service requirements of this Section;
3 but such service may be used only for establishing such
4 eligibility, and not for the purpose of increasing or
5 calculating any benefit.
6 (e) If a member enters military service while working in
7 a position in which eligible creditable service may be
8 earned, and returns to State service in the same or another
9 such position, and fulfills in all other respects the
10 conditions prescribed in this Article for credit for military
11 service, such military service shall be credited as eligible
12 creditable service for the purposes of the retirement annuity
13 prescribed in this Section.
14 (f) For purposes of calculating retirement annuities
15 under this Section, periods of service rendered after
16 December 31, 1968 and before October 1, 1975 as a covered
17 employee in the position of special agent, conservation
18 police officer, mental health police officer, or investigator
19 for the Secretary of State, shall be deemed to have been
20 service as a noncovered employee, provided that the employee
21 pays to the System prior to retirement an amount equal to (1)
22 the difference between the employee contributions that would
23 have been required for such service as a noncovered employee,
24 and the amount of employee contributions actually paid, plus
25 (2) if payment is made after July 31, 1987, regular interest
26 on the amount specified in item (1) from the date of service
27 to the date of payment.
28 For purposes of calculating retirement annuities under
29 this Section, periods of service rendered after December 31,
30 1968 and before January 1, 1982 as a covered employee in the
31 position of investigator for the Department of Revenue shall
32 be deemed to have been service as a noncovered employee,
33 provided that the employee pays to the System prior to
34 retirement an amount equal to (1) the difference between the
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1 employee contributions that would have been required for such
2 service as a noncovered employee, and the amount of employee
3 contributions actually paid, plus (2) if payment is made
4 after January 1, 1990, regular interest on the amount
5 specified in item (1) from the date of service to the date of
6 payment.
7 (g) A State policeman may elect, not later than January
8 1, 1990, to establish eligible creditable service for up to
9 10 years of his service as a policeman under Article 3, by
10 filing a written election with the Board, accompanied by
11 payment of an amount to be determined by the Board, equal to
12 (i) the difference between the amount of employee and
13 employer contributions transferred to the System under
14 Section 3-110.5, and the amounts that would have been
15 contributed had such contributions been made at the rates
16 applicable to State policemen, plus (ii) interest thereon at
17 the effective rate for each year, compounded annually, from
18 the date of service to the date of payment.
19 Subject to the limitation in subsection (i), a State
20 policeman may elect, not later than July 1, 1993, to
21 establish eligible creditable service for up to 10 years of
22 his service as a member of the County Police Department under
23 Article 9, by filing a written election with the Board,
24 accompanied by payment of an amount to be determined by the
25 Board, equal to (i) the difference between the amount of
26 employee and employer contributions transferred to the System
27 under Section 9-121.10 and the amounts that would have been
28 contributed had those contributions been made at the rates
29 applicable to State policemen, plus (ii) interest thereon at
30 the effective rate for each year, compounded annually, from
31 the date of service to the date of payment.
32 (h) Subject to the limitation in subsection (i), a State
33 policeman or investigator for the Secretary of State may
34 elect to establish eligible creditable service for up to 12
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1 years of his service as a policeman under Article 5, by
2 filing a written election with the Board on or before January
3 31, 1992, and paying to the System by January 31, 1994 an
4 amount to be determined by the Board, equal to (i) the
5 difference between the amount of employee and employer
6 contributions transferred to the System under Section 5-236,
7 and the amounts that would have been contributed had such
8 contributions been made at the rates applicable to State
9 policemen, plus (ii) interest thereon at the effective rate
10 for each year, compounded annually, from the date of service
11 to the date of payment.
12 Subject to the limitation in subsection (i), a State
13 policeman, conservation police officer, or investigator for
14 the Secretary of State may elect to establish eligible
15 creditable service for up to 10 years of service as a
16 sheriff's law enforcement employee under Article 7, by filing
17 a written election with the Board on or before January 31,
18 1993, and paying to the System by January 31, 1994 an amount
19 to be determined by the Board, equal to (i) the difference
20 between the amount of employee and employer contributions
21 transferred to the System under Section 7-139.7, and the
22 amounts that would have been contributed had such
23 contributions been made at the rates applicable to State
24 policemen, plus (ii) interest thereon at the effective rate
25 for each year, compounded annually, from the date of service
26 to the date of payment.
27 (i) The total amount of eligible creditable service
28 established by any person under subsections (g), (h), and
29 (j), (k), and (l) of this Section shall not exceed 12 years.
30 (j) Subject to the limitation in subsection (i), an
31 investigator for the Office of the State's Attorneys
32 Appellate Prosecutor or a controlled substance inspector may
33 elect to establish eligible creditable service for up to 10
34 years of his service as a policeman under Article 3 or a
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1 sheriff's law enforcement employee under Article 7, by filing
2 a written election with the Board, accompanied by payment of
3 an amount to be determined by the Board, equal to (1) the
4 difference between the amount of employee and employer
5 contributions transferred to the System under Section 3-110.6
6 or 7-139.8, and the amounts that would have been contributed
7 had such contributions been made at the rates applicable to
8 State policemen, plus (2) interest thereon at the effective
9 rate for each year, compounded annually, from the date of
10 service to the date of payment.
11 (k) Subject to the limitation in subsection (i) of this
12 Section, an alternative formula employee may elect to
13 establish eligible creditable service for periods spent as a
14 full-time law enforcement officer or full-time corrections
15 officer employed by the federal government or by a state or
16 local government located outside of Illinois, for which
17 credit is not held in any other public employee pension fund
18 or retirement system. To obtain this credit, the applicant
19 must file a written application with the Board by March 31,
20 1998, accompanied by evidence of eligibility acceptable to
21 the Board and payment of an amount to be determined by the
22 Board, equal to (1) employee contributions for the credit
23 being established, based upon the applicant's salary on the
24 first day as an alternative formula employee after the
25 employment for which credit is being established and the
26 rates then applicable to alternative formula employees, plus
27 (2) an amount determined by the Board to be the employer's
28 normal cost of the benefits accrued for the credit being
29 established, plus (3) regular interest on the amounts in
30 items (1) and (2) from the first day as an alternative
31 formula employee after the employment for which credit is
32 being established to the date of payment.
