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91_SB0302
LRB9101900EGpr
1 AN ACT in relation to public employee benefits, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Section 6.10 as follows:
7 (5 ILCS 375/6.10)
8 Sec. 6.10. Contributions to the Community College
9 Health Insurance Security Fund.
10 (a) Beginning January 1, 1999, every active contributor
11 of the State Universities Retirement System (established
12 under Article 15 of the Illinois Pension Code) who (1) is a
13 full-time employee of a community college district (other
14 than a community college district subject to Article VII of
15 the Public Community College Act) or an association of
16 community college boards and (2) is not an employee as
17 defined in Section 3 of this Act shall make contributions
18 toward the cost of community college annuitant and survivor
19 health benefits at the rate of 0.50% of salary.
20 These contributions shall be deducted by the employer and
21 paid to the State Universities Retirement System as service
22 agent for the Department of Central Management Services. The
23 System may use the same processes for collecting the
24 contributions required by this subsection that it uses to
25 collect the contributions received from those employees under
26 Section 15-157 of the Illinois Pension Code. An employer may
27 agree to pick up or pay the contributions required under this
28 subsection on behalf of the employee; such contributions
29 shall be deemed to have been paid by the employee.
30 A person required to make contributions under this
31 subsection (a) who purchases optional service credit under
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1 Article 15 of the Illinois Pension Code must also pay the
2 contribution required under this subsection (a) with respect
3 to that optional service credit. This contribution must be
4 received by the System before that optional service credit is
5 granted.
6 The State Universities Retirement System shall promptly
7 deposit all moneys collected under this subsection (a) into
8 the Community College Health Insurance Security Fund created
9 in Section 6.9 of this Act. The moneys collected under this
10 Section shall be used only for the purposes authorized in
11 Section 6.9 of this Act and shall not be considered to be
12 assets of the State Universities Retirement System.
13 Contributions made under this Section are not transferable to
14 other pension funds or retirement systems and are not
15 refundable upon termination of service.
16 (b) Beginning January 1, 1999, every community college
17 district (other than a community college district subject to
18 Article VII of the Public Community College Act) or
19 association of community college boards that is an employer
20 under the State Universities Retirement System shall
21 contribute toward the cost of the community college health
22 benefits provided under Section 6.9 of this Act an amount
23 equal to 0.50% of the salary paid to its full-time employees
24 who participate in the State Universities Retirement System
25 and are not members as defined in Section 3 of this Act.
26 These contributions shall be paid by the employer to the
27 State Universities Retirement System as service agent for the
28 Department of Central Management Services. The System may
29 use the same processes for collecting the contributions
30 required by this subsection that it uses to collect the
31 contributions received from those employers under Section
32 15-155 of the Illinois Pension Code.
33 The State Universities Retirement System shall promptly
34 deposit all moneys collected under this subsection (b) into
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1 the Community College Health Insurance Security Fund created
2 in Section 6.9 of this Act. The moneys collected under this
3 Section shall be used only for the purposes authorized in
4 Section 6.9 of this Act and shall not be considered to be
5 assets of the State Universities Retirement System.
6 Contributions made under this Section are not transferable to
7 other pension funds or retirement systems and are not
8 refundable upon termination of service.
9 (c) On or before November 15 of each year, the Board of
10 Trustees of the State Universities Retirement System shall
11 certify to the Governor, the Director of Central Management
12 Services, and the State Comptroller its estimate of the total
13 amount of contributions to be paid under subsection (a) of
14 this Section for the next fiscal year. The certification
15 shall include a detailed explanation of the methods and
16 information that the Board relied upon in preparing its
17 estimate. As soon as possible after the effective date of
18 this Section, the Board shall submit its estimate for fiscal
19 year 1999.
20 (d) Beginning in fiscal year 1999, on the first day of
21 each month, or as soon thereafter as may be practical, the
22 State Treasurer and the State Comptroller shall transfer from
23 the General Revenue Fund to the Community College Health
24 Insurance Security Fund 1/12 of the annual amount
25 appropriated for that fiscal year to the State Comptroller
26 for deposit into the Community College Health Insurance
27 Security Fund under Section 1.4 of the State Pension Funds
28 Continuing Appropriation Act.
29 (e) Except where otherwise specified in this Section,
30 the definitions that apply to Article 15 of the Illinois
31 Pension Code apply to this Section.
32 (Source: P.A. 90-497, eff. 8-18-97.)
33 Section 10. The Illinois Pension Code is amended by
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1 changing Sections 15-107, 15-112, 15-134.5, 15-136.4, 15-139,
2 15-140, 15-141, 15-142, 15-144, 15-145, and 15-154 as
3 follows:
4 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
5 Sec. 15-107. Employee.
6 (a) "Employee" means any member of the educational,
7 administrative, secretarial, clerical, mechanical, labor or
8 other staff of an employer whose employment is permanent and
9 continuous or who is employed in a position in which services
10 are expected to be rendered on a continuous basis for at
11 least 4 months or one academic term, whichever is less, who
12 (A) receives payment for personal services on a warrant
13 issued pursuant to a payroll voucher certified by an employer
14 and drawn by the State Comptroller upon the State Treasurer
15 or by an employer upon trust, federal or other funds, or (B)
16 is on a leave of absence without pay. Employment which is
17 irregular, intermittent or temporary shall not be considered
18 continuous for purposes of this paragraph.
19 However, a person is not an "employee" if he or she:
20 (1) is a student enrolled in and regularly
21 attending classes in a college or university which is an
22 employer, and is employed on a temporary basis at less
23 than full time;
24 (2) is currently receiving a retirement annuity or
25 a disability retirement annuity under Section 15-153.2
26 from this System;
27 (3) is on a military leave of absence;
28 (4) is eligible to participate in the Federal Civil
29 Service Retirement System and is currently making
30 contributions to that system based upon earnings paid by
31 an employer;
32 (5) is on leave of absence without pay for more
33 than 60 days immediately following termination of
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1 disability benefits under this Article;
2 (6) is hired after June 30, 1979 as a public
3 service employment program participant under the Federal
4 Comprehensive Employment and Training Act and receives
5 earnings in whole or in part from funds provided under
6 that Act;
7 (7) is employed on or after July 1, 1991 to perform
8 services that are excluded by subdivision (a)(7)(f) or
9 (a)(19) of Section 210 of the federal Social Security Act
10 from the definition of employment given in that Section
11 (42 U.S.C. 410); or
12 (8) participates in an optional program for
13 part-time workers under Section 15-158.1.
