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90_HB1641ccr001
LRB9001767EGfgccr6
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 1641
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendment No. 3 to House Bill 1641, recommend the following:
11 (1) that the House of Representatives concur in Senate
12 Amendment No. 3; and
13 (2) that House Bill 1641, AS AMENDED, be further amended
14 as follows:
15 by replacing the title with the following:
16 "AN ACT in relation to public employees, amending named
17 Acts."; and
18 by inserting immediately below the enacting clause the
19 following:
20 "Section 1. The State Employees Group Insurance Act of
21 1971 is amended by changing Section 3 as follows:
22 (5 ILCS 375/3) (from Ch. 127, par. 523)
23 (Text of Section before amendment by P.A. 89-507)
24 Sec. 3. Definitions. Unless the context otherwise
25 requires, the following words and phrases as used in this Act
26 shall have the following meanings. The Department may define
27 these and other words and phrases separately for the purpose
28 of implementing specific programs providing benefits under
29 this Act.
30 (a) "Administrative service organization" means any
31 person, firm or corporation experienced in the handling of
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1 claims which is fully qualified, financially sound and
2 capable of meeting the service requirements of a contract of
3 administration executed with the Department.
4 (b) "Annuitant" means (1) an employee who retires, or
5 has retired, on or after January 1, 1966 on an immediate
6 annuity under the provisions of Articles 2, 14, 15 (including
7 an employee who has retired and is receiving a retirement
8 annuity under an optional program established under Section
9 15-158.2 and who would also be eligible for a retirement
10 annuity had that person been a participant in the State
11 University Retirement System), paragraphs (b) or (c) of
12 Section 16-106, or Article 18 of the Illinois Pension Code;
13 (2) any person who was receiving group insurance coverage
14 under this Act as of March 31, 1978 by reason of his status
15 as an annuitant, even though the annuity in relation to which
16 such coverage was provided is a proportional annuity based on
17 less than the minimum period of service required for a
18 retirement annuity in the system involved; (3) any person not
19 otherwise covered by this Act who has retired as a
20 participating member under Article 2 of the Illinois Pension
21 Code but is ineligible for the retirement annuity under
22 Section 2-119 of the Illinois Pension Code; (4) the spouse of
23 any person who is receiving a retirement annuity under
24 Article 18 of the Illinois Pension Code and who is covered
25 under a group health insurance program sponsored by a
26 governmental employer other than the State of Illinois and
27 who has irrevocably elected to waive his or her coverage
28 under this Act and to have his or her spouse considered as
29 the "annuitant" under this Act and not as a "dependent"; or
30 (5) an employee who retires, or has retired, from a qualified
31 position, as determined according to rules promulgated by the
32 Director, under a qualified local government or a qualified
33 rehabilitation facility or a qualified domestic violence
34 shelter or service. (For definition of "retired employee",
35 see (p) post).
-3- LRB9001767EGfgccr6
1 (c) "Carrier" means (1) an insurance company, a
2 corporation organized under the Limited Health Service
3 Organization Act or the Voluntary Health Services Plan Act, a
4 partnership, or other nongovernmental organization, which is
5 authorized to do group life or group health insurance
6 business in Illinois, or (2) the State of Illinois as a
7 self-insurer.
8 (d) "Compensation" means salary or wages payable on a
9 regular payroll by the State Treasurer on a warrant of the
10 State Comptroller out of any State, trust or federal fund, or
11 by the Governor of the State through a disbursing officer of
12 the State out of a trust or out of federal funds, or by any
13 Department out of State, trust, federal or other funds held
14 by the State Treasurer or the Department, to any person for
15 personal services currently performed, and ordinary or
16 accidental disability benefits under Articles 2, 14, 15
17 (including ordinary or accidental disability benefits under
18 an optional program established under Section 15-158.2),
19 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
20 Illinois Pension Code, for disability incurred after January
21 1, 1966, or benefits payable under the Workers' Compensation
22 or Occupational Diseases Act or benefits payable under a sick
23 pay plan established in accordance with Section 36 of the
24 State Finance Act. "Compensation" also means salary or wages
25 paid to an employee of any qualified local government or
26 qualified rehabilitation facility or a qualified domestic
27 violence shelter or service.
28 (e) "Commission" means the State Employees Group
29 Insurance Advisory Commission authorized by this Act.
30 Commencing July 1, 1984, "Commission" as used in this Act
31 means the Illinois Economic and Fiscal Commission as
32 established by the Legislative Commission Reorganization Act
33 of 1984.
34 (f) "Contributory", when referred to as contributory
35 coverage, shall mean optional coverages or benefits elected
-4- LRB9001767EGfgccr6
1 by the member toward the cost of which such member makes
2 contribution, or which are funded in whole or in part through
3 the acceptance of a reduction in earnings or the foregoing of
4 an increase in earnings by an employee, as distinguished from
5 noncontributory coverage or benefits which are paid entirely
6 by the State of Illinois without reduction of the member's
7 salary.
8 (g) "Department" means any department, institution,
9 board, commission, officer, court or any agency of the State
10 government receiving appropriations and having power to
11 certify payrolls to the Comptroller authorizing payments of
12 salary and wages against such appropriations as are made by
13 the General Assembly from any State fund, or against trust
14 funds held by the State Treasurer and includes boards of
15 trustees of the retirement systems created by Articles 2, 14,
16 15, 16 and 18 of the Illinois Pension Code. "Department"
17 also includes the Illinois Comprehensive Health Insurance
18 Board, the Board of Examiners established under the Illinois
19 Public Accounting Act, and the Illinois Rural Bond Bank.
20 (h) "Dependent", when the term is used in the context of
21 the health and life plan, means a member's spouse and any
22 unmarried child (1) from birth to age 19 including an adopted
23 child, a child who lives with the member from the time of the
24 filing of a petition for adoption until entry of an order of
25 adoption, a stepchild or recognized child who lives with the
26 member in a parent-child relationship, or a child who lives
27 with the member if such member is a court appointed guardian
28 of the child, or (2) age 19 to 23 enrolled as a full-time
29 student in any accredited school, financially dependent upon
30 the member, and eligible as a dependent for Illinois State
31 income tax purposes, or (3) age 19 or over who is mentally or
32 physically handicapped as defined in the Illinois Insurance
33 Code. For the health plan only, the term "dependent" also
34 includes any person enrolled prior to the effective date of
35 this Section who is dependent upon the member to the extent
-5- LRB9001767EGfgccr6
1 that the member may claim such person as a dependent for
2 Illinois State income tax deduction purposes; no other such
3 person may be enrolled.
4 (i) "Director" means the Director of the Illinois
5 Department of Central Management Services.
6 (j) "Eligibility period" means the period of time a
7 member has to elect enrollment in programs or to select
8 benefits without regard to age, sex or health.
9 (k) "Employee" means and includes each officer or
10 employee in the service of a department who (1) receives his
11 compensation for service rendered to the department on a
12 warrant issued pursuant to a payroll certified by a
13 department or on a warrant or check issued and drawn by a
14 department upon a trust, federal or other fund or on a
15 warrant issued pursuant to a payroll certified by an elected
16 or duly appointed officer of the State or who receives
17 payment of the performance of personal services on a warrant
18 issued pursuant to a payroll certified by a Department and
19 drawn by the Comptroller upon the State Treasurer against
20 appropriations made by the General Assembly from any fund or
21 against trust funds held by the State Treasurer, and (2) is
22 employed full-time or part-time in a position normally
23 requiring actual performance of duty during not less than 1/2
24 of a normal work period, as established by the Director in
25 cooperation with each department, except that persons elected
26 by popular vote will be considered employees during the
27 entire term for which they are elected regardless of hours
28 devoted to the service of the State, and (3) except that
29 "employee" does not include any person who is not eligible by
30 reason of such person's employment to participate in one of
31 the State retirement systems under Articles 2, 14, 15 (either
32 the regular Article 15 system or an optional program
33 established under Section 15-158.2) or 18, or under paragraph
34 (b) or (c) of Section 16-106, of the Illinois Pension Code,
35 but such term does include persons who are employed during
-6- LRB9001767EGfgccr6
1 the 6 month qualifying period under Article 14 of the
2 Illinois Pension Code. Such term also includes any person
3 who (1) after January 1, 1966, is receiving ordinary or
4 accidental disability benefits under Articles 2, 14, 15
5 (including ordinary or accidental disability benefits under
6 an optional program established under Section 15-158.2),
7 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
8 Illinois Pension Code, for disability incurred after January
9 1, 1966, (2) receives total permanent or total temporary
10 disability under the Workers' Compensation Act or
11 Occupational Disease Act as a result of injuries sustained or
12 illness contracted in the course of employment with the State
13 of Illinois, or (3) is not otherwise covered under this Act
14 and has retired as a participating member under Article 2 of
15 the Illinois Pension Code but is ineligible for the
16 retirement annuity under Section 2-119 of the Illinois
17 Pension Code. However, a person who satisfies the criteria
18 of the foregoing definition of "employee" except that such
19 person is 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 is
22 also an "employee" for the purposes of this Act. "Employee"
23 also includes any person receiving or eligible for benefits
24 under a sick pay plan established in accordance with Section
25 36 of the State Finance Act. "Employee" also includes each
26 officer or employee in the service of a qualified local
27 government, including persons appointed as trustees of
28 sanitary districts regardless of hours devoted to the service
29 of the sanitary district, and each employee in the service of
30 a qualified rehabilitation facility and each full-time
31 employee in the service of a qualified domestic violence
32 shelter or service, as determined according to rules
33 promulgated by the Director.
34 (l) "Member" means an employee, annuitant, retired
35 employee or survivor.
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1 (m) "Optional coverages or benefits" means those
2 coverages or benefits available to the member on his or her
3 voluntary election, and at his or her own expense.
4 (n) "Program" means the group life insurance, health
5 benefits and other employee benefits designed and contracted
6 for by the Director under this Act.
7 (o) "Health plan" means a self-insured health insurance
8 program offered by the State of Illinois for the purposes of
9 benefiting employees by means of providing, among others,
10 wellness programs, utilization reviews, second opinions and
11 medical fee reviews, as well as for paying for hospital and
12 medical care up to the maximum coverage provided by the plan,
13 to its members and their dependents.
14 (p) "Retired employee" means any person who would be an
15 annuitant as that term is defined herein but for the fact
16 that such person retired prior to January 1, 1966. Such term
17 also includes any person formerly employed by the University
18 of Illinois in the Cooperative Extension Service who would be
19 an annuitant but for the fact that such person was made
20 ineligible to participate in the State Universities
21 Retirement System by clause (4) of the first paragraph of
22 Section 15-107 of the Illinois Pension Code.
23 (q) "Survivor" means a person receiving an annuity as a
24 survivor of an employee or of an annuitant. "Survivor" also
25 includes: (1) the surviving dependent of a person who
26 satisfies the definition of "employee" except that such
27 person is made ineligible to participate in the State
28 Universities Retirement System by clause (4) of the first
29 paragraph of Section 15-107 of the Illinois Pension Code; and
30 (2) the surviving dependent of any person formerly employed
31 by the University of Illinois in the Cooperative Extension
32 Service who would be an annuitant except for the fact that
33 such person was made ineligible to participate in the State
34 Universities Retirement System by clause (4) of the first
35 paragraph of Section 15-107 of the Illinois Pension Code.
-8- LRB9001767EGfgccr6
1 (r) "Medical services" means the services provided
2 within the scope of their licenses by practitioners in all
3 categories licensed under the Medical Practice Act of 1987.
4 (s) "Unit of local government" means any county,
5 municipality, township, school district, special district or
6 other unit, designated as a unit of local government by law,
7 which exercises limited governmental powers or powers in
8 respect to limited governmental subjects, any not-for-profit
9 association with a membership that primarily includes
10 townships and township officials, that has duties that
11 include provision of research service, dissemination of
12 information, and other acts for the purpose of improving
13 township government, and that is funded wholly or partly in
14 accordance with Section 85-15 of the Township Code; any
15 not-for-profit corporation or association, with a membership
16 consisting primarily of municipalities, that operates its own
17 utility system, and provides research, training,
18 dissemination of information, or other acts to promote
19 cooperation between and among municipalities that provide
20 utility services and for the advancement of the goals and
21 purposes of its membership; and the Illinois Association of
22 Park Districts. "Qualified local government" means a unit of
23 local government approved by the Director and participating
24 in a program created under subsection (i) of Section 10 of
25 this Act.
26 (t) "Qualified rehabilitation facility" means any
27 not-for-profit organization that is accredited by the
28 Commission on Accreditation of Rehabilitation Facilities or
29 certified by the Department of Mental Health and
30 Developmental Disabilities to provide services to persons
31 with disabilities and which receives funds from the State of
32 Illinois for providing those services, approved by the
33 Director and participating in a program created under
34 subsection (j) of Section 10 of this Act.
35 (u) "Qualified domestic violence shelter or service"
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1 means any Illinois domestic violence shelter or service and
2 its administrative offices funded by the Illinois Department
3 of Public Aid, approved by the Director and participating in
4 a program created under subsection (k) of Section 10.
5 (v) "TRS benefit recipient" means a person who:
6 (1) is not a "member" as defined in this Section;
7 and
8 (2) is receiving a monthly benefit or retirement
9 annuity under Article 16 of the Illinois Pension Code;
10 and
11 (3) either (i) has at least 8 years of creditable
12 service under Article 16 of the Illinois Pension Code, or
13 (ii) was enrolled in the health insurance program offered
14 under that Article on January 1, 1996, or (iii) is the
15 survivor of a benefit recipient who had at least 8 years
16 of creditable service under Article 16 of the Illinois
17 Pension Code or was enrolled in the health insurance
18 program offered under that Article on the effective date
19 of this amendatory Act of 1995, or (iv) is a recipient or
20 survivor of a recipient of a disability benefit under
21 Article 16 of the Illinois Pension Code.
22 (w) "TRS dependent beneficiary" means a person who:
23 (1) is not a "member" or "dependent" as defined in
24 this Section; and
25 (2) is a TRS benefit recipient's: (A) spouse, (B)
26 dependent parent who is receiving at least half of his or
27 her support from the TRS benefit recipient, or (C)
28 unmarried natural or adopted child who is (i) under age
29 19, or (ii) enrolled as a full-time student in an
30 accredited school, financially dependent upon the TRS
31 benefit recipient, eligible as a dependent for Illinois
32 State income tax purposes, and either is under age 24 or
33 was, on January 1, 1996, participating as a dependent
34 beneficiary in the health insurance program offered under
35 Article 16 of the Illinois Pension Code, or (iii) age 19
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1 or over who is mentally or physically handicapped as
2 defined in the Illinois Insurance Code.
3 (x) "Military leave with pay and benefits" refers to
4 individuals in basic training for reserves, special/advanced
5 training, annual training, emergency call up, or activation
6 by the President of the United States with approved pay and
7 benefits.
8 (y) "Military leave without pay and benefits" refers to
9 individuals who enlist for active duty in a regular component
10 of the U.S. Armed Forces or other duty not specified or
11 authorized under military leave with pay and benefits.
12 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
13 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
14 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
15 eff. 8-9-96; revised 8-23-96.)
16 (Text of Section after amendment by P.A. 89-507)
17 Sec. 3. Definitions. Unless the context otherwise
18 requires, the following words and phrases as used in this Act
19 shall have the following meanings. The Department may define
20 these and other words and phrases separately for the purpose
21 of implementing specific programs providing benefits under
22 this Act.
23 (a) "Administrative service organization" means any
24 person, firm or corporation experienced in the handling of
25 claims which is fully qualified, financially sound and
26 capable of meeting the service requirements of a contract of
27 administration executed with the Department.
28 (b) "Annuitant" means (1) an employee who retires, or
29 has retired, on or after January 1, 1966 on an immediate
30 annuity under the provisions of Articles 2, 14, 15 (including
31 an employee who has retired and is receiving a retirement
32 annuity under an optional program established under Section
33 15-158.2 and who would also be eligible for a retirement
34 annuity had that person been a participant in the State
-11- LRB9001767EGfgccr6
1 University Retirement System), paragraphs (b) or (c) of
2 Section 16-106, or Article 18 of the Illinois Pension Code;
3 (2) any person who was receiving group insurance coverage
4 under this Act as of March 31, 1978 by reason of his status
5 as an annuitant, even though the annuity in relation to which
6 such coverage was provided is a proportional annuity based on
7 less than the minimum period of service required for a
8 retirement annuity in the system involved; (3) any person not
9 otherwise covered by this Act who has retired as a
10 participating member under Article 2 of the Illinois Pension
11 Code but is ineligible for the retirement annuity under
12 Section 2-119 of the Illinois Pension Code; (4) the spouse of
13 any person who is receiving a retirement annuity under
14 Article 18 of the Illinois Pension Code and who is covered
15 under a group health insurance program sponsored by a
16 governmental employer other than the State of Illinois and
17 who has irrevocably elected to waive his or her coverage
18 under this Act and to have his or her spouse considered as
19 the "annuitant" under this Act and not as a "dependent"; or
20 (5) an employee who retires, or has retired, from a qualified
21 position, as determined according to rules promulgated by the
22 Director, under a qualified local government or a qualified
23 rehabilitation facility or a qualified domestic violence
24 shelter or service. (For definition of "retired employee",
25 see (p) post).
26 (c) "Carrier" means (1) an insurance company, a
27 corporation organized under the Limited Health Service
28 Organization Act or the Voluntary Health Services Plan Act, a
29 partnership, or other nongovernmental organization, which is
30 authorized to do group life or group health insurance
31 business in Illinois, or (2) the State of Illinois as a
32 self-insurer.
33 (d) "Compensation" means salary or wages payable on a
34 regular payroll by the State Treasurer on a warrant of the
35 State Comptroller out of any State, trust or federal fund, or
-12- LRB9001767EGfgccr6
1 by the Governor of the State through a disbursing officer of
2 the State out of a trust or out of federal funds, or by any
3 Department out of State, trust, federal or other funds held
4 by the State Treasurer or the Department, to any person for
5 personal services currently performed, and ordinary or
6 accidental disability benefits under Articles 2, 14, 15
7 (including ordinary or accidental disability benefits under
8 an optional program established under Section 15-158.2),
9 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
10 Illinois Pension Code, for disability incurred after January
11 1, 1966, or benefits payable under the Workers' Compensation
12 or Occupational Diseases Act or benefits payable under a sick
13 pay plan established in accordance with Section 36 of the
14 State Finance Act. "Compensation" also means salary or wages
15 paid to an employee of any qualified local government or
16 qualified rehabilitation facility or a qualified domestic
17 violence shelter or service.
18 (e) "Commission" means the State Employees Group
19 Insurance Advisory Commission authorized by this Act.
20 Commencing July 1, 1984, "Commission" as used in this Act
21 means the Illinois Economic and Fiscal Commission as
22 established by the Legislative Commission Reorganization Act
23 of 1984.
24 (f) "Contributory", when referred to as contributory
25 coverage, shall mean optional coverages or benefits elected
26 by the member toward the cost of which such member makes
27 contribution, or which are funded in whole or in part through
28 the acceptance of a reduction in earnings or the foregoing of
29 an increase in earnings by an employee, as distinguished from
30 noncontributory coverage or benefits which are paid entirely
31 by the State of Illinois without reduction of the member's
32 salary.
33 (g) "Department" means any department, institution,
34 board, commission, officer, court or any agency of the State
35 government receiving appropriations and having power to
-13- LRB9001767EGfgccr6
1 certify payrolls to the Comptroller authorizing payments of
2 salary and wages against such appropriations as are made by
3 the General Assembly from any State fund, or against trust
4 funds held by the State Treasurer and includes boards of
5 trustees of the retirement systems created by Articles 2, 14,
6 15, 16 and 18 of the Illinois Pension Code. "Department"
7 also includes the Illinois Comprehensive Health Insurance
8 Board, the Board of Examiners established under the Illinois
9 Public Accounting Act, and the Illinois Rural Bond Bank.
10 (h) "Dependent", when the term is used in the context of
11 the health and life plan, means a member's spouse and any
12 unmarried child (1) from birth to age 19 including an adopted
13 child, a child who lives with the member from the time of the
14 filing of a petition for adoption until entry of an order of
15 adoption, a stepchild or recognized child who lives with the
16 member in a parent-child relationship, or a child who lives
17 with the member if such member is a court appointed guardian
18 of the child, or (2) age 19 to 23 enrolled as a full-time
19 student in any accredited school, financially dependent upon
20 the member, and eligible as a dependent for Illinois State
21 income tax purposes, or (3) age 19 or over who is mentally or
22 physically handicapped as defined in the Illinois Insurance
23 Code. For the health plan only, the term "dependent" also
24 includes any person enrolled prior to the effective date of
25 this Section who is dependent upon the member to the extent
26 that the member may claim such person as a dependent for
27 Illinois State income tax deduction purposes; no other such
28 person may be enrolled.
29 (i) "Director" means the Director of the Illinois
30 Department of Central Management Services.
31 (j) "Eligibility period" means the period of time a
32 member has to elect enrollment in programs or to select
33 benefits without regard to age, sex or health.
34 (k) "Employee" means and includes each officer or
35 employee in the service of a department who (1) receives his
-14- LRB9001767EGfgccr6
1 compensation for service rendered to the department on a
2 warrant issued pursuant to a payroll certified by a
3 department or on a warrant or check issued and drawn by a
4 department upon a trust, federal or other fund or on a
5 warrant issued pursuant to a payroll certified by an elected
6 or duly appointed officer of the State or who receives
7 payment of the performance of personal services on a warrant
8 issued pursuant to a payroll certified by a Department and
9 drawn by the Comptroller upon the State Treasurer against
10 appropriations made by the General Assembly from any fund or
11 against trust funds held by the State Treasurer, and (2) is
12 employed full-time or part-time in a position normally
13 requiring actual performance of duty during not less than 1/2
14 of a normal work period, as established by the Director in
15 cooperation with each department, except that persons elected
16 by popular vote will be considered employees during the
17 entire term for which they are elected regardless of hours
18 devoted to the service of the State, and (3) except that
19 "employee" does not include any person who is not eligible by
20 reason of such person's employment to participate in one of
21 the State retirement systems under Articles 2, 14, 15 (either
22 the regular Article 15 system or an optional program
23 established under Section 15-158.2) or 18, or under paragraph
24 (b) or (c) of Section 16-106, of the Illinois Pension Code,
25 but such term does include persons who are employed during
26 the 6 month qualifying period under Article 14 of the
27 Illinois Pension Code. Such term also includes any person
28 who (1) after January 1, 1966, is receiving ordinary or
29 accidental disability benefits under Articles 2, 14, 15
30 (including ordinary or accidental disability benefits under
31 an optional program established under Section 15-158.2),
32 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
33 Illinois Pension Code, for disability incurred after January
34 1, 1966, (2) receives total permanent or total temporary
35 disability under the Workers' Compensation Act or
-15- LRB9001767EGfgccr6
1 Occupational Disease Act as a result of injuries sustained or
2 illness contracted in the course of employment with the State
3 of Illinois, or (3) is not otherwise covered under this Act
4 and has retired as a participating member under Article 2 of
5 the Illinois Pension Code but is ineligible for the
6 retirement annuity under Section 2-119 of the Illinois
7 Pension Code. However, a person who satisfies the criteria
8 of the foregoing definition of "employee" except that such
9 person is made ineligible to participate in the State
10 Universities Retirement System by clause (4) of the first
11 paragraph of Section 15-107 of the Illinois Pension Code is
12 also an "employee" for the purposes of this Act. "Employee"
13 also includes any person receiving or eligible for benefits
14 under a sick pay plan established in accordance with Section
15 36 of the State Finance Act. "Employee" also includes each
16 officer or employee in the service of a qualified local
17 government, including persons appointed as trustees of
18 sanitary districts regardless of hours devoted to the service
19 of the sanitary district, and each employee in the service of
20 a qualified rehabilitation facility and each full-time
21 employee in the service of a qualified domestic violence
22 shelter or service, as determined according to rules
23 promulgated by the Director.
24 (l) "Member" means an employee, annuitant, retired
25 employee or survivor.
26 (m) "Optional coverages or benefits" means those
27 coverages or benefits available to the member on his or her
28 voluntary election, and at his or her own expense.
29 (n) "Program" means the group life insurance, health
30 benefits and other employee benefits designed and contracted
31 for by the Director under this Act.
