State of Illinois
92nd General Assembly
Legislation

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92_HB0685

 
                                               LRB9204329EGfg

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 7-118, 7-137, 7-139, 7-141,  7-152,  7-156,
 6    7-158, 7-164, 7-172, 7-205, and 7-206 as follows:

 7        (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
 8        Sec. 7-118.  "Beneficiary":
 9        (a)  The  surviving  spouse  of  an  employee  or  of  an
10    employee  annuitant,  or if no surviving spouse survives, the
11    person or persons designated by a participating  employee  or
12    employee  annuitant,  or if no person so designated survives,
13    or if no designation is on file, the estate of  the  employee
14    or employee annuitant.  The person or persons designated by a
15    beneficiary  annuitant,  or if no person designated survives,
16    or  if  no  designation  is  on  file,  the  estate  of   the
17    beneficiary  annuitant.  The  estate  of  a  surviving spouse
18    annuitant where the employee or employee annuitant  filed  no
19    designation, or no person designated survives at the death of
20    a  surviving spouse annuitant.  Designations of beneficiaries
21    shall be in writing on forms  prescribed  by  the  board  and
22    effective  upon  filing in the fund offices.  The designation
23    forms shall provide for contingent  beneficiaries.   Divorce,
24    dissolution  or annulment of marriage revokes the designation
25    of  an  employee's  former  spouse  as  a  beneficiary  on  a
26    designation  executed before entry of judgment  for  divorce,
27    dissolution or annulment of marriage.
28        (b)  Notwithstanding  the  foregoing, an employee, former
29    employee who has not yet received  a  retirement  annuity  or
30    separation  benefit,  or employee annuitant may elect to name
31    any person, trust or charity to be the primary beneficiary of
 
                            -2-                LRB9204329EGfg
 1    any death benefit payable  by  reason  of  his  death.   Such
 2    election shall state specifically whether it is his intention
 3    to  exclude  the  spouse,  shall  be  in  writing, and may be
 4    revoked at any time.  Such election or revocation shall  take
 5    effect upon being filed in the fund offices.
 6        (c)  If a surviving spouse annuity is payable to a former
 7    spouse  upon  the  death of an employee annuitant, the former
 8    spouse, unless designated by  the  employee  annuitant  after
 9    dissolution of the marriage, shall not be the beneficiary for
10    the purposes of the $5,000 $3,000 death benefit payable under
11    subparagraph  6 of Section 7-164.  This benefit shall be paid
12    to the designated beneficiary of the employee  annuitant  or,
13    if  there  is  no  designation,  then  to  the  estate of the
14    employee annuitant.
15    (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)

16        (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
17        Sec. 7-137.  Participating and covered employees.
18        (a)  The persons described in this paragraph (a) shall be
19    included within and be subject to this Article  and  eligible
20    to   benefits  from  this  fund,  beginning  upon  the  dates
21    hereinafter specified:
22             1.  Except as to the employees specifically excluded
23        under the provisions of this Article, all persons who are
24        employees  of  any   municipality   (or   instrumentality
25        thereof)   or   participating   instrumentality   on  the
26        effective date of participation of  the  municipality  or
27        participating   instrumentality   beginning   upon   such
28        effective date.
29             2.  Except as to the employees specifically excluded
30        under  the  provisions  of this Article, all persons, who
31        became employees of any  participating  municipality  (or
32        instrumentality thereof) or participating instrumentality
33        after   the  effective  date  of  participation  of  such
 
                            -3-                LRB9204329EGfg
 1        municipality or participating instrumentality,  beginning
 2        upon the date such person becomes an employee.
 3             3.  All  persons  who  file notice with the board as
 4        provided in paragraph (b)2 or (b)3 and 3 of this Section,
 5        beginning upon the date of filing such notice.
 6        (b)  The  following  described  persons  shall   not   be
 7    considered participating employees eligible for benefits from
 8    this  fund,  but  shall  be included within and be subject to
 9    this Article (each of the descriptions is not  exclusive  but
10    is cumulative):
11             1.  Any person who occupies an office or is employed
12        in  a  position  normally  requiring  performance of duty
13        during less than 600 hours  a  year  for  a  municipality
14        (including    all   instrumentalities   thereof)   or   a
15        participating  instrumentality.  If  a  school  treasurer
16        performs services for more than one school district,  the
17        total  number  of  hours of service normally required for
18        the several  school  districts  shall  be  considered  to
19        determine whether he qualifies under this paragraph;
20             2.  Any  person  who holds elective office unless he
21        has elected while in that office in a written  notice  on
22        file with the board to become a participating employee;
23             3.  Any  person  working  for a city hospital unless
24        any such person, while in active employment, has  elected
25        in  a  written  notice on file with the board to become a
26        participating  employee  and  notification   thereof   is
27        received by the board;
28             4.  Any  person  who  becomes an employee after June
29        30,  1979  as  a  public   service   employment   program
30        participant  under  the  federal Comprehensive Employment
31        and Training Act and whose wages or fringe  benefits  are
32        paid  in  whole  or  in part by funds provided under such
33        Act.
34        (c)  Any person electing to be a participating  employee,
 
                            -4-                LRB9204329EGfg
 1    pursuant to paragraph (b) of this Section may not change such
 2    election, except as provided in Section 7-137.1.
 3        (d)  Any  employee  who  occupied  the position of school
 4    nurse in any participating municipality on August 8, 1961 and
 5    continuously thereafter  until  the  effective  date  of  the
 6    exercise  of  the option authorized by this subparagraph, who
 7    on August 7, 1961 was a member of  the  Teachers'  Retirement
 8    System  of  Illinois,  by  virtue  of  certification  by  the
 9    Department  of  Registration and Education as a public health
10    nurse, may elect to terminate participation in this  Fund  in
11    order   to  re-establish  membership  in  such  System.   The
12    election may be exercised by filing  written  notice  thereof
13    with  the  Board  or  with  the  Board  of  Trustees  of said
14    Teachers' Retirement System, not  later  than  September  30,
15    1963, and shall be effective on the first day of the calendar
16    month next following the month in which the notice was filed.
17    If the written notice is filed with such Teachers' Retirement
18    System,  that  System shall immediately notify this Fund, but
19    neither failure nor delay in notification  shall  affect  the
20    validity  of  the  employee's  election.   If  the  option is
21    exercised, the Fund shall notify  such  Teachers'  Retirement
22    System  of  such fact and transfer to that system the amounts
23    contributed by the employee to this Fund, including  interest
24    at  3%  per  annum, but excluding contributions applicable to
25    social security coverage during the period  beginning  August
26    8,  1961  to  the  effective date of the employee's election.
27    Participation in this Fund as to  any  credits  on  or  after
28    August 8, 1961 and up to the effective date of the employee's
29    election shall terminate on such effective date.
30        (e)  Any   participating  municipality  or  participating
31    instrumentality, other than  a  school  district  or  special
32    education  joint  agreement created under Section 10-22.31 of
33    the  School Code, may, by  a  resolution  or  ordinance  duly
34    adopted   by  its  governing  body,  elect  to  exclude  from
 
                            -5-                LRB9204329EGfg
 1    participation and eligibility for benefits  all  persons  who
 2    are  employed  after the effective date of such resolution or
 3    ordinance and who occupy an  office  or  are  employed  in  a
 4    position normally requiring performance of duty for less than
 5    1000  hours  per  year  for  the  participating  municipality
 6    (including  all  instrumentalities  thereof) or participating
 7    instrumentality, except for persons employed  in  a  position
 8    normally  requiring performance of duty for 600 hours or more
 9    per  year  (i)  by   such   participating   municipality   or
10    participating  instrumentality prior to the effective date of
11    the  resolution  or  ordinance,  (ii)  by  any  participating
12    municipality  or  participating  instrumentality   prior   to
13    January 1, 1982, and (iii) by a participating municipality or
14    participating  instrumentality  that,  which  had not adopted
15    such a resolution when  the  person  was  employed,  and  the
16    function  served  by  the  employee's  position is assumed by
17    another   participating   municipality    or    participating
18    instrumentality, or (iv) by any participating municipality or
19    participating  instrumentality  upon  a  return to employment
20    after retirement from a position (not  necessarily  with  the
21    same employer) normally requiring the performance of duty for
22    at  least 600 but less than 1000 hours per year for which the
23    person   participated   in   the   Fund.    A   participating
24    municipality or participating instrumentality included in and
25    subject to this Article after January 1, 1982 may adopt  such
26    resolution  or  ordinance  only  prior to the date it becomes
27    included in and subject to this Article.  Notwithstanding the
28    foregoing,  a  participating  municipality  or  participating
29    instrumentality which is formed  solely  to  succeed  to  the
30    functions  of  a  participating municipality or participating
31    instrumentality shall be considered to have adopted any  such
32    resolution or ordinance which may have been applicable to the
33    employees  performing  such  functions.  The election made by
34    the resolution or ordinance shall take  effect  at  the  time
 
