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90_HB3903
40 ILCS 5/15-136.4
40 ILCS 5/15-158.2
40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121
40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123
40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124
40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
40 ILCS 5/20-131 from Ch. 108 1/2, par. 20-131
Amends the Illinois Pension Code in relation to the
optional retirement plans offered by the State Universities
Retirement System. Changes the way in which the Retirement
Systems Reciprocal Act applies to participants in the
self-managed plan and the portable benefit package. Makes
other changes. Effective immediately.
LRB9012398EGfg
LRB9012398EGfg
1 AN ACT to amend the Illinois Pension Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 15-136.4, 15-158.2, 20-121, 20-123, 20-124,
6 20-125, and 20-131 as follows:
7 (40 ILCS 5/15-136.4)
8 Sec. 15-136.4. Retirement and Survivor Benefits Under
9 Portable Benefit Package.
10 (a) This Section 15-136.4 describes the form of annuity
11 and survivor benefits available to a participant who has
12 elected the portable benefit package and has completed the
13 one-year waiting period required under subsection (e) of
14 Section 15-134.5. For purposes of this Section, the term
15 "eligible spouse" means the husband or wife of a participant
16 to whom the participant is married on the date the
17 participant's retirement annuity begins, provided however,
18 that if the participant should die prior to the commencement
19 of retirement annuity benefits, then "eligible spouse" means
20 the husband or wife, if any, to whom the participant was
21 married throughout the one-year period preceding the date of
22 his or her death.
23 (b) This subsection (b) describes the normal form of
24 annuity payable to a participant subject to this Section
25 15-136.4. If the participant is unmarried on the date his or
26 her annuity payments commence, then the annuity payments
27 shall be made in the form of a single-life annuity as
28 described in Section 15-118. If the participant is married
29 on the date his or her annuity payments commence, then the
30 annuity payments shall be paid in the form of a qualified
31 joint and survivor annuity that is the actuarial equivalent
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1 of the single-life annuity. Under the "qualified joint and
2 survivor annuity", a reduced amount shall be paid to the
3 participant for his or her lifetime and his or her eligible
4 spouse, if surviving at the participant's death, shall be
5 entitled to receive thereafter a lifetime survivorship
6 annuity in a monthly amount equal to 50% of the reduced
7 monthly amount that was payable to the participant. The last
8 payment of a qualified joint and survivor annuity shall be
9 made as of the first day of the month in which the death of
10 the survivor occurs.
11 (c) Instead of the normal form of annuity that would be
12 paid under subsection (b), a participant may elect in writing
13 within the 90-day period prior to the date his or her annuity
14 payments commence to waive the normal form of annuity payment
15 and receive an optional form of annuity as described in
16 subsection (h). If the participant is married and elects an
17 optional form of annuity under subsection (h) other than a
18 joint and survivor annuity with the eligible spouse
19 designated as the contingent annuitant, then such election
20 shall require the consent of his or her eligible spouse in
21 the manner described in subsection (d). At any time during
22 the 90-day period preceding the date the participant's
23 annuity commences, the participant may revoke the optional
24 form elected under this subsection (c) and reinstate coverage
25 under the qualified joint and survivor annuity without the
26 spouse's consent, but an election to revoke the optional form
27 elected and elect a new optional form or designate a
28 different contingent annuitant shall not be effective without
29 the eligible spouse's consent.
30 (d) The eligible spouse's consent to any election made
31 pursuant to this Section that requires the eligible spouse's
32 consent shall be in writing and shall acknowledge the effect
33 of the consent. In addition, the eligible spouse's signature
34 on the written consent must be witnessed by a notary public.
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1 The eligible spouse's consent need not be obtained if the
2 system is satisfied that there is no eligible spouse, that
3 the eligible spouse cannot be located, or because of any
4 other relevant circumstances. An eligible spouse's consent
5 under this Section is valid only with respect to the
6 specified optional form of payment and, if applicable,
7 contingent annuitant designated by the participant. If the
8 optional form of payment or the contingent annuitant is
9 subsequently changed (other than by a revocation of the
10 optional form and reinstatement of the qualified joint and
11 survivor annuity), a new consent by the eligible spouse is
12 required. The eligible spouse's consent to an election made
13 by a participant pursuant to this Section, once made, may not
14 be revoked by the eligible spouse.
