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[ Introduced ] | [ Engrossed ] | [ Senate Amendment 003 ] |
[ Conference Committee Report 001 ] |
90_HB1641enr 70 ILCS 2605/5.9 from Ch. 42, par. 324s Amends the Metropolitan Water Reclamation District Act. Permits the district's board of trustees to transfer appropriations among departments after March 1 of a fiscal year, rather than after the first half of a fiscal year. LRB9001767MWpc HB1641 Enrolled LRB9001767MWpc 1 AN ACT in relation to public employees, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. The State Employees Group Insurance Act of 6 1971 is amended by changing Section 3 as follows: 7 (5 ILCS 375/3) (from Ch. 127, par. 523) 8 (Text of Section before amendment by P.A. 89-507) 9 Sec. 3. Definitions. Unless the context otherwise 10 requires, the following words and phrases as used in this Act 11 shall have the following meanings. The Department may define 12 these and other words and phrases separately for the purpose 13 of implementing specific programs providing benefits under 14 this Act. 15 (a) "Administrative service organization" means any 16 person, firm or corporation experienced in the handling of 17 claims which is fully qualified, financially sound and 18 capable of meeting the service requirements of a contract of 19 administration executed with the Department. 20 (b) "Annuitant" means (1) an employee who retires, or 21 has retired, on or after January 1, 1966 on an immediate 22 annuity under the provisions of Articles 2, 14, 15 (including 23 an employee who has retired and is receiving a retirement 24 annuity under an optional program established under Section 25 15-158.2 and who would also be eligible for a retirement 26 annuity had that person been a participant in the State 27 University Retirement System), paragraphs (b) or (c) of 28 Section 16-106, or Article 18 of the Illinois Pension Code; 29 (2) any person who was receiving group insurance coverage 30 under this Act as of March 31, 1978 by reason of his status 31 as an annuitant, even though the annuity in relation to which HB1641 Enrolled -2- LRB9001767MWpc 1 such coverage was provided is a proportional annuity based on 2 less than the minimum period of service required for a 3 retirement annuity in the system involved; (3) any person not 4 otherwise covered by this Act who has retired as a 5 participating member under Article 2 of the Illinois Pension 6 Code but is ineligible for the retirement annuity under 7 Section 2-119 of the Illinois Pension Code; (4) the spouse of 8 any person who is receiving a retirement annuity under 9 Article 18 of the Illinois Pension Code and who is covered 10 under a group health insurance program sponsored by a 11 governmental employer other than the State of Illinois and 12 who has irrevocably elected to waive his or her coverage 13 under this Act and to have his or her spouse considered as 14 the "annuitant" under this Act and not as a "dependent"; or 15 (5) an employee who retires, or has retired, from a qualified 16 position, as determined according to rules promulgated by the 17 Director, under a qualified local government or a qualified 18 rehabilitation facility or a qualified domestic violence 19 shelter or service. (For definition of "retired employee", 20 see (p) post). 21 (c) "Carrier" means (1) an insurance company, a 22 corporation organized under the Limited Health Service 23 Organization Act or the Voluntary Health Services Plan Act, a 24 partnership, or other nongovernmental organization, which is 25 authorized to do group life or group health insurance 26 business in Illinois, or (2) the State of Illinois as a 27 self-insurer. 28 (d) "Compensation" means salary or wages payable on a 29 regular payroll by the State Treasurer on a warrant of the 30 State Comptroller out of any State, trust or federal fund, or 31 by the Governor of the State through a disbursing officer of 32 the State out of a trust or out of federal funds, or by any 33 Department out of State, trust, federal or other funds held 34 by the State Treasurer or the Department, to any person for HB1641 Enrolled -3- LRB9001767MWpc 1 personal services currently performed, and ordinary or 2 accidental disability benefits under Articles 2, 14, 15 3 (including ordinary or accidental disability benefits under 4 an optional program established under Section 15-158.2), 5 paragraphs (b) or (c) of Section 16-106, or Article 18 of the 6 Illinois Pension Code, for disability incurred after January 7 1, 1966, or benefits payable under the Workers' Compensation 8 or Occupational Diseases Act or benefits payable under a sick 9 pay plan established in accordance with Section 36 of the 10 State Finance Act. "Compensation" also means salary or wages 11 paid to an employee of any qualified local government or 12 qualified rehabilitation facility or a qualified domestic 13 violence shelter or service. 14 (e) "Commission" means the State Employees Group 15 Insurance Advisory Commission authorized by this Act. 16 Commencing July 1, 1984, "Commission" as used in this Act 17 means the Illinois Economic and Fiscal Commission as 18 established by the Legislative Commission Reorganization Act 19 of 1984. 20 (f) "Contributory", when referred to as contributory 21 coverage, shall mean optional coverages or benefits elected 22 by the member toward the cost of which such member makes 23 contribution, or which are funded in whole or in part through 24 the acceptance of a reduction in earnings or the foregoing of 25 an increase in earnings by an employee, as distinguished from 26 noncontributory coverage or benefits which are paid entirely 27 by the State of Illinois without reduction of the member's 28 salary. 29 (g) "Department" means any department, institution, 30 board, commission, officer, court or any agency of the State 31 government receiving appropriations and having power to 32 certify payrolls to the Comptroller authorizing payments of 33 salary and wages against such appropriations as are made by 34 the General Assembly from any State fund, or against trust HB1641 Enrolled -4- LRB9001767MWpc 1 funds held by the State Treasurer and includes boards of 2 trustees of the retirement systems created by Articles 2, 14, 3 15, 16 and 18 of the Illinois Pension Code. "Department" 4 also includes the Illinois Comprehensive Health Insurance 5 Board, the Board of Examiners established under the Illinois 6 Public Accounting Act, and the Illinois Rural Bond Bank. 7 (h) "Dependent", when the term is used in the context of 8 the health and life plan, means a member's spouse and any 9 unmarried child (1) from birth to age 19 including an adopted 10 child, a child who lives with the member from the time of the 11 filing of a petition for adoption until entry of an order of 12 adoption, a stepchild or recognized child who lives with the 13 member in a parent-child relationship, or a child who lives 14 with the member if such member is a court appointed guardian 15 of the child, or (2) age 19 to 23 enrolled as a full-time 16 student in any accredited school, financially dependent upon 17 the member, and eligible as a dependent for Illinois State 18 income tax purposes, or (3) age 19 or over who is mentally or 19 physically handicapped as defined in the Illinois Insurance 20 Code. For the health plan only, the term "dependent" also 21 includes any person enrolled prior to the effective date of 22 this Section who is dependent upon the member to the extent 23 that the member may claim such person as a dependent for 24 Illinois State income tax deduction purposes; no other such 25 person may be enrolled. 26 (i) "Director" means the Director of the Illinois 27 Department of Central Management Services. 28 (j) "Eligibility period" means the period of time a 29 member has to elect enrollment in programs or to select 30 benefits without regard to age, sex or health. 31 (k) "Employee" means and includes each officer or 32 employee in the service of a department who (1) receives his 33 compensation for service rendered to the department on a 34 warrant issued pursuant to a payroll certified by a HB1641 Enrolled -5- LRB9001767MWpc 1 department or on a warrant or check issued and drawn by a 2 department upon a trust, federal or other fund or on a 3 warrant issued pursuant to a payroll certified by an elected 4 or duly appointed officer of the State or who receives 5 payment of the performance of personal services on a warrant 6 issued pursuant to a payroll certified by a Department and 7 drawn by the Comptroller upon the State Treasurer against 8 appropriations made by the General Assembly from any fund or 9 against trust funds held by the State Treasurer, and (2) is 10 employed full-time or part-time in a position normally 11 requiring actual performance of duty during not less than 1/2 12 of a normal work period, as established by the Director in 13 cooperation with each department, except that persons elected 14 by popular vote will be considered employees during the 15 entire term for which they are elected regardless of hours 16 devoted to the service of the State, and (3) except that 17 "employee" does not include any person who is not eligible by 18 reason of such person's employment to participate in one of 19 the State retirement systems under Articles 2, 14, 15 (either 20 the regular Article 15 system or an optional program 21 established under Section 15-158.2) or 18, or under paragraph 22 (b) or (c) of Section 16-106, of the Illinois Pension Code, 23 but such term does include persons who are employed during 24 the 6 month qualifying period under Article 14 of the 25 Illinois Pension Code. Such term also includes any person 26 who (1) after January 1, 1966, is receiving ordinary or 27 accidental disability benefits under Articles 2, 14, 15 28 (including ordinary or accidental disability benefits under 29 an optional program established under Section 15-158.2), 30 paragraphs (b) or (c) of Section 16-106, or Article 18 of the 31 Illinois Pension Code, for disability incurred after January 32 1, 1966, (2) receives total permanent or total temporary 33 disability under the Workers' Compensation Act or 34 Occupational Disease Act as a result of injuries sustained or HB1641 Enrolled -6- LRB9001767MWpc 1 illness contracted in the course of employment with the State 2 of Illinois, or (3) is not otherwise covered under this Act 3 and has retired as a participating member under Article 2 of 4 the Illinois Pension Code but is ineligible for the 5 retirement annuity under Section 2-119 of the Illinois 6 Pension Code. However, a person who satisfies the criteria 7 of the foregoing definition of "employee" except that such 8 person is made ineligible to participate in the State 9 Universities Retirement System by clause (4) of the first 10 paragraph of Section 15-107 of the Illinois Pension Code is 11 also an "employee" for the purposes of this Act. "Employee" 12 also includes any person receiving or eligible for benefits 13 under a sick pay plan established in accordance with Section 14 36 of the State Finance Act. "Employee" also includes each 15 officer or employee in the service of a qualified local 16 government, including persons appointed as trustees of 17 sanitary districts regardless of hours devoted to the service 18 of the sanitary district, and each employee in the service of 19 a qualified rehabilitation facility and each full-time 20 employee in the service of a qualified domestic violence 21 shelter or service, as determined according to rules 22 promulgated by the Director. 23 (l) "Member" means an employee, annuitant, retired 24 employee or survivor. 25 (m) "Optional coverages or benefits" means those 26 coverages or benefits available to the member on his or her 27 voluntary election, and at his or her own expense. 28 (n) "Program" means the group life insurance, health 29 benefits and other employee benefits designed and contracted 30 for by the Director under this Act. 31 (o) "Health plan" means a self-insured health insurance 32 program offered by the State of Illinois for the purposes of 33 benefiting employees by means of providing, among others, 34 wellness programs, utilization reviews, second opinions and HB1641 Enrolled -7- LRB9001767MWpc 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 HB1641 Enrolled -8- LRB9001767MWpc 1 townships and township officials, that has duties that 2 include provision of research service, dissemination of 3 information, and other acts for the purpose of improving 4 township government, and that is funded wholly or partly in 5 accordance with Section 85-15 of the Township Code; any 6 not-for-profit corporation or association, with a membership 7 consisting primarily of municipalities, that operates its own 8 utility system, and provides research, training, 9 dissemination of information, or other acts to promote 10 cooperation between and among municipalities that provide 11 utility services and for the advancement of the goals and 12 purposes of its membership; and the Illinois Association of 13 Park Districts. "Qualified local government" means a unit of 14 local government approved by the Director and participating 15 in a program created under subsection (i) of Section 10 of 16 this Act. 17 (t) "Qualified rehabilitation facility" means any 18 not-for-profit organization that is accredited by the 19 Commission on Accreditation of Rehabilitation Facilities or 20 certified by the Department of Mental Health and 21 Developmental Disabilities to provide services to persons 22 with 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 Illinois Department 29 of Public Aid, approved by the Director and participating in 30 a program created under subsection (k) of Section 10. 31 (v) "TRS benefit recipient" means a person who: 32 (1) is not a "member" as defined in this Section; 33 and 34 (2) is receiving a monthly benefit or retirement HB1641 Enrolled -9- LRB9001767MWpc 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. HB1641 Enrolled -10- LRB9001767MWpc 1 (y) "Military leave without pay and benefits" refers to 2 individuals who enlist for active duty in a regular component 3 of the U.S. Armed Forces or other duty not specified or 4 authorized under military leave with pay and benefits. 5 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95; 6 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff. 7 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628, 8 eff. 8-9-96; revised 8-23-96.) 9 (Text of Section after amendment by P.A. 89-507) 10 Sec. 3. Definitions. Unless the context otherwise 11 requires, the following words and phrases as used in this Act 12 shall have the following meanings. The Department may define 13 these and other words and phrases separately for the purpose 14 of implementing specific programs providing benefits under 15 this Act. 16 (a) "Administrative service organization" means any 17 person, firm or corporation experienced in the handling of 18 claims which is fully qualified, financially sound and 19 capable of meeting the service requirements of a contract of 20 administration executed with the Department. 21 (b) "Annuitant" means (1) an employee who retires, or 22 has retired, on or after January 1, 1966 on an immediate 23 annuity under the provisions of Articles 2, 14, 15 (including 24 an employee who has retired and is receiving a retirement 25 annuity under an optional program established under Section 26 15-158.2 and who would also be eligible for a retirement 27 annuity had that person been a participant in the State 28 University Retirement System), paragraphs (b) or (c) of 29 Section 16-106, or Article 18 of the Illinois Pension Code; 30 (2) any person who was receiving group insurance coverage 31 under this Act as of March 31, 1978 by reason of his status 32 as an annuitant, even though the annuity in relation to which 33 such coverage was provided is a proportional annuity based on 34 less than the minimum period of service required for a HB1641 Enrolled -11- LRB9001767MWpc 1 retirement annuity in the system involved; (3) any person not 2 otherwise covered by this Act who has retired as a 3 participating member under Article 2 of the Illinois Pension 4 Code but is ineligible for the retirement annuity under 5 Section 2-119 of the Illinois Pension Code; (4) the spouse of 6 any person who is receiving a retirement annuity under 7 Article 18 of the Illinois Pension Code and who is covered 8 under a group health insurance program sponsored by a 9 governmental employer other than the State of Illinois and 10 who has irrevocably elected to waive his or her coverage 11 under this Act and to have his or her spouse considered as 12 the "annuitant" under this Act and not as a "dependent"; or 13 (5) an employee who retires, or has retired, from a qualified 14 position, as determined according to rules promulgated by the 15 Director, under a qualified local government or a qualified 16 rehabilitation facility or a qualified domestic violence 17 shelter or service. (For definition of "retired employee", 18 see (p) post). 19 (c) "Carrier" means (1) an insurance company, a 20 corporation organized under the Limited Health Service 21 Organization Act or the Voluntary Health Services Plan Act, a 22 partnership, or other nongovernmental organization, which is 23 authorized to do group life or group health insurance 24 business in Illinois, or (2) the State of Illinois as a 25 self-insurer. 26 (d) "Compensation" means salary or wages payable on a 27 regular payroll by the State Treasurer on a warrant of the 28 State Comptroller out of any State, trust or federal fund, or 29 by the Governor of the State through a disbursing officer of 30 the State out of a trust or out of federal funds, or by any 31 Department out of State, trust, federal or other funds held 32 by the State Treasurer or the Department, to any person for 33 personal services currently performed, and ordinary or 34 accidental disability benefits under Articles 2, 14, 15 HB1641 Enrolled -12- LRB9001767MWpc 1 (including ordinary or accidental disability benefits under 2 an optional program established under Section 15-158.2), 3 paragraphs (b) or (c) of Section 16-106, or Article 18 of the 4 Illinois Pension Code, for disability incurred after January 5 1, 1966, or benefits payable under the Workers' Compensation 6 or Occupational Diseases Act or benefits payable under a sick 7 pay plan established in accordance with Section 36 of the 8 State Finance Act. "Compensation" also means salary or wages 9 paid to an employee of any qualified local government or 10 qualified rehabilitation facility or a qualified domestic 11 violence shelter or service. 12 (e) "Commission" means the State Employees Group 13 Insurance Advisory Commission authorized by this Act. 14 Commencing July 1, 1984, "Commission" as used in this Act 15 means the Illinois Economic and Fiscal Commission as 16 established by the Legislative Commission Reorganization Act 17 of 1984. 18 (f) "Contributory", when referred to as contributory 19 coverage, shall mean optional coverages or benefits elected 20 by the member toward the cost of which such member makes 21 contribution, or which are funded in whole or in part through 22 the acceptance of a reduction in earnings or the foregoing of 23 an increase in earnings by an employee, as distinguished from 24 noncontributory coverage or benefits which are paid entirely 25 by the State of Illinois without reduction of the member's 26 salary. 27 (g) "Department" means any department, institution, 28 board, commission, officer, court or any agency of the State 29 government receiving appropriations and having power to 30 certify payrolls to the Comptroller authorizing payments of 31 salary and wages against such appropriations as are made by 32 the General Assembly from any State fund, or against trust 33 funds held by the State Treasurer and includes boards of 34 trustees of the retirement systems created by Articles 2, 14, HB1641 Enrolled -13- LRB9001767MWpc 1 15, 16 and 18 of the Illinois Pension Code. "Department" 2 also includes the Illinois Comprehensive Health Insurance 3 Board, the Board of Examiners established under the Illinois 4 Public Accounting Act, and the Illinois Rural Bond Bank. 5 (h) "Dependent", when the term is used in the context of 6 the health and life plan, means a member's spouse and any 7 unmarried child (1) from birth to age 19 including an adopted 8 child, a child who lives with the member from the time of the 9 filing of a petition for adoption until entry of an order of 10 adoption, a stepchild or recognized child who lives with the 11 member in a parent-child relationship, or a child who lives 12 with the member if such member is a court appointed guardian 13 of the child, or (2) age 19 to 23 enrolled as a full-time 14 student in any accredited school, financially dependent upon 15 the member, and eligible as a dependent for Illinois State 16 income tax purposes, or (3) age 19 or over who is mentally or 17 physically handicapped as defined in the Illinois Insurance 18 Code. For the health plan only, the term "dependent" also 19 includes any person enrolled prior to the effective date of 20 this Section who is dependent upon the member to the extent 21 that the member may claim such person as a dependent for 22 Illinois State income tax deduction purposes; no other such 23 person may be enrolled. 24 (i) "Director" means the Director of the Illinois 25 Department of Central Management Services. 26 (j) "Eligibility period" means the period of time a 27 member has to elect enrollment in programs or to select 28 benefits without regard to age, sex or health. 29 (k) "Employee" means and includes each officer or 30 employee in the service of a department who (1) receives his 31 compensation for service rendered to the department on a 32 warrant issued pursuant to a payroll certified by a 33 department or on a warrant or check issued and drawn by a 34 department upon a trust, federal or other fund or on a HB1641 Enrolled -14- LRB9001767MWpc 1 warrant issued pursuant to a payroll certified by an elected 2 or duly appointed officer of the State or who receives 3 payment of the performance of personal services on a warrant 4 issued pursuant to a payroll certified by a Department and 5 drawn by the Comptroller upon the State Treasurer against 6 appropriations made by the General Assembly from any fund or 7 against trust funds held by the State Treasurer, and (2) is 8 employed full-time or part-time in a position normally 9 requiring actual performance of duty during not less than 1/2 10 of a normal work period, as established by the Director in 11 cooperation with each department, except that persons elected 12 by popular vote will be considered employees during the 13 entire term for which they are elected regardless of hours 14 devoted to the service of the State, and (3) except that 15 "employee" does not include any person who is not eligible by 16 reason of such person's employment to participate in one of 17 the State retirement systems under Articles 2, 14, 15 (either 18 the regular Article 15 system or an optional program 19 established under Section 15-158.2) or 18, or under paragraph 20 (b) or (c) of Section 16-106, of the Illinois Pension Code, 21 but such term does include persons who are employed during 22 the 6 month qualifying period under Article 14 of the 23 Illinois Pension Code. Such term also includes any person 24 who (1) after January 1, 1966, is receiving ordinary or 25 accidental disability benefits under Articles 2, 14, 15 26 (including ordinary or accidental disability benefits under 27 an optional program established under Section 15-158.2), 28 paragraphs (b) or (c) of Section 16-106, or Article 18 of the 29 Illinois Pension Code, for disability incurred after January 30 1, 1966, (2) receives total permanent or total temporary 31 disability under the Workers' Compensation Act or 32 Occupational Disease Act as a result of injuries sustained or 33 illness contracted in the course of employment with the State 34 of Illinois, or (3) is not otherwise covered under this Act HB1641 Enrolled -15- LRB9001767MWpc 1 and has retired as a participating member under Article 2 of 2 the Illinois Pension Code but is ineligible for the 3 retirement annuity under Section 2-119 of the Illinois 4 Pension Code. However, a person who satisfies the criteria 5 of the foregoing definition of "employee" except that such 6 person is made ineligible to participate in the State 7 Universities Retirement System by clause (4) of the first 8 paragraph of Section 15-107 of the Illinois Pension Code is 9 also an "employee" for the purposes of this Act. "Employee" 10 also includes any person receiving or eligible for benefits 11 under a sick pay plan established in accordance with Section 12 36 of the State Finance Act. "Employee" also includes each 13 officer or employee in the service of a qualified local 14 government, including persons appointed as trustees of 15 sanitary districts regardless of hours devoted to the service 16 of the sanitary district, and each employee in the service of 17 a qualified rehabilitation facility and each full-time 18 employee in the service of a qualified domestic violence 19 shelter or service, as determined according to rules 20 promulgated by the Director. 21 (l) "Member" means an employee, annuitant, retired 22 employee or survivor. 23 (m) "Optional coverages or benefits" means those 24 coverages or benefits available to the member on his or her 25 voluntary election, and at his or her own expense. 26 (n) "Program" means the group life insurance, health 27 benefits and other employee benefits designed and contracted 28 for by the Director under this Act. 29 (o) "Health plan" means a self-insured health insurance 30 program offered by the State of Illinois for the purposes of 31 benefiting employees by means of providing, among others, 32 wellness programs, utilization reviews, second opinions and 33 medical fee reviews, as well as for paying for hospital and 34 medical care up to the maximum coverage provided by the plan, HB1641 Enrolled -16- LRB9001767MWpc 1 to its members and their dependents. 2 (p) "Retired employee" means any person who would be an 3 annuitant as that term is defined herein but for the fact 4 that such person retired prior to January 1, 1966. Such term 5 also includes any person formerly employed by the University 6 of Illinois in the Cooperative Extension Service who would be 7 an annuitant but for the fact that such person was made 8 ineligible to participate in the State Universities 9 Retirement System by clause (4) of the first paragraph of 10 Section 15-107 of the Illinois Pension Code. 11 (q) "Survivor" means a person receiving an annuity as a 12 survivor of an employee or of an annuitant. "Survivor" also 13 includes: (1) the surviving dependent of a person who 14 satisfies the definition of "employee" except that such 15 person is made ineligible to participate in the State 16 Universities Retirement System by clause (4) of the first 17 paragraph of Section 15-107 of the Illinois Pension Code; and 18 (2) the surviving dependent of any person formerly employed 19 by the University of Illinois in the Cooperative Extension 20 Service who would be an annuitant except for the fact that 21 such person was made ineligible to participate in the State 22 Universities Retirement System by clause (4) of the first 23 paragraph of Section 15-107 of the Illinois Pension Code. 24 (r) "Medical services" means the services provided 25 within the scope of their licenses by practitioners in all 26 categories licensed under the Medical Practice Act of 1987. 27 (s) "Unit of local government" means any county, 28 municipality, township, school district, special district or 29 other unit, designated as a unit of local government by law, 30 which exercises limited governmental powers or powers in 31 respect to limited governmental subjects, any not-for-profit 32 association with a membership that primarily includes 33 townships and township officials, that has duties that 34 include provision of research service, dissemination of HB1641 Enrolled -17- LRB9001767MWpc 1 information, and other acts for the purpose of improving 2 township government, and that is funded wholly or partly in 3 accordance with Section 85-15 of the Township Code; any 4 not-for-profit corporation or association, with a membership 5 consisting primarily of municipalities, that operates its own 6 utility system, and provides research, training, 7 dissemination of information, or other acts to promote 8 cooperation between and among municipalities that provide 9 utility services and for the advancement of the goals and 10 purposes of its membership; and the Illinois Association of 11 Park Districts. "Qualified local government" means a unit of 12 local government approved by the Director and participating 13 in a program created under subsection (i) of Section 10 of 14 this Act. 15 (t) "Qualified rehabilitation facility" means any 16 not-for-profit organization that is accredited by the 17 Commission on Accreditation of Rehabilitation Facilities or 18 certified by the Department of Human Services (as successor 19 to the Department of Mental Health and Developmental 20 Disabilities) to provide services to persons with 21 disabilities and which receives funds from the State of 22 Illinois for providing those services, approved by the 23 Director and participating in a program created under 24 subsection (j) of Section 10 of this Act. 25 (u) "Qualified domestic violence shelter or service" 26 means any Illinois domestic violence shelter or service and 27 its administrative offices funded by the Department of Human 28 Services (as successor to the Illinois Department of Public 29 Aid), approved by the Director and participating in a program 30 created under subsection (k) of Section 10. 