32 (o) "Health plan" means a self-insured health insurance
33 program offered by the State of Illinois for the purposes of
34 benefiting employees by means of providing, among others,
35 wellness programs, utilization reviews, second opinions and
-16- LRB9001767EGfgccr6
1 medical fee reviews, as well as for paying for hospital and
2 medical care up to the maximum coverage provided by the plan,
3 to its members and their dependents.
4 (p) "Retired employee" means any person who would be an
5 annuitant as that term is defined herein but for the fact
6 that such person retired prior to January 1, 1966. Such term
7 also includes any person formerly employed by the University
8 of Illinois in the Cooperative Extension Service who would be
9 an annuitant but for the fact that such person was made
10 ineligible to participate in the State Universities
11 Retirement System by clause (4) of the first paragraph of
12 Section 15-107 of the Illinois Pension Code.
13 (q) "Survivor" means a person receiving an annuity as a
14 survivor of an employee or of an annuitant. "Survivor" also
15 includes: (1) the surviving dependent of a person who
16 satisfies the definition of "employee" except that such
17 person is made ineligible to participate in the State
18 Universities Retirement System by clause (4) of the first
19 paragraph of Section 15-107 of the Illinois Pension Code; and
20 (2) the surviving dependent of any person formerly employed
21 by the University of Illinois in the Cooperative Extension
22 Service who would be an annuitant except for the fact that
23 such person was made ineligible to participate in the State
24 Universities Retirement System by clause (4) of the first
25 paragraph of Section 15-107 of the Illinois Pension Code.
26 (r) "Medical services" means the services provided
27 within the scope of their licenses by practitioners in all
28 categories licensed under the Medical Practice Act of 1987.
29 (s) "Unit of local government" means any county,
30 municipality, township, school district, special district or
31 other unit, designated as a unit of local government by law,
32 which exercises limited governmental powers or powers in
33 respect to limited governmental subjects, any not-for-profit
34 association with a membership that primarily includes
35 townships and township officials, that has duties that
-17- LRB9001767EGfgccr6
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 Human Services (as successor
20 to the Department of Mental Health and Developmental
21 Disabilities) to provide services to persons with
22 disabilities and which receives funds from the State of
23 Illinois for providing those services, approved by the
24 Director and participating in a program created under
25 subsection (j) of Section 10 of this Act.
26 (u) "Qualified domestic violence shelter or service"
27 means any Illinois domestic violence shelter or service and
28 its administrative offices funded by the Department of Human
29 Services (as successor to the Illinois Department of Public
30 Aid), approved by the Director and participating in a program
31 created under subsection (k) of Section 10.
32 (v) "TRS benefit recipient" means a person who:
33 (1) is not a "member" as defined in this Section;
34 and
35 (2) is receiving a monthly benefit or retirement
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1 annuity under Article 16 of the Illinois Pension Code;
2 and
3 (3) either (i) has at least 8 years of creditable
4 service under Article 16 of the Illinois Pension Code, or
5 (ii) was enrolled in the health insurance program offered
6 under that Article on January 1, 1996, or (iii) is the
7 survivor of a benefit recipient who had at least 8 years
8 of creditable service under Article 16 of the Illinois
9 Pension Code or was enrolled in the health insurance
10 program offered under that Article on the effective date
11 of this amendatory Act of 1995, or (iv) is a recipient or
12 survivor of a recipient of a disability benefit under
13 Article 16 of the Illinois Pension Code.
14 (w) "TRS dependent beneficiary" means a person who:
15 (1) is not a "member" or "dependent" as defined in
16 this Section; and
17 (2) is a TRS benefit recipient's: (A) spouse, (B)
18 dependent parent who is receiving at least half of his or
19 her support from the TRS benefit recipient, or (C)
20 unmarried natural or adopted child who is (i) under age
21 19, or (ii) enrolled as a full-time student in an
22 accredited school, financially dependent upon the TRS
23 benefit recipient, eligible as a dependent for Illinois
24 State income tax purposes, and either is under age 24 or
25 was, on January 1, 1996, participating as a dependent
26 beneficiary in the health insurance program offered under
27 Article 16 of the Illinois Pension Code, or (iii) age 19
28 or over who is mentally or physically handicapped as
29 defined in the Illinois Insurance Code.
30 (x) "Military leave with pay and benefits" refers to
31 individuals in basic training for reserves, special/advanced
32 training, annual training, emergency call up, or activation
33 by the President of the United States with approved pay and
34 benefits.
35 (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; 89-507,
7 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
8 Section 1.5. The Property Tax Code is amended by
9 changing Section 18-185 as follows:
10 (35 ILCS 200/18-185)
11 Sec. 18-185. Short title; definitions. This Section and
12 Sections 18-190 through 18-245 may be cited as the Property
13 Tax Extension Limitation Law. As used in Sections 18-190
14 through 18-245:
15 "Consumer Price Index" means the Consumer Price Index for
16 All Urban Consumers for all items published by the United
17 States Department of Labor.
18 "Extension limitation" means (a) the lesser of 5% or the
19 percentage increase in the Consumer Price Index during the
20 12-month calendar year preceding the levy year or (b) the
21 rate of increase approved by voters under Section 18-205.
22 "Affected county" means a county of 3,000,000 or more
23 inhabitants or a county contiguous to a county of 3,000,000
24 or more inhabitants.
25 "Taxing district" has the same meaning provided in
26 Section 1-150, except as otherwise provided in this Section.
27 For the 1991 through 1994 levy years only, "taxing district"
28 includes only each non-home rule taxing district having the
29 majority of its 1990 equalized assessed value within any
30 county or counties contiguous to a county with 3,000,000 or
31 more inhabitants. Beginning with the 1995 levy year, "taxing
32 district" includes only each non-home rule taxing district
33 subject to this Law before the 1995 levy year and each
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1 non-home rule taxing district not subject to this Law before
2 the 1995 levy year having the majority of its 1994 equalized
3 assessed value in an affected county or counties. Beginning
4 with the levy year in which this Law becomes applicable to a
5 taxing district as provided in Section 18-213, "taxing
6 district" also includes those taxing districts made subject
7 to this Law as provided in Section 18-213.
8 "Aggregate extension" for taxing districts to which this
9 Law applied before the 1995 levy year means the annual
10 corporate extension for the taxing district and those special
11 purpose extensions that are made annually for the taxing
12 district, excluding special purpose extensions: (a) made for
13 the taxing district to pay interest or principal on general
14 obligation bonds that were approved by referendum; (b) made
15 for any taxing district to pay interest or principal on
16 general obligation bonds issued before October 1, 1991; (c)
17 made for any taxing district to pay interest or principal on
18 bonds issued to refund or continue to refund those bonds
19 issued before October 1, 1991; (d) made for any taxing
20 district to pay interest or principal on bonds issued to
21 refund or continue to refund bonds issued after October 1,
22 1991 that were approved by referendum; (e) made for any
23 taxing district to pay interest or principal on revenue bonds
24 issued before October 1, 1991 for payment of which a property
25 tax levy or the full faith and credit of the unit of local
26 government is pledged; however, a tax for the payment of
27 interest or principal on those bonds shall be made only after
28 the governing body of the unit of local government finds that
29 all other sources for payment are insufficient to make those
30 payments; (f) made for payments under a building commission
31 lease when the lease payments are for the retirement of bonds
32 issued by the commission before October 1, 1991, to pay for
33 the building project; (g) made for payments due under
34 installment contracts entered into before October 1, 1991;
35 (h) made for payments of principal and interest on bonds
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1 issued under the Metropolitan Water Reclamation District Act
2 to finance construction projects initiated before October 1,
3 1991; (i) made for payments of principal and interest on
4 limited bonds, as defined in Section 3 of the Local
5 Government Debt Reform Act, in an amount not to exceed the
6 debt service extension base less the amount in items (b),
7 (c), (e), and (h) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; and (j) made for payments of principal and
10 interest on bonds issued under Section 15 of the Local
11 Government Debt Reform Act; and (k) made by a school district
12 that participates in the Special Education District of Lake
13 County, created by special education joint agreement under
14 Section 10-22.31 of the School Code, for payment of the
15 school district's share of the amounts required to be
16 contributed by the Special Education District of Lake County
17 to the Illinois Municipal Retirement Fund under Article 7 of
18 the Illinois Pension Code; the amount of any extension under
19 this item (k) shall be certified by the school district to
20 the county clerk.
21 "Aggregate extension" for the taxing districts to which
22 this Law did not apply before the 1995 levy year (except
23 taxing districts subject to this Law in accordance with
24 Section 18-213) means the annual corporate extension for the
25 taxing district and those special purpose extensions that are
26 made annually for the taxing district, excluding special
27 purpose extensions: (a) made for the taxing district to pay
28 interest or principal on general obligation bonds that were
29 approved by referendum; (b) made for any taxing district to
30 pay interest or principal on general obligation bonds issued
31 before March 1, 1995; (c) made for any taxing district to pay
32 interest or principal on bonds issued to refund or continue
33 to refund those bonds issued before March 1, 1995; (d) made
34 for any taxing district to pay interest or principal on bonds
35 issued to refund or continue to refund bonds issued after
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1 March 1, 1995 that were approved by referendum; (e) made for
2 any taxing district to pay interest or principal on revenue
3 bonds issued before March 1, 1995 for payment of which a
4 property tax levy or the full faith and credit of the unit of
5 local government is pledged; however, a tax for the payment
6 of interest or principal on those bonds shall be made only
7 after the governing body of the unit of local government
8 finds that all other sources for payment are insufficient to
9 make those payments; (f) made for payments under a building
10 commission lease when the lease payments are for the
11 retirement of bonds issued by the commission before March 1,
12 1995 to pay for the building project; (g) made for payments
13 due under installment contracts entered into before March 1,
14 1995; (h) made for payments of principal and interest on
15 bonds issued under the Metropolitan Water Reclamation
16 District Act to finance construction projects initiated
17 before October 1, 1991; (i) made for payments of principal
18 and interest on limited bonds, as defined in Section 3 of the
19 Local Government Debt Reform Act, in an amount not to exceed
20 the debt service extension base less the amount in items (b),
21 (c), (e), and (h) of this definition for non-referendum
22 obligations, except obligations initially issued pursuant to
23 referendum; (j) made for payments of principal and interest
24 on bonds issued under Section 15 of the Local Government Debt
25 Reform Act; (k) made for payments of principal and interest
26 on bonds authorized by Public Act 88-503 and issued under
27 Section 20a of the Chicago Park District Act for aquarium or
28 museum projects; and (l) made for payments of principal and
29 interest on bonds authorized by Public Act 87-1191 and issued
30 under Section 42 of the Cook County Forest Preserve District
31 Act for zoological park projects.
32 "Aggregate extension" for all taxing districts to which
33 this Law applies in accordance with Section 18-213, except
34 for those taxing districts subject to paragraph (2) of
35 subsection (e) of Section 18-213, means the annual corporate
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1 extension for the taxing district and those special purpose
2 extensions that are made annually for the taxing district,
3 excluding special purpose extensions: (a) made for the taxing
4 district to pay interest or principal on general obligation
5 bonds that were approved by referendum; (b) made for any
6 taxing district to pay interest or principal on general
7 obligation bonds issued before the date on which the
8 referendum making this Law applicable to the taxing district
9 is held; (c) made for any taxing district to pay interest or
10 principal on bonds issued to refund or continue to refund
11 those bonds issued before the date on which the referendum
12 making this Law applicable to the taxing district is held;
13 (d) made for any taxing district to pay interest or principal
14 on bonds issued to refund or continue to refund bonds issued
15 after the date on which the referendum making this Law
16 applicable to the taxing district is held if the bonds were
17 approved by referendum after the date on which the referendum
18 making this Law applicable to the taxing district is held;
19 (e) made for any taxing district to pay interest or principal
20 on revenue bonds issued before the date on which the
21 referendum making this Law applicable to the taxing district
22 is held for payment of which a property tax levy or the full
23 faith and credit of the unit of local government is pledged;
24 however, a tax for the payment of interest or principal on
25 those bonds shall be made only after the governing body of
26 the unit of local government finds that all other sources for
27 payment are insufficient to make those payments; (f) made for
28 payments under a building commission lease when the lease
29 payments are for the retirement of bonds issued by the
30 commission before the date on which the referendum making
31 this Law applicable to the taxing district is held to pay for
32 the building project; (g) made for payments due under
33 installment contracts entered into before the date on which
34 the referendum making this Law applicable to the taxing
35 district is held; (h) made for payments of principal and
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1 interest on limited bonds, as defined in Section 3 of the
2 Local Government Debt Reform Act, in an amount not to exceed
3 the debt service extension base less the amount in items (b),
4 (c), and (e) of this definition for non-referendum
5 obligations, except obligations initially issued pursuant to
6 referendum; (i) made for payments of principal and interest
7 on bonds issued under Section 15 of the Local Government Debt
8 Reform Act; and (j) made for a qualified airport authority to
9 pay interest or principal on general obligation bonds issued
10 for the purpose of paying obligations due under, or financing
11 airport facilities required to be acquired, constructed,
12 installed or equipped pursuant to, contracts entered into
13 before March 1, 1996 (but not including any amendments to
14 such a contract taking effect on or after that date).
15 "Aggregate extension" for all taxing districts to which
16 this Law applies in accordance with paragraph (2) of
17 subsection (e) of Section 18-213 means the annual corporate
18 extension for the taxing district and those special purpose
19 extensions that are made annually for the taxing district,
20 excluding special purpose extensions: (a) made for the taxing
21 district to pay interest or principal on general obligation
22 bonds that were approved by referendum; (b) made for any
23 taxing district to pay interest or principal on general
24 obligation bonds issued before the effective date of this
25 amendatory Act of 1997; (c) made for any taxing district to
26 pay interest or principal on bonds issued to refund or
27 continue to refund those bonds issued before the effective
28 date of this amendatory Act of 1997; (d) made for any taxing
29 district to pay interest or principal on bonds issued to
30 refund or continue to refund bonds issued after the effective
31 date of this amendatory Act of 1997 if the bonds were
32 approved by referendum after the effective date of this
33 amendatory Act of 1997; (e) made for any taxing district to
34 pay interest or principal on revenue bonds issued before the
35 effective date of this amendatory Act of 1997 for payment of
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1 which a property tax levy or the full faith and credit of the
2 unit of local government is pledged; however, a tax for the
3 payment of interest or principal on those bonds shall be made
4 only after the governing body of the unit of local government
5 finds that all other sources for payment are insufficient to
6 make those payments; (f) made for payments under a building
7 commission lease when the lease payments are for the
8 retirement of bonds issued by the commission before the
9 effective date of this amendatory Act of 1997 to pay for the
10 building project; (g) made for payments due under installment
11 contracts entered into before the effective date of this
12 amendatory Act of 1997; (h) made for payments of principal
13 and interest on limited bonds, as defined in Section 3 of the
14 Local Government Debt Reform Act, in an amount not to exceed
15 the debt service extension base less the amount in items (b),
16 (c), and (e) of this definition for non-referendum
17 obligations, except obligations initially issued pursuant to
18 referendum; (i) made for payments of principal and interest
19 on bonds issued under Section 15 of the Local Government Debt
20 Reform Act; and (j) made for a qualified airport authority to
21 pay interest or principal on general obligation bonds issued
22 for the purpose of paying obligations due under, or financing
23 airport facilities required to be acquired, constructed,
24 installed or equipped pursuant to, contracts entered into
25 before March 1, 1996 (but not including any amendments to
26 such a contract taking effect on or after that date).
27 "Debt service extension base" means an amount equal to
28 that portion of the extension for a taxing district for the
29 1994 levy year, or for those taxing districts subject to this
30 Law in accordance with Section 18-213, except for those
31 subject to paragraph (2) of subsection (e) of Section 18-213,
32 for the levy year in which the referendum making this Law
33 applicable to the taxing district is held, or for those
34 taxing districts subject to this Law in accordance with
35 paragraph (2) of subsection (e) of Section 18-213 for the
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1 1996 levy year, constituting an extension for payment of
2 principal and interest on bonds issued by the taxing district
3 without referendum, but not including (i) bonds authorized by
4 Public Act 88-503 and issued under Section 20a of the Chicago
5 Park District Act for aquarium and museum projects; (ii)
6 bonds issued under Section 15 of the Local Government Debt
7 Reform Act; or (iii) refunding obligations issued to refund
8 or to continue to refund obligations initially issued
9 pursuant to referendum. The debt service extension base may
10 be established or increased as provided under Section 18-212.
11 "Special purpose extensions" include, but are not limited
12 to, extensions for levies made on an annual basis for
13 unemployment and workers' compensation, self-insurance,
14 contributions to pension plans, and extensions made pursuant
15 to Section 6-601 of the Illinois Highway Code for a road
16 district's permanent road fund whether levied annually or
17 not. The extension for a special service area is not
18 included in the aggregate extension.
19 "Aggregate extension base" means the taxing district's
20 last preceding aggregate extension as adjusted under Sections
21 18-215 through 18-230.
22 "Levy year" has the same meaning as "year" under Section
23 1-155.
24 "New property" means (i) the assessed value, after final
25 board of review or board of appeals action, of new
26 improvements or additions to existing improvements on any
27 parcel of real property that increase the assessed value of
28 that real property during the levy year multiplied by the
29 equalization factor issued by the Department under Section
30 17-30 and (ii) the assessed value, after final board of
31 review or board of appeals action, of real property not
32 exempt from real estate taxation, which real property was
33 exempt from real estate taxation for any portion of the
34 immediately preceding levy year, multiplied by the
35 equalization factor issued by the Department under Section
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1 17-30.
2 "Qualified airport authority" means an airport authority
3 organized under the Airport Authorities Act and located in a
4 county bordering on the State of Wisconsin and having a
5 population in excess of 200,000 and not greater than 500,000.
6 "Recovered tax increment value" means the amount of the
7 current year's equalized assessed value, in the first year
8 after a municipality terminates the designation of an area as
9 a redevelopment project area previously established under the
10 Tax Increment Allocation Development Act in the Illinois
11 Municipal Code, previously established under the Industrial
12 Jobs Recovery Law in the Illinois Municipal Code, or
13 previously established under the Economic Development Area
14 Tax Increment Allocation Act, of each taxable lot, block,
15 tract, or parcel of real property in the redevelopment
16 project area over and above the initial equalized assessed
17 value of each property in the redevelopment project area.
18 Except as otherwise provided in this Section, "limiting
19 rate" means a fraction the numerator of which is the last
20 preceding aggregate extension base times an amount equal to
21 one plus the extension limitation defined in this Section and
22 the denominator of which is the current year's equalized
23 assessed value of all real property in the territory under
24 the jurisdiction of the taxing district during the prior levy
25 year. For those taxing districts that reduced their
26 aggregate extension for the last preceding levy year, the
27 highest aggregate extension in any of the last 3 preceding
28 levy years shall be used for the purpose of computing the
29 limiting rate. The denominator shall not include new
30 property. The denominator shall not include the recovered
31 tax increment value.
32 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
33 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
34 eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
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1 Section 2. The Illinois Pension Code is amended by
2 changing Sections 1-113, 5-152.1, 7-132, 7-171, 8-138,
3 8-150.1, 8-154, 8-159, 8-226, 11-134, 11-145.1, 11-149,
4 11-154, 11-215, 14-103.04, 14-104, 15-106, 15-112, 15-113.2,
5 15-113.3, 15-113.4, 15-113.5, 15-113.7, 15-125, 15-136.2,
6 15-143, 15-153.2, 15-157, 15-167.2, 15-185, 15-190, 15-191,
7 16-140, and 16-163 and adding Sections 8-138.3, 9-121.15,
8 9-220.1, 11-133.2, 14-104.10, 14-105.7, and 15-168.1 as
9 follows:
10 (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
11 Sec. 1-113. Investment authority. The investment
12 authority of a board of trustees of a retirement system or
13 pension fund established under this Code shall, if so
14 provided in the Article establishing such retirement system
15 or pension fund, embrace the following investments:
16 (1) Bonds, notes and other direct obligations of the
17 United States Government; bonds, notes and other obligations
18 of any United States Government agency or instrumentality,
19 whether or not guaranteed; and obligations the principal and
20 interest of which are guaranteed unconditionally by the
21 United States Government or by an agency or instrumentality
22 thereof.
23 (2) Obligations of the Inter-American Development Bank,
24 the International Bank for Reconstruction and Development,
25 the African Development Bank, the International Finance
26 Corporation, and the Asian Development Bank.
27 (3) Obligations of any state, or of any political
28 subdivision in Illinois, or of any county or city in any
29 other state having a population as shown by the last federal
30 census of not less than 30,000 inhabitants provided that such
31 political subdivision is not permitted by law to become
32 indebted in excess of 10% of the assessed valuation of
33 property therein and has not defaulted for a period longer
34 than 30 days in the payment of interest and principal on any
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1 of its general obligations or indebtedness during a period of
2 10 calendar years immediately preceding such investment.
3 (4) Nonconvertible bonds, debentures, notes and other
4 corporate obligations of any corporation created or existing
5 under the laws of the United States or any state, district or
6 territory thereof, provided there has been no default on the
7 obligations of the corporation or its predecessor(s) during
8 the 5 calendar years immediately preceding the purchase. Up
9 to 5% of the assets of a pension fund established under
10 Article 9 of this Code may be invested in nonconvertible
11 bonds, debentures, notes, and other corporate obligations of
12 corporations created or existing under the laws of a foreign
13 country, provided there has been no default on the
14 obligations of the corporation or its predecessors during the
15 5 calendar years immediately preceding the date of purchase.
16 (5) Obligations guaranteed by the Government of Canada,
17 or by any Province of Canada, or by any Canadian city with a
18 population of not less than 150,000 inhabitants, provided (a)
19 they are payable in United States currency and are exempt
20 from any Canadian withholding tax; (b) the investment in any
21 one issue of bonds shall not exceed 10% of the amount
22 outstanding; and (c) the total investments at book value in
23 Canadian securities shall be limited to 5% of the total
24 investment account of the board at book value.
25 (5.1) Direct obligations of the State of Israel for the
26 payment of money, or obligations for the payment of money
27 which are guaranteed as to the payment of principal and
28 interest by the State of Israel, or common or preferred stock
29 or notes issued by a bank owned or controlled in whole or in
30 part by the State of Israel, on the following conditions:
31 (a) The total investments in such obligations shall
32 not exceed 5% of the book value of the aggregate
33 investments owned by the board;
34 (b) The State of Israel shall not be in default in
35 the payment of principal or interest on any of its direct
-30- LRB9001767EGfgccr6
1 general obligations on the date of such investment;
2 (c) The bonds, stock or notes, and interest thereon
3 shall be payable in currency of the United States;
4 (d) The bonds shall (1) contain an option for the
5 redemption thereof after 90 days from date of purchase or
6 (2) either become due 5 years from the date of their
7 purchase or be subject to redemption 120 days after the
8 date of notice for redemption;
9 (e) The investment in these obligations has been
10 approved in writing by investment counsel employed by the
11 board, which counsel shall be a national or state bank or
12 trust company authorized to do a trust business in the
13 State of Illinois, or an investment advisor qualified
14 under the Federal Investment Advisors Act of 1940 and
15 registered under the Illinois Securities Act of 1953;
16 (f) The fund or system making the investment shall
17 have at least $5,000,000 of net present assets.
18 (6) Notes secured by mortgages under Sections 203, 207,
19 220 and 221 of the National Housing Act which are insured by
20 the Federal Housing Commissioner, or his successor assigns,
21 or debentures issued by such Commissioner, which are
22 guaranteed as to principal and interest by the Federal
23 Housing Administration, or agency of the United States
24 Government, provided the aggregate investment shall not
25 exceed 20% of the total investment account of the board at
26 book value, and provided further that the investment in such
27 notes under Sections 220 and 221 shall in no event exceed
28 one-half of the maximum investment in notes under this
29 paragraph.
30 (7) Loans to veterans guaranteed in whole or part by the
31 United States Government pursuant to Title III of the Act of
32 Congress known as the "Servicemen's Readjustment Act of
33 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
34 supplemented from time to time, provided such guaranteed
35 loans are liens upon real estate.
