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90_HB1296eng
5 ILCS 375/3 from Ch. 127, par. 523
40 ILCS 5/15-107 from Ch. 108 1/2, par. 15-107
40 ILCS 5/15-134 from Ch. 108 1/2, par. 15-134
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-136.4 new
40 ILCS 5/15-146 from Ch. 108 1/2, par. 15-146
40 ILCS 5/15-154 from Ch. 108 1/2, par. 15-154
40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157
40 ILCS 5/15-158.2
40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
40 ILCS 15/1.1
Amends the State Universities Article of the Pension Code
to provide for another optional retirement program. Amends
the State Employees Group Insurance Act to make changes in
definitions. Also makes other changes. Amends the State
Pension Funds Continuing Appropriation Act to make a change
in the continuing appropriation for the State Universities
Retirement System. Effective immediately.
LRB9004157EGfg
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1 AN ACT in relation to public employee retirement
2 benefits, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Section 3 as follows:
7 (5 ILCS 375/3) (from Ch. 127, par. 523)
8 (Text of Section before amendment by P.A. 89-507)
9 Sec. 3. Definitions. Unless the context otherwise
10 requires, the following words and phrases as used in this Act
11 shall have the following meanings. The Department may define
12 these and other words and phrases separately for the purpose
13 of implementing specific programs providing benefits under
14 this Act.
15 (a) "Administrative service organization" means any
16 person, firm or corporation experienced in the handling of
17 claims which is fully qualified, financially sound and
18 capable of meeting the service requirements of a contract of
19 administration executed with the Department.
20 (b) "Annuitant" means (1) an employee who retires, or
21 has retired, on or after January 1, 1966 on an immediate
22 annuity under the provisions of Articles 2, 14, 15 (including
23 an employee who has retired and is receiving a retirement
24 annuity under the an optional retirement program established
25 under Section 15-158.2 and who would also be eligible for a
26 retirement annuity had that person been a participant in the
27 State University Retirement System), paragraphs (b) or (c) of
28 Section 16-106, or Article 18 of the Illinois Pension Code;
29 (2) any person who was receiving group insurance coverage
30 under this Act as of March 31, 1978 by reason of his status
31 as an annuitant, even though the annuity in relation to which
HB1296 Engrossed -2- LRB9004157EGfg
1 such coverage was provided is a proportional annuity based on
2 less than the minimum period of service required for a
3 retirement annuity in the system involved; (3) any person not
4 otherwise covered by this Act who has retired as a
5 participating member under Article 2 of the Illinois Pension
6 Code but is ineligible for the retirement annuity under
7 Section 2-119 of the Illinois Pension Code; (4) the spouse of
8 any person who is receiving a retirement annuity under
9 Article 18 of the Illinois Pension Code and who is covered
10 under a group health insurance program sponsored by a
11 governmental employer other than the State of Illinois and
12 who has irrevocably elected to waive his or her coverage
13 under this Act and to have his or her spouse considered as
14 the "annuitant" under this Act and not as a "dependent"; or
15 (5) an employee who retires, or has retired, from a qualified
16 position, as determined according to rules promulgated by the
17 Director, under a qualified local government or a qualified
18 rehabilitation facility or a qualified domestic violence
19 shelter or service. (For definition of "retired employee",
20 see (p) post).
21 (c) "Carrier" means (1) an insurance company, a
22 corporation organized under the Limited Health Service
23 Organization Act or the Voluntary Health Services Plan Act, a
24 partnership, or other nongovernmental organization, which is
25 authorized to do group life or group health insurance
26 business in Illinois, or (2) the State of Illinois as a
27 self-insurer.
28 (d) "Compensation" means salary or wages payable on a
29 regular payroll by the State Treasurer on a warrant of the
30 State Comptroller out of any State, trust or federal fund, or
31 by the Governor of the State through a disbursing officer of
32 the State out of a trust or out of federal funds, or by any
33 Department out of State, trust, federal or other funds held
34 by the State Treasurer or the Department, to any person for
HB1296 Engrossed -3- LRB9004157EGfg
1 personal services currently performed, and ordinary or
2 accidental disability benefits under Articles 2, 14, 15
3 (including ordinary or accidental disability benefits under
4 the an optional retirement program established under Section
5 15-158.2), paragraphs (b) or (c) of Section 16-106, or
6 Article 18 of the Illinois Pension Code, for disability
7 incurred after January 1, 1966, or benefits payable under the
8 Workers' Compensation or Occupational Diseases Act or
9 benefits payable under a sick pay plan established in
10 accordance with Section 36 of the State Finance Act.
11 "Compensation" also means salary or wages paid to an employee
12 of any qualified local government or qualified rehabilitation
13 facility or a qualified domestic violence shelter or service.
14 (e) "Commission" means the State Employees Group
15 Insurance Advisory Commission authorized by this Act.
16 Commencing July 1, 1984, "Commission" as used in this Act
17 means the Illinois Economic and Fiscal Commission as
18 established by the Legislative Commission Reorganization Act
19 of 1984.
20 (f) "Contributory", when referred to as contributory
21 coverage, shall mean optional coverages or benefits elected
22 by the member toward the cost of which such member makes
23 contribution, or which are funded in whole or in part through
24 the acceptance of a reduction in earnings or the foregoing of
25 an increase in earnings by an employee, as distinguished from
26 noncontributory coverage or benefits which are paid entirely
27 by the State of Illinois without reduction of the member's
28 salary.
29 (g) "Department" means any department, institution,
30 board, commission, officer, court or any agency of the State
31 government receiving appropriations and having power to
32 certify payrolls to the Comptroller authorizing payments of
33 salary and wages against such appropriations as are made by
34 the General Assembly from any State fund, or against trust
HB1296 Engrossed -4- LRB9004157EGfg
1 funds held by the State Treasurer and includes boards of
2 trustees of the retirement systems created by Articles 2, 14,
3 15, 16 and 18 of the Illinois Pension Code. "Department"
4 also includes the Illinois Comprehensive Health Insurance
5 Board and the Illinois Rural Bond Bank.
6 (h) "Dependent", when the term is used in the context of
7 the health and life plan, means a member's spouse and any
8 unmarried child (1) from birth to age 19 including an adopted
9 child, a child who lives with the member from the time of the
10 filing of a petition for adoption until entry of an order of
11 adoption, a stepchild or recognized child who lives with the
12 member in a parent-child relationship, or a child who lives
13 with the member if such member is a court appointed guardian
14 of the child, or (2) age 19 to 23 enrolled as a full-time
15 student in any accredited school, financially dependent upon
16 the member, and eligible as a dependent for Illinois State
17 income tax purposes, or (3) age 19 or over who is mentally or
18 physically handicapped as defined in the Illinois Insurance
19 Code. For the health plan only, the term "dependent" also
20 includes any person enrolled prior to the effective date of
21 this Section who is dependent upon the member to the extent
22 that the member may claim such person as a dependent for
23 Illinois State income tax deduction purposes; no other such
24 person may be enrolled.
25 (i) "Director" means the Director of the Illinois
26 Department of Central Management Services.
27 (j) "Eligibility period" means the period of time a
28 member has to elect enrollment in programs or to select
29 benefits without regard to age, sex or health.
30 (k) "Employee" means and includes each officer or
31 employee in the service of a department who (1) receives his
32 compensation for service rendered to the department on a
33 warrant issued pursuant to a payroll certified by a
34 department or on a warrant or check issued and drawn by a
HB1296 Engrossed -5- LRB9004157EGfg
1 department upon a trust, federal or other fund or on a
2 warrant issued pursuant to a payroll certified by an elected
3 or duly appointed officer of the State or who receives
4 payment of the performance of personal services on a warrant
5 issued pursuant to a payroll certified by a Department and
6 drawn by the Comptroller upon the State Treasurer against
7 appropriations made by the General Assembly from any fund or
8 against trust funds held by the State Treasurer, and (2) is
9 employed full-time or part-time in a position normally
10 requiring actual performance of duty during not less than 1/2
11 of a normal work period, as established by the Director in
12 cooperation with each department, except that persons elected
13 by popular vote will be considered employees during the
14 entire term for which they are elected regardless of hours
15 devoted to the service of the State, and (3) except that
16 "employee" does not include any person who is not eligible by
17 reason of such person's employment to participate in one of
18 the State retirement systems under Articles 2, 14, 15 (either
19 the regular Article 15 system or the an optional retirement
20 program established under Section 15-158.2) or 18, or under
21 paragraph (b) or (c) of Section 16-106, of the Illinois
22 Pension Code, but such term does include persons who are
23 employed during the 6 month qualifying period under Article
24 14 of the Illinois Pension Code. Such term also includes any
25 person who (1) after January 1, 1966, is receiving ordinary
26 or accidental disability benefits under Articles 2, 14, 15
27 (including ordinary or accidental disability benefits under
28 the an optional retirement program established under Section
29 15-158.2), paragraphs (b) or (c) of Section 16-106, or
30 Article 18 of the Illinois Pension Code, for disability
31 incurred after January 1, 1966, (2) receives total permanent
32 or total temporary disability under the Workers' Compensation
33 Act or Occupational Disease Act as a result of injuries
34 sustained or illness contracted in the course of employment
HB1296 Engrossed -6- LRB9004157EGfg
1 with the State of Illinois, or (3) is not otherwise covered
2 under this Act and has retired as a participating member
3 under Article 2 of the Illinois Pension Code but is
4 ineligible for the retirement annuity under Section 2-119 of
5 the Illinois Pension Code. However, a person who satisfies
6 the criteria of the foregoing definition of "employee" except
7 that such person is made ineligible to participate in the
8 State Universities Retirement System by clause (4) of the
9 first paragraph of Section 15-107 of the Illinois Pension
10 Code is also an "employee" for the purposes of this Act.
11 "Employee" also includes any person receiving or eligible for
12 benefits under a sick pay plan established in accordance with
13 Section 36 of the State Finance Act. "Employee" also includes
14 each officer or employee in the service of a qualified local
15 government, including persons appointed as trustees of
16 sanitary districts regardless of hours devoted to the service
17 of the sanitary district, and each employee in the service of
18 a qualified rehabilitation facility and each full-time
19 employee in the service of a qualified domestic violence
20 shelter or service, as determined according to rules
21 promulgated by the Director.
22 (l) "Member" means an employee, annuitant, retired
23 employee or survivor.