                            -6-                LRB9204329EGfg
 1    specified  in the resolution or ordinance, and once effective
 2    shall be irrevocable.
 3        The change in this subsection made by this amendatory Act
 4    of the 92nd General Assembly also applies  to  persons  whose
 5    initial withdrawal from service occurred before the effective
 6    date of this amendatory Act.
 7    (Source: P.A. 86-272; 87-740; 87-850.)

 8        (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
 9        Sec. 7-139.  Credits and creditable service to employees.
10        (a)  Each participating employee shall be granted credits
11    and  creditable  service,  for  purposes  of  determining the
12    amount of any annuity or benefit to which he or a beneficiary
13    is entitled, as follows:
14             1.  For prior service: Each  participating  employee
15        who  is  an  employee  of a participating municipality or
16        participating instrumentality on the effective date shall
17        be granted  creditable  service,  but  no  credits  under
18        paragraph  2 of this subsection (a), for periods of prior
19        service for which credit has not been received under  any
20        other pension fund or retirement system established under
21        this Code, as follows:
22             If  the  effective  date  of  participation  for the
23        participating     municipality      or      participating
24        instrumentality   is   on  or  before  January  1,  1998,
25        creditable service shall be granted for the entire period
26        of prior service with that employer without any  employee
27        contribution.
28             If  the  effective  date  of  participation  for the
29        participating     municipality      or      participating
30        instrumentality  is  after  January  1,  1998, creditable
31        service shall be granted for the last 20% of  the  period
32        of  prior  service with that employer, but no more than 5
33        years,   without   any    employee    contribution.     A
 
                            -7-                LRB9204329EGfg
 1        participating  employee  may establish creditable service
 2        for the remainder of the period  of  prior  service  with
 3        that  employer  by  making  an  application  in  writing,
 4        accompanied  by payment of an employee contribution in an
 5        amount determined by the  Fund,  based  on  the  employee
 6        contribution  rates  in effect at the time of application
 7        for the creditable service and the employee's salary rate
 8        on the effective date of participation for that employer,
 9        plus interest at the effective rate from the date of  the
10        prior  service  to  the date of payment.  Application for
11        this creditable service may be made at any time while the
12        employee is still in service.
13             Any person who has withdrawn from the service  of  a
14        participating      municipality      or     participating
15        instrumentality prior to the effective date, who reenters
16        the service of the  same  municipality  or  participating
17        instrumentality  after  the  effective date and becomes a
18        participating employee is entitled to creditable  service
19        for   prior   service   as  otherwise  provided  in  this
20        subdivision (a)(1) only if he or she renders 2  years  of
21        service  as  a participating employee after the effective
22        date.  Application for such service must be made while in
23        a participating status.  The salary rate to  be  used  in
24        the calculation of the required employee contribution, if
25        any,  shall  be the employee's salary rate at the time of
26        first reentering service  with  the  employer  after  the
27        employer's effective date of participation.
28             2.  For current service, each participating employee
29        shall be credited with:
30                  a.  Additional credits of amounts equal to each
31             payment  of  additional  contributions received from
32             him  under  Section  7-173,  as  of  the  date   the
33             corresponding payment of earnings is payable to him.
34                  b.  Normal  credits  of  amounts  equal to each
 
                            -8-                LRB9204329EGfg
 1             payment of normal contributions received  from  him,
 2             as of the date the corresponding payment of earnings
 3             is payable to him, and normal contributions made for
 4             the  purpose  of  establishing  out-of-state service
 5             credits as permitted under the conditions set  forth
 6             in paragraph 6 of this subsection (a).
 7                  c.  Municipality  credits in an amount equal to
 8             1.4  times  the   normal   credits,   except   those
 9             established  by  out-of-state service credits, as of
10             the date of computation  of  any  benefit  if  these
11             credits would increase the benefit.
12                  d.  Survivor  credits  equal to each payment of
13             survivor    contributions    received    from    the
14             participating  employee   as   of   the   date   the
15             corresponding  payment  of  earnings is payable, and
16             survivor  contributions  made  for  the  purpose  of
17             establishing out-of-state service credits.
18             3.  For periods of temporary and total and permanent
19        disability benefits, each employee  receiving  disability
20        benefits  shall  be  granted  creditable  service for the
21        period during  which  disability  benefits  are  payable.
22        Normal  and  survivor  credits,  based  upon  the rate of
23        earnings applied for disability benefits, shall  also  be
24        granted  if such credits would result in a higher benefit
25        to any such employee or his beneficiary.
26             4.  For authorized leave of absence without pay:   A
27        participating  employee  shall  be  granted  credits  and
28        creditable  service  for  periods  of authorized leave of
29        absence without pay under the following conditions:
30                  a.  An application for credits  and  creditable
31             service is submitted to the board while the employee
32             is  in  a  status of active employment, and within 2
33             years after termination  of  the  leave  of  absence
34             period  for which credits and creditable service are
 
                            -9-                LRB9204329EGfg
 1             sought.
 2                  b.  Not  more  than  12  complete   months   of
 3             creditable  service  for authorized leave of absence
 4             without  pay  shall  be  counted  for  purposes   of
 5             determining any benefits payable under this Article.
 6                  c.  Credits  and  creditable  service  shall be
 7             granted for leave of absence only if such  leave  is
 8             approved  by the governing body of the municipality,
 9             including approval of the estimated cost thereof  to
10             the  municipality  as  determined  by  the fund, and
11             employee  contributions,  plus   interest   at   the
12             effective rate applicable for each year from the end
13             of the period of leave to date of payment, have been
14             paid  to  the fund in accordance with Section 7-173.
15             The  contributions  shall  be  computed   upon   the
16             assumption  earnings  continued during the period of
17             leave at the rate in effect when the leave began.
18                  d.  Benefits under the provisions  of  Sections
19             7-141,  7-146,  7-150 and 7-163 shall become payable
20             to employees on  authorized  leave  of  absence,  or
21             their  designated beneficiary, only if such leave of
22             absence is creditable hereunder, and if the employee
23             has at least one year of  creditable  service  other
24             than  the service granted for leave of absence.  Any
25             employee contributions due may be deducted from  any
26             benefits payable.
27                  e.  No  credits  or creditable service shall be
28             allowed for leave of absence without pay during  any
29             period of prior service.
30             5.  For  military  service:  The governing body of a
31        municipality or participating instrumentality  may  elect
32        to  allow  creditable  service to participating employees
33        who leave their employment to serve in the  armed  forces
34        of  the  United  States  for all periods of such service,
 