14 (b) Any employer may, by filing a written notice with
15 the board, exclude from the definition of "employee" all
16 persons employed pursuant to a federally funded contract
17 entered into after July 1, 1982 with a federal military
18 department in a program providing training in military
19 courses to federal military personnel on a military site
20 owned by the United States Government, if this exclusion is
21 not prohibited by the federally funded contract or federal
22 laws or rules governing the administration of the contract.
23 (c) Any person appointed by the Governor under the Civil
24 Administrative Code of the State is an employee, if he or she
25 is a participant in this system on the effective date of the
26 appointment.
27 (d) A participant on lay-off status under civil service
28 rules is considered an employee for not more than 120 days
29 from the date of the lay-off.
30 (e) A participant is considered an employee during (1)
31 the first 60 days of disability leave, (2) the period, not to
32 exceed one year, in which his or her eligibility for
33 disability benefits is being considered by the board or
34 reviewed by the courts, and (3) the period he or she receives
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1 disability benefits under the provisions of Section 15-152,
2 workers' compensation or occupational disease benefits, or
3 disability income under an insurance contract financed wholly
4 or partially by the employer.
5 (f) Absences without pay, other than formal leaves of
6 absence, of less than 30 calendar days, are not considered as
7 an interruption of a person's status as an employee. If such
8 absences during any period of 12 months exceed 30 work days,
9 the employee status of the person is considered as
10 interrupted as of the 31st work day.
11 (g) A staff member whose employment contract requires
12 services during an academic term is to be considered an
13 employee during the summer and other vacation periods, unless
14 he or she declines an employment contract for the succeeding
15 academic term or his or her employment status is otherwise
16 terminated, and he or she receives no earnings during these
17 periods.
18 (h) An individual who was a participating employee
19 employed in the fire department of the University of
20 Illinois's Champaign-Urbana campus immediately prior to the
21 elimination of that fire department and who immediately after
22 the elimination of that fire department became employed by
23 the fire department of the City of Urbana or the City of
24 Champaign shall continue to be considered as an employee for
25 purposes of this Article for so long as the individual
26 remains employed as a firefighter by the City of Urbana or
27 the City of Champaign. The individual shall cease to be
28 considered an employee under this subsection (h) upon the
29 first termination of the individual's employment as a
30 firefighter by the City of Urbana or the City of Champaign.
31 (i) An individual who is employed on a full-time basis
32 as an officer or employee of a statewide teacher organization
33 that serves System participants or an officer of a national
34 teacher organization that serves System participants may
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1 participate in the System and shall be deemed an employee,
2 provided that (1) the individual has previously earned
3 creditable service under this Article, (2) the individual
4 files with the System an irrevocable election to become a
5 participant, and (3) the individual does not receive credit
6 for that employment under any other Article of this Code. An
7 employee under this subsection (i) is responsible for paying
8 to the System both (A) employee contributions based on the
9 actual compensation received for service with the teacher
10 organization and (B) employer contributions equal to the
11 normal costs (as defined in Section 15-155) resulting from
12 that service; all or any part of these contributions may be
13 paid on the employee's behalf or picked up for tax purposes
14 (if authorized under federal law) by the teacher
15 organization.
16 A person who is an employee as defined in this subsection
17 (i) may establish service credit for similar employment prior
18 to becoming an employee under this subsection by paying to
19 the System for that employment the contributions specified in
20 this subsection, plus interest at the effective rate from the
21 date of service to the date of payment. However, credit
22 shall not be granted under this subsection for any such prior
23 employment for which the applicant received credit under any
24 other provision of this Code, or during which the applicant
25 was on a leave of absence under Section 15-113.2.
26 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
27 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
28 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
29 Sec. 15-112. Final rate of earnings. "Final rate of
30 earnings": For an employee who is paid on an hourly basis or
31 who receives an annual salary in installments during 12
32 months of each academic year, the average annual earnings
33 during the 48 consecutive calendar month period ending with
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1 the last day of final termination of employment or the 4
2 consecutive academic years of service in which the employee's
3 earnings were the highest, whichever is greater. For any
4 other employee, the average annual earnings during the 4
5 consecutive academic years of service in which his or her
6 earnings were the highest. For an employee with less than 48
7 months or 4 consecutive academic years of service, the
8 average earnings during his or her entire period of service.
9 The earnings of an employee with more than 36 months of
10 service prior to the date of becoming a participant are, for
11 such period, considered equal to the average earnings during
12 the last 36 months of such service. For an employee on leave
13 of absence with pay, or on leave of absence without pay who
14 makes contributions during such leave, earnings are assumed
15 to be equal to the basic compensation on the date the leave
16 began. For an employee on disability leave, earnings are
17 assumed to be equal to the basic compensation on the date
18 disability occurs or the average earnings during the 24
19 months immediately preceding the month in which disability
20 occurs, whichever is greater.
21 For a participant who retires on or after the effective
22 date of this amendatory Act of 1997 with at least 20 years of
23 service as a firefighter or police officer under this
24 Article, the final rate of earnings shall be the annual rate
25 of earnings received by the participant on his or her last
26 day as a firefighter or police officer under this Article, if
27 that is greater than the final rate of earnings as calculated
28 under the other provisions of this Section.