31 (v) "TRS benefit recipient" means a person who: 32 (1) is not a "member" as defined in this Section; 33 and 34 (2) is receiving a monthly benefit or retirement HB1641 Enrolled -18- LRB9001767MWpc 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. HB1641 Enrolled -19- LRB9001767MWpc 1 (y) "Military leave without pay and benefits" refers to 2 individuals who enlist for active duty in a regular component 3 of the U.S. Armed Forces or other duty not specified or 4 authorized under military leave with pay and benefits. 5 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95; 6 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff. 7 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507, 8 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.) 9 Section 1.5. The Property Tax Code is amended by 10 changing Section 18-185 as follows: 11 (35 ILCS 200/18-185) 12 Sec. 18-185. Short title; definitions. This Section and 13 Sections 18-190 through 18-245 may be cited as the Property 14 Tax Extension Limitation Law. As used in Sections 18-190 15 through 18-245: 16 "Consumer Price Index" means the Consumer Price Index for 17 All Urban Consumers for all items published by the United 18 States Department of Labor. 19 "Extension limitation" means (a) the lesser of 5% or the 20 percentage increase in the Consumer Price Index during the 21 12-month calendar year preceding the levy year or (b) the 22 rate of increase approved by voters under Section 18-205. 23 "Affected county" means a county of 3,000,000 or more 24 inhabitants or a county contiguous to a county of 3,000,000 25 or more inhabitants. 26 "Taxing district" has the same meaning provided in 27 Section 1-150, except as otherwise provided in this Section. 28 For the 1991 through 1994 levy years only, "taxing district" 29 includes only each non-home rule taxing district having the 30 majority of its 1990 equalized assessed value within any 31 county or counties contiguous to a county with 3,000,000 or 32 more inhabitants. Beginning with the 1995 levy year, "taxing HB1641 Enrolled -20- LRB9001767MWpc 1 district" includes only each non-home rule taxing district 2 subject to this Law before the 1995 levy year and each 3 non-home rule taxing district not subject to this Law before 4 the 1995 levy year having the majority of its 1994 equalized 5 assessed value in an affected county or counties. Beginning 6 with the levy year in which this Law becomes applicable to a 7 taxing district as provided in Section 18-213, "taxing 8 district" also includes those taxing districts made subject 9 to this Law as provided in Section 18-213. 10 "Aggregate extension" for taxing districts to which this 11 Law applied before the 1995 levy year means the annual 12 corporate extension for the taxing district and those special 13 purpose extensions that are made annually for the taxing 14 district, excluding special purpose extensions: (a) made for 15 the taxing district to pay interest or principal on general 16 obligation bonds that were approved by referendum; (b) made 17 for any taxing district to pay interest or principal on 18 general obligation bonds issued before October 1, 1991; (c) 19 made for any taxing district to pay interest or principal on 20 bonds issued to refund or continue to refund those bonds 21 issued before October 1, 1991; (d) made for any taxing 22 district to pay interest or principal on bonds issued to 23 refund or continue to refund bonds issued after October 1, 24 1991 that were approved by referendum; (e) made for any 25 taxing district to pay interest or principal on revenue bonds 26 issued before October 1, 1991 for payment of which a property 27 tax levy or the full faith and credit of the unit of local 28 government is pledged; however, a tax for the payment of 29 interest or principal on those bonds shall be made only after 30 the governing body of the unit of local government finds that 31 all other sources for payment are insufficient to make those 32 payments; (f) made for payments under a building commission 33 lease when the lease payments are for the retirement of bonds 34 issued by the commission before October 1, 1991, to pay for HB1641 Enrolled -21- LRB9001767MWpc 1 the building project; (g) made for payments due under 2 installment contracts entered into before October 1, 1991; 3 (h) made for payments of principal and interest on bonds 4 issued under the Metropolitan Water Reclamation District Act 5 to finance construction projects initiated before October 1, 6 1991; (i) made for payments of principal and interest on 7 limited bonds, as defined in Section 3 of the Local 8 Government Debt Reform Act, in an amount not to exceed the 9 debt service extension base less the amount in items (b), 10 (c), (e), and (h) of this definition for non-referendum 11 obligations, except obligations initially issued pursuant to 12 referendum;and(j) made for payments of principal and 13 interest on bonds issued under Section 15 of the Local 14 Government Debt Reform Act; and (k) made by a school district 15 that participates in the Special Education District of Lake 16 County, created by special education joint agreement under 17 Section 10-22.31 of the School Code, for payment of the 18 school district's share of the amounts required to be 19 contributed by the Special Education District of Lake County 20 to the Illinois Municipal Retirement Fund under Article 7 of 21 the Illinois Pension Code; the amount of any extension under 22 this item (k) shall be certified by the school district to 23 the county clerk. 24 "Aggregate extension" for the taxing districts to which 25 this Law did not apply before the 1995 levy year (except 26 taxing districts subject to this Law in accordance with 27 Section 18-213) means the annual corporate extension for the 28 taxing district and those special purpose extensions that are 29 made annually for the taxing district, excluding special 30 purpose extensions: (a) made for the taxing district to pay 31 interest or principal on general obligation bonds that were 32 approved by referendum; (b) made for any taxing district to 33 pay interest or principal on general obligation bonds issued 34 before March 1, 1995; (c) made for any taxing district to pay HB1641 Enrolled -22- LRB9001767MWpc 1 interest or principal on bonds issued to refund or continue 2 to refund those bonds issued before March 1, 1995; (d) made 3 for any taxing district to pay interest or principal on bonds 4 issued to refund or continue to refund bonds issued after 5 March 1, 1995 that were approved by referendum; (e) made for 6 any taxing district to pay interest or principal on revenue 7 bonds issued before March 1, 1995 for payment of which a 8 property tax levy or the full faith and credit of the unit of 9 local government is pledged; however, a tax for the payment 10 of interest or principal on those bonds shall be made only 11 after the governing body of the unit of local government 12 finds that all other sources for payment are insufficient to 13 make those payments; (f) made for payments under a building 14 commission lease when the lease payments are for the 15 retirement of bonds issued by the commission before March 1, 16 1995 to pay for the building project; (g) made for payments 17 due under installment contracts entered into before March 1, 18 1995; (h) made for payments of principal and interest on 19 bonds issued under the Metropolitan Water Reclamation 20 District Act to finance construction projects initiated 21 before October 1, 1991; (i) made for payments of principal 22 and interest on limited bonds, as defined in Section 3 of the 23 Local Government Debt Reform Act, in an amount not to exceed 24 the debt service extension base less the amount in items (b), 25 (c), (e), and (h) of this definition for non-referendum 26 obligations, except obligations initially issued pursuant to 27 referendum; (j) made for payments of principal and interest 28 on bonds issued under Section 15 of the Local Government Debt 29 Reform Act; (k) made for payments of principal and interest 30 on bonds authorized by Public Act 88-503 and issued under 31 Section 20a of the Chicago Park District Act for aquarium or 32 museum projects; and (l) made for payments of principal and 33 interest on bonds authorized by Public Act 87-1191 and issued 34 under Section 42 of the Cook County Forest Preserve District HB1641 Enrolled -23- LRB9001767MWpc 1 Act for zoological park projects. 2 "Aggregate extension" for all taxing districts to which 3 this Law applies in accordance with Section 18-213, except 4 for those taxing districts subject to paragraph (2) of 5 subsection (e) of Section 18-213, means the annual corporate 6 extension for the taxing district and those special purpose 7 extensions that are made annually for the taxing district, 8 excluding special purpose extensions: (a) made for the taxing 9 district to pay interest or principal on general obligation 10 bonds that were approved by referendum; (b) made for any 11 taxing district to pay interest or principal on general 12 obligation bonds issued before the date on which the 13 referendum making this Law applicable to the taxing district 14 is held; (c) made for any taxing district to pay interest or 15 principal on bonds issued to refund or continue to refund 16 those bonds issued before the date on which the referendum 17 making this Law applicable to the taxing district is held; 18 (d) made for any taxing district to pay interest or principal 19 on bonds issued to refund or continue to refund bonds issued 20 after the date on which the referendum making this Law 21 applicable to the taxing district is held if the bonds were 22 approved by referendum after the date on which the referendum 23 making this Law applicable to the taxing district is held; 24 (e) made for any taxing district to pay interest or principal 25 on revenue bonds issued before the date on which the 26 referendum making this Law applicable to the taxing district 27 is held for payment of which a property tax levy or the full 28 faith and credit of the unit of local government is pledged; 29 however, a tax for the payment of interest or principal on 30 those bonds shall be made only after the governing body of 31 the unit of local government finds that all other sources for 32 payment are insufficient to make those payments; (f) made for 33 payments under a building commission lease when the lease 34 payments are for the retirement of bonds issued by the HB1641 Enrolled -24- LRB9001767MWpc 1 commission before the date on which the referendum making 2 this Law applicable to the taxing district is held to pay for 3 the building project; (g) made for payments due under 4 installment contracts entered into before the date on which 5 the referendum making this Law applicable to the taxing 6 district is held; (h) made for payments of principal and 7 interest on limited bonds, as defined in Section 3 of the 8 Local Government Debt Reform Act, in an amount not to exceed 9 the debt service extension base less the amount in items (b), 10 (c), and (e) of this definition for non-referendum 11 obligations, except obligations initially issued pursuant to 12 referendum; (i) made for payments of principal and interest 13 on bonds issued under Section 15 of the Local Government Debt 14 Reform Act; and (j) made for a qualified airport authority to 15 pay interest or principal on general obligation bonds issued 16 for the purpose of paying obligations due under, or financing 17 airport facilities required to be acquired, constructed, 18 installed or equipped pursuant to, contracts entered into 19 before March 1, 1996 (but not including any amendments to 20 such a contract taking effect on or after that date). 21 "Aggregate extension" for all taxing districts to which 22 this Law applies in accordance with paragraph (2) of 23 subsection (e) of Section 18-213 means the annual corporate 24 extension for the taxing district and those special purpose 25 extensions that are made annually for the taxing district, 26 excluding special purpose extensions: (a) made for the taxing 27 district to pay interest or principal on general obligation 28 bonds that were approved by referendum; (b) made for any 29 taxing district to pay interest or principal on general 30 obligation bonds issued before the effective date of this 31 amendatory Act of 1997; (c) made for any taxing district to 32 pay interest or principal on bonds issued to refund or 33 continue to refund those bonds issued before the effective 34 date of this amendatory Act of 1997; (d) made for any taxing HB1641 Enrolled -25- LRB9001767MWpc 1 district to pay interest or principal on bonds issued to 2 refund or continue to refund bonds issued after the effective 3 date of this amendatory Act of 1997 if the bonds were 4 approved by referendum after the effective date of this 5 amendatory Act of 1997; (e) made for any taxing district to 6 pay interest or principal on revenue bonds issued before the 7 effective date of this amendatory Act of 1997 for payment of 8 which a property tax levy or the full faith and credit of the 9 unit of local government is pledged; however, a tax for the 10 payment of interest or principal on those bonds shall be made 11 only after the governing body of the unit of local government 12 finds that all other sources for payment are insufficient to 13 make those payments; (f) made for payments under a building 14 commission lease when the lease payments are for the 15 retirement of bonds issued by the commission before the 16 effective date of this amendatory Act of 1997 to pay for the 17 building project; (g) made for payments due under installment 18 contracts entered into before the effective date of this 19 amendatory Act of 1997; (h) made for payments of principal 20 and interest on limited bonds, as defined in Section 3 of the 21 Local Government Debt Reform Act, in an amount not to exceed 22 the debt service extension base less the amount in items (b), 23 (c), and (e) of this definition for non-referendum 24 obligations, except obligations initially issued pursuant to 25 referendum; (i) made for payments of principal and interest 26 on bonds issued under Section 15 of the Local Government Debt 27 Reform Act; and (j) made for a qualified airport authority to 28 pay interest or principal on general obligation bonds issued 29 for the purpose of paying obligations due under, or financing 30 airport facilities required to be acquired, constructed, 31 installed or equipped pursuant to, contracts entered into 32 before March 1, 1996 (but not including any amendments to 33 such a contract taking effect on or after that date). 34 "Debt service extension base" means an amount equal to HB1641 Enrolled -26- LRB9001767MWpc 1 that portion of the extension for a taxing district for the 2 1994 levy year, or for those taxing districts subject to this 3 Law in accordance with Section 18-213, except for those 4 subject to paragraph (2) of subsection (e) of Section 18-213, 5 for the levy year in which the referendum making this Law 6 applicable to the taxing district is held, or for those 7 taxing districts subject to this Law in accordance with 8 paragraph (2) of subsection (e) of Section 18-213 for the 9 1996 levy year, constituting an extension for payment of 10 principal and interest on bonds issued by the taxing district 11 without referendum, but not including (i) bonds authorized by 12 Public Act 88-503 and issued under Section 20a of the Chicago 13 Park District Act for aquarium and museum projects; (ii) 14 bonds issued under Section 15 of the Local Government Debt 15 Reform Act; or (iii) refunding obligations issued to refund 16 or to continue to refund obligations initially issued 17 pursuant to referendum. The debt service extension base may 18 be established or increased as provided under Section 18-212. 19 "Special purpose extensions" include, but are not limited 20 to, extensions for levies made on an annual basis for 21 unemployment and workers' compensation, self-insurance, 22 contributions to pension plans, and extensions made pursuant 23 to Section 6-601 of the Illinois Highway Code for a road 24 district's permanent road fund whether levied annually or 25 not. The extension for a special service area is not 26 included in the aggregate extension. 27 "Aggregate extension base" means the taxing district's 28 last preceding aggregate extension as adjusted under Sections 29 18-215 through 18-230. 30 "Levy year" has the same meaning as "year" under Section 31 1-155. 32 "New property" means (i) the assessed value, after final 33 board of review or board of appeals action, of new 34 improvements or additions to existing improvements on any HB1641 Enrolled -27- LRB9001767MWpc 1 parcel of real property that increase the assessed value of 2 that real property during the levy year multiplied by the 3 equalization factor issued by the Department under Section 4 17-30 and (ii) the assessed value, after final board of 5 review or board of appeals action, of real property not 6 exempt from real estate taxation, which real property was 7 exempt from real estate taxation for any portion of the 8 immediately preceding levy year, multiplied by the 9 equalization factor issued by the Department under Section 10 17-30. 11 "Qualified airport authority" means an airport authority 12 organized under the Airport Authorities Act and located in a 13 county bordering on the State of Wisconsin and having a 14 population in excess of 200,000 and not greater than 500,000. 15 "Recovered tax increment value" means the amount of the 16 current year's equalized assessed value, in the first year 17 after a municipality terminates the designation of an area as 18 a redevelopment project area previously established under the 19 Tax Increment Allocation Development Act in the Illinois 20 Municipal Code, previously established under the Industrial 21 Jobs Recovery Law in the Illinois Municipal Code, or 22 previously established under the Economic Development Area 23 Tax Increment Allocation Act, of each taxable lot, block, 24 tract, or parcel of real property in the redevelopment 25 project area over and above the initial equalized assessed 26 value of each property in the redevelopment project area. 27 Except as otherwise provided in this Section, "limiting 28 rate" means a fraction the numerator of which is the last 29 preceding aggregate extension base times an amount equal to 30 one plus the extension limitation defined in this Section and 31 the denominator of which is the current year's equalized 32 assessed value of all real property in the territory under 33 the jurisdiction of the taxing district during the prior levy 34 year. For those taxing districts that reduced their HB1641 Enrolled -28- LRB9001767MWpc 1 aggregate extension for the last preceding levy year, the 2 highest aggregate extension in any of the last 3 preceding 3 levy years shall be used for the purpose of computing the 4 limiting rate. The denominator shall not include new 5 property. The denominator shall not include the recovered 6 tax increment value. 7 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff. 8 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, 9 eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.) 10 Section 2. The Illinois Pension Code is amended by 11 changing Sections 1-113, 5-152.1, 7-132, 7-171, 8-138, 12 8-150.1, 8-154, 8-159, 8-226, 11-134, 11-145.1, 11-149, 13 11-154, 11-215, 14-103.04, 14-104, 15-106, 15-112, 15-113.2, 14 15-113.3, 15-113.4, 15-113.5, 15-113.7, 15-125, 15-136.2, 15 15-143, 15-153.2, 15-157, 15-167.2, 15-185, 15-190, 15-191, 16 16-140, and 16-163 and adding Sections 8-138.3, 9-121.15, 17 9-220.1, 11-133.2, 14-104.10, 14-105.7, and 15-168.1 as 18 follows: 19 (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113) 20 Sec. 1-113. Investment authority. The investment 21 authority of a board of trustees of a retirement system or 22 pension fund established under this Code shall, if so 23 provided in the Article establishing such retirement system 24 or pension fund, embrace the following investments: 25 (1) Bonds, notes and other direct obligations of the 26 United States Government; bonds, notes and other obligations 27 of any United States Government agency or instrumentality, 28 whether or not guaranteed; and obligations the principal and 29 interest of which are guaranteed unconditionally by the 30 United States Government or by an agency or instrumentality 31 thereof. 32 (2) Obligations of the Inter-American Development Bank, HB1641 Enrolled -29- LRB9001767MWpc 1 the International Bank for Reconstruction and Development, 2 the African Development Bank, the International Finance 3 Corporation, and the Asian Development Bank. 4 (3) Obligations of any state, or of any political 5 subdivision in Illinois, or of any county or city in any 6 other state having a population as shown by the last federal 7 census of not less than 30,000 inhabitants provided that such 8 political subdivision is not permitted by law to become 9 indebted in excess of 10% of the assessed valuation of 10 property therein and has not defaulted for a period longer 11 than 30 days in the payment of interest and principal on any 12 of its general obligations or indebtedness during a period of 13 10 calendar years immediately preceding such investment. 14 (4) Nonconvertible bonds, debentures, notes and other 15 corporate obligations of any corporation created or existing 16 under the laws of the United States or any state, district or 17 territory thereof, provided there has been no default on the 18 obligations of the corporation or its predecessor(s) during 19 the 5 calendar years immediately preceding the purchase. Up 20 to 5% of the assets of a pension fund established under 21 Article 9 of this Code may be invested in nonconvertible 22 bonds, debentures, notes, and other corporate obligations of 23 corporations created or existing under the laws of a foreign 24 country, provided there has been no default on the 25 obligations of the corporation or its predecessors during the 26 5 calendar years immediately preceding the date of purchase. 27 (5) Obligations guaranteed by the Government of Canada, 28 or by any Province of Canada, or by any Canadian city with a 29 population of not less than 150,000 inhabitants, provided (a) 30 they are payable in United States currency and are exempt 31 from any Canadian withholding tax; (b) the investment in any 32 one issue of bonds shall not exceed 10% of the amount 33 outstanding; and (c) the total investments at book value in 34 Canadian securities shall be limited to 5% of the total HB1641 Enrolled -30- LRB9001767MWpc 1 investment account of the board at book value. 2 (5.1) Direct obligations of the State of Israel for the 3 payment of money, or obligations for the payment of money 4 which are guaranteed as to the payment of principal and 5 interest by the State of Israel, or common or preferred stock 6 or notes issued by a bank owned or controlled in whole or in 7 part by the State of Israel, on the following conditions: 8 (a) The total investments in such obligations shall 9 not exceed 5% of the book value of the aggregate 10 investments owned by the board; 11 (b) The State of Israel shall not be in default in 12 the payment of principal or interest on any of its direct 13 general obligations on the date of such investment; 14 (c) The bonds, stock or notes, and interest thereon 15 shall be payable in currency of the United States; 16 (d) The bonds shall (1) contain an option for the 17 redemption thereof after 90 days from date of purchase or 18 (2) either become due 5 years from the date of their 19 purchase or be subject to redemption 120 days after the 20 date of notice for redemption; 21 (e) The investment in these obligations has been 22 approved in writing by investment counsel employed by the 23 board, which counsel shall be a national or state bank or 24 trust company authorized to do a trust business in the 25 State of Illinois, or an investment advisor qualified 26 under the Federal Investment Advisors Act of 1940 and 27 registered under the Illinois Securities Act of 1953; 28 (f) The fund or system making the investment shall 29 have at least $5,000,000 of net present assets. 30 (6) Notes secured by mortgages under Sections 203, 207, 31 220 and 221 of the National Housing Act which are insured by 32 the Federal Housing Commissioner, or his successor assigns, 33 or debentures issued by such Commissioner, which are 34 guaranteed as to principal and interest by the Federal HB1641 Enrolled -31- LRB9001767MWpc 1 Housing Administration, or agency of the United States 2 Government, provided the aggregate investment shall not 3 exceed 20% of the total investment account of the board at 4 book value, and provided further that the investment in such 5 notes under Sections 220 and 221 shall in no event exceed 6 one-half of the maximum investment in notes under this 7 paragraph. 8 (7) Loans to veterans guaranteed in whole or part by the 9 United States Government pursuant to Title III of the Act of 10 Congress known as the "Servicemen's Readjustment Act of 11 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or 12 supplemented from time to time, provided such guaranteed 13 loans are liens upon real estate. 14 (8) Common and preferred stocks and convertible debt 15 securities authorized for investment of trust funds under the 16 laws of the State of Illinois, provided: 17 (a) the common stocks, except as provided in 18 subparagraph (h), are listed on a national securities 19 exchange as defined in the Federal Securities Exchange 20 Act, or quoted in the National Association of Securities 21 Dealers Automated Quotation System (NASDAQ); 22 (b) the securities are of a corporation created or 23 existing under the laws of the United States or any 24 state, district or territory thereof, except that up to 25 5% of the assets of a pension fund established under 26 Article 9 of this Code may be invested in securities 27 issued by corporations created or existing under the laws 28 of a foreign country, if those securities are otherwise 29 in conformance with this paragraph (8); 30 (c) the corporation is not in arrears on payment of 31 dividends on its preferred stock; 32 (d) the total book value of all stocks and 33 convertible debt owned by any pension fund or retirement 34 system shall not exceed 40% of the aggregate book value HB1641 Enrolled -32- LRB9001767MWpc 1 of all investments of such pension fund or retirement 2 system, except for a pension fund or retirementthat3 system governed by Article 9 or 17, where the total of 4 all stocks and convertible debt shall not exceed 50% of 5 the aggregate book value of all fund investments; 6 (e) the book value of stock and convertible debt 7 investments in any one corporation shall not exceed 5% of 8 the total investment account at book value in which such 9 securities are held, determined as of the date of the 10 investment, and the investments in the stock of any one 11 corporation shall not exceed 5% of the total outstanding 12 stock of such corporation, and the investments in the 13 convertible debt of any one corporation shall not exceed 14 5% of the total amount of such debt that may be 15 outstanding; 16 (f) the straight preferred stocks or convertible 17 preferred stocks and convertible debt securities are 18 issued or guaranteed by a corporation whose common stock 19 qualifies for investment by the board; and 20 (g) that any common stocks not listed or quoted as 21 provided in subdivision 8(a) above be limited to the 22 following types of institutions: (a) any bank which is a 23 member of the Federal Deposit Insurance Corporation 24 having capital funds represented by capital stock, 25 surplus and undivided profits of at least $20,000,000; 26 (b) any life insurance company having capital funds 27 represented by capital stock, special surplus funds and 28 unassigned surplus totalling at least $50,000,000; and 29 (c) any fire or casualty insurance company, or a 30 combination thereof, having capital funds represented by 31 capital stock, net surplus and voluntary reserves of at 32 least $50,000,000. 33 (9) Withdrawable accounts of State chartered and federal 34 chartered savings and loan associations insured by the HB1641 Enrolled -33- LRB9001767MWpc 1 Federal Savings and Loan Insurance Corporation; deposits or 2 certificates of deposit in State and national banks insured 3 by the Federal Deposit Insurance Corporation; and share 4 accounts or share certificate accounts in a State or federal 5 credit union, the accounts of which are insured as required 6 by The Illinois Credit Union Act or the Federal Credit Union 7 Act, as applicable. 8 No bank or savings and loan association shall receive 9 investment funds as permitted by this subsection (9), unless 10 it has complied with the requirements established pursuant to 11 Section 6 of the Public Funds Investment Act. 12 (10) Trading, purchase or sale of listed options on 13 underlying securities owned by the board. 14 (11) Contracts and agreements supplemental thereto 15 providing for investments in the general account of a life 16 insurance company authorized to do business in Illinois. 