[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB4188
LRB9111684LDpk
1 AN ACT in relation to public employee benefits.
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 7-132, 7-137.1, 7-139, 7-141, 7-141.1,
6 7-157, 7-164, 7-166, 7-167, 7-184, and 7-211 and adding
7 Section 7-224 as follows:
8 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
9 Sec. 7-132. Municipalities, instrumentalities and
10 participating instrumentalities included and effective dates.
11 (A) Municipalities and their instrumentalities.
12 (a) The following described municipalities, but not
13 including any with more than 1,000,000 inhabitants, and the
14 instrumentalities thereof, shall be included within and be
15 subject to this Article beginning upon the effective dates
16 specified by the Board:
17 (1) Except as to the municipalities and
18 instrumentalities thereof specifically excluded under
19 this Article, every county shall be subject to this
20 Article, and all cities, villages and incorporated towns
21 having a population in excess of 5,000 inhabitants as
22 determined by the last preceding decennial or subsequent
23 federal census, shall be subject to this Article
24 following publication of the census by the Bureau of the
25 Census. Within 90 days after publication of the census,
26 the Board shall notify any municipality that has become
27 subject to this Article as a result of that census, and
28 shall provide information to the corporate authorities of
29 the municipality explaining the duties and consequences
30 of participation. The notification shall also include a
31 proposed date upon which participation by the
-2- LRB9111684LDpk
1 municipality will commence.
2 However, for any city, village or incorporated town
3 that attains a population over 5,000 inhabitants after
4 having provided social security coverage for its
5 employees under the Social Security Enabling Act,
6 participation under this Article shall not be mandatory
7 but may be elected in accordance with subparagraph (3) or
8 (4) of this paragraph (a), whichever is applicable.
9 (2) School districts, other than those specifically
10 excluded under this Article, shall be subject to this
11 Article, without election, with respect to all employees
12 thereof.
13 (3) Towns and all other bodies politic and
14 corporate which are formed by vote of, or are subject to
15 control by, the electors in towns and are located in
16 towns which are not participating municipalities on the
17 effective date of this Act, may become subject to this
18 Article by election pursuant to Section 7-132.1.
19 (4) Any other municipality (together with its
20 instrumentalities), other than those specifically
21 excluded from participation and those described in
22 paragraph (3) above, may elect to be included either by
23 referendum under Section 7-134 or by the adoption of a
24 resolution or ordinance by its governing body. A copy of
25 such resolution or ordinance duly authenticated and
26 certified by the clerk of the municipality or other
27 appropriate official of its governing body shall
28 constitute the required notice to the board of such
29 action.
30 (b) A municipality that is about to begin participation
31 shall submit to the Board an application to participate, in a
32 form acceptable to the Board, not later than 90 days prior to
33 the proposed effective date of participation. The Board
34 shall act upon the application within 90 days, and if it
-3- LRB9111684LDpk
1 finds that the application is in conformity with its
2 requirements and the requirements of this Article,
3 participation by the applicant shall commence on a date
4 acceptable to the municipality and specified by the Board,
5 but in no event more than one year from the date of
6 application.
7 (c) A participating municipality which succeeds to the
8 functions of a participating municipality which is dissolved
9 or terminates its existence shall assume and be transferred
10 the net accumulation balance in the municipality reserve and
11 the municipality account receivable balance of the terminated
12 municipality.
13 (d) In the case of a Veterans Assistance Commission
14 whose employees were being treated by the Fund on January 1,
15 1990 as employees of the county served by the Commission, the
16 Fund may continue to treat the employees of the Veterans
17 Assistance Commission as county employees for the purposes of
18 this Article, unless the Commission becomes a participating
19 instrumentality in accordance with subsection (B) of this
20 Section.
21 (B) Participating instrumentalities.
22 (a) The participating instrumentalities designated in
23 paragraph (b) of this subsection shall be included within and
24 be subject to this Article if:
25 (1) an application to participate, in a form
26 acceptable to the Board and adopted by a two-thirds vote
27 of the governing body, is presented to the Board not
28 later than 90 days prior to the proposed effective date;
29 and
30 (2) the Board finds that the application is in
31 conformity with its requirements, that the applicant has
32 reasonable expectation to continue as a political entity
33 for a period of at least 10 years and has the prospective
34 financial capacity to meet its current and future
-4- LRB9111684LDpk
1 obligations to the Fund, and that the actuarial soundness
2 of the Fund may be reasonably expected to be unimpaired
3 by approval of participation by the applicant.
4 The Board shall notify the applicant of its findings
5 within 90 days after receiving the application, and if the
6 Board approves the application, participation by the
7 applicant shall commence on the effective date specified by
8 the Board.
9 (b) The following participating instrumentalities, so
10 long as they meet the requirements of Section 7-108 and the
11 area served by them or within their jurisdiction is not
12 located entirely within a municipality having more than one
13 million inhabitants, may be included hereunder:
14 i. Township School District Trustees.
15 ii. Multiple County and Consolidated Health
16 Departments created under Division 5-25 of the Counties
17 Code or its predecessor law.
18 iii. Public Building Commissions created under the
19 Public Building Commission Act, and located in counties
20 of less than 1,000,000 inhabitants.
21 iv. A multitype, consolidated or cooperative
22 library system created under the Illinois Library System
23 Act. Any library system created under the Illinois
24 Library System Act that has one or more predecessors that
25 participated in the Fund may participate in the Fund upon
26 application. The Board shall establish procedures for
27 implementing the transfer of rights and obligations from
28 the predecessor system to the successor system.
29 v. Regional Planning Commissions created under
30 Division 5-14 of the Counties Code or its predecessor
31 law.
32 vi. Local Public Housing Authorities created under
33 the Housing Authorities Act, located in counties of less
34 than 1,000,000 inhabitants.
-5- LRB9111684LDpk
1 vii. Illinois Municipal League.
2 viii. Northeastern Illinois Metropolitan Area
3 Planning Commission.
4 ix. Southwestern Illinois Metropolitan Area
5 Planning Commission.
6 x. Illinois Association of Park Districts.
7 xi. Illinois Supervisors, County Commissioners and
8 Superintendents of Highways Association.
9 xii. Tri-City Regional Port District.
10 xiii. An association, or not-for-profit
11 corporation, membership in which is authorized under
12 Section 85-15 of the Township Code.
13 xiv. Drainage Districts operating under the
14 Illinois Drainage Code.
15 xv. Local mass transit districts created under the
16 Local Mass Transit District Act.
17 xvi. Soil and water conservation districts created
18 under the Soil and Water Conservation Districts Law.
19 xvii. Commissions created to provide water supply
20 or sewer services or both under Division 135 or Division
21 136 of Article 11 of the Illinois Municipal Code.
22 xviii. Public water districts created under the
23 Public Water District Act.
24 xix. Veterans Assistance Commissions established
25 under Section 9 of the Military Veterans Assistance Act
26 that serve counties with a population of less than
27 1,000,000.
