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91_SB0303
LRB9101887EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 15-111, 15-136.4, 15-139, 15-158.2, 20-121, 20-123,
3 20-124, 20-125, and 20-131.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 15-111, 15-136.4, 15-139, 15-158.2, 20-121,
8 20-123, 20-124, 20-125, and 20-131 as follows:
9 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
10 Sec. 15-111. Earnings. "Earnings": An amount paid for
11 personal services equal to the sum of the basic compensation
12 plus extra compensation for summer teaching, overtime or
13 other extra service. For periods for which an employee
14 receives service credit under subsection (c) of Section
15 15-113.1 or Section 15-113.2, earnings are equal to the basic
16 compensation on which contributions are paid by the employee
17 during such periods. Compensation for employment which is
18 irregular, intermittent and temporary shall not be considered
19 earnings, unless the participant is also receiving earnings
20 from the employer as an employee under Section 15-107.
21 With respect to transition pay paid by the University of
22 Illinois to a person who was a participating employee
23 employed in the fire department of the University of
24 Illinois's Champaign-Urbana campus immediately prior to the
25 elimination of that fire department:
26 (1) "Earnings" includes transition pay paid to the
27 employee on or after the effective date of this
28 amendatory Act of the 91st General Assembly.
29 (2) "Earnings" includes transition pay paid to the
30 employee before the effective date of this amendatory Act
31 of the 91st General Assembly only if (i) employee
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1 contributions under Section 15-157 have been withheld
2 from that transition pay or (ii) the employee pays to the
3 System before January 1, 2000 an amount representing
4 employee contributions under Section 15-157 on that
5 transition pay. Employee contributions under item (ii)
6 may be paid in a lump sum, by withholding from additional
7 transition pay accruing before January 1, 2000, or in any
8 other manner approved by the System. Upon payment of the
9 employee contributions on transition pay, the
10 corresponding employer contributions become an obligation
11 of the State.
12 (Source: P.A. 87-8.)
13 (40 ILCS 5/15-136.4)
14 Sec. 15-136.4. Retirement and Survivor Benefits Under
15 Portable Benefit Package.
16 (a) This Section 15-136.4 describes the form of annuity
17 and survivor benefits available to a participant who has
18 elected the portable benefit package and has completed the
19 one-year waiting period required under subsection (e) of
20 Section 15-134.5. For purposes of this Section, the term
21 "eligible spouse" means the husband or wife of a participant
22 to whom the participant is married on the date the
23 participant's retirement annuity begins, provided however,
24 that if the participant should die prior to the commencement
25 of retirement annuity benefits, then "eligible spouse" means
26 the husband or wife, if any, to whom the participant was
27 married throughout the one-year period preceding the date of
28 his or her death.
29 (b) This subsection (b) describes the normal form of
30 annuity payable to a participant subject to this Section
31 15-136.4. If the participant is unmarried on the date his or
32 her annuity payments commence, then the annuity payments
33 shall be made in the form of a single-life annuity as
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1 described in Section 15-118. If the participant is married
2 on the date his or her annuity payments commence, then the
3 annuity payments shall be paid in the form of a qualified
4 joint and survivor annuity that is the actuarial equivalent
5 of the single-life annuity. Under the "qualified joint and
6 survivor annuity", a reduced amount shall be paid to the
7 participant for his or her lifetime and his or her eligible
8 spouse, if surviving at the participant's death, shall be
9 entitled to receive thereafter a lifetime survivorship
10 annuity in a monthly amount equal to 50% of the reduced
11 monthly amount that was payable to the participant. The last
12 payment of a qualified joint and survivor annuity shall be
13 made as of the first day of the month in which the death of
14 the survivor occurs.