                            -10-               LRB9204329EGfg
 1        provided that the person  returns  to  active  employment
 2        within 90 days after completion of full time active duty,
 3        but  no  creditable  service shall be allowed such person
 4        for any period that can be used in the computation  of  a
 5        pension  or  any other pay or benefit, other than pay for
 6        active duty, for service  in  any  branch  of  the  armed
 7        forces  of  the  United  States.   If  necessary  to  the
 8        computation  of  any  benefit,  the board shall establish
 9        municipality credits for  participating  employees  under
10        this  paragraph  on  the  assumption  that  the  employee
11        received  earnings  at  the  rate received at the time he
12        left  the  employment  to  enter  the  armed  forces.   A
13        participating employee in the armed forces shall  not  be
14        considered  an employee during such period of service and
15        no  additional  death  and  no  disability  benefits  are
16        payable for death or disability during such period.
17             Any participating employee who left  his  employment
18        with  a  municipality or participating instrumentality to
19        serve in the armed forces of the United  States  and  who
20        again  became  a  participating  employee  within 90 days
21        after completion of full time active duty by entering the
22        service of  a  different  municipality  or  participating
23        instrumentality,  which  has  elected to allow creditable
24        service  for  periods  of  military  service  under   the
25        preceding  paragraph,  shall  also  be allowed creditable
26        service for his period of military service  on  the  same
27        terms  that  would  apply if he had been employed, before
28        entering  military  service,  by  the   municipality   or
29        instrumentality  which  employed  him  after  he left the
30        military  service  and  the  employer  costs  arising  in
31        relation to such grant of  creditable  service  shall  be
32        charged   to   and   paid   by   that   municipality   or
33        instrumentality.
34             Notwithstanding  the  foregoing,  any  participating
 
                            -11-               LRB9204329EGfg
 1        employee  shall  be  entitled  to  creditable  service as
 2        required by any federal  law  relating  to  re-employment
 3        rights  of  persons who served in the United States Armed
 4        Services.  Such creditable service shall be granted  upon
 5        payment  by the member of an amount equal to the employee
 6        contributions which would  have  been  required  had  the
 7        employee  continued  in  service  at  the  same  rate  of
 8        earnings  during the military leave period, plus interest
 9        at the effective rate.
10             5.1.  In  addition   to   any   creditable   service
11        established  under  paragraph  5  of this subsection (a),
12        creditable service may be granted for up to 24 months  of
13        service in the armed forces of the United States.
14             In  order to receive creditable service for military
15        service  under  this  paragraph  5.1,   a   participating
16        employee  must  (1)  apply  to  the  Fund  in writing and
17        provide  evidence  of  the  military  service   that   is
18        satisfactory   to  the  Board;  (2)  obtain  the  written
19        approval  of  the  current   employer;   and   (3)   make
20        contributions  to  the  Fund  equal  to  (i) the employee
21        contributions that  would  have  been  required  had  the
22        service  been  rendered  as a member, plus (ii) an amount
23        determined by the board to be  equal  to  the  employer's
24        normal  cost  of  the  benefits accrued for that military
25        service, plus (iii) interest on items (i) and  (ii)  from
26        the  date  of first membership in the Fund to the date of
27        payment.  If payment is made during  the  6-month  period
28        that  begins  3  months  after the effective date of this
29        amendatory Act of 1997, the required interest shall be at
30        the  rate  of  2.5%  per   year,   compounded   annually;
31        otherwise,  the  required interest shall be calculated at
32        the regular interest rate.
33             6.  For  out-of-state  service:  Creditable  service
34        shall be granted for service rendered to an  out-of-state
 
                            -12-               LRB9204329EGfg
 1        local  governmental  body under the following conditions:
 2        The  employee  had  participated  and   has   irrevocably
 3        forfeited  all  rights  to  benefits  in the out-of-state
 4        public employees pension system; the  governing  body  of
 5        his   participating   municipality   or   instrumentality
 6        authorizes  the  employee  to establish such service; the
 7        employee  has  2  years   current   service   with   this
 8        municipality   or   participating   instrumentality;  the
 9        employee makes a payment of contributions, which shall be
10        computed at 8% (normal) plus 2% (survivor)  times  length
11        of  service  purchased times the average rate of earnings
12        for the first 2 years of service with the municipality or
13        participating  instrumentality   whose   governing   body
14        authorizes  the  service established plus interest at the
15        effective rate on the date such credits are  established,
16        payable from the date the employee completes the required
17        2  years  of  current  service to date of payment.  In no
18        case shall more than 120 months of creditable service  be
19        granted under this provision.
20             7.  For retroactive service:  Any employee who could
21        have   but  did  not  elect  to  become  a  participating
22        employee, or who should have been a  participant  in  the
23        Municipal  Public  Utilities  Annuity  and  Benefit  Fund
24        before  that  fund was superseded, may receive creditable
25        service for the  period  of  service  not  to  exceed  50
26        months;  however, a current or former county board member
27        may establish credit under this paragraph 7 for more than
28        50 months of service as a member of the county  board  if
29        the  excess  over  50 months is approved by resolution of
30        the affected county board  filed  with  the  Fund  before
31        January 1, 1999.
32             Any  employee  who is a participating employee on or
33        after September  24,  1981  and  who  was  excluded  from
34        participation  by  the age restrictions removed by Public
 
                            -13-               LRB9204329EGfg
 1        Act 82-596 may receive creditable service for the period,
 2        on  or  after  January  1,  1979,  excluded  by  the  age
 3        restriction and, in addition, if the  governing  body  of
 4        the    participating    municipality   or   participating
 5        instrumentality elects to allow  creditable  service  for
 6        all  employees  excluded  by the age restriction prior to
 7        January 1, 1979, for service during the period  prior  to
 8        that  date excluded by the age restriction.  Any employee
 9        who  was  excluded  from   participation   by   the   age
10        restriction removed by Public Act 82-596 and who is not a
11        participating employee on or after September 24, 1981 may
12        receive  creditable  service for service after January 1,
13        1979.  Creditable service under this paragraph  shall  be
14        granted  upon payment of the employee contributions which
15        would  have  been  required  had  he  participated,  with
16        interest at the effective rate for each year from the end
17        of the period of service established to date of payment.
18             8.  For   accumulated   unused   sick   leave:     A
19        participating  employee  who is applying for a retirement
20        annuity shall be entitled to creditable service for  that
21        portion  of  the employee's accumulated unused sick leave
22        for which payment is not received, as follows:
23                  a.  Sick leave days shall be limited  to  those
24             accumulated under a sick leave plan established by a
25             participating    municipality    or    participating
26             instrumentality  which is available to all employees
27             or a class of employees.
28                  b.  Only sick leave  days  accumulated  with  a
29             participating    municipality    or    participating
30             instrumentality  with  which  the  employee  was  in
31             service  within 60 days of the effective date of his
32             retirement  annuity  shall  be  credited;   If   the
33             employee was in service with more than one employer,
34             during this period only the sick leave days with the
 
                            -14-               LRB9204329EGfg
 1             employer  with  which  the employee has the greatest
 2             number  of  unpaid  sick   leave   days   shall   be
 3             considered.
 4                  c.  The  creditable  service  granted  shall be
 5             considered solely for the purpose of  computing  the
 6             amount  of  the  retirement annuity and shall not be
 7             used  to  establish  any  minimum   service   period
 8             required  by  any  provision of the Illinois Pension
 9             Code, the effective date of the retirement  annuity,
10             or the final rate of earnings.
11                  d.  The creditable service shall be at the rate
12             of  1/20 of a month for each full sick day, provided
13             that no more than 12 months may  be  credited  under
14             this subdivision 8.
15                  e.  Employee   contributions   shall   not   be
16             required   for   creditable   service   under   this
17             subdivision 8.
18                  f.  Each    participating    municipality   and
19             participating instrumentality with which an employee
20             has service within 60 days of the effective date  of
21             his  retirement  annuity  shall certify to the board
22             the number of accumulated  unpaid  sick  leave  days
23             credited  to the employee at the time of termination
24             of service.
25             9.  For service  transferred  from  another  system:
26        Credits  and  creditable  service  shall  be  granted for
27        service under Article 3, 4, 5, 14 or 16 of this  Act,  to
28        any  active  member  of  this  Fund,  and to any inactive
29        member who has been a county sheriff,  upon  transfer  of
30        such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
31        14-105.6  or  16-131.4,  and payment by the member of the
32        amount  by  which   (1)   the   employer   and   employee
33        contributions  that  would  have  been required if he had
34        participated in this Fund as a sheriff's law  enforcement
 