29 If a participant is an employee for at least 6 months
30 during the academic year in which his or her employment is
31 terminated, the annual final rate of earnings shall be 25% of
32 the sum of (1) the annual basic compensation for that year,
33 and (2) the amount earned during the 36 months immediately
34 preceding that year, if this is greater than the final rate
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1 of earnings as calculated under the other provisions of this
2 Section.
3 In the determination of the final rate of earnings for an
4 employee, that part of an employee's earnings for any
5 academic year beginning after June 30, 1997, which exceeds
6 the employee's earnings with that employer for the preceding
7 year by more than 20 percent shall be excluded; in the event
8 that an employee has more than one employer this limitation
9 shall be calculated separately for the earnings with each
10 employer. In making such calculation, only the basic
11 compensation of employees shall be considered, without regard
12 to vacation or overtime or to contracts for summer
13 employment.
14 The following are not considered as earnings in
15 determining final rate of earnings: severance or separation
16 pay, retirement pay, payment in lieu of unused sick leave and
17 payments from an employer for the period used in determining
18 final rate of earnings for any purpose other than services
19 rendered, leave of absence or vacation granted during that
20 period, and vacation of up to 56 work days allowed upon
21 termination of employment under a vacation policy of an
22 employer which was in effect on or before January 1, 1977.
23 Intermittent periods of service shall be considered as
24 consecutive in determining final rate of earnings.
25 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
26 (40 ILCS 5/15-134.5)
27 Sec. 15-134.5. Retirement Program Elections.
28 (a) All participating employees are participants under
29 the traditional benefit package prior to January 1, 1998.
30 Effective as of the date that an employer elects, as
31 described in Section 15-158.2, to offer to its employees the
32 portable benefit package and the self-managed plan as
33 alternatives to the traditional benefit package, each of that
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1 employer's eligible employees (as defined in subsection (b))
2 shall be given the choice to elect which retirement program
3 he or she wishes to participate in with respect to all
4 periods of covered employment occurring on and after the
5 effective date of the employee's election. The retirement
6 program election made by an eligible employee must be made in
7 writing, in the manner prescribed by the System, and within
8 the time period described in subsection (d). The employee
9 election authorized by this Section is a one-time,
10 irrevocable election. If an employee terminates employment
11 after making the election provided under this subsection (a),
12 then upon his or her subsequent re-employment with an
13 employer the original election shall automatically apply to
14 him or her, provided that the employer is then a
15 participating employer as described in Section 15-158.2.
16 (b) "Eligible employee" means an employee (as defined in
17 Section 15-107) who is either a currently eligible employee
18 or a newly eligible employee. For purposes of this Section,
19 a "currently eligible employee" is an employee who is
20 employed by an employer on the effective date on which the
21 employer offers to its employees the portable benefit package
22 and the self-managed plan as alternatives to the traditional
23 benefit package. A "newly eligible employee" is an employee
24 who first becomes employed by an employer after the effective
25 date on which the employer offers its employees the portable
26 benefit package and the self-managed plan as alternatives to
27 the traditional benefit package.
28 (c) An eligible employee who at the time he or she is
29 first eligible to make the election described in subsection
30 (a) does not have sufficient age and service to qualify for a
31 retirement annuity under Section 15-135 may elect to
32 participate in the traditional benefit package, the portable
33 benefit package, or the self-managed plan. An eligible
34 employee who has sufficient age and service to qualify for a
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1 retirement annuity under Section 15-135 at the time he or she
2 is first eligible to make the election described in
3 subsection (a) may elect to participate in the traditional
4 benefit package or the portable benefit package, but may not
5 elect to participate in the self-managed plan.
6 (d) A currently eligible employee must make this
7 election within one year after the effective date of the
8 employer's adoption of the self-managed plan. A newly
9 eligible employee must make this election within 60 days
10 after the System, directly or through the employer, provides
11 an election form and informational materials to the becoming
12 an eligible employee. The employer shall not remit
13 contributions to the system on behalf of a newly eligible
14 employee until the earlier of the expiration of the
15 employee's 60-day election period or the date on which the
16 employee submits a properly completed election to the
17 employer or to the system.
18 (e) If an eligible employee elects the portable benefit
19 package, that election shall not become effective until the
20 one-year anniversary of the date on which the election is
21 filed with the system, provided the employee remains
22 continuously employed by the employer throughout the one-year
23 waiting period, and any benefits payable to or on account of
24 the employee before such one-year waiting period has ended
25 shall not be determined under the provisions applicable to
26 the portable benefit package but shall instead be determined
27 in accordance with the traditional benefit package. If an
28 eligible employee who has elected the portable benefit
29 package terminates employment covered by the system before
30 the one-year waiting period has ended, then no benefits shall
31 be determined under the portable benefit package provisions
32 while he or she is inactive in the system and upon
33 re-employment with an employer covered by the system he or
34 she shall begin a new one-year waiting period before the
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1 provisions of the portable benefit package become effective.
2 An employee who works at least one academic term during a
3 calendar year, and for whom no termination report is received
4 from the employer, shall be considered continuously employed
5 for purposes of this subsection, unless he or she is not
6 offered, or declines, an employment contract for an academic
7 term within that calendar year.
8 (f) An eligible employee shall be provided with written
9 information prepared or prescribed by the system which
10 describes the employee's retirement program choices. The
11 eligible employee shall be offered an opportunity to receive
12 counseling from the system prior to making his or her
13 election. This counseling may consist of videotaped
14 materials, group presentations, individual consultation with
15 an employee or authorized representative of the system in
16 person or by telephone or other electronic means, or any
17 combination of these methods.
18 (Source: P.A. 90-766, eff. 8-14-98.)
19 (40 ILCS 5/15-136.4)
20 Sec. 15-136.4. Retirement and Survivor Benefits Under
21 Portable Benefit Package.
22 (a) This Section 15-136.4 describes the form of annuity
23 and survivor benefits available to a participant who has
24 elected the portable benefit package and has completed the
25 one-year waiting period required under subsection (e) of
26 Section 15-134.5. For purposes of this Section, the term
27 "eligible spouse" means the husband or wife of a participant
28 to whom the participant is married on the date the
29 participant's retirement annuity begins, provided however,
30 that if the participant should die prior to the commencement
31 of retirement annuity benefits, then "eligible spouse" means
32 the husband or wife, if any, to whom the participant was
33 married throughout the one-year period preceding the date of
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1 his or her death.