15 (e) Within a reasonable period of time preceding the
16 date a participant's annuity commences, a participant shall
17 be supplied with a written explanation of (1) the terms and
18 conditions of the normal form single-life annuity and
19 qualified joint and survivor annuity, (2) the participant's
20 right to elect a single-life annuity or an optional form of
21 payment under subsection (h) subject to his or her eligible
22 spouse's consent, if applicable, and (3) the participant's
23 right to reinstate coverage under the qualified joint and
24 survivor annuity prior to his or her annuity commencement
25 date by revoking an election of an optional form of benefit
26 under subsection (h).
27 (f) If a married participant with at least 5 years of
28 service dies prior to commencing retirement annuity payments
29 and prior to taking a refund under Section 15-154, his or her
30 eligible spouse is entitled to receive a pre-retirement
31 survivor annuity, if there is not then in effect a waiver of
32 the pre-retirement survivor annuity. The pre-retirement
33 survivor annuity payable under this subsection shall be a
34 monthly annuity payable for the eligible spouse's life,
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1 commencing as of the beginning of the month next following
2 the later of the date of the participant's death or the date
3 the participant would have first met the eligibility
4 requirements for retirement, and continuing through the
5 beginning of the month in which the death of the eligible
6 spouse occurs. The monthly amount payable to the spouse
7 under the pre-retirement survivor annuity shall be equal to
8 the monthly amount that would be payable as a survivor
9 annuity under the qualified joint and survivor annuity
10 described in subsection (b) if: (1) in the case of a
11 participant who dies on or after the date on which the
12 participant has met the eligibility requirements for
13 retirement, the participant had retired with an immediate
14 qualified joint and survivor annuity on the day before the
15 participant's date of death; or (2) in the case of a
16 participant who dies before the earliest date on which the
17 participant would have met the eligibility requirements for
18 retirement age, the participant had separated from service on
19 the date of death, survived to the earliest retirement age
20 based on service prior to his or her death, retired with an
21 immediate qualified joint and survivor annuity at the
22 earliest retirement age, and died on the day after the day on
23 which the participant would have attained the earliest
24 retirement age.
25 (g) A married participant who has not retired may elect
26 at any time to waive the pre-retirement survivor annuity
27 described in subsection (f). Any such election shall require
28 the consent of the participant's eligible spouse in the
29 manner described in subsection (e). A waiver of the
30 pre-retirement survivor annuity shall increase the lump sum
31 death benefit payable under subsection (b) of Section 15-141.
32 Prior to electing any waiver of the pre-retirement survivor
33 annuity, the participant shall be provided with a written
34 explanation of (1) the terms and conditions of the
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1 pre-retirement survivor annuity and the death benefits
2 payable from the system both with and without the
3 pre-retirement survivor annuity, (2) the participant's right
4 to elect a waiver of the pre-retirement survivor annuity
5 coverage subject to his or her spouse's consent, and (3) the
6 participant's right to reinstate pre-retirement survivor
7 annuity coverage at any time by revoking a prior waiver of
8 such coverage.
9 (h) By filing a timely election with the system, a
10 participant who will be eligible to receive a retirement
11 annuity under this Section may waive the normal form of
12 annuity payment described in subsection (b), subject to
13 obtaining the consent of his or her eligible spouse, if
14 applicable, and elect to receive any one of the following
15 optional annuity forms:
16 (1) Joint and Survivor Annuity Options: The
17 participant may elect to receive a reduced annuity
18 payable for his or her life and to have a lifetime
19 survivorship annuity in a monthly amount equal to 50%,
20 75%, or 100% (as elected by the participant) of that
21 reduced monthly amount, to be paid after the
22 participant's death to his or her contingent annuitant,
23 if the contingent annuitant is alive at the time of the
24 participant's death.
25 (2) Single-Life Annuity Option (optional for
26 married participants). The participant may elect to
27 receive a single-life annuity payable for his or her life
28 only.
29 All optional forms shall be in an amount that is the
30 actuarial equivalent of the single-life annuity.
31 For the purposes of this Section, the term "contingent
32 annuitant" means the beneficiary who is designated by a
33 participant at the time the participant elects a joint and
34 survivor annuity to receive the lifetime survivorship annuity
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1 in the event the beneficiary survives the participant at the
2 participant's death.
3 (i) Under no circumstances may an option be elected,
4 changed, or revoked after the date the participant's
5 retirement annuity commences.
6 (j) An election made pursuant to subsection (h) shall
7 become inoperative if the participant or the contingent
8 annuitant dies before the date the participant's annuity
9 payments commence, or if the eligible spouse's consent is
10 required and not given.