24 (m) "Optional coverages or benefits" means those
25 coverages or benefits available to the member on his or her
26 voluntary election, and at his or her own expense.
27 (n) "Program" means the group life insurance, health
28 benefits and other employee benefits designed and contracted
29 for by the Director under this Act.
30 (o) "Health plan" means a self-insured health insurance
31 program offered by the State of Illinois for the purposes of
32 benefiting employees by means of providing, among others,
33 wellness programs, utilization reviews, second opinions and
34 medical fee reviews, as well as for paying for hospital and
HB1296 Engrossed -7- LRB9004157EGfg
1 medical care up to the maximum coverage provided by the plan,
2 to its members and their dependents.
3 (p) "Retired employee" means any person who would be an
4 annuitant as that term is defined herein but for the fact
5 that such person retired prior to January 1, 1966. Such term
6 also includes any person formerly employed by the University
7 of Illinois in the Cooperative Extension Service who would be
8 an annuitant but for the fact that such person was made
9 ineligible to participate in the State Universities
10 Retirement System by clause (4) of the first paragraph of
11 Section 15-107 of the Illinois Pension Code.
12 (q) "Survivor" means a person receiving an annuity as a
13 survivor of an employee or of an annuitant. "Survivor" also
14 includes: (1) the surviving dependent of a person who
15 satisfies the definition of "employee" except that such
16 person is made ineligible to participate in the State
17 Universities Retirement System by clause (4) of the first
18 paragraph of Section 15-107 of the Illinois Pension Code; and
19 (2) the surviving dependent of any person formerly employed
20 by the University of Illinois in the Cooperative Extension
21 Service who would be an annuitant except for the fact that
22 such person was made ineligible to participate in the State
23 Universities Retirement System by clause (4) of the first
24 paragraph of Section 15-107 of the Illinois Pension Code.
25 (r) "Medical services" means the services provided
26 within the scope of their licenses by practitioners in all
27 categories licensed under the Medical Practice Act of 1987.
28 (s) "Unit of local government" means any county,
29 municipality, township, school district, special district or
30 other unit, designated as a unit of local government by law,
31 which exercises limited governmental powers or powers in
32 respect to limited governmental subjects, any not-for-profit
33 association with a membership that primarily includes
34 townships and township officials, that has duties that
HB1296 Engrossed -8- LRB9004157EGfg
1 include provision of research service, dissemination of
2 information, and other acts for the purpose of improving
3 township government, and that is funded wholly or partly in
4 accordance with Section 85-15 of the Township Code; any
5 not-for-profit corporation or association, with a membership
6 consisting primarily of municipalities, that operates its own
7 utility system, and provides research, training,
8 dissemination of information, or other acts to promote
9 cooperation between and among municipalities that provide
10 utility services and for the advancement of the goals and
11 purposes of its membership; and the Illinois Association of
12 Park Districts. "Qualified local government" means a unit of
13 local government approved by the Director and participating
14 in a program created under subsection (i) of Section 10 of
15 this Act.
16 (t) "Qualified rehabilitation facility" means any
17 not-for-profit organization that is accredited by the
18 Commission on Accreditation of Rehabilitation Facilities or
19 certified by the Department of Mental Health and
20 Developmental Disabilities to provide services to persons
21 with disabilities and which receives funds from the State of
22 Illinois for providing those services, approved by the
23 Director and participating in a program created under
24 subsection (j) of Section 10 of this Act.
25 (u) "Qualified domestic violence shelter or service"
26 means any Illinois domestic violence shelter or service and
27 its administrative offices funded by the Illinois Department
28 of Public Aid, approved by the Director and participating in
29 a program created under subsection (k) of Section 10.
30 (v) "TRS benefit recipient" means a person who:
31 (1) is not a "member" as defined in this Section;
32 and
33 (2) is receiving a monthly benefit or retirement
34 annuity under Article 16 of the Illinois Pension Code;
HB1296 Engrossed -9- LRB9004157EGfg
1 and
2 (3) either (i) has at least 8 years of creditable
3 service under Article 16 of the Illinois Pension Code, or
4 (ii) was enrolled in the health insurance program offered
5 under that Article on January 1, 1996, or (iii) is the
6 survivor of a benefit recipient who had at least 8 years
7 of creditable service under Article 16 of the Illinois
8 Pension Code or was enrolled in the health insurance
9 program offered under that Article on the effective date
10 of this amendatory Act of 1995, or (iv) is a recipient or
11 survivor of a recipient of a disability benefit under
12 Article 16 of the Illinois Pension Code.
13 (w) "TRS dependent beneficiary" means a person who:
14 (1) is not a "member" or "dependent" as defined in
15 this Section; and
16 (2) is a TRS benefit recipient's: (A) spouse, (B)
17 dependent parent who is receiving at least half of his or
18 her support from the TRS benefit recipient, or (C)
19 unmarried natural or adopted child who is (i) under age
20 19, or (ii) enrolled as a full-time student in an
21 accredited school, financially dependent upon the TRS
22 benefit recipient, eligible as a dependent for Illinois
23 State income tax purposes, and either is under age 24 or
24 was, on January 1, 1996, participating as a dependent
25 beneficiary in the health insurance program offered under
26 Article 16 of the Illinois Pension Code, or (iii) age 19
27 or over who is mentally or physically handicapped as
28 defined in the Illinois Insurance Code.
29 (x) "Military leave with pay and benefits" refers to
30 individuals in basic training for reserves, special/advanced
31 training, annual training, emergency call up, or activation
32 by the President of the United States with approved pay and
33 benefits.
34 (y) "Military leave without pay and benefits" refers to
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1 individuals who enlist for active duty in a regular component
2 of the U.S. Armed Forces or other duty not specified or
3 authorized under military leave with pay and benefits.
4 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
5 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
6 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
7 eff. 8-9-96; revised 8-23-96.)
8 (Text of Section after amendment by P.A. 89-507)
9 Sec. 3. Definitions. Unless the context otherwise
10 requires, the following words and phrases as used in this Act
11 shall have the following meanings. The Department may define
12 these and other words and phrases separately for the purpose
13 of implementing specific programs providing benefits under
14 this Act.
15 (a) "Administrative service organization" means any
16 person, firm or corporation experienced in the handling of
17 claims which is fully qualified, financially sound and
18 capable of meeting the service requirements of a contract of
19 administration executed with the Department.
20 (b) "Annuitant" means (1) an employee who retires, or
21 has retired, on or after January 1, 1966 on an immediate
22 annuity under the provisions of Articles 2, 14, 15 (including
23 an employee who has retired and is receiving a retirement
24 annuity under the an optional retirement program established
25 under Section 15-158.2 and who would also be eligible for a
26 retirement annuity had that person been a participant in the
27 State University Retirement System), paragraphs (b) or (c) of
28 Section 16-106, or Article 18 of the Illinois Pension Code;
29 (2) any person who was receiving group insurance coverage
30 under this Act as of March 31, 1978 by reason of his status
31 as an annuitant, even though the annuity in relation to which
32 such coverage was provided is a proportional annuity based on
33 less than the minimum period of service required for a
34 retirement annuity in the system involved; (3) any person not
HB1296 Engrossed -11- LRB9004157EGfg
1 otherwise covered by this Act who has retired as a
2 participating member under Article 2 of the Illinois Pension
3 Code but is ineligible for the retirement annuity under
4 Section 2-119 of the Illinois Pension Code; (4) the spouse of
5 any person who is receiving a retirement annuity under
6 Article 18 of the Illinois Pension Code and who is covered
7 under a group health insurance program sponsored by a
8 governmental employer other than the State of Illinois and
9 who has irrevocably elected to waive his or her coverage
10 under this Act and to have his or her spouse considered as
11 the "annuitant" under this Act and not as a "dependent"; or
12 (5) an employee who retires, or has retired, from a qualified
13 position, as determined according to rules promulgated by the
14 Director, under a qualified local government or a qualified
15 rehabilitation facility or a qualified domestic violence
16 shelter or service. (For definition of "retired employee",
17 see (p) post).
18 (c) "Carrier" means (1) an insurance company, a
19 corporation organized under the Limited Health Service
20 Organization Act or the Voluntary Health Services Plan Act, a
21 partnership, or other nongovernmental organization, which is
22 authorized to do group life or group health insurance
23 business in Illinois, or (2) the State of Illinois as a
24 self-insurer.
25 (d) "Compensation" means salary or wages payable on a
26 regular payroll by the State Treasurer on a warrant of the
27 State Comptroller out of any State, trust or federal fund, or
28 by the Governor of the State through a disbursing officer of
29 the State out of a trust or out of federal funds, or by any
30 Department out of State, trust, federal or other funds held
31 by the State Treasurer or the Department, to any person for
32 personal services currently performed, and ordinary or
33 accidental disability benefits under Articles 2, 14, 15
34 (including ordinary or accidental disability benefits under
HB1296 Engrossed -12- LRB9004157EGfg
1 the an optional retirement program established under Section
2 15-158.2), paragraphs (b) or (c) of Section 16-106, or
3 Article 18 of the Illinois Pension Code, for disability
4 incurred after January 1, 1966, or benefits payable under the
5 Workers' Compensation or Occupational Diseases Act or
6 benefits payable under a sick pay plan established in
7 accordance with Section 36 of the State Finance Act.
8 "Compensation" also means salary or wages paid to an employee
9 of any qualified local government or qualified rehabilitation
10 facility or a qualified domestic violence shelter or service.
11 (e) "Commission" means the State Employees Group
12 Insurance Advisory Commission authorized by this Act.
13 Commencing July 1, 1984, "Commission" as used in this Act
14 means the Illinois Economic and Fiscal Commission as
15 established by the Legislative Commission Reorganization Act
16 of 1984.
17 (f) "Contributory", when referred to as contributory
18 coverage, shall mean optional coverages or benefits elected
19 by the member toward the cost of which such member makes
20 contribution, or which are funded in whole or in part through
21 the acceptance of a reduction in earnings or the foregoing of
22 an increase in earnings by an employee, as distinguished from
23 noncontributory coverage or benefits which are paid entirely
24 by the State of Illinois without reduction of the member's
25 salary.