                            -15-               LRB9204329EGfg
 1        employee  during  the  period  for  which credit is being
 2        transferred, plus interest thereon at the effective  rate
 3        for  each  year,   compounded  annually, from the date of
 4        termination of the service  for  which  credit  is  being
 5        transferred  to  the  date  of  payment,  exceeds (2) the
 6        amount actually transferred to the Fund. Such transferred
 7        service shall be deemed to be service as a sheriff's  law
 8        enforcement employee for the purposes of Section 7-142.1.
 9        (b)  Creditable service - amount:
10             1.  One month of creditable service shall be allowed
11        for  each  month  for which a participating employee made
12        contributions as required under  Section  7-173,  or  for
13        which  creditable service is otherwise granted hereunder.
14        Not more than 1 month of service shall  be  credited  and
15        counted for 1 calendar month, and not more than 1 year of
16        service  shall  be  credited and counted for any calendar
17        year.  A calendar month means a nominal  month  beginning
18        on  the  first  day  thereof, and a calendar year means a
19        year beginning January 1 and ending December 31.
20             2.  A seasonal employee shall be given 12 months  of
21        creditable  service if he renders the number of months of
22        service normally required by the position in  a  12-month
23        period  and he remains in service for the entire 12-month
24        period.  Otherwise a fractional year of  service  in  the
25        number of months of service rendered shall be credited.
26             3.  An   intermittent   employee   shall   be  given
27        creditable service for  only  those  months  in  which  a
28        contribution is made under Section 7-173.
29        (c)  No   application   for   correction  of  credits  or
30    creditable service  shall  be  considered  unless  the  board
31    receives   an   application  for  correction  while  (1)  the
32    applicant  is  a  participating  employee   and   in   active
33    employment    with    a    participating    municipality   or
34    instrumentality, or  (2)  while  the  applicant  is  actively
 
                            -16-               LRB9204329EGfg
 1    participating in a pension fund or retirement system which is
 2    a   participating   system   under   the  Retirement  Systems
 3    Reciprocal Act.  A participating employee or other  applicant
 4    shall not be entitled to credits or creditable service unless
 5    the required employee contributions are made in a lump sum or
 6    in installments made in accordance with board rule.
 7        (d)  Upon  the granting of a retirement, surviving spouse
 8    or child annuity, a death benefit or a separation benefit, on
 9    account of any employee, all individual  accumulated  credits
10    shall  thereupon terminate. Upon the withdrawal of additional
11    contributions, the credits applicable thereto shall thereupon
12    terminate.   Terminated  credits  shall  not  be  applied  to
13    increase the benefits any remaining employee would  otherwise
14    receive under this Article.
15    (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)

16        (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
17        Sec.    7-141.   Retirement   annuities   -   Conditions.
18    Retirement annuities shall  be  payable  as  hereinafter  set
19    forth:
20        (a)  A  participating  employee who, regardless of cause,
21    is  separated  from  the   service   of   all   participating
22    municipalities     and    instrumentalities    thereof    and
23    participating  instrumentalities  shall  be  entitled  to   a
24    retirement annuity provided:
25             1.  He  is  at  least  age  55,  or in the case of a
26        person who is eligible to  have  his  annuity  calculated
27        under Section 7-142.1, he is at least age 50.;
28             2.  He  is  (i)  an employee who was employed by any
29        participating     municipality      or      participating
30        instrumentality  which had not elected to exclude persons
31        employed in positions normally requiring  performance  of
32        duty for less than 1000 hours per year or was employed in
33        a position normally requiring performance of duty for 600
 
                            -17-               LRB9204329EGfg
 1        hours  or  more  per  year  prior to such election by any
 2        participating     municipality      or      participating
 3        instrumentality  included  in and subject to this Article
 4        on or before the effective date of this amendatory Act of
 5        1981 which made such election  and  is  not  entitled  to
 6        receive  earnings  for  employment in a position normally
 7        requiring performance of duty for 600 hours or  more  per
 8        year    for    any    participating    municipality   and
 9        instrumentalities     thereof      and      participating
10        instrumentality;  or  (ii)  an  employee who was employed
11        only by a  participating  municipality  or  participating
12        instrumentality,   or   participating  municipalities  or
13        participating instrumentalities, which  have  elected  to
14        exclude   persons   in   positions   normally   requiring
15        performance  of  duty  for  less than 1000 hours per year
16        after the effective date of such exclusion or  which  are
17        included  under  and  subject  to  the  Article after the
18        effective date of this amendatory Act of 1981 and  elects
19        to exclude persons in such positions, and is not entitled
20        to receive earnings for employment in a position normally
21        requiring  performance of duty for 1000 hours or more per
22        year   by   such   a   participating   municipality    or
23        participating instrumentality.;
24             3.  The   amount   of   his   annuity,   before  the
25        application of paragraph (b)  of  Section  7-142,  is  at
26        least $10 per month.;
27             4.  If  he  first  became  a  participating employee
28        after December 31, 1961, he  has  at  least  8  years  of
29        service.  This service requirement shall not apply to any
30        participating employee, regardless of participation date,
31        if the General Assembly terminates the Fund.
32        (b)  Retirement annuities shall be payable:
33             1.  As provided in Section 7-119.;
34             2.  Except  as  provided  in item 3, upon receipt by
 
                            -18-               LRB9204329EGfg
 1        the fund of a written  application  by  the  board.   The
 2        effective  date  may  be no earlier than the first day of
 3        the  first  full  calendar  month  after  termination  of
 4        participating employment. not more than one year prior to
 5        the date of the receipt by the fund of the application;
 6             3.  Upon attainment of age 70 1/2 if the member  (i)
 7        is  no  longer in service, and (ii) is otherwise entitled
 8        to an annuity under this Article.;
 9             4.  To the beneficiary of the deceased annuitant for
10        the unpaid amount accrued to date of death, if any.
11        (c)  The amendment to subdivision (b)(2) of this  Section
12    made  by  this  amendatory  Act of the 92nd General Assembly,
13    removing the one  year  limitation  on  retroactive  annuity,
14    applies  to  every  person  who has not yet begun receiving a
15    retirement annuity, without  regard  to  whether  the  person
16    terminated  employment  prior  to  the effective date of this
17    amendatory Act.
18    (Source: P.A. 91-887, eff. 7-6-00.)

19        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
20        Sec. 7-152.  Disability benefits - Amount.  The amount of
21    the monthly temporary  and  total  and  permanent  disability
22    benefits  shall  be 50% of the participating employee's final
23    rate of earnings on the date disability was incurred, subject
24    to the following adjustments:
25        (a)  The amount of the monthly temporary  and  total  and
26    permanent  disability benefits shall be 60% (rather than 50%)
27    of the participating employee's final rate of earnings on the
28    date disability was  incurred,  if  the  date  of  disability
29    occurs after the employer files with the board an undertaking
30    to  be  responsible  for  the additional costs resulting from
31    this increase.  The undertaking may  provide  for  all  or  a
32    portion  of  those  additional  costs  to be collected by the
33    employer from its employees, through deductions from earnings
 
                            -19-               LRB9204329EGfg
 1    or in any other manner.  The undertaking may be terminated by
 2    the employer (or rejected by the board) at any time, in which
 3    case benefits granted thereafter shall be based  on  the  50%
 4    rate,  but  benefits  already  based on the 60% rate shall be
 5    unaffected by the termination of the undertaking.
 6        (a-5)  If the participating employee has a  reduced  rate
 7    of  earnings  at  the  time  his employment ceases because of
 8    disability, the rate of earnings shall  be  computed  on  the
 9    basis of his last 12 month period of full-time employment.
10        (b)  If  the  participating  employee  is  eligible for a
11    disability benefit under the Federal Social Security Act, the
12    amount of monthly disability benefits shall be  reduced,  but
13    not  to  less  than  $10  a  month, by the amount he would be
14    eligible to receive as a disability benefit under the Federal
15    Social Security Act, whether or not because of service  as  a
16    covered  employee under this Article.  The reduction shall be
17    effective as of the month the employee is eligible for Social
18    Security  disability  benefits.   The  Board  may  make  such
19    reduction if it appears that the employee may be so  eligible
20    pending  determination of eligibility and make an appropriate
21    adjustment if necessary after  such  determination.   If  the
22    employee,  because  of  his  refusal to accept rehabilitation
23    services under the Federal Rehabilitation Act of 1973 or  the
24    Federal  Social  Security  Act,  or  because  he is receiving
25    workers'  compensation  benefits,  has  his  Social  Security
26    benefits reduced or terminated, the disability benefit  shall
27    be  reduced as if the employee were receiving his full Social
28    Security disability benefit.
29        (c)  If the employee is over age 65, was not eligible for
30    a Social Security benefit immediately before reaching age  65
31    and  is  eligible  for  a  Social  Security old-age insurance
32    benefit, the amount of the monthly disability  benefit  shall
33    be  reduced,  but not to less than $10 a month, by the amount
34    of the old-age insurance benefit to  which  the  employee  is
 