2 (b) This subsection (b) describes the normal form of
3 annuity payable to a participant subject to this Section
4 15-136.4. If the participant is unmarried on the date his or
5 her annuity payments commence, then the annuity payments
6 shall be made in the form of a single-life annuity as
7 described in Section 15-118. If the participant is married
8 on the date his or her annuity payments commence, then the
9 annuity payments shall be paid in the form of a qualified
10 joint and survivor annuity that is the actuarial equivalent
11 of the single-life annuity. Under the "qualified joint and
12 survivor annuity", a reduced amount shall be paid to the
13 participant for his or her lifetime and his or her eligible
14 spouse, if surviving at the participant's death, shall be
15 entitled to receive thereafter a lifetime survivorship
16 annuity in a monthly amount equal to 50% of the reduced
17 monthly amount that was payable to the participant. The last
18 payment of a qualified joint and survivor annuity shall be
19 made as of the first day of the month in which the death of
20 the survivor occurs.
21 (c) Instead of the normal form of annuity that would be
22 paid under subsection (b), a participant may elect in writing
23 within the 90-day period prior to the date his or her annuity
24 payments commence to waive the normal form of annuity payment
25 and receive an optional form of annuity as described in
26 subsection (h). If the participant is married and elects an
27 optional form of annuity under subsection (h) other than a
28 joint and survivor annuity with the eligible spouse
29 designated as the contingent annuitant, then such election
30 shall require the consent of his or her eligible spouse in
31 the manner described in subsection (d). At any time during
32 the 90-day period preceding the date the participant's
33 annuity commences, the participant may revoke the optional
34 form elected under this subsection (c) and reinstate coverage
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1 under the qualified joint and survivor annuity without the
2 spouse's consent, but an election to revoke the optional form
3 elected and elect a new optional form or designate a
4 different contingent annuitant shall not be effective without
5 the eligible spouse's consent.
6 (d) The eligible spouse's consent to any election made
7 pursuant to this Section that requires the eligible spouse's
8 consent shall be in writing and shall acknowledge the effect
9 of the consent. In addition, the eligible spouse's signature
10 on the written consent must be witnessed by a notary public.
11 The eligible spouse's consent need not be obtained if the
12 system is satisfied that there is no eligible spouse, that
13 the eligible spouse cannot be located, or because of any
14 other relevant circumstances. An eligible spouse's consent
15 under this Section is valid only with respect to the
16 specified optional form of payment and, if applicable,
17 contingent annuitant designated by the participant. If the
18 optional form of payment or the contingent annuitant is
19 subsequently changed (other than by a revocation of the
20 optional form and reinstatement of the qualified joint and
21 survivor annuity), a new consent by the eligible spouse is
22 required. The eligible spouse's consent to an election made
23 by a participant pursuant to this Section, once made, may not
24 be revoked by the eligible spouse.
25 (e) Within a reasonable period of time preceding the
26 date a participant's annuity commences, a participant shall
27 be supplied with a written explanation of (1) the terms and
28 conditions of the normal form single-life annuity and
29 qualified joint and survivor annuity, (2) the participant's
30 right to elect a single-life annuity or an optional form of
31 payment under subsection (h) subject to his or her eligible
32 spouse's consent, if applicable, and (3) the participant's
33 right to reinstate coverage under the qualified joint and
34 survivor annuity prior to his or her annuity commencement
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1 date by revoking an election of an optional form of benefit
2 under subsection (h).
3 (f) If a married participant with at least 1.5 years 5
4 years of service dies prior to commencing retirement annuity
5 payments and prior to taking a refund under Section 15-154,
6 his or her eligible spouse is entitled to receive a
7 pre-retirement survivor annuity, if there is not then in
8 effect a waiver of the pre-retirement survivor annuity. The
9 pre-retirement survivor annuity payable under this subsection
10 shall be a monthly annuity payable for the eligible spouse's
11 life, commencing as of the beginning of the month next
12 following the later of the date of the participant's death or
13 the date the participant would have first met the eligibility
14 requirements for retirement, and continuing through the
15 beginning of the month in which the death of the eligible
16 spouse occurs. The monthly amount payable to the spouse
17 under the pre-retirement survivor annuity shall be equal to
18 the monthly amount that would be payable as a survivor
19 annuity under the qualified joint and survivor annuity
20 described in subsection (b) if: (1) in the case of a
21 participant who dies on or after the date on which the
22 participant has met the eligibility requirements for
23 retirement, the participant had retired with an immediate
24 qualified joint and survivor annuity on the day before the
25 participant's date of death; or (2) in the case of a
26 participant who dies before the earliest date on which the
27 participant would have met the eligibility requirements for
28 retirement age, the participant had separated from service on
29 the date of death, survived to the earliest retirement age
30 based on service prior to his or her death, retired with an
31 immediate qualified joint and survivor annuity at the
32 earliest retirement age, and died on the day after the day on
33 which the participant would have attained the earliest
34 retirement age.
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1 (g) A married participant who has not retired may elect
2 at any time to waive the pre-retirement survivor annuity
3 described in subsection (f). Any such election shall require
4 the consent of the participant's eligible spouse in the
5 manner described in subsection (e). A waiver of the
6 pre-retirement survivor annuity shall increase the lump sum
7 death benefit payable under subsection (b) of Section 15-141.
8 Prior to electing any waiver of the pre-retirement survivor
9 annuity, the participant shall be provided with a written
10 explanation of (1) the terms and conditions of the
11 pre-retirement survivor annuity and the death benefits
12 payable from the system both with and without the
13 pre-retirement survivor annuity, (2) the participant's right
14 to elect a waiver of the pre-retirement survivor annuity
15 coverage subject to his or her spouse's consent, and (3) the
16 participant's right to reinstate pre-retirement survivor
17 annuity coverage at any time by revoking a prior waiver of
18 such coverage.