33 (l) Subject to the limitation in subsection (i), a
34 security employee of the Department of Corrections may elect,
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1 not later than July 1, 1998, to establish eligible creditable
2 service for up to 10 years of his or her service as a
3 policeman under Article 3, by filing a written election with
4 the Board, accompanied by payment of an amount to be
5 determined by the Board, equal to (i) the difference between
6 the amount of employee and employer contributions transferred
7 to the System under Section 3-110.5, and the amounts that
8 would have been contributed had such contributions been made
9 at the rates applicable to security employees of the
10 Department of Corrections, plus (ii) interest thereon at the
11 effective rate for each year, compounded annually, from the
12 date of service to the date of payment.
13 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96.)
14 (Text of Section after amendment by P.A. 89-507)
15 Sec. 14-110. Alternative retirement annuity.
16 (a) Any member who has withdrawn from service with not
17 less than 20 years of eligible creditable service and has
18 attained age 55, and any member who has withdrawn from
19 service with not less than 25 years of eligible creditable
20 service and has attained age 50, regardless of whether the
21 attainment of either of the specified ages occurs while the
22 member is still in service, shall be entitled to receive at
23 the option of the member, in lieu of the regular or minimum
24 retirement annuity, a retirement annuity computed as
25 follows:
26 (i) for periods of service as a noncovered
27 employee, 2 1/4% of final average compensation for each
28 of the first 10 years of creditable service, 2 1/2% for
29 each year above 10 years to and including 20 years of
30 creditable service, and 2 3/4% for each year of
31 creditable service above 20 years; and
32 (ii) for periods of eligible creditable service as
33 a covered employee, 1.67% of final average compensation
34 for each of the first 10 years of such service, 1.90% for
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1 each of the next 10 years of such service, 2.10% for each
2 year of such service in excess of 20 but not exceeding
3 30, and 2.30% for each year in excess of 30.
4 Such annuity shall be subject to a maximum of 75% of
5 final average compensation. These rates shall not be
6 applicable to any service performed by a member as a covered
7 employee which is not eligible creditable service. Service
8 as a covered employee which is not eligible creditable
9 service shall be subject to the rates and provisions of
10 Section 14-108.
11 (b) For the purpose of this Section, "eligible
12 creditable service" means creditable service resulting from
13 service in one or more of the following positions:
14 (1) State policeman;
15 (2) fire fighter in the fire protection service of
16 a department;
17 (3) air pilot;
18 (4) special agent;
19 (5) investigator for the Secretary of State;
20 (6) conservation police officer;
21 (7) investigator for the Department of Revenue;
22 (8) security employee of the Department of Human
23 Services;
24 (9) Central Management Services security police
25 officer;
26 (10) security employee of the Department of
27 Corrections;
28 (11) dangerous drugs investigator;
29 (12) investigator for the Department of State
30 Police;
31 (13) investigator for the Office of the Attorney
32 General;
33 (14) controlled substance inspector;
34 (15) investigator for the Office of the State's
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1 Attorneys Appellate Prosecutor;
2 (16) Commerce Commission police officer;
3 (17) arson investigator.
4 A person employed in one of the positions specified in
5 this subsection is entitled to eligible creditable service
6 for service credit earned under this Article while undergoing
7 the basic police training course approved by the Illinois
8 Local Governmental Law Enforcement Officers Training Board,
9 if completion of that training is required of persons serving
10 in that position. For the purposes of this Code, service
11 during the required basic police training course shall be
12 deemed performance of the duties of the specified position,
13 even though the person is not a sworn peace officer at the
14 time of the training.
15 (c) For the purposes of this Section:
16 (1) The term "state policeman" includes any title
17 or position in the Department of State Police that is
18 held by an individual employed under the State Police
19 Act.
20 (2) The term "fire fighter in the fire protection
21 service of a department" includes all officers in such
22 fire protection service including fire chiefs and
23 assistant fire chiefs.
24 (3) The term "air pilot" includes any employee
25 whose official job description on file in the Department
26 of Central Management Services, or in the department by
27 which he is employed if that department is not covered by
28 the Personnel Code, states that his principal duty is the
29 operation of aircraft, and who possesses a pilot's
30 license; however, the change in this definition made by
31 this amendatory Act of 1983 shall not operate to exclude
32 any noncovered employee who was an "air pilot" for the
33 purposes of this Section on January 1, 1984.
34 (4) The term "special agent" means any person who
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1 by reason of employment by the Division of Narcotic
2 Control, the Bureau of Investigation or, after July 1,
3 1977, the Division of Criminal Investigation, the
4 Division of Internal Investigation or any other Division
5 or organizational entity in the Department of State
6 Police is vested by law with duties to maintain public
7 order, investigate violations of the criminal law of this
8 State, enforce the laws of this State, make arrests and
9 recover property. The term "special agent" includes any
10 title or position in the Department of State Police that
11 is held by an individual employed under the State Police
12 Act.
13 (5) The term "investigator for the Secretary of
14 State" means any person employed by the Office of the
15 Secretary of State and vested with such investigative
16 duties as render him ineligible for coverage under the
17 Social Security Act by reason of Sections 218(d)(5)(A),
18 218(d)(8)(D) and 218(l)(1) of that Act.
19 A person who became employed as an investigator for
20 the Secretary of State between January 1, 1967 and
21 December 31, 1975, and who has served as such until
22 attainment of age 60, either continuously or with a
23 single break in service of not more than 3 years
24 duration, which break terminated before January 1, 1976,
25 shall be entitled to have his retirement annuity
26 calculated in accordance with subsection (a),
27 notwithstanding that he has less than 20 years of credit
28 for such service.