                            -20-               LRB9204329EGfg
 1    entitled  whether  or not the employee applies for the Social
 2    Security old-age insurance benefit.  This reduction shall  be
 3    made  in  the  month  after  the  month in which the employee
 4    attains age 65.  However, if the  employee  was  receiving  a
 5    Social  Security  disability  benefit before reaching age 65,
 6    the disability benefits after  age  65  shall  be  determined
 7    under subsection (b) of this Section.
 8        (d)  The  amount  of  disability  benefits  shall  not be
 9    reduced by reason of any increase, other than  one  resulting
10    from  a  correction  in  the  employee's wage records, in the
11    amount of disability or old-age insurance benefits under  the
12    Federal  Social  Security  Act  which  takes effect after the
13    month of the initial reduction under paragraph (b) or (c)  of
14    this Section.
15        (e)  If  the  employee in any month receives compensation
16    from gainful employment which is more than 25% of  the  final
17    rate  of earnings on which his disability benefits are based,
18    the temporary disability benefit payable for that month shall
19    be reduced by an amount equal to such excess.
20        (f)  An employee who has been disabled for  at  least  30
21    days may return to work for the employer on a part-time basis
22    for  a  trial work period of up to one year, during which the
23    disability shall be deemed to continue.  Service credit shall
24    continue to accrue and the disability benefit shall  continue
25    to  be  paid  during  the  trial work period, but the benefit
26    shall be reduced by the amount of earnings  received  by  the
27    disabled  employee.   Return  to service on a full-time basis
28    shall terminate the trial work period.  The  reduction  under
29    this  subsection  (f)  shall  be in lieu of the reduction, if
30    any, required under subsection (e).
31        (g)  Beginning January 1, 1988, every total and permanent
32    disability benefit shall be increased by 3% of  the  original
33    amount  of  the  benefit,  not  compounded, on each January 1
34    following the later of (1) the date the total  and  permanent
 
                            -21-               LRB9204329EGfg
 1    disability  benefit  begins,  or  (2)  the date the total and
 2    permanent disability benefit would have begun if the employee
 3    had been paid a temporary disability benefit for 30 months.
 4    (Source: P.A. 87-740.)

 5        (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
 6        Sec. 7-156.  Surviving spouse annuities - amount.
 7        (a)  The amount of surviving spouse annuity shall be:
 8             (1).  Upon the death of  an  employee  annuitant  or
 9        such  person  entitled, upon application, to a retirement
10        annuity at date of death, (i) an amount equal to  1/2  of
11        the  retirement  annuity  which  was  or  would have been
12        payable exclusive of the  amount  so  payable  which  was
13        provided  from  additional  credits, and disregarding any
14        election made under paragraph (b) of Section 7-142,  plus
15        (ii)  an  annuity  which  could  be  provided at the then
16        attained age of the surviving spouse and under  actuarial
17        tables  then in effect, from the excess of the additional
18        credits, (excluding any such credits  used  to  create  a
19        reversionary annuity) used to provide the annuity granted
20        pursuant  to  paragraph  (a)(2)  of Section 7-142 of this
21        article over the total  annuity  payments  made  pursuant
22        thereto.
23             (2).  Upon  the death of a participating employee on
24        or after attainment of age 55, an amount equal to 1/2  of
25        the  retirement annuity which he could have had as of the
26        date of  death  had  he  then  retired  and  applied  for
27        annuity,  exclusive  of  the  portion thereof which could
28        have  been  provided   from   additional   credits,   and
29        disregarding  paragraph  (b)  of  Section  7-142, plus an
30        amount equal to the annuity which could be provided  from
31        the  total  of his accumulated additional credits at date
32        of death, on  the  basis  of  the  attained  age  of  the
33        surviving spouse on such date.
 
                            -22-               LRB9204329EGfg
 1             (3).  Upon  the  death  of  a participating employee
 2        before age 55, an amount equal to 1/2 of  the  retirement
 3        annuity which he could have had as of his attained age on
 4        the  date  of  death, had he then retired and applied for
 5        annuity, and the provisions of this Article that no  such
 6        annuity  shall  begin  until the employee has attained at
 7        least age  55  were  not  applicable,  exclusive  of  the
 8        portion  thereof  which  could  have  been  provided from
 9        additional credits  and  disregarding  paragraph  (b)  of
10        Section  7-142, plus an amount equal to the annuity which
11        could be provided  from  the  total  of  his  accumulated
12        additional  credits at date of death, on the basis of the
13        attained age of the surviving spouse on such date.
14        If a surviving spouse is more than 5 years  younger  than
15    the  deceased, that portion of the annuity which is not based
16    on additional credits shall be reduced in the  ratio  of  the
17    value  of  a life annuity of $1 per year at an age of 5 years
18    less than the attained age of the deceased, at the earlier of
19    the date of the death or  the  date  his  retirement  annuity
20    begins,  to the value of a life annuity of $1 per year at the
21    attained age of the surviving spouse on such date,  according
22    to actuarial tables approved by the Board.
23        In  computing  the  amount of a surviving spouse annuity,
24    incremental increases of retirement annuities to the date  of
25    death of the employee annuitant shall be considered.
26        (b)  Each  surviving spouse annuity payable on January 1,
27    1988 shall be increased on that date by 3%  of  the  original
28    amount  of  the  annuity.  Each surviving spouse annuity that
29    begins after January  1,  1988  shall  be  increased  on  the
30    January  1  next  occurring  after  the annuity begins, by an
31    amount equal to (i) 3% of the original amount thereof if  the
32    deceased  employee  was receiving a retirement annuity at the
33    time of his death; otherwise  (ii)  0.167%  of  the  original
34    amount  thereof  for  each  complete  month which has elapsed
 
                            -23-               LRB9204329EGfg
 1    since the date the annuity began.  However, if the death of a
 2    retirement annuitant occurs in the  month  of  December,  the
 3    initial  increase  under  this  subsection shall be effective
 4    with the first payment of the surviving  spouse  annuity;  in
 5    this  case, references in this Article to the original amount
 6    of the surviving spouse annuity shall be deemed to  refer  to
 7    the  calculated  amount  of  the annuity before the immediate
 8    increase was applied.
 9        On each January 1 after the date of the initial  increase
10    under this subsection, each surviving spouse annuity shall be
11    increased  by  3%  of  the  originally  granted amount of the
12    annuity.
13        The change in this subsection made by this amendatory Act
14    of the 92nd General Assembly applies to deaths  occurring  on
15    or  after  December  1,  2002,  without regard to whether the
16    deceased employee was in service on or  after  the  effective
17    date of this amendatory Act.
18    (Source: P.A. 85-941.)

19        (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
20        Sec.  7-158.   Surviving  spouse annuities - Options.  In
21    lieu of the surviving spouse annuity  an  eligible  surviving
22    spouse  shall  have the option of receiving other benefits as
23    follows:
24        1.  The surviving spouse of a participating employee  may
25    elect  to  receive  either  a  single  sum death benefit or a
26    surviving spouse annuity and the $5,000 $3,000 death  benefit
27    provided in Sections 7-163 and 7-164.
28        2.  The   surviving   spouse  of  an  employee,  who  has
29    separated from service and would  have  been  entitled  to  a
30    retirement  annuity  on  date  of death, may elect to receive
31    either a single sum  death  benefit  or  a  surviving  spouse
32    annuity  and  the  $5,000  $3,000  death  benefit provided in
33    Sections 7-163 and 7-164.
 
