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90_HB3515enr
40 ILCS 5/8-230.1 from Ch. 108 1/2, par. 8-230.1
Amends the Illinois Pension Code. Makes technical
changes in a Section of the Chicago Municipal Article
relating to contributions.
LRB9011159EGfg
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1 AN ACT in relation to public employee retirement
2 benefits, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 2-121, 2-123, 2-126, 2-126.1, 3-114.3,
7 3-114.4, 3-121, 5-156, 5-157, 5-167.4, 5-168, 5-172, 5-204,
8 6-128.4, 6-165, 7-146, 7-150, 7-159, 7-173.1, 7-173.2, 8-137,
9 8-137.1, 8-138, 8-139, 8-150.1, 8-158, 8-173, 8-244.1,
10 11-134, 11-134.1, 11-134.2, 11-134.3, 11-145.1, 11-153,
11 11-169, 11-181, 11-182, 11-183, 12-133.1, 12-166, 14-104,
12 14-104.10 (as added by P.A. 90-32), 14-133.1, 15-107, 15-135,
13 15-136, 15-136.4, 15-141, 15-142, 15-145, 15-146, 15-150,
14 15-153.2, 15-153.3, 15-154, 15-157, 15-158.2, 15-158.3,
15 15-165, 15-167, 18-129, and 18-133.1 and adding Sections
16 3-114.6, 8-230.7, 12-133.5, 15-103.1, 15-103.2, 15-103.3, and
17 15-134.5 as follows:
18 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
19 Sec. 2-121. Survivor's annuity - conditions for payment.
20 (a) A survivor's annuity shall be payable to a surviving
21 spouse or eligible child (1) upon the death in service of a
22 participant with at least 2 years of service credit, or (2)
23 upon the death of an annuitant in receipt of a retirement
24 annuity, or (3) upon the death of a participant who
25 terminated service with at least 4 years of service credit.
26 The change in this subsection (a) made by this amendatory
27 Act of 1995 applies to survivors of participants who die on
28 or after December 1, 1994, without regard to whether or not
29 the participant was in service on or after the effective date
30 of this amendatory Act of 1995.
31 (b) To be eligible for the survivor's annuity, the
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1 spouse and the participant or annuitant must have been
2 married for a continuous period of at least one year
3 immediately preceding the date of death, but need not have
4 been married on the day of the participant's last termination
5 of service, regardless of whether such termination occurred
6 prior to the effective date of this amendatory Act of 1985.
7 (c) The annuity shall be payable beginning on the date
8 of a participant's death, or the first of the month following
9 an annuitant's death, if the spouse is then age 50 or over,
10 or beginning at age 50 if the spouse is then under age 50.
11 If an eligible child or children of the participant or
12 annuitant (or a child or children of the eligible spouse
13 meeting the criteria of item (1), (2), or (3) of subsection
14 (d) of this Section) also survive, and the child or children
15 are under the care of the eligible spouse, the annuity shall
16 begin as of the date of a participant's death, or the first
17 of the month following an annuitant's death, without regard
18 to the spouse's age.
19 The change to this subsection made by this amendatory Act
20 of 1998 (relating to children of an eligible spouse) applies
21 to the eligible spouse of a participant or annuitant who dies
22 on or after the effective date of this amendatory Act,
23 without regard to whether the participant or annuitant is in
24 service on or after that effective date.
25 (d) For the purposes of this Section and Section
26 2-121.1, "eligible child" means a child of the deceased
27 participant or annuitant who is at least one of the
28 following:
29 (1) unmarried and under the age of 18;
30 (2) unmarried, a full-time student, and under the
31 age of 22;
32 (3) dependent by reason of physical or mental
33 disability.
34 The inclusion of unmarried students under age 22 in the
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1 calculation of survivor's annuities by this amendatory Act of
2 1991 shall apply to all eligible students beginning January
3 1, 1992, without regard to whether the deceased participant
4 or annuitant was in service on or after the effective date of
5 this amendatory Act of 1991.
6 Adopted children shall have the same status as children
7 of the participant or annuitant, but only if the proceedings
8 for adoption are commenced at least one year prior to the
9 date of the participant's or annuitant's death.
10 (e) Remarriage of a surviving spouse prior to attainment
11 of age 55 shall disqualify the surviving spouse from the
12 receipt of a survivor's annuity.
13 (Source: P.A. 89-136, eff. 7-14-95.)
14 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
15 Sec. 2-123. Refunds.
16 (a) A participant who ceases to be a member, other than
17 an annuitant, shall, upon written request, receive a refund
18 of his or her total contributions, without interest. The
19 refund shall include the additional contributions for the
20 automatic increase in retirement annuity. By accepting the
21 refund, a participant forfeits all accrued rights and
22 benefits in the System and loses credit for all service.
23 However, if he or she again becomes a member, he or she may
24 resume status as a participant and reestablish any forfeited
25 service credit by paying to the System the full amount
26 refunded, together with interest at 4% per annum from the
27 time the refund is paid to the date the member again becomes
28 a participant.
29 A former member of the General Assembly may reestablish
30 any service credit forfeited by acceptance of a refund by
31 paying to the System on or before February 1, 1993, the full
32 amount refunded, together with interest at 4% per annum from
33 the date of payment of the refund to the date of repayment.
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1 When a member or former member owes money to the System,
2 interest at the rate of 4% per annum shall accrue and be
3 payable on such amounts owed beginning on the date of
4 termination of service as a member until the contributions
5 due have been paid in full.
6 (b) A participant who (1) has elected to cease making
7 contributions for survivor's annuity under subsection (b) of
8 Section 2-126, (2) has no eligible survivor's annuity
9 beneficiary survivor upon becoming an annuitant, or (3) who
10 terminates service with less than 8 years of service is
11 entitled to a refund of the contributions for a survivor's
12 annuity, without interest. If the such person later marries,
13 a survivor's annuity shall not be payable upon his or her
14 death, unless the amount of the such refund is repaid to the
15 System, together with interest at the rate of 4% per year
16 from the date of refund to the date of repayment.
17 (c) If at the date of retirement or death of a
18 participant who served as an officer of the General Assembly,
19 the total period of such service is less than 4 years, the
20 additional contributions made by such member on the
21 additional salary as an officer shall be refunded unless the
22 participant served as an officer for at least 2 years and has
23 contributed the amount he or she would have contributed if he
24 or she had served as an officer for 4 years as provided in
25 Section 2-126.
26 (d) Upon the termination of the last survivor's annuity
27 payable to a survivor of a deceased participant, the excess,
28 if any, of the total contributions made by the participant
29 for retirement and survivor's annuity, without interest, over
30 the total amount of retirement and survivor's annuity
31 payments received by the participant and the participant's
32 survivors shall be refunded upon request:
33 (i) if there was a surviving spouse of the deceased
34 participant who was eligible for a survivor's annuity, to
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1 the designated beneficiary of that spouse or, if the
2 designated beneficiary is deceased or there is no
3 designated beneficiary, to that spouse's estate;
4 (ii) if there was no eligible surviving spouse of
5 the deceased participant, to the designated beneficiary
6 of the deceased participant or, if the designated
7 beneficiary is deceased or there is no designated
8 beneficiary, to the deceased participant's estate.
9 (e) Upon the death of a participant, if a survivor's
10 annuity is not payable under this Article, a beneficiary
11 designated by the participant shall be entitled to a refund
12 of all contributions made by the participant. If the
13 participant has not designated a refund beneficiary, the
14 surviving spouse shall be entitled to the refund of
15 contributions; if there is no surviving spouse, the
16 contributions shall be refunded to the participant's
17 surviving children, if any, and if no children survive, the
18 refund payment shall be made to the participant's estate.
19 (Source: P.A. 90-448, eff. 8-16-97.)
20 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
21 Sec. 2-126. Contributions by participants.
22 (a) Each participant shall contribute toward the cost of
23 his or her retirement annuity a percentage of each payment of
24 salary received by him or her for service as a member as
25 follows: for service between October 31, 1947 and January 1,
26 1959, 5%; for service between January 1, 1959 and June 30,
27 1969, 6%; for service between July 1, 1969 and January 10,
28 1973, 6 1/2%; for service after January 10, 1973, 7%; for
29 service after December 31, 1981, 8 1/2%.
30 (b) Beginning August 2, 1949, each male participant, and
31 from July 1, 1971, each female participant shall contribute
32 towards the cost of the survivor's annuity 2% of salary.
33 A participant who has no eligible survivor's annuity
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1 beneficiary may elect to cease making contributions for
2 survivor's annuity under this subsection. A survivor's
3 annuity shall not be payable upon the death of a person who
4 has made this election, unless prior to that death the
5 election has been revoked and the amount of the contributions
6 that would have been paid under this subsection in the
7 absence of the election is paid to the System, together with
8 interest at the rate of 4% per year from the date the
9 contributions would have been made to the date of payment.
10 (c) Beginning July 1, 1967, each participant shall
11 contribute 1% of salary towards the cost of automatic
12 increase in annuity provided in Section 2-119.1. These
13 contributions shall be made concurrently with contributions
14 for retirement annuity purposes.
15 (d) In addition, each participant serving as an officer
16 of the General Assembly shall contribute, for the same
17 purposes and at the same rates as are required of a regular
18 participant, on each additional payment received as an
19 officer. If the participant serves as an officer for at
20 least 2 but less than 4 years, he or she shall contribute an
21 amount equal to the amount that would have been contributed
22 had the participant served as an officer for 4 years.
23 Persons who serve as officers in the 87th General Assembly
24 but cannot receive the additional payment to officers because
25 of the ban on increases in salary during their terms may
26 nonetheless make contributions based on those additional
27 payments for the purpose of having the additional payments
28 included in their highest salary for annuity purposes;
29 however, persons electing to make these additional
30 contributions must also pay an amount representing the
31 corresponding employer contributions, as calculated by the
32 System.
33 (Source: P.A. 86-273; 87-1265.)
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1 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
2 Sec. 2-126.1. Pickup of contributions.
3 (a) The State shall pick up the participant
4 contributions required under Section 2-126 for all salary
5 earned after December 31, 1981. The contributions so picked
6 up shall be treated as employer contributions in determining
7 tax treatment under the United States Internal Revenue Code.
8 The State shall pay these participant contributions from the
9 same source of funds which is used in paying salary to the
10 participant. The State may pick up these contributions by a
11 reduction in the cash salary of the participant. If
12 participant contributions are picked up they shall be treated
13 for all purposes of this Article 2 in the same manner as
14 participant contributions that were made prior to the date
15 that the pick up of contributions began.
16 (b) Subject to the requirements of federal law, a
17 participant may elect to have the employer pick up optional
18 contributions that the participant has elected to pay to the
19 System, and the contributions so picked up shall be treated
20 as employer contributions for the purposes of determining
21 federal tax treatment. The employer shall pick up the
22 contributions by a reduction in the cash salary of the
23 participant and shall pay the contributions from the same
24 fund that is used to pay earnings to the participant. The
25 election to have optional contributions picked up is
26 irrevocable and the optional contributions may not thereafter
27 be prepaid, by direct payment or otherwise. If the provision
28 authorizing the optional contribution requires payment by a
29 stated date (rather than the date of withdrawal or
30 retirement), that requirement shall be deemed to have been
31 satisfied if (i) on or before the stated date the participant
32 executes a valid irrevocable election to have the
33 contributions picked up under this subsection, and (ii) the
34 picked-up contributions are in fact paid to the System as
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1 provided in the election.
2 (Source: P.A. 90-448, eff. 8-16-97.)
3 (40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
4 Sec. 3-114.3. Heart attack suffered in performance of
5 duties. Any police officer who suffers a heart attack as a
6 result of the performance and discharge of police duty shall
7 be considered as having been injured in the performance of an
8 act of duty and shall be eligible for the benefits provided
9 under this Article for police officers injured in the
10 performance of an act of duty or, if applicable, the benefits
11 provided in Section 3-114.6.
12 (Source: P.A. 83-1440.)
13 (40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
14 Sec. 3-114.4. Return to active duty after disability. A
15 police officer who receives a disability pension under
16 Section Sections 3-114.1, or 3-114.2, or 3-114.6 for more
17 than 2 years and who returns to active duty must remain in
18 active police service for at least 5 years before becoming
19 eligible for a disability pension greater than the pension
20 paid for the prior disability.
21 (Source: P.A. 83-1440.)
22 (40 ILCS 5/3-114.6 new)
23 Sec. 3-114.6. Occupational disease disability pension.
24 (a) This Section applies only to police officers who are
25 employed by a municipality with a combined police and fire
26 department and who have regular firefighting duties in
27 addition to their law enforcement duties.
28 (b) The General Assembly finds that service in a police
29 department that also has firefighting duties requires
30 officers to perform unusual tasks in times of stress and
31 danger; that officers are subject to exposure to extreme heat
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1 or extreme cold in certain seasons while performing their
2 duties; that they are required to work in the midst of and
3 are subject to heavy smoke fumes and carcinogenic, poisonous,
4 toxic, or chemical gases from fires; and that these
5 conditions exist and arise out of or in the course of
6 employment.
7 (c) An active officer with 5 or more years of creditable
8 service who is found to be unable to perform his or her
9 duties in the department by reason of heart disease,
10 tuberculosis, or any disease of the lungs or respiratory
11 tract, resulting from service as an officer, is entitled to
12 an occupational disease disability pension during any period
13 of such disability for which he or she has no right to
14 receive salary.
15 An active officer who has completed 5 or more years of
16 service and is unable to perform his or her duties in the
17 department by reason of a disabling cancer, which develops or
18 manifests itself during a period while the officer is in the
19 service of the department, is entitled to receive an
20 occupational disease disability benefit during any period of
21 such disability for which he or she does not have a right to
22 receive salary. In order to receive this occupational
23 disease disability benefit, the cancer must be of a type that
24 may be caused by exposure to heat, radiation, or a known
25 carcinogen as defined by the International Agency for
26 Research on Cancer.
27 An officer who, after the effective date of this
28 amendatory Act of 1998, enters the service of a combined
29 police and fire department and has regular firefighting
30 duties shall be examined by one or more practicing physicians
31 appointed by the board. If the examination discloses
32 impairment of the heart, lungs, or respiratory tract, or the
33 existence of cancer, the officer shall not be entitled to an
34 occupational disease disability pension under this Section
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1 unless and until a subsequent examination reveals no such
2 impairment or cancer.
3 The occupational disease disability pension shall be 65%
4 of the salary attached to the rank held by the officer at the
5 time of his or her removal from the municipality's department
6 payroll.
7 The occupational disease disability pension is payable to
8 the officer during the period of the disability. If the
9 disability ceases before the death of the officer, the
10 disability pension payable under this Section shall also
11 cease and the officer thereafter shall receive such pension
12 benefits as are provided in accordance with other provisions
13 of this Article.
14 If an officer dies while still disabled and receiving a
15 disability pension under this Section, the disability pension
16 shall continue to be paid to the officer's survivors in the
17 sequence provided in Section 3-112.
18 (40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
19 Sec. 3-121. Marriage and remarriage. The pensions
20 provided in Sections 3-112, 3-114.1, and 3-114.2, and 3-114.6
21 shall not be paid to a child or dependent parent after
22 marriage or remarriage of the child or dependent parent
23 following the death of the police officer.
24 The pensions provided in Sections 3-112, 3-114.1 and
25 3-114.2 shall not be paid to a surviving spouse after
26 remarriage following the death of the police officer, if the
27 remarriage occurs (i) prior to January 1, 1974 or (ii) after
28 December 31, 1974 but before the effective date of this
29 amendatory Act of 1995. Remarriage on or after the effective
30 date of this amendatory Act of 1995 does not affect the
31 surviving spouse's eligibility for those pensions, regardless
32 of whether the deceased police officer was in service on or
33 after that effective date. A surviving spouse whose pension
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1 was terminated due to remarriage during 1974, and who applies
2 for reinstatement of that pension before January 1, 1990,
3 shall be entitled to have the pension reinstated beginning on
4 January 1, 1990.
5 (Source: P.A. 89-408, eff. 11-15-95.)
6 (40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
7 Sec. 5-156. Proof of duty or ordinary disability -
8 Physical examinations. Proof of duty, occupational disease,
9 or ordinary disability shall be furnished to the board by at
10 least one licensed and practicing physician appointed by the
11 board. In cases where the board requests an applicant to get
12 a second opinion, the applicant must select a physician from
13 a list of qualified licensed and practicing physicians who
14 specialize in the various medical areas related to duty
15 injuries and illnesses, as established by the board. The
16 board may require other evidence of disability. A disabled
17 policeman who receives a duty, occupational disease, or
18 ordinary disability benefit shall be examined at least once a
19 year by one or more physicians appointed by the board. When
20 the disability ceases, the board shall discontinue payment of
21 the benefit, and the policeman shall be returned to active
22 service.
23 (Source: P.A. 86-272.)
24 (40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
25 Sec. 5-157. Administration of disability benefits.
26 If a policeman who is granted duty or ordinary disability
27 benefit refuses to submit to examination by a physician
28 appointed by the board, he shall have no further right to
29 receive the benefit.
30 A policeman who has withdrawn from service while disabled
31 and entered upon annuity prior to the effective date, and who
32 has thereafter been reinstated as a policeman, shall have no
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1 right to ordinary disability benefit in excess of the amount
2 previously received unless he serves at least one year after
3 such reinstatement. This provision shall apply throughout
4 the duration of any disability incurred by the policeman
5 within one year after his reinstatement resulting from any
6 cause other than injury incurred in the performance of an act
7 of duty.
8 A policeman who assumes regular employment for
9 compensation, while in receipt of ordinary or duty disability
10 benefits, shall not be entitled to receive any amount of such
11 disability benefits which, when added to his compensation for
12 such employment during disability, would exceed 150% of the
13 rate of salary which would be paid to him if he were working
14 in his regularly appointed civil service position as a
15 policeman; or, from and after January 1, 1970, the rate of
16 salary on which his disability benefit is based. The changes
17 made to this Section by this amendatory Act of 1998 are not
18 limited to persons in service on or after the effective date
19 of this amendatory Act.
20 Disability benefit shall not be paid for any part of time
21 for which a disabled policeman shall receive any part of his
22 salary.
23 Except as herein otherwise provided, disability benefit
24 shall not be paid for any disability based upon or caused by
25 any mental or physical defect which the policeman had at the
26 time he entered the police service.
27 Disability benefit shall not be allowed to any policeman
28 who re-enters the public service in any capacity where his
29 salary is payable in whole or in part by taxes levied upon
30 taxable property in the city in which this Article is in
31 effect, or out of special revenues of any department of the
32 city. The disability benefit shall be suspended during the
33 period he is in the public service for compensation, and
34 shall be resumed when he withdraws from such service.
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1 Any disability benefit paid in violation of this Section
2 or of this Article shall be construed to have been paid in
3 error, and the amounts so paid shall be charged as a debit in
4 the account of any person to whom the same was paid and shall
5 be deducted from any moneys thereafter payable to such person
6 out of this fund, or to the widow, heirs or estate of such
7 person.
8 (Source: P.A. 76-847.)
9 (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
10 Sec. 5-167.4. Widow annuitant minimum annuity.
11 (a) Notwithstanding any other provision of this Article,
12 beginning January 1, 1996, the minimum amount of widow's
13 annuity payable to any person who is entitled to receive a
14 widow's annuity under this Article is $700 per month, without
15 regard to whether the deceased policeman is in service on or
16 after the effective date of this amendatory Act of 1995.
17 Notwithstanding any other provision of this Article,
18 beginning January 1, 1999, the minimum amount of widow's
19 annuity payable to any person who is entitled to receive a
20 widow's annuity under this Article is $800 per month, without
21 regard to whether the deceased policeman is in service on or
22 after the effective date of this amendatory Act of 1998.
23 (b) Effective January 1, 1994, the minimum amount of
24 widow's annuity shall be $700 per month for the following
25 classes of widows, without regard to whether the deceased
26 policeman is in service on or after the effective date of
27 this amendatory Act of 1993: (1) the widow of a policeman who
28 dies in service with at least 10 years of service credit, or
29 who dies in service after June 30, 1981; and (2) the widow of
30 a policeman who withdraws from service with 20 or more years
31 of service credit and does not withdraw a refund, provided
32 that the widow is married to the policeman before he
33 withdraws from service.
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1 (c) The city, in addition to the contributions otherwise
2 made by it under the other provisions of this Article, shall
3 make such contributions as are necessary for the minimum
4 widow's annuities provided under this Section in the manner
5 prescribed in Section 5-175.
6 (Source: P.A. 89-12, eff. 4-20-95.)
7 (40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
8 Sec. 5-168. Financing.
9 (a) Except as expressly provided in this Section, the
10 city shall levy a tax annually upon all taxable property
11 therein for the purpose of providing revenue for the fund.
12 The tax shall be at a rate that will produce a sum which,
13 when added to the amounts deducted from the policemen's
14 salaries and the amounts deposited in accordance with
15 subsection (g), is sufficient for the purposes of the fund.
16 For the years 1968 and 1969, the city council shall levy
17 a tax annually at a rate on the dollar of the assessed
18 valuation of all taxable property that will produce, when
19 extended, not to exceed $9,700,000. Beginning with the year
20 1970 and each year thereafter the city council shall levy a
21 tax annually at a rate on the dollar of the assessed
22 valuation of all taxable property that will produce when
23 extended an amount not to exceed the total amount of
24 contributions by the policemen to the Fund made in the
25 calendar year 2 years before the year for which the
26 applicable annual tax is levied, multiplied by 1.40 for the
27 tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
28 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
29 through 1981; by 2.00 for 1982 and for each year thereafter.
30 (b) The tax shall be levied and collected in like manner
31 with the general taxes of the city, and is in addition to all
32 other taxes which the city is now or may hereafter be
33 authorized to levy upon all taxable property therein, and is
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1 exclusive of and in addition to the amount of tax the city is
2 now or may hereafter be authorized to levy for general
3 purposes under any law which may limit the amount of tax
4 which the city may levy for general purposes. The county
5 clerk of the county in which the city is located, in reducing
6 tax levies under Section 8-3-1 of the Illinois Municipal
7 Code, shall not consider the tax herein authorized as a part
8 of the general tax levy for city purposes, and shall not
9 include the tax in any limitation of the percent of the
10 assessed valuation upon which taxes are required to be
11 extended for the city.
12 (c) On or before January 10 of each year, the board
13 shall notify the city council of the requirement that the tax
14 herein authorized be levied by the city council for that
15 current year. The board shall compute the amounts necessary
16 for the purposes of this fund to be credited to the reserves
17 established and maintained within the fund; shall make an
18 annual determination of the amount of the required city
19 contributions; and shall certify the results thereof to the
20 city council.
21 As soon as any revenue derived from the tax is collected
22 it shall be paid to the city treasurer of the city and shall
23 be held by him for the benefit of the fund in accordance with
24 this Article.
25 (d) If the funds available are insufficient during any
26 year to meet the requirements of this Article, the city may
27 issue tax anticipation warrants against the tax levy for the
28 current fiscal year.
29 (e) The various sums, including interest, to be
30 contributed by the city, shall be taken from the revenue
31 derived from such tax or otherwise as expressly provided in
32 this Section. Any moneys of the city derived from any source
33 other than the tax herein authorized shall not be used for
34 any purpose of the fund nor the cost of administration
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1 thereof, unless applied to make the deposit expressly
2 authorized in this Section or the additional city
3 contributions required under subsection (h).
4 (f) If it is not possible or practicable for the city to
5 make its contributions at the time that salary deductions are
6 made, the city shall make such contributions as soon as
7 possible thereafter, with interest thereon to the time it is
8 made.
9 (g) In lieu of levying all or a portion of the tax
10 required under this Section in any year, the city may deposit
11 with the city treasurer no later than March 1 of that year
12 for the benefit of the fund, to be held in accordance with
13 this Article, an amount that, together with the taxes levied
14 under this Section for that year, is not less than the amount
15 of the city contributions for that year as certified by the
16 board to the city council. The deposit may be derived from
17 any source legally available for that purpose, including, but
18 not limited to, the proceeds of city borrowings. The making
19 of a deposit shall satisfy fully the requirements of this
20 Section for that year to the extent of the amounts so
21 deposited. Amounts deposited under this subsection may be
22 used by the fund for any of the purposes for which the
23 proceeds of the tax levied under this Section may be used,
24 including the payment of any amount that is otherwise
25 required by this Article to be paid from the proceeds of that
26 tax.
27 (h) In addition to the contributions required under the
28 other provisions of this Article, by November 1 of the
29 following specified years, the city shall deposit with the
30 city treasurer for the benefit of the fund, to be held and
31 used in accordance with this Article, the following specified
32 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
33 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
34 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
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1 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
2 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
3 in 2013.
4 The additional city contributions required under this
5 subsection are intended to decrease the unfunded liability of
6 the fund and shall not decrease the amount of the city
7 contributions required under the other provisions of this
8 Article. The additional city contributions made under this
9 subsection may be used by the fund for any of its lawful
10 purposes.
11 (Source: P.A. 89-12, eff. 4-20-95.)
12 (40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
13 Sec. 5-172. Contributions by city for duty and
14 occupational disease disability benefits and supplemental
15 annuity. In lieu of salary deductions for annuity purposes,
16 the city shall contribute the required amounts for any period
17 during which a policeman receives a duty disability benefit
18 or occupational disease disability benefit. The
19 contributions shall be credited to the disabled policeman and
20 shall be regarded for all purposes hereof as sums deducted
21 from his salary.
22 The city shall also contribute all amounts ordinarily
23 contributed by it for annuity purposes for the policeman as
24 though he were in active discharge of his duties during such
25 disability.
26 To provide supplemental annuity, the city shall
27 contribute such equal sums annually, from the date of the
28 policeman's death, which if improved by interest will be
29 sufficient, when payment of compensation annuity ceases, to
30 provide supplemental annuity to the widow for life.
31 (Source: P.A. 81-1536.)
32 (40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
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1 Sec. 5-204. Duty disability reserve. Amounts contributed
2 by the city for duty disability benefit, occupational disease
3 disability benefit, child's disability benefit, and
4 compensation annuity shall be credited to this reserve, and
5 all such benefits and annuities shall be charged to it.
6 (Source: Laws 1963, p. 161.)
7 (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
8 Sec. 6-128.4. Minimum widow's annuities.
9 (a) Notwithstanding any other provision of this Article,
10 beginning January 1, 1996, the minimum amount of widow's
11 annuity payable to any person who is entitled to receive a
12 widow's annuity under this Article is $700 per month, without
13 regard to whether the deceased fireman is in service on or
14 after the effective date of this amendatory Act of 1995.
15 (b) Notwithstanding Section 6-128.3, beginning January
16 1, 1994, the minimum widow's annuity under this Article shall
17 be $700 per month for (1) all persons receiving widow's
18 annuities on that date who are survivors of employees who
19 retired at age 50 or over with at least 20 years of service,
20 and (2) persons who become eligible for widow's annuities and
21 are survivors of employees who retired at age 50 or over with
22 at least 20 years of service.
23 (c) Notwithstanding Section 6-128.3, beginning January
24 1, 1999, the minimum widow's annuity under this Article shall
25 be $800 per month for (1) all persons receiving widow's
26 annuities on that date who are survivors of employees who
27 retired at age 50 or over with at least 20 years of service,
28 and (2) persons who become eligible for widow's annuities and
29 are survivors of employees who retired at age 50 or over with
30 at least 20 years of service.
31 (Source: P.A. 89-136, eff. 7-14-95.)
32 (40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
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1 Sec. 6-165. Financing; tax.
2 (a) Except as expressly provided in this Section, each
3 city shall levy a tax annually upon all taxable property
4 therein for the purpose of providing revenue for the fund.
5 For the years prior to the year 1960, the tax rate shall be
6 as provided for in the "Firemen's Annuity and Benefit Fund of
7 the Illinois Municipal Code". The tax, from and after
8 January 1, 1968 to and including the year 1971, shall not
9 exceed .0863% of the value, as equalized or assessed by the
10 Department of Revenue, of all taxable property in the city.
11 Beginning with the year 1972 and each year thereafter the
12 city shall levy a tax annually at a rate on the dollar of the
13 value, as equalized or assessed by the Department of Revenue
14 of all taxable property within such city that will produce,
15 when extended, not to exceed an amount equal to the total
16 amount of contributions by the employees to the fund made in
17 the calendar year 2 years prior to the year for which the
18 annual applicable tax is levied, multiplied by 2.23 through
19 the calendar year 1981, and by 2.26 for the year 1982 and for
20 each year thereafter.
21 To provide revenue for the ordinary death benefit
22 established by Section 6-150 of this Article, in addition to
23 the contributions by the firemen for this purpose, the city
24 council shall for the year 1962 and each year thereafter
25 annually levy a tax, which shall be in addition to and
26 exclusive of the taxes authorized to be levied under the
27 foregoing provisions of this Section, upon all taxable
28 property in the city, as equalized or assessed by the
29 Department of Revenue, at such rate per cent of the value of
30 such property as shall be sufficient to produce for each year
31 the sum of $142,000.
32 The amounts produced by the taxes levied annually,
33 together with the deposit expressly authorized in this
34 Section, shall be sufficient, when added to the amounts
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1 deducted from the salaries of firemen and applied to the
2 fund, to provide for the purposes of the fund.
3 (b) The taxes shall be levied and collected in like
4 manner with the general taxes of the city, and shall be in
5 addition to all other taxes which the city may levy upon all
6 taxable property therein and shall be exclusive of and in
7 addition to the amount of tax the city may levy for general
8 purposes under Section 8-3-1 of the Illinois Municipal Code,
9 approved May 29, 1961, as amended, or under any other law or
10 laws which may limit the amount of tax which the city may
11 levy for general purposes.
12 (c) The amounts of the taxes to be levied in each year
13 shall be certified to the city council by the board.
14 (d) As soon as any revenue derived from such taxes is
15 collected, it shall be paid to the city treasurer and held
16 for the benefit of the fund, and all such revenue shall be
17 paid into the fund in accordance with the provisions of this
18 Article.
19 (e) If the funds available are insufficient during any
20 year to meet the requirements of this Article, the city may
21 issue tax anticipation warrants, against the tax levies
22 herein authorized for the current fiscal year.
23 (f) The various sums, hereinafter stated, including
24 interest, to be contributed by the city, shall be taken from
25 the revenue derived from the taxes or otherwise as expressly
26 provided in this Section. Except for defraying the cost of
27 administration of the fund during the calendar year in which
28 a city first attains a population of 500,000 and comes under
29 the provisions of this Article and the first calendar year
30 thereafter, any money of the city derived from any source
31 other than these taxes or the sale of tax anticipation
32 warrants shall not be used to provide revenue for the fund,
33 nor to pay any part of the cost of administration thereof,
34 unless applied to make the deposit expressly authorized in
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1 this Section or the additional city contributions required
2 under subsection (h).