28 xx. The governing body of an entity, other than a
29 vocational education cooperative, created under an
30 intergovernmental cooperative agreement established
31 between participating municipalities under the
32 Intergovernmental Cooperation Act, which by the terms of
33 the agreement is the employer of the persons performing
34 services under the agreement under the usual common law
-6- LRB9111684LDpk
1 rules determining the employer-employee relationship.
2 The governing body of such an intergovernmental
3 cooperative entity established prior to July 1, 1988 may
4 make participation retroactive to the effective date of
5 the agreement and, if so, the effective date of
6 participation shall be the date the required application
7 is filed with the fund. If any such entity is unable to
8 pay the required employer contributions to the fund, then
9 the participating municipalities shall make payment of
10 the required contributions and the payments shall be
11 allocated as provided in the agreement or, if not so
12 provided, equally among them.
13 xxi. The Illinois Municipal Electric Agency.
14 xxii. The Waukegan Port District.
15 xxiii. The Fox Waterway Agency created under the
16 Fox Waterway Agency Act.
17 xxiv. The Illinois Municipal Gas Agency.
18 xxv. The Kaskaskia Regional Port District.
19 (c) The governing boards of special education joint
20 agreements created under Section 10-22.31 of the School Code
21 without designation of an administrative district shall be
22 included within and be subject to this Article as
23 participating instrumentalities when the joint agreement
24 becomes effective. However, the governing board of any such
25 special education joint agreement in effect before September
26 5, 1975 shall not be subject to this Article unless the joint
27 agreement is modified by the school districts to provide that
28 the governing board is subject to this Article, except as
29 otherwise provided by this Section.
30 The governing board of the Special Education District of
31 Lake County shall become subject to this Article as a
32 participating instrumentality on July 1, 1997.
33 Notwithstanding subdivision (a)1 of Section 7-139, on the
34 effective date of participation, employees of the governing
-7- LRB9111684LDpk
1 board of the Special Education District of Lake County shall
2 receive creditable service for their prior service with that
3 employer, up to a maximum of 5 years, without any employee
4 contribution. Employees may establish creditable service for
5 the remainder of their prior service with that employer, if
6 any, by applying in writing and paying an employee
7 contribution in an amount determined by the Fund, based on
8 the employee contribution rates in effect at the time of
9 application for the creditable service and the employee's
10 salary rate on the effective date of participation for that
11 employer, plus interest at the effective rate from the date
12 of the prior service to the date of payment. Application for
13 this creditable service must be made before July 1, 1998; the
14 payment may be made at any time while the employee is still
15 in service. The employer may elect to make the required
16 contribution on behalf of the employee.
17 The governing board of a special education joint
18 agreement created under Section 10-22.31 of the School Code
19 for which an administrative district has been designated, if
20 there are employees of the cooperative educational entity who
21 are not employees of the administrative district, may elect
22 to participate in the Fund and be included within this
23 Article as a participating instrumentality, subject to such
24 application procedures and rules as the Board may prescribe.
25 The Boards of Control of cooperative or joint educational
26 programs or projects created and administered under Section
27 3-15.14 of the School Code, whether or not the Boards act as
28 their own administrative district, shall be included within
29 and be subject to this Article as participating
30 instrumentalities when the agreement establishing the
31 cooperative or joint educational program or project becomes
32 effective.
33 The governing board of a special education joint
34 agreement entered into after June 30, 1984 and prior to
-8- LRB9111684LDpk
1 September 17, 1985 which provides for representation on the
2 governing board by less than all the participating districts
3 shall be included within and subject to this Article as a
4 participating instrumentality. Such participation shall be
5 effective as of the date the joint agreement becomes
6 effective.
7 The governing boards of educational service centers
8 established under Section 2-3.62 of the School Code shall be
9 included within and subject to this Article as participating
10 instrumentalities. The governing boards of vocational
11 education cooperative agreements created under the
12 Intergovernmental Cooperation Act and approved by the State
13 Board of Education shall be included within and be subject to
14 this Article as participating instrumentalities. If any such
15 governing boards or boards of control are unable to pay the
16 required employer contributions to the fund, then the school
17 districts served by such boards shall make payment of
18 required contributions as provided in Section 7-172. The
19 payments shall be allocated among the several school
20 districts in proportion to the number of students in average
21 daily attendance for the last full school year for each
22 district in relation to the total number of students in
23 average attendance for such period for all districts served.
24 If such educational service centers, vocational education
25 cooperatives or cooperative or joint educational programs or
26 projects created and administered under Section 3-15.14 of
27 the School Code are dissolved, the assets and obligations
28 shall be distributed among the districts in the same
29 proportions unless otherwise provided.
30 (d) The governing boards of special recreation joint
31 agreements created under Section 8-10b of the Park District
32 Code, operating without designation of an administrative
33 district or an administrative municipality appointed to
34 administer the program operating under the authority of such
-9- LRB9111684LDpk
1 joint agreement shall be included within and be subject to
2 this Article as participating instrumentalities when the
3 joint agreement becomes effective. However, the governing
4 board of any such special recreation joint agreement in
5 effect before January 1, 1980 shall not be subject to this
6 Article unless the joint agreement is modified, by the
7 districts and municipalities which are parties to the
8 agreement, to provide that the governing board is subject to
9 this Article.
10 If the Board returns any employer and employee
11 contributions to any employer which erroneously submitted
12 such contributions on behalf of a special recreation joint
13 agreement, the Board shall include interest computed from the
14 end of each year to the date of payment, not compounded, at
15 the rate of 7% per annum.
16 (e) Each multi-township assessment district, the board
17 of trustees of which has adopted this Article by ordinance
18 prior to April 1, 1982, shall be a participating
19 instrumentality included within and subject to this Article
20 effective December 1, 1981. The contributions required under
21 Section 7-172 shall be included in the budget prepared under
22 and allocated in accordance with Section 2-30 of the Property
23 Tax Code.
24 (f) Beginning January 1, 1992, each prospective
25 participating municipality or participating instrumentality
26 shall pay to the Fund the cost, as determined by the Board,
27 of a study prepared by the Fund or its actuary, detailing the
28 prospective costs of participation in the Fund to be expected
29 by the municipality or instrumentality.
30 (Source: P.A. 89-162, eff. 7-19-95; 90-511, eff. 8-22-97.)
31 (40 ILCS 5/7-137.1) (from Ch. 108 1/2, par. 7-137.1)
32 Sec. 7-137.1. Elected officials.
33 (a) A person holding an elective office who has elected
-10- LRB9111684LDpk
1 to participate in the Fund while in that office may revoke
2 that election and cease participating in the Fund by
3 notifying the Board in writing before January 1, 1992.
4 Upon such revocation, the person shall forfeit all
5 creditable service earned while holding that office, and the
6 Board shall refund to the person, without interest, all
7 employee contributions paid for the forfeited creditable
8 service. The Board shall also refund or credit to the
9 employing municipality, without interest, the employer
10 contributions relating to the forfeited service, except those
11 for death and disability.