19 (h) By filing a timely election with the system, a
20 participant who will be eligible to receive a retirement
21 annuity under this Section may waive the normal form of
22 annuity payment described in subsection (b), subject to
23 obtaining the consent of his or her eligible spouse, if
24 applicable, and elect to receive any one of the following
25 optional annuity forms:
26 (1) Joint and Survivor Annuity Options: The
27 participant may elect to receive a reduced annuity
28 payable for his or her life and to have a lifetime
29 survivorship annuity in a monthly amount equal to 50%,
30 75%, or 100% (as elected by the participant) of that
31 reduced monthly amount, to be paid after the
32 participant's death to his or her contingent annuitant,
33 if the contingent annuitant is alive at the time of the
34 participant's death.
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1 (2) Single-Life Annuity Option (optional for
2 married participants). The participant may elect to
3 receive a single-life annuity payable for his or her life
4 only.
5 All optional forms shall be in an amount that is the
6 actuarial equivalent of the single-life annuity.
7 For the purposes of this Section, the term "contingent
8 annuitant" means the beneficiary who is designated by a
9 participant at the time the participant elects a joint and
10 survivor annuity to receive the lifetime survivorship annuity
11 in the event the beneficiary survives the participant at the
12 participant's death.
13 (i) Under no circumstances may an option be elected,
14 changed, or revoked after the date the participant's
15 retirement annuity commences.
16 (j) An election made pursuant to subsection (h) shall
17 become inoperative if the participant or the contingent
18 annuitant dies before the date the participant's annuity
19 payments commence, or if the eligible spouse's consent is
20 required and not given.
21 (k) For purposes of applying the provisions of Section
22 20-123 of this Code, the portable benefit package shall be
23 treated as if it were provided by a participating system that
24 has no survivor's annuity benefit.
25 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
26 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
27 Sec. 15-139. Retirement annuities; cancellation;
28 suspended during employment.
29 (a) If an annuitant returns to employment for an
30 employer within 60 days after the beginning of the retirement
31 annuity payment period, the retirement annuity shall be
32 cancelled, and the annuitant shall refund to the System the
33 total amount of the retirement annuity payments which he or
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1 she received. If the retirement annuity is cancelled, the
2 participant shall continue to participate in the System.
3 (b) If an annuitant retires prior to age 60 and receives
4 or becomes entitled to receive during any month compensation
5 in excess of the monthly retirement annuity (including any
6 automatic annual increases) for services performed after the
7 date of retirement for any employer under this System, the
8 State Employees' Retirement System of Illinois, or the
9 Teachers' Retirement System of the State of Illinois, that
10 portion of the monthly retirement annuity provided by
11 employer contributions shall not be payable.
12 If an annuitant retires at age 60 or over and receives or
13 becomes entitled to receive during any academic year
14 compensation in excess of the difference between his or her
15 highest annual earnings prior to retirement and his or her
16 annual retirement annuity computed under Rule 1, Rule 2, Rule
17 3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
18 services performed after the date of retirement for any
19 employer under this System, that portion of the monthly
20 retirement annuity provided by employer contributions shall
21 be reduced by an amount equal to the compensation that
22 exceeds such difference.
23 However, any remuneration received for serving as a
24 member of the Illinois Educational Labor Relations Board
25 shall be excluded from "compensation" for the purposes of
26 this subsection (b), and serving as a member of the Illinois
27 Educational Labor Relations Board shall not be deemed to be a
28 return to employment for the purposes of this Section. This
29 provision applies without regard to whether service was
30 terminated prior to the effective date of this amendatory Act
31 of 1991.
32 (c) If an employer certifies that an annuitant has been
33 reemployed on a permanent and continuous basis or in a
34 position in which the annuitant is expected to serve for at
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1 least 9 months, the annuitant shall resume his or her status
2 as a participating employee and shall be entitled to all
3 rights applicable to participating employees upon filing with
4 the board an election to forego all annuity payments during
5 the period of reemployment. Upon subsequent retirement, the
6 retirement annuity shall consist of the annuity which was
7 terminated by the reemployment, plus the additional
8 retirement annuity based upon service granted during the
9 period of reemployment, but the combined retirement annuity
10 shall not exceed the maximum annuity applicable on the date
11 of the last retirement.
12 The total service and earnings credited before and after
13 the initial date of retirement shall be considered in
14 determining eligibility of the employee or the employee's
15 beneficiary to benefits under this Article, and in
16 calculating final rate of earnings.
17 In determining the death benefit payable to a beneficiary
18 of an annuitant who again becomes a participating employee
19 under this Section, accumulated normal and additional
20 contributions shall be considered as the sum of the
21 accumulated normal and additional contributions at the date
22 of initial retirement and the accumulated normal and
23 additional contributions credited after that date, less the
24 sum of the annuity payments received by the annuitant.
25 The survivors insurance benefits provided under Section
26 15-145 shall not be applicable to an annuitant who resumes
27 his or her status as a participating employee, unless the
28 annuitant, at the time of initial retirement, has a survivors
29 insurance beneficiary who could qualify for such benefits.
30 If the annuitant's employment is terminated because of
31 circumstances other than death before 9 months from the date
32 of reemployment, the provisions of this Section regarding
33 resumption of status as a participating employee shall not
34 apply. The normal and survivors insurance contributions which
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1 are deducted during this period shall be refunded to the
2 annuitant without interest, and subsequent benefits under
3 this Article shall be the same as those which were applicable
4 prior to the date the annuitant resumed employment.
5 The amendments made to this Section by this amendatory
6 Act of the 91st General Assembly apply without regard to
7 whether the annuitant was in service on or after the
8 effective date of this amendatory Act.
9 (Source: P.A. 86-1488.)
