State of Illinois
90th General Assembly
Legislation

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


[ Engrossed ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ]

90_SB0499

      SEE INDEX
          Amends the State  Universities  Article  of  the  Pension
      Code.   Increases  the  System's  authority  to  issue bonds,
      allowing up to $20,000,000 to be outstanding at any one time.
      Limits existing benefits by: (i) excluding  certain  earnings
      after June 30, 1997 from the calculation of the final rate of
      earnings;  (ii) imposing additional requirements on return to
      service following a  leave  of  absence;  (iii)  requiring  a
      return to service within one year after discharge in order to
      obtain  credit  for  military  service;  and  (iv) removing a
      provision allowing beneficiaries to elect  to  receive  death
      benefits in multiple payments.  (Article 13, Section 5 of the
      Illinois  Constitution  may  prevent  these  limitations from
      applying to certain current  or  former  members.)   For  new
      participants  only,  limits credit for unused sick leave to a
      maximum of one year.  Changes the  definition  of  "effective
      rate of interest" by adding additional factors to be included
      in  determining  the  rate,  including  the  desirability  of
      minimizing  volatility  in the rate from year to year; states
      that the change is a clarification of existing law.   Changes
      provisions  relating  to  the  calculation  of  interest when
      purchasing military service credit.  Deletes provisions  that
      suspend  or  reduce the annuity of certain persons who return
      to employment after retirement.  Grants the Secretary of  the
      Board  the  power  to issue subpoenas.  Allows annuitants and
      beneficiaries to authorize withholding from  their  annuities
      and  benefits.   Allows  the  System  to  pay benefits to the
      trustee of a trust created for the  benefit  of  a  minor  or
      person  under  legal  disability; provides that the System is
      not responsible for determining the validity of the trust and
      must conclusively rely on the representations of the trustee.
      Also makes technical changes.  Effective immediately.
                                                     LRB9002319EGsb
                                               LRB9002319EGsb
 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  15-112,  15-113.2,  15-113.3,   15-113.4,
 6    15-113.7, 15-125, 15-139, 15-143, 15-153.2, 15-157, 15-167.2,
 7    15-185,  15-190  and  15-191  and  adding Section 15-168.1 as
 8    follows:
 9        (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
10        Sec. 15-112.  Final rate of  earnings.   "Final  rate  of
11    earnings":  For an employee who is paid on an hourly basis or
12    who receives an  annual  salary  in  installments  during  12
13    months  of  each  academic  year, the average annual earnings
14    during the 48 consecutive calendar month period  ending  with
15    the  last  day  of  final  termination of employment or the 4
16    consecutive academic years of service in which the employee's
17    earnings were the highest, whichever  is  greater.   For  any
18    other  employee,  the  average  annual  earnings during the 4
19    consecutive academic years of service in  which  his  or  her
20    earnings  were the highest. For an employee with less than 48
21    months or 4  consecutive  academic   years  of  service,  the
22    average  earnings during his or her entire period of service.
23    The earnings of an employee  with  more  than  36  months  of
24    service  prior to the date of becoming a participant are, for
25    such period, considered equal to the average earnings  during
26    the  last 36 months of such service. For an employee on leave
27    of absence with pay, or on leave of absence without  pay  who
28    makes  contributions  during such leave, earnings are assumed
29    to be equal to the basic compensation on the date  the  leave
30    began.  For  an  employee  on  disability leave, earnings are
31    assumed to be equal to the basic  compensation  on  the  date
                            -2-                LRB9002319EGsb
 1    disability  occurs  or  the  average  earnings  during the 24
 2    months immediately preceding the month  in  which  disability
 3    occurs, whichever is greater. If a participant is an employee
 4    for  at  least 6 months during the academic year in which his
 5    or her employment is terminated, the  annual  final  rate  of
 6    earnings  shall  be  25%  of  the sum of (1) the annual basic
 7    compensation for that year, and (2) the amount earned  during
 8    the  36  months  immediately  preceding that year, if this is
 9    greater than the final rate of earnings as  calculated  under
10    the  other  provisions of this Section.  In the determination
11    of the final rate of earnings for an employee, that  part  of
12    an  employee's earnings for any academic year beginning after
13    June 30, 1997, which exceeds  the  employee's  earnings  with
14    that  employer for the preceding year by more than 20 percent
15    shall be excluded; in the event that  an  employee  has  more
16    than   one  employer  this  limitation  shall  be  calculated
17    separately for the earnings with each  employer.   In  making
18    such  calculation,  only  the basic compensation of employees
19    shall be considered, without regard to vacation  or  overtime
20    or to contracts for summer employment.
21        The   following   are   not  considered  as  earnings  in
22    determining  final  rate   of   earnings:   separation   pay,
23    retirement  pay,  payment  in  lieu  of unused sick leave and
24    payments from an employer for the period used in  determining
25    final  rate  of  earnings for any purpose other than services
26    rendered, leave of absence or vacation  granted  during  that
27    period,  and  vacation  of  up  to  56 work days allowed upon
28    termination of employment  under  a  vacation  policy  of  an
29    employer which was in effect on or before January 1, 1977.
