[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
90_HB0488enr
SEE INDEX
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
HB0488 Enrolled 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
HB0488 Enrolled -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
HB0488 Enrolled -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:
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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.)
HB0488 Enrolled -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.
HB0488 Enrolled -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.
HB0488 Enrolled -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.
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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 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.)
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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.
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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.
HB0488 Enrolled -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
HB0488 Enrolled -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
HB0488 Enrolled -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 as a commissioner at the
10 time of termination of service for each of the first 8 years
11 of service credit, plus 4% of such salary for each of the
12 next 4 years of service credit, plus 5% of such salary for
13 each year of service credit in excess of 12 years, subject to
14 a maximum of 80% of such salary. To the extent such
15 commissioner has made additional optional contributions with
16 respect to only a portion of years of service credit, the
17 retirement annuity will first be determined in accordance
18 with this Section to the extent such additional optional
19 contributions were made, and then in accordance with the
20 remaining Sections of this Article to the extent of years of
21 service credit with respect to which additional optional
22 contributions were not made. The change in minimum
23 retirement age (from 60 to 55) made by this amendatory Act of
24 1993 applies to persons who begin receiving a retirement
25 annuity under this Section on or after the effective date of
26 this amendatory Act, without regard to whether they are in
27 service on or after that date.
28 (c) Disability benefits. In lieu of the disability
29 benefits otherwise payable under this Article, any
30 commissioner who (1) has elected to participate in the Fund,
31 and (2) has become permanently disabled and as a consequence
32 is unable to perform the duties of office, and (3) was making
33 optional contributions in accordance with this Section at the
34 time the disability was incurred, may elect to receive a
HB0488 Enrolled -29- LRB9002860EGfg
1 disability annuity calculated in accordance with the formula
2 in subsection (b). For the purposes of this subsection, such
3 commissioner shall be considered permanently disabled only
4 if: (i) disability occurs while in service as a commissioner
5 and is of such a nature as to prevent the reasonable
6 performance of the duties of office at the time; and (ii) the
7 Board has received a written certification by at least 2
8 licensed physicians appointed by it stating that such
9 commissioner is disabled and that the disability is likely to
10 be permanent.
11 (d) Alternative survivor's benefits. In lieu of the
12 survivor's benefits otherwise payable under this Article, the
13 spouse or eligible child of any deceased commissioner who (1)
14 had elected to participate in the Fund, and (2) was either
15 making additional optional contributions on the date of
16 death, or was receiving an annuity calculated under this
17 Section at the time of death, may elect to receive an annuity
18 beginning on the date of the commissioner's death, provided
19 that the spouse and commissioner must have been married on
20 the date of the last termination of a service as commissioner
21 and for a continuous period of at least one year immediately
22 preceding death.
23 The annuity shall be payable beginning on the date of the
24 commissioner's death if the spouse is then age 50 or over, or
25 beginning at age 50 if the age of the spouse is less than 50
26 years. If a minor unmarried child or children of the
27 commissioner, under age 18, also survive, and the child or
28 children are under the care of the eligible spouse, the
29 annuity shall begin as of the date of death of the
30 commissioner without regard to the spouse's age.
31 The annuity to a spouse shall be 66 2/3% of the amount of
32 retirement annuity earned by the commissioner on the date of
33 death, subject to a minimum payment of 10% of salary,
34 provided that if an eligible spouse, regardless of age, has
HB0488 Enrolled -30- LRB9002860EGfg
1 in his or her care at the date of death of the commissioner
2 any unmarried child or children of the commissioner under age
3 18, the minimum annuity shall be 30% of the commissioner's
4 salary, plus 10% of salary on account of each minor child of
5 the commissioner, subject to a combined total payment on
6 account of a spouse and minor children not to exceed 50% of
7 the deceased commissioner's salary. In the event there shall
8 be no spouse of the commissioner surviving, or should a
9 spouse die while eligible minor children still survive the
10 commissioner, each such child shall be entitled to an annuity
11 equal to 20% of salary of the commissioner subject to a
12 combined total payment on account of all such children not to
13 exceed 50% of salary of the commissioner. The salary to be
14 used in the calculation of these benefits shall be the same
15 as that prescribed for determining a retirement annuity as
16 provided in subsection (b) of this Section.
17 Upon the death of a commissioner occurring after
18 termination of a service or while in receipt of a retirement
19 annuity, the combined total payment to a spouse and minor
20 children, or to minor children alone if no eligible spouse
21 survives, shall be limited to 75% of the amount of retirement
22 annuity earned by the commissioner.
23 Adopted children shall have status as natural children of
24 the commissioner only if the proceedings for adoption were
25 commenced at least one year prior to the date of the
26 commissioner's death.
