State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ House Amendment 001 ]

90_HB0488

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          Amends  the  Metropolitan  Water   Reclamation   District
      Article  of the Pension Code.  Extends the deadline for early
      retirement  without   discount;   changes   the   eligibility
      requirements   and   method   of   calculating  the  required
      contributions.  Extends the deadline for participating in the
      optional plan of additional contributions; limits the maximum
      optional benefit that may be purchased under the plan  during
      its  final 5 years and prohibits participation by persons who
      first enter service after June 30, 1997.  For  new  employees
      only,  raises  the  minimum  retirement age from 50 to 55 and
      eliminates duty and  ordinary  disability  benefits  for  the
      first 3 days of compensable disability if the disability does
      not  extend  for at least 11 additional days.  Eliminates the
      duty  disability  benefit  for  children.   Grants  automatic
      annual increases to certain persons who retired  before  July
      1,  1985.   Imposes  additional  eligibility requirements for
      disability and survivor benefits.  Applies an age discount to
      the  minimum   surviving   spouse   benefit.    Changes   the
      definitions  of salary and final average salary.  Changes the
      salary used in the calculation of  alternative  benefits  for
      district  commissioners.   Changes the conditions for payment
      of contributions for leaves of absence.  Provides that future
      appointees to the Civil Service Board of the  District  shall
      not be deemed to be employees of the District for purposes of
      qualifying  to  participate in the Fund.  Removes certain age
      restrictions from  the  provisions  relating  to  the  period
      during  which  disability  benefits  may  be received.  Makes
      other changes in the manner of administering the Fund.   Also
      amends  the  General  Provisions  Article  to  authorize  the
      Metropolitan  Water  Reclamation  District  pension  fund  to
      invest  up  to  50% (rather than 40%) of its assets in stocks
      and convertible debt instruments.   Declares  that  the  bill
      accommodates  a  request  from  the  affected  unit  of local
      government.  Effective immediately.
                                                     LRB9002860EGfg
                                               LRB9002860EGfg
 1        AN ACT to amend the Illinois Pension Code in relation  to
 2    the Metropolitan Water Reclamation District.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing  Sections  1-113,  13-204,  13-207,  13-208, 13-301,
 7    13-302,  13-304,  13-305,  13-306,  13-308,  13-309,  13-310,
 8    13-314, 13-401, and 13-402 as follows:
 9        (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
10        Sec.  1-113.  Investment   authority.    The   investment
11    authority  of  a  board of trustees of a retirement system or
12    pension  fund  established  under  this  Code  shall,  if  so
13    provided in the Article establishing such  retirement  system
14    or pension fund, embrace the following investments:
15        (1)  Bonds,  notes  and  other  direct obligations of the
16    United States Government; bonds, notes and other  obligations
17    of  any  United  States Government agency or instrumentality,
18    whether or not guaranteed; and obligations the principal  and
19    interest  of  which  are  guaranteed  unconditionally  by the
20    United States Government or by an agency  or  instrumentality
21    thereof.
22        (2)  Obligations  of the Inter-American Development Bank,
23    the International Bank for  Reconstruction  and  Development,
24    the  African  Development  Bank,  the  International  Finance
25    Corporation, and the Asian Development Bank.
26        (3)  Obligations  of  any  state,  or  of  any  political
27    subdivision  in  Illinois,  or  of  any county or city in any
28    other state having a population as shown by the last  federal
29    census of not less than 30,000 inhabitants provided that such
30    political  subdivision  is  not  permitted  by  law to become
31    indebted in excess  of  10%  of  the  assessed  valuation  of
                            -2-                LRB9002860EGfg
 1    property  therein  and  has not defaulted for a period longer
 2    than 30 days in the payment of interest and principal on  any
 3    of its general obligations or indebtedness during a period of
 4    10 calendar years immediately preceding such investment.
 5        (4)  Nonconvertible  bonds,  debentures,  notes and other
 6    corporate obligations of any corporation created or  existing
 7    under the laws of the United States or any state, district or
 8    territory  thereof, provided there has been no default on the
 9    obligations of the corporation or its  predecessor(s)  during
10    the 5 calendar years immediately preceding the purchase.
11        (5)  Obligations  guaranteed by the Government of Canada,
12    or by any Province of Canada, or by any Canadian city with  a
13    population of not less than 150,000 inhabitants, provided (a)
14    they  are  payable  in  United States currency and are exempt
15    from any Canadian withholding tax; (b) the investment in  any
16    one  issue  of  bonds  shall  not  exceed  10%  of the amount
17    outstanding; and (c) the total investments at book  value  in
18    Canadian  securities  shall  be  limited  to  5% of the total
19    investment account of the board at book value.
20        (5.1)  Direct obligations of the State of Israel for  the
21    payment  of  money,  or  obligations for the payment of money
22    which are guaranteed as  to  the  payment  of  principal  and
23    interest by the State of Israel, or common or preferred stock
24    or  notes issued by a bank owned or controlled in whole or in
25    part by the State of Israel, on the following conditions:
26             (a)  The total investments in such obligations shall
27        not  exceed  5%  of  the  book  value  of  the  aggregate
28        investments owned by the board;
29             (b)  The State of Israel shall not be in default  in
30        the payment of principal or interest on any of its direct
31        general obligations on the date of such investment;
32             (c)  The bonds, stock or notes, and interest thereon
33        shall be payable in currency of the United States;
34             (d)  The  bonds  shall (1) contain an option for the
                            -3-                LRB9002860EGfg
 1        redemption thereof after 90 days from date of purchase or
 2        (2) either become due 5 years  from  the  date  of  their
 3        purchase  or  be subject to redemption 120 days after the
 4        date of notice for redemption;
 5             (e)  The investment in these  obligations  has  been
 6        approved in writing by investment counsel employed by the
 7        board, which counsel shall be a national or state bank or
 8        trust  company  authorized  to do a trust business in the
 9        State of Illinois, or  an  investment  advisor  qualified
10        under  the  Federal  Investment  Advisors Act of 1940 and
11        registered under the Illinois Securities Act of 1953;
12             (f)  The fund or system making the investment  shall
13        have at least $5,000,000 of net present assets.
14        (6)  Notes  secured by mortgages under Sections 203, 207,
15    220 and 221 of the National Housing Act which are insured  by
16    the  Federal  Housing Commissioner, or his successor assigns,
17    or  debentures  issued  by  such  Commissioner,   which   are
18    guaranteed  as  to  principal  and  interest  by  the Federal
19    Housing  Administration,  or  agency  of  the  United  States
20    Government,  provided  the  aggregate  investment  shall  not
21    exceed 20% of the total investment account of  the  board  at
22    book  value, and provided further that the investment in such
23    notes under Sections 220 and 221 shall  in  no  event  exceed
24    one-half  of  the  maximum  investment  in  notes  under this
25    paragraph.
26        (7)  Loans to veterans guaranteed in whole or part by the
27    United States Government pursuant to Title III of the Act  of
28    Congress  known  as  the  "Servicemen's  Readjustment  Act of
29    1944,"  58  Stat.  284,  38  U.S.C.  693,   as   amended   or
30    supplemented  from  time  to  time,  provided such guaranteed
31    loans are liens upon real estate.