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1 (8) Common and preferred stocks and convertible debt
2 securities authorized for investment of trust funds under the
3 laws of the State of Illinois, provided:
4 (a) the common stocks, except as provided in
5 subparagraph (h), are listed on a national securities
6 exchange as defined in the Federal Securities Exchange
7 Act, or quoted in the National Association of Securities
8 Dealers Automated Quotation System (NASDAQ);
9 (b) the securities are of a corporation created or
10 existing under the laws of the United States or any
11 state, district or territory thereof, except that up to
12 5% of the assets of a pension fund established under
13 Article 9 of this Code may be invested in securities
14 issued by corporations created or existing under the laws
15 of a foreign country, if those securities are otherwise
16 in conformance with this paragraph (8);
17 (c) the corporation is not in arrears on payment of
18 dividends on its preferred stock;
19 (d) the total book value of all stocks and
20 convertible debt owned by any pension fund or retirement
21 system shall not exceed 40% of the aggregate book value
22 of all investments of such pension fund or retirement
23 system, except for a pension fund or retirement that
24 system governed by Article 9 or 17, where the total of
25 all stocks and convertible debt shall not exceed 50% of
26 the aggregate book value of all fund investments;
27 (e) the book value of stock and convertible debt
28 investments in any one corporation shall not exceed 5% of
29 the total investment account at book value in which such
30 securities are held, determined as of the date of the
31 investment, and the investments in the stock of any one
32 corporation shall not exceed 5% of the total outstanding
33 stock of such corporation, and the investments in the
34 convertible debt of any one corporation shall not exceed
35 5% of the total amount of such debt that may be
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1 outstanding;
2 (f) the straight preferred stocks or convertible
3 preferred stocks and convertible debt securities are
4 issued or guaranteed by a corporation whose common stock
5 qualifies for investment by the board; and
6 (g) that any common stocks not listed or quoted as
7 provided in subdivision 8(a) above be limited to the
8 following types of institutions: (a) any bank which is a
9 member of the Federal Deposit Insurance Corporation
10 having capital funds represented by capital stock,
11 surplus and undivided profits of at least $20,000,000;
12 (b) any life insurance company having capital funds
13 represented by capital stock, special surplus funds and
14 unassigned surplus totalling at least $50,000,000; and
15 (c) any fire or casualty insurance company, or a
16 combination thereof, having capital funds represented by
17 capital stock, net surplus and voluntary reserves of at
18 least $50,000,000.
19 (9) Withdrawable accounts of State chartered and federal
20 chartered savings and loan associations insured by the
21 Federal Savings and Loan Insurance Corporation; deposits or
22 certificates of deposit in State and national banks insured
23 by the Federal Deposit Insurance Corporation; and share
24 accounts or share certificate accounts in a State or federal
25 credit union, the accounts of which are insured as required
26 by The Illinois Credit Union Act or the Federal Credit Union
27 Act, as applicable.
28 No bank or savings and loan association shall receive
29 investment funds as permitted by this subsection (9), unless
30 it has complied with the requirements established pursuant to
31 Section 6 of the Public Funds Investment Act.
32 (10) Trading, purchase or sale of listed options on
33 underlying securities owned by the board.
34 (11) Contracts and agreements supplemental thereto
35 providing for investments in the general account of a life
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1 insurance company authorized to do business in Illinois.
2 (12) Conventional mortgage pass-through securities which
3 are evidenced by interests in Illinois owner-occupied
4 residential mortgages, having not less than an "A" rating
5 from at least one national securities rating service. Such
6 mortgages may have loan-to-value ratios up to 95%, provided
7 that any amount over 80% is insured by private mortgage
8 insurance. The pool of such mortgages shall be insured by
9 mortgage guaranty or equivalent insurance, in accordance with
10 industry standards.
11 (13) Pooled or commingled funds managed by a national or
12 State bank which is authorized to do a trust business in the
13 State of Illinois, shares of registered investment companies
14 as defined in the federal Investment Company Act of 1940
15 which are registered under that Act, and separate accounts of
16 a life insurance company authorized to do business in
17 Illinois, where such pooled or commingled funds, shares, or
18 separate accounts are comprised of common or preferred
19 stocks, bonds, or money market instruments.
20 (14) Pooled or commingled funds managed by a national or
21 state bank which is authorized to do a trust business in the
22 State of Illinois, separate accounts managed by a life
23 insurance company authorized to do business in Illinois, and
24 commingled group trusts managed by an investment adviser
25 registered under the federal Investment Advisors Act of 1940
26 (15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
27 Law of 1953, where such pooled or commingled funds, separate
28 accounts or commingled group trusts are comprised of real
29 estate or loans upon real estate secured by first or second
30 mortgages. The total investment in such pooled or commingled
31 funds, commingled group trusts and separate accounts shall
32 not exceed 10% of the aggregate book value of all investments
33 owned by the fund.
34 (15) Investment companies which (a) are registered as
35 such under the Investment Company Act of 1940, (b) are
-34- LRB9001767EGfgccr6
1 diversified, open-end management investment companies and (c)
2 invest only in money market instruments.
3 (16) Up to 10% of the assets of the fund may be invested
4 in investments not included in paragraphs (1) through (15) of
5 this Section, provided that such investments comply with the
6 requirements and restrictions set forth in Sections 1-109,
7 1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
8 The board shall have the authority to enter into such
9 agreements and to execute such documents as it determines to
10 be necessary to complete any investment transaction.
11 Any limitations herein set forth shall be applicable only
12 at the time of purchase and shall not require the liquidation
13 of any investment at any time.
14 All investments shall be clearly held and accounted for
15 to indicate ownership by such board. Such board may direct
16 the registration of securities in its own name or in the name
17 of a nominee created for the express purpose of registration
18 of securities by a national or state bank or trust company
19 authorized to conduct a trust business in the State of
20 Illinois.
21 Investments shall be carried at cost or at a book value
22 determined in accordance with generally accepted accounting
23 principles and accounting procedures approved by such board.
24 No adjustments shall be made in investment carrying values
25 for ordinary current market price fluctuations; but reserves
26 may be provided to account for possible losses or unrealized
27 gains as determined by such board.
28 The book value of investments held by any pension fund or
29 retirement system in one or more commingled investment
30 accounts shall be the cost of its units of participation in
31 such commingled account or accounts as recorded on the books
32 of such board.
33 (Source: P.A. 86-272; 87-575; 87-794; 87-895.)
34 (40 ILCS 5/5-152.1)
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1 Sec. 5-152.1. Parent's annuity.
2 (a) A parent's annuity shall be provided for the natural
3 parent or parents of a policeman who dies on or after the
4 effective date of this amendatory Act of 1996 while (i) in
5 active service, (ii) disabled and in receipt of or pending
6 receipt of a disability benefit, (iii) on leave of absence
7 with whole or part pay, (iv) on leave of absence without pay
8 during a period of not more than 3 months in the aggregate,
9 (v) in receipt of annuity granted after 20 years of service,
10 or (vi) out of the service after 20 years of service and
11 pending receipt of annuity to which the policeman has a right
12 upon attainment of age 50 or more. However, the parent's
13 annuity is payable only if there is no surviving spouse or
14 child entitled to an annuity as a result of the policeman's
15 death, and satisfactory proof is submitted to the board that
16 the policeman was contributing to the support of the parent
17 or parents at the time of death.
18 (b) Beginning July 1, 1997, a parent's annuity shall be
19 available to the natural parent or parents of a policeman who
20 died before August 9, 1996 while (i) in active service, (ii)
21 disabled and in receipt of or pending receipt of a disability
22 benefit, (iii) on leave of absence with whole or part pay,
23 (iv) on leave of absence without pay during a period of not
24 more than 3 months in the aggregate, (v) in receipt of
25 annuity granted after 20 years of service, or (vi) out of the
26 service after 20 years of service and pending receipt of
27 annuity to which the policeman has a right upon attainment of
28 age 50 or more. However, the parent's annuity is payable
29 only if there is no surviving spouse or child entitled to an
30 annuity as a result of the policeman's death, and
31 satisfactory proof is submitted to the board that the
32 policeman was contributing to the support of the parent or
33 parents at the time of death. The parent's annuity shall
34 begin no earlier than the first day of the month following
35 the month in which the application for parent's annuity is
-36- LRB9001767EGfgccr6
1 received by the Fund.
2 (c) The parent's annuity shall be 18% of the current
3 annual salary attached to the classified position held by the
4 policeman at the time of death or withdrawal from service for
5 each eligible surviving parent, payable on a monthly basis.
6 (Source: P.A. 89-643, eff. 8-9-96.)
7 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
8 Sec. 7-132. Municipalities, instrumentalities and
9 participating instrumentalities included and effective dates.
10 (A) Municipalities and their instrumentalities.
11 (a) The following described municipalities, but not
12 including any with more than 1,000,000 inhabitants, and the
13 instrumentalities thereof, shall be included within and be
14 subject to this Article beginning upon the effective dates
15 specified by the Board:
16 (1) Except as to the municipalities and
17 instrumentalities thereof specifically excluded under
18 this Article, every county shall be subject to this
19 Article, and all cities, villages and incorporated towns
20 having a population in excess of 5,000 inhabitants as
21 determined by the last preceding decennial or subsequent
22 federal census, shall be subject to this Article
23 following publication of the census by the Bureau of the
24 Census. Within 90 days after publication of the census,
25 the Board shall notify any municipality that has become
26 subject to this Article as a result of that census, and
27 shall provide information to the corporate authorities of
28 the municipality explaining the duties and consequences
29 of participation. The notification shall also include a
30 proposed date upon which participation by the
31 municipality will commence.
32 However, for any city, village or incorporated town
33 that attains a population over 5,000 inhabitants after
-37- LRB9001767EGfgccr6
1 having provided social security coverage for its
2 employees under the Social Security Enabling Act,
3 participation under this Article shall not be mandatory
4 but may be elected in accordance with subparagraph (3) or
5 (4) of this paragraph (a), whichever is applicable.
6 (2) School districts, other than those specifically
7 excluded under this Article, shall be subject to this
8 Article, without election, with respect to all employees
9 thereof.
10 (3) Towns and all other bodies politic and
11 corporate which are formed by vote of, or are subject to
12 control by, the electors in towns and are located in
13 towns which are not participating municipalities on the
14 effective date of this Act, may become subject to this
15 Article by election pursuant to Section 7-132.1.
16 (4) Any other municipality (together with its
17 instrumentalities), other than those specifically
18 excluded from participation and those described in
19 paragraph (3) above, may elect to be included either by
20 referendum under Section 7-134 or by the adoption of a
21 resolution or ordinance by its governing body. A copy of
22 such resolution or ordinance duly authenticated and
23 certified by the clerk of the municipality or other
24 appropriate official of its governing body shall
25 constitute the required notice to the board of such
26 action.
27 (b) A municipality that is about to begin participation
28 shall submit to the Board an application to participate, in a
29 form acceptable to the Board, not later than 90 days prior to
30 the proposed effective date of participation. The Board
31 shall act upon the application within 90 days, and if it
32 finds that the application is in conformity with its
33 requirements and the requirements of this Article,
34 participation by the applicant shall commence on a date
35 acceptable to the municipality and specified by the Board,
-38- LRB9001767EGfgccr6
1 but in no event more than one year from the date of
2 application.
3 (c) A participating municipality which succeeds to the
4 functions of a participating municipality which is dissolved
5 or terminates its existence shall assume and be transferred
6 the net accumulation balance in the municipality reserve and
7 the municipality account receivable balance of the terminated
8 municipality.
9 (d) In the case of a Veterans Assistance Commission
10 whose employees were being treated by the Fund on January 1,
11 1990 as employees of the county served by the Commission, the
12 Fund may continue to treat the employees of the Veterans
13 Assistance Commission as county employees for the purposes of
14 this Article, unless the Commission becomes a participating
15 instrumentality in accordance with subsection (B) of this
16 Section.
17 (B) Participating instrumentalities.
18 (a) The participating instrumentalities designated in
19 paragraph (b) of this subsection shall be included within and
20 be subject to this Article if:
21 (1) an application to participate, in a form
22 acceptable to the Board and adopted by a two-thirds vote
23 of the governing body, is presented to the Board not
24 later than 90 days prior to the proposed effective date;
25 and
26 (2) the Board finds that the application is in
27 conformity with its requirements, that the applicant has
28 reasonable expectation to continue as a political entity
29 for a period of at least 10 years and has the prospective
30 financial capacity to meet its current and future
31 obligations to the Fund, and that the actuarial soundness
32 of the Fund may be reasonably expected to be unimpaired
33 by approval of participation by the applicant.
34 The Board shall notify the applicant of its findings
-39- LRB9001767EGfgccr6
1 within 90 days after receiving the application, and if the
2 Board approves the application, participation by the
3 applicant shall commence on the effective date specified by
4 the Board.
5 (b) The following participating instrumentalities, so
6 long as they meet the requirements of Section 7-108 and the
7 area served by them or within their jurisdiction is not
8 located entirely within a municipality having more than one
9 million inhabitants, may be included hereunder:
10 i. Township School District Trustees.
11 ii. Multiple County and Consolidated Health
12 Departments created under Division 5-25 of the Counties
13 Code or its predecessor law.
14 iii. Public Building Commissions created under the
15 Public Building Commission Act, and located in counties
16 of less than 1,000,000 inhabitants.
17 iv. A multitype, consolidated or cooperative
18 library system created under the Illinois Library System
19 Act. Any library system created under the Illinois
20 Library System Act that has one or more predecessors that
21 participated in the Fund may participate in the Fund upon
22 application. The Board shall establish procedures for
23 implementing the transfer of rights and obligations from
24 the predecessor system to the successor system.
25 v. Regional Planning Commissions created under
26 Division 5-14 of the Counties Code or its predecessor
27 law.
28 vi. Local Public Housing Authorities created under
29 the Housing Authorities Act, located in counties of less
30 than 1,000,000 inhabitants.
31 vii. Illinois Municipal League.
32 viii. Northeastern Illinois Metropolitan Area
33 Planning Commission.
34 ix. Southwestern Illinois Metropolitan Area
35 Planning Commission.
-40- LRB9001767EGfgccr6
1 x. Illinois Association of Park Districts.
2 xi. Illinois Supervisors, County Commissioners and
3 Superintendents of Highways Association.
4 xii. Tri-City Regional Port District.
5 xiii. An association, or not-for-profit
6 corporation, membership in which is authorized under
7 Section 85-15 of the Township Code.
8 xiv. Drainage Districts operating under the
9 Illinois Drainage Code.
10 xv. Local mass transit districts created under the
11 Local Mass Transit District Act.
12 xvi. Soil and water conservation districts created
13 under the Soil and Water Conservation Districts Law.
14 xvii. Commissions created to provide water supply
15 or sewer services or both under Division 135 or Division
16 136 of Article 11 of the Illinois Municipal Code.
17 xviii. Public water districts created under the
18 Public Water District Act.
19 xix. Veterans Assistance Commissions established
20 under Section 9 of the Military Veterans Assistance Act
21 that serve counties with a population of less than
22 1,000,000.
23 xx. The governing body of an entity, other than a
24 vocational education cooperative, created under an
25 intergovernmental cooperative agreement established
26 between participating municipalities under the
27 Intergovernmental Cooperation Act, which by the terms of
28 the agreement is the employer of the persons performing
29 services under the agreement under the usual common law
30 rules determining the employer-employee relationship.
31 The governing body of such an intergovernmental
32 cooperative entity established prior to July 1, 1988 may
33 make participation retroactive to the effective date of
34 the agreement and, if so, the effective date of
35 participation shall be the date the required application
-41- LRB9001767EGfgccr6
1 is filed with the fund. If any such entity is unable to
2 pay the required employer contributions to the fund, then
3 the participating municipalities shall make payment of
4 the required contributions and the payments shall be
5 allocated as provided in the agreement or, if not so
6 provided, equally among them.
7 xxi. The Illinois Municipal Electric Agency.
8 xxii. The Waukegan Port District.
9 xxiii. The Fox Waterway Agency created under the
10 Fox Waterway Agency Act.
11 (c) The governing boards of special education joint
12 agreements created under Section 10-22.31 of the School Code
13 without designation of an administrative district, shall be
14 included within and be subject to this Article as
15 participating instrumentalities when the joint agreement
16 becomes effective. However, the governing board of any such
17 special education joint agreement in effect before September
18 5, 1975 shall not be subject to this Article unless the joint
19 agreement is modified by the school districts to provide that
20 the governing board is subject to this Article, except as
21 otherwise provided by this Section.
22 The governing board of the Special Education District of
23 Lake County shall become subject to this Article as a
24 participating instrumentality on July 1, 1997.
25 Notwithstanding subdivision (a)1 of Section 7-139, on the
26 effective date of participation, employees of the governing
27 board of the Special Education District of Lake County shall
28 receive creditable service for their prior service with that
29 employer, up to a maximum of 5 years, without any employee
30 contribution. Employees may establish creditable service for
31 the remainder of their prior service with that employer, if
32 any, by applying in writing and paying an employee
33 contribution in an amount determined by the Fund, based on
34 the employee contribution rates in effect at the time of
35 application for the creditable service and the employee's
-42- LRB9001767EGfgccr6
1 salary rate on the effective date of participation for that
2 employer, plus interest at the effective rate from the date
3 of the prior service to the date of payment. Application for
4 this creditable service must be made before July 1, 1998; the
5 payment may be made at any time while the employee is still
6 in service. The employer may elect to make the required
7 contribution on behalf of the employee.
8 The governing board of a special education joint
9 agreement created under Section 10-22.31 of the School Code
10 for which an administrative district has been designated, if
11 there are employees of the cooperative educational entity who
12 are not employees of the administrative district, may elect
13 to participate in the Fund and be included within this
14 Article as a participating instrumentality, subject to such
15 application procedures and rules as the Board may prescribe.
16 The Boards of Control of cooperative or joint educational
17 programs or projects created and administered under Section
18 3-15.14 of the School Code, whether or not the Boards act as
19 their own administrative district, shall be included within
20 and be subject to this Article as participating
21 instrumentalities when the agreement establishing the
22 cooperative or joint educational program or project becomes
23 effective.
24 The governing board of a special education joint
25 agreement entered into after June 30, 1984 and prior to
26 September 17, 1985 which provides for representation on the
27 governing board by less than all the participating districts
28 shall be included within and subject to this Article as a
29 participating instrumentality. Such participation shall be
30 effective as of the date the joint agreement becomes
31 effective.
32 The governing boards of educational service centers
33 established under Section 2-3.62 of the School Code shall be
34 included within and subject to this Article as participating
35 instrumentalities. The governing boards of vocational
-43- LRB9001767EGfgccr6
1 education cooperative agreements created under the
2 Intergovernmental Cooperation Act and approved by the State
3 Board of Education shall be included within and be subject to
4 this Article as participating instrumentalities. If any such
5 governing boards or boards of control are unable to pay the
6 required employer contributions to the fund, then the school
7 districts served by such boards shall make payment of
8 required contributions as provided in Section 7-172. The
9 payments shall be allocated among the several school
10 districts in proportion to the number of students in average
11 daily attendance for the last full school year for each
12 district in relation to the total number of students in
13 average attendance for such period for all districts served.
14 If such educational service centers, vocational education
15 cooperatives or cooperative or joint educational programs or
16 projects created and administered under Section 3-15.14 of
17 the School Code are dissolved, the assets and obligations
18 shall be distributed among the districts in the same
19 proportions unless otherwise provided.
20 (d) The governing boards of special recreation joint
21 agreements created under Section 8-10b of the Park District
22 Code, operating without designation of an administrative
23 district or an administrative municipality appointed to
24 administer the program operating under the authority of such
25 joint agreement shall be included within and be subject to
26 this Article as participating instrumentalities when the
27 joint agreement becomes effective. However, the governing
28 board of any such special recreation joint agreement in
29 effect before January 1, 1980 shall not be subject to this
30 Article unless the joint agreement is modified, by the
31 districts and municipalities which are parties to the
32 agreement, to provide that the governing board is subject to
33 this Article.
34 If the Board returns any employer and employee
35 contributions to any employer which erroneously submitted
-44- LRB9001767EGfgccr6
1 such contributions on behalf of a special recreation joint
2 agreement, the Board shall include interest computed from the
3 end of each year to the date of payment, not compounded, at
4 the rate of 7% per annum.
5 (e) Each multi-township assessment district, the board
6 of trustees of which has adopted this Article by ordinance
7 prior to April 1, 1982, shall be a participating
8 instrumentality included within and subject to this Article
9 effective December 1, 1981. The contributions required under
10 Section 7-172 shall be included in the budget prepared under
11 and allocated in accordance with Section 2-30 of the Property
12 Tax Code.
13 (f) Beginning January 1, 1992, each prospective
14 participating municipality or participating instrumentality
15 shall pay to the Fund the cost, as determined by the Board,
16 of a study prepared by the Fund or its actuary, detailing the
17 prospective costs of participation in the Fund to be expected
18 by the municipality or instrumentality.
19 (Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.)
20 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
21 Sec. 7-171. Finance; taxes.
22 (a) Each municipality other than a school district shall
23 appropriate an amount sufficient to provide for the current
24 municipality contributions required by Section 7-172 of this
25 Article, for the fiscal year for which the appropriation is
26 made and all amounts due for municipal contributions for
27 previous years. Those municipalities which have been assessed
28 an annual amount to amortize its unfunded obligation, as
29 provided in subparagraph 5 of paragraph (a) of Section 7-172
30 of this Article, shall include in the appropriation an amount
31 sufficient to pay the amount assessed. The appropriation
32 shall be based upon an estimate of assets available for
33 municipality contributions and liabilities therefor for the
34 fiscal year for which appropriations are to be made,
-45- LRB9001767EGfgccr6
1 including funds available from levies for this purpose in
2 prior years.
3 (b) For the purpose of providing monies for municipality
4 contributions, beginning for the year in which a municipality
5 is included in this fund:
6 (1) A municipality other than a school district may
7 levy a tax which shall not exceed the amount appropriated
8 for municipality contributions.
9 (2) A school district may levy a tax in an amount
10 reasonably calculated at the time of the levy to provide
11 for the municipality contributions required under Section
12 7-172 of this Article for the fiscal years for which
13 revenues from the levy will be received and all amounts
14 due for municipal contributions for previous years. Any
15 levy adopted before the effective date of this amendatory
16 Act of 1995 by a school district shall be considered
17 valid and authorized to the extent that the amount was
18 reasonably calculated at the time of the levy to provide
19 for the municipality contributions required under Section
20 7-172 for the fiscal years for which revenues from the
21 levy will be received and all amounts due for municipal
22 contributions for previous years. In no event shall a
23 budget adopted by a school district limit a levy of that
24 school district adopted under this Section.
25 (c) Any county which is a part of an educational service
26 region comprised of two or more counties formed under Section
27 3A of The School Code may include in its appropriation an
28 amount sufficient to provide its proportionate share of the
29 municipality contributions of the region. The tax levy
30 authorized by this Section may include an amount necessary to
31 provide monies for this contribution.
32 (d) Any county that is a part of a multiple-county
33 health department or consolidated health department which is
34 formed under "An Act in relation to the establishment and
35 maintenance of county and multiple-county public health
-46- LRB9001767EGfgccr6
1 departments", approved July 9, 1943, as amended, and which is
2 a participating instrumentality may include in the county's
3 appropriation an amount sufficient to provide its
4 proportionate share of municipality contributions of the
5 department. The tax levy authorized by this Section may
6 include the amount necessary to provide monies for this
7 contribution.
8 (d-5) A school district participating in a special
9 education joint agreement created under Section 10-22.31 of
10 the School Code that is a participating instrumentality may
11 include in the school district's tax levy under this Section
12 an amount sufficient to provide its proportionate share of
13 the municipality contributions for current and prior service
14 by employees of the participating instrumentality created
15 under the joint agreement.
16 (e) Such tax shall be levied and collected in like
17 manner, with the general taxes of the municipality and shall
18 be in addition to all other taxes which the municipality is
19 now or may hereafter be authorized to levy upon all taxable
20 property therein, and shall be exclusive of and in addition
21 to the amount of tax levied for general purposes under
22 Section 8-3-1 of the "Illinois Municipal Code", approved May
23 29, 1961, as amended, or under any other law or laws which
24 may limit the amount of tax which the municipality may levy
25 for general purposes. The tax may be levied by the governing
26 body of the municipality without being authorized as being
27 additional to all other taxes by a vote of the people of the
28 municipality.
29 (f) The county clerk of the county in which any such
30 municipality is located, in reducing tax levies shall not
31 consider any such tax as a part of the general tax levy for
32 municipality purposes, and shall not include the same in the
33 limitation of any other tax rate which may be extended.
34 (g) The amount of the tax to be levied in any year
35 shall, within the limits herein prescribed, be determined by
-47- LRB9001767EGfgccr6
1 the governing body of the respective municipality.