29 (6) The term "Conservation Police Officer" means
30 any person employed by the Division of Law Enforcement of
31 the Department of Natural Resources and vested with such
32 law enforcement duties as render him ineligible for
33 coverage under the Social Security Act by reason of
34 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
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1 that Act. The term "Conservation Police Officer"
2 includes the positions of Chief Conservation Police
3 Administrator and Assistant Conservation Police
4 Administrator.
5 (7) The term "investigator for the Department of
6 Revenue" means any person employed by the Department of
7 Revenue and vested with such investigative duties as
8 render him ineligible for coverage under the Social
9 Security Act by reason of Sections 218(d)(5)(A),
10 218(d)(8)(D) and 218(l)(1) of that Act.
11 (8) The term "security employee of the Department
12 of Human Services" means any person employed by the
13 Department of Human Services who is employed at the
14 Chester Mental Health Center and has daily contact with
15 the residents thereof, or who is a mental health police
16 officer. "Mental health police officer" means any person
17 employed by the Department of Human Services in a
18 position pertaining to the Department's mental health and
19 developmental disabilities functions who is vested with
20 such law enforcement duties as render the person
21 ineligible for coverage under the Social Security Act by
22 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
23 218(l)(1) of that Act.
24 (9) "Central Management Services security police
25 officer" means any person employed by the Department of
26 Central Management Services who is vested with such law
27 enforcement duties as render him ineligible for coverage
28 under the Social Security Act by reason of Sections
29 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
30 (10) The term "security employee of the Department
31 of Corrections" means any employee of the Department of
32 Corrections or the former Department of Personnel, and
33 any member or employee of the Prisoner Review Board, who
34 has daily contact with inmates by working within a
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1 correctional facility or who is a parole officer or an
2 employee who has direct contact with committed persons in
3 the performance of his or her job duties.
4 (11) The term "dangerous drugs investigator" means
5 any person who is employed as such by the Department of
6 Human Services.
7 (12) The term "investigator for the Department of
8 State Police" means a person employed by the Department
9 of State Police who is vested under Section 4 of the
10 Narcotic Control Division Abolition Act with such law
11 enforcement powers as render him ineligible for coverage
12 under the Social Security Act by reason of Sections
13 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
14 (13) "Investigator for the Office of the Attorney
15 General" means any person who is employed as such by the
16 Office of the Attorney General and is vested with such
17 investigative duties as render him ineligible for
18 coverage under the Social Security Act by reason of
19 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
20 Act. For the period before January 1, 1989, the term
21 includes all persons who were employed as investigators
22 by the Office of the Attorney General, without regard to
23 social security status.
24 (14) "Controlled substance inspector" means any
25 person who is employed as such by the Department of
26 Professional Regulation and is vested with such law
27 enforcement duties as render him ineligible for coverage
28 under the Social Security Act by reason of Sections
29 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
30 The term "controlled substance inspector" includes the
31 Program Executive of Enforcement and the Assistant
32 Program Executive of Enforcement.
33 (15) The term "investigator for the Office of the
34 State's Attorneys Appellate Prosecutor" means a person
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1 employed in that capacity on a full time basis under the
2 authority of Section 7.06 of the State's Attorneys
3 Appellate Prosecutor's Act.
4 (16) "Commerce Commission police officer" means any
5 person employed by the Illinois Commerce Commission who
6 is vested with such law enforcement duties as render him
7 ineligible for coverage under the Social Security Act by
8 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
9 218(l)(1) of that Act.
10 (17) "Arson investigator" means any person who is
11 employed as such by the Office of the State Fire Marshal
12 and is vested with such law enforcement duties as render
13 the person 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. A person who
16 was employed as an arson investigator on January 1, 1995
17 and is no longer in service but not yet receiving a
18 retirement annuity may convert his or her creditable
19 service for employment as an arson investigator into
20 eligible creditable service by paying to the System the
21 difference between the employee contributions actually
22 paid for that service and the amounts that would have
23 been contributed if the applicant were contributing at
24 the rate applicable to persons with the same social
25 security status earning eligible creditable service on
26 the date of application.
27 (d) A security employee of the Department of
28 Corrections, and a security employee of the Department of
29 Human Services who is not a mental health police officer,
30 shall not be eligible for the alternative retirement annuity
31 provided by this Section unless he or she meets the following
32 minimum age and service requirements at the time of
33 retirement:
34 (i) 25 years of eligible creditable service and age
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1 55; or
2 (ii) beginning January 1, 1987, 25 years of
3 eligible creditable service and age 54, or 24 years of
4 eligible creditable service and age 55; or
5 (iii) beginning January 1, 1988, 25 years of
6 eligible creditable service and age 53, or 23 years of
7 eligible creditable service and age 55; or
8 (iv) beginning January 1, 1989, 25 years of
9 eligible creditable service and age 52, or 22 years of
10 eligible creditable service and age 55; or
11 (v) beginning January 1, 1990, 25 years of eligible
12 creditable service and age 51, or 21 years of eligible
13 creditable service and age 55; or
14 (vi) beginning January 1, 1991, 25 years of
15 eligible creditable service and age 50, or 20 years of
16 eligible creditable service and age 55.
17 Persons who have service credit under Article 16 of this
18 Code for service as a security employee of the Department of
19 Corrections in a position requiring certification as a
20 teacher may count such service toward establishing their
21 eligibility under the service requirements of this Section;
22 but such service may be used only for establishing such
23 eligibility, and not for the purpose of increasing or
24 calculating any benefit.
25 (e) If a member enters military service while working in
26 a position in which eligible creditable service may be
27 earned, and returns to State service in the same or another
28 such position, and fulfills in all other respects the
29 conditions prescribed in this Article for credit for military
30 service, such military service shall be credited as eligible
31 creditable service for the purposes of the retirement annuity
32 prescribed in this Section.