11 (k) For purposes of applying the provisions of Section
12 20-123 of this Code, the portable benefit package shall be
13 treated as if it were provided by a participating system that
14 has no survivor's annuity benefit.
15 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
16 (40 ILCS 5/15-158.2)
17 Sec. 15-158.2. Self-managed plan.
18 (a) Purpose. The General Assembly finds that it is
19 important for colleges and universities to be able to attract
20 and retain the most qualified employees and that in order to
21 attract and retain these employees, colleges and universities
22 should have the flexibility to provide a defined contribution
23 plan as an alternative for eligible employees who elect not
24 to participate in a defined benefit retirement program
25 provided under this Article. Accordingly, the State
26 Universities Retirement System is hereby authorized to
27 establish and administer a self-managed plan, which shall
28 offer participating employees the opportunity to accumulate
29 assets for retirement through a combination of employee and
30 employer contributions that may be invested in mutual funds,
31 collective investment funds, or other investment products and
32 used to purchase annuity contracts, either fixed or variable
33 or a combination thereof. The plan must be qualified under
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1 the Internal Revenue Code of 1986.
2 (b) Adoption by employers. Each employer subject to
3 this Article may elect to adopt the self-managed plan
4 established under this Section; this election is irrevocable.
5 An employer's election to adopt the self-managed plan makes
6 available to the eligible employees of that employer the
7 elections described in Section 15-134.5.
8 The State Universities Retirement System shall be the
9 plan sponsor for the self-managed plan and shall prepare a
10 plan document and prescribe such rules and procedures as are
11 considered necessary or desirable for the administration of
12 the self-managed plan. Consistent with its fiduciary duty to
13 the participants and beneficiaries of the self-managed plan,
14 the Board of Trustees of the System may delegate aspects of
15 plan administration as it sees fit to companies authorized to
16 do business in this State, to the employers, or to a
17 combination of both.
18 (c) Selection of service providers and funding vehicles.
19 The System, in consultation with the employers, shall solicit
20 proposals to provide administrative services and funding
21 vehicles for the self-managed plan from insurance and annuity
22 companies and mutual fund companies, banks, trust companies,
23 or other financial institutions authorized to do business in
24 this State. In reviewing the proposals received and
25 approving and contracting with no fewer than 2 and no more
26 than 7 companies, at least 2 of which must be insurance and
27 annuity companies, the Board of Trustees of the System shall
28 consider, among other things, the following criteria:
29 (1) the nature and extent of the benefits that
30 would be provided to the participants;
31 (2) the reasonableness of the benefits in relation
32 to the premium charged;
33 (3) the suitability of the benefits to the needs
34 and interests of the participating employees and the
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1 employer;
2 (4) the ability of the company to provide benefits
3 under the contract and the financial stability of the
4 company; and
5 (5) the efficacy of the contract in the recruitment
6 and retention of employees.
7 The System, in consultation with the employers, shall
8 periodically review each approved company. A company may
9 continue to provide administrative services and funding
10 vehicles for the self-managed plan only so long as it
11 continues to be an approved company under contract with the
12 Board.
13 (d) Employee Direction. Employees who are participating
14 in the program must be allowed to direct the transfer of
15 their account balances among the various investment options
16 offered, subject to applicable contractual provisions. The
17 participant shall not be deemed a fiduciary by reason of
18 providing such investment direction. A person who is a
19 fiduciary shall not be liable for any loss resulting from
20 such investment direction and shall not be deemed to have
21 breached any fiduciary duty by acting in accordance with that
22 direction. Neither the System nor the employer guarantees
23 any of the investments in the employee's account balances.
24 (e) Participation. An employee eligible to participate
25 in the self-managed plan must make a written election in
26 accordance with the provisions of Section 15-134.5 and the
27 procedures established by the System. Participation in the
28 self-managed plan by an electing employee shall begin on the
29 first day of the first pay period following the later of the
30 date the employee's election is filed with the System or the
31 effective date as of which the employee's employer begins to
32 offer participation in the self-managed plan. Employers may
33 not make the self-managed plan available earlier than January
34 1, 1998. An employee's participation in any other retirement
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1 program administered by the System under this Article shall
2 terminate on the date that participation in the self-managed
3 plan begins.