3 (g) In lieu of levying all or a portion of the tax
4 required under this Section in any year, the city may deposit
5 with the city treasurer no later than March 1 of that year
6 for the benefit of the fund, to be held in accordance with
7 this Article, an amount that, together with the taxes levied
8 under this Section for that year, is not less than the amount
9 of the city contributions for that year as certified by the
10 board to the city council. The deposit may be derived from
11 any source legally available for that purpose, including, but
12 not limited to, the proceeds of city borrowings. The making
13 of a deposit shall satisfy fully the requirements of this
14 Section for that year to the extent of the amounts so
15 deposited. Amounts deposited under this subsection may be
16 used by the fund for any of the purposes for which the
17 proceeds of the taxes levied under this Section may be used,
18 including the payment of any amount that is otherwise
19 required by this Article to be paid from the proceeds of
20 those taxes.
21 (h) In addition to the contributions required under the
22 other provisions of this Article, by November 1 of the
23 following specified years, the city shall deposit with the
24 city treasurer for the benefit of the fund, to be held and
25 used in accordance with this Article, the following specified
26 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
27 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
28 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
29 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
30 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
31 in 2013.
32 The additional city contributions required under this
33 subsection are intended to decrease the unfunded liability of
34 the fund and shall not decrease the amount of the city
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1 contributions required under the other provisions of this
2 Article. The additional city contributions made under this
3 subsection may be used by the fund for any of its lawful
4 purposes.
5 (Source: P.A. 89-136, eff. 7-14-95.)
6 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
7 Sec. 7-146. Temporary disability benefits - Eligibility.
8 Temporary disability benefits shall be payable to
9 participating employees as hereinafter provided.
10 (a) The participating employee shall be considered
11 temporarily disabled if:
12 1. He is unable to perform the duties of any position
13 which might reasonably be assigned to him by his employing
14 municipality or instrumentality thereof or participating
15 instrumentality due to mental or physical disability caused
16 by bodily injury or disease, other than as a result of
17 self-inflicted injury or addiction to narcotic drugs;
18 2. The Board has received written certifications from at
19 least 1 licensed and practicing physician and the governing
20 body of the employing municipality or instrumentality thereof
21 or participating instrumentality stating that the employee
22 meets the conditions set forth in subparagraph 1 of this
23 paragraph (a).
24 (b) A temporary disability benefit shall be payable to a
25 temporarily disabled employee provided:
26 1. He:
27 (i) has at least one 1 year of service immediately
28 preceding at the date the temporary disability was incurred
29 and has made contributions to the fund for at least the
30 number of months of service normally required in his position
31 during a 12-month period, or has at least 5 years of service
32 credit, the last year of which immediately precedes such
33 date; or
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1 (ii) had qualified under clause (i) above, but had an
2 interruption in service with the same participating
3 municipality or participating instrumentality of not more
4 than 3 months in the 12 months preceding the date the
5 temporary disability was incurred and was not paid a
6 separation benefit; or
7 (iii) had qualified under clause (i) above, but had an
8 interruption after 20 or more years of creditable service,
9 was not paid a separation benefit, and returned to service
10 prior to the date the disability was incurred.
11 Item (iii) of this subdivision shall apply to all
12 employees whose disabilities were incurred on or after July
13 1, 1985, and any such employee who becomes eligible for a
14 disability benefit under item (iii) shall be entitled to
15 receive a lump sum payment of any accumulated disability
16 benefits which may accrue from the date the disability was
17 incurred until the effective date of this amendatory Act of
18 1987.
19 Periods of qualified leave granted in compliance with the
20 federal Family and Medical Leave Act shall be ignored for
21 purposes of determining the number of consecutive months of
22 employment under this subdivision (b)1.
23 2. He has been temporarily disabled for at least 30
24 days, except where a former temporary or permanent and total
25 disability has reoccurred within 6 months after the employee
26 has returned to service.
27 3. He is receiving no earnings from a participating
28 municipality or instrumentality thereof or participating
29 instrumentality, except as allowed under subsection (f) of
30 Section 7-152.
31 4. He has not refused to submit to a reasonable physical
32 examination by a physician appointed by the Board.
33 5. His disability is not the result of a mental or
34 physical condition which existed on the earliest date of
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1 service from which he has uninterrupted service, including
2 prior service, at the date of his disability, provided that
3 this limitation shall not be applicable to a participating
4 employee who: (i) on the date of disability has 5 years of
5 creditable service, exclusive of creditable service for
6 periods of disability; or (ii) received no medical treatment
7 for the condition for the 3 years immediately prior to such
8 earliest date of service.
9 6. He is not separated from the service of the
10 participating municipality or instrumentality thereof or
11 participating instrumentality which employed him on the date
12 his temporary disability was incurred; for the purposes of
13 payment of temporary disability benefits, a participating
14 employee, whose employment relationship is terminated by his
15 employing municipality, shall be deemed not to be separated
16 from the service of his employing municipality or
17 participating instrumentality if he continues disabled by the
18 same condition and so long as he is otherwise entitled to
19 such disability benefit.
20 (Source: P.A. 86-272; 87-740.)
21 (40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
22 Sec. 7-150. Total and permanent disability benefits -
23 Eligibility. Total and permanent disability benefits shall be
24 payable to participating employees as hereinafter provided,
25 including those employees receiving disability benefit on
26 July 1, 1962.
27 (a) A participating employee shall be considered totally
28 and permanently disabled if:
29 1. He is unable to engage in any gainful activity
30 because of any medically determinable physical or mental
31 impairment which can be expected to result in death or be of
32 a long continued and indefinite duration, other than as a
33 result of self-inflicted injury or addiction to narcotic
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1 drugs;
2 2. The Board has received a written certification by at
3 least 1 licensed and practicing physician stating that the
4 employee meets the qualifications of subparagraph 1 of this
5 paragraph (a).
6 (b) A totally and permanently disabled employee is
7 entitled to a permanent disability benefit provided:
8 1. He has exhausted his temporary disability benefits.
9 2. He:
10 (i) has at least one year of service immediately
11 preceding the date the disability was incurred and has made
12 contributions to the fund for at least the number of months
13 of service normally required in his position during a 12
14 month period, or has at least 5 years of service credit, the
15 last year of which immediately preceded the date the
16 disability was incurred; or
17 (ii) had qualified under clause (i) above, but had an
18 interruption in service with the same participating
19 municipality or participating instrumentality of not more
20 than 3 months in the 12 months preceding the date the
21 temporary disability was incurred and was not paid a
22 separation benefit; or
23 (iii) had qualified under clause (i) above, but had an
24 interruption after 20 or more years of creditable service,
25 was not paid a separation benefit, and returned to service
26 prior to the date the disability was incurred.
27 Item (iii) of this subdivision shall apply to all
28 employees whose disabilities were incurred on or after July
29 1, 1985, and any such employee who becomes eligible for a
30 disability benefit under item (iii) shall be entitled to
31 receive a lump sum payment of any accumulated disability
32 benefits which may accrue from the date the disability was
33 incurred until the effective date of this amendatory Act of
34 1987.
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1 Periods of qualified leave granted in compliance with the
2 federal Family and Medical Leave Act shall be ignored for
3 purposes of determining the number of consecutive months of
4 employment under this subdivision (b)2.
5 3. He is receiving no earnings from a participating
6 municipality or instrumentality thereof or participating
7 instrumentality, except as allowed under subsection (f) of
8 Section 7-152.
9 4. He has not refused to submit to a reasonable physical
10 examination by a physician appointed by the Board.
11 5. His disability is not the result of a mental or
12 physical condition which existed on the earliest date of
13 service from which he has uninterrupted service, including
14 prior service, at the date of his disability, provided that
15 this limitation shall not be applicable to a participating
16 employee who, without receiving a disability benefit,
17 receives 5 years of creditable service.
18 6. He is not separated from the service of his employing
19 participating municipality or instrumentality thereof or
20 participating instrumentality on the date his temporary
21 disability was incurred; for the purposes of payment of total
22 and permanent disability benefits, a participating employee,
23 whose employment relationship is terminated by his employing
24 municipality, shall be deemed not to be separated from the
25 service of his employing municipality or participating
26 instrumentality if he continues disabled by the same
27 condition and so long as he is otherwise entitled to such
28 disability benefit.
29 7. He has not refused to apply for a disability benefit
30 under the Federal Social Security Act at the request of the
31 Board.
32 (c) A participating employee shall remain eligible and
33 may make application for a total and permanent disability
34 benefit within 90 days after the termination of his temporary
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1 disability benefits or within such longer period terminating
2 at the end of the period during which his employing
3 municipality is prevented from employing him by reason of any
4 statutory prohibition.
5 (Source: P.A. 86-272; 87-740.)
6 (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
7 Sec. 7-159. Surviving spouse annuity - refund of survivor
8 credits.
9 (a) Any employee annuitant who (1) upon the date a
10 retirement annuity begins is not then married, or (2) is
11 married to a person who would not qualify for surviving
12 spouse annuity if the person died on such date, is entitled
13 to a refund of the survivor credits including interest
14 accumulated on the date the annuity begins, excluding
15 survivor credits and interest thereon credited during periods
16 of disability, and no spouse shall have a right to any
17 surviving spouse annuity from this Fund. If the employee
18 annuitant reenters service and upon subsequent retirement has
19 a spouse who would qualify for a surviving spouse annuity,
20 the employee annuitant may pay the fund the amount of the
21 refund plus interest at the effective rate at the date of
22 payment. The payment shall qualify the spouse for a
23 surviving spouse annuity and the amount paid shall be
24 considered as survivor contributions.
25 (b) Instead of a refund under subsection (a), the
26 retiring employee may elect to convert the amount of the
27 refund into an annuity, payable separately from the
28 retirement annuity. If the annuitant dies before the
29 guaranteed amount has been distributed, the remainder shall
30 be paid in a lump sum to the designated beneficiary of the
31 annuitant. The Board shall adopt any rules necessary for the
32 implementation of this subsection.
33 (Source: P. A. 77-2121.)
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1 (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
2 Sec. 7-173.1. Additional contribution by sheriff's law
3 enforcement employees.
4 (a) Each sheriff's law enforcement employee shall make
5 an additional contribution of 1% of earnings, which shall be
6 considered as normal contributions. For earnings on or after
7 July 1, 1988, the additional contribution shall be 2% of
8 earnings.
9 This additional contribution shall be payable for
10 retroactive service periods which the employee elects to
11 establish and to periods of authorized leave of absence.
12 (b) If the employee is awarded a retirement annuity
13 under Section 7-142 and not under Section 7-142.1, then the
14 additional contribution required under this Section shall be
15 refunded with interest or paid as provided in subsection (c).
16 If the employee returns to a participating status as a
17 sheriff's law enforcement employee, the employee may repay
18 the amount refunded with interest and upon subsequent
19 retirement be entitled to a recomputation of the retirement
20 annuity under Section 7-142.1 if the total service as a
21 sheriff's law enforcement employee meets the requirements of
22 that Section.
23 (c) Instead of a refund under subsection (b), the
24 retiring employee may elect to convert the amount of the
25 refund into an annuity, payable separately from the
26 retirement annuity. If the annuitant dies before the
27 guaranteed amount has been distributed, the remainder shall
28 be paid in a lump sum to the designated beneficiary of the
29 annuitant. The Board shall adopt any rules necessary for the
30 implementation of this subsection.
31 (Source: P.A. 85-941.)
32 (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
33 Sec. 7-173.2. Pickup of employee contributions.
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1 (a) Until July 1, 1984, each participating municipality
2 and each participating instrumentality may elect, for all of
3 its employees, to pick up the employee contributions required
4 by subparagraphs 1 and 3 of subsection (a) of Section 7-173
5 and, in the case of sheriff's law enforcement employees,
6 required by Section 7-173.1. The pick up may be for employee
7 contributions on earnings received by employees after
8 December 31, 1981 and shall be applicable to the
9 contributions on total earnings paid in any month. The
10 decision to pick up contributions shall be made by the
11 governing body.
12 Beginning July 1, 1984, the pick up of employee
13 contributions shall cease to be optional. Each participating
14 municipality and participating instrumentality shall pick up
15 the employee contributions required by subparagraphs 1 and 3
16 of subsection (a) of Section 7-173 and, in the case of
17 sheriff's law enforcement employees, contributions required
18 by Section 7-173.1, for all compensation earned after such
19 date.
20 (b) Contributions that are picked up shall be treated as
21 employer contributions in determining tax treatment under the
22 United States Internal Revenue Code. The employee
23 contribution shall be paid from the same source of funds as
24 is used in payment of earnings to the employee and may not be
25 paid from funds raised by the tax levy authorized by Section
26 7-171. The contributions shall be picked up by a reduction
27 in earnings payment to employees. Employee contributions
28 that are picked up shall be considered as earnings under
29 Section 7-114. The pick up shall not apply to contributions
30 made for additional contributions under subsection (a) 2 of
31 Section 7-173, authorized leave of absence under subsection
32 (a)4 of Section 7-139, out-of-state service under subsection
33 (a) 6 of Section 7-139, retroactive service under subsection
34 (a) 7 of Section 7-139 or repayments of separation of
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1 benefits under Section 7-109. If a participating
2 municipality or participating instrumentality fails to report
3 participating employee earnings which should have been
4 reported to the fund and pays the employee the full amount of
5 earnings including employee contributions which should have
6 been picked up and forwarded to the fund, then the employee
7 shall make payment of the employee contributions to the fund
8 on behalf of employer and such contributions shall be
9 considered as picked up contributions if paid in the year the
10 earnings were received, or by January 31st of the following
11 year, and are reflected as picked up on reports to the
12 Internal Revenue Service. If they cannot be so reflected, or
13 if received after that date, they shall not be treated as
14 picked up contributions. Picked up employee contributions
15 shall be considered as employee contributions in computing
16 benefits paid under this Article 7.
17 (c) Subject to the requirements of federal law, an
18 employee may elect to have the employer pick up optional
19 contributions that the employee has elected to pay to the
20 Fund, and the contributions so picked up shall be treated as
21 employer contributions for the purposes of determining
22 federal tax treatment. The employer shall pick up the
23 contributions by a reduction in the cash salary of the
24 employee and shall pay the contributions from the same source
25 of funds that is used to pay earnings to the employee. The
26 employee's election to have the optional contributions picked
27 up is irrevocable and the optional contributions may not
28 thereafter be prepaid, by direct payment or otherwise.
29 (Source: P.A. 84-812.)
30 (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
31 Sec. 8-137. Automatic increase in annuity.
32 (a) An employee who retired or retires from service
33 after December 31, 1959 and before January 1, 1987, having
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1 attained age 60 or more, shall, in January of the year after
2 the year in which the first anniversary of retirement occurs,
3 have the amount of his then fixed and payable monthly annuity
4 increased by 1 1/2%, and such first fixed annuity as granted
5 at retirement increased by a further 1 1/2% in January of
6 each year thereafter. Beginning with January of the year
7 1972, such increases shall be at the rate of 2% in lieu of
8 the aforesaid specified 1 1/2%, and beginning with January of
9 the year 1984 such increases shall be at the rate of 3%.
10 Beginning in January of 1999, such increases shall be at the
11 rate of 3% of the currently payable monthly annuity,
12 including any increases previously granted under this
13 Article. An such employee who retires on annuity after
14 December 31, 1959 and before January 1, 1987, but before age
15 60, shall receive such increases beginning in January of the
16 year after the year in which he attains age 60.
17 An employee who retires from service on or after January
18 1, 1987 shall, upon the first annuity payment date following
19 the first anniversary of the date of retirement, or upon the
20 first annuity payment date following attainment of age 60,
21 whichever occurs later, have his then fixed and payable
22 monthly annuity increased by 3%, and such annuity shall be
23 increased by an additional 3% of the original fixed annuity
24 on the same date each year thereafter. Beginning in January
25 of 1999, such increases shall be at the rate of 3% of the
26 currently payable monthly annuity, including any increases
27 previously granted under this Article.
28 (b) The foregoing provision is not applicable to an
29 employee retiring and receiving a term annuity, as herein
30 defined, nor to any otherwise qualified employee who retires
31 before he makes employee contributions (at the 1/2 of 1% rate
32 as provided in this Act) for this additional annuity for not
33 less than the equivalent of one full year. Such employee,
34 however, shall make arrangement to pay to the fund a balance
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1 of such 1/2 of 1% contributions, based on his final salary,
2 as will bring such 1/2 of 1% contributions, computed without
3 interest, to the equivalent of or completion of one year's
4 contributions.
5 Beginning with January, 1960, each employee shall
6 contribute by means of salary deductions 1/2 of 1% of each
7 salary payment, concurrently with and in addition to the
8 employee contributions otherwise made for annuity purposes.
9 Each such additional contribution shall be credited to an
10 account in the prior service annuity reserve, to be used,
11 together with city contributions, to defray the cost of the
12 specified annuity increments. Any balance in such account at
13 the beginning of each calendar year shall be credited with
14 interest at the rate of 3% per annum.
15 Such additional employee contributions are not
16 refundable, except to an employee who withdraws and applies
17 for refund under this Article, and in cases where a term
18 annuity becomes payable. In such cases his contributions
19 shall be refunded, without interest, and charged to such
20 account in the prior service annuity reserve.
21 (Source: P.A. 84-1472.)
22 (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
23 Sec. 8-137.1. Automatic increases in annuity for certain
24 heretofore retired participants. A retired municipal
25 employee who (a) is receiving annuity based on a service
26 credit of 20 or more years regardless of age at retirement or
27 based on a service credit of 15 or more years with retirement
28 at age 55 or over, and (b) does not qualify for the automatic
29 increases in annuity provided for in Section 8-137 of this
30 Article, and (c) elects to make a contribution to the Fund at
31 a time and manner prescribed by the Retirement Board, of a
32 sum equal to 1% of the amount of final monthly salary times
33 the number of full years of service on which the annuity was
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1 based in those cases where the annuity was computed on the
2 money purchase formula and in those cases in which the
3 annuity was computed under the minimum annuity formula
4 provisions of this Article a sum equal to 1% of the average
5 monthly salary on which the annuity was based times such
6 number of full years of service, shall have his original
7 fixed and payable monthly amount of annuity increased in
8 January of the year following the year in which he attains
9 the age of 65 years, if such age of 65 years is attained in
10 the year 1969 or later, by an amount equal to 1-1/2%, and by
11 an equal additional 1-1/2% in January of each year
12 thereafter. Beginning with January of the year 1972, such
13 increases shall be at the rate of 2% in lieu of the aforesaid
14 specified 1 1/2%, and beginning January of the year 1984 such
15 increases shall be at the rate of 3%. Beginning in January
16 of 1999, such increases shall be at the rate of 3% of the
17 currently payable monthly annuity, including any increases
18 previously granted under this Article.
19 Whenever the retired municipal employee receiving annuity
20 has attained the age of 66 or more in 1969, he shall have
21 such annuity increased in January, 1970 by an amount equal to
22 1-1/2% multiplied by the number equal to the number of months
23 of January elapsing from and including January of the year
24 immediately following the year he attained the age of 65 if
25 retired at or before age 65, or from and including January of
26 the year immediately following the year of retirement if
27 retired at an age greater than 65, to and including January,
28 1970, and by an equal additional 1-1/2% in January of each
29 year thereafter. Beginning with January of the year 1972,
30 such increases shall be at the rate of 2% in lieu of the
31 aforesaid specified 1 1/2%, and beginning January of the year
32 1984 such increases shall be at the rate of 3%. Beginning in
33 January of 1999, such increases shall be at the rate of 3% of
34 the currently payable monthly annuity, including any
HB3515 Enrolled -34- LRB9011159EGfg
1 increases previously granted under this Article.
2 To defray the annual cost of such increases, the annual
3 interest income of the Fund, accruing from investments held
4 by the Fund, exclusive of gains or losses on sales or
5 exchanges of assets during the year, over and above 4% a
6 year, shall be used to the extent necessary and available to
7 finance the cost of such increases for the following year,
8 and such amount shall be transferred as of the end of each
9 year, beginning with the year 1969, to a Fund account
10 designated as the Supplementary Payment Reserve from the
11 Investment and Interest Reserve set forth in Section 8-221.
12 The sums contributed by annuitants as provided for in this
13 Section shall also be placed in the aforesaid Supplementary
14 Payment Reserve and shall be applied and used for the
15 purposes of such Fund account, together with the aforesaid
16 interest.
17 In the event the monies in the Supplementary Payment
18 Reserve in any year arising from: (1) the available interest
19 income as defined hereinbefore and accruing in the preceding
20 year above 4% a year and (2) the contributions by retired
21 persons, as set forth hereinbefore, are insufficient to make
22 the total payments to all persons estimated to be entitled to
23 the annuity increases specified hereinbefore, then (3) any
24 interest earnings over 4% a year beginning with the year 1969
25 which were not previously used to finance such increases and
26 which were transferred to the Prior Service Annuity Reserve
27 may be used to the extent necessary and available to provide
28 sufficient funds to finance such increases for the current
29 year, and such sums shall be transferred from the Prior
30 Service Annuity Reserve.
31 In the event the total monies available in the
32 Supplementary Payment Reserve from the preceding indicated
33 sources are insufficient to make the total payments to all
34 persons entitled to such increases for the year, a
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1 proportionate amount computed as the ratio of the monies
2 available to the total of the total payments for that year
3 shall be paid to each person for that year.
4 The Fund shall be obligated for the payment of the
5 increases in annuity as provided for in this Section only to
6 the extent that the assets for such purpose, as specified
7 herein, are available.
8 (Source: P.A. 83-802.)
9 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
10 Sec. 8-138. Minimum annuities - Additional provisions.
11 (a) An employee who withdraws after age 65 or more with
12 at least 20 years of service, for whom the amount of age and
13 service and prior service annuity combined is less than the
14 amount stated in this Section, shall from the date of
15 withdrawal, instead of all annuities otherwise provided, be
16 entitled to receive an annuity for life of $150 a year, plus
17 1 1/2% for each year of service, to and including 20 years,
18 and 1 2/3% for each year of service over 20 years, of his
19 highest average annual salary for any 4 consecutive years
20 within the last 10 years of service immediately preceding the
21 date of withdrawal.
22 An employee who withdraws after 20 or more years of
23 service, before age 65, shall be entitled to such annuity, to
24 begin not earlier than upon attained age of 55 years if under
25 such age at withdrawal, reduced by 2% for each full year or
26 fractional part thereof that his attained age is less than
27 65, plus an additional 2% reduction for each full year or
28 fractional part thereof that his attained age when annuity is
29 to begin is less than 60 so that the total reduction at age
30 55 shall be 30%.
31 (b) An employee who withdraws after July 1, 1957, at age
32 60 or over, with 20 or more years of service, for whom the
33 age and service and prior service annuity combined, is less
HB3515 Enrolled -36- LRB9011159EGfg
1 than the amount stated in this paragraph, shall, from the
2 date of withdrawal, instead of such annuities, be entitled to
3 receive an annuity for life equal to 1 2/3% for each year of
4 service, of the highest average annual salary for any 5
5 consecutive years within the last 10 years of service
6 immediately preceding the date of withdrawal; provided, that
7 in the case of any employee who withdraws on or after July 1,
8 1971, such employee age 60 or over with 20 or more years of
9 service, shall receive an annuity for life equal to 1.67% for
10 each of the first 10 years of service; 1.90% for each of the
11 next 10 years of service; 2.10% for each year of service in
12 excess of 20 but not exceeding 30; and 2.30% for each year of
13 service in excess of 30, based on the highest average annual
14 salary for any 4 consecutive years within the last 10 years
15 of service immediately preceding the date of withdrawal.
16 An employee who withdraws after July 1, 1957 and before
17 January 1, 1988, with 20 or more years of service, before age
18 60 years is entitled to annuity, to begin not earlier than
19 upon attained age of 55 years, if under such age at
20 withdrawal, as computed in the last preceding paragraph,
21 reduced 0.25% for each full month or fractional part thereof
22 that his attained age when annuity is to begin is less than
23 60 if the employee was born before January 1, 1936, or 0.5%
24 for each such month if the employee was born on or after
25 January 1, 1936.
26 Any employee born before January 1, 1936, who withdraws
27 with 20 or more years of service, and any employee with 20 or
28 more years of service who withdraws on or after January 1,
29 1988, may elect to receive, in lieu of any other employee
30 annuity provided in this Section, an annuity for life equal
31 to 1.80% for each of the first 10 years of service, 2.00% for
32 each of the next 10 years of service, 2.20% for each year of
33 service in excess of 20 but not exceeding 30, and 2.40% for
34 each year of service in excess of 30, of the highest average
HB3515 Enrolled -37- LRB9011159EGfg
1 annual salary for any 4 consecutive years within the last 10
2 years of service immediately preceding the date of
3 withdrawal, to begin not earlier than upon attained age of 55
4 years, if under such age at withdrawal, reduced 0.25% for
5 each full month or fractional part thereof that his attained
6 age when annuity is to begin is less than 60; except that an
7 employee retiring on or after January 1, 1988, at age 55 or
8 over but less than age 60, having at least 35 years of
9 service, or an employee retiring on or after July 1, 1990, at
10 age 55 or over but less than age 60, having at least 30 years
11 of service, or an employee retiring on or after the effective
12 date of this amendatory Act of 1997, at age 55 or over but
13 less than age 60, having at least 25 years of service, shall
14 not be subject to the reduction in retirement annuity because
15 of retirement below age 60.
16 However, in the case of an employee who retired on or
17 after January 1, 1985 but before January 1, 1988, at age 55
18 or older and with at least 35 years of service, and who was
19 subject under this subsection (b) to the reduction in
20 retirement annuity because of retirement below age 60, that
21 reduction shall cease to be effective January 1, 1991, and
22 the retirement annuity shall be recalculated accordingly.
23 Any employee who withdraws on or after July 1, 1990, with
24 20 or more years of service, may elect to receive, in lieu of
25 any other employee annuity provided in this Section, an
26 annuity for life equal to 2.20% for each year of service of
27 the highest average annual salary for any 4 consecutive years
28 within the last 10 years of service immediately preceding the
29 date of withdrawal, to begin not earlier than upon attained
30 age of 55 years, if under such age at withdrawal, reduced
31 0.25% for each full month or fractional part thereof that his
32 attained age when annuity is to begin is less than 60; except
33 that an employee retiring at age 55 or over but less than age
34 60, having at least 30 years of service, shall not be subject
HB3515 Enrolled -38- LRB9011159EGfg
1 to the reduction in retirement annuity because of retirement
2 below age 60.
3 Any employee who withdraws on or after the effective date
4 of this amendatory Act of 1997 with 20 or more years of
5 service may elect to receive, in lieu of any other employee
6 annuity provided in this Section, an annuity for life equal
7 to 2.20%, for each year of service, of the highest average
8 annual salary for any 4 consecutive years within the last 10
9 years of service immediately preceding the date of
10 withdrawal, to begin not earlier than upon attainment of age
11 55 (age 50 if the employee has at least 30 years of service),
12 reduced 0.25% for each full month or remaining fractional
13 part thereof that the employee's attained age when annuity is
14 to begin is less than 60; except that an employee retiring at
15 age 50 or over with at least 30 years of service or at age 55
16 or over with at least 25 years of service shall not be
17 subject to the reduction in retirement annuity because of
18 retirement below age 60.
19 The maximum annuity payable under part (a) and (b) of
20 this Section shall not exceed 70% of highest average annual
21 salary in the case of an employee who withdraws prior to July
22 1, 1971, and 75% if withdrawal takes place on or after July
23 1, 1971. For the purpose of the minimum annuity provided in
24 this Section $1,500 is considered the minimum annual salary
25 for any year; and the maximum annual salary for the
26 computation of such annuity is $4,800 for any year before
27 1953, $6000 for the years 1953 to 1956, inclusive, and the
28 actual annual salary, as salary is defined in this Article,
29 for any year thereafter.
30 To preserve rights existing on December 31, 1959, for
31 participants and contributors on that date to the fund
32 created by the Court and Law Department Employees' Annuity
33 Act, who became participants in the fund provided for on
34 January 1, 1960, the maximum annual salary to be considered
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1 for such persons for the years 1955 and 1956 is $7,500.
2 (c) For an employee receiving disability benefit, his
3 salary for annuity purposes under paragraphs (a) and (b) of
4 this Section, for all periods of disability benefit
5 subsequent to the year 1956, is the amount on which his
6 disability benefit was based.
7 (d) An employee with 20 or more years of service, whose
8 entire disability benefit credit period expires before
9 attainment of age 55 while still disabled for service, is
10 entitled upon withdrawal to the larger of (1) the minimum
11 annuity provided above, assuming he is then age 55, and
12 reducing such annuity to its actuarial equivalent as of his
13 attained age on such date or (2) the annuity provided from
14 his age and service and prior service annuity credits.
15 (e) The minimum annuity provisions do not apply to any
16 former municipal employee receiving an annuity from the fund
17 who re-enters service as a municipal employee, unless he
18 renders at least 3 years of additional service after the date
19 of re-entry.
20 (f) An employee in service on July 1, 1947, or who
21 became a contributor after July 1, 1947 and before attainment
22 of age 70, who withdraws after age 65, with less than 20
23 years of service for whom the annuity has been fixed under
24 this Article shall, instead of the annuity so fixed, receive
25 an annuity as follows:
26 Such amount as he could have received had the accumulated
27 amounts for annuity been improved with interest at the
28 effective rate to the date of his withdrawal, or to
29 attainment of age 70, whichever is earlier, and had the city
30 contributed to such earlier date for age and service annuity
31 the amount that it would have contributed had he been under
32 age 65, after the date his annuity was fixed in accordance
33 with this Article, and assuming his annuity were computed
34 from such accumulations as of his age on such earlier date.
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1 The annuity so computed shall not exceed the annuity which
2 would be payable under the other provisions of this Section
3 if the employee was credited with 20 years of service and
4 would qualify for annuity thereunder.
5 (g) Instead of the annuity provided in this Article, an
6 employee having attained age 65 with at least 15 years of
7 service who withdraws from service on or after July 1, 1971
8 and whose annuity computed under other provisions of this
9 Article is less than the amount provided under this
10 paragraph, is entitled to a minimum annuity for life equal to
11 1% of the highest average annual salary, as salary is defined
12 and limited in this Section for any 4 consecutive years
13 within the last 10 years of service for each year of service,
14 plus the sum of $25 for each year of service. The annuity
15 shall not exceed 60% of such highest average annual salary.