32        (8)  Common and preferred  stocks  and  convertible  debt
33    securities authorized for investment of trust funds under the
34    laws of the State of Illinois, provided:
                            -4-                LRB9002860EGfg
 1             (a)  the   common  stocks,  except  as  provided  in
 2        subparagraph (h), are listed  on  a  national  securities
 3        exchange  as  defined  in the Federal Securities Exchange
 4        Act, or quoted in the National Association of  Securities
 5        Dealers Automated Quotation System (NASDAQ);
 6             (b)  the  securities are of a corporation created or
 7        existing under the laws  of  the  United  States  or  any
 8        state, district or territory thereof;
 9             (c)  the corporation is not in arrears on payment of
10        dividends on its preferred stock;
11             (d)  the   total   book  value  of  all  stocks  and
12        convertible debt owned by any pension fund or  retirement
13        system  shall  not exceed 40% of the aggregate book value
14        of all investments of such  pension  fund  or  retirement
15        system,  except  for  a  pension  fund or retirement that
16        system governed by Article 13 or 17, where the  total  of
17        all  stocks  and convertible debt shall not exceed 50% of
18        the aggregate book value of all fund investments;
19             (e)  the book value of stock  and  convertible  debt
20        investments in any one corporation shall not exceed 5% of
21        the  total investment account at book value in which such
22        securities are held, determined as of  the  date  of  the
23        investment,  and  the investments in the stock of any one
24        corporation shall not exceed 5% of the total  outstanding
25        stock  of  such  corporation,  and the investments in the
26        convertible debt of any one corporation shall not  exceed
27        5%  of  the  total  amount  of  such  debt  that  may  be
28        outstanding;
29             (f)  the  straight  preferred  stocks or convertible
30        preferred stocks  and  convertible  debt  securities  are
31        issued  or guaranteed by a corporation whose common stock
32        qualifies for investment by the board; and
33             (g)  that any common stocks not listed or quoted  as
34        provided  in  subdivision  8(a)  above  be limited to the
                            -5-                LRB9002860EGfg
 1        following types of institutions: (a) any bank which is  a
 2        member  of  the  Federal  Deposit  Insurance  Corporation
 3        having   capital  funds  represented  by  capital  stock,
 4        surplus and undivided profits of  at  least  $20,000,000;
 5        (b)  any  life  insurance  company  having  capital funds
 6        represented by capital stock, special surplus  funds  and
 7        unassigned  surplus  totalling  at least $50,000,000; and
 8        (c)  any  fire  or  casualty  insurance  company,  or   a
 9        combination  thereof, having capital funds represented by
10        capital stock, net surplus and voluntary reserves  of  at
11        least $50,000,000.
12        (9)  Withdrawable accounts of State chartered and federal
13    chartered  savings  and  loan  associations  insured  by  the
14    Federal  Savings  and Loan Insurance Corporation; deposits or
15    certificates of deposit in State and national  banks  insured
16    by  the  Federal  Deposit  Insurance  Corporation;  and share
17    accounts or share certificate accounts in a State or  federal
18    credit  union,  the accounts of which are insured as required
19    by The Illinois Credit Union Act or the Federal Credit  Union
20    Act, as applicable.
21        No  bank  or  savings  and loan association shall receive
22    investment funds as permitted by this subsection (9),  unless
23    it has complied with the requirements established pursuant to
24    Section 6 of the Public Funds Investment Act.
25        (10)  Trading,  purchase  or  sale  of  listed options on
26    underlying securities owned by the board.
27        (11)  Contracts  and  agreements   supplemental   thereto
28    providing  for  investments  in the general account of a life
29    insurance company authorized to do business in Illinois.
30        (12)  Conventional mortgage pass-through securities which
31    are  evidenced  by  interests  in   Illinois   owner-occupied
32    residential  mortgages,  having  not  less than an "A" rating
33    from at least one national securities  rating  service.  Such
34    mortgages  may  have loan-to-value ratios up to 95%, provided
                            -6-                LRB9002860EGfg
 1    that any amount over  80%  is  insured  by  private  mortgage
 2    insurance.  The  pool  of  such mortgages shall be insured by
 3    mortgage guaranty or equivalent insurance, in accordance with
 4    industry standards.
 5        (13)  Pooled or commingled funds managed by a national or
 6    State bank which is authorized to do a trust business in  the
 7    State  of Illinois, shares of registered investment companies
 8    as defined in the federal  Investment  Company  Act  of  1940
 9    which are registered under that Act, and separate accounts of
10    a  life  insurance  company  authorized  to  do  business  in
11    Illinois,  where  such pooled or commingled funds, shares, or
12    separate  accounts  are  comprised  of  common  or  preferred
13    stocks, bonds, or money market instruments.
14        (14)  Pooled or commingled funds managed by a national or
15    state bank which is authorized to do a trust business in  the
16    State  of  Illinois,  separate  accounts  managed  by  a life
17    insurance company authorized to do business in Illinois,  and
18    commingled  group  trusts  managed  by  an investment adviser
19    registered under the federal Investment Advisors Act of  1940
20    (15  U.S.C.  80b-1 et seq.) and under the Illinois Securities
21    Law of 1953, where such pooled or commingled funds,  separate
22    accounts  or  commingled  group  trusts are comprised of real
23    estate or loans upon real estate secured by first  or  second
24    mortgages.  The total investment in such pooled or commingled
25    funds,  commingled  group  trusts and separate accounts shall
26    not exceed 10% of the aggregate book value of all investments
27    owned by the fund.
28        (15)  Investment companies which (a)  are  registered  as
29    such  under  the  Investment  Company  Act  of  1940, (b) are
30    diversified, open-end management investment companies and (c)
31    invest only in money market instruments.
32        (16)  Up to 10% of the assets of the fund may be invested
33    in investments not included in paragraphs (1) through (15) of
34    this Section, provided that such investments comply with  the
                            -7-                LRB9002860EGfg
 1    requirements  and  restrictions  set forth in Sections 1-109,
 2    1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
 3        The board shall have the authority  to  enter  into  such
 4    agreements  and to execute such documents as it determines to
 5    be necessary to complete any investment transaction.
 6        Any limitations herein set forth shall be applicable only
 7    at the time of purchase and shall not require the liquidation
 8    of any investment at any time.
 9        All investments shall be clearly held and  accounted  for
10    to  indicate  ownership  by such board. Such board may direct
11    the registration of securities in its own name or in the name
12    of a nominee created for the express purpose of  registration
13    of  securities  by  a national or state bank or trust company
14    authorized to conduct  a  trust  business  in  the  State  of
15    Illinois.
16        Investments  shall  be carried at cost or at a book value
17    in accordance with accounting  procedures  approved  by  such
18    board.   No  adjustments shall be made in investment carrying
19    values for ordinary current market  price  fluctuations;  but
20    reserves  may  be  provided to account for possible losses or
21    unrealized gains as determined by such board.
22        The book value of investments held by any pension fund or
23    retirement  system  in  one  or  more  commingled  investment
24    accounts shall be the cost of its units of  participation  in
25    such  commingled account or accounts as recorded on the books
26    of such board.
27    (Source: P.A. 86-272; 87-575; 87-794; 87-895.)
28        (40 ILCS 5/13-204) (from Ch. 108 1/2, par. 13-204)
29        Sec. 13-204.  "Employee": (a) Any employee of  the  Water
30    Reclamation   District  appointed  to  the  classified  civil
31    service under the Metropolitan Water Reclamation District Act
32    or any employee exempt from civil  service  under  that  Act,
33    including  any  person  absent  from  such  position  due  to
                            -8-                LRB9002860EGfg
 1    assignment  to  any  other  position  of  employment  for the
 2    District; (b) any temporary employee of the District; (c) all
 3    appointed officers or acting officers of  the  District;  (d)
 4    any  employee  of the Retirement Board; and (e) any member of
 5    the Board of Commissioners of  the  District  who  elects  to
 6    participate  in  the  Fund  within  90  days after becoming a
 7    member.
 8        No person shall be an  employee  hereunder  whose  duties
 9    will  not  ordinarily  permit  120 days of service during one
10    calendar year.
11        A member of the Civil Service Board of the  District  who
12    is  first  appointed to that office on or after the effective
13    date of this amendatory Act of 1997  is  not,  by  virtue  of
14    holding  that  office, an "employee" for the purposes of this
15    Article.
16    (Source: P.A. 87-794.)
17        (40 ILCS 5/13-207) (from Ch. 108 1/2, par. 13-207)
18        Sec. 13-207.  "Salary": The salary paid  to  an  employee
19    for service to the District or to the Board, including salary
20    paid  for  vacation  and  sick leave and any amounts deferred
21    under a deferred compensation  plan  established  under  this
22    Code,  but  excluding (1) payment for unused vacation or sick
23    leave, (2) overtime pay, (3) termination pay, and (4) (3) any
24    compensation in the form of benefits other than the salary.
