State of Illinois
90th General Assembly
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90_HB3586

      40 ILCS 5/15-107          from Ch. 108 1/2, par. 15-107
      40 ILCS 5/15-135          from Ch. 108 1/2, par. 15-135
      40 ILCS 5/15-150          from Ch. 108 1/2, par. 15-150
      40 ILCS 5/15-152          from Ch. 108 1/2, par. 15-152
      40 ILCS 5/15-153.2        from Ch. 108 1/2, par. 15-153.2
      40 ILCS 5/15-153.3        from Ch. 108 1/2, par. 15-153.3
          Amends the State  Universities  Article  of  the  Pension
      Code.   Imposes  a  2-year  limit on disability benefits that
      commence after the effective  date  if  the  disabled  person
      becomes able to engage in any substantial gainful employment.
      (Article  XIII,  Section  5  of the Illinois Constitution may
      prevent this limitation from applying to certain  current  or
      former  members.)   Provides  that  the  Board,  rather  than
      physicians  and  the  employer,  shall  determine disability.
      Provides  that  the  Board  may  consider  hospital  records,
      laboratory test results, and other information  to  determine
      the  employment  capacity  and  condition  of  the  claimant.
      Reduces  from  2  to  one  the  minimum  number  of physician
      certificates that the claimant  must  provide  and  specifies
      that all costs incurred by the claimant in completing a claim
      for disability shall be paid by the claimant.  Accelerates by
      one  year the 7% automatic increase in disability benefit for
      persons whose  benefit  was  granted  on  the  first  day  of
      January.   Specifies  that  a  participant  in  the  optional
      retirement  program  is  ineligible  to  receive a disability
      retirement annuity.  Also specifies that required age  70 1/2
      distributions   are   payable   regardless   of   whether  an
      application  has  been  filed,  and  delays  those   required
      distributions for one year in the case of persons turning age
      70 1/2  before April 1 of a calendar year.  Provides that the
      System need not make an involuntary age  70 1/2  distribution
      to  a person who is employed under any retirement system that
      participates  in  the  Retirement  Systems  Reciprocal   Act.
      Provides  that  a past participant who is employed by a State
      or national teacher organization may elect to participate  in
      the  System and may purchase service credit for certain prior
      employment in that capacity.  Effective immediately.
                                                    LRB9011086EGfgB
                                              LRB9011086EGfgB
 1        AN ACT in relation  to  public  employee  disability  and
 2    retirement 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  15-107, 15-135, 15-150, 15-152, 15-153.2,
 7    and 15-153.3 as follows:
 8        (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
 9        Sec. 15-107.  Employee.
10        (a)  "Employee" means  any  member  of  the  educational,
11    administrative,  secretarial,  clerical, mechanical, labor or
12    other staff of an employer whose employment is permanent  and
13    continuous or who is employed in a position in which services
14    are  expected  to  be  rendered  on a continuous basis for at
15    least 4 months or one academic term, whichever is  less,  who
16    (A)  receives  payment  for  personal  services  on a warrant
17    issued pursuant to a payroll voucher certified by an employer
18    and drawn by the State Comptroller upon the  State  Treasurer
19    or  by an employer upon trust, federal or other funds, or (B)
20    is on a leave of absence without pay.   Employment  which  is
21    irregular,  intermittent or temporary shall not be considered
22    continuous for purposes of this paragraph.
23        However, a person is not an "employee" if he or she:
24             (1)  is  a  student  enrolled   in   and   regularly
25        attending  classes in a college or university which is an
26        employer, and is employed on a temporary  basis  at  less
27        than full time;
28             (2)  is  currently receiving a retirement annuity or
29        a disability retirement annuity  under  Section  15-153.2
30        from this System;
31             (3)  is on a military leave of absence;
                            -2-               LRB9011086EGfgB
 1             (4)  is eligible to participate in the Federal Civil
 2        Service   Retirement   System  and  is  currently  making
 3        contributions to that system based upon earnings paid  by
 4        an employer;
 5             (5)  is  on  leave  of  absence without pay for more
 6        than  60  days  immediately  following   termination   of
 7        disability benefits under this Article;
 8             (6)  is  hired  after  June  30,  1979  as  a public
 9        service employment program participant under the  Federal
10        Comprehensive  Employment  and  Training Act and receives
11        earnings in whole or in part from  funds  provided  under
12        that Act;
13             (7)  is employed on or after July 1, 1991 to perform
14        services  that  are  excluded by subdivision (a)(7)(f) or
15        (a)(19) of Section 210 of the federal Social Security Act
16        from the definition of employment given in  that  Section
17        (42 U.S.C. 410); or
18             (8)  participates   in   an   optional  program  for
19        part-time workers under Section 15-158.1.
20        (b)  Any employer may, by filing a  written  notice  with
21    the  board,  exclude  from  the  definition of "employee" all
22    persons employed pursuant  to  a  federally  funded  contract
23    entered  into  after  July  1,  1982  with a federal military
24    department  in  a  program  providing  training  in  military
25    courses to federal military  personnel  on  a  military  site
26    owned  by  the United States Government, if this exclusion is
27    not prohibited by the federally funded  contract  or  federal
28    laws or rules governing the administration of the contract.