16 (g-1) Instead of any other retirement annuity provided
17 in this Article, an employee who has at least 10 years of
18 service and withdraws from service on or after January 1,
19 1999 may elect to receive a retirement annuity for life,
20 beginning no earlier than upon attainment of age 60, equal to
21 2.2% of final average salary for each year of service,
22 subject to a maximum of 75% of final average salary. For the
23 purpose of calculating this annuity, "final average salary"
24 means the highest average annual salary for any 4 consecutive
25 years in the last 10 years of service.
26 (h) The minimum annuities provided under this Section
27 shall be paid in equal monthly installments.
28 (i) The amendatory provisions of part (b) and (g) of
29 this Section shall be effective July 1, 1971 and apply in the
30 case of every qualifying employee withdrawing on or after
31 July 1, 1971.
32 (j) The amendatory provisions of this amendatory Act of
33 1985 (P.A. 84-23) relating to the discount of annuity because
34 of retirement prior to attainment of age 60, and to the
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1 retirement formula, for those born before January 1, 1936,
2 shall apply only to qualifying employees withdrawing on or
3 after July 18, 1985.
4 (k) Beginning on January 1, 1999 the effective date of
5 this amendatory Act of 1997, the minimum amount of employee's
6 annuity shall be $850 $550 per month for life for the
7 following classes of employees, without regard to the fact
8 that withdrawal occurred prior to the effective date of this
9 amendatory Act of 1998 1997:
10 (1) any employee annuitant alive and receiving a
11 life annuity on the effective date of this amendatory Act
12 of 1998 1997, except a reciprocal annuity;
13 (2) any employee annuitant alive and receiving a
14 term annuity on the effective date of this amendatory Act
15 of 1998 1997, except a reciprocal annuity;
16 (3) any employee annuitant alive and receiving a
17 reciprocal annuity on the effective date of this
18 amendatory Act of 1998 1997, whose service in this fund
19 is at least 5 years;
20 (4) any employee annuitant withdrawing after age 60
21 on or after the effective date of this amendatory Act of
22 1998 1997, with at least 10 years of service in this
23 fund.
24 The increases granted under items (1), (2) and (3) of
25 this subsection (k) shall not be limited by any other Section
26 of this Act.
27 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
28 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
29 Sec. 8-139. Reversionary annuity.
30 (a) An employee, prior to retirement on annuity, may
31 elect to take a lesser amount of annuity and provide, with
32 the actuarial value of the amount by which his annuity is
33 reduced, a reversionary annuity for a wife, husband, parent,
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1 child, brother or sister. The option shall be exercised by
2 filing a written designation with the board prior to
3 retirement, and may be revoked by the employee at any time
4 before retirement. The death of the employee prior to his
5 retirement shall automatically void the option.
6 (b) The death of the designated reversionary annuitant
7 prior to the employee's retirement shall automatically void
8 the option. If the reversionary annuitant dies after the
9 employee's retirement, and before the death of the employee
10 annuitant, the reduced annuity being paid to the retired
11 employee annuitant shall be increased to the amount of
12 annuity before reduction for the reversionary annuity and no
13 reversionary annuity shall be payable.
14 The option is subject to the further condition that no
15 reversionary annuity shall be paid to a parent, child,
16 brother, or sister if the employee dies before the expiration
17 of 365 730 days from the date his written designation was
18 filed with the board, even though he has retired and is
19 receiving a reduced annuity.
20 (c) The employee exercising this option shall not reduce
21 his retirement annuity by more than $400 $200 a month, or
22 elect to provide a reversionary annuity of less than $50 per
23 month. No option shall be permitted if the reversionary
24 annuity for a widow, when added to the widow's annuity
25 payable under this Article, exceeds 100% 80% of the reduced
26 annuity payable to the employee.
27 (d) A reversionary annuity shall begin on the day
28 following the death of the annuitant and shall be paid as
29 provided in Section 8-125.
30 (e) The increases in annuity provided in Section 8-137
31 of this Article shall, as to an employee so electing a
32 reduced annuity relate to the amount of the original annuity,
33 and such amount shall constitute the annuity on which such
34 automatic increases shall be based.
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1 (f) For annuities elected after June 30, 1983, the
2 amount of the monthly reversionary annuity shall be
3 determined by multiplying the amount of the monthly reduction
4 in the employee's annuity by the factor in the following
5 table based on the age of the employee and the difference in
6 the age of the employee and the age of the reversionary
7 annuitant at the starting date of the employee's annuity:
8 Employee's Age
9 Reversionary
10 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
11 Over
12 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
13 younger
14 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
15 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
16 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
17 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
18 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
19 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
20 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
21 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
22 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
23 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
24 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
25 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
26 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
27 older
28 (Source: P.A. 90-31, eff. 6-27-97.)
29 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
30 Sec. 8-150.1. Minimum annuities for widows. The widow
31 (otherwise eligible for widow's annuity under other Sections
32 of this Article 8) of an employee hereinafter described, who
33 retires from service or dies while in the service subsequent
HB3515 Enrolled -44- LRB9011159EGfg
1 to the effective date of this amendatory provision, and for
2 which widow the amount of widow's annuity and widow's prior
3 service annuity combined, fixed or provided for such widow
4 under other provisions of this Article is less than the
5 amount provided in this Section, shall, from and after the
6 date her otherwise provided annuity would begin, in lieu of
7 such otherwise provided widow's and widow's prior service
8 annuity, be entitled to the following indicated amount of
9 annuity:
10 (a) The widow of any employee who dies while in service
11 on or after the date on which he attains age 60 if the death
12 occurs before July 1, 1990, or on or after the date on which
13 he attains age 55 if the death occurs on or after July 1,
14 1990, with at least 20 years of service, or on or after the
15 date on which he attains age 50 if the death occurs on or
16 after the effective date of this amendatory Act of 1997 with
17 at least 30 years of service, shall be entitled to an annuity
18 equal to one-half of the amount of annuity which her deceased
19 husband would have been entitled to receive had he withdrawn
20 from the service on the day immediately preceding the date of
21 his death, conditional upon such widow having attained the
22 age of 60 or more years on such date if the death occurs
23 before July 1, 1990, or age 55 or more if the death occurs on
24 or after July 1, 1990, or age 50 or more if the death occurs
25 on or after January 1, 1998 and the employee is age 50 or
26 over with at least 30 years of service or age 55 or over with
27 at least 25 years of service. Except as provided in
28 subsection (k), this widow's annuity shall not, however,
29 exceed the sum of $500 a month if the employee's death in
30 service occurs before January 23, 1987. The widow's annuity
31 shall not be limited to a maximum dollar amount if the
32 employee's death in service occurs on or after January 23,
33 1987.
34 If the employee dies in service before July 1, 1990, and
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1 if such widow of such described employee shall not be 60 or
2 more years of age on such date of death, the amount provided
3 in the immediately preceding paragraph for a widow 60 or more
4 years of age, shall, in the case of such younger widow, be
5 reduced by 0.25% for each month that her then attained age is
6 less than 60 years if the employee was born before January 1,
7 1936 or dies in service on or after January 1, 1988, or by
8 0.5% for each month that her then attained age is less than
9 60 years if the employee was born on or after July 1, 1936
10 and dies in service before January 1, 1988.
11 If the employee dies in service on or after July 1, 1990,
12 and if the widow of the employee has not attained age 55 on
13 or before the employee's date of death, the amount otherwise
14 provided in this subsection (a) shall be reduced by 0.25% for
15 each month that her then attained age is less than 55 years;
16 except that if the employee dies in service on or after
17 January 1, 1998 at age 50 or over with at least 30 years of
18 service or at age 55 or over with at least 25 years of
19 service, there shall be no reduction due to the widow's age
20 if she has attained age 50 on or before the employee's date
21 of death, and if the widow has not attained age 50 on or
22 before the employee's date of death the amount otherwise
23 provided in this subsection (a) shall be reduced by 0.25% for
24 each month that her then attained age is less than 50 years.
25 (b) The widow of any employee who dies subsequent to the
26 date of his retirement on annuity, and who so retired on or
27 after the date on which he attained the age of 60 or more
28 years if retirement occurs before July 1, 1990, or on or
29 after the date on which he attained age 55 if retirement
30 occurs on or after July 1, 1990, with at least 20 years of
31 service, or on or after the date on which he attained age 50
32 if the retirement occurs on or after the effective date of
33 this amendatory Act of 1997 with at least 30 years of
34 service, shall be entitled to an annuity equal to one-half of
HB3515 Enrolled -46- LRB9011159EGfg
1 the amount of annuity which her deceased husband received as
2 of the date of his retirement on annuity, conditional upon
3 such widow having attained the age of 60 or more years on the
4 date of her husband's retirement on annuity if retirement
5 occurs before July 1, 1990, or age 55 or more if retirement
6 occurs on or after July 1, 1990, or age 50 or more if the
7 retirement on annuity occurs on or after January 1, 1998 and
8 the employee is age 50 or over with at least 30 years of
9 service or age 55 or over with at least 25 years of service.
10 Except as provided in subsection (k), this widow's annuity
11 shall not, however, exceed the sum of $500 a month if the
12 employee's death occurs before January 23, 1987. The widow's
13 annuity shall not be limited to a maximum dollar amount if
14 the employee's death occurs on or after January 23, 1987,
15 regardless of the date of retirement; provided that, if
16 retirement was before January 23, 1987, the employee or
17 eligible spouse repays the excess spouse refund with interest
18 at the effective rate from the date of refund to the date of
19 repayment.
20 If the date of the employee's retirement on annuity is
21 before July 1, 1990, and if such widow of such described
22 employee shall not have attained such age of 60 or more years
23 on such date of her husband's retirement on annuity, the
24 amount provided in the immediately preceding paragraph for a
25 widow 60 or more years of age on the date of her husband's
26 retirement on annuity, shall, in the case of such then
27 younger widow, be reduced by 0.25% for each month that her
28 then attained age was less than 60 years if the employee was
29 born before January 1, 1936 or withdraws from service on or
30 after January 1, 1988, or by 0.5% for each month that her
31 then attained age is less than 60 years if the employee was
32 born on or after January 1, 1936 and withdraws from service
33 before January 1, 1988.
34 If the date of the employee's retirement on annuity is on
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1 or after July 1, 1990, and if the widow of the employee has
2 not attained age 55 by the date of the employee's retirement
3 on annuity, the amount otherwise provided in this subsection
4 (b) shall be reduced by 0.25% for each month that her then
5 attained age is less than 55 years; except that if the
6 employee retires on annuity on or after January 1, 1998 at
7 age 50 or over with at least 30 years of service or at age 55
8 or over with at least 25 years of service, there shall be no
9 reduction due to the widow's age if she has attained age 50
10 on or before the employee's date of death, and if the widow
11 has not attained age 50 on or before the employee's date of
12 death the amount otherwise provided in this subsection (b)
13 shall be reduced by 0.25% for each month that her then
14 attained age is less than 50 years.
15 (c) The foregoing provisions relating to minimum
16 annuities for widows shall not apply to the widow of any
17 former municipal employee receiving an annuity from the fund
18 on August 9, 1965 or on the effective date of this amendatory
19 provision, who re-enters service as a municipal employee,
20 unless such employee renders at least 3 years of additional
21 service after the date of re-entry.
22 (d) In computing the amount of annuity which the husband
23 specified in the foregoing paragraphs (a) and (b) of this
24 Section would have been entitled to receive, or received,
25 such amount shall be the annuity to which such husband would
26 have been, or was entitled, before reduction in the amount of
27 his annuity for the purposes of the voluntary optional
28 reversionary annuity provided for in Sec. 8-139 of this
29 Article, if such option was elected.
30 (e) (Blank).
31 (f) (Blank).
32 (g) The amendatory provisions of this amendatory Act of
33 1985 relating to annuity discount because of age for widows
34 of employees born before January 1, 1936, shall apply only to
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1 qualifying widows of employees withdrawing or dying in
2 service on or after July 18, 1985.
3 (h) Beginning on January 1, 1999 the effective date of
4 this amendatory Act of 1997, the minimum amount of widow's
5 annuity shall be $800 $500 per month for life for the
6 following classes of widows, without regard to the fact that
7 the death of the employee occurred prior to the effective
8 date of this amendatory Act of 1998 1997:
9 (1) any widow annuitant alive and receiving a life
10 annuity on the effective date of this amendatory Act of
11 1998 1997, except a reciprocal annuity;
12 (2) any widow annuitant alive and receiving a term
13 annuity on the effective date of this amendatory Act of
14 1998 1997, except a reciprocal annuity;
15 (3) any widow annuitant alive and receiving a
16 reciprocal annuity on the effective date of this
17 amendatory Act of 1998 1997, whose employee spouse's
18 service in this fund was at least 5 years;
19 (4) the widow of an employee with at least 10 years
20 of service in this fund who dies after retirement, if the
21 retirement occurred prior to the effective date of this
22 amendatory Act of 1998 1997;
23 (5) the widow of an employee with at least 10 years
24 of service in this fund who dies after retirement, if
25 withdrawal occurs on or after the effective date of this
26 amendatory Act of 1998 1997;
27 (6) the widow of an employee who dies in service
28 with at least 5 years of service in this fund, if the
29 death in service occurs on or after the effective date of
30 this amendatory Act of 1998 1997.
31 The increases granted under items (1), (2), (3) and (4)
32 of this subsection (h) shall not be limited by any other
33 Section of this Act.
34 (i) The widow of an employee who retired or died in
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1 service on or after January 1, 1985 and before July 1, 1990,
2 at age 55 or older, and with at least 35 years of service
3 credit, shall be entitled to have her widow's annuity
4 increased, effective January 1, 1991, to an amount equal to
5 50% of the retirement annuity that the deceased employee
6 received on the date of retirement, or would have been
7 eligible to receive if he had retired on the day preceding
8 the date of his death in service, provided that if the widow
9 had not attained age 60 by the date of the employee's
10 retirement or death in service, the amount of the annuity
11 shall be reduced by 0.25% for each month that her then
12 attained age was less than age 60 if the employee's
13 retirement or death in service occurred on or after January
14 1, 1988, or by 0.5% for each month that her attained age is
15 less than age 60 if the employee's retirement or death in
16 service occurred prior to January 1, 1988. However, in cases
17 where a refund of excess contributions for widow's annuity
18 has been paid by the Fund, the increase in benefit provided
19 by this subsection (i) shall be contingent upon repayment of
20 the refund to the Fund with interest at the effective rate
21 from the date of refund to the date of payment.
22 (j) If a deceased employee is receiving a retirement
23 annuity at the time of death and that death occurs on or
24 after June 27, the effective date of this amendatory Act of
25 1997, the widow may elect to receive, in lieu of any other
26 annuity provided under this Article, 50% of the deceased
27 employee's retirement annuity at the time of death reduced by
28 0.25% for each month that the widow's age on the date of
29 death is less than 55; except that if the employee dies on or
30 after January 1, 1998 and withdrew from service on or after
31 June 27, 1997 at age 50 or over with at least 30 years of
32 service or at age 55 or over with at least 25 years of
33 service, there shall be no reduction due to the widow's age
34 if she has attained age 50 on or before the employee's date
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1 of death, and if the widow has not attained age 50 on or
2 before the employee's date of death the amount otherwise
3 provided in this subsection (j) shall be reduced by 0.25% for
4 each month that her age on the date of death is less than 50
5 years. However, in cases where a refund of excess
6 contributions for widow's annuity has been paid by the Fund,
7 the benefit provided by this subsection (j) is contingent
8 upon repayment of the refund to the Fund with interest at the
9 effective rate from the date of refund to the date of
10 payment.
11 (k) For widows of employees who died before January 23,
12 1987 after retirement on annuity or in service, the maximum
13 dollar amount limitation on widow's annuity shall cease to
14 apply, beginning with the first annuity payment after the
15 effective date of this amendatory Act of 1997; except that if
16 a refund of excess contributions for widow's annuity has been
17 paid by the Fund, the increase resulting from this subsection
18 (k) shall not begin before the refund has been repaid to the
19 Fund, together with interest at the effective rate from the
20 date of the refund to the date of repayment.
21 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
22 (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
23 Sec. 8-158. Child's annuity. A child's annuity is
24 payable monthly after the death of an employee parent to the
25 child until the child's attainment of age 18, under the
26 following conditions, if the child was born before the
27 employee attained age 65, and before he withdrew from
28 service:
29 (a) upon death resulting from injury incurred in
30 the performance of an act of duty;
31 (b) upon death in service from any cause other than
32 injury incurred in the performance of an act of duty, if
33 the employee has at least 4 years of service after the
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1 date of his original entry into service, and at least 2
2 years after the date of his latest re-entry;
3 (c) upon death of an employee who withdraws from
4 service after age 55 (or after age 50 with at least 30
5 years of service if withdrawal is on or after June 27,
6 1997) and who has entered upon or is eligible for
7 annuity.
8 Payment shall be made as provided in Section 8-125.
9 (Source: P.A. 90-31, eff. 6-27-97.)
10 (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
11 Sec. 8-173. Financing; tax levy.
12 (a) Except as provided in subsection (f) of this
13 Section, the city council of the city shall levy a tax
14 annually upon all taxable property in the city at a rate that
15 will produce a sum which, when added to the amounts deducted
16 from the salaries of the employees or otherwise contributed
17 by them and the amounts deposited under subsection (f), will
18 be sufficient for the requirements of this Article, but which
19 when extended will produce an amount not to exceed the
20 greater of the following: (a) the sum obtained by the levy of
21 a tax of .1093% of the value, as equalized or assessed by the
22 Department of Revenue, of all taxable property within such
23 city, or (b) the sum of $12,000,000. However any city in
24 which a Fund has been established and in operation under this
25 Article for more than 3 years prior to 1970, that city shall
26 levy for the year 1970 a tax at a rate on the dollar of
27 assessed valuation of all taxable property that will produce,
28 when extended, an amount not to exceed 1.2 times the total
29 amount of contributions made by employees to the Fund for
30 annuity purposes in the calendar year 1968, and, for the year
31 1971 and 1972 such levy that will produce, when extended, an
32 amount not to exceed 1.3 times the total amount of
33 contributions made by of employees to the Fund for annuity
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1 purposes in the calendar years 1969 and 1970, respectively;
2 and for the year 1973 an amount not to exceed 1.365 times
3 such total amount of contributions made by employees for
4 annuity purposes in the calendar year 1971; and for the year
5 1974 an amount not to exceed 1.430 times such total amount of
6 contributions made by employees for annuity purposes in the
7 calendar year 1972; and for the year 1975 an amount not to
8 exceed 1.495 times such total amount of contributions made by
9 employees for annuity purposes in the calendar year 1973; and
10 for the year 1976 an amount not to exceed 1.560 times such
11 total amount of contributions made by employees for annuity
12 purposes in the calendar year 1974; and for the year 1977 an
13 amount not to exceed 1.625 times such total amount of
14 contributions made by employees for annuity purposes in the
15 calendar year 1975; and for the year 1978 and each year
16 thereafter, such levy as that will produce, when extended, an
17 amount not to exceed 1.690 times the total amount of
18 contributions made by or on behalf of employees to the Fund
19 for annuity purposes in the calendar year 2 years prior to
20 the year for which the annual applicable tax is levied,
21 multiplied by 1.690 for the years 1978 through 1998 and by
22 1.250 for the year 1999 and for each year thereafter.
23 The tax shall be levied and collected in like manner with
24 the general taxes of the city, and shall be exclusive of and
25 in addition to the amount of tax the city is now or may
26 hereafter be authorized to levy for general purposes under
27 any laws which may limit the amount of tax which the city may
28 levy for general purposes. The county clerk of the county in
29 which the city is located, in reducing tax levies under the
30 provisions of any Act concerning the levy and extension of
31 taxes, shall not consider the tax herein provided for as a
32 part of the general tax levy for city purposes, and shall not
33 include the same within any limitation of the percent of the
34 assessed valuation upon which taxes are required to be
HB3515 Enrolled -53- LRB9011159EGfg
1 extended for such city.
2 Revenues derived from such tax shall be paid to the city
3 treasurer of the city as collected and held by him for the
4 benefit of the fund.
5 If the payments on account of taxes are insufficient
6 during any year to meet the requirements of this Article, the
7 city may issue tax anticipation warrants against the current
8 tax levy.
9 (b) On or before January 10, annually, the board shall
10 notify the city council of the requirements of this Article
11 that the tax herein provided shall be levied for that current
12 year. The board shall compute the amounts necessary to be
13 credited to the reserves established and maintained as herein
14 provided, and shall make an annual determination of the
15 amount of the required city contributions, and certify the
16 results thereof to the city council.
17 (c) In respect to employees of the city who are
18 transferred to the employment of a park district by virtue of
19 the "Exchange of Functions Act of 1957", the corporate
20 authorities of the park district shall annually levy a tax
21 upon all the taxable property in the park district at such
22 rate per cent of the value of such property, as equalized or
23 assessed by the Department of Revenue, as shall be
24 sufficient, when added to the amounts deducted from their
25 salaries and otherwise contributed by them to provide the
26 benefits to which they and their dependents and beneficiaries
27 are entitled under this Article. The city shall not levy a
28 tax hereunder in respect to such employees.
29 The tax so levied by the park district shall be in
30 addition to and exclusive of all other taxes authorized to be
31 levied by the park district for corporate, annuity fund, or
32 other purposes. The county clerk of the county in which the
33 park district is located, in reducing any tax levied under
34 the provisions of any act concerning the levy and extension
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1 of taxes shall not consider such tax as part of the general
2 tax levy for park purposes, and shall not include the same in
3 any limitation of the per cent of the assessed valuation upon
4 which taxes are required to be extended for the park
5 district. The proceeds of the tax levied by the park
6 district, upon receipt by the district, shall be immediately
7 paid over to the city treasurer of the city for the uses and
8 purposes of the fund.
9 The various sums, to be contributed by the city and park
10 district and allocated for the purposes of this Article, and
11 any interest to be contributed by the city, shall be derived
12 from the revenue from the taxes authorized in this Section
13 said tax or otherwise as expressly provided in this Section.
14 If it is not possible or practicable for the city to make
15 contributions for age and service annuity and widow's annuity
16 at the same time that employee contributions are made for
17 such purposes, such city contributions shall be construed to
18 be due and payable as of the end of the fiscal year for which
19 the tax is levied and shall accrue thereafter with interest
20 at the effective rate until paid.
21 (d) With respect to employees whose wages are funded as
22 participants under the Comprehensive Employment and Training
23 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
24 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
25 subsequent to October 1, 1978, and in instances where the
26 board has elected to establish a manpower program reserve,
27 the board shall compute the amounts necessary to be credited
28 to the manpower program reserves established and maintained
29 as herein provided, and shall make a periodic determination
30 of the amount of required contributions from the City to the
31 reserve to be reimbursed by the federal government in
32 accordance with rules and regulations established by the
33 Secretary of the United States Department of Labor or his
34 designee, and certify the results thereof to the City
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1 Council. Any such amounts shall become a credit to the City
2 and will be used to reduce the amount which the City would
3 otherwise contribute during succeeding years for all
4 employees.
5 (e) In lieu of establishing a manpower program reserve
6 with respect to employees whose wages are funded as
7 participants under the Comprehensive Employment and Training
8 Act of 1973, as authorized by subsection (d), the board may
9 elect to establish a special municipality contribution rate
10 for all such employees. If this option is elected, the City
11 shall contribute to the Fund from federal funds provided
12 under the Comprehensive Employment and Training Act program
13 at the special rate so established and such contributions
14 shall become a credit to the City and be used to reduce the
15 amount which the City would otherwise contribute during
16 succeeding years for all employees.
17 (f) In lieu of levying all or a portion of the tax
18 required under this Section in any year, the city may deposit
19 with the city treasurer no later than March 1 of that year
20 for the benefit of the fund, to be held in accordance with
21 this Article, an amount that, together with the taxes levied
22 under this Section for that year, is not less than the amount
23 of the city contributions for that year as certified by the
24 board to the city council. The deposit may be derived from
25 any source legally available for that purpose, including, but
26 not limited to, the proceeds of city borrowings. The making
27 of a deposit shall satisfy fully the requirements of this
28 Section for that year to the extent of the amounts so
29 deposited. Amounts deposited under this subsection may be
30 used by the fund for any of the purposes for which the
31 proceeds of the tax levied by the city under this Section may
32 be used, including the payment of any amount that is
33 otherwise required by this Article to be paid from the
34 proceeds of that tax.
HB3515 Enrolled -56- LRB9011159EGfg
1 (Source: P.A. 90-31, eff. 6-27-97; revised 12-18-97.)
2 (40 ILCS 5/8-230.7 new)
3 Sec. 8-230.7. Service rendered to Public Building
4 Commission.
5 (a) An employee or former employee may contribute to the
6 fund and receive credit for all periods of full-time
7 employment by the Public Building Commission created by the
8 employing city, except for those periods for which the
9 employee retains a right to credit in another public pension
10 fund or retirement system. Such service credit shall be paid
11 for and granted on the same basis and under the same
12 conditions as are applicable in the case of employees who
13 make payment for past service under Section 8-230, provided
14 that the person must also pay the corresponding employer
15 contributions. The contributions shall be based on the
16 salary actually received by the person from the Commission
17 for that employment.
18 (b) A person establishing service credit under
19 subsection (a) may, at the same time, reinstate service
20 credit that was terminated through receipt of a refund by
21 repaying to the Fund the amount of the refund plus interest
22 at the effective rate from the date of the refund to the date
23 of repayment.
24 (c) An eligible person may establish service credit
25 under subsection (a) and reinstate service credit under
26 subsection (b) without returning to active service as an
27 employee under this Article, but the required contributions
28 and repayment must be received by the Fund before the person
29 begins to receive a retirement annuity under this Article.
30 (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
31 Sec. 8-244.1. Payment of annuity other than direct.
32 (a) The board, at the written direction and request of
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1 any annuitant, may, solely as an accommodation to such
2 annuitant, pay the annuity due him to a bank, savings and
3 loan association or any other financial institution insured
4 by an agency of the federal government, for deposit to his
5 account, or to a bank or trust company for deposit in a trust
6 established by him for his benefit with such bank, savings
7 and loan association or trust company, and such annuitant may
8 withdraw such direction at any time. The board may also, in
9 the case of any disability beneficiary or annuitant for whom
10 no estate guardian has been appointed and who is confined in
11 a publicly owned and operated mental institution, pay such
12 disability benefit or annuity due such person to the
13 superintendent or other head of such institution or hospital
14 for deposit to such person's trust fund account maintained
15 for him by such institution or hospital, if by law such trust
16 fund accounts are authorized or recognized.
17 (b) An annuitant formerly employed by the City of
18 Chicago may authorize the withholding of a portion of his or
19 her annuity for payment of dues to the labor organization
20 which formerly represented the annuitant when the annuitant
21 was an active employee; however, no withholding shall be
22 required under this subsection for payment to one labor
23 organization unless a minimum of 25 annuitants authorize such
24 withholding. The Board shall prescribe a form for the
25 authorization of withholding of dues, release of name, social
26 security number and address and shall provide such forms to
27 employees, annuitants and labor organizations upon request.
28 Amounts withheld by the Board under this subsection shall be
29 promptly paid over to the designated organizations,
30 indicating the names, social security numbers and addresses
31 of annuitants on whose behalf dues were withheld.
32 At the request and at the expense of the labor
33 organization that formerly represented the annuitant, the
34 City of Chicago shall coordinate mailings no more than twice
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1 in any twelve-month period to such annuitants and the Board
2 shall supply current annuitant addresses to the City of
3 Chicago upon request. These mailings shall be limited to
4 informing the annuitants of their rights under this
5 subsection (b), the form authorizing the withholding of dues
6 from their annuity and information supplied by the labor
7 organization pertinent to the decision of whether to exercise
8 the rights of this subsection. To meet this obligation, the
9 City of Chicago shall, upon request, create and update
10 records of all retirees for each labor organization as far
11 back in time as records permit, including their names,
12 addresses, phone numbers and social security numbers.
13 (Source: P.A. 83-1362.)
14 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
15 Sec. 11-134. Minimum annuities.
16 (a) An employee whose withdrawal occurs after July 1,
17 1957 at age 60 or over, with 20 or more years of service, (as
18 service is defined or computed in Section 11-216), for whom
19 the age and service and prior service annuity combined is
20 less than the amount stated in this Section, shall, from and
21 after the date of withdrawal, in lieu of all annuities
22 otherwise provided in this Article, be entitled to receive an
23 annuity for life of an amount equal to 1 2/3% for each year
24 of service, of the highest average annual salary for any 5
25 consecutive years within the last 10 years of service
26 immediately preceding the date of withdrawal; provided, that
27 in the case of any employee who withdraws on or after July 1,
28 1971, such employee age 60 or over with 20 or more years of
29 service, shall be entitled to instead receive an annuity for
30 life equal to 1.67% for each of the first 10 years of
31 service; 1.90% for each of the next 10 years of service;
32 2.10% for each year of service in excess of 20 but not
33 exceeding 30; and 2.30% for each year of service in excess of
HB3515 Enrolled -59- LRB9011159EGfg
1 30, based on the highest average annual salary for any 4
2 consecutive years within the last 10 years of service
3 immediately preceding the date of withdrawal.
4 An employee who withdraws after July 1, 1957 and before
5 January 1, 1988, with 20 or more years of service, before age
6 60, shall be entitled to an annuity, to begin not earlier
7 than age 55, if under such age at withdrawal, as computed in
8 the last preceding paragraph, reduced 0.25% if the employee
9 was born before January 1, 1936, or 0.5% if the employee was
10 born on or after January 1, 1936, for each full month or
11 fractional part thereof that his attained age when such
12 annuity is to begin is less than 60.
13 Any employee born before January 1, 1936 who withdraws
14 with 20 or more years of service, and any employee with 20 or
15 more years of service who withdraws on or after January 1,
16 1988, may elect to receive, in lieu of any other employee
17 annuity provided in this Section, an annuity for life equal
18 to 1.80% for each of the first 10 years of service, 2.00% for
19 each of the next 10 years of service, 2.20% for each year of
20 service in excess of 20, but not exceeding 30, and 2.40% for
21 each year of service in excess of 30, of the highest average
22 annual salary for any 4 consecutive years within the last 10
23 years of service immediately preceding the date of
24 withdrawal, to begin not earlier than upon attained age of 55
25 years, if under such age at withdrawal, reduced 0.25% for
26 each full month or fractional part thereof that his attained
27 age when annuity is to begin is less than 60; except that an
28 employee retiring on or after January 1, 1988, at age 55 or
29 over but less than age 60, having at least 35 years of
30 service, or an employee retiring on or after July 1, 1990, at
31 age 55 or over but less than age 60, having at least 30 years
32 of service, or an employee retiring on or after the effective
33 date of this amendatory Act of 1997, at age 55 or over but
34 less than age 60, having at least 25 years of service, shall
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1 not be subject to the reduction in retirement annuity because
2 of retirement below age 60.