26 (g) "Department" means any department, institution,
27 board, commission, officer, court or any agency of the State
28 government receiving appropriations and having power to
29 certify payrolls to the Comptroller authorizing payments of
30 salary and wages against such appropriations as are made by
31 the General Assembly from any State fund, or against trust
32 funds held by the State Treasurer and includes boards of
33 trustees of the retirement systems created by Articles 2, 14,
34 15, 16 and 18 of the Illinois Pension Code. "Department"
HB1296 Engrossed -13- LRB9004157EGfg
1 also includes the Illinois Comprehensive Health Insurance
2 Board and the Illinois Rural Bond Bank.
3 (h) "Dependent", when the term is used in the context of
4 the health and life plan, means a member's spouse and any
5 unmarried child (1) from birth to age 19 including an adopted
6 child, a child who lives with the member from the time of the
7 filing of a petition for adoption until entry of an order of
8 adoption, a stepchild or recognized child who lives with the
9 member in a parent-child relationship, or a child who lives
10 with the member if such member is a court appointed guardian
11 of the child, or (2) age 19 to 23 enrolled as a full-time
12 student in any accredited school, financially dependent upon
13 the member, and eligible as a dependent for Illinois State
14 income tax purposes, or (3) age 19 or over who is mentally or
15 physically handicapped as defined in the Illinois Insurance
16 Code. For the health plan only, the term "dependent" also
17 includes any person enrolled prior to the effective date of
18 this Section who is dependent upon the member to the extent
19 that the member may claim such person as a dependent for
20 Illinois State income tax deduction purposes; no other such
21 person may be enrolled.
22 (i) "Director" means the Director of the Illinois
23 Department of Central Management Services.
24 (j) "Eligibility period" means the period of time a
25 member has to elect enrollment in programs or to select
26 benefits without regard to age, sex or health.
27 (k) "Employee" means and includes each officer or
28 employee in the service of a department who (1) receives his
29 compensation for service rendered to the department on a
30 warrant issued pursuant to a payroll certified by a
31 department or on a warrant or check issued and drawn by a
32 department upon a trust, federal or other fund or on a
33 warrant issued pursuant to a payroll certified by an elected
34 or duly appointed officer of the State or who receives
HB1296 Engrossed -14- LRB9004157EGfg
1 payment of the performance of personal services on a warrant
2 issued pursuant to a payroll certified by a Department and
3 drawn by the Comptroller upon the State Treasurer against
4 appropriations made by the General Assembly from any fund or
5 against trust funds held by the State Treasurer, and (2) is
6 employed full-time or part-time in a position normally
7 requiring actual performance of duty during not less than 1/2
8 of a normal work period, as established by the Director in
9 cooperation with each department, except that persons elected
10 by popular vote will be considered employees during the
11 entire term for which they are elected regardless of hours
12 devoted to the service of the State, and (3) except that
13 "employee" does not include any person who is not eligible by
14 reason of such person's employment to participate in one of
15 the State retirement systems under Articles 2, 14, 15 (either
16 the regular Article 15 system or the an optional retirement
17 program established under Section 15-158.2) or 18, or under
18 paragraph (b) or (c) of Section 16-106, of the Illinois
19 Pension Code, but such term does include persons who are
20 employed during the 6 month qualifying period under Article
21 14 of the Illinois Pension Code. Such term also includes any
22 person who (1) after January 1, 1966, is receiving ordinary
23 or accidental disability benefits under Articles 2, 14, 15
24 (including ordinary or accidental disability benefits under
25 the an optional retirement program established under Section
26 15-158.2), paragraphs (b) or (c) of Section 16-106, or
27 Article 18 of the Illinois Pension Code, for disability
28 incurred after January 1, 1966, (2) receives total permanent
29 or total temporary disability under the Workers' Compensation
30 Act or Occupational Disease Act as a result of injuries
31 sustained or illness contracted in the course of employment
32 with the State of Illinois, or (3) is not otherwise covered
33 under this Act and has retired as a participating member
34 under Article 2 of the Illinois Pension Code but is
HB1296 Engrossed -15- LRB9004157EGfg
1 ineligible for the retirement annuity under Section 2-119 of
2 the Illinois Pension Code. However, a person who satisfies
3 the criteria of the foregoing definition of "employee" except
4 that such person is made ineligible to participate in the
5 State Universities Retirement System by clause (4) of the
6 first paragraph of Section 15-107 of the Illinois Pension
7 Code is also an "employee" for the purposes of this Act.
8 "Employee" also includes any person receiving or eligible for
9 benefits under a sick pay plan established in accordance with
10 Section 36 of the State Finance Act. "Employee" also includes
11 each officer or employee in the service of a qualified local
12 government, including persons appointed as trustees of
13 sanitary districts regardless of hours devoted to the service
14 of the sanitary district, and each employee in the service of
15 a qualified rehabilitation facility and each full-time
16 employee in the service of a qualified domestic violence
17 shelter or service, as determined according to rules
18 promulgated by the Director.
19 (l) "Member" means an employee, annuitant, retired
20 employee or survivor.
21 (m) "Optional coverages or benefits" means those
22 coverages or benefits available to the member on his or her
23 voluntary election, and at his or her own expense.
24 (n) "Program" means the group life insurance, health
25 benefits and other employee benefits designed and contracted
26 for by the Director under this Act.
27 (o) "Health plan" means a self-insured health insurance
28 program offered by the State of Illinois for the purposes of
29 benefiting employees by means of providing, among others,
30 wellness programs, utilization reviews, second opinions and
31 medical fee reviews, as well as for paying for hospital and
32 medical care up to the maximum coverage provided by the plan,
33 to its members and their dependents.
34 (p) "Retired employee" means any person who would be an
HB1296 Engrossed -16- LRB9004157EGfg
1 annuitant as that term is defined herein but for the fact
2 that such person retired prior to January 1, 1966. Such term
3 also includes any person formerly employed by the University
4 of Illinois in the Cooperative Extension Service who would be
5 an annuitant but for the fact that such person was made
6 ineligible to participate in the State Universities
7 Retirement System by clause (4) of the first paragraph of
8 Section 15-107 of the Illinois Pension Code.
9 (q) "Survivor" means a person receiving an annuity as a
10 survivor of an employee or of an annuitant. "Survivor" also
11 includes: (1) the surviving dependent of a person who
12 satisfies the definition of "employee" except that such
13 person is made ineligible to participate in the State
14 Universities Retirement System by clause (4) of the first
15 paragraph of Section 15-107 of the Illinois Pension Code; and
16 (2) the surviving dependent of any person formerly employed
17 by the University of Illinois in the Cooperative Extension
18 Service who would be an annuitant except for the fact that
19 such person was made ineligible to participate in the State
20 Universities Retirement System by clause (4) of the first
21 paragraph of Section 15-107 of the Illinois Pension Code.
22 (r) "Medical services" means the services provided
23 within the scope of their licenses by practitioners in all
24 categories licensed under the Medical Practice Act of 1987.
25 (s) "Unit of local government" means any county,
26 municipality, township, school district, special district or
27 other unit, designated as a unit of local government by law,
28 which exercises limited governmental powers or powers in
29 respect to limited governmental subjects, any not-for-profit
30 association with a membership that primarily includes
31 townships and township officials, that has duties that
32 include provision of research service, dissemination of
33 information, and other acts for the purpose of improving
34 township government, and that is funded wholly or partly in
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1 accordance with Section 85-15 of the Township Code; any
2 not-for-profit corporation or association, with a membership
3 consisting primarily of municipalities, that operates its own
4 utility system, and provides research, training,
5 dissemination of information, or other acts to promote
6 cooperation between and among municipalities that provide
7 utility services and for the advancement of the goals and
8 purposes of its membership; and the Illinois Association of
9 Park Districts. "Qualified local government" means a unit of
10 local government approved by the Director and participating
11 in a program created under subsection (i) of Section 10 of
12 this Act.
13 (t) "Qualified rehabilitation facility" means any
14 not-for-profit organization that is accredited by the
15 Commission on Accreditation of Rehabilitation Facilities or
16 certified by the Department of Human Services (as successor
17 to the Department of Mental Health and Developmental
18 Disabilities) to provide services to persons with
19 disabilities and which receives funds from the State of
20 Illinois for providing those services, approved by the
21 Director and participating in a program created under
22 subsection (j) of Section 10 of this Act.
23 (u) "Qualified domestic violence shelter or service"
24 means any Illinois domestic violence shelter or service and
25 its administrative offices funded by the Department of Human
26 Services (as successor to the Illinois Department of Public
27 Aid), approved by the Director and participating in a program
28 created under subsection (k) of Section 10.
29 (v) "TRS benefit recipient" means a person who:
30 (1) is not a "member" as defined in this Section;
31 and
32 (2) is receiving a monthly benefit or retirement
33 annuity under Article 16 of the Illinois Pension Code;
34 and
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1 (3) either (i) has at least 8 years of creditable
2 service under Article 16 of the Illinois Pension Code, or
3 (ii) was enrolled in the health insurance program offered
4 under that Article on January 1, 1996, or (iii) is the
5 survivor of a benefit recipient who had at least 8 years
6 of creditable service under Article 16 of the Illinois
7 Pension Code or was enrolled in the health insurance
8 program offered under that Article on the effective date
9 of this amendatory Act of 1995, or (iv) is a recipient or
10 survivor of a recipient of a disability benefit under
11 Article 16 of the Illinois Pension Code.
12 (w) "TRS dependent beneficiary" means a person who:
13 (1) is not a "member" or "dependent" as defined in
14 this Section; and
15 (2) is a TRS benefit recipient's: (A) spouse, (B)
16 dependent parent who is receiving at least half of his or
17 her support from the TRS benefit recipient, or (C)
18 unmarried natural or adopted child who is (i) under age
19 19, or (ii) enrolled as a full-time student in an
20 accredited school, financially dependent upon the TRS
21 benefit recipient, eligible as a dependent for Illinois
22 State income tax purposes, and either is under age 24 or
23 was, on January 1, 1996, participating as a dependent
24 beneficiary in the health insurance program offered under
25 Article 16 of the Illinois Pension Code, or (iii) age 19
26 or over who is mentally or physically handicapped as
27 defined in the Illinois Insurance Code.
28 (x) "Military leave with pay and benefits" refers to
29 individuals in basic training for reserves, special/advanced
30 training, annual training, emergency call up, or activation
31 by the President of the United States with approved pay and
32 benefits.
