State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]



90_HB3133

      40 ILCS 5/8-137           from Ch. 108 1/2, par. 8-137
      40 ILCS 5/8-137.1         from Ch. 108 1/2, par. 8-137.1
      40 ILCS 5/8-138           from Ch. 108 1/2, par. 8-138
      40 ILCS 5/8-168           from Ch. 108 1/2, par. 8-168
      40 ILCS 5/8-244.1         from Ch. 108 1/2, par. 8-244.1
      30 ILCS 805/8.22 new
          Amends the Chicago Municipal Article of the Pension  Code
      to  compound  the  3% automatic annual increase in retirement
      pension.  Provides a minimum retirement annuity  for  persons
      retiring  with  at  least  5  years  of  service.  Authorizes
      withholding of labor organization dues  from  annuities,  and
      grants  labor  organizations  access to a mailing list of the
      Fund's annuitants.  Also makes technical changes.  Amends the
      State  Mandates  Act  to   require   implementation   without
      reimbursement.  Effective immediately.
                                                     LRB9010342EGfg
                                               LRB9010342EGfg
 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Sections 8-137, 8-137.1, 8-138, 8-168,  and  8-244.1  and  to
 3    amend the State Mandates Act.
 4        Be  it  enacted  by  the People of the State of Illinois,
 5    represented in the General Assembly:
 6        Section 5.  The  Illinois  Pension  Code  is  amended  by
 7    changing  Sections  8-137, 8-137.1, 8-138, 8-168, and 8-244.1
 8    as follows:
 9        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
10        Sec. 8-137.  Automatic increase in annuity.
11        (a)  An employee who  retired  or  retires  from  service
12    after  December  31,  1959 and before January 1, 1987, having
13    attained age 60 or more, shall, in January of the year  after
14    the year in which the first anniversary of retirement occurs,
15    have the amount of his then fixed and payable monthly annuity
16    increased  by  1.5%  1  1/2%, and such first fixed annuity as
17    granted at retirement shall be increased by a further 1.5%  1
18    1/2%  in  January of each year thereafter.  Beginning in with
19    January of the year 1972, such increases shall be at the rate
20    of 2%  in  lieu  of  the  aforesaid  specified  1  1/2%,  and
21    beginning  in  with  January of the year 1984, such increases
22    shall be at the rate of 3%.  Beginning in  January  of  1999,
23    such  increases  shall  be at the rate of 3% of the currently
24    payable monthly annuity, including any  increases  previously
25    granted  under this Article.  An such employee who retires on
26    annuity after December 31, 1959 and before January  1,  1987,
27    but  before  attaining  age  60, shall receive such increases
28    beginning in January of the year after the year in  which  he
29    attains age 60.
30        An  employee who retires from service on or after January
31    1, 1987 shall, upon the first annuity payment date  following
                            -2-                LRB9010342EGfg
 1    the  first anniversary of the date of retirement, or upon the
 2    first annuity payment date following attainment  of  age  60,
 3    whichever  occurs  later,  have  his  then  fixed and payable
 4    monthly annuity increased by 3%, and the such  annuity  shall
 5    be  increased  by  an  additional  3%  of  the original fixed
 6    annuity on the same date  each  year  thereafter.   Beginning
 7    January 1, 1999, such increases shall be at the rate of 3% of
 8    the   currently   payable   monthly  annuity,  including  any
 9    increases previously granted under this Article.
10        (b)  Subsection  (a)  The  foregoing  provision  is   not
11    applicable  to  an  employee  retiring  and  receiving a term
12    annuity., as herein defined, nor
13        Subsection  (a)  is  not  applicable  to  any   otherwise
14    qualified  employee  who retires before he makes the employee
15    contributions specified in subsection (c) (at the 1/2  of  1%
16    rate as provided in this Act) for this additional annuity for
17    not  less  than  the equivalent of one full year, unless the.
18    Such employee arranges at the  time  of  retirement  to  pay,
19    however, shall make arrangement to pay to the Fund an amount,
20    a balance of such 1/2 of 1% contributions, based on his final
21    salary  and,  as  will  bring  such  1/2 of 1% contributions,
22    computed without interest, that will bring his  contributions
23    under  subsection  (c)  to the equivalent of or completion of
24    one year's  contributions.