25    (Source: P.A. 87-794.)
26        (40 ILCS 5/13-208) (from Ch. 108 1/2, par. 13-208)
27        Sec.  13-208.   "Average  final  salary":   The   highest
28    average  annual  salary  as  calculated  by  accumulating the
29    salary for the highest any 52 consecutive pay periods  within
30    the  last  10 years of service immediately preceding the date
31    of retirement and dividing by 2.
32    (Source: P.A. 87-794.)
                            -9-                LRB9002860EGfg
 1        (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
 2        Sec.  13-301.   Retirement  annuity;  eligibility.    Any
 3    employee  who  withdraws  from  service and meets the age and
 4    service  requirements  and  other  conditions  set  forth  in
 5    subsections (a), (b),  (c)  or  (d)  hereof  is  entitled  to
 6    receive a retirement annuity.
 7        (a)  Withdrawal  on  or after age 60.  Any employee, upon
 8    withdrawal from service on or after attainment of age 60  and
 9    having  at  least  5  years  of  service,  is  entitled  to a
10    retirement annuity.
11        (b)  Withdrawal  on  or  after  attainment   of   minimum
12    retirement  age  50  and prior to age 60.  Any employee, upon
13    withdrawal from service on or after attainment of age 55 (age
14    50 if the employee first entered service before the effective
15    date of this amendatory Act of 1997) but prior to age 60  and
16    having  at  least  10  years  of  service,  is  entitled to a
17    retirement annuity as of the date of withdrawal  or,  at  the
18    option of the employee, at any time thereafter.  Any employee
19    who withdraws on or after attainment of age 55 (age 50 if the
20    employee  first  entered service before the effective date of
21    this amendatory Act of 1997) and prior to age  60  having  at
22    least  5  years but less than 10 years of service is entitled
23    to a retirement annuity upon attainment of age 62, subject to
24    the other requirements of this Article.
25        (c)  Withdrawal prior to minimum retirement age 50.   Any
26    employee,  upon  withdrawal from service prior to age 55 (age
27    50 if the employee first entered service before the effective
28    date of this amendatory Act of 1997) and having at  least  10
29    years  of  service,  shall  become  entitled  to a retirement
30    annuity upon attainment of age 55 (age  50  if  the  employee
31    first  entered  service  before  the  effective  date of this
32    amendatory Act of 1997) or, at the option of the employee, at
33    any time thereafter, subject to  the  other  requirements  of
34    this Article.
                            -10-               LRB9002860EGfg
 1        (d)  Withdrawal  while  disabled.  Any employee having at
 2    least 5 years of service who has received ordinary disability
 3    benefits on or after January 1, 1986 for the  maximum  period
 4    of  time  hereinafter  prescribed,  and  who  continues to be
 5    disabled and withdraws from service, shall be entitled  to  a
 6    retirement  annuity.   The  age  and service conditions as to
 7    eligibility for such  annuity  shall  be  waived  as  to  the
 8    employee,  but  the  early  retirement discount under Section
 9    13-302(b) shall apply.  If the employee is under  age  55  on
10    the  date  of  withdrawal,  the  retirement  annuity shall be
11    computed by assuming that the employee is  then  age  55  and
12    then  reduced to its actuarial equivalent at his attained age
13    on that date according to  applicable  mortality  tables  and
14    interest  rates.  The retirement annuity shall not be payable
15    for any period prior to the employee's attainment of  age  55
16    during  which  the  employee  is  able  to  return to gainful
17    employment.  Upon the employee's death while in receipt of  a
18    retirement  annuity,  a  surviving  spouse  or minor children
19    shall be entitled to receive a surviving spouse's annuity  or
20    child's   annuity   subject  to  the  conditions  hereinafter
21    prescribed in Sections 13-305 through 13-308.
22    (Source: P.A. 87-794.)
23        (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
24        Sec. 13-302.  Computation of retirement annuity.
25        (a)  Computation of annuity.  An employee  who  withdraws
26    from service on or after July 1, 1989 and who has met the age
27    and service requirements and other conditions for eligibility
28    set  forth  in  Section 13-301 of this Article is entitled to
29    receive a retirement  annuity  for  life  equal  to  2.2%  of
30    average  final  salary  for  each  of  the  first 20 years of
31    service, and 2.4% of average final salary for  each  year  of
32    service  in  excess  of 20.  The retirement annuity shall not
33    exceed 80% of average final salary.
                            -11-               LRB9002860EGfg
 1        (b)  Early retirement discount.  If an  employee  retires
 2    prior  to  attainment  of  age  60 with less than 30 years of
 3    service, the annuity computed above shall be reduced  by  1/2
 4    of 1% for each full month between the date the annuity begins
 5    and  attainment  of  age  60, or each full month by which the
 6    employee's service is less than 30 years, whichever is  less.
 7    However,  where  the  employee first enters service after the
 8    effective date of this amendatory Act of 1997  and  does  not
 9    have  at  least 10 years of service exclusive of credit under
10    Article 20, the annuity computed above shall  be  reduced  by
11    1/2  of  1%  for each full month between the date the annuity
12    begins and attainment of age 60.
13        (c)  Early retirement without discount.  An employee  who
14    has  attained  age 50 and retires after December 31, 1987 and
15    before June 30, 1997, and who retires within 6 months of  the
16    last  day  for  which retirement contributions were required,
17    may elect at the time  of  application  to  make  a  one-time
18    employee contribution to the Fund and thereby avoid the early
19    retirement   reduction  specified  in  subsection  (b).   The
20    exercise of the election shall also obligate the employer  to
21    make a one-time nonrefundable contribution to the Fund.
22        The one-time employee and employer contributions shall be
23    a percentage of the retiring employee's last full-time annual
24    salary,  calculated  as the total amount paid during the last
25    260 work days immediately prior to the date of withdrawal, or
26    if not full-time then the full time equivalent, and based  on
27    the  employee's  age and service at retirement.  The employee
28    contribution rate shall be 7% multiplied by the lesser of the
29    following 2 numbers: (1) the  number  of  years,  or  portion
30    thereof,  that  the  employee is less than age 60; or (2) the
31    number of years, or  portion  thereof,  that  the  employee's
32    service  is  less  than  30 years.  The employer contribution
33    shall be at the  rate  of  20%  for  each  year,  or  portion
34    thereof, that the participant is less than age 60.
                            -12-               LRB9002860EGfg
 1        Upon   receipt   of  the  application,  the  Board  shall
 2    determine   the   corresponding   employee    and    employer
 3    contributions.   The  annuity shall not be payable under this
 4    subsection until both the required  contributions  have  been
 5    received  by  the  Fund.  However, the date the contributions
 6    are received shall  not  be  considered  in  determining  the
 7    effective date of retirement.
 8        The number of employees who may retire under this Section
 9    in any year may be limited at the option of the District to a
10    specified  percentage  of those eligible, not lower than 30%,
11    with the right to participate to  be  allocated  among  those
12    applying  on  the  basis  of  seniority in the service of the
13    employer.
14        An   employee   who   has   terminated   employment   and
15    subsequently re-enters service shall not be entitled to early
16    retirement without discount under this subsection unless  the
17    employee  continues  in  service  for  at least 4 years after
18    re-entry.
19        (c-1)  Early  retirement  without  discount;   retirement
20    after June 29, 1997.  An employee who (i) has attained age 55
21    (age  50  if  the  employee  first entered service before the
22    effective date of this amendatory Act of 1997), (ii)  has  at
23    least  10  years of service exclusive of credit under Article
24    20, (iii) retires after June 29, 1997 and before  January  1,
25    2003,  and  (iv)  retires within 6 months of the last day for
26    which retirement contributions were required,  may  elect  at
27    the   time   of  application  to  make  a  one-time  employee
28    contribution  to  the  Fund  and  thereby  avoid  the   early
29    retirement   reduction  specified  in  subsection  (b).   The
30    exercise of the election shall also obligate the employer  to
31    make a one-time nonrefundable contribution to the Fund.