12 (b) Notwithstanding the provisions of Sections 7-141 and
13 7-144, beginning January 1, 1992, a person who holds an
14 elective office and has not elected to participate in the
15 Fund with respect to that office (or has revoked his election
16 to participate with respect to that office under subsection
17 (a) of this Section) shall not be disqualified from receiving
18 a retirement annuity by reason of holding such office,
19 provided that the annuity is not based on any credits
20 received for participating while holding that office.
21 (Source: P.A. 87-740.)
22 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
23 Sec. 7-139. Credits and creditable service to employees.
24 (a) Each participating employee shall be granted credits
25 and creditable service, for purposes of determining the
26 amount of any annuity or benefit to which he or a beneficiary
27 is entitled, as follows:
28 1. For prior service: Each participating employee
29 who is an employee of a participating municipality or
30 participating instrumentality on the effective date shall
31 be granted creditable service, but no credits under
32 paragraph 2 of this subsection (a), for periods of prior
33 service for which credit has not been received under any
-11- LRB9111684LDpk
1 other pension fund or retirement system established under
2 this Code, as follows:
3 If the effective date of participation for the
4 participating municipality or participating
5 instrumentality is on or before January 1, 1998,
6 creditable service shall be granted for the entire period
7 of prior service with that employer without any employee
8 contribution.
9 If the effective date of participation for the
10 participating municipality or participating
11 instrumentality is after January 1, 1998, creditable
12 service shall be granted for the last 20% of the period
13 of prior service with that employer, but no more than 5
14 years, without any employee contribution. A
15 participating employee may establish creditable service
16 for the remainder of the period of prior service with
17 that employer by making an application in writing,
18 accompanied by payment of an employee contribution in an
19 amount determined by the Fund, based on the employee
20 contribution rates in effect at the time of application
21 for the creditable service and the employee's salary rate
22 on the effective date of participation for that employer,
23 plus interest at the effective rate from the date of the
24 prior service to the date of payment. Application for
25 this creditable service may be made at any time while the
26 employee is still in service.
27 Any person who has withdrawn from the service of a
28 participating municipality or participating
29 instrumentality prior to the effective date, who reenters
30 the service of the same municipality or participating
31 instrumentality after the effective date and becomes a
32 participating employee is entitled to creditable service
33 for prior service as otherwise provided in this
34 subdivision (a)(1) only if he or she renders 2 years of
-12- LRB9111684LDpk
1 service as a participating employee after the effective
2 date. Application for such service must be made while in
3 a participating status. The salary rate to be used in
4 the calculation of the required employee contribution, if
5 any, shall be the employee's salary rate at the time of
6 first reentering service with the employer after the
7 employer's effective date of participation.
8 2. For current service, each participating employee
9 shall be credited with:
10 a. Additional credits of amounts equal to each
11 payment of additional contributions received from
12 him under Section 7-173, as of the date the
13 corresponding payment of earnings is payable to him.
14 b. Normal credits of amounts equal to each
15 payment of normal contributions received from him,
16 as of the date the corresponding payment of earnings
17 is payable to him, and normal contributions made for
18 the purpose of establishing out-of-state service
19 credits as permitted under the conditions set forth
20 in paragraph 6 of this subsection (a).
21 c. Municipality credits in an amount equal to
22 1.4 times the normal credits, except those
23 established by out-of-state service credits, as of
24 the date of computation of any benefit if these
25 credits would increase the benefit.
26 d. Survivor credits equal to each payment of
27 survivor contributions received from the
28 participating employee as of the date the
29 corresponding payment of earnings is payable, and
30 survivor contributions made for the purpose of
31 establishing out-of-state service credits.
32 3. For periods of temporary and total and permanent
33 disability benefits, each employee receiving disability
34 benefits shall be granted creditable service for the
-13- LRB9111684LDpk
1 period during which disability benefits are payable.
2 Normal and survivor credits, based upon the rate of
3 earnings applied for disability benefits, shall also be
4 granted if such credits would result in a higher benefit
5 to any such employee or his beneficiary.
6 4. For authorized leave of absence without pay: A
7 participating employee shall be granted credits and
8 creditable service for periods of authorized leave of
9 absence without pay under the following conditions:
10 a. An application for credits and creditable
11 service is submitted to the board while the employee
12 is in a status of active employment, and within 2
13 years after termination of the leave of absence
14 period for which credits and creditable service are
15 sought.
16 b. Not more than 12 complete months of
17 creditable service for authorized leave of absence
18 without pay shall be counted for purposes of
19 determining any benefits payable under this Article.
20 c. Credits and creditable service shall be
21 granted for leave of absence only if such leave is
22 approved by the governing body of the municipality,
23 including approval of the estimated cost thereof to
24 the municipality as determined by the fund, and
25 employee contributions, plus interest at the
26 effective rate applicable for each year from the end
27 of the period of leave to date of payment, have been
28 paid to the fund in accordance with Section 7-173.
29 The contributions shall be computed upon the
30 assumption earnings continued during the period of
31 leave at the rate in effect when the leave began.
32 d. Benefits under the provisions of Sections
33 7-141, 7-146, 7-150 and 7-163 shall become payable
34 to employees on authorized leave of absence, or
-14- LRB9111684LDpk
1 their designated beneficiary, only if such leave of
2 absence is creditable hereunder, and if the employee
3 has at least one year of creditable service other
4 than the service granted for leave of absence. Any
5 employee contributions due may be deducted from any
6 benefits payable.
7 e. No credits or creditable service shall be
8 allowed for leave of absence without pay during any
9 period of prior service.
10 5. For military service: The governing body of a
11 municipality or participating instrumentality may elect
12 to allow creditable service to participating employees
13 who leave their employment to serve in the armed forces
14 of the United States for all periods of such service,
15 provided that the person returns to active employment
16 within 90 days after completion of full time active duty,
17 but no creditable service shall be allowed such person
18 for any period that can be used in the computation of a
19 pension or any other pay or benefit, other than pay for
20 active duty, for service in any branch of the armed
21 forces of the United States. If necessary to the
22 computation of any benefit, the board shall establish
23 municipality credits for participating employees under
24 this paragraph on the assumption that the employee
25 received earnings at the rate received at the time he
26 left the employment to enter the armed forces. A
27 participating employee in the armed forces shall not be
28 considered an employee during such period of service and
29 no additional death and no disability benefits are
30 payable for death or disability during such period.
31 Any participating employee who left his employment
32 with a municipality or participating instrumentality to
33 serve in the armed forces of the United States and who
34 again became a participating employee within 90 days
-15- LRB9111684LDpk
1 after completion of full time active duty by entering the
2 service of a different municipality or participating
3 instrumentality, which has elected to allow creditable
4 service for periods of military service under the
5 preceding paragraph, shall also be allowed creditable
6 service for his period of military service on the same
7 terms that would apply if he had been employed, before
8 entering military service, by the municipality or
9 instrumentality which employed him after he left the
10 military service and the employer costs arising in
11 relation to such grant of creditable service shall be
12 charged to and paid by that municipality or
13 instrumentality.