33 (f) For purposes of calculating retirement annuities
34 under this Section, periods of service rendered after
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1 December 31, 1968 and before October 1, 1975 as a covered
2 employee in the position of special agent, conservation
3 police officer, mental health police officer, or investigator
4 for the Secretary of State, shall be deemed to have been
5 service as a noncovered employee, provided that the employee
6 pays to the System prior to retirement an amount equal to (1)
7 the difference between the employee contributions that would
8 have been required for such service as a noncovered employee,
9 and the amount of employee contributions actually paid, plus
10 (2) if payment is made after July 31, 1987, regular interest
11 on the amount specified in item (1) from the date of service
12 to the date of payment.
13 For purposes of calculating retirement annuities under
14 this Section, periods of service rendered after December 31,
15 1968 and before January 1, 1982 as a covered employee in the
16 position of investigator for the Department of Revenue shall
17 be deemed to have been service as a noncovered employee,
18 provided that the employee pays to the System prior to
19 retirement an amount equal to (1) the difference between the
20 employee contributions that would have been required for such
21 service as a noncovered employee, and the amount of employee
22 contributions actually paid, plus (2) if payment is made
23 after January 1, 1990, regular interest on the amount
24 specified in item (1) from the date of service to the date of
25 payment.
26 (g) A State policeman may elect, not later than January
27 1, 1990, to establish eligible creditable service for up to
28 10 years of his service as a policeman under Article 3, by
29 filing a written election with the Board, accompanied by
30 payment of an amount to be determined by the Board, equal to
31 (i) the difference between the amount of employee and
32 employer contributions transferred to the System under
33 Section 3-110.5, and the amounts that would have been
34 contributed had such contributions been made at the rates
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1 applicable to State policemen, plus (ii) interest thereon at
2 the effective rate for each year, compounded annually, from
3 the date of service to the date of payment.
4 Subject to the limitation in subsection (i), a State
5 policeman may elect, not later than July 1, 1993, to
6 establish eligible creditable service for up to 10 years of
7 his service as a member of the County Police Department under
8 Article 9, by filing a written election with the Board,
9 accompanied by payment of an amount to be determined by the
10 Board, equal to (i) the difference between the amount of
11 employee and employer contributions transferred to the System
12 under Section 9-121.10 and the amounts that would have been
13 contributed had those contributions been made at the rates
14 applicable to State policemen, plus (ii) interest thereon at
15 the effective rate for each year, compounded annually, from
16 the date of service to the date of payment.
17 (h) Subject to the limitation in subsection (i), a State
18 policeman or investigator for the Secretary of State may
19 elect to establish eligible creditable service for up to 12
20 years of his service as a policeman under Article 5, by
21 filing a written election with the Board on or before January
22 31, 1992, and paying to the System by January 31, 1994 an
23 amount to be determined by the Board, equal to (i) the
24 difference between the amount of employee and employer
25 contributions transferred to the System under Section 5-236,
26 and the amounts that would have been contributed had such
27 contributions been made at the rates applicable to State
28 policemen, plus (ii) interest thereon at the effective rate
29 for each year, compounded annually, from the date of service
30 to the date of payment.
31 Subject to the limitation in subsection (i), a State
32 policeman, conservation police officer, or investigator for
33 the Secretary of State may elect to establish eligible
34 creditable service for up to 10 years of service as a
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1 sheriff's law enforcement employee under Article 7, by filing
2 a written election with the Board on or before January 31,
3 1993, and paying to the System by January 31, 1994 an amount
4 to be determined by the Board, equal to (i) the difference
5 between the amount of employee and employer contributions
6 transferred to the System under Section 7-139.7, and the
7 amounts that would have been contributed had such
8 contributions been made at the rates applicable to State
9 policemen, plus (ii) interest thereon at the effective rate
10 for each year, compounded annually, from the date of service
11 to the date of payment.
12 (i) The total amount of eligible creditable service
13 established by any person under subsections (g), (h), and
14 (j), (k), and (l) of this Section shall not exceed 12 years.
15 (j) Subject to the limitation in subsection (i), an
16 investigator for the Office of the State's Attorneys
17 Appellate Prosecutor or a controlled substance inspector may
18 elect to establish eligible creditable service for up to 10
19 years of his service as a policeman under Article 3 or a
20 sheriff's law enforcement employee under Article 7, by filing
21 a written election with the Board, accompanied by payment of
22 an amount to be determined by the Board, equal to (1) the
23 difference between the amount of employee and employer
24 contributions transferred to the System under Section 3-110.6
25 or 7-139.8, and the amounts that would have been contributed
26 had such contributions been made at the rates applicable to
27 State policemen, plus (2) interest thereon at the effective
28 rate for each year, compounded annually, from the date of
29 service to the date of payment.
30 (k) Subject to the limitation in subsection (i) of this
31 Section, an alternative formula employee may elect to
32 establish eligible creditable service for periods spent as a
33 full-time law enforcement officer or full-time corrections
34 officer employed by the federal government or by a state or
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1 local government located outside of Illinois, for which
2 credit is not held in any other public employee pension fund
3 or retirement system. To obtain this credit, the applicant
4 must file a written application with the Board by March 31,
5 1998, accompanied by evidence of eligibility acceptable to
6 the Board and payment of an amount to be determined by the
7 Board, equal to (1) employee contributions for the credit
8 being established, based upon the applicant's salary on the
9 first day as an alternative formula employee after the
10 employment for which credit is being established and the
11 rates then applicable to alternative formula employees, plus
12 (2) an amount determined by the Board to be the employer's
13 normal cost of the benefits accrued for the credit being
14 established, plus (3) regular interest on the amounts in
15 items (1) and (2) from the first day as an alternative
16 formula employee after the employment for which credit is
17 being established to the date of payment.