15 (c) Instead of the normal form of annuity that would be
16 paid under subsection (b), a participant may elect in writing
17 within the 90-day period prior to the date his or her annuity
18 payments commence to waive the normal form of annuity payment
19 and receive an optional form of annuity as described in
20 subsection (h). If the participant is married and elects an
21 optional form of annuity under subsection (h) other than a
22 joint and survivor annuity with the eligible spouse
23 designated as the contingent annuitant, then such election
24 shall require the consent of his or her eligible spouse in
25 the manner described in subsection (d). At any time during
26 the 90-day period preceding the date the participant's
27 annuity commences, the participant may revoke the optional
28 form elected under this subsection (c) and reinstate coverage
29 under the qualified joint and survivor annuity without the
30 spouse's consent, but an election to revoke the optional form
31 elected and elect a new optional form or designate a
32 different contingent annuitant shall not be effective without
33 the eligible spouse's consent.
34 (d) The eligible spouse's consent to any election made
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1 pursuant to this Section that requires the eligible spouse's
2 consent shall be in writing and shall acknowledge the effect
3 of the consent. In addition, the eligible spouse's signature
4 on the written consent must be witnessed by a notary public.
5 The eligible spouse's consent need not be obtained if the
6 system is satisfied that there is no eligible spouse, that
7 the eligible spouse cannot be located, or because of any
8 other relevant circumstances. An eligible spouse's consent
9 under this Section is valid only with respect to the
10 specified optional form of payment and, if applicable,
11 contingent annuitant designated by the participant. If the
12 optional form of payment or the contingent annuitant is
13 subsequently changed (other than by a revocation of the
14 optional form and reinstatement of the qualified joint and
15 survivor annuity), a new consent by the eligible spouse is
16 required. The eligible spouse's consent to an election made
17 by a participant pursuant to this Section, once made, may not
18 be revoked by the eligible spouse.
19 (e) Within a reasonable period of time preceding the
20 date a participant's annuity commences, a participant shall
21 be supplied with a written explanation of (1) the terms and
22 conditions of the normal form single-life annuity and
23 qualified joint and survivor annuity, (2) the participant's
24 right to elect a single-life annuity or an optional form of
25 payment under subsection (h) subject to his or her eligible
26 spouse's consent, if applicable, and (3) the participant's
27 right to reinstate coverage under the qualified joint and
28 survivor annuity prior to his or her annuity commencement
29 date by revoking an election of an optional form of benefit
30 under subsection (h).
31 (f) If a married participant with at least 5 years of
32 service dies prior to commencing retirement annuity payments
33 and prior to taking a refund under Section 15-154, his or her
34 eligible spouse is entitled to receive a pre-retirement
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1 survivor annuity, if there is not then in effect a waiver of
2 the pre-retirement survivor annuity. The pre-retirement
3 survivor annuity payable under this subsection shall be a
4 monthly annuity payable for the eligible spouse's life,
5 commencing as of the beginning of the month next following
6 the later of the date of the participant's death or the date
7 the participant would have first met the eligibility
8 requirements for retirement, and continuing through the
9 beginning of the month in which the death of the eligible
10 spouse occurs. The monthly amount payable to the spouse
11 under the pre-retirement survivor annuity shall be equal to
12 the monthly amount that would be payable as a survivor
13 annuity under the qualified joint and survivor annuity
14 described in subsection (b) if: (1) in the case of a
15 participant who dies on or after the date on which the
16 participant has met the eligibility requirements for
17 retirement, the participant had retired with an immediate
18 qualified joint and survivor annuity on the day before the
19 participant's date of death; or (2) in the case of a
20 participant who dies before the earliest date on which the
21 participant would have met the eligibility requirements for
22 retirement age, the participant had separated from service on
23 the date of death, survived to the earliest retirement age
24 based on service prior to his or her death, retired with an
25 immediate qualified joint and survivor annuity at the
26 earliest retirement age, and died on the day after the day on
27 which the participant would have attained the earliest
28 retirement age.
29 (g) A married participant who has not retired may elect
30 at any time to waive the pre-retirement survivor annuity
31 described in subsection (f). Any such election shall require
32 the consent of the participant's eligible spouse in the
33 manner described in subsection (e). A waiver of the
34 pre-retirement survivor annuity shall increase the lump sum
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1 death benefit payable under subsection (b) of Section 15-141.