14 Notwithstanding the foregoing, any participating
15 employee shall be entitled to creditable service as
16 required by any federal law relating to re-employment
17 rights of persons who served in the United States Armed
18 Services. Such creditable service shall be granted upon
19 payment by the member of an amount equal to the employee
20 contributions which would have been required had the
21 employee continued in service at the same rate of
22 earnings during the military leave period, plus interest
23 at the effective rate.
24 5.1. In addition to any creditable service
25 established under paragraph 5 of this subsection (a),
26 creditable service may be granted for up to 24 months of
27 service in the armed forces of the United States.
28 In order to receive creditable service for military
29 service under this paragraph 5.1, a participating
30 employee must (1) apply to the Fund in writing and
31 provide evidence of the military service that is
32 satisfactory to the Board; (2) obtain the written
33 approval of the current employer; and (3) make
34 contributions to the Fund equal to (i) the employee
-16- LRB9111684LDpk
1 contributions that would have been required had the
2 service been rendered as a member, plus (ii) an amount
3 determined by the board to be equal to the employer's
4 normal cost of the benefits accrued for that military
5 service, plus (iii) interest on items (i) and (ii) from
6 the date of first membership in the Fund to the date of
7 payment. If payment is made during the 6-month period
8 that begins 3 months after the effective date of this
9 amendatory Act of 1997, the required interest shall be at
10 the rate of 2.5% per year, compounded annually;
11 otherwise, the required interest shall be calculated at
12 the regular interest rate.
13 6. For out-of-state service: Creditable service
14 shall be granted for service rendered to an out-of-state
15 local governmental body under the following conditions:
16 The employee had participated and has irrevocably
17 forfeited all rights to benefits in the out-of-state
18 public employees pension system; the governing body of
19 his participating municipality or instrumentality
20 authorizes the employee to establish such service; the
21 employee has 2 years current service with this
22 municipality or participating instrumentality; the
23 employee makes a payment of contributions, which shall be
24 computed at 8% (normal) plus 2% (survivor) times length
25 of service purchased times the average rate of earnings
26 for the first 2 years of service with the municipality or
27 participating instrumentality whose governing body
28 authorizes the service established plus interest at the
29 effective rate on the date such credits are established,
30 payable from the date the employee completes the required
31 2 years of current service to date of payment. In no
32 case shall more than 120 months of creditable service be
33 granted under this provision.
34 7. For retroactive service: Any employee who could
-17- LRB9111684LDpk
1 have but did not elect to become a participating
2 employee, or who should have been a participant in the
3 Municipal Public Utilities Annuity and Benefit Fund
4 before that fund was superseded, may receive creditable
5 service for the period of service not to exceed 50
6 months; however, a current or former county board member
7 may establish credit under this paragraph 7 for more than
8 50 months of service as a member of the county board if
9 the excess over 50 months is approved by resolution of
10 the affected county board filed with the Fund before
11 January 1, 1999.
12 Any employee who is a participating employee on or
13 after September 24, 1981 and who was excluded from
14 participation by the age restrictions removed by Public
15 Act 82-596 may receive creditable service for the period,
16 on or after January 1, 1979, excluded by the age
17 restriction and, in addition, if the governing body of
18 the participating municipality or participating
19 instrumentality elects to allow creditable service for
20 all employees excluded by the age restriction prior to
21 January 1, 1979, for service during the period prior to
22 that date excluded by the age restriction. Any employee
23 who was excluded from participation by the age
24 restriction removed by Public Act 82-596 and who is not a
25 participating employee on or after September 24, 1981 may
26 receive creditable service for service after January 1,
27 1979. Creditable service under this paragraph shall be
28 granted upon payment of the employee contributions which
29 would have been required had he participated, with
30 interest at the effective rate for each year from the end
31 of the period of service established to date of payment.
32 8. For accumulated unused sick leave: A
33 participating employee who is applying for a retirement
34 annuity shall be entitled to creditable service for that
-18- LRB9111684LDpk
1 portion of the employee's accumulated unused sick leave
2 for which payment is not received, as follows:
3 a. Sick leave days shall be limited to those
4 accumulated under a sick leave plan established by a
5 participating municipality or participating
6 instrumentality which is available to all employees
7 or a class of employees.
8 b. Only sick leave days accumulated with a
9 participating municipality or participating
10 instrumentality with which the employee was in
11 service within 60 days of the effective date of his
12 retirement annuity shall be credited; If the
13 employee was in service with more than one employer
14 during this period only the sick leave days with the
15 employer with which the employee has the greatest
16 number of unpaid sick leave days shall be
17 considered.
18 c. The creditable service granted shall be
19 considered solely for the purpose of computing the
20 amount of the retirement annuity and shall not be
21 used to establish any minimum service period
22 required by any provision of the Illinois Pension
23 Code, the effective date of the retirement annuity,
24 or the final rate of earnings.
25 d. The creditable service shall be at the rate
26 of 1/20 of a month for each full sick day, provided
27 that no more than 12 months may be credited under
28 this subdivision 8.
29 e. Employee contributions shall not be
30 required for creditable service under this
31 subdivision 8.
32 f. Each participating municipality and
33 participating instrumentality with which an employee
34 has service within 60 days of the effective date of
-19- LRB9111684LDpk
1 his retirement annuity shall certify to the board
2 the number of accumulated unpaid sick leave days
3 credited to the employee at the time of termination
4 of service.
5 9. For service transferred from another system:
6 Credits and creditable service shall be granted for
7 service under Article 3, 4, 5, 14 or 16 of this Act, to
8 any active member of this Fund, and to any inactive
9 member who has been a county sheriff, upon transfer of
10 such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
11 14-105.6 or 16-131.4, and payment by the member of the
12 amount by which (1) the employer and employee
13 contributions that would have been required if he had
14 participated in this Fund as a sheriff's law enforcement
15 employee during the period for which credit is being
16 transferred, plus interest thereon at the effective rate
17 for each year, compounded annually, from the date of
18 termination of the service for which credit is being
19 transferred to the date of payment, exceeds (2) the
20 amount actually transferred to the Fund. Such transferred
21 service shall be deemed to be service as a sheriff's law
22 enforcement employee for the purposes of Section 7-142.1.
23 (b) Creditable service - amount:
24 1. One month of creditable service shall be allowed
25 for each month for which a participating employee made
26 contributions as required under Section 7-173, or for
27 which creditable service is otherwise granted hereunder.
28 Not more than 1 month of service shall be credited and
29 counted for 1 calendar month, and not more than 1 year of
30 service shall be credited and counted for any calendar
31 year. A calendar month means a nominal month beginning
32 on the first day thereof, and a calendar year means a
33 year beginning January 1 and ending December 31.