                            -24-               LRB9204329EGfg
 1        3.  If any surviving spouse annuity is payable  prior  to
 2    the  earliest age at which the recipient will become eligible
 3    for a  widows'  or  widowers'  insurance  benefit  under  the
 4    Federal Social Security Act, the recipient may elect that the
 5    annuity  payments  from  this fund shall exceed those payable
 6    after attaining such age by an amount not in  excess  of  the
 7    estimated  Social  Security  Benefit,  determined  as  of the
 8    effective date of the surviving spouse annuity, provided that
 9    in no case shall the total annuity payments made by this fund
10    exceed in actuarial value the annuity which would  have  been
11    paid had no such election been made.
12        4.  The  surviving  spouse  of  a participating employee,
13    whose annuity was suspended upon return to employment and who
14    had one year or more of service after his return,  may  apply
15    the  additional  service  credits to a supplemental surviving
16    spouse annuity and receive the $5,000 $3,000 death benefit or
17    apply the additional service credits to a  single  sum  death
18    benefit  and  forego  the $5,000 $3,000 death benefit payable
19    upon the death of an annuitant.
20        5.  The surviving spouse  of  a  participating  employee,
21    whose annuity was suspended upon return to employment and who
22    had  less  than  one  year of service after his return, shall
23    have  the  additional  service  credits  applied  towards   a
24    supplemental  surviving  spouse annuity and shall receive the
25    $5,000 $3,000 death benefit.
26    (Source: P.A. 85-941.)

27        (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
28        Sec. 7-164.  Death benefits - Amount.  The amount of  the
29    death benefit shall be:
30        1.  Upon  the death of an employee with at least one year
31    of service occurring  while  in  an  employment  relationship
32    (including  employees  drawing  disability  benefits)  with a
33    participating municipality or participating  instrumentality,
 
                            -25-               LRB9204329EGfg
 1    an amount equal to the sum of:
 2             (a)  The  employee's normal, additional and survivor
 3        credits, including interest credited thereto through  the
 4        end of the preceding calendar year, but excluding credits
 5        and interest thereon allowed for periods of disability.
 6             (b)  An  amount equal to the employee's annual final
 7        rate of earnings.  An employee who dies as  a  result  of
 8        injuries connected with his duties shall be considered to
 9        have a year of service for purposes of this benefit.
10        2.  Upon  the  death  of an employee with less than one 1
11    year of  service  occurring  while  in  the  service  of  any
12    participating  municipality  or  instrumentality,  an  amount
13    equal  to  the  sum of his accumulated normal, additional and
14    survivor credits  on  the  date  of  death,  excluding  those
15    credits  and  interest  thereon  allowed  during  periods  of
16    disability.
17        3.  Upon  the death of an employee who has separated from
18    service and was not entitled to a retirement annuity  on  the
19    date  of death, an amount equal to the sum of his accumulated
20    normal, survivor and additional credits on the date of  death
21    excluding  those  credits and interest thereon allowed during
22    periods of disability.
23        4.  Upon the  death  of  an  employee  in  an  employment
24    relationship, or an employee who has service and was entitled
25    to  a  retirement  annuity  on  the  date  of  death,  when a
26    surviving spouse or child annuity is awarded, $5,000 $3,000.
27        5.  Upon the death of an employee, who has separated from
28    service and was entitled to a retirement annuity on the  date
29    of  death,  and  no  surviving  spouse  or  child  annuity is
30    awarded,  $5,000  $3,000  plus  an  amount   equal   to   his
31    accumulated  normal,  survivor  and additional credits on the
32    date of death, excluding those credits  and  interest  earned
33    thereon allowed during periods of disability.
34        6.  Upon  the  death  of  an  employee  annuitant, $5,000
 
                            -26-               LRB9204329EGfg
 1    $3,000 and, unless a surviving spouse, child or  reversionary
 2    annuity  is  payable, the sum of (i) the excess of the normal
 3    and survivor credits, excluding those allowed during  periods
 4    of  disability,  which  the annuitant had as of the effective
 5    date of his annuity over the total annuities paid pursuant to
 6    paragraph (a) 1 of Section 7-142 to the date of  death,  plus
 7    (ii) the excess of the additional credits, excluding any such
 8    credits  used  to  create  a  reversionary  annuity,  used to
 9    provide the annuity granted pursuant to paragraph  (a)  2  of
10    Section  7-142  over the total annuity payments made pursuant
11    thereto to the time of death.
12        7.  Upon  the  death  of   an   annuitant   receiving   a
13    reversionary  annuity  or of a person designated to receive a
14    reversionary annuity prior to the receipt of such annuity the
15    sum of the additional credits  of  the  person  creating  the
16    reversionary  annuity  as  of  the  effective date of his own
17    retirement annuity over the reversionary annuity payments, if
18    any, made prior to the date of death  of  such  annuitant  or
19    person designated to receive the reversionary annuity.
20        8.  Upon   the   death   of   an  annuitant  receiving  a
21    beneficiary annuity which was  effective  before  January  1,
22    1986,  the  excess  of  the  death  benefit which was used to
23    provide the annuity, over the sum  of  all  annuity  payments
24    made  to  the  beneficiary.  Upon  the  death of an annuitant
25    receiving a beneficiary annuity effective January 1, 1986  or
26    thereafter,  the  sum  of  (i)  the  excess of the normal and
27    survivor credits, excluding those allowed during  periods  of
28    disability,  which the annuitant had as of the effective date
29    of his annuity over the  total  annuities  paid  pursuant  to
30    paragraph  (c)  of Section 7-165, to date of death, plus (ii)
31    the excess of the  additional  credits,  excluding  any  such
32    credits  used  to  create  a  reversionary  annuity,  used to
33    provide the annuity granted  pursuant  to  paragraph  (d)  of
34    Section  7-165  over the total annuity payments made pursuant
 
                            -27-               LRB9204329EGfg
 1    thereto to the time of death.
 2        9.  Upon the marriage prior to reaching  age  55  (except
 3    for a surviving spouse who remarries after December 31, 2000)
 4    or  death  of  a person receiving a surviving spouse annuity,
 5    unless a child annuity is payable, the sum of (i) the  excess
 6    of  the  normal and survivor credits, excluding those credits
 7    and interest thereon allowed during  periods  of  disability,
 8    attributable  to  the  employee  at the effective date of the
 9    annuity or date of death, whichever first occurred, over  the
10    total of all annuity payments attributable to paragraph (a) 1
11    of  Section  7-142  made  to the employee or surviving spouse
12    plus (ii) the excess of the additional credits, excluding any
13    such credits used to create a reversionary annuity or used to
14    provide the  annuity  attributable  to  paragraph  (a)  2  of
15    Section 7-142 over the total of such payments.
16        10.  Upon  the marriage, death or attainment of age 18 of
17    a  child  receiving  a  child  annuity,  if  no  other  child
18    annuities are payable, the sum  of  (i)  the  excess  of  the
19    normal  and  survivor  credits  excluding  those  credits and
20    interest thereon allowed during periods of disability, of the
21    employee at the effective date of  the  annuity  or  date  of
22    death,  whichever  first  occurred,  over  the  total annuity
23    payments attributable to paragraph (a)  1  of  Section  7-142
24    made to the employee, surviving spouse and children plus (ii)
25    the  excess  of  the  additional  credits, excluding any such
26    credits used  to  create  a  reversionary  annuity,  used  to
27    provide  the  annuity  attributable  to  paragraph  (a)  2 of
28    Section 7-142 over the total annuity  payments  made  to  the
29    employee, surviving spouse and children, pursuant thereto.
30        11.  Upon  the  death of the participating employee whose
31    annuity was suspended upon his return to employment:
32             a.  If  a  surviving  spouse  or  child  annuity  is
33        awarded, $5,000 $3,000;
34             b.  If no  surviving  spouse  or  child  annuity  is
 