2 Prior to electing any waiver of the pre-retirement survivor
3 annuity, the participant shall be provided with a written
4 explanation of (1) the terms and conditions of the
5 pre-retirement survivor annuity and the death benefits
6 payable from the system both with and without the
7 pre-retirement survivor annuity, (2) the participant's right
8 to elect a waiver of the pre-retirement survivor annuity
9 coverage subject to his or her spouse's consent, and (3) the
10 participant's right to reinstate pre-retirement survivor
11 annuity coverage at any time by revoking a prior waiver of
12 such coverage.
13 (h) By filing a timely election with the system, a
14 participant who will be eligible to receive a retirement
15 annuity under this Section may waive the normal form of
16 annuity payment described in subsection (b), subject to
17 obtaining the consent of his or her eligible spouse, if
18 applicable, and elect to receive any one of the following
19 optional annuity forms:
20 (1) Joint and Survivor Annuity Options: The
21 participant may elect to receive a reduced annuity
22 payable for his or her life and to have a lifetime
23 survivorship annuity in a monthly amount equal to 50%,
24 75%, or 100% (as elected by the participant) of that
25 reduced monthly amount, to be paid after the
26 participant's death to his or her contingent annuitant,
27 if the contingent annuitant is alive at the time of the
28 participant's death.
29 (2) Single-Life Annuity Option (optional for
30 married participants). The participant may elect to
31 receive a single-life annuity payable for his or her life
32 only.
33 All optional forms shall be in an amount that is the
34 actuarial equivalent of the single-life annuity.
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1 For the purposes of this Section, the term "contingent
2 annuitant" means the beneficiary who is designated by a
3 participant at the time the participant elects a joint and
4 survivor annuity to receive the lifetime survivorship annuity
5 in the event the beneficiary survives the participant at the
6 participant's death.
7 (i) Under no circumstances may an option be elected,
8 changed, or revoked after the date the participant's
9 retirement annuity commences.
10 (j) An election made pursuant to subsection (h) shall
11 become inoperative if the participant or the contingent
12 annuitant dies before the date the participant's annuity
13 payments commence, or if the eligible spouse's consent is
14 required and not given.
15 (k) For purposes of applying the provisions of Section
16 20-123 of this Code, the portable benefit package shall be
17 treated as if it were provided by a participating system that
18 has no survivor's annuity benefit.
19 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
20 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
21 Sec. 15-139. Retirement annuities; cancellation;
22 suspended during employment.
23 (a) If an annuitant returns to employment for an
24 employer within 60 days after the beginning of the retirement
25 annuity payment period, the retirement annuity shall be
26 cancelled, and the annuitant shall refund to the System the
27 total amount of the retirement annuity payments which he or
28 she received. If the retirement annuity is cancelled, the
29 participant shall continue to participate in the System.
30 (b) If an annuitant retires prior to age 60 and receives
31 or becomes entitled to receive during any month compensation
32 in excess of the monthly retirement annuity for services
33 performed after the date of retirement for any employer under
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1 this System, the State Employees' Retirement System of
2 Illinois, or the Teachers' Retirement System of the State of
3 Illinois, that portion of the monthly retirement annuity
4 provided by employer contributions shall not be payable.
5 If an annuitant retires at age 60 or over and receives or
6 becomes entitled to receive during any academic year
7 compensation in excess of the difference between his or her
8 highest annual earnings prior to retirement and his or her
9 annual retirement annuity computed under Rule 1, Rule 2, Rule
10 3 or Rule 4 of Section 15-136 for services performed after
11 the date of retirement for any employer under this System,
12 that portion of the monthly retirement annuity provided by
13 employer contributions shall be reduced by an amount equal to
14 the compensation that exceeds such difference.