4 An employee who has elected to participate in the
5 self-managed plan under this Section must continue
6 participation while employed in an eligible position, and may
7 not participate in any other retirement program administered
8 by the System under this Article while employed by that
9 employer or any other employer that has adopted the
10 self-managed plan, unless the self-managed plan is terminated
11 in accordance with subsection (i).
12 Participation in the self-managed plan under this Section
13 shall constitute membership in the State Universities
14 Retirement System.
15 A participant under this Section shall be entitled to the
16 benefits of Article 20 of this Code. modified to reflect the
17 following principles:
18 (1) The amount of any retirement annuities payable
19 under this Section depend solely on the value of the
20 participant's vested account balances and are not subject
21 to a maximum annuity benefit limitation or any adjustment
22 pursuant to the proportional retirement annuity
23 provisions of Article 20. If a participant in the
24 self-managed plan under this Section elects to apply the
25 provisions of Article 20, the dollar amount of the
26 proportional retirement annuity payable from the System
27 shall be deemed to be zero and the provisions of the
28 second paragraph of Section 20-131 shall not apply with
29 respect to the retirement annuity benefits payable to the
30 participant under this Section.
31 (2) For purposes of Section 20-123 of this Code,
32 the self-managed plan shall be treated as if it were
33 provided by a participating system that has no survivor's
34 annuity benefit.
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1 (3) Notwithstanding Section 20-125 of this Code,
2 upon reemployment by a participating system of a retired
3 participant in the self-managed plan, the retirement
4 annuity payment made to such participant from any annuity
5 contracts acquired from the participant's self-managed
6 plan account balances shall not be suspended.
7 (f) Establishment of Initial Account Balance. If at the
8 time an employee elects to participate in the self-managed
9 plan he or she has rights and credits in the System due to
10 previous participation in the traditional benefit package,
11 the System shall establish for the employee an opening
12 account balance in the self-managed plan, equal to the amount
13 of contribution refund that the employee would be eligible to
14 receive under Section 15-154 if the employee terminated
15 employment on that date and elected a refund of
16 contributions, except that this hypothetical refund shall
17 include interest at the effective rate for the respective
18 years. The System shall transfer assets from the defined
19 benefit retirement program to the self-managed plan, as a tax
20 free transfer in accordance with Internal Revenue Service
21 guidelines, for purposes of funding the employee's opening
22 account balance.
23 (g) No Duplication of Service Credit. Notwithstanding
24 any other provision of this Article, an employee may not
25 purchase or receive service or service credit applicable to
26 any other retirement program administered by the System under
27 this Article for any period during which the employee was a
28 participant in the self-managed plan established under this
29 Section.
30 (h) Contributions. The self-managed plan shall be
31 funded 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 under this Section shall be equal to the
2 employee contribution rate for other participants in the
3 System, as provided in Section 15-157. This required
4 contribution shall be made as an "employer pick-up" under
5 Section 414(h) of the Internal Revenue Code of 1986 or any
6 successor Section thereof. Any employee participating in the
7 System's traditional benefit package prior to his or her
8 election to participate in the self-managed plan shall
9 continue to have the employer pick up the contributions
10 required under Section 15-157. However, the amounts picked
11 up after the election of the self-managed plan shall be
12 remitted to and treated as assets of the self-managed plan.
13 In no event shall an employee have an option of receiving
14 these amounts in cash. Employees may make additional
15 contributions to the self-managed plan in accordance with
16 procedures prescribed by the System, to the extent permitted
17 under rules prescribed by the System.
18 The program shall provide for employer contributions to
19 be credited to each self-managed plan participant at a rate
20 of 7.6% of the participating employee's salary, less the
21 amount used by the System to provide disability benefits for
22 the employee. The amounts so credited shall be paid into the
23 participant's self-managed plan accounts in a manner to be
24 prescribed by the System.
25 An amount of employer contribution, not exceeding 1% of
26 the participating employee's salary, shall be used for the
27 purpose of providing the disability benefits of the System to
28 the employee. Prior to the beginning of each plan year under
29 the self-managed plan, the Board of Trustees shall determine,
30 as a percentage of salary, the amount of employer
31 contributions to be allocated during that plan year for
32 providing disability benefits for employees in the
33 self-managed plan.
34 The State of Illinois shall make contributions by
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1 appropriations to the System of the employer contributions
2 required for employees who participate in the self-managed
3 plan under this Section. The amount required shall be
4 certified by the Board of Trustees of the System and paid by
5 the State in accordance with Section 15-165. The System
6 shall not be obligated to remit the required employer
7 contributions to any of the insurance and annuity companies,
8 mutual fund companies, banks, trust companies, financial
9 institutions, or other sponsors of any of the funding
10 vehicles offered under the self-managed plan until it has
11 received the required employer contributions from the State.