25        (c)  Beginning with January, 1960,  each  employee  shall
26    contribute  by  means  of salary deductions 0.5% 1/2 of 1% of
27    each salary payment, concurrently with and in addition to the
28    employee contributions otherwise made for annuity purposes.
29        Each such additional contribution shall be credited to an
30    account in the Prior Service Annuity  Reserve,  to  be  used,
31    together  with  city contributions, to defray the cost of the
32    specified annuity increments.  Any balance in such account At
33    the beginning of each calendar year,  the  account  shall  be
34    credited with interest at the rate of 3% per annum.
                            -3-                LRB9010342EGfg
 1        Such    additional   employee   contributions   are   not
 2    refundable, except to an employee who withdraws  and  applies
 3    for  a  refund  under this Article, and in cases where a term
 4    annuity becomes payable.  In such cases  the  employee's  his
 5    contributions   shall  be  refunded,  without  interest,  and
 6    charged to the such account  in  the  Prior  Service  Annuity
 7    Reserve.
 8    (Source: P.A. 84-1472.)
 9        (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
10        Sec.  8-137.1. Automatic increases in annuity for certain
11    heretofore  retired  participants.    A   retired   municipal
12    employee who (a) is receiving a retirement annuity based on a
13    service  credit  of  20  or  more  years  of  service  credit
14    regardless of age at retirement, or based on a service credit
15    of  15 or more years of service credit with retirement at age
16    55 or over, and  (b)  does  not  qualify  for  the  automatic
17    increases  in  annuity  provided for in Section 8-137 of this
18    Article, and (c) elects to contribute make a contribution  to
19    the  Fund,  at  a  time  and  in  a  manner prescribed by the
20    Retirement Board, of a sum equal to 1% of the amount of final
21    monthly salary times the number of full years of  service  on
22    which  the annuity was based in those cases where the annuity
23    was computed on the money purchase formula, or and  in  those
24    cases  in  which  the  annuity was computed under the minimum
25    annuity formula provisions of this Article a sum equal to  1%
26    of  the average monthly salary on which the annuity was based
27    times the such number of full years of  service,  shall  have
28    his  or  her  original  fixed  and  payable monthly amount of
29    annuity increased in January of the year following  the  year
30    in  which he attains the age of 65 years, if that such age of
31    65 years is attained in the year 1969 or later, by an  amount
32    equal  to 1.5% 1 1/2%, and by an equal additional 1.5% 1 1/2%
33    in January  of  each  year  thereafter.   Beginning  in  with
                            -4-                LRB9010342EGfg
 1    January of the year 1972, such increases shall be at the rate
 2    of  2%  in  lieu  of  the  aforesaid  specified  1  1/2%, and
 3    beginning in January of the year 1984, such  increases  shall
 4    be  at  the  rate  of 3%.  Beginning in January of 1999, such
 5    increases shall be at the rate of 3% of the currently payable
 6    monthly annuity, including any increases  previously  granted
 7    under this Article.
 8        A   Whenever   the  retired  municipal  employee  who  is
 9    receiving a retirement annuity and who has attained  the  age
10    of  66  or  more  in  1969  or before, he shall have the such
11    annuity increased in January, 1970 by an amount equal to 1.5%
12    of the originally granted annuity 1 1/2%  multiplied  by  the
13    number  of  years  that  have  elapsed equal to the number of
14    months of January elapsing from and including January of  the
15    year  immediately  following  the year he or she attained the
16    age of 65 if the employee retired at or  before  age  65,  or
17    from  and including January of the year immediately following
18    the year of retirement if the  employee  retired  at  an  age
19    greater  than  65,  to and including January, 1970, and by an
20    equal  additional  1.5%  1-1/2%  in  January  of  each   year
21    thereafter.  Beginning in with January of the year 1972, such
22    increases shall be at the rate of 2% in lieu of the aforesaid
23    specified  1 1/2%, and beginning in January of the year 1984,
24    such increases shall be at the  rate  of  3%.   Beginning  in
25    January  of  1999, these increases shall be at the rate of 3%
26    of the  currently  payable  monthly  annuity,  including  any
27    increases previously granted under this Article.