29        (c)  Any person appointed by the Governor under the Civil
30    Administrative Code of the State is an employee, if he or she
31    is  a participant in this system on the effective date of the
32    appointment.
33        (d)  A participant on lay-off status under civil  service
34    rules  is  considered  an employee for not more than 120 days
                            -3-               LRB9011086EGfgB
 1    from the date of the lay-off.
 2        (e)  A participant is considered an employee  during  (1)
 3    the first 60 days of disability leave, (2) the period, not to
 4    exceed  one  year,  in  which  his  or  her  eligibility  for
 5    disability  benefits  is  being  considered  by  the board or
 6    reviewed by the courts, and (3) the period he or she receives
 7    disability benefits under the provisions of  Section  15-152,
 8    workers'  compensation  or  occupational disease benefits, or
 9    disability income under an insurance contract financed wholly
10    or partially by the employer.
11        (f)  Absences without pay, other than  formal  leaves  of
12    absence, of less than 30 calendar days, are not considered as
13    an interruption of a person's status as an employee.  If such
14    absences  during any period of 12 months exceed 30 work days,
15    the  employee  status  of  the  person   is   considered   as
16    interrupted as of the 31st work day.
17        (g)  A  staff  member  whose employment contract requires
18    services during an academic  term  is  to  be  considered  an
19    employee during the summer and other vacation periods, unless
20    he  or she declines an employment contract for the succeeding
21    academic term or his or her employment  status  is  otherwise
22    terminated,  and  he or she receives no earnings during these
23    periods.
24        (h)  An individual who is employed on a  full-time  basis
25    as an officer or employee of a statewide teacher organization
26    or   an  officer  of  a  national  teacher  organization  may
27    participate in the System and shall be  deemed  an  employee,
28    provided  that  (i)  the  individual  has  previously  earned
29    creditable  service  under  this Article, (ii) the individual
30    files with the System an irrevocable  election  to  become  a
31    participant, and (iii) the individual does not receive credit
32    for that employment under any other Article of this Code.  An
33    employee  under this subsection (h) is responsible for paying
34    to the System both (1) employee contributions  based  on  the
                            -4-               LRB9011086EGfgB
 1    actual  compensation  received  for  service with the teacher
 2    organization and (2)  employer  contributions  equal  to  the
 3    normal  costs  (as  defined in Section 15-155) resulting from
 4    that service; all or any part of these contributions  may  be
 5    paid  on  the employee's behalf or picked up for tax purposes
 6    (if  authorized   under   federal   law)   by   the   teacher
 7    organization.
 8        A person who is an employee as defined in this subsection
 9    (h) may establish service credit for similar employment prior
10    to  becoming  an  employee under this subsection by paying to
11    the System for that employment the contributions specified in
12    this subsection, plus interest at the effective rate from the
13    date of service to the  date  of  payment.   However,  credit
14    shall not be granted under this subsection for any such prior
15    employment  (A) for which the applicant received credit under
16    any other provision of this Code, or  (B)  during  which  the
17    applicant was on a leave of absence under Section 15-113.2.
18    (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97.)
19        (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
20        Sec. 15-135.  Retirement annuities - Conditions.
21        (a)  A  participant  who  retires in one of the following
22    specified years with  the  specified  amount  of  service  is
23    entitled to a retirement annuity at any age:
24             35 years if retirement is in 1997 or before;
25             34 years if retirement is in 1998;
26             33 years if retirement is in 1999;
27             32 years if retirement is in 2000;
28             31 years if retirement is in 2001;
29             30 years if retirement is in 2002;
30             35 years if retirement is in 2003 or later.
31        A  participant  with  8  or  more  years of service after
32    September 1, 1941, is entitled to a retirement annuity on  or
33    after attainment of age 55.
                            -5-               LRB9011086EGfgB
 1        A  participant  with  at least 5 but less than 8 years of
 2    service after September 1, 1941, is entitled to a  retirement
 3    annuity on or after attainment of age 62.
 4        A  participant  who  has  at least 25 years of service in
 5    this system as a police officer or firefighter is entitled to
 6    a retirement annuity on or after the attainment of age 50, if
 7    Rule 4 of Section 15-136 is applicable to the participant.
 8        (b)  The annuity payment period shall begin on  the  date
 9    specified   by   the   participant   submitting   a   written
10    application,  which date shall not be prior to termination of
11    employment or more than one year before  the  application  is
12    received  by the board; however, if the participant is not an
13    employee of an employer participating in this System or in  a
14    participating system as defined in Article 20 of this Code on
15    April 1 of the calendar year next following the calendar year
16    in  which the participant attains following the attainment of
17    age 70 1/2, the annuity payment period shall  begin  on  that
18    date regardless of whether an application has been filed.
19        (c)  An  annuity  is  not  payable if the amount provided
20    under Section 15-136 is less than $10 per month.