30        Intermittent  periods  of  service shall be considered as
31    consecutive in determining final rate of earnings.
32    (Source: P.A. 84-1472.)
33        (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
                            -3-                LRB9002319EGsb
 1        Sec. 15-113.2.  Service for leaves of  absence.  "Service
 2    for  leaves  of  absence" includes those periods of leaves of
 3    absence at less than  50%  pay,  except  military  leave  and
 4    periods  of  disability leave in excess of 60 days, for which
 5    the employee pays the contributions  required  under  Section
 6    15-157 in accordance with rules prescribed by the board based
 7    upon  the employee's basic compensation on the date the leave
 8    begins, or in the case of leave for service  with  a  teacher
 9    organization,  based upon the actual compensation received by
10    the employee for such service after January 26, 1988, if  the
11    employee  so  elects  within 30 days of that date or the date
12    the leave for service with  a  teacher  organization  begins,
13    whichever is later; provided that the employee (1) returns to
14    employment  covered  by  this system at the expiration of the
15    leave,  or  within  30  days  after  the  termination  of   a
16    disability  which  occurs during the leave and continues this
17    employment at a percentage of time equal to or  greater  than
18    the  percentage  of  time  immediately preceding the leave of
19    absence for at least 8 consecutive months or a  period  equal
20    to  the  period  of  the  leave, whichever is less, or (2) is
21    precluded from meeting the foregoing  conditions  because  of
22    disability or death.  If service credit is denied because the
23    employee  fails  to  meet these conditions, the contributions
24    covering the leave  of  absence  shall  be  refunded  without
25    interest.   The return to employment condition does not apply
26    if the leave  of  absence  is  for  service  with  a  teacher
27    organization  and  the  leave  of absence is in effect on the
28    effective date of this amendatory Act of 1993.
29        Service credit provided  under  this  Section  shall  not
30    exceed 3 years in any period of 10 years, unless the employee
31    is  on special leave granted by the employer for service with
32    a teacher organization.  Commencing with the fourth  year  in
33    any  period  of 10 years, a participant on such special leave
34    is also required to pay employer contributions equal  to  the
                            -4-                LRB9002319EGsb
 1    normal  cost  as  defined  in  Section 15-155, based upon the
 2    employee's basic compensation on the date the  leave  begins,
 3    or  based  upon  the  actual  compensation  received  by  the
 4    employee  for  service  with  a  teacher  organization if the
 5    employee has so elected.
 6    (Source: P.A. 86-1488; 87-1265.)
 7        (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
 8        Sec. 15-113.3.  Service for periods of military  service.
 9    "Service  for  periods  of military service":  Those periods,
10    not exceeding 5 years, during which a person  served  in  the
11    armed  forces  of the United States, of which all but 2 years
12    must have immediately followed a period of employment with an
13    employer under this system or the State Employees' Retirement
14    System of Illinois;  provided  that  the  person  received  a
15    discharge   other  than  dishonorable  and  again  became  an
16    employee under this system within one year  after  discharge.
17    However,  for  the  up  to  2  years  of military service not
18    immediately following employment,  the  applicant  must  make
19    contributions  to  the  System  (1)  at the rates provided in
20    Section 15-157 based upon the employee's  basic  compensation
21    on  the  last  date as a participating employee prior to such
22    military service, or on the first  date  as  a  participating
23    employee  after  such military service, whichever is greater,
24    plus (2) an amount determined by the board to be equal to the
25    employer's normal cost  of  the  benefits  accrued  for  such
26    military  service,  plus (3) interest on items (1) and (2) at
27    the effective rate from  the  later  of  the  date  of  first
28    membership  in  the  System  or  the  date  of  conclusion of
29    military service to the date of payment. The  change  in  the
30    required  contribution  for purchased military credit made by
31    this amendatory Act of 1993 does not entitle any person to  a
32    refund of contributions already paid.
33        The  changes  to this Section made by this amendatory Act
                            -5-                LRB9002319EGsb
 1    of 1991 shall apply not only to persons who on or  after  its
 2    effective  date  are in service under the System, but also to
 3    persons whose  employment  terminated  prior  to  that  date,
 4    whether  or  not the person is an annuitant on that date.  In
 5    the case of an annuitant who  applies  for  credit  allowable
 6    under  this Section for a period of military service that did
 7    not immediately follow  employment,  and  who  has  made  the
 8    required  contributions for such credit, the annuity shall be
 9    recalculated to include the additional service  credit,  with
10    the  increase  taking  effect on the date the System received
11    written notification of the annuitant's  intent  to  purchase
12    the  credit,  if payment of all the required contributions is
13    made within 60 days of such notice,  or  else  on  the  first
14    annuity  payment  date  following  the date of payment of the
15    required contributions.  In calculating the automatic  annual
16    increase for an annuity that has been recalculated under this
17    Section,  the increase attributable to the additional service
18    allowable under this amendatory Act of 1991 shall be included
19    in the calculation of  automatic  annual  increases  accruing
20    after the effective date of the recalculation.
21    (Source: P.A. 87-794; 87-1265.)
