State of Illinois
92nd General Assembly
Legislation

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92_HB3588

 
                                               LRB9208376EGfg

 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 8-110, 8-113, 8-120, 8-137, 8-138, 8-150.1,
 6    8-158,  8-161,  8-168,  8-171,  8-230.7,   9-121.15,   9-134,
 7    9-134.3,  9-163, 9-179.3, 9-185, 9-186, 9-187, 9-219, 11-134,
 8    11-134.1,  11-145.1,  11-153,  11-156,  11-164,  11-167,  and
 9    14-105.7 and adding  Sections  8-230.9,  8-230.10,  9-121.14,
10    9-121.16, and 9-134.4 as follows:

11        (40 ILCS 5/8-110) (from Ch. 108 1/2, par. 8-110)
12        Sec. 8-110. Employer.  "Employer":
13        (1)  a city of more than 500,000 inhabitants;
14        (2)  or  the  Board  of  Education of the such city, with
15    respect to any of its employees who participate in this Fund;
16        (3)  the Chicago Housing Authority, with respect  to  any
17    of  its employees who participate in this Fund subject to the
18    provisions of Section 8-230.9;
19        (4)  the Public Building Commission  of  the  city,  with
20    respect to any of its employees who participate in this Fund;
21    and
22        (5)  to  which  this  Article  applies, or the Retirement
23    Board.
24    (Source: Laws 1968, p. 181.)

25        (40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
26        Sec. 8-113.  Municipal employee,  employee,  contributor,
27    or    participant.      "Municipal   employee",   "employee",
28    "contributor", or "participant":
29        (a)  Any  employee  of  an  employer  employed   in   the
30    classified  civil  service  thereof  other  than by temporary
 
                            -2-                LRB9208376EGfg
 1    appointment or in a position  excluded  or  exempt  from  the
 2    classified  service  by the Civil Service Act, or in the case
 3    of a city operating under a personnel ordinance, any employee
 4    of an employer employed in the classified or  career  service
 5    under  the provisions of a personnel ordinance, other than in
 6    a  provisional  or  exempt  position  as  specified  in  such
 7    ordinance or in rules and regulations formulated thereunder.
 8        (b)  Any employee in the service of  an  employer  before
 9    the Civil Service Act came in effect for the employer.
10        (c)  Any person employed by the board.
11        (d)  Any  person  employed  after  December 31, 1949, but
12    prior to January 1, 1984, in the service of the  employer  by
13    temporary  appointment  or  in  a  position  exempt  from the
14    classified service as set forth in the Civil Service Act,  or
15    in  a  provisional  or  exempt  position  as specified in the
16    personnel ordinance, who meets the following qualifications:
17        (1)  has  rendered  service  during  not  less  than   12
18    calendar  months  to  an employer as an employee, officer, or
19    official, 4 months of which must have been  consecutive  full
20    normal  working  months of service rendered immediately prior
21    to filing application to be included; and
22        (2)  files written application with the board,  while  in
23    the service, to be included hereunder.
24        (e)  After  December  31,  1949,  any  alderman  or other
25    officer or official of the  employer,  who  files,  while  in
26    office,  written  application  with  the board to be included
27    hereunder.
28        (f)  Beginning January 1, 1984, any person employed by an
29    employer other than the  Chicago  Housing  Authority  or  the
30    Public  Building  Commission of the city, whether or not such
31    person is serving by temporary appointment or in  a  position
32    exempt  from the classified service as set forth in the Civil
33    Service Act, or  in  a  provisional  or  exempt  position  as
34    specified  in  the  personnel  ordinance,  provided that such
 
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 1    person is  neither  (1)  an  alderman  or  other  officer  or
 2    official of the employer, nor (2) participating, on the basis
 3    of  such  employment, in any other pension fund or retirement
 4    system established under this Act.
 5        (g)  After December 31, 1959, any person employed in  the
 6    law  department  of  the city, or municipal court or Board of
 7    Election Commissioners of the city, who was a contributor and
 8    participant, on December 31, 1959, in the annuity and benefit
 9    fund in operation in the city on said date, by virtue of  the
10    Court  and Law Department Employees' Annuity Act or the Board
11    of Election Commissioners Employees' Annuity Act.
12        After  December  31,  1959,  the   foregoing   definition
13    includes  any  other person employed or to be employed in the
14    law department, or municipal court (other than as  a  judge),
15    or Board of Election Commissioners (if his salary is provided
16    by  appropriation  of  the  city  council of the city and his
17    salary paid by the city) -- subject, however, in the case  of
18    such  persons  not  participants  on  December  31,  1959, to
19    compliance with  the  same  qualifications  and  restrictions
20    otherwise  set  forth  in  this  Section  and  made generally
21    applicable to employees or officers of  the  city  concerning
22    eligibility for participation or membership.
23        (h)  After  December 31, 1965, any person employed in the
24    public library of the city -- and any other person -- who was
25    a contributor and participant, on December 31, 1965,  in  the
26    pension fund in operation in the city on said date, by virtue
27    of the Public Library Employees' Pension Act.
28        (i)  After  December 31, 1968, any person employed in the
29    house of correction of the city, who was  a  contributor  and
30    participant,  on  December  31,  1968, in the pension fund in
31    operation in the city on said date, by virtue of the House of
32    Correction Employees' Pension Act.
33        (j)  Any  person  employed  full-time  on  or  after  the
34    effective date of this amendatory Act  of  the  92nd  General
 
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 1    Assembly  by the Chicago Housing Authority who has elected to
 2    participate in this Fund as provided  in  subsection  (a)  of
 3    Section 8-230.9.
 4        (k)  Any person employed full-time by the Public Building
 5    Commission of the city who has elected to participate in this
 6    Fund as provided in subsection (d) of Section 8-230.7.
 7    (Source: P.A. 83-802.)

 8        (40 ILCS 5/8-120) (from Ch. 108 1/2, par. 8-120)
 9        Sec.  8-120.   Child or children.  "Child" or "children":
10    The natural child or  children,  or  any  child  or  children
11    legally adopted by an employee at least one year prior to the
12    date  any  benefit  for the child or children accrues, and so
13    adopted prior to the date the employee attained age 55.
14    (Source: P.A. 84-1028.)

15        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
16        Sec. 8-137.  Automatic increase in annuity.
17        (a)  An employee who  retired  or  retires  from  service
18    after  December  31,  1959 and before January 1, 1987, having
19    attained age 60 or more, shall, in January of the year  after
20    the year in which the first anniversary of retirement occurs,
21    have the amount of his then fixed and payable monthly annuity
22    increased  by 1 1/2%, and such first fixed annuity as granted
23    at retirement increased by a further 1  1/2%  in  January  of
24    each  year  thereafter.   Beginning  with January of the year
25    1972, such increases shall be at the rate of 2%  in  lieu  of
26    the aforesaid specified 1 1/2%, and beginning with January of
27    the  year  1984  such  increases  shall be at the rate of 3%.
28    Beginning in January of 1999, such increases shall be at  the
29    rate   of  3%  of  the  currently  payable  monthly  annuity,
30    including  any  increases  previously  granted   under   this
31    Article.   An  employee who retires on annuity after December
32    31, 1959 and before January 1, 1987, but before age 60, shall
 
                            -5-                LRB9208376EGfg
 1    receive such increases beginning in January of the year after
 2    the year in which he attains age 60.
 3        An employee who retires from service on or after  January
 4    1,  1987 shall, upon the first annuity payment date following
 5    the first anniversary of the date of retirement, or upon  the
 6    first  annuity  payment  date following attainment of age 60,
 7    whichever occurs later,  have  his  then  fixed  and  payable
 8    monthly  annuity  increased  by 3%, and such annuity shall be
 9    increased by an additional 3% of the original  fixed  annuity
10    on  the same date each year thereafter.  Beginning in January
11    of 1999, such increases shall be at the rate  of  3%  of  the
12    currently  payable  monthly  annuity, including any increases
13    previously granted under this Article.
14        (a-5)  Notwithstanding the provisions of subsection  (a),
15    upon  the  first annuity payment date following (1) the third
16    anniversary of retirement, (2) the attainment of age  53,  or
17    (3)  the  date  60  days  after  the  effective  date of this
18    amendatory Act of the 92nd General Assembly, whichever occurs
19    latest, the monthly pension of an  employee  who  retires  on
20    annuity  prior  to  the  attainment  of  age  60  who has not
21    received an increase under subsection (a) shall be  increased
22    by  3%,  and such annuity shall be increased by an additional
23    3% of the current payable  monthly  annuity,  including  such
24    increases  previously granted under this Article, on the same
25    date each year thereafter. The increases provided under  this
26    subsection   are   in  lieu  of  the  increases  provided  in
27    subsection (a).
28        (b)  Subsections  (a)  and  (a-5)   are   The   foregoing
29    provision  is  not  applicable  to  an  employee retiring and
30    receiving a term annuity,  as  herein  defined,  nor  to  any
31    otherwise  qualified  employee  who  retires  before he makes
32    employee contributions (at the 1/2 of 1% rate as provided  in
33    this  Act)  for this additional annuity for not less than the
34    equivalent of one full year. Such  employee,  however,  shall
 
                            -6-                LRB9208376EGfg
 1    make  arrangement to pay to the fund a balance of such 1/2 of
 2    1% contributions, based on his final salary,  as  will  bring
 3    such  1/2  of 1% contributions, computed without interest, to
 4    the equivalent of or completion of one year's contributions.
 5        Beginning  with  January,  1960,  each   employee   shall
 6    contribute  by  means  of salary deductions 1/2 of 1% of each
 7    salary payment, concurrently with  and  in  addition  to  the
 8    employee contributions otherwise made for annuity purposes.
 9        Each such additional contribution shall be credited to an
10    account  in  the  prior  service annuity reserve, to be used,
11    together with city contributions, to defray the cost  of  the
12    specified  annuity increments. Any balance in such account at
13    the beginning of each calendar year shall  be  credited  with
14    interest at the rate of 3% per annum.
15        Such    additional   employee   contributions   are   not
16    refundable, except to an employee who withdraws  and  applies
17    for  refund  under  this  Article,  and in cases where a term
18    annuity becomes payable.  In  such  cases  his  contributions
19    shall  be  refunded,  without  interest,  and charged to such
20    account in the prior service annuity reserve.
21    (Source: P.A. 90-766, eff. 8-14-98.)

22        (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
23        Sec. 8-138.  Minimum annuities - Additional provisions.
24        (a)  An employee who withdraws after age 65 or more  with
25    at  least 20 years of service, for whom the amount of age and
26    service and prior service annuity combined is less  than  the
27    amount  stated  in  this  Section,  shall  from  the  date of
28    withdrawal, instead of all annuities otherwise  provided,  be
29    entitled  to receive an annuity for life of $150 a year, plus
30    1 1/2% for each year of service, to and including  20  years,
31    and  1  2/3%  for  each year of service over 20 years, of his
32    highest average annual salary for  any  4  consecutive  years
33    within the last 10 years of service immediately preceding the
 
                            -7-                LRB9208376EGfg
 1    date of withdrawal.
 2        An  employee  who  withdraws  after  20  or more years of
 3    service, before age 65, shall be entitled to such annuity, to
 4    begin not earlier than upon attained age of 55 years if under
 5    such age at withdrawal, reduced by 2% for each full  year  or
 6    fractional  part  thereof  that his attained age is less than
 7    65, plus an additional 2% reduction for  each  full  year  or
 8    fractional part thereof that his attained age when annuity is
 9    to  begin  is less than 60 so that the total reduction at age
10    55 shall be 30%.
11        (b)  An employee who withdraws after July 1, 1957, at age
12    60 or over, with 20 or more years of service,  for  whom  the
13    age  and  service and prior service annuity combined, is less
14    than the amount stated in this  paragraph,  shall,  from  the
15    date of withdrawal, instead of such annuities, be entitled to
16    receive  an annuity for life equal to 1 2/3% for each year of
17    service, of the highest  average  annual  salary  for  any  5
18    consecutive  years  within  the  last  10  years  of  service
19    immediately  preceding the date of withdrawal; provided, that
20    in the case of any employee who withdraws on or after July 1,
21    1971, such employee age 60 or over with 20 or more  years  of
22    service, shall receive an annuity for life equal to 1.67% for
23    each  of the first 10 years of service; 1.90% for each of the
24    next 10 years of service; 2.10% for each year of  service  in
25    excess of 20 but not exceeding 30; and 2.30% for each year of
26    service  in excess of 30, based on the highest average annual
27    salary for any 4 consecutive years within the last  10  years
28    of service immediately preceding the date of withdrawal.
29        An  employee  who withdraws after July 1, 1957 and before
30    January 1, 1988, with 20 or more years of service, before age
31    60 years is entitled to annuity, to begin  not  earlier  than
32    upon  attained  age  of  55  years,  if  under  such  age  at
33    withdrawal,  as  computed  in  the  last preceding paragraph,
34    reduced 0.25% for each full month or fractional part  thereof
 
                            -8-                LRB9208376EGfg
 1    that  his  attained age when annuity is to begin is less than
 2    60 if the employee was born before January 1, 1936,  or  0.5%
 3    for  each  such  month  if  the employee was born on or after
 4    January 1, 1936.
 5        Any employee born before January 1, 1936,  who  withdraws
 6    with 20 or more years of service, and any employee with 20 or
 7    more  years  of  service who withdraws on or after January 1,
 8    1988, may elect to receive, in lieu  of  any  other  employee
 9    annuity  provided  in this Section, an annuity for life equal
10    to 1.80% for each of the first 10 years of service, 2.00% for
11    each of the next 10 years of service, 2.20% for each year  of
12    service  in  excess of 20 but not exceeding 30, and 2.40% for
13    each year of service in excess of 30, of the highest  average
14    annual  salary for any 4 consecutive years within the last 10
15    years  of  service  immediately   preceding   the   date   of
16    withdrawal, to begin not earlier than upon attained age of 55
17    years,  if  under  such  age at withdrawal, reduced 0.25% for
18    each full month or fractional part thereof that his  attained
19    age  when annuity is to begin is less than 60; except that an
20    employee retiring on or after January 1, 1988, at age  55  or
21    over  but  less  than  age  60,  having  at least 35 years of
22    service, or an employee retiring on or after July 1, 1990, at
23    age 55 or over but less than age 60, having at least 30 years
24    of service, or an employee retiring on or after the effective
25    date of this amendatory Act of 1997, at age 55  or  over  but
26    less  than age 60, having at least 25 years of service, shall
27    not be subject to the reduction in retirement annuity because
28    of retirement below age 60.
29        However, in the case of an employee  who  retired  on  or
30    after  January  1, 1985 but before January 1, 1988, at age 55
31    or older and with at least 35 years of service, and  who  was
32    subject  under  this  subsection  (b)  to  the  reduction  in
33    retirement  annuity  because of retirement below age 60, that
34    reduction shall cease to be effective January  1,  1991,  and
 
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 1    the retirement annuity shall be recalculated accordingly.
 2        Any employee who withdraws on or after July 1, 1990, with
 3    20 or more years of service, may elect to receive, in lieu of
 4    any  other  employee  annuity  provided  in  this Section, an
 5    annuity for life equal to 2.20% for each year of  service  if
 6    withdrawal is before 60 days after the effective date of this
 7    amendatory  Act  of  the  92nd General Assembly, or 2.40% for
 8    each year of service if  withdrawal  is  60  days  after  the
 9    effective  date  of  this  amendatory Act of the 92nd General
10    Assembly or later, of the highest average annual  salary  for
11    any  4  consecutive years within the last 10 years of service
12    immediately preceding the date of withdrawal,  to  begin  not
13    earlier than upon attained age of 55 years, if under such age
14    at   withdrawal,   reduced  0.25%  for  each  full  month  or
15    fractional part thereof that his attained age when annuity is
16    to begin is less than 60; except that an employee retiring at
17    age 55 or over but less than age 60, having at least 30 years
18    of  service,  shall  not  be  subject  to  the  reduction  in
19    retirement annuity because of retirement below age 60.
20        Any employee who withdraws on or after the effective date
21    of this amendatory Act of 1997  with  20  or  more  years  of
22    service  may  elect to receive, in lieu of any other employee
23    annuity provided in this Section, an annuity for  life  equal
24    to  2.20%,  for each year of service, if withdrawal is before
25    60 days after the effective date of this  amendatory  Act  of
26    the  92nd General Assembly, or 2.40% for each year of service
27    if withdrawal is 60 days after the  effective  date  of  this
28    amendatory  Act of the 92nd General Assembly or later, of the
29    highest average annual salary for  any  4  consecutive  years
30    within the last 10 years of service immediately preceding the
31    date of withdrawal, to begin not earlier than upon attainment
32    of  age  55  (age 50 if the employee has at least 30 years of
33    service), reduced 0.25% for  each  full  month  or  remaining
34    fractional part thereof that the employee's attained age when
 