3 However, in the case of an employee who retired on or
4 after January 1, 1985 but before January 1, 1988, at age 55
5 or older and with at least 35 years of service, and who was
6 subject under this subsection (a) to the reduction in
7 retirement annuity because of retirement below age 60, that
8 reduction shall cease to be effective January 1, 1991, and
9 the retirement annuity shall be recalculated accordingly.
10 Any employee who withdraws on or after July 1, 1990, with
11 20 or more years of service, may elect to receive, in lieu of
12 any other employee annuity provided in this Section, an
13 annuity for life equal to 2.20% for each year of service of
14 the highest average annual salary for any 4 consecutive years
15 within the last 10 years of service immediately preceding the
16 date of withdrawal, to begin not earlier than upon attained
17 age of 55 years, if under such age at withdrawal, reduced
18 0.25% for each full month or fractional part thereof that his
19 attained age when annuity is to begin is less than 60; except
20 that an employee retiring at age 55 or over but less than age
21 60, having at least 30 years of service, shall not be subject
22 to the reduction in retirement annuity because of retirement
23 below age 60.
24 Any employee who withdraws on or after the effective date
25 of this amendatory Act of 1997 with 20 or more years of
26 service may elect to receive, in lieu of any other employee
27 annuity provided in this Section, an annuity for life equal
28 to 2.20%, for each year of service, 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 attainment of age
32 55 (age 50 if the employee has at least 30 years of service),
33 reduced 0.25% for each full month or remaining fractional
34 part thereof that the employee's attained age when annuity is
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1 to begin is less than 60; except that an employee retiring at
2 age 50 or over with at least 30 years of service or at age 55
3 or over with at least 25 years of service shall not be
4 subject to the reduction in retirement annuity because of
5 retirement below age 60.
6 The maximum annuity payable under this paragraph (a) of
7 this Section shall not exceed 70% of highest average annual
8 salary in the case of an employee who withdraws prior to July
9 1, 1971, and 75% if withdrawal takes place on or after July
10 1, 1971. For the purpose of the minimum annuity provided in
11 said paragraphs $1,500 shall be considered the minimum annual
12 salary for any year; and the maximum annual salary to be
13 considered for the computation of such annuity shall be
14 $4,800 for any year prior to 1953, $6,000 for the years 1953
15 to 1956, inclusive, and the actual annual salary, as salary
16 is defined in this Article, for any year thereafter.
17 (b) For an employee receiving disability benefit, his
18 salary for annuity purposes under this Section shall, for all
19 periods of disability benefit subsequent to the year 1956, be
20 the amount on which his disability benefit was based.
21 (c) An employee with 20 or more years of service, whose
22 entire disability benefit credit period expires prior to
23 attainment of age 55 while still disabled for service, shall
24 be entitled upon withdrawal to the larger of (1) the minimum
25 annuity provided above assuming that he is then age 55, and
26 reducing such annuity to its actuarial equivalent at his
27 attained age on such date, or (2) the annuity provided from
28 his age and service and prior service annuity credits.
29 (d) The minimum annuity provisions as aforesaid shall
30 not apply to any former employee receiving an annuity from
31 the fund, and who re-enters service as an employee, unless he
32 renders at least 3 years of additional service after the date
33 of re-entry.
34 (e) An employee in service on July 1, 1947, or who
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1 became a contributor after July 1, 1947 and prior to July 1,
2 1950, or who shall become a contributor to the fund after
3 July 1, 1950 prior to attainment of age 70, who withdraws
4 after age 65 with less than 20 years of service, for whom the
5 annuity has been fixed under the foregoing Sections of this
6 Article shall, in lieu of the annuity so fixed, receive an
7 annuity as follows:
8 Such amount as he could have received had the accumulated
9 amounts for annuity been improved with interest at the
10 effective rate to the date of his withdrawal, or to
11 attainment of age 70, whichever is earlier, and had the city
12 contributed to such earlier date for age and service annuity
13 the amount that would have been contributed had he been under
14 age 65, after the date his annuity was fixed in accordance
15 with this Article, and assuming his annuity were computed
16 from such accumulations as of his age on such earlier date.
17 The annuity so computed shall not exceed the annuity which
18 would be payable under the other provisions of this Section
19 if the employee was credited with 20 years of service and
20 would qualify for annuity thereunder.
21 (f) In lieu of the annuity provided in this or in any
22 other Section of this Article, an employee having attained
23 age 65 with at least 15 years of service who withdraws from
24 service on or after July 1, 1971 and whose annuity computed
25 under other provisions of this Article is less than the
26 amount provided under this paragraph shall be entitled to
27 receive a minimum annual annuity for life equal to 1% of the
28 highest average annual salary for any 4 consecutive years
29 within the last 10 years of service immediately preceding
30 retirement for each year of his service plus the sum of $25
31 for each year of service. Such annual annuity shall not
32 exceed the maximum percentages stated under paragraph (a) of
33 this Section of such highest average annual salary.
34 (f-1) Instead of any other retirement annuity provided
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1 in this Article, an employee who has at least 10 years of
2 service and withdraws from service on or after January 1,
3 1999 may elect to receive a retirement annuity for life,
4 beginning no earlier than upon attainment of age 60, equal to
5 2.2% of final average salary for each year of service,
6 subject to a maximum of 75% of final average salary. For the
7 purpose of calculating this annuity, "final average salary"
8 means the highest average annual salary for any 4 consecutive
9 years in the last 10 years of service.
10 (g) Any annuity payable under the preceding subsections
11 of this Section 11-134 shall be paid in equal monthly
12 installments.
13 (h) The amendatory provisions of part (a) and (f) of
14 this Section shall be effective July 1, 1971 and apply in the
15 case of every qualifying employee withdrawing on or after
16 July 1, 1971.
17 (i) The amendatory provisions of this amendatory Act of
18 1985 relating to the discount of annuity because of
19 retirement prior to attainment of age 60 and increasing the
20 retirement formula for those born before January 1, 1936,
21 shall apply only to qualifying employees withdrawing on or
22 after August 16, 1985.
23 (j) Beginning on January 1, 1999 the effective date of
24 this amendatory Act of 1997, the minimum amount of employee's
25 annuity shall be $850 $550 per month for life for the
26 following classes of employees, without regard to the fact
27 that withdrawal occurred prior to the effective date of this
28 amendatory Act of 1998 1997:
29 (1) any employee annuitant alive and receiving a
30 life annuity on the effective date of this amendatory Act
31 of 1998 1997, except a reciprocal annuity;
32 (2) any employee annuitant alive and receiving a
33 term annuity on the effective date of this amendatory Act
34 of 1998 1997, except a reciprocal annuity;
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1 (3) any employee annuitant alive and receiving a
2 reciprocal annuity on the effective date of this
3 amendatory Act of 1998 1997, whose service in this fund
4 is at least 5 years;
5 (4) any employee annuitant withdrawing after age 60
6 on or after the effective date of this amendatory Act of
7 1998 1997, with at least 10 years of service in this
8 fund.
9 The increases granted under items (1), (2) and (3) of
10 this subsection (j) shall not be limited by any other Section
11 of this Act.
12 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
13 (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
14 Sec. 11-134.1. Automatic increase in annuity.
15 (a) An employee who retired or retires from service
16 after December 31, 1963, and before January 1, 1987, having
17 attained age 60 or more, shall, in the month of January of
18 the year following the year in which the first anniversary of
19 retirement occurs, have the amount of his then fixed and
20 payable monthly annuity increased by 1 1/2%, and such first
21 fixed annuity as granted at retirement increased by a further
22 1 1/2% in January of each year thereafter. Beginning with
23 January of the year 1972, such increases shall be at the rate
24 of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
25 January, 1984, such increases shall be at the rate of 3%.
26 Beginning in January of 1999, such increases shall be at the
27 rate of 3% of the currently payable monthly annuity,
28 including any increases previously granted under this
29 Article. An Such employee who retires on annuity after
30 December 31, 1963 and before January 1, 1987, but prior to
31 age 60, shall receive such increases beginning with January
32 of the year immediately following the year in which he
33 attains the age of 60 years.
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1 An employee who retires from service on or after January
2 1, 1987 shall, upon the first annuity payment date following
3 the first anniversary of the date of retirement, or upon the
4 first annuity payment date following attainment of age 60,
5 whichever occurs later, have his then fixed and payable
6 monthly annuity increased by 3%, and such annuity shall be
7 increased by an additional 3% of the original fixed annuity
8 on the same date each year thereafter. Beginning in January
9 of 1999, such increases shall be at the rate of 3% of the
10 currently payable monthly annuity, including any increases
11 previously granted under this Article.
12 (b) The foregoing provision is not applicable to an
13 employee retiring and receiving a term annuity, as defined in
14 this Article, nor to any otherwise qualified employee who
15 retires before he shall have made employee contributions (at
16 the 1/2 of 1% rate as hereinafter provided) for the purposes
17 of this additional annuity for not less than the equivalent
18 of one full year. Such employee, however, shall make
19 arrangement to pay to the fund a balance of such 1/2 of 1%
20 contributions, based on his final salary, as will bring such
21 1/2 of 1% contributions, computed without interest, to the
22 equivalent of or completion of one year's contributions.
23 Beginning with the month of January, 1964, each employee
24 shall contribute by means of salary deductions 1/2 of 1% of
25 each salary payment, concurrently with and in addition to the
26 employee contributions otherwise made for annuity purposes.
27 Each such additional employee contribution shall be
28 credited to an account in the prior service annuity reserve,
29 to be used, together with city contributions, to defray the
30 cost of the specified annuity increments. Any balance as of
31 the beginning of each calendar year existing in such account
32 shall be credited with interest at the rate of 3% per annum.
33 Such employee contributions shall not be subject to
34 refund, except to an employee who resigns or is discharged
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1 and applies for refund under this Article, and also in cases
2 where a term annuity becomes payable.
3 In such cases the employee contributions shall be
4 refunded him, without interest, and charged to the
5 aforementioned account in the prior service annuity reserve.
6 (Source: P.A. 84-1472.)
7 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
8 Sec. 11-134.2. Reversionary annuity.
9 (a) An employee, prior to retirement on annuity, may
10 elect to take a lesser amount of annuity and provide, with
11 the actuarial value of the amount by which his annuity is
12 reduced, a reversionary annuity for a wife, husband, parent,
13 child, brother or sister. The option shall be exercised by
14 filing a written designation with the board prior to
15 retirement, and may be revoked by the employee at any time
16 before retirement. The death of the employee prior to his
17 retirement shall automatically void the option.
18 (b) The death of the designated reversionary annuitant
19 prior to the employee's retirement shall automatically void
20 the option. If the reversionary annuitant dies after the
21 employee's retirement, and before the death of the employee
22 annuitant, the reduced annuity being paid to the retired
23 employee annuitant shall be increased to the amount of
24 annuity before reduction for the reversionary annuity and no
25 reversionary annuity shall be payable.
26 The option is subject to the further condition that no
27 reversionary annuity shall be paid to a parent, child,
28 brother, or sister if the employee dies before the expiration
29 of 365 730 days from the date his written designation was
30 filed with the board, even though he has retired and is
31 receiving a reduced annuity.
32 (c) The employee exercising this option shall not reduce
33 his retirement annuity by more than $400 $200 per month, or
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1 elect to provide a reversionary annuity of less than $50 per
2 month. No option shall be permitted if the reversionary
3 annuity for a widow, when added to the widow's annuity
4 payable under this Article, exceeds 100% 80% of the reduced
5 annuity payable to the employee.
6 (d) A reversionary annuity shall begin on the day
7 following the death of the annuitant and shall be paid as
8 provided in Section 11-124.
9 (e) The increases in annuity provided in Section
10 11-134.1 of this Article shall, as to an employee so electing
11 a reduced annuity, relate to the amount of the original
12 annuity, and such amount shall constitute the annuity on
13 which such increases shall be based.
14 (f) For annuities elected after June 30, 1983, the
15 amount of the monthly reversionary annuity shall be
16 determined by multiplying the amount of the monthly reduction
17 in the employee's annuity by the factor in the following
18 table based on the age of the employee and the difference in
19 the age of the employee and the age of the reversionary
20 annuitant at the starting date of the employee's annuity:
21 Employee's Age
22 Reversionary
23 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
24 Over
25 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
26 younger
27 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
28 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
29 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
30 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
31 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
32 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
33 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
34 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
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1 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
2 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
3 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
4 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
5 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
6 older
7 (Source: P.A. 90-31, eff. 6-27-97.)
8 (40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
9 Sec. 11-134.3. Automatic increases in annuity for certain
10 heretofore retired participants. A retired employee who (a)
11 is receiving annuity based on a service credit of 20 or more
12 years regardless of age at retirement or based on a service
13 credit of 15 or more years with retirement at age 55 or over,
14 and (b) does not qualify for the automatic increases in
15 annuity provided for in Section 11-134.1 of this Article, and
16 (c) elects to make a contribution to the Fund at a time and
17 manner prescribed by the Retirement Board, of a sum equal to
18 1% of the amount of final monthly salary times the number of
19 full years of service on which the annuity was based in those
20 cases where the annuity was computed on the money purchase
21 formula, and in those cases in which the annuity was computed
22 under the minimum annuity formula provisions of this Article
23 a sum equal to 1% of the average monthly salary on which the
24 annuity was based times such number of full years of service,
25 shall have his original fixed and payable monthly amount of
26 annuity increased in January of the year following the year
27 in which he attains the age of 65 years, if such age of 65
28 years is attained in the year 1969 or later, by an amount
29 equal to 1 1/2%, and by an equal additional 1 1/2% in January
30 of each year thereafter. Beginning with January of the year
31 1972, such increases shall be at the rate of 2% in lieu of
32 the aforesaid specified 1 1/2%. Beginning January, 1984,
33 such increases shall be at the rate of 3%. Beginning in
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1 January of 1999, such increases shall be at the rate of 3% of
2 the currently payable monthly annuity, including any
3 increases previously granted under this Article.
4 In those cases in which the retired employee receiving
5 annuity has attained the age of 66 or more years in the year
6 1969, he shall have such annuity increased in January of the
7 year 1970 by an amount equal to 1 1/2% multiplied by the
8 number equal to the number of months of January elapsing from
9 and including January of the year immediately following the
10 year he attained the age of 65 years if retired at or prior
11 to age 65, or from and including January of the year
12 immediately following the year of retirement if retired at an
13 age greater than 65 years, to and including January of the
14 year 1970, and by an equal additional 1 1/2% in January of
15 each year thereafter. Beginning with January of the year
16 1972, such increases shall be at the rate of 2% in lieu of
17 the aforesaid specified 1 1/2%. Beginning January, 1984,
18 such increases shall be at the rate of 3%. Beginning in
19 January of 1999, such increases shall be at the rate of 3% of
20 the currently payable monthly annuity, including any
21 increases previously granted under this Article.
22 To defray the annual cost of such increases, the annual
23 interest income of the Fund, accruing from investments held
24 by the Fund, exclusive of gains or losses on sales or
25 exchanges of assets during the year, over and above 4% a
26 year, shall be used to the extent necessary and available to
27 finance the cost of such increases for the following year,
28 and such amount shall be transferred as of the end of each
29 year, beginning with the year 1969, to a Fund account
30 designated as the Supplementary Payment Reserve from the
31 Investment and Interest Reserve set forth in Sec. 11-210. The
32 sums contributed by annuitants as provided for in this
33 Section shall also be placed in the aforesaid Supplementary
34 Payment Reserve and shall be applied for and used for the
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1 purposes of such Fund account, together with the aforesaid
2 interest.
3 In the event the monies in the Supplementary Payment
4 Reserve in any year arising from: (1) the available interest
5 income as defined hereinbefore and accruing in the preceding
6 year above 4% a year and (2) the contributions by retired
7 persons, as set forth hereinbefore, are insufficient to make
8 the total payments to all persons estimated to be entitled to
9 the annuity increases specified hereinbefore, then (3) any
10 interest earnings over 4% a year beginning with the year 1969
11 which were not previously used to finance such increases and
12 which were transferred to the Prior Service Annuity Reserve
13 may be used to the extent necessary and available to provide
14 sufficient funds to finance such increases for the current
15 year, and such sums shall be transferred from the Prior
16 Service Annuity Reserve.
17 In the event the total monies available in the
18 Supplementary Payment Reserve from the preceding indicated
19 sources are insufficient to make the total payments to all
20 persons entitled to such increases for the year, a
21 proportionate amount computed as the ratio of the monies
22 available to the total of the total payments for that year
23 shall be paid to each person for that year.
24 The Fund shall be obligated for the payment of the
25 increases in annuity as provided for in this Section only to
26 the extent that the assets for such purpose, as specified
27 herein, are available.
28 (Source: P.A. 83-802.)
29 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
30 Sec. 11-145.1. Minimum annuities for widows. The widow
31 otherwise eligible for widow's annuity under other Sections
32 of this Article 11, of an employee hereinafter described, who
33 retires from service or dies while in the service subsequent
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1 to the effective date of this amendatory provision, and for
2 which widow the amount of widow's annuity and widow's prior
3 service annuity combined, fixed or provided for such widow
4 under other provisions of said Article 11 is less than the
5 amount hereinafter provided in this section, shall, from and
6 after the date her otherwise provided annuity would begin, in
7 lieu of such otherwise provided widow's and widow's prior
8 service annuity, be entitled to the following indicated
9 amount of annuity:
10 (a) The widow of any employee who dies while in service
11 on or after the date on which he attains age 60 if the death
12 occurs before July 1, 1990, or on or after the date on which
13 he attains age 55 if the death occurs on or after July 1,
14 1990, with at least 20 years of service, or on or after the
15 date on which he attains age 50 if the death occurs on or
16 after the effective date of this amendatory Act of 1997 with
17 at least 30 years of service, shall be entitled to an annuity
18 equal to one-half of the amount of annuity which her deceased
19 husband would have been entitled to receive had he withdrawn
20 from the service on the day immediately preceding the date of
21 his death, conditional upon such widow having attained age 60
22 on or before such date if the death occurs before July 1,
23 1990, or age 55 if the death occurs on or after July 1, 1990,
24 or age 50 if the death occurs on or after January 1, 1998 and
25 the employee is age 50 or over with at least 30 years of
26 service or age 55 or over with at least 25 years of service.
27 Except as provided in subsection (j), the widow's annuity
28 shall not, however, exceed the sum of $500 a month if the
29 employee's death in service occurs before January 23, 1987.
30 The widow's annuity shall not be limited to a maximum dollar
31 amount if the employee's death in service occurs on or after
32 January 23, 1987.
33 If the employee dies in service before July 1, 1990, and
34 if such widow of such described employee shall not be 60 or
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1 more years of age on such date of death, the amount provided
2 in the immediately preceding paragraph for a widow 60 or more
3 years of age, shall, in the case of such younger widow, be
4 reduced by 0.25% for each month that her then attained age is
5 less than 60 years if the employee was born before January 1,
6 1936, or dies in service on or after January 1, 1988, or 0.5%
7 for each month that her then attained age is less than 60
8 years if the employee was born on or after January 1, 1936
9 and dies in service before January 1, 1988.
10 If the employee dies in service on or after July 1, 1990,
11 and if the widow of the employee has not attained age 55 on
12 or before the employee's date of death, the amount otherwise
13 provided in this subsection (a) shall be reduced by 0.25% for
14 each month that her then attained age is less than 55 years;
15 except that if the employee dies in service on or after
16 January 1, 1998 at age 50 or over with at least 30 years of
17 service or at age 55 or over with at least 25 years of
18 service, there shall be no reduction due to the widow's age
19 if she has attained age 50 on or before the employee's date
20 of death, and if the widow has not attained age 50 on or
21 before the employee's date of death the amount otherwise
22 provided in this subsection (a) shall be reduced by 0.25% for
23 each month that her then attained age is less than 50 years.
24 (b) The widow of any employee who dies subsequent to the
25 date of his retirement on annuity, and who so retired on or
26 after the date on which he attained age 60 if retirement
27 occurs before July 1, 1990, or on or after the date on which
28 he attained age 55 if retirement occurs on or after July 1,
29 1990, with at least 20 years of service, or on or after the
30 date on which he attained age 50 if the retirement occurs on
31 or after the effective date of this amendatory Act of 1997
32 with at least 30 years of service, shall be entitled to an
33 annuity equal to one-half of the amount of annuity which her
34 deceased husband received as of the date of his retirement on
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1 annuity, conditional upon such widow having attained age 60
2 on or before the date of her husband's retirement on annuity
3 if retirement occurs before July 1, 1990, or age 55 if
4 retirement occurs on or after July 1, 1990, or age 50 if the
5 retirement on annuity occurs on or after January 1, 1998 and
6 the employee is age 50 or over with at least 30 years of
7 service or age 55 or over with at least 25 years of service.
8 Except as provided in subsection (j), this widow's annuity
9 shall not, however, exceed the sum of $500 a month if the
10 employee's death occurs before January 23, 1987. The widow's
11 annuity shall not be limited to a maximum dollar amount if
12 the employee's death occurs on or after January 23, 1987,
13 regardless of the date of retirement; provided that, if
14 retirement was before January 23, 1987, the employee or
15 eligible spouse repays the excess spouse refund with interest
16 at the effective rate from the date of refund to the date of
17 repayment.
18 If the date of the employee's retirement on annuity is
19 before July 1, 1990, and if such widow of such described
20 employee shall not have attained such age of 60 or more years
21 on such date of her husband's retirement on annuity, the
22 amount provided in the immediately preceding paragraph for a
23 widow 60 or more years of age on the date of her husband's
24 retirement on annuity, shall, in the case of such then
25 younger widow, be reduced by 0.25% for each month that her
26 then attained age was less than 60 years if the employee was
27 born before January 1, 1936, or withdraws from service on or
28 after January 1, 1988, or 0.5% for each month that her then
29 attained age was less than 60 years if the employee was born
30 on or after January 1, 1936 and withdraws from service before
31 January 1, 1988.
32 If the date of the employee's retirement on annuity is on
33 or after July 1, 1990, and if the widow of the employee has
34 not attained age 55 by the date of the employee's retirement
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1 on annuity, the amount otherwise provided in this subsection
2 (b) shall be reduced by 0.25% for each month that her then
3 attained age is less than 55 years; except that if the
4 employee retires on annuity on or after January 1, 1998 at
5 age 50 or over with at least 30 years of service or at age 55
6 or over with at least 25 years of service, there shall be no
7 reduction due to the widow's age if she has attained age 50
8 on or before the employee's date of death, and if the widow
9 has not attained age 50 on or before the employee's date of
10 death the amount otherwise provided in this subsection (b)
11 shall be reduced by 0.25% for each month that her then
12 attained age is less than 50 years.
13 (c) The foregoing provisions relating to minimum
14 annuities for widows shall not apply to the widow of any
15 former employee receiving an annuity from the fund on August
16 2, 1965 or on the effective date of this amendatory
17 provision, who re-enters service as a former employee, unless
18 such employee renders at least 3 years of additional service
19 after the date of re-entry.
20 (d) (Blank).
21 (e) (Blank).
22 (f) The amendments to this Section by this amendatory
23 Act of 1985, relating to changing the discount because of age
24 from 1/2 of 1% to 0.25% per month for widows of employees
25 born before January 1, 1936, shall apply only to qualifying
26 widows whose husbands die while in the service on or after
27 August 16, 1985 or withdraw and enter on annuity on or after
28 August 16, 1985.
29 (g) Beginning on January 1, 1999 the effective date of
30 this amendatory Act of 1997, the minimum amount of widow's
31 annuity shall be $800 $500 per month for life for the
32 following classes of widows, without regard to the fact that
33 the death of the employee occurred prior to the effective
34 date of this amendatory Act of 1998 1997:
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1 (1) any widow annuitant alive and receiving a term
2 annuity on the effective date of this amendatory Act of
3 1998 1997, except a reciprocal annuity;
4 (2) any widow annuitant alive and receiving a life
5 annuity on the effective date of this amendatory Act of
6 1998 1997, except a reciprocal annuity;
7 (3) any widow annuitant alive and receiving a
8 reciprocal annuity on the effective date of this
9 amendatory Act of 1998 1997, whose employee spouse's
10 service in this fund was at least 5 years;
11 (4) the widow of an employee with at least 10 years
12 of service in this fund who dies after retirement, if the
13 retirement occurred prior to the effective date of this
14 amendatory Act of 1998 1997;
15 (5) the widow of an employee with at least 10 years
16 of service in this fund who dies after retirement, if
17 withdrawal occurs on or after the effective date of this
18 amendatory Act of 1998 1997;
19 (6) the widow of an employee who dies in service
20 with at least 5 years of service in this fund, if the
21 death in service occurs on or after the effective date of
22 this amendatory Act of 1998 1997.
23 The increases granted under items (1), (2), (3) and (4)
24 of this subsection (g) shall not be limited by any other
25 Section of this Act.
26 (h) The widow of an employee who retired or died in
27 service on or after January 1, 1985 and before July 1, 1990,
28 at age 55 or older, and with at least 35 years of service
29 credit, shall be entitled to have her widow's annuity
30 increased, effective January 1, 1991, to an amount equal to
31 50% of the retirement annuity that the deceased employee
32 received on the date of retirement, or would have been
33 eligible to receive if he had retired on the day preceding
34 the date of his death in service, provided that if the widow
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1 had not attained age 60 by the date of the employee's
2 retirement or death in service, the amount of the annuity
3 shall be reduced by 0.25% for each month that her then
4 attained age was less than age 60 if the employee's
5 retirement or death in service occurred on or after January
6 1, 1988, or by 0.5% for each month that her attained age is
7 less than age 60 if the employee's retirement or death in
8 service occurred prior to January 1, 1988. However, in cases
9 where a refund of excess contributions for widow's annuity
10 has been paid by the Fund, the increase in benefit provided
11 by this subsection (h) shall be contingent upon repayment of
12 the refund to the Fund with interest at the effective rate
13 from the date of refund to the date of payment.
14 (i) If a deceased employee is receiving a retirement
15 annuity at the time of death and that death occurs on or
16 after June 27, the effective date of this amendatory Act of
17 1997, the widow may elect to receive, in lieu of any other
18 annuity provided under this Article, 50% of the deceased
19 employee's retirement annuity at the time of death reduced by
20 0.25% for each month that the widow's age on the date of
21 death is less than 55; except that if the employee dies on or
22 after January 1, 1998 and withdrew from service on or after
23 June 27, 1997 at age 50 or over with at least 30 years of
24 service or at age 55 or over with at least 25 years of
25 service, there shall be no reduction due to the widow's age
26 if she has attained age 50 on or before the employee's date
27 of death, and if the widow has not attained age 50 on or
28 before the employee's date of death the amount otherwise
29 provided in this subsection (i) shall be reduced by 0.25% for
30 each month that her age on the date of death is less than 50
31 years. However, in cases where a refund of excess
32 contributions for widow's annuity has been paid by the Fund,
33 the benefit provided by this subsection (i) is contingent
34 upon repayment of the refund to the Fund with interest at the
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1 effective rate from the date of refund to the date of
2 payment.
3 (j) 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 shall cease to
6 apply, beginning with the first annuity payment after the
7 effective date of this amendatory Act of 1997; except that if
8 a refund of excess contributions for widow's annuity has been
9 paid by the Fund, the increase resulting from this subsection
10 (j) shall not begin before the refund has been repaid to the
11 Fund, together with interest at the effective rate from the
12 date of the refund to the date of repayment.
13 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
14 (40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
15 Sec. 11-153. Child's annuity.
16 (a) A "Child's Annuity" shall be payable monthly after
17 the death of an employee parent to an unmarried child until
18 the child's attainment of age 18 or marriage, whichever event
19 shall first occur, under the following conditions, if the
20 child was born or in esse before the employee attained age
21 65, and before he withdrew from service:
22 (1) upon death resulting from injury incurred in
23 the performance of an act of duty;
24 (2) upon death in service from any cause other than
25 injury incurred in the performance of duty, if the
26 employee has at least 4 years of service after the date
27 of his original entry into service, and at least 2 years
28 after the date of his latest re-entry;
29 (3) upon death of an employee who withdraws from
30 service after age 55 (or after age 50 with at least 30
31 years of service if withdrawal is on or after June 27,
32 1997) and who has entered upon or is eligible for
33 annuity.
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1 Payment shall be made as provided in Section 11-124.
2 (b) After July 24, 1967, an adopted child shall be
3 entitled to the same child's annuity benefits provided for
4 natural children in this Article, if:
5 (1) the child was legally adopted by the employee
6 at least one year prior to the death of the employee; and
7 (2) the child was adopted before the employee
8 attained age 55.
9 (Source: P.A. 90-31, eff. 6-27-97.)
10 (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
11 Sec. 11-169. Financing; tax levy.
12 (a) Except as provided in subsection (f) of this
13 Section, the city council of the city shall levy a tax
14 annually upon all taxable property in the city at the rate
15 that will produce a sum which, when added to the amounts
16 deducted from the salaries of the employees or otherwise
17 contributed by them and the amounts deposited under
18 subsection (f), will be sufficient for the requirements of
19 this Article. For the years prior to the year 1950 the tax
20 rate shall be as provided for under "The 1935 Act".
21 Beginning with the year 1950 to and including the year 1969
22 such tax shall be not more than .036% annually of the value,
23 as equalized or assessed by the Department of Revenue, of all
24 taxable property within such city. Beginning with the year
25 1970 and each year thereafter the city shall levy a tax
26 annually at a rate on the dollar of the value, as equalized
27 or assessed by the Department of Revenue of all taxable
28 property within such city that will produce, when extended,
29 not to exceed an amount equal to the total amount of
30 contributions by the employees to the fund made in the
31 calendar year 2 years prior to the year for which the annual
32 applicable tax is levied, multiplied by 1.1 for the years
33 1970, 1971 and 1972; 1.145 for the year 1973; 1.19 for the
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1 year 1974; 1.235 for the year 1975; 1.280 for the year 1976;
2 1.325 for the year 1977; and 1.370 for the years 1978 through
3 1998; and 1.000 for the year 1999 1978 and for each year
4 thereafter.
5 The tax shall be levied and collected in like manner with
6 the general taxes of the city, and shall be exclusive of and
7 in addition to the amount of tax the city is now or may
8 hereafter be authorized to levy for general purposes under
9 any laws which may limit the amount of tax which the city may
10 levy for general purposes. The county clerk of the county in
11 which the city is located, in reducing tax levies under the
12 provisions of any Act concerning the levy and extension of
13 taxes, shall not consider the tax herein provided for as a
14 part of the general tax levy for city purposes, and shall not
15 include the same within any limitation of the per cent of the
16 assessed valuation upon which taxes are required to be
17 extended for such city.