17 (12) Conventional mortgage pass-through securities which 18 are evidenced by interests in Illinois owner-occupied 19 residential mortgages, having not less than an "A" rating 20 from at least one national securities rating service. Such 21 mortgages may have loan-to-value ratios up to 95%, provided 22 that any amount over 80% is insured by private mortgage 23 insurance. The pool of such mortgages shall be insured by 24 mortgage guaranty or equivalent insurance, in accordance with 25 industry standards. 26 (13) Pooled or commingled funds managed by a national or 27 State bank which is authorized to do a trust business in the 28 State of Illinois, shares of registered investment companies 29 as defined in the federal Investment Company Act of 1940 30 which are registered under that Act, and separate accounts of 31 a life insurance company authorized to do business in 32 Illinois, where such pooled or commingled funds, shares, or 33 separate accounts are comprised of common or preferred 34 stocks, bonds, or money market instruments. HB1641 Enrolled -34- LRB9001767MWpc 1 (14) Pooled or commingled funds managed by a national or 2 state bank which is authorized to do a trust business in the 3 State of Illinois, separate accounts managed by a life 4 insurance company authorized to do business in Illinois, and 5 commingled group trusts managed by an investment adviser 6 registered under the federal Investment Advisors Act of 1940 7 (15 U.S.C. 80b-1 et seq.) and under the Illinois Securities 8 Law of 1953, where such pooled or commingled funds, separate 9 accounts or commingled group trusts are comprised of real 10 estate or loans upon real estate secured by first or second 11 mortgages. The total investment in such pooled or commingled 12 funds, commingled group trusts and separate accounts shall 13 not exceed 10% of the aggregate book value of all investments 14 owned by the fund. 15 (15) Investment companies which (a) are registered as 16 such under the Investment Company Act of 1940, (b) are 17 diversified, open-end management investment companies and (c) 18 invest only in money market instruments. 19 (16) Up to 10% of the assets of the fund may be invested 20 in investments not included in paragraphs (1) through (15) of 21 this Section, provided that such investments comply with the 22 requirements and restrictions set forth in Sections 1-109, 23 1-109.1, 1-109.2, 1-110 and 1-111 of this Code. 24 The board shall have the authority to enter into such 25 agreements and to execute such documents as it determines to 26 be necessary to complete any investment transaction. 27 Any limitations herein set forth shall be applicable only 28 at the time of purchase and shall not require the liquidation 29 of any investment at any time. 30 All investments shall be clearly held and accounted for 31 to indicate ownership by such board. Such board may direct 32 the registration of securities in its own name or in the name 33 of a nominee created for the express purpose of registration 34 of securities by a national or state bank or trust company HB1641 Enrolled -35- LRB9001767MWpc 1 authorized to conduct a trust business in the State of 2 Illinois. 3 Investments shall be carried at cost or at abookvalue 4 determined in accordance with generally accepted accounting 5 principles and accounting procedures approved by such board. 6No adjustments shall be made in investment carrying values7for ordinary current market price fluctuations; but reserves8may be provided to account for possible losses or unrealized9gains as determined by such board.10The book value of investments held by any pension fund or11retirement system in one or more commingled investment12accounts shall be the cost of its units of participation in13such commingled account or accounts as recorded on the books14of such board.15 (Source: P.A. 86-272; 87-575; 87-794; 87-895.) 16 (40 ILCS 5/5-152.1) 17 Sec. 5-152.1. Parent's annuity. 18 (a) A parent's annuity shall be provided for the natural 19 parent or parents of a policeman who dies on or after the 20 effective date of this amendatory Act of 1996 while (i) in 21 active service, (ii) disabled and in receipt of or pending 22 receipt of a disability benefit, (iii) on leave of absence 23 with whole or part pay, (iv) on leave of absence without pay 24 during a period of not more than 3 months in the aggregate, 25 (v) in receipt of annuity granted after 20 years of service, 26 or (vi) out of the service after 20 years of service and 27 pending receipt of annuity to which the policeman has a right 28 upon attainment of age 50 or more. However, the parent's 29 annuity is payable only if there is no surviving spouse or 30 child entitled to an annuity as a result of the policeman's 31 death, and satisfactory proof is submitted to the board that 32 the policeman was contributing to the support of the parent 33 or parents at the time of death. HB1641 Enrolled -36- LRB9001767MWpc 1 (b) Beginning July 1, 1997, a parent's annuity shall be 2 available to the natural parent or parents of a policeman who 3 died before August 9, 1996 while (i) in active service, (ii) 4 disabled and in receipt of or pending receipt of a disability 5 benefit, (iii) on leave of absence with whole or part pay, 6 (iv) on leave of absence without pay during a period of not 7 more than 3 months in the aggregate, (v) in receipt of 8 annuity granted after 20 years of service, or (vi) out of the 9 service after 20 years of service and pending receipt of 10 annuity to which the policeman has a right upon attainment of 11 age 50 or more. However, the parent's annuity is payable 12 only if there is no surviving spouse or child entitled to an 13 annuity as a result of the policeman's death, and 14 satisfactory proof is submitted to the board that the 15 policeman was contributing to the support of the parent or 16 parents at the time of death. The parent's annuity shall 17 begin no earlier than the first day of the month following 18 the month in which the application for parent's annuity is 19 received by the Fund. 20 (c) The parent's annuity shall be 18% of the current 21 annual salary attached to the classified position held by the 22 policeman at the time of death or withdrawal from service for 23 each eligible surviving parent, payable on a monthly basis. 24 (Source: P.A. 89-643, eff. 8-9-96.) 25 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132) 26 Sec. 7-132. Municipalities, instrumentalities and 27 participating instrumentalities included and effective dates. 28 (A) Municipalities and their instrumentalities. 29 (a) The following described municipalities, but not 30 including any with more than 1,000,000 inhabitants, and the 31 instrumentalities thereof, shall be included within and be 32 subject to this Article beginning upon the effective dates 33 specified by the Board: HB1641 Enrolled -37- LRB9001767MWpc 1 (1) Except as to the municipalities and 2 instrumentalities thereof specifically excluded under 3 this Article, every county shall be subject to this 4 Article, and all cities, villages and incorporated towns 5 having a population in excess of 5,000 inhabitants as 6 determined by the last preceding decennial or subsequent 7 federal census, shall be subject to this Article 8 following publication of the census by the Bureau of the 9 Census. Within 90 days after publication of the census, 10 the Board shall notify any municipality that has become 11 subject to this Article as a result of that census, and 12 shall provide information to the corporate authorities of 13 the municipality explaining the duties and consequences 14 of participation. The notification shall also include a 15 proposed date upon which participation by the 16 municipality will commence. 17 However, for any city, village or incorporated town 18 that attains a population over 5,000 inhabitants after 19 having provided social security coverage for its 20 employees under the Social Security Enabling Act, 21 participation under this Article shall not be mandatory 22 but may be elected in accordance with subparagraph (3) or 23 (4) of this paragraph (a), whichever is applicable. 24 (2) School districts, other than those specifically 25 excluded under this Article, shall be subject to this 26 Article, without election, with respect to all employees 27 thereof. 28 (3) Towns and all other bodies politic and 29 corporate which are formed by vote of, or are subject to 30 control by, the electors in towns and are located in 31 towns which are not participating municipalities on the 32 effective date of this Act, may become subject to this 33 Article by election pursuant to Section 7-132.1. 34 (4) Any other municipality (together with its HB1641 Enrolled -38- LRB9001767MWpc 1 instrumentalities), other than those specifically 2 excluded from participation and those described in 3 paragraph (3) above, may elect to be included either by 4 referendum under Section 7-134 or by the adoption of a 5 resolution or ordinance by its governing body. A copy of 6 such resolution or ordinance duly authenticated and 7 certified by the clerk of the municipality or other 8 appropriate official of its governing body shall 9 constitute the required notice to the board of such 10 action. 11 (b) A municipality that is about to begin participation 12 shall submit to the Board an application to participate, in a 13 form acceptable to the Board, not later than 90 days prior to 14 the proposed effective date of participation. The Board 15 shall act upon the application within 90 days, and if it 16 finds that the application is in conformity with its 17 requirements and the requirements of this Article, 18 participation by the applicant shall commence on a date 19 acceptable to the municipality and specified by the Board, 20 but in no event more than one year from the date of 21 application. 22 (c) A participating municipality which succeeds to the 23 functions of a participating municipality which is dissolved 24 or terminates its existence shall assume and be transferred 25 the net accumulation balance in the municipality reserve and 26 the municipality account receivable balance of the terminated 27 municipality. 28 (d) In the case of a Veterans Assistance Commission 29 whose employees were being treated by the Fund on January 1, 30 1990 as employees of the county served by the Commission, the 31 Fund may continue to treat the employees of the Veterans 32 Assistance Commission as county employees for the purposes of 33 this Article, unless the Commission becomes a participating 34 instrumentality in accordance with subsection (B) of this HB1641 Enrolled -39- LRB9001767MWpc 1 Section. 2 (B) Participating instrumentalities. 3 (a) The participating instrumentalities designated in 4 paragraph (b) of this subsection shall be included within and 5 be subject to this Article if: 6 (1) an application to participate, in a form 7 acceptable to the Board and adopted by a two-thirds vote 8 of the governing body, is presented to the Board not 9 later than 90 days prior to the proposed effective date; 10 and 11 (2) the Board finds that the application is in 12 conformity with its requirements, that the applicant has 13 reasonable expectation to continue as a political entity 14 for a period of at least 10 years and has the prospective 15 financial capacity to meet its current and future 16 obligations to the Fund, and that the actuarial soundness 17 of the Fund may be reasonably expected to be unimpaired 18 by approval of participation by the applicant. 19 The Board shall notify the applicant of its findings 20 within 90 days after receiving the application, and if the 21 Board approves the application, participation by the 22 applicant shall commence on the effective date specified by 23 the Board. 24 (b) The following participating instrumentalities, so 25 long as they meet the requirements of Section 7-108 and the 26 area served by them or within their jurisdiction is not 27 located entirely within a municipality having more than one 28 million inhabitants, may be included hereunder: 29 i. Township School District Trustees. 30 ii. Multiple County and Consolidated Health 31 Departments created under Division 5-25 of the Counties 32 Code or its predecessor law. 33 iii. Public Building Commissions created under the 34 Public Building Commission Act, and located in counties HB1641 Enrolled -40- LRB9001767MWpc 1 of less than 1,000,000 inhabitants. 2 iv. A multitype, consolidated or cooperative 3 library system created under the Illinois Library System 4 Act. Any library system created under the Illinois 5 Library System Act that has one or more predecessors that 6 participated in the Fund may participate in the Fund upon 7 application. The Board shall establish procedures for 8 implementing the transfer of rights and obligations from 9 the predecessor system to the successor system. 10 v. Regional Planning Commissions created under 11 Division 5-14 of the Counties Code or its predecessor 12 law. 13 vi. Local Public Housing Authorities created under 14 the Housing Authorities Act, located in counties of less 15 than 1,000,000 inhabitants. 16 vii. Illinois Municipal League. 17 viii. Northeastern Illinois Metropolitan Area 18 Planning Commission. 19 ix. Southwestern Illinois Metropolitan Area 20 Planning Commission. 21 x. Illinois Association of Park Districts. 22 xi. Illinois Supervisors, County Commissioners and 23 Superintendents of Highways Association. 24 xii. Tri-City Regional Port District. 25 xiii. An association, or not-for-profit 26 corporation, membership in which is authorized under 27 Section 85-15 of the Township Code. 28 xiv. Drainage Districts operating under the 29 Illinois Drainage Code. 30 xv. Local mass transit districts created under the 31 Local Mass Transit District Act. 32 xvi. Soil and water conservation districts created 33 under the Soil and Water Conservation Districts Law. 34 xvii. Commissions created to provide water supply HB1641 Enrolled -41- LRB9001767MWpc 1 or sewer services or both under Division 135 or Division 2 136 of Article 11 of the Illinois Municipal Code. 3 xviii. Public water districts created under the 4 Public Water District Act. 5 xix. Veterans Assistance Commissions established 6 under Section 9 of the Military Veterans Assistance Act 7 that serve counties with a population of less than 8 1,000,000. 9 xx. The governing body of an entity, other than a 10 vocational education cooperative, created under an 11 intergovernmental cooperative agreement established 12 between participating municipalities under the 13 Intergovernmental Cooperation Act, which by the terms of 14 the agreement is the employer of the persons performing 15 services under the agreement under the usual common law 16 rules determining the employer-employee relationship. 17 The governing body of such an intergovernmental 18 cooperative entity established prior to July 1, 1988 may 19 make participation retroactive to the effective date of 20 the agreement and, if so, the effective date of 21 participation shall be the date the required application 22 is filed with the fund. If any such entity is unable to 23 pay the required employer contributions to the fund, then 24 the participating municipalities shall make payment of 25 the required contributions and the payments shall be 26 allocated as provided in the agreement or, if not so 27 provided, equally among them. 28 xxi. The Illinois Municipal Electric Agency. 29 xxii. The Waukegan Port District. 30 xxiii. The Fox Waterway Agency created under the 31 Fox Waterway Agency Act. 32 (c) The governing boards of special education joint 33 agreements created under Section 10-22.31 of the School Code 34 without designation of an administrative district,shall be HB1641 Enrolled -42- LRB9001767MWpc 1 included within and be subject to this Article as 2 participating instrumentalities when the joint agreement 3 becomes effective. However, the governing board of any such 4 special education joint agreement in effect before September 5 5, 1975 shall not be subject to this Article unless the joint 6 agreement is modified by the school districts to provide that 7 the governing board is subject to this Article, except as 8 otherwise provided by this Section. 9 The governing board of the Special Education District of 10 Lake County shall become subject to this Article as a 11 participating instrumentality on July 1, 1997. 12 Notwithstanding subdivision (a)1 of Section 7-139, on the 13 effective date of participation, employees of the governing 14 board of the Special Education District of Lake County shall 15 receive creditable service for their prior service with that 16 employer, up to a maximum of 5 years, without any employee 17 contribution. Employees may establish creditable service for 18 the remainder of their prior service with that employer, if 19 any, by applying in writing and paying an employee 20 contribution in an amount determined by the Fund, based on 21 the employee contribution rates in effect at the time of 22 application for the creditable service and the employee's 23 salary rate on the effective date of participation for that 24 employer, plus interest at the effective rate from the date 25 of the prior service to the date of payment. Application for 26 this creditable service must be made before July 1, 1998; the 27 payment may be made at any time while the employee is still 28 in service. The employer may elect to make the required 29 contribution on behalf of the employee. 30 The governing board of a special education joint 31 agreement created under Section 10-22.31 of the School Code 32 for which an administrative district has been designated, if 33 there are employees of the cooperative educational entity who 34 are not employees of the administrative district, may elect HB1641 Enrolled -43- LRB9001767MWpc 1 to participate in the Fund and be included within this 2 Article as a participating instrumentality, subject to such 3 application procedures and rules as the Board may prescribe. 4 The Boards of Control of cooperative or joint educational 5 programs or projects created and administered under Section 6 3-15.14 of the School Code, whether or not the Boards act as 7 their own administrative district, shall be included within 8 and be subject to this Article as participating 9 instrumentalities when the agreement establishing the 10 cooperative or joint educational program or project becomes 11 effective. 12 The governing board of a special education joint 13 agreement entered into after June 30, 1984 and prior to 14 September 17, 1985 which provides for representation on the 15 governing board by less than all the participating districts 16 shall be included within and subject to this Article as a 17 participating instrumentality. Such participation shall be 18 effective as of the date the joint agreement becomes 19 effective. 20 The governing boards of educational service centers 21 established under Section 2-3.62 of the School Code shall be 22 included within and subject to this Article as participating 23 instrumentalities. The governing boards of vocational 24 education cooperative agreements created under the 25 Intergovernmental Cooperation Act and approved by the State 26 Board of Education shall be included within and be subject to 27 this Article as participating instrumentalities. If any such 28 governing boards or boards of control are unable to pay the 29 required employer contributions to the fund, then the school 30 districts served by such boards shall make payment of 31 required contributions as provided in Section 7-172. The 32 payments shall be allocated among the several school 33 districts in proportion to the number of students in average 34 daily attendance for the last full school year for each HB1641 Enrolled -44- LRB9001767MWpc 1 district in relation to the total number of students in 2 average attendance for such period for all districts served. 3 If such educational service centers, vocational education 4 cooperatives or cooperative or joint educational programs or 5 projects created and administered under Section 3-15.14 of 6 the School Code are dissolved, the assets and obligations 7 shall be distributed among the districts in the same 8 proportions unless otherwise provided. 9 (d) The governing boards of special recreation joint 10 agreements created under Section 8-10b of the Park District 11 Code, operating without designation of an administrative 12 district or an administrative municipality appointed to 13 administer the program operating under the authority of such 14 joint agreement shall be included within and be subject to 15 this Article as participating instrumentalities when the 16 joint agreement becomes effective. However, the governing 17 board of any such special recreation joint agreement in 18 effect before January 1, 1980 shall not be subject to this 19 Article unless the joint agreement is modified, by the 20 districts and municipalities which are parties to the 21 agreement, to provide that the governing board is subject to 22 this Article. 23 If the Board returns any employer and employee 24 contributions to any employer which erroneously submitted 25 such contributions on behalf of a special recreation joint 26 agreement, the Board shall include interest computed from the 27 end of each year to the date of payment, not compounded, at 28 the rate of 7% per annum. 29 (e) Each multi-township assessment district, the board 30 of trustees of which has adopted this Article by ordinance 31 prior to April 1, 1982, shall be a participating 32 instrumentality included within and subject to this Article 33 effective December 1, 1981. The contributions required under 34 Section 7-172 shall be included in the budget prepared under HB1641 Enrolled -45- LRB9001767MWpc 1 and allocated in accordance with Section 2-30 of the Property 2 Tax Code. 3 (f) Beginning January 1, 1992, each prospective 4 participating municipality or participating instrumentality 5 shall pay to the Fund the cost, as determined by the Board, 6 of a study prepared by the Fund or its actuary, detailing the 7 prospective costs of participation in the Fund to be expected 8 by the municipality or instrumentality. 9 (Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.) 10 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171) 11 Sec. 7-171. Finance; taxes. 12 (a) Each municipality other than a school district shall 13 appropriate an amount sufficient to provide for the current 14 municipality contributions required by Section 7-172 of this 15 Article, for the fiscal year for which the appropriation is 16 made and all amounts due for municipal contributions for 17 previous years. Those municipalities which have been assessed 18 an annual amount to amortize its unfunded obligation, as 19 provided in subparagraph 5 of paragraph (a) of Section 7-172 20 of this Article, shall include in the appropriation an amount 21 sufficient to pay the amount assessed. The appropriation 22 shall be based upon an estimate of assets available for 23 municipality contributions and liabilities therefor for the 24 fiscal year for which appropriations are to be made, 25 including funds available from levies for this purpose in 26 prior years. 27 (b) For the purpose of providing monies for municipality 28 contributions, beginning for the year in which a municipality 29 is included in this fund: 30 (1) A municipality other than a school district may 31 levy a tax which shall not exceed the amount appropriated 32 for municipality contributions. 33 (2) A school district may levy a tax in an amount HB1641 Enrolled -46- LRB9001767MWpc 1 reasonably calculated at the time of the levy to provide 2 for the municipality contributions required under Section 3 7-172 of this Article for the fiscal years for which 4 revenues from the levy will be received and all amounts 5 due for municipal contributions for previous years. Any 6 levy adopted before the effective date of this amendatory 7 Act of 1995 by a school district shall be considered 8 valid and authorized to the extent that the amount was 9 reasonably calculated at the time of the levy to provide 10 for the municipality contributions required under Section 11 7-172 for the fiscal years for which revenues from the 12 levy will be received and all amounts due for municipal 13 contributions for previous years. In no event shall a 14 budget adopted by a school district limit a levy of that 15 school district adopted under this Section. 16 (c) Any county which is a part of an educational service 17 region comprised of two or more counties formed under Section 18 3A of The School Code may include in its appropriation an 19 amount sufficient to provide its proportionate share of the 20 municipality contributions of the region. The tax levy 21 authorized by this Section may include an amount necessary to 22 provide monies for this contribution. 23 (d) Any county that is a part of a multiple-county 24 health department or consolidated health department which is 25 formed under "An Act in relation to the establishment and 26 maintenance of county and multiple-county public health 27 departments", approved July 9, 1943, as amended, and which is 28 a participating instrumentality may include in the county's 29 appropriation an amount sufficient to provide its 30 proportionate share of municipality contributions of the 31 department. The tax levy authorized by this Section may 32 include the amount necessary to provide monies for this 33 contribution. 34 (d-5) A school district participating in a special HB1641 Enrolled -47- LRB9001767MWpc 1 education joint agreement created under Section 10-22.31 of 2 the School Code that is a participating instrumentality may 3 include in the school district's tax levy under this Section 4 an amount sufficient to provide its proportionate share of 5 the municipality contributions for current and prior service 6 by employees of the participating instrumentality created 7 under the joint agreement. 8 (e) Such tax shall be levied and collected in like 9 manner, with the general taxes of the municipality and shall 10 be in addition to all other taxes which the municipality is 11 now or may hereafter be authorized to levy upon all taxable 12 property therein, and shall be exclusive of and in addition 13 to the amount of tax levied for general purposes under 14 Section 8-3-1 of the "Illinois Municipal Code", approved May 15 29, 1961, as amended, or under any other law or laws which 16 may limit the amount of tax which the municipality may levy 17 for general purposes. The tax may be levied by the governing 18 body of the municipality without being authorized as being 19 additional to all other taxes by a vote of the people of the 20 municipality. 21 (f) The county clerk of the county in which any such 22 municipality is located, in reducing tax levies shall not 23 consider any such tax as a part of the general tax levy for 24 municipality purposes, and shall not include the same in the 25 limitation of any other tax rate which may be extended. 26 (g) The amount of the tax to be levied in any year 27 shall, within the limits herein prescribed, be determined by 28 the governing body of the respective municipality. 29 (h) The revenue derived from any such tax levy shall be 30 used only for the purposes specified in this Article, and, as 31 collected, shall be paid to the treasurer of the municipality 32 levying the tax. Monies received by a county treasurer for 33 use in making contributions to a consolidated educational 34 service region for its municipality contributions shall be HB1641 Enrolled -48- LRB9001767MWpc 1 held by him for that purpose and paid to the region in the 2 same manner as other monies appropriated for the expense of 3 the region. 4 (Source: P.A. 89-329, eff. 8-17-95.) 5 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138) 6 Sec. 8-138. Minimum annuities - Additional provisions. 7 (a) An employee who withdraws after age 65 or more with 8 at least 20 years of service, for whom the amount of age and 9 service and prior service annuity combined is less than the 10 amount stated in this Section, shall from the date of 11 withdrawal, instead of all annuities otherwise provided, be 12 entitled to receive an annuity for life of $150 a year, plus 13 1 1/2% for each year of service, to and including 20 years, 14 and 1 2/3% for each year of service over 20 years, of his 15 highest average annual salary for any 4 consecutive years 16 within the last 10 years of service immediately preceding the 17 date of withdrawal. 18 An employee who withdraws after 20 or more years of 19 service, before age 65, shall be entitled to such annuity, to 20 begin not earlier than upon attained age of 55 years if under 21 such age at withdrawal, reduced by 2% for each full year or 22 fractional part thereof that his attained age is less than 23 65, plus an additional 2% reduction for each full year or 24 fractional part thereof that his attained age when annuity is 25 to begin is less than 60 so that the total reduction at age 26 55 shall be 30%. 