28        To  defray  the  annual cost of these such increases, the
29    annual interest income of the Fund, accruing from investments
30    held by the Fund, exclusive of gains or losses  on  sales  or
31    exchanges  of  assets  during  the  year, over and above 4% a
32    year, shall be used to the extent necessary and available  to
33    finance  the  cost  of  the  such increases for the following
34    year, and such amount shall be transferred as of the  end  of
                            -5-                LRB9010342EGfg
 1    each  year,  beginning  with the year 1969, to a Fund account
 2    designated as the  Supplementary  Payment  Reserve  from  the
 3    Investment  and  Interest Reserve set forth in Section 8-221.
 4    The sums contributed by annuitants under as provided  for  in
 5    this   Section   shall   also  be  placed  in  the  aforesaid
 6    Supplementary Payment Reserve and shall be applied  and  used
 7    for the purposes of that such Fund account, together with the
 8    aforesaid interest.
 9        If  In  the event the monies in the Supplementary Payment
10    Reserve in any year arising from: (1) the available  interest
11    income  as defined hereinbefore and accruing in the preceding
12    year over above 4%  a  year  and  (2)  the  contributions  by
13    retired  persons, as set forth hereinbefore, are insufficient
14    to make the total payments to all  persons  estimated  to  be
15    entitled  to  the annuity increases specified in this Section
16    hereinbefore, then (3) any interest earnings over 4%  a  year
17    earned  in  beginning  with the year 1969 or later that which
18    were not previously used to finance such increases  and  that
19    have been which were transferred to the Prior Service Annuity
20    Reserve  may be used to the extent necessary and available to
21    provide sufficient funds to finance such  increases  for  the
22    current  year,  and  such  sums  shall  be transferred to the
23    Supplementary Payment Reserve from the Prior Service  Annuity
24    Reserve.
25        If  In  the  event  the  total  monies  available  in the
26    Supplementary Payment Reserve from  the  preceding  indicated
27    sources  are  insufficient  to make the total payments to all
28    persons  entitled  to  such  increases  for   the   year,   a
29    proportionate  amount  computed  as  the  ratio of the monies
30    available to the total of the total payments  for  that  year
31    shall be paid to each person for that year.
32        The  Fund  shall  be  obligated  for  the  payment of the
33    increases in annuity under as provided for  in  this  Section
34    only  to  the  extent  that  the  assets for such purpose, as
                            -6-                LRB9010342EGfg
 1    specified herein, are available.
 2    (Source: P.A. 83-802.)
 3        (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
 4        Sec. 8-138.  Minimum annuities - Additional provisions.
 5        (a)  An employee who withdraws after age 65 or more  with
 6    at  least 20 years of service, for whom the amount of age and
 7    service and prior service annuity combined is less  than  the
 8    amount  stated  in  this  Section,  shall  from  the  date of
 9    withdrawal, instead of all annuities otherwise  provided,  be
10    entitled  to receive an annuity for life of $150 a year, plus
11    1 1/2% for each year of service, to and including  20  years,
12    and  1  2/3%  for  each year of service over 20 years, of his
13    highest average annual salary for  any  4  consecutive  years
14    within the last 10 years of service immediately preceding the
15    date of withdrawal.
16        An  employee  who  withdraws  after  20  or more years of
17    service, before age 65, shall be entitled to such annuity, to
18    begin not earlier than upon attained age of 55 years if under
19    such age at withdrawal, reduced by 2% for each full  year  or
20    fractional  part  thereof  that his attained age is less than
21    65, plus an additional 2% reduction for  each  full  year  or
22    fractional part thereof that his attained age when annuity is
23    to  begin  is less than 60 so that the total reduction at age
24    55 shall be 30%.
25        (b)  An employee who withdraws after July 1, 1957, at age
26    60 or over, with 20 or more years of service,  for  whom  the
27    age  and  service and prior service annuity combined, is less
28    than the amount stated in this  paragraph,  shall,  from  the
29    date of withdrawal, instead of such annuities, be entitled to
30    receive  an annuity for life equal to 1 2/3% for each year of
31    service, of the highest  average  annual  salary  for  any  5
32    consecutive  years  within  the  last  10  years  of  service
33    immediately  preceding the date of withdrawal; provided, that
                            -7-                LRB9010342EGfg
 1    in the case of any employee who withdraws on or after July 1,
 2    1971, such employee age 60 or over with 20 or more  years  of
 3    service, shall receive an annuity for life equal to 1.67% for
 4    each  of the first 10 years of service; 1.90% for each of the
 5    next 10 years of service; 2.10% for each year of  service  in
 6    excess of 20 but not exceeding 30; and 2.30% for each year of
 7    service  in excess of 30, based on the highest average annual
 8    salary for any 4 consecutive years within the last  10  years
 9    of service immediately preceding the date of withdrawal.