18 Revenues derived from such tax shall be paid to the city
19 treasurer of the city as collected and held by him for the
20 benefit of the fund.
21 If the payments on account of taxes are insufficient
22 during any year to meet the requirements of this Article, the
23 city may issue tax anticipation warrants against the current
24 tax levy.
25 (b) On or before January 10, annually, the board shall
26 notify the city council of the requirement of this Article
27 that the tax herein provided shall be levied for that current
28 year. The board shall compute the amounts necessary for the
29 purposes of this fund to be credited to the reserves
30 established and maintained as herein provided, and shall make
31 an annual determination of the amount of the required city
32 contributions; and certify the results thereof to the city
33 council.
34 (c) In respect to employees of the city who are
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1 transferred to the employment of a park district by virtue of
2 "Exchange of Functions Act of 1957" the corporate authorities
3 of the park district shall annually levy a tax upon all the
4 taxable property in the park district at such rate per cent
5 of the value of such property, as equalized or assessed by
6 the Department of Revenue, as shall be sufficient, when added
7 to the amounts deducted from their salaries and otherwise
8 contributed by them, to provide the benefits to which they
9 and their dependents and beneficiaries are entitled under
10 this Article. The city shall not levy a tax hereunder in
11 respect to such employees.
12 The tax so levied by the park district shall be in
13 addition to and exclusive of all other taxes authorized to be
14 levied by the park district for corporate, annuity fund, or
15 other purposes. The county clerk of the county in which the
16 park district is located, in reducing any tax levied under
17 the provisions of any Act concerning the levy and extension
18 of taxes shall not consider such tax as part of the general
19 tax levy for park purposes, and shall not include the same in
20 any limitation of the per cent of the assessed valuation upon
21 which taxes are required to be extended for the park
22 district. The proceeds of the tax levied by the park
23 district, upon receipt by the district, shall be immediately
24 paid over to the city treasurer of the city for the uses and
25 purposes of the fund.
26 The various sums to be contributed by the city and
27 allocated for the purposes of this Article, and any interest
28 to be contributed by the city, shall be taken from the
29 revenue derived from the taxes authorized in this Section,
30 tax and no money of such city derived from any source other
31 than the levy and collection of those taxes the tax or the
32 sale of tax anticipation warrants in accordance with the
33 provisions of this Article shall be used to provide revenue
34 for this Article, except as expressly provided in this
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1 Section.
2 If it is not possible for the city to make contributions
3 for age and service annuity and widow's annuity concurrently
4 with the employee's contributions made for such purposes,
5 such city shall make such contributions as soon as possible
6 and practicable thereafter with interest thereon at the
7 effective rate to the time they shall be made.
8 (d) With respect to employees whose wages are funded as
9 participants under the Comprehensive Employment and Training
10 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
11 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
12 subsequent to October 1, 1978, and in instances where the
13 board has elected to establish a manpower program reserve,
14 the board shall compute the amounts necessary to be credited
15 to the manpower program reserves established and maintained
16 as herein provided, and shall make a periodic determination
17 of the amount of required contributions from the City to the
18 reserve to be reimbursed by the federal government in
19 accordance with rules and regulations established by the
20 Secretary of the United States Department of Labor or his
21 designee, and certify the results thereof to the City
22 Council. Any such amounts shall become a credit to the City
23 and will be used to reduce the amount which the City would
24 otherwise contribute during succeeding years for all
25 employees.
26 (e) In lieu of establishing a manpower program reserve
27 with respect to employees whose wages are funded as
28 participants under the Comprehensive Employment and Training
29 Act of 1973, as authorized by subsection (d), the board may
30 elect to establish a special municipality contribution rate
31 for all such employees. If this option is elected, the City
32 shall contribute to the Fund from federal funds provided
33 under the Comprehensive Employment and Training Act program
34 at the special rate so established and such contributions
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1 shall become a credit to the City and be used to reduce the
2 amount which the City would otherwise contribute during
3 succeeding years for all employees.
4 (f) In lieu of levying all or a portion of the tax
5 required under this Section in any year, the city may deposit
6 with the city treasurer no later than March 1 of that year
7 for the benefit of the fund, to be held in accordance with
8 this Article, an amount that, together with the taxes levied
9 under this Section for that year, is not less than the amount
10 of the city contributions for that year as certified by the
11 board to the city council. The deposit may be derived from
12 any source legally available for that purpose, including, but
13 not limited to, the proceeds of city borrowings. The making
14 of a deposit shall satisfy fully the requirements of this
15 Section for that year to the extent of the amounts so
16 deposited. Amounts deposited under this subsection may be
17 used by the fund for any of the purposes for which the
18 proceeds of the tax levied by the city under this Section may
19 be used, including the payment of any amount that is
20 otherwise required by this Article to be paid from the
21 proceeds of that tax.
22 (Source: P.A. 90-31, eff. 6-27-97.)
23 (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
24 Sec. 11-181. Board created. A board of 8 5 members shall
25 constitute the a board of trustees authorized to carry out
26 the provisions of this Article. The board shall be known as
27 the Retirement Board of the Laborers' and Retirement Board
28 Employees' Annuity and Benefit Fund of the city. The board
29 shall consist of 5 3 persons appointed and 2 employees and
30 one annuitant elected in the manner hereinafter prescribed.
31 The 3 appointed members of the board shall be appointed
32 as follows:
33 One member shall be appointed by the comptroller of the
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1 such city, who may be himself or anyone chosen from among
2 employees of the city who are versed in the affairs of the
3 comptroller's office; one member shall be appointed by the
4 City Treasurer of the such city, who may be himself or a
5 person chosen from among employees of the city who are versed
6 in the affairs of the City Treasurer's office; one member
7 shall be an employee of the city appointed by the president
8 of the local labor organization representing a majority of
9 the employees participating in the Fund; and 2 members shall
10 be one person appointed by the civil service commission or
11 the Department of Personnel of the such city from among
12 employees of the such city who are versed in the affairs of
13 the civil service commission's office or the Department of
14 Personnel.
15 The member appointed by the comptroller shall hold office
16 for a term ending on December 1st of the first year following
17 the year of appointment. The member appointed by the City
18 Treasurer shall hold office for a term ending on December 1st
19 of the second year following the year of appointment. The
20 member appointed by the civil service commission shall hold
21 office for a term ending on the first day in the month of
22 December of the third year following the year of appointment.
23 The additional member appointed by the civil service
24 commission under this amendatory Act of 1998 shall hold
25 office for an initial term ending on December 1, 2000, and
26 the member appointed by the labor organization president
27 shall hold office for an initial term ending on December 1,
28 2001. Thereafter each appointive member shall be appointed
29 by the officer or body that appointed his predecessor, for a
30 term of 3 years.
31 The 2 employee members of the board shall be elected as
32 follows:
33 Within 30 days from and after the appointive members have
34 been appointed and have qualified, the appointive members
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1 shall arrange for and hold an election.
2 One employee shall be elected for a term ending on
3 December 1st of the first year next following the effective
4 date; one for a term ending on December 1st of the following
5 year.
6 The initial annuitant member shall be appointed by the
7 other members of the board for an initial term ending on
8 December 1, 1999. Thereafter, the annuitant member shall be
9 elected for a 2-year term ending on December 1st of the next
10 odd-numbered year.
11 The members of the retirement board of a laborers' and
12 retirement board employees' annuity and benefit fund holding
13 office in a city at the time this Article becomes effective,
14 including elective and appointive members, shall continue in
15 office until the expiration of their terms and until their
16 respective successors are elected or appointed and have
17 qualified.
18 (Source: P.A. 83-499.)
19 (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
20 Sec. 11-182. Board elections; qualification; oath.
21 (a) In each year, the board shall conduct a regular
22 election, under rules adopted by it, at least 30 days prior
23 to the expiration of the term of the employee member whose
24 term next expires, for the election of a successor for a term
25 of 2 years. Each employee member and his or her successor
26 shall be an employee who holds a position by certification
27 and appointment as a result of competitive civil service
28 examination as distinguished from temporary appointment, or
29 so holds a position which is not exempt from the classified
30 service or the personnel ordinance of a city that has adopted
31 a career service ordinance, for a period of not less than 5
32 years prior to date of election. At any such election,
33 including the initial election and special elections to fill
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1 vacancies in such office all persons who are employees at the
2 time such election is held, shall have a right to vote. The
3 ballot shall be of secret character.
4 (b) In each odd-numbered year, the board shall conduct a
5 regular election, under rules adopted by it, at least 30 days
6 prior to the expiration of the term of the annuitant member,
7 for the election of a successor for a term of 2 years. Each
8 annuitant member and his or her successor shall be a former
9 employee receiving a retirement (age and service or prior
10 service) annuity from the Fund. At any such election, all
11 persons who are receiving a retirement (age and service or
12 prior service) annuity from the Fund at the time the election
13 is held have a right to vote. The ballot shall be of secret
14 character.
15 (c) Any appointive or elective member of the board shall
16 hold office until his or her successor is elected and
17 qualified.
18 Any person elected or appointed as a member of the board
19 shall qualify for the office by taking an oath of office to
20 be administered by the city clerk or any person designated by
21 the city clerk him. A copy thereof shall be kept in the
22 office of the city clerk.
23 Any appointment shall be in writing and the written
24 instrument shall be filed with the oath.
25 (Source: P.A. 83-499.)
26 (40 ILCS 5/11-183) (from Ch. 108 1/2, par. 11-183)
27 Sec. 11-183. Board vacancy. A vacancy in the membership
28 of the board shall be filled as follows:
29 If the vacancy is that of an appointive member, the
30 person or body who appointed the member him shall appoint a
31 person to serve for the unexpired term. If the vacancy is
32 that of an elective member, office the remaining members of
33 the board shall appoint a successor, who shall be an employee
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1 or annuitant (as the case may be) who is qualified to hold
2 the position, to from among the employees who hold or who is
3 on a leave of absence from a position to which he was
4 appointed by virtue of certification and appointment as the
5 result of competitive civil service examination, who shall
6 serve during the remainder of the unexpired term.
7 Any appointive or elective member, who leaves the service
8 of the city, other than the annuitant member, shall
9 automatically cease to be a member of the board. If the
10 annuitant member ceases to be an annuitant of the Fund, he or
11 she shall cease to be a member of the board and the position
12 shall be deemed to have become vacant.
13 (Source: Laws 1963, p. 161.)
14 (40 ILCS 5/12-133.1) (from Ch. 108 1/2, par. 12-133.1)
15 Sec. 12-133.1. Annual increase in basic retirement
16 annuity.
17 (a) Any employee upon withdrawal from service on or
18 after July 1, 1965, and retiring on a retirement annuity,
19 shall be entitled to an annual increase in his basic
20 retirement annuity as defined herein while he is in receipt
21 of such annuity.
22 (a) The term "basic retirement annuity" shall mean the
23 retirement annuity of the amount fixed and payable at date of
24 retirement of the employee.
25 (b) The annual increase in annuity shall be 1 1/2% of
26 the basic retirement annuity. The increase shall first occur
27 in the month of January or the month of July, whichever first
28 occurs next following or coincidental with the first
29 anniversary of retirement. Effective January 1, 1972, the
30 annual rate of increase in annuity thereafter shall be 2% of
31 the basic retirement annuity, provided that beginning as of
32 January 1, 1976, the annual rate of increase shall be 3% of
33 the basic retirement annuity.
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1 (c) For an employee who retires with less than 30 years
2 of service, the An increase in the basic retirement annuity
3 shall begin in any case not earlier than in the month of
4 January or the month of July, whichever occurs first,
5 following or coincidental with the employee's attainment of
6 age 60.
7 For an employee who retires with at least 30 years of
8 service, the annual increase under this Section shall begin
9 in the month of January or the month of July, whichever first
10 occurs next following or coincidental with the later of (1)
11 the first anniversary of retirement or (2) July 1, 1998,
12 without regard to the attainment of age 60 and without regard
13 to whether or not the employee was in service on or after the
14 effective date of this amendatory Act of 1998.
15 (d) The increase in the basic retirement annuity shall
16 not be applicable unless the employee otherwise qualified has
17 made contributions to the fund as provided herein for an
18 equivalent period of one full year. If such contributions
19 were not made, the employee may make the required payment to
20 the fund at the time of retirement, in a single sum, without
21 interest.
22 (e) The additional contributions by an employee towards
23 the annual increase in basic retirement annuity shall not be
24 refundable, except to an employee who withdraws and applies
25 for a refund under this Article, or dies while in service,
26 and also in cases where a temporary annuity becomes payable.
27 In such cases his contributions shall be refunded without
28 interest.
29 (Source: P.A. 86-272.)
30 (40 ILCS 5/12-133.5 new)
31 Sec. 12-133.5. Early retirement incentives.
32 (a) To be eligible for the benefits provided in this
33 Section, a person must:
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1 (1) have been, on July 1, 1998, an employee (i)
2 contributing to the Fund in active payroll status in a
3 position of employment under this Article, or (ii)
4 receiving duty or ordinary disability benefits under
5 Section 12-140, 12-142, or 12-143;
6 (2) not have begun to receive a retirement annuity
7 under this Article before August 31, 1998;
8 (3) file with the Board, within 90 days after the
9 effective date of this Section, a written election
10 requesting the benefits provided in this Section;
11 (4) withdraw from service on or after August 31,
12 1998 and no later than December 31, 1998;
13 (5) have attained age 50 on or before the date of
14 withdrawal; and
15 (6) have, by the date of withdrawal, a total of at
16 least 20 years of creditable service with participating
17 systems under the Retirement Systems Reciprocal Act, of
18 which at least 15 years must be under this Fund (not
19 including any creditable service established under this
20 Section).
21 (b) An eligible person may establish up to 5 years of
22 creditable service under this Article, in increments of one
23 month, by making the contributions specified in subsection
24 (c).
25 The creditable service established under this Section may
26 be used for all purposes under this Article and the
27 Retirement Systems Reciprocal Act, except for the computation
28 of the highest average annual salary under Section 12-133 or
29 the determination of salary under this or any other Article
30 of this Code.
31 (c) For each month of creditable service established
32 under this Section, the person must pay to the Fund an
33 employee contribution to be determined by the Fund, equal to
34 4.50% of the person's monthly salary rate in effect on the
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1 date of withdrawal. Subject to the requirements of
2 subsection (d), the person may elect to pay the required
3 employee contribution before the retirement annuity begins or
4 through deduction from the retirement annuity over a period
5 of up to 24 months.
6 If a person who retires under this Section dies before
7 all payments of employee contribution have been made, the
8 remaining payments shall be deducted from any survivor or
9 death benefits payable to the person's surviving spouse or
10 beneficiary.
11 All employee contributions paid under this Section shall
12 be deemed employee contributions for the purposes of
13 determining the tax levy under Section 12-149. Employee
14 contributions made under this Section may be refunded under
15 the same terms and conditions as other employee contributions
16 under this Article.
17 (d) A person who retires under the provisions of this
18 Section shall have his or her retirement annuity calculated
19 under the provisions of Section 12-133, except that the
20 retirement annuity shall not be subject to the reduction for
21 retirement under age 60 that is specified in Section 12-133.
22 (e) Notwithstanding Section 12-146 of this Article, an
23 annuitant who re-enters service under this Article after
24 receiving a retirement annuity based on the additional
25 benefits provided under this Section thereby forfeits the
26 right to continue to receive those additional benefits and
27 upon again retiring shall have his or her retirement annuity
28 recalculated without the additional benefits provided in this
29 Section.
30 (40 ILCS 5/12-166) (from Ch. 108 1/2, par. 12-166)
31 Sec. 12-166. To invest money. To invest and reinvest
32 the moneys of the fund subject to the requirements and
33 restrictions set forth in this Article and in Sections 1-109,
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1 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 in
2 accordance with the provisions set forth in Section 1-113 of
3 this Act.
4 No investments shall be purchased or sold or in any
5 manner hypothecated except by the action of the board duly
6 entered in the record of its proceedings.
7 The board may hold, purchase, sell, assign, transfer or
8 dispose of any of the securities and investments in which any
9 of the moneys of the fund or the proceeds of those said
10 investments have been invested.
11 The board shall have the authority to enter into any
12 agreements and to execute any documents that it determines to
13 be necessary to complete any investment transaction.
14 All investments shall be clearly held and accounted for
15 to indicate ownership by the fund. The board may direct the
16 registration of securities or the holding of interests in
17 real property in the name of the fund or in the name of a
18 nominee created for the express purpose of registering
19 securities or holding interests in real property by a
20 national or state bank or trust company authorized to conduct
21 a trust business in the State of Illinois. The board may
22 hold title to interests in real property in the name of the
23 fund or in the name of a title holding corporation created
24 for the express purpose of holding title to interests in real
25 property.
26 Investments shall be carried at cost or at a value
27 determined in accordance with generally accepted accounting
28 principles and accounting procedures approved by the board.
29 No bank or savings and loan association shall receive
30 investment funds as permitted by this Section, unless it has
31 complied with the requirements established pursuant to
32 Section 6 of the Public Funds Investment Act. Those
33 requirements shall be applicable only at the time of
34 investment and shall not require the liquidation of any
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1 investment at any time.
2 The board of trustees of any fund established under this
3 Article may not transfer its investment authority, nor
4 transfer the assets of the fund to any other person or entity
5 for the purpose of consolidating or merging its assets and
6 management with any other pension fund or public investment
7 authority, unless the board resolution authorizing such
8 transfer is submitted for approval to the contributors and
9 retirees of the fund at elections held not less than 30 days
10 after the adoption of such resolution by the board, and such
11 resolution is approved by a majority of the votes cast on the
12 question in both the contributors election and the retirees
13 election. The election procedures and qualifications
14 governing the election of trustees shall govern the
15 submission of resolutions for approval under this paragraph,
16 insofar as they may be made applicable.
17 (Source: P.A. 83-970.)
18 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
19 Sec. 14-104. Service for which contributions permitted.
20 Contributions provided for in this Section shall cover the
21 period of service granted. Except as otherwise provided in
22 this Section, the contributions shall, and be based upon the
23 employee's compensation and contribution rate in effect on
24 the date he last became a member of the System; provided that
25 for all employment prior to January 1, 1969 the contribution
26 rate shall be that in effect for a noncovered employee on the
27 date he last became a member of the System. Except as
28 otherwise provided in this Section, contributions permitted
29 under this Section shall include regular interest from the
30 date an employee last became a member of the System to the
31 date of payment.
32 These contributions must be paid in full before
33 retirement either in a lump sum or in installment payments in
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1 accordance with such rules as may be adopted by the board.
2 (a) Any member may make contributions as required in
3 this Section for any period of service, subsequent to the
4 date of establishment, but prior to the date of membership.
5 (b) Any employee who had been previously excluded from
6 membership because of age at entry and subsequently became
7 eligible may elect to make contributions as required in this
8 Section for the period of service during which he was
9 ineligible.
10 (c) An employee of the Department of Insurance who,
11 after January 1, 1944 but prior to becoming eligible for
12 membership, received salary from funds of insurance companies
13 in the process of rehabilitation, liquidation, conservation
14 or dissolution, may elect to make contributions as required
15 in this Section for such service.
16 (d) Any employee who rendered service in a State office
17 to which he was elected, or rendered service in the elective
18 office of Clerk of the Appellate Court prior to the date he
19 became a member, may make contributions for such service as
20 required in this Section. Any member who served by
21 appointment of the Governor under the Civil Administrative
22 Code of Illinois and did not participate in this System may
23 make contributions as required in this Section for such
24 service.
25 (e) Any person employed by the United States government
26 or any instrumentality or agency thereof from January 1, 1942
27 through November 15, 1946 as the result of a transfer from
28 State service by executive order of the President of the
29 United States shall be entitled to prior service credit
30 covering the period from January 1, 1942 through December 31,
31 1943 as provided for in this Article and to membership
32 service credit for the period from January 1, 1944 through
33 November 15, 1946 by making the contributions required in
34 this Section. A person so employed on January 1, 1944 but
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1 whose employment began after January 1, 1942 may qualify for
2 prior service and membership service credit under the same
3 conditions.
4 (f) An employee of the Department of Labor of the State
5 of Illinois who performed services for and under the
6 supervision of that Department prior to January 1, 1944 but
7 who was compensated for those services directly by federal
8 funds and not by a warrant of the Auditor of Public Accounts
9 paid by the State Treasurer may establish credit for such
10 employment by making the contributions required in this
11 Section. An employee of the Department of Agriculture of the
12 State of Illinois, who performed services for and under the
13 supervision of that Department prior to June 1, 1963, but was
14 compensated for those services directly by federal funds and
15 not paid by a warrant of the Auditor of Public Accounts paid
16 by the State Treasurer, and who did not contribute to any
17 other public employee retirement system for such service, may
18 establish credit for such employment by making the
19 contributions required in this Section.
20 (g) Any employee who executed a waiver of membership
21 within 60 days prior to January 1, 1944 may, at any time
22 while in the service of a department, file with the board a
23 rescission of such waiver. Upon making the contributions
24 required by this Section, the member shall be granted the
25 creditable service that would have been received if the
26 waiver had not been executed.
27 (h) Until May 1, 1990, an employee who was employed on a
28 full-time basis by a regional planning commission for at
29 least 5 continuous years may establish creditable service for
30 such employment by making the contributions required under
31 this Section, provided that any credits earned by the
32 employee in the commission's retirement plan have been
33 terminated.
34 (i) Any person who rendered full time contractual
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1 services to the General Assembly as a member of a legislative
2 staff may establish service credit for up to 8 years of such
3 services by making the contributions required under this
4 Section, provided that application therefor is made not later
5 than July 1, 1991.
6 (j) By paying the contributions otherwise required under
7 this Section, plus an amount determined by the Board to be
8 equal to the employer's normal cost of the benefit plus
9 interest, an employee may establish service credit for a
10 period of up to 2 years spent in active military service for
11 which he does not qualify for credit under Section 14-105,
12 provided that (1) he was not dishonorably discharged from
13 such military service, and (2) the amount of service credit
14 established by a member under this subsection (j), when added
15 to the amount of military service credit granted to the
16 member under subsection (b) of Section 14-105, shall not
17 exceed 5 years.
18 (k) An employee who was employed on a full-time basis by
19 the Illinois State's Attorneys Association Statewide
20 Appellate Assistance Service LEAA-ILEC grant project prior to
21 the time that project became the State's Attorneys Appellate
22 Service Commission, now the Office of the State's Attorneys
23 Appellate Prosecutor, an agency of State government, may
24 establish creditable service for not more than 60 months
25 service for such employment by making contributions required
26 under this Section.
27 (l) By paying the contributions otherwise required under
28 this Section, plus an amount determined by the Board to be
29 equal to the employer's normal cost of the benefit plus
30 interest, a member may establish service credit for periods
31 of less than one year spent on authorized leave of absence
32 from service, provided that (1) the period of leave began on
33 or after January 1, 1982 and (2) any credit established by
34 the member for the period of leave in any other public
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1 employee retirement system has been terminated. A member may
2 establish service credit under this subsection for more than
3 one period of authorized leave, and in that case the total
4 period of service credit established by the member under this
5 subsection may exceed one year. In determining the
6 contributions required for establishing service credit under
7 this subsection, the interest shall be calculated from the
8 beginning of the leave of absence to the date of payment.
9 (m) (l) Any person who rendered contractual services to
10 a member of the General Assembly as a worker in the member's
11 district office may establish creditable service for up to 3
12 years of those contractual services by making the
13 contributions required under this Section. The System shall
14 determine a full-time salary equivalent for the purpose of
15 calculating the required contribution. To establish credit
16 under this subsection, the applicant must apply to the System
17 by March 1, 1998.
18 (n) (l) Any person who rendered contractual services to
19 a member of the General Assembly as a worker providing
20 constituent services to persons in the member's district may
21 establish creditable service for up to 8 years of those
22 contractual services by making the contributions required
23 under this Section. The System shall determine a full-time
24 salary equivalent for the purpose of calculating the required
25 contribution. To establish credit under this subsection, the
26 applicant must apply to the System by March 1, 1998.
27 (o) A member who participated in the Illinois
28 Legislative Staff Internship Program may establish creditable
29 service for up to one year of that participation by making
30 the contribution required under this Section. The System
31 shall determine a full-time salary equivalent for the purpose
32 of calculating the required contribution. Credit may not be
33 established under this subsection for any period for which
34 service credit is established under any other provision of
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1 this Code.
2 (Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97;
3 90-511, eff. 8-22-97; revised 9-5-97.)
4 (40 ILCS 5/14-104.10)
5 Sec. 14-104.10. Federal or out-of-state employment. A
6 contributing employee may establish additional service credit
7 for periods of full-time employment by the federal government
8 or a unit of state or local government located outside
9 Illinois for which he or she does not qualify for credit
10 under any other provision of this Article, provided that (i)
11 the amount of service credit established by a person under
12 this Section shall not exceed 8 years or 40% of his or her
13 membership service under this Article, whichever is less,
14 (ii) the amount of service credit established by a person
15 under this Section for federal employment, when added to the
16 amount of all military service credit granted to the person
17 under this Article, shall not exceed 8 years, and (iii) any
18 credit received for the federal or out-of-state employment in
19 any federal or other public employee pension fund or
20 retirement system has been terminated or relinquished.
21 Credit may not be established under this Section for any
22 period of military service or for any period for which credit
23 has been or may be established under Section 14-110 or any
24 other provision of this Article.
25 In order to establish service credit under this Section,
26 the applicant must submit a written application to the System
27 by June 30, 1999 1998, including documentation of the federal
28 or out-of-state employment satisfactory to the Board, and pay
29 to the System (1) employee contributions at the rates
30 provided in this Article based upon the person's salary on
31 the last day as a participating employee prior to the federal
32 or out-of-state employment, or on the first day as a
33 participating employee after that employment, whichever is
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1 greater, plus (2) an amount determined by the Board to be
2 equal to the employer's normal cost of the benefits accrued
3 for that employment, plus (3) regular interest on items (1)
4 and (2) from the date of conclusion of the employment to the
5 date of payment.
6 (Source: P.A. 90-32, eff. 6-27-97.)
7 (40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
8 Sec. 14-133.1. Pickup of contributions.
9 (a) Each department shall pick up the employee
10 contributions required by Section 14-133 for all compensation
11 earned after December 31, 1981, and the contributions so
12 picked up shall be treated as employer contributions in
13 determining tax treatment under the United States Internal
14 Revenue Code; however, each department shall continue to
15 withhold federal and State income taxes based upon these
16 contributions until the Internal Revenue Service or the
17 federal courts rule that pursuant to Section 414(h) of the
18 United States Internal Revenue Code, these contributions
19 shall not be included as gross income of the employee until
20 such time as they are distributed or made available.
21 The department shall pay these employee contributions
22 from the same fund which is used in paying earnings to the
23 employee. The department may pick up these contributions by
24 a reduction in the cash salary of the employee or by an
25 offset against a future salary increase or by a combination
26 of a reduction in salary and offset against a future salary
27 increase. If employee contributions are picked up they shall
28 be treated for all purposes of this Article 14 in the same
29 manner and to the same extent as employee contributions made
30 prior to the date picked up.
31 (b) Subject to the requirements of federal law, an
32 employee of a department may elect to have the department
33 pick up optional contributions that the employee has elected
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1 to pay to the System, and the contributions so picked up
2 shall be treated as employer contributions for the purposes
3 of determining federal tax treatment. The department shall
4 pick up the contributions by a reduction in the cash salary
5 of the employee and shall pay the contributions from the same
6 fund that is used to pay earnings to the employee. The
7 election to have optional contributions picked up is
8 irrevocable and the optional contributions may not thereafter
9 be prepaid, by direct payment or otherwise. If the provision
10 authorizing the optional contribution requires payment by a
11 stated date (rather than the date of withdrawal or
12 retirement), that requirement shall be deemed to have been
13 satisfied if (i) on or before the stated date the employee
14 executes a valid irrevocable election to have the
15 contributions picked up under this subsection, and (ii) the
16 picked-up contributions are in fact paid to the System as
17 provided in the election.
18 (Source: P.A. 90-448, eff. 8-16-97.)
19 (40 ILCS 5/15-103.1 new)
20 Sec. 15-103.1. Traditional Benefit Package.
21 "Traditional benefit package": The defined benefit retirement
22 program maintained under the System which includes retirement
23 annuities payable directly from the System as provided in
24 Sections 15-135 through 15-140 (but disregarding Section
25 15-136.4), disability retirement annuities payable under
26 Section 15-153.2, death benefits payable directly from the
27 System as provided in Sections 15-141 through 15-144,
28 survivors insurance benefits payable directly from the System
29 as provided in Sections 15-145 through 15-149, and
30 contribution refunds as provided in Section 15-154. The
31 traditional benefit package also includes disability benefits
32 as provided in Sections 15-150 through 15-153.3.
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1 (40 ILCS 5/15-103.2 new)
2 Sec. 15-103.2. Portable Benefit Package. "Portable
3 benefit package": The defined benefit retirement program
4 maintained under the System which includes retirement
5 annuities payable directly from the System as provided in
6 Sections 15-135 through 15-139 (specifically including
7 Section 15-136.4), disability retirement annuities payable
8 under Section 15-153.2, death benefits payable directly from
9 the System as provided in Sections 15-141 through 15-144, and
10 contribution refunds as provided in Section 15-154. The
11 portable benefit package also includes disability benefits as
12 provided in Sections 15-150 through 15-153.3. The portable
13 benefit package does not include the survivors insurance
14 benefits payable directly from the System as provided in
15 Sections 15-145 through 15-149.
16 (40 ILCS 5/15-103.3 new)
17 Sec. 15-103.3. Self-Managed Plan. "Self-managed plan":
18 The defined contribution retirement program maintained under
19 the System as described in Section 15-158.2. The
20 self-managed plan also includes disability benefits as
21 provided in Sections 15-150 through 15-153.3 (but
22 disregarding disability retirement annuities under Section
23 15-153.2). The self-managed plan does not include retirement
24 annuities, death benefits, or survivors insurance benefits
25 payable directly from the System as provided in Sections
26 15-135 through 15-149 and Section 15-153.2, or refunds
27 determined under Section 15-154.
28 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
29 Sec. 15-107. Employee.
30 (a) "Employee" means any member of the educational,
31 administrative, secretarial, clerical, mechanical, labor or
32 other staff of an employer whose employment is permanent and
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1 continuous or who is employed in a position in which services
2 are expected to be rendered on a continuous basis for at
3 least 4 months or one academic term, whichever is less, who
4 (A) receives payment for personal services on a warrant
5 issued pursuant to a payroll voucher certified by an employer
6 and drawn by the State Comptroller upon the State Treasurer
7 or by an employer upon trust, federal or other funds, or (B)
8 is on a leave of absence without pay. Employment which is
9 irregular, intermittent or temporary shall not be considered
10 continuous for purposes of this paragraph.
