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90_SB1422
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.
LRB9011085EGfgB
LRB9011085EGfgB
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;
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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
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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
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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.
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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
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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
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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
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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
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1 necessary for determining the employment capacity and
2 condition of the participant.
3 The terms "medically determinable physical or mental
4 impairment" and "substantial gainful activity" shall have the
5 meanings ascribed to them in the federal "Social Security
6 Act", as now or hereafter amended, and the regulations issued
7 thereunder.
8 The disability retirement annuity payment period shall
9 begin immediately following the expiration of the disability
10 benefit payments under clause (6) of Section 15-152 and shall
11 be discontinued when (1) the physical or mental impairment no
12 longer prevents the participant from engaging in any
13 substantial gainful activity, (2) the participant dies or (3)
14 the participant elects to receive a retirement annuity under
15 Sections 15-135 and 15-136. If a person's disability
16 retirement annuity is discontinued under clause (1), all
17 rights and credits accrued in the system on the date that the
18 disability retirement annuity began shall be restored, and
19 the disability retirement annuity paid shall be considered as
20 disability payments under clause (6) of Section 15-152.
21 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
22 eff. 8-22-97.)
23 (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
24 Sec. 15-153.3. Automatic increase in disability benefit.
25 Each disability benefit payable under Section 15-150 and
26 calculated under Section 15-153 or 15-153.2 shall be
27 increased by 7% of the original fixed amount of such benefit
28 on January 1, 1991 or January 1 on or next following the
29 fourth anniversary of the granting of the benefit, whichever
30 occurs later. On each January 1 following the 7% increase,
31 the disability benefit shall be increased by 3% of the
32 current amount of the benefit, including prior increases
33 under this Article.
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1 (Source: P.A. 86-1488.)
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.