10 (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
11 Sec. 15-140. Reversionary annuities. A participant in
12 the traditional benefit package entitled to a retirement
13 annuity may, prior to retirement, elect to take a reduced
14 retirement annuity and provide with the actuarial value of
15 the reduction, a reversionary annuity to a dependent
16 beneficiary, subject to the following conditions: (1) the
17 participant's written notice of election to provide such
18 annuity is received by the board at least 30 days before the
19 retirement annuity payment period begins, and (2) the amount
20 of the reversionary annuity is not less than $10 per month,
21 and (3) the reversionary annuity is payable only if the
22 participant dies after retirement.
23 The participant may revoke the election by filing a
24 written notice of revocation with the board. The
25 beneficiary's death prior to retirement of the participant
26 shall constitute a revocation of the election.
27 The amount of the reversionary annuity shall be that
28 specified in the participant's notice of election, but not
29 more than the amount which when added to the survivors
30 annuity payable to the dependent beneficiary, would equal the
31 participant's reduced retirement annuity. The participant
32 shall specify in the notice of election whether the full
33 retirement annuity is to be resumed or the reduced retirement
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1 annuity is to be continued, in the event the beneficiary
2 predeceases the annuitant.
3 The reversionary annuity payment period shall begin on
4 the day following the annuitant's death. A reversionary
5 annuity shall not be payable if the beneficiary predeceases
6 the annuitant.
7 (Source: P.A. 84-1028.)
8 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
9 Sec. 15-141. Death benefits - Death of participant.
10 (a) The beneficiary of a participant under the
11 traditional benefit package is entitled to a death benefit
12 equal to the sum of (1) the employee's accumulated normal and
13 additional contributions on the date of death, (2) the
14 employee's accumulated survivors insurance contributions on
15 the date of death, if a survivors insurance benefit is not
16 payable, (3) an amount equal to the employee's final rate of
17 earnings, but not more than $5,000 if (i) the beneficiary,
18 under rules of the board, was dependent upon the participant,
19 (ii) the participant was a participating employee immediately
20 prior to his or her death, and (iii) a survivors insurance
21 benefit is not payable, and (4) $2,500 if (i) the beneficiary
22 was not dependent upon the participant, (ii) the participant
23 was a participating employee immediately prior to his or her
24 death, and (iii) a survivors insurance benefit is not
25 payable.
26 (b) If the participant has elected to participate in the
27 portable benefit package and has completed the one-year
28 waiting period required under subsection (e) of Section
29 15-134.5, the death benefit shall be equal to the employee's
30 accumulated normal and additional contributions on the date
31 of death plus, if the employee died with 1.5 or 5 or more
32 years of service for employment as defined in Section
33 15-113.1, employer contributions in an amount equal to the
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1 sum of the accumulated normal and additional contributions;
2 except that if a pre-retirement survivor annuity is payable
3 under Section 15-136.4, the death benefit payable under this
4 paragraph shall be reduced, but to not less than zero, by the
5 actuarial value of the benefit payable to the surviving
6 spouse. The beneficiary of the participant must be his or
7 her spouse unless the spouse has consented to the designation
8 of another beneficiary in the manner described in subsection
9 (d) of Section 15-136.4.
10 (c) If payments are made under any State or Federal
11 Workers' Compensation or Occupational Diseases Law because of
12 the death of an employee, the portion of the death benefit
13 payable from employer contributions shall be reduced by the
14 total amount of the payments.
15 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
16 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
17 Sec. 15-142. Death benefits - Death of annuitant. Upon
18 the death of an annuitant receiving a retirement annuity or
19 disability retirement annuity, the annuitant's beneficiary
20 shall, if a survivor's insurance benefit is not payable under
21 Section 15-145 and an a pre-retirement survivor annuity is
22 not payable under Section 15-136.4, be entitled to a death
23 benefit equal to the greater of the following: (1) the
24 excess, if any, of the sum of the accumulated normal,
25 survivors insurance, and additional contributions as of the
26 date of retirement or the date the disability retirement
27 annuity began, whichever is earlier, over the sum of all
28 annuity payments made prior to the date of death, or (2)
29 $1,000.
30 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
31 (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
32 Sec. 15-144. Beneficiary annuities. This Section
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1 applies only to the death benefits of persons who became
2 participants before August 22, 1997 (the effective date of
3 Public Act 90-511).
4 If a deceased participant has specified in a written
5 notice on file with the board prior to his or her death, or
6 if the participant has not so specified, but the beneficiary
7 specifies in the application for the death benefit that the
8 benefit be paid as an annuity or as a designated cash payment
9 plus an annuity, it shall be paid in the manner thus
10 specified, unless the annuity is less than $10 per month, in
11 which case the death benefit shall be paid in a single cash
12 sum. If the death benefit is paid as an annuity, the
13 beneficiary may elect to take an amount not in excess of $500
14 in a single cash sum. The annuity payable to a beneficiary
15 shall be the actuarial equivalent of the death benefit,
16 determined as of the participant's date of death, on the
17 basis of the age of the beneficiary at that time.
18 The beneficiary annuity payment period shall begin on the
19 day following the death of the deceased and shall terminate
20 on the date of the beneficiary's death. If the beneficiary
21 may receive the death benefit in a single cash sum, but
22 elects to receive an annuity, he or she may, within one year
23 after the death of the participant or annuitant, revoke this
24 election and receive in a single cash sum the excess of the
25 amount of the death benefit upon which the annuity was based
26 over the sum of the annuity payments received.
27 (Source: P.A. 83-1440.)
28 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
29 Sec. 15-145. Survivors insurance benefits; conditions
30 and amounts.
31 (a) The survivors insurance benefits provided under this
32 Section shall be payable to the eligible survivors of a
33 participant covered under the traditional benefit package
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1 upon the death of (1) a participating employee with at least
2 1 1/2 years of service, (2) a participant who terminated
3 employment with at least 10 years of service, and (3) an
4 annuitant in receipt of a retirement annuity or disability
5 retirement annuity under this Article.
6 Service under the State Employees' Retirement System of
7 Illinois, the Teachers' Retirement System of the State of
8 Illinois and the Public School Teachers' Pension and
9 Retirement Fund of Chicago shall be considered in determining
10 eligibility for survivors benefits under this Section.