11 However, a person is not an "employee" if he or she:
12 (1) is a student enrolled in and regularly
13 attending classes in a college or university which is an
14 employer, and is employed on a temporary basis at less
15 than full time;
16 (2) is currently receiving a retirement annuity or
17 a disability retirement annuity under Section 15-153.2
18 from this System;
19 (3) is on a military leave of absence;
20 (4) is eligible to participate in the Federal Civil
21 Service Retirement System and is currently making
22 contributions to that system based upon earnings paid by
23 an employer;
24 (5) is on leave of absence without pay for more
25 than 60 days immediately following termination of
26 disability benefits under this Article;
27 (6) is hired after June 30, 1979 as a public
28 service employment program participant under the Federal
29 Comprehensive Employment and Training Act and receives
30 earnings in whole or in part from funds provided under
31 that Act;
32 (7) is employed on or after July 1, 1991 to perform
33 services that are excluded by subdivision (a)(7)(f) or
34 (a)(19) of Section 210 of the federal Social Security Act
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1 from the definition of employment given in that Section
2 (42 U.S.C. 410); or
3 (8) participates in an optional program for
4 part-time workers under Section 15-158.1.
5 (b) Any employer may, by filing a written notice with
6 the board, exclude from the definition of "employee" all
7 persons employed pursuant to a federally funded contract
8 entered into after July 1, 1982 with a federal military
9 department in a program providing training in military
10 courses to federal military personnel on a military site
11 owned by the United States Government, if this exclusion is
12 not prohibited by the federally funded contract or federal
13 laws or rules governing the administration of the contract.
14 (c) Any person appointed by the Governor under the Civil
15 Administrative Code of the State is an employee, if he or she
16 is a participant in this system on the effective date of the
17 appointment.
18 (d) A participant on lay-off status under civil service
19 rules is considered an employee for not more than 120 days
20 from the date of the lay-off.
21 (e) A participant is considered an employee during (1)
22 the first 60 days of disability leave, (2) the period, not to
23 exceed one year, in which his or her eligibility for
24 disability benefits is being considered by the board or
25 reviewed by the courts, and (3) the period he or she receives
26 disability benefits under the provisions of Section 15-152,
27 workers' compensation or occupational disease benefits, or
28 disability income under an insurance contract financed wholly
29 or partially by the employer.
30 (f) Absences without pay, other than formal leaves of
31 absence, of less than 30 calendar days, are not considered as
32 an interruption of a person's status as an employee. If such
33 absences during any period of 12 months exceed 30 work days,
34 the employee status of the person is considered as
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1 interrupted as of the 31st work day.
2 (g) A staff member whose employment contract requires
3 services during an academic term is to be considered an
4 employee during the summer and other vacation periods, unless
5 he or she declines an employment contract for the succeeding
6 academic term or his or her employment status is otherwise
7 terminated, and he or she receives no earnings during these
8 periods.
9 (h) An individual who was a participating employee
10 employed in the fire department of the University of
11 Illinois's Champaign-Urbana campus immediately prior to the
12 elimination of that fire department and who immediately after
13 the elimination of that fire department became employed by
14 the fire department of the City of Urbana or the City of
15 Champaign shall continue to be considered as an employee for
16 purposes of this Article for so long as the individual
17 remains employed as a firefighter by the City of Urbana or
18 the City of Champaign. The individual shall cease to be
19 considered an employee under this subsection (h) upon the
20 first termination of the individual's employment as a
21 firefighter by the City of Urbana or the City of Champaign.
22 (i) An individual who is employed on a full-time basis
23 as an officer or employee of a statewide teacher organization
24 or an officer of a national teacher organization may
25 participate in the System and shall be deemed an employee,
26 provided that (1) the individual has previously earned
27 creditable service under this Article, (2) the individual
28 files with the System an irrevocable election to become a
29 participant, and (3) the individual does not receive credit
30 for that employment under any other Article of this Code. An
31 employee under this subsection (i) is responsible for paying
32 to the System both (A) employee contributions based on the
33 actual compensation received for service with the teacher
34 organization and (B) employer contributions equal to the
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1 normal costs (as defined in Section 15-155) resulting from
2 that service; all or any part of these contributions may be
3 paid on the employee's behalf or picked up for tax purposes
4 (if authorized under federal law) by the teacher
5 organization.
6 A person who is an employee as defined in this subsection
7 (i) may establish service credit for similar employment prior
8 to becoming an employee under this subsection by paying to
9 the System for that employment the contributions specified in
10 this subsection, plus interest at the effective rate from the
11 date of service to the date of payment. However, credit
12 shall not be granted under this subsection for any such prior
13 employment for which the applicant received credit under any
14 other provision of this Code, or during which the applicant
15 was on a leave of absence under Section 15-113.2.
16 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
17 90-576, eff. 3-31-98.)
18 (40 ILCS 5/15-134.5 new)
19 Sec. 15-134.5. Retirement Program Elections.
20 (a) All participating employees are participants under
21 the traditional benefit package prior to January 1, 1998.
22 Effective as of the date that an employer elects, as
23 described in Section 15-158.2, to offer to its employees the
24 portable benefit package and the self-managed plan as
25 alternatives to the traditional benefit package, each of that
26 employer's eligible employees (as defined in subsection (b))
27 shall be given the choice to elect which retirement program
28 he or she wishes to participate in with respect to all
29 periods of covered employment occurring on and after the
30 effective date of the employee's election. The retirement
31 program election made by an eligible employee must be made in
32 writing, in the manner prescribed by the System, and within
33 the time period described in subsection (d). The employee
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1 election authorized by this Section is a one-time,
2 irrevocable election. If an employee terminates employment
3 after making the election provided under this subsection (a),
4 then upon his or her subsequent re-employment with an
5 employer the original election shall automatically apply to
6 him or her, provided that the employer is then a
7 participating employer as described in Section 15-158.2.
8 (b) "Eligible employee" means an employee (as defined in
9 Section 15-107) who is either a currently eligible employee
10 or a newly eligible employee. For purposes of this Section,
11 a "currently eligible employee" is an employee who is
12 employed by an employer on the effective date on which the
13 employer offers to its employees the portable benefit package
14 and the self-managed plan as alternatives to the traditional
15 benefit package. A "newly eligible employee" is an employee
16 who first becomes employed by an employer after the effective
17 date on which the employer offers its employees the portable
18 benefit package and the self-managed plan as alternatives to
19 the traditional benefit package.
20 (c) An eligible employee who at the time he or she is
21 first eligible to make the election described in subsection
22 (a) does not have sufficient age and service to qualify for a
23 retirement annuity under Section 15-135 may elect to
24 participate in the traditional benefit package, the portable
25 benefit package, or the self-managed plan. An eligible
26 employee who has sufficient age and service to qualify for a
27 retirement annuity under Section 15-135 at the time he or she
28 is first eligible to make the election described in
29 subsection (a) may elect to participate in the traditional
30 benefit package or the portable benefit package, but may not
31 elect to participate in the self-managed plan.
32 (d) A currently eligible employee must make this
33 election within one year after the effective date of the
34 employer's adoption of the self-managed plan. A newly
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1 eligible employee must make this election within 60 days
2 after becoming an eligible employee. The employer shall not
3 remit contributions to the system on behalf of a newly
4 eligible employee until the earlier of the expiration of the
5 employee's 60-day election period or the date on which the
6 employee submits a properly completed election to the
7 employer or to the system.
8 (e) If an eligible employee elects the portable benefit
9 package, that election shall not become effective until the
10 one-year anniversary of the date on which the election is
11 filed with the system, provided the employee remains
12 continuously employed by the employer throughout the one-year
13 waiting period, and any benefits payable to or on account of
14 the employee before such one-year waiting period has ended
15 shall not be determined under the provisions applicable to
16 the portable benefit package but shall instead be determined
17 in accordance with the traditional benefit package. If an
18 eligible employee who has elected the portable benefit
19 package terminates employment covered by the system before
20 the one-year waiting period has ended, then no benefits shall
21 be determined under the portable benefit package provisions
22 while he or she is inactive in the system and upon
23 re-employment with an employer covered by the system he or
24 she shall begin a new one-year waiting period before the
25 provisions of the portable benefit package become effective.
26 (f) An eligible employee shall be provided with written
27 information prepared or prescribed by the system which
28 describes the employee's retirement program choices. The
29 eligible employee shall be offered an opportunity to receive
30 counseling from the system prior to making his or her
31 election. This counseling may consist of videotaped
32 materials, group presentations, individual consultation with
33 an employee or authorized representative of the system in
34 person or by telephone or other electronic means, or any
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1 combination of these methods.
2 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
3 Sec. 15-135. Retirement annuities - Conditions.
4 (a) A participant who retires in one of the following
5 specified years with the specified amount of service is
6 entitled to a retirement annuity at any age under the
7 retirement program applicable to the participant:
8 35 years if retirement is in 1997 or before;
9 34 years if retirement is in 1998;
10 33 years if retirement is in 1999;
11 32 years if retirement is in 2000;
12 31 years if retirement is in 2001;
13 30 years if retirement is in 2002;
14 35 years if retirement is in 2003 or later.
15 A participant with 8 or more years of service after
16 September 1, 1941, is entitled to a retirement annuity on or
17 after attainment of age 55.
18 A participant with at least 5 but less than 8 years of
19 service after September 1, 1941, is entitled to a retirement
20 annuity on or after attainment of age 62.
21 A participant who has at least 25 years of service in
22 this system as a police officer or firefighter is entitled to
23 a retirement annuity on or after the attainment of age 50, if
24 Rule 4 of Section 15-136 is applicable to the participant.
25 (b) The annuity payment period shall begin on the date
26 specified by the participant submitting a written
27 application, which date shall not be prior to termination of
28 employment or more than one year before the application is
29 received by the board; however, if the participant is not an
30 employee of an employer participating in this System or in a
31 participating system as defined in Article 20 of this Code on
32 April 1 of the calendar year next following the calendar year
33 in which the participant attains following the attainment of
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1 age 70 1/2, the annuity payment period shall begin on that
2 date regardless of whether an application has been filed.
3 (c) An annuity is not payable if the amount provided
4 under Section 15-136 is less than $10 per month.
5 (Source: P.A. 90-65, eff. 7-7-97.)
6 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
7 Sec. 15-136. Retirement annuities - Amount. The
8 provisions of this Section 15-136 apply only to those
9 participants who are participating in the traditional benefit
10 package or the portable benefit package and do not apply to
11 participants who are participating in the self-managed plan.
12 (a) The amount of a participant's the retirement
13 annuity, expressed in the form of a single-life annuity,
14 shall be determined by whichever of the following rules is
15 applicable and provides the largest annuity:
16 Rule 1: The retirement annuity shall be 1.67% of final
17 rate of earnings for each of the first 10 years of service,
18 1.90% for each of the next 10 years of service, 2.10% for
19 each year of service in excess of 20 but not exceeding 30,
20 and 2.30% for each year in excess of 30; or for persons who
21 retire on or after January 1, 1998, 2.2% of the final rate of
22 earnings for each year of service. However, the annuity for
23 those persons having made an election under Section
24 15-154(a-1) shall be calculated and payable under the
25 portable retirement benefit program pursuant to the
26 provisions of Section 15-136.4.
27 Rule 2: The retirement annuity shall be the sum of the
28 following, determined from amounts credited to the
29 participant in accordance with the actuarial tables and the
30 prescribed rate of interest in effect at the time the
31 retirement annuity begins:
32 (i) The normal annuity which can be provided on an
33 actuarially equivalent basis, by the accumulated normal
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1 contributions as of the date the annuity begins; and
2 (ii) an annuity from employer contributions of an
3 amount which can be provided on an actuarially equivalent
4 basis from the accumulated normal contributions made by
5 the participant under Section 15-113.6 and Section
6 15-113.7 plus 1.4 times all other accumulated normal
7 contributions made by the participant, except that the
8 annuity for those persons having made an election under
9 Section 15-154(a-1) shall be calculated and payable under
10 the portable retirement benefit program pursuant to the
11 provisions of Section 15-136.4.
12 With respect to a police officer or firefighter who retires
13 on or after the effective date of this amendatory Act of
14 1998, the accumulated normal contributions taken into account
15 under clauses (i) and (ii) of this Rule 2 shall include the
16 additional normal contributions made by the police officer or
17 firefighter under Section 15-157(a).
18 Rule 3: The retirement annuity of a participant who is
19 employed at least one-half time during the period on which
20 his or her final rate of earnings is based, shall be equal to
21 the participant's years of service not to exceed 30,
22 multiplied by (1) $96 if the participant's final rate of
23 earnings is less than $3,500, (2) $108 if the final rate of
24 earnings is at least $3,500 but less than $4,500, (3) $120 if
25 the final rate of earnings is at least $4,500 but less than
26 $5,500, (4) $132 if the final rate of earnings is at least
27 $5,500 but less than $6,500, (5) $144 if the final rate of
28 earnings is at least $6,500 but less than $7,500, (6) $156 if
29 the final rate of earnings is at least $7,500 but less than
30 $8,500, (7) $168 if the final rate of earnings is at least
31 $8,500 but less than $9,500, and (8) $180 if the final rate
32 of earnings is $9,500 or more, except that the annuity for
33 those persons having made an election under Section
34 15-154(a-1) shall be calculated and payable under the
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1 portable retirement benefit program pursuant to the
2 provisions of Section 15-136.4.
3 Rule 4: A participant who is at least age 50 and has 25
4 or more years of service as a police officer or firefighter,
5 and a participant who is age 55 or over and has at least 20
6 but less than 25 years of service as a police officer or
7 firefighter, shall be entitled to a retirement annuity of
8 2 1/4% of the final rate of earnings for each of the first 10
9 years of service as a police officer or firefighter, 2 1/2%
10 for each of the next 10 years of service as a police officer
11 or firefighter, and 2 3/4% for each year of service as a
12 police officer or firefighter in excess of 20, except that
13 the annuity for those persons having made an election under
14 Section 15-154(a-1) shall be calculated and payable under the
15 portable retirement benefit program pursuant to the
16 provisions of Section 15-136.4. The retirement annuity for
17 all other service shall be computed under Rule 1, payable
18 under the portable retirement benefit program pursuant to the
19 provisions of Section 15-136.4, if applicable.
20 For purposes of this Rule 4, a participant's service as a
21 firefighter shall also include the following:
22 (i) service that is performed while the person is
23 an employee under subsection (h) of Section 15-107; and
24 (ii) in the case of an individual who was a
25 participating employee employed in the fire department of
26 the University of Illinois's Champaign-Urbana campus
27 immediately prior to the elimination of that fire
28 department and who immediately after the elimination of
29 that fire department transferred to another job with the
30 University of Illinois, service performed as an employee
31 of the University of Illinois in a position other than
32 police officer or firefighter, from the date of that
33 transfer until the employee's next termination of service
34 with the University of Illinois.
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1 (b) The retirement annuity provided under Rules 1 and 3
2 above shall be reduced by 1/2 of 1% for each month the
3 participant is under age 60 at the time of retirement.
4 However, this reduction shall not apply in the following
5 cases:
6 (1) For a disabled participant whose disability
7 benefits have been discontinued because he or she has
8 exhausted eligibility for disability benefits under
9 clause (6) of Section 15-152;
10 (2) For a participant who has at least the number
11 of years of service required to retire at any age under
12 subsection (a) of Section 15-135; or
13 (3) For that portion of a retirement annuity which
14 has been provided on account of service of the
15 participant during periods when he or she performed the
16 duties of a police officer or firefighter, if these
17 duties were performed for at least 5 years immediately
18 preceding the date the retirement annuity is to begin.
19 (c) The maximum retirement annuity provided under Rules
20 1, 2, and 4 shall be the lesser of (1) the annual limit of
21 benefits as specified in Section 415 of the Internal Revenue
22 Code of 1986, as such Section may be amended from time to
23 time and as such benefit limits shall be adjusted by the
24 Commissioner of Internal Revenue, and (2) 80% of final rate
25 of earnings.
26 (d) An annuitant whose status as an employee terminates
27 after August 14, 1969 shall receive automatic increases in
28 his or her retirement annuity as follows:
29 Effective January 1 immediately following the date the
30 retirement annuity begins, the annuitant shall receive an
31 increase in his or her monthly retirement annuity of 0.125%
32 of the monthly retirement annuity provided under Rule 1, Rule
33 2, Rule 3, or Rule 4, contained in this Section, multiplied
34 by the number of full months which elapsed from the date the
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1 retirement annuity payments began to January 1, 1972, plus
2 0.1667% of such annuity, multiplied by the number of full
3 months which elapsed from January 1, 1972, or the date the
4 retirement annuity payments began, whichever is later, to
5 January 1, 1978, plus 0.25% of such annuity multiplied by the
6 number of full months which elapsed from January 1, 1978, or
7 the date the retirement annuity payments began, whichever is
8 later, to the effective date of the increase.
9 The annuitant shall receive an increase in his or her
10 monthly retirement annuity on each January 1 thereafter
11 during the annuitant's life of 3% of the monthly annuity
12 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
13 this Section. The change made under this subsection by P.A.
14 81-970 is effective January 1, 1980 and applies to each
15 annuitant whose status as an employee terminates before or
16 after that date.
17 Beginning January 1, 1990, all automatic annual increases
18 payable under this Section shall be calculated as a
19 percentage of the total annuity payable at the time of the
20 increase, including all increases previously granted under
21 this Article.
22 The change made in this subsection by P.A. 85-1008 is
23 effective January 26, 1988, and is applicable without regard
24 to whether status as an employee terminated before that date.
25 (e) If, on January 1, 1987, or the date the retirement
26 annuity payment period begins, whichever is later, the sum of
27 the retirement annuity provided under Rule 1 or Rule 2 of
28 this Section and the automatic annual increases provided
29 under the preceding subsection or Section 15-136.1, amounts
30 to less than the retirement annuity which would be provided
31 by Rule 3, the retirement annuity shall be increased as of
32 January 1, 1987, or the date the retirement annuity payment
33 period begins, whichever is later, to the amount which would
34 be provided by Rule 3 of this Section. Such increased amount
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1 shall be considered as the retirement annuity in determining
2 benefits provided under other Sections of this Article. This
3 paragraph applies without regard to whether status as an
4 employee terminated before the effective date of this
5 amendatory Act of 1987, provided that the annuitant was
6 employed at least one-half time during the period on which
7 the final rate of earnings was based.
8 (f) A participant is entitled to such additional annuity
9 as may be provided on an actuarially equivalent basis, by any
10 accumulated additional contributions to his or her credit.
11 However, the additional contributions made by the participant
12 toward the automatic increases in annuity provided under this
13 Section shall not be taken into account in determining the
14 amount of such additional annuity.
15 (g) If, (1) by law, a function of a governmental unit,
16 as defined by Section 20-107 of this Code, is transferred in
17 whole or in part to an employer, and (2) a participant
18 transfers employment from such governmental unit to such
19 employer within 6 months after the transfer of the function,
20 and (3) the sum of (A) the annuity payable to the participant
21 under Rule 1, 2, or 3 of this Section (B) all proportional
22 annuities payable to the participant by all other retirement
23 systems covered by Article 20, and (C) the initial primary
24 insurance amount to which the participant is entitled under
25 the Social Security Act, is less than the retirement annuity
26 which would have been payable if all of the participant's
27 pension credits validated under Section 20-109 had been
28 validated under this system, a supplemental annuity equal to
29 the difference in such amounts shall be payable to the
30 participant.
31 (h) On January 1, 1981, an annuitant who was receiving a
32 retirement annuity on or before January 1, 1971 shall have
33 his or her retirement annuity then being paid increased $1
34 per month for each year of creditable service. On January 1,
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1 1982, an annuitant whose retirement annuity began on or
2 before January 1, 1977, shall have his or her retirement
3 annuity then being paid increased $1 per month for each year
4 of creditable service.
5 (i) On January 1, 1987, any annuitant whose retirement
6 annuity began on or before January 1, 1977, shall have the
7 monthly retirement annuity increased by an amount equal to 8¢
8 per year of creditable service times the number of years that
9 have elapsed since the annuity began.
10 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
11 eff. 8-16-97; 90-576, eff. 3-31-98.)
12 (40 ILCS 5/15-136.4)
13 Sec. 15-136.4. Retirement and Survivor Benefits Under
14 Portable Retirement Benefit Package Program.
15 (a) This Section 15-136.4 describes the form of annuity
16 and survivor benefits available to a participant who has
17 elected the portable benefit package and has completed the
18 one-year waiting period required under subsection (e) of
19 Section 15-134.5. For purposes of this Section, the term
20 "eligible spouse" means the husband or wife of a participant
21 to whom the participant is married on the date the
22 participant's retirement annuity begins, provided. however,
23 that if the participant should die prior to the commencement
24 of retirement date the annuity benefits would have begun,
25 then "eligible spouse" means the husband or wife, if any, to
26 whom the participant was married throughout the one-year
27 period preceding the date of his or her death.
28 (b) This subsection (b) describes the normal form of
29 annuity payable to a participant subject to this Section
30 15-136.4. If the participant is unmarried on the date his or
31 her annuity payments commence, then the annuity payments
32 shall be made in the form of a single-life annuity as
33 described in Section 15-118. If the participant is married
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1 on the date his or her annuity payments commence, then the
2 annuity payments shall be paid in the form of a qualified
3 joint and survivor annuity that is the actuarial equivalent
4 of the single-life annuity. Under the "qualified joint and
5 survivor annuity", a reduced amount shall be paid to the
6 participant for his or her lifetime and his or her eligible
7 spouse, if surviving at the participant's death, shall be
8 entitled to receive thereafter a lifetime survivorship
9 annuity in a monthly amount equal to 50% of the reduced
10 monthly amount that was payable to the participant. The last
11 payment of a qualified joint and survivor annuity shall be
12 made as of the first day of the month in which the death of
13 the survivor occurs. If a participant has an eligible spouse
14 on the date his or her annuity payments commence, the annuity
15 shall be paid in the form of a 50% joint and survivor annuity
16 unless the participant elects otherwise in writing and his or
17 her eligible spouse consents to that election. Under a 50%
18 joint and survivor annuity, a reduced amount shall be paid to
19 the participant for his or her lifetime and his or her
20 eligible spouse, if surviving at the participant's death,
21 shall be entitled to receive thereafter a lifetime
22 survivorship annuity in a monthly amount equal to 50% of the
23 reduced monthly amount that was payable to the participant.
24 The reduced amount payable to the participant under the 50%
25 joint and survivor annuity shall be determined so that the
26 aggregate of the annuity payments expected to be made to the
27 participant and his or her eligible spouse is the actuarial
28 equivalent of a single-life annuity. The last payment of a
29 50% joint and survivor annuity shall be made as of the first
30 day of the month in which the death of the survivor occurs.
31 (c) Instead of the normal form of annuity that would be
32 paid under subsection (b), a participant may elect in writing
33 within the 90-day period prior to the date his or her annuity
34 payments commence to waive the normal form of annuity payment
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1 and receive an optional form of annuity as described in
2 subsection (h). If the participant is married and elects an
3 optional form of annuity under subsection (h) other than a
4 joint and survivor annuity with the eligible spouse
5 designated as the contingent annuitant, then such election
6 shall require the consent of his or her eligible spouse in
7 the manner described in subsection (d). At any time during
8 the 90-day period preceding the date the participant's
9 annuity commences, the participant may revoke the optional
10 form elected under this subsection (c) and reinstate coverage
11 under the qualified joint and survivor annuity without the
12 spouse's consent, but an election to revoke the optional form
13 elected and elect a new optional form or designate a
14 different contingent annuitant shall not be effective without
15 the eligible spouse's consent. Instead of the 50% joint and
16 survivor annuity, a participant may elect in writing, within
17 the 90-day period prior to the date his or her annuity
18 payments commence, and only with the consent of his or her
19 eligible spouse, to receive a monthly amount in the form of a
20 single-life annuity. A participant may also elect instead an
21 optional form of benefit under subsection (k). However, if
22 the participant does elect an optional form of benefit under
23 subsection (k) and if the contingent annuitant under the
24 option is not the participant's eligible spouse, then the
25 optional election shall be canceled and the annuity shall be
26 paid in the form of a 50% joint and survivor annuity unless,
27 within the 90-day period preceding the annuity commencement
28 date, the eligible spouse consents to the optional election.
29 (d) A participant may also revoke any election made
30 under this Section at any time during the 90-day period
31 preceding the date the participant's annuity commences if the
32 purpose of such revocation is to reinstate coverage under the
33 50% joint and survivor annuity.
34 (d) (e) The eligible spouse's consent to any election
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1 made pursuant to this Section that requires the eligible
2 spouse's consent shall be in writing and shall acknowledge
3 the effect of the consent. In addition, the eligible
4 spouse's signature on the written consent must be witnessed
5 by a notary public. The eligible spouse's consent need not
6 be obtained if the system is satisfied that there is no
7 eligible spouse, that the eligible spouse cannot be located,
8 or because of any other relevant circumstances. An eligible
9 spouse's consent under this Section is valid only with
10 respect to the specified optional form of payment and, if
11 applicable, alternate contingent annuitant designated by the
12 participant. If the optional form of payment or the
13 alternate contingent annuitant is subsequently changed (other
14 than by a revocation of the optional form and reinstatement
15 of the qualified joint and survivor annuity), a new consent
16 by the eligible spouse is required. The eligible spouse's
17 consent to an election made by a participant pursuant to this
18 Section, once made, may not be revoked by the eligible
19 spouse.
20 (e) (f) Within a reasonable period of time preceding the
21 date a participant's annuity commences, a participant shall
22 be supplied with a written explanation of (1) the terms and
23 conditions of the normal form single-life annuity and
24 qualified 50% joint and survivor annuity, (2) the
25 participant's right, if any, to elect a single-life annuity
26 or an optional form of payment under subsection (h) (k) in
27 lieu of the 50% joint and survivor annuity and subject, in
28 certain cases, to his or her eligible spouse's consent, if
29 applicable, and (3) the participant's right to reinstate
30 coverage under the qualified 50% joint and survivor annuity
31 prior to his or her annuity commencement date by revoking an
32 election of a single-life annuity or an optional form of
33 benefit under subsection (h) (k).
34 (g) If a participant does not have an eligible spouse
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1 on the date his or her annuity payments commence, the
2 participant shall receive a single-life annuity, subject to
3 his or her right, if any, to elect an optional form of
4 benefit. The last payment of the single-life annuity shall be
5 made as of the first day of the month in which the death of
6 the participant occurs.
7 (h) A participant with a least 5 years of service whose
8 employment has not terminated shall be covered by the 50%
9 joint and survivor annuity provisions so that if he or she
10 dies prior to termination of employment, his or her eligible
11 spouse will be entitled to receive an annuity. The annuity
12 payable under this subsection (h) to the eligible spouse
13 shall be actuarially equivalent to the
14 (f) If a married participant with at least 5 years of
15 service dies prior to commencing retirement annuity payments
16 and prior to taking a refund under Section 15-154, his or her
17 eligible spouse is entitled to receive a pre-retirement
18 survivor annuity, if there is not then in effect a waiver of
19 the pre-retirement survivor annuity. The pre-retirement
20 survivor annuity payable under this subsection shall be a
21 monthly annuity payable for the eligible spouse's life,
22 commencing as of the beginning of the month next following
23 the later of the date of the participant's death or the date
24 the participant would have first met the eligibility
25 requirements for retirement, and continuing through the
26 beginning of the month in which the death of the eligible
27 spouse occurs. The monthly amount payable to the spouse
28 under the pre-retirement survivor annuity shall be equal to
29 the monthly amount that would be payable as a survivor
30 annuity under the qualified joint and survivor annuity
31 described in subsection (b) if: (1) in the case of a
32 participant who dies on or after the date on which the
33 participant has met the eligibility requirements for attained
34 the earliest retirement age, the participant had retired with
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1 an immediate qualified joint and survivor annuity on the day
2 before the participant's date of death; or (2) in the case
3 of a participant who dies on or before the earliest date on
4 which the participant would have met the eligibility
5 requirements for attained the earliest retirement age, the
6 participant had separated from service on the date of death,
7 survived to the earliest retirement age based on service
8 prior to his or her death, retired with an immediate
9 qualified joint and survivor annuity at the earliest
10 retirement age, and died on the day after the day on which
11 the participant would have attained the earliest retirement
12 age.
13 (g) A married participant who has not retired may elect
14 at any time to waive the pre-retirement survivor annuity
15 described in subsection (f). Any such election shall require
16 the consent of the participant's eligible spouse in the
17 manner described in subsection (e). A waiver of the
18 pre-retirement survivor annuity shall increase the lump sum
19 death benefit payable under subsection (b) of Section 15-141.
20 Prior to electing any waiver of the pre-retirement survivor
21 annuity, the participant shall be provided with a written
22 explanation of (1) the terms and conditions of the
23 pre-retirement survivor annuity and the death benefits
24 payable from the system both with and without the
25 pre-retirement survivor annuity, (2) the participant's right
26 to elect a waiver of the pre-retirement survivor annuity
27 coverage subject to his or her spouse's consent, and (3) the
28 participant's right to reinstate pre-retirement survivor
29 annuity coverage at any time by revoking a prior waiver of
30 such coverage.
31 (h) By filing a timely election with the system, a
32 participant who will be eligible to receive a retirement
33 annuity under this Section may waive the normal form of
34 annuity payment described in subsection (b), subject to
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1 obtaining the consent of his or her eligible spouse, if
2 applicable, and elect to receive any one of the following
3 optional annuity forms:
4 (1) Joint and Survivor Annuity Options: The
5 participant may elect to receive a reduced annuity
6 payable for his or her life and to have a lifetime
7 survivorship annuity in a monthly amount equal to 50%,
8 75%, or 100% (as elected by the participant) of that
9 reduced monthly amount, to be paid after the
10 participant's death to his or her contingent annuitant,
11 if the contingent annuitant is alive at the time of the
12 participant's death.
13 (2) Single-Life Annuity Option (optional for
14 married participants). The participant may elect to
15 receive a single-life annuity payable for his or her life
16 only.
17 All optional forms shall be in an amount that is the
18 actuarial equivalent of the single-life annuity.
19 For the purposes of this Section, the term "contingent
20 annuitant" means the beneficiary who is designated by a
21 participant at the time the participant elects a joint and
22 survivor annuity to receive the lifetime survivorship annuity
23 in the event the beneficiary survives the participant at the
24 participant's death.