34 2. A seasonal employee shall be given 12 months of
-20- LRB9111684LDpk
1 creditable service if he renders the number of months of
2 service normally required by the position in a 12-month
3 period and he remains in service for the entire 12-month
4 period. Otherwise a fractional year of service in the
5 number of months of service rendered shall be credited.
6 3. An intermittent employee shall be given
7 creditable service for only those months in which a
8 contribution is made under Section 7-173.
9 (c) No application for correction of credits or
10 creditable service shall be considered unless the board
11 receives an application for correction while (1) the
12 applicant is a participating employee and in active
13 employment with a participating municipality or
14 instrumentality, or (2) while the applicant is actively
15 participating in a pension fund or retirement system which is
16 a participating system under the Retirement Systems
17 Reciprocal Act. A participating employee or other applicant
18 shall not be entitled to credits or creditable service unless
19 the required employee contributions are made in a lump sum or
20 in installments made in accordance with board rule.
21 (d) Upon the granting of a retirement, surviving spouse
22 or child annuity, a death benefit or a separation benefit, on
23 account of any employee, all individual accumulated credits
24 shall thereupon terminate. Upon the withdrawal of additional
25 contributions, the credits applicable thereto shall thereupon
26 terminate. Terminated credits shall not be applied to
27 increase the benefits any remaining employee would otherwise
28 receive under this Article.
29 (Source: P.A. 90-448, eff. 8-16-97.)
30 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
31 Sec. 7-141. Retirement annuities - Conditions.
32 Retirement annuities shall be payable as hereinafter set
33 forth:
-21- LRB9111684LDpk
1 (a) A participating employee who, regardless of cause,
2 is separated from the service of all participating
3 municipalities and instrumentalities thereof and
4 participating instrumentalities shall be entitled to a
5 retirement annuity provided:
6 1. He is at least age 55, or in the case of a person who
7 is eligible to have his annuity calculated under Section
8 7-142.1, he is at least age 50;
9 2. He is (i) an employee who was employed by any
10 participating municipality or participating instrumentality
11 which had not elected to exclude persons employed in
12 positions normally requiring performance of duty for less
13 than 1000 hours per year or was employed in a position
14 normally requiring performance of duty for 600 hours or more
15 per year prior to such election by any participating
16 municipality or participating instrumentality included in and
17 subject to this Article on or before the effective date of
18 this amendatory Act of 1981 which made such election and is
19 not entitled to receive earnings for employment in a position
20 normally requiring performance of duty for 600 hours or more
21 per year for any participating municipality and
22 instrumentalities thereof and participating instrumentality;
23 or (ii) an employee who was employed only by a participating
24 municipality or participating instrumentality, or
25 participating municipalities or participating
26 instrumentalities, which have elected to exclude persons in
27 positions normally requiring performance of duty for less
28 than 1000 hours per year after the effective date of such
29 exclusion or which are included under and subject to the
30 Article after the effective date of this amendatory Act of
31 1981 and elects to exclude persons in such positions, and is
32 not entitled to receive earnings for employment in a position
33 normally requiring performance of duty for 1000 hours or more
34 per year by such a participating municipality or
-22- LRB9111684LDpk
1 participating instrumentality;
2 3. The amount of his annuity, before the application of
3 paragraph (b) of Section 7-142 is at least $10 per month;
4 4. If he first became a participating employee after
5 December 31, 1961, he has at least 8 years of service. This
6 service requirement shall not apply to any participating
7 employee, regardless of participation date, if the General
8 Assembly terminates the Fund.
9 (b) Retirement annuities shall be payable:
10 1. As provided in Section 7-119;
11 2. Except as provided in item 3, upon receipt by the
12 fund of a written application by the board. The effective
13 date may be not more than one year prior to the date of the
14 receipt by the fund of the application;
15 3. Upon attainment of age 70 1/2 if (i) the member (i)
16 has not submitted an application for the annuity, (ii) the
17 member has at least 8 years of service credit and is no
18 longer in service, and (ii) is otherwise entitled to an
19 annuity under this Article (iii) the pension amount is at
20 least $30 per month, and (iv) the Fund is able to locate the
21 member;
22 4. To the beneficiary of the deceased annuitant for the
23 unpaid amount accrued to date of death, if any.
24 (Source: P.A. 87-740.)
25 (40 ILCS 5/7-141.1)
26 Sec. 7-141.1. Early retirement incentive.
27 (a) The General Assembly finds and declares that:
28 (1) Units of local government across the State have
29 been functioning under a financial crisis.
30 (2) This financial crisis is expected to continue.
31 (3) Units of local government must depend on
32 additional sources of revenue and, when those sources are
33 not forthcoming, must establish cost-saving programs.
-23- LRB9111684LDpk
1 (4) An early retirement incentive designed
2 specifically to target highly-paid senior employees could
3 result in significant annual cost savings.
4 (5) The early retirement incentive should be made
5 available only to those units of local government that
6 determine that an early retirement incentive is in their
7 best interest.
8 (6) A unit of local government adopting a program
9 of early retirement incentives under this Section is
10 encouraged to implement personnel procedures to prohibit,
11 for at least 5 years, the rehiring (whether on payroll or
12 by independent contract) of employees who receive early
13 retirement incentives.
14 (7) A unit of local government adopting a program
15 of early retirement incentives under this Section is also
16 encouraged to replace as few of the participating
17 employees as possible and to hire replacement employees
18 for salaries totaling no more than 80% of the total
19 salaries formerly paid to the employees who participate
20 in the early retirement program.
21 It is the primary purpose of this Section to encourage
22 units of local government that can realize true cost savings,
23 or have determined that an early retirement program is in
24 their best interest, to implement an early retirement
25 program.
26 (b) Until the effective date of this amendatory Act of
27 1997, this Section does not apply to any employer that is a
28 city, village, or incorporated town, nor to the employees of
29 any such employer. Beginning on the effective date of this
30 amendatory Act of 1997, any employer under this Article,
31 including an employer that is a city, village, or
32 incorporated town, may establish an early retirement
33 incentive program for its employees under this Section. The
34 decision of a city, village, or incorporated town to consider
-24- LRB9111684LDpk
1 or establish an early retirement program is at the sole
2 discretion of that city, village, or incorporated town, and
3 nothing in this amendatory Act of 1997 limits or otherwise
4 diminishes this discretion. Nothing contained in this
5 Section shall be construed to require a city, village, or
6 incorporated town to establish an early retirement program
7 and no city, village, or incorporated town may be compelled
8 to implement such a program.