2 (h) The revenue derived from any such tax levy shall be
3 used only for the purposes specified in this Article, and, as
4 collected, shall be paid to the treasurer of the municipality
5 levying the tax. Monies received by a county treasurer for
6 use in making contributions to a consolidated educational
7 service region for its municipality contributions shall be
8 held by him for that purpose and paid to the region in the
9 same manner as other monies appropriated for the expense of
10 the region.
11 (Source: P.A. 89-329, eff. 8-17-95.)
12 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
13 Sec. 8-138. Minimum annuities - Additional provisions.
14 (a) An employee who withdraws after age 65 or more with
15 at least 20 years of service, for whom the amount of age and
16 service and prior service annuity combined is less than the
17 amount stated in this Section, shall from the date of
18 withdrawal, instead of all annuities otherwise provided, be
19 entitled to receive an annuity for life of $150 a year, plus
20 1 1/2% for each year of service, to and including 20 years,
21 and 1 2/3% for each year of service over 20 years, of his
22 highest average annual salary for any 4 consecutive years
23 within the last 10 years of service immediately preceding the
24 date of withdrawal.
25 An employee who withdraws after 20 or more years of
26 service, before age 65, shall be entitled to such annuity, to
27 begin not earlier than upon attained age of 55 years if under
28 such age at withdrawal, reduced by 2% for each full year or
29 fractional part thereof that his attained age is less than
30 65, plus an additional 2% reduction for each full year or
31 fractional part thereof that his attained age when annuity is
32 to begin is less than 60 so that the total reduction at age
33 55 shall be 30%.
34 (b) An employee who withdraws after July 1, 1957, at age
-48- LRB9001767EGfgccr6
1 60 or over, with 20 or more years of service, for whom the
2 age and service and prior service annuity combined, is less
3 than the amount stated in this paragraph, shall, from the
4 date of withdrawal, instead of such annuities, be entitled to
5 receive an annuity for life equal to 1 2/3% for each year of
6 service, of the highest average annual salary for any 5
7 consecutive years within the last 10 years of service
8 immediately preceding the date of withdrawal; provided, that
9 in the case of any employee who withdraws on or after July 1,
10 1971, such employee age 60 or over with 20 or more years of
11 service, shall receive an annuity for life equal to 1.67% for
12 each of the first 10 years of service; 1.90% for each of the
13 next 10 years of service; 2.10% for each year of service in
14 excess of 20 but not exceeding 30; and 2.30% for each year of
15 service in excess of 30, based on the highest average annual
16 salary for any 4 consecutive years within the last 10 years
17 of service immediately preceding the date of withdrawal.
18 An employee who withdraws after July 1, 1957 and before
19 January 1, 1988, with 20 or more years of service, before age
20 60 years is entitled to annuity, to begin not earlier than
21 upon attained age of 55 years, if under such age at
22 withdrawal, as computed in the last preceding paragraph,
23 reduced 0.25% for each full month or fractional part thereof
24 that his attained age when annuity is to begin is less than
25 60 if the employee was born before January 1, 1936, or 0.5%
26 for each such month if the employee was born on or after
27 January 1, 1936.
28 Any employee born before January 1, 1936, who withdraws
29 with 20 or more years of service, and any employee with 20 or
30 more years of service who withdraws on or after January 1,
31 1988, may elect to receive, in lieu of any other employee
32 annuity provided in this Section, an annuity for life equal
33 to 1.80% for each of the first 10 years of service, 2.00% for
34 each of the next 10 years of service, 2.20% for each year of
35 service in excess of 20 but not exceeding 30, and 2.40% for
-49- LRB9001767EGfgccr6
1 each year of service in excess of 30, of the highest average
2 annual salary for any 4 consecutive years within the last 10
3 years of service immediately preceding the date of
4 withdrawal, to begin not earlier than upon attained age of 55
5 years, if under such age at withdrawal, reduced 0.25% for
6 each full month or fractional part thereof that his attained
7 age when annuity is to begin is less than 60; except that an
8 employee retiring on or after January 1, 1988, at age 55 or
9 over but less than age 60, having at least 35 years of
10 service, or an employee retiring on or after July 1, 1990, at
11 age 55 or over but less than age 60, having at least 30 years
12 of service, or an employee retiring on or after the effective
13 date of this amendatory Act of 1997, at age 55 or over but
14 less than age 60, having at least 25 years of service, shall
15 not be subject to the reduction in retirement annuity because
16 of retirement below age 60.
17 However, in the case of an employee who retired on or
18 after January 1, 1985 but before January 1, 1988, at age 55
19 or older and with at least 35 years of service, and who was
20 subject under this subsection (b) to the reduction in
21 retirement annuity because of retirement below age 60, that
22 reduction shall cease to be effective January 1, 1991, and
23 the retirement annuity shall be recalculated accordingly.
24 Any employee who withdraws on or after July 1, 1990, with
25 20 or more years of service, may elect to receive, in lieu of
26 any other employee annuity provided in this Section, an
27 annuity for life equal to 2.20% for each year of service of
28 the highest average annual salary for any 4 consecutive years
29 within the last 10 years of service immediately preceding the
30 date of withdrawal, to begin not earlier than upon attained
31 age of 55 years, if under such age at withdrawal, reduced
32 0.25% for each full month or fractional part thereof that his
33 attained age when annuity is to begin is less than 60; except
34 that an employee retiring at age 55 or over but less than age
35 60, having at least 30 years of service, shall not be subject
-50- LRB9001767EGfgccr6
1 to the reduction in retirement annuity because of retirement
2 below age 60.
3 Any employee who withdraws on or after the effective date
4 of this amendatory Act of 1997 with 20 or more years of
5 service may elect to receive, in lieu of any other employee
6 annuity provided in this Section, an annuity for life equal
7 to 2.20%, for each year of service, of the highest average
8 annual salary for any 4 consecutive years within the last 10
9 years of service immediately preceding the date of
10 withdrawal, to begin not earlier than upon attainment of age
11 55 (age 50 if the employee has at least 30 years of service),
12 reduced 0.25% for each full month or remaining fractional
13 part thereof that the employee's attained age when annuity is
14 to begin is less than 60; except that an employee retiring at
15 age 50 or over with at least 30 years of service or at age 55
16 or over with at least 25 years of service shall not be
17 subject to the reduction in retirement annuity because of
18 retirement below age 60.
19 The maximum annuity payable under part (a) and (b) of
20 this Section shall not exceed 70% of highest average annual
21 salary in the case of an employee who withdraws prior to July
22 1, 1971, and 75% if withdrawal takes place on or after July
23 1, 1971. For the purpose of the minimum annuity provided in
24 this Section $1,500 is considered the minimum annual salary
25 for any year; and the maximum annual salary for the
26 computation of such annuity is $4,800 for any year before
27 1953, $6000 for the years 1953 to 1956, inclusive, and the
28 actual annual salary, as salary is defined in this Article,
29 for any year thereafter.
30 To preserve rights existing on December 31, 1959, for
31 participants and contributors on that date to the fund
32 created by the Court and Law Department Employees' Annuity
33 Act, who became participants in the fund provided for on
34 January 1, 1960, the maximum annual salary to be considered
35 for such persons for the years 1955 and 1956 is $7,500.
-51- LRB9001767EGfgccr6
1 (c) For an employee receiving disability benefit, his
2 salary for annuity purposes under paragraphs (a) and (b) of
3 this Section, for all periods of disability benefit
4 subsequent to the year 1956, is the amount on which his
5 disability benefit was based.
6 (d) An employee with 20 or more years of service, whose
7 entire disability benefit credit period expires before
8 attainment of age 55 while still disabled for service, is
9 entitled upon withdrawal to the larger of (1) the minimum
10 annuity provided above, assuming he is then age 55, and
11 reducing such annuity to its actuarial equivalent as of his
12 attained age on such date or (2) the annuity provided from
13 his age and service and prior service annuity credits.
14 (e) The minimum annuity provisions do not apply to any
15 former municipal employee receiving an annuity from the fund
16 who re-enters service as a municipal employee, unless he
17 renders at least 3 years of additional service after the date
18 of re-entry.
19 (f) An employee in service on July 1, 1947, or who
20 became a contributor after July 1, 1947 and before attainment
21 of age 70, who withdraws after age 65, with less than 20
22 years of service for whom the annuity has been fixed under
23 this Article shall, instead of the annuity so fixed, receive
24 an annuity as follows:
25 Such amount as he could have received had the accumulated
26 amounts for annuity been improved with interest at the
27 effective rate to the date of his withdrawal, or to
28 attainment of age 70, whichever is earlier, and had the city
29 contributed to such earlier date for age and service annuity
30 the amount that it would have contributed had he been under
31 age 65, after the date his annuity was fixed in accordance
32 with this Article, and assuming his annuity were computed
33 from such accumulations as of his age on such earlier date.
34 The annuity so computed shall not exceed the annuity which
35 would be payable under the other provisions of this Section
-52- LRB9001767EGfgccr6
1 if the employee was credited with 20 years of service and
2 would qualify for annuity thereunder.
3 (g) Instead of the annuity provided in this Article, an
4 employee having attained age 65 with at least 15 years of
5 service who withdraws from service on or after July 1, 1971
6 and whose annuity computed under other provisions of this
7 Article is less than the amount provided under this
8 paragraph, is entitled to a minimum annuity for life equal to
9 1% of the highest average annual salary, as salary is defined
10 and limited in this Section for any 4 consecutive years
11 within the last 10 years of service for each year of service,
12 plus the sum of $25 for each year of service. The annuity
13 shall not exceed 60% of such highest average annual salary.
14 (h) The minimum annuities provided under this Section
15 shall be paid in equal monthly installments.
16 (i) The amendatory provisions of part (b) and (g) of
17 this Section shall be effective July 1, 1971 and apply in the
18 case of every qualifying employee withdrawing on or after
19 July 1, 1971.
20 (j) The amendatory provisions of this amendatory Act of
21 1985 (P.A. 84-23) relating to the discount of annuity because
22 of retirement prior to attainment of age 60, and to the
23 retirement formula, for those born before January 1, 1936,
24 shall apply only to qualifying employees withdrawing on or
25 after July 18, 1985.
26 (k) Beginning on the effective date of this amendatory
27 Act of 1997 January 1, 1991, the minimum amount of employee's
28 annuity shall be $550 $350 per month for life for the
29 following classes of employees, without regard to the fact
30 that withdrawal occurred prior to the effective date of this
31 amendatory Act of 1997 January 1, 1991:
32 (1) any employee annuitant alive and receiving a
33 life annuity on the effective date of this amendatory Act
34 of 1997 January 1, 1991, except a reciprocal annuity;
35 (2) any employee annuitant alive and receiving a
-53- LRB9001767EGfgccr6
1 term annuity on the effective date of this amendatory Act
2 of 1997 January 1, 1991, except a reciprocal annuity;
3 (3) any employee annuitant alive and receiving a
4 reciprocal annuity on the effective date of this
5 amendatory Act of 1997 January 1, 1991, whose service in
6 this fund is at least 5 years;
7 (4) any employee annuitant withdrawing after age 60
8 on or after the effective date of this amendatory Act of
9 1997 January 1, 1991, with at least 10 years of service
10 in this fund.
11 The increases granted under items (1), (2) and (3) of
12 this subsection (k) shall not be limited by any other Section
13 of this Act.
14 (Source: P.A. 85-964; 86-1488.)
15 (40 ILCS 5/8-138.3 new)
16 Sec. 8-138.3. Early retirement incentive.
17 (a) To be eligible for the benefits provided in this
18 Section, an employee must:
19 (1) be a current contributor to the Fund who, on
20 November 1, 1997, is (i) in active payroll status as an
21 employee or (ii) receiving ordinary or duty disability
22 benefits under Section 8-160 or 8-161;
23 (2) have not previously retired under this Article;
24 (3) file with the Board before June 1, 1998, a
25 written application requesting the benefits provided in
26 this Section;
27 (4) withdraw from service on or after December 31,
28 1997 and on or before June 30, 1998; and
29 (5) by the date of withdrawal: (i) have attained
30 age 55 with at least 10 years of creditable service in
31 this Fund and a total of at least 15 years of creditable
32 service in one or more of the participating systems under
33 the Retirement Systems Reciprocal Act, without including
34 any creditable service established under this Section; or
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1 (ii) have attained age 50 with at least 10 years of
2 creditable service in this Fund and a total of at least
3 30 years of creditable service in one or more of the
4 participating systems under the Retirement Systems
5 Reciprocal Act, without including any creditable service
6 established under this Section.
7 A person is not eligible for the benefits provided in
8 this Section if the person (i) elects to receive the
9 alternative annuity for city officers under Section 8-243.2,
10 or (ii) elects to receive a retirement annuity calculated
11 under the alternative formula formerly set forth in Section
12 20-122.
13 (b) An eligible employee may establish up to 5 years of
14 creditable service under this Section, in increments of one
15 month, by making the contributions specified in subsection
16 (d). An eligible person must establish at least the amount
17 of creditable service necessary to bring his or her total
18 creditable service, including service in this Fund, service
19 established under this Section, and service in any of the
20 other participating systems under the Retirement Systems
21 Reciprocal Act, to a minimum of 20 years.
22 The creditable service under this Section may be used for
23 all purposes under this Article and the Retirement Systems
24 Reciprocal Act, except for the computation of average annual
25 salary and the determination of salary, earnings, or
26 compensation under this or any other Article of this Code.
27 (c) An eligible employee shall be entitled to have his
28 or her retirement annuity calculated in accordance with the
29 formula provided in Section 8-138, but with the following
30 exceptions:
31 (1) The annuity shall not be subject to reduction
32 because of withdrawal or commencement of the annuity
33 before attainment of age 60.
34 (2) The annuity shall be subject to a maximum of
35 80% of the employee's highest average annual salary for
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1 any 4 consecutive years within the last 10 years of
2 service, rather than the 75% maximum otherwise provided
3 in Section 8-138.
4 (d) For each month of creditable service established
5 under this Section, the employee must pay to the Fund an
6 employee contribution, to be calculated by the Fund, equal to
7 4.25% of the member's monthly salary rate on November 1,
8 1997. The employee may elect to pay the entire contribution
9 before the retirement annuity commences, or to have it
10 deducted from the annuity over a period not longer than 24
11 months. If the retired employee dies before the contribution
12 has been paid in full, the unpaid installments may be
13 deducted from any annuity or other benefit payable to the
14 employee's survivors.
15 All employee contributions paid under this Section shall
16 be deemed contributions made by employees for annuity
17 purposes under Section 8-173, and shall be made and credited
18 to a special reserve, without interest. Employee
19 contributions paid under this Section may be refunded under
20 the same terms and conditions as are applicable to other
21 employee contributions for retirement annuity.
22 (e) Notwithstanding Section 8-165, an annuitant who
23 reenters service under this Article after receiving a
24 retirement annuity based on benefits provided under this
25 Section thereby forfeits the right to continue to receive
26 those benefits, and shall have his or her retirement annuity
27 recalculated at the appropriate time without the benefits
28 provided in this Section.
29 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
30 Sec. 8-150.1. Minimum annuities for widows. The widow
31 (otherwise eligible for widow's annuity under other Sections
32 of this Article 8) of an employee hereinafter described, who
33 retires from service or dies while in the service subsequent
34 to the effective date of this amendatory provision, and for
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1 which widow the amount of widow's annuity and widow's prior
2 service annuity combined, fixed or provided for such widow
3 under other provisions of this Article is less than the
4 amount provided in this Section, shall, from and after the
5 date her otherwise provided annuity would begin, in lieu of
6 such otherwise provided widow's and widow's prior service
7 annuity, be entitled to the following indicated amount of
8 annuity:
9 (a) The widow of any employee who dies while in service
10 on or after the date on which he attains age 60 if the death
11 occurs before July 1, 1990, or on or after the date on which
12 he attains age 55 if the death occurs on or after July 1,
13 1990, with at least 20 years of service, or on or after the
14 date on which he attains age 50 if the death occurs on or
15 after the effective date of this amendatory Act of 1997 with
16 at least 30 years of service, shall be entitled to an annuity
17 equal to one-half of the amount of annuity which her deceased
18 husband would have been entitled to receive had he withdrawn
19 from the service on the day immediately preceding the date of
20 his death, conditional upon such widow having attained the
21 age of 60 or more years on such date if the death occurs
22 before July 1, 1990, or age 55 or more if the death occurs on
23 or after July 1, 1990. Except as provided in subsection (k),
24 this such amount of widow's annuity shall not, however,
25 exceed the sum of $500 a month if the employee's death in
26 service occurs before January 23, 1987. The widow's annuity
27 shall not be limited to a maximum dollar amount if the
28 employee's death in service occurs on or after January 23,
29 1987.
30 If the employee dies in service before July 1, 1990, and
31 if such widow of such described employee shall not be 60 or
32 more years of age on such date of death, the amount provided
33 in the immediately preceding paragraph for a widow 60 or more
34 years of age, shall, in the case of such younger widow, be
35 reduced by 0.25% for each month that her then attained age is
-57- LRB9001767EGfgccr6
1 less than 60 years if the employee was born before January 1,
2 1936 or dies in service on or after January 1, 1988, or by
3 0.5% for each month that her then attained age is less than
4 60 years if the employee was born on or after July 1, 1936
5 and dies in service before January 1, 1988.
6 If the employee dies in service on or after July 1, 1990,
7 and if the widow of the employee has not attained age 55 on
8 or before the employee's date of death, the amount otherwise
9 provided in this subsection (a) shall be reduced by 0.25% for
10 each month that her then attained age is less than 55 years.
11 (b) The widow of any employee who dies subsequent to the
12 date of his retirement on annuity, and who so retired on or
13 after the date on which he attained the age of 60 or more
14 years if retirement occurs before July 1, 1990, or on or
15 after the date on which he attained age 55 if retirement
16 occurs on or after July 1, 1990, with at least 20 years of
17 service, or on or after the date on which he attained age 50
18 if the retirement occurs on or after the effective date of
19 this amendatory Act of 1997 with at least 30 years of
20 service, shall be entitled to an annuity equal to one-half of
21 the amount of annuity which her deceased husband received as
22 of the date of his retirement on annuity, conditional upon
23 such widow having attained the age of 60 or more years on the
24 date of her husband's retirement on annuity if retirement
25 occurs before July 1, 1990, or age 55 or more if retirement
26 occurs on or after July 1, 1990. Except as provided in
27 subsection (k), this such amount of widow's annuity shall
28 not, however, exceed the sum of $500 a month if the
29 employee's death occurs before January 23, 1987. The widow's
30 annuity shall not be limited to a maximum dollar amount if
31 the employee's death occurs on or after January 23, 1987,
32 regardless of the date of retirement; provided that, if
33 retirement was before January 23, 1987, the employee or
34 eligible spouse repays the excess spouse refund with interest
35 at the effective rate from the date of refund to the date of
-58- LRB9001767EGfgccr6
1 repayment.
2 If the date of the employee's retirement on annuity is
3 before July 1, 1990, and if such widow of such described
4 employee shall not have attained such age of 60 or more years
5 on such date of her husband's retirement on annuity, the
6 amount provided in the immediately preceding paragraph for a
7 widow 60 or more years of age on the date of her husband's
8 retirement on annuity, shall, in the case of such then
9 younger widow, be reduced by 0.25% for each month that her
10 then attained age was less than 60 years if the employee was
11 born before January 1, 1936 or withdraws from service on or
12 after January 1, 1988, or by 0.5% for each month that her
13 then attained age is less than 60 years if the employee was
14 born on or after January 1, 1936 and withdraws from service
15 before January 1, 1988.
16 If the date of the employee's retirement on annuity is on
17 or after July 1, 1990, and if the widow of the employee has
18 not attained age 55 by the date of the employee's retirement
19 on annuity, the amount otherwise provided in this subsection
20 (b) shall be reduced by 0.25% for each month that her then
21 attained age is less than 55 years.
22 (c) The foregoing provisions relating to minimum
23 annuities for widows shall not apply to the widow of any
24 former municipal employee receiving an annuity from the fund
25 on August 9, 1965 or on the effective date of this amendatory
26 provision, who re-enters service as a municipal employee,
27 unless such employee renders at least 3 years of additional
28 service after the date of re-entry.
29 (d) In computing the amount of annuity which the husband
30 specified in the foregoing paragraphs (a) and (b) of this
31 Section would have been entitled to receive, or received,
32 such amount shall be the annuity to which such husband would
33 have been, or was entitled, before reduction in the amount of
34 his annuity for the purposes of the voluntary optional
35 reversionary annuity provided for in Sec. 8-139 of this
-59- LRB9001767EGfgccr6
1 Article, if such option was elected.
2 (e) (Blank). The amendatory provisions of part (a) and
3 (b) of this Section (increasing the maximum from $300 to $400
4 a month) shall be effective as of July 1, 1971, and apply in
5 the case of every qualifying widow whose husband dies while
6 in service on or after July 1, 1971 or withdraws and enters
7 on annuity on or after July 1, 1971.
8 (f) (Blank). The amendments of part (a) and (b) of this
9 Section by this amendatory Act of 1983 (increasing the
10 maximum from $400 to $500 a month) shall be effective as of
11 January 1, 1984 and shall apply in the case of every
12 qualifying widow whose husband dies while in the service on
13 or after January 1, 1984, or withdraws and enters on annuity
14 on or after January 1, 1984.
15 (g) The amendatory provisions of this amendatory Act of
16 1985 relating to annuity discount because of age for widows
17 of employees born before January 1, 1936, shall apply only to
18 qualifying widows of employees withdrawing or dying in
19 service on or after July 18, 1985.
20 (h) Beginning on the effective date of this amendatory
21 Act of 1997 January 1, 1991, the minimum amount of widow's
22 annuity shall be $500 $300 per month for life for the
23 following classes of widows, without regard to the fact that
24 the death of the employee occurred prior to the effective
25 date of this amendatory Act of 1997 January 1, 1991:
26 (1) any widow annuitant alive and receiving a life
27 annuity on the effective date of this amendatory Act of
28 1997 January 1, 1991, except a reciprocal annuity;
29 (2) any widow annuitant alive and receiving a term
30 annuity on the effective date of this amendatory Act of
31 1997 January 1, 1991, except a reciprocal annuity;
32 (3) any widow annuitant alive and receiving a
33 reciprocal annuity on the effective date of this
34 amendatory Act of 1997 January 1, 1991, whose employee
35 spouse's service in this fund was at least 5 years;
-60- LRB9001767EGfgccr6
1 (4) the widow of an employee with at least 10 years
2 of service in this fund who dies after retirement, if the
3 retirement occurred prior to the effective date of this
4 amendatory Act of 1997 January 1, 1991;
5 (5) the widow of an employee with at least 10 years
6 of service in this fund who dies after retirement, if
7 withdrawal occurs on or after the effective date of this
8 amendatory Act of 1997 January 1, 1991;
9 (6) the widow of an employee who dies in service
10 with at least 5 years of service in this fund, if the
11 death in service occurs on or after the effective date of
12 this amendatory Act of 1997 January 1, 1991.
13 The increases granted under items (1), (2), (3) and (4)
14 of this subsection (h) shall not be limited by any other
15 Section of this Act.
16 (i) The widow of an employee who retired or died in
17 service on or after January 1, 1985 and before July 1, 1990,
18 at age 55 or older, and with at least 35 years of service
19 credit, shall be entitled to have her widow's annuity
20 increased, effective January 1, 1991, to an amount equal to
21 50% of the retirement annuity that the deceased employee
22 received on the date of retirement, or would have been
23 eligible to receive if he had retired on the day preceding
24 the date of his death in service, provided that if the widow
25 had not attained age 60 by the date of the employee's
26 retirement or death in service, the amount of the annuity
27 shall be reduced by 0.25% for each month that her then
28 attained age was less than age 60 if the employee's
29 retirement or death in service occurred on or after January
30 1, 1988, or by 0.5% for each month that her attained age is
31 less than age 60 if the employee's retirement or death in
32 service occurred prior to January 1, 1988. However, in cases
33 where a refund of excess contributions for widow's annuity
34 has been paid by the Fund, the increase in benefit provided
35 by this subsection (i) shall be contingent upon repayment of
-61- LRB9001767EGfgccr6
1 the refund to the Fund with interest at the effective rate
2 from the date of refund to the date of payment.