22        (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
23        Sec.  15-113.4.   Service for unused sick leave. "Service
24    for unused sick leave":  A participant  who  is  an  employee
25    under  this  System  or  one  of the other systems subject to
26    Article 20 of this Code within 60 days immediately  preceding
27    the  date  on  which his or her retirement annuity begins, is
28    entitled to credit for service for  that  portion  of  unused
29    sick  leave  earned  in  the  course  of  employment  with an
30    employer  and   credited  on  the  date  of  termination   of
31    employment  by an employer for which payment is not received,
32    in accordance with the following  schedule:   30  through  90
33    full calendar days and 20 through 59 full work days of unused
                            -6-                LRB9002319EGsb
 1    sick  leave,  1/4  of  a year of service; 91 through 180 full
 2    calendar days and 60 through 119 full work  days,  1/2  of  a
 3    year  of  service; 181 through 270 full calendar days and 120
 4    through 179 full work days, 3/4 of a year  of  service;   271
 5    through  360 full calendar days and 180 through 240 full work
 6    days, one year of service.  If a participant  transfers  from
 7    one  employer  to  another, the unused sick leave credited by
 8    the previous employer  shall  be  considered  in  determining
 9    service  to  be  credited  under  this  Section,  even if the
10    participant terminated service prior to the effective date of
11    P.A. 86-272 (August 23, 1989); if necessary,  the  retirement
12    annuity  shall  be  recalculated  to  reflect such sick leave
13    credit.  Each employer shall certify to the board the  number
14    of  days  of  unused  sick leave accrued to the participant's
15    credit on the  date  that  the  participant's  status  as  an
16    employee  terminated.  This period of unused sick leave shall
17    not be considered in  determining  the  date  the  retirement
18    annuity begins.
19        The  maximum  service allowable under this Section is one
20    year.  However, this maximum  shall  be  applicable  only  to
21    those persons who become participants in the system after the
22    effective date of this amendatory Act of 1997.
23    (Source: P.A. 86-272; 87-794.)
24        (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
25        Sec.  15-113.7.  Service  for  other  public  employment.
26    "Service   for  other  public  employment":   Includes  those
27    periods not exceeding the lesser of 10 years or  2/3  of  the
28    service  granted under other Sections of this Article dealing
29    with service credit, during which a person was employed  full
30    time by the United States government, or by the government of
31    a  state,  or by a political subdivision of a state, or by an
32    agency or instrumentality of any of  the  foregoing,  if  the
33    person  (1)  cannot qualify for a retirement pension or other
                            -7-                LRB9002319EGsb
 1    benefit  based  upon  employer  contributions  from   another
 2    retirement  system,  exclusive  of  federal  social security,
 3    based in whole or in part upon this employment, and (2)  pays
 4    the  lesser of (A) an amount equal to 8% of his or her annual
 5    basic compensation on the date of  becoming  a  participating
 6    employee  subsequent to this service multiplied by the number
 7    of years of such service,  together  with  compound  interest
 8    from  the  date  participation  begins to the date payment is
 9    received by the board at the rate of  6%  per  annum  through
10    August  31, 1982, and at the effective rates after that date,
11    and (B) 50% of the actuarial value of  the  increase  in  the
12    retirement   annuity   provided  by  this  service,  and  (3)
13    contributes  for  at  least  5  years  subsequent   to   this
14    employment  to  one  or  more  of the following systems:  the
15    State   Universities   Retirement   System,   the   Teachers'
16    Retirement System of the State of Illinois,  and  the  Public
17    School  Teachers' Pension and Retirement Fund of Chicago.  If
18    a function of a  governmental  unit  as  defined  by  Section
19    20-107  is  transferred  by  law,  in  whole or in part to an
20    employer, and an  employee  transfers  employment  from  this
21    governmental  unit  to  such  employer within 6 months of the
22    transfer of the function, the payment for service  authorized
23    under  this  Section  shall not exceed the amount which would
24    have been payable for this service to the  retirement  system
25    covering  the  governmental  unit from which the function was
26    transferred.
27        The service granted  under  this  Section  shall  not  be
28    considered  in determining whether the person has the minimum
29    of 8 years of service required to qualify  for  a  retirement
30    annuity  at  age  55  or  the  5 years of service required to
31    qualify for a retirement annuity at age 62,  as  provided  in
32    Section  15-135.    The maximum allowable service of 10 years
33    for this governmental employment  shall  be  reduced  by  the
34    service  credit  which  is  validated  under paragraph (3) of
                            -8-                LRB9002319EGsb
 1    Section 16-127 and paragraph one of Section 17-133.
 2        Except as hereinafter provided, this  Section  shall  not
 3    apply  to persons who become participants in the system after
 4    September 1, 1974.  Except as  hereinafter  provided,  credit
 5    for military service under this Section shall be allowed only
 6    to  persons who have applied for such credit before September
 7    1, 1974.  The foregoing September 1, 1974, limitations do not
 8    apply to any person who became a participant in the system on
 9    or before January 15, 1977, and prior thereto, had a  minimum
10    of 20 years of service credit granted in the General Assembly
11    Retirement System.
12    (Source: P.A. 87-1265.)