32        The one-time employee and employer contributions shall be
33    a  percentage  of  the  retiring employee's highest full-time
34    annual salary, calculated  as  the  total  amount  of  salary
                            -13-               LRB9002860EGfg
 1    included in the highest 26 consecutive pay periods as used in
 2    the  average  final  salary  calculation,  and  based  on the
 3    employee's age and service at retirement.  The employee  rate
 4    shall  be  7%  multiplied  by  the  lesser of the following 2
 5    numbers: (1) the number of years, or  portion  thereof,  that
 6    the employee is less than age 60; or (2) the number of years,
 7    or  portion thereof, that the employee's service is less than
 8    30 years.  The employer contribution shall be at the rate  of
 9    20%  for  each year, or portion thereof, that the participant
10    is less than age 60.
11        Upon  receipt  of  the  application,  the   Board   shall
12    determine    the    corresponding   employee   and   employer
13    contributions.  The annuity shall not be payable  under  this
14    subsection  until  both  the required contributions have been
15    received by the Fund.  However, the  date  the  contributions
16    are  received  shall  not  be  considered  in determining the
17    effective date of retirement.
18        The number of employees who may retire under this Section
19    in any year may be limited at the option of the District to a
20    specified percentage of those eligible, not lower  than  30%,
21    with  the  right  to  participate to be allocated among those
22    applying on the basis of seniority  in  the  service  of  the
23    employer.
24        An   employee   who   has   terminated   employment   and
25    subsequently re-enters service shall not be entitled to early
26    retirement  without discount under this subsection unless the
27    employee continues in service for  at  least  4  years  after
28    re-entry.
29        (d)  Annual  increase.  Except for employees retiring and
30    receiving a term annuity, an employee who retires on or after
31    July 1, 1985 shall, upon the first payment date following the
32    first anniversary of the date of retirement, have the monthly
33    annuity increased by 3% of the amount of the monthly  annuity
34    fixed  at  the date of retirement.  The monthly annuity shall
                            -14-               LRB9002860EGfg
 1    be increased by an additional 3% on the same date  each  year
 2    thereafter.   Beginning January 1, 1993, all annual increases
 3    payable under this subsection (or any predecessor  provision,
 4    regardless  of the date of retirement) shall be calculated at
 5    the rate of 3% of the monthly annuity payable at the time  of
 6    the  increase,  including  any  increases  previously granted
 7    under this Article subsection.
 8        Any employee who (i) retired before July 1, 1985 with  at
 9    least  10  years  of  creditable service, (ii) is receiving a
10    retirement annuity under this  Article,  other  than  a  term
11    annuity, and (iii) has not received any annual increase under
12    this  subsection,  shall begin receiving the annual increases
13    provided under this subsection (d) beginning on the the  next
14    annuity  payment  date  following  the effective date of this
15    amendatory Act of 1997.
16        (e)  Minimum retirement annuity.   Beginning  January  1,
17    1993,  the  minimum  monthly retirement annuity shall be $500
18    for any annuitant having at least 10 years of  service  under
19    this Article, other than a term annuitant or an annuitant who
20    began  receiving  the  annuity  before attaining age 60.  Any
21    such annuitant who is receiving a  monthly  annuity  of  less
22    than  $500  shall  have the annuity increased to $500 on that
23    date.
24        Beginning January 1, 1993, the minimum monthly retirement
25    annuity shall be $250 for any annuitant (other than a term or
26    reciprocal annuitant or an annuitant under subsection (d)  of
27    Section  13-301)  having  less than 10 years of service under
28    this Article, and  for  any  annuitant  (other  than  a  term
29    annuitant)  having  at  least  10 years of service under this
30    Article who began receiving the annuity before attaining  age
31    60.  Any such annuitant who is receiving a monthly annuity of
32    less  than  $250  shall have the annuity increased to $250 on
33    that date.
34    (Source: P.A. 87-794; 87-1265.)
                            -15-               LRB9002860EGfg
 1        (40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
 2        Sec. 13-304.  Optional plan of  additional  benefits  and
 3    contributions.
 4        (a)  While  this  plan is in effect, an eligible employee
 5    may  establish  additional  optional  credit  for  additional
 6    benefits  by  electing  in  writing  at  any  time  to   make
 7    additional   optional   contributions.    The   employee  may
 8    discontinue making the additional optional  contributions  at
 9    any time by notifying the Fund in writing.
10        Employees  first entering service after June 30, 1997 are
11    not eligible to participate in  the  plan  established  under
12    this Section.
13        (b)  Additional optional contributions for the additional
14    optional benefits 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        13-502.
20             (2)  For  service  services  before  the  option  is
21        elected,  an  additional contribution of 3% of the salary
22        for the applicable period of service,  plus  interest  at
23        the  annual rate as shall from time to time be determined
24        by the  Board,  compounded  annually  from  the  date  of
25        service  to  the  date of payment.  All payments for past
26        service must be paid in full before credit is  given.   A
27        person  who  has  withdrawn  from  service  may  pay  the
28        additional  contribution  for  past  service  at any time
29        within 30 days after withdrawal from service, so long  as
30        payment  is  made  in  full before the retirement annuity
31        commences.  No additional optional contributions  may  be
32        made  for any period of service for which credit has been
33        previously forfeited by acceptance of  a  refund,  unless
34        the  refund  is  repaid in full with interest at the rate
                            -16-               LRB9002860EGfg
 1        specified in Section 13-603, from the date of  refund  to
 2        the  date  of repayment.  Nothing herein may be construed
 3        to allow an additional optional contribution to  be  made
 4        on the account of a deceased employee.
 5        (c)  Additional  optional  benefit  shall  accrue for all
 6    periods   of   eligible   service   for   which    additional
 7    contributions are paid in full.  The additional benefit shall
 8    consist  of an additional 1% of average final salary for each
 9    year of service for which optional  contributions  have  been
10    paid,  to  be  added  to the employee's retirement annuity as
11    otherwise computed under this Article.   The  calculation  of
12    these  additional benefits shall be subject to the same terms
13    and  conditions  as  are  used  in  the  calculation  of  the
14    retirement  annuity  under  this  Article.   The   additional
15    benefit shall be included in the calculation of the automatic
16    annual  increase  in  annuity under Section 13-302(d), and in
17    the  calculation  of   surviving   spouse's   annuity   where
18    applicable.   However, no additional benefits will be granted
19    which produce a total annuity  greater  than  the  applicable
20    maximum established for that type of annuity in this Article.
21    The  total  additional  optional benefit that may be received
22    under this Section is 15% of average final salary.
23        (d)  Refunds of additional optional  contributions  shall
24    be  made  on  the same basis and under the same conditions as
25    provided under Section 13-601.
26        (e)  Optional contributions shall be accounted for  in  a
27    separate Optional Contribution Reserve.
28        (f)  The  tax levy computed under Section 13-503 shall be
29    based on  employee  contributions  including  the  amount  of
30    optional additional employee contributions.
31        (g)  Service eligible under this Section may include only
32    service  as  an  employee  as  defined in Section 13-204, and
33    subject to Section 13-401 and  13-402.   No  service  granted
34    under Section 13-801 or 13-802 shall be eligible for optional
                            -17-               LRB9002860EGfg
 1    service   credit.    No   optional   service  credit  may  be
 2    established for any military  service,  or  for  any  service
 3    under  any  other  Article  of  this  Code.  Optional service
 4    credit may be established for any period of  disability  paid
 5    from  this  Fund,  if  the employee makes additional optional
 6    contributions for such period of disability.
 7        (h)  This plan of  optional  benefits  and  contributions
 8    shall  not  apply  to service prior to withdrawal rendered by
 9    any  former  employee  who  re-enters  service  unless   such
10    employee  renders  not  less  than  36  consecutive months of
11    additional service after the date of re-entry.