27 (b) An employee who withdraws after July 1, 1957, at age 28 60 or over, with 20 or more years of service, for whom the 29 age and service and prior service annuity combined, is less 30 than the amount stated in this paragraph, shall, from the 31 date of withdrawal, instead of such annuities, be entitled to 32 receive an annuity for life equal to 1 2/3% for each year of 33 service, of the highest average annual salary for any 5 HB1641 Enrolled -49- LRB9001767MWpc 1 consecutive years within the last 10 years of service 2 immediately preceding the date of withdrawal; provided, that 3 in the case of any employee who withdraws on or after July 1, 4 1971, such employee age 60 or over with 20 or more years of 5 service, shall receive an annuity for life equal to 1.67% for 6 each of the first 10 years of service; 1.90% for each of the 7 next 10 years of service; 2.10% for each year of service in 8 excess of 20 but not exceeding 30; and 2.30% for each year of 9 service in excess of 30, based on the highest average annual 10 salary for any 4 consecutive years within the last 10 years 11 of service immediately preceding the date of withdrawal. 12 An employee who withdraws after July 1, 1957 and before 13 January 1, 1988, with 20 or more years of service, before age 14 60 years is entitled to annuity, to begin not earlier than 15 upon attained age of 55 years, if under such age at 16 withdrawal, as computed in the last preceding paragraph, 17 reduced 0.25% for each full month or fractional part thereof 18 that his attained age when annuity is to begin is less than 19 60 if the employee was born before January 1, 1936, or 0.5% 20 for each such month if the employee was born on or after 21 January 1, 1936. 22 Any employee born before January 1, 1936, who withdraws 23 with 20 or more years of service, and any employee with 20 or 24 more years of service who withdraws on or after January 1, 25 1988, may elect to receive, in lieu of any other employee 26 annuity provided in this Section, an annuity for life equal 27 to 1.80% for each of the first 10 years of service, 2.00% for 28 each of the next 10 years of service, 2.20% for each year of 29 service in excess of 20 but not exceeding 30, and 2.40% for 30 each year of service in excess of 30, of the highest average 31 annual salary for any 4 consecutive years within the last 10 32 years of service immediately preceding the date of 33 withdrawal, to begin not earlier than upon attained age of 55 34 years, if under such age at withdrawal, reduced 0.25% for HB1641 Enrolled -50- LRB9001767MWpc 1 each full month or fractional part thereof that his attained 2 age when annuity is to begin is less than 60; except that an 3 employee retiring on or after January 1, 1988, at age 55 or 4 over but less than age 60, having at least 35 years of 5 service, or an employee retiring on or after July 1, 1990, at 6 age 55 or over but less than age 60, having at least 30 years 7 of service, or an employee retiring on or after the effective 8 date of this amendatory Act of 1997, at age 55 or over but 9 less than age 60, having at least 25 years of service, shall 10 not be subject to the reduction in retirement annuity because 11 of retirement below age 60. 12 However, in the case of an employee who retired on or 13 after January 1, 1985 but before January 1, 1988, at age 55 14 or older and with at least 35 years of service, and who was 15 subject under this subsection (b) to the reduction in 16 retirement annuity because of retirement below age 60, that 17 reduction shall cease to be effective January 1, 1991, and 18 the retirement annuity shall be recalculated accordingly. 19 Any employee who withdraws on or after July 1, 1990, with 20 20 or more years of service, may elect to receive, in lieu of 21 any other employee annuity provided in this Section, an 22 annuity for life equal to 2.20% for each year of service of 23 the highest average annual salary for any 4 consecutive years 24 within the last 10 years of service immediately preceding the 25 date of withdrawal, to begin not earlier than upon attained 26 age of 55 years, if under such age at withdrawal, reduced 27 0.25% for each full month or fractional part thereof that his 28 attained age when annuity is to begin is less than 60; except 29 that an employee retiring at age 55 or over but less than age 30 60, having at least 30 years of service, shall not be subject 31 to the reduction in retirement annuity because of retirement 32 below age 60. 33 Any employee who withdraws on or after the effective date 34 of this amendatory Act of 1997 with 20 or more years of HB1641 Enrolled -51- LRB9001767MWpc 1 service may elect to receive, in lieu of any other employee 2 annuity provided in this Section, an annuity for life equal 3 to 2.20%, for each year of service, of the highest average 4 annual salary for any 4 consecutive years within the last 10 5 years of service immediately preceding the date of 6 withdrawal, to begin not earlier than upon attainment of age 7 55 (age 50 if the employee has at least 30 years of service), 8 reduced 0.25% for each full month or remaining fractional 9 part thereof that the employee's attained age when annuity is 10 to begin is less than 60; except that an employee retiring at 11 age 50 or over with at least 30 years of service or at age 55 12 or over with at least 25 years of service shall not be 13 subject to the reduction in retirement annuity because of 14 retirement below age 60. 15 The maximum annuity payable under part (a) and (b) of 16 this Section shall not exceed 70% of highest average annual 17 salary in the case of an employee who withdraws prior to July 18 1, 1971, and 75% if withdrawal takes place on or after July 19 1, 1971. For the purpose of the minimum annuity provided in 20 this Section $1,500 is considered the minimum annual salary 21 for any year; and the maximum annual salary for the 22 computation of such annuity is $4,800 for any year before 23 1953, $6000 for the years 1953 to 1956, inclusive, and the 24 actual annual salary, as salary is defined in this Article, 25 for any year thereafter. 26 To preserve rights existing on December 31, 1959, for 27 participants and contributors on that date to the fund 28 created by the Court and Law Department Employees' Annuity 29 Act, who became participants in the fund provided for on 30 January 1, 1960, the maximum annual salary to be considered 31 for such persons for the years 1955 and 1956 is $7,500. 32 (c) For an employee receiving disability benefit, his 33 salary for annuity purposes under paragraphs (a) and (b) of 34 this Section, for all periods of disability benefit HB1641 Enrolled -52- LRB9001767MWpc 1 subsequent to the year 1956, is the amount on which his 2 disability benefit was based. 3 (d) An employee with 20 or more years of service, whose 4 entire disability benefit credit period expires before 5 attainment of age 55 while still disabled for service, is 6 entitled upon withdrawal to the larger of (1) the minimum 7 annuity provided above, assuming he is then age 55, and 8 reducing such annuity to its actuarial equivalent as of his 9 attained age on such date or (2) the annuity provided from 10 his age and service and prior service annuity credits. 11 (e) The minimum annuity provisions do not apply to any 12 former municipal employee receiving an annuity from the fund 13 who re-enters service as a municipal employee, unless he 14 renders at least 3 years of additional service after the date 15 of re-entry. 16 (f) An employee in service on July 1, 1947, or who 17 became a contributor after July 1, 1947 and before attainment 18 of age 70, who withdraws after age 65, with less than 20 19 years of service for whom the annuity has been fixed under 20 this Article shall, instead of the annuity so fixed, receive 21 an annuity as follows: 22 Such amount as he could have received had the accumulated 23 amounts for annuity been improved with interest at the 24 effective rate to the date of his withdrawal, or to 25 attainment of age 70, whichever is earlier, and had the city 26 contributed to such earlier date for age and service annuity 27 the amount that it would have contributed had he been under 28 age 65, after the date his annuity was fixed in accordance 29 with this Article, and assuming his annuity were computed 30 from such accumulations as of his age on such earlier date. 31 The annuity so computed shall not exceed the annuity which 32 would be payable under the other provisions of this Section 33 if the employee was credited with 20 years of service and 34 would qualify for annuity thereunder. HB1641 Enrolled -53- LRB9001767MWpc 1 (g) Instead of the annuity provided in this Article, an 2 employee having attained age 65 with at least 15 years of 3 service who withdraws from service on or after July 1, 1971 4 and whose annuity computed under other provisions of this 5 Article is less than the amount provided under this 6 paragraph, is entitled to a minimum annuity for life equal to 7 1% of the highest average annual salary, as salary is defined 8 and limited in this Section for any 4 consecutive years 9 within the last 10 years of service for each year of service, 10 plus the sum of $25 for each year of service. The annuity 11 shall not exceed 60% of such highest average annual salary. 12 (h) The minimum annuities provided under this Section 13 shall be paid in equal monthly installments. 14 (i) The amendatory provisions of part (b) and (g) of 15 this Section shall be effective July 1, 1971 and apply in the 16 case of every qualifying employee withdrawing on or after 17 July 1, 1971. 18 (j) The amendatory provisions of this amendatory Act of 19 1985 (P.A. 84-23) relating to the discount of annuity because 20 of retirement prior to attainment of age 60, and to the 21 retirement formula, for those born before January 1, 1936, 22 shall apply only to qualifying employees withdrawing on or 23 after July 18, 1985. 24 (k) Beginning on the effective date of this amendatory 25 Act of 1997January 1, 1991, the minimum amount of employee's 26 annuity shall be $550$350per month for life for the 27 following classes of employees, without regard to the fact 28 that withdrawal occurred prior to the effective date of this 29 amendatory Act of 1997January 1, 1991: 30 (1) any employee annuitant alive and receiving a 31 life annuity on the effective date of this amendatory Act 32 of 1997January 1, 1991, except a reciprocal annuity; 33 (2) any employee annuitant alive and receiving a 34 term annuity on the effective date of this amendatory Act HB1641 Enrolled -54- LRB9001767MWpc 1 of 1997January 1, 1991, except a reciprocal annuity; 2 (3) any employee annuitant alive and receiving a 3 reciprocal annuity on the effective date of this 4 amendatory Act of 1997January 1, 1991, whose service in 5 this fund is at least 5 years; 6 (4) any employee annuitant withdrawing after age 60 7 on or after the effective date of this amendatory Act of 8 1997January 1, 1991, with at least 10 years of service 9 in this fund. 10 The increases granted under items (1), (2) and (3) of 11 this subsection (k) shall not be limited by any other Section 12 of this Act. 13 (Source: P.A. 85-964; 86-1488.) 14 (40 ILCS 5/8-138.3 new) 15 Sec. 8-138.3. Early retirement incentive. 16 (a) To be eligible for the benefits provided in this 17 Section, an employee must: 18 (1) be a current contributor to the Fund who, on 19 November 1, 1997, is (i) in active payroll status as an 20 employee or (ii) receiving ordinary or duty disability 21 benefits under Section 8-160 or 8-161; 22 (2) have not previously retired under this Article; 23 (3) file with the Board before June 1, 1998, a 24 written application requesting the benefits provided in 25 this Section; 26 (4) withdraw from service on or after December 31, 27 1997 and on or before June 30, 1998; and 28 (5) by the date of withdrawal: (i) have attained 29 age 55 with at least 10 years of creditable service in 30 this Fund and a total of at least 15 years of creditable 31 service in one or more of the participating systems under 32 the Retirement Systems Reciprocal Act, without including 33 any creditable service established under this Section; or HB1641 Enrolled -55- LRB9001767MWpc 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 HB1641 Enrolled -56- LRB9001767MWpc 1 80% of the employee's highest average annual salary for 2 any 4 consecutive years within the last 10 years of 3 service, rather than the 75% maximum otherwise provided 4 in Section 8-138. 5 (d) For each month of creditable service established 6 under this Section, the employee must pay to the Fund an 7 employee contribution, to be calculated by the Fund, equal to 8 4.25% of the member's monthly salary rate on November 1, 9 1997. The employee may elect to pay the entire contribution 10 before the retirement annuity commences, or to have it 11 deducted from the annuity over a period not longer than 24 12 months. If the retired employee dies before the contribution 13 has been paid in full, the unpaid installments may be 14 deducted from any annuity or other benefit payable to the 15 employee's survivors. 16 All employee contributions paid under this Section shall 17 be deemed contributions made by employees for annuity 18 purposes under Section 8-173, and shall be made and credited 19 to a special reserve, without interest. Employee 20 contributions paid under this Section may be refunded under 21 the same terms and conditions as are applicable to other 22 employee contributions for retirement annuity. 23 (e) Notwithstanding Section 8-165, an annuitant who 24 reenters service under this Article after receiving a 25 retirement annuity based on benefits provided under this 26 Section thereby forfeits the right to continue to receive 27 those benefits, and shall have his or her retirement annuity 28 recalculated at the appropriate time without the benefits 29 provided in this Section. 30 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1) 31 Sec. 8-150.1. Minimum annuities for widows. The widow 32 (otherwise eligible for widow's annuity under other Sections 33 of this Article 8) of an employee hereinafter described, who HB1641 Enrolled -57- LRB9001767MWpc 1 retires from service or dies while in the service subsequent 2 to the effective date of this amendatory provision, and for 3 which widow the amount of widow's annuity and widow's prior 4 service annuity combined, fixed or provided for such widow 5 under other provisions of this Article is less than the 6 amount provided in this Section, shall, from and after the 7 date her otherwise provided annuity would begin, in lieu of 8 such otherwise provided widow's and widow's prior service 9 annuity, be entitled to the following indicated amount of 10 annuity: 11 (a) The widow of any employee who dies while in service 12 on or after the date on which he attains age 60 if the death 13 occurs before July 1, 1990, or on or after the date on which 14 he attains age 55 if the death occurs on or after July 1, 15 1990, with at least 20 years of service, or on or after the 16 date on which he attains age 50 if the death occurs on or 17 after the effective date of this amendatory Act of 1997 with 18 at least 30 years of service, shall be entitled to an annuity 19 equal to one-half of the amount of annuity which her deceased 20 husband would have been entitled to receive had he withdrawn 21 from the service on the day immediately preceding the date of 22 his death, conditional upon such widow having attained the 23 age of 60 or more years on such date if the death occurs 24 before July 1, 1990, or age 55 or more if the death occurs on 25 or after July 1, 1990. Except as provided in subsection (k), 26 thissuch amount ofwidow's annuity shall not, however, 27 exceed the sum of $500 a month if the employee's death in 28 service occurs before January 23, 1987. The widow's annuity 29 shall not be limited to a maximum dollar amount if the 30 employee's death in service occurs on or after January 23, 31 1987. 32 If the employee dies in service before July 1, 1990, and 33 if such widow of such described employee shall not be 60 or 34 more years of age on such date of death, the amount provided HB1641 Enrolled -58- LRB9001767MWpc 1 in the immediately preceding paragraph for a widow 60 or more 2 years of age, shall, in the case of such younger widow, be 3 reduced by 0.25% for each month that her then attained age is 4 less than 60 years if the employee was born before January 1, 5 1936 or dies in service on or after January 1, 1988, or by 6 0.5% for each month that her then attained age is less than 7 60 years if the employee was born on or after July 1, 1936 8 and dies in service before January 1, 1988. 9 If the employee dies in service on or after July 1, 1990, 10 and if the widow of the employee has not attained age 55 on 11 or before the employee's date of death, the amount otherwise 12 provided in this subsection (a) shall be reduced by 0.25% for 13 each month that her then attained age is less than 55 years. 14 (b) The widow of any employee who dies subsequent to the 15 date of his retirement on annuity, and who so retired on or 16 after the date on which he attained the age of 60 or more 17 years if retirement occurs before July 1, 1990, or on or 18 after the date on which he attained age 55 if retirement 19 occurs on or after July 1, 1990, with at least 20 years of 20 service, or on or after the date on which he attained age 50 21 if the retirement occurs on or after the effective date of 22 this amendatory Act of 1997 with at least 30 years of 23 service, shall be entitled to an annuity equal to one-half of 24 the amount of annuity which her deceased husband received as 25 of the date of his retirement on annuity, conditional upon 26 such widow having attained the age of 60 or more years on the 27 date of her husband's retirement on annuity if retirement 28 occurs before July 1, 1990, or age 55 or more if retirement 29 occurs on or after July 1, 1990. Except as provided in 30 subsection (k), thissuch amount ofwidow's annuity shall 31 not, however, exceed the sum of $500 a month if the 32 employee's death occurs before January 23, 1987. The widow's 33 annuity shall not be limited to a maximum dollar amount if 34 the employee's death occurs on or after January 23, 1987, HB1641 Enrolled -59- LRB9001767MWpc 1 regardless of the date of retirement; provided that, if 2 retirement was before January 23, 1987, the employee or 3 eligible spouse repays the excess spouse refund with interest 4 at the effective rate from the date of refund to the date of 5 repayment. 6 If the date of the employee's retirement on annuity is 7 before July 1, 1990, and if such widow of such described 8 employee shall not have attained such age of 60 or more years 9 on such date of her husband's retirement on annuity, the 10 amount provided in the immediately preceding paragraph for a 11 widow 60 or more years of age on the date of her husband's 12 retirement on annuity, shall, in the case of such then 13 younger widow, be reduced by 0.25% for each month that her 14 then attained age was less than 60 years if the employee was 15 born before January 1, 1936 or withdraws from service on or 16 after January 1, 1988, or by 0.5% for each month that her 17 then attained age is less than 60 years if the employee was 18 born on or after January 1, 1936 and withdraws from service 19 before January 1, 1988. 20 If the date of the employee's retirement on annuity is on 21 or after July 1, 1990, and if the widow of the employee has 22 not attained age 55 by the date of the employee's retirement 23 on annuity, the amount otherwise provided in this subsection 24 (b) shall be reduced by 0.25% for each month that her then 25 attained age is less than 55 years. 26 (c) The foregoing provisions relating to minimum 27 annuities for widows shall not apply to the widow of any 28 former municipal employee receiving an annuity from the fund 29 on August 9, 1965 or on the effective date of this amendatory 30 provision, who re-enters service as a municipal employee, 31 unless such employee renders at least 3 years of additional 32 service after the date of re-entry. 33 (d) In computing the amount of annuity which the husband 34 specified in the foregoing paragraphs (a) and (b) of this HB1641 Enrolled -60- LRB9001767MWpc 1 Section would have been entitled to receive, or received, 2 such amount shall be the annuity to which such husband would 3 have been, or was entitled, before reduction in the amount of 4 his annuity for the purposes of the voluntary optional 5 reversionary annuity provided for in Sec. 8-139 of this 6 Article, if such option was elected. 7 (e) (Blank).The amendatory provisions of part (a) and8(b) of this Section (increasing the maximum from $300 to $4009a month) shall be effective as of July 1, 1971, and apply in10the case of every qualifying widow whose husband dies while11in service on or after July 1, 1971 or withdraws and enters12on annuity on or after July 1, 1971.13 (f) (Blank).The amendments of part (a) and (b) of this14Section by this amendatory Act of 1983 (increasing the15maximum from $400 to $500 a month) shall be effective as of16January 1, 1984 and shall apply in the case of every17qualifying widow whose husband dies while in the service on18or after January 1, 1984, or withdraws and enters on annuity19on or after January 1, 1984.20 (g) The amendatory provisions of this amendatory Act of 21 1985 relating to annuity discount because of age for widows 22 of employees born before January 1, 1936, shall apply only to 23 qualifying widows of employees withdrawing or dying in 24 service on or after July 18, 1985. 25 (h) Beginning on the effective date of this amendatory 26 Act of 1997January 1, 1991, the minimum amount of widow's 27 annuity shall be $500$300per month for life for the 28 following classes of widows, without regard to the fact that 29 the death of the employee occurred prior to the effective 30 date of this amendatory Act of 1997January 1, 1991: 31 (1) any widow annuitant alive and receiving a life 32 annuity on the effective date of this amendatory Act of 33 1997January 1, 1991, except a reciprocal annuity; 34 (2) any widow annuitant alive and receiving a term HB1641 Enrolled -61- LRB9001767MWpc 1 annuity on the effective date of this amendatory Act of 2 1997January 1, 1991, except a reciprocal annuity; 3 (3) any widow annuitant alive and receiving a 4 reciprocal annuity on the effective date of this 5 amendatory Act of 1997January 1, 1991, whose employee 6 spouse's service in this fund was at least 5 years; 7 (4) the widow of an employee with at least 10 years 8 of service in this fund who dies after retirement, if the 9 retirement occurred prior to the effective date of this 10 amendatory Act of 1997January 1, 1991; 11 (5) the widow of an employee with at least 10 years 12 of service in this fund who dies after retirement, if 13 withdrawal occurs on or after the effective date of this 14 amendatory Act of 1997January 1, 1991; 15 (6) the widow of an employee who dies in service 16 with at least 5 years of service in this fund, if the 17 death in service occurs on or after the effective date of 18 this amendatory Act of 1997January 1, 1991. 19 The increases granted under items (1), (2), (3) and (4) 20 of this subsection (h) shall not be limited by any other 21 Section of this Act. 22 (i) The widow of an employee who retired or died in 23 service on or after January 1, 1985 and before July 1, 1990, 24 at age 55 or older, and with at least 35 years of service 25 credit, shall be entitled to have her widow's annuity 26 increased, effective January 1, 1991, to an amount equal to 27 50% of the retirement annuity that the deceased employee 28 received on the date of retirement, or would have been 29 eligible to receive if he had retired on the day preceding 30 the date of his death in service, provided that if the widow 31 had not attained age 60 by the date of the employee's 32 retirement or death in service, the amount of the annuity 33 shall be reduced by 0.25% for each month that her then 34 attained age was less than age 60 if the employee's HB1641 Enrolled -62- LRB9001767MWpc 1 retirement or death in service occurred on or after January 2 1, 1988, or by 0.5% for each month that her attained age is 3 less than age 60 if the employee's retirement or death in 4 service occurred prior to January 1, 1988. However, in cases 5 where a refund of excess contributions for widow's annuity 6 has been paid by the Fund, the increase in benefit provided 7 by this subsection (i) shall be contingent upon repayment of 8 the refund to the Fund with interest at the effective rate 9 from the date of refund to the date of payment. 10 (j) If a deceased employee is receiving a retirement 11 annuity at the time of death and that death occurs on or 12 after the effective date of this amendatory Act of 1997, the 13 widow may elect to receive, in lieu of any other annuity 14 provided under this Article, 50% of the deceased employee's 15 retirement annuity at the time of death reduced by 0.25% for 16 each month that the widow's age on the date of death is less 17 than 55. However, in cases where a refund of excess 18 contributions for widow's annuity has been paid by the Fund, 19 the benefit provided by this subsection (j) is contingent 20 upon repayment of the refund to the Fund with interest at the 21 effective rate from the date of refund to the date of 22 payment. 23 (k) For widows of employees who died before January 23, 24 1987 after retirement on annuity or in service, the maximum 25 dollar amount limitation on widow's annuity shall cease to 26 apply, beginning with the first annuity payment after the 27 effective date of this amendatory Act of 1997; except that if 28 a refund of excess contributions for widow's annuity has been 29 paid by the Fund, the increase resulting from this subsection 30 (k) shall not begin before the refund has been repaid to the 31 Fund, together with interest at the effective rate from the 32 date of the refund to the date of repayment. 33 (Source: P.A. 85-964; 86-1488.) HB1641 Enrolled -63- LRB9001767MWpc 1 (40 ILCS 5/8-154) (from Ch. 108 1/2, par. 8-154) 2 Sec. 8-154. Maximum annuities. 3 (1) The annuities to an employee and his widow,are 4 subject to the following limitations: 5 (a) No age and service annuity, or age and service and 6 prior service annuity combined, in excess of 60% of the 7 highest salary of an employee, and no minimum annuity in 8 excess of the amount provided in Section 8-138 or set forth 9 as a maximum in any other Section of this Code relating to 10 minimum annuities for municipal employees included under 11 Article 8 of this Code shall be payable to any employee - 12 excepting to the extent that the annuity may exceed such per 13 cent or amount under Section 8-137 and 8-137.1 providing for 14 automatic increases after retirement. 15 (b) No annuity in excess of 60% of such highest salary 16 shall be payable to a widow if death of an employee results 17 solely from injury incurred in the performance of an act of 18 duty; provided, the annuity for a widow, or a widow's annuity 19 plus compensation annuity, shall not exceed $500 per month if 20 the employee's death occurs before January 23, 1987, except 21 as provided in paragraph (d). The widow's annuity, or a 22 widow's annuity plus compensation annuity, shall not be 23 limited to a maximum dollar amount if the employee's death 24 occurs on or after January 23, 1987, regardless of the date 25 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 resulting in 28 whole or in part from any cause other than injury incurred in 29 the performance of an act of duty; provided, the annuity for 30 a widow, or a widow's annuity plus supplemental annuity, 31 shall not exceed $500 per month if the employee's death 32 occurs before January 23, 1987, except as provided in 33 paragraph (d). The widow's annuity, or widow's annuity plus 34 supplemental annuity, shall not be limited to a maximum HB1641 Enrolled -64- LRB9001767MWpc 1 dollar amount if the employee's death occurs on or after 2 January 23, 1987. 3 (d) For widows of employees who died before January 23, 4 1987 after retirement on annuity or in service, the maximum 5 dollar amount limitation on widow's annuity (or widow's 6 annuity plus compensation or supplemental annuity) shall 7 cease to apply, beginning with the first annuity payment 8 after the effective date of this amendatory Act of 1997; 9 except that if a refund of excess contributions for widow's 10 annuity has been paid by the Fund, the increase resulting 11 from this paragraph (d) shall not begin before the refund has 12 been repaid to the Fund, together with interest at the 13 effective rate from the date of the refund to the date of 14 repayment. 