18 (l) Subject to the limitation in subsection (i), a
19 security employee of the Department of Corrections may elect,
20 not later than July 1, 1998, to establish eligible creditable
21 service for up to 10 years of his or her service as a
22 policeman under Article 3, by filing a written election with
23 the Board, accompanied by payment of an amount to be
24 determined by the Board, equal to (i) the difference between
25 the amount of employee and employer contributions transferred
26 to the System under Section 3-110.5, and the amounts that
27 would have been contributed had such contributions been made
28 at the rates applicable to security employees of the
29 Department of Corrections, plus (ii) interest thereon at the
30 effective rate for each year, compounded annually, from the
31 date of service to the date of payment.
32 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96;
33 89-507, eff. 7-1-97.)
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1 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
2 Sec. 15-157. Employee Contributions.
3 (a) Each participating employee shall make contributions
4 towards the retirement annuity of each payment of earnings
5 applicable to employment under this system on and after the
6 date of becoming a participant as follows: Prior to
7 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
8 to August 31, 1955, 5%; from September 1, 1955 to August 31,
9 1969, 6%; from September 1, 1969, 6 1/2%. These
10 contributions are to be considered as normal contributions
11 for purposes of this Article.
12 Each participant who is a police officer or firefighter
13 shall make normal contributions of 8% of each payment of
14 earnings applicable to employment as a police officer or
15 firefighter under this system on or after September 1, 1981,
16 unless he or she files with the board within 60 days after
17 the effective date of this amendatory Act of 1991 or 60 days
18 after the board receives notice that he or she is employed as
19 a police officer or firefighter, whichever is later, a
20 written notice waiving the retirement formula provided by
21 Rule 4 of Section 15-136. This waiver shall be irrevocable.
22 If a participant had met the conditions set forth in Section
23 15-132.1 prior to the effective date of this amendatory Act
24 of 1991 but failed to make the additional normal
25 contributions required by this paragraph, he or she may elect
26 to pay the additional contributions plus compound interest at
27 the effective rate. If such payment is received by the
28 board, the service shall be considered as police officer
29 service in calculating the retirement annuity under Rule 4 of
30 Section 15-136.
31 (b) Starting September 1, 1969, each participating
32 employee shall make additional contributions of 1/2 of 1% of
33 earnings to finance a portion of the cost of the annual
34 increases in retirement annuity provided under Section
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1 15-136.
2 (c) Each participating employee shall make survivors
3 insurance contributions of 1% of earnings applicable under
4 this system on and after August 1, 1959. Contributions in
5 excess of $80 during any fiscal year beginning August 31,
6 1969 and in excess of $120 during any fiscal year thereafter
7 until September 1, 1971 shall be considered as additional
8 contributions for purposes of this Article.
9 (d) If the board by board rule so permits and subject to
10 such conditions and limitations as may be specified in its
11 rules, a participant may make other additional contributions
12 of such percentage of earnings or amounts as the participant
13 shall elect in a written notice thereof received by the
14 board.
15 (e) That fraction of a participant's total accumulated
16 normal contributions, the numerator of which is equal to the
17 number of years of service in excess of that which is
18 required to qualify for the maximum retirement annuity, and
19 the denominator of which is equal to the total service of the
20 participant, shall be considered as accumulated additional
21 contributions. The determination of the applicable maximum
22 annuity and the adjustment in contributions required by this
23 provision shall be made as of the date of the participant's
24 retirement.
25 (f) Notwithstanding the foregoing, a participating
26 employee shall not be required to make contributions under
27 this Section after the date upon which continuance of such
28 contributions would otherwise cause his or her retirement
29 annuity to exceed the maximum retirement annuity as specified
30 in clause (1) of subsection (c) of Section 15-136.
31 (g) A participating employee may make contributions for
32 the purchase of service credit under this Article.
33 (Source: P.A. 86-272; 86-1488.)
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1 (40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
2 Sec. 15-157.1. Pickup Pick up of employee contributions.
3 (a) Each employer shall pick up the employee
4 contributions required under subsections (a), (b), and (c) of
5 Section 15-157 for all earnings payments made on and after
6 January 1, 1981, and the contributions so picked up shall be
7 treated as employer contributions in determining tax
8 treatment under the United States Internal Revenue Code.
9 These contributions shall not be included as gross income of
10 the participant until such time as they are distributed or
11 made available. The employer shall pay these employee
12 contributions from the same source of funds which is used in
13 paying earnings to the employee. The employer may pick up
14 these contributions by a reduction in the cash salary of the
15 participants, or by an offset against a future salary
16 increase, or by a combination of a reduction in salary and
17 offset against a future salary increase.
18 (b) Subject to the requirements of federal law, a
19 participating employee may elect to have the employer pick up
20 optional contributions that the participant has elected to
21 pay to the System under Section 15-157(g), and the
22 contributions so picked up shall be treated as employer
23 contributions for the purposes of determining federal tax
24 treatment under the federal Internal Revenue Code of 1986.
25 These contributions shall not be included as gross income of
26 the participant until such time as they are distributed or
27 made available. The employer shall pick up the contributions
28 by a reduction in the cash salary of the participant and
29 shall pay the contributions from the same source of funds
30 that is used to pay earnings to the participant. The
31 election to have optional contributions picked up is
32 irrevocable.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
2 Sec. 16-127. Computation of creditable service.
3 (a) Each member shall receive regular credit for all
4 service as a teacher from the date membership begins, for
5 which satisfactory evidence is supplied and all contributions
6 have been paid.
7 (b) The following periods of service shall earn optional
8 credit and each member shall receive credit for all such
9 service for which satisfactory evidence is supplied and all
10 contributions have been paid as of the date specified:
11 (1) Prior service as a teacher.