12        (i)  The  effective  date  of  this  optional   plan   of
13    additional  benefits and contributions shall be the date upon
14    which  approval  was  received  from  the  Internal   Revenue
15    Service, July 31, 1987.
16        (j)  This  plan  of additional benefits and contributions
17    shall expire December 31, 2002 July 1, 1997.   No  additional
18    contributions  may be made after that date, and no additional
19    benefits will accrue after that date.
20        (k)  The maximum optional benefits for current and  prior
21    service  for  which  an  employee can make contributions in a
22    single year shall be limited to 15 years of service  in  1997
23    and before; 9 years of service in 1998; 6 years of service in
24    1999;  and  3  years  of service in 2000, 2001, and 2002.  No
25    person may establish additional optional benefits under  this
26    Section for more than 15 years of service.
27    (Source: P.A. 87-794; 87-1265.)
28        (40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305)
29        Sec. 13-305.  Surviving spouse's annuity; eligibility.  A
30    surviving  spouse  who was married to an employee on the date
31    of the such employee's death while in service, or was married
32    to an employee on the date of  withdrawal  from  service  and
33    remained  married  to that such employee until the employee's
                            -18-               LRB9002860EGfg
 1    death, shall be entitled  to  a  surviving  spouse's  annuity
 2    payable  for life.  However, the annuity shall not be payable
 3    to; provided, however, that the surviving spouse  of  (1)  an
 4    employee  who  withdraws from service before age 55 with less
 5    than shall not be entitled to an annuity unless the  deceased
 6    employee  had  at  least  10 years of service, or less than 5
 7    years of service if the for the surviving spouse of a  former
 8    employee who had been receiving a retirement annuity pursuant
 9    to  Section  13-301(d),  or  (2) an employee not described in
10    item (1) who first enters service on or after  the  effective
11    date of this amendatory Act of 1997 and who has been employed
12    as  an  employee for (i) less than 36 months from the date of
13    the employee's original entry into service or (ii) less  than
14    12  months  from  the employee's date of latest re-entry into
15    service; except as otherwise provided  in  Section  13-306(a)
16    for an employee whose death arises out of or in the course of
17    the employee's service to the employer.
18        A  dissolution  of  marriage  after  retirement shall not
19    divest  the  employee's  spouse  of  the  entitlement  to   a
20    surviving  spouse's  annuity upon the subsequent death of the
21    employee, provided that the surviving spouse and the deceased
22    employee had been married to each other for a period  of  not
23    less than 10 continuous years on the date of retirement.
24    (Source: P.A. 87-794.)
25        (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
26        Sec. 13-306.  Computation of surviving spouse's annuity.
27        (a)  Computation  of the annuity.  The surviving spouse's
28    annuity shall be equal  to  60%  of  the  retirement  annuity
29    earned  and  accrued  to the credit of the deceased employee,
30    whether death occurs while in service  or  after  withdrawal,
31    plus  1%  for each year of total service of the employee to a
32    maximum of 85%; provided, however,  that  if  the  employee's
33    death  arises  out  of  and  in  the course of the employee's
                            -19-               LRB9002860EGfg
 1    service to the employer and is compensable under  either  the
 2    Illinois  Workers'  Compensation  Act  or  Illinois  Workers'
 3    Occupational  Diseases Act, the surviving spouse's annuity is
 4    payable regardless of the employee's length  of  service  and
 5    shall  be  not  less than 50% of the employee's salary at the
 6    date of death.
 7        For any death in service the  early  retirement  discount
 8    required  under  Section  13-302(b)  shall  not be applied in
 9    computing the retirement annuity  upon  which  is  based  the
10    surviving spouse's annuity.
11        (b)  Reciprocal  service.   For any employee or annuitant
12    who retires on or after July 1, 1985 and whose  death  occurs
13    after  January  1,  1991, having at least 15 years of service
14    with the employer under this Article, and who was eligible at
15    the time of death or elected at the  time  of  retirement  to
16    have  his or her retirement annuity calculated as provided in
17    Section 20-131 of this Code,  the  surviving  spouse  benefit
18    shall be calculated as of the date of the employee's death as
19    indicated in subsection (a) as a percentage of the employee's
20    total  benefit  as if all service had been with the employer.
21    That benefit shall then be reduced by the amounts payable  by
22    each  of the reciprocal funds as of the date of death so that
23    the total surviving spouse benefit at that date will be equal
24    to the benefit which would have been payable had all  service
25    been with the employer under this Article.
26        (c)  Discount  for  age  differential.  The annuity for a
27    surviving spouse shall be discounted by 0.25% for  each  full
28    month  that the spouse is younger than the employee as of the
29    date of withdrawal from service or  death  in  service  to  a
30    maximum  discount  of  60% of the surviving spouse annuity as
31    calculated under  subsections  (a),  (b),  and  (e)  of  this
32    Section  Sections  13-306(a)  and 13-306(b) of this Act.  The
33    discount shall be reduced by  10%  for  each  full  year  the
34    marriage  has  been  in  continuous  effect as of the date of
                            -20-               LRB9002860EGfg
 1    withdrawal or death in service.  There shall be  no  discount
 2    if the marriage has been in continuous effect for 10 ten full
 3    years or more at the time of withdrawal or death in service.
 4        (d)  Annual  increase.  On the first day of each calendar
 5    month in which there occurs an anniversary of the  employee's
 6    date  of  retirement  or  date  of  death, whichever occurred
 7    first, the surviving spouse's  annuity,  other  than  a  term
 8    annuity under Section 13-307, shall be increased by an amount
 9    equal  to 3% of the amount of the annuity.  Beginning January
10    1, 1993, all annual increases payable under  this  subsection
11    (or  any  predecessor  provision  of  this  Article) shall be
12    calculated at the rate of 3% of the monthly  annuity  payable
13    at   the  time  of  the  increase,  including  any  increases
14    previously granted under this Article subsection.
15        Beginning January 1, 1993,  surviving  spouse  annuitants
16    whose  deceased spouse died, retired or withdrew from service
17    before August 23, 1989 with at  least  10  years  of  service
18    under this Article shall be eligible for the annual increases
19    provided under this subsection.
20        (e)  Minimum   surviving   spouse's  annuity.   Beginning
21    January 1,  1993,  the  minimum  monthly  surviving  spouse's
22    annuity shall be $500 for any annuitant whose deceased spouse
23    had  at  least  10 years of service under this Article, other
24    than a surviving spouse who is  a  term  annuitant  or  whose
25    deceased  spouse  began  receiving a retirement annuity under
26    this Article before attainment of age 60.  Any such surviving
27    spouse annuitant who is receiving a monthly annuity  of  less
28    than  $500  shall  have the annuity increased to $500 on that
29    date.
30        Beginning January 1, 1993, the minimum monthly  surviving
31    spouse's  annuity shall be $250 for any annuitant (other than
32    a term or reciprocal annuitant or an annuitant survivor under
33    subsection (d) of Section 13-301) whose deceased  spouse  had
34    less than 10 years of service under this Article, and for any
                            -21-               LRB9002860EGfg
 1    annuitant (other than a term annuitant) whose deceased spouse
 2    had at least 10 years of service under this Article and began
 3    receiving  a  retirement  annuity  under  this Article before
 4    attainment of age 60.  Any such  surviving  spouse  annuitant
 5    who  is  receiving  a monthly annuity of less than $250 shall
 6    have the annuity increased to $250 on that date.
 7        The minimum annuity provided under  this  subsection  (e)
 8    shall   be   subject  to  the  age  discount  provided  under
 9    subsection (c) of this Section.
10    (Source: P.A. 87-794; 87-1265.)