15 (2) If when an employee's annuity is fixed, the amount 16 accumulated to his credit therefor, as of his age at such 17 time exceeds the amount necessary for the annuity, all 18 contributions for annuity purposes after the date on which 19 the accumulated sums to the credit of such employee for 20 annuity purposes would first have provided such employee with 21 such amount of annuity as of his age at such date shall be 22 refunded when he enters upon annuity, with interest at the 23 effective rate. 24 If the aforesaid annuity so fixed is not payable, but a 25 larger amount is payable as a minimum annuity, such refund 26 shall be reduced by 5/12 of the value of the difference in 27 the annuity payable and the amount theretofore fixed, as the 28 value of such difference may be at the date and as of the age 29 of the employee when his annuity is granted; provided that if 30 the employee was credited with city contributions for any 31 period for which he made no contribution, or a contribution 32 of less than 3 1/4% of salary, a further reduction in the 33 refund shall be made by the equivalent of what he would have 34 contributed during such period less his actual contributions, HB1641 Enrolled -65- LRB9001767MWpc 1 had the rate of employee contributions in force on the 2 effective date been in effect throughout his entire service, 3 prior to such effective date, with interest computed on such 4 amounts at the effective rate. 5 (3) If at the time the annuity for a wife is fixed, the 6 employee's credit for a widow's annuity exceeds that 7 necessary to provide such an annuity equal to the maximum 8 annuity provided in this section, all employee contributions 9 for such annuity, for service after the date on which the 10 accumulated sums to the credit of such employee for the 11 purpose of providing widow's annuity would first have 12 provided such widow with such amount of annuity, if such 13 annuity were computed on the basis of the Combined Annuity 14 Mortality Table with interest at 3% per annum with ages at 15 date of determination taken as specified in this Article, 16 shall be refunded to the employee, with interest at the 17 effective rate. If the employee was credited with city 18 contributions for widow's annuity for any service prior to 19 the effective date, any amount so refundable, shall be 20 reduced by the equivalent of what he would have contributed, 21 had his contributions for widow's annuity been made at the 22 rate of 1% throughout his entire service, prior to the 23 effective date, with interest on such amounts at the 24 effective rate. 25 (4) If at the death of an employee prior to age 65, the 26 credit for widow's annuity exceeds that necessary to provide 27 the maximum annuity prescribed in this section, all employee 28 contributions for annuity purposes, for service after the 29 date on which the accumulated sums to the credit of such 30 employee for the purpose of providing such maximum annuity 31 for the widow would first have provided such widow with such 32 amount of annuity, if such annuity were computed on the basis 33 of the Combined Annuity Mortality Table with interest at 3% 34 per annum with ages at date of determination taken as HB1641 Enrolled -66- LRB9001767MWpc 1 specified in this Article, shall be refunded to the widow, 2 with interest at the effective rate. 3 If the employee was credited with city contributions for 4 any period of service during which he was not required to 5 make a contribution, or made a contribution of less than 3 6 1/4% of salary, the refund shall be reduced by the equivalent 7 of the contributions he would have made during such period, 8 less any amount he contributed, had the rate of employee 9 contributions in effect on the effective date been in force 10 throughout his entire service, prior to the effective date, 11 with interest on such amounts at the effective rate; provided 12 that if the employee was credited with city contributions for 13 widow's annuity for any service prior to the effective date, 14 any amount so refundable shall be further reduced by the 15 equivalent of what would have contributed had he made 16 contributions for widow's annuity at the rate of 1% 17 throughout his entire service; prior to such effective date, 18 with interest on such amounts at the effective rate. 19(d) The amendatory provisions of part 1, paragraphs (b)20and (c) of this Section (increasing the maximum from $300 to21$400 a month) shall be effective as of July 1, 1971, and22apply in the case of every qualifying widow whose husband23dies while in service on or after July 1, 1971 or withdraws24and enters on annuity on or after July 1, 1971.25(e) The amendments of part 1, paragraphs (b) and (c) of26this Section by this amendatory Act of 1983 (increasing the27maximum from $400 to $500 a month) shall be effective as of28January 1, 1984 and apply in the case of every qualifying29widow whose husband dies in the service on or after January301, 1984 or withdraws and enters on annuity on or after31January 1, 1984.32 (Source: P.A. 85-964.) 33 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159) HB1641 Enrolled -67- LRB9001767MWpc 1 Sec. 8-159. Amount of child's annuity. Beginning on the 2 effective date of this amendatory Act of 1997January 1,31988, the amount of a child's annuity shall be $220$120per 4 month for each child while the spouse of the deceased 5 employee parent survives, and $250$150per month for each 6 child when no such spouse survives, and shall be subject to 7 the following limitations: 8 (1) If the combined annuities for the widow and children 9 of an employee whose death resulted from injury incurred in 10 the performance of duty, or for the children where a widow 11 does not exist, exceed 70% of the employee's final monthly 12 salary, the annuity for each child shall be reduced pro rata 13 so that the combined annuities for the family shall not 14 exceed such limitation. 15 (2) For the family of an employee whose death is the 16 result of any cause other than injury incurred in the 17 performance of duty, in which the combined annuities for the 18 family exceed 60% of the employee's final monthly salary, the 19 annuity for each child shall be reduced pro rata so that the 20 combined annuities for the family shall not exceed such 21 limitation. 22 (3) The increase in child's annuity provided by this 23 amendatory Act of 19971987shall apply to all child's 24 annuities being paid on or after the effective date of this 25 amendatory Act of 1997.January 1, 1988, subject toThe 26abovelimitations on the combined annuities for a family in 27 parts (1) and (2) of this Section do not apply to families of 28 employees who died before the effective date of this 29 amendatory Act of 1997. 30 (4) The amendments to parts (1) and (2) of this Section 31 made by Public Act 84-1472 (eliminating the further 32 limitation that the monthly combined family amount shall not 33 exceed $500 plus 10% of the employee's final monthly salary) 34 shall apply in the case of every qualifying child whose HB1641 Enrolled -68- LRB9001767MWpc 1 employee parent dies in the service or enters on annuity on 2 or after January 23, 1987. 3 (Source: P.A. 85-964.) 4 (40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226) 5 Sec. 8-226. Computation of service. In computing the 6 term of service of an employee prior to the effective date, 7 the entire period beginning on the date he was first 8 appointed and ending on the day before the effective date, 9 except any intervening period during which he was separated 10 by withdrawal from service, shall be counted for all purposes 11 of this Article, except that for any employee who was not in 12 service on the day before the effective date, service 13 rendered prior to such date shall not be considered for the 14 purposes of Section 8-138. 15 For a person employed by an employer for whom this 16 Article was in effect prior to January 1, 1950, from whose 17 salary deductions are first made under this Article after 18 December 31, 1949, any period of service rendered prior to 19 the effective date, unless he was in service on the day 20 before the effective date, shall not be counted as service. 21 The time a person was an employee of any territory 22 annexed to the city prior to the effective date shall be 23 counted as a period of service. 24 In computing the term of service of any employee 25 subsequent to the day before the effective date, the 26 following periods shall be counted as periods of service for 27 age and service, widow's and child's annuity purposes: 28 (a) The time during which he performed the duties 29 of his position; 30 (b) Vacations, leaves of absence with whole or part 31 pay, and leaves of absence without pay not longer than 90 32 days; 33 (c) Leaves of absence without pay during which a HB1641 Enrolled -69- LRB9001767MWpc 1 participant is employed full-time by a local labor 2 organization that represents municipal employees, 3 provided that (1) the participant continues to make 4 employee contributions to the Fund as though he were an 5 active employee, based on the regular salary rate 6 received by the participant for his municipal employment 7 immediately prior to such leave of absence (and in the 8 case of such employment prior to December 9, 1987, pays 9 to the Fund an amount equal to the employee contributions 10 for such employment plus regular interest thereon as 11 calculated by the board), and based on his current salary 12 with such labor organization after the effective date of 13 this amendatory Act of 1991, (2) after January 1, 1989 14 the participant, or the labor organization on the 15 participant's behalf, makes contributions to the Fund as 16 though it were the employer, in the same amount and same 17 manner as specified under this Article, based on the 18 regular salary rate received by the participant for his 19 municipal employment immediately prior to such leave of 20 absence, and based on his current salary with such labor 21 organization after the effective date of this amendatory 22 Act of 1991, and (3) the participant does not receive 23 credit in any pension plan established by the local labor 24 organization based on his employment by the organization; 25 (d) Any period of disability for which he received 26 (i) a disability benefit under this Article, or (ii) a 27 temporary total disability benefit under the Workers' 28 Compensation Act if the disability results from a 29 condition commonly termed heart attack or stroke or any 30 other condition falling within the broad field of 31 coronary involvement or heart disease, or (iii) whole or 32 part pay; 33 (e) Any period for which contributions and service 34 credit have been transferred to this Fund under HB1641 Enrolled -70- LRB9001767MWpc 1 subsection (d) of Section 9-121.1 or subsection (d) of 2 Section 12-127.1 of this Code. 3 For a person employed by an employer in which the 1921 4 Act was in effect prior to January 1, 1950, from whose salary 5 deductions are first made under the 1921 Act or this Article 6 after December 31, 1949, any period of service rendered 7 subsequent to the effective date and prior to the date he 8 became an employee and contributor, shall not be counted as a 9 period of service under this Article, except such period for 10 which he made payment as provided in Section 8-230 of this 11 Article, in which case such period shall be counted as a 12 period of service for all annuity purposes hereunder. 13 In computing the term of service of an employee 14 subsequent to the day before the effective date for ordinary 15 disability benefit purposes, all periods described in the 16 preceding paragraph, except any such period for which he 17 receives ordinary disability benefit, shall be counted as 18 periods of service; provided, that for any person employed by 19 an employer in which this Article was in effect prior to 20 January 1, 1950, from whose salary deductions are first made 21 under this Article after December 31, 1949, any period of 22 service rendered subsequent to the effective date and prior 23 to the date he became an employee and contributor, shall not 24 be counted as a period of service for ordinary disability 25 benefit purposes, unless the person made payment for the 26 period as provided in Section 8-230 of this Article, in which 27 case the period shall be counted as a period of service for 28 ordinary disability purposes for periods of disability on or 29 after the effective date of this amendatory Act of 1997. 30 Overtime or extra service shall not be included in 31 computing any term of service. Not more than 1 year of 32 service shall be allowed for service rendered during any 33 calendar year. 34 (Source: P.A. 86-272; 86-1488.) HB1641 Enrolled -71- LRB9001767MWpc 1 (40 ILCS 5/9-121.15 new) 2 Sec. 9-121.15. Transfer of credit from Article 14 system. 3 An employee shall be entitled to service credit in the Fund 4 for any creditable service transferred to this Fund from the 5 State Employees' Retirement System under Section 14-105.7 of 6 this Code. Credit under this Fund shall be granted upon 7 receipt by the Fund of the amounts required to be transferred 8 under Section 14-105.7; no additional contribution is 9 necessary. 10 (40 ILCS 5/9-220.1 new) 11 Sec. 9-220.1. Service of less than 15 days in one month. 12 A member of the General Assembly with service credit in the 13 Fund may establish service credit in the Fund for up to 24 14 months, during each of which he or she worked for at least 15 one but fewer than 15 days, by purchasing service credit for 16 the number of days needed to bring the total of days worked 17 in each such month up to 15. To establish this credit, the 18 member must pay to the Fund before January 1, 1998 an amount 19 equal to (1) employee contributions based on the number of 20 days for which credit is being purchased, the rate of 21 compensation received by the applicant for the time actually 22 worked during that month, and the rate of contribution in 23 effect for the applicant during that month; plus (2) an 24 amount representing employer contributions, equal to the 25 amount specified in item (1); plus (3) interest on the 26 amounts specified in items (1) and (2) at the rate of 6% per 27 annum, compounded annually, from the date of service to the 28 date of payment. This Section is not limited to persons in 29 service under this Article on or after the effective date of 30 this amendatory Act of 1997. 31 (40 ILCS 5/11-133.2 new) 32 Sec. 11-133.2. Early retirement incentive. HB1641 Enrolled -72- LRB9001767MWpc 1 (a) To be eligible for the benefits provided in this 2 Section, an employee must: 3 (1) be a current contributor to the Fund who, on 4 November 1, 1997, is (i) in active payroll status as an 5 employee or (ii) receiving ordinary or duty disability 6 benefits under Section 11-155 or 11-156; 7 (2) have not previously retired under this Article; 8 (3) file with the Board before June 1, 1998, a 9 written application requesting the benefits provided in 10 this Section; 11 (4) withdraw from service on or after December 31, 12 1997 and on or before June 30, 1998; and 13 (5) by the date of withdrawal: (i) have attained 14 age 55 with at least 10 years of creditable service in 15 this Fund and a total of at least 15 years of creditable 16 service in one or more of the participating systems under 17 the Retirement Systems Reciprocal Act, without including 18 any creditable service established under this Section; or 19 (ii) have attained age 50 with at least 10 years of 20 creditable service in this Fund and a total of at least 21 30 years of creditable service in one or more of the 22 participating systems under the Retirement Systems 23 Reciprocal Act, without including any creditable service 24 established under this Section. 25 A person is not eligible for the benefits provided in 26 this Section if the person elects to receive a retirement 27 annuity calculated under the alternative formula formerly set 28 forth in Section 20-122. 29 (b) An eligible employee may establish up to 5 years of 30 creditable service under this Section, in increments of one 31 month, by making the contributions specified in subsection 32 (d). An eligible person must establish at least the amount 33 of creditable service necessary to bring his or her total 34 creditable service, including service in this Fund, service HB1641 Enrolled -73- LRB9001767MWpc 1 established under this Section, and service in any of the 2 other participating systems under the Retirement Systems 3 Reciprocal Act, to a minimum of 20 years. 4 The creditable service under this Section may be used for 5 all purposes under this Article and the Retirement Systems 6 Reciprocal Act, except for the computation of average annual 7 salary and the determination of salary, earnings, or 8 compensation under this or any other Article of this Code. 9 (c) An eligible employee shall be entitled to have his 10 or her retirement annuity calculated in accordance with the 11 formula provided in Section 11-134, but with the following 12 exceptions: 13 (1) The annuity shall not be subject to reduction 14 because of withdrawal or commencement of the annuity 15 before attainment of age 60. 16 (2) The annuity shall be subject to a maximum of 17 80% of the employee's highest average annual salary for 18 any 4 consecutive years within the last 10 years of 19 service, rather than the 75% maximum otherwise provided 20 in Section 11-134. 21 (d) For each month of creditable service established 22 under this Section, the employee must pay to the Fund an 23 employee contribution, to be calculated by the Fund, equal to 24 4.25% of the member's monthly salary rate on November 1, 25 1997. The employee may elect to pay the entire contribution 26 before the retirement annuity commences, or to have it 27 deducted from the annuity over a period not longer than 24 28 months. If the retired employee dies before the contribution 29 has been paid in full, the unpaid installments may be 30 deducted from any annuity or other benefit payable to the 31 employee's survivors. 32 All employee contributions paid under this Section shall 33 be deemed contributions made by employees for annuity 34 purposes under Section 11-169 and shall be made and credited HB1641 Enrolled -74- LRB9001767MWpc 1 to a special reserve, without interest. Employee 2 contributions paid under this Section may be refunded under 3 the same terms and conditions as are applicable to other 4 employee contributions for retirement annuity. 5 (e) Notwithstanding Section 11-161, an annuitant who 6 reenters service under this Article after receiving a 7 retirement annuity based on benefits provided under this 8 Section thereby forfeits the right to continue to receive 9 those benefits, and shall have his or her retirement annuity 10 recalculated at the appropriate time without the benefits 11 provided in this Section. 12 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134) 13 Sec. 11-134. Minimum annuities. 14 (a) An employee whose withdrawal occurs after July 1, 15 1957 at age 60 or over, with 20 or more years of service, (as 16 service is defined or computed in Section 11-216), for whom 17 the age and service and prior service annuity combined is 18 less than the amount stated in this section, shall, from and 19 after the date of withdrawal, in lieu of all annuities 20 otherwise provided in this Article, be entitled to receive an 21 annuity for life of an amount equal to 1 2/3% for each year 22 of service, of the highest average annual salary for any 5 23 consecutive years within the last 10 years of service 24 immediately preceding the date of withdrawal; provided, that 25 in the case of any employee who withdraws on or after July 1, 26 1971, such employee age 60 or over with 20 or more years of 27 service, shall be entitled to instead receive an annuity for 28 life equal to 1.67% for each of the first 10 years of 29 service; 1.90% for each of the next 10 years of service; 30 2.10% for each year of service in excess of 20 but not 31 exceeding 30; and 2.30% for each year of service in excess of 32 30, based on the highest average annual salary for any 4 33 consecutive years within the last 10 years of service HB1641 Enrolled -75- LRB9001767MWpc 1 immediately preceding the date of withdrawal. 2 An employee who withdraws after July 1, 1957 and before 3 January 1, 1988, with 20 or more years of service, before age 4 60, shall be entitled to an annuity, to begin not earlier 5 than age 55, if under such age at withdrawal, as computed in 6 the last preceding paragraph, reduced 0.25% if the employee 7 was born before January 1, 1936, or 0.5% if the employee was 8 born on or after January 1, 1936, for each full month or 9 fractional part thereof that his attained age when such 10 annuity is to begin is less than 60. 11 Any employee born before January 1, 1936 who withdraws 12 with 20 or more years of service, and any employee with 20 or 13 more years of service who withdraws on or after January 1, 14 1988, may elect to receive, in lieu of any other employee 15 annuity provided in this Section, an annuity for life equal 16 to 1.80% for each of the first 10 years of service, 2.00% for 17 each of the next 10 years of service, 2.20% for each year of 18 service in excess of 20, but not exceeding 30, and 2.40% for 19 each year of service in excess of 30, of the highest average 20 annual salary for any 4 consecutive years within the last 10 21 years of service immediately preceding the date of 22 withdrawal, to begin not earlier than upon attained age of 55 23 years, if under such age at withdrawal, reduced 0.25% for 24 each full month or fractional part thereof that his attained 25 age when annuity is to begin is less than 60; except that an 26 employee retiring on or after January 1, 1988, at age 55 or 27 over but less than age 60, having at least 35 years of 28 service, or an employee retiring on or after July 1, 1990, at 29 age 55 or over but less than age 60, having at least 30 years 30 of service, or an employee retiring on or after the effective 31 date of this amendatory Act of 1997, at age 55 or over but 32 less than age 60, having at least 25 years of service, shall 33 not be subject to the reduction in retirement annuity because 34 of retirement below age 60. HB1641 Enrolled -76- LRB9001767MWpc 1 However, in the case of an employee who retired on or 2 after January 1, 1985 but before January 1, 1988, at age 55 3 or older and with at least 35 years of service, and who was 4 subject under this subsection (a) to the reduction in 5 retirement annuity because of retirement below age 60, that 6 reduction shall cease to be effective January 1, 1991, and 7 the retirement annuity shall be recalculated accordingly. 8 Any employee who withdraws on or after July 1, 1990, with 9 20 or more years of service, may elect to receive, in lieu of 10 any other employee annuity provided in this Section, an 11 annuity for life equal to 2.20% for each year of service of 12 the highest average annual salary for any 4 consecutive years 13 within the last 10 years of service immediately preceding the 14 date of withdrawal, to begin not earlier than upon attained 15 age of 55 years, if under such age at withdrawal, reduced 16 0.25% for each full month or fractional part thereof that his 17 attained age when annuity is to begin is less than 60; except 18 that an employee retiring at age 55 or over but less than age 19 60, having at least 30 years of service, shall not be subject 20 to the reduction in retirement annuity because of retirement 21 below age 60. 22 Any employee who withdraws on or after the effective date 23 of this amendatory Act of 1997 with 20 or more years of 24 service may elect to receive, in lieu of any other employee 25 annuity provided in this Section, an annuity for life equal 26 to 2.20%, for each year of service, of the highest average 27 annual salary for any 4 consecutive years within the last 10 28 years of service immediately preceding the date of 29 withdrawal, to begin not earlier than upon attainment of age 30 55 (age 50 if the employee has at least 30 years of service), 31 reduced 0.25% for each full month or remaining fractional 32 part thereof that the employee's attained age when annuity is 33 to begin is less than 60; except that an employee retiring at 34 age 50 or over with at least 30 years of service or at age 55 HB1641 Enrolled -77- LRB9001767MWpc 1 or over with at least 25 years of service shall not be 2 subject to the reduction in retirement annuity because of 3 retirement below age 60. 4 The maximum annuity payable under this paragraph (a) of 5 this Section shall not exceed 70% of highest average annual 6 salary in the case of an employee who withdraws prior to July 7 1, 1971, and 75% if withdrawal takes place on or after July 8 1, 1971. For the purpose of the minimum annuity provided in 9 said paragraphs $1,500 shall be considered the minimum annual 10 salary for any year; and the maximum annual salary to be 11 considered for the computation of such annuity shall be 12 $4,800 for any year prior to 1953, $6,000 for the years 1953 13 to 1956, inclusive, and the actual annual salary, as salary 14 is defined in this Article, for any year thereafter. 15 (b) For an employee receiving disability benefit, his 16 salary for annuity purposes under this section shall, for all 17 periods of disability benefit subsequent to the year 1956, be 18 the amount on which his disability benefit was based. 19 (c) An employee with 20 or more years of service, whose 20 entire disability benefit credit period expires prior to 21 attainment of age 55 while still disabled for service, shall 22 be entitled upon withdrawal to the larger of (1) the minimum 23 annuity provided above assuming that he is then age 55, and 24 reducing such annuity to its actuarial equivalent at his 25 attained age on such date, or (2) the annuity provided from 26 his age and service and prior service annuity credits. 27 (d) The minimum annuity provisions as aforesaid shall 28 not apply to any former employee receiving an annuity from 29 the fund, and who re-enters service as an employee, unless he 30 renders at least 3 years of additional service after the date 31 of re-entry. 32 (e) An employee in service on July 1, 1947, or who 33 became a contributor after July 1, 1947 and prior to July 1, 34 1950, or who shall become a contributor to the fund after HB1641 Enrolled -78- LRB9001767MWpc 1 July 1, 1950 prior to attainment of age 70, who withdraws 2 after age 65 with less than 20 years of service, for whom the 3 annuity has been fixed under the foregoing sections of this 4 Article shall, in lieu of the annuity so fixed, receive an 5 annuity as follows: 6 Such amount as he could have received had the accumulated 7 amounts for annuity been improved with interest at the 8 effective rate to the date of his withdrawal, or to 9 attainment of age 70, whichever is earlier, and had the city 10 contributed to such earlier date for age and service annuity 11 the amount that would have been contributed had he been under 12 age 65, after the date his annuity was fixed in accordance 13 with this Article, and assuming his annuity were computed 14 from such accumulations as of his age on such earlier date. 15 The annuity so computed shall not exceed the annuity which 16 would be payable under the other provisions of this section 17 if the employee was credited with 20 years of service and 18 would qualify for annuity thereunder. 19 (f) In lieu of the annuity provided in this or in any 20 other section of this Article, an employee having attained 21 age 65 with at least 15 years of service who withdraws from 22 service on or after July 1, 1971 and whose annuity computed 23 under other provisions of this Article is less than the 24 amount provided under this paragraph shall be entitled to 25 receive a minimum annual annuity for life equal to 1% of the 26 highest average annual salary for any 4 consecutive years 27 within the last 10 years of service immediately preceding 28 retirement for each year of his service plus the sum of $25 29 for each year of service. Such annual annuity shall not 30 exceed the maximum percentages stated under paragraph (a) of 31 this Section of such highest average annual salary. 32 (g) Any annuity payable under the preceding subsections 33 of this Section 11-134 shall be paid in equal monthly 34 installments. HB1641 Enrolled -79- LRB9001767MWpc 1 (h) The amendatory provisions of part (a) and (f) of 2 this Section shall be effective July 1, 1971 and apply in the 3 case of every qualifying employee withdrawing on or after 4 July 1, 1971. 5 (i) The amendatory provisions of this amendatory Act of 6 1985 relating to the discount of annuity because of 7 retirement prior to attainment of age 60 and increasing the 8 retirement formula for those born before January 1, 1936, 9 shall apply only to qualifying employees withdrawing on or 10 after August 16, 1985. 11 (j) Beginning on the effective date of this amendatory 12 Act of 1997January 1, 1991, the minimum amount of employee's 13 annuity shall be $550$350per month for life for the 14 following classes of employees, without regard to the fact 15 that withdrawal occurred prior to the effective date of this 16 amendatory Act of 1997January 1, 1991: 17 (1) any employee annuitant alive and receiving a 18 life annuity on the effective date of this amendatory Act 19 of 1997January 1, 1991, except a reciprocal annuity; 20 (2) any employee annuitant alive and receiving a 21 term annuity on the effective date of this amendatory Act 22 of 1997January 1, 1991, except a reciprocal annuity; 23 (3) any employee annuitant alive and receiving a 24 reciprocal annuity on the effective date of this 25 amendatory Act of 1997January 1, 1991, whose service in 26 this fund is at least 5 years; 27 (4) any employee annuitant withdrawing after age 60 28 on or after the effective date of this amendatory Act of 29 1997January 1, 1991, with at least 10 years of service 30 in this fund. 31 The increases granted under items (1), (2) and (3) of 32 this subsection (j) shall not be limited by any other Section 33 of this Act. 34 (Source: P.A. 85-964; 86-1488.) HB1641 Enrolled -80- LRB9001767MWpc 1 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1) 2 Sec. 11-145.1. Minimum annuities for widows. The widow 3 otherwise eligible for widow's annuity under other Sections 4 of this Article 11, of an employee hereinafter described, who 5 retires from service or dies while in the service subsequent 6 to the effective date of this amendatory provision, and for 7 which widow the amount of widow's annuity and widow's prior 8 service annuity combined, fixed or provided for such widow 9 under other provisions of said Article 11 is less than the 10 amount hereinafter provided in this section, shall, from and 11 after the date her otherwise provided annuity would begin, in 12 lieu of such otherwise provided widow's and widow's prior 13 service annuity, be entitled to the following indicated 14 amount of annuity: 15 (a) The widow of any employee who dies while in service 16 on or after the date on which he attains age 60 if the death 17 occurs before July 1, 1990, or on or after the date on which 18 he attains age 55 if the death occurs on or after July 1, 19 1990, with at least 20 years of service, or on or after the 20 date on which he attains age 50 if the death occurs on or 21 after the effective date of this amendatory Act of 1997 with 22 at least 30 years of service, shall be entitled to an annuity 23 equal to one-half of the amount of annuity which her deceased 24 husband would have been entitled to receive had he withdrawn 25 from the service on the day immediately preceding the date of 26 his death, conditional upon such widow having attained age 60 27 on or before such date if the death occurs before July 1, 28 1990, or age 55 if the death occurs on or after July 1, 1990. 