3 (j) If a deceased employee is receiving a retirement
4 annuity at the time of death and that death occurs on or
5 after the effective date of this amendatory Act of 1997, the
6 widow may elect to receive, in lieu of any other annuity
7 provided under this Article, 50% of the deceased employee's
8 retirement annuity at the time of death reduced by 0.25% for
9 each month that the widow's age on the date of death is less
10 than 55. However, in cases where a refund of excess
11 contributions for widow's annuity has been paid by the Fund,
12 the benefit provided by this subsection (j) is contingent
13 upon repayment of the refund to the Fund with interest at the
14 effective rate from the date of refund to the date of
15 payment.
16 (k) For widows of employees who died before January 23,
17 1987 after retirement on annuity or in service, the maximum
18 dollar amount limitation on widow's annuity shall cease to
19 apply, beginning with the first annuity payment after the
20 effective date of this amendatory Act of 1997; except that if
21 a refund of excess contributions for widow's annuity has been
22 paid by the Fund, the increase resulting from this subsection
23 (k) shall not begin before the refund has been repaid to the
24 Fund, together with interest at the effective rate from the
25 date of the refund to the date of repayment.
26 (Source: P.A. 85-964; 86-1488.)
27 (40 ILCS 5/8-154) (from Ch. 108 1/2, par. 8-154)
28 Sec. 8-154. Maximum annuities.
29 (1) The annuities to an employee and his widow, are
30 subject to the following limitations:
31 (a) No age and service annuity, or age and service and
32 prior service annuity combined, in excess of 60% of the
33 highest salary of an employee, and no minimum annuity in
34 excess of the amount provided in Section 8-138 or set forth
-62- LRB9001767EGfgccr6
1 as a maximum in any other Section of this Code relating to
2 minimum annuities for municipal employees included under
3 Article 8 of this Code shall be payable to any employee -
4 excepting to the extent that the annuity may exceed such per
5 cent or amount under Section 8-137 and 8-137.1 providing for
6 automatic increases after retirement.
7 (b) No annuity in excess of 60% of such highest salary
8 shall be payable to a widow if death of an employee results
9 solely from injury incurred in the performance of an act of
10 duty; provided, the annuity for a widow, or a widow's annuity
11 plus compensation annuity, shall not exceed $500 per month if
12 the employee's death occurs before January 23, 1987, except
13 as provided in paragraph (d). The widow's annuity, or a
14 widow's annuity plus compensation annuity, shall not be
15 limited to a maximum dollar amount if the employee's death
16 occurs on or after January 23, 1987, regardless of the date
17 of injury.
18 (c) No annuity in excess of 50% of such highest salary
19 shall be payable to a widow in the case of death resulting in
20 whole or in part from any cause other than injury incurred in
21 the performance of an act of duty; provided, the annuity for
22 a widow, or a widow's annuity plus supplemental annuity,
23 shall not exceed $500 per month if the employee's death
24 occurs before January 23, 1987, except as provided in
25 paragraph (d). The widow's annuity, or widow's annuity plus
26 supplemental annuity, shall not be limited to a maximum
27 dollar amount if the employee's death occurs on or after
28 January 23, 1987.
29 (d) For widows of employees who died before January 23,
30 1987 after retirement on annuity or in service, the maximum
31 dollar amount limitation on widow's annuity (or widow's
32 annuity plus compensation or supplemental annuity) shall
33 cease to apply, beginning with the first annuity payment
34 after the effective date of this amendatory Act of 1997;
35 except that if a refund of excess contributions for widow's
-63- LRB9001767EGfgccr6
1 annuity has been paid by the Fund, the increase resulting
2 from this paragraph (d) shall not begin before the refund has
3 been repaid to the Fund, together with interest at the
4 effective rate from the date of the refund to the date of
5 repayment.
6 (2) If when an employee's annuity is fixed, the amount
7 accumulated to his credit therefor, as of his age at such
8 time exceeds the amount necessary for the annuity, all
9 contributions for annuity purposes after the date on which
10 the accumulated sums to the credit of such employee for
11 annuity purposes would first have provided such employee with
12 such amount of annuity as of his age at such date shall be
13 refunded when he enters upon annuity, with interest at the
14 effective rate.
15 If the aforesaid annuity so fixed is not payable, but a
16 larger amount is payable as a minimum annuity, such refund
17 shall be reduced by 5/12 of the value of the difference in
18 the annuity payable and the amount theretofore fixed, as the
19 value of such difference may be at the date and as of the age
20 of the employee when his annuity is granted; provided that if
21 the employee was credited with city contributions for any
22 period for which he made no contribution, or a contribution
23 of less than 3 1/4% of salary, a further reduction in the
24 refund shall be made by the equivalent of what he would have
25 contributed during such period less his actual contributions,
26 had the rate of employee contributions in force on the
27 effective date been in effect throughout his entire service,
28 prior to such effective date, with interest computed on such
29 amounts at the effective rate.
30 (3) If at the time the annuity for a wife is fixed, the
31 employee's credit for a widow's annuity exceeds that
32 necessary to provide such an annuity equal to the maximum
33 annuity provided in this section, all employee contributions
34 for such annuity, for service after the date on which the
35 accumulated sums to the credit of such employee for the
-64- LRB9001767EGfgccr6
1 purpose of providing widow's annuity would first have
2 provided such widow with such amount of annuity, if such
3 annuity were computed on the basis of the Combined Annuity
4 Mortality Table with interest at 3% per annum with ages at
5 date of determination taken as specified in this Article,
6 shall be refunded to the employee, with interest at the
7 effective rate. If the employee was credited with city
8 contributions for widow's annuity for any service prior to
9 the effective date, any amount so refundable, shall be
10 reduced by the equivalent of what he would have contributed,
11 had his contributions for widow's annuity been made at the
12 rate of 1% throughout his entire service, prior to the
13 effective date, with interest on such amounts at the
14 effective rate.
15 (4) If at the death of an employee prior to age 65, the
16 credit for widow's annuity exceeds that necessary to provide
17 the maximum annuity prescribed in this section, all employee
18 contributions for annuity purposes, for service after the
19 date on which the accumulated sums to the credit of such
20 employee for the purpose of providing such maximum annuity
21 for the widow would first have provided such widow with such
22 amount of annuity, if such annuity were computed on the basis
23 of the Combined Annuity Mortality Table with interest at 3%
24 per annum with ages at date of determination taken as
25 specified in this Article, shall be refunded to the widow,
26 with interest at the effective rate.
27 If the employee was credited with city contributions for
28 any period of service during which he was not required to
29 make a contribution, or made a contribution of less than 3
30 1/4% of salary, the refund shall be reduced by the equivalent
31 of the contributions he would have made during such period,
32 less any amount he contributed, had the rate of employee
33 contributions in effect on the effective date been in force
34 throughout his entire service, prior to the effective date,
35 with interest on such amounts at the effective rate; provided
-65- LRB9001767EGfgccr6
1 that if the employee was credited with city contributions for
2 widow's annuity for any service prior to the effective date,
3 any amount so refundable shall be further reduced by the
4 equivalent of what would have contributed had he made
5 contributions for widow's annuity at the rate of 1%
6 throughout his entire service; prior to such effective date,
7 with interest on such amounts at the effective rate.
8 (d) The amendatory provisions of part 1, paragraphs (b)
9 and (c) of this Section (increasing the maximum from $300 to
10 $400 a month) shall be effective as of July 1, 1971, and
11 apply in the case of every qualifying widow whose husband
12 dies while in service on or after July 1, 1971 or withdraws
13 and enters on annuity on or after July 1, 1971.
14 (e) The amendments of part 1, paragraphs (b) and (c) of
15 this Section by this amendatory Act of 1983 (increasing the
16 maximum from $400 to $500 a month) shall be effective as of
17 January 1, 1984 and apply in the case of every qualifying
18 widow whose husband dies in the service on or after January
19 1, 1984 or withdraws and enters on annuity on or after
20 January 1, 1984.
21 (Source: P.A. 85-964.)
22 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
23 Sec. 8-159. Amount of child's annuity. Beginning on the
24 effective date of this amendatory Act of 1997 January 1,
25 1988, the amount of a child's annuity shall be $220 $120 per
26 month for each child while the spouse of the deceased
27 employee parent survives, and $250 $150 per month for each
28 child when no such spouse survives, and shall be subject to
29 the following limitations:
30 (1) If the combined annuities for the widow and children
31 of an employee whose death resulted from injury incurred in
32 the performance of duty, or for the children where a widow
33 does not exist, exceed 70% of the employee's final monthly
34 salary, the annuity for each child shall be reduced pro rata
-66- LRB9001767EGfgccr6
1 so that the combined annuities for the family shall not
2 exceed such limitation.
3 (2) For the family of an employee whose death is the
4 result of any cause other than injury incurred in the
5 performance of duty, in which the combined annuities for the
6 family exceed 60% of the employee's final monthly salary, the
7 annuity for each child shall be reduced pro rata so that the
8 combined annuities for the family shall not exceed such
9 limitation.
10 (3) The increase in child's annuity provided by this
11 amendatory Act of 1997 1987 shall apply to all child's
12 annuities being paid on or after the effective date of this
13 amendatory Act of 1997. January 1, 1988, subject to The
14 above limitations on the combined annuities for a family in
15 parts (1) and (2) of this Section do not apply to families of
16 employees who died before the effective date of this
17 amendatory Act of 1997.
18 (4) The amendments to parts (1) and (2) of this Section
19 made by Public Act 84-1472 (eliminating the further
20 limitation that the monthly combined family amount shall not
21 exceed $500 plus 10% of the employee's final monthly salary)
22 shall apply in the case of every qualifying child whose
23 employee parent dies in the service or enters on annuity on
24 or after January 23, 1987.
25 (Source: P.A. 85-964.)
26 (40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
27 Sec. 8-226. Computation of service. In computing the
28 term of service of an employee prior to the effective date,
29 the entire period beginning on the date he was first
30 appointed and ending on the day before the effective date,
31 except any intervening period during which he was separated
32 by withdrawal from service, shall be counted for all purposes
33 of this Article, except that for any employee who was not in
34 service on the day before the effective date, service
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1 rendered prior to such date shall not be considered for the
2 purposes of Section 8-138.
3 For a person employed by an employer for whom this
4 Article was in effect prior to January 1, 1950, from whose
5 salary deductions are first made under this Article after
6 December 31, 1949, any period of service rendered prior to
7 the effective date, unless he was in service on the day
8 before the effective date, shall not be counted as service.
9 The time a person was an employee of any territory
10 annexed to the city prior to the effective date shall be
11 counted as a period of service.
12 In computing the term of service of any employee
13 subsequent to the day before the effective date, the
14 following periods shall be counted as periods of service for
15 age and service, widow's and child's annuity purposes:
16 (a) The time during which he performed the duties
17 of his position;
18 (b) Vacations, leaves of absence with whole or part
19 pay, and leaves of absence without pay not longer than 90
20 days;
21 (c) Leaves of absence without pay during which a
22 participant is employed full-time by a local labor
23 organization that represents municipal employees,
24 provided that (1) the participant continues to make
25 employee contributions to the Fund as though he were an
26 active employee, based on the regular salary rate
27 received by the participant for his municipal employment
28 immediately prior to such leave of absence (and in the
29 case of such employment prior to December 9, 1987, pays
30 to the Fund an amount equal to the employee contributions
31 for such employment plus regular interest thereon as
32 calculated by the board), and based on his current salary
33 with such labor organization after the effective date of
34 this amendatory Act of 1991, (2) after January 1, 1989
35 the participant, or the labor organization on the
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1 participant's behalf, makes contributions to the Fund as
2 though it were the employer, in the same amount and same
3 manner as specified under this Article, based on the
4 regular salary rate received by the participant for his
5 municipal employment immediately prior to such leave of
6 absence, and based on his current salary with such labor
7 organization after the effective date of this amendatory
8 Act of 1991, and (3) the participant does not receive
9 credit in any pension plan established by the local labor
10 organization based on his employment by the organization;
11 (d) Any period of disability for which he received
12 (i) a disability benefit under this Article, or (ii) a
13 temporary total disability benefit under the Workers'
14 Compensation Act if the disability results from a
15 condition commonly termed heart attack or stroke or any
16 other condition falling within the broad field of
17 coronary involvement or heart disease, or (iii) whole or
18 part pay;
19 (e) Any period for which contributions and service
20 credit have been transferred to this Fund under
21 subsection (d) of Section 9-121.1 or subsection (d) of
22 Section 12-127.1 of this Code.
23 For a person employed by an employer in which the 1921
24 Act was in effect prior to January 1, 1950, from whose salary
25 deductions are first made under the 1921 Act or this Article
26 after December 31, 1949, any period of service rendered
27 subsequent to the effective date and prior to the date he
28 became an employee and contributor, shall not be counted as a
29 period of service under this Article, except such period for
30 which he made payment as provided in Section 8-230 of this
31 Article, in which case such period shall be counted as a
32 period of service for all annuity purposes hereunder.
33 In computing the term of service of an employee
34 subsequent to the day before the effective date for ordinary
35 disability benefit purposes, all periods described in the
-69- LRB9001767EGfgccr6
1 preceding paragraph, except any such period for which he
2 receives ordinary disability benefit, shall be counted as
3 periods of service; provided, that for any person employed by
4 an employer in which this Article was in effect prior to
5 January 1, 1950, from whose salary deductions are first made
6 under this Article after December 31, 1949, any period of
7 service rendered subsequent to the effective date and prior
8 to the date he became an employee and contributor, shall not
9 be counted as a period of service for ordinary disability
10 benefit purposes, unless the person made payment for the
11 period as provided in Section 8-230 of this Article, in which
12 case the period shall be counted as a period of service for
13 ordinary disability purposes for periods of disability on or
14 after the effective date of this amendatory Act of 1997.
15 Overtime or extra service shall not be included in
16 computing any term of service. Not more than 1 year of
17 service shall be allowed for service rendered during any
18 calendar year.
19 (Source: P.A. 86-272; 86-1488.)
20 (40 ILCS 5/9-121.15 new)
21 Sec. 9-121.15. Transfer of credit from Article 14 system.
22 An employee shall be entitled to service credit in the Fund
23 for any creditable service transferred to this Fund from the
24 State Employees' Retirement System under Section 14-105.7 of
25 this Code. Credit under this Fund shall be granted upon
26 receipt by the Fund of the amounts required to be transferred
27 under Section 14-105.7; no additional contribution is
28 necessary.
29 (40 ILCS 5/9-220.1 new)
30 Sec. 9-220.1. Service of less than 15 days in one month.
31 A member of the General Assembly with service credit in the
32 Fund may establish service credit in the Fund for up to 24
33 months, during each of which he or she worked for at least
-70- LRB9001767EGfgccr6
1 one but fewer than 15 days, by purchasing service credit for
2 the number of days needed to bring the total of days worked
3 in each such month up to 15. To establish this credit, the
4 member must pay to the Fund before January 1, 1998 an amount
5 equal to (1) employee contributions based on the number of
6 days for which credit is being purchased, the rate of
7 compensation received by the applicant for the time actually
8 worked during that month, and the rate of contribution in
9 effect for the applicant during that month; plus (2) an
10 amount representing employer contributions, equal to the
11 amount specified in item (1); plus (3) interest on the
12 amounts specified in items (1) and (2) at the rate of 6% per
13 annum, compounded annually, from the date of service to the
14 date of payment. This Section is not limited to persons in
15 service under this Article on or after the effective date of
16 this amendatory Act of 1997.
17 (40 ILCS 5/11-133.2 new)
18 Sec. 11-133.2. Early retirement incentive.
19 (a) To be eligible for the benefits provided in this
20 Section, an employee must:
21 (1) be a current contributor to the Fund who, on
22 November 1, 1997, is (i) in active payroll status as an
23 employee or (ii) receiving ordinary or duty disability
24 benefits under Section 11-155 or 11-156;
25 (2) have not previously retired under this Article;
26 (3) file with the Board before June 1, 1998, a
27 written application requesting the benefits provided in
28 this Section;
29 (4) withdraw from service on or after December 31,
30 1997 and on or before June 30, 1998; and
31 (5) by the date of withdrawal: (i) have attained
32 age 55 with at least 10 years of creditable service in
33 this Fund and a total of at least 15 years of creditable
34 service in one or more of the participating systems under
-71- LRB9001767EGfgccr6
1 the Retirement Systems Reciprocal Act, without including
2 any creditable service established under this Section; or
3 (ii) have attained age 50 with at least 10 years of
4 creditable service in this Fund and a total of at least
5 30 years of creditable service in one or more of the
6 participating systems under the Retirement Systems
7 Reciprocal Act, without including any creditable service
8 established under this Section.
9 A person is not eligible for the benefits provided in
10 this Section if the person elects to receive a retirement
11 annuity calculated under the alternative formula formerly set
12 forth in Section 20-122.
13 (b) An eligible employee may establish up to 5 years of
14 creditable service under this Section, in increments of one
15 month, by making the contributions specified in subsection
16 (d). An eligible person must establish at least the amount
17 of creditable service necessary to bring his or her total
18 creditable service, including service in this Fund, service
19 established under this Section, and service in any of the
20 other participating systems under the Retirement Systems
21 Reciprocal Act, to a minimum of 20 years.
22 The creditable service under this Section may be used for
23 all purposes under this Article and the Retirement Systems
24 Reciprocal Act, except for the computation of average annual
25 salary and the determination of salary, earnings, or
26 compensation under this or any other Article of this Code.
27 (c) An eligible employee shall be entitled to have his
28 or her retirement annuity calculated in accordance with the
29 formula provided in Section 11-134, but with the following
30 exceptions:
31 (1) The annuity shall not be subject to reduction
32 because of withdrawal or commencement of the annuity
33 before attainment of age 60.
34 (2) The annuity shall be subject to a maximum of
35 80% of the employee's highest average annual salary for
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1 any 4 consecutive years within the last 10 years of
2 service, rather than the 75% maximum otherwise provided
3 in Section 11-134.
4 (d) For each month of creditable service established
5 under this Section, the employee must pay to the Fund an
6 employee contribution, to be calculated by the Fund, equal to
7 4.25% of the member's monthly salary rate on November 1,
8 1997. The employee may elect to pay the entire contribution
9 before the retirement annuity commences, or to have it
10 deducted from the annuity over a period not longer than 24
11 months. If the retired employee dies before the contribution
12 has been paid in full, the unpaid installments may be
13 deducted from any annuity or other benefit payable to the
14 employee's survivors.
15 All employee contributions paid under this Section shall
16 be deemed contributions made by employees for annuity
17 purposes under Section 11-169 and shall be made and credited
18 to a special reserve, without interest. Employee
19 contributions paid under this Section may be refunded under
20 the same terms and conditions as are applicable to other
21 employee contributions for retirement annuity.
22 (e) Notwithstanding Section 11-161, an annuitant who
23 reenters service under this Article after receiving a
24 retirement annuity based on benefits provided under this
25 Section thereby forfeits the right to continue to receive
26 those benefits, and shall have his or her retirement annuity
27 recalculated at the appropriate time without the benefits
28 provided in this Section.
29 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
30 Sec. 11-134. Minimum annuities.
31 (a) An employee whose withdrawal occurs after July 1,
32 1957 at age 60 or over, with 20 or more years of service, (as
33 service is defined or computed in Section 11-216), for whom
34 the age and service and prior service annuity combined is
-73- LRB9001767EGfgccr6
1 less than the amount stated in this section, shall, from and
2 after the date of withdrawal, in lieu of all annuities
3 otherwise provided in this Article, be entitled to receive an
4 annuity for life of an amount equal to 1 2/3% for each year
5 of service, of the highest average annual salary for any 5
6 consecutive years within the last 10 years of service
7 immediately preceding the date of withdrawal; provided, that
8 in the case of any employee who withdraws on or after July 1,
9 1971, such employee age 60 or over with 20 or more years of
10 service, shall be entitled to instead receive an annuity for
11 life equal to 1.67% for each of the first 10 years of
12 service; 1.90% for each of the next 10 years of service;
13 2.10% for each year of service in excess of 20 but not
14 exceeding 30; and 2.30% for each year of service in excess of
15 30, based on the highest average annual salary for any 4
16 consecutive years within the last 10 years of service
17 immediately preceding the date of withdrawal.
18 An employee who withdraws after July 1, 1957 and before
19 January 1, 1988, with 20 or more years of service, before age
20 60, shall be entitled to an annuity, to begin not earlier
21 than age 55, if under such age at withdrawal, as computed in
22 the last preceding paragraph, reduced 0.25% if the employee
23 was born before January 1, 1936, or 0.5% if the employee was
24 born on or after January 1, 1936, for each full month or
25 fractional part thereof that his attained age when such
26 annuity is to begin is less than 60.
27 Any employee born before January 1, 1936 who withdraws
28 with 20 or more years of service, and any employee with 20 or
29 more years of service who withdraws on or after January 1,
30 1988, may elect to receive, in lieu of any other employee
31 annuity provided in this Section, an annuity for life equal
32 to 1.80% for each of the first 10 years of service, 2.00% for
33 each of the next 10 years of service, 2.20% for each year of
34 service in excess of 20, but not exceeding 30, and 2.40% for
35 each year of service in excess of 30, of the highest average
-74- LRB9001767EGfgccr6
1 annual salary for any 4 consecutive years within the last 10
2 years of service immediately preceding the date of
3 withdrawal, to begin not earlier than upon attained age of 55
4 years, if under such age at withdrawal, reduced 0.25% for
5 each full month or fractional part thereof that his attained
6 age when annuity is to begin is less than 60; except that an
7 employee retiring on or after January 1, 1988, at age 55 or
8 over but less than age 60, having at least 35 years of
9 service, or an employee retiring on or after July 1, 1990, at
10 age 55 or over but less than age 60, having at least 30 years
11 of service, or an employee retiring on or after the effective
12 date of this amendatory Act of 1997, at age 55 or over but
13 less than age 60, having at least 25 years of service, shall
14 not be subject to the reduction in retirement annuity because
15 of retirement below age 60.
16 However, in the case of an employee who retired on or
17 after January 1, 1985 but before January 1, 1988, at age 55
18 or older and with at least 35 years of service, and who was
19 subject under this subsection (a) to the reduction in
20 retirement annuity because of retirement below age 60, that
21 reduction shall cease to be effective January 1, 1991, and
22 the retirement annuity shall be recalculated accordingly.
23 Any employee who withdraws on or after July 1, 1990, with
24 20 or more years of service, may elect to receive, in lieu of
25 any other employee annuity provided in this Section, an
26 annuity for life equal to 2.20% for each year of service of
27 the highest average annual salary for any 4 consecutive years
28 within the last 10 years of service immediately preceding the
29 date of withdrawal, to begin not earlier than upon attained
30 age of 55 years, if under such age at withdrawal, reduced
31 0.25% for each full month or fractional part thereof that his
32 attained age when annuity is to begin is less than 60; except
33 that an employee retiring at age 55 or over but less than age
34 60, having at least 30 years of service, shall not be subject
35 to the reduction in retirement annuity because of retirement
-75- LRB9001767EGfgccr6
1 below age 60.
2 Any employee who withdraws on or after the effective date
3 of this amendatory Act of 1997 with 20 or more years of
4 service may elect to receive, in lieu of any other employee
5 annuity provided in this Section, an annuity for life equal
6 to 2.20%, for each year of service, of the highest average
7 annual salary for any 4 consecutive years within the last 10
8 years of service immediately preceding the date of
9 withdrawal, to begin not earlier than upon attainment of age
10 55 (age 50 if the employee has at least 30 years of service),
11 reduced 0.25% for each full month or remaining fractional
12 part thereof that the employee's attained age when annuity is
13 to begin is less than 60; except that an employee retiring at
14 age 50 or over with at least 30 years of service or at age 55
15 or over with at least 25 years of service shall not be
16 subject to the reduction in retirement annuity because of
17 retirement below age 60.
18 The maximum annuity payable under this paragraph (a) of
19 this Section shall not exceed 70% of highest average annual
20 salary in the case of an employee who withdraws prior to July
21 1, 1971, and 75% if withdrawal takes place on or after July
22 1, 1971. For the purpose of the minimum annuity provided in
23 said paragraphs $1,500 shall be considered the minimum annual
24 salary for any year; and the maximum annual salary to be
25 considered for the computation of such annuity shall be
26 $4,800 for any year prior to 1953, $6,000 for the years 1953
27 to 1956, inclusive, and the actual annual salary, as salary
28 is defined in this Article, for any year thereafter.