13        (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
14        Sec.  15-125.   "Prescribed  Rate  of Interest; Effective
15    Rate of Interest":
16        (1)  "Prescribed rate of interest": The rate of  interest
17    to  be  used  in  actuarial  valuations and in development of
18    actuarial tables as determined by the board on the  basis  of
19    the  probable  average  effective  rate of interest on a long
20    term basis.
21        (2)  "Effective rate of interest": The interest rate  for
22    any  fiscal  year  that  is  determined by the board based on
23    factors including the system's past and  expected  investment
24    experience;  historical  and  expected  fluctuations  in  the
25    market  value  of investments; the desirability of minimizing
26    volatility in the effective rate of  interest  from  year  to
27    year;  the  provision of reserves for anticipated losses upon
28    sales, redemptions, or other disposition of  investments  and
29    for  variations  in interest experience.  This amendatory Act
30    of 1997 is a clarification of existing law. The interest rate
31    for  any  fiscal  year  determined  by  the  board  from  the
32    investment experience of the preceding fiscal years  and  the
33    estimated  investment  experience of the current fiscal year.
                            -9-                LRB9002319EGsb
 1    In determining the effective rate of interest to be  credited
 2    to member contribution accounts and other reserves, the board
 3    may  provide  for reserves for anticipated losses upon sales,
 4    redemptions or  other  disposition  of  investments  and  for
 5    reserves for variations in interest experience.
 6    (Source: P.A. 79-1146.)
 7        (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
 8        Sec.   15-139.    Retirement   annuities;   Cancellation;
 9    Suspended during employment.
10        (a)  If   an  annuitant  returns  to  employment  for  an
11    employer within 60 days after the beginning of the retirement
12    annuity payment  period,  the  retirement  annuity  shall  be
13    cancelled,  and  the annuitant shall refund to the System the
14    total amount of the retirement annuity payments which  he  or
15    she  received.  If  the  retirement annuity is cancelled, the
16    participant shall continue to participate in the System.
17        (b)  If an annuitant retires prior to age 60 and receives
18    or becomes entitled to receive during any month  compensation
19    in  excess  of  the  monthly  retirement annuity for services
20    performed after the date of retirement for any employer under
21    this  System,  the  State  Employees'  Retirement  System  of
22    Illinois, or the Teachers' Retirement System of the State  of
23    Illinois,  that  portion  of  the  monthly retirement annuity
24    provided by employer contributions shall not be payable.
25        If an annuitant retires at age 60 or over and receives or
26    becomes  entitled  to  receive  during  any   academic   year
27    compensation  in  excess of the difference between his or her
28    highest annual earnings prior to retirement and  his  or  her
29    annual retirement annuity computed under Rule 1, Rule 2, Rule
30    3  or  Rule  4 of Section 15-136 for services performed after
31    the date of retirement for any employer  under  this  System,
32    that  portion  of  the monthly retirement annuity provided by
33    employer contributions shall be reduced by an amount equal to
                            -10-               LRB9002319EGsb
 1    the compensation that exceeds such difference.
 2        However, any  remuneration  received  for  serving  as  a
 3    member  of  the  Illinois  Educational  Labor Relations Board
 4    shall be excluded from "compensation"  for  the  purposes  of
 5    this  subsection (b), and serving as a member of the Illinois
 6    Educational Labor Relations Board shall not be deemed to be a
 7    return to employment for the purposes of this  Section.  This
 8    provision  applies  without  regard  to  whether  service was
 9    terminated prior to the effective date of this amendatory Act
10    of 1991.
11        (b) (c)  If an employer certifies that an  annuitant  has
12    been  reemployed  on a permanent and continuous basis or in a
13    position in which the annuitant is expected to serve  for  at
14    least  9 months, the annuitant shall resume his or her status
15    as a participating employee and  shall  be  entitled  to  all
16    rights applicable to participating employees upon filing with
17    the  board  an election to forego all annuity payments during
18    the period of reemployment. Upon subsequent  retirement,  the
19    retirement  annuity  shall  consist  of the annuity which was
20    terminated  by  the   reemployment,   plus   the   additional
21    retirement  annuity  based  upon  service  granted during the
22    period of reemployment, but the combined  retirement  annuity
23    shall  not  exceed the maximum annuity applicable on the date
24    of the last retirement.
25        The total service and earnings credited before and  after
26    the  initial  date  of  retirement  shall  be  considered  in
27    determining  eligibility  of  the  employee or the employee's
28    beneficiary  to  benefits  under   this   Article,   and   in
29    calculating final rate of earnings.
30        In determining the death benefit payable to a beneficiary
31    of  an  annuitant  who again becomes a participating employee
32    under  this  Section,  accumulated  normal   and   additional
33    contributions   shall   be  considered  as  the  sum  of  the
34    accumulated normal and additional contributions at  the  date
                            -11-               LRB9002319EGsb
 1    of   initial   retirement  and  the  accumulated  normal  and
 2    additional contributions credited after that date,  less  the
 3    sum of the annuity payments received by the annuitant.