12 (2) Service in a capacity essentially similar or
13 equivalent to that of a teacher, in the public common
14 schools in school districts in this State not included
15 within the provisions of this System, or of any other
16 State, territory, dependency or possession of the United
17 States, or in schools operated by or under the auspices
18 of the United States, or under the auspices of any agency
19 or department of any other State, and service during any
20 period of professional speech correction or special
21 education experience for a public agency within this
22 State or any other State, territory, dependency or
23 possession of the United States, and service prior to
24 February 1, 1951 as a recreation worker for the Illinois
25 Department of Public Safety, for a period not exceeding
26 the lesser of 2/5 of the total creditable service of the
27 member or 10 years. The maximum service of 10 years
28 which is allowable under this paragraph shall be reduced
29 by the service credit which is validated by other
30 retirement systems under paragraph (i) of Section 15-113
31 and paragraph 1 of Section 17-133. Credit granted under
32 this paragraph may not be used in determination of a
33 retirement annuity or disability benefits unless the
34 member has at least 5 years of creditable service earned
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1 subsequent to this employment with one or more of the
2 following systems: Teachers' Retirement System of the
3 State of Illinois, State Universities Retirement System,
4 and the Public School Teachers' Pension and Retirement
5 Fund of Chicago. Whenever such service credit exceeds
6 the maximum allowed for all purposes of this Article, the
7 first service rendered in point of time shall be
8 considered. The changes to this subdivision (b)(2) made
9 by Public Act 86-272 shall apply not only to persons who
10 on or after its effective date (August 23, 1989) are in
11 service as a teacher under the System, but also to
12 persons whose status as such a teacher terminated prior
13 to such effective date, whether or not such person is an
14 annuitant on that date.
15 (3) Any periods immediately following teaching
16 service, under this System or under Article 17, (or
17 immediately following service prior to February 1, 1951
18 as a recreation worker for the Illinois Department of
19 Public Safety) spent in active service with the military
20 forces of the United States; periods spent in educational
21 programs that prepare for return to teaching sponsored by
22 the federal government following such active military
23 service; if a teacher returns to teaching service within
24 one calendar year after discharge or after the completion
25 of the educational program, a further period, not
26 exceeding one calendar year, between time spent in
27 military service or in such educational programs and the
28 return to employment as a teacher under this System; and
29 a period of up to 2 years of active military service not
30 immediately following employment as a teacher.
31 The changes to this Section and Section 16-128
32 relating to military service made by P.A. 87-794 shall
33 apply not only to persons who on or after its effective
34 date are in service as a teacher under the System, but
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1 also to persons whose status as a teacher terminated
2 prior to that date, whether or not the person is an
3 annuitant on that date. In the case of an annuitant who
4 applies for credit allowable under this Section for a
5 period of military service that did not immediately
6 follow employment, and who has made the required
7 contributions for such credit, the annuity shall be
8 recalculated to include the additional service credit,
9 with the increase taking effect on the date the System
10 received written notification of the annuitant's intent
11 to purchase the credit, if payment of all the required
12 contributions is made within 60 days of such notice, or
13 else on the first annuity payment date following the date
14 of payment of the required contributions. In calculating
15 the automatic annual increase for an annuity that has
16 been recalculated under this Section, the increase
17 attributable to the additional service allowable under
18 P.A. 87-794 shall be included in the calculation of
19 automatic annual increases accruing after the effective
20 date of the recalculation.
21 Credit for military service shall be determined as
22 follows: if entry occurs during the months of July,
23 August, or September and the member was a teacher at the
24 end of the immediately preceding school term, credit
25 shall be granted from July 1 of the year in which he or
26 she entered service; if entry occurs during the school
27 term and the teacher was in teaching service at the
28 beginning of the school term, credit shall be granted
29 from July 1 of such year. In all other cases where credit
30 for military service is allowed, credit shall be granted
31 from the date of entry into the service.
32 The total period of military service for which
33 credit is granted shall not exceed 5 years for any member
34 unless the service: (A) is validated before July 1,
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1 1964, and (B) does not extend beyond July 1, 1963.
2 Credit for military service shall be granted under this
3 Section only if not more than 5 years of the military
4 service for which credit is granted under this Section is
5 used by the member to qualify for a military retirement
6 allotment from any branch of the armed forces of the
7 United States. The changes to this subdivision (b)(3)
8 made by Public Act 86-272 shall apply not only to persons
9 who on or after its effective date (August 23, 1989) are
10 in service as a teacher under the System, but also to
11 persons whose status as such a teacher terminated prior
12 to such effective date, whether or not such person is an
13 annuitant on that date.
14 (4) Any periods served as a member of the General
15 Assembly.
16 (5)(i) Any periods for which a teacher, as defined
17 in Section 16-106, is granted a leave of absence,
18 provided he or she returns to teaching service creditable
19 under this System or the State Universities Retirement
20 System following the leave; (ii) periods during which a
21 teacher is involuntarily laid off from teaching, provided
22 he or she returns to teaching following the lay-off; and
23 (iii) periods prior to July 1, 1983 during which a
24 teacher ceased covered employment due to pregnancy,
25 provided that the teacher returned to teaching service
26 creditable under this System or the State Universities
27 Retirement System following the pregnancy and submits
28 evidence satisfactory to the Board documenting that the
29 employment ceased due to pregnancy; and (iv) periods
30 prior to July 1, 1983 during which a teacher ceased
31 covered employment for the purpose of adopting an infant
32 under 3 years of age or caring for a newly adopted infant
33 under 3 years of age, provided that the teacher returned
34 to teaching service creditable under this System or the
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1 State Universities Retirement System following the
2 adoption and submits evidence satisfactory to the Board
3 documenting that the employment ceased for the purpose of
4 adopting an infant under 3 years of age or caring for a
5 newly adopted infant under 3 years of age. However,
6 total credit under this paragraph (5) may not exceed 3
7 years.
8 Any qualified member or annuitant may apply for
9 credit under item (iii) or (iv) of this paragraph (5)
10 without regard to whether service was terminated before
11 the effective date of this amendatory Act of 1997 1995.