                            -10-               LRB9208376EGfg
 1    annuity  is to begin is less than 60; except that an employee
 2    retiring at age 50 or over with at least 30 years of  service
 3    or  at age 55 or over with at least 25 years of service shall
 4    not be subject to the reduction in retirement annuity because
 5    of retirement below age 60.
 6        The maximum annuity payable under part  (a)  and  (b)  of
 7    this  Section  shall not exceed 70% of highest average annual
 8    salary in the case of an employee who withdraws prior to July
 9    1, 1971, and 75% if withdrawal takes place on or  after  July
10    1, 1971 and prior to 60 days after the effective date of this
11    amendatory  Act  of  the  92nd  General  Assembly,  or 80% if
12    withdrawal is 60  days  after  the  effective  date  of  this
13    amendatory Act of the 92nd General Assembly or later. For the
14    purpose  of  the  minimum  annuity  provided  in this Section
15    $1,500 is considered the minimum annual salary for any  year;
16    and  the  maximum  annual  salary for the computation of such
17    annuity is $4,800 for any year before  1953,  $6000  for  the
18    years  1953 to 1956, inclusive, and the actual annual salary,
19    as  salary  is  defined  in  this  Article,  for   any   year
20    thereafter.
21        To  preserve  rights  existing  on December 31, 1959, for
22    participants and  contributors  on  that  date  to  the  fund
23    created  by  the  Court and Law Department Employees' Annuity
24    Act, who became participants in  the  fund  provided  for  on
25    January  1,  1960, the maximum annual salary to be considered
26    for such persons for the years 1955 and 1956 is $7,500.
27        (c)  For an employee receiving  disability  benefit,  his
28    salary  for  annuity purposes under paragraphs (a) and (b) of
29    this  Section,  for  all  periods   of   disability   benefit
30    subsequent  to  the  year  1956,  is  the amount on which his
31    disability benefit was based.
32        (d)  An employee with 20 or more years of service,  whose
33    entire   disability  benefit  credit  period  expires  before
34    attainment of age 55 while still  disabled  for  service,  is
 
                            -11-               LRB9208376EGfg
 1    entitled  upon  withdrawal  to  the larger of (1) the minimum
 2    annuity provided above, assuming  he  is  then  age  55,  and
 3    reducing  such  annuity to its actuarial equivalent as of his
 4    attained age on such date or (2) the  annuity  provided  from
 5    his age and service and prior service annuity credits.
 6        (e)  The  minimum  annuity provisions do not apply to any
 7    former municipal employee receiving an annuity from the  fund
 8    who  re-enters  service  as  a  municipal employee, unless he
 9    renders at least 3 years of additional service after the date
10    of re-entry.
11        (f)  An employee in service  on  July  1,  1947,  or  who
12    became a contributor after July 1, 1947 and before attainment
13    of  age  70,  who  withdraws  after age 65, with less than 20
14    years of service for whom the annuity has  been  fixed  under
15    this  Article shall, instead of the annuity so fixed, receive
16    an annuity as follows:
17        Such amount as he could have received had the accumulated
18    amounts for  annuity  been  improved  with  interest  at  the
19    effective   rate  to  the  date  of  his  withdrawal,  or  to
20    attainment of age 70, whichever is earlier, and had the  city
21    contributed  to such earlier date for age and service annuity
22    the amount that it would have contributed had he  been  under
23    age  65,  after  the date his annuity was fixed in accordance
24    with this Article, and assuming  his  annuity  were  computed
25    from  such  accumulations as of his age on such earlier date.
26    The annuity so computed shall not exceed  the  annuity  which
27    would  be  payable under the other provisions of this Section
28    if the employee was credited with 20  years  of  service  and
29    would qualify for annuity thereunder.
30        (g)  Instead  of the annuity provided in this Article, an
31    employee having attained age 65 with at  least  15  years  of
32    service  who  withdraws from service on or after July 1, 1971
33    and whose annuity computed under  other  provisions  of  this
34    Article   is   less  than  the  amount  provided  under  this
 
                            -12-               LRB9208376EGfg
 1    paragraph, is entitled to a minimum annuity for life equal to
 2    1% of the highest average annual salary, as salary is defined
 3    and limited in this  Section  for  any  4  consecutive  years
 4    within the last 10 years of service for each year of service,
 5    plus  the  sum  of  $25 for each year of service. The annuity
 6    shall not exceed 60% of such highest average annual salary.
 7        (g-1)  Instead of any other retirement  annuity  provided
 8    in  this  Article,  an  employee who has at least 10 years of
 9    service and withdraws from service on  or  after  January  1,
10    1999  may  elect  to  receive  a retirement annuity for life,
11    beginning no earlier than upon attainment of age 60, equal to
12    2.2% if withdrawal is before 60 days after the effective date
13    of this amendatory Act of the 92nd General Assembly  or  2.4%
14    if  withdrawal  is  60  days after the effective date of this
15    amendatory Act of the 92nd  General  Assembly  or  later,  of
16    final  average  salary for each year of service, subject to a
17    maximum of 75% of  final  average  salary  if  withdrawal  is
18    before  60  days  after the effective date of this amendatory
19    Act of the 92nd General Assembly, or 80% if withdrawal is  60
20    days  after  the effective date of this amendatory Act of the
21    92nd  General  Assembly  or  later.  For   the   purpose   of
22    calculating  this  annuity,  "final average salary" means the
23    highest average annual salary for any 4 consecutive years  in
24    the last 10 years of service.
25        (h)  The  minimum  annuities  provided under this Section
26    shall be paid in equal monthly installments.
27        (i)  The amendatory provisions of part  (b)  and  (g)  of
28    this Section shall be effective July 1, 1971 and apply in the
29    case  of  every  qualifying  employee withdrawing on or after
30    July 1, 1971.
31        (j)  The amendatory provisions of this amendatory Act  of
32    1985 (P.A. 84-23) relating to the discount of annuity because
33    of  retirement  prior  to  attainment  of  age 60, and to the
34    retirement formula, for those born before  January  1,  1936,
 
                            -13-               LRB9208376EGfg
 1    shall  apply  only  to qualifying employees withdrawing on or
 2    after July 18, 1985.
 3        (k)  Beginning on January 1, 1999, the minimum amount  of
 4    employee's  annuity  shall be $850 per month for life for the
 5    following classes of employees, without regard  to  the  fact
 6    that  withdrawal occurred prior to the effective date of this
 7    amendatory Act of 1998:
 8             (1)  any employee annuitant alive  and  receiving  a
 9        life annuity on the effective date of this amendatory Act
10        of 1998, except a reciprocal annuity;
11             (2)  any  employee  annuitant  alive and receiving a
12        term annuity on the effective date of this amendatory Act
13        of 1998, except a reciprocal annuity;
14             (3)  any employee annuitant alive  and  receiving  a
15        reciprocal   annuity   on  the  effective  date  of  this
16        amendatory Act of 1998, whose service in this fund is  at
17        least 5 years;
18             (4)  any employee annuitant withdrawing after age 60
19        on  or after the effective date of this amendatory Act of
20        1998, with at least 10 years of service in this fund.
21        The increases granted under items (1),  (2)  and  (3)  of
22    this subsection (k) shall not be limited by any other Section
23    of this Act.
24    (Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
25    90-766, eff. 8-14-98.)

26        (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
27        Sec. 8-150.1.  Minimum annuities for widows.   The  widow
28    (otherwise  eligible for widow's annuity under other Sections
29    of this Article 8) of an employee hereinafter described,  who
30    retires  from service or dies while in the service subsequent
31    to the effective date of this amendatory provision,  and  for
32    which  widow  the amount of widow's annuity and widow's prior
33    service annuity combined, fixed or provided  for  such  widow
 
                            -14-               LRB9208376EGfg
 1    under  other  provisions  of  this  Article  is less than the
 2    amount provided in this Section, shall, from  and  after  the
 3    date  her  otherwise provided annuity would begin, in lieu of
 4    such otherwise provided widow's  and  widow's  prior  service
 5    annuity,  be  entitled  to  the following indicated amount of
 6    annuity:
 7        (a)  The widow of any employee who dies while in  service
 8    on  or after the date on which he attains age 60 if the death
 9    occurs before July 1, 1990, or on or after the date on  which
10    he  attains  age  55  if the death occurs on or after July 1,
11    1990, with at least 20 years of service, or on or  after  the
12    date  on  which  he  attains age 50 if the death occurs on or
13    after the effective date of this amendatory Act of 1997  with
14    at least 30 years of service, shall be entitled to an annuity
15    equal to one-half of the amount of annuity which her deceased
16    husband  would have been entitled to receive had he withdrawn
17    from the service on the day immediately preceding the date of
18    his death, conditional upon such widow  having  attained  the
19    age  of  60  or  more  years on such date if the death occurs
20    before July 1, 1990, or age 55 or more if the death occurs on
21    or after July 1, 1990, or age 50 or more if the death  occurs
22    on  or  after  January  1, 1998 and the employee is age 50 or
23    over with at least 30 years of service or age 55 or over with
24    at least  25  years  of  service.    Except  as  provided  in
25    subsection  (k),  this  widow's  annuity  shall not, however,
26    exceed the sum of $500 a month if  the  employee's  death  in
27    service  occurs before January 23, 1987.  The widow's annuity
28    shall not be limited  to  a  maximum  dollar  amount  if  the
29    employee's  death  in  service occurs on or after January 23,
30    1987.
31        If the employee dies in service before July 1, 1990,  and
32    if  such  widow of such described employee shall not be 60 or
33    more years of age on such date of death, the amount  provided
34    in the immediately preceding paragraph for a widow 60 or more
 
                            -15-               LRB9208376EGfg
 1    years  of  age,  shall, in the case of such younger widow, be
 2    reduced by 0.25% for each month that her then attained age is
 3    less than 60 years if the employee was born before January 1,
 4    1936 or dies in service on or after January 1,  1988,  or  by
 5    0.5%  for  each month that her then attained age is less than
 6    60 years if the employee was born on or after  July  1,  1936
 7    and dies in service before January 1, 1988.
 8        If the employee dies in service on or after July 1, 1990,
 9    and  if  the widow of the employee has not attained age 55 on
10    or before the employee's date of death, the amount  otherwise
11    provided in this subsection (a) shall be reduced by 0.25% for
12    each  month that her then attained age is less than 55 years;
13    except that if the employee  dies  in  service  on  or  after
14    January  1,  1998 at age 50 or over with at least 30 years of
15    service or at age 55 or  over  with  at  least  25  years  of
16    service,  there  shall be no reduction due to the widow's age
17    if she has attained age 50 on or before the  employee's  date
18    of  death,  and  if  the  widow has not attained age 50 on or
19    before the employee's date  of  death  the  amount  otherwise
20    provided in this subsection (a) shall be reduced by 0.25% for
21    each month that her then attained age is less than 50 years.
22        (b)  The widow of any employee who dies subsequent to the
23    date  of  his retirement on annuity, and who so retired on or
24    after the date on which he attained the age  of  60  or  more
25    years  if  retirement  occurs  before  July 1, 1990, or on or
26    after the date on which he  attained  age  55  if  retirement
27    occurs  on  or  after July 1, 1990, with at least 20 years of
28    service, or on or after the date on which he attained age  50
29    if  the  retirement  occurs on or after the effective date of
30    this amendatory Act  of  1997  with  at  least  30  years  of
31    service, shall be entitled to an annuity equal to one-half of
32    the  amount of annuity which her deceased husband received as
33    of the date of his retirement on  annuity,  conditional  upon
34    such widow having attained the age of 60 or more years on the
 
                            -16-               LRB9208376EGfg
 1    date  of  her  husband's  retirement on annuity if retirement
 2    occurs before July 1, 1990, or age 55 or more  if  retirement
 3    occurs  on  or  after  July 1, 1990, or age 50 or more if the
 4    retirement on annuity occurs on or after January 1, 1998  and
 5    the  employee  is  age  50  or over with at least 30 years of
 6    service or age 55 or over with at least 25 years of service.
 7    Except as provided in subsection (k),  this  widow's  annuity
 8    shall  not,  however,  exceed  the sum of $500 a month if the
 9    employee's death occurs before January 23, 1987.  The widow's
10    annuity shall not be limited to a maximum  dollar  amount  if
11    the  employee's  death  occurs  on or after January 23, 1987,
12    regardless of the  date  of  retirement;  provided  that,  if
13    retirement  was  before  January  23,  1987,  the employee or
14    eligible spouse repays the excess spouse refund with interest
15    at the effective rate from the date of refund to the date  of
16    repayment.
17        If  the  date  of the employee's retirement on annuity is
18    before July 1, 1990, and if  such  widow  of  such  described
19    employee shall not have attained such age of 60 or more years
20    on  such  date  of  her  husband's retirement on annuity, the
21    amount provided in the immediately preceding paragraph for  a
22    widow  60  or  more years of age on the date of her husband's
23    retirement on annuity,  shall,  in  the  case  of  such  then
24    younger  widow,  be  reduced by 0.25% for each month that her
25    then attained age was less than 60 years if the employee  was
26    born  before January 1, 1936 or withdraws from  service on or
27    after January 1, 1988, or by 0.5% for  each  month  that  her
28    then  attained  age is less than 60 years if the employee was
29    born on or after January 1, 1936 and withdraws  from  service
30    before January 1, 1988.
31        If the date of the employee's retirement on annuity is on
32    or  after  July 1, 1990, and if the widow of the employee has
33    not attained age 55 by the date of the employee's  retirement
34    on  annuity, the amount otherwise provided in this subsection
 
                            -17-               LRB9208376EGfg
 1    (b) shall be reduced by 0.25% for each month  that  her  then
 2    attained  age  is  less  than  55  years;  except that if the
 3    employee retires on annuity on or after January  1,  1998  at
 4    age 50 or over with at least 30 years of service or at age 55
 5    or  over with at least 25 years of service, there shall be no
 6    reduction due to the widow's age if she has attained  age  50
 7    on  or  before the employee's date of death, and if the widow
 8    has not attained age 50 on or before the employee's  date  of
 9    death  the  amount  otherwise provided in this subsection (b)
10    shall be reduced by  0.25%  for  each  month  that  her  then
11    attained age is less than 50 years.
12        (c)  The   foregoing   provisions   relating  to  minimum
13    annuities for widows shall not apply  to  the  widow  of  any
14    former  municipal employee receiving an annuity from the fund
15    on August 9, 1965 or on the effective date of this amendatory
16    provision, who re-enters service  as  a  municipal  employee,
17    unless  such  employee renders at least 3 years of additional
18    service after the date of re-entry.
19        (d)  In computing the amount of annuity which the husband
20    specified in the foregoing paragraphs (a)  and  (b)  of  this
21    Section  would  have  been  entitled to receive, or received,
22    such amount shall be the annuity to which such husband  would
23    have been, or was entitled, before reduction in the amount of
24    his  annuity  for  the  purposes  of  the  voluntary optional
25    reversionary annuity provided  for  in  Sec.  8-139  of  this
26    Article, if such option was elected.
27        (e)  (Blank).
28        (f)  (Blank).
29        (g)  The  amendatory provisions of this amendatory Act of
30    1985 relating to annuity discount because of age  for  widows
31    of employees born before January 1, 1936, shall apply only to
32    qualifying  widows  of  employees  withdrawing  or  dying  in
33    service on or after July 18, 1985.
34        (h)  Beginning  on January 1, 1999, the minimum amount of
 