29 Except as provided in subsection (j), the widow's annuity 30 shall not, however, exceed the sum of $500 a month if the 31 employee's death in service occurs before January 23, 1987. 32 The widow's annuity shall not be limited to a maximum dollar 33 amount if the employee's death in service occurs on or after 34 January 23, 1987. HB1641 Enrolled -81- LRB9001767MWpc 1 If the employee dies in service before July 1, 1990, and 2 if such widow of such described employee shall not be 60 or 3 more years of age on such date of death, the amount provided 4 in the immediately preceding paragraph for a widow 60 or more 5 years of age, shall, in the case of such younger widow, be 6 reduced by 0.25% for each month that her then attained age is 7 less than 60 years if the employee was born before January 1, 8 1936, or dies in service on or after January 1, 1988, or 0.5% 9 for each month that her then attained age is less than 60 10 years if the employee was born on or after January 1, 1936 11 and dies in service before January 1, 1988. 12 If the employee dies in service on or after July 1, 1990, 13 and if the widow of the employee has not attained age 55 on 14 or before the employee's date of death, the amount otherwise 15 provided in this subsection (a) shall be reduced by 0.25% for 16 each month that her then attained age is less than 55 years. 17 (b) The widow of any employee who dies subsequent to the 18 date of his retirement on annuity, and who so retired on or 19 after the date on which he attained age 60 if retirement 20 occurs before July 1, 1990, or on or after the date on which 21 he attained age 55 if retirement occurs on or after July 1, 22 1990, with at least 20 years of service, or on or after the 23 date on which he attained age 50 if the retirement occurs on 24 or after the effective date of this amendatory Act of 1997 25 with at least 30 years of service, shall be entitled to an 26 annuity equal to one-half of the amount of annuity which her 27 deceased husband received as of the date of his retirement on 28 annuity, conditional upon such widow having attained age 60 29 on or before the date of her husband's retirement on annuity 30 if retirement occurs before July 1, 1990, or age 55 if 31 retirement occurs on or after July 1, 1990. Except as 32 provided in subsection (j), thisSuch amount ofwidow's 33 annuity shall not, however, exceed the sum of $500 a month if 34 the employee's death occurs before January 23, 1987. The HB1641 Enrolled -82- LRB9001767MWpc 1 widow's annuity shall not be limited to a maximum dollar 2 amount if the employee's death occurs on or after January 23, 3 1987, regardless of the date of retirement; provided that, if 4 retirement was before January 23, 1987, the employee or 5 eligible spouse repays the excess spouse refund with interest 6 at the effective rate from the date of refund to the date of 7 repayment. 8 If the date of the employee's retirement on annuity is 9 before July 1, 1990, and if such widow of such described 10 employee shall not have attained such age of 60 or more years 11 on such date of her husband's retirement on annuity, the 12 amount provided in the immediately preceding paragraph for a 13 widow 60 or more years of age on the date of her husband's 14 retirement on annuity, shall, in the case of such then 15 younger widow, be reduced by 0.25% for each month that her 16 then attained age was less than 60 years if the employee was 17 born before January 1, 1936, or withdraws from service on or 18 after January 1, 1988, or 0.5% for each month that her then 19 attained age was less than 60 years if the employee was born 20 on or after January 1, 1936 and withdraws from service before 21 January 1, 1988. 22 If the date of the employee's retirement on annuity is on 23 or after July 1, 1990, and if the widow of the employee has 24 not attained age 55 by the date of the employee's retirement 25 on annuity, the amount otherwise provided in this subsection 26 (b) shall be reduced by 0.25% for each month that her then 27 attained age is less than 55 years. 28 (c) The foregoing provisions relating to minimum 29 annuities for widows shall not apply to the widow of any 30 former employee receiving an annuity from the fund on August 31 2, 1965 or on the effective date of this amendatory 32 provision, who re-enters service as a former employee, unless 33 such employee renders at least 3 years of additional service 34 after the date of re-entry. HB1641 Enrolled -83- LRB9001767MWpc 1 (d) (Blank).The amendatory provisions of part (a) and2(b) of this Section (increasing the maximum from $300 to $4003a month) shall be effective as of July 1, 1971, and apply in4the case of every qualifying widow whose husband dies while5in service on or after July 1, 1971 and prior to January 1,61984, or withdraws and enters on annuity on or after July 1,71971 and prior to January 1, 1984.8 (e) (Blank).The changes made in parts (a) and (b) of9this Section by this amendatory Act of 1983 (increasing the10maximum from $400 to $500 per month) shall apply to every11qualifying widow whose husband dies in the service on or12after January 1, 1984, or withdraws and enters on annuity on13or after January 1, 1984.14 (f) The amendments to this Section by this amendatory 15 Act of 1985, relating to changing the discount because of age 16 from 1/2 of 1% to 0.25% per month for widows of employees 17 born before January 1, 1936, shall apply only to qualifying 18 widows whose husbands die while in the service on or after 19 August 16, 1985 or withdraw and enter on annuity on or after 20 August 16, 1985. 21 (g) Beginning on the effective date of this amendatory 22 Act of 1997January 1, 1991, the minimum amount of widow's 23 annuity shall be $500$300per month for life for the 24 following classes of widows, without regard to the fact that 25 the death of the employee occurred prior to the effective 26 date of this amendatory Act of 1997January 1, 1991: 27 (1) any widow annuitant alive and receiving a term 28 annuity on the effective date of this amendatory Act of 29 1997January 1, 1991, except a reciprocal annuity; 30 (2) any widow annuitant alive and receiving a life 31 annuity on the effective date of this amendatory Act of 32 1997January 1, 1991, except a reciprocal annuity; 33 (3) any widow annuitant alive and receiving a 34 reciprocal annuity on the effective date of this HB1641 Enrolled -84- LRB9001767MWpc 1 amendatory Act of 1997January 1, 1991, whose employee 2 spouse's service in this fund was at least 5 years; 3 (4) the widow of an employee with at least 10 years 4 of service in this fund who dies after retirement, if the 5 retirement occurred prior to the effective date of this 6 amendatory Act of 1997January 1, 1991; 7 (5) the widow of an employee with at least 10 years 8 of service in this fund who dies after retirement, if 9 withdrawal occurs on or after the effective date of this 10 amendatory Act of 1997January 1, 1991; 11 (6) the widow of an employee who dies in service 12 with at least 5 years of service in this fund, if the 13 death in service occurs on or after the effective date of 14 this amendatory Act of 1997January 1, 1991. 15 The increases granted under items (1), (2), (3) and (4) 16 of this subsection (g) shall not be limited by any other 17 Section of this Act. 18 (h) The widow of an employee who retired or died in 19 service on or after January 1, 1985 and before July 1, 1990, 20 at age 55 or older, and with at least 35 years of service 21 credit, shall be entitled to have her widow's annuity 22 increased, effective January 1, 1991, to an amount equal to 23 50% of the retirement annuity that the deceased employee 24 received on the date of retirement, or would have been 25 eligible to receive if he had retired on the day preceding 26 the date of his death in service, provided that if the widow 27 had not attained age 60 by the date of the employee's 28 retirement or death in service, the amount of the annuity 29 shall be reduced by 0.25% for each month that her then 30 attained age was less than age 60 if the employee's 31 retirement or death in service occurred on or after January 32 1, 1988, or by 0.5% for each month that her attained age is 33 less than age 60 if the employee's retirement or death in 34 service occurred prior to January 1, 1988. However, in cases HB1641 Enrolled -85- LRB9001767MWpc 1 where a refund of excess contributions for widow's annuity 2 has been paid by the Fund, the increase in benefit provided 3 by this subsection (h)(i)shall be contingent upon repayment 4 of the refund to the Fund with interest at the effective rate 5 from the date of refund to the date of payment. 6 (i) If a deceased employee is receiving a retirement 7 annuity at the time of death and that death occurs on or 8 after the effective date of this amendatory Act of 1997, the 9 widow may elect to receive, in lieu of any other annuity 10 provided under this Article, 50% of the deceased employee's 11 retirement annuity at the time of death reduced by 0.25% for 12 each month that the widow's age on the date of death is less 13 than 55. However, in cases where a refund of excess 14 contributions for widow's annuity has been paid by the Fund, 15 the benefit provided by this subsection (i) is contingent 16 upon repayment of the refund to the Fund with interest at the 17 effective rate from the date of refund to the date of 18 payment. 19 (j) For widows of employees who died before January 23, 20 1987 after retirement on annuity or in service, the maximum 21 dollar amount limitation on widow's annuity shall cease to 22 apply, beginning with the first annuity payment after the 23 effective date of this amendatory Act of 1997; except that if 24 a refund of excess contributions for widow's annuity has been 25 paid by the Fund, the increase resulting from this subsection 26 (j) shall not begin before the refund has been repaid to the 27 Fund, together with interest at the effective rate from the 28 date of the refund to the date of repayment. 29 (Source: P.A. 85-964; 86-1488.) 30 (40 ILCS 5/11-149) (from Ch. 108 1/2, par. 11-149) 31 Sec. 11-149. Maximum annuities. 32 (1) The annuities to an employee and his widow,are 33 subject to the following limitations: HB1641 Enrolled -86- LRB9001767MWpc 1 (a) No age and service annuity or age and service and 2 prior service annuity combined in excess of 60% of highest 3 salary of an employee and no minimum annuity in excess of the 4 annuity provided in Section 11-134 or set forth as a maximum 5 in any other Section of this Code relating to minimum 6 annuities for employees included under Article 11 of this 7 Code shall be payable to any employee excepting to the extent 8 that the annuity may exceed such per cent or amount under 9 Section 11-134.1 and 11-134.3 providing for automatic 10 increases after retirement. 11 (b) No annuity in excess of 60% of such highest salary 12 shall be payable to a widow if death of an employee resulted 13 from injury incurred in the performance of duty; provided, 14 the annuity to a widow, or a widow's annuity plus 15 compensation annuity shall not exceed $500 per month if the 16 employee's death occurs before January 23, 1987, except as 17 provided in paragraph (d). The widow's annuity, or a widow's 18 annuity plus compensation annuity, shall not be limited to a 19 maximum dollar amount if the employee's death occurs on or 20 after January 23, 1987, regardless of the date of injury. 21 (c) No annuity in excess of 50% of such highest salary 22 shall be payable to a widow in the case of death of an 23 employee from any cause other than injury incurred in the 24 performance of duty; provided, the annuity to a widow, or a 25 widow's annuity plus supplemental annuity, shall not exceed 26 $500 per month if the employee's death occurs before January 27 23, 1987, except as provided in paragraph (d). The widow's 28 annuity, or widow's annuity plus supplemental annuity, shall 29 not be limited to a maximum dollar amount if the employee's 30 death occurs on or after January 23, 1987. 31 (d) For widows of employees who died before January 23, 32 1987 after retirement on annuity or in service, the maximum 33 dollar amount limitation on widow's annuity (or widow's 34 annuity plus compensation or supplemental annuity) shall HB1641 Enrolled -87- LRB9001767MWpc 1 cease to apply, beginning with the first annuity payment 2 after the effective date of this amendatory Act of 1997; 3 except that if a refund of excess contributions for widow's 4 annuity has been paid by the Fund, the increase resulting 5 from this paragraph (d) shall not begin before the refund has 6 been repaid to the Fund, together with interest at the 7 effective rate from the date of the refund to the date of 8 repayment. 9 (2) If when an employee's annuity is fixed, the amount 10 accumulated to his credit therefor, as of his age at such 11 time, exceeds the amount necessary for the annuity, all 12 employee contributions for annuity purposes, after the date 13 on which the accumulated sums to the credit of such employee 14 for annuity purposes would first have provided such employee 15 with such amount of annuity as of his age at such date shall 16 be refunded when he enters upon annuity, with interest at the 17 effective rate. 18 If the aforesaid annuity so fixed is not payable, but a 19 larger amount is payable as a minimum annuity, such refund 20 shall be reduced by 5/12 of the value of the difference in 21 the annuity payable and the amount theretofore fixed as the 22 value of such difference may be at the date and as of the age 23 of the employee when his annuity begins; provided that if the 24 employee was credited with city contributions for any period 25 for which he made no contribution, or a contribution of less 26 than 3 1/4% of salary, a further reduction in the refund 27 shall be made by the equivalent of what he would have 28 contributed during such period less his actual contributions, 29 had the rate of employee contributions in force on the 30 effective date been in effect throughout his entire service, 31 prior to such effective date, with interest computed on such 32 amounts at the effective rate. 33 (3) If at the time the annuity for a wife is fixed, the 34 employee's credit for a widow's annuity exceeds that HB1641 Enrolled -88- LRB9001767MWpc 1 necessary to provide the maximum annuity prescribed in this 2 section, all employee contributions for such widow's annuity 3 for service after the date on which the accumulated sums to 4 the credit of the employee for such annuity purposes would 5 first have provided the wife of such employee with such 6 amount of annuity if such annuity were computed on the basis 7 of the combined annuity mortality table with interest at 3% 8 per annum with ages at date of determination taken as 9 specified in this article, shall be refunded to the employee, 10 with interest at the effective rate. 11 If the employee was credited with city contributions for 12 widow's annuity for any service prior to the effective date, 13 any amount so refundable, shall be reduced by the equivalent 14 of what he would have contributed, had his contributions for 15 widow's annuity been made at the rate of 1% throughout his 16 entire service, prior to the effective date, with interest on 17 such amounts at the effective rate. 18 (4) If at the death of an employee prior to age 65, the 19 credit for widow's annuity, exceeds that necessary to provide 20 the maximum annuity prescribed in this section, all employee 21 contributions for annuity purposes, for service after the 22 date on which the accumulated sums to the credit of such 23 employee for annuity purposes would first have provided such 24 widow with such amount of annuity if such annuity were 25 computed on the basis of the combined annuity mortality table 26 with interest at 3% per annum with ages at date of 27 determination taken as specified in this article, shall be 28 refunded to the widow, with applicable interest. 29 If the employee was credited with city contributions for 30 any period of service during which he was not required to 31 make a contribution, or made a contribution of less than 3 32 1/4% of salary, the refund shall be reduced by the equivalent 33 of the contributions he would have made during such period, 34 less any amount he contributed, had the rate of employee HB1641 Enrolled -89- LRB9001767MWpc 1 contributions in effect on the effective date been in force 2 throughout his entire service, prior to the effective date, 3 with applicable interest; provided, that if the employee was 4 credited with city contributions for widow's annuity for any 5 service prior to the effective date, any amount so refundable 6 shall be further reduced by the equivalent of what he would 7 have contributed had he made contributions for widow's 8 annuity at the rate of 1% throughout his entire service, 9 prior to such effective date, with applicable interest. 10(5) The amendatory provisions of part 1, paragraphs (b)11and (c) of this Section (increasing the maximum from $300 to12$400 a month) shall be effective as of July 1, 1971, and13apply in the case of every qualifying widow whose husband14dies while in service on or after July 1, 1971 and prior to15January 1, 1984, or withdraws and enters on annuity on or16after July 1, 1971 and prior to January 1, 1984.17(6) The changes in paragraphs (b) and (c) of subsection18(1) of this Section made by this amendatory Act of 198319(increasing the maximum from $400 to $500 per month) shall20apply to every qualifying widow whose husband dies in the21service on or after January 1, 1984, or withdraws and enters22on annuity on or after January 1, 1984.23 (Source: P.A. 86-273.) 24 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154) 25 Sec. 11-154. Amount of child's annuity. Beginning on 26 the effective date of this amendatory Act of 1997January 1,271988, the amount of a child's annuity shall be $220$120per 28 month for each child while the spouse of the deceased 29 employee parent survives, and $250$150per month for each 30 child when no such spouse survives, and shall be subject to 31 the following limitations: 32 (1) If the combined annuities for the widow and children 33 of an employee whose death resulted from injury incurred in HB1641 Enrolled -90- LRB9001767MWpc 1 the performance of duty, or for the children where a widow 2 does not exist, exceed 70% of the employee's final monthly 3 salary, the annuity for each child shall be reduced pro rata 4 so that the combined annuities for the family shall not 5 exceed such limitation; 6 (2) For the family of an employee whose death is the 7 result of any cause other than injury incurred in the 8 performance of duty, in which the combined annuities for the 9 family exceed 60% of the employee's final monthly salary, the 10 annuity for each child shall be reduced pro rata so that the 11 combined annuities for the family shall not exceed such 12 limitation. 13 A child's annuity shall be paid to the parent who is 14 providing for the child, unless another person has been 15 appointed the child's legal guardian. 16 The increase in child's annuity provided by this 17 amendatory Act of 19971987shall apply to all child's 18 annuities being paid on or after the effective date of this 19 amendatory Act of 1997.January 1, 1988, subject toTheabove20 limitations on the combined annuities for a family in parts 21 (1) and (2) of this Section do not apply to families of 22 employees who died before the effective date of this 23 amendatory Act of 1997. 24 (Source: P.A. 85-964.) 25 (40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215) 26 Sec. 11-215. Computation of service. 27 (a) In computing the term of service of an employee 28 prior to the effective date, the entire period beginning on 29 the date he was first appointed and ending on the day before 30 the effective date, except any intervening period during 31 which he was separated by withdrawal from service, shall be 32 counted for all purposes of this Article. Only the first year 33 of each period of lay-off or leave of absence without pay, HB1641 Enrolled -91- LRB9001767MWpc 1 continuing or extending for a period in excess of one year, 2 shall be counted as such service. 3 (b) For a person employed by an employer for whom this 4 Article was in effect prior to August 1, 1949, from whose 5 salary deductions are first made under this Article after 6 July 31, 1949, any period of service rendered prior to the 7 effective date, unless he was in service on the day before 8 the effective date, shall not be counted as service. 9 (c) In computing the term of service of an employee 10 subsequent to the day before the effective date, the 11 following periods of time shall be counted as periods of 12 service for annuity purposes: 13 (1) the time during which he performed the duties 14 of his position; 15 (2) leaves of absence with whole or part pay, and 16 leaves of absence without pay not longer than 90 days; 17 (3) leaves of absence without pay during which a 18 participant is employed full-time by a local labor 19 organization that represents municipal employees, 20 provided that (A) the participant continues to make 21 employee contributions to the Fund as though he were an 22 active employee, based on the regular salary rate 23 received by the participant for his municipal employment 24 immediately prior to such leave of absence (and in the 25 case of such employment prior to December 9, 1987, pays 26 to the Fund an amount equal to the employee contributions 27 for such employment plus regular interest thereon as 28 calculated by the board), and based on his current salary 29 with such labor organization after the effective date of 30 this amendatory Act of 1991, (B) after January 1, 1989 31 the participant, or the labor organization on the 32 participant's behalf, makes contributions to the Fund as 33 though it were the employer, in the same amount and same 34 manner as specified under this Article, based on the HB1641 Enrolled -92- LRB9001767MWpc 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 HB1641 Enrolled -93- LRB9001767MWpc 1 (i) a duty disability benefit under this Article, or (ii) 2 a temporary total disability benefit under the Workers' 3 Compensation Act if the disability results from a 4 condition commonly termed heart attack or stroke or any 5 other condition falling within the broad field of 6 coronary involvement or heart disease, or (iii) whole or 7 part pay. 8 However, any period of service rendered by an employee 9 contributor prior to the date he became a contributor to the 10 fund shall not be counted as a period of service for ordinary 11 disability purposes, unless the person made payment for the 12 period as provided in Section 11-221 of this Article, in 13 which case the period shall be counted as a period of service 14 for ordinary disability purposes for periods of disability on 15 or after the effective date of this amendatory Act of 1997. 16 Overtime or extra service shall not be included in 17 computing any term of service. Not more than 1 year of 18 service shall be allowed for service rendered during any 19 calendar year. 20 (Source: P.A. 86-272; 86-1488.) 21 (40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04) 22 Sec. 14-103.04. Department. "Department": Any 23 department, institution, board, commission, officer, court, 24 or any agency of the State having power to certify payrolls 25 to the State Comptroller authorizing payments of salary or 26 wages against State appropriations, or against trust funds 27 held by the State Treasurer, except those departments 28 included under the term "employer" in the State Universities 29 Retirement System. "Department" includes the Illinois 30 Development Finance Authority. "Department" also includes 31 the Illinois Comprehensive Health Insurance Board and the 32 Illinois Rural Bond Bank. 33 (Source: P.A. 86-676; 86-1488.) HB1641 Enrolled -94- LRB9001767MWpc 1 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104) 2 Sec. 14-104. Service for which contributions permitted. 3 Contributions provided for in this Section shall cover the 4 period of service granted, and be based upon employee's 5 compensation and contribution rate in effect on the date he 6 last became a member of the System; provided that for all 7 employment prior to January 1, 1969 the contribution rate 8 shall be that in effect for a noncovered employee on the date 9 he last became a member of the System. Contributions 10 permitted under this Section shall include regular interest 11 from the date an employee last became a member of the System 12 to date of payment. 13 These contributions must be paid in full before 14 retirement either in a lump sum or in installment payments in 15 accordance with such rules as may be adopted by the board. 16 (a) Any member may make contributions as required in 17 this Section for any period of service, subsequent to the 18 date of establishment, but prior to the date of membership. 19 (b) Any employee who had been previously excluded from 20 membership because of age at entry and subsequently became 21 eligible may elect to make contributions as required in this 22 Section for the period of service during which he was 23 ineligible. 24 (c) An employee of the Department of Insurance who, 25 after January 1, 1944 but prior to becoming eligible for 26 membership, received salary from funds of insurance companies 27 in the process of rehabilitation, liquidation, conservation 28 or dissolution, may elect to make contributions as required 29 in this Section for such service. 30 (d) Any employee who rendered service in a State office 31 to which he was elected, or rendered service in the elective 32 office of Clerk of the Appellate Court prior to the date he 33 became a member, may make contributions for such service as 34 required in this Section. Any member who served by HB1641 Enrolled -95- LRB9001767MWpc 1 appointment of the Governor under the Civil Administrative 2 Code of Illinois and did not participate in this System may 3 make contributions as required in this Section for such 4 service. 5 (e) Any person employed by the United States government 6 or any instrumentality or agency thereof from January 1, 1942 7 through November 15, 1946 as the result of a transfer from 8 State service by executive order of the President of the 9 United States shall be entitled to prior service credit 10 covering the period from January 1, 1942 through December 31, 11 1943 as provided for in this Article and to membership 12 service credit for the period from January 1, 1944 through 13 November 15, 1946 by making the contributions required in 14 this Section. A person so employed on January 1, 1944 but 15 whose employment began after January 1, 1942 may qualify for 16 prior service and membership service credit under the same 17 conditions. 18 (f) An employee of the Department of Labor of the State 19 of Illinois who performed services for and under the 20 supervision of that Department prior to January 1, 1944 but 21 who was compensated for those services directly by federal 22 funds and not by a warrant of the Auditor of Public Accounts 23 paid by the State Treasurer may establish credit for such 24 employment by making the contributions required in this 25 Section. An employee of the Department of Agriculture of the 26 State of Illinois, who performed services for and under the 27 supervision of that Department prior to June 1, 1963, but was 28 compensated for those services directly by federal funds and 29 not paid by a warrant of the Auditor of Public Accounts paid 30 by the State Treasurer, and who did not contribute to any 31 other public employee retirement system for such service, may 32 establish credit for such employment by making the 33 contributions required in this Section. 34 (g) Any employee who executed a waiver of membership HB1641 Enrolled -96- LRB9001767MWpc 1 within 60 days prior to January 1, 1944 may, at any time 2 while in the service of a department, file with the board a 3 rescission of such waiver. Upon making the contributions 4 required by this Section, the member shall be granted the 5 creditable service that would have been received if the 6 waiver had not been executed. 