29 (b) For an employee receiving disability benefit, his
30 salary for annuity purposes under this section shall, for all
31 periods of disability benefit subsequent to the year 1956, be
32 the amount on which his disability benefit was based.
33 (c) An employee with 20 or more years of service, whose
34 entire disability benefit credit period expires prior to
35 attainment of age 55 while still disabled for service, shall
-76- LRB9001767EGfgccr6
1 be entitled upon withdrawal to the larger of (1) the minimum
2 annuity provided above assuming that he is then age 55, and
3 reducing such annuity to its actuarial equivalent at his
4 attained age on such date, or (2) the annuity provided from
5 his age and service and prior service annuity credits.
6 (d) The minimum annuity provisions as aforesaid shall
7 not apply to any former employee receiving an annuity from
8 the fund, and who re-enters service as an employee, unless he
9 renders at least 3 years of additional service after the date
10 of re-entry.
11 (e) An employee in service on July 1, 1947, or who
12 became a contributor after July 1, 1947 and prior to July 1,
13 1950, or who shall become a contributor to the fund after
14 July 1, 1950 prior to attainment of age 70, who withdraws
15 after age 65 with less than 20 years of service, for whom the
16 annuity has been fixed under the foregoing sections of this
17 Article shall, in lieu of the annuity so fixed, receive an
18 annuity as follows:
19 Such amount as he could have received had the accumulated
20 amounts for annuity been improved with interest at the
21 effective rate to the date of his withdrawal, or to
22 attainment of age 70, whichever is earlier, and had the city
23 contributed to such earlier date for age and service annuity
24 the amount that would have been contributed had he been under
25 age 65, after the date his annuity was fixed in accordance
26 with this Article, and assuming his annuity were computed
27 from such accumulations as of his age on such earlier date.
28 The annuity so computed shall not exceed the annuity which
29 would be payable under the other provisions of this section
30 if the employee was credited with 20 years of service and
31 would qualify for annuity thereunder.
32 (f) In lieu of the annuity provided in this or in any
33 other section of this Article, an employee having attained
34 age 65 with at least 15 years of service who withdraws from
35 service on or after July 1, 1971 and whose annuity computed
-77- LRB9001767EGfgccr6
1 under other provisions of this Article is less than the
2 amount provided under this paragraph shall be entitled to
3 receive a minimum annual annuity for life equal to 1% of the
4 highest average annual salary for any 4 consecutive years
5 within the last 10 years of service immediately preceding
6 retirement for each year of his service plus the sum of $25
7 for each year of service. Such annual annuity shall not
8 exceed the maximum percentages stated under paragraph (a) of
9 this Section of such highest average annual salary.
10 (g) Any annuity payable under the preceding subsections
11 of this Section 11-134 shall be paid in equal monthly
12 installments.
13 (h) The amendatory provisions of part (a) and (f) of
14 this Section shall be effective July 1, 1971 and apply in the
15 case of every qualifying employee withdrawing on or after
16 July 1, 1971.
17 (i) The amendatory provisions of this amendatory Act of
18 1985 relating to the discount of annuity because of
19 retirement prior to attainment of age 60 and increasing the
20 retirement formula for those born before January 1, 1936,
21 shall apply only to qualifying employees withdrawing on or
22 after August 16, 1985.
23 (j) Beginning on the effective date of this amendatory
24 Act of 1997 January 1, 1991, the minimum amount of employee's
25 annuity shall be $550 $350 per month for life for the
26 following classes of employees, without regard to the fact
27 that withdrawal occurred prior to the effective date of this
28 amendatory Act of 1997 January 1, 1991:
29 (1) any employee annuitant alive and receiving a
30 life annuity on the effective date of this amendatory Act
31 of 1997 January 1, 1991, except a reciprocal annuity;
32 (2) any employee annuitant alive and receiving a
33 term annuity on the effective date of this amendatory Act
34 of 1997 January 1, 1991, except a reciprocal annuity;
35 (3) any employee annuitant alive and receiving a
-78- LRB9001767EGfgccr6
1 reciprocal annuity on the effective date of this
2 amendatory Act of 1997 January 1, 1991, whose service in
3 this fund is at least 5 years;
4 (4) any employee annuitant withdrawing after age 60
5 on or after the effective date of this amendatory Act of
6 1997 January 1, 1991, with at least 10 years of service
7 in this fund.
8 The increases granted under items (1), (2) and (3) of
9 this subsection (j) shall not be limited by any other Section
10 of this Act.
11 (Source: P.A. 85-964; 86-1488.)
12 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
13 Sec. 11-145.1. Minimum annuities for widows. The widow
14 otherwise eligible for widow's annuity under other Sections
15 of this Article 11, of an employee hereinafter described, who
16 retires from service or dies while in the service subsequent
17 to the effective date of this amendatory provision, and for
18 which widow the amount of widow's annuity and widow's prior
19 service annuity combined, fixed or provided for such widow
20 under other provisions of said Article 11 is less than the
21 amount hereinafter provided in this section, shall, from and
22 after the date her otherwise provided annuity would begin, in
23 lieu of such otherwise provided widow's and widow's prior
24 service annuity, be entitled to the following indicated
25 amount of annuity:
26 (a) The widow of any employee who dies while in service
27 on or after the date on which he attains age 60 if the death
28 occurs before July 1, 1990, or on or after the date on which
29 he attains age 55 if the death occurs on or after July 1,
30 1990, with at least 20 years of service, or on or after the
31 date on which he attains age 50 if the death occurs on or
32 after the effective date of this amendatory Act of 1997 with
33 at least 30 years of service, shall be entitled to an annuity
34 equal to one-half of the amount of annuity which her deceased
-79- LRB9001767EGfgccr6
1 husband would have been entitled to receive had he withdrawn
2 from the service on the day immediately preceding the date of
3 his death, conditional upon such widow having attained age 60
4 on or before such date if the death occurs before July 1,
5 1990, or age 55 if the death occurs on or after July 1, 1990.
6 Except as provided in subsection (j), the widow's annuity
7 shall not, however, exceed the sum of $500 a month if the
8 employee's death in service occurs before January 23, 1987.
9 The widow's annuity shall not be limited to a maximum dollar
10 amount if the employee's death in service occurs on or after
11 January 23, 1987.
12 If the employee dies in service before July 1, 1990, and
13 if such widow of such described employee shall not be 60 or
14 more years of age on such date of death, the amount provided
15 in the immediately preceding paragraph for a widow 60 or more
16 years of age, shall, in the case of such younger widow, be
17 reduced by 0.25% for each month that her then attained age is
18 less than 60 years if the employee was born before January 1,
19 1936, or dies in service on or after January 1, 1988, or 0.5%
20 for each month that her then attained age is less than 60
21 years if the employee was born on or after January 1, 1936
22 and dies in service before January 1, 1988.
23 If the employee dies in service on or after July 1, 1990,
24 and if the widow of the employee has not attained age 55 on
25 or before the employee's date of death, the amount otherwise
26 provided in this subsection (a) shall be reduced by 0.25% for
27 each month that her then attained age is less than 55 years.
28 (b) The widow of any employee who dies subsequent to the
29 date of his retirement on annuity, and who so retired on or
30 after the date on which he attained age 60 if retirement
31 occurs before July 1, 1990, or on or after the date on which
32 he attained age 55 if retirement occurs on or after July 1,
33 1990, with at least 20 years of service, or on or after the
34 date on which he attained age 50 if the retirement occurs on
35 or after the effective date of this amendatory Act of 1997
-80- LRB9001767EGfgccr6
1 with at least 30 years of service, shall be entitled to an
2 annuity equal to one-half of the amount of annuity which her
3 deceased husband received as of the date of his retirement on
4 annuity, conditional upon such widow having attained age 60
5 on or before the date of her husband's retirement on annuity
6 if retirement occurs before July 1, 1990, or age 55 if
7 retirement occurs on or after July 1, 1990. Except as
8 provided in subsection (j), this Such amount of widow's
9 annuity shall not, however, exceed the sum of $500 a month if
10 the employee's death occurs before January 23, 1987. The
11 widow's annuity shall not be limited to a maximum dollar
12 amount if the employee's death occurs on or after January 23,
13 1987, regardless of the date of retirement; provided that, if
14 retirement was before January 23, 1987, the employee or
15 eligible spouse repays the excess spouse refund with interest
16 at the effective rate from the date of refund to the date of
17 repayment.
18 If the date of the employee's retirement on annuity is
19 before July 1, 1990, and if such widow of such described
20 employee shall not have attained such age of 60 or more years
21 on such date of her husband's retirement on annuity, the
22 amount provided in the immediately preceding paragraph for a
23 widow 60 or more years of age on the date of her husband's
24 retirement on annuity, shall, in the case of such then
25 younger widow, be reduced by 0.25% for each month that her
26 then attained age was less than 60 years if the employee was
27 born before January 1, 1936, or withdraws from service on or
28 after January 1, 1988, or 0.5% for each month that her then
29 attained age was less than 60 years if the employee was born
30 on or after January 1, 1936 and withdraws from service before
31 January 1, 1988.
32 If the date of the employee's retirement on annuity is on
33 or after July 1, 1990, and if the widow of the employee has
34 not attained age 55 by the date of the employee's retirement
35 on annuity, the amount otherwise provided in this subsection
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1 (b) shall be reduced by 0.25% for each month that her then
2 attained age is less than 55 years.
3 (c) The foregoing provisions relating to minimum
4 annuities for widows shall not apply to the widow of any
5 former employee receiving an annuity from the fund on August
6 2, 1965 or on the effective date of this amendatory
7 provision, who re-enters service as a former employee, unless
8 such employee renders at least 3 years of additional service
9 after the date of re-entry.
10 (d) (Blank). The amendatory provisions of part (a) and
11 (b) of this Section (increasing the maximum from $300 to $400
12 a month) shall be effective as of July 1, 1971, and apply in
13 the case of every qualifying widow whose husband dies while
14 in service on or after July 1, 1971 and prior to January 1,
15 1984, or withdraws and enters on annuity on or after July 1,
16 1971 and prior to January 1, 1984.
17 (e) (Blank). The changes made in parts (a) and (b) of
18 this Section by this amendatory Act of 1983 (increasing the
19 maximum from $400 to $500 per month) shall apply to every
20 qualifying widow whose husband dies in the service on or
21 after January 1, 1984, or withdraws and enters on annuity on
22 or after January 1, 1984.
23 (f) The amendments to this Section by this amendatory
24 Act of 1985, relating to changing the discount because of age
25 from 1/2 of 1% to 0.25% per month for widows of employees
26 born before January 1, 1936, shall apply only to qualifying
27 widows whose husbands die while in the service on or after
28 August 16, 1985 or withdraw and enter on annuity on or after
29 August 16, 1985.
30 (g) Beginning on the effective date of this amendatory
31 Act of 1997 January 1, 1991, the minimum amount of widow's
32 annuity shall be $500 $300 per month for life for the
33 following classes of widows, without regard to the fact that
34 the death of the employee occurred prior to the effective
35 date of this amendatory Act of 1997 January 1, 1991:
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1 (1) any widow annuitant alive and receiving a term
2 annuity on the effective date of this amendatory Act of
3 1997 January 1, 1991, except a reciprocal annuity;
4 (2) any widow annuitant alive and receiving a life
5 annuity on the effective date of this amendatory Act of
6 1997 January 1, 1991, except a reciprocal annuity;
7 (3) any widow annuitant alive and receiving a
8 reciprocal annuity on the effective date of this
9 amendatory Act of 1997 January 1, 1991, whose employee
10 spouse's service in this fund was at least 5 years;
11 (4) the widow of an employee with at least 10 years
12 of service in this fund who dies after retirement, if the
13 retirement occurred prior to the effective date of this
14 amendatory Act of 1997 January 1, 1991;
15 (5) the widow of an employee with at least 10 years
16 of service in this fund who dies after retirement, if
17 withdrawal occurs on or after the effective date of this
18 amendatory Act of 1997 January 1, 1991;
19 (6) the widow of an employee who dies in service
20 with at least 5 years of service in this fund, if the
21 death in service occurs on or after the effective date of
22 this amendatory Act of 1997 January 1, 1991.
23 The increases granted under items (1), (2), (3) and (4)
24 of this subsection (g) shall not be limited by any other
25 Section of this Act.
26 (h) The widow of an employee who retired or died in
27 service on or after January 1, 1985 and before July 1, 1990,
28 at age 55 or older, and with at least 35 years of service
29 credit, shall be entitled to have her widow's annuity
30 increased, effective January 1, 1991, to an amount equal to
31 50% of the retirement annuity that the deceased employee
32 received on the date of retirement, or would have been
33 eligible to receive if he had retired on the day preceding
34 the date of his death in service, provided that if the widow
35 had not attained age 60 by the date of the employee's
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1 retirement or death in service, the amount of the annuity
2 shall be reduced by 0.25% for each month that her then
3 attained age was less than age 60 if the employee's
4 retirement or death in service occurred on or after January
5 1, 1988, or by 0.5% for each month that her attained age is
6 less than age 60 if the employee's retirement or death in
7 service occurred prior to January 1, 1988. However, in cases
8 where a refund of excess contributions for widow's annuity
9 has been paid by the Fund, the increase in benefit provided
10 by this subsection (h) (i) shall be contingent upon repayment
11 of the refund to the Fund with interest at the effective rate
12 from the date of refund to the date of payment.
13 (i) If a deceased employee is receiving a retirement
14 annuity at the time of death and that death occurs on or
15 after the effective date of this amendatory Act of 1997, the
16 widow may elect to receive, in lieu of any other annuity
17 provided under this Article, 50% of the deceased employee's
18 retirement annuity at the time of death reduced by 0.25% for
19 each month that the widow's age on the date of death is less
20 than 55. However, in cases where a refund of excess
21 contributions for widow's annuity has been paid by the Fund,
22 the benefit provided by this subsection (i) is contingent
23 upon repayment of the refund to the Fund with interest at the
24 effective rate from the date of refund to the date of
25 payment.
26 (j) For widows of employees who died before January 23,
27 1987 after retirement on annuity or in service, the maximum
28 dollar amount limitation on widow's annuity shall cease to
29 apply, beginning with the first annuity payment after the
30 effective date of this amendatory Act of 1997; except that if
31 a refund of excess contributions for widow's annuity has been
32 paid by the Fund, the increase resulting from this subsection
33 (j) shall not begin before the refund has been repaid to the
34 Fund, together with interest at the effective rate from the
35 date of the refund to the date of repayment.
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1 (Source: P.A. 85-964; 86-1488.)
2 (40 ILCS 5/11-149) (from Ch. 108 1/2, par. 11-149)
3 Sec. 11-149. Maximum annuities.
4 (1) The annuities to an employee and his widow, are
5 subject to the following limitations:
6 (a) No age and service annuity or age and service and
7 prior service annuity combined in excess of 60% of highest
8 salary of an employee and no minimum annuity in excess of the
9 annuity provided in Section 11-134 or set forth as a maximum
10 in any other Section of this Code relating to minimum
11 annuities for employees included under Article 11 of this
12 Code shall be payable to any employee excepting to the extent
13 that the annuity may exceed such per cent or amount under
14 Section 11-134.1 and 11-134.3 providing for automatic
15 increases after retirement.
16 (b) No annuity in excess of 60% of such highest salary
17 shall be payable to a widow if death of an employee resulted
18 from injury incurred in the performance of duty; provided,
19 the annuity to a widow, or a widow's annuity plus
20 compensation annuity shall not exceed $500 per month if the
21 employee's death occurs before January 23, 1987, except as
22 provided in paragraph (d). The widow's annuity, or a widow's
23 annuity plus compensation annuity, shall not be limited to a
24 maximum dollar amount if the employee's death occurs on or
25 after January 23, 1987, regardless of the date of injury.
26 (c) No annuity in excess of 50% of such highest salary
27 shall be payable to a widow in the case of death of an
28 employee from any cause other than injury incurred in the
29 performance of duty; provided, the annuity to a widow, or a
30 widow's annuity plus supplemental annuity, shall not exceed
31 $500 per month if the employee's death occurs before January
32 23, 1987, except as provided in paragraph (d). The widow's
33 annuity, or widow's annuity plus supplemental annuity, shall
34 not be limited to a maximum dollar amount if the employee's
-85- LRB9001767EGfgccr6
1 death occurs on or after January 23, 1987.
2 (d) For widows of employees who died before January 23,
3 1987 after retirement on annuity or in service, the maximum
4 dollar amount limitation on widow's annuity (or widow's
5 annuity plus compensation or supplemental annuity) shall
6 cease to apply, beginning with the first annuity payment
7 after the effective date of this amendatory Act of 1997;
8 except that if a refund of excess contributions for widow's
9 annuity has been paid by the Fund, the increase resulting
10 from this paragraph (d) shall not begin before the refund has
11 been repaid to the Fund, together with interest at the
12 effective rate from the date of the refund to the date of
13 repayment.
14 (2) If when an employee's annuity is fixed, the amount
15 accumulated to his credit therefor, as of his age at such
16 time, exceeds the amount necessary for the annuity, all
17 employee contributions for annuity purposes, after the date
18 on which the accumulated sums to the credit of such employee
19 for annuity purposes would first have provided such employee
20 with such amount of annuity as of his age at such date shall
21 be refunded when he enters upon annuity, with interest at the
22 effective rate.
23 If the aforesaid annuity so fixed is not payable, but a
24 larger amount is payable as a minimum annuity, such refund
25 shall be reduced by 5/12 of the value of the difference in
26 the annuity payable and the amount theretofore fixed as the
27 value of such difference may be at the date and as of the age
28 of the employee when his annuity begins; provided that if the
29 employee was credited with city contributions for any period
30 for which he made no contribution, or a contribution of less
31 than 3 1/4% of salary, a further reduction in the refund
32 shall be made by the equivalent of what he would have
33 contributed during such period less his actual contributions,
34 had the rate of employee contributions in force on the
35 effective date been in effect throughout his entire service,
-86- LRB9001767EGfgccr6
1 prior to such effective date, with interest computed on such
2 amounts at the effective rate.
3 (3) If at the time the annuity for a wife is fixed, the
4 employee's credit for a widow's annuity exceeds that
5 necessary to provide the maximum annuity prescribed in this
6 section, all employee contributions for such widow's annuity
7 for service after the date on which the accumulated sums to
8 the credit of the employee for such annuity purposes would
9 first have provided the wife of such employee with such
10 amount of annuity if such annuity were computed on the basis
11 of the combined annuity mortality table with interest at 3%
12 per annum with ages at date of determination taken as
13 specified in this article, shall be refunded to the employee,
14 with interest at the effective rate.
15 If the employee was credited with city contributions for
16 widow's annuity for any service prior to the effective date,
17 any amount so refundable, shall be reduced by the equivalent
18 of what he would have contributed, had his contributions for
19 widow's annuity been made at the rate of 1% throughout his
20 entire service, prior to the effective date, with interest on
21 such amounts at the effective rate.
22 (4) If at the death of an employee prior to age 65, the
23 credit for widow's annuity, exceeds that necessary to provide
24 the maximum annuity prescribed in this section, all employee
25 contributions for annuity purposes, for service after the
26 date on which the accumulated sums to the credit of such
27 employee for annuity purposes would first have provided such
28 widow with such amount of annuity if such annuity were
29 computed on the basis of the combined annuity mortality table
30 with interest at 3% per annum with ages at date of
31 determination taken as specified in this article, shall be
32 refunded to the widow, with applicable interest.
33 If the employee was credited with city contributions for
34 any period of service during which he was not required to
35 make a contribution, or made a contribution of less than 3
-87- LRB9001767EGfgccr6
1 1/4% of salary, the refund shall be reduced by the equivalent
2 of the contributions he would have made during such period,
3 less any amount he contributed, had the rate of employee
4 contributions in effect on the effective date been in force
5 throughout his entire service, prior to the effective date,
6 with applicable interest; provided, that if the employee was
7 credited with city contributions for widow's annuity for any
8 service prior to the effective date, any amount so refundable
9 shall be further reduced by the equivalent of what he would
10 have contributed had he made contributions for widow's
11 annuity at the rate of 1% throughout his entire service,
12 prior to such effective date, with applicable interest.
13 (5) The amendatory provisions of part 1, paragraphs (b)
14 and (c) of this Section (increasing the maximum from $300 to
15 $400 a month) shall be effective as of July 1, 1971, and
16 apply in the case of every qualifying widow whose husband
17 dies while in service on or after July 1, 1971 and prior to
18 January 1, 1984, or withdraws and enters on annuity on or
19 after July 1, 1971 and prior to January 1, 1984.
20 (6) The changes in paragraphs (b) and (c) of subsection
21 (1) of this Section made by this amendatory Act of 1983
22 (increasing the maximum from $400 to $500 per month) shall
23 apply to every qualifying widow whose husband dies in the
24 service on or after January 1, 1984, or withdraws and enters
25 on annuity on or after January 1, 1984.
26 (Source: P.A. 86-273.)
27 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
28 Sec. 11-154. Amount of child's annuity. Beginning on
29 the effective date of this amendatory Act of 1997 January 1,
30 1988, the amount of a child's annuity shall be $220 $120 per
31 month for each child while the spouse of the deceased
32 employee parent survives, and $250 $150 per month for each
33 child when no such spouse survives, and shall be subject to
34 the following limitations:
-88- LRB9001767EGfgccr6
1 (1) If the combined annuities for the widow and children
2 of an employee whose death resulted from injury incurred in
3 the performance of duty, or for the children where a widow
4 does not exist, exceed 70% of the employee's final monthly
5 salary, the annuity for each child shall be reduced pro rata
6 so that the combined annuities for the family shall not
7 exceed such limitation;
8 (2) For the family of an employee whose death is the
9 result of any cause other than injury incurred in the
10 performance of duty, in which the combined annuities for the
11 family exceed 60% of the employee's final monthly salary, the
12 annuity for each child shall be reduced pro rata so that the
13 combined annuities for the family shall not exceed such
14 limitation.
15 A child's annuity shall be paid to the parent who is
16 providing for the child, unless another person has been
17 appointed the child's legal guardian.
18 The increase in child's annuity provided by this
19 amendatory Act of 1997 1987 shall apply to all child's
20 annuities being paid on or after the effective date of this
21 amendatory Act of 1997. January 1, 1988, subject to The above
22 limitations on the combined annuities for a family in parts
23 (1) and (2) of this Section do not apply to families of
24 employees who died before the effective date of this
25 amendatory Act of 1997.
26 (Source: P.A. 85-964.)
27 (40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
28 Sec. 11-215. Computation of service.
29 (a) In computing the term of service of an employee
30 prior to the effective date, the entire period beginning on
31 the date he was first appointed and ending on the day before
32 the effective date, except any intervening period during
33 which he was separated by withdrawal from service, shall be
34 counted for all purposes of this Article. Only the first year
-89- LRB9001767EGfgccr6
1 of each period of lay-off or leave of absence without pay,
2 continuing or extending for a period in excess of one year,
3 shall be counted as such service.
4 (b) For a person employed by an employer for whom this
5 Article was in effect prior to August 1, 1949, from whose
6 salary deductions are first made under this Article after
7 July 31, 1949, any period of service rendered prior to the
8 effective date, unless he was in service on the day before
9 the effective date, shall not be counted as service.
10 (c) In computing the term of service of an employee
11 subsequent to the day before the effective date, the
12 following periods of time shall be counted as periods of
13 service for annuity purposes:
14 (1) the time during which he performed the duties
15 of his position;
16 (2) leaves of absence with whole or part pay, and
17 leaves of absence without pay not longer than 90 days;
18 (3) leaves of absence without pay during which a
19 participant is employed full-time by a local labor
20 organization that represents municipal employees,
21 provided that (A) the participant continues to make
22 employee contributions to the Fund as though he were an
23 active employee, based on the regular salary rate
24 received by the participant for his municipal employment
25 immediately prior to such leave of absence (and in the
26 case of such employment prior to December 9, 1987, pays
27 to the Fund an amount equal to the employee contributions
28 for such employment plus regular interest thereon as
29 calculated by the board), and based on his current salary
30 with such labor organization after the effective date of
31 this amendatory Act of 1991, (B) after January 1, 1989
32 the participant, or the labor organization on the
33 participant's behalf, makes contributions to the Fund as
34 though it were the employer, in the same amount and same
35 manner as specified under this Article, based on the
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1 regular salary rate received by the participant for his
2 municipal employment immediately prior to such leave of
3 absence, and based on his current salary with such labor
4 organization after the effective date of this amendatory
5 Act of 1991, and (C) the participant does not receive
6 credit in any pension plan established by the local labor
7 organization based on his employment by the organization;
8 (4) any period of disability for which he received
9 (i) a disability benefit under this Article, or (ii) a
10 temporary total disability benefit under the Workers'
11 Compensation Act if the disability results from a
12 condition commonly termed heart attack or stroke or any
13 other condition falling within the broad field of
14 coronary involvement or heart disease, or (iii) whole or
15 part pay.