                            -18-               LRB9208376EGfg
 1    widow's annuity shall be $800 per  month  for  life  for  the
 2    following  classes of widows, without regard to the fact that
 3    the death of the employee occurred  prior  to  the  effective
 4    date of this amendatory Act of 1998:
 5             (1)  any  widow annuitant alive and receiving a life
 6        annuity on the effective date of this amendatory  Act  of
 7        1998, except a reciprocal annuity;
 8             (2)  any  widow annuitant alive and receiving a term
 9        annuity on the effective date of this amendatory  Act  of
10        1998, except a reciprocal annuity;
11             (3)  any  widow  annuitant  alive  and  receiving  a
12        reciprocal   annuity   on  the  effective  date  of  this
13        amendatory Act of 1998, whose employee  spouse's  service
14        in this fund was at least 5 years;
15             (4)  the widow of an employee with at least 10 years
16        of service in this fund who dies after retirement, if the
17        retirement  occurred  prior to the effective date of this
18        amendatory Act of 1998;
19             (5)  the widow of an employee with at least 10 years
20        of service in this fund who  dies  after  retirement,  if
21        withdrawal  occurs on or after the effective date of this
22        amendatory Act of 1998;
23             (6)  the widow of an employee who  dies  in  service
24        with  at  least  5  years of service in this fund, if the
25        death in service occurs on or after the effective date of
26        this amendatory Act of 1998.
27        The increases granted under items (1), (2), (3)  and  (4)
28    of  this  subsection  (h)  shall  not be limited by any other
29    Section of this Act.
30        (i)  The widow of an employee  who  retired  or  died  in
31    service  on or after January 1, 1985 and before July 1, 1990,
32    at age 55 or older, and with at least  35  years  of  service
33    credit,  shall  be  entitled  to  have  her  widow's  annuity
34    increased,  effective  January 1, 1991, to an amount equal to
 
                            -19-               LRB9208376EGfg
 1    50% of the retirement  annuity  that  the  deceased  employee
 2    received  on  the  date  of  retirement,  or  would have been
 3    eligible to receive if he had retired on  the  day  preceding
 4    the  date of his death in service, provided that if the widow
 5    had not attained  age  60  by  the  date  of  the  employee's
 6    retirement  or  death  in  service, the amount of the annuity
 7    shall be reduced by  0.25%  for  each  month  that  her  then
 8    attained   age  was  less  than  age  60  if  the  employee's
 9    retirement or death in service occurred on or  after  January
10    1,  1988, or by 0.5%  for each month that her attained age is
11    less than age 60 if the employee's  retirement  or  death  in
12    service occurred prior to January 1, 1988.  However, in cases
13    where  a  refund  of excess contributions for widow's annuity
14    has been paid by the Fund, the increase in  benefit  provided
15    by  this subsection (i) shall be contingent upon repayment of
16    the refund to the Fund with interest at  the  effective  rate
17    from the date of refund to the date of payment.
18        (j)  If  a  deceased  employee  is receiving a retirement
19    annuity at the time of death and  that  death  occurs  on  or
20    after  June 27, 1997, the widow may elect to receive, in lieu
21    of any other annuity provided under this Article, 50% of  the
22    deceased  employee's  retirement annuity at the time of death
23    reduced by 0.25% for each month that the widow's age  on  the
24    date  of  death  is less than 55; except that if the employee
25    dies on or after January 1, 1998 and withdrew from service on
26    or after June 27, 1997 at age 50 or over  with  at  least  30
27    years  of service or at age 55 or over with at least 25 years
28    of service, there shall be no reduction due  to  the  widow's
29    age  if  she  has attained age 50 on or before the employee's
30    date of death, and if the widow has not attained age 50 on or
31    before the employee's date  of  death  the  amount  otherwise
32    provided in this subsection (j) shall be reduced by 0.25% for
33    each  month that her age on the date of death is less than 50
34    years.  However,  in  cases  where   a   refund   of   excess
 
                            -20-               LRB9208376EGfg
 1    contributions  for widow's annuity has been paid by the Fund,
 2    the benefit provided by this  subsection  (j)  is  contingent
 3    upon repayment of the refund to the Fund with interest at the
 4    effective  rate  from  the  date  of  refund  to  the date of
 5    payment.
 6        (k)  For widows of employees who died before January  23,
 7    1987  after  retirement on annuity or in service, the maximum
 8    dollar amount limitation on widow's annuity  shall  cease  to
 9    apply,  beginning  with  the  first annuity payment after the
10    effective date of this amendatory Act of 1997; except that if
11    a refund of excess contributions for widow's annuity has been
12    paid by the Fund, the increase resulting from this subsection
13    (k) shall not begin before the refund has been repaid to  the
14    Fund,  together  with interest at the effective rate from the
15    date of the refund to the date of repayment.
16        (l)  In lieu  of  any  other  annuity  provided  in  this
17    Article,  an  eligible  spouse  of  an  employee  who dies in
18    service at least 60 days after the  effective  date  of  this
19    amendatory  Act of the 92nd General Assembly with at least 10
20    years of service shall be entitled to an annuity  of  50%  of
21    the  minimum formula annuity earned and accrued to the credit
22    of the employee at the date of death.  For  the  purposes  of
23    this  subsection,  the  minimum  formula  annuity  earned and
24    accrued to the credit of the employee is equal to  2.40%  for
25    each year of service of the highest average annual salary for
26    any  4  consecutive years within the last 10 years of service
27    immediately preceding the date of death, up to a  maximum  of
28    80% of the highest average annual salary.  This annuity shall
29    not  be reduced due to the age of the employee or spouse.  In
30    addition to any other  eligibility  requirements  under  this
31    Article,  the spouse is eligible for this annuity only if the
32    marriage was in effect for 10 full years or more.
33    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
34    90-766, eff. 8-14-98.)
 
                            -21-               LRB9208376EGfg
 1        (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
 2        Sec.  8-158.  Child's  annuity.   A  child's  annuity  is
 3    payable monthly after the death of  an employee parent to the
 4    child  until  the  child's  attainment  of  age 18, under the
 5    following conditions,  if  the  child  was  born  before  the
 6    employee  attained  age  65,  and  before  he  withdrew  from
 7    service:
 8             (a)  upon  death  resulting  from injury incurred in
 9        the performance of an act of duty;
10             (b)  upon death in service from any cause other than
11        injury incurred in the performance of an act of duty,  if
12        the  employee  has  at least 4 years of service after the
13        date of his original entry into service, and at  least  2
14        years after the date of his latest re-entry;
15             (b)  (c)  upon  death  of  an employee who withdraws
16        from service after age 55 (or after age 50 with at  least
17        30 years of service if withdrawal is on or after June 27,
18        1997)  and  who  has  entered  upon  or  is  eligible for
19        annuity.
20    Payment shall be made as provided in Section 8-125.
21    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

22        (40 ILCS 5/8-161) (from Ch. 108 1/2, par. 8-161)
23        Sec. 8-161. Ordinary  disability  benefit.   An  employee
24    while  under  age  65  and prior to January 1, 1979, or while
25    under age 70 and after January 1, 1979, who becomes  disabled
26    after  the  effective  date  as the result of any cause other
27    than injury incurred in the performance  of  duty,  shall  be
28    entitled   to   ordinary   disability   benefit  during  such
29    disability, after the first 30 days thereof.
30        The first payment shall be made not later than one  month
31    after  the  benefit  is  granted  and each subsequent payment
32    shall be made  not  later  than  one  month  after  the  last
33    preceding payment.
 
                            -22-               LRB9208376EGfg
 1        The disability benefit prescribed herein shall cease when
 2    the  first  of  the  following  dates  shall  occur  and  the
 3    employee,  if still disabled, shall thereafter be entitled to
 4    such annuity as is otherwise provided in this Article:
 5        (a)  the date disability ceases.
 6        (b)  the date the disabled employee attains  age  65  for
 7    disability commencing prior to January 1, 1979.
 8        (c)  the  date  the  disabled employee attains age 65 for
 9    disability commencing prior to attainment of age  60  in  the
10    service and after January 1, 1979.
11        (d)  the date the disabled employee attains the age of 70
12    for  disability  commencing after attainment of age 60 in the
13    service and after January 1, 1979.
14        (e)  the date the payments of the benefit shall exceed in
15    the aggregate, throughout the employee's  service,  a  period
16    equal  to 1/4 of the total service rendered prior to the date
17    of disability but  in  no  event  more  than  5  years.    In
18    computing  such  total  service  any  period during which the
19    employee  received  ordinary  disability  benefit  shall   be
20    excluded.
21        Any   employee  whose  ordinary  disability  benefit  was
22    terminated after January 1, 1979 by reason of his  attainment
23    of  age  65 and who continues disabled after age 65 may elect
24    before July 1, 1986 to have such benefits  resumed  beginning
25    at   the  time  of  such  termination  and  continuing  until
26    termination is required under this Section as amended by this
27    amendatory Act of 1985.  The amount payable to  any  employee
28    for  such  resumed benefit for any period shall be reduced by
29    the amount of any retirement annuity paid  to  such  employee
30    under  this  Article  for  the  same period of time or by any
31    refund paid in lieu of annuity.
32        Ordinary  disability  benefit  shall  be   50%   of   the
33    employee's salary at the date of disability.
34        For  ordinary  disability benefits paid before January 1,
 
                            -23-               LRB9208376EGfg
 1    2001, before any payment, an amount equal  to  less  the  sum
 2    ordinarily  deducted from salary for all annuity purposes for
 3    such period for which the ordinary disability benefit is made
 4    shall be deducted from  such  payment  and  credited  to  the
 5    employee  as  a  deduction  from salary for that period.  The
 6    sums so deducted shall be credited to the employee and  shall
 7    be  regarded,  for  annuity and refund purposes, as an amount
 8    contributed by him.
 9        For ordinary disability benefits paid on or after January
10    1, 2001, the fund shall credit  sums  equal  to  the  amounts
11    ordinarily  contributed  by  an employee for annuity purposes
12    for any period during which the  employee  receives  ordinary
13    disability,  and  those  sums  shall  be  deemed  for annuity
14    purposes and purposes of Section 8-173 as amounts contributed
15    by the employee.  These amounts credited for annuity purposes
16    shall not be credited for refund purposes.
17        If a participating employee is eligible for a  disability
18    benefit  under the federal Social Security Act, the amount of
19    ordinary disability benefit under this  Section  attributable
20    to  employment  with  the  Chicago  Housing  Authority or the
21    Public Building Commission of the city shall be reduced,  but
22    not  to  less  than  $10  per  month,  by the amount that the
23    employee would be eligible to receive as a disability benefit
24    under the federal Social Security Act, whether  or  not  that
25    federal  benefit  is  based  on service as a covered employee
26    under this Article.  The reduction shall be effective  as  of
27    the  month  the  employee is eligible for the social security
28    disability  benefit.   The  Board  may  make  this  reduction
29    pending determination of eligibility for the social  security
30    disability  benefit,  if  it  appears  to  the Board that the
31    employee may be eligible, and make an appropriate  adjustment
32    if  necessary  after  eligibility  for  the  social  security
33    disability  benefit  is determined.  If the employee's social
34    security disability benefit is reduced or terminated  because
 
                            -24-               LRB9208376EGfg
 1    of  a  refusal  to  accept  rehabilitation services under the
 2    federal Rehabilitation Act of  1973  or  the  federal  Social
 3    Security  Act or because the employee is receiving a workers'
 4    compensation benefit, the ordinary disability  benefit  under
 5    this  Section  shall  be  reduced  as  if  the  employee were
 6    receiving the full social security disability benefit.
 7        The amount of ordinary disability benefit  shall  not  be
 8    reduced  by  reason  of  any increase in the amount of social
 9    security disability benefit that takes effect after the month
10    of the initial reduction under this Section,  other  than  an
11    increase  resulting  from a correction in the employee's wage
12    records.
13    (Source: P.A. 84-23.)

14        (40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
15        Sec. 8-168. Refunds - Withdrawal before age  55  or  with
16    less than 10 years of service.
17        1.  An employee, without regard to length of service, who
18    withdraws  before  age 55, and any employee with less than 10
19    years of service  who  withdraws  before  age  60,  shall  be
20    entitled  to  a refund of the accumulated sums to his credit,
21    as of the date of withdrawal, for age and service annuity and
22    widow's annuity from amounts contributed  by  him,  including
23    interest  credited  and including amounts contributed for him
24    for age and service and widow's annuity purposes by the  city
25    while  receiving duty disability benefits; provided that such
26    amounts contributed by the  city  after  December  31,  1981,
27    while the employee is receiving duty disability benefits, and
28    amounts  credited to the employee for annuity purposes by the
29    fund after December 31, 2000, while the employee is receiving
30    ordinary disability  benefits,  shall  not  be  credited  for
31    refund purposes. If he is a present employee he shall also be
32    entitled  to  a  refund  of  the  accumulations from any sums
33    contributed by him, and applied to any municipal pension fund
 
                            -25-               LRB9208376EGfg
 1    superseded by this fund.
 2        2.  Upon receipt of the refund, the  employee  surrenders
 3    and forfeits all rights to any annuity or other benefits, for
 4    himself  and  for  any other persons who might have benefited
 5    through him; provided that he may have such period of service
 6    counted in computing the term of his service if he becomes an
 7    employee  before  age  65,  excepting  as  limited   by   the
 8    provisions  of  paragraph  (a)  (3)  of Section 8-232 of this
 9    Article relating to  the  basis  of  computing  the  term  of
10    service.
11        3.  Any such employee shall retain such right to a refund
12    of  such  amounts  when  he  shall  apply  for  same until he
13    re-enters the service or until the amount  of  annuity  shall
14    have  been  fixed as provided in this Article. Thereafter, no
15    such right shall exist in the case of any such employee.
16        4.  Any such municipal employee who shall have served  10
17    or  more  years  and  who  shall  not  withdraw  the  amounts
18    aforesaid to which he shall have a right of refund shall have
19    a right to annuity as stated in this Article.
20        5.  Any  such  municipal  employee  who shall have served
21    less than 10 years and who shall not withdraw the amounts  to
22    which  he  shall have a right to refund shall have a right to
23    have all such amounts and all other amounts to his credit for
24    annuity purposes on  date  of  his  withdrawal  from  service
25    retained  to  his  credit  and  improved by interest while he
26    shall be out of the service at the rate of 3 1/2% or  3%  per
27    annum  (whichever  rate  shall  apply under the provisions of
28    Section 8-155 of this Article) and used for annuity  purposes
29    for  his  benefit  and the benefit of any person who may have
30    any right to annuity through  him  because  of  his  service,
31    according to the provisions of this Article in the event that
32    he  shall  subsequently re-enter the service and complete the
33    number of years of service necessary to  attain  a  right  to
34    annuity;  but  such  sum shall be improved by interest to his
 
                            -26-               LRB9208376EGfg
 1    credit while he shall be out of the  service  only  until  he
 2    shall have become 65 years of age.
 3    (Source: P.A. 82-283.)