9 The benefits provided in this Section are available only
10 to members employed by a participating employer that has
11 filed with the Board of the Fund a resolution or ordinance
12 expressly providing for the creation of an early retirement
13 incentive program under this Section for its employees and
14 specifying the effective date of the early retirement
15 incentive program. Subject to the limitation in subsection
16 (h), an employer may adopt a resolution or ordinance
17 providing a program of early retirement incentives under this
18 Section at any time.
19 The resolution or ordinance shall be in substantially the
20 following form:
21 RESOLUTION (ORDINANCE) NO. ....
22 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
23 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
24 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
25 WHEREAS, Section 7-141.1 of the Illinois Pension Code
26 provides that a participating employer may elect to adopt an
27 early retirement incentive program offered by the Illinois
28 Municipal Retirement Fund by adopting a resolution or
29 ordinance; and
30 WHEREAS, The goal of adopting an early retirement program
31 is to realize a substantial savings in personnel costs by
32 offering early retirement incentives to employees who have
33 accumulated many years of service credit; and
34 WHEREAS, Implementation of the early retirement program
-25- LRB9111684LDpk
1 will provide a budgeting tool to aid in controlling payroll
2 costs; and
3 WHEREAS, The (name of governing body) has determined that
4 the adoption of an early retirement incentive program is in
5 the best interests of the (name of participating employer);
6 therefore be it
7 RESOLVED (ORDAINED) by the (name of governing body) of
8 (name of participating employer) that:
9 (1) The (name of participating employer) does hereby
10 adopt the Illinois Municipal Retirement Fund early retirement
11 incentive program as provided in Section 7-141.1 of the
12 Illinois Pension Code. The early retirement incentive
13 program shall take effect on (date).
14 (2) In order to help achieve a true cost savings, a
15 person who retires under the early retirement incentive
16 program shall lose those incentives if he or she later
17 accepts employment with any IMRF employer in a position for
18 which participation in IMRF is required or is elected by the
19 employee.
20 (3) In order to utilize an early retirement incentive as
21 a budgeting tool, the (name of participating employer) will
22 use its best efforts either to limit the number of employees
23 who replace the employees who retire under the early
24 retirement program or to limit the salaries paid to the
25 employees who replace the employees who retire under the
26 early retirement program.
27 (4) The effective date of each employee's retirement
28 under this early retirement program shall be set by (name of
29 employer) and shall be no earlier than the effective date of
30 the program and no later than one year after that effective
31 date; except that the employee may require that the
32 retirement date set by the employer be no later than the June
33 30 next occurring after the effective date of the program and
34 no earlier than the date upon which the employee qualifies
-26- LRB9111684LDpk
1 for retirement.
2 (5) To be eligible for the early retirement incentive
3 under this Section, the employee must have attained age 50
4 and have at least 20 years of creditable service by his or
5 her retirement date.
6 (6) The (clerk or secretary) shall promptly file a
7 certified copy of this resolution (ordinance) with the Board
8 of Trustees of the Illinois Municipal Retirement Fund.
9 CERTIFICATION
10 I, (name), the (clerk or secretary) of the (name of
11 participating employer) of the County of (name), State of
12 Illinois, do hereby certify that I am the keeper of the books
13 and records of the (name of employer) and that the foregoing
14 is a true and correct copy of a resolution (ordinance) duly
15 adopted by the (governing body) at a meeting duly convened
16 and held on (date).
17 SEAL
18 (Signature of clerk or secretary)
19 (c) To be eligible for the benefits provided under an
20 early retirement incentive program adopted under this
21 Section, a member must:
22 (1) be a participating employee of this Fund who,
23 on the effective date of the program, (i) is in active
24 payroll status as an employee of a participating employer
25 that has filed the required ordinance or resolution with
26 the Board, (ii) is on layoff status from such a position
27 with a right of re-employment or recall to service, (iii)
28 is on a leave of absence from such a position, or (iv) is
29 on disability but has not been receiving benefits under
30 Section 7-146 or 7-150 for a period of more than 2 years
31 from the date of application;
32 (2) have never previously received a retirement
33 annuity under this Article or under the Retirement
34 Systems Reciprocal Act using service credit established
-27- LRB9111684LDpk
1 under this Article;
2 (3) (blank); file with the Board within 60 days of
3 the effective date of the program an application
4 requesting the benefits provided in this Section;
5 (4) have at least 20 years of creditable service in
6 the Fund by the date of retirement, without the use of
7 any creditable service established under this Section;
8 (5) have attained age 50 by the date of retirement,
9 without the use of any age enhancement received under
10 this Section; and
11 (6) be eligible to receive a retirement annuity
12 under this Article by the date of retirement, for which
13 purpose the age enhancement and creditable service
14 established under this Section may be considered.
15 (d) The employer shall determine the retirement date for
16 each employee participating in the early retirement program
17 adopted under this Section. The retirement date shall be no
18 earlier than the effective date of the program and no later
19 than one year after that effective date, except that the
20 employee may require that the retirement date set by the
21 employer be no later than the June 30 next occurring after
22 the effective date of the program and no earlier than the
23 date upon which the employee qualifies for retirement. The
24 employer shall give each employee participating in the early
25 retirement program at least 30 days written notice of the
26 employee's designated retirement date, unless the employee
27 waives this notice requirement.
28 (e) An eligible person may establish up to 5 years of
29 creditable service under this Section. In addition, for each
30 period of creditable service established under this Section,
31 a person shall have his or her age at retirement deemed
32 enhanced by an equivalent period.
33 The creditable service established under this Section may
34 be used for all purposes under this Article and the
-28- LRB9111684LDpk
1 Retirement Systems Reciprocal Act, except for the computation
2 of final rate of earnings and the determination of earnings,
3 salary, or compensation under this or any other Article of
4 the Code.
5 The age enhancement established under this Section may be
6 used for all purposes under this Article (including
7 calculation of the reduction imposed under subdivision
8 (a)1b(iv) of Section 7-142), except for purposes of a
9 reversionary annuity under Section 7-145 and any
10 distributions required because of age. The age enhancement
11 established under this Section may be used in calculating a
12 proportionate annuity payable by this Fund under the
13 Retirement Systems Reciprocal Act, but shall not be used in
14 determining benefits payable under other Articles of this
15 Code under the Retirement Systems Reciprocal Act.
16 (f) For all creditable service established under this
17 Section, the member must pay to the Fund an employee
18 contribution consisting of 4.5% of the member's highest
19 annual salary rate used in the determination of the final
20 rate of earnings for retirement annuity purposes for each
21 year of creditable service granted under this Section. For
22 creditable service established under this Section by a person
23 who is a sheriff's law enforcement employee to be deemed
24 service as a sheriff's law enforcement employee, the employee
25 contribution shall be at the rate of 6.5% of highest annual
26 salary per year of creditable service granted. Contributions
27 for fractions of a year of service shall be prorated. Any
28 amounts that are disregarded in determining the final rate of
29 earnings under subdivision (d)(5) of Section 7-116 (the 125%
30 rule) shall also be disregarded in determining the required
31 contribution under this subsection (f).
32 The employee contribution shall be paid to the Fund as
33 follows: If the member is entitled to a lump sum payment for
34 accumulated vacation, sick leave, or personal leave upon
-29- LRB9111684LDpk
1 withdrawal from service, the employer shall deduct the
2 employee contribution from that lump sum and pay the deducted
3 amount directly to the Fund. If there is no such lump sum
4 payment or the required employee contribution exceeds the net
5 amount of the lump sum payment, then the remaining amount
6 due, at the option of the employee, may either be paid to the
7 Fund before the annuity commences or deducted from the
8 retirement annuity in 24 equal monthly installments.