15 However, any remuneration received for serving as a
16 member of the Illinois Educational Labor Relations Board
17 shall be excluded from "compensation" for the purposes of
18 this subsection (b), and serving as a member of the Illinois
19 Educational Labor Relations Board shall not be deemed to be a
20 return to employment for the purposes of this Section. This
21 provision applies without regard to whether service was
22 terminated prior to the effective date of this amendatory Act
23 of 1991.
24 (c) If an employer certifies that an annuitant has been
25 reemployed on a permanent and continuous basis or in a
26 position in which the annuitant is expected to serve for at
27 least 9 months, the annuitant shall resume his or her status
28 as a participating employee and shall be entitled to all
29 rights applicable to participating employees upon filing with
30 the board an election to forego all annuity payments during
31 the period of reemployment. Upon subsequent retirement, the
32 retirement annuity shall consist of the annuity which was
33 terminated by the reemployment, plus the additional
34 retirement annuity based upon service granted during the
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1 period of reemployment, but the combined retirement annuity
2 shall not exceed the maximum annuity applicable on the date
3 of the last retirement.
4 The total service and earnings credited before and after
5 the initial date of retirement shall be considered in
6 determining eligibility of the employee or the employee's
7 beneficiary to benefits under this Article, and in
8 calculating final rate of earnings.
9 In determining the death benefit payable to a beneficiary
10 of an annuitant who again becomes a participating employee
11 under this Section, accumulated normal and additional
12 contributions shall be considered as the sum of the
13 accumulated normal and additional contributions at the date
14 of initial retirement and the accumulated normal and
15 additional contributions credited after that date, less the
16 sum of the annuity payments received by the annuitant.
17 The survivors insurance benefits provided under Section
18 15-145 shall not be applicable to an annuitant who resumes
19 his or her status as a participating employee, unless the
20 annuitant, at the time of initial retirement, has a survivors
21 insurance beneficiary who could qualify for such benefits.
22 If the annuitant's employment is terminated because of
23 circumstances other than death before 9 months from the date
24 of reemployment, the provisions of this Section regarding
25 resumption of status as a participating employee shall not
26 apply. The normal and survivors insurance contributions which
27 are deducted during this period shall be refunded to the
28 annuitant without interest, and subsequent benefits under
29 this Article shall be the same as those which were applicable
30 prior to the date the annuitant resumed employment.
31 (Source: P.A. 86-1488.)
32 (40 ILCS 5/15-158.2)
33 Sec. 15-158.2. Self-managed plan.
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1 (a) Purpose. The General Assembly finds that it is
2 important for colleges and universities to be able to attract
3 and retain the most qualified employees and that in order to
4 attract and retain these employees, colleges and universities
5 should have the flexibility to provide a defined contribution
6 plan as an alternative for eligible employees who elect not
7 to participate in a defined benefit retirement program
8 provided under this Article. Accordingly, the State
9 Universities Retirement System is hereby authorized to
10 establish and administer a self-managed plan, which shall
11 offer participating employees the opportunity to accumulate
12 assets for retirement through a combination of employee and
13 employer contributions that may be invested in mutual funds,
14 collective investment funds, or other investment products and
15 used to purchase annuity contracts, either fixed or variable
16 or a combination thereof. The plan must be qualified under
17 the Internal Revenue Code of 1986.
18 (b) Adoption by employers. Each employer subject to
19 this Article may elect to adopt the self-managed plan
20 established under this Section; this election is irrevocable.
21 An employer's election to adopt the self-managed plan makes
22 available to the eligible employees of that employer the
23 elections described in Section 15-134.5.
24 The State Universities Retirement System shall be the
25 plan sponsor for the self-managed plan and shall prepare a
26 plan document and prescribe such rules and procedures as are
27 considered necessary or desirable for the administration of
28 the self-managed plan. Consistent with its fiduciary duty to
29 the participants and beneficiaries of the self-managed plan,
30 the Board of Trustees of the System may delegate aspects of
31 plan administration as it sees fit to companies authorized to
32 do business in this State, to the employers, or to a
33 combination of both.
34 (c) Selection of service providers and funding vehicles.