16 (d) For a person employed by an employer, or the
17 retirement board, in which "The 1935 Act" was in effect prior
18 to August 1, 1949, from whose salary deductions are first
19 made under "The 1935 Act" or this Article after July 31,
20 1949, any period of service rendered subsequent to the
21 effective date and prior to August 1, 1949, shall not be
22 counted as a period of service under this Article, except
23 such period for which he made payment, as provided in Section
24 11-221 of this Article, in which case such period shall be
25 counted as a period of service for all annuity purposes
26 hereunder.
27 (e) In computing the term of service of an employee
28 subsequent to the day before the effective date for ordinary
29 disability benefit purposes, the following periods of time
30 shall be counted as periods of service:
31 (1) any period during which he performed the duties
32 of his position;
33 (2) leaves of absence with whole or part pay;
34 (3) any period of disability for which he received
35 (i) a duty disability benefit under this Article, or (ii)
-91- LRB9001767EGfgccr6
1 a temporary total disability benefit under the Workers'
2 Compensation Act if the disability results from a
3 condition commonly termed heart attack or stroke or any
4 other condition falling within the broad field of
5 coronary involvement or heart disease, or (iii) whole or
6 part pay.
7 However, any period of service rendered by an employee
8 contributor prior to the date he became a contributor to the
9 fund shall not be counted as a period of service for ordinary
10 disability purposes, unless the person made payment for the
11 period as provided in Section 11-221 of this Article, in
12 which case the period shall be counted as a period of service
13 for ordinary disability purposes for periods of disability on
14 or after the effective date of this amendatory Act of 1997.
15 Overtime or extra service shall not be included in
16 computing any term of service. Not more than 1 year of
17 service shall be allowed for service rendered during any
18 calendar year.
19 (Source: P.A. 86-272; 86-1488.)
20 (40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
21 Sec. 14-103.04. Department. "Department": Any
22 department, institution, board, commission, officer, court,
23 or any agency of the State having power to certify payrolls
24 to the State Comptroller authorizing payments of salary or
25 wages against State appropriations, or against trust funds
26 held by the State Treasurer, except those departments
27 included under the term "employer" in the State Universities
28 Retirement System. "Department" includes the Illinois
29 Development Finance Authority. "Department" also includes
30 the Illinois Comprehensive Health Insurance Board and the
31 Illinois Rural Bond Bank.
32 (Source: P.A. 86-676; 86-1488.)
33 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
-92- LRB9001767EGfgccr6
1 Sec. 14-104. Service for which contributions permitted.
2 Contributions provided for in this Section shall cover the
3 period of service granted, and be based upon employee's
4 compensation and contribution rate in effect on the date he
5 last became a member of the System; provided that for all
6 employment prior to January 1, 1969 the contribution rate
7 shall be that in effect for a noncovered employee on the date
8 he last became a member of the System. Contributions
9 permitted under this Section shall include regular interest
10 from the date an employee last became a member of the System
11 to date of payment.
12 These contributions must be paid in full before
13 retirement either in a lump sum or in installment payments in
14 accordance with such rules as may be adopted by the board.
15 (a) Any member may make contributions as required in
16 this Section for any period of service, subsequent to the
17 date of establishment, but prior to the date of membership.
18 (b) Any employee who had been previously excluded from
19 membership because of age at entry and subsequently became
20 eligible may elect to make contributions as required in this
21 Section for the period of service during which he was
22 ineligible.
23 (c) An employee of the Department of Insurance who,
24 after January 1, 1944 but prior to becoming eligible for
25 membership, received salary from funds of insurance companies
26 in the process of rehabilitation, liquidation, conservation
27 or dissolution, may elect to make contributions as required
28 in this Section for such service.
29 (d) Any employee who rendered service in a State office
30 to which he was elected, or rendered service in the elective
31 office of Clerk of the Appellate Court prior to the date he
32 became a member, may make contributions for such service as
33 required in this Section. Any member who served by
34 appointment of the Governor under the Civil Administrative
35 Code of Illinois and did not participate in this System may
-93- LRB9001767EGfgccr6
1 make contributions as required in this Section for such
2 service.
3 (e) Any person employed by the United States government
4 or any instrumentality or agency thereof from January 1, 1942
5 through November 15, 1946 as the result of a transfer from
6 State service by executive order of the President of the
7 United States shall be entitled to prior service credit
8 covering the period from January 1, 1942 through December 31,
9 1943 as provided for in this Article and to membership
10 service credit for the period from January 1, 1944 through
11 November 15, 1946 by making the contributions required in
12 this Section. A person so employed on January 1, 1944 but
13 whose employment began after January 1, 1942 may qualify for
14 prior service and membership service credit under the same
15 conditions.
16 (f) An employee of the Department of Labor of the State
17 of Illinois who performed services for and under the
18 supervision of that Department prior to January 1, 1944 but
19 who was compensated for those services directly by federal
20 funds and not by a warrant of the Auditor of Public Accounts
21 paid by the State Treasurer may establish credit for such
22 employment by making the contributions required in this
23 Section. An employee of the Department of Agriculture of the
24 State of Illinois, who performed services for and under the
25 supervision of that Department prior to June 1, 1963, but was
26 compensated for those services directly by federal funds and
27 not paid by a warrant of the Auditor of Public Accounts paid
28 by the State Treasurer, and who did not contribute to any
29 other public employee retirement system for such service, may
30 establish credit for such employment by making the
31 contributions required in this Section.
32 (g) Any employee who executed a waiver of membership
33 within 60 days prior to January 1, 1944 may, at any time
34 while in the service of a department, file with the board a
35 rescission of such waiver. Upon making the contributions
-94- LRB9001767EGfgccr6
1 required by this Section, the member shall be granted the
2 creditable service that would have been received if the
3 waiver had not been executed.
4 (h) Until May 1, 1990, an employee who was employed on a
5 full-time basis by a regional planning commission for at
6 least 5 continuous years may establish creditable service for
7 such employment by making the contributions required under
8 this Section, provided that any credits earned by the
9 employee in the commission's retirement plan have been
10 terminated.
11 (i) Any person who rendered full time contractual
12 services to the General Assembly as a member of a legislative
13 staff may establish service credit for up to 8 years of such
14 services by making the contributions required under this
15 Section, provided that application therefor is made not later
16 than July 1, 1991.
17 (j) By paying the contributions otherwise required under
18 this Section, plus an amount determined by the Board to be
19 equal to the employer's normal cost of the benefit plus
20 interest, an employee may establish service credit for a
21 period of up to 2 years spent in active military service for
22 which he does not qualify for credit under Section 14-105,
23 provided that (1) he was not dishonorably discharged from
24 such military service, and (2) the amount of service credit
25 established by a member under this subsection (j), when added
26 to the amount of military service credit granted to the
27 member under subsection (b) of Section 14-105, shall not
28 exceed 5 years.
29 (k) An employee who was employed on a full-time basis by
30 the Illinois State's Attorneys Association Statewide
31 Appellate Assistance Service LEAA-ILEC grant project prior to
32 the time that project became the State's Attorneys Appellate
33 Service Commission, now the Office of the State's Attorneys
34 Appellate Prosecutor, an agency of State government, may
35 establish creditable service for not more than 60 months
-95- LRB9001767EGfgccr6
1 service for such employment by making contributions required
2 under this Section.
3 (l) Any person who rendered contractual services to a
4 member of the General Assembly as a worker providing
5 constituent services to persons in the member's district may
6 establish creditable service for up to 8 years of those
7 contractual services by making the contributions required
8 under this Section. The System shall determine a full-time
9 salary equivalent for the purpose of calculating the required
10 contribution. To establish credit under this subsection, the
11 applicant must apply to the System by March 1, 1998.
12 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
13 (40 ILCS 5/14-104.10 new)
14 Sec. 14-104.10. Illinois Development Finance Authority.
15 An employee may establish creditable service for periods
16 prior to the date upon which the Illinois Development Finance
17 Authority first becomes a department (as defined in Section
18 14-103.04) during which he or she was employed by the
19 Illinois Development Finance Authority or the Illinois
20 Industrial Development Authority, by applying in writing and
21 paying to the System an amount equal to (i) employee
22 contributions for the period for which credit is being
23 established, based upon the employee's compensation and the
24 applicable contribution rate in effect on the date he or she
25 last became a member of the System, plus (ii) the employer's
26 normal cost of the credit established, plus (iii) interest on
27 the amounts in items (i) and (ii) at the rate of 2.5% per
28 year, compounded annually, from the date the applicant last
29 became a member of the System to the date of payment. This
30 payment must be paid in full before retirement, either in a
31 lump sum or in installment payments in accordance with the
32 rules of the Board.
33 (40 ILCS 5/14-105.7 new)
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1 Sec. 14-105.7. Transfer to Article 9 fund. Until July 1,
2 1998, any active or inactive member of the System who has
3 established creditable service under paragraph (i) of Section
4 14-104 (relating to contractual service to the General
5 Assembly) and is an active contributor to the pension fund
6 established under Article 9 of this Code may apply to the
7 Board for transfer of all of his or her creditable service
8 accumulated under this System to the Article 9 fund. The
9 creditable service shall be transferred forthwith. Payment
10 by this System to the Article 9 fund shall be made at the
11 same time and shall consist of:
12 (1) the amounts accumulated to the credit of the
13 applicant for that service, including regular interest,
14 on the books of the System on the date of transfer; plus
15 (2) employer contributions in an amount equal to
16 the amount determined under item (1).
17 Participation in this System as to the credits transferred
18 under this Section terminates on the date of transfer.
19 (b) Any person transferring credit under this Section
20 may reinstate credits and creditable service terminated upon
21 receipt of a refund, by paying to the System, before July 1,
22 1998, the amount of the refund plus regular interest from the
23 date of refund to the date of payment.
24 (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
25 Sec. 15-106. Employer. "Employer": The University of
26 Illinois, Southern Illinois University, Chicago State
27 University, Eastern Illinois University, Governors State
28 University, Illinois State University, Northeastern Illinois
29 University, Northern Illinois University, Western Illinois
30 University, the State Board of Higher Education, the Illinois
31 Mathematics and Science Academy, the State Geological Survey
32 Division of the Department of Natural Resources, the State
33 Natural History Survey Division of the Department of Natural
34 Resources, the State Water Survey Division of the Department
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1 of Natural Resources, the Hazardous Waste Research and
2 Information Center of the Department of Natural Resources,
3 the University Civil Service Merit Board, the Board of
4 Trustees of the State Universities Retirement System, the
5 Illinois Community College Board, State Community College of
6 East St. Louis, community college boards, any association of
7 community college boards organized under Section 3-55 of the
8 Public Community College Act, the Board of Examiners
9 established under the Illinois Public Accounting Act, and,
10 only during the period for which employer contributions
11 required under Section 15-155 are paid, the following
12 organizations: the alumni associations, the foundations and
13 the athletic associations which are affiliated with the
14 universities and colleges included in this Section as
15 employers. A department as defined in Section 14-103.04 is an
16 employer for any person appointed by the Governor under the
17 Civil Administrative Code of the State who is a participating
18 employee as defined in Section 15-109.
19 (Source: P.A. 89-4, eff. 1-1-96; 89-445, eff. 2-7-96.)
20 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
21 Sec. 15-112. Final rate of earnings. "Final rate of
22 earnings": For an employee who is paid on an hourly basis or
23 who receives an annual salary in installments during 12
24 months of each academic year, the average annual earnings
25 during the 48 consecutive calendar month period ending with
26 the last day of final termination of employment or the 4
27 consecutive academic years of service in which the employee's
28 earnings were the highest, whichever is greater. For any
29 other employee, the average annual earnings during the 4
30 consecutive academic years of service in which his or her
31 earnings were the highest. For an employee with less than 48
32 months or 4 consecutive academic years of service, the
33 average earnings during his or her entire period of service.
34 The earnings of an employee with more than 36 months of
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1 service prior to the date of becoming a participant are, for
2 such period, considered equal to the average earnings during
3 the last 36 months of such service. For an employee on leave
4 of absence with pay, or on leave of absence without pay who
5 makes contributions during such leave, earnings are assumed
6 to be equal to the basic compensation on the date the leave
7 began. For an employee on disability leave, earnings are
8 assumed to be equal to the basic compensation on the date
9 disability occurs or the average earnings during the 24
10 months immediately preceding the month in which disability
11 occurs, whichever is greater.
12 For a participant who retires on or after the effective
13 date of this amendatory Act of 1997 with at least 20 years of
14 service as a firefighter or police officer under this
15 Article, the final rate of earnings shall be the annual rate
16 of earnings received by the participant on his or her last
17 day as a firefighter or police officer under this Article, if
18 that is greater than the final rate of earnings as calculated
19 under the other provisions of this Section.
20 If a participant is an employee for at least 6 months
21 during the academic year in which his or her employment is
22 terminated, the annual final rate of earnings shall be 25% of
23 the sum of (1) the annual basic compensation for that year,
24 and (2) the amount earned during the 36 months immediately
25 preceding that year, if this is greater than the final rate
26 of earnings as calculated under the other provisions of this
27 Section.
28 In the determination of the final rate of earnings for an
29 employee, that part of an employee's earnings for any
30 academic year beginning after June 30, 1997, which exceeds
31 the employee's earnings with that employer for the preceding
32 year by more than 20 percent shall be excluded; in the event
33 that an employee has more than one employer this limitation
34 shall be calculated separately for the earnings with each
35 employer. In making such calculation, only the basic
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1 compensation of employees shall be considered, without regard
2 to vacation or overtime or to contracts for summer
3 employment.
4 The following are not considered as earnings in
5 determining final rate of earnings: separation pay,
6 retirement pay, payment in lieu of unused sick leave and
7 payments from an employer for the period used in determining
8 final rate of earnings for any purpose other than services
9 rendered, leave of absence or vacation granted during that
10 period, and vacation of up to 56 work days allowed upon
11 termination of employment under a vacation policy of an
12 employer which was in effect on or before January 1, 1977.
13 Intermittent periods of service shall be considered as
14 consecutive in determining final rate of earnings.
15 (Source: P.A. 84-1472.)
16 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
17 Sec. 15-113.2. Service for leaves of absence. "Service
18 for leaves of absence" includes those periods of leaves of
19 absence at less than 50% pay, except military leave and
20 periods of disability leave in excess of 60 days, for which
21 the employee pays the contributions required under Section
22 15-157 in accordance with rules prescribed by the board based
23 upon the employee's basic compensation on the date the leave
24 begins, or in the case of leave for service with a teacher
25 organization, based upon the actual compensation received by
26 the employee for such service after January 26, 1988, if the
27 employee so elects within 30 days of that date or the date
28 the leave for service with a teacher organization begins,
29 whichever is later; provided that the employee (1) returns to
30 employment covered by this system at the expiration of the
31 leave, or within 30 days after the termination of a
32 disability which occurs during the leave and continues this
33 employment at a percentage of time equal to or greater than
34 the percentage of time immediately preceding the leave of
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1 absence for at least 8 consecutive months or a period equal
2 to the period of the leave, whichever is less, or (2) is
3 precluded from meeting the foregoing conditions because of
4 disability or death. If service credit is denied because the
5 employee fails to meet these conditions, the contributions
6 covering the leave of absence shall be refunded without
7 interest. The return to employment condition does not apply
8 if the leave of absence is for service with a teacher
9 organization and the leave of absence is in effect on the
10 effective date of this amendatory Act of 1993.
11 Service credit provided under this Section shall not
12 exceed 3 years in any period of 10 years, unless the employee
13 is on special leave granted by the employer for service with
14 a teacher organization. Commencing with the fourth year in
15 any period of 10 years, a participant on such special leave
16 is also required to pay employer contributions equal to the
17 normal cost as defined in Section 15-155, based upon the
18 employee's basic compensation on the date the leave begins,
19 or based upon the actual compensation received by the
20 employee for service with a teacher organization if the
21 employee has so elected.
22 (Source: P.A. 86-1488; 87-1265.)
23 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
24 Sec. 15-113.3. Service for periods of military service.
25 "Service for periods of military service": Those periods,
26 not exceeding 5 years, during which a person served in the
27 armed forces of the United States, of which all but 2 years
28 must have immediately followed a period of employment with an
29 employer under this system or the State Employees' Retirement
30 System of Illinois; provided that the person received a
31 discharge other than dishonorable and again became an
32 employee under this system within one year after discharge.
33 However, for the up to 2 years of military service not
34 immediately following employment, the applicant must make
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1 contributions to the System (1) at the rates provided in
2 Section 15-157 based upon the employee's basic compensation
3 on the last date as a participating employee prior to such
4 military service, or on the first date as a participating
5 employee after such military service, whichever is greater,
6 plus (2) an amount determined by the board to be equal to the
7 employer's normal cost of the benefits accrued for such
8 military service, plus (3) interest on items (1) and (2) at
9 the effective rate from the later of the date of first
10 membership in the System or the date of conclusion of
11 military service to the date of payment. The change in the
12 required contribution for purchased military credit made by
13 this amendatory Act of 1993 does not entitle any person to a
14 refund of contributions already paid.
15 The changes to this Section made by this amendatory Act
16 of 1991 shall apply not only to persons who on or after its
17 effective date are in service under the System, but also to
18 persons whose employment terminated prior to that date,
19 whether or not the person is an annuitant on that date. In
20 the case of an annuitant who applies for credit allowable
21 under this Section for a period of military service that did
22 not immediately follow employment, and who has made the
23 required contributions for such credit, the annuity shall be
24 recalculated to include the additional service credit, with
25 the increase taking effect on the date the System received
26 written notification of the annuitant's intent to purchase
27 the credit, if payment of all the required contributions is
28 made within 60 days of such notice, or else on the first
29 annuity payment date following the date of payment of the
30 required contributions. In calculating the automatic annual
31 increase for an annuity that has been recalculated under this
32 Section, the increase attributable to the additional service
33 allowable under this amendatory Act of 1991 shall be included
34 in the calculation of automatic annual increases accruing
35 after the effective date of the recalculation.
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1 (Source: P.A. 87-794; 87-1265.)
2 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
3 Sec. 15-113.4. Service for unused sick leave. "Service
4 for unused sick leave": A participant who is an employee
5 under this System or one of the other systems subject to
6 Article 20 of this Code within 60 days immediately preceding
7 the date on which his or her retirement annuity begins, is
8 entitled to credit for service for that portion of unused
9 sick leave earned in the course of employment with an
10 employer and credited on the date of termination of
11 employment by an employer for which payment is not received,
12 in accordance with the following schedule: 30 through 90
13 full calendar days and 20 through 59 full work days of unused
14 sick leave, 1/4 of a year of service; 91 through 180 full
15 calendar days and 60 through 119 full work days, 1/2 of a
16 year of service; 181 through 270 full calendar days and 120
17 through 179 full work days, 3/4 of a year of service; 271
18 through 360 full calendar days and 180 through 240 full work
19 days, one year of service. Only uncompensated, unused sick
20 leave earned in accordance with an employer's sick leave
21 accrual policy generally applicable to employees or a class
22 of employees shall be taken into account in calculating
23 service credit under this Section. Any uncompensated, unused
24 sick leave granted by an employer to facilitate the hiring,
25 retirement, termination, or other special circumstances of an
26 employee shall not be taken into account in calculating
27 service credit under this Section. If a participant
28 transfers from one employer to another, the unused sick leave
29 credited by the previous employer shall be considered in
30 determining service to be credited under this Section, even
31 if the participant terminated service prior to the effective
32 date of P.A. 86-272 (August 23, 1989); if necessary, the
33 retirement annuity shall be recalculated to reflect such sick
34 leave credit. Each employer shall certify to the board the
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1 number of days of unused sick leave accrued to the
2 participant's credit on the date that the participant's
3 status as an employee terminated. This period of unused sick
4 leave shall not be considered in determining the date the
5 retirement annuity begins.
6 (Source: P.A. 86-272; 87-794.)
7 (40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
8 Sec. 15-113.5. Service for employment with other public
9 agencies in this State. "Service for employment with other
10 public agencies in this State": includes the following
11 periods:
12 (a) periods during which a person rendered services for
13 the State of Illinois, prior to January 1, 1944, under
14 employment not covered by this Article, if (1) such periods
15 would have been considered creditable service under the State
16 Employees' Retirement System of Illinois had that system been
17 in effect at that time, and (2) service credit for such
18 periods has not been granted under the State Employees'
19 Retirement System of Illinois.
20 (b) periods credited under the State Employees'
21 Retirement System of Illinois on the date an employee became
22 eligible for participation in the State Universities
23 Retirement System as a result of a transfer of a State
24 function from a department, commission or other agency of
25 this State to an employer, excluding periods as a "covered
26 employee" as defined in Article 14 of this Code, provided the
27 employee has received a refund of his or her contributions
28 from the State Employees' Retirement System of Illinois and
29 pays to this system contributions equal to the amount of the
30 refund together with compound interest at the rate required
31 for repayment of a refund under Section 15-154 from the date
32 the refund is received to the date payment is made.
33 (c) periods credited in a retirement system covering a
34 governmental unit, as defined in Section 20-107 on the date a
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1 person becomes a participant, if (1) a function of this
2 governmental unit is transferred in whole or in part to an
3 employer, and (2) the person transfers employment from the
4 governmental unit to such employer within 6 months after the
5 employer begins operation of this function, and (3) the
6 person cannot qualify for a proportional retirement annuity
7 from the retirement system covering this governmental unit,
8 and (4) the participant receives a refund of his or her
9 contributions from the retirement system covering this
10 governmental unit and pays to this system contributions equal
11 to the amount of the refund together with compound interest
12 from the date the refund is made by the system to the date
13 payment is received by the board at the rate of 6% per annum
14 through August 31, 1982, and at the effective rates after
15 that date.
16 (d) periods during which a participant contributed to
17 the Park Policemen's Annuity Fund as defined in Section
18 5-219, provided the participant and the Chicago Policemen's
19 Annuity Fund pay to this system the required employee and
20 employer contributions.
21 (e) periods during which a person rendered services for
22 an athletic association affiliated with the University of
23 Illinois, provided that (1) the employee was employed by that
24 athletic association on January 1, 1960, (2) annuity
25 contracts covering that employment have been purchased by
26 other retirement systems covering employees of the athletic
27 association, and (3) the employee files with the board an
28 election to become a participant and assigns to the board his
29 or her right, title, and interest in those annuity contracts.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
32 Sec. 15-113.7. Service for other public employment.
33 "Service for other public employment": Includes those
34 periods not exceeding the lesser of 10 years or 2/3 of the
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1 service granted under other Sections of this Article dealing
2 with service credit, during which a person was employed full
3 time by the United States government, or by the government of
4 a state, or by a political subdivision of a state, or by an
5 agency or instrumentality of any of the foregoing, if the
6 person (1) cannot qualify for a retirement pension or other
7 benefit based upon employer contributions from another
8 retirement system, exclusive of federal social security,
9 based in whole or in part upon this employment, and (2) pays
10 the lesser of (A) an amount equal to 8% of his or her annual
11 basic compensation on the date of becoming a participating
12 employee subsequent to this service multiplied by the number
13 of years of such service, together with compound interest
14 from the date participation begins to the date payment is
15 received by the board at the rate of 6% per annum through
16 August 31, 1982, and at the effective rates after that date,
17 and (B) 50% of the actuarial value of the increase in the
18 retirement annuity provided by this service, and (3)
19 contributes for at least 5 years subsequent to this
20 employment to one or more of the following systems: the
21 State Universities Retirement System, the Teachers'
22 Retirement System of the State of Illinois, and the Public
23 School Teachers' Pension and Retirement Fund of Chicago. If
24 a function of a governmental unit as defined by Section
25 20-107 is transferred by law, in whole or in part to an
26 employer, and an employee transfers employment from this
27 governmental unit to such employer within 6 months of the
28 transfer of the function, the payment for service authorized
29 under this Section shall not exceed the amount which would
30 have been payable for this service to the retirement system
31 covering the governmental unit from which the function was
32 transferred.