9 (g) An annuitant who has received any age enhancement or
10 creditable service under this Section and thereafter accepts
11 employment with or enters into a personal services contract
12 with an employer under this Article thereby forfeits that age
13 enhancement and creditable service; except that this
14 restriction does not apply to service in an elective office,
15 so long as the annuitant does not participate in this Fund
16 with respect to that office. A person forfeiting early
17 retirement incentives under this subsection (i) must repay to
18 the Fund that portion of the retirement annuity already
19 received which is attributable to the early retirement
20 incentives that are being forfeited, (ii) shall not be
21 eligible to participate in any future early retirement
22 program adopted under this Section, and (iii) is entitled to
23 a refund of the employee contribution paid under subsection
24 (f). The Board shall deduct the required repayment from the
25 refund and may impose a reasonable payment schedule for
26 repaying the amount, if any, by which the required repayment
27 exceeds the refund amount.
28 (h) The additional unfunded liability accruing as a
29 result of the adoption of a program of early retirement
30 incentives under this Section by an employer shall be
31 amortized over a period of 10 years beginning on January 1 of
32 the second calendar year following the calendar year in which
33 the latest date for beginning to receive a retirement annuity
34 under the program (as determined by the employer under
-30- LRB9111684LDpk
1 subsection (d) of this Section) occurs; except that the
2 employer may provide for a shorter amortization period (of no
3 less than 5 years) by adopting an ordinance or resolution
4 specifying the length of the amortization period and
5 submitting a certified copy of the ordinance or resolution to
6 the Fund no later than 6 months after the effective date of
7 the program. An employer, at its discretion, may accelerate
8 payments to the Fund.
9 An employer may provide more than one early retirement
10 incentive program for its employees under this Section.
11 However, an employer that has provided an early retirement
12 incentive program for its employees under this Section may
13 not provide another early retirement incentive program under
14 this Section until the liability arising from the earlier
15 program has been fully paid to the Fund.
16 (Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.)
17 (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
18 Sec. 7-157. Surviving spouse annuities - marriage to
19 terminate.
20 (a) If any surviving spouse annuitant marries, before
21 reaching age 55, the annuity shall be terminated as of the
22 end of the calendar month following the month in which the
23 marriage occurs.
24 (b) Subsection (a) does not apply to the surviving
25 spouse of a sheriff's law enforcement employee who remarries
26 after December 31, 2000.
27 (Source: P.A. 81-618.)
28 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
29 Sec. 7-164. Death benefits - Amount. The amount of the
30 death benefit shall be:
31 1. Upon the death of an employee with at least one year
32 of service occurring while in an employment relationship
-31- LRB9111684LDpk
1 (including employees drawing disability benefits) with a
2 participating municipality or participating instrumentality,
3 an amount equal to the sum of:
4 (a) The employee's normal, additional and survivor
5 credits, including interest credited thereto through the end
6 of the preceding calendar year, but excluding credits and
7 interest thereon allowed for periods of disability.
8 (b) An amount equal to the employee's annual final rate
9 of earnings. An employee who dies as a result of injuries
10 connected with his duties shall be considered to have a year
11 of service for purposes of this benefit.
12 2. Upon the death of an employee with less than 1 year
13 of service occurring while in the service of any
14 participating municipality or instrumentality, an amount
15 equal to the sum of his accumulated normal, additional and
16 survivor credits on the date of death, excluding those
17 credits and interest thereon allowed during periods of
18 disability.
19 3. Upon the death of an employee who has separated from
20 service and was not entitled to a retirement annuity on the
21 date of death, an amount equal to the sum of his accumulated
22 normal, survivor and additional credits on the date of death
23 excluding those credits and interest thereon allowed during
24 periods of disability.
25 4. Upon the death of an employee in an employment
26 relationship, or an employee who has service and was entitled
27 to a retirement annuity on the date of death, when a
28 surviving spouse or child annuity is awarded, $3,000.
29 5. Upon the death of an employee, who has separated from
30 service and was entitled to a retirement annuity on the date
31 of death, and no surviving spouse or child annuity is
32 awarded, $3,000 plus an amount equal to his accumulated
33 normal, survivor and additional credits on the date of death,
34 excluding those credits and interest earned thereon allowed
-32- LRB9111684LDpk
1 during periods of disability.
2 6. Upon the death of an employee annuitant, $3,000 and,
3 unless a surviving spouse, child or reversionary annuity is
4 payable, the sum of (i) the excess of the normal and survivor
5 credits, excluding those allowed during periods of
6 disability, which the annuitant had as of the effective date
7 of his annuity over the total annuities paid pursuant to
8 paragraph (a) 1 of Section 7-142 to the date of death, plus
9 (ii) the excess of the additional credits, excluding any such
10 credits used to create a reversionary annuity, used to
11 provide the annuity granted pursuant to paragraph (a) 2 of
12 Section 7-142 over the total annuity payments made pursuant
13 thereto to the time of death.
14 7. Upon the death of an annuitant receiving a
15 reversionary annuity or of a person designated to receive a
16 reversionary annuity prior to the receipt of such annuity the
17 sum of the additional credits of the person creating the
18 reversionary annuity as of the effective date of his own
19 retirement annuity over the reversionary annuity payments, if
20 any, made prior to the date of death of such annuitant or
21 person designated to receive the reversionary annuity.
22 8. Upon the death of an annuitant receiving a
23 beneficiary annuity which was effective before January 1,
24 1986, the excess of the death benefit which was used to
25 provide the annuity, over the sum of all annuity payments
26 made to the beneficiary. Upon the death of an annuitant
27 receiving a beneficiary annuity effective January 1, 1986 or
28 thereafter, the sum of (i) the excess of the normal and
29 survivor credits, excluding those allowed during periods of
30 disability, which the annuitant had as of the effective date
31 of his annuity over the total annuities paid pursuant to
32 paragraph (c) of Section 7-165, to date of death, plus (ii)
33 the excess of the additional credits, excluding any such
34 credits used to create a reversionary annuity, used to
-33- LRB9111684LDpk
1 provide the annuity granted pursuant to paragraph (d) of
2 Section 7-165 over the total annuity payments made pursuant
3 thereto to the time of death.
4 9. Upon the marriage prior to reaching age 55 (except
5 for the surviving spouse of a sheriff's law enforcement
6 employee who remarries after December 31, 2000) or death of a
7 person receiving a surviving spouse annuity, unless a child
8 annuity is payable, the sum of (i) the excess of the normal
9 and survivor credits, excluding those credits and interest
10 thereon allowed during periods of disability, attributable to
11 the employee at the effective date of the annuity or date of
12 death, whichever first occurred, over the total of all
13 annuity payments attributable to paragraph (a) 1 of Section
14 7-142 made to the employee or surviving spouse plus (ii) the
15 excess of the additional credits, excluding any such credits
16 used to create a reversionary annuity or used to provide the
17 annuity attributable to paragraph (a) 2 of Section 7-142 over
18 the total of such payments.