7 (h) Until May 1, 1990, an employee who was employed on a 8 full-time basis by a regional planning commission for at 9 least 5 continuous years may establish creditable service for 10 such employment by making the contributions required under 11 this Section, provided that any credits earned by the 12 employee in the commission's retirement plan have been 13 terminated. 14 (i) Any person who rendered full time contractual 15 services to the General Assembly as a member of a legislative 16 staff may establish service credit for up to 8 years of such 17 services by making the contributions required under this 18 Section, provided that application therefor is made not later 19 than July 1, 1991. 20 (j) By paying the contributions otherwise required under 21 this Section, plus an amount determined by the Board to be 22 equal to the employer's normal cost of the benefit plus 23 interest, an employee may establish service credit for a 24 period of up to 2 years spent in active military service for 25 which he does not qualify for credit under Section 14-105, 26 provided that (1) he was not dishonorably discharged from 27 such military service, and (2) the amount of service credit 28 established by a member under this subsection (j), when added 29 to the amount of military service credit granted to the 30 member under subsection (b) of Section 14-105, shall not 31 exceed 5 years. 32 (k) An employee who was employed on a full-time basis by 33 the Illinois State's Attorneys Association Statewide 34 Appellate Assistance Service LEAA-ILEC grant project prior to HB1641 Enrolled -97- LRB9001767MWpc 1 the time that project became the State's Attorneys Appellate 2 Service Commission, now the Office of the State's Attorneys 3 Appellate Prosecutor, an agency of State government, may 4 establish creditable service for not more than 60 months 5 service for such employment by making contributions required 6 under this Section. 7 (l) Any person who rendered contractual services to a 8 member of the General Assembly as a worker providing 9 constituent services to persons in the member's district may 10 establish creditable service for up to 8 years of those 11 contractual services by making the contributions required 12 under this Section. The System shall determine a full-time 13 salary equivalent for the purpose of calculating the required 14 contribution. To establish credit under this subsection, the 15 applicant must apply to the System by March 1, 1998. 16 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.) 17 (40 ILCS 5/14-104.10 new) 18 Sec. 14-104.10. Illinois Development Finance Authority. 19 An employee may establish creditable service for periods 20 prior to the date upon which the Illinois Development Finance 21 Authority first becomes a department (as defined in Section 22 14-103.04) during which he or she was employed by the 23 Illinois Development Finance Authority or the Illinois 24 Industrial Development Authority, by applying in writing and 25 paying to the System an amount equal to (i) employee 26 contributions for the period for which credit is being 27 established, based upon the employee's compensation and the 28 applicable contribution rate in effect on the date he or she 29 last became a member of the System, plus (ii) the employer's 30 normal cost of the credit established, plus (iii) interest on 31 the amounts in items (i) and (ii) at the rate of 2.5% per 32 year, compounded annually, from the date the applicant last 33 became a member of the System to the date of payment. This HB1641 Enrolled -98- LRB9001767MWpc 1 payment must be paid in full before retirement, either in a 2 lump sum or in installment payments in accordance with the 3 rules of the Board. 4 (40 ILCS 5/14-105.7 new) 5 Sec. 14-105.7. Transfer to Article 9 fund. (a) Until 6 July 1, 1998, any active or inactive member of the System who 7 has established creditable service under paragraph (i) of 8 Section 14-104 (relating to contractual service to the 9 General Assembly) and is an active contributor to the pension 10 fund established under Article 9 of this Code may apply to 11 the Board for transfer of all of his or her creditable 12 service accumulated under this System to the Article 9 fund. 13 The creditable service shall be transferred forthwith. 14 Payment by this System to the Article 9 fund shall be made at 15 the same time and shall consist of: 16 (1) the amounts accumulated to the credit of the 17 applicant for that service, including regular interest, 18 on the books of the System on the date of transfer; plus 19 (2) employer contributions in an amount equal to 20 the amount determined under item (1). 21 Participation in this System as to the credits transferred 22 under this Section terminates on the date of transfer. 23 (b) Any person transferring credit under this Section 24 may reinstate credits and creditable service terminated upon 25 receipt of a refund, by paying to the System, before July 1, 26 1998, the amount of the refund plus regular interest from the 27 date of refund to the date of payment. 28 (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106) 29 Sec. 15-106. Employer. "Employer": The University of 30 Illinois, Southern Illinois University, Chicago State 31 University, Eastern Illinois University, Governors State 32 University, Illinois State University, Northeastern Illinois HB1641 Enrolled -99- LRB9001767MWpc 1 University, Northern Illinois University, Western Illinois 2 University, the State Board of Higher Education, the Illinois 3 Mathematics and Science Academy, the State Geological Survey 4 Division of the Department of Natural Resources, the State 5 Natural History Survey Division of the Department of Natural 6 Resources, the State Water Survey Division of the Department 7 of Natural Resources, the Hazardous Waste Research and 8 Information Center of the Department of Natural Resources, 9 the University Civil Service Merit Board, the Board of 10 Trustees of the State Universities Retirement System, the 11 Illinois Community College Board, State Community College of 12 East St. Louis, community college boards, any association of 13 community college boards organized under Section 3-55 of the 14 Public Community College Act, the Board of Examiners 15 established under the Illinois Public Accounting Act, and, 16 only during the period for which employer contributions 17 required under Section 15-155 are paid, the following 18 organizations: the alumni associations, the foundations and 19 the athletic associations which are affiliated with the 20 universities and colleges included in this Section as 21 employers. A department as defined in Section 14-103.04 is an 22 employer for any person appointed by the Governor under the 23 Civil Administrative Code of the State who is a participating 24 employee as defined in Section 15-109. 25 (Source: P.A. 89-4, eff. 1-1-96; 89-445, eff. 2-7-96.) 26 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112) 27 Sec. 15-112. Final rate of earnings. "Final rate of 28 earnings": For an employee who is paid on an hourly basis or 29 who receives an annual salary in installments during 12 30 months of each academic year, the average annual earnings 31 during the 48 consecutive calendar month period ending with 32 the last day of final termination of employment or the 4 33 consecutive academic years of service in which the employee's HB1641 Enrolled -100- LRB9001767MWpc 1 earnings were the highest, whichever is greater. For any 2 other employee, the average annual earnings during the 4 3 consecutive academic years of service in which his or her 4 earnings were the highest. For an employee with less than 48 5 months or 4 consecutive academic years of service, the 6 average earnings during his or her entire period of service. 7 The earnings of an employee with more than 36 months of 8 service prior to the date of becoming a participant are, for 9 such period, considered equal to the average earnings during 10 the last 36 months of such service. For an employee on leave 11 of absence with pay, or on leave of absence without pay who 12 makes contributions during such leave, earnings are assumed 13 to be equal to the basic compensation on the date the leave 14 began. For an employee on disability leave, earnings are 15 assumed to be equal to the basic compensation on the date 16 disability occurs or the average earnings during the 24 17 months immediately preceding the month in which disability 18 occurs, whichever is greater. 19 For a participant who retires on or after the effective 20 date of this amendatory Act of 1997 with at least 20 years of 21 service as a firefighter or police officer under this 22 Article, the final rate of earnings shall be the annual rate 23 of earnings received by the participant on his or her last 24 day as a firefighter or police officer under this Article, if 25 that is greater than the final rate of earnings as calculated 26 under the other provisions of this Section. 27 If a participant is an employee for at least 6 months 28 during the academic year in which his or her employment is 29 terminated, the annual final rate of earnings shall be 25% of 30 the sum of (1) the annual basic compensation for that year, 31 and (2) the amount earned during the 36 months immediately 32 preceding that year, if this is greater than the final rate 33 of earnings as calculated under the other provisions of this 34 Section. HB1641 Enrolled -101- LRB9001767MWpc 1 In the determination of the final rate of earnings for an 2 employee, that part of an employee's earnings for any 3 academic year beginning after June 30, 1997, which exceeds 4 the employee's earnings with that employer for the preceding 5 year by more than 20 percent shall be excluded; in the event 6 that an employee has more than one employer this limitation 7 shall be calculated separately for the earnings with each 8 employer. In making such calculation, only the basic 9 compensation of employees shall be considered, without regard 10 to vacation or overtime or to contracts for summer 11 employment. 12 The following are not considered as earnings in 13 determining final rate of earnings: separation pay, 14 retirement pay, payment in lieu of unused sick leave and 15 payments from an employer for the period used in determining 16 final rate of earnings for any purpose other than services 17 rendered, leave of absence or vacation granted during that 18 period, and vacation of up to 56 work days allowed upon 19 termination of employment under a vacation policy of an 20 employer which was in effect on or before January 1, 1977. 21 Intermittent periods of service shall be considered as 22 consecutive in determining final rate of earnings. 23 (Source: P.A. 84-1472.) 24 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2) 25 Sec. 15-113.2. Service for leaves of absence. "Service 26 for leaves of absence" includes those periods of leaves of 27 absence at less than 50% pay, except military leave and 28 periods of disability leave in excess of 60 days, for which 29 the employee pays the contributions required under Section 30 15-157 in accordance with rules prescribed by the board based 31 upon the employee's basic compensation on the date the leave 32 begins, or in the case of leave for service with a teacher 33 organization, based upon the actual compensation received by HB1641 Enrolled -102- LRB9001767MWpc 1 the employee for such service after January 26, 1988, if the 2 employee so elects within 30 days of that date or the date 3 the leave for service with a teacher organization begins, 4 whichever is later; provided that the employee (1) returns to 5 employment covered by this system at the expiration of the 6 leave, or within 30 days after the termination of a 7 disability which occurs during the leave and continues this 8 employment at a percentage of time equal to or greater than 9 the percentage of time immediately preceding the leave of 10 absence for at least 8 consecutive months or a period equal 11 to the period of the leave, whichever is less, or (2) is 12 precluded from meeting the foregoing conditions because of 13 disability or death. If service credit is denied because the 14 employee fails to meet these conditions, the contributions 15 covering the leave of absence shall be refunded without 16 interest. The return to employment condition does not apply 17 if the leave of absence is for service with a teacher 18 organizationand the leave of absence is in effect on the19effective date of this amendatory Act of 1993. 20 Service credit provided under this Section shall not 21 exceed 3 years in any period of 10 years, unless the employee 22 is on special leave granted by the employer for service with 23 a teacher organization. Commencing with the fourth year in 24 any period of 10 years, a participant on such special leave 25 is also required to pay employer contributions equal to the 26 normal cost as defined in Section 15-155, based upon the 27 employee's basic compensation on the date the leave begins, 28 or based upon the actual compensation received by the 29 employee for service with a teacher organization if the 30 employee has so elected. 31 (Source: P.A. 86-1488; 87-1265.) 32 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3) 33 Sec. 15-113.3. Service for periods of military service. HB1641 Enrolled -103- LRB9001767MWpc 1 "Service for periods of military service": Those periods, 2 not exceeding 5 years, during which a person served in the 3 armed forces of the United States, of which all but 2 years 4 must have immediately followed a period of employment with an 5 employer under this system or the State Employees' Retirement 6 System of Illinois; provided that the person received a 7 discharge other than dishonorable and again became an 8 employee under this system within one year after discharge. 9 However, for the up to 2 years of military service not 10 immediately following employment, the applicant must make 11 contributions to the System (1) at the rates provided in 12 Section 15-157 based upon the employee's basic compensation 13 on the last date as a participating employee prior to such 14 military service, or on the first date as a participating 15 employee after such military service, whichever is greater, 16 plus (2) an amount determined by the board to be equal to the 17 employer's normal cost of the benefits accrued for such 18 military service, plus (3) interest on items (1) and (2) at 19 the effective rate from the later of the date of first 20 membership in the System or the date of conclusion of 21 military service to the date of payment. The change in the 22 required contribution for purchased military credit made by 23 this amendatory Act of 1993 does not entitle any person to a 24 refund of contributions already paid. 25 The changes to this Section made by this amendatory Act 26 of 1991 shall apply not only to persons who on or after its 27 effective date are in service under the System, but also to 28 persons whose employment terminated prior to that date, 29 whether or not the person is an annuitant on that date. In 30 the case of an annuitant who applies for credit allowable 31 under this Section for a period of military service that did 32 not immediately follow employment, and who has made the 33 required contributions for such credit, the annuity shall be 34 recalculated to include the additional service credit, with HB1641 Enrolled -104- LRB9001767MWpc 1 the increase taking effect on the date the System received 2 written notification of the annuitant's intent to purchase 3 the credit, if payment of all the required contributions is 4 made within 60 days of such notice, or else on the first 5 annuity payment date following the date of payment of the 6 required contributions. In calculating the automatic annual 7 increase for an annuity that has been recalculated under this 8 Section, the increase attributable to the additional service 9 allowable under this amendatory Act of 1991 shall be included 10 in the calculation of automatic annual increases accruing 11 after the effective date of the recalculation. 12 (Source: P.A. 87-794; 87-1265.) 13 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4) 14 Sec. 15-113.4. Service for unused sick leave. "Service 15 for unused sick leave": A participant who is an employee 16 under this System or one of the other systems subject to 17 Article 20 of this Code within 60 days immediately preceding 18 the date on which his or her retirement annuity begins, is 19 entitled to credit for service for that portion of unused 20 sick leave earned in the course of employment with an 21 employer and credited on the date of termination of 22 employment by an employer for which payment is not received, 23 in accordance with the following schedule: 30 through 90 24 full calendar days and 20 through 59 full work days of unused 25 sick leave, 1/4 of a year of service; 91 through 180 full 26 calendar days and 60 through 119 full work days, 1/2 of a 27 year of service; 181 through 270 full calendar days and 120 28 through 179 full work days, 3/4 of a year of service; 271 29 through 360 full calendar days and 180 through 240 full work 30 days, one year of service. Only uncompensated, unused sick 31 leave earned in accordance with an employer's sick leave 32 accrual policy generally applicable to employees or a class 33 of employees shall be taken into account in calculating HB1641 Enrolled -105- LRB9001767MWpc 1 service credit under this Section. Any uncompensated, unused 2 sick leave granted by an employer to facilitate the hiring, 3 retirement, termination, or other special circumstances of an 4 employee shall not be taken into account in calculating 5 service credit under this Section. If a participant 6 transfers from one employer to another, the unused sick leave 7 credited by the previous employer shall be considered in 8 determining service to be credited under this Section, even 9 if the participant terminated service prior to the effective 10 date of P.A. 86-272 (August 23, 1989); if necessary, the 11 retirement annuity shall be recalculated to reflect such sick 12 leave credit. Each employer shall certify to the board the 13 number of days of unused sick leave accrued to the 14 participant's credit on the date that the participant's 15 status as an employee terminated. This period of unused sick 16 leave shall not be considered in determining the date the 17 retirement annuity begins. 18 (Source: P.A. 86-272; 87-794.) 19 (40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5) 20 Sec. 15-113.5. Service for employment with other public 21 agencies in this State. "Service for employment with other 22 public agencies in this State":includes the following 23 periods: 24 (a) periods during which a person rendered services for 25 the State of Illinois, prior to January 1, 1944, under 26 employment not covered by this Article, if (1) such periods 27 would have been considered creditable service under the State 28 Employees' Retirement System of Illinois had that system been 29 in effect at that time, and (2) service credit for such 30 periods has not been granted under the State Employees' 31 Retirement System of Illinois. 32 (b) periods credited under the State Employees' 33 Retirement System of Illinois on the date an employee became HB1641 Enrolled -106- LRB9001767MWpc 1 eligible for participation in the State Universities 2 Retirement System as a result of a transfer of a State 3 function from a department, commission or other agency of 4 this State to an employer, excluding periods as a "covered 5 employee" as defined in Article 14 of this Code, provided the 6 employee has received a refund of his or her contributions 7 from the State Employees' Retirement System of Illinois and 8 pays to this system contributions equal to the amount of the 9 refund together with compound interest at the rate required 10 for repayment of a refund under Section 15-154 from the date 11 the refund is received to the date payment is made. 12 (c) periods credited in a retirement system covering a 13 governmental unit, as defined in Section 20-107 on the date a 14 person becomes a participant, if (1) a function of this 15 governmental unit is transferred in whole or in part to an 16 employer, and (2) the person transfers employment from the 17 governmental unit to such employer within 6 months after the 18 employer begins operation of this function, and (3) the 19 person cannot qualify for a proportional retirement annuity 20 from the retirement system covering this governmental unit, 21 and (4) the participant receives a refund of his or her 22 contributions from the retirement system covering this 23 governmental unit and pays to this system contributions equal 24 to the amount of the refund together with compound interest 25 from the date the refund is made by the system to the date 26 payment is received by the board at the rate of 6% per annum 27 through August 31, 1982, and at the effective rates after 28 that date. 29 (d) periods during which a participant contributed to 30 the Park Policemen's Annuity Fund as defined in Section 31 5-219, provided the participant and the Chicago Policemen's 32 Annuity Fund pay to this system the required employee and 33 employer contributions. 34 (e) periods during which a person rendered services for HB1641 Enrolled -107- LRB9001767MWpc 1 an athletic association affiliated with the University of 2 Illinois, provided that (1) the employee was employed by that 3 athletic association on January 1, 1960, (2) annuity 4 contracts covering that employment have been purchased by 5 other retirement systems covering employees of the athletic 6 association, and (3) the employee files with the board an 7 election to become a participant and assigns to the board his 8 or her right, title, and interest in those annuity contracts. 9 (Source: P.A. 83-1440.) 10 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7) 11 Sec. 15-113.7. Service for other public employment. 12 "Service for other public employment": Includes those 13 periods not exceeding the lesser of 10 years or 2/3 of the 14 service granted under other Sections of this Article dealing 15 with service credit, during which a person was employed full 16 time by the United States government, or by the government of 17 a state, or by a political subdivision of a state, or by an 18 agency or instrumentality of any of the foregoing, if the 19 person (1) cannot qualify for a retirement pension or other 20 benefit based upon employer contributions from another 21 retirement system, exclusive of federal social security, 22 based in whole or in part upon this employment, and (2) pays 23 the lesser of (A) an amount equal to 8% of his or her annual 24 basic compensation on the date of becoming a participating 25 employee subsequent to this service multiplied by the number 26 of years of such service, together with compound interest 27 from the date participation begins to the date payment is 28 received by the board at the rate of 6% per annum through 29 August 31, 1982, and at the effective rates after that date, 30 and (B) 50% of the actuarial value of the increase in the 31 retirement annuity provided by this service, and (3) 32 contributes for at least 5 years subsequent to this 33 employment to one or more of the following systems: the HB1641 Enrolled -108- LRB9001767MWpc 1 State Universities Retirement System, the Teachers' 2 Retirement System of the State of Illinois, and the Public 3 School Teachers' Pension and Retirement Fund of Chicago. If 4 a function of a governmental unit as defined by Section 5 20-107 is transferred by law, in whole or in part to an 6 employer, and an employee transfers employment from this 7 governmental unit to such employer within 6 months of the 8 transfer of the function, the payment for service authorized 9 under this Section shall not exceed the amount which would 10 have been payable for this service to the retirement system 11 covering the governmental unit from which the function was 12 transferred. 13 The service granted under this Section shall not be 14 considered in determining whether the person has the minimum 15 of 8 years of service required to qualify for a retirement 16 annuity at age 55 or the 5 years of service required to 17 qualify for a retirement annuity at age 62, as provided in 18 Section 15-135. The maximum allowable service of 10 years 19 for this governmental employment shall be reduced by the 20 service credit which is validated under paragraph (3) of 21 Section 16-127 and paragraph one of Section 17-133. 22 Except as hereinafter provided, this Section shall not 23 apply to persons who become participants in the system after 24 September 1, 1974.Except as hereinafter provided, credit25for military service under this Section shall be allowed only26to persons who have applied for such credit before September271, 1974. The foregoing September 1, 1974, limitations do not28apply to any person who became a participant in the system on29or before January 15, 1977, and prior thereto, had a minimum30of 20 years of service credit granted in the General Assembly31Retirement System.32 (Source: P.A. 87-1265.) 33 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125) HB1641 Enrolled -109- LRB9001767MWpc 1 Sec. 15-125. "Prescribed Rate of Interest; Effective 2 Rate of Interest": 3 (1) "Prescribed rate of interest": The rate of interest 4 to be used in actuarial valuations and in development of 5 actuarial tables as determined by the board on the basis of 6 the probable average effective rate of interest on a long 7 term basis. 8 (2) "Effective rate of interest": The interest rate for 9 all or any part of a fiscal year that is determined by the 10 board based on factors including the system's past and 11 expected investment experience; historical and expected 12 fluctuations in the market value of investments; the 13 desirability of minimizing volatility in the effective rate 14 of interest from year to year; the provision of reserves for 15 anticipated losses upon sales, redemptions, or other 16 disposition of investments and for variations in interest 17 experience. This amendatory Act of 1997 is a clarification 18 of existing law.The interest rate for any fiscal year19determined by the board from the investment experience of the20preceding fiscal years and the estimated investment21experience of the current fiscal year. In determining the22effective rate of interest to be credited to member23contribution accounts and other reserves, the board may24provide for reserves for anticipated losses upon sales,25redemptions or other disposition of investments and for26reserves for variations in interest experience.27 (Source: P.A. 79-1146.) 28 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2) 29 Sec. 15-136.2. Early retirement without discount. A 30 participant whose retirement annuity begins after June 1, 31 1981 and on or before September 1, 20021997and within six 32 months of the last day of employment for which retirement 33 contributions were required, may elect at the time of HB1641 Enrolled -110- LRB9001767MWpc 1 application to make a one time employee contribution to the 2 System and thereby avoid the early retirement reduction in 3 retirement annuity specified under subsection (b) of Section 4 15-136. The exercise of the election shall obligate the last 5 employer to also make a one time non-refundable contribution 6 to the System. 7 The one time employee and employer contributions shall be 8 a percentage of the retiring participant's highest full time 9 annual salary rate during the academic years which were 10 considered in determining his or her final rate of earnings, 11 or if not full time then the full time equivalent. The 12 employee contribution rate shall be 7% multiplied by the 13 lesser of the following 2 sums: (1) the number of years that 14 the participant is less than age 60; or (2) the number of 15 years that the participant's creditable service is less than 16 35 years. The employer contribution shall be at the rate of 17 20% for each year the participant is less than age 60. The 18 employer shall pay the employer contribution from the same 19 source of funds which is used in paying earnings to 20 employees. 21 Upon receipt of the application and election, the System 22 shall determine the one time employee and employer 23 contributions. The provisions of this Section shall not be 24 applicable until all the above outlined contributions have 25 been received by the System; however, the date such 26 contributions are received shall not be considered in 27 determining the effective date of retirement. 28 For persons who apply to the Board after the effective 29 date of this amendatory Act of 1993 and before July 1, 1993, 30 requesting a retirement annuity to begin no earlier than July 31 1, 1993 and no later than June 30, 1994, the employer shall 32 pay both the employee and employer contributions required 33 under this Section. 34 The number of employees retiring under this Section in HB1641 Enrolled -111- LRB9001767MWpc 1 any fiscal year may be limited at the option of the employer 2 to no less than 15% of those eligible. The right to elect 3 early retirement without discount shall be allocated among 4 those applying on the basis of seniority in the service of 5 the last employer. 6 (Source: P.A. 87-794; 87-1265.) 7 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143) 8 Sec. 15-143. Death benefits - General provisions. All 9 death benefits shall be paid as a single cash sumor10otherwise as the beneficiary and the board mutually agree,11except where an annuity is payable under Section 15-144. A 12 death benefit shall be paid as soon as practicable after 13 receipt by the board of (1) a written application by the 14 beneficiary and (2) such evidence of death and identification 15 as the board shall require. 