12 In the case of an annuitant who establishes credit under
13 item (iii) or (iv), the annuity shall be recalculated to
14 include the additional service credit. The increase in
15 annuity shall take effect on the date the System receives
16 written notification of the annuitant's intent to
17 purchase the credit, if the required evidence is
18 submitted and the required contribution paid within 60
19 days of that notification, otherwise on the first annuity
20 payment date following the System's receipt of the
21 required evidence and contribution. The increase in an
22 annuity recalculated under this provision shall be
23 included in the calculation of automatic annual increases
24 in the annuity accruing after the effective date of the
25 recalculation.
26 Optional credit may be purchased under this
27 subsection (b)(5) for periods during which a teacher has
28 been granted a leave of absence pursuant to Section 24-13
29 of the School Code. A teacher whose service under this
30 Article terminated prior to the effective date of P.A.
31 86-1488 shall be eligible to purchase such optional
32 credit. If a teacher who purchases this optional credit
33 is already receiving a retirement annuity under this
34 Article, the annuity shall be recalculated as if the
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1 annuitant had applied for the leave of absence credit at
2 the time of retirement. The difference between the
3 entitled annuity and the actual annuity shall be credited
4 to the purchase of the optional credit. The remainder of
5 the purchase cost of the optional credit shall be paid on
6 or before April 1, 1992.
7 The change in this paragraph made by Public Act
8 86-273 shall be applicable to teachers who retire after
9 June 1, 1989, as well as to teachers who are in service
10 on that date.
11 (6) Any days of unused and uncompensated
12 accumulated sick leave earned by a teacher. The service
13 credit granted under this paragraph shall be the ratio of
14 the number of unused and uncompensated accumulated sick
15 leave days to 170 days, subject to a maximum of one year
16 of service credit. Prior to the member's retirement,
17 each former employer shall certify to the System the
18 number of unused and uncompensated accumulated sick leave
19 days credited to the member at the time of termination of
20 service. The period of unused sick leave shall not be
21 considered in determining the effective date of
22 retirement. A member is not required to make
23 contributions in order to obtain service credit for
24 unused sick leave.
25 Credit for sick leave shall, at retirement, be
26 granted by the System for any retiring regional or
27 assistant regional superintendent of schools at the rate
28 of 6 days per year of creditable service or portion
29 thereof established while serving as such superintendent
30 or assistant superintendent.
31 (7) Periods prior to February 1, 1987 served as an
32 employee of the Illinois Mathematics and Science Academy
33 for which credit has not been terminated under Section
34 15-113.9 of this Code.
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1 (8) Service as a substitute teacher for work
2 performed prior to July 1, 1990.
3 (9) Service as a part-time teacher for work
4 performed prior to July 1, 1990.
5 (10) Up to 2 years of employment with Southern
6 Illinois University - Carbondale from September 1, 1959
7 to August 31, 1961, or with Governors State University
8 from September 1, 1972 to August 31, 1974, for which the
9 teacher has no credit under Article 15. To receive
10 credit under this item (10), a teacher must apply in
11 writing to the Board and pay the required contributions
12 before May 1, 1993 and have at least 12 years of service
13 credit under this Article.
14 (c) The service credits specified in this Section shall
15 be granted only if: (1) such service credits are not used
16 for credit in any other statutory tax-supported public
17 employee retirement system other than the federal Social
18 Security program; and (2) the member makes the required
19 contributions as specified in Section 16-128. The service
20 credit shall be effective as of the date the required
21 contributions are completed.
22 Any service credits granted under this Section shall
23 terminate upon cessation of membership for any cause.
24 Credit may not be granted under this Section covering any
25 period for which an age retirement or disability retirement
26 allowance has been paid.
27 (Source: P.A. 88-45; 89-430, eff. 12-15-95.)
28 (40 ILCS 5/16-141) (from Ch. 108 1/2, par. 16-141)
29 Sec. 16-141. Survivors' benefits - death in service.
30 (a) Upon the death of a member in service occurring on
31 or after July 1, 1990, a beneficiary designated by the member
32 shall be entitled to receive, in a single sum, for each
33 completed year of service up to a maximum of 6 years, an
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1 amount equal to 1/6 of the member's highest annual salary
2 rate within the last 4 years of service. If death occurs
3 prior to completion of the first year of service, the
4 beneficiary shall be entitled to receive, in a single sum,
5 an amount equal to 1/6 of the most recent annual salary rate.
6 If no beneficiary is designated by the member or if no
7 designated beneficiary survives the member, the single sum
8 benefit under this paragraph shall be paid to the eligible
9 dependent beneficiary or to the trust established for such
10 eligible dependent beneficiary, as determined under paragraph
11 (3) of Section 16-140, or, if there is no dependent
12 beneficiary, to the decedent's estate upon receipt of proper
13 proof of death.
14 (b) If the deceased member had at least 1.5 years of
15 creditable service, had rendered at least 60 days of
16 creditable service within the 18 months immediately preceding
17 death and had not designated a non-dependent beneficiary who
18 survives, a dependent beneficiary may elect to receive,
19 instead of the benefit under subsection (a) of this Section,
20 a single sum payment of $1,000, divided by the number of such
21 beneficiaries, together with a survivor's benefit as
22 specified under the following paragraphs:
23 (1) A surviving spouse, if no eligible children
24 exist, shall receive a survivor's benefit of 30% of
25 average salary, beginning at age 50 or upon the date of
26 the member's death, whichever is later, except that if
27 the member's death occurred before July 1, 1973 and the
28 surviving spouse is less than age 55 on the effective
29 date of this amendatory Act of 1997, the survivor's
30 benefit shall begin on the effective date of this
31 amendatory Act of 1997 or upon the surviving spouse's
32 attainment of age 50, whichever occurs later at age 55.
33 (2) A surviving spouse, regardless of age, who is
34 providing for the support of the deceased member's
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1 eligible child, shall receive a survivor's benefit of 30%
2 of average salary, plus the sum of (A) 20% of average
3 salary on account of each dependent child, and (B) 10% of
4 average salary divided by the number of children entitled
5 to this benefit.