12 In the event of a deficiency in the amount of State
13 contributions, the System shall implement those procedures
14 described in subsection (c) of Section 15-165 to obtain the
15 required funding from the General Revenue Fund.
16 (i) Termination. The self-managed plan authorized under
17 this Section may be terminated by the System, subject to the
18 terms of any relevant contracts, and the System shall have no
19 obligation to reestablish the self-managed plan under this
20 Section. This Section does not create a right to continued
21 participation in any self-managed plan set up by the System
22 under this Section. If the self-managed plan is terminated,
23 the participants shall have the right to participate in one
24 of the other retirement programs offered by the System and
25 receive service credit in such other retirement program for
26 any years of employment following the termination.
27 (j) Vesting; Withdrawal; Return to Service. A
28 participant in the self-managed plan becomes vested in the
29 employer contributions credited to his or her accounts in the
30 self-managed plan on the earliest to occur of the following:
31 (1) completion of 5 years of service with an employer
32 described in Section 15-106; (2) the death of the
33 participating employee while employed by an employer
34 described in Section 15-106, if the participant has completed
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1 at least 1 1/2 years of service; or (3) the participant's
2 election to retire and apply the reciprocal provisions of
3 Article 20 of this Code.
4 A participant in the self-managed plan who receives a
5 distribution of his or her vested amounts from the
6 self-managed plan while not yet eligible for retirement under
7 this Article (and Article 20, if applicable) upon or after
8 termination of employment shall forfeit all service credit
9 and accrued rights in the System; if subsequently
10 re-employed, the participant shall be considered a new
11 employee. If a former participant again becomes a
12 participating employee (or becomes employed by a
13 participating system under Article 20 of this Code) and
14 continues as such for at least 2 years, all such rights,
15 service credits, and previous status as a participant shall
16 be restored upon repayment of the amount of the distribution,
17 without interest.
18 (k) Benefit amounts. If an employee who is vested in
19 employer contributions terminates employment, the employee
20 shall be entitled to a benefit which is based on the account
21 values attributable to both employer and employee
22 contributions and any investment return thereon.
23 If an employee who is not vested in employer
24 contributions terminates employment, the employee shall be
25 entitled to a benefit based solely on the account values
26 attributable to the employee's contributions and any
27 investment return thereon, and the employer contributions and
28 any investment return thereon shall be forfeited. Any
29 employer contributions which are forfeited shall be held in
30 escrow by the company investing those contributions and shall
31 be used as directed by the System for future allocations of
32 employer contributions or for the restoration of amounts
33 previously forfeited by former participants who again become
34 participating employees.
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1 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
2 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
3 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
4 Sec. 20-121. Calculation of proportional retirement
5 annuities. Upon retirement of the employee, a proportional
6 retirement annuity shall be computed by each participating
7 system in which pension credit has been established on the
8 basis of pension credits under each system. The computation
9 shall be in accordance with the formula or method prescribed
10 by each participating system which is in effect at the date
11 of the employee's latest withdrawal from service covered by
12 any of the systems in which he has pension credits which he
13 elects to have considered under this Article. However, the
14 amount of any retirement annuity payable under the
15 self-managed plan established under Section 15-158.2 of this
16 Code depends solely on the value of the participant's vested
17 account balances and is not subject to any proportional
18 adjustment under this Section.
19 Combined pension credit under all retirement systems
20 subject to this Article shall be considered in determining
21 whether the minimum qualification has been met and the
22 formula or method of computation which shall be applied. If
23 a system has a step-rate formula for calculation of the
24 retirement annuity, pension credits covering previous service
25 which have been established under another system shall be
26 considered in determining which range or ranges of the
27 step-rate formula are to be applicable to the employee.
28 Interest on pension credit shall continue to accumulate
29 in accordance with the provisions of the law governing the
30 retirement system in which the same has been established
31 during the time an employee is in the service of another
32 employer, on the assumption such employee, for interest
33 purposes for pension credit, is continuing in the service
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1 covered by such retirement system.
2 (Source: P.A. 79-782.)