11        (40 ILCS 5/13-308) (from Ch. 108 1/2, par. 13-308)
12        Sec. 13-308.  Child's annuity.
13        (a)  Eligibility.  A child's annuity  shall  be  provided
14    for each unmarried child of a deceased employee under the age
15    of  18  years whose employee parent dies while in service, or
16    whose deceased parent is an annuitant or former employee with
17    at least 10 years of creditable service who did  not  take  a
18    refund of employee contributions.
19        For  purposes  of  this  Section,  "employee"  includes a
20    former employee, and "child" means the issue of an  employee,
21    or  a  child  adopted  by  an employee if the proceedings for
22    adoption were instituted at  least  one  year  prior  to  the
23    employee's death.
24        Payments  shall  cease when a child attains the age of 18
25    years or marries, whichever first occurs.  The annuity  shall
26    not  be  payable  unless the employee has been employed as an
27    employee for employee's length of  service  is  at  least  36
28    months 2 years from the date of the employee's original entry
29    into  service  (at least 24 months in the case of an employee
30    who first entered service before the effective date  of  this
31    amendatory  Act  of  1997) and at least 12 months 1 year from
32    the date of the  employee's  latest  re-entry  into  service;
33    provided,  however,  that  if  death arises out of and in the
                            -22-               LRB9002860EGfg
 1    course of service to the employer and  is  compensable  under
 2    either  the  Illinois  Workers'  Compensation Act or Illinois
 3    Workers' Occupational Diseases Act, the  annuity  is  payable
 4    regardless of the employee's length of service.
 5        (b)  Amount.   A  child's annuity shall be $250 per month
 6    for each child as provided in this Section if a parent of the
 7    child during such period  as  the  surviving  spouse  of  the
 8    deceased  employee  parent  is living, and $350 per month for
 9    each child when neither parent is alive.  Any child's annuity
10    which  commenced  prior  to  the  effective  date   of   this
11    amendatory  Act of 1991 shall be increased upon the effective
12    date to the amount set forth herein.
13        (c)  Payment.  A child's annuity shall  be  paid  to  the
14    child's parent or other person who shall be providing for the
15    child  without  requiring  formal  letters  of  guardianship,
16    unless another person shall be appointed by a court of law as
17    guardian.
18    (Source: P.A. 87-794.)
19        (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
20        Sec. 13-309.  Duty disability benefit.
21        (a)  Any  employee who becomes becoming disabled prior to
22    attainment of age 70, which disability is the  result  of  an
23    injury  or  illness  compensable  under the Illinois Workers'
24    Compensation  Act  or  the  Illinois  Workers'   Occupational
25    Diseases Act, is entitled to a duty disability benefit during
26    the  period  of  disability  for  which the employee does not
27    receive any part of salary,  or  any  part  of  a  retirement
28    annuity  under  this  Article;  except that in the case of an
29    employee who first enters service on or after  the  effective
30    date  of  this  amendatory  Act  of  1997,  a duty disability
31    benefit is not payable for the first  3  days  of  disability
32    that  would  otherwise  be  payable under this Section if the
33    disability does not continue for at least 11 additional days.
                            -23-               LRB9002860EGfg
 1    This benefit shall be 75% of salary at  the  date  disability
 2    begins.   However,  if the disability in any measure resulted
 3    from any physical defect or disease which existed at the time
 4    such injury was sustained or such illness commenced, the duty
 5    disability benefit shall be 50% of salary.
 6        The employee shall  also  receive  a  child's  disability
 7    benefit  during  such  period  of  $10  per  month  for  each
 8    unmarried  natural or adopted child of the employee less than
 9    the age of 18 years.
10        The first payment shall be made not later than one  month
11    after  the  benefit is granted, and subsequent payments shall
12    be made at least monthly. The Board shall by  rule  prescribe
13    for  the  payment of such benefits on the basis of the amount
14    of salary lost during the period of disability.
15        (b)  The benefit shall be allowed only if  the  following
16    requirements are met by the employee:
17             (1)  Application is made to the Board within 90 days
18        from the date disability begins;
19             (2)  A  medical  report is submitted by at least one
20        licensed  and  practicing  physician  as  part   of   the
21        employee's application; and
22             (3)  The  employee  is  examined  by  at  least  one
23        licensed  and practicing physician appointed by the Board
24        and found to be in a  disabled  physical  condition,  and
25        shall  be re-examined at least annually thereafter during
26        the continuance of disability.  The employee need not  be
27        re-examined by a licensed and practicing physician if the
28        attorney  for  the district certifies in writing that the
29        employee is entitled to receive  compensation  under  the
30        Workers'  Compensation  Act  or the Workers' Occupational
31        Diseases Act.
32        (c)  The benefit shall terminate when:
33             (1)  The employee returns  to  work  or  receives  a
34        retirement  annuity  paid  wholly  or  in part under this
                            -24-               LRB9002860EGfg
 1        Article;
 2             (2)  The disability ceases;
 3             (3)  The  employee  attains  age  65,  but  if   the
 4        employee becomes disabled at age 60 61 or later, benefits
 5        may  be extended for a period of no more disability shall
 6        terminate no earlier than 5 4 years after disablement  or
 7        at  age  70,  whichever  occurs  first; except that child
 8        benefit  payments  shall  be  made  until   the   child's
 9        marriage,  death or attainment of age 18, whichever first
10        occurs;
11             (4)  The employee refuses to  submit  to  reasonable
12        examinations  by physicians or other health professionals
13        appointed by the Board; or
14             (5)  The employee willfully and continuously refuses
15        to accept medical treatment to  enable  the  employee  to
16        return to work.  However this provision does not apply to
17        an  employee  who  relies  in  good faith on treatment by
18        prayer through spiritual means alone in  accordance  with
19        the  tenets  and  practice  of  a  recognized  church  or
20        religious denomination, by a duly accredited practitioner
21        thereof.   In the case of a duty disability recipient who
22        returns to work, the employee must  make  application  to
23        the  Retirement  Board  within  2 years from the date the
24        employee last received duty disability benefits in  order
25        to  become  again  entitled  to  duty disability benefits
26        based on the injury for which a duty  disability  benefit
27        was theretofore paid.
28    (Source: P.A. 87-794.)
29        (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
30        Sec. 13-310.  Ordinary disability benefit.
31        (a)  Any  employee  under  age 70 who becomes disabled as
32    the result of any cause other than injury or illness incurred
33    in the performance of duty for  the  employer  or  any  other
                            -25-               LRB9002860EGfg
 1    employer,  or  while  engaged  in self-employment activities,
 2    shall be entitled to an  ordinary  disability  benefit.   The
 3    eligible  period  for  this  benefit  shall  be  25%  of  the
 4    employee's   total  actual  service  prior  to  the  date  of
 5    disability with a cumulative maximum period of  5  years  for
 6    employees  becoming  disabled prior to reaching age 61, and 4
 7    years for employees who become disabled at age 61  or  later,
 8    but  in  no  event  shall  the  benefit  be  payable after an
 9    employee attains the age of 70.
10        (b)  The benefit shall be allowed only  if  the  employee
11    files an application in writing with the Board, and a medical
12    report  is  submitted by at least one licensed and practicing
13    physician as part of the employee's application.
14        The benefit is  not  payable  for  any  disability  which
15    begins  during  any  period  of  unpaid leave of absence.  No
16    benefit shall be allowed for any period of  disability  prior
17    to 30 days before application is made, unless the Board finds
18    good  cause  for  the  delay  in filing the application.  The
19    benefit shall not be paid during any  period  for  which  the
20    employee  receives  or  is  entitled  to  receive any part of
21    salary.
22        The benefit is  not  payable  for  any  disability  which
23    begins  during  any  period  of  absence from duty other than
24    allowable vacation time in any calendar  year.   An  employee
25    whose  disability begins during any such ineligible period of
26    absence from service  may  not  receive  benefits  until  the
27    employee  recovers  from the disability and is in service for
28    at least 15 consecutive working days after such recovery.
