State of Illinois
90th General Assembly
Legislation

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[ Senate Amendment 002 ]

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
                            -2-           SRS90HB0313MNbmam01
 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
                            -3-           SRS90HB0313MNbmam01
 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
                            -4-           SRS90HB0313MNbmam01
 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
                            -5-           SRS90HB0313MNbmam01
 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
                            -6-           SRS90HB0313MNbmam01
 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
                            -7-           SRS90HB0313MNbmam01
 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
                            -8-           SRS90HB0313MNbmam01
 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
                            -9-           SRS90HB0313MNbmam01
 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
                            -10-          SRS90HB0313MNbmam01
 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.)
                            -11-          SRS90HB0313MNbmam01
 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
                            -12-          SRS90HB0313MNbmam01
 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
                            -13-          SRS90HB0313MNbmam01
 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
                            -14-          SRS90HB0313MNbmam01
 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
                            -15-          SRS90HB0313MNbmam01
 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
                            -16-          SRS90HB0313MNbmam01
 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
                            -17-          SRS90HB0313MNbmam01
 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.
                            -18-          SRS90HB0313MNbmam01
 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
                            -19-          SRS90HB0313MNbmam01
 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:
                            -20-          SRS90HB0313MNbmam01
 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
                            -21-          SRS90HB0313MNbmam01
 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
                            -22-          SRS90HB0313MNbmam01
 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
                            -23-          SRS90HB0313MNbmam01
 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
                            -24-          SRS90HB0313MNbmam01
 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
                            -25-          SRS90HB0313MNbmam01
 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
                            -26-          SRS90HB0313MNbmam01
 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
                            -27-          SRS90HB0313MNbmam01
 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
                            -29-          SRS90HB0313MNbmam01
 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
                            -30-          SRS90HB0313MNbmam01
 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.
                            -31-          SRS90HB0313MNbmam01
 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
                            -32-          SRS90HB0313MNbmam01
 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),
                            -34-          SRS90HB0313MNbmam01
 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
                            -35-          SRS90HB0313MNbmam01
 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
                            -36-          SRS90HB0313MNbmam01
 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
                            -37-          SRS90HB0313MNbmam01
 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
                            -38-          SRS90HB0313MNbmam01
 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
                            -39-          SRS90HB0313MNbmam01
 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.
                            -40-          SRS90HB0313MNbmam01
 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
                            -41-          SRS90HB0313MNbmam01
 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
                            -42-          SRS90HB0313MNbmam01
 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)
                            -43-          SRS90HB0313MNbmam01
 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
                            -44-          SRS90HB0313MNbmam01
 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
                            -45-          SRS90HB0313MNbmam01
 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,
                            -46-          SRS90HB0313MNbmam01
 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
                            -47-          SRS90HB0313MNbmam01
 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
                            -48-          SRS90HB0313MNbmam01
 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
                            -49-          SRS90HB0313MNbmam01
 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
                            -50-          SRS90HB0313MNbmam01
 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
                            -51-          SRS90HB0313MNbmam01
 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
                            -52-          SRS90HB0313MNbmam01
 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
                            -54-          SRS90HB0313MNbmam01
 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
                            -55-          SRS90HB0313MNbmam01
 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
                            -56-          SRS90HB0313MNbmam01
 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.)
                            -57-          SRS90HB0313MNbmam01
 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
                            -58-          SRS90HB0313MNbmam01
 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.
                            -59-          SRS90HB0313MNbmam01
 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
                            -60-          SRS90HB0313MNbmam01
 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.
                            -61-          SRS90HB0313MNbmam01
 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.
                            -62-          SRS90HB0313MNbmam01
 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
                            -64-          SRS90HB0313MNbmam01
 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
                            -66-          SRS90HB0313MNbmam01
 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.
                            -67-          SRS90HB0313MNbmam01
 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
                            -68-          SRS90HB0313MNbmam01
 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
                            -69-          SRS90HB0313MNbmam01
 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
                            -70-          SRS90HB0313MNbmam01
 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
                            -71-          SRS90HB0313MNbmam01
 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
                            -72-          SRS90HB0313MNbmam01
 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
                            -73-          SRS90HB0313MNbmam01
 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.
                            -74-          SRS90HB0313MNbmam01
 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
                            -75-          SRS90HB0313MNbmam01
 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
                            -76-          SRS90HB0313MNbmam01
 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
                            -77-          SRS90HB0313MNbmam01
 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
                            -78-          SRS90HB0313MNbmam01
 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
                            -79-          SRS90HB0313MNbmam01
 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.
                            -80-          SRS90HB0313MNbmam01
 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
                            -81-          SRS90HB0313MNbmam01
 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
                            -82-          SRS90HB0313MNbmam01
 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
                            -83-          SRS90HB0313MNbmam01
 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
                            -84-          SRS90HB0313MNbmam01
 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;
                            -85-          SRS90HB0313MNbmam01
 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
                            -86-          SRS90HB0313MNbmam01
 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.
                            -87-          SRS90HB0313MNbmam01
 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
                            -88-          SRS90HB0313MNbmam01
 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
                            -89-          SRS90HB0313MNbmam01
 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
                            -90-          SRS90HB0313MNbmam01
 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
                            -91-          SRS90HB0313MNbmam01
 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
                            -92-          SRS90HB0313MNbmam01
 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
                            -93-          SRS90HB0313MNbmam01
 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
                            -94-          SRS90HB0313MNbmam01
 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,
                            -95-          SRS90HB0313MNbmam01
 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
                            -96-          SRS90HB0313MNbmam01
 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
                            -97-          SRS90HB0313MNbmam01
 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
                            -98-          SRS90HB0313MNbmam01
 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
                            -99-          SRS90HB0313MNbmam01
 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
                            -100-         SRS90HB0313MNbmam01
 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
                            -101-         SRS90HB0313MNbmam01
 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
                            -102-         SRS90HB0313MNbmam01
 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
                            -103-         SRS90HB0313MNbmam01
 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
                            -104-         SRS90HB0313MNbmam01
 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
                            -105-         SRS90HB0313MNbmam01
 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
                            -106-         SRS90HB0313MNbmam01
 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.)
                            -107-         SRS90HB0313MNbmam01
 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
                            -108-         SRS90HB0313MNbmam01
 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.)
                            -109-         SRS90HB0313MNbmam01
 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.)
                            -110-         SRS90HB0313MNbmam01
 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
                            -111-         SRS90HB0313MNbmam01
 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
                            -112-         SRS90HB0313MNbmam01
 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,
                            -113-         SRS90HB0313MNbmam01
 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
                            -114-         SRS90HB0313MNbmam01
 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
                            -115-         SRS90HB0313MNbmam01
 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.
                            -116-         SRS90HB0313MNbmam01
 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
                            -117-         SRS90HB0313MNbmam01
 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
                            -118-         SRS90HB0313MNbmam01
 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
                            -119-         SRS90HB0313MNbmam01
 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
                            -120-         SRS90HB0313MNbmam01
 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
                            -121-         SRS90HB0313MNbmam01
 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.
                            -122-         SRS90HB0313MNbmam01
 1        Section 99. Effective date.  This Act takes  effect  upon
 2    becoming law.".

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