 4        The  survivors  insurance benefits provided under Section
 5    15-145 shall not be applicable to an  annuitant  who  resumes
 6    his  or  her  status  as a participating employee, unless the
 7    annuitant, at the time of initial retirement, has a survivors
 8    insurance beneficiary who could qualify for such benefits.
 9        If the annuitant's employment is  terminated  because  of
10    circumstances  other than death before 9 months from the date
11    of reemployment, the provisions  of  this  Section  regarding
12    resumption  of  status  as a participating employee shall not
13    apply. The normal and survivors insurance contributions which
14    are deducted during this period  shall  be  refunded  to  the
15    annuitant  without  interest,  and  subsequent benefits under
16    this Article shall be the same as those which were applicable
17    prior to the date the annuitant resumed employment.
18    (Source: P.A. 86-1488.)
19        (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
20        Sec. 15-143.  Death benefits -  General  provisions.  All
21    death  benefits  shall  be  paid  as  a  single  cash  sum or
22    otherwise as the beneficiary and the  board  mutually  agree,
23    except  where  an  annuity is payable under Section 15-144. A
24    death benefit shall be paid  as  soon  as  practicable  after
25    receipt  by  the  board  of  (1) a written application by the
26    beneficiary and (2) such evidence of death and identification
27    as the board shall require.
28    (Source: P.A. 83-1440.)
29        (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
30        Sec.  15-153.2.   Disability   retirement   annuity.    A
31    participant  whose disability benefits are discontinued under
32    the provisions of  clause  (6)  (5)  of  Section  15-152,  is
                            -12-               LRB9002319EGsb
 1    entitled  to  a  disability  retirement annuity of 35% of the
 2    basic compensation which was payable to  the  participant  at
 3    the  time that disability began, provided at least 2 licensed
 4    and practicing physicians appointed by the board certify that
 5    the participant has  a  medically  determinable  physical  or
 6    mental  impairment  which  would  prevent  him  or  her  from
 7    engaging  in  any substantial gainful activity, and which can
 8    be expected to result in death or which has lasted or can  be
 9    expected  to last for a continuous period of not less than 12
10    months.  The terms "medically determinable physical or mental
11    impairment" and "substantial gainful activity" shall have the
12    meanings ascribed to them in the "Social  Security  Act",  as
13    now   or   hereafter  amended,  and  the  regulations  issued
14    thereunder.
15        The disability retirement annuity  payment  period  shall
16    begin  immediately following the expiration of the disability
17    benefit payments under clause (6) (5) of Section  15-152  and
18    shall  be  discontinued  when  (1)  the  physical  or  mental
19    impairment  no  longer prevents the participant from engaging
20    in any substantial gainful activity, (2) the participant dies
21    or (3) the participant elects to receive a retirement annuity
22    under Sections 15-135 and 15-136.  If a  person's  disability
23    retirement  annuity  is  discontinued  under  clause (1), all
24    rights and credits accrued in the system on the date that the
25    disability retirement annuity began shall  be  restored,  and
26    the disability retirement annuity paid shall be considered as
27    disability payments under clause (6) (5) of Section 15-152.
28    (Source: P.A. 83-1440.)
29        (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
30        Sec. 15-157.  Employee Contributions.
31        (a)  Each participating employee shall make contributions
32    towards  the  retirement  annuity of each payment of earnings
33    applicable to employment under this system on and  after  the
                            -13-               LRB9002319EGsb
 1    date   of  becoming  a  participant  as  follows:   Prior  to
 2    September 1, 1949, 3 1/2% of earnings; from September 1, 1949
 3    to August 31, 1955, 5%; from September 1, 1955 to August  31,
 4    1969,   6%;   from   September   1,  1969,  6  1/2%.    These
 5    contributions are to be considered  as  normal  contributions
 6    for purposes of this Article.
 7        Each  participant  who is a police officer or firefighter
 8    shall make normal contributions of  8%  of  each  payment  of
 9    earnings  applicable  to  employment  as  a police officer or
10    firefighter under this system on or after September 1,  1981,
11    unless  he  or  she files with the board within 60 days after
12    the effective date of this amendatory Act of 1991 or 60  days
13    after the board receives notice that he or she is employed as
14    a  police  officer  or  firefighter,  whichever  is  later, a
15    written notice waiving the  retirement  formula  provided  by
16    Rule  4 of Section 15-136.  This waiver shall be irrevocable.
17    If a participant had met the conditions set forth in  Section
18    15-132.1  prior  to the effective date of this amendatory Act
19    of  1991  but  failed   to   make   the   additional   normal
20    contributions required by this paragraph, he or she may elect
21    to pay the additional contributions plus compound interest at
22    the  effective  rate.   If  such  payment  is received by the
23    board, the service shall  be  considered  as  police  officer
24    service in calculating the retirement annuity under Rule 4 of
25    Section 15-136.
26        (b)  Starting   September  1,  1969,  each  participating
27    employee shall make additional contributions of 1/2 of 1%  of
28    earnings  to  finance  a  portion  of  the cost of the annual
29    increases  in  retirement  annuity  provided  under   Section
30    15-136.