10        An  employee  who withdraws after July 1, 1957 and before
11    January 1, 1988, with 20 or more years of service, before age
12    60 years is entitled to annuity, to begin  not  earlier  than
13    upon  attained  age  of  55  years,  if  under  such  age  at
14    withdrawal,  as  computed  in  the  last preceding paragraph,
15    reduced 0.25% for each full month or fractional part  thereof
16    that  his  attained age when annuity is to begin is less than
17    60 if the employee was born before January 1, 1936,  or  0.5%
18    for  each  such  month  if  the employee was born on or after
19    January 1, 1936.
20        Any employee born before January 1, 1936,  who  withdraws
21    with 20 or more years of service, and any employee with 20 or
22    more  years  of  service who withdraws on or after January 1,
23    1988, may elect to receive, in lieu  of  any  other  employee
24    annuity  provided  in this Section, an annuity for life equal
25    to 1.80% for each of the first 10 years of service, 2.00% for
26    each of the next 10 years of service, 2.20% for each year  of
27    service  in  excess of 20 but not exceeding 30, and 2.40% for
28    each year of service in excess of 30, of the highest  average
29    annual  salary for any 4 consecutive years within the last 10
30    years  of  service  immediately   preceding   the   date   of
31    withdrawal, to begin not earlier than upon attained age of 55
32    years,  if  under  such  age at withdrawal, reduced 0.25% for
33    each full month or fractional part thereof that his  attained
34    age  when annuity is to begin is less than 60; except that an
                            -8-                LRB9010342EGfg
 1    employee retiring on or after January 1, 1988, at age  55  or
 2    over  but  less  than  age  60,  having  at least 35 years of
 3    service, or an employee retiring on or after July 1, 1990, at
 4    age 55 or over but less than age 60, having at least 30 years
 5    of service, or an employee retiring on or after the effective
 6    date of this amendatory Act of 1997, at age 55  or  over  but
 7    less  than age 60, having at least 25 years of service, shall
 8    not be subject to the reduction in retirement annuity because
 9    of retirement below age 60.
10        However, in the case of an employee  who  retired  on  or
11    after  January  1, 1985 but before January 1, 1988, at age 55
12    or older and with at least 35 years of service, and  who  was
13    subject  under  this  subsection  (b)  to  the  reduction  in
14    retirement  annuity  because of retirement below age 60, that
15    reduction shall cease to be effective January  1,  1991,  and
16    the retirement annuity shall be recalculated accordingly.
17        Any employee who withdraws on or after July 1, 1990, with
18    20 or more years of service, may elect to receive, in lieu of
19    any  other  employee  annuity  provided  in  this Section, an
20    annuity for life equal to 2.20% for each year of  service  of
21    the highest average annual salary for any 4 consecutive years
22    within the last 10 years of service immediately preceding the
23    date  of  withdrawal, to begin not earlier than upon attained
24    age of 55 years, if under such  age  at  withdrawal,  reduced
25    0.25% for each full month or fractional part thereof that his
26    attained age when annuity is to begin is less than 60; except
27    that an employee retiring at age 55 or over but less than age
28    60, having at least 30 years of service, shall not be subject
29    to  the reduction in retirement annuity because of retirement
30    below age 60.
31        Any employee who withdraws on or after the effective date
32    of this amendatory Act of 1997  with  20  or  more  years  of
33    service  may  elect to receive, in lieu of any other employee
34    annuity provided in this Section, an annuity for  life  equal
                            -9-                LRB9010342EGfg
 1    to  2.20%,  for  each year of service, of the highest average
 2    annual salary for any 4 consecutive years within the last  10
 3    years   of   service   immediately   preceding  the  date  of
 4    withdrawal, to begin not earlier than upon attainment of  age
 5    55 (age 50 if the employee has at least 30 years of service),
 6    reduced  0.25%  for  each  full month or remaining fractional
 7    part thereof that the employee's attained age when annuity is
 8    to begin is less than 60; except that an employee retiring at
 9    age 50 or over with at least 30 years of service or at age 55
10    or over with at least  25  years  of  service  shall  not  be
11    subject  to  the  reduction  in retirement annuity because of
12    retirement below age 60.