                            -28-               LRB9204329EGfg
 1        awarded  and  he  had  less  than one year's service upon
 2        return, $5,000 $3,000 plus  the  excess  of  the  normal,
 3        survivor   and  additional  credits,  including  interest
 4        thereon, but excluding those allowed during a  period  of
 5        disability,  at  the  effective  date  of  the  suspended
 6        annuity,  plus  those  allowed after his return, over all
 7        annuity payments made to the employee;
 8             c.  If no  surviving  spouse  or  child  annuity  is
 9        awarded  and  he  has  one  year  or more of service upon
10        return, the higher of (a) the payment under  subparagraph
11        b  of this paragraph or (b) the payment under paragraph 1
12        of this  Section,  taking  into  consideration  only  the
13        service  and  credits  allowed after his return, plus the
14        excess of the normal, survivor  and  additional  credits,
15        including   interest  thereon,  excluding  those  allowed
16        during periods of disability, at the  effective  date  of
17        his  suspended  annuity over all annuity payments made to
18        the employee.
19        12.  The $3,000  or  $5,000  death  benefit  provided  in
20    paragraphs  4  and 6 shall not be payable to beneficiaries of
21    persons who terminated service prior to  September  8,  1971,
22    unless  the  payment  or  agreement  for  payment provided by
23    Section 7-144.2 of this Article is made prior to the date  of
24    death.
25        13.  The  increase  in certain death benefits from $1,000
26    to $3,000 provided by this amendatory Act of 1987 shall apply
27    only to deaths occurring on or after January 1, 1988.
28        The increase in certain death  benefits  from  $3,000  to
29    $5,000  provided  by  this amendatory Act of the 92nd General
30    Assembly applies  to  deaths  that  occur  on  or  after  the
31    effective  date  of  this  amendatory  Act, without regard to
32    whether the deceased person was in service on or  after  that
33    date.
34    (Source: P.A. 91-887, eff. 7-6-00.)
 
                            -29-               LRB9204329EGfg
 1        (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
 2        Sec.     7-172.      Contributions    by    participating
 3    municipalities and participating instrumentalities.
 4        (a)  Each    participating    municipality    and    each
 5    participating instrumentality shall make payment to the  fund
 6    as follows:
 7             1.  municipality    contributions   in   an   amount
 8        determined by applying the municipality contribution rate
 9        to  each  payment  of  earnings  paid  to  each  of   its
10        participating employees;
11             2.  an  amount  equal  to the employee contributions
12        provided by paragraphs (a)  and  (b)  of  Section  7-173,
13        whether or not the employee contributions are withheld as
14        permitted by that Section;
15             3.  all  accounts receivable, together with interest
16        charged thereon, as provided in Section 7-209;
17             4.  if  it  has  no  participating  employees   with
18        current  earnings, an amount payable which, over a period
19        of 20 years beginning with the year following an award of
20        benefit, will amortize, at the effective  rate  for  that
21        year,  any  negative  balance in its municipality reserve
22        resulting from the award.  This amount  when  established
23        will be payable as a separate contribution whether or not
24        it later has participating employees.
25        (b)  A  separate  municipality contribution rate shall be
26    determined for  each  calendar  year  for  all  participating
27    municipalities  together  with all instrumentalities thereof.
28    The municipality contribution rate shall  be  determined  for
29    participating instrumentalities as if they were participating
30    municipalities.   The municipality contribution rate shall be
31    the sum of the following percentages:
32             1.  The  percentage   of   earnings   of   all   the
33        participating     employees    of    all    participating
34        municipalities and participating instrumentalities which,
 
                            -30-               LRB9204329EGfg
 1        if paid over the entire period of their service, will  be
 2        sufficient  when combined with all employee contributions
 3        available for the payment of  benefits,  to  provide  all
 4        annuities  for  participating  employees,  and the $5,000
 5        $3,000 death benefit payable  under  Sections  7-158  and
 6        7-164,  such  percentage  to  be known as the normal cost
 7        rate.
 8             2.  The percentage of earnings of the  participating
 9        employees   of   each   participating   municipality  and
10        participating instrumentalities necessary to  adjust  for
11        the difference between the present value of all benefits,
12        excluding  temporary  and  total and permanent disability
13        and death benefits, to be provided for its  participating
14        employees  and  the  sum  of its accumulated municipality
15        contributions and the accumulated employee  contributions
16        and  the  present  value  of expected future employee and
17        municipality contributions pursuant to subparagraph 1  of
18        this paragraph (b).  This adjustment shall be spread over
19        the remainder of the period of 40 years from the first of
20        the year following the date of determination.
21             3.  The  percentage of earnings of the participating
22        employees  of  all   municipalities   and   participating
23        instrumentalities  necessary to provide the present value
24        of all  temporary  and  total  and  permanent  disability
25        benefits  granted  during  the most recent year for which
26        information is available.
27             4.  The percentage of earnings of the  participating
28        employees   of   all   participating  municipalities  and
29        participating instrumentalities necessary to provide  the
30        present  value  of  the  net  single  sum  death benefits
31        expected to become payable from the  reserve  established
32        under  Section  7-206 during the year for which this rate
33        is fixed.
34             5.  The percentage of earnings necessary to meet any
 
                            -31-               LRB9204329EGfg
 1        deficiency  arising  in   the   Terminated   Municipality
 2        Reserve.
 3        (c)  A  separate  municipality contribution rate shall be
 4    computed for each participating municipality or participating
 5    instrumentality for its sheriff's law enforcement employees.
 6        A  separate  municipality  contribution  rate  shall   be
 7    computed  for the sheriff's law enforcement employees of each
 8    forest preserve district that elects to have such  employees.
 9    For  the  period  from  January 1, 1986 to December 31, 1986,
10    such rate shall be the  forest  preserve  district's  regular
11    rate plus 2%.
12        In  the  event that the Board determines that there is an
13    actuarial deficiency in the account of any municipality  with
14    respect  to  a  person  who has elected to participate in the
15    Fund under Section 3-109.1 of this Code, the Board may adjust
16    the municipality's contribution rate so as to  make  up  that
17    deficiency  over  such reasonable period of time as the Board
18    may determine.
19        (d)  The Board  may  establish  a  separate  municipality
20    contribution   rate   for   all  employees  who  are  program
21    participants  employed  under   the   Federal   Comprehensive
22    Employment   Training   Act   by  all  of  the  participating
23    municipalities and instrumentalities.   The  Board  may  also
24    provide  that,  in  lieu  of a separate municipality rate for
25    these employees, a portion of the municipality  contributions
26    for  such  program participants shall be refunded or an extra
27    charge  assessed  so  that   the   amount   of   municipality
28    contributions  retained  or received by the fund for all CETA
29    program participants shall be an amount equal to  that  which
30    would  be  provided by the separate municipality contribution
31    rate for all such program  participants.   Refunds  shall  be
32    made to prime sponsors of programs upon submission of a claim
33    therefor and extra charges shall be assessed to participating
34    municipalities  and  instrumentalities.   In establishing the
 