31        (c)  Each  participating  employee  shall  make survivors
32    insurance contributions of 1% of  earnings  applicable  under
33    this  system  on  and after August 1, 1959.  Contributions in
34    excess of $80 during any fiscal year beginning before  August
                            -14-               LRB9002319EGsb
 1    31,  1969  and  in  excess  of  $120  during  any fiscal year
 2    thereafter until September 1, 1971  shall  be  considered  as
 3    additional contributions for purposes of this Article.
 4        (d)  If the board by board rule so permits and subject to
 5    such  conditions  and  limitations as may be specified in its
 6    rules, a participant may make other additional  contributions
 7    of  such percentage of earnings or amounts as the participant
 8    shall elect in a  written  notice  thereof  received  by  the
 9    board.
10        (e)  That  fraction  of a participant's total accumulated
11    normal contributions, the numerator of which is equal to  the
12    number  of  years  of  service  in  excess  of  that which is
13    required to qualify for the maximum retirement  annuity,  and
14    the denominator of which is equal to the total service of the
15    participant,  shall  be  considered as accumulated additional
16    contributions.  The determination of the  applicable  maximum
17    annuity  and the adjustment in contributions required by this
18    provision shall be made as of the date of  the  participant's
19    retirement.
20        (f)  Notwithstanding   the   foregoing,  a  participating
21    employee shall not be required to  make  contributions  under
22    this  Section  after  the date upon which continuance of such
23    contributions would otherwise cause  his  or  her  retirement
24    annuity to exceed the maximum retirement annuity as specified
25    in clause (1) of subsection (c) of Section 15-136.
26    (Source: P.A. 86-272; 86-1488.)
27        (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
28        Sec.  15-167.2.  To issue bonds.  To borrow money and, in
29    evidence of its obligation to repay the borrowing,  to  issue
30    bonds  for  the purpose of financing the cost of any project.
31    The bonds shall be authorized pursuant to a resolution to  be
32    adopted  by the board setting forth all details in connection
33    with the bonds.
                            -15-               LRB9002319EGsb
 1        The principal amount of  the  outstanding  bonds  of  the
 2    board shall not at any time exceed $20,000,000 $10,000,000.
 3        The  bonds may be issued in one or more series, bear such
 4    date or dates, become due at such time  or  times  within  40
 5    years,  bear  interest  payable at such intervals and at such
 6    rate or rates, which rates may be fixed or  variable,  be  in
 7    such   denominations,   be   in  such  form,  either  coupon,
 8    registered or book-entry, carry such conversion, registration
 9    and exchange privileges, be subject to defeasance  upon  such
10    terms,  have  such  rank  or  priority,  be  executed in such
11    manner, be payable in such medium of payment at such place or
12    places  within  or  without  the  State  of  Illinois,   make
13    provision for a corporate trustee within or without the State
14    of Illinois with respect to such bonds, prescribe the rights,
15    powers  and duties thereof to be exercised for the benefit of
16    the board, the system and the protection of the  bondholders,
17    provide  for  the  holding  in  trust,  investment and use of
18    moneys, funds and accounts held in connection  therewith,  be
19    subject  to such terms of redemption with or without premium,
20    and be sold in such manner at private or public sale  and  at
21    such price, all as the board shall determine.  Whenever bonds
22    are sold at a price less than par, they shall be sold at such
23    price and bear interest at such rate or rates that either the
24    true  interest  cost (yield) or the net interest rate, as may
25    be selected by the board, received  upon  the  sale  of  such
26    bonds  does not exceed the maximum interest rate permitted by
27    the Bond Authorization Act, as amended at  the  time  of  the
28    making of the contract.
29        Any  bonds  may be refunded or advance refunded upon such
30    terms as the board may determine for such term of years,  not
31    exceeding  40  years, and in such principal amount, as may be
32    deemed  necessary  by  the  board.   Any  redemption  premium
33    payable upon the redemption of bonds may be payable from  the
34    proceeds  of  refunding  bonds  issued  for  the  purpose  of
                            -16-               LRB9002319EGsb
 1    refunding  such  bonds, from any lawfully available source or
 2    from both refunding bond proceeds and such other sources.
 3        The bonds or refunding bonds shall be obligations of  the
 4    board payable from the income, interest and dividends derived
 5    from  investments  of  the board, all as may be designated in
 6    the resolution of the board authorizing the issuance  of  the
 7    bonds.  The  bonds  shall  be  secured  as  provided  in  the
 8    authorizing  resolution, which may, notwithstanding any other
 9    provision  of  this  Code,  include  a  specific  pledge   or
10    assignment of and lien on or security interest in the income,
11    interest  and dividends derived from investments of the board
12    and a specific  pledge  or  assignment  of  and  lien  on  or
13    security   interest   in  any  funds,  reserves  or  accounts
14    established or provided for by the resolution  of  the  board
15    authorizing the issuance of the bonds. The bonds or refunding
16    bonds  shall  not  be  payable  from any employer or employee
17    contributions   derived   from   State   appropriations   nor
18    constitute  obligations  or  indebtedness  of  the  State  of
19    Illinois or  of  any  municipal  corporation  or  other  body
20    politic and corporate in the State.