13        The maximum annuity payable under part  (a)  and  (b)  of
14    this  Section  shall not exceed 70% of highest average annual
15    salary in the case of an employee who withdraws prior to July
16    1, 1971, and 75% if withdrawal takes place on or  after  July
17    1,  1971.  For the purpose of the minimum annuity provided in
18    this Section $1,500 is considered the minimum  annual  salary
19    for   any  year;  and  the  maximum  annual  salary  for  the
20    computation of such annuity is $4,800  for  any  year  before
21    1953,  $6000  for  the years 1953 to 1956, inclusive, and the
22    actual annual salary, as salary is defined in  this  Article,
23    for any year thereafter.
24        To  preserve  rights  existing  on December 31, 1959, for
25    participants and  contributors  on  that  date  to  the  fund
26    created  by  the  Court and Law Department Employees' Annuity
27    Act, who became participants in  the  fund  provided  for  on
28    January  1,  1960, the maximum annual salary to be considered
29    for such persons for the years 1955 and 1956 is $7,500.
30        (c)  For an employee receiving  disability  benefit,  his
31    salary  for  annuity purposes under paragraphs (a) and (b) of
32    this  Section,  for  all  periods   of   disability   benefit
33    subsequent  to  the  year  1956,  is  the amount on which his
34    disability benefit was based.
                            -10-               LRB9010342EGfg
 1        (d)  An employee with 20 or more years of service,  whose
 2    entire   disability  benefit  credit  period  expires  before
 3    attainment of age 55 while still  disabled  for  service,  is
 4    entitled  upon  withdrawal  to  the larger of (1) the minimum
 5    annuity provided above, assuming  he  is  then  age  55,  and
 6    reducing  such  annuity to its actuarial equivalent as of his
 7    attained age on such date or (2) the  annuity  provided  from
 8    his age and service and prior service annuity credits.
 9        (e)  The  minimum  annuity provisions do not apply to any
10    former municipal employee receiving an annuity from the  fund
11    who  re-enters  service  as  a  municipal employee, unless he
12    renders at least 3 years of additional service after the date
13    of re-entry.
14        (f)  An employee in service  on  July  1,  1947,  or  who
15    became a contributor after July 1, 1947 and before attainment
16    of  age  70,  who  withdraws  after age 65, with less than 20
17    years of service for whom the annuity has  been  fixed  under
18    this  Article shall, instead of the annuity so fixed, receive
19    an annuity as follows:
20        Such amount as he could have received had the accumulated
21    amounts for  annuity  been  improved  with  interest  at  the
22    effective   rate  to  the  date  of  his  withdrawal,  or  to
23    attainment of age 70, whichever is earlier, and had the  city
24    contributed  to such earlier date for age and service annuity
25    the amount that it would have contributed had he  been  under
26    age  65,  after  the date his annuity was fixed in accordance
27    with this Article, and assuming  his  annuity  were  computed
28    from  such  accumulations as of his age on such earlier date.
29    The annuity so computed shall not exceed  the  annuity  which
30    would  be  payable under the other provisions of this Section
31    if the employee was credited with 20  years  of  service  and
32    would qualify for annuity thereunder.
33        (g)  Instead  of the annuity provided in this Article, an
34    employee having attained age 65 with at  least  15  years  of
                            -11-               LRB9010342EGfg
 1    service  who  withdraws from service on or after July 1, 1971
 2    and whose annuity computed under  other  provisions  of  this
 3    Article   is   less  than  the  amount  provided  under  this
 4    paragraph, is entitled to a minimum annuity for life equal to
 5    1% of the highest average annual salary, as salary is defined
 6    and limited in this  Section  for  any  4  consecutive  years
 7    within the last 10 years of service for each year of service,
 8    plus  the  sum  of  $25 for each year of service. The annuity
 9    shall not exceed 60% of such highest average annual salary.