29        In the case of an employee who first enters service on or
30    after the effective date of this amendatory Act of  1997,  an
31    ordinary  disability  benefit  is not payable for the first 3
32    days of disability that would otherwise be payable under this
33    Section if the disability does not continue for at  least  11
34    additional days.
                            -26-               LRB9002860EGfg
 1        (c)  The benefit shall be 50% of the employee's salary at
 2    the date of disability, and shall terminate when the earliest
 3    of the following occurs:
 4             (1)  The  employee  returns  to  work  or receives a
 5        retirement annuity paid wholly  or  in  part  under  this
 6        Article;
 7             (2)  The disability ceases;
 8             (3)  (Blank)  The employee attains age 65 but if the
 9        employee  becomes  disabled  at  age  61  or  older,  the
10        disability shall terminate no earlier than 4 years  after
11        disablement or at age 70, whichever occurs first;
12             (4)  The  employee refuses to submit to a reasonable
13        physical examination within 30 days of application  by  a
14        physician  appointed  by  the  Board  or  in  the case of
15        chronic  alcoholism,  the  employee  refuses  to  join  a
16        rehabilitation program  licensed  by  the  Department  of
17        Public  Health of the State of Illinois, and certified by
18        the Joint Commission on the Accreditation  of  Hospitals;
19        or
20             (5)  The  eligible  period for this benefit has been
21        exhausted.
22        The first payment of the benefit shall be made not  later
23    than   one  month  after  the  same  has  been  granted,  and
24    subsequent payments shall be made at intervals  of  not  more
25    than 30 days.
26    (Source: P.A. 87-794.)
27        (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
28        Sec.    13-314.  Alternative    provisions    for   Water
29    Reclamation District commissioners.
30        (a)  Transfer of credits.  Any Water Reclamation District
31    commissioner elected by  vote  of  the  people  and  who  has
32    elected to participate in this Fund may transfer to this Fund
33    credits  and  creditable  service accumulated under any other
                            -27-               LRB9002860EGfg
 1    pension fund or retirement system established under  Articles
 2    2  through  18  of this Code, upon payment to the Fund of (1)
 3    the amount by which the employer and  employee  contributions
 4    that  would have been required if he had participated in this
 5    Fund during the period for which credit is being transferred,
 6    plus interest, exceeds the amounts actually transferred  from
 7    such  other  fund  or  system to this Fund, plus (2) interest
 8    thereon at 6% per year compounded annually from the  date  of
 9    transfer to the date of payment.
10        (b)  Alternative  annuity.   Any participant commissioner
11    may elect to establish alternative credits for an alternative
12    annuity by electing in writing to  make  additional  optional
13    contributions  in accordance with this Section and procedures
14    established by the Board.  Such commissioner may  discontinue
15    making the additional optional contributions by notifying the
16    fund   in   writing  in  accordance  with  this  Section  and
17    procedures established by the Board.
18        Additional optional  contributions  for  the  alternative
19    annuity shall be as follows:
20             (1)  For  service  after  the  option is elected, an
21        additional  contribution  of  3%  of  salary   shall   be
22        contributed  to  the Fund on the same basis and under the
23        same conditions as contributions required  under  Section
24        13-502.
25             (2)  For  service  before the option is elected, the
26        additional contribution shall be 3% of the salary for the
27        applicable period of service, plus interest at the annual
28        rate from time  to  time  as  determined  by  the  Board,
29        compounded  annually from the date of service to the date
30        of payment.  All payments for past service must  be  paid
31        in  full  before credit is given.  No additional optional
32        contributions may be made for any period of  service  for
33        which  credit has been previously forfeited by acceptance
34        of a refund, unless the refund is  repaid  in  full  with
                            -28-               LRB9002860EGfg
 1        interest  at  the  rate specified in Section 13-603, from
 2        the date of refund to the date of repayment.
 3        In lieu of the retirement annuity otherwise payable under
 4    this Article, any commissioner who has elected to participate
 5    in the Fund and make  additional  optional  contributions  in
 6    accordance with this Section, has attained age 55, and has at
 7    least  6  years  of  service  credit,  may  elect to have the
 8    retirement  annuity  computed   as   follows:   3%   of   the
 9    participant's average final salary at the time of termination
10    of  service  for each of the first 8 years of service credit,
11    plus 4% of such salary for  each  of  the  next  4  years  of
12    service  credit,  plus  5%  of  such  salary for each year of
13    service credit in excess of 12 years, subject to a maximum of
14    80% of such salary.  To the extent such commissioner has made
15    additional optional contributions  with  respect  to  only  a
16    portion  of  years  of service credit, the retirement annuity
17    will first be determined in accordance with this  Section  to
18    the  extent such additional optional contributions were made,
19    and then in accordance with the remaining  Sections  of  this
20    Article to the extent of years of service credit with respect
21    to  which  additional  optional  contributions were not made.
22    The change in minimum retirement age (from 60 to 55) made  by
23    this  amendatory  Act  of  1993  applies to persons who begin
24    receiving a retirement annuity under this Section on or after
25    the effective date of this amendatory Act, without regard  to
26    whether they are in service on or after that date.
27        (c)  Disability  benefits.   In  lieu  of  the disability
28    benefits  otherwise   payable   under   this   Article,   any
29    commissioner  who (1) has elected to participate in the Fund,
30    and (2) has become permanently disabled and as a  consequence
31    is unable to perform the duties of office, and (3) was making
32    optional contributions in accordance with this Section at the
33    time  the  disability  was  incurred,  may elect to receive a
34    disability annuity calculated in accordance with the  formula
                            -29-               LRB9002860EGfg
 1    in subsection (b).  For the purposes of this subsection, such
 2    commissioner  shall  be  considered permanently disabled only
 3    if: (i) disability occurs while in service as a  commissioner
 4    and  is  of  such  a  nature  as  to  prevent  the reasonable
 5    performance of the duties of office at the time; and (ii) the
 6    Board has received a written  certification  by  at  least  2
 7    licensed   physicians  appointed  by  it  stating  that  such
 8    commissioner is disabled and that the disability is likely to
 9    be permanent.
10        (d)  Alternative survivor's  benefits.  In  lieu  of  the
11    survivor's benefits otherwise payable under this Article, the
12    spouse or eligible child of any deceased commissioner who (1)
13    had  elected  to  participate in the Fund, and (2) was either
14    making additional  optional  contributions  on  the  date  of
15    death,  or  was  receiving  an  annuity calculated under this
16    Section at the time of death, may elect to receive an annuity
17    beginning on the date of the commissioner's  death,  provided
18    that  the  spouse  and commissioner must have been married on
19    the date of the last termination of a service as commissioner
20    and for a continuous period of at least one year  immediately
21    preceding death.
22        The annuity shall be payable beginning on the date of the
23    commissioner's death if the spouse is then age 50 or over, or
24    beginning  at age 50 if the age of the spouse is less than 50
25    years.  If  a  minor  unmarried  child  or  children  of  the
26    commissioner,  under  age  18, also survive, and the child or
27    children are under the  care  of  the  eligible  spouse,  the
28    annuity   shall  begin  as  of  the  date  of  death  of  the
29    commissioner without regard to the spouse's age.
30        The annuity to a spouse shall be 66 2/3% of the amount of
31    retirement annuity earned by the commissioner on the date  of
32    death,  subject  to  a  minimum  payment  of  10%  of salary,
33    provided that if an eligible spouse, regardless of  age,  has
34    in  his  or her care at the date of death of the commissioner
                            -30-               LRB9002860EGfg
 1    any unmarried child or children of the commissioner under age
 2    18, the minimum annuity shall be 30%  of  the  commissioner's
 3    salary,  plus 10% of salary on account of each minor child of
 4    the commissioner, subject to  a  combined  total  payment  on
 5    account  of  a spouse and minor children not to exceed 50% of
 6    the deceased commissioner's salary. In the event there  shall
 7    be  no  spouse  of  the  commissioner  surviving, or should a
 8    spouse die while eligible minor children  still  survive  the
 9    commissioner, each such child shall be entitled to an annuity
10    equal  to  20%  of  salary  of  the commissioner subject to a
11    combined total payment on account of all such children not to
12    exceed 50% of salary of the commissioner. The  salary  to  be
13    used  in  the calculation of these benefits shall be the same
14    as that prescribed for determining a  retirement  annuity  as
15    provided in subsection (b) of this Section.