 4        (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
 5        Sec.  8-171.  Refund  in  lieu of annuity.  In lieu of an
 6    annuity, an employee who withdraws and  whose  annuity  would
 7    amount  to  less  than  $800  a  month for life, may elect to
 8    receive a refund of his accumulated contributions for annuity
 9    purposes, based on the amounts contributed by him.
10        The widow of any employee, eligible for annuity upon  the
11    death  of  her husband, whose widow's annuity would amount to
12    less than $800 a month for life,  may,  in  lieu  of  widow's
13    annuity,  elect  to  receive  a  refund  of  the  accumulated
14    contributions  for  annuity  purposes,  based  on the amounts
15    contributed by her deceased employee husband, but reduced  by
16    any amounts theretofore paid to him in the form of an annuity
17    or refund out of such accumulated contributions.
18        Accumulated   contributions  shall  mean  the  amounts  -
19    including the interest credited thereon - contributed by  the
20    employee  for age and service and widow's annuity to the date
21    of his withdrawal or death, whichever first occurs, including
22    any amounts contributed for him as  salary  deductions  while
23    receiving  duty  disability  benefits,  and, if not otherwise
24    included, any accumulations from sums contributed by him  and
25    applied to any pension fund superseded by this fund; provided
26    that  such amounts contributed by the city after December 31,
27    1981 while the employee is receiving duty disability benefits
28    and amounts credited to the employee for annuity purposes  by
29    the  fund  after  December  31,  2000  while  the employee is
30    receiving ordinary disability shall not be included.
31        The acceptance of such refund in lieu of widow's annuity,
32    on the part of a widow, shall not deprive a child or children
33    of the right to receive a child's annuity as provided for  in
 
                            -27-               LRB9208376EGfg
 1    Sections  8-158  and 8-159 of this Article, and neither shall
 2    the payment of a child's annuity in the case of  such  refund
 3    to  a  widow reduce the amount herein set forth as refundable
 4    to such widow electing a refund in lieu of widow's annuity.
 5    (Source: P.A. 91-887, eff. 7-6-00.)

 6        (40 ILCS 5/8-230.7)
 7        Sec.  8-230.7.   Service  rendered  to  Public   Building
 8    Commission.
 9        (a)  An   employee  or  former  employee  of  the  Public
10    Building Commission of the city who  has  established  credit
11    under  the  Fund  with regard to service to an employer other
12    than  the  Public  Building  Commission  of  the   city   may
13    contribute  to the Fund and receive credit for all periods of
14    full-time employment with by the Public  Building  Commission
15    created  by  the  employing  city  occurring prior to 60 days
16    after the effective date of this amendatory Act,  except  for
17    those  periods  for  which  the  employee  retains a right to
18    credit in another public pension fund  or  retirement  system
19    established  under  this  Code.  Such service credit shall be
20    paid for and granted on the same basis  and  under  the  same
21    conditions  as  are  applicable  in the case of employees who
22    make payment for past service under Section  8-230,  provided
23    that  the  person  must  also  pay the corresponding employer
24    contributions, and further provided  that  the  contributions
25    and  service  credit  are  permitted under Section 415 of the
26    Internal Revenue Code of 1986.  The  contributions  shall  be
27    based  on the salary actually received by the person from the
28    Commission for that employment.
29        (b)  A   person   establishing   service   credit   under
30    subsection (a) or electing to participate in the  Fund  under
31    subsection  (d)  may,  at  the  same  time, reinstate service
32    credit that was terminated through receipt  of  a  refund  by
33    repaying  to  the Fund the amount of the refund plus interest
 
                            -28-               LRB9208376EGfg
 1    at the effective rate from the date of the refund to the date
 2    of repayment.
 3        (c)  An eligible  person  may  establish  service  credit
 4    under  subsection  (a)  and  reinstate  service  credit under
 5    subsection (b) without returning  to  active  service  as  an
 6    employee  under  this Article, but the required contributions
 7    and repayment must be received by the Fund before the  person
 8    begins to receive a retirement annuity under this Article.
 9        (d)  Within  60 days after beginning full-time employment
10    with the Public Building Commission of the city (or within 60
11    days after the effective date of this amendatory Act  of  the
12    92nd  General  Assembly, whichever is later), a person having
13    service credits in this Fund or reinstating  service  credits
14    under  subsection  (b)  may elect to participate in this Fund
15    with respect to that Public Building  Commission  employment.
16    An  employee  who  participates  in this Fund with respect to
17    Public Building Commission employment shall not, with respect
18    to the same period of employment, participate  in  any  other
19    pension  plan  for  employees  of  the  Commission  for which
20    contributions are made by the Commission,  except  that  this
21    provision  shall not prevent an employee from making elective
22    contributions to a plan of deferred compensation during  that
23    period.  An election under this subsection (d), once made, is
24    irrevocable.
25        Participation  under this subsection shall be on the same
26    basis and under the same conditions as are applicable in  the
27    case  of  participating  employees  of  the  city.   Employee
28    contributions  shall be based on the salary actually received
29    by the employee for that employment.  Employer  contributions
30    shall  be  paid by the Public Building Commission rather than
31    the city, at a rate to be determined by the Retirement Board.
32    (Source: P.A. 90-766, eff. 8-14-98.)

33        (40 ILCS 5/8-230.9 new)
 
                            -29-               LRB9208376EGfg
 1        Sec.  8-230.9.   Service  rendered  to  Chicago   Housing
 2    Authority.
 3        (a)  Within  60 days after beginning full-time employment
 4    with the Chicago Housing Authority (or within 60  days  after
 5    the effective date of this amendatory Act of the 92nd General
 6    Assembly,  whichever  is  later),  a  person  having  service
 7    credits  in  this  Fund  or reinstating service credits under
 8    subsection (c) may elect to participate  in  this  Fund  with
 9    respect  to  that  Chicago  Housing Authority employment.  An
10    employee who  participates  in  this  Fund  with  respect  to
11    Chicago  Housing Authority employment shall not, with respect
12    to the same period of employment, participate  in  any  other
13    pension  plan  for  employees  of  the  Authority  for  which
14    contributions  are  made  by  the Authority, except that this
15    provision shall not prevent an employee from making  elective
16    contributions  to a plan of deferred compensation during that
17    period.  An election under this subsection (a), once made, is
18    irrevocable.
19        Participation under this subsection shall be on the  same
20    basis  and under the same conditions as are applicable in the
21    case  of  participating  employees  of  the  city.   Employee
22    contributions shall be based on the salary actually  received
23    by  the employee for that employment.  Employer contributions
24    shall be paid by the Chicago Housing  Authority  rather  than
25    the city, at a rate to be determined by the Retirement Board.
26        (b)  An  employee  or  former  employee  of  the  Chicago
27    Housing  Authority  who has established credit under the Fund
28    with regard to service to an employer other than the  Chicago
29    Housing  Authority  may  contribute  to  the Fund and receive
30    credit for all  periods  of  full-time  employment  with  the
31    Chicago  Housing  Authority  occurring prior to 60 days after
32    the effective date of this amendatory Act, except  for  those
33    periods  for  which the employee retains a right to credit in
34    another public pension fund or retirement system  established
 
                            -30-               LRB9208376EGfg
 1    under  this  Code.  Such service credit shall be paid for and
 2    granted on the same basis and under the  same  conditions  as
 3    are  applicable in the case of employees who make payment for
 4    past service under Section 8-230, provided  that  the  person
 5    must  also  pay the corresponding employer contributions, and
 6    further provided that the contributions  and  service  credit
 7    are  permitted under Section 415 of the Internal Revenue Code
 8    of 1986.  The contributions shall  be  based  on  the  salary
 9    actually  received  by the person from the Authority for that
10    employment.
11        (c)  A   person   establishing   service   credit   under
12    subsection (b) or electing to participate in the  Fund  under
13    subsection  (a)  may,  at  the  same  time, reinstate service
14    credit that was terminated through receipt  of  a  refund  by
15    repaying  to  the Fund the amount of the refund plus interest
16    at the effective rate from the date of the refund to the date
17    of repayment.
18        (d)  An eligible  person  may  establish  service  credit
19    under  subsection  (b)  and  reinstate  service  credit under
20    subsection (c) without returning  to  active  service  as  an
21    employee  under  this Article, but the required contributions
22    and repayment must be received by the Fund before the  person
23    begins to receive a retirement annuity under this Article.

24        (40 ILCS 5/8-230.10 new)
25        Sec.  8-230.10.   Service  rendered to IHDA.  An employee
26    with at least 10 years of creditable service in the Fund  may
27    establish  service  credit  for  up  to  7 years of full-time
28    employment by the Illinois Housing Development Authority  for
29    which  the  employee  does  not have credit in another public
30    pension fund or retirement system.
31        To establish  service  credit  under  this  Section,  the
32    employee  must  apply  to the Fund in writing by July 1, 2002
33    and pay to the Fund, at any time before beginning to  receive
 
                            -31-               LRB9208376EGfg
 1    a  retirement  annuity  under  this  Article, an amount to be
 2    determined  by  the  Fund,   consisting   of   (i)   employee
 3    contributions  based  on  the salary actually received by the
 4    person from the Illinois Housing  Development  Authority  for
 5    that employment and the contribution rates then in effect for
 6    employees  of  the  Fund,  (ii)  the  corresponding  employer
 7    contributions,  and  (iii) regular interest on the amounts in
 8    items (i) and (ii) from the date of the service to  the  date
 9    of payment.

10        (40 ILCS 5/9-121.14 new)
11        Sec.  9-121.14.  Benefit processors.  An employee with at
12    least 5 years of creditable service under  this  Article  may
13    purchase  service  credit  for  annuity  purposes for up to 5
14    years of time spent working as a  benefits  processor  for  a
15    firm  under  contract  with  the  Fund, by paying to the Fund
16    before July 1, 2002 an amount equal to  8.5%  of  the  salary
17    received   for   that   work   or,  if  that  salary  is  not
18    determinable, 8.5% of the employee's annual  salary  rate  on
19    the first day of service in the Fund for each year of service
20    credit  established under this Section.  The employee may not
21    make optional contributions under Section 9-121.6 or  9-179.3
22    for periods of credit established under this Section.

23        (40 ILCS 5/9-121.15)
24        Sec. 9-121.15. Transfer of credit from Article 14 system.
25    A  current or former An employee shall be entitled to service
26    credit in the Fund for any creditable service transferred  to
27    this  Fund  from the State Employees' Retirement System under
28    Section 14-105.7 of this Code.  Credit under this Fund  shall
29    be  granted  upon receipt by the Fund of the amounts required
30    to be  transferred  under  Section  14-105.7;  no  additional
31    contribution is necessary.
32    (Source: P.A. 90-511, eff. 8-22-97.)
 
                            -32-               LRB9208376EGfg
 1        (40 ILCS 5/9-121.16 new)
 2        Sec.  9-121.16.  Contractual  service  to  the Retirement
 3    Board.  A person  who  has  rendered  continuous  contractual
 4    services  (other than legal services) to the Retirement Board
 5    for a period of at least 5  years  may  establish  creditable
 6    service  in  the Fund for up to 10 years of those services by
 7    making written application to the Board before July  1,  2002
 8    and  paying  to  the  Fund  an amount to be determined by the
 9    Board, equal to the employee contributions  that  would  have
10    been  required  if  those  services  had been performed as an
11    employee.
12        For the purposes of calculating the required payment, the
13    Board may determine the applicable salary equivalent based on
14    the compensation received by the person for performing  those
15    contractual services.  The salary equivalent calculated under
16    this  Section shall not be used for determining final average
17    salary under Section 9-134 or any other  provisions  of  this
18    Code.
19        A  person  may  not  make  optional  contributions  under
20    Section  9-121.6 or 9-179.3 for periods of credit established
21    under this Section.

22        (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
23        Sec. 9-134.  Minimum annuity - Additional provisions.
24        (a)  An employee who withdraws after July 1, 1957 at  age
25    60  or  more  with  20 or more years of service, for whom the
26    amount of age and service and prior service annuity  combined
27    is  less than the amount stated in this Section from the date
28    of withdrawal, instead of all annuities otherwise provided in
29    this Article, is entitled to receive an annuity for  life  of
30    an  amount  equal  to 1 2/3% for each year of service, of his
31    highest average annual salary for  any  5  consecutive  years
32    within the last 10 years of service immediately preceding the
33    date of withdrawal; provided that in the case of any employee
 
                            -33-               LRB9208376EGfg
 1    who  withdraws on or after July 1, 1971, such employee age 60
 2    or over with 20 or more years of service, or who withdraws on
 3    or after January 1, 1982 and on or after attainment of age 65
 4    with 10 or more years of service, shall  instead  receive  an
 5    annuity  for  life  equal  to  1.67% for each of the first 10
 6    years of service; 1.90% for each of  the  next  10  years  of
 7    service;  2.10%  for each year of service in excess of 20 but
 8    not exceeding 30; and 2.30%  for  each  year  of  service  in
 9    excess  of 30, based on the highest average annual salary for
10    any 4 consecutive years within the last 10 years  of  service
11    immediately preceding the date of withdrawal.
12        An  employee  who withdraws after July 1, 1957, but prior
13    to January 1, 1988, with 20 or more years of service,  before
14    age  60 is entitled to annuity, to begin not earlier than age
15    55, if under such age at withdrawal, as computed in the  last
16    preceding paragraph, reduced 1/2 of 1% for each full month or
17    fractional part thereof that his attained age when annuity is
18    to  begin is less than 60 to the end that the total reduction
19    at age 55 shall be 30%, except that an employee  retiring  at
20    age 55 or over but less than age 60, having at least 35 years
21    of  service,  shall  not  be  subject to the reduction in his
22    retirement annuity because of retirement below age 60.
23        An employee who withdraws on or after  January  1,  1988,
24    with  20  or  more  years  of  service  and before age 60, is
25    entitled to annuity as computed above, to begin  not  earlier
26    than  age  50 if under such age at withdrawal, reduced 1/2 of
27    1% for each full month or fractional part  thereof  that  his
28    attained age when annuity is to begin is less than 60, to the
29    end  that  the total reduction at age 50 shall be 60%, except
30    that an employee retiring at age 50 or over but less than age
31    60, having at least 30 years of service, shall not be subject
32    to the reduction in retirement annuity because of  retirement
33    below age 60.
34        An employee who withdraws on or after January 1, 1992 but
 
                            -34-               LRB9208376EGfg
 1    before  January  1,  1993,  at  age 60 or over with 5 or more
 2    years of service, may elect, in lieu of  any  other  employee
 3    annuity  provided  in this Section, to receive an annuity for
 4    life equal to 2.20%  for  each  of  the  first  20  years  of
 5    service,  and 2.40% for each year of service in excess of 20,
 6    based  on  the  highest  average  annual  salary  for  any  4
 7    consecutive  years  within  the  last  10  years  of  service
 8    immediately preceding the date of  withdrawal.   An  employee
 9    who withdraws on or after January 1, 1992, but before January
10    1,  1993,  on  or  after  attainment  of  age  55  but before
11    attainment of age 60 with 5 or  more  years  of  service,  is
12    entitled  to  elect  such  annuity,  but the annuity shall be
13    reduced 0.25% for each full month or fractional part  thereof
14    that  his  attained  age when the annuity is to begin is less
15    than age 60, to the end that the total reduction  at  age  55
16    shall  be  15%, except that an employee retiring at age 55 or
17    over but less than age  60,  having  at  least  30  years  of
18    service,  shall not be subject to the reduction in retirement
19    annuity because of retirement below  age  60.   This  annuity
20    benefit  formula  shall only apply to those employees who are
21    age 55 or over prior to January 1, 1993,  and  who  elect  to
22    withdraw  at  age  55 or over on or after January 1, 1992 but
23    before January 1, 1993.
24        An employee who withdraws on or after July  1,  1996  but
25    before August 1, 1996, at age 55 or over with 8 or more years
26    of  service, may elect, in lieu of any other employee annuity
27    provided in this Section, to  receive  an  annuity  for  life
28    equal to 2.20% for each of the first 20 years of service, and
29    2.40%  for each year of service in excess of 20, based on the
30    highest average annual salary for  any  4  consecutive  years
31    within the last 10 years of service immediately preceding the
32    date of withdrawal, but the annuity shall be reduced by 0.25%
33    for  each  full  month  or  fractional  part thereof that the
34    annuitant's attained age when the annuity is to begin is less
 