10        (g-1)  Instead of any other retirement  annuity  provided
11    in  this  Article,  an  employee  who has at least 5 years of
12    service and withdraws from service on  or  after  January  1,
13    1999  may  elect  to  receive  a retirement annuity for life,
14    beginning no earlier than upon attainment of age 50, equal to
15    2.2% of final  average  salary  for  each  year  of  service,
16    subject  to a maximum of 75% of final average salary.  If the
17    annuitant is less than age 60 when  the  annuity  begins,  it
18    shall be reduced by 0.25% for each year that the annuitant is
19    less  than age 60, unless the annuitant has at least 30 years
20    of service.  For the purpose  of  calculating  this  annuity,
21    "final  average  salary"  means  the  highest  average annual
22    salary for any 4 consecutive years in the last  10  years  of
23    service.
24        (h)  The  minimum  annuities  provided under this Section
25    shall be paid in equal monthly installments.
26        (i)  The amendatory provisions of part  (b)  and  (g)  of
27    this Section shall be effective July 1, 1971 and apply in the
28    case  of  every  qualifying  employee withdrawing on or after
29    July 1, 1971.
30        (j)  The amendatory provisions of this amendatory Act  of
31    1985 (P.A. 84-23) relating to the discount of annuity because
32    of  retirement  prior  to  attainment  of  age 60, and to the
33    retirement formula, for those born before  January  1,  1936,
34    shall  apply  only  to qualifying employees withdrawing on or
                            -12-               LRB9010342EGfg
 1    after July 18, 1985.
 2        (k)  Beginning on the effective date of  this  amendatory
 3    Act  of  1997, the minimum amount of employee's annuity shall
 4    be $550 per month for  life  for  the  following  classes  of
 5    employees,   without  regard  to  the  fact  that  withdrawal
 6    occurred prior to the effective date of this  amendatory  Act
 7    of 1997:
 8             (1)  any  employee  annuitant  alive and receiving a
 9        life annuity on the effective date of this amendatory Act
10        of 1997, except a reciprocal annuity;
11             (2)  any employee annuitant alive  and  receiving  a
12        term annuity on the effective date of this amendatory Act
13        of 1997, except a reciprocal annuity;
14             (3)  any  employee  annuitant  alive and receiving a
15        reciprocal  annuity  on  the  effective  date   of   this
16        amendatory  Act of 1997, whose service in this fund is at
17        least 5 years;
18             (4)  any employee annuitant withdrawing after age 60
19        on or after the effective date of this amendatory Act  of
20        1997, with at least 10 years of service in this fund.
21        The  increases  granted  under  items (1), (2) and (3) of
22    this subsection (k) shall not be limited by any other Section
23    of this Act.
24    (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
25        (40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
26        Sec. 8-168. Refunds - Withdrawal before age  55  or  with
27    less than 10 years of service.
28        (1) 1.  An employee, without regard to length of service,
29    who  withdraws before age 55, and any employee with less than
30    10 years of service who withdraws before  age  60,  shall  be
31    entitled  to  a refund of the accumulated sums to his credit,
32    as of the date of withdrawal, for age and service annuity and
33    widow's annuity from amounts contributed  by  him,  including
                            -13-               LRB9010342EGfg
 1    interest  credited  and including amounts contributed for him
 2    for age and service and widow's annuity purposes by the  city
 3    while  receiving duty disability benefits; provided that such
 4    amounts contributed by the  city  after  December  31,  1981,
 5    while  the  employee  is  receiving duty disability benefits,
 6    shall not be credited  for  refund  purposes.   If  he  is  a
 7    present employee he shall also be entitled to a refund of the
 8    accumulations  from  any sums contributed by him, and applied
 9    to any municipal pension fund superseded by this fund.
10        (2)  2.  Upon  receipt  of  the  refund,   the   employee
11    surrenders  and  forfeits  all rights to any annuity or other
12    benefits, for himself and for any  other  persons  who  might
13    have  benefited  through  him; provided that he may have such
14    period of service  counted  in  computing  the  term  of  his
15    service if he becomes an employee before age 65, excepting as
16    limited  by  the  provisions  of  paragraph (a)(3) of Section
17    8-232 of this Article relating to the basis of computing  the
18    term of service.