16        Upon   the   death  of  a  commissioner  occurring  after
17    termination of a service or while in receipt of a  retirement
18    annuity,  the  combined  total  payment to a spouse and minor
19    children, or to minor children alone if  no  eligible  spouse
20    survives, shall be limited to 75% of the amount of retirement
21    annuity earned by the commissioner.
22        Adopted children shall have status as natural children of
23    the  commissioner  only  if the proceedings for adoption were
24    commenced at  least  one  year  prior  to  the  date  of  the
25    commissioner's death.
26        Marriage  of  a  child or attainment of age 18, whichever
27    first occurs, shall render the child ineligible  for  further
28    consideration in the payment of annuity to a spouse or in the
29    increase   in   the   amount   thereof.  Upon  attainment  of
30    ineligibility  of   the   youngest   minor   child   of   the
31    commissioner,  the  annuity  shall  immediately revert to the
32    amount payable upon death of a commissioner leaving no  minor
33    children  surviving.  If  the  spouse is under age 50 at such
34    time, the annuity as revised shall be deferred until such age
                            -31-               LRB9002860EGfg
 1    is attained.
 2        (e)  Refunds.    Refunds    of    additional     optional
 3    contributions  shall  be made on the same basis and under the
 4    same conditions as provided under  Section  13-601.  Interest
 5    shall  be  credited  on  the  same  basis  and under the same
 6    conditions as for other contributions.
 7        Optional  contributions  shall  be  accounted  for  in  a
 8    separate   Commission's   Optional   Contribution    Reserve.
 9    Optional  contributions  under this Section shall be included
10    in the amount of employee contributions used to  compute  the
11    tax levy under Section 13-503.
12        (f)  Effective  date.  The effective date of this plan of
13    optional alternative benefits and contributions shall be  the
14    date  upon which approval was received from the U.S. Internal
15    Revenue Service.  The plan of optional  alternative  benefits
16    and  contributions  shall  not  be  available  to  any former
17    employee receiving an annuity from the Fund on the  effective
18    date,  unless  said  former  employee  re-enters  service and
19    renders at least 3 years of additional service after the date
20    of re-entry as a commissioner.
21    (Source: P.A. 87-794; 87-1265.)
22        (40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
23        Sec. 13-401.  Term of service.
24        (a)  In computing the  term  of  service,  the  following
25    periods  of  time  shall be counted as periods of service for
26    annuity purposes only:
27             (1)  the time during  which  the  employee  performs
28        services required by the Employer.
29             (2)  approved  vacations  or  leaves of absence with
30        whole or part pay.
31             (3)  any period for which the  employee  receives  a
32        disability benefit payable under this Article.
33             (4)  leaves  of  absence  for  military  service  as
                            -32-               LRB9002860EGfg
 1        provided in Section 13-403.
 2        (b)  In  computing  the  term of service for the ordinary
 3    disability benefit, the following periods of  time  shall  be
 4    counted as periods of service:
 5             (1)  the  time  during  which  the employee performs
 6        services required by the Employer.
 7             (2)  approved vacations or leaves  of  absence  with
 8        whole or part pay.
 9             (3)  any  period  for  which the employee receives a
10        duty disability benefit under this Article.
11        (c)  Any employee who first  enters  service  before  the
12    effective date of this amendatory Act of 1997 may, during any
13    period  of approved leave of absence without pay, continue to
14    make contributions for the retirement and surviving  spouse's
15    annuities  for  a  total period not to exceed one year during
16    the employee's entire aggregate service  with  the  Employer.
17    Upon  making  these contributions, the employee shall receive
18    credit in terms of length of service for the  retirement  and
19    surviving    spouse's   annuities.    Concurrent   Employer's
20    contributions shall be provided by the District.
21        (d)  An employee may  establish  credit  for  periods  of
22    approved  leave of absence without pay, not to exceed a total
23    of one year during the employee's aggregate service with  the
24    employer.  To establish this credit, the employee must either
25    continue  to  remain  on approved leave of absence, return to
26    service with the employer, or in the case of an employee  who
27    first  enters  service on or after the effective date of this
28    amendatory Act of 1997, return to service with  the  employer
29    for at least one calendar year.  The employee must pay to the
30    Fund  the corresponding employee contributions, plus interest
31    at the annual rate from time to time determined by the Board,
32    compounded annually from the date of service to the  date  of
33    payment.   The  corresponding employer contributions shall be
34    provided  by  the  District.   Upon   making   the   required
                            -33-               LRB9002860EGfg
 1    contributions,  the employee shall receive credit in terms of
 2    length of service for the retirement and  surviving  spouse's
 3    annuity in proportion to the number of pay periods or portion
 4    thereof  for which contributions were made relative to 26 pay
 5    periods.
 6        (e)  Overtime or extra service shall not be  included  in
 7    computing  any  service.  Not more than one 1 year of service
 8    credit shall be  allowed  for  service  rendered  during  any
 9    calendar year.
10    (Source: P.A. 87-794.)
11        (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
12        Sec.  13-402.   Length  of  service.   For the purpose of
13    computing the length of service for the  retirement  annuity,
14    surviving  spouse's  annuity  and child's annuity, service of
15    120 days in any one calendar year shall constitute  one  year
16    of  service and service for any fractional part thereof shall
17    constitute an equal fractional part of one  year  of  service
18    unless   specifically  provided  otherwise.   For  all  other
19    purposes under this Article, including but not limited to the
20    optional plans plan of additional benefits and  contributions
21    provided  under  Sections  Section  13-304 and 13-314 of this
22    Article, 26 pay periods of service during any 12  consecutive
23    months  a  calendar  year shall constitute a year of service,
24    and service rendered for 50% or more of a single  pay  period
25    shall constitute service for the full pay period.  Service of
26    less than 50% of a single pay period shall not be counted.
27    (Source: P.A. 87-794.)
28        Section  90.   In  accordance  with subdivision (a)(1) of
29    Section 8 of the State Mandates  Act,  the  General  Assembly
30    finds that the State is excluded from reimbursement liability
31    for  this  amendatory  Act  of 1997 because it accommodates a
32    request from the affected unit of local government.
                            -34-               LRB9002860EGfg
 1        Section 99. Effective date.  This Act takes  effect  upon
 2    becoming law.
                            -35-               LRB9002860EGfg
 1                                INDEX
 2               Statutes amended in order of appearance
 3    40 ILCS 5/1-113           from Ch. 108 1/2, par. 1-113
 4    40 ILCS 5/13-204          from Ch. 108 1/2, par. 13-204
 5    40 ILCS 5/13-207          from Ch. 108 1/2, par. 13-207
 6    40 ILCS 5/13-208          from Ch. 108 1/2, par. 13-208
 7    40 ILCS 5/13-301          from Ch. 108 1/2, par. 13-301
 8    40 ILCS 5/13-302          from Ch. 108 1/2, par. 13-302
 9    40 ILCS 5/13-304          from Ch. 108 1/2, par. 13-304
10    40 ILCS 5/13-305          from Ch. 108 1/2, par. 13-305
11    40 ILCS 5/13-306          from Ch. 108 1/2, par. 13-306
12    40 ILCS 5/13-308          from Ch. 108 1/2, par. 13-308
13    40 ILCS 5/13-309          from Ch. 108 1/2, par. 13-309
14    40 ILCS 5/13-310          from Ch. 108 1/2, par. 13-310
15    40 ILCS 5/13-314          from Ch. 108 1/2, par. 13-314
16    40 ILCS 5/13-401          from Ch. 108 1/2, par. 13-401
17    40 ILCS 5/13-402          from Ch. 108 1/2, par. 13-402

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