21        The  holder  or  holders of any bonds issued by the board
22    may bring suits at law or proceedings in equity to compel the
23    performance and observance by the board or any of its  agents
24    or  employees  of  any  contract  or  covenant  made with the
25    holders of the bonds, to compel  the  board  or  any  of  its
26    agents  or  employees  to  perform  any duties required to be
27    performed for the benefit of the holders of the bonds by  the
28    provisions  of the resolution authorizing their issuance, and
29    to enjoin the board or any of its agents  or  employees  from
30    taking  any  action  in  conflict  with  any such contract or
31    covenant.
32        Notwithstanding the provisions of Section 15-188 of  this
33    Code, if the board fails to pay the principal of, premium, if
34    any,  or  interest  on any of the bonds as they become due, a
                            -17-               LRB9002319EGsb
 1    civil action to compel  payment  may  be  instituted  in  the
 2    appropriate  circuit  court  by  the holder or holders of the
 3    bonds upon which such default exists or by a  trustee  acting
 4    on behalf of the holders.
 5        No bonds may be issued under this Section until a copy of
 6    the resolution of the board authorizing such bonds, certified
 7    by  the  secretary  of  the  board,  has  been filed with the
 8    Governor of the State of Illinois.
 9        "Bonds" means any instrument evidencing the obligation to
10    pay  money,  including  without  limitation   bonds,   notes,
11    installment  or  financing  contracts,  leases, certificates,
12    warrants, and any other evidences of indebtedness.
13        "Project" means the acquisition, construction, equipping,
14    improving, expanding and furnishing of  any  office  building
15    for  the  use  of  the  system,  including any real estate or
16    interest in real estate necessary  or  useful  in  connection
17    therewith.
18        "Cost  of  any project" includes all capital costs of the
19    project, an amount for  expenses  of  issuing  any  bonds  to
20    finance  such  project,  including underwriter's discount and
21    costs of bond  insurance  or  other  credit  enhancement,  an
22    amount  necessary  to  provide  for  a  reserve  fund for the
23    payment of the principal of and interest on such bonds and an
24    amount to pay interest on such bonds  for  a  period  not  to
25    exceed  the  greater  of  2 years or a period ending 6 months
26    after the estimated date of completion of the project.
27    (Source: P.A. 86-1034.)
28        (40 ILCS 5/15-168.1 new)
29        Sec. 15-168.1.  Testimony and the production of  records.
30    The  secretary  of  the  Board  shall have the power to issue
31    subpoenas to compel  the  attendance  of  witnesses  and  the
32    production   of   documents   and   records,   including  law
33    enforcement records maintained by law  enforcement  agencies,
                            -18-               LRB9002319EGsb
 1    in conjunction with a disability claim, administrative review
 2    proceedings, or felony forfeiture investigation.  The fees of
 3    witnesses  for attendance and travel shall be the same as the
 4    fees of witnesses before the circuit courts of this State and
 5    shall be paid by the party seeking the subpoena.   The  Board
 6    may  apply  to  any  circuit  court in the State for an order
 7    requiring  compliance  with  a  subpoena  issued  under  this
 8    Section.   Subpoenas  issued  under  this  Section  shall  be
 9    subject  to  applicable  provisions  of  the  Code  of  Civil
10    Procedure.
11        (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
12        Sec. 15-185.  Annuities,  etc.  Exempt.  The  accumulated
13    employee  and  employer  contributions shall be held in trust
14    for each participant and annuitant, and this trust  shall  be
15    treated  as  a  spendthrift trust. Except as provided in this
16    Article, all cash, securities  and  other  property  of  this
17    system,  all  annuities and other benefits payable under this
18    Article and  all  accumulated  credits  of  participants  and
19    annuitants  in  this  system  and  the right of any person to
20    receive an annuity or other benefit under this Article, or  a
21    refund  of  contributions,  shall not be subject to judgment,
22    execution,  garnishment,  attachment,  or  other  seizure  by
23    process, in bankruptcy or otherwise,  nor  to  sale,  pledge,
24    mortgage  or  other  alienation, and shall not be assignable.
25    The board, however, may deduct from the benefits, refunds and
26    credits payable to the participant, annuitant or beneficiary,
27    amounts owed  by the participant or annuitant to the  system.
28    No  attempted  sale,  transfer  or assignment of any benefit,
29    refund or credit shall prevent the right of the board to make
30    the deduction and offset  authorized  in  this  Section.  Any
31    participant  or  annuitant  may authorize the board to deduct
32    from disability benefits or annuities, premiums due under any
33    group hospital-surgical insurance program which is  sponsored
                            -19-               LRB9002319EGsb
 1    or  approved  by  any  employer; however, the deductions from
 2    disability benefits may not begin prior to 6 months after the
 3    disability occurs.
 4        A  person  receiving  an  annuity  or  benefit  may  also
 5    authorize withholding from such annuity or  benefit  for  the
 6    purposes   enumerated   in   the  State  Salary  and  Annuity
 7    Withholding Act.
 8        This  amendatory  Act  of  1989  is  a  clarification  of
 9    existing law and shall be applicable to every participant and
10    annuitant without regard to whether  status  as  an  employee
11    terminates  before  the effective date of this amendatory Act
12    of 1989.