33 (y) "Military leave without pay and benefits" refers to
34 individuals who enlist for active duty in a regular component
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1 of the U.S. Armed Forces or other duty not specified or
2 authorized under military leave with pay and benefits.
3 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
4 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
5 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
6 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
7 Section 10. The Illinois Pension Code is amended by
8 changing Sections 15-107, 15-134, 15-136, 15-141, 15-142,
9 15-146, 15-154, 15-157, 15-158.2, and 15-165 and adding
10 Section 15-136.4 as follows:
11 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
12 Sec. 15-107. Employee.
13 (a) "Employee" means any member of the educational,
14 administrative, secretarial, clerical, mechanical, labor or
15 other staff of an employer whose employment is permanent and
16 continuous or who is employed in a position in which services
17 are expected to be rendered on a continuous basis for at
18 least 4 months or one academic term, whichever is less, who
19 (A) receives payment for personal services on a warrant
20 issued pursuant to a payroll voucher certified by an employer
21 and drawn by the State Comptroller upon the State Treasurer
22 or by an employer upon trust, federal or other funds, or (B)
23 is on a leave of absence without pay. Employment which is
24 irregular, intermittent or temporary shall not be considered
25 continuous for purposes of this paragraph.
26 However, a person is not an "employee" if he or she:
27 (1) is a student enrolled in and regularly
28 attending classes in a college or university which is an
29 employer, and is employed on a temporary basis at less
30 than full time;
31 (2) is currently receiving a retirement annuity or
32 a disability retirement annuity under Section 15-153.2
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1 from this System;
2 (3) is on a military leave of absence;
3 (4) is eligible to participate in the Federal Civil
4 Service Retirement System and is currently making
5 contributions to that system based upon earnings paid by
6 an employer;
7 (5) is on leave of absence without pay for more
8 than 60 days immediately following termination of
9 disability benefits under this Article;
10 (6) is hired after June 30, 1979 as a public
11 service employment program participant under the Federal
12 Comprehensive Employment and Training Act and receives
13 earnings in whole or in part from funds provided under
14 that Act;
15 (7) is employed on or after July 1, 1991 to perform
16 services that are excluded by subdivision (a)(7)(f) or
17 (a)(19) of Section 210 of the federal Social Security Act
18 from the definition of employment given in that Section
19 (42 U.S.C. 410); or
20 (8) participates in an optional program for
21 part-time workers under Section 15-158.1.; or
22 (9) participates in an optional program for
23 employees under Section 15-158.2.
24 (b) Any employer may, by filing a written notice with
25 the board, exclude from the definition of "employee" all
26 persons employed pursuant to a federally funded contract
27 entered into after July 1, 1982 with a federal military
28 department in a program providing training in military
29 courses to federal military personnel on a military site
30 owned by the United States Government, if this exclusion is
31 not prohibited by the federally funded contract or federal
32 laws or rules governing the administration of the contract.
33 (c) Any person appointed by the Governor under the Civil
34 Administrative Code of the State is an employee, if he or she
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1 is a participant in this system on the effective date of the
2 appointment.
3 (d) A participant on lay-off status under civil service
4 rules is considered an employee for not more than 120 days
5 from the date of the lay-off.
6 (e) A participant is considered an employee during (1)
7 the first 60 days of disability leave, (2) the period, not to
8 exceed one year, in which his or her eligibility for
9 disability benefits is being considered by the board or
10 reviewed by the courts, and (3) the period he or she receives
11 disability benefits under the provisions of Section 15-152,
12 workers' compensation or occupational disease benefits, or
13 disability income under an insurance contract financed wholly
14 or partially by the employer.
15 (f) Absences without pay, other than formal leaves of
16 absence, of less than 30 calendar days, are not considered as
17 an interruption of a person's status as an employee. If such
18 absences during any period of 12 months exceed 30 work days,
19 the employee status of the person is considered as
20 interrupted as of the 31st work day.
21 (g) A staff member whose employment contract requires
22 services during an academic term is to be considered an
23 employee during the summer and other vacation periods, unless
24 he or she declines an employment contract for the succeeding
25 academic term or his or her employment status is otherwise
26 terminated, and he or she receives no earnings during these
27 periods.
28 (Source: P.A. 89-430, eff. 12-15-95.)
29 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
30 Sec. 15-134. Participant.
31 (a) Each person shall, as a condition of employment,
32 become a participant and be subject to this Article on the
33 date that he or she becomes an employee, makes an election to
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1 participate in, or otherwise becomes a participant in one of
2 the retirement programs offered under this Article, whichever
3 date is later.
4 An employee who becomes a participant shall continue to
5 be a participant until he or she becomes an annuitant, dies
6 or accepts a refund of contributions, except that a person
7 shall not be deemed a participant while participating in an
8 optional program for part-time workers established under
9 Section 15-158.1 or participating in an optional program for
10 employees established under Section 15-158.2.
11 (b) A person employed concurrently by 2 or more
12 employers is eligible to participate in the system on
13 compensation received from all employers; however, his or her
14 combined basic compensation and combined earnings shall not
15 exceed the basic compensation and earnings which would have
16 been payable for full-time employment by the employer under
17 which the employee's basic compensation is the highest.
18 However, effective for all employment on or after July 1,
19 1991, where a person is employed to render service to one
20 employer during an academic or summer term and is employed by
21 another employer to render service to it during the
22 succeeding, nonoverlapping academic or summer term, then
23 exclusively for the purposes of this Section, the person
24 shall be considered to be successively employed by more than
25 one employer, rather than concurrently employed by 2 or more
26 employers.
27 (Source: P.A. 89-430, eff. 12-15-95.)
28 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
29 Sec. 15-136. Retirement annuities - Amount.
30 (a) The amount of the retirement annuity shall be
31 determined by whichever of the following rules is applicable
32 and provides the largest annuity:
33 Rule 1: The retirement annuity shall be 1.67% of final
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1 rate of earnings for each of the first 10 years of service,
2 1.90% for each of the next 10 years of service, 2.10% for
3 each year of service in excess of 20 but not exceeding 30,
4 and 2.30% for each year in excess of 30, except that the
5 annuity for those persons having made an election under
6 Section 15-154(a-1) shall be calculated and payable under the
7 portable retirement benefit program pursuant to the
8 provisions of Section 15-136.4.
9 Rule 2: The retirement annuity shall be the sum of the
10 following, determined from amounts credited to the
11 participant in accordance with the actuarial tables and the
12 prescribed rate of interest in effect at the time the
13 retirement annuity begins:
14 (i) The normal annuity which can be provided on an
15 actuarially actuarial equivalent basis, by the accumulated
16 normal contributions as of the date the annuity begins; and
17 (ii) an annuity from employer contributions of an amount
18 which can be provided on an actuarially equivalent basis from
19 the accumulated normal contributions made by the participant
20 under Section 15-113.6 and Section 15-113.7 plus 1.4 times
21 all other accumulated normal contributions made by the
22 participant, except that the annuity for those persons having
23 made an election under Section 15-154(a-1) shall be
24 calculated and payable under the portable retirement benefit
25 program pursuant to the provisions of Section 15-136.4.
26 Rule 3: The retirement annuity of a participant who is
27 employed at least one-half time during the period on which
28 his or her final rate of earnings is based, shall be equal to
29 the participant's years of service not to exceed 30,
30 multiplied by (1) $96 if the participant's final rate of
31 earnings is less than $3,500, (2) $108 if the final rate of
32 earnings is at least $3,500 but less than $4,500, (3) $120 if
33 the final rate of earnings is at least $4,500 but less than
34 $5,500, (4) $132 if the final rate of earnings is at least
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1 $5,500 but less than $6,500, (5) $144 if the final rate of
2 earnings is at least $6,500 but less than $7,500, (6) $156 if
3 the final rate of earnings is at least $7,500 but less than
4 $8,500, (7) $168 if the final rate of earnings is at least
5 $8,500 but less than $9,500, and (8) $180 if the final rate
6 of earnings is $9,500 or more, except that the annuity for
7 those persons having made an election under Section
8 15-154(a-1) shall be calculated and payable under the
9 portable retirement benefit program pursuant to the
10 provisions of Section 15-136.4.
11 Rule 4: A participant who is at least age 50 and has 25
12 or more years of service as a police officer or firefighter,
13 and a participant who is age 55 or over and has at least 20
14 but less than 25 years of service as a police officer or
15 firefighter, shall be entitled to a retirement annuity of 2
16 1/4% of the final rate of earnings for each of the first 10
17 years of service as a police officer or firefighter, 2 1/2%
18 for each of the next 10 years of service as a police officer
19 or firefighter, and 2 3/4% for each year of service as a
20 police officer or firefighter in excess of 20, except that
21 the annuity for those persons have made an election under
22 Section 15-154(a-1) shall be calculated and payable under the
23 portable retirement benefit program pursuant to the
24 provisions of Section 15-136.4. The retirement annuity for
25 all other service shall be computed under Rule 1, payable
26 under the portable retirement benefit program pursuant to the
27 provisions of Section 15-136.4, if applicable.
28 (b) The retirement annuity provided under Rules 1 and 3
29 above shall be reduced by 1/2 of 1% for each month the
30 participant is under age 60 at the time of retirement.
31 However, this reduction shall not apply in the following
32 cases:
33 (1) For a disabled participant whose disability
34 benefits have been discontinued because he or she has
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1 exhausted eligibility for disability benefits under
2 clause (6) (5) of Section 15-152;
3 (2) For a participant who has at least 35 years of
4 service; or
5 (3) For that portion of a retirement annuity which
6 has been provided on account of service of the
7 participant during periods when he or she performed the
8 duties of a police officer or firefighter, if these
9 duties were performed for at least 5 years immediately
10 preceding the date the retirement annuity is to begin.
11 (c) The maximum retirement annuity provided under Rules
12 1, 2, and 4 shall be the lesser of (1) the annual limit of
13 benefits as specified in Section 415 of the Internal Revenue
14 Code of 1986, as such Section may be amended from time to
15 time and as such benefit limits shall be adjusted by the
16 Commissioner of Internal Revenue, and (2) 75% of final rate
17 of earnings; however, this limitation of 75% of final rate of
18 earnings shall not apply to a person who is a participant or
19 annuitant on September 15, 1977 if it results in a retirement
20 annuity less than that which is payable to the annuitant or
21 which would have been payable to the participant under the
22 provisions of this Article in effect on June 30, 1977.