25 The annuity payable to an eligible spouse of a
26 participant shall commence as of the beginning of the month
27 next following the later of the date of death or the date the
28 participant would have met the eligibility requirements for
29 an annuity and shall continue through the beginning of the
30 month in which the death of the eligible spouse occurs.
31 No benefit shall be payable under this subsection (h) for
32 death during employment after the participant has satisfied
33 the requirements for retirement if an option is effective
34 under subsection (k).
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1 (i) A participant who (1) has terminated employment with
2 at least 5 years of service, (2) has not begun receiving
3 annuity payments, (3) has not taken a refund under Section
4 15-154(a-2), and (4) has not elected an effective option
5 under subsection (k), shall be covered by the 50% joint and
6 survivor annuity provisions of subsection (b) until the date
7 his or her annuity payments commence. If the participant
8 dies before the date his or her annuity payments commence,
9 the participant's surviving eligible spouse shall receive an
10 annuity computed in accordance with the applicable provisions
11 of this Section as if the participant's annuity payments had
12 commenced on the first day of the month coincident with or
13 next following the later of his or her date of death or the
14 date the participant would have been eligible for a
15 retirement annuity based on service prior to his or her
16 death. The annuity payable to such an eligible spouse shall
17 commence on the first day of the month coincident with or
18 next following the later of the participant's date of death
19 or the date the participant would have been eligible for a
20 retirement annuity based on service prior to his death and
21 shall continue through the beginning of the month in which
22 the death of the eligible spouse occurs.
23 (j) The provisions of subsection (i) shall not affect
24 the right of a participant to elect a single-life annuity,
25 pursuant to the provisions of subsection (b).
26 (k) By filing a timely election with the system, a
27 participant who will be eligible to receive a retirement
28 annuity under this Section may designate his or her spouse or
29 any person approved by the system as his or her contingent
30 annuitant and elect to receive an annuity payable in
31 accordance with one of the following options, instead of the
32 annuity to which he or she may otherwise become entitled:
33 Option 1: The participant shall receive a reduced
34 annuity payable for life, and payments in the amount of
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1 100% of such reduced amount shall, after the
2 participant's death, be continued to the contingent
3 annuitant during the latter's lifetime.
4 Option 2: The participant shall receive a reduced
5 annuity payable for life, and payments in the amount of
6 75% of such reduced annuity shall, after the
7 participant's death, be continued to the contingent
8 annuitant during the latter's lifetime.
9 Option 3: The participant shall receive a reduced
10 annuity payable for life, and payments in the amount of
11 50% of such reduced annuity shall, after the
12 participant's death, be continued to the contingent
13 annuitant during the latter's lifetime.
14 The aggregate of the annuity payments expected to be paid
15 to a participant and his contingent annuitant under any of
16 the above options shall be the actuarial equivalent of the
17 annuity that the participant is otherwise entitled to receive
18 upon retirement.
19 (i) Under no circumstances may an option be elected,
20 changed, or revoked after the date the participant's
21 retirement annuity commences. An option in favor of a
22 contingent annuitant who is not the participant's eligible
23 spouse may be revoked at any time prior to the date the
24 participant's annuity payments commence. If the contingent
25 annuitant under the elected option is not the participant's
26 eligible spouse, then the election is valid only if the
27 eligible spouse consents to the participant's optional
28 election and to the specific contingent annuitant within the
29 90-day period preceding the date the participant's annuity
30 commences.
31 (j) An election made pursuant to this subsection (h) (k)
32 shall become inoperative if the participant's employment
33 terminates before he or she is eligible for a retirement
34 annuity, or if the participant or the contingent annuitant
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1 dies before the date the participant's annuity payments
2 commence, or if the eligible spouse's consent is required and
3 not given.
4 (k) For purposes of applying the provisions of Section
5 20-123 of this Code, the portable benefit package shall be
6 treated as if it were provided by a participating system that
7 has no survivor's annuity benefit. An effective option under
8 this subsection (k) takes the place of any benefit otherwise
9 payable under this Section, and the form made available by
10 the system for election of the option shall so specify.
11 (1) Within the appropriate applicable period under
12 Section 417 of the Internal Revenue Code of 1986, as amended
13 from time to time, a participant shall be supplied with a
14 written explanation of (1) the terms and conditions of the
15 preretirement survivor annuity under subsections (h) and (i),
16 (2) the participant's right, if any, to elect a single-life
17 annuity or an optional form of payment under subsection (k)
18 in lieu of the preretirement survivor annuity and subject, in
19 certain cases, to his or her eligible spouse's consent, and
20 (3) the participant's right to reinstate coverage under the
21 preretirement survivor annuity by revoking an election of a
22 single-life annuity or an optional form of benefit under
23 subsection (k).
24 (Source: P.A. 90-448, eff. 8-16-97.)
25 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
26 Sec. 15-141. Death benefits - Death of participant.
27 (a) The beneficiary of a participant under the
28 traditional benefit package is entitled to a death benefit
29 equal to the sum of (1) the employee's accumulated normal and
30 additional contributions on the date of death, (2) the
31 employee's accumulated survivors insurance contributions on
32 the date of death, if a survivors insurance benefit is not
33 payable, (3) an amount equal to the employee's final rate of
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1 earnings, but not more than $5,000 if (i) the beneficiary,
2 under rules of the board, was dependent upon the participant,
3 (ii) the participant was a participating employee immediately
4 prior to his or her death, and (iii) a survivors insurance
5 benefit is not payable, and (4) $2,500 if (i) the beneficiary
6 was not dependent upon the participant, (ii) the participant
7 was a participating employee immediately prior to his or her
8 death, and (iii) a survivors insurance benefit is not
9 payable.
10 (b) However, If the participant has elected to
11 participate in the portable benefit package and has completed
12 the one-year waiting period required under subsection (e) of
13 retirement benefit program by making the election specified
14 in Section 15-134.5 15-154(a-1), the death benefit shall be
15 calculated as follows. The death benefit shall be equal to
16 the employee's accumulated normal and additional
17 contributions on the date of death plus, or if the employee
18 died with 5 or more years of service for employment as
19 defined in Section 15-113.1, his or her beneficiary shall
20 also be entitled to employer contributions in an amount equal
21 to the sum of the accumulated normal and additional
22 contributions; except that if a pre-retirement survivor
23 annuity benefit to a surviving spouse is payable under
24 Section 15-136.4, the death benefit payable under this
25 paragraph shall be reduced, but to not less than zero, by the
26 actuarial value of the benefit payable to the surviving
27 spouse. The beneficiary of the participant must be his or
28 her spouse unless the spouse has consented to the designation
29 of another beneficiary in the manner described in subsection
30 (d) of Section 15-136.4.
31 (c) If payments are made under any State or Federal
32 Workers' Compensation or Occupational Diseases Law because of
33 the death of an employee, the portion of the death benefit
34 payable from employer contributions shall be reduced by the
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1 total amount of the payments.
2 (Source: P.A. 90-448, eff. 8-16-97.)
3 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
4 Sec. 15-142. Death benefits - Death of annuitant. Upon
5 the death of an annuitant receiving a retirement annuity or
6 disability retirement annuity, the annuitant's beneficiary
7 shall, if a survivor's insurance benefit is not payable under
8 Section 15-145 and a pre-retirement survivor or an annuity is
9 not payable under Section 15-136.4, be entitled to a death
10 benefit equal to the greater of the following: (1) the
11 excess, if any, of the sum of the accumulated normal,
12 survivors insurance, and additional contributions as of the
13 date of retirement, or the date the disability retirement
14 annuity began, whichever is earlier, over the sum of all
15 annuity payments made prior to the date of death, or (2)
16 $1,000.
17 (Source: P.A. 90-448, eff. 8-16-97.)
18 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
19 Sec. 15-145. Survivors insurance benefits; conditions
20 and amounts.
21 (a) The survivors insurance benefits provided under this
22 Section shall be payable to the eligible survivors of a
23 participant covered under the traditional benefit package
24 upon the death of (1) a participating employee with at least
25 1 1/2 years of service, (2) a participant who terminated
26 employment with at least 10 years of service, and (3) an
27 annuitant in receipt of a retirement annuity or disability
28 retirement annuity under this Article.
29 Service under the State Employees' Retirement System of
30 Illinois, the Teachers' Retirement System of the State of
31 Illinois and the Public School Teachers' Teacher's Pension
32 and Retirement Fund of Chicago shall be considered in
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1 determining eligibility for survivors benefits under this
2 Section.
3 If by law, a function of a governmental unit, as defined
4 by Section 20-107, is transferred in whole or in part to an
5 employer, and an employee transfers employment from this
6 governmental unit to such employer within 6 months after the
7 transfer of this function, the service credits in the
8 governmental unit's retirement system which have been
9 validated under Section 20-109 shall be considered in
10 determining eligibility for survivors benefits under this
11 Section.
12 (b) A surviving spouse of a deceased participant, or of
13 a deceased annuitant who had a survivors insurance
14 beneficiary at the time of retirement, shall receive a
15 survivors annuity of 30% of the final rate of earnings.
16 Payments shall begin on the day following the participant's
17 or annuitant's death or the date the surviving spouse attains
18 age 50, whichever is later, and continue until the death of
19 the surviving spouse. The annuity shall be payable to the
20 surviving spouse prior to attainment of age 50 if the
21 surviving spouse has in his or her care a deceased
22 participant's or annuitant's dependent unmarried child under
23 age 18 (under age 22 if a full-time student) who is eligible
24 for a survivors annuity. Remarriage of a surviving spouse
25 prior to attainment of age 55 shall disqualify him or her for
26 the receipt of a survivors annuity.
27 (c) Each dependent unmarried child under age 18 (under
28 age 22 if a full-time student) of a deceased participant, or
29 of a deceased annuitant who had a survivors insurance
30 beneficiary at the time of his or her retirement, shall
31 receive a survivors annuity equal to the sum of (1) 20% of
32 the final rate of earnings, and (2) 10% of the final rate of
33 earnings divided by the number of children entitled to this
34 benefit. Payments shall begin on the day following the
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1 participant's or annuitant's death and continue until the
2 child marries, dies, or attains age 18 (age 22 if a full-time
3 student). If the child is in the care of a surviving spouse
4 who is eligible for survivors insurance benefits, the child's
5 benefit shall be paid to the surviving spouse.
6 Each unmarried child over age 18 of a deceased
7 participant or of a deceased annuitant who had a survivor's
8 insurance beneficiary at the time of his or her retirement,
9 and who was dependent upon the participant or annuitant by
10 reason of a physical or mental disability which began prior
11 to the date the child attained age 18 (age 22 if a full-time
12 student), shall receive a survivor's annuity equal to the sum
13 of (1) 20% of the final rate of earnings, and (2) 10% of the
14 final rate of earnings divided by the number of children
15 entitled to survivors benefits. Payments shall begin on the
16 day following the participant's or annuitant's death and
17 continue until the child marries, dies, or is no longer
18 disabled. If the child is in the care of a surviving spouse
19 who is eligible for survivors insurance benefits, the child's
20 benefit may be paid to the surviving spouse. For the
21 purposes of this Section, disability means inability to
22 engage in any substantial gainful activity by reason of any
23 medically determinable physical or mental impairment that can
24 be expected to result in death or that has lasted or can be
25 expected to last for a continuous period of at least one
26 year.
27 (d) Each dependent parent of a deceased participant, or
28 of a deceased annuitant who had a survivors insurance
29 beneficiary at the time of his or her retirement, shall
30 receive a survivors annuity equal to the sum of (1) 20% of
31 final rate of earnings, and (2) 10% of final rate of earnings
32 divided by the number of parents who qualify for the benefit.
33 Payments shall begin when the parent reaches age 55 or the
34 day following the participant's or annuitant's death,
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1 whichever is later, and continue until the parent dies.
2 Remarriage of a parent prior to attainment of age 55 shall
3 disqualify the parent for the receipt of a survivors annuity.
4 (e) In addition to the survivors annuity provided above,
5 each survivors insurance beneficiary shall, upon death of the
6 participant or annuitant, receive a lump sum payment of
7 $1,000 divided by the number of such beneficiaries.
8 (f) The changes made in this Section by Public Act
9 81-712 pertaining to survivors annuities in cases of
10 remarriage prior to age 55 shall apply to each survivors
11 insurance beneficiary who remarries after June 30, 1979,
12 regardless of the date that the participant or annuitant
13 terminated his employment or died.
14 (g) On January 1, 1981, any person who was receiving a
15 survivors annuity on or before January 1, 1971 shall have the
16 survivors annuity then being paid increased by 1% for each
17 full year which has elapsed from the date the annuity began.
18 On January 1, 1982, any survivor whose annuity began after
19 January 1, 1971, but before January 1, 1981, shall have the
20 survivor's annuity then being paid increased by 1% for each
21 year which has elapsed from the date the survivor's annuity
22 began. On January 1, 1987, any survivor who began receiving a
23 survivor's annuity on or before January 1, 1977, shall have
24 the monthly survivor's annuity increased by $1 for each full
25 year which has elapsed since the date the survivor's annuity
26 began.
27 (h) If the sum of the lump sum and total monthly
28 survivor benefits payable under this Section upon the death
29 of a participant amounts to less than the sum of the death
30 benefits payable under items (2) and (3) of Section 15-141,
31 the difference shall be paid in a lump sum to the beneficiary
32 of the participant who is living on the date that this
33 additional amount becomes payable.
34 (i) If the sum of the lump sum and total monthly
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1 survivor benefits payable under this Section upon the death
2 of an annuitant receiving a retirement annuity or disability
3 retirement annuity amounts to less than the death benefit
4 payable under Section 15-142, the difference shall be paid to
5 the beneficiary of the annuitant who is living on the date
6 that this additional amount becomes payable.
7 (j) Effective on the later of (1) January 1, 1990, or
8 (2) the January 1 on or next after the date on which the
9 survivor annuity begins, if the deceased member died while
10 receiving a retirement annuity, or in all other cases the
11 January 1 nearest the first anniversary of the date the
12 survivor annuity payments begin, every survivors insurance
13 beneficiary shall receive an increase in his or her monthly
14 survivors annuity of 3%. On each January 1 after the initial
15 increase, the monthly survivors annuity shall be increased by
16 3% of the total survivors annuity provided under this
17 Article, including previous increases provided by this
18 subsection. Such increases shall apply to the survivors
19 insurance beneficiaries of each participant and annuitant,
20 whether or not the employment status of the participant or
21 annuitant terminates before the effective date of this
22 amendatory Act of 1990.
23 (k) If the Internal Revenue Code of 1986, as amended,
24 requires that the survivors benefits be payable at an age
25 earlier than that specified in this Section the benefits
26 shall begin at the earlier age, in which event, the
27 survivor's beneficiary shall be entitled only to that amount
28 which is equal to the actuarial equivalent of the benefits
29 provided by this Section.
30 (l) The changes made to this Section and Section 15-131
31 by this amendatory Act of 1997, relating to benefits for
32 certain unmarried children who are full-time students under
33 age 22, apply without regard to whether the deceased member
34 was in service on or after the effective date of this
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1 amendatory Act of 1997. These changes do not authorize the
2 repayment of a refund or a re-election of benefits, and any
3 benefit or increase in benefits resulting from these changes
4 is not payable retroactively for any period before the
5 effective date of this amendatory Act of 1997.
6 (Source: P.A. 90-448, eff. 8-16-97; revised 2-24-98.)
7 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
8 Sec. 15-146. Survivors insurance benefits - Minimum
9 amounts.
10 (a) The minimum total survivors annuity payable on
11 account of the death of a participant shall be 50% of the
12 retirement annuity which would have been provided under Rule
13 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
14 attainment of the minimum age at which the penalty for early
15 retirement would not be applicable or the date of the
16 participant's death, whichever is later, on the basis of
17 credits earned prior to the time of death.
18 (b) The minimum total survivors annuity payable on
19 account of the death of an annuitant shall be 50% of the
20 retirement annuity which is payable under Section 15-136 at
21 the time of death or 50% of the disability retirement annuity
22 payable under Section 15-153.2. This minimum survivors
23 annuity shall apply to each participant and annuitant who
24 dies after September 16, 1979, whether or not his or her
25 employee status terminates before or after that date.
26 (c) If an annuitant has elected a reversionary annuity,
27 the retirement annuity referred to in this Section is that
28 which would have been payable had such election not been
29 filed.
30 (d) If a participant has made the election provided for
31 under Section 15-154(a-1), the minimum survivor benefit shall
32 be determined under Section 15-136.4.
33 (Source: P.A. 90-448, eff. 8-16-97.)
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1 (40 ILCS 5/15-150) (from Ch. 108 1/2, par. 15-150)
2 Sec. 15-150. Disability benefits - Eligibility. A
3 participant may be granted is entitled to a disability
4 benefit if: (1) while a participating employee, he or she
5 becomes physically or mentally incapacitated and unable to
6 perform the duties of his or her assigned position for any
7 period exceeding 60 days; and (2) the employee had completed
8 2 years of service at the time of disability, unless the
9 disability is a result of an accident.
10 An employee shall be considered disabled only during the
11 period for which the board determines, based upon the
12 evidence listed below, has received (1) a written certificate
13 by at least 2 licensed and practicing physicians appointed by
14 the board stating that the employee is disabled and unable to
15 reasonably perform the duties of his or her assigned position
16 as a result of a physical or mental disability. This
17 determination shall be based upon:
18 (i) a written certificate from one or more licensed
19 and practicing physicians appointed by or acceptable to
20 the board, stating that the employee is disabled and
21 unable to reasonably perform the duties of his or her
22 assigned position;
23 (ii) and (2) a written certificate from by the
24 employer stating that the employee is unable to perform
25 the duties of his or her assigned that position; and
26 (iii) any other medical examinations, hospital
27 records, laboratory results, or other information
28 necessary for determining the employment capacity and
29 condition of the employee.
30 The board shall prescribe rules governing the filing,
31 investigation, control, and supervision of disability claims.
32 Costs incurred by a claimant in connection with completing a
33 claim for disability benefits shall be paid (A) by the
34 claimant, in the case of the one required medical
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1 examination, medical certificate, and employer's certificate
2 and any other requirements generally imposed by the board on
3 all disability benefit claimants; and (B) by the System, in
4 the case of any additional medical examination or other
5 additional requirement imposed on a particular claimant that
6 is not imposed generally on all disability benefit claimants.
7 Pregnancy and childbirth shall be considered a
8 disability.
9 (Source: P.A. 84-1028.)
10 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
11 Sec. 15-153.2. Disability retirement annuity. A
12 participant whose disability benefits are discontinued under
13 the provisions of clause (6) of Section 15-152 and who is not
14 a participant in the optional retirement plan established
15 under Section 15-158.2, is entitled to a disability
16 retirement annuity of 35% of the basic compensation which was
17 payable to the participant at the time that disability began,
18 provided that at least 2 licensed and practicing physicians
19 appointed by the board determines certify that the
20 participant has a medically determinable physical or mental
21 impairment that prevents which would prevent him or her from
22 engaging in any substantial gainful activity, and which can
23 be expected to result in death or which has lasted or can be
24 expected to last for a continuous period of not less than 12
25 months.
26 The board's determination of whether a participant is
27 disabled shall be based upon:
28 (i) a written certificate from one or more licensed
29 and practicing physicians appointed by or acceptable to
30 the board, stating that the participant is unable to
31 engage in any substantial gainful activity; and
32 (ii) any other medical examinations, hospital
33 records, laboratory results, or other information
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1 necessary for determining the employment capacity and
2 condition of the participant.
3 The terms "medically determinable physical or mental
4 impairment" and "substantial gainful activity" shall have the
5 meanings ascribed to them in the federal "Social Security
6 Act", as now or hereafter amended, and the regulations issued
7 thereunder.
8 The disability retirement annuity payment period shall
9 begin immediately following the expiration of the disability
10 benefit payments under clause (6) of Section 15-152 and shall
11 be discontinued when (1) the physical or mental impairment no
12 longer prevents the participant from engaging in any
13 substantial gainful activity, (2) the participant dies or (3)
14 the participant elects to receive a retirement annuity under
15 Sections 15-135 and 15-136. If a person's disability
16 retirement annuity is discontinued under clause (1), all
17 rights and credits accrued in the system on the date that the
18 disability retirement annuity began shall be restored, and
19 the disability retirement annuity paid shall be considered as
20 disability payments under clause (6) of Section 15-152.
21 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
22 eff. 8-22-97.)
23 (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
24 Sec. 15-153.3. Automatic increase in disability benefit.
25 Each disability benefit payable under Section 15-150 and
26 calculated under Section 15-153 or 15-153.2 shall be
27 increased by 7% of the original fixed amount of such benefit
28 on January 1, 1991 or January 1 on or next following the
29 fourth anniversary of the granting of the benefit, whichever
30 occurs later. On each January 1 following the 7% increase,
31 the disability benefit shall be increased by 3% of the
32 current amount of the benefit, including prior increases
33 under this Article.
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1 (Source: P.A. 86-1488.)
2 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
3 Sec. 15-154. Refunds.
4 (a) A participant whose status as an employee is
5 terminated, regardless of cause, or who has been on lay off
6 status for more than 120 days, and who is not on leave of
7 absence, is entitled to a refund of contributions upon
8 application; except that not more than one such refund
9 application may be made during any academic year.
10 Except as set forth in subsections (a-1) and (a-2), the
11 refund shall be the sum of the accumulated normal, additional
12 and survivors insurance contributions, less the amount of
13 interest credited on these contributions each year in excess
14 of 4 1/2% of the amount on which interest was calculated.
15 (a-1) A person who elects, in accordance with the
16 requirements of Section 15-134.5, to participate in the
17 portable benefit package and who becomes a participating
18 employee under that retirement program upon the conclusion of
19 the one-year waiting period applicable to the portable
20 benefit package election shall have his or her refund
21 calculated in accordance with the provisions of subsection
22 (a-2).
23 (a-1) Every person who becomes an eligible employee as
24 described in Section 15-158.2 after the date on which his or
25 her employer first offers an optional retirement program
26 under Section 15-158.2 may elect within 60 days of becoming a
27 participant to have any refund calculated pursuant to
28 subsection (a-2) by forgoing all survivors insurance benefits
29 to which the person's survivors would otherwise be entitled
30 under this Article. This election is irrevocable and may be
31 made by filing an election with the system on such form as
32 the Executive Director shall prescribe.
33 Each person who is an eligible employee as described in
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1 Section 15-158.2 on the date on which his or her employer
2 first offers an optional retirement program under Section
3 15-158.2 shall have a one-time option to elect to have his or
4 her refund calculated pursuant to subsection (a-2), by
5 forgoing all survivors insurance benefits to which the
6 person's survivors would otherwise be entitled under this
7 Article. The election will not be effective until one year
8 after the election is filed with the system. This election
9 is irrevocable and may be made by filing an election with the
10 system, on such form as the Executive Director shall
11 prescribe, within one year after the date on which his or her
12 employer first offers an optional retirement program under
13 Section 15-158.2.
14 A person may make the one-time irrevocable election
15 authorized under this Section or the election authorized
16 under Section 15-158.2(g), but may not make both elections.
17 Any person interested in electing the portable retirement
18 benefit program provided under this Section and Section
19 15-136.4 must be given a consultation with the State
20 Universities Retirement System before making that election.
21 (a-2) The refund payable to a participant described in
22 elected under subsection (a-1) shall be the sum of the
23 participant's accumulated normal and additional
24 contributions, as defined in Sections 15-116 and 15-117. If
25 the participant terminates with 5 or more years of service
26 for employment as defined in Section 15-113.1, he or she
27 shall also be entitled to a distribution refund of employer
28 contributions in an amount equal to the sum of the
29 accumulated normal and additional contributions, as defined
30 in Sections 15-116 and 15-117.
31 (b) Upon acceptance of a refund, the participant
32 forfeits all accrued rights and credits in the System, and if
33 subsequently reemployed, the participant shall be considered
34 a new employee subject to all the qualifying conditions for
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1 participation and eligibility for benefits applicable to new
2 employees. If such person again becomes a participating
3 employee and continues as such for 2 years, or is employed by
4 an employer and participates for at least 2 years in the
5 Federal Civil Service Retirement System, all such rights,
6 credits, and previous status as a participant shall be
7 restored upon repayment of the amount of the refund, together
8 with compound interest thereon from the date the refund was
9 received to the date of repayment at the rate of 6% per annum
10 through August 31, 1982, and at the effective rates after
11 that date.
12 (c) If a participant covered under the transitional
13 benefit package has made survivors insurance contributions,
14 but has no survivors insurance beneficiary upon retirement,
15 he or she shall be entitled to a refund of the accumulated
16 survivors insurance contributions, or to an additional
17 annuity the value of which is equal to the accumulated
18 survivors insurance contributions.
19 (d) A participant, upon application, is entitled to a
20 refund of his or her accumulated additional contributions
21 attributable to the additional contributions described in the
22 last sentence of subsection (c) of Section 15-157 except
23 those covering the cost of the annual increase in the
24 retirement annuity provided under Section 15-136. Upon the
25 acceptance of such a refund of accumulated additional
26 contributions, the participant forfeits all rights and
27 credits which may have accrued because of such contributions.
28 (e) A participant who terminates his or her employee
29 status and elects to waive service credit under Section
30 15-154.2, is entitled to a refund of the accumulated normal,
31 additional and survivors insurance contributions, if any,
32 which were credited the participant for this service, or to
33 an additional annuity the value of which is equal to the
34 accumulated normal, additional and survivors insurance
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1 contributions, if any; except that not more than one such
2 refund application may be made during any academic year. Upon
3 acceptance of this refund, the participant forfeits all
4 rights and credits accrued because of this service.
5 (f) If a police officer or firefighter receives a
6 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
7 he or she shall be entitled at retirement to a refund of the
8 difference between his or her accumulated normal
9 contributions and the normal contributions which would have
10 accumulated had such person filed a waiver of the retirement
11 formula provided by Rule 4 of Section 15-136.
12 (g) If, at the time of retirement, a participant would
13 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
14 of Section 15-136 that exceeds the maximum specified in
15 clause (1) of subsection (c) of Section 15-136, he or she
16 shall be entitled to a refund of the employee contributions,
17 if any, paid under Section 15-157 after the date upon which
18 continuance of such contributions would have otherwise caused
19 the retirement annuity to exceed this maximum, plus compound
20 interest at the effective rates.
21 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98.)
22 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
23 Sec. 15-157. Employee Contributions.
24 (a) Each participating employee shall make contributions
25 towards the retirement benefits payable under the retirement
26 program applicable to the employee from annuity of each
27 payment of earnings applicable to employment under this
28 system on and after the date of becoming a participant as
29 follows: Prior to September 1, 1949, 3 1/2% of earnings;
30 from September 1, 1949 to August 31, 1955, 5%; from September
31 1, 1955 to August 31, 1969, 6%; from September 1, 1969, 6
32 1/2%. These contributions are to be considered as normal
33 contributions for purposes of this Article.
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1 Each participant who is a police officer or firefighter
2 shall make normal contributions of 8% of each payment of
3 earnings applicable to employment as a police officer or
4 firefighter under this system on or after September 1, 1981,
5 unless he or she files with the board within 60 days after
6 the effective date of this amendatory Act of 1991 or 60 days
7 after the board receives notice that he or she is employed as
8 a police officer or firefighter, whichever is later, a
9 written notice waiving the retirement formula provided by
10 Rule 4 of Section 15-136. This waiver shall be irrevocable.
11 If a participant had met the conditions set forth in Section
12 15-132.1 prior to the effective date of this amendatory Act
13 of 1991 but failed to make the additional normal
14 contributions required by this paragraph, he or she may elect
15 to pay the additional contributions plus compound interest at
16 the effective rate. If such payment is received by the
17 board, the service shall be considered as police officer
18 service in calculating the retirement annuity under Rule 4 of
19 Section 15-136. While performing service described in clause
20 (i) or (ii) of Rule 4 of Section 15-136, a participating
21 employee shall be deemed to be employed as a firefighter for
22 the purpose of determining the rate of employee contributions
23 under this Section.
24 (b) Starting September 1, 1969, each participating
25 employee shall make additional contributions of 1/2 of 1% of
26 earnings to finance a portion of the cost of the annual
27 increases in retirement annuity provided under Section
28 15-136, except that with respect to participants in the
29 self-managed plan this additional contribution shall be used
30 to finance the benefits obtained under that retirement
31 program.
32 (c) In addition to the amounts described in subsections
33 (a) and (b) of this Section, each participating employee
34 shall make additional contributions of 1% of earnings
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1 applicable under this system on and after August 1, 1959.
2 The contributions contribution made under this subsection (c)
3 shall be considered as survivor's insurance contributions for
4 purposes of this Article if the employee is covered under the
5 traditional benefit package, and such contributions shall be
6 considered as additional contributions for purposes of this
7 Article if the employee is participating in the self-managed
8 plan or has elected to participate in the portable benefit
9 package and has completed the applicable one-year waiting
10 period shall be used to finance survivors insurance benefits,
11 unless the participant has made an election under Section
12 15-154(a-1), in which case the contribution made under this
13 subsection shall be used to finance the benefits obtained
14 under that election. Contributions in excess of $80 during
15 any fiscal year beginning before August 31, 1969 and in
16 excess of $120 during any fiscal year thereafter until
17 September 1, 1971 shall be considered as additional
18 contributions for purposes of this Article.
19 (d) If the board by board rule so permits and subject to
20 such conditions and limitations as may be specified in its
21 rules, a participant may make other additional contributions
22 of such percentage of earnings or amounts as the participant
23 shall elect in a written notice thereof received by the
24 board.
25 (e) That fraction of a participant's total accumulated
26 normal contributions, the numerator of which is equal to the
27 number of years of service in excess of that which is
28 required to qualify for the maximum retirement annuity, and
29 the denominator of which is equal to the total service of the
30 participant, shall be considered as accumulated additional
31 contributions. The determination of the applicable maximum
32 annuity and the adjustment in contributions required by this
33 provision shall be made as of the date of the participant's
34 retirement.
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1 (f) Notwithstanding the foregoing, a participating
2 employee shall not be required to make contributions under
3 this Section after the date upon which continuance of such
4 contributions would otherwise cause his or her retirement
5 annuity to exceed the maximum retirement annuity as specified
6 in clause (1) of subsection (c) of Section 15-136.
7 (g) A participating employee may make contributions for
8 the purchase of service credit under this Article.
9 (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97;
10 90-448, eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff.
11 3-31-98.)
12 (40 ILCS 5/15-158.2)
13 Sec. 15-158.2. Self-managed plan Optional retirement
14 program for educational employees.