19 10. Upon the marriage, death or attainment of age 18 of
20 a child receiving a child annuity, if no other child
21 annuities are payable, the sum of (i) the excess of the
22 normal and survivor credits excluding those credits and
23 interest thereon allowed during periods of disability, of the
24 employee at the effective date of the annuity or date of
25 death, whichever first occurred, over the total annuity
26 payments attributable to paragraph (a) 1 of Section 7-142
27 made to the employee, surviving spouse and children plus (ii)
28 the excess of the additional credits, excluding any such
29 credits used to create a reversionary annuity, used to
30 provide the annuity attributable to paragraph (a) 2 of
31 Section 7-142 over the total annuity payments made to the
32 employee, surviving spouse and children, pursuant thereto.
33 11. Upon the death of the participating employee whose
34 annuity was suspended upon his return to employment:
-34- LRB9111684LDpk
1 a. If a surviving spouse or child annuity is awarded,
2 $3,000;
3 b. If no surviving spouse or child annuity is awarded
4 and he had less than one year's service upon return, $3,000
5 plus the excess of the normal, survivor and additional
6 credits, including interest thereon, but excluding those
7 allowed during a period of disability, at the effective date
8 of the suspended annuity, plus those allowed after his
9 return, over all annuity payments made to the employee;
10 c. If no surviving spouse or child annuity is awarded
11 and he has one year or more of service upon return, the
12 higher of (a) the payment under subparagraph b of this
13 paragraph or (b) the payment under paragraph 1 of this
14 Section, taking into consideration only the service and
15 credits allowed after his return, plus the excess of the
16 normal, survivor and additional credits, including interest
17 thereon, excluding those allowed during periods of
18 disability, at the effective date of his suspended annuity
19 over all annuity payments made to the employee.
20 12. The $3,000 death benefit provided in paragraphs 4
21 and 6 shall not be payable to beneficiaries of persons who
22 terminated service prior to September 8, 1971, unless the
23 payment or agreement for payment provided by Section 7-144.2
24 of this Article is made prior to the date of death.
25 13. The increase in certain death benefits from $1,000
26 to $3,000 provided by this amendatory Act of 1987 shall apply
27 only to deaths occurring on or after January 1, 1988.
28 (Source: P.A. 85-941.)
29 (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
30 Sec. 7-166. Separation benefits - Eligibility.
31 Separation benefits shall be payable as hereinafter set
32 forth:
33 1. Upon separation from the service of all participating
-35- LRB9111684LDpk
1 municipalities and instrumentalities thereof and
2 participating instrumentalities, any participating employee
3 upon the termination of his participation as a participating
4 employee who, on the date of application for such benefit, is
5 not entitled to a retirement annuity shall be entitled to a
6 separation benefit.;
7 2. Upon separation from the service of all participating
8 municipalities and instrumentalities thereof and
9 participating instrumentalities, any participating employee
10 upon the termination of his participation as a participating
11 employee who, on the date of application for such benefit, is
12 entitled to a retirement annuity of less than $30 per month
13 for life may elect to take a separation benefit in lieu of
14 the retirement annuity.
15 (Source: Laws 1963, p. 161.)
16 (40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
17 Sec. 7-167. Separation benefits - Payment. Separation
18 benefits shall be paid in the form of a single cash sum as
19 soon as practicable after receipt by the board of:
20 1. a written application by the employee for such
21 benefits; and
22 2. written notice from the last employing
23 participating municipality or instrumentality thereof or
24 participating instrumentality, certifying that such
25 participating employee has separated from service
26 terminated his participation.
27 (Source: Laws 1963, p. 161.)
28 (40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
29 Sec. 7-184. To determine prior service.
30 To determine the length of prior service from such
31 information as is available. Any such determination shall be
32 conclusive as to any such period of service, unless within 2
-36- LRB9111684LDpk
1 years of the issuance of the first individual statement to an
2 employee, the board reconsiders the case and changes the
3 determination.
4 The change to this Section made by this amendatory Act of
5 the 91st General Assembly applies without regard to whether
6 the individual is in service on or after the effective date
7 of this amendatory Act.
8 (Source: Laws 1963, p. 161.)
9 (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
10 Sec. 7-211. Authorizations.
11 (a) Each participating municipality and instrumentality
12 thereof and each participating instrumentality shall:
13 1. Deduct all normal and additional contributions
14 and contributions for federal Social Security taxes as
15 required by the Social Security Enabling Act from each
16 payment of earnings payable to each participating
17 employee who is entitled to any earnings from such
18 municipality or instrumentality thereof or participating
19 instrumentality, and to remit all such contributions
20 immediately to the board; and
21 2. Pay to the board contributions required by this
22 Article.
23 (b) Each participating employee shall, by virtue of the
24 payment of contributions to this fund, receive a vested
25 interest in the annuities and benefits provided in this
26 Article and in consideration of such vested interest shall be
27 deemed to have agreed and authorized the deduction from
28 earnings of all contributions payable to this fund in
29 accordance with this Article.
30 (c) Payment of earnings less the amounts of
31 contributions provided in this Article and in the Social
32 Security Enabling Act shall be a full and complete discharge
33 of all claims for payment for services rendered by any
-37- LRB9111684LDpk
1 employee during the period covered by any such payment.
2 (d) Any covered annuitant may authorize the withholding
3 of all or a portion of his or her annuity, for the payment of
4 premiums on group accident and health insurance provided
5 pursuant to Section 7-199.1. The annuitant may revoke this
6 authorization at any time.
7 (Source: P.A. 84-812.)
8 (40 ILCS 5/7-224 new)
9 Section 7-224. Section 415 limitations. Notwithstanding
10 any other provisions of this Article, the combined benefits
11 and contributions provided to any participating employee by
12 all plans of any participating municipality and its
13 instrumentalities and any participating instrumentality shall
14 not exceed the limitations specified in Section 415(b), (c),
15 and (e) of the Internal Revenue Code of 1986. If a
16 participating employee's benefits or contributions under this
17 Article, combined with those under any other plan of the
18 participating municipality and its instrumentalities or
19 participating instrumentality, would otherwise violate those
20 limitations, the benefits and contributions under the other
21 plan shall be reduced, rather than the benefits and
22 contributions provided under this Article. To the extent
23 that the other plan fails to limit such benefits and
24 contributions, that plan shall be disqualified.
25 Section 98. The State Mandates Act is amended by adding
26 Section 8.24 as follows:
27 (30 ILCS 805/8.24 new)
28 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
29 and 8 of this Act, no reimbursement by the State is required
30 for the implementation of any mandate created by this
31 amendatory Act of the 91st General Assembly.
-38- LRB9111684LDpk
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.