13    (Source: P.A. 86-273; 86-1488.)
14        (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
15        Sec. 15-190.  Persons under legal disability. If a person
16    is under legal disability when any right or privilege accrues
17    to him or her under this Article, a guardian may be appointed
18    pursuant to law, and may, on behalf of such person, claim and
19    exercise any such right or privilege with the same force  and
20    effect as if the person had not been under a legal disability
21    and had claimed or exercised such right or privilege.
22        If  a  person's application for benefits or a physician's
23    certificate on file with the board shows that the  person  is
24    under  a legal disability, and no guardian has been appointed
25    for his or  her  estate,  the  benefits  payable  under  this
26    Article  may  be  paid (1) directly to the person under legal
27    disability, or (2) to either parent of the person under legal
28    disability or any adult person with  whom  the  person  under
29    legal  disability  may  at  the time be living, provided only
30    that such parent or adult person to whom any amount is to  be
31    paid shall have advised the board in writing that such amount
32    will  be  held  or  used  for the benefit of the person under
33    legal disability, or (3) to the trustee of any trust  created
                            -20-               LRB9002319EGsb
 1    for  the  sole  benefit  of the person under legal disability
 2    while that person is living, provided only that  the  trustee
 3    of  such  trust  to  whom any amount is to be paid shall have
 4    advised the board in writing that such amount will be held or
 5    used for the benefit of the person  under  legal  disability.
 6    The system shall not be required to determine the validity of
 7    the trust or any of the terms thereof.  The representation of
 8    the  trustee  that  the  trust meets the requirements of this
 9    Section shall be conclusive as to the  system.   The  written
10    receipt  of  the  person  under legal disability or the other
11    person  who  receives  such  payment  shall  be  an  absolute
12    discharge of the system's liability in respect of the  amount
13    so paid.
14    (Source: P.A. 86-1488.)
15        (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
16        Sec.  15-191.   Payment  of  benefits  to  minors. If any
17    benefits under this Article become payable to  a  minor,  the
18    board  may make payment (1) directly to the minor, (2) to any
19    person who has legally qualified and is acting as guardian of
20    the minor's person or property in any jurisdiction, or (3) to
21    either parent of the minor or to any adult person  with  whom
22    the  minor  may at the time be living, provided only that the
23    parent or other person to whom any amount is to be paid shall
24    have advised the board in writing that such  amount  will  be
25    held  or  used  for  the  benefit of the minor, or (4) to the
26    trustee of any trust created for  the  sole  benefit  of  the
27    minor  while  that  minor  is  living, provided only that the
28    trustee of such trust to whom any amount is to be paid  shall
29    have  advised  the  board in writing that such amount will be
30    held or used for the benefit of the minor.  The system  shall
31    not be required to determine the validity of the trust or any
32    of the terms thereof.  The representation of the trustee that
33    the  trust  meets  the  requirements of this Section shall be
                            -21-               LRB9002319EGsb
 1    conclusive as to the  system.  The  written  receipt  of  the
 2    minor,  parent,  trustee,  or  other person who receives such
 3    payment shall  be  an  absolute  discharge  of  the  system's
 4    liability in respect of the amount so paid.
 5    (Source: P.A. 83-1440.)
 6        (40 ILCS 5/15-144 rep.)
 7        Section  10.  The  Illinois  Pension  Code  is amended by
 8    repealing Section 15-144.
 9        Section 99.  Effective date.  This Act takes effect  upon
10    becoming law.
                            -22-               LRB9002319EGsb
 1                                INDEX
 2               Statutes amended in order of appearance
 3    40 ILCS 5/15-112          from Ch. 108 1/2, par. 15-112
 4    40 ILCS 5/15-113.2        from Ch. 108 1/2, par. 15-113.2
 5    40 ILCS 5/15-113.3        from Ch. 108 1/2, par. 15-113.3
 6    40 ILCS 5/15-113.4        from Ch. 108 1/2, par. 15-113.4
 7    40 ILCS 5/15-113.7        from Ch. 108 1/2, par. 15-113.7
 8    40 ILCS 5/15-125          from Ch. 108 1/2, par. 15-125
 9    40 ILCS 5/15-139          from Ch. 108 1/2, par. 15-139
10    40 ILCS 5/15-143          from Ch. 108 1/2, par. 15-143
11    40 ILCS 5/15-153.2        from Ch. 108 1/2, par. 15-153.2
12    40 ILCS 5/15-157          from Ch. 108 1/2, par. 15-157
13    40 ILCS 5/15-167.2        from Ch. 108 1/2, par. 15-167.2
14    40 ILCS 5/15-168.1 new
15    40 ILCS 5/15-185          from Ch. 108 1/2, par. 15-185
16    40 ILCS 5/15-190          from Ch. 108 1/2, par. 15-190
17    40 ILCS 5/15-191          from Ch. 108 1/2, par. 15-191
18    40 ILCS 5/15-144 rep.

[ Top ]