16 (Source: P.A. 83-1440.) 17 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2) 18 Sec. 15-153.2. Disability retirement annuity. A 19 participant whose disability benefits are discontinued under 20 the provisions of clause (6)(5)of Section 15-152, is 21 entitled to a disability retirement annuity of 35% of the 22 basic compensation which was payable to the participant at 23 the time that disability began, provided at least 2 licensed 24 and practicing physicians appointed by the board certify that 25 the participant has a medically determinable physical or 26 mental impairment which would prevent him or her from 27 engaging in any substantial gainful activity, and which can 28 be expected to result in death or which has lasted or can be 29 expected to last for a continuous period of not less than 12 30 months. The terms "medically determinable physical or mental 31 impairment" and "substantial gainful activity" shall have the 32 meanings ascribed to them in the "Social Security Act", as HB1641 Enrolled -112- LRB9001767MWpc 1 now or hereafter amended, and the regulations issued 2 thereunder. 3 The disability retirement annuity payment period shall 4 begin immediately following the expiration of the disability 5 benefit payments under clause (6)(5)of Section 15-152 and 6 shall be discontinued when (1) the physical or mental 7 impairment no longer prevents the participant from engaging 8 in any substantial gainful activity, (2) the participant dies 9 or (3) the participant elects to receive a retirement annuity 10 under Sections 15-135 and 15-136. If a person's disability 11 retirement annuity is discontinued under clause (1), all 12 rights and credits accrued in the system on the date that the 13 disability retirement annuity began shall be restored, and 14 the disability retirement annuity paid shall be considered as 15 disability payments under clause (6)(5)of Section 15-152. 16 (Source: P.A. 83-1440.) 17 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157) 18 Sec. 15-157. Employee Contributions. 19 (a) Each participating employee shall make contributions 20 towards the retirement annuity of each payment of earnings 21 applicable to employment under this system on and after the 22 date of becoming a participant as follows: Prior to 23 September 1, 1949, 3 1/2% of earnings; from September 1, 1949 24 to August 31, 1955, 5%; from September 1, 1955 to August 31, 25 1969, 6%; from September 1, 1969, 6 1/2%. These 26 contributions are to be considered as normal contributions 27 for purposes of this Article. 28 Each participant who is a police officer or firefighter 29 shall make normal contributions of 8% of each payment of 30 earnings applicable to employment as a police officer or 31 firefighter under this system on or after September 1, 1981, 32 unless he or she files with the board within 60 days after 33 the effective date of this amendatory Act of 1991 or 60 days HB1641 Enrolled -113- LRB9001767MWpc 1 after the board receives notice that he or she is employed as 2 a police officer or firefighter, whichever is later, a 3 written notice waiving the retirement formula provided by 4 Rule 4 of Section 15-136. This waiver shall be irrevocable. 5 If a participant had met the conditions set forth in Section 6 15-132.1 prior to the effective date of this amendatory Act 7 of 1991 but failed to make the additional normal 8 contributions required by this paragraph, he or she may elect 9 to pay the additional contributions plus compound interest at 10 the effective rate. If such payment is received by the 11 board, the service shall be considered as police officer 12 service in calculating the retirement annuity under Rule 4 of 13 Section 15-136. 14 (b) Starting September 1, 1969, each participating 15 employee shall make additional contributions of 1/2 of 1% of 16 earnings to finance a portion of the cost of the annual 17 increases in retirement annuity provided under Section 18 15-136. 19 (c) Each participating employee shall make survivors 20 insurance contributions of 1% of earnings applicable under 21 this system on and after August 1, 1959. Contributions in 22 excess of $80 during any fiscal year beginning before August 23 31, 1969 and in excess of $120 during any fiscal year 24 thereafter until September 1, 1971 shall be considered as 25 additional contributions for purposes of this Article. 26 (d) If the board by board rule so permits and subject to 27 such conditions and limitations as may be specified in its 28 rules, a participant may make other additional contributions 29 of such percentage of earnings or amounts as the participant 30 shall elect in a written notice thereof received by the 31 board. 32 (e) That fraction of a participant's total accumulated 33 normal contributions, the numerator of which is equal to the 34 number of years of service in excess of that which is HB1641 Enrolled -114- LRB9001767MWpc 1 required to qualify for the maximum retirement annuity, and 2 the denominator of which is equal to the total service of the 3 participant, shall be considered as accumulated additional 4 contributions. The determination of the applicable maximum 5 annuity and the adjustment in contributions required by this 6 provision shall be made as of the date of the participant's 7 retirement. 8 (f) Notwithstanding the foregoing, a participating 9 employee shall not be required to make contributions under 10 this Section after the date upon which continuance of such 11 contributions would otherwise cause his or her retirement 12 annuity to exceed the maximum retirement annuity as specified 13 in clause (1) of subsection (c) of Section 15-136. 14 (Source: P.A. 86-272; 86-1488.) 15 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2) 16 Sec. 15-167.2. To issue bonds. To borrow money and, in 17 evidence of its obligation to repay the borrowing, to issue 18 bonds for the purpose of financing the cost of any project. 19 The bonds shall be authorized pursuant to a resolution to be 20 adopted by the board setting forth all details in connection 21 with the bonds. 22 The principal amount of the outstanding bonds of the 23 board shall not at any time exceed $20,000,000$10,000,000. 24 The bonds may be issued in one or more series, bear such 25 date or dates, become due at such time or times within 40 26 years, bear interest payable at such intervals and at such 27 rate or rates, which rates may be fixed or variable, be in 28 such denominations, be in such form, either coupon, 29 registered or book-entry, carry such conversion, registration 30 and exchange privileges, be subject to defeasance upon such 31 terms, have such rank or priority, be executed in such 32 manner, be payable in such medium of payment at such place or 33 places within or without the State of Illinois, make HB1641 Enrolled -115- LRB9001767MWpc 1 provision for a corporate trustee within or without the State 2 of Illinois with respect to such bonds, prescribe the rights, 3 powers and duties thereof to be exercised for the benefit of 4 the board, the system and the protection of the bondholders, 5 provide for the holding in trust, investment and use of 6 moneys, funds and accounts held in connection therewith, be 7 subject to such terms of redemption with or without premium, 8 and be sold in such manner at private or public sale and at 9 such price, all as the board shall determine. Whenever bonds 10 are sold at a price less than par, they shall be sold at such 11 price and bear interest at such rate or rates that either the 12 true interest cost (yield) or the net interest rate, as may 13 be selected by the board, received upon the sale of such 14 bonds does not exceed the maximum interest rate permitted by 15 the Bond Authorization Act, as amended at the time of the 16 making of the contract. 17 Any bonds may be refunded or advance refunded upon such 18 terms as the board may determine for such term of years, not 19 exceeding 40 years, and in such principal amount, as may be 20 deemed necessary by the board. Any redemption premium 21 payable upon the redemption of bonds may be payable from the 22 proceeds of refunding bonds issued for the purpose of 23 refunding such bonds, from any lawfully available source or 24 from both refunding bond proceeds and such other sources. 25 The bonds or refunding bonds shall be obligations of the 26 board payable from the income, interest and dividends derived 27 from investments of the board, all as may be designated in 28 the resolution of the board authorizing the issuance of the 29 bonds. The bonds shall be secured as provided in the 30 authorizing resolution, which may, notwithstanding any other 31 provision of this Code, include a specific pledge or 32 assignment of and lien on or security interest in the income, 33 interest and dividends derived from investments of the board 34 and a specific pledge or assignment of and lien on or HB1641 Enrolled -116- LRB9001767MWpc 1 security interest in any funds, reserves or accounts 2 established or provided for by the resolution of the board 3 authorizing the issuance of the bonds. The bonds or refunding 4 bonds shall not be payable from any employer or employee 5 contributions derived from State appropriations nor 6 constitute obligations or indebtedness of the State of 7 Illinois or of any municipal corporation or other body 8 politic and corporate in the State. 9 The holder or holders of any bonds issued by the board 10 may bring suits at law or proceedings in equity to compel the 11 performance and observance by the board or any of its agents 12 or employees of any contract or covenant made with the 13 holders of the bonds, to compel the board or any of its 14 agents or employees to perform any duties required to be 15 performed for the benefit of the holders of the bonds by the 16 provisions of the resolution authorizing their issuance, and 17 to enjoin the board or any of its agents or employees from 18 taking any action in conflict with any such contract or 19 covenant. 20 Notwithstanding the provisions of Section 15-188 of this 21 Code, if the board fails to pay the principal of, premium, if 22 any, or interest on any of the bonds as they become due, a 23 civil action to compel payment may be instituted in the 24 appropriate circuit court by the holder or holders of the 25 bonds upon which such default exists or by a trustee acting 26 on behalf of the holders. 27 No bonds may be issued under this Section until a copy of 28 the resolution of the board authorizing such bonds, certified 29 by the secretary of the board, has been filed with the 30 Governor of the State of Illinois. 31 "Bonds" means any instrument evidencing the obligation to 32 pay money, including without limitation bonds, notes, 33 installment or financing contracts, leases, certificates, 34 warrants, and any other evidences of indebtedness. HB1641 Enrolled -117- LRB9001767MWpc 1 "Project" means the acquisition, construction, equipping, 2 improving, expanding and furnishing of any office building 3 for the use of the system, including any real estate or 4 interest in real estate necessary or useful in connection 5 therewith. 6 "Cost of any project" includes all capital costs of the 7 project, an amount for expenses of issuing any bonds to 8 finance such project, including underwriter's discount and 9 costs of bond insurance or other credit enhancement, an 10 amount necessary to provide for a reserve fund for the 11 payment of the principal of and interest on such bonds and an 12 amount to pay interest on such bonds for a period not to 13 exceed the greater of 2 years or a period ending 6 months 14 after the estimated date of completion of the project. 15 (Source: P.A. 86-1034.) 16 (40 ILCS 5/15-168.1 new) 17 Sec. 15-168.1. Testimony and the production of records. 18 The secretary of the Board shall have the power to issue 19 subpoenas to compel the attendance of witnesses and the 20 production of documents and records, including law 21 enforcement records maintained by law enforcement agencies, 22 in conjunction with a disability claim, administrative review 23 proceedings, or felony forfeiture investigation. The fees of 24 witnesses for attendance and travel shall be the same as the 25 fees of witnesses before the circuit courts of this State and 26 shall be paid by the party seeking the subpoena. The Board 27 may apply to any circuit court in the State for an order 28 requiring compliance with a subpoena issued under this 29 Section. Subpoenas issued under this Section shall be 30 subject to applicable provisions of the Code of Civil 31 Procedure. 32 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185) HB1641 Enrolled -118- LRB9001767MWpc 1 Sec. 15-185. Annuities, etc. Exempt. The accumulated 2 employee and employer contributions shall be held in trust 3 for each participant and annuitant, and this trust shall be 4 treated as a spendthrift trust. Except as provided in this 5 Article, all cash, securities and other property of this 6 system, all annuities and other benefits payable under this 7 Article and all accumulated credits of participants and 8 annuitants in this system and the right of any person to 9 receive an annuity or other benefit under this Article, or a 10 refund of contributions, shall not be subject to judgment, 11 execution, garnishment, attachment, or other seizure by 12 process, in bankruptcy or otherwise, nor to sale, pledge, 13 mortgage or other alienation, and shall not be assignable. 14 The board, however, may deduct from the benefits, refunds and 15 credits payable to the participant, annuitant or beneficiary, 16 amounts owed by the participant or annuitant to the system. 17 No attempted sale, transfer or assignment of any benefit, 18 refund or credit shall prevent the right of the board to make 19 the deduction and offset authorized in this Section. Any 20 participant or annuitant may authorize the board to deduct 21 from disability benefits or annuities, premiums due under any 22 group hospital-surgical insurance program which is sponsored 23 or approved by any employer; however, the deductions from 24 disability benefits may not begin prior to 6 months after the 25 disability occurs. 26 A person receiving an annuity or benefit may also 27 authorize withholding from such annuity or benefit for the 28 purposes enumerated in the State Salary and Annuity 29 Withholding Act. 30 This amendatory Act of 1989 is a clarification of 31 existing law and shall be applicable to every participant and 32 annuitant without regard to whether status as an employee 33 terminates before the effective date of this amendatory Act 34 of 1989. HB1641 Enrolled -119- LRB9001767MWpc 1 (Source: P.A. 86-273; 86-1488.) 2 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190) 3 Sec. 15-190. Persons under legal disability. If a person 4 is under legal disability when any right or privilege accrues 5 to him or her under this Article, a guardian may be appointed 6 pursuant to law, and may, on behalf of such person, claim and 7 exercise any such right or privilege with the same force and 8 effect as if the person had not been under a legal disability 9 and had claimed or exercised such right or privilege. 10 If a person's application for benefits or a physician's 11 certificate on file with the board shows that the person is 12 under a legal disability, and no guardian has been appointed 13 for his or her estate, the benefits payable under this 14 Article may be paid (1) directly to the person under legal 15 disability,or(2) to either parent of the person under legal 16 disability or any adult person with whom the person under 17 legal disability may at the time be living, provided only 18 that such parent or adult person to whom any amount is to be 19 paid shall have advised the board in writing that such amount 20 will be held or used for the benefit of the person under 21 legal disability, or (3) to the trustee of any trust created 22 for the sole benefit of the person under legal disability 23 while that person is living, provided only that the trustee 24 of such trust to whom any amount is to be paid shall have 25 advised the board in writing that such amount will be held or 26 used for the benefit of the person under legal disability. 27 The system shall not be required to determine the validity of 28 the trust or any of the terms thereof. The representation of 29 the trustee that the trust meets the requirements of this 30 Section shall be conclusive as to the system. The written 31 receipt of the person under legal disability or the other 32 person who receives such payment shall be an absolute 33 discharge of the system's liability in respect of the amount HB1641 Enrolled -120- LRB9001767MWpc 1 so paid. 2 (Source: P.A. 86-1488.) 3 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191) 4 Sec. 15-191. Payment of benefits to minors. If any 5 benefits under this Article become payable to a minor, the 6 board may make payment (1) directly to the minor, (2) to any 7 person who has legally qualified and is acting as guardian of 8 the minor's person or property in any jurisdiction,or(3) to 9 either parent of the minor or to any adult person with whom 10 the minor may at the time be living, provided only that the 11 parent or other person to whom any amount is to be paid shall 12 have advised the board in writing that such amount will be 13 held or used for the benefit of the minor, or (4) to the 14 trustee of any trust created for the sole benefit of the 15 minor while that minor is living, provided only that the 16 trustee of such trust to whom any amount is to be paid shall 17 have advised the board in writing that such amount will be 18 held or used for the benefit of the minor. The system shall 19 not be required to determine the validity of the trust or any 20 of the terms thereof. The representation of the trustee that 21 the trust meets the requirements of this Section shall be 22 conclusive as to the system. The written receipt of the 23 minor, parent, trustee, or other person who receives such 24 payment shall be an absolute discharge of the system's 25 liability in respect of the amount so paid. 26 (Source: P.A. 83-1440.) 27 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140) 28 Sec. 16-140. Survivors' benefits - definitions. 29 (a) For the purpose of Sections 16-138 through 16-143.2, 30 the following terms shall have the following meanings, unless 31 the context otherwise requires: 32 (1) "Average salary": the average salary for the highest HB1641 Enrolled -121- LRB9001767MWpc 1 4 consecutive years within the last 10 years of creditable 2 service immediately preceding date of death or retirement, 3 whichever is applicable, or the average salary for the total 4 creditable service if service is less than 4 years. 5 (2) "Member": any teacher included in the membership of 6 the system. However, a teacher who becomes an annuitant of 7 the system or a teacher whose services terminate after 20 8 years of service from any cause other than retirement is 9 considered a member, subject to the conditions and 10 limitations stated in this Article. 11 (3) "Dependent beneficiary": (A) a surviving spouse of a 12 member or annuitant who was married to the member or 13 annuitant for the 12 month period immediately preceding and 14 on the date of death of such member or annuitant, except 15 where a child is born of such marriage, in which case the 16 qualifying period shall not be applicable; (A-1) a surviving 17 spouse of a member or annuitant who (i) was married to the 18 member or annuitant on the date of the member or annuitant's 19 death, (ii) was married to the member or annuitant for a 20 period of at least 12 months (but not necessarily the 12 21 months immediately preceding the member or annuitant's 22 death), (iii) first applied for a survivor's benefit before 23 AprilJanuary1, 19971994, and (iv) has not received a 24 benefit under subsection (a) of Section 16-141 or paragraph 25 (1) of Section 16-142; (B) an eligible child of a member or 26 annuitant; and (C) a dependent parent. 27 Unless otherwise designated by the member, eligibility 28 for benefits shall be in the order named, except that a 29 dependent parent shall be eligible only if there is no other 30 dependent beneficiary. Any benefit to be received by or paid 31 to a dependent beneficiary to be determined under this 32 paragraph as provided in Sections 16-141 and 16-142 may be 33 received by or paid to a trust established for such dependent 34 beneficiary if such dependent beneficiary is living at the HB1641 Enrolled -122- LRB9001767MWpc 1 time such benefit would be received by or paid to such trust. 2 (4) "Eligible child": an unmarried natural or adopted 3 child of the member or annuitant under age 18. An unmarried 4 natural or adopted child, regardless of age, who is dependent 5 by reason of a physical or mental disability, except any such 6 child receiving benefits under Article III of the Illinois 7 Public Aid Code, is eligible for so long as such physical or 8 mental disability continues. An adopted child, however, is 9 eligible only if the proceedings for adoption were finalized 10 while the child was a minor. 11 For purposes of this subsection, "disability" means an 12 inability to engage in any substantial gainful activity by 13 reason of any medically determinable physical or mental 14 impairment which can be expected to result in death or which 15 has lasted or can be expected to last for a continuous period 16 of not less than 12 months. 17 (5) "Dependent parent": a parent who was receiving at 18 least 1/2 of his or her support from a member or annuitant 19 for the 12-month period immediately preceding and on the date 20 of such member's or annuitant's death, provided however, that 21 such dependent status terminates upon a member's acceptance 22 of a refund for survivor benefit contributions as provided 23 under Section 16-142. 24 (6) "Non-dependent beneficiary": any person, 25 organization or other entity designated by the member who 26 does not qualify as a dependent beneficiary. 27 (7) "In service": the condition of a member being in 28 receipt of salary as a teacher at any time within 12 months 29 immediately before his or her death, being on leave of 30 absence for which the member, upon return to teaching, would 31 be eligible to purchase service credit under subsection 32 (b)(5) of Section 16-127, or being in receipt of a disability 33 or occupational disability benefit. This term does not 34 include any annuitant or member who previously accepted a HB1641 Enrolled -123- LRB9001767MWpc 1 refund of survivor benefit contributions under paragraph (1) 2 of Section 16-142 unless the conditions specified in 3 subsection (b) of Section 16-143.2 are met. 4 (b) The change to this Section made by this amendatory 5 Act of 1997 applies without regard to whether the deceased 6 member or annuitant was in service on or after the effective 7 date of this amendatory Act. 8 (Source: P.A. 89-430, eff. 12-15-95.) 9 (40 ILCS 5/16-163) (from Ch. 108 1/2, par. 16-163) 10 Sec. 16-163. Board created. A board of 10 members 11 constitutes a board of trustees authorized to carry out the 12 provisions of this Article and is responsible for the general 13 administration of the system. The board is known as the 14 Board of Trustees of the Teachers' Retirement System of the 15 State of Illinois. The board is composed of the 16 Superintendent of Education, ex-officio, who shall be the 17 president of the board; 4 persons, not members of the system, 18 to be appointed by the Governor, who shall hold no elected 19otherState office;and4 teachers, as defined in Section 20 16-106, elected by the contributing members; and one 21 annuitant member elected by the annuitants of the system, as 22 provided in Section 16-165. 23 (Source: P.A. 84-1028.) 24 Section 3. The Counties Code is amended by changing 25 Sections 3-7002, 3-7005, and 3-15012 as follows: 26 (55 ILCS 5/3-7002) (from Ch. 34, par. 3-7002) 27 Sec. 3-7002. Cook County Sheriff's Merit Board. There is 28 created the Cook County Sheriff's Merit Board, hereinafter 29 called the Board, consisting of 5 members appointed by the 30 Sheriff with the advice and consent of the county board, 31 except that on and after the effective date of this HB1641 Enrolled -124- LRB9001767MWpc 1 amendatory Act of 1997, the Sheriff may appoint two 2 additional members, with the advice and consent of the county 3 board, at his or her discretion. Of the members first 4 appointed, one shall serve until the third Monday in March, 5 1965 one until the third Monday in March, 1967, and one until 6 the third Monday in March, 1969. Of the 2 additional members 7 first appointed under authority of this amendatory Act of 8 1991, one shall serve until the third Monday in March, 1995, 9 and one until the third Monday in March, 1997. 10 Upon the expiration of the terms of office of those first 11 appointed (including the 2 additional members first appointed 12 under authority of this amendatory Act of 1991), their 13 respective successors shall be appointed to hold office from 14 the third Monday in March of the year of their respective 15 appointments for a term of 6 years and until their successors 16 are appointed and qualified for a like term. As additional 17 members are appointed under authority of this amendatory Act 18 of 1997, their terms shall be set to be staggered 19 consistently with the terms of the existing Board members. No 20 more than 3 members of the Board shall be affiliated with the 21 same political party, except that as additional members are 22 appointed by the Sheriff under authority of this amendatory 23 Act of 1997, the political affiliation of the Board shall be 24 such that no more than one-half of the members plus one 25 additional member may be affiliated with the same political 26 party. No, nor shall anymember shall have held or have 27 been a candidate for an elective public office within one 28 year preceding his or her appointment. 29 The Sheriff may deputize members of the Board. 30 (Source: P.A. 86-962; 86-1028; 87-534.) 31 (55 ILCS 5/3-7005) (from Ch. 34, par. 3-7005) 32 Sec. 3-7005. Meetings. As soon as practicable after the 33 members of the Board have been appointed, they shall meet, HB1641 Enrolled -125- LRB9001767MWpc 1 upon the call of the Sheriff, and shall organize by selecting 2 a chairman and a secretary. The initial chairman and 3 secretary, and their successors, shall be selected by the 4 Board from among its members for a term of 2 years or for the 5 remainder of their term of office as a member of the Board, 6 whichever is the shorter. Two members of the Board shall 7 constitute a quorum for the transaction of business, except 8 that as additional members are appointed under authority of 9 this amendatory Act of 1997, the number of members that must 10 be present to constitute a quorum shall be the number of 11 members that constitute at least 40% of the Board. The Board 12 shall hold regular quarterly meetings and such other meetings 13 as may be called by the chairman. 14 (Source: P.A. 86-962.) 15 (55 ILCS 5/3-15012) (from Ch. 34, par. 3-15012) 16 Sec. 3-15012.ExecutiveDirector. The Sheriff shall 17 appoint aan ExecutiveDirector to act as the chief 18 executive and administrative officer of the Department. The 19ExecutiveDirector shall be appointed by the Sheriff from a 20 list of 3 persons nominated by the members of the Board. He 21 or she shall serve at the pleasure of the Sheriff. If the 22ExecutiveDirector is removed, the Board shall nominate 3 23 persons, one of whom shall be selected by the Sheriff to 24 serve asExecutiveDirector. TheExecutiveDirector's 25 compensation is determined by the County Board. 26 (Source: P.A. 86-962.) 27 Section 5. The Metropolitan Water Reclamation District 28 Act is amended by changing Section 5.9 as follows: 29 (70 ILCS 2605/5.9) (from Ch. 42, par. 324s) 30 Sec. 5.9. The board of trustees shall, at any time after 31 March 1the first halfof each fiscal year, have power, by a HB1641 Enrolled -126- LRB9001767MWpc 1 two-thirds vote of all the members of such body, to authorize 2 the making of transfers within a department or between 3 departments of sums of money appropriated for one corporate 4 object or function to another corporate object or function. 5 Any such action by the board of trustees shall be entered in 6 the proceedings of the board. No appropriation for any object 7 or function shall be reduced below an amount sufficient to 8 cover all unliquidated and outstanding contracts or 9 obligations certified from or against the appropriation for 10 such purpose. 11 (Source: P.A. 86-399; 86-520; 86-1028.) 12 Section 95. The State Mandates Act is amended by adding 13 Section 8.21 as follows: 14 (30 ILCS 805/8.21 new) 15 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 16 and 8 of this Act, no reimbursement by the State is required 17 for the implementation of any mandate created by this 18 amendatory Act of 1997. 19 Section 97. No acceleration or delay. Where this Act 20 makes changes in a statute that is represented in this Act by 21 text that is not yet or no longer in effect (for example, a 22 Section represented by multiple versions), the use of that 23 text does not accelerate or delay the taking effect of (i) 24 the changes made by this Act or (ii) provisions derived from 25 any other Public Act. 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.