23 (d) An annuitant whose status as an employee terminates
24 after August 14, 1969 shall receive automatic increases in
25 his or her retirement annuity as follows:
26 Effective January 1 immediately following the date the
27 retirement annuity begins, the annuitant shall receive an
28 increase in his or her monthly retirement annuity of 0.125%
29 of the monthly retirement annuity provided under Rule 1, Rule
30 2, Rule 3, or Rule 4, contained in this Section, multiplied
31 by the number of full months which elapsed from the date the
32 retirement annuity payments began to January 1, 1972, plus
33 0.1667% of such annuity, multiplied by the number of full
34 months which elapsed from January 1, 1972, or the date the
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1 retirement annuity payments began, whichever is later, to
2 January 1, 1978, plus 0.25% of such annuity multiplied by the
3 number of full months which elapsed from January 1, 1978, or
4 the date the retirement annuity payments began, whichever is
5 later, to the effective date of the increase.
6 The annuitant shall receive an increase in his or her
7 monthly retirement annuity on each January 1 thereafter
8 during the annuitant's life of 3% of the monthly annuity
9 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
10 this Section. The change made under this subsection by P.A.
11 81-970 is effective January 1, 1980 and applies to each
12 annuitant whose status as an employee terminates before or
13 after that date.
14 Beginning January 1, 1990, all automatic annual increases
15 payable under this Section shall be calculated as a
16 percentage of the total annuity payable at the time of the
17 increase, including all increases previously granted under
18 this Article. The change made in this subsection by P.A.
19 85-1008 is effective January 26, 1988, and is applicable
20 without regard to whether status as an employee terminated
21 before that date.
22 (e) If, on January 1, 1987, or the date the retirement
23 annuity payment period begins, whichever is later, the sum of
24 the retirement annuity provided under Rule 1 or Rule 2 of
25 this Section and the automatic annual increases provided
26 under the preceding subsection or Section 15-136.1, amounts
27 to less than the retirement annuity which would be provided
28 by Rule 3, the retirement annuity shall be increased as of
29 January 1, 1987, or the date the retirement annuity payment
30 period begins, whichever is later, to the amount which would
31 be provided by Rule 3 of this Section. Such increased amount
32 shall be considered as the retirement annuity in determining
33 benefits provided under other Sections of this Article. This
34 paragraph applies without regard to whether status as an
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1 employee terminated before the effective date of this
2 amendatory Act of 1987, provided that the annuitant was
3 employed at least one-half time during the period on which
4 the final rate of earnings was based.
5 (f) A participant is entitled to such additional annuity
6 as may be provided on an actuarially actuarial equivalent
7 basis, by any accumulated additional contributions to his or
8 her credit. However, the additional contributions made by
9 the participant toward the automatic increases in annuity
10 provided under this Section shall not be taken into account
11 in determining the amount of such additional annuity.
12 (g) If, (1) by law, a function of a governmental unit,
13 as defined by Section 20-107 of this Code, is transferred in
14 whole or in part to an employer, and (2) a participant
15 transfers employment from such governmental unit to such
16 employer within 6 months after the transfer of the function,
17 and (3) the sum of (A) the annuity payable to the participant
18 under Rule 1, 2, or 3 of this Section (B) all proportional
19 annuities payable to the participant by all other retirement
20 systems covered by Article 20, and (C) the initial primary
21 insurance amount to which the participant is entitled under
22 the Social Security Act, is less than the retirement annuity
23 which would have been payable if all of the participant's
24 pension credits validated under Section 20-109 had been
25 validated under this system, a supplemental annuity equal to
26 the difference in such amounts shall be payable to the
27 participant.
28 (h) On January 1, 1981, an annuitant who was receiving a
29 retirement annuity on or before January 1, 1971 shall have
30 his or her retirement annuity then being paid increased $1
31 per month for each year of creditable service. On January 1,
32 1982, an annuitant whose retirement annuity began on or
33 before January 1, 1977, shall have his or her retirement
34 annuity then being paid increased $1 per month for each year
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1 of creditable service.
2 (i) On January 1, 1987, any annuitant whose retirement
3 annuity began on or before January 1, 1977, shall have the
4 monthly retirement annuity increased by an amount equal to 8¢
5 per year of creditable service times the number of years that
6 have elapsed since the annuity began.
7 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
8 (40 ILCS 5/15-136.4 new)
9 Sec. 15-136.4. Portable Retirement Benefit Program.
10 (a) For purposes of this Section, "eligible spouse"
11 means the husband or wife of a participant to whom the
12 participant is married on the date the participant's annuity
13 begins. However, if the participant should die prior to the
14 date the annuity would have begun, then "eligible spouse"
15 means the husband or wife, if any, to whom the participant
16 was married throughout the one-year period preceding the date
17 of his or her death.
18 (b) If a participant has an eligible spouse on the date
19 his or her annuity payments commence, the annuity shall be
20 paid in the form of a 50% joint and survivor annuity unless
21 the participant elects otherwise in writing and his or her
22 eligible spouse consents to that election. Under a 50% joint
23 and survivor annuity, a reduced amount shall be paid to the
24 participant for his or her lifetime and his or her eligible
25 spouse, if surviving at the participant's death, shall be
26 entitled to receive thereafter a lifetime survivorship
27 annuity in a monthly amount equal to 50% of the reduced
28 monthly amount that was payable to the participant. The
29 reduced amount payable to the participant under the 50% joint
30 and survivor annuity shall be determined so that the
31 aggregate of the annuity payments expected to be made to the
32 participant and his or her eligible spouse is the actuarial
33 equivalent of a single-life annuity. The last payment of a
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1 50% joint and survivor annuity shall be made as of the first
2 day of the month in which the death of the survivor occurs.
3 (c) Instead of the 50% joint and survivor annuity, a
4 participant may elect in writing, within the 90-day period
5 prior to the date his or her annuity payments commence, and
6 only with the consent of his or her eligible spouse, to
7 receive a monthly amount in the form of a single-life
8 annuity. A participant may also elect instead an optional
9 form of benefit under subsection (k). However, if the
10 participant does elect an optional form of benefit under
11 subsection (k) and if the contingent annuitant under the
12 option is not the participant's eligible spouse, then the
13 optional election shall be canceled and the annuity shall be
14 paid in the form of a 50% joint and survivor annuity unless,
15 within the 90-day period preceding the annuity commencement
16 date, the eligible spouse consents to the optional election.
17 (d) A participant may also revoke any election made
18 under this Section at any time during the 90-day period
19 preceding the date the participant's annuity commences if the
20 purpose of such revocation is to reinstate coverage under the
21 50% joint and survivor annuity.
22 (e) The eligible spouse's consent to any election made
23 pursuant to this Section that requires the eligible spouse's
24 consent shall be in writing and shall acknowledge the effect
25 of the consent. In addition, the eligible spouse's signature
26 on the written consent must be witnessed by a notary public.
27 The eligible spouse's consent need not be obtained if the
28 system is satisfied that there is no eligible spouse, that
29 the eligible spouse cannot be located, or because of any
30 other relevant circumstances. An eligible spouse's consent
31 under this Section is valid only with respect to the
32 specified alternate contingent annuitant designated by the
33 participant. If the alternate contingent annuitant is
34 subsequently changed, a new consent by the eligible spouse is
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1 required. The eligible spouse's consent to an election made
2 by a participant pursuant to this Section, once made, may not
3 be revoked by the eligible spouse.
4 (f) Within a reasonable period of time preceding the
5 date a participant's annuity commences, a participant shall
6 be supplied with a written explanation of (1) the terms and
7 conditions of the 50% joint and survivor annuity, (2) the
8 participant's right, if any, to elect a single-life annuity
9 or an optional form of payment under subsection (k) in lieu
10 of the 50% joint and survivor annuity and subject, in certain
11 cases, to his or her eligible spouse's consent, and (3) the
12 participant's right to reinstate coverage under the 50% joint
13 and survivor annuity prior to his or her annuity commencement
14 date by revoking an election of a single-life annuity or an
15 optional form of benefit under subsection (k).
16 (g) If a participant does not have an eligible spouse
17 on the date his or her annuity payments commence, the
18 participant shall receive a single-life annuity, subject to
19 his or her right, if any, to elect an optional form of
20 benefit. The last payment of the single-life annuity shall be
21 made as of the first day of the month in which the death of
22 the participant occurs.
23 (h) A participant with at least 5 years of service whose
24 employment has not terminated shall be covered by the 50%
25 joint and survivor annuity provisions so that if he or she
26 dies prior to termination of employment, his or her eligible
27 spouse will be entitled to receive an annuity. The annuity
28 payable under this subsection (h) to the eligible spouse
29 shall be actuarially equivalent to the amount that would be
30 payable as a survivor annuity under subsection (b) if (1) in
31 the case of a participant who dies after the date on which
32 the participant attained the earliest retirement age, the
33 participant had retired with an immediate qualified joint and
34 survivor annuity on the day before the participant's date of
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1 death; or (2) in the case of a participant who dies on or
2 before the date on which the participant would have attained
3 the earliest retirement age, the participant had separated
4 from service on the date of death, survived to the earliest
5 retirement age, retired with an immediate qualified joint and
6 survivor annuity at the earliest retirement age, and died on
7 the day after the day on which the participant would have
8 attained the earliest retirement age.
9 The annuity payable to an eligible spouse of a
10 participant shall commence as of the beginning of the month
11 next following the later of the date of death or the date the
12 participant would have met the eligibility requirements for
13 an annuity and shall continue through the beginning of the
14 month in which the death of the eligible spouse occurs.
15 No benefit shall be payable under this subsection (h) for
16 death during employment after the participant has satisfied
17 the requirements for retirement if an option is effective
18 under subsection (k).
19 (i) A participant who (1) has terminated employment with
20 at least 5 years of service, (2) has not begun receiving
21 annuity payments, (3) has not taken a refund under Section
22 15-154(a-2), and (4) has not elected an effective option
23 under subsection (k), shall be covered by the 50% joint and
24 survivor annuity provisions of subsection (b) until the date
25 his or her annuity payments commence. If the participant
26 dies before the date his or her annuity payments commence,
27 the participant's surviving eligible spouse shall receive an
28 annuity computed in accordance with the applicable provisions
29 of this Section as if the participant's annuity payments had
30 commenced on the first day of the month coincident with or
31 next following the later of his or her date of death or the
32 date the participant would have been eligible for a
33 retirement annuity based on service prior to his or her
34 death. The annuity payable to such an eligible spouse shall
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1 commence on the first day of the month coincident with or
2 next following the later of the participant's date of death
3 or the date the participant would have been eligible for a
4 retirement annuity based on service prior to his death and
5 shall continue through the beginning of the month in which
6 the death of the eligible spouse occurs.