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1 The System, in consultation with the employers, shall solicit
2 proposals to provide administrative services and funding
3 vehicles for the self-managed plan from insurance and annuity
4 companies and mutual fund companies, banks, trust companies,
5 or other financial institutions authorized to do business in
6 this State. In reviewing the proposals received and
7 approving and contracting with no fewer than 2 and no more
8 than 7 companies, at least 2 of which must be insurance and
9 annuity companies, the Board of Trustees of the System shall
10 consider, among other things, the following criteria:
11 (1) the nature and extent of the benefits that
12 would be provided to the participants;
13 (2) the reasonableness of the benefits in relation
14 to the premium charged;
15 (3) the suitability of the benefits to the needs
16 and interests of the participating employees and the
17 employer;
18 (4) the ability of the company to provide benefits
19 under the contract and the financial stability of the
20 company; and
21 (5) the efficacy of the contract in the recruitment
22 and retention of employees.
23 The System, in consultation with the employers, shall
24 periodically review each approved company. A company may
25 continue to provide administrative services and funding
26 vehicles for the self-managed plan only so long as it
27 continues to be an approved company under contract with the
28 Board.
29 (d) Employee Direction. Employees who are participating
30 in the program must be allowed to direct the transfer of
31 their account balances among the various investment options
32 offered, subject to applicable contractual provisions. The
33 participant shall not be deemed a fiduciary by reason of
34 providing such investment direction. A person who is a
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1 fiduciary shall not be liable for any loss resulting from
2 such investment direction and shall not be deemed to have
3 breached any fiduciary duty by acting in accordance with that
4 direction. Neither the System nor the employer guarantees
5 any of the investments in the employee's account balances.
6 (e) Participation. An employee eligible to participate
7 in the self-managed plan must make a written election in
8 accordance with the provisions of Section 15-134.5 and the
9 procedures established by the System. Participation in the
10 self-managed plan by an electing employee shall begin on the
11 first day of the first pay period following the later of the
12 date the employee's election is filed with the System or the
13 effective date as of which the employee's employer begins to
14 offer participation in the self-managed plan. Employers may
15 not make the self-managed plan available earlier than January
16 1, 1998. An employee's participation in any other retirement
17 program administered by the System under this Article shall
18 terminate on the date that participation in the self-managed
19 plan begins.
20 An employee who has elected to participate in the
21 self-managed plan under this Section must continue
22 participation while employed in an eligible position, and may
23 not participate in any other retirement program administered
24 by the System under this Article while employed by that
25 employer or any other employer that has adopted the
26 self-managed plan, unless the self-managed plan is terminated
27 in accordance with subsection (i).
28 Participation in the self-managed plan under this Section
29 shall constitute membership in the State Universities
30 Retirement System.
31 A participant under this Section shall be entitled to the
32 benefits of Article 20 of this Code. modified to reflect the
33 following principles:
34 (1) The amount of any retirement annuities payable
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1 under this Section depend solely on the value of the
2 participant's vested account balances and are not subject
3 to a maximum annuity benefit limitation or any adjustment
4 pursuant to the proportional retirement annuity
5 provisions of Article 20. If a participant in the
6 self-managed plan under this Section elects to apply the
7 provisions of Article 20, the dollar amount of the
8 proportional retirement annuity payable from the System
9 shall be deemed to be zero and the provisions of the
10 second paragraph of Section 20-131 shall not apply with
11 respect to the retirement annuity benefits payable to the
12 participant under this Section.
13 (2) For purposes of Section 20-123 of this Code,
14 the self-managed plan shall be treated as if it were
15 provided by a participating system that has no survivor's
16 annuity benefit.
17 (3) Notwithstanding Section 20-125 of this Code,
18 upon reemployment by a participating system of a retired
19 participant in the self-managed plan, the retirement
20 annuity payment made to such participant from any annuity
21 contracts acquired from the participant's self-managed
22 plan account balances shall not be suspended.