27 Marriage of a child or attainment of age 18, whichever
28 first occurs, shall render the child ineligible for further
29 consideration in the payment of annuity to a spouse or in the
30 increase in the amount thereof. Upon attainment of
31 ineligibility of the youngest minor child of the
32 commissioner, the annuity shall immediately revert to the
33 amount payable upon death of a commissioner leaving no minor
34 children surviving. If the spouse is under age 50 at such
HB0488 Enrolled -31- LRB9002860EGfg
1 time, the annuity as revised shall be deferred until such age
2 is attained.
3 (e) Refunds. Refunds of additional optional
4 contributions shall be made on the same basis and under the
5 same conditions as provided under Section 13-601. Interest
6 shall be credited on the same basis and under the same
7 conditions as for other contributions.
8 Optional contributions shall be accounted for in a
9 separate Commission's Optional Contribution Reserve.
10 Optional contributions under this Section shall be included
11 in the amount of employee contributions used to compute the
12 tax levy under Section 13-503.
13 (f) Effective date. The effective date of this plan of
14 optional alternative benefits and contributions shall be the
15 date upon which approval was received from the U.S. Internal
16 Revenue Service. The plan of optional alternative benefits
17 and contributions shall not be available to any former
18 employee receiving an annuity from the Fund on the effective
19 date, unless said former employee re-enters service and
20 renders at least 3 years of additional service after the date
21 of re-entry as a commissioner.
22 (Source: P.A. 87-794; 87-1265.)
23 (40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
24 Sec. 13-401. Term of service.
25 (a) In computing the term of service, the following
26 periods of time shall be counted as periods of service for
27 annuity purposes only:
28 (1) the time during which the employee performs
29 services required by the Employer.
30 (2) approved vacations or leaves of absence with
31 whole or part pay.
32 (3) any period for which the employee receives a
33 disability benefit payable under this Article.
HB0488 Enrolled -32- LRB9002860EGfg
1 (4) leaves of absence for military service as
2 provided in Section 13-403.
3 (b) In computing the term of service for the ordinary
4 disability benefit, the following periods of time shall be
5 counted as periods of service:
6 (1) the time during which the employee performs
7 services required by the Employer.
8 (2) approved vacations or leaves of absence with
9 whole or part pay.
10 (3) any period for which the employee receives a
11 duty disability benefit under this Article.
12 (c) Any employee who first enters service before the
13 effective date of this amendatory Act of 1997 may, during any
14 period of approved leave of absence without pay, continue to
15 make contributions for the retirement and surviving spouse's
16 annuities for a total period not to exceed one year during
17 the employee's entire aggregate service with the Employer.
18 Upon making these contributions, the employee shall receive
19 credit in terms of length of service for the retirement and
20 surviving spouse's annuities. Concurrent Employer's
21 contributions shall be provided by the District.
22 (d) An employee may establish credit for periods of
23 approved leave of absence without pay, not to exceed a total
24 of one year during the employee's aggregate service with the
25 employer. To establish this credit, the employee must either
26 continue to remain on approved leave of absence, return to
27 service with the employer, or in the case of an employee who
28 first enters service on or after the effective date of this
29 amendatory Act of 1997, return to service with the employer
30 for at least one calendar year. The employee must pay to the
31 Fund the corresponding employee contributions, plus interest
32 at the annual rate from time to time determined by the Board,
33 compounded annually from the date of service to the date of
34 payment. The corresponding employer contributions shall be
HB0488 Enrolled -33- LRB9002860EGfg
1 provided by the District. Upon making the required
2 contributions, the employee shall receive credit in terms of
3 length of service for the retirement and surviving spouse's
4 annuity in proportion to the number of pay periods or portion
5 thereof for which contributions were made relative to 26 pay
6 periods.
7 (e) Overtime or extra service shall not be included in
8 computing any service. Not more than one 1 year of service
9 credit shall be allowed for service rendered during any
10 calendar year.
11 (Source: P.A. 87-794.)
12 (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
13 Sec. 13-402. Length of service. For the purpose of
14 computing the length of service for the retirement annuity,
15 surviving spouse's annuity and child's annuity, service of
16 120 days in any one calendar year shall constitute one year
17 of service and service for any fractional part thereof shall
18 constitute an equal fractional part of one year of service
19 unless specifically provided otherwise. For all other
20 purposes under this Article, including but not limited to the
21 optional plans plan of additional benefits and contributions
22 provided under Sections Section 13-304 and 13-314 of this
23 Article, 26 pay periods of service during any 12 consecutive
24 months a calendar year shall constitute a year of service,
25 and service rendered for 50% or more of a single pay period
26 shall constitute service for the full pay period. Service of
27 less than 50% of a single pay period shall not be counted.
28 (Source: P.A. 87-794.)
29 Section 90. In accordance with subdivision (a)(1) of
30 Section 8 of the State Mandates Act, the General Assembly
31 finds that the State is excluded from reimbursement liability
32 for this amendatory Act of 1997 because it accommodates a
HB0488 Enrolled -34- LRB9002860EGfg
1 request from the affected unit of local government.
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.
HB0488 Enrolled -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