15 (a) Purpose. The General Assembly finds that it is
16 important for colleges and universities to be able to attract
17 and retain the most qualified employees and that in order to
18 attract and retain these employees, colleges and universities
19 should have the flexibility to provide a defined contribution
20 plan as an alternative retirement program for eligible
21 employees who elect not to participate in a defined benefit
22 the other retirement program programs provided under this
23 Article. Accordingly, the State Universities Retirement
24 System is hereby authorized to establish and administer a
25 self-managed plan, which shall offer participating employees
26 the opportunity to accumulate assets for retirement through a
27 combination of employee and employer contributions that may
28 be invested in mutual funds, collective investment funds, or
29 other investment products and used to purchase annuity
30 contracts, either fixed or variable or a combination thereof.
31 The plan must be qualified under the Internal Revenue Code of
32 1986.
33 (b) Definitions. For the purposes of this Section,
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1 "eligible employee" means an employee (other than an employee
2 performing service described in clause (i) or (ii) of Rule 4
3 of Section 15-136) who is eligible to participate in the
4 State Universities Retirement System and who does not have
5 sufficient age and service to qualify for a retirement
6 annuity under Section 15-135. A "currently eligible
7 employee" is an employee who becomes an eligible employee on
8 the effective date of the optional retirement program
9 established by the employee's employer. A "newly eligible
10 employee" is an employee who becomes an eligible employee
11 after the effective date of the optional retirement program
12 established by the employee's employer.
13 (b) Adoption by employers. (c) Program. Each employer
14 subject to this Article may elect to adopt the self-managed
15 plan established establish an optional retirement program
16 under this Section; this election is irrevocable. An
17 employer's election to adopt the self-managed plan makes
18 available to the eligible employees of that employer the
19 elections described in Section 15-134.5. for the eligible
20 employees whom it employs. The optional retirement program
21 shall provide retirement benefits for participating employees
22 through the purchase of annuity contracts, either fixed or
23 variable or a combination thereof, through the purchase of
24 mutual funds, or through both and shall also provide for
25 disability benefits.
26 The State Universities Retirement System shall be the
27 plan sponsor for the self-managed plan and shall prepare a
28 plan document and prescribe such rules and procedures as are
29 considered necessary or desirable for the administration of
30 the self-managed plan program. Consistent with its fiduciary
31 duty to the participants and beneficiaries of the
32 self-managed plan program, the Board of Trustees of the
33 System may delegate aspects of plan program administration as
34 it sees fit to companies authorized to do business in this
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1 State, to the employers, or to a combination of both.
2 The plan must be qualified under the Internal Revenue
3 Code of 1986.
4 (c) Selection of service providers and funding vehicles.
5 (d) Proposals. The System, in consultation with the
6 employers, shall solicit proposals to provide administrative
7 services and funding vehicles for the self-managed plan
8 participate in the program from insurance and annuity
9 companies and mutual fund companies, banks, trust companies,
10 or other financial institutions authorized to do business in
11 this State. In reviewing the proposals received and
12 approving and contracting with no fewer than 2 and no more
13 than 7 companies, at least 2 of which must be insurance and
14 annuity companies, the Board of Trustees of the System shall
15 consider, among other things, the following criteria:
16 (1) the nature and extent of the benefits that
17 would be provided to the participants;
18 (2) the reasonableness of the benefits in relation
19 to the premium charged;
20 (3) the suitability of the benefits to the needs
21 and interests of the participating employees and the
22 employer;
23 (4) the ability of the company to provide benefits
24 under the contract and the financial stability of the
25 company; and
26 (5) the efficacy of the contract in the recruitment
27 and retention of employees.
28 An employer that elects to offer an optional retirement
29 program under subsection (c) may only select for
30 participation in the program 2 or more of the companies
31 approved by the Board of Trustees of the System. The System,
32 in consultation with the employers, shall periodically review
33 each approved company.; A company may continue to provide
34 administrative services and funding vehicles for the
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1 self-managed plan participate in the program only so long as
2 it continues to be an approved company under contract with
3 the Board.
4 (d) Employee Direction. Employees who are participating
5 in the program must be allowed to direct the transfer of
6 their account balances among the various investment options
7 offered, subject to applicable contractual provisions. The
8 participant shall not be deemed a fiduciary by reason of
9 providing such investment direction. A person who is a
10 fiduciary shall not be liable for any loss resulting from
11 such investment direction and shall not be deemed to have
12 breached any fiduciary duty by acting in accordance with that
13 direction. Neither the System nor the employer guarantees
14 any of the investments in the employee's account balances.
15 (e) Participation. An employee eligible to participate
16 in the self-managed plan must make a written election in
17 accordance with the provisions of Section 15-134.5 and the
18 procedures established by the System. Participation in the
19 self-managed plan by an electing employee shall begin on the
20 first day of the first pay period following the later of the
21 date the employee's election is filed with the System or the
22 effective date as of which the employee's employer begins to
23 offer participation in the self-managed plan. Employers may
24 not make the self-managed plan available earlier than January
25 1, 1998. An employee's participation in any other retirement
26 program administered by the System under this Article shall
27 terminate on the date that participation in the self-managed
28 plan begins.
29 An employee who has elected to participate in the
30 self-managed plan under this Section must continue
31 participation while employed in an eligible position, and may
32 not participate in any other retirement program administered
33 by the System under this Article while employed by that
34 employer or any other employer that has adopted the
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1 self-managed plan, unless the self-managed plan is terminated
2 in accordance with subsection (i).
3 Participation in the self-managed plan under this Section
4 shall constitute membership in the State Universities
5 Retirement System.
6 A participant under this Section shall be entitled to the
7 benefits of Article 20 of this Code modified to reflect the
8 following principles:
9 (1) The amount of any retirement annuities payable
10 under this Section depend solely on the value of the
11 participant's vested account balances and are not subject
12 to a maximum annuity benefit limitation or any adjustment
13 pursuant to the proportional retirement annuity
14 provisions of Article 20. If a participant in the
15 self-managed plan under this Section elects to apply the
16 provisions of Article 20, the dollar amount of the
17 proportional retirement annuity payable from the System
18 shall be deemed to be zero and the provisions of the
19 second paragraph of Section 20-131 shall not apply with
20 respect to the retirement annuity benefits payable to the
21 participant under this Section.
22 (2) For purposes of Section 20-123 of this Code,
23 the self-managed plan shall be treated as if it were
24 provided by a participating system that has no survivor's
25 annuity benefit.
26 (3) Notwithstanding Section 20-125 of this Code,
27 upon reemployment by a participating system of a retired
28 participant in the self-managed plan, the retirement
29 annuity payment made to such participant from any annuity
30 contracts acquired from the participant's self-managed
31 plan account balances shall not be suspended.
32 (f) Establishment of Initial Account Balance. If at the
33 time an employee elects to participate in the self-managed
34 plan he or she has rights and credits in the System due to
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1 previous participation in the traditional benefit package,
2 the System shall establish for the employee an opening
3 account balance in the self-managed plan, equal to the amount
4 of contribution refund that the employee would be eligible to
5 receive under Section 15-154 if the employee terminated
6 employment on that date and elected a refund of
7 contributions, except that this hypothetical refund shall
8 include interest at the effective rate for the respective
9 years. The System shall transfer assets from the defined
10 benefit retirement program to the self-managed plan, as a tax
11 free transfer in accordance with Internal Revenue Service
12 guidelines, for purposes of funding the employee's opening
13 account balance.
14 (g) No Duplication of Service Credit. Notwithstanding
15 any other provision of this Article, an employee may not
16 purchase or receive service or service credit applicable to
17 any other retirement program administered by the System under
18 this Article for any period during which the employee was a
19 participant in the self-managed plan established under this
20 Section.
21 (e) System Conflict of Interest. In order to preclude
22 any conflict of interest by the System, only insurance and
23 annuity companies and mutual fund companies that are
24 authorized to do business in this State may be approved, in
25 accordance with the procedures of subsection (d), to
26 participate in this program and offer investment options for
27 program participants.
28 (f) Account Balance Transfers. Employees who are
29 participating in the program must be allowed to transfer
30 their account balances from the investment options offered by
31 one of the companies selected by the employer to the
32 investment options offered by another company so selected,
33 subject to applicable contractual provisions.
34 (g) Participation. Any eligible employee may elect to
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1 participate in the optional retirement program offered by the
2 employer under subsection (c). The election must be made in
3 writing and in the manner prescribed by the System. A
4 currently eligible employee must make this election within
5 one year after the effective date of the employer's optional
6 retirement program. A newly eligible employee must make this
7 election within 60 days after becoming an eligible employee.
8 A person may make the one-time irrevocable election
9 authorized under this Section or the election authorized
10 under Section 15-154(a-1), but may not make both elections.
11 The employer shall not remit contributions on behalf of a
12 newly eligible employee to the State Universities Retirement
13 System until the 60-day period has run unless an election by
14 the employee has been made earlier. Any eligible employee
15 interested in electing the optional retirement program
16 provided under this Section must be given a consultation with
17 the State Universities Retirement System before making that
18 election.
19 Participation in the optional retirement program shall
20 begin on the first day of the first pay period following the
21 date of election, but no earlier than January 1, 1998. The
22 employee's participation in any other retirement program
23 administered by the System under this Article shall terminate
24 on the date that participation in the optional retirement
25 program begins, and the employee shall thereby be deemed to
26 have elected to receive a refund of contributions as provided
27 in Section 15-154, except that such deemed refund shall
28 include interest at the effective rate for the respective
29 years, and except that any funds which would have been
30 received shall instead be transferred directly to the
31 optional retirement program as a tax free transfer in
32 accordance with Internal Revenue Service guidelines.
33 Notwithstanding any other provision of this Code, an
34 employee may not purchase or receive service or service
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1 credit applicable to any other retirement program
2 administered by the System under this Article for any period
3 during which the employee was a participant in the optional
4 retirement program established under this Section.
5 An employee who has elected to participate in the
6 optional retirement program under this Section must continue
7 participation while employed in an eligible position, and may
8 not participate in any other retirement program administered
9 by the System under this Article while employed by that
10 employer, unless the optional retirement program is
11 terminated in accordance with subsection (i).
12 Participation in the optional retirement program under
13 this Section shall constitute membership in the State
14 Universities Retirement System, although a participant under
15 this Section shall not be entitled to receive any benefits
16 under any other provisions of Article 15 or of Article 20.
17 An employee who receives a disability benefit or a retirement
18 benefit under this Section or an employee who receives a lump
19 sum distribution from a mutual fund company under this
20 Section and uses the lump sum to purchase an annuity shall be
21 considered an employee or an annuitant under Article 15 for
22 purposes of the State Employees Group Insurance Act of 1971.
23 Participation in the optional retirement program under this
24 Section creates a contractual relationship with respect to
25 the investment of the employee's account balance between the
26 employee and the company providing the investment options for
27 the employee's account balance. Participation does not
28 create a contractual relationship between the employee and
29 the System or between the employee and his or her employer.
30 (h) Contributions. The self-managed plan shall be funded
31 by contributions from employees participating in the
32 self-managed plan and employer contributions as provided in
33 this Section.
34 The contribution rate for employees participating in the
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1 self-managed plan optional retirement program under this
2 Section shall be equal to the employee contribution rate for
3 other participants in the System, as provided in Section
4 15-157. This required contribution shall may be made as an
5 "employer pick-up" under Section 414(h) of the Internal
6 Revenue Code of 1986 or any successor Section thereof. Any
7 employee participating in the System's traditional benefit
8 package prior to his or her election System or who elects to
9 participate in the self-managed plan optional retirement
10 program shall continue to have the employer pick up "pick-up"
11 the contributions required under Section 15-157 contribution.
12 However, the amounts picked up after the election of the
13 self-managed plan optional retirement program shall be
14 remitted to and treated as assets of the self-managed the
15 optional retirement plan. In no event shall an employee have
16 an option of receiving these amounts in cash. Employees may
17 make additional contributions to the self-managed plan in
18 accordance with procedures prescribed by the System, to the
19 extent permitted under rules prescribed by the System.
20 The program shall provide for employer contributions to
21 be credited to each self-managed plan participant at a rate
22 of no more than 7.6% of the participating employee's salary,
23 less the amount used by the System to provide disability
24 benefits for the employee. The amounts so credited shall be
25 paid into the participant's self-managed plan accounts in a
26 manner to be prescribed by the System.
27 An amount of employer contribution, not exceeding 1% of
28 the participating employee's salary, shall be used for the
29 purpose of providing the disability benefits of the System to
30 the employee. Prior to the beginning of each plan year under
31 the self-managed plan, the Board of Trustees shall determine,
32 as a percentage of salary, the amount of employer
33 contributions to be allocated during that plan year for
34 providing disability benefits for employees in the
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1 self-managed plan. The optional retirement program shall be
2 funded by contributions from employees participating in the
3 program and employer contributions as required by the plan.
4 The plan shall be funded in a manner consistent with the
5 requirements of Internal Revenue Code Section 412, and
6 regulations promulgated thereunder, as that Section applies
7 to money purchase plans.
8 The State of Illinois shall make contributions by
9 appropriations to the System of the employer contributions
10 required for employees who participate in the self-managed
11 plan optional retirement program under this Section. The
12 amount required shall be certified by the Board of Trustees
13 of the System and paid by the State in accordance with
14 Section 15-165. The System shall not be obligated to remit
15 the required employer contributions to any of the insurance
16 and annuity companies, and mutual fund companies, banks,
17 trust companies, financial institutions, or other sponsors of
18 any of the funding vehicles offered under the self-managed
19 plan participating in the optional retirement program under
20 subsection (d) until it has received the required employer
21 contributions from the State. In the event of a deficiency
22 in the amount of State contributions, the System shall
23 implement those procedures described in subsection (c) of
24 Section 15-165 to obtain the required funding from the
25 General Revenue Fund.
26 The contributions and interest thereon, and any benefits
27 based upon them, shall be treated as provided in the funding
28 vehicles for this plan. An amount of up to 1% of each
29 participating employee's salary shall be taken from the
30 employer contribution to the optional retirement program and
31 shall be contributed, on the employee's behalf, to a plan
32 which the System offers to provide for disability benefits.
33 (i) Termination. The self-managed plan An optional
34 retirement program authorized under this Section may be
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1 terminated by the System employer, subject to the terms of
2 any relevant contracts, and the System employer shall have no
3 obligation to reestablish the self-managed plan an optional
4 retirement program under this Section. This Section does not
5 create a right to continued participation in any self-managed
6 plan optional retirement program set up by the System an
7 employer under this Section. If the self-managed plan an
8 optional retirement program is terminated, the participants
9 shall have the right to participate in one of the other
10 retirement programs offered by the System and receive service
11 credit in such other retirement program for any years of
12 employment following the termination.
13 (j) Vesting; Withdrawal; Return to Service. A
14 participant in the self-managed plan becomes vested in the
15 employer contributions credited to his or her accounts in the
16 self-managed plan on the earliest to occur of the following:
17 (1) completion of 5 years of service with an employer
18 described in Section 15-106; (2) the death of the
19 participating employee while employed by an employer
20 described in Section 15-106, if the participant has completed
21 at least 1 1/2 years of service; or (3) the participant's
22 election to retire and apply the reciprocal provisions of
23 Article 20 of this Code.
24 A participant in the self-managed plan who receives a
25 distribution of his or her vested amounts from the
26 self-managed plan upon or after termination of employment
27 shall forfeit all service credit and accrued rights in the
28 System; if subsequently re-employed, the participant shall be
29 considered a new employee. If a former participant again
30 becomes a participating employee (or becomes employed by a
31 participating system under Article 20 of this Code) and
32 continues as such for at least 2 years, all such rights,
33 service credits, and previous status as a participant shall
34 be restored upon repayment of the amount of the distribution,
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1 without interest. Employer contributions shall be vested
2 after five years of employment.
3 (k) Benefit amounts. If an employee who is vested in
4 employer contributions terminates employment prior to
5 completing five years of service, the employee shall be
6 entitled to a benefit in accordance with the terms of the
7 employer's retirement plan which is based on the account
8 values accumulation value attributable to both employer and
9 employee the employee's contributions and any investment
10 return thereon.
11 If an employee who is not vested in employer
12 contributions terminates employment, the employee shall be
13 entitled to a benefit based solely on the account values
14 Benefits for employees who terminate with at least five years
15 of service shall be in accordance with the terms of the
16 optional retirement plan and based on the accumulation value
17 attributable to both the employer and the employee's
18 contributions and any investment return thereon, and the
19 employer contributions and any investment return thereon
20 shall be forfeited. Any employer contributions which are
21 forfeited shall be held in escrow by the company investing
22 those contributions and shall be used as directed by the
23 System for future allocations of to reduce the next premium
24 payment due from the employer contributions or for the
25 restoration of amounts previously forfeited by former
26 participants who again become participating employees.
27 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
28 90-576, eff. 3-31-98.)
29 (40 ILCS 5/15-158.3)
30 Sec. 15-158.3. Reports on cost reduction; effect on
31 retirement at any age with 30 years of service.
32 (a) On or before November 15, 2001 and on or before
33 November 15th of each year thereafter, the Board shall have
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1 the System's actuary prepare a report showing, on a fiscal
2 year by fiscal year basis, the actual rate of participation
3 in the self-managed plan optional retirement program
4 authorized by Section 15-158.2, (i) by employees of the
5 System's covered higher educational institutions who were
6 hired on or after the implementation date of the self-managed
7 plan optional retirement program and (ii) by other System
8 participants.
9 The actuary's report must also quantify the extent to
10 which employee optional retirement plan participation has
11 reduced the State's required contributions to the System,
12 expressed both in dollars and as a percentage of covered
13 payroll, in relation to what the State's contributions to the
14 System would have been (1) if the self-managed plan optional
15 retirement program had not been implemented, and (2) if 45%
16 of employees of the System's covered higher educational
17 institutions who were hired on or after the implementation
18 date of the self-managed plan optional retirement program had
19 elected to participate in the self-managed plan optional
20 retirement program and 10% of other System participants had
21 transferred to the self-managed plan optional retirement
22 program following its implementation.
23 (b) On or before November 15th of 2001 and on or before
24 November 15th of each year thereafter, the Illinois Board of
25 Higher Education, in conjunction with the Bureau of the
26 Budget, shall prepare a report showing, on a fiscal year by
27 fiscal year basis, the amount by which the costs associated
28 with compensable sick leave have been reduced as a result of
29 the termination of compensable sick leave accrual on and
30 after January 1, 1998 by employees of higher education
31 institutions who are participants in the System.
32 (c) On or before November 15 of 2001 and on or before
33 November 15th of each year thereafter, the Department of
34 Central Management Services shall prepare a report showing,
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1 on a fiscal year by fiscal year basis, the amount by which
2 the State's cost for health insurance coverage under the
3 State Employees Group Insurance Act of 1971 for retirees of
4 the State's universities and their survivors has declined as
5 a result of requiring some of those retirees and survivors to
6 contribute to the cost of their basic health insurance.
7 These year-by-year reductions in cost must be quantified both
8 in dollars and as a level percentage of payroll covered by
9 the System.
10 (d) The reports required under subsections (a), (b), and
11 (c) shall be disseminated to the Board, the Pension Laws
12 Commission, the Illinois Economic and Fiscal Commission, the
13 Illinois Board of Higher Education, and the Governor.
14 (e) The reports required under subsections (a), (b), and
15 (c) shall be taken into account by the Pension Laws
16 Commission in making any recommendation to extend by
17 legislation beyond December 31, 2002 the provision that
18 allows a System participant to retire at any age with 30 or
19 more years of service as authorized in Section 15-135. If
20 that provision is extended beyond December 31, 2002, and if
21 the most recent report under subsection (a) indicates that
22 actual State contributions to the System for the period
23 during which the self-managed plan optional retirement
24 program has been in operation have exceeded the projected
25 State contributions under the assumptions in clause (2) of
26 subsection (a), then any extension of the provision beyond
27 December 31, 2002 must require that the System's higher
28 educational institutions and agencies cover any funding
29 deficiency through an annual payment to the System out of
30 appropriate resources of their own.
31 (Source: P.A. 90-9, eff. 7-1-97.)
32 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
33 Sec. 15-165. To certify amounts and submit vouchers.
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1 (a) The Board shall certify to the Governor on or before
2 November 15 of each year the appropriation required from
3 State funds for the purposes of this System for the following
4 fiscal year. The certification shall include a copy of the
5 actuarial recommendations upon which it is based.
6 (b) The Board shall certify to the State Comptroller or
7 employer, as the case may be, from time to time, by its
8 president and secretary, with its seal attached, the amounts
9 payable to the System from the various funds.
10 (c) Beginning in State fiscal year 1996, on or as soon
11 as possible after the 15th day of each month the Board shall
12 submit vouchers for payment of State contributions to the
13 System, in a total monthly amount of one-twelfth of the
14 required annual State contribution certified under subsection
15 (a). These vouchers shall be paid by the State Comptroller
16 and Treasurer by warrants drawn on the funds appropriated to
17 the System for that fiscal year.
18 If in any month the amount remaining unexpended from all
19 other appropriations to the System for the applicable fiscal
20 year (including the appropriations to the System under
21 Section 8.12 of the State Finance Act and Section 1 of the
22 State Pension Funds Continuing Appropriation Act) is less
23 than the amount lawfully vouchered under this Section, the
24 difference shall be paid from the General Revenue Fund under
25 the continuing appropriation authority provided in Section
26 1.1 of the State Pension Funds Continuing Appropriation Act.
27 (d) So long as the payments received are the full amount
28 lawfully vouchered under this Section, payments received by
29 the System under this Section shall be applied first toward
30 the employer contribution to the self-managed plan optional
31 retirement program established under Section 15-158.2.
32 Payments shall be applied second toward the employer's
33 portion of the normal costs of the System, as defined in
34 subsection (f) of Section 15-155. The balance shall be
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1 applied toward the unfunded actuarial liabilities of the
2 System.
3 (e) In the event that the System does not receive, as a
4 result of legislative enactment or otherwise, payments
5 sufficient to fully fund the employer contribution to the
6 self-managed plan optional retirement program established
7 under Section 15-158.2 and to fully fund that portion of the
8 employer's portion of the normal costs of the System, as
9 calculated in accordance with Section 15-155(a-1), then any
10 payments received shall be applied proportionately to the
11 optional retirement program established under Section
12 15-158.2 and to the employer's portion of the normal costs of
13 the System, as calculated in accordance with Section
14 15-155(a-1).
15 (Source: P.A. 90-448, eff. 8-16-97.)
16 (40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
17 Sec. 15-167. To invest money. To invest the funds of
18 the system, subject to the requirements and restrictions set
19 forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
20 1-114, and 1-115, and 15-158.2(d) of this Code and to invest
21 in real estate acquired by purchase, gift, condemnation or
22 otherwise, and any office building or buildings existing or
23 to be constructed thereon, including any additions thereto or
24 expansions thereof, for the use of the system. The board may
25 lease surplus space in any of the buildings and use rental
26 proceeds for operation, maintenance, improving, expanding and
27 furnishing of the buildings or for any other lawful system
28 purpose.
29 No bank or savings and loan association shall receive
30 investment funds as permitted by this Section, unless it has
31 complied with the requirements established pursuant to
32 Section 6 of "An Act relating to certain investments of
33 public funds by public agencies", approved July 23, 1943, as
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1 now or hereafter amended. The limitations set forth in such
2 Section 6 shall be applicable only at the time of investment
3 and shall not require the liquidation of any investment at
4 any time.
5 The board shall have the authority to enter into such
6 agreements and to execute such documents as it determines to
7 be necessary to complete any investment transaction.
8 All investments shall be clearly held and accounted for
9 to indicate ownership by the board. The board may direct the
10 registration of securities in its own name or in the name of
11 a nominee created for the express purpose of registration of
12 securities by a national or state bank or trust company
13 authorized to conduct a trust business in the State of
14 Illinois.
15 Investments shall be carried at cost or at a value
16 determined in accordance with generally accepted accounting
17 principles and accounting procedures approved by the Board.
18 All additions to assets from income, interest, and
19 dividends from investments shall be used to pay benefits,
20 operating and administrative expenses of the system, debt
21 service, including any redemption premium, on any bonds
22 issued by the board, expenses incurred or deposits required
23 in connection with such bonds, and such other costs as may be
24 provided in accordance with this Article.
25 (Source: P.A. 90-19, eff. 6-20-97.)
26 (40 ILCS 5/18-129) (from Ch. 108 1/2, par. 18-129)
27 Sec. 18-129. Refund of contributions; repayment.
28 (a) A participant who ceases to be a judge may, upon
29 application to the Board, receive a refund of his or her
30 total contributions to the System including the contributions
31 made towards the automatic increase in retirement annuity and
32 contributions for the survivor's annuity, without interest,
33 provided he or she is not then immediately eligible to
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1 receive a retirement annuity.
2 Upon receipt of a refund, the applicant shall cease to be
3 a participant and shall thereupon relinquish all rights in
4 the System. However, upon again becoming a participant, the
5 judge shall receive credit for all previous judicial service
6 upon payment to the System of the amount refunded together
7 with interest at 4% per annum from the time of the refund to
8 the date of repayment.
9 (b) Upon death of a participant who did not become an
10 annuitant, where no spouse or other beneficiaries eligible
11 for an annuity survive, the participant's designated
12 beneficiary or estate shall be entitled to a refund of his or
13 her total contributions to the System, including
14 contributions made towards the automatic increase in
15 retirement annuity and contributions for the survivor's
16 annuity, without interest.
17 (c) Upon death of an annuitant, where no spouse or other
18 beneficiaries eligible for an annuity survive, the designated
19 beneficiary or estate shall receive a refund of the
20 contributions made for the survivor's annuity, without
21 interest. If the annuitant received annuity payments in the
22 aggregate less than his or her contributions for retirement
23 annuity and the contributions towards the automatic increase
24 in the retirement annuity, the designated beneficiary or
25 estate shall also be refunded the difference between the
26 total of such contributions, excluding interest, and the sum
27 of annuity payments made.
28 (d) A participant or annuitant whose marriage is
29 terminated by death or dissolution, an unmarried participant,
30 and an annuitant who was not married while he or she was a
31 judge, shall, upon application to the Board, receive a refund
32 of his or her contributions for the survivor's annuity,
33 without interest. Upon the issuance of a refund under this
34 subsection, the recipient's credit for survivor's annuity
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1 purposes shall terminate and the recipient shall not
2 thereafter make contributions for survivor's annuity, except
3 in accordance with subsection (f) or (g). Upon the death of
4 a participant or annuitant who received such a refund, any
5 eligible children shall nevertheless be entitled to the
6 child's annuities provided in Section 18-128.01.
7 (e) Upon the death of a surviving spouse who, together
8 with the deceased judge, did not receive annuity payments in
9 the aggregate equal to the judge's total contributions to the
10 System, the estate of the surviving spouse shall be refunded
11 the difference between the total payments and total
12 contributions, excluding interest.
13 (f) Upon marriage or remarriage, a participant or
14 annuitant shall receive full credit for survivor's annuity
15 purposes upon:
16 (1) in the case of a participant, making the
17 contributions required under Section 18-123 beginning on
18 the date of the marriage or remarriage;
19 (2) repaying in full any survivor's annuity
20 contributions that have been refunded; and
21 (3) making survivor's annuity contributions for the
22 period of participation during which he or she was
23 unmarried, together with interest thereon at 3% per
24 annum.
25 The time and manner of making such repayments shall be
26 prescribed by the Board.
27 (g) Upon marriage or remarriage, a participant who does
28 not make the payments required for full survivor's annuity
29 credit under subsection (f) may receive partial credit for
30 survivor's annuity by making survivor's annuity contributions
31 under Section 18-123 beginning on the date of the marriage or
32 remarriage.
33 Notwithstanding any other provision of this Article, the
34 survivor's annuity (but not any child's annuity) payable
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1 under this Article on behalf of a deceased person with only
2 partial credit for survivor's annuity shall be reduced by
3 multiplying the amount of the survivor's annuity that would
4 have been payable if the person had full credit by a
5 fraction, the numerator of which is the number of months of
6 service for which survivor's annuity contributions have been
7 credited in this System, and the denominator of which is the
8 total number of months of service in this System.
9 (Source: P.A. 86-273; 87-1265.)
10 (40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
11 Sec. 18-133.1. Pickup of contributions.
12 (a) Each employer may pick up the participant
13 contributions required under Section 18-133 for all salary
14 earned after December 31, 1981. If an employer decides not
15 to pick up the contributions, the employee contributions
16 shall continue to be deducted from salary. If contributions
17 are picked up they shall be treated as employer contributions
18 in determining tax treatment under the United States Internal
19 Revenue Code. However, the employer shall continue to
20 withhold Federal and State income taxes based upon these
21 contributions until the Internal Revenue Service or the
22 Federal courts rule that pursuant to Section 414(h) of the
23 United States Internal Revenue Code, these contributions
24 shall not be included as gross income of the participant
25 until such time as they are distributed or made available.
26 The employer shall pay these participant contributions from
27 the same source of funds which is used in paying earnings to
28 the participant. The employer may pick up these
29 contributions by a reduction in the cash salary of the
30 participant or by an offset against a future salary increase
31 or by a combination of a reduction in salary and offset
32 against a future salary increase. If participant
33 contributions are picked up they shall be treated for all
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1 purposes of this Article as participant contributions were
2 considered prior to the time they were picked up.
3 (b) Subject to the requirements of federal law, a
4 participant may elect to have the employer pick up optional
5 contributions that the participant has elected to pay to the
6 System, and the contributions so picked up shall be treated
7 as employer contributions for the purposes of determining
8 federal tax treatment. The employer shall pick up the
9 contributions by a reduction in the cash salary of the
10 participant and shall pay the contributions from the same
11 fund that is used to pay earnings to the participant. The
12 election to have optional contributions picked up is
13 irrevocable and the optional contributions may not thereafter
14 be prepaid, by direct payment or otherwise. If the provision
15 authorizing the optional contribution requires payment by a
16 stated date (rather than the date of withdrawal or
17 retirement), that requirement shall be deemed to have been
18 satisfied if (i) on or before the stated date the participant
19 executes a valid irrevocable election to have the
20 contributions picked up under this subsection, and (ii) the
21 picked-up contributions are in fact paid to the System as
22 provided in the election.
23 (Source: P.A. 90-448, eff. 8-16-97.)
24 Section 10. The State Mandates Act is amended by adding
25 Section 8.22 as follows:
26 (30 ILCS 805/8.22 new)
27 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
28 and 8 of this Act, no reimbursement by the State is required
29 for the implementation of any mandate created by this
30 amendatory Act of 1998.
31 Section 99. Effective date. This Act takes effect upon
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1 becoming law.