11 If by law, a function of a governmental unit, as defined
12 by Section 20-107, is transferred in whole or in part to an
13 employer, and an employee transfers employment from this
14 governmental unit to such employer within 6 months after the
15 transfer of this function, the service credits in the
16 governmental unit's retirement system which have been
17 validated under Section 20-109 shall be considered in
18 determining eligibility for survivors benefits under this
19 Section.
20 (b) A surviving spouse of a deceased participant, or of
21 a deceased annuitant who did not take a refund or additional
22 annuity consisting of accumulated survivors insurance
23 contributions who had a survivors insurance beneficiary at
24 the time of retirement, shall receive a survivors annuity of
25 30% of the final rate of earnings. Payments shall begin on
26 the day following the participant's or annuitant's death or
27 the date the surviving spouse attains age 50, whichever is
28 later, and continue until the death of the surviving spouse.
29 The annuity shall be payable to the surviving spouse prior to
30 attainment of age 50 if the surviving spouse has in his or
31 her care a deceased participant's or annuitant's dependent
32 unmarried child under age 18 (under age 22 if a full-time
33 student) who is eligible for a survivors annuity. Remarriage
34 of a surviving spouse prior to attainment of age 55 shall
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1 disqualify him or her for the receipt of a survivors annuity.
2 (c) Each dependent unmarried child under age 18 (under
3 age 22 if a full-time student) of a deceased participant, or
4 of a deceased annuitant who did not take a refund or
5 additional annuity consisting of accumulated survivors
6 insurance contributions who had a survivors insurance
7 beneficiary at the time of his or her retirement, shall
8 receive a survivors annuity equal to the sum of (1) 20% of
9 the final rate of earnings, and (2) 10% of the final rate of
10 earnings divided by the number of children entitled to this
11 benefit. Payments shall begin on the day following the
12 participant's or annuitant's death and continue until the
13 child marries, dies, or attains age 18 (age 22 if a full-time
14 student). If the child is in the care of a surviving spouse
15 who is eligible for survivors insurance benefits, the child's
16 benefit shall be paid to the surviving spouse.
17 Each unmarried child over age 18 of a deceased
18 participant or of a deceased annuitant who had a survivor's
19 insurance beneficiary at the time of his or her retirement,
20 and who was dependent upon the participant or annuitant by
21 reason of a physical or mental disability which began prior
22 to the date the child attained age 18 (age 22 if a full-time
23 student), shall receive a survivor's annuity equal to the sum
24 of (1) 20% of the final rate of earnings, and (2) 10% of the
25 final rate of earnings divided by the number of children
26 entitled to survivors benefits. Payments shall begin on the
27 day following the participant's or annuitant's death and
28 continue until the child marries, dies, or is no longer
29 disabled. If the child is in the care of a surviving spouse
30 who is eligible for survivors insurance benefits, the child's
31 benefit may be paid to the surviving spouse. For the
32 purposes of this Section, disability means inability to
33 engage in any substantial gainful activity by reason of any
34 medically determinable physical or mental impairment that can
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1 be expected to result in death or that has lasted or can be
2 expected to last for a continuous period of at least one
3 year.
4 (d) Each dependent parent of a deceased participant, or
5 of a deceased annuitant who did not take a refund or
6 additional annuity consisting of accumulated survivors
7 insurance contributions who had a survivors insurance
8 beneficiary at the time of his or her retirement, shall
9 receive a survivors annuity equal to the sum of (1) 20% of
10 final rate of earnings, and (2) 10% of final rate of earnings
11 divided by the number of parents who qualify for the benefit.
12 Payments shall begin when the parent reaches age 55 or the
13 day following the participant's or annuitant's death,
14 whichever is later, and continue until the parent dies.
15 Remarriage of a parent prior to attainment of age 55 shall
16 disqualify the parent for the receipt of a survivors annuity.
17 (e) In addition to the survivors annuity provided above,
18 each survivors insurance beneficiary shall, upon death of the
19 participant or annuitant, receive a lump sum payment of
20 $1,000 divided by the number of such beneficiaries.
21 (f) The changes made in this Section by Public Act
22 81-712 pertaining to survivors annuities in cases of
23 remarriage prior to age 55 shall apply to each survivors
24 insurance beneficiary who remarries after June 30, 1979,
25 regardless of the date that the participant or annuitant
26 terminated his employment or died.
27 (g) On January 1, 1981, any person who was receiving a
28 survivors annuity on or before January 1, 1971 shall have the
29 survivors annuity then being paid increased by 1% for each
30 full year which has elapsed from the date the annuity began.
31 On January 1, 1982, any survivor whose annuity began after
32 January 1, 1971, but before January 1, 1981, shall have the
33 survivor's annuity then being paid increased by 1% for each
34 year which has elapsed from the date the survivor's annuity
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1 began. On January 1, 1987, any survivor who began receiving a
2 survivor's annuity on or before January 1, 1977, shall have
3 the monthly survivor's annuity increased by $1 for each full
4 year which has elapsed since the date the survivor's annuity
5 began.
6 (h) If the sum of the lump sum and total monthly
7 survivor benefits payable under this Section upon the death
8 of a participant amounts to less than the sum of the death
9 benefits payable under items (2) and (3) of Section 15-141,
10 the difference shall be paid in a lump sum to the beneficiary
11 of the participant who is living on the date that this
12 additional amount becomes payable.
13 (i) If the sum of the lump sum and total monthly
14 survivor benefits payable under this Section upon the death
15 of an annuitant receiving a retirement annuity or disability
16 retirement annuity amounts to less than the death benefit
17 payable under Section 15-142, the difference shall be paid to
18 the beneficiary of the annuitant who is living on the date
19 that this additional amount becomes payable.