                            -35-               LRB9208376EGfg
 1    than age 60, unless the annuitant has at least  30  years  of
 2    service.
 3        The  maximum  annuity  under this paragraph (a) shall not
 4    exceed 70%  of  highest  average  annual  salary  for  any  5
 5    consecutive  years within the last 10 years of service in the
 6    case of an employee who withdraws prior to July 1, 1971,  and
 7    75%   of   the  highest  average  annual  salary  for  any  4
 8    consecutive  years  within  the  last  10  years  of  service
 9    immediately preceding the date of  withdrawal  if  withdrawal
10    takes  place on or after July 1, 1971 and prior to January 1,
11    1988, and 80% of the highest average annual salary for any  4
12    consecutive  years  within  the  last  10  years  of  service
13    immediately  preceding  the  date of withdrawal if withdrawal
14    takes place on or after  January  1,  1988.  Fifteen  hundred
15    dollars  shall  be  considered  the  minimum amount of annual
16    salary for any year, and the maximum shall be his  salary  as
17    defined  in  this  Article,  except that for the years before
18    1957 and subsequent to 1952 the maximum annual salary  to  be
19    considered  shall be $6,000, and for any year before the year
20    1953, $4,800.
21        (b)  Any employee who withdraws on or after July 1,  1985
22    but  prior  to  January 1, 1988, at age 60 or over with 10 or
23    more years of service, may elect in lieu of  the  benefit  in
24    paragraph  (a)  to receive an annuity for life equal to 2.00%
25    for each year of service, based on the highest average annual
26    salary for any 4 consecutive years within the last  10  years
27    of  service immediately preceding the date of withdrawal.  An
28    employee who withdraws on or after July 1, 1985, but prior to
29    January 1, 1988, with 10 or more years of service, but before
30    age 60, is entitled to  elect  such  annuity,  to  begin  not
31    earlier  than  age  55, but the annuity shall be reduced 0.5%
32    for each full month  or  fractional  part  thereof  that  his
33    attained age when the annuity is to begin is less than 60, to
34    the  end  that  the  total  reduction at age 55 shall be 30%;
 
                            -36-               LRB9208376EGfg
 1    except that an employee retiring at age 55 or over  but  less
 2    than  age  60, having at least 30 years of service, shall not
 3    be subject to the reduction in retirement annuity because  of
 4    retirement below age 60.
 5        An employee who withdraws on or after January 1, 1988, at
 6    age  60  or over with 10 or more years of service, may elect,
 7    in lieu of the  benefit  in  paragraph  (a),  to  receive  an
 8    annuity  for  life  equal  to  2.20% for each of the first 20
 9    years of service, and 2.4% for each year of service in excess
10    of 20, based on the highest average annual salary for  any  4
11    consecutive  years  within  the  last  10  years  of  service
12    immediately preceding the date of withdrawal. An employee who
13    withdraws  on or after January 1, 1988, with 10 or more years
14    of service, but before age 60,  is  entitled  to  elect  such
15    annuity,  to  begin  not earlier than age 50, but the annuity
16    shall be reduced 0.5% for each full month or fractional  part
17    thereof that his attained age when the annuity is to begin is
18    less  than  60, to the end that the total reduction at age 50
19    shall be 60%, except that an employee retiring at age  50  or
20    over  but  less  than  age  60,  having  at least 30 years of
21    service, shall not be subject to the reduction in  retirement
22    annuity because of retirement below age 60.
23        An  employee  who withdraws on or after December 31, 2000
24    with 10 or more years of service may elect, in  lieu  of  any
25    other  retirement  annuity  provided  under  this Article, to
26    receive an annuity for life, beginning no earlier  than  upon
27    attainment  of  age  50, equal to 2.40% of his or her highest
28    average annual salary for any 4 consecutive years within  the
29    last  10  years  of service immediately preceding withdrawal,
30    for each year of service.  If the employee has less  than  30
31    years  of  service,  the annuity shall be reduced by 0.5% for
32    each full  month  or  remaining  fraction  thereof  that  the
33    employee's  attained age when the annuity is to begin is less
34    than 60.
 
                            -37-               LRB9208376EGfg
 1        The maximum annuity under this paragraph  (b)  shall  not
 2    exceed  75%  of  the  highest average annual salary for any 4
 3    consecutive  years  within  the  last  10  years  of  service
 4    immediately preceding the date of  withdrawal  if  withdrawal
 5    occurs  prior  to  January  1,  1988,  or  80% of the highest
 6    average annual salary for any 4 consecutive years within  the
 7    last  10  years  of service immediately preceding the date of
 8    withdrawal if withdrawal takes place on or after  January  1,
 9    1988.
10        The  provisions of this paragraph (b) do not apply to any
11    former County employee receiving an annuity  from  the  fund,
12    who re-enters service as a County employee, unless he renders
13    at  least  3  years  of  additional service after the date of
14    re-entry.
15        (c)  For an employee receiving  disability  benefit,  the
16    salary  for  annuity  purposes  under paragraph (a) or (b) of
17    this Section shall, for all  periods  of  disability  benefit
18    subsequent  to  the  year  1956,  be  the amount on which his
19    disability benefit was based.
20        (d)  A county employee with 20 or more years of  service,
21    whose  entire disability benefit credit period expires before
22    attainment of age 50 (age  55  if  expiration  occurs  before
23    January  1,  1988),  while  still  disabled  for  service  is
24    entitled upon withdrawal to the larger of:
25             (1)  The  minimum  annuity  provided above, assuming
26        that he is then age  50  (age  55  if  expiration  occurs
27        before January 1, 1988), and reducing such annuity to its
28        actuarial equivalent at his attained age on such date, or
29             (2)  the  annuity  provided from his age and service
30        and prior service annuity credits.
31        (e)  The minimum annuity provisions above do not apply to
32    any former county employee  receiving  an  annuity  from  the
33    fund,  who  re-enters service as a county employee, unless he
34    renders at least 3 years of additional service after the date
 
                            -38-               LRB9208376EGfg
 1    of re-entry.
 2        (f)  Any employee in service on  July  1,  1947,  or  who
 3    enters   service  thereafter  before  attaining  age  65  and
 4    withdraws after age 65 with less than 10 years of service for
 5    whom the annuity has been fixed under the foregoing  Sections
 6    of  this  Article,  shall,  instead  of the annuity so fixed,
 7    receive an annuity as follows:
 8        Such amount as he could have received had the accumulated
 9    amounts for  annuity  been  improved  with  interest  at  the
10    effective rate to the date of withdrawal, or to attainment of
11    age  70, whichever is earlier, and had the county contributed
12    to such earlier date for age and service annuity  the  amount
13    that  it  would  have  contributed  had he been under age 65,
14    after the date his annuity was fixed in accordance with  this
15    Article,  and  assuming  his  annuity were computed from such
16    accumulations as of his age on  such  earlier  date.  However
17    those  employees  who  before  July  1, 1953, made additional
18    contributions in accordance with this Article, the annuity so
19    computed under this paragraph shall not  exceed  the  annuity
20    which  would  be  payable  under the other provisions of this
21    Section if the employee concerned was credited with 20  years
22    of service and would qualify for annuity thereunder.
23        (g)  Instead of the annuity provided in this or any other
24    Section  of  this Article, an employee having attained age 65
25    with at least 15 years of service  may  elect  to  receive  a
26    minimum  annual  annuity  for life equal to 1% of the highest
27    average annual salary for any 4 consecutive years within  the
28    last 10 years of service immediately preceding retirement for
29    each  year  of  service, plus the sum of $25 for each year of
30    service provided that no such minimum annual annuity  may  be
31    greater than 60% of such highest average annual salary.
32        (h)  The    annuity   is   payable   in   equal   monthly
33    installments.
34        (i)  If,  by  operation  of  law,   a   function   of   a
 
                            -39-               LRB9208376EGfg
 1    governmental unit, as defined by Section 20-107 of this Code,
 2    is  transferred  in  whole  or in part to the county in which
 3    this Article 9 is created as set forth in Section 9-101,  and
 4    employees of the governmental unit are transferred as a class
 5    to such county, the earnings credits in the retirement system
 6    covering  the  governmental  unit  which  have been validated
 7    under Section 20-109 of this  Code  shall  be  considered  in
 8    determining the highest average annual salary for purposes of
 9    this Section 9-134.
10        (j)  The  annuity  being paid to an employee annuitant on
11    July 1, 1988, shall be increased on that date by 1% for  each
12    full year that has elapsed from the date the annuity began.
13        (k)  Notwithstanding  anything  to  the  contrary in this
14    Article 9, Section 20-131 shall not apply to an employee  who
15    withdraws on or after January 1, 1988, but prior to attaining
16    age 55.  Therefore, no employee shall be entitled to elect to
17    have  the alternative formula previously set forth in Section
18    20-122 prior to the amendatory  Act  of  1975  apply  to  any
19    annuity,  the  payment  of  which  commenced after January 1,
20    1988, but prior to such employee's attainment of age 55.
21    (Source: P.A. 86-272; 87-794.)

22        (40 ILCS 5/9-134.3)
23        Sec. 9-134.3.  Early retirement incentives.
24        (a)  To be eligible for the  benefits  provided  in  this
25    Section, a person must:
26             (1)  be  a  current  contributing member of the Fund
27        established under this Article who, on May  1,  1997  and
28        within 30 days prior to the date of retirement, is (i) in
29        active  payroll  status in a position of employment under
30        this Article or (ii) receiving disability benefits  under
31        Section  9-156  or  9-157;  or  else  be  eligible  under
32        subsection (g);
33             (2)  have  not  previously  retired  from  the Fund,
 
                            -40-               LRB9208376EGfg
 1        except as provided under subsection (g);
 2             (3)  file with the Board before October 1, 1997  (or
 3        the  date  specified in subsection (g), if applicable), a
 4        written application requesting the benefits  provided  in
 5        this Section;
 6             (4)  elect  to retire under this Section on or after
 7        September 1, 1997 and on or before February 28, 1998  (or
 8        the  date  established  under  subsection  (d) or (g), if
 9        applicable);
10             (5)  have attained age 55 on or before the  date  of
11        retirement and before February 28, 1998; and
12             (6)  have at least 10 years of creditable service in
13        the   Fund,   excluding  service  in  any  of  the  other
14        participating  systems  under  the   Retirement   Systems
15        Reciprocal  Act,  by the effective date of the retirement
16        annuity or February 28, 1998, whichever occurs first.
17        (b)  An employee who qualifies for the benefits  provided
18    under this Section shall be entitled to the following:
19             (1)  The    employee's    retirement   annuity,   as
20        calculated under the other provisions  of  this  Article,
21        shall be increased at the time of retirement by an amount
22        equal  to  1% of the employee's average annual salary for
23        the highest 4 consecutive years within the last 10  years
24        of  service, multiplied by the employee's number of years
25        of service credit in this Fund up  to  a  maximum  of  10
26        years;   except   that   the  total  retirement  annuity,
27        including any additional benefits elected  under  Section
28        9-121.6  or 9-179.3, shall not exceed 80% of that highest
29        average annual salary.
30             (2)  If  the  employee's   retirement   annuity   is
31        calculated under Section 9-134, the employee shall not be
32        subject to the reduction in retirement annuity because of
33        retirement  below age 60 that is otherwise required under
34        that Section.
 
                            -41-               LRB9208376EGfg
 1        (c)  A person who elects to retire under  the  provisions
 2    of  this  Section  thereby  relinquishes his or her right, if
 3    any, to have the  retirement  annuity  calculated  under  the
 4    alternative  formula  formerly set forth in Section 20-122 of
 5    the Retirement Systems Reciprocal Act.
 6        (d)  In  the  case  of  an   employee   whose   immediate
 7    retirement  could jeopardize public safety or create hardship
 8    for the employer, the deadline  for  retirement  provided  in
 9    subdivision  (a)(4)  of  this  Section  may  be extended to a
10    specified date,  no  later  than  August  31,  1998,  by  the
11    employee's   department   head,  with  the  approval  of  the
12    President of the County Board.  In the case  of  an  employee
13    who  is  not  employed  by  a  department  of the County, the
14    employee's  "department  head",  for  the  purposes  of  this
15    Section, shall be a person designated by the President of the
16    County Board.
17        (e)  Notwithstanding  Section  9-161,  an  annuitant  who
18    reenters  service  under  this  Article  after  receiving   a
19    retirement  annuity  based  on  benefits  provided under this
20    Section thereby forfeits the right  to  continue  to  receive
21    those  benefits  and shall have his or her retirement annuity
22    recalculated without the benefits provided in this Section.
23        (f)  This Section also applies to  the  Fund  established
24    under Article 10 of this Code.
25        (g)  A  person  who  (1)  was a participating employee on
26    November 30, 1996, (2) was laid off on or after  December  1,
27    1996  and  before  May  1, 1997 due to the elimination of the
28    employee's job or position, (3)  meets  the  requirements  of
29    items (3) through (6) of subsection (a), and (4) has not been
30    reinstated  as a Cook County employee since being laid off is
31    eligible for the benefits provided under this  Section.   For
32    such  a  person,  the  application required under subdivision
33    (a)(3) of this Section must be filed within 60 days after the
34    effective date of this amendatory Act  of  the  92nd  General
 
                            -42-               LRB9208376EGfg
 1    Assembly,  and  the date of retirement must be within 60 days
 2    after the effective date of this amendatory Act.
 3        In the case of a person eligible  under  this  subsection
 4    (g)  who  began  to  receive  a retirement annuity before the
 5    effective date of this amendatory Act, the annuity  shall  be
 6    recalculated  to include the increase under this Section, and
 7    that increase shall take effect on the first annuity  payment
 8    date following the date of application.
 9    (Source: P.A. 90-32, eff. 6-27-97.)

10        (40 ILCS 5/9-134.4 new)
11        Sec. 9-134.4.  Early retirement incentives.
12        (a)  To  be  eligible  for  the benefits provided in this
13    Section, a person must:
14             (1)  be a current contributing member  of  the  Fund
15        established  under  this  Article who, on January 1, 2001
16        and within 30 days prior to the date  of  retirement,  is
17        (i)  in active payroll status in a position of employment
18        under this Article or (ii) receiving disability  benefits
19        under Section 9-156 or 9-157;
20             (2)  have not previously retired from the Fund;
21             (3)  file  with  the  Board  before  June  1, 2002 a
22        written application requesting the benefits  provided  in
23        this Section;
24             (4)  elect  to retire under this Section on or after
25        June 1, 2002 and on or before November 30, 2002  (or  the
26        date established under subsection (d), if applicable);
27             (5)  have  attained  age 50 on or before the date of
28        retirement and before November 30, 2002; and
29             (6)  have at least 20 years of creditable service in
30        the  Fund,  excluding  service  in  any  of   the   other
31        participating   systems   under  the  Retirement  Systems
32        Reciprocal Act, by the effective date of  the  retirement
33        annuity or November 30, 2002, whichever occurs first.
 
                            -43-               LRB9208376EGfg
 1        (b)  An  employee who qualifies for the benefits provided
 2    under this Section shall be entitled to the following:
 3             (1)  The   employee's   retirement    annuity,    as
 4        calculated  under  the  other provisions of this Article,
 5        shall be increased at the time of retirement by an amount
 6        equal to 1% of the employee's average annual  salary  for
 7        the  highest 4 consecutive years within the last 10 years
 8        of service, multiplied by the employee's number of  years
 9        of  service  credit  in  this  Fund up to a maximum of 10
10        years;  except  that  the   total   retirement   annuity,
11        including  any  additional benefits elected under Section
12        9-121.6 or 9-179.3, shall not exceed 80% of that  highest
13        average annual salary.
14             (2)  If   the   employee's   retirement  annuity  is
15        calculated under Section 9-134, the employee shall not be
16        subject to the reduction in retirement annuity because of
17        retirement below age 60 that is otherwise required  under
18        that Section.
19        (c)  A  person  who elects to retire under the provisions
20    of this Section thereby relinquishes his  or  her  right,  if
21    any,  to  have  the  retirement  annuity calculated under the
22    alternative formula formerly set forth in Section  20-122  of
23    the Retirement Systems Reciprocal Act.
24        (d)  In   the   case   of  an  employee  whose  immediate
25    retirement could jeopardize public safety or create  hardship
26    for  the  employer,  the  deadline for retirement provided in
27    subdivision (a)(4) of this  Section  may  be  extended  to  a
28    specified date, no later than May 31, 2003, by the employee's
29    department  head,  with  the approval of the President of the
30    County Board.  In the case of an employee who is not employed
31    by a department of the  County,  the  employee's  "department
32    head",  for  the  purposes of this Section, shall be a person
33    designated by the President of the County Board.
34        (e)  Notwithstanding  Section  9-161,  an  annuitant  who
 
                            -44-               LRB9208376EGfg
 1    reenters  service  under  this  Article  after  receiving   a
 2    retirement  annuity  based  on  benefits  provided under this
 3    Section thereby forfeits the right  to  continue  to  receive
 4    those  benefits  and shall have his or her retirement annuity
 5    recalculated without the benefits provided in this Section.
 6        (f)  This Section also applies to  the  Fund  established
 7    under Article 10 of this Code.