33 The service granted under this Section shall not be
34 considered in determining whether the person has the minimum
35 of 8 years of service required to qualify for a retirement
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1 annuity at age 55 or the 5 years of service required to
2 qualify for a retirement annuity at age 62, as provided in
3 Section 15-135. The maximum allowable service of 10 years
4 for this governmental employment shall be reduced by the
5 service credit which is validated under paragraph (3) of
6 Section 16-127 and paragraph one of Section 17-133.
7 Except as hereinafter provided, this Section shall not
8 apply to persons who become participants in the system after
9 September 1, 1974. Except as hereinafter provided, credit
10 for military service under this Section shall be allowed only
11 to persons who have applied for such credit before September
12 1, 1974. The foregoing September 1, 1974, limitations do not
13 apply to any person who became a participant in the system on
14 or before January 15, 1977, and prior thereto, had a minimum
15 of 20 years of service credit granted in the General Assembly
16 Retirement System.
17 (Source: P.A. 87-1265.)
18 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
19 Sec. 15-125. "Prescribed Rate of Interest; Effective
20 Rate of Interest":
21 (1) "Prescribed rate of interest": The rate of interest
22 to be used in actuarial valuations and in development of
23 actuarial tables as determined by the board on the basis of
24 the probable average effective rate of interest on a long
25 term basis.
26 (2) "Effective rate of interest": The interest rate for
27 all or any part of a fiscal year that is determined by the
28 board based on factors including the system's past and
29 expected investment experience; historical and expected
30 fluctuations in the market value of investments; the
31 desirability of minimizing volatility in the effective rate
32 of interest from year to year; the provision of reserves for
33 anticipated losses upon sales, redemptions, or other
34 disposition of investments and for variations in interest
-107- LRB9001767EGfgccr6
1 experience. This amendatory Act of 1997 is a clarification
2 of existing law. The interest rate for any fiscal year
3 determined by the board from the investment experience of the
4 preceding fiscal years and the estimated investment
5 experience of the current fiscal year. In determining the
6 effective rate of interest to be credited to member
7 contribution accounts and other reserves, the board may
8 provide for reserves for anticipated losses upon sales,
9 redemptions or other disposition of investments and for
10 reserves for variations in interest experience.
11 (Source: P.A. 79-1146.)
12 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
13 Sec. 15-136.2. Early retirement without discount. A
14 participant whose retirement annuity begins after June 1,
15 1981 and on or before September 1, 2002 1997 and within six
16 months of the last day of employment for which retirement
17 contributions were required, may elect at the time of
18 application to make a one time employee contribution to the
19 System and thereby avoid the early retirement reduction in
20 retirement annuity specified under subsection (b) of Section
21 15-136. The exercise of the election shall obligate the last
22 employer to also make a one time non-refundable contribution
23 to the System.
24 The one time employee and employer contributions shall be
25 a percentage of the retiring participant's highest full time
26 annual salary rate during the academic years which were
27 considered in determining his or her final rate of earnings,
28 or if not full time then the full time equivalent. The
29 employee contribution rate shall be 7% multiplied by the
30 lesser of the following 2 sums: (1) the number of years that
31 the participant is less than age 60; or (2) the number of
32 years that the participant's creditable service is less than
33 35 years. The employer contribution shall be at the rate of
34 20% for each year the participant is less than age 60. The
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1 employer shall pay the employer contribution from the same
2 source of funds which is used in paying earnings to
3 employees.
4 Upon receipt of the application and election, the System
5 shall determine the one time employee and employer
6 contributions. The provisions of this Section shall not be
7 applicable until all the above outlined contributions have
8 been received by the System; however, the date such
9 contributions are received shall not be considered in
10 determining the effective date of retirement.
11 For persons who apply to the Board after the effective
12 date of this amendatory Act of 1993 and before July 1, 1993,
13 requesting a retirement annuity to begin no earlier than July
14 1, 1993 and no later than June 30, 1994, the employer shall
15 pay both the employee and employer contributions required
16 under this Section.
17 The number of employees retiring under this Section in
18 any fiscal year may be limited at the option of the employer
19 to no less than 15% of those eligible. The right to elect
20 early retirement without discount shall be allocated among
21 those applying on the basis of seniority in the service of
22 the last employer.
23 (Source: P.A. 87-794; 87-1265.)
24 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
25 Sec. 15-143. Death benefits - General provisions. All
26 death benefits shall be paid as a single cash sum or
27 otherwise as the beneficiary and the board mutually agree,
28 except where an annuity is payable under Section 15-144. A
29 death benefit shall be paid as soon as practicable after
30 receipt by the board of (1) a written application by the
31 beneficiary and (2) such evidence of death and identification
32 as the board shall require.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
2 Sec. 15-153.2. Disability retirement annuity. A
3 participant whose disability benefits are discontinued under
4 the provisions of clause (6) (5) of Section 15-152, is
5 entitled to a disability retirement annuity of 35% of the
6 basic compensation which was payable to the participant at
7 the time that disability began, provided at least 2 licensed
8 and practicing physicians appointed by the board certify that
9 the participant has a medically determinable physical or
10 mental impairment which would prevent him or her from
11 engaging in any substantial gainful activity, and which can
12 be expected to result in death or which has lasted or can be
13 expected to last for a continuous period of not less than 12
14 months. The terms "medically determinable physical or mental
15 impairment" and "substantial gainful activity" shall have the
16 meanings ascribed to them in the "Social Security Act", as
17 now or hereafter amended, and the regulations issued
18 thereunder.
19 The disability retirement annuity payment period shall
20 begin immediately following the expiration of the disability
21 benefit payments under clause (6) (5) of Section 15-152 and
22 shall be discontinued when (1) the physical or mental
23 impairment no longer prevents the participant from engaging
24 in any substantial gainful activity, (2) the participant dies
25 or (3) the participant elects to receive a retirement annuity
26 under Sections 15-135 and 15-136. If a person's disability
27 retirement annuity is discontinued under clause (1), all
28 rights and credits accrued in the system on the date that the
29 disability retirement annuity began shall be restored, and
30 the disability retirement annuity paid shall be considered as
31 disability payments under clause (6) (5) of Section 15-152.
32 (Source: P.A. 83-1440.)
33 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
34 Sec. 15-157. Employee Contributions.
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1 (a) Each participating employee shall make contributions
2 towards the retirement annuity of each payment of earnings
3 applicable to employment under this system on and after the
4 date of becoming a participant as follows: Prior to
5 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
6 to August 31, 1955, 5%; from September 1, 1955 to August 31,
7 1969, 6%; from September 1, 1969, 6 1/2%. These
8 contributions are to be considered as normal contributions
9 for purposes of this Article.
10 Each participant who is a police officer or firefighter
11 shall make normal contributions of 8% of each payment of
12 earnings applicable to employment as a police officer or
13 firefighter under this system on or after September 1, 1981,
14 unless he or she files with the board within 60 days after
15 the effective date of this amendatory Act of 1991 or 60 days
16 after the board receives notice that he or she is employed as
17 a police officer or firefighter, whichever is later, a
18 written notice waiving the retirement formula provided by
19 Rule 4 of Section 15-136. This waiver shall be irrevocable.
20 If a participant had met the conditions set forth in Section
21 15-132.1 prior to the effective date of this amendatory Act
22 of 1991 but failed to make the additional normal
23 contributions required by this paragraph, he or she may elect
24 to pay the additional contributions plus compound interest at
25 the effective rate. If such payment is received by the
26 board, the service shall be considered as police officer
27 service in calculating the retirement annuity under Rule 4 of
28 Section 15-136.
29 (b) Starting September 1, 1969, each participating
30 employee shall make additional contributions of 1/2 of 1% of
31 earnings to finance a portion of the cost of the annual
32 increases in retirement annuity provided under Section
33 15-136.
34 (c) Each participating employee shall make survivors
35 insurance contributions of 1% of earnings applicable under
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1 this system on and after August 1, 1959. Contributions in
2 excess of $80 during any fiscal year beginning before August
3 31, 1969 and in excess of $120 during any fiscal year
4 thereafter until September 1, 1971 shall be considered as
5 additional contributions for purposes of this Article.
6 (d) If the board by board rule so permits and subject to
7 such conditions and limitations as may be specified in its
8 rules, a participant may make other additional contributions
9 of such percentage of earnings or amounts as the participant
10 shall elect in a written notice thereof received by the
11 board.
12 (e) That fraction of a participant's total accumulated
13 normal contributions, the numerator of which is equal to the
14 number of years of service in excess of that which is
15 required to qualify for the maximum retirement annuity, and
16 the denominator of which is equal to the total service of the
17 participant, shall be considered as accumulated additional
18 contributions. The determination of the applicable maximum
19 annuity and the adjustment in contributions required by this
20 provision shall be made as of the date of the participant's
21 retirement.
22 (f) Notwithstanding the foregoing, a participating
23 employee shall not be required to make contributions under
24 this Section after the date upon which continuance of such
25 contributions would otherwise cause his or her retirement
26 annuity to exceed the maximum retirement annuity as specified
27 in clause (1) of subsection (c) of Section 15-136.
28 (Source: P.A. 86-272; 86-1488.)
29 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
30 Sec. 15-167.2. To issue bonds. To borrow money and, in
31 evidence of its obligation to repay the borrowing, to issue
32 bonds for the purpose of financing the cost of any project.
33 The bonds shall be authorized pursuant to a resolution to be
34 adopted by the board setting forth all details in connection
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1 with the bonds.
2 The principal amount of the outstanding bonds of the
3 board shall not at any time exceed $20,000,000 $10,000,000.
4 The bonds may be issued in one or more series, bear such
5 date or dates, become due at such time or times within 40
6 years, bear interest payable at such intervals and at such
7 rate or rates, which rates may be fixed or variable, be in
8 such denominations, be in such form, either coupon,
9 registered or book-entry, carry such conversion, registration
10 and exchange privileges, be subject to defeasance upon such
11 terms, have such rank or priority, be executed in such
12 manner, be payable in such medium of payment at such place or
13 places within or without the State of Illinois, make
14 provision for a corporate trustee within or without the State
15 of Illinois with respect to such bonds, prescribe the rights,
16 powers and duties thereof to be exercised for the benefit of
17 the board, the system and the protection of the bondholders,
18 provide for the holding in trust, investment and use of
19 moneys, funds and accounts held in connection therewith, be
20 subject to such terms of redemption with or without premium,
21 and be sold in such manner at private or public sale and at
22 such price, all as the board shall determine. Whenever bonds
23 are sold at a price less than par, they shall be sold at such
24 price and bear interest at such rate or rates that either the
25 true interest cost (yield) or the net interest rate, as may
26 be selected by the board, received upon the sale of such
27 bonds does not exceed the maximum interest rate permitted by
28 the Bond Authorization Act, as amended at the time of the
29 making of the contract.
30 Any bonds may be refunded or advance refunded upon such
31 terms as the board may determine for such term of years, not
32 exceeding 40 years, and in such principal amount, as may be
33 deemed necessary by the board. Any redemption premium
34 payable upon the redemption of bonds may be payable from the
35 proceeds of refunding bonds issued for the purpose of
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1 refunding such bonds, from any lawfully available source or
2 from both refunding bond proceeds and such other sources.
3 The bonds or refunding bonds shall be obligations of the
4 board payable from the income, interest and dividends derived
5 from investments of the board, all as may be designated in
6 the resolution of the board authorizing the issuance of the
7 bonds. The bonds shall be secured as provided in the
8 authorizing resolution, which may, notwithstanding any other
9 provision of this Code, include a specific pledge or
10 assignment of and lien on or security interest in the income,
11 interest and dividends derived from investments of the board
12 and a specific pledge or assignment of and lien on or
13 security interest in any funds, reserves or accounts
14 established or provided for by the resolution of the board
15 authorizing the issuance of the bonds. The bonds or refunding
16 bonds shall not be payable from any employer or employee
17 contributions derived from State appropriations nor
18 constitute obligations or indebtedness of the State of
19 Illinois or of any municipal corporation or other body
20 politic and corporate in the State.
21 The holder or holders of any bonds issued by the board
22 may bring suits at law or proceedings in equity to compel the
23 performance and observance by the board or any of its agents
24 or employees of any contract or covenant made with the
25 holders of the bonds, to compel the board or any of its
26 agents or employees to perform any duties required to be
27 performed for the benefit of the holders of the bonds by the
28 provisions of the resolution authorizing their issuance, and
29 to enjoin the board or any of its agents or employees from
30 taking any action in conflict with any such contract or
31 covenant.
32 Notwithstanding the provisions of Section 15-188 of this
33 Code, if the board fails to pay the principal of, premium, if
34 any, or interest on any of the bonds as they become due, a
35 civil action to compel payment may be instituted in the
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1 appropriate circuit court by the holder or holders of the
2 bonds upon which such default exists or by a trustee acting
3 on behalf of the holders.
4 No bonds may be issued under this Section until a copy of
5 the resolution of the board authorizing such bonds, certified
6 by the secretary of the board, has been filed with the
7 Governor of the State of Illinois.
8 "Bonds" means any instrument evidencing the obligation to
9 pay money, including without limitation bonds, notes,
10 installment or financing contracts, leases, certificates,
11 warrants, and any other evidences of indebtedness.
12 "Project" means the acquisition, construction, equipping,
13 improving, expanding and furnishing of any office building
14 for the use of the system, including any real estate or
15 interest in real estate necessary or useful in connection
16 therewith.
17 "Cost of any project" includes all capital costs of the
18 project, an amount for expenses of issuing any bonds to
19 finance such project, including underwriter's discount and
20 costs of bond insurance or other credit enhancement, an
21 amount necessary to provide for a reserve fund for the
22 payment of the principal of and interest on such bonds and an
23 amount to pay interest on such bonds for a period not to
24 exceed the greater of 2 years or a period ending 6 months
25 after the estimated date of completion of the project.
26 (Source: P.A. 86-1034.)
27 (40 ILCS 5/15-168.1 new)
28 Sec. 15-168.1. Testimony and the production of records.
29 The secretary of the Board shall have the power to issue
30 subpoenas to compel the attendance of witnesses and the
31 production of documents and records, including law
32 enforcement records maintained by law enforcement agencies,
33 in conjunction with a disability claim, administrative review
34 proceedings, or felony forfeiture investigation. The fees of
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1 witnesses for attendance and travel shall be the same as the
2 fees of witnesses before the circuit courts of this State and
3 shall be paid by the party seeking the subpoena. The Board
4 may apply to any circuit court in the State for an order
5 requiring compliance with a subpoena issued under this
6 Section. Subpoenas issued under this Section shall be
7 subject to applicable provisions of the Code of Civil
8 Procedure.
9 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
10 Sec. 15-185. Annuities, etc. Exempt. The accumulated
11 employee and employer contributions shall be held in trust
12 for each participant and annuitant, and this trust shall be
13 treated as a spendthrift trust. Except as provided in this
14 Article, all cash, securities and other property of this
15 system, all annuities and other benefits payable under this
16 Article and all accumulated credits of participants and
17 annuitants in this system and the right of any person to
18 receive an annuity or other benefit under this Article, or a
19 refund of contributions, shall not be subject to judgment,
20 execution, garnishment, attachment, or other seizure by
21 process, in bankruptcy or otherwise, nor to sale, pledge,
22 mortgage or other alienation, and shall not be assignable.
23 The board, however, may deduct from the benefits, refunds and
24 credits payable to the participant, annuitant or beneficiary,
25 amounts owed by the participant or annuitant to the system.
26 No attempted sale, transfer or assignment of any benefit,
27 refund or credit shall prevent the right of the board to make
28 the deduction and offset authorized in this Section. Any
29 participant or annuitant may authorize the board to deduct
30 from disability benefits or annuities, premiums due under any
31 group hospital-surgical insurance program which is sponsored
32 or approved by any employer; however, the deductions from
33 disability benefits may not begin prior to 6 months after the
34 disability occurs.
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1 A person receiving an annuity or benefit may also
2 authorize withholding from such annuity or benefit for the
3 purposes enumerated in the State Salary and Annuity
4 Withholding Act.
5 This amendatory Act of 1989 is a clarification of
6 existing law and shall be applicable to every participant and
7 annuitant without regard to whether status as an employee
8 terminates before the effective date of this amendatory Act
9 of 1989.
10 (Source: P.A. 86-273; 86-1488.)
11 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
12 Sec. 15-190. Persons under legal disability. If a person
13 is under legal disability when any right or privilege accrues
14 to him or her under this Article, a guardian may be appointed
15 pursuant to law, and may, on behalf of such person, claim and
16 exercise any such right or privilege with the same force and
17 effect as if the person had not been under a legal disability
18 and had claimed or exercised such right or privilege.
19 If a person's application for benefits or a physician's
20 certificate on file with the board shows that the person is
21 under a legal disability, and no guardian has been appointed
22 for his or her estate, the benefits payable under this
23 Article may be paid (1) directly to the person under legal
24 disability, or (2) to either parent of the person under legal
25 disability or any adult person with whom the person under
26 legal disability may at the time be living, provided only
27 that such parent or adult person to whom any amount is to be
28 paid shall have advised the board in writing that such amount
29 will be held or used for the benefit of the person under
30 legal disability, or (3) to the trustee of any trust created
31 for the sole benefit of the person under legal disability
32 while that person is living, provided only that the trustee
33 of such trust to whom any amount is to be paid shall have
34 advised the board in writing that such amount will be held or
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1 used for the benefit of the person under legal disability.
2 The system shall not be required to determine the validity of
3 the trust or any of the terms thereof. The representation of
4 the trustee that the trust meets the requirements of this
5 Section shall be conclusive as to the system. The written
6 receipt of the person under legal disability or the other
7 person who receives such payment shall be an absolute
8 discharge of the system's liability in respect of the amount
9 so paid.
10 (Source: P.A. 86-1488.)
11 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
12 Sec. 15-191. Payment of benefits to minors. If any
13 benefits under this Article become payable to a minor, the
14 board may make payment (1) directly to the minor, (2) to any
15 person who has legally qualified and is acting as guardian of
16 the minor's person or property in any jurisdiction, or (3) to
17 either parent of the minor or to any adult person with whom
18 the minor may at the time be living, provided only that the
19 parent or other person to whom any amount is to be paid shall
20 have advised the board in writing that such amount will be
21 held or used for the benefit of the minor, or (4) to the
22 trustee of any trust created for the sole benefit of the
23 minor while that minor is living, provided only that the
24 trustee of such trust to whom any amount is to be paid shall
25 have advised the board in writing that such amount will be
26 held or used for the benefit of the minor. The system shall
27 not be required to determine the validity of the trust or any
28 of the terms thereof. The representation of the trustee that
29 the trust meets the requirements of this Section shall be
30 conclusive as to the system. The written receipt of the
31 minor, parent, trustee, or other person who receives such
32 payment shall be an absolute discharge of the system's
33 liability in respect of the amount so paid.
34 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
2 Sec. 16-140. Survivors' benefits - definitions.
3 (a) For the purpose of Sections 16-138 through 16-143.2,
4 the following terms shall have the following meanings, unless
5 the context otherwise requires:
6 (1) "Average salary": the average salary for the highest
7 4 consecutive years within the last 10 years of creditable
8 service immediately preceding date of death or retirement,
9 whichever is applicable, or the average salary for the total
10 creditable service if service is less than 4 years.
11 (2) "Member": any teacher included in the membership of
12 the system. However, a teacher who becomes an annuitant of
13 the system or a teacher whose services terminate after 20
14 years of service from any cause other than retirement is
15 considered a member, subject to the conditions and
16 limitations stated in this Article.
17 (3) "Dependent beneficiary": (A) a surviving spouse of a
18 member or annuitant who was married to the member or
19 annuitant for the 12 month period immediately preceding and
20 on the date of death of such member or annuitant, except
21 where a child is born of such marriage, in which case the
22 qualifying period shall not be applicable; (A-1) a surviving
23 spouse of a member or annuitant who (i) was married to the
24 member or annuitant on the date of the member or annuitant's
25 death, (ii) was married to the member or annuitant for a
26 period of at least 12 months (but not necessarily the 12
27 months immediately preceding the member or annuitant's
28 death), (iii) first applied for a survivor's benefit before
29 April January 1, 1997 1994, and (iv) has not received a
30 benefit under subsection (a) of Section 16-141 or paragraph
31 (1) of Section 16-142; (B) an eligible child of a member or
32 annuitant; and (C) a dependent parent.
33 Unless otherwise designated by the member, eligibility
34 for benefits shall be in the order named, except that a
35 dependent parent shall be eligible only if there is no other
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1 dependent beneficiary. Any benefit to be received by or paid
2 to a dependent beneficiary to be determined under this
3 paragraph as provided in Sections 16-141 and 16-142 may be
4 received by or paid to a trust established for such dependent
5 beneficiary if such dependent beneficiary is living at the
6 time such benefit would be received by or paid to such trust.
7 (4) "Eligible child": an unmarried natural or adopted
8 child of the member or annuitant under age 18. An unmarried
9 natural or adopted child, regardless of age, who is dependent
10 by reason of a physical or mental disability, except any such
11 child receiving benefits under Article III of the Illinois
12 Public Aid Code, is eligible for so long as such physical or
13 mental disability continues. An adopted child, however, is
14 eligible only if the proceedings for adoption were finalized
15 while the child was a minor.
16 For purposes of this subsection, "disability" means an
17 inability to engage in any substantial gainful activity by
18 reason of any medically determinable physical or mental
19 impairment which can be expected to result in death or which
20 has lasted or can be expected to last for a continuous period
21 of not less than 12 months.
22 (5) "Dependent parent": a parent who was receiving at
23 least 1/2 of his or her support from a member or annuitant
24 for the 12-month period immediately preceding and on the date
25 of such member's or annuitant's death, provided however, that
26 such dependent status terminates upon a member's acceptance
27 of a refund for survivor benefit contributions as provided
28 under Section 16-142.
29 (6) "Non-dependent beneficiary": any person,
30 organization or other entity designated by the member who
31 does not qualify as a dependent beneficiary.
32 (7) "In service": the condition of a member being in
33 receipt of salary as a teacher at any time within 12 months
34 immediately before his or her death, being on leave of
35 absence for which the member, upon return to teaching, would
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1 be eligible to purchase service credit under subsection
2 (b)(5) of Section 16-127, or being in receipt of a disability
3 or occupational disability benefit. This term does not
4 include any annuitant or member who previously accepted a
5 refund of survivor benefit contributions under paragraph (1)
6 of Section 16-142 unless the conditions specified in
7 subsection (b) of Section 16-143.2 are met.
8 (b) The change to this Section made by this amendatory
9 Act of 1997 applies without regard to whether the deceased
10 member or annuitant was in service on or after the effective
11 date of this amendatory Act.
12 (Source: P.A. 89-430, eff. 12-15-95.)
13 (40 ILCS 5/16-163) (from Ch. 108 1/2, par. 16-163)
14 Sec. 16-163. Board created. A board of 10 members
15 constitutes a board of trustees authorized to carry out the
16 provisions of this Article and is responsible for the general
17 administration of the system. The board is known as the
18 Board of Trustees of the Teachers' Retirement System of the
19 State of Illinois. The board is composed of the
20 Superintendent of Education, ex-officio, who shall be the
21 president of the board; 4 persons, not members of the system,
22 to be appointed by the Governor, who shall hold no elected
23 other State office; and 4 teachers, as defined in Section
24 16-106, elected by the contributing members; and one
25 annuitant member elected by the annuitants of the system, as
26 provided in Section 16-165.
27 (Source: P.A. 84-1028.)"; and
28 by inserting before the beginning of Section 99 the
29 following:
30 "Section 95. The State Mandates Act is amended by adding
31 Section 8.21 as follows:
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1 (30 ILCS 805/8.21 new)
2 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1997.
6 Section 97. No acceleration or delay. Where this Act
7 makes changes in a statute that is represented in this Act by
8 text that is not yet or no longer in effect (for example, a
9 Section represented by multiple versions), the use of that
10 text does not accelerate or delay the taking effect of (i)
11 the changes made by this Act or (ii) provisions derived from
12 any other Public Act.".
13 Submitted on , 1997.
14 ______________________________ _____________________________
15 Senator O'Malley Representative Stroger
16 ______________________________ _____________________________
17 Senator Butler Representative Burke
18 ______________________________ _____________________________
19 Senator Rauschenberger Representative Currie
20 ______________________________ _____________________________
21 Senator Bowles Representative Churchill
22 ______________________________ _____________________________
23 Senator Trotter Representative Rutherford
24 Committee for the Senate Committee for the House