21    (Source: P.A. 90-65, eff. 7-7-97.)
22        (40 ILCS 5/15-150) (from Ch. 108 1/2, par. 15-150)
23        Sec.  15-150.  Disability  benefits  -  Eligibility.    A
24    participant  may  be  granted  is  entitled  to  a disability
25    benefit if:  (1) while a participating employee,  he  or  she
26    becomes  physically  or  mentally incapacitated and unable to
27    perform the duties of his or her assigned  position  for  any
28    period  exceeding 60 days; and (2) the employee had completed
29    2 years of service at the  time  of  disability,  unless  the
30    disability is a result of an accident.
31        An  employee shall be considered disabled only during the
32    period  for  which  the  board  determines,  based  upon  the
33    evidence listed below, has received (1) a written certificate
                            -6-               LRB9011086EGfgB
 1    by at least 2 licensed and practicing physicians appointed by
 2    the board stating that the employee is disabled and unable to
 3    reasonably perform the duties of his or her assigned position
 4    as a  result  of  a  physical  or  mental  disability.   This
 5    determination shall be based upon:
 6             (i)  a written certificate from one or more licensed
 7        and  practicing  physicians appointed by or acceptable to
 8        the board, stating that  the  employee  is  disabled  and
 9        unable  to  reasonably  perform  the duties of his or her
10        assigned position;
11             (ii)  and (2) a  written  certificate  from  by  the
12        employer  stating  that the employee is unable to perform
13        the duties of his or her assigned that position; and
14             (iii)  any  other  medical  examinations,   hospital
15        records,   laboratory   results,   or  other  information
16        necessary for determining  the  employment  capacity  and
17        condition of the employee.
18        The  board  shall  prescribe  rules governing the filing,
19    investigation, control, and supervision of disability claims.
20    Costs incurred by a claimant in connection with completing  a
21    claim for disability benefits shall be paid by the claimant.
22        Pregnancy   and   childbirth   shall   be   considered  a
23    disability.
24    (Source: P.A. 84-1028.)
25        (40 ILCS 5/15-152) (from Ch. 108 1/2, par. 15-152)
26        Sec. 15-152. Disability benefits - Duration.   Disability
27    benefits  shall  be  discontinued  when  the  earliest of the
28    following occurs:
29             (1)  when disability ceases;,
30             (2)  upon refusal of the participant to submit to  a
31        reasonable  physical  examination by a physician approved
32        by the board;,
33             (3)  upon refusal of the participant to  accept  any
                            -7-               LRB9011086EGfgB
 1        position,  assigned  in  good  faith  by an employer, the
 2        duties of which could  reasonably  be  performed  by  the
 3        participant  and  the earnings of which would be at least
 4        equal  to  the  disability  benefit  payable  under  this
 5        Article;,
 6             (4)  upon September 1, following  the  participant's
 7        70th  birthday, if the disability benefit commenced prior
 8        to attainment of age 65;,
 9             (5)  the  end  of  the  month  following  the  fifth
10        anniversary of the date disability benefits commenced, if
11        such benefits began after the attainment of age 65;, or
12             (6)  when the total disability benefits  paid  equal
13        50%  of  the  participant's total earnings for the entire
14        period of employment for which service has  been  granted
15        prior  to  the  date disability benefits began to accrue,
16        except  that.  if  the  disability  was  caused   by   an
17        on-the-job  accident,  and  the  participant  is  granted
18        workers'  compensation  or  occupational disease payments
19        from the employer or the  State  of  Illinois,  this  the
20        limitation in clause (6) shall not be applicable;
21             (7)  if the disability benefits commence on or after
22        the  effective  date  of this amendatory Act of 1998, the
23        later of (i)  2  years  after  the  date  the  disability
24        benefits   commenced  or  (ii)  the  date  on  which  the
25        participant is able to engage in any substantial  gainful
26        employment  (determined  in  the  same  manner  as  under
27        Section 15-153.2).
28        Service  and  earnings credits under the State Employees'
29    Retirement System of Illinois and  the  Teachers'  Retirement
30    System  of  the  State  of  Illinois  shall  be considered in
31    determining the employee's eligibility for, and the  duration
32    of, disability benefits.
33        If, by law, a function of a governmental unit, as defined
34    by  Section  20-107, is transferred in whole or in part to an
                            -8-               LRB9011086EGfgB
 1    employer  and  an  employee  transfers  employment  from  the
 2    governmental unit to such employer within 6 months after  the
 3    transfer  of  this  function,  the  pension  credits  in  the
 4    governmental   unit's   retirement  system  which  have  been
 5    validated under Section 20-109, shall be treated the same  as
 6    pension  credits  in  this  System  Section in determining an
 7    employee's eligibility for, and the duration  of,  disability
 8    benefits.
 9    (Source: P.A. 86-273.)
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
                            -9-               LRB9011086EGfgB
 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.
                            -10-              LRB9011086EGfgB
 1    (Source: P.A. 86-1488.)
 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.

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