6 (3) Each eligible child, if there is no eligible
7 surviving spouse, shall receive upon the death of the
8 member a survivor's benefit equal to the sum of: (A) 20%
9 of average salary, and (B) 10% of average salary divided
10 by the number of children entitled to this benefit.
11 (4) A dependent parent shall receive upon
12 attainment of age 55 or the date of the member's death,
13 whichever is later, a survivor's benefit of 30% of
14 average salary, unless dependency is terminated by
15 remarriage or otherwise.
16 (c) No election under this Section may be made by a
17 dependent beneficiary if a non-dependent beneficiary
18 designated by the member survives such member.
19 (d) Notwithstanding the other provisions of this
20 Section, if the member is in receipt of a benefit at the time
21 of his or her death, a dependent beneficiary shall receive a
22 survivor benefit beginning the first of the month following
23 the death of the member.
24 (e) In cases where the changes to this Section or
25 Section 16-142 made by Public Act 87-1265 this amendatory Act
26 of 1993 increase the amount of a single-sum death benefit
27 that has already been paid by the System, the System shall
28 pay to the beneficiary the amount of the increase provided by
29 this amendatory Act.
30 (Source: P.A. 86-273; 87-1265.)
31 (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
32 Sec. 17-116.1. Early retirement without discount.
33 (a) A member retiring after June 1, 1980 and before June
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1 30, 1995 and within 6 months of the last day of teaching for
2 which retirement contributions were required, may elect at
3 the time of application to make a one time employee
4 contribution to the system and thereby avoid the early
5 retirement reduction in allowance specified in paragraph (4)
6 of Section 17-116 of this Article. The exercise of the
7 election shall obligate the employer to also make a one time
8 non-refundable contribution to the fund.
9 (b) Subject to authorization by the employer as provided
10 in subsection (c), a member retiring on or after June 30,
11 1995 and on or before June 30, 2000 and within 6 months of
12 the last day of teaching for which retirement contributions
13 were required may elect at the time of application to make a
14 one-time employee contribution to the Fund and thereby avoid
15 the early retirement reduction in allowance specified in
16 paragraph (4) of Section 17-116. The exercise of the
17 election shall obligate the employer to also make a one-time
18 nonrefundable contribution to the Fund.
19 (c) The benefits provided in subsection (b) are
20 available only to members who retire, during a specified
21 period, from employment with an employer that has adopted and
22 filed with the board of the Fund a resolution expressly
23 providing for the creation of an early retirement without
24 discount program under this Section for that period.
25 The employer has the full discretion and authority to
26 determine whether an early retirement without discount
27 program is in its best interest and to provide such a program
28 to its eligible employees in accordance with this Section.
29 The employer may decide to authorize such a program for one
30 or more of the following periods: for the period beginning
31 July 1, 1997 and ending June 30, 1998, in which case the
32 resolution must be adopted by January 1, 1998; for the period
33 beginning July 1, 1998 and ending June 30, 1999, in which
34 case the resolution must be adopted by March 31, 1998; and
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1 for the period beginning July 1, 1999 and ending June 30,
2 2000, in which case the resolution must be adopted by March
3 31, 1999. The resolution must be filed with the board of the
4 Fund within 10 days after it is adopted. A single resolution
5 may authorize an early retirement without discount program as
6 provided in this Section for more than one period.
7 Notwithstanding Section 17-157, the employer shall also
8 have full discretion and authority to determine whether to
9 allow its employees who withdrew from service on or after
10 June 30, 1995 and before the effective date of this
11 amendatory Act of 1997 to participate in an early retirement
12 without discount program under subsection (b). An early
13 retirement without discount program for those who withdrew
14 from service on or after June 30, 1995 and before the
15 effective date of this amendatory Act of 1997 may be
16 authorized only by a resolution of the employer that is
17 adopted by January 1, 1998 and filed with the board of the
18 Fund within 10 days after its adoption. If such a resolution
19 is duly adopted and filed, a person who (i) withdrew from
20 service with the employer on or after June 30, 1995 and
21 before the effective date of this amendatory Act of 1997,
22 (ii) qualifies for early retirement without discount under
23 subsection (b), (iii) applies to the Fund within 90 days
24 after the authorizing resolution is adopted, and (iv) pays
25 the required employee contribution shall have his or her
26 retirement pension recalculated in accordance with subsection
27 (b). The resulting increase shall be effective retroactively
28 to the starting date of the retirement pension.
29 (d) The one-time employee contribution shall be equal to
30 7% of the retiring member's highest full-time annual salary
31 rate used in the determination of the average salary rate for
32 retirement pension, or if not full-time then the full-time
33 equivalent, multiplied by (1) the number of years the teacher
34 is under age 60, or (2) the number of years the employee's
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1 creditable service is less than 35 years, whichever is less.
2 The employer contribution shall be 20% of such salary
3 multiplied by such number of years.
4 (e) Upon receipt of the application and election, the
5 board shall determine the one time employee and employer
6 contributions. The provisions of this Section shall not be
7 applicable until all the above outlined contributions have
8 been received by the fund; however, the date such
9 contributions are received shall not be considered in
10 determining the effective date of retirement.
11 (f) The number of employees who may retire under this
12 Section in any year may be limited at the option of the
13 employer to a specified percentage of those eligible, not
14 lower than 30%, with the right to participate to be allocated
15 among those applying on the basis of seniority in the service
16 of the employer.
17 (Source: P.A. 86-272.)
18 Section 90. The State Mandates Act is amended by adding
19 Section 8.21 as follows:
20 (30 ILCS 805/8.21 new)
21 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
22 and 8 of this Act, no reimbursement by the State is required
23 for the implementation of any mandate created by this
24 amendatory Act of 1997.
25 Section 95. No acceleration or delay. Where this Act
26 makes changes in a statute that is represented in this Act by
27 text that is not yet or no longer in effect (for example, a
28 Section represented by multiple versions), the use of that
29 text does not accelerate or delay the taking effect of (i)
30 the changes made by this Act or (ii) provisions derived from
31 any other Public Act.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.".