23 (f) Establishment of Initial Account Balance. If at the
24 time an employee elects to participate in the self-managed
25 plan he or she has rights and credits in the System due to
26 previous participation in the traditional benefit package,
27 the System shall establish for the employee an opening
28 account balance in the self-managed plan, equal to the amount
29 of contribution refund that the employee would be eligible to
30 receive under Section 15-154 if the employee terminated
31 employment on that date and elected a refund of
32 contributions, except that this hypothetical refund shall
33 include interest at the effective rate for the respective
34 years. The System shall transfer assets from the defined
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1 benefit retirement program to the self-managed plan, as a tax
2 free transfer in accordance with Internal Revenue Service
3 guidelines, for purposes of funding the employee's opening
4 account balance.
5 (g) No Duplication of Service Credit. Notwithstanding
6 any other provision of this Article, an employee may not
7 purchase or receive service or service credit applicable to
8 any other retirement program administered by the System under
9 this Article for any period during which the employee was a
10 participant in the self-managed plan established under this
11 Section.
12 (h) Contributions. The self-managed plan shall be
13 funded by contributions from employees participating in the
14 self-managed plan and employer contributions as provided in
15 this Section.
16 The contribution rate for employees participating in the
17 self-managed plan under this Section shall be equal to the
18 employee contribution rate for other participants in the
19 System, as provided in Section 15-157. This required
20 contribution shall be made as an "employer pick-up" under
21 Section 414(h) of the Internal Revenue Code of 1986 or any
22 successor Section thereof. Any employee participating in the
23 System's traditional benefit package prior to his or her
24 election to participate in the self-managed plan shall
25 continue to have the employer pick up the contributions
26 required under Section 15-157. However, the amounts picked
27 up after the election of the self-managed plan shall be
28 remitted to and treated as assets of the self-managed plan.
29 In no event shall an employee have an option of receiving
30 these amounts in cash. Employees may make additional
31 contributions to the self-managed plan in accordance with
32 procedures prescribed by the System, to the extent permitted
33 under rules prescribed by the System.
34 The program shall provide for employer contributions to
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1 be credited to each self-managed plan participant at a rate
2 of 7.6% of the participating employee's salary, less the
3 amount used by the System to provide disability benefits for
4 the employee. The amounts so credited shall be paid into the
5 participant's self-managed plan accounts in a manner to be
6 prescribed by the System.
7 An amount of employer contribution, not exceeding 1% of
8 the participating employee's salary, shall be used for the
9 purpose of providing the disability benefits of the System to
10 the employee. Prior to the beginning of each plan year under
11 the self-managed plan, the Board of Trustees shall determine,
12 as a percentage of salary, the amount of employer
13 contributions to be allocated during that plan year for
14 providing disability benefits for employees in the
15 self-managed plan.
16 The State of Illinois shall make contributions by
17 appropriations to the System of the employer contributions
18 required for employees who participate in the self-managed
19 plan under this Section. The amount required shall be
20 certified by the Board of Trustees of the System and paid by
21 the State in accordance with Section 15-165. The System
22 shall not be obligated to remit the required employer
23 contributions to any of the insurance and annuity companies,
24 mutual fund companies, banks, trust companies, financial
25 institutions, or other sponsors of any of the funding
26 vehicles offered under the self-managed plan until it has
27 received the required employer contributions from the State.
28 In the event of a deficiency in the amount of State
29 contributions, the System shall implement those procedures
30 described in subsection (c) of Section 15-165 to obtain the
31 required funding from the General Revenue Fund.
32 (i) Termination. The self-managed plan authorized under
33 this Section may be terminated by the System, subject to the
34 terms of any relevant contracts, and the System shall have no
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1 obligation to reestablish the self-managed plan under this
2 Section. This Section does not create a right to continued
3 participation in any self-managed plan set up by the System
4 under this Section. If the self-managed plan is terminated,
5 the participants shall have the right to participate in one
6 of the other retirement programs offered by the System and
7 receive service credit in such other retirement program for
8 any years of employment following the termination.