 8        (40 ILCS 5/9-163) (from Ch. 108 1/2, par. 9-163)
 9        Sec.  9-163.  Restoration of rights.  An employee who has
10    withdrawn as  a  refund  the  amounts  credited  for  annuity
11    purposes,  and  who  re-enters service and serves for periods
12    comprising at least 2 years after the date of the last refund
13    paid to him, may have his annuity rights restored  by  making
14    application  to  the  board  in  writing for the privilege of
15    reinstating such rights and by compliance with the  following
16    provisions:
17             (a)  The  employee  shall  repay in full to the fund
18        while in service  all  refunds  received,  together  with
19        interest  at the effective rate from the application date
20        of such refund or refunds to the date of repayment.
21             (b)  If payment is not made in  a  single  sum,  the
22        repayment  may be made in installments by deductions from
23        salary or otherwise in such amounts as the  employee  may
24        elect  to  pay,  with  interest  at  the  effective  rate
25        accruing on unpaid balances.
26             (c)  If  the employee withdraws from service or dies
27        in service before full repayment is made, or  during  the
28        required return to service, the amounts repaid, including
29        interest  repaid  but  without further interest, shall be
30        refunded in accordance with the refund provisions of this
31        Article.
32        For an employee who applies  to  the  Fund  to  reinstate
33    credit  and  repay a refund between January 1, 1993 and March
 
                            -45-               LRB9208376EGfg
 1    1, 1993, the 2 year  minimum  period  of  subsequent  service
 2    required  under  item  (a)  shall  be  instead  a period of 6
 3    months.
 4        A person who establishes  service  credit  under  Section
 5    9-121.16 may, at the same time, reinstate credit in this Fund
 6    and   repay   a   refund   without   a   return  to  service,
 7    notwithstanding the other provisions of this Section.
 8    (Source: P.A. 87-1265.)

 9        (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
10        Sec. 9-179.3.  Optional plan of additional  benefits  and
11    contributions.
12        (a)  While  this  plan  is  in  effect,  an  employee may
13    establish additional optional credit for additional  optional
14    benefits   by  electing  in  writing  at  any  time  to  make
15    additional  optional   contributions.    The   employee   may
16    discontinue  making  the additional optional contributions at
17    any time by notifying the fund in writing.
18        (b)  Additional optional contributions for the additional
19    optional benefits shall be as follows:
20             (1)  For service after the  option  is  elected,  an
21        additional   contribution   of  3%  of  salary  shall  be
22        contributed to the fund on the same basis and  under  the
23        same  conditions as contributions required under Sections
24        9-170 and 9-176.
25             (2)  For service before the option  is  elected,  an
26        additional  contribution  of  3%  of  the  salary for the
27        applicable  period  of  service,  plus  interest  at  the
28        effective rate from the date of service to  the  date  of
29        payment.   All  payments for past service must be paid in
30        full before  credit  is  given.  No  additional  optional
31        contributions  may  be made for any period of service for
32        which credit has been previously forfeited by  acceptance
33        of  a  refund,  unless  the refund is repaid in full with
 
                            -46-               LRB9208376EGfg
 1        interest at the effective rate from the date of refund to
 2        the date of repayment.
 3        (c)  Additional optional benefits shall  accrue  for  all
 4    periods    of   eligible   service   for   which   additional
 5    contributions are paid in full.  The additional benefit shall
 6    consist of an additional 1% for  each  year  of  service  for
 7    which  optional  contributions  have  been paid, based on the
 8    highest average annual salary for  any  4  consecutive  years
 9    within the last 10 years of service immediately preceding the
10    date  of  withdrawal,  to be added to the employee retirement
11    annuity benefits as otherwise computed  under  this  Article.
12    The calculation of these additional benefits shall be subject
13    to  the  same  terms  and  conditions  as  are  used  in  the
14    calculation  of  retirement annuity under Section 9-134.  The
15    additional benefit shall be included in  the  calculation  of
16    the   automatic  annual  increase  in  annuity,  and  in  the
17    calculation of widow's annuity, where applicable.  However no
18    additional benefits will be granted  which  produce  a  total
19    annuity  greater  than the applicable maximum established for
20    that type of annuity in this Article, and additional benefits
21    shall  not  apply  to  any  benefit  computed  under  Section
22    9-128.1.
23        (d)  Refunds of additional optional  contributions  shall
24    be  made  on  the same basis and under the same conditions as
25    provided under Sections 9-164,  9-166  and  9-167.   Interest
26    shall be credited at the effective rate on the same basis and
27    under the same conditions as for other contributions.
28        (e)  Optional  contributions  shall be accounted for in a
29    separate Optional Contribution Reserve.
30        (f)  The tax levy, computed under Section 9-169, shall be
31    based on  employee  contributions  including  the  amount  of
32    optional additional employee contributions.
33        (g)  Service eligible under this Section may include only
34    service  as  an  employee of the County as defined in Section
 
                            -47-               LRB9208376EGfg
 1    9-108, and subject to Sections 9-219 and 9-220.   No  service
 2    granted  under  Section  9-121.1, 9-121.4 or 9-179.2 shall be
 3    eligible for optional service credit.   No  optional  service
 4    credit  may  be  established for any military service, or for
 5    any service under any other Article of this  Code.   Optional
 6    service   credit   may  be  established  for  any  period  of
 7    disability  paid  from  this  fund,  if  the  employee  makes
 8    additional  optional  contributions  for  such   periods   of
 9    disability.
10        (h)  This  plan  of  optional  benefits and contributions
11    shall not apply to any former county  employee  receiving  an
12    annuity  from  the  fund,  who  re-enters service as a County
13    employee, unless he renders at least 3  years  of  additional
14    service after the date of re-entry.
15        (i)  The   effective   date   of  the  optional  plan  of
16    additional benefits and contributions shall be July 1,  1985,
17    or the date upon which approval is received from the Internal
18    Revenue Service, whichever is later.
19        (j)  This  plan  of additional benefits and contributions
20    shall expire July 1, 2005 2002.  No additional  contributions
21    may  be made after that date, and no additional benefits will
22    accrue after that date.
23    (Source: P.A. 90-32, eff. 6-27-97; 90-460, eff. 8-17-97.)

24        (40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
25        Sec. 9-185.  Board created.
26        (a)  A board of 9 7 members shall constitute the board of
27    trustees authorized to  carry  out  the  provisions  of  this
28    Article.  The  board  of  trustees  shall  be  known  as "The
29    Retirement Board of the County Employees' Annuity and Benefit
30    Fund of .... County". The board shall consist  of  2  members
31    appointed and 7 5 members elected as hereinafter prescribed.
32        (b)  The appointed members shall be appointed as follows:
33    One  member  shall  be  appointed  by the comptroller of such
 
                            -48-               LRB9208376EGfg
 1    county, who may be the comptroller or some person  chosen  by
 2    him from among employees of the county, who are versed in the
 3    affairs  of the comptroller's office; and one member shall be
 4    appointed by the treasurer of such county,  who  may  be  the
 5    treasurer  or  some person chosen by him from among employees
 6    of  the  County  who  are  versed  in  the  affairs  of   the
 7    treasurer's office.
 8        The member appointed by the comptroller shall hold office
 9    for a term ending on December 1st of the first year following
10    the  year of appointment.  The member appointed by the county
11    treasurer shall hold office for a term ending on December 1st
12    of the second year following the year of appointment.
13        Thereafter, each appointed member shall be  appointed  by
14    the  officer  that  appointed his predecessor for a term of 2
15    years.
16        (c)  Three county employee members of the board shall  be
17    elected  as  follows:  within 30 days from and after the date
18    upon which this Article comes into effect in the county,  the
19    clerk  of  the county shall arrange for and hold an election.
20    One employee shall be elected for a term ending on the  first
21    day in the month of December of the first year next following
22    the  effective date; one for a term ending on December 1st of
23    the following year; and one for a term ending December 1st of
24    the second following year.
25        (d)  Beginning  December  1,  1988,  and  every  3  years
26    thereafter, an annuitant member of the board shall be elected
27    as follows:  the board shall arrange for and hold an election
28    in which only those participants who are currently  receiving
29    retirement or disability benefits under this Article shall be
30    eligible  to  vote and be elected.  Each such member shall be
31    elected to a term ending on the first day  in  the  month  of
32    December of the third following year.
33        (d-1)  Beginning  December  1,  2001,  and  every 3 years
34    thereafter, an annuitant member of the board shall be elected
 
                            -49-               LRB9208376EGfg
 1    as follows:  the board shall arrange for and hold an election
 2    in which only those participants who are currently  receiving
 3    retirement or disability benefits under this Article shall be
 4    eligible  to  vote and be elected.  Each such member shall be
 5    elected to a term ending on the first day  in  the  month  of
 6    December  of  the  third  following  year.  Until December 1,
 7    2001, the position created under this subsection (d-1) may be
 8    filled by the board as in the case of a vacancy.
 9        (e)  Beginning December 1, 1988,  if  a  Forest  Preserve
10    District  Employees'  Annuity  and  Benefit  Fund shall be in
11    force in such county and the board of this  fund  is  charged
12    with  administering  the  affairs of such annuity and benefit
13    fund for employees of such forest preserve district, a forest
14    preserve district member of the board shall be elected as  of
15    December  1,  1988,  and every 3 years thereafter as follows:
16    the board shall arrange for and hold  an  election  in  which
17    only those employees of such forest preserve district who are
18    contributors to the annuity and benefit fund for employees of
19    such  forest  preserve district shall be eligible to vote and
20    be elected.  Each such member shall  be  elected  to  a  term
21    ending on the first day in the month of December of the third
22    following year.
23        (f)  Beginning  December  1,  2001,  and  every  3  years
24    thereafter,  if a Forest Preserve District Employees' Annuity
25    and Benefit Fund is in force in the county and the  board  of
26    this  Fund  is charged with administering the affairs of that
27    annuity and benefit fund for employees of the forest preserve
28    district, a forest preserve district annuitant member of  the
29    board  shall  be elected as follows:  the board shall arrange
30    for and hold an election in which only those participants who
31    are currently receiving retirement benefits under Article  10
32    shall  be  eligible to vote and be elected.  Each such member
33    shall be elected to a term ending on the  first  day  in  the
34    month  of  December  of  the  third  following  year.   Until
 
                            -50-               LRB9208376EGfg
 1    December  1, 2001, the position created under this subsection
 2    (f) may be filled by the board as in the case of a vacancy.
 3    (Source: P.A. 85-964; 86-1488.)

 4        (40 ILCS 5/9-186) (from Ch. 108 1/2, par. 9-186)
 5        Sec. 9-186.  Board elections.  In each  year,  the  board
 6    shall  conduct a regular election, under rules adopted by it,
 7    at least 30 days prior to the expiration of the term of  each
 8    elected employee or annuitant member.
 9        To  be  eligible to be a county employee member, a person
10    must be an employee of the county and must have  at  least  5
11    years of service credit in that capacity by December 1 of the
12    year  of  election.   To  be eligible to be a forest preserve
13    district member, a person must be an employee of  the  forest
14    preserve  district  and must have at least 5 years of service
15    credit in  that  capacity  by  December  1  of  the  year  of
16    election.
17        Only  those persons who are employees of the county shall
18    be eligible to vote for the 3 county employee  members,  only
19    those  persons  who  are  employees  of  the  forest preserve
20    district shall be eligible to vote for  the  forest  preserve
21    district  member,  and  only  those persons who are currently
22    receiving  retirement  or  disability  benefits  under   this
23    Article  shall  be eligible to vote for the annuitant members
24    elected under subsections (d) and (d-1) of Section 9-185, and
25    only those persons who  are  currently  receiving  retirement
26    benefits  under  Article 10 shall be eligible to vote for the
27    forest  preserve  district  annuitant  member  elected  under
28    subsection (f) of Section 9-185.   The  ballot  shall  be  of
29    secret character.
30        Except  as  otherwise  provided  in  Section  9-187, each
31    member of the board shall hold office until his successor  is
32    chosen and has qualified.
33        Any  person  elected  or  appointed a member of the board
 
                            -51-               LRB9208376EGfg
 1    shall qualify for the office by taking an oath of  office  to
 2    be administered by the county clerk or a person designated by
 3    him.   A  copy  thereof  shall  be  kept in the office of the
 4    county clerk.  Any appointment or notice of election shall be
 5    in writing and the written instrument shall be filed with the
 6    oath.
 7    (Source: P.A. 85-964; 86-1488.)

 8        (40 ILCS 5/9-187) (from Ch. 108 1/2, par. 9-187)
 9        Sec. 9-187. Board vacancy.
10        (a)  A vacancy in the membership of the  board  shall  be
11    filled as follows:
12        If  the  vacancy  is  that  of  an appointive member, the
13    official who appointed him shall appoint a  person  to  serve
14    for the unexpired term.
15        If  the  vacancy is that of a county employee member, the
16    remaining members of the board shall appoint a successor from
17    among the employees of the county, who shall serve during the
18    remainder of the unexpired term.
19        If the vacancy is that  of  a  forest  preserve  district
20    member,  the  remaining  members of the board shall appoint a
21    successor from among the employees  of  the  forest  preserve
22    district,  who  shall  serve  during  the  remainder  of  the
23    unexpired term.
24        If  the vacancy is that of an annuitant member other than
25    a forest preserve district annuitant  member,  the  remaining
26    members  of  the  board  shall appoint a successor from among
27    those persons  who  are  currently  receiving  retirement  or
28    disability benefits under this Article.
29        If  the  vacancy  is  that  of a forest preserve district
30    annuitant member, the remaining members of  the  board  shall
31    appoint   a  successor  from  among  those  persons  who  are
32    currently receiving retirement benefits under Article 10.
33        (b)  Any county or forest preserve  district  member  who
 
                            -52-               LRB9208376EGfg
 1    withdraws  from  service  shall  automatically  cease to be a
 2    member of the board.   Any  annuitant  member  other  than  a
 3    forest preserve district annuitant member whose retirement or
 4    disability  benefits cease under this Article, and any forest
 5    preserve district annuitant member whose retirement  benefits
 6    cease  under Article 10, shall also automatically cease to be
 7    a member of the Board.
 8    (Source: P.A. 85-964; 86-1488.)