7 (j) The provisions of subsection (i) shall not affect
8 the right of a participant to elect a single-life annuity,
9 pursuant to the provisions of subsection (b).
10 (k) By filing a timely election with the system, a
11 participant who will be eligible to receive a retirement
12 annuity under this Section may designate his or her spouse or
13 any person approved by the system as his or her contingent
14 annuitant and elect to receive an annuity payable in
15 accordance with one of the following options, instead of the
16 annuity to which he or she may otherwise become entitled:
17 Option 1: The participant shall receive a reduced
18 annuity payable for life, and payments in the amount of
19 100% of such reduced amount shall, after the
20 participant's death, be continued to the contingent
21 annuitant during the latter's lifetime.
22 Option 2: The participant shall receive a reduced
23 annuity payable for life, and payments in the amount of
24 75% of such reduced annuity shall, after the
25 participant's death, be continued to the contingent
26 annuitant during the latter's lifetime.
27 Option 3: The participant shall receive a reduced
28 annuity payable for life, and payments in the amount of
29 50% of such reduced annuity shall, after the
30 participant's death, be continued to the contingent
31 annuitant during the latter's lifetime.
32 The aggregate of the annuity payments expected to be paid
33 to a participant and his contingent annuitant under any of
34 the above options shall be the actuarial equivalent of the
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1 annuity that the participant is otherwise entitled to receive
2 upon retirement.
3 Under no circumstances may an option be elected, changed,
4 or revoked after the date the participant's annuity
5 commences. An option in favor of a contingent annuitant who
6 is not the participant's eligible spouse may be revoked at
7 any time prior to the date the participant's annuity payments
8 commence. If the contingent annuitant under the elected
9 option is not the participant's eligible spouse, then the
10 election is valid only if the eligible spouse consents to the
11 participant's optional election and to the specific
12 contingent annuitant within the 90-day period preceding the
13 date the participant's annuity commences.
14 An election made pursuant to this subsection (k) shall
15 become inoperative if the participant's employment terminates
16 before he or she is eligible for a retirement annuity, or if
17 the participant or the contingent annuitant dies before the
18 date the participant's annuity payments commence, or if the
19 eligible spouse's consent is required and not given. An
20 effective option under this subsection (k) takes the place of
21 any benefit otherwise payable under this Section, and the
22 form made available by the system for election of the option
23 shall so specify.
24 (1) Within the appropriate applicable period under
25 Section 417 of the Internal Revenue Code of 1986, as amended
26 from time to time, a participant shall be supplied with a
27 written explanation of (1) the terms and conditions of the
28 preretirement survivor annuity under subsections (h) and (i),
29 (2) the participant's right, if any, to elect a single-life
30 annuity or an optional form of payment under subsection (k)
31 in lieu of the preretirement survivor annuity and subject, in
32 certain cases, to his or her eligible spouse's consent, and
33 (3) the participant's right to reinstate coverage under the
34 preretirement survivor annuity by revoking an election of a
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1 single-life annuity or an optional form of benefit under
2 subsection (k).
3 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
4 Sec. 15-141. Death benefits - Death of participant. The
5 beneficiary of a participant is entitled to a death benefit
6 equal to the sum of (1) the employee's accumulated normal and
7 additional contributions on the date of death, (2) the
8 employee's accumulated survivors insurance contributions on
9 the date of death, if a survivors insurance benefit is not
10 payable, (3) an amount equal to the employee's final rate of
11 earnings, but not more than $5,000 if (i) the beneficiary,
12 under rules of the board, was dependent upon the participant,
13 (ii) the participant was a participating employee immediately
14 prior to his or her death, and (iii) a survivors insurance
15 benefit is not payable, and (4) $2,500 if (i) the beneficiary
16 was not dependent upon the participant, (ii) the participant
17 was a participating employee immediately prior to his or her
18 death, and (iii) a survivors insurance benefit is not
19 payable.
20 However, if the participant has elected to participate in
21 the portable retirement benefit program by making the
22 election specified in Section 15-154(a-1), the death benefit
23 shall be calculated as follows. The death benefit shall be
24 equal to the employee's accumulated normal and additional
25 contributions on the date of death, or if the employee died
26 with 5 or more years of service for employment as defined in
27 Section 15-113.1, his or her beneficiary shall also be
28 entitled to employer contributions in an amount equal to the
29 sum of accumulated normal and additional contributions;
30 except that if a benefit to a surviving spouse is payable
31 under Section 15-136.4, the death benefit payable under this
32 paragraph shall be reduced, but to not less than zero, by the
33 actuarial value of the benefit payable to the surviving
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1 spouse.
2 If payments are made under any State or Federal Workers'
3 Compensation or Occupational Diseases Law because of the
4 death of an employee, the portion of the death benefit
5 payable from employer contributions shall be reduced by the
6 total amount of the payments.
7 (Source: P.A. 87-8.)
8 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
9 Sec. 15-142. Death benefits - Death of annuitant. Upon
10 the death of an annuitant receiving a retirement annuity or
11 disability retirement annuity, the annuitant's beneficiary
12 shall, if a survivor's insurance benefit is not payable under
13 Section 15-145 or an annuity is not payable under Section
14 15-136.4, be entitled to a death benefit equal to the greater
15 of the following: (1) the excess, if any, of the sum of the
16 accumulated normal, survivors insurance and additional
17 contributions as of the date of retirement, or the date the
18 disability retirement annuity began, whichever is earlier,
19 over the sum of all annuity payments made prior to the date
20 of death, or (2) $1,000.
21 (Source: P.A. 83-1440.)
22 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
23 Sec. 15-146. Survivors insurance benefits - Minimum
24 amounts.
25 (a) The minimum total survivors annuity payable on
26 account of the death of a participant shall be 50% of the
27 retirement annuity which would have been provided under Rule
28 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
29 attainment of the minimum age at which the penalty for early
30 retirement would not be applicable or the date of the
31 participant's death, whichever is later, on the basis of
32 credits earned prior to the time of death.
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1 (b) The minimum total survivors annuity payable on
2 account of the death of an annuitant shall be 50% of the
3 retirement annuity which is payable under Section 15-136 at
4 the time of death or 50% of the disability retirement annuity
5 payable under Section 15-153.2. This minimum survivors
6 annuity shall apply to each participant and annuitant who
7 dies after September 16, 1979, whether or not his or her
8 employee status terminates before or after that date.
9 (c) If an annuitant has elected a reversionary annuity,
10 the retirement annuity referred to in this Section is that
11 which would have been payable had such election not been
12 filed.
13 (d) If a participant has made the election provided for
14 under Section 15-154(a-1), the minimum survivor benefit shall
15 be determined under Section 15-136.4.
16 (Source: P.A. 83-1362; 83-1440.)
17 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
18 Sec. 15-154. Refunds.
19 (a) A participant whose status as an employee is
20 terminated, regardless of cause, or who has been on lay off
21 status for more than 120 days, and who is not on leave of
22 absence, is entitled to a refund of contributions upon
23 application; except that not more than one such refund
24 application may be made during any academic year.
25 Except as set forth in subsections (a-1) and (a-2), the
26 refund shall be the sum of the accumulated normal, additional
27 and survivors insurance contributions, less the amount of
28 interest credited on these contributions each year in excess
29 of 4 1/2% of the amount on which interest was calculated.
30 (a-1) Every person who becomes a participating employee
31 after the date on which his or her employer first offers an
32 optional retirement program under Section 15-158.2 may elect
33 within 60 days of becoming a participant to have any refund
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1 calculated pursuant to subsection (a-2) by forgoing all
2 survivors insurance benefits to which the person's survivors
3 would otherwise be entitled under this Article. This
4 election is irrevocable and may be made by filing an election
5 with the system on such form as the Executive Director shall
6 prescribe.
7 Each person who is a participating employee on the date
8 which his or her employer first offers an optional retirement
9 program under Section 15-158.2 shall have a one-time option
10 to elect to have his or her refund calculated pursuant to
11 subsection (a-2), by forgoing all survivors insurance
12 benefits to which the person's survivors would otherwise be
13 entitled under this Article. The election will not be
14 effective until one year after the election is filed with the
15 system. This election is irrevocable and may be made by
16 filing an election with the system, on such form as the
17 Executive Director shall prescribe, within one year after the
18 date on which his or her employer first offers an optional
19 retirement program under Section 15-158.2.
20 A person may make the one-time irrevocable election
21 authorized under this Section or the election authorized
22 under Section 15-158.2(g), but may not make both elections.
23 Any person interested in electing the portable retirement
24 benefit program provided under this Section and Section
25 15-136.4 must be given a consultation with the State
26 Universities Retirement System before making that election.
27 (a-2) The refund elected under subsection (a-1) shall be
28 the sum of the participant's accumulated normal and
29 additional contributions, as defined in Sections 15-116 and
30 15-117. If the participant terminates with 5 or more years
31 of service for employment as defined in Section 15-113.1, he
32 or she shall also be entitled to a refund of employer
33 contributions in an amount equal to the sum of the
34 accumulated normal and additional contributions, as defined
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1 in Sections 15-116 and 15-117.
2 (b) Upon acceptance of a refund, the participant
3 forfeits all accrued rights and credits in the System, and if
4 subsequently reemployed, the participant shall be considered
5 a new employee subject to all the qualifying conditions for
6 participation and eligibility for benefits applicable to new
7 employees. If such person again becomes a participating
8 employee and continues as such for 2 years, or is employed by
9 an employer and participates for at least 2 years in the
10 Federal Civil Service Retirement System, all such rights,
11 credits, and previous status as a participant shall be
12 restored upon repayment of the amount of the refund, together
13 with compound interest thereon from the date the refund was
14 received to the date of repayment at the rate of 6% per annum
15 through August 31, 1982, and at the effective rates after
16 that date.
17 (c) If a participant has made survivors insurance
18 contributions, but has no survivors insurance beneficiary
19 upon retirement, he or she shall be entitled to a refund of
20 the accumulated survivors insurance contributions, or to an
21 additional annuity the value of which is equal to the
22 accumulated survivors insurance contributions.