9 (j) Vesting; Withdrawal; Return to Service. A
10 participant in the self-managed plan becomes vested in the
11 employer contributions credited to his or her accounts in the
12 self-managed plan on the earliest to occur of the following:
13 (1) completion of 5 years of service with an employer
14 described in Section 15-106; (2) the death of the
15 participating employee while employed by an employer
16 described in Section 15-106, if the participant has completed
17 at least 1 1/2 years of service; or (3) the participant's
18 election to retire and apply the reciprocal provisions of
19 Article 20 of this Code.
20 A participant in the self-managed plan who receives a
21 distribution of his or her vested amounts from the
22 self-managed plan while not yet eligible for retirement under
23 this Article (and Article 20, if applicable) upon or after
24 termination of employment shall forfeit all service credit
25 and accrued rights in the System; if subsequently
26 re-employed, the participant shall be considered a new
27 employee. If a former participant again becomes a
28 participating employee (or becomes employed by a
29 participating system under Article 20 of this Code) and
30 continues as such for at least 2 years, all such rights,
31 service credits, and previous status as a participant shall
32 be restored upon repayment of the amount of the distribution,
33 without interest.
34 (k) Benefit amounts. If an employee who is vested in
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1 employer contributions terminates employment, the employee
2 shall be entitled to a benefit which is based on the account
3 values attributable to both employer and employee
4 contributions and any investment return thereon.
5 If an employee who is not vested in employer
6 contributions terminates employment, the employee shall be
7 entitled to a benefit based solely on the account values
8 attributable to the employee's contributions and any
9 investment return thereon, and the employer contributions and
10 any investment return thereon shall be forfeited. Any
11 employer contributions which are forfeited shall be held in
12 escrow by the company investing those contributions and shall
13 be used as directed by the System for future allocations of
14 employer contributions or for the restoration of amounts
15 previously forfeited by former participants who again become
16 participating employees.
17 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
18 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
19 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
20 Sec. 20-121. Calculation of proportional retirement
21 annuities. Upon retirement of the employee, a proportional
22 retirement annuity shall be computed by each participating
23 system in which pension credit has been established on the
24 basis of pension credits under each system. The computation
25 shall be in accordance with the formula or method prescribed
26 by each participating system which is in effect at the date
27 of the employee's latest withdrawal from service covered by
28 any of the systems in which he has pension credits which he
29 elects to have considered under this Article. However, the
30 amount of any retirement annuity payable under the
31 self-managed plan established under Section 15-158.2 of this
32 Code depends solely on the value of the participant's vested
33 account balances and is not subject to any proportional
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1 adjustment under this Section.
2 Combined pension credit under all retirement systems
3 subject to this Article shall be considered in determining
4 whether the minimum qualification has been met and the
5 formula or method of computation which shall be applied. If
6 a system has a step-rate formula for calculation of the
7 retirement annuity, pension credits covering previous service
8 which have been established under another system shall be
9 considered in determining which range or ranges of the
10 step-rate formula are to be applicable to the employee.
11 Interest on pension credit shall continue to accumulate
12 in accordance with the provisions of the law governing the
13 retirement system in which the same has been established
14 during the time an employee is in the service of another
15 employer, on the assumption such employee, for interest
16 purposes for pension credit, is continuing in the service
17 covered by such retirement system.
18 (Source: P.A. 79-782.)
19 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
20 Sec. 20-123. Survivor's annuity. The provisions
21 governing a retirement annuity shall be applicable to a
22 survivor's annuity. Appropriate credits shall be established
23 for survivor's annuity purposes in those participating
24 systems which provide survivor's annuities, according to the
25 same conditions and subject to the same limitations and
26 restrictions herein prescribed for a retirement annuity. If
27 a participating system has no survivor's annuity benefit, or
28 if the survivor's annuity benefit under that system is
29 waived, pension credit established in that this system shall
30 not be considered in determining eligibility for or the
31 amount of the survivor's annuity which may be payable by any
32 other participating system.