 9        (40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
10        Sec. 9-219. Computation of service.
11        (1)  In computing the term  of  service  of  an  employee
12    prior  to  the effective date, the entire period beginning on
13    the date he was first appointed and ending on the day  before
14    the  effective  date,  except  any  intervening period during
15    which he was separated by withdrawal from service,  shall  be
16    counted for all purposes of this Article.
17        (2)  In  computing the term of service of any employee on
18    or after the effective date, the following  periods  of  time
19    shall  be  counted as periods of service for age and service,
20    widow's and child's annuity purposes:
21             (a)  The time during which he performed  the  duties
22        of his position.
23             (b)  Vacations, leaves of absence with whole or part
24        pay, and leaves of absence without pay not longer than 90
25        days.
26             (c)  For  an  employee  who  is a member of a county
27        police department or  a  correctional  officer  with  the
28        county  department  of  corrections,  approved  leaves of
29        absence without pay during which the employee serves as a
30        full-time  officer  or  employee  head  of  an   employee
31        association,  the  membership  of which consists of other
32        participants in the Fund police officers,  provided  that
33        the  employee contributes to the Fund (1) the amount that
 
                            -53-               LRB9208376EGfg
 1        he would have  contributed  had  he  remained  an  active
 2        employee  member  of  the county police department in the
 3        position he occupied at the time the leave of absence was
 4        granted,  (2)  an  amount   calculated   by   the   Board
 5        representing  employer  contributions,  and  (3)  regular
 6        interest  thereon from the date of service to the date of
 7        payment.   However,  if  the  employee's  application  to
 8        establish credit under this subsection is received by the
 9        Fund on or after January 1, 2002 and before July 1, 2002,
10        the amount representing employer contributions  specified
11        in item (2) shall be waived.
12             For  a  former  member of a county police department
13        who has received a refund under  Section  9-164,  periods
14        during  which  the employee serves as head of an employee
15        association, the membership of which  consists  of  other
16        police  officers,  provided that the employee contributes
17        to the Fund (1) the amount that he would have contributed
18        had he remained an active member  of  the  county  police
19        department  in  the  position  he occupied at the time he
20        left service, (2)  an  amount  calculated  by  the  Board
21        representing  employer  contributions,  and  (3)  regular
22        interest  thereon from the date of service to the date of
23        payment.  However, if the former  member  of  the  county
24        police department retires on or after January 1, 1993 but
25        no  later  than  March  1,  1993, the amount representing
26        employer contributions specified in  item  (2)  shall  be
27        waived.
28             (d)  Any  period of disability for which he received
29        disability benefit or whole or part pay.
30             (e)  Accumulated vacation or other time for which an
31        employee  who  retires  on  or  after  November  1,  1990
32        receives a lump sum payment at the  time  of  retirement,
33        provided  that contributions were made to the fund at the
34        time such lump sum payment  was  received.   The  service
 
                            -54-               LRB9208376EGfg
 1        granted  for  the  lump  sum payment shall not change the
 2        employee's date of withdrawal for computing the effective
 3        date of the annuity.
 4             (f)  An employee  may  receive  service  credit  for
 5        annuity  purposes  for  accumulated  sick leave as of the
 6        date of the employee's withdrawal from  service,  not  to
 7        exceed  a  total of 180 days, provided that the amount of
 8        such accumulated sick leave is certified  by  the  County
 9        Comptroller  to the Board and the employee pays an amount
10        equal to 8.5%  (9%  for  members  of  the  County  Police
11        Department  who  are eligible to receive an annuity under
12        Section 9-128.1) of the amount that would have been  paid
13        had   such  accumulated  sick  leave  been  paid  at  the
14        employee's final rate of salary.  Such payment  shall  be
15        made  within  30  days  after  the date of withdrawal and
16        prior to receipt of the first annuity check.  The service
17        credit granted for such accumulated sick leave shall  not
18        change  the employee's date of withdrawal for the purpose
19        of computing the effective date of the annuity.
20        (3)  In computing the term of service of an  employee  on
21    or  after  the effective date for ordinary disability benefit
22    purposes, the following periods of time shall be  counted  as
23    periods of service:
24             (a)  Unless  otherwise  specified  in Section 9-157,
25        the time during which he  performed  the  duties  of  his
26        position.
27             (b)  Paid vacations and leaves of absence with whole
28        or part pay.
29             (c)  Any   period   for   which   he  received  duty
30        disability benefit.
31             (d)  Any period of disability for which he  received
32        whole or part pay.
33        (4)  For   an  employee  who  on  January  1,  1958,  was
34    transferred by Act of the  70th  General  Assembly  from  his
 
                            -55-               LRB9208376EGfg
 1    position  in  a  department of welfare of any city located in
 2    the county in which this Article is in force and effect to  a
 3    similar  position  in  a  department  of such county, service
 4    shall also be credited for ordinary  disability  benefit  and
 5    child's  annuity  for  such  period  of department of welfare
 6    service during  which  period  he  was  a  contributor  to  a
 7    statutory annuity and benefit fund in such city and for which
 8    purposes  service  credit  would otherwise not be credited by
 9    virtue of such involuntary transfer.
10        (5)  An employee described in subsection (e)  of  Section
11    9-108  shall  receive credit for child's annuity and ordinary
12    disability benefit for the period of time for  which  he  was
13    credited   with  service  in  the  fund  from  which  he  was
14    involuntarily separated  through  class  or  group  transfer;
15    provided,  that no such credit shall be allowed to the extent
16    that it results in a duplication of credits or benefits,  and
17    neither  shall  such  credit be allowed to the extent that it
18    was or may be forfeited by the application for and acceptance
19    of a refund  from  the  fund  from  which  the  employee  was
20    transferred.
21        (6)  Overtime  or  extra service shall not be included in
22    computing service.  Not more than 1 year of service shall  be
23    allowed for service rendered during any calendar year.
24    (Source: P.A. 86-1488; 87-794; 87-1265.)

25        (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
26        Sec. 11-134.  Minimum annuities.
27        (a)  An  employee  whose  withdrawal occurs after July 1,
28    1957 at age 60 or over, with 20 or more years of service, (as
29    service is defined or computed in Section 11-216),  for  whom
30    the  age  and  service  and prior service annuity combined is
31    less than the amount stated in this Section, shall, from  and
32    after  the  date  of  withdrawal,  in  lieu  of all annuities
33    otherwise provided in this Article, be entitled to receive an
 
                            -56-               LRB9208376EGfg
 1    annuity for life of an amount equal to 1 2/3% for  each  year
 2    of  service,  of  the highest average annual salary for any 5
 3    consecutive  years  within  the  last  10  years  of  service
 4    immediately preceding the date of withdrawal; provided,  that
 5    in the case of any employee who withdraws on or after July 1,
 6    1971,  such  employee age 60 or over with 20 or more years of
 7    service, shall be entitled to instead receive an annuity  for
 8    life  equal  to  1.67%  for  each  of  the  first 10 years of
 9    service; 1.90% for each of the  next  10  years  of  service;
10    2.10%  for  each  year  of  service  in  excess of 20 but not
11    exceeding 30; and 2.30% for each year of service in excess of
12    30, based on the highest average  annual  salary  for  any  4
13    consecutive  years  within  the  last  10  years  of  service
14    immediately preceding the date of withdrawal.
15        An  employee  who withdraws after July 1, 1957 and before
16    January 1, 1988, with 20 or more years of service, before age
17    60, shall be entitled to an annuity,  to  begin  not  earlier
18    than  age 55, if under such age at withdrawal, as computed in
19    the last preceding paragraph, reduced 0.25% if  the  employee
20    was  born before January 1, 1936, or 0.5% if the employee was
21    born on or after January 1, 1936,  for  each  full  month  or
22    fractional  part  thereof  that  his  attained  age when such
23    annuity is to begin is less than 60.
24        Any employee born before January 1,  1936  who  withdraws
25    with 20 or more years of service, and any employee with 20 or
26    more  years  of  service who withdraws on or after January 1,
27    1988, may elect to receive, in lieu  of  any  other  employee
28    annuity  provided  in this Section, an annuity for life equal
29    to 1.80% for each of the first 10 years of service, 2.00% for
30    each of the next 10 years of service, 2.20% for each year  of
31    service  in excess of 20, but not exceeding 30, and 2.40% for
32    each year of service in excess of 30, of the highest  average
33    annual  salary for any 4 consecutive years within the last 10
34    years  of  service  immediately   preceding   the   date   of
 
                            -57-               LRB9208376EGfg
 1    withdrawal, to begin not earlier than upon attained age of 55
 2    years,  if  under  such  age at withdrawal, reduced 0.25% for
 3    each full month or fractional part thereof that his  attained
 4    age  when annuity is to begin is less than 60; except that an
 5    employee retiring on or after January 1, 1988, at age  55  or
 6    over  but  less  than  age  60,  having  at least 35 years of
 7    service, or an employee retiring on or after July 1, 1990, at
 8    age 55 or over but less than age 60, having at least 30 years
 9    of service, or an employee retiring on or after the effective
10    date of this amendatory Act of 1997, at age 55  or  over  but
11    less  than age 60, having at least 25 years of service, shall
12    not be subject to the reduction in retirement annuity because
13    of retirement below age 60.
14        However, in the case of an employee  who  retired  on  or
15    after  January  1, 1985 but before January 1, 1988, at age 55
16    or older and with at least 35 years of service, and  who  was
17    subject  under  this  subsection  (a)  to  the  reduction  in
18    retirement  annuity  because of retirement below age 60, that
19    reduction shall cease to be effective January  1,  1991,  and
20    the retirement annuity shall be recalculated accordingly.
21        Any employee who withdraws on or after July 1, 1990, with
22    20 or more years of service, may elect to receive, in lieu of
23    any  other  employee  annuity  provided  in  this Section, an
24    annuity for life equal to 2.20% for each year of  service  if
25    withdrawal is before 60 days after the effective date of this
26    amendatory  Act  of  the  92nd General Assembly, or 2.40% for
27    each year of service if  withdrawal  is  60  days  after  the
28    effective  date  of  this  amendatory Act of the 92nd General
29    Assembly or later, of the highest average annual  salary  for
30    any  4  consecutive years within the last 10 years of service
31    immediately preceding the date of withdrawal,  to  begin  not
32    earlier than upon attained age of 55 years, if under such age
33    at   withdrawal,   reduced  0.25%  for  each  full  month  or
34    fractional part thereof that his attained age when annuity is
 
                            -58-               LRB9208376EGfg
 1    to begin is less than 60; except that an employee retiring at
 2    age 55 or over but less than age 60, having at least 30 years
 3    of  service,  shall  not  be  subject  to  the  reduction  in
 4    retirement annuity because of retirement below age 60.
 5        Any employee who withdraws on or after the effective date
 6    of this amendatory Act of 1997  with  20  or  more  years  of
 7    service  may  elect to receive, in lieu of any other employee
 8    annuity provided in this Section, an annuity for  life  equal
 9    to 2.20%, for each year of service if withdrawal is before 60
10    days  after  the effective date of this amendatory Act of the
11    92nd General Assembly, or 2.40% for each year of  service  if
12    withdrawal  is  60  days  after  the  effective  date of this
13    amendatory Act of the 92nd General Assembly or later, of  the
14    highest  average  annual  salary  for any 4 consecutive years
15    within the last 10 years of service immediately preceding the
16    date of withdrawal, to begin not earlier than upon attainment
17    of age 55 (age 50 if the employee has at least  30  years  of
18    service),  reduced  0.25%  for  each  full month or remaining
19    fractional part thereof that the employee's attained age when
20    annuity is to begin is less than 60; except that an  employee
21    retiring  at age 50 or over with at least 30 years of service
22    or at age 55 or over with at least 25 years of service  shall
23    not be subject to the reduction in retirement annuity because
24    of retirement below age 60.
25        The  maximum  annuity payable under this paragraph (a) of
26    this Section shall not exceed 70% of highest  average  annual
27    salary in the case of an employee who withdraws prior to July
28    1,  1971,  75%  if withdrawal takes place on or after July 1,
29    1971, and prior to 60 days after the effective date  of  this
30    amendatory  Act  of  the  92nd  General  Assembly,  or 80% if
31    withdrawal is 60  days  after  the  effective  date  of  this
32    amendatory Act of the 92nd General Assembly or later. For the
33    purpose  of  the  minimum annuity provided in said paragraphs
34    $1,500 shall be considered the minimum annual salary for  any
 
                            -59-               LRB9208376EGfg
 1    year;  and the maximum annual salary to be considered for the
 2    computation of such annuity shall  be  $4,800  for  any  year
 3    prior  to 1953, $6,000 for the years 1953 to 1956, inclusive,
 4    and the actual annual salary, as salary is  defined  in  this
 5    Article, for any year thereafter.
 6        (b)  For  an  employee  receiving disability benefit, his
 7    salary for annuity purposes under this Section shall, for all
 8    periods of disability benefit subsequent to the year 1956, be
 9    the amount on which his disability benefit was based.
10        (c)  An employee with 20 or more years of service,  whose
11    entire  disability  benefit  credit  period  expires prior to
12    attainment of age 55 while still disabled for service,  shall
13    be  entitled upon withdrawal to the larger of (1) the minimum
14    annuity provided above assuming that he is then age  55,  and
15    reducing  such  annuity  to  its  actuarial equivalent at his
16    attained age on such date, or (2) the annuity  provided  from
17    his age and service and prior service annuity credits.
18        (d)  The  minimum  annuity  provisions as aforesaid shall
19    not apply to any former employee receiving  an  annuity  from
20    the fund, and who re-enters service as an employee, unless he
21    renders at least 3 years of additional service after the date
22    of re-entry.
23        (e)  An  employee  in  service  on  July  1, 1947, or who
24    became a contributor after July 1, 1947 and prior to July  1,
25    1950,  or  who  shall  become a contributor to the fund after
26    July 1, 1950 prior to attainment of  age  70,  who  withdraws
27    after age 65 with less than 20 years of service, for whom the
28    annuity  has  been fixed under the foregoing Sections of this
29    Article shall, in lieu of the annuity so  fixed,  receive  an
30    annuity as follows:
31        Such amount as he could have received had the accumulated
32    amounts  for  annuity  been  improved  with  interest  at the
33    effective  rate  to  the  date  of  his  withdrawal,  or   to
34    attainment  of age 70, whichever is earlier, and had the city
 
                            -60-               LRB9208376EGfg
 1    contributed to such earlier date for age and service  annuity
 2    the amount that would have been contributed had he been under
 3    age  65,  after  the date his annuity was fixed in accordance
 4    with this Article, and assuming  his  annuity  were  computed
 5    from  such  accumulations as of his age on such earlier date.
 6    The annuity so computed shall not exceed  the  annuity  which
 7    would  be  payable under the other provisions of this Section
 8    if the employee was credited with 20  years  of  service  and
 9    would qualify for annuity thereunder.
10        (f)  In  lieu  of  the annuity provided in this or in any
11    other Section of this Article, an  employee  having  attained
12    age  65  with at least 15 years of service who withdraws from
13    service on or after July 1, 1971 and whose  annuity  computed
14    under  other  provisions  of  this  Article  is less than the
15    amount provided under this paragraph  shall  be  entitled  to
16    receive  a minimum annual annuity for life equal to 1% of the
17    highest average annual salary for  any  4  consecutive  years
18    within  the  last  10  years of service immediately preceding
19    retirement for each year of his service plus the sum  of  $25
20    for  each  year  of  service.  Such  annual annuity shall not
21    exceed the maximum percentages stated under paragraph (a)  of
22    this Section of such highest average annual salary.
23        (f-1)  Instead  of  any other retirement annuity provided
24    in this Article, an employee who has at  least  10  years  of
25    service  and  withdraws  from  service on or after January 1,
26    1999 may elect to receive  a  retirement  annuity  for  life,
27    beginning no earlier than upon attainment of age 60, equal to
28    2.2% if withdrawal is before 60 days after the effective date
29    of  this  amendatory Act of the 92nd General Assembly or 2.4%
30    for each year of service if withdrawal is 60 days  after  the
31    effective  date  of  this  amendatory Act of the 92nd General
32    Assembly or later, of final average salary for each  year  of
33    service,  subject to a maximum of 75% of final average salary
34    if withdrawal is before 60 days after the effective  date  of
 
                            -61-               LRB9208376EGfg
 1    this  amendatory  Act of the 92nd General Assembly, or 80% if
 2    withdrawal is 60  days  after  the  effective  date  of  this
 3    amendatory Act of the 92nd General Assembly or later. For the
 4    purpose  of  calculating this annuity, "final average salary"
 5    means the highest average annual salary for any 4 consecutive
 6    years in the last 10 years of service.
 7        (g)  Any annuity payable under the preceding  subsections
 8    of  this  Section  11-134  shall  be  paid  in  equal monthly
 9    installments.
10        (h)  The amendatory provisions of part  (a)  and  (f)  of
11    this Section shall be effective July 1, 1971 and apply in the
12    case  of  every  qualifying  employee withdrawing on or after
13    July 1, 1971.
14        (i)  The amendatory provisions of this amendatory Act  of
15    1985   relating   to  the  discount  of  annuity  because  of
16    retirement prior to attainment of age 60 and  increasing  the
17    retirement  formula  for  those  born before January 1, 1936,
18    shall apply only to qualifying employees  withdrawing  on  or
19    after August 16, 1985.
20        (j)  Beginning  on January 1, 1999, the minimum amount of
21    employee's annuity shall be $850 per month for life  for  the
22    following  classes  of  employees, without regard to the fact
23    that withdrawal occurred prior to the effective date of  this
24    amendatory Act of 1998:
25             (1)  any  employee  annuitant  alive and receiving a
26        life annuity on the effective date of this amendatory Act
27        of 1998, except a reciprocal annuity;
28             (2)  any employee annuitant alive  and  receiving  a
29        term annuity on the effective date of this amendatory Act
30        of 1998, except a reciprocal annuity;
31             (3)  any  employee  annuitant  alive and receiving a
32        reciprocal  annuity  on  the  effective  date   of   this
33        amendatory  Act of 1998, whose service in this fund is at
34        least 5 years;
 
                            -62-               LRB9208376EGfg
 1             (4)  any employee annuitant withdrawing after age 60
 2        on or after the effective date of this amendatory Act  of
 3        1998, with at least 10 years of service in this fund.
 4        The  increases  granted  under  items (1), (2) and (3) of
 5    this subsection (j) shall not be limited by any other Section
 6    of this Act.
 7    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
 8    90-766, eff. 8-14-98.)