                            -32-               LRB9204329EGfg
 1    municipality contribution rate as provided in  paragraph  (b)
 2    of   this   Section,  the  use  of  a  separate  municipality
 3    contribution rate for program participants or the refund of a
 4    portion of the municipality contributions, as  the  case  may
 5    be, may be considered.
 6        (e)  Computations  of municipality contribution rates for
 7    the following calendar  year  shall  be  made  prior  to  the
 8    beginning of each year, from the information available at the
 9    time  the  computations  are made, and on the assumption that
10    the  employees  in   each   participating   municipality   or
11    participating  instrumentality  at such time will continue in
12    service  until  the  end  of  such  calendar  year  at  their
13    respective rates of earnings at such time.
14        (f)  Any municipality which is  the  recipient  of  State
15    allocations  representing  that  municipality's contributions
16    for retirement annuity purposes on behalf of its employees as
17    provided in Section 12-21.16 of the Illinois Public Aid  Code
18    shall  pay  the allocations so received to the Board for such
19    purpose.  Estimates  of  State  allocations  to  be  received
20    during   any   taxable   year  shall  be  considered  in  the
21    determination of the municipality's tax rate  for  that  year
22    under  Section  7-171.   If  a  special  tax  is levied under
23    Section 7-171, none of the proceeds may be used to  reimburse
24    the municipality for the amount of State allocations received
25    and  paid  to the Board.  Any multiple-county or consolidated
26    health department which receives contributions from a  county
27    under  Section  11.2  of "An Act in relation to establishment
28    and  maintenance  of  county   and   multiple-county   health
29    departments",   approved   July   9,  1943,  as  amended,  or
30    distributions under Section 3 of  the  Department  of  Public
31    Health   Act,   shall   use   these   only  for  municipality
32    contributions by the health department.
33        (g)  Municipality contributions for the several  purposes
34    specified shall, for township treasurers and employees in the
 
                            -33-               LRB9204329EGfg
 1    offices  of  the  township treasurers who meet the qualifying
 2    conditions for coverage hereunder,  be  allocated  among  the
 3    several  school  districts  and  parts  of  school  districts
 4    serviced  by  such treasurers and employees in the proportion
 5    which the amount of school funds of each district or part  of
 6    a district handled by the treasurer bears to the total amount
 7    of all school funds handled by the treasurer.
 8        From  the funds subject to allocation among districts and
 9    parts of districts pursuant to the School Code, the  trustees
10    shall  withhold  the proportionate share of the liability for
11    municipality contributions imposed  upon  such  districts  by
12    this  Section,  in  respect  to  such township treasurers and
13    employees and remit the same to the Board.
14        The municipality contribution  rate  for  an  educational
15    service center shall initially be the same rate for each year
16    as  the regional office of education or school district which
17    serves as its  administrative  agent.   When  actuarial  data
18    become  available,  a  separate  rate shall be established as
19    provided in subparagraph (i) of this Section.
20        The municipality contribution rate for a  public  agency,
21    other  than  a vocational education cooperative, formed under
22    the Intergovernmental Cooperation Act shall initially be  the
23    average  rate for the municipalities which are parties to the
24    intergovernmental  agreement.   When  actuarial  data  become
25    available, a separate rate shall be established  as  provided
26    in subparagraph (i) of this Section.
27        (h)  Each  participating  municipality  and participating
28    instrumentality shall make the contributions in  the  amounts
29    provided  in  this Section in the manner prescribed from time
30    to time by the Board and  all  such  contributions  shall  be
31    obligations  of  the  respective participating municipalities
32    and  participating  instrumentalities  to  this  fund.    The
33    failure  to  deduct  any  employee  contributions  shall  not
34    relieve   the  participating  municipality  or  participating
 
                            -34-               LRB9204329EGfg
 1    instrumentality of its obligation to this  fund.   Delinquent
 2    payments  of  contributions  due under this Section may, with
 3    interest,  be  recovered  by   civil   action   against   the
 4    participating       municipalities      or      participating
 5    instrumentalities.  Municipality  contributions,  other  than
 6    the  amount  necessary  for employee contributions and Social
 7    Security contributions, for periods of service  by  employees
 8    from  whose  earnings  no  deductions  were made for employee
 9    contributions to the fund, may be charged to the municipality
10    reserve    for    the    municipality    or     participating
11    instrumentality.
12        (i)  Contributions   by  participating  instrumentalities
13    shall be  determined  as  provided  herein  except  that  the
14    percentage  derived  under subparagraph 2 of paragraph (b) of
15    this Section, and the amount payable under subparagraph 5  of
16    paragraph   (a)  of  this  Section,  shall  be  based  on  an
17    amortization period of 10 years.
18    (Source: P.A. 90-448, eff. 8-16-97.)

19        (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
20        Sec. 7-205. Reserves for annuities.  Appropriate reserves
21    shall be created for payment of all annuities  granted  under
22    this  Article  at  the time such annuities are granted and in
23    amounts determined to be  necessary  under  actuarial  tables
24    adopted  by  the  Board upon recommendation of the actuary of
25    the fund.  All annuities payable  shall  be  charged  to  the
26    annuity reserve.
27        1.  Amounts credited to annuity reserves shall be derived
28    by  transfer of all the employee credits from the appropriate
29    employee reserves and by charges to the municipality  reserve
30    of  those  municipalities  in which the retiring employee has
31    accumulated service.  If a retiring employee has  accumulated
32    service  in  more  than  one  participating  municipality  or
33    participating instrumentality, aggregate municipality charges
 
                            -35-               LRB9204329EGfg
 1    shall  be  prorated  on a basis of the employee's earnings in
 2    case of concurrent service and creditable  service  in  other
 3    cases.
 4        2.  Supplemental annuities shall be handled as a separate
 5    annuity  and  amounts  to  be credited to the annuity reserve
 6    therefor shall be derived in the same  manner  as  a  regular
 7    annuity.
 8        3.  When  a  retirement annuity is granted to an employee
 9    with a spouse eligible for a surviving spouse annuity,  there
10    shall  be  credited  to the annuity reserve an amount to fund
11    the cost of both the retirement and surviving spouse  annuity
12    as a joint and survivors annuity.
13        4.  Beginning  January 1, 1989, when a retirement annuity
14    is awarded, an amount equal  to  the  present  value  of  the
15    $3,000  or $5,000 death benefit payable upon the death of the
16    annuitant shall be transferred to the  annuity  reserve  from
17    the  appropriate  municipality reserves in the same manner as
18    the transfer for annuities.
19        5.  All annuity reserves shall be revalued annually as of
20    December 31.  Beginning as of December 31,  1973,  adjustment
21    required  therein  by  such  revaluation  shall be charged or
22    credited to the earnings and experience variation reserve.
23        6.  There shall be credited to the annuity reserve all of
24    the payments made by annuitants under Section  7-144.2,  plus
25    an   additional  amount  from  the  earnings  and  experience
26    variation  reserve  to  fund  the  cost  of  the  incremental
27    annuities granted to annuitants making these payments.
28        7.  As of December 31, 1972, the excess  in  the  annuity
29    reserve  shall  be  transferred to the municipality reserves.
30    An  amount  equal  to  the  deficiency  in  the  reserve   of
31    participating      municipalities      and      participating
32    instrumentalities which have no participating employees shall
33    be  allocated  to  their  reserves.   The  remainder shall be
34    allocated in amounts proportionate to the present  value,  as
 
                            -36-               LRB9204329EGfg
 1    of  January  1,  1972,  of  annuities  of  annuitants  of the
 2    remaining  participating  municipalities  and   participating
 3    instrumentalities.
 4    (Source: P.A. 89-136, eff. 7-14-95.)

 5        (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
 6        Sec.  7-206.   Death Reserve.  All death benefit payments
 7    shall be charged to the Death Reserve, other than the  $3,000
 8    or  $5,000  death  benefits paid after December 31, 1988 upon
 9    the death of  an  annuitant.   All  contributions  for  death
10    purposes  under  Section  7-172(b)4  shall be credited to the
11    same reserve.  Whenever the balance in such  reserve  at  the
12    close of a year exceeds 100% of the average annual charges to
13    this account during the 3 preceding calendar years, the basic
14    actuarial  assumptions  upon  which municipality contribution
15    rates for these purposes are based,  shall  be  reviewed  and
16    revised  in such manner as is deemed necessary to reduce such
17    balance.
18    (Source: P.A. 89-136, eff. 7-14-95.)

19        Section 90.  The State Mandates Act is amended by  adding
20    Section 8.25 as follows:

21        (30 ILCS 805/8.25 new)
22        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
23    and 8 of this Act, no reimbursement by the State is  required
24    for  the  implementation  of  any  mandate  created  by  this
25    amendatory Act of the 92nd General Assembly.

26        Section  99.  Effective  date.   This  Act  takes  effect
27    January 1, 2002.

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