19        (3)  3.  Any  such  employee shall retain such right to a
20    refund of such amounts when he shall apply for same until  he
21    re-enters  the  service  or until the amount of annuity shall
22    have been fixed as provided in this Article.  Thereafter,  no
23    such right shall exist in the case of any such employee.
24        (4) 4.  Any such municipal employee who shall have served
25    5  10  or  more  years and who shall not withdraw the amounts
26    aforesaid to which he shall have a right of refund shall have
27    a right to annuity as stated in this Article.
28        (5) 5.  Any such municipal employee who shall have served
29    less than 10 years and who shall not withdraw the amounts  to
30    which  he  shall have a right to refund shall have a right to
31    have all such amounts and all other amounts to his credit for
32    annuity purposes on  date  of  his  withdrawal  from  service
33    retained  to  his  credit  and  improved by interest while he
34    shall be out of the service at the rate of 3 1/2% or  3%  per
                            -14-               LRB9010342EGfg
 1    annum  (whichever  rate  shall  apply under the provisions of
 2    Section 8-155 of this Article) and used for annuity  purposes
 3    for  his  benefit  and the benefit of any person who may have
 4    any right to annuity through  him  because  of  his  service,
 5    according to the provisions of this Article in the event that
 6    he  shall  subsequently re-enter the service and complete the
 7    number of years of service necessary to  attain  a  right  to
 8    annuity;  but  such  sum shall be improved by interest to his
 9    credit while he shall be out of the  service  only  until  he
10    shall have become 65 years of age.
11    (Source: P.A. 82-283.)
12        (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
13        Sec. 8-244.1. Payment of annuity other than direct.
14        (a)  The  board,  at the written direction and request of
15    any annuitant,  may,  solely  as  an  accommodation  to  such
16    annuitant,  pay  the  annuity  due him to a bank, savings and
17    loan association or any other financial  institution  insured
18    by  an  agency  of the Federal Government, for deposit to his
19    account, or to a bank or trust company for deposit in a trust
20    established by him for his benefit with  such  bank,  savings
21    and loan association or trust company, and such annuitant may
22    withdraw  such  direction at any time. The board may also, in
23    the case of any disability beneficiary or annuitant for  whom
24    no  estate guardian has been appointed and who is confined in
25    a publicly owned and operated mental  institution,  pay  such
26    disability   benefit  or  annuity  due  such  person  to  the
27    Superintendent or other head of such institution or  hospital
28    for  deposit  to  such person's trust fund account maintained
29    for him by such institution or hospital, if by law such trust
30    fund accounts are authorized or recognized.
31        (b)  An annuitant may  authorize  the  withholding  of  a
32    portion  of  his  or  her  annuity for payment of dues to any
33    labor organization designated by the annuitant;  however,  no
                            -15-               LRB9010342EGfg
 1    portion  of  annuities  may be withheld under this subsection
 2    for payment to any one labor organization unless a minimum of
 3    100 annuitants authorize the  withholding,  except  that  the
 4    Board  may  allow  withholding  for  less than 100 annuitants
 5    during a probationary period of between 3 and  6  months,  as
 6    determined  by  the  Board.  The Board shall prescribe a form
 7    for the authorization of withholding, and shall provide  such
 8    forms  to employees, annuitants, and labor organizations upon
 9    request.  Amounts withheld by the Board under this subsection
10    shall be promptly paid over to the designated organizations.
11        Any such labor organization  shall  have  access  to  the
12    Fund's  mailing  list  of  annuitants, upon such terms as the
13    Board may approve.  The expenses of any mailing conducted  by
14    the   labor   organization   shall  be  borne  by  the  labor
15    organization.
16    (Source: P.A. 83-1362.)
17        Section 10.  The State Mandates Act is amended by  adding
18    Section 8.22 as follows:
19        (30 ILCS 805/8.22 new)
20        Sec.  8.22.  Exempt  mandate.  Notwithstanding Sections 6
21    and 8 of this Act, no reimbursement by the State is  required
22    for  the  implementation  of  any  mandate  created  by  this
23    amendatory Act of 1998.
24        Section  99.  Effective date.  This Act takes effect upon
25    becoming law.

[ Top ]