33 For persons who participate in the self-managed plan
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1 established under Section 15-158.2 or the portable benefit
2 package established under Section 15-136.4, pension credit
3 established under Article 15 may be considered in determining
4 eligibility for or the amount of the survivor's annuity that
5 is payable by any other participating system, but pension
6 credit established in any other system shall not result in
7 any right to a survivor's annuity under the Article 15
8 system.
9 (Source: P.A. 79-782.)
10 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
11 Sec. 20-124. Maximum benefits. In no event shall the
12 combined retirement or survivors annuities exceed the highest
13 annuity which would have been payable by any participating
14 system in which the employee has pension credits, if all of
15 his pension credits had been validated in that system.
16 If the combined annuities should exceed the highest
17 maximum as determined in accordance with this Section, the
18 respective annuities shall be reduced proportionately
19 according to the ratio which the amount of each proportional
20 annuity bears to the aggregate of all such annuities.
21 In the case of a participant in the self-managed plan
22 established under Section 15-158.2 of this Code to whom the
23 provisions of this Article apply:
24 (i) For purposes of calculating the combined
25 retirement annuity and the proportionate reduction, if
26 any, in a retirement annuity other than one payable under
27 the self-managed plan, the amount of the Article 15
28 retirement annuity shall be deemed to be the highest
29 annuity to which the annuitant would have been entitled
30 if he or she had participated in the traditional benefit
31 package as defined in Section 15-103.1 rather than the
32 self-managed plan.
33 (ii) For purposes of calculating the combined
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1 survivor's annuity and the proportionate reduction, if
2 any, in a survivor's annuity other than one payable under
3 the self-managed plan, the amount of the Article 15
4 survivor's annuity shall be deemed to be the highest
5 survivor's annuity to which the survivor would have been
6 entitled if the deceased employee had participated in the
7 traditional benefit package as defined in Section
8 15-103.1 rather than the self-managed plan.
9 (iii) Benefits payable under the self-managed plan
10 are not subject to proportionate reduction under this
11 Section.
12 (Source: P.A. 79-782.)
13 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
14 Sec. 20-125. Return to employment - suspension of
15 benefits. If a retired employee returns to employment which
16 is covered by a system from which he is receiving a
17 proportional annuity under this Article, his proportional
18 annuity from all participating systems shall be suspended
19 during the period of re-employment, except that this
20 suspension does not apply to any distributions payable under
21 the self-managed plan established under Section 15-158.2 of
22 this Code.
23 The provisions of the Article under which such employment
24 would be covered shall govern the determination of whether
25 the employee has returned to employment, and if applicable
26 the exemption of temporary employment or employment not
27 exceeding a specified duration or frequency, for all
28 participating systems from which the retired employee is
29 receiving a proportional annuity under this Article,
30 notwithstanding any contrary provisions in the other Articles
31 governing such systems.
32 (Source: P.A. 85-1008.)
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1 (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
2 Sec. 20-131. Retirement Annuities and Survivors
3 Annuities - Guarantees.
4 (a) This amendatory Act of 1975 (P.A. 79-782) shall not
5 be applied to deprive any person or his survivor of
6 eligibility for an annuity or to reduce the annuity or to
7 deprive such person of rights to which he or his survivor
8 would have been entitled under the provisions of Article 20
9 which were in effect immediately prior to September 5, 1975,
10 if he was an employee immediately prior to that date.
11 (b) If the combined retirement annuity benefits provided
12 under Public Act 79-782 are less than the combined retirement
13 annuity benefits that would have been payable under the
14 alternative formula of Section 20-122, the system under which
15 retirement would have occurred, as provided by Section
16 20-122, shall increase the proportional retirement annuity by
17 an amount equal to the difference.
18 (c) Subsection (b) of this Section does not apply to the
19 retirement annuity benefits payable under the self-managed
20 plan established under Section 15-158.2 of this Code.
21 (Source: P.A. 86-820.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.