3 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
4 Sec. 20-123. Survivor's annuity. The provisions
5 governing a retirement annuity shall be applicable to a
6 survivor's annuity. Appropriate credits shall be established
7 for survivor's annuity purposes in those participating
8 systems which provide survivor's annuities, according to the
9 same conditions and subject to the same limitations and
10 restrictions herein prescribed for a retirement annuity. If
11 a participating system has no survivor's annuity benefit, or
12 if the survivor's annuity benefit under that system is
13 waived, pension credit established in that this system shall
14 not be considered in determining eligibility for or the
15 amount of the survivor's annuity which may be payable by any
16 other participating system.
17 For persons who participate in the self-managed plan
18 established under Section 15-158.2 or the portable benefit
19 package established under Section 15-136.4, pension credit
20 established under Article 15 may be considered in determining
21 eligibility for or the amount of the survivor's annuity that
22 is payable by any other participating system, but pension
23 credit established in any other system shall not result in
24 any right to a survivor's annuity under the Article 15
25 system.
26 (Source: P.A. 79-782.)
27 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
28 Sec. 20-124. Maximum benefits. In no event shall the
29 combined retirement or survivors annuities exceed the highest
30 annuity which would have been payable by any participating
31 system in which the employee has pension credits, if all of
32 his pension credits had been validated in that system.
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1 If the combined annuities should exceed the highest
2 maximum as determined in accordance with this Section, the
3 respective annuities shall be reduced proportionately
4 according to the ratio which the amount of each proportional
5 annuity bears to the aggregate of all such annuities.
6 In the case of a participant in the self-managed plan
7 established under Section 15-158.2 of this Code to whom the
8 provisions of this Article apply:
9 (i) For purposes of calculating the combined
10 retirement annuity and the proportionate reduction, if
11 any, in a retirement annuity other than one payable under
12 the self-managed plan, the amount of the Article 15
13 retirement annuity shall be deemed to be the highest
14 annuity to which the annuitant would have been entitled
15 if he or she had participated in the traditional benefit
16 package as defined in Section 15-103.1 rather than the
17 self-managed plan.
18 (ii) For purposes of calculating the combined
19 survivor's annuity and the proportionate reduction, if
20 any, in a survivor's annuity other than one payable under
21 the self-managed plan, the amount of the Article 15
22 survivor's annuity shall be deemed to be the highest
23 survivor's annuity to which the survivor would have been
24 entitled if the deceased employee had participated in the
25 traditional benefit package as defined in Section
26 15-103.1 rather than the self-managed plan.
27 (iii) Benefits payable under the self-managed plan
28 are not subject to proportionate reduction under this
29 Section.
30 (Source: P.A. 79-782.)
31 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
32 Sec. 20-125. Return to employment - suspension of
33 benefits. If a retired employee returns to employment which
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1 is covered by a system from which he is receiving a
2 proportional annuity under this Article, his proportional
3 annuity from all participating systems shall be suspended
4 during the period of re-employment, except that this
5 suspension does not apply to any distributions payable under
6 the self-managed plan established under Section 15-158.2 of
7 this Code.
8 The provisions of the Article under which such employment
9 would be covered shall govern the determination of whether
10 the employee has returned to employment, and if applicable
11 the exemption of temporary employment or employment not
12 exceeding a specified duration or frequency, for all
13 participating systems from which the retired employee is
14 receiving a proportional annuity under this Article,
15 notwithstanding any contrary provisions in the other Articles
16 governing such systems.
17 (Source: P.A. 85-1008.)
18 (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
19 Sec. 20-131. Retirement Annuities and Survivors
20 Annuities - Guarantees.
21 (a) This amendatory Act of 1975 (P.A. 79-782) shall not
22 be applied to deprive any person or his survivor of
23 eligibility for an annuity or to reduce the annuity or to
24 deprive such person of rights to which he or his survivor
25 would have been entitled under the provisions of Article 20
26 which were in effect immediately prior to September 5, 1975,
27 if he was an employee immediately prior to that date.
28 (b) If the combined retirement annuity benefits provided
29 under Public Act 79-782 are less than the combined retirement
30 annuity benefits that would have been payable under the
31 alternative formula of Section 20-122, the system under which
32 retirement would have occurred, as provided by Section
33 20-122, shall increase the proportional retirement annuity by
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1 an amount equal to the difference.
2 (c) Subsection (b) of this Section does not apply to the
3 retirement annuity benefits payable under the self-managed
4 plan established under Section 15-158.2 of this Code.
5 (Source: P.A. 86-820.)
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.