23 (d) A participant, upon application, is entitled to a
24 refund of his or her accumulated additional contributions
25 except those covering the cost of the annual increase in the
26 retirement annuity provided under Section 15-136. Upon the
27 acceptance of such a refund of accumulated additional
28 contributions, the participant forfeits all rights and
29 credits which may have accrued because of such contributions.
30 (e) A participant who terminates his or her employee
31 status and elects to waive service credit under Section
32 15-154.2, is entitled to a refund of the accumulated normal,
33 additional and survivors insurance contributions, if any,
34 which were credited the participant for this service, or to
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1 an additional annuity the value of which is equal to the
2 accumulated normal, additional and survivors insurance
3 contributions, if any; except that not more than one such
4 refund application may be made during any academic year. Upon
5 acceptance of this refund, the participant forfeits all
6 rights and credits accrued because of this service.
7 (f) If a police officer or firefighter receives a
8 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
9 he or she shall be entitled at retirement to a refund of the
10 difference between his or her accumulated normal
11 contributions and the normal contributions which would have
12 accumulated had such person filed a waiver of the retirement
13 formula provided by Rule 4 of Section 15-136.
14 (g) If, at the time of retirement, a participant would
15 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
16 of Section 15-136 that exceeds the maximum specified in
17 clause (1) of subsection (c) of Section 15-136, he or she
18 shall be entitled to a refund of the employee contributions,
19 if any, paid under Section 15-157 after the date upon which
20 continuance of such contributions would have otherwise caused
21 the retirement annuity to exceed this maximum, plus compound
22 interest at the effective rates.
23 (Source: P.A. 87-8; 87-794; 87-895; 87-1265; 88-45.)
24 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
25 Sec. 15-157. Employee Contributions.
26 (a) Each participating employee shall make contributions
27 towards the retirement annuity of each payment of earnings
28 applicable to employment under this system on and after the
29 date of becoming a participant as follows: Prior to
30 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
31 to August 31, 1955, 5%; from September 1, 1955 to August 31,
32 1969, 6%; from September 1, 1969, 6 1/2%. These
33 contributions are to be considered as normal contributions
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1 for purposes of this Article.
2 Each participant who is a police officer or firefighter
3 shall make normal contributions of 8% of each payment of
4 earnings applicable to employment as a police officer or
5 firefighter under this system on or after September 1, 1981,
6 unless he or she files with the board within 60 days after
7 the effective date of this amendatory Act of 1991 or 60 days
8 after the board receives notice that he or she is employed as
9 a police officer or firefighter, whichever is later, a
10 written notice waiving the retirement formula provided by
11 Rule 4 of Section 15-136. This waiver shall be irrevocable.
12 If a participant had met the conditions set forth in Section
13 15-132.1 prior to the effective date of this amendatory Act
14 of 1991 but failed to make the additional normal
15 contributions required by this paragraph, he or she may elect
16 to pay the additional contributions plus compound interest at
17 the effective rate. If such payment is received by the
18 board, the service shall be considered as police officer
19 service in calculating the retirement annuity under Rule 4 of
20 Section 15-136.
21 (b) Starting September 1, 1969, each participating
22 employee shall make additional contributions of 1/2 of 1% of
23 earnings to finance a portion of the cost of the annual
24 increases in retirement annuity provided under Section
25 15-136.
26 (c) Each participating employee shall make additional
27 survivors insurance contributions of 1% of earnings
28 applicable under this system on and after August 1, 1959.
29 The contribution made under this subsection shall be used to
30 finance survivors insurance benefits, unless the participant
31 has made an election under Section 15-154(a-1), in which case
32 the contribution made under this subsection shall be used to
33 finance the benefits obtained under that election.
34 Contributions in excess of $80 during any fiscal year
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1 beginning August 31, 1969 and in excess of $120 during any
2 fiscal year thereafter until September 1, 1971 shall be
3 considered as additional contributions for purposes of this
4 Article.
5 (d) If the board by board rule so permits and subject to
6 such conditions and limitations as may be specified in its
7 rules, a participant may make other additional contributions
8 of such percentage of earnings or amounts as the participant
9 shall elect in a written notice thereof received by the
10 board.
11 (e) That fraction of a participant's total accumulated
12 normal contributions, the numerator of which is equal to the
13 number of years of service in excess of that which is
14 required to qualify for the maximum retirement annuity, and
15 the denominator of which is equal to the total service of the
16 participant, shall be considered as accumulated additional
17 contributions. The determination of the applicable maximum
18 annuity and the adjustment in contributions required by this
19 provision shall be made as of the date of the participant's
20 retirement.
21 (f) Notwithstanding the foregoing, a participating
22 employee shall not be required to make contributions under
23 this Section after the date upon which continuance of such
24 contributions would otherwise cause his or her retirement
25 annuity to exceed the maximum retirement annuity as specified
26 in clause (1) of subsection (c) of Section 15-136.
27 (Source: P.A. 86-272; 86-1488.)
28 (40 ILCS 5/15-158.2)
29 Sec. 15-158.2. Optional retirement program for
30 educational employees.
31 (a) Purpose. The General Assembly finds that it is
32 important for colleges and universities to be able to attract
33 and retain the most qualified employees and that in order to
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1 attract and retain these employees, colleges and universities
2 should have the flexibility to provide an alternative
3 retirement program for eligible employees persons who elect
4 not to participate in the other retirement programs plan of
5 contributions and benefits otherwise provided under this
6 Article.
7 (b) Definitions. For the purposes of this Section,
8 "eligible employee person" means an employee who is eligible
9 to participate in the State Universities University
10 Retirement System without respect to Section 15-107(a)(9) and
11 who does not have sufficient age and service to qualify for a
12 retirement annuity under Section 15-135. A "currently
13 eligible employee person" is an employee a person who becomes
14 an eligible employee person on the effective date of the
15 optional retirement program established by the employee's
16 person's employer. A "newly eligible employee person" is an
17 employee a person who becomes an eligible employee person
18 after the effective date of the optional retirement program
19 established by the employee's person's employer.
20 (c) Program. Each employer subject to this Article may
21 elect to establish an optional retirement program under this
22 Section for the eligible employees whom persons that it
23 employs. The optional retirement program shall provide
24 retirement benefits for participating employees persons
25 through the purchase of annuity contracts, either fixed or
26 variable or a combination thereof, through the purchase of
27 mutual funds, or through both and shall may also provide for
28 death and disability benefits.
29 The State Universities Retirement System shall be the
30 plan sponsor for the program. Consistent with its fiduciary
31 duty to the participants and beneficiaries of the program,
32 the Board of Trustees of the System may delegate aspects of
33 program administration as it sees fit to The program may
34 provide for administration of the program by companies
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1 authorized to do business in this State, to or the employers,
2 employer or to a combination of both, but shall not require
3 any action by the State Universities Retirement System or its
4 Board of Trustees. Two or more employers may agree to
5 establish a joint program under this Section.
6 The plan program must be qualified under the Internal
7 Revenue Code of 1986.
8 (d) Proposals. The System, in consultation with the
9 employers, An employer under this Section shall solicit
10 proposals to participate in the program from insurance and
11 annuity companies and mutual fund companies authorized to do
12 conduct such business in this State. In reviewing the
13 proposals received and approving and contracting with no
14 fewer than 2 and no more than 7 companies, at least 2 of
15 which must be insurance and annuity companies, the Board of
16 Trustees of the System deciding to implement a program, the
17 employer shall consider, among other things, the following
18 criteria:
19 (1) the nature and extent of the benefits that
20 would be provided to the participants;
21 (2) the reasonableness of the benefits in relation
22 to the premium charged;
23 (3) the suitability of the benefits to the needs
24 and interests of the participating employees persons and
25 the employer;
26 (4) the ability of the company to provide benefits
27 under the contract and the financial stability of the
28 company; and
29 (5) the efficacy of the contract in the recruitment
30 and retention of employees.
31 An employer that elects to offer an optional retirement
32 program under subsection (c) may only select for
33 participation in the program 2 or more of the companies
34 approved by the Board of Trustees of the System. The System,
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1 in consultation with the employers, shall periodically review
2 each approved company; a company may continue to participate
3 in the program only so long as it continues to be an approved
4 company under contract with the Board.
5 (e) System Conflict of Interest. In order to preclude
6 any conflict of interest by the System, only insurance and
7 annuity companies and mutual fund companies that are
8 authorized to do business in this State may be approved, in
9 accordance with the procedures of subsection (d), to
10 participate in this program and offer investment options for
11 program participants.
12 (f) Account Balance Transfers. Employees who are
13 participating in the program must be allowed to transfer
14 their account balances from the investment options offered by
15 one of the companies selected by the employer to the
16 investment options offered by another company so selected,
17 subject to applicable contractual provisions.
18 (g) (e) Participation. Any eligible employee person
19 employed by an employer may elect to participate in the
20 optional retirement program offered by the employer under
21 subsection (c) that employer's optional retirement program.
22 The election must be made in writing and in the manner
23 prescribed by the System employer. A currently eligible
24 employee person must make take this election within one year
25 after the effective date of the employer's optional
26 retirement program. A newly eligible employee person must
27 make take this election within 60 days after becoming an
28 eligible employee person. A person may make the one-time
29 irrevocable election authorized under this Section or the
30 election authorized under Section 15-154(a-1), but may not
31 make both elections. The employer shall not remit
32 contributions on behalf of a newly eligible employee to
33 either the optional retirement program or to the State
34 Universities Retirement System until the 60-day period has
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1 run unless an election by the employee has been made earlier.
2 Any eligible employee person interested in electing the
3 optional retirement program provided under this Section must
4 be given a consultation with the State Universities
5 Retirement System before making that an election.
6 Participation in the optional retirement program shall
7 begin on the first day of the first pay period following the
8 date of election, but no earlier than January 1, 1998 July 1,
9 1996. The employee's person's participation in any other
10 retirement program administered by the System under this
11 Article the System, if any, with respect to the qualifying
12 employment shall terminate on the date that participation in
13 the optional retirement program begins, and the employee
14 person shall thereby be deemed to have elected to receive a
15 refund of contributions as provided in Section 15-154, except
16 that such deemed refund shall include interest at the
17 effective rate for the respective years, and except that any
18 funds which would have been received shall instead be
19 transferred directly to the optional retirement program as a
20 tax free transfer in accordance with Internal Revenue Service
21 guidelines.