20 (j) Effective on the later of (1) January 1, 1990, or
21 (2) the January 1 on or next after the date on which the
22 survivor annuity begins, if the deceased member died while
23 receiving a retirement annuity, or in all other cases the
24 January 1 nearest the first anniversary of the date the
25 survivor annuity payments begin, every survivors insurance
26 beneficiary shall receive an increase in his or her monthly
27 survivors annuity of 3%. On each January 1 after the initial
28 increase, the monthly survivors annuity shall be increased by
29 3% of the total survivors annuity provided under this
30 Article, including previous increases provided by this
31 subsection. Such increases shall apply to the survivors
32 insurance beneficiaries of each participant and annuitant,
33 whether or not the employment status of the participant or
34 annuitant terminates before the effective date of this
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1 amendatory Act of 1990. This subsection (j) also applies to
2 persons receiving a survivor annuity under the portable
3 benefit package.
4 (k) If the Internal Revenue Code of 1986, as amended,
5 requires that the survivors benefits be payable at an age
6 earlier than that specified in this Section the benefits
7 shall begin at the earlier age, in which event, the
8 survivor's beneficiary shall be entitled only to that amount
9 which is equal to the actuarial equivalent of the benefits
10 provided by this Section.
11 (l) The changes made to this Section and Section 15-131
12 by this amendatory Act of 1997, relating to benefits for
13 certain unmarried children who are full-time students under
14 age 22, apply without regard to whether the deceased member
15 was in service on or after the effective date of this
16 amendatory Act of 1997. These changes do not authorize the
17 repayment of a refund or a re-election of benefits, and any
18 benefit or increase in benefits resulting from these changes
19 is not payable retroactively for any period before the
20 effective date of this amendatory Act of 1997.
21 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
22 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
23 Sec. 15-154. Refunds.
24 (a) A participant whose status as an employee is
25 terminated, regardless of cause, or who has been on lay off
26 status for more than 120 days, and who is not on leave of
27 absence, is entitled to a refund of contributions upon
28 application; except that not more than one such refund
29 application may be made during any academic year.
30 Except as set forth in subsections (a-1) and (a-2), the
31 refund shall be the sum of the accumulated normal, additional
32 and survivors insurance contributions, less the amount of
33 interest credited on these contributions each year in excess
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1 of 4 1/2% of the amount on which interest was calculated.
2 (a-1) A person who elects, in accordance with the
3 requirements of Section 15-134.5, to participate in the
4 portable benefit package and who becomes a participating
5 employee under that retirement program upon the conclusion of
6 the one-year waiting period applicable to the portable
7 benefit package election shall have his or her refund
8 calculated in accordance with the provisions of subsection
9 (a-2).
10 (a-2) The refund payable to a participant described in
11 subsection (a-1) shall be the sum of the participant's
12 accumulated normal and additional contributions, as defined
13 in Sections 15-116 and 15-117. If the participant terminates
14 with 5 or more years of service for employment as defined in
15 Section 15-113.1, he or she shall also be entitled to a
16 distribution of employer contributions in an amount equal to
17 the sum of the accumulated normal and additional
18 contributions, as defined in Sections 15-116 and 15-117.
19 (b) Upon acceptance of a refund, the participant
20 forfeits all accrued rights and credits in the System, and if
21 subsequently reemployed, the participant shall be considered
22 a new employee subject to all the qualifying conditions for
23 participation and eligibility for benefits applicable to new
24 employees. If such person again becomes a participating
25 employee and continues as such for 2 years, or is employed by
26 an employer and participates for at least 2 years in the
27 Federal Civil Service Retirement System, all such rights,
28 credits, and previous status as a participant shall be
29 restored upon repayment of the amount of the refund, together
30 with compound interest thereon from the date the refund was
31 received to the date of repayment at the rate of 6% per annum
32 through August 31, 1982, and at the effective rates after
33 that date.
34 (c) If a participant covered under the traditional
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1 transitional benefit package has made survivors insurance
2 contributions, but has no survivors insurance beneficiary
3 upon retirement, he or she shall be entitled to elect a
4 refund of the accumulated survivors insurance contributions,
5 or to elect an additional annuity the value of which is equal
6 to the accumulated survivors insurance contributions. This
7 election must be made prior to the date the person's
8 retirement annuity is approved by the Board of Trustees.
9 (d) A participant, upon application, is entitled to a
10 refund of his or her accumulated additional contributions
11 attributable to the additional contributions described in the
12 last sentence of subsection (c) of Section 15-157. Upon the
13 acceptance of such a refund of accumulated additional
14 contributions, the participant forfeits all rights and
15 credits which may have accrued because of such contributions.
16 (e) A participant who terminates his or her employee
17 status and elects to waive service credit under Section
18 15-154.2, is entitled to a refund of the accumulated normal,
19 additional and survivors insurance contributions, if any,
20 which were credited the participant for this service, or to
21 an additional annuity the value of which is equal to the
22 accumulated normal, additional and survivors insurance
23 contributions, if any; except that not more than one such
24 refund application may be made during any academic year. Upon
25 acceptance of this refund, the participant forfeits all
26 rights and credits accrued because of this service.
27 (f) If a police officer or firefighter receives a
28 retirement annuity under Rule 1 or 3 of Section 15-136, he or
29 she shall be entitled at retirement to a refund of the
30 difference between his or her accumulated normal
31 contributions and the normal contributions which would have
32 accumulated had such person filed a waiver of the retirement
33 formula provided by Rule 4 of Section 15-136.
34 (g) If, at the time of retirement, a participant would
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1 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
2 of Section 15-136, or under Section 15-136.4, that exceeds
3 the maximum specified in clause (1) of subsection (c) of
4 Section 15-136, he or she shall be entitled to a refund of
5 the employee contributions, if any, paid under Section 15-157
6 after the date upon which continuance of such contributions
7 would have otherwise caused the retirement annuity to exceed
8 this maximum, plus compound interest at the effective rates.
9 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
10 90-766, eff. 8-14-98.)
11 (40 ILCS 5/15-158.1 rep.)
12 Section 15. The Illinois Pension Code is amended by
13 repealing Section 15-158.1.
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.