22 Notwithstanding any other provision of this Code, an
23 employee a person may not purchase or receive service or
24 service credit applicable to any other retirement program
25 administered by the System under this Article in this System
26 for any period during which the employee was a participant
27 person was not a participant in the System due to an election
28 to participate in the an optional retirement program
29 established under this Section.
30 An employee A person who has elected to participate in
31 the an optional retirement program under this Section must
32 continue participation while employed in an eligible
33 position, and may not participate in any other retirement
34 program administered by the System under this Article return
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1 to participation in this System while employed by that
2 employer, unless the optional retirement program is
3 terminated in accordance with subsection (i) (g).
4 Participation in the optional retirement program under
5 this Section shall constitute membership in the State
6 Universities Retirement System, although a participant under
7 this Section shall not be entitled to receive any benefits
8 under any other provisions of Article 15 or of Article 20.
9 An employee who receives a disability benefit or a retirement
10 benefit under this Section or an employee who receives a lump
11 sum distribution from a mutual fund company under this
12 Section and uses the lump sum to purchase an annuity shall be
13 considered an employee or an annuitant under Article 15 for
14 purposes of the State Employees Group Insurance Act of 1971.
15 Participation in the optional retirement program under this
16 Section creates a contractual relationship with respect to
17 the investment of the employee's account balance between the
18 employee and the company providing the investment options for
19 the employee's account balance. Participation does not
20 create a contractual relationship between the employee and
21 the System or between the employee and his or her employer.
22 Participation in an optional retirement program
23 established under this Section does not constitute membership
24 or participation in the State Universities Retirement System
25 or any other pension fund or retirement system of the State.
26 Participation in an optional retirement program established
27 under this Section creates a contractual relationship only
28 between the person and the company providing the optional
29 retirement program, and not between the person and the System
30 or the person's employer.
31 (h) (f) Contributions. The contribution rate for
32 employees persons participating in the an optional retirement
33 program under this Section shall be equal to the employee
34 contribution rate for other participants in the System. This
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1 required contribution may be made as an "employer pick-up"
2 under Section 414(h) of the Internal Revenue Code of 1986 or
3 any successor Section. Any employee person participating in
4 the System or who elects to participate in the optional
5 retirement program shall continue to have the employer
6 "pick-up" the contribution. However, amounts picked up after
7 the election of the optional retirement program shall be
8 remitted to the optional retirement plan. In no event shall
9 an employee have an option of receiving these amounts in
10 cash. The program shall provide for employer contributions
11 at a rate of no more than 7.6% of the participating
12 employee's person's salary. The An optional retirement
13 program shall be funded by contributions from employees
14 persons participating in the program and employer
15 contributions as required by the plan. The plan shall be
16 funded in a manner consistent with the requirements of the
17 Internal Revenue Code Section 412, and regulations
18 promulgated thereunder, and Proposed Regulation 412(b)-1(a)
19 as that Section applies those Sections apply to money
20 purchase plans.
21 The State of Illinois shall make contributions by
22 appropriations to the System of the employer contributions
23 required for employees who participate in the optional
24 retirement program under this Section. The amount required
25 shall be certified by the Board of Trustees of the System and
26 paid by the State in accordance with Section 15-165. The
27 System shall not be obligated to remit the required employer
28 contributions to any insurance and annuity and mutual fund
29 companies participating in the optional retirement program
30 under subsection (d) until it has received the required
31 employer contributions from the State. In the event of a
32 deficiency in the amount of State contributions, the System
33 shall implement those procedures described in subsection (c)
34 of Section 15-165 to obtain the required funding from the
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1 General Revenue Fund.
2 The contributions and interest thereon, and any benefits
3 based upon them, shall be treated as provided in the funding
4 vehicles for this plan. An amount of up to 1% of each
5 participating employee's participant's salary shall may be
6 taken from the employer contribution to the optional
7 retirement program and shall may be contributed, on the
8 employee's participant's behalf, to a plan which the System
9 offers employer sets up to provide for life or disability
10 benefits.
11 (i) (g) Termination. An optional retirement program
12 authorized established under this Section may be terminated
13 by the employer, subject to the terms of any relevant
14 contracts, and the employer shall have no obligation to
15 reestablish an optional retirement renew any contract or
16 program established under this Section. This Section does
17 not create a right to continued continue participation in any
18 optional retirement program set up by an employer established
19 under this Section. If an optional retirement program is
20 terminated, the participants shall have the right to
21 participate in one of the other retirement programs offered
22 by the System and receive service credit in such other
23 retirement program for any years of employment following the
24 termination.
25 (j) (h) Vesting. Employer contributions shall be vested
26 after five years of employment. If an employee a participant
27 terminates employment prior to completing five years of
28 service, the employee participant shall be entitled to a
29 benefit in accordance with the terms of the employer's
30 retirement plan which is based on the accumulation value
31 attributable to the employee's participant's contributions
32 and any investment return experience thereon. Benefits for
33 employees participants who terminate with at least five years
34 of service shall be in accordance with the terms of the
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1 optional employer's retirement plan and based on the
2 accumulation value attributable to both the employer and the
3 employee's participant's contributions and any investment
4 return experience thereon. Any employer contributions which
5 are forfeited shall be held in escrow by the funding company
6 investing those contributions and shall be used to reduce the
7 next premium payment due from the employer.
8 (Source: P.A. 89-430, eff. 12-15-95.)
9 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
10 Sec. 15-165. To certify amounts and submit vouchers.
11 (a) The Board shall certify to the Governor on or before
12 November 15 of each year the appropriation required from
13 State funds for the purposes of this System for the following
14 fiscal year. The certification shall include a copy of the
15 actuarial recommendations upon which it is based.
16 (b) The Board shall certify to the State Comptroller or
17 employer, as the case may be, from time to time, by its
18 president and secretary, with its seal attached, the amounts
19 payable to the System from the various funds.
20 (c) Beginning in State fiscal year 1996, on or as soon
21 as possible after the 15th day of each month the Board shall
22 submit vouchers for payment of State contributions to the
23 System, in a total monthly amount of one-twelfth of the
24 required annual State contribution certified under subsection
25 (a). These vouchers shall be paid by the State Comptroller
26 and Treasurer by warrants drawn on the funds appropriated to
27 the System for that fiscal year.
28 If in any month the amount remaining unexpended from all
29 other appropriations to the System for the applicable fiscal
30 year (including the appropriations to the System under
31 Section 8.12 of the State Finance Act and Section 1 of the
32 State Pension Funds Continuing Appropriation Act) is less
33 than the amount lawfully vouchered under this Section, the
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1 difference shall be paid from the General Revenue Fund under
2 the continuing appropriation authority provided in Section
3 1.1 of the State Pension Funds Continuing Appropriation Act.
4 (d) So long as the payments received are the full amount
5 lawfully vouchered under this Section, payments received by
6 the System under this Section shall be applied first toward
7 the employer contribution to the optional retirement program
8 established under Section 15-158.2. Payments shall be
9 applied second toward the employer's portion of the normal
10 costs of the System, as defined in subsection (f) of Section
11 15-155. The balance shall be applied toward the unfunded
12 actuarial liabilities of the System.
13 (e) In the event that the System does not receive, as a
14 result of legislative enactment or otherwise, payments
15 sufficient to fully fund the employer contribution to the
16 optional retirement program established under Section
17 15-158.2 and to fully fund that portion of the employer's
18 portion of the normal costs of the System, as calculated in
19 accordance with Section 15-155(a-1), then any payments
20 received shall be applied proportionately to the optional
21 retirement program established under Section 15-158.2 and to
22 the employer's portion of the normal costs of the System, as
23 calculated in accordance with Section 15-155(a-1).
24 (Source: P.A. 88-593, eff. 8-22-94.)
25 Section 15. The State Pension Funds Continuing
26 Appropriation Act is amended by changing Section 1.1 as
27 follows:
28 (40 ILCS 15/1.1)
29 Sec. 1.1. Appropriations to certain retirement systems.
30 (a) There is hereby appropriated from the General
31 Revenue Fund to the General Assembly Retirement System, on a
32 continuing monthly basis, the amount, if any, by which the
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1 total available amount of all other appropriations to that
2 retirement system for the payment of State contributions is
3 less than the total amount of the vouchers for required State
4 contributions lawfully submitted by the retirement system for
5 that month under Section 2-134 of the Illinois Pension Code.
6 (b) There is hereby appropriated from the General
7 Revenue Fund to the State Universities Retirement System, on
8 a continuing monthly basis, the amount, if any, by which the
9 total available amount of all other appropriations to that
10 retirement system for the payment of State contributions,
11 including any deficiency in the required contributions of the
12 optional retirement program established under Section
13 15-158.2 of the Illinois Pension Code, is less than the total
14 amount of the vouchers for required State contributions
15 lawfully submitted by the retirement system for that month
16 under Section 15-165 of the Illinois Pension Code.
17 (c) There is hereby appropriated from the Common School
18 Fund to the Teachers' Retirement System of the State of
19 Illinois, on a continuing monthly basis, the amount, if any,
20 by which the total available amount of all other
21 appropriations to that retirement system for the payment of
22 State contributions is less than the total amount of the
23 vouchers for required State contributions lawfully submitted
24 by the retirement system for that month under Section 16-158
25 of the Illinois Pension Code.
26 (d) There is hereby appropriated from the General
27 Revenue Fund to the Judges Retirement System of Illinois, on
28 a continuing monthly basis, the amount, if any, by which the
29 total available amount of all other appropriations to that
30 retirement system for the payment of State contributions is
31 less than the total amount of the vouchers for required State
32 contributions lawfully submitted by the retirement system for
33 that month under Section 18-140 of the Illinois Pension Code.
34 (e) The continuing appropriations provided by this
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1 Section shall first be available in State fiscal year 1996.
2 (Source: P.A. 88-593, eff. 8-22-94.)
3 Section 95. No acceleration or delay. Where this Act
4 makes changes in a statute that is represented in this Act by
5 text that is not yet or no longer in effect (for example, a
6 Section represented by multiple versions), the use of that
7 text does not accelerate or delay the taking effect of (i)
8 the changes made by this Act or (ii) provisions derived from
9 any other Public Act.
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.