 9        (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
10        Sec. 11-134.1. Automatic increase in annuity.
11        (a)  An  employee  who  retired  or  retires from service
12    after December 31, 1963, and before January 1,  1987,  having
13    attained  age  60  or more, shall, in the month of January of
14    the year following the year in which the first anniversary of
15    retirement occurs, have the amount  of  his  then  fixed  and
16    payable  monthly  annuity increased by 1 1/2%, and such first
17    fixed annuity as granted at retirement increased by a further
18    1 1/2% in January of each  year  thereafter.  Beginning  with
19    January of the year 1972, such increases shall be at the rate
20    of  2%  in  lieu of the aforesaid specified 1 1/2%. Beginning
21    January, 1984, such increases shall be at  the  rate  of  3%.
22    Beginning  in January of 1999, such increases shall be at the
23    rate  of  3%  of  the  currently  payable  monthly   annuity,
24    including   any   increases  previously  granted  under  this
25    Article.  An employee who retires on annuity  after  December
26    31,  1963  and  before  January 1, 1987, but prior to age 60,
27    shall receive such increases beginning with  January  of  the
28    year  immediately  following the year in which he attains the
29    age of 60 years.
30        An employee who retires from service on or after  January
31    1,  1987 shall, upon the first annuity payment date following
32    the first anniversary of the date of retirement, or upon  the
33    first  annuity  payment  date following attainment of age 60,
 
                            -63-               LRB9208376EGfg
 1    whichever occurs later,  have  his  then  fixed  and  payable
 2    monthly  annuity  increased  by 3%, and such annuity shall be
 3    increased by an additional 3% of the original  fixed  annuity
 4    on  the same date each year thereafter.  Beginning in January
 5    of 1999, such increases shall be at the rate  of  3%  of  the
 6    currently  payable  monthly  annuity, including any increases
 7    previously granted under this Article.
 8        (a-5) Notwithstanding the provisions of  subsection  (a),
 9    upon  the  first annuity payment date following (1) the third
10    anniversary of retirement, (2) the attainment of age  53,  or
11    (3)  the  date  60  days  after  the  effective  date of this
12    amendatory Act of the 92nd General Assembly, whichever occurs
13    latest, the monthly pension of an  employee  who  retires  on
14    annuity  prior  to  the  attainment  of  age  60  who has not
15    received an increase under subsection (a) shall be  increased
16    by  3%,  and such annuity shall be increased by an additional
17    3% of the current payable  monthly  annuity,  including  such
18    increases  previously granted under this Article, on the same
19    date each year thereafter. The increases provided under  this
20    subsection   are   in  lieu  of  the  increases  provided  in
21    subsection (a).
22        (b) The foregoing  provision  is  not  applicable  to  an
23    employee retiring and receiving a term annuity, as defined in
24    this  Article,  nor  to  any otherwise qualified employee who
25    retires before he shall have made employee contributions  (at
26    the  1/2 of 1% rate as hereinafter provided) for the purposes
27    of this additional annuity for not less than  the  equivalent
28    of   one  full  year.  Such  employee,  however,  shall  make
29    arrangement to pay to the fund a balance of such  1/2  of  1%
30    contributions,  based on his final salary, as will bring such
31    1/2 of 1% contributions, computed without  interest,  to  the
32    equivalent of or completion of one year's contributions.
33        Beginning  with the month of January, 1964, each employee
34    shall contribute by means of salary deductions 1/2 of  1%  of
 
                            -64-               LRB9208376EGfg
 1    each salary payment, concurrently with and in addition to the
 2    employee contributions otherwise made for annuity purposes.
 3        Each  such  additional  employee  contribution  shall  be
 4    credited  to an account in the prior service annuity reserve,
 5    to be used, together with city contributions, to  defray  the
 6    cost  of  the specified annuity increments. Any balance as of
 7    the beginning of each calendar year existing in such  account
 8    shall be credited with interest at the rate of 3% per annum.
 9        Such  employee  contributions  shall  not  be  subject to
10    refund, except to an employee who resigns  or  is  discharged
11    and  applies for refund under this Article, and also in cases
12    where a term annuity becomes payable.
13        In  such  cases  the  employee  contributions  shall   be
14    refunded   him,   without   interest,   and  charged  to  the
15    aforementioned account in the prior service annuity reserve.
16    (Source: P.A. 90-766, eff. 8-14-98.)

17        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
18        Sec. 11-145.1.  Minimum annuities for widows.
19        The widow otherwise eligible for  widow's  annuity  under
20    other Sections of this Article 11, of an employee hereinafter
21    described,  who  retires  from  service  or dies while in the
22    service subsequent to the effective date of  this  amendatory
23    provision,  and for which widow the amount of widow's annuity
24    and widow's prior service annuity combined, fixed or provided
25    for such widow under other provisions of said Article  11  is
26    less  than  the  amount hereinafter provided in this section,
27    shall, from and after the date her otherwise provided annuity
28    would begin, in lieu of such otherwise provided  widow's  and
29    widow's  prior  service annuity, be entitled to the following
30    indicated amount of annuity:
31        (a)  The widow of any employee who dies while in  service
32    on  or after the date on which he attains age 60 if the death
33    occurs before July 1, 1990, or on or after the date on  which
 
                            -65-               LRB9208376EGfg
 1    he  attains  age  55  if the death occurs on or after July 1,
 2    1990, with at least 20 years of service, or on or  after  the
 3    date  on  which  he  attains age 50 if the death occurs on or
 4    after the effective date of this amendatory Act of 1997  with
 5    at least 30 years of service, shall be entitled to an annuity
 6    equal to one-half of the amount of annuity which her deceased
 7    husband  would have been entitled to receive had he withdrawn
 8    from the service on the day immediately preceding the date of
 9    his death, conditional upon such widow having attained age 60
10    on or before such date if the death  occurs  before  July  1,
11    1990, or age 55 if the death occurs on or after July 1, 1990,
12    or age 50 if the death occurs on or after January 1, 1998 and
13    the  employee  is  age  50  or over with at least 30 years of
14    service or age 55 or over with at least 25 years of  service.
15    Except  as  provided  in  subsection (j), the widow's annuity
16    shall not, however, exceed the sum of $500  a  month  if  the
17    employee's  death  in service occurs before January 23, 1987.
18    The widow's annuity shall not be limited to a maximum  dollar
19    amount  if the employee's death in service occurs on or after
20    January 23, 1987.
21        If the employee dies in service before July 1, 1990,  and
22    if  such  widow of such described employee shall not be 60 or
23    more years of age on such date of death, the amount  provided
24    in the immediately preceding paragraph for a widow 60 or more
25    years  of  age,  shall, in the case of such younger widow, be
26    reduced by 0.25% for each month that her then attained age is
27    less than 60 years if the employee was born before January 1,
28    1936, or dies in service on or after January 1, 1988, or 0.5%
29    for each month that her then attained age  is  less  than  60
30    years  if  the  employee was born on or after January 1, 1936
31    and dies in service before January 1, 1988.
32        If the employee dies in service on or after July 1, 1990,
33    and if the widow of the employee has not attained age  55  on
34    or  before the employee's date of death, the amount otherwise
 
                            -66-               LRB9208376EGfg
 1    provided in this subsection (a) shall be reduced by 0.25% for
 2    each month that her then attained age is less than 55  years;
 3    except  that  if  the  employee  dies  in service on or after
 4    January 1, 1998 at age 50 or over with at least 30  years  of
 5    service  or  at  age  55  or  over  with at least 25 years of
 6    service, there shall be no reduction due to the  widow's  age
 7    if  she  has attained age 50 on or before the employee's date
 8    of death, and if the widow has not  attained  age  50  on  or
 9    before  the  employee's  date  of  death the amount otherwise
10    provided in this subsection (a) shall be reduced by 0.25% for
11    each month that her then attained age is less than 50 years.
12        (b)  The widow of any employee who dies subsequent to the
13    date of his retirement on annuity, and who so retired  on  or
14    after  the  date  on  which  he attained age 60 if retirement
15    occurs before July 1, 1990, or on or after the date on  which
16    he  attained  age 55 if retirement occurs on or after July 1,
17    1990, with at least 20 years of service, or on or  after  the
18    date  on which he attained age 50 if the retirement occurs on
19    or after the effective date of this amendatory  Act  of  1997
20    with  at  least  30 years of service, shall be entitled to an
21    annuity equal to one-half of the amount of annuity which  her
22    deceased husband received as of the date of his retirement on
23    annuity,  conditional  upon such widow having attained age 60
24    on or before the date of her husband's retirement on  annuity
25    if  retirement  occurs  before  July  1,  1990,  or age 55 if
26    retirement occurs on or after July 1, 1990, or age 50 if  the
27    retirement  on annuity occurs on or after January 1, 1998 and
28    the employee is age 50 or over with  at  least  30  years  of
29    service or age 55 or over with at least 25 years of service.
30    Except  as  provided  in subsection (j), this widow's annuity
31    shall not, however, exceed the sum of $500  a  month  if  the
32    employee's death occurs before January 23, 1987.  The widow's
33    annuity  shall  not  be limited to a maximum dollar amount if
34    the employee's death occurs on or  after  January  23,  1987,
 
                            -67-               LRB9208376EGfg
 1    regardless  of  the  date  of  retirement;  provided that, if
 2    retirement was before  January  23,  1987,  the  employee  or
 3    eligible spouse repays the excess spouse refund with interest
 4    at  the effective rate from the date of refund to the date of
 5    repayment.
 6        If the date of the employee's retirement  on  annuity  is
 7    before  July  1,  1990,  and  if such widow of such described
 8    employee shall not have attained such age of 60 or more years
 9    on such date of her  husband's  retirement  on  annuity,  the
10    amount  provided in the immediately preceding paragraph for a
11    widow 60 or more years of age on the date  of  her  husband's
12    retirement  on  annuity,  shall,  in  the  case  of such then
13    younger widow, be reduced by 0.25% for each  month  that  her
14    then  attained age was less than 60 years if the employee was
15    born before January 1, 1936, or withdraws from service on  or
16    after  January  1, 1988, or 0.5% for each month that her then
17    attained age was less than 60 years if the employee was  born
18    on or after January 1, 1936 and withdraws from service before
19    January 1, 1988.
20        If the date of the employee's retirement on annuity is on
21    or  after  July 1, 1990, and if the widow of the employee has
22    not attained age 55 by the date of the employee's  retirement
23    on  annuity, the amount otherwise provided in this subsection
24    (b) shall be reduced by 0.25% for each month  that  her  then
25    attained  age  is  less  than  55  years;  except that if the
26    employee retires on annuity on or after January  1,  1998  at
27    age 50 or over with at least 30 years of service or at age 55
28    or  over with at least 25 years of service, there shall be no
29    reduction due to the widow's age if she has attained  age  50
30    on  or  before the employee's date of death, and if the widow
31    has not attained age 50 on or before the employee's  date  of
32    death  the  amount  otherwise provided in this subsection (b)
33    shall be reduced by  0.25%  for  each  month  that  her  then
34    attained age is less than 50 years.
 
                            -68-               LRB9208376EGfg
 1        (c)  The   foregoing   provisions   relating  to  minimum
 2    annuities for widows shall not apply  to  the  widow  of  any
 3    former  employee receiving an annuity from the fund on August
 4    2,  1965  or  on  the  effective  date  of  this   amendatory
 5    provision, who re-enters service as a former employee, unless
 6    such  employee renders at least 3 years of additional service
 7    after the date of re-entry.
 8        (d)  (Blank).
 9        (e)  (Blank).
10        (f)  The amendments to this Section  by  this  amendatory
11    Act of 1985, relating to changing the discount because of age
12    from  1/2  of  1%  to 0.25% per month for widows of employees
13    born before January 1, 1936, shall apply only  to  qualifying
14    widows  whose  husbands  die while in the service on or after
15    August 16, 1985 or withdraw and enter on annuity on or  after
16    August 16, 1985.
17        (g)  Beginning  on January 1, 1999, the minimum amount of
18    widow's annuity shall be $800 per  month  for  life  for  the
19    following  classes of widows, without regard to the fact that
20    the death of the employee occurred  prior  to  the  effective
21    date of this amendatory Act of 1998:
22             (1)  any  widow annuitant alive and receiving a term
23        annuity on the effective date of this amendatory  Act  of
24        1998, except a reciprocal annuity;
25             (2)  any  widow annuitant alive and receiving a life
26        annuity on the effective date of this amendatory  Act  of
27        1998, except a reciprocal annuity;
28             (3)  any  widow  annuitant  alive  and  receiving  a
29        reciprocal   annuity   on  the  effective  date  of  this
30        amendatory Act of 1998, whose employee  spouse's  service
31        in this fund was at least 5 years;
32             (4)  the widow of an employee with at least 10 years
33        of service in this fund who dies after retirement, if the
34        retirement  occurred  prior to the effective date of this
 
                            -69-               LRB9208376EGfg
 1        amendatory Act of 1998;
 2             (5)  the widow of an employee with at least 10 years
 3        of service in this fund who  dies  after  retirement,  if
 4        withdrawal  occurs on or after the effective date of this
 5        amendatory Act of 1998;
 6             (6)  the widow of an employee who  dies  in  service
 7        with  at  least  5  years of service in this fund, if the
 8        death in service occurs on or after the effective date of
 9        this amendatory Act of 1998.
10        The increases granted under items (1), (2), (3)  and  (4)
11    of  this  subsection  (g)  shall  not be limited by any other
12    Section of this Act.
13        (h)  The widow of an employee  who  retired  or  died  in
14    service  on or after January 1, 1985 and before July 1, 1990,
15    at age 55 or older, and with at least  35  years  of  service
16    credit,  shall  be  entitled  to  have  her  widow's  annuity
17    increased,  effective  January 1, 1991, to an amount equal to
18    50% of the retirement  annuity  that  the  deceased  employee
19    received  on  the  date  of  retirement,  or  would have been
20    eligible to receive if he had retired on  the  day  preceding
21    the  date of his death in service, provided that if the widow
22    had not attained  age  60  by  the  date  of  the  employee's
23    retirement  or  death  in  service, the amount of the annuity
24    shall be reduced by  0.25%  for  each  month  that  her  then
25    attained   age  was  less  than  age  60  if  the  employee's
26    retirement or death in service occurred on or  after  January
27    1,  1988, or by 0.5%  for each month that her attained age is
28    less than age 60 if the employee's  retirement  or  death  in
29    service occurred prior to January 1, 1988.  However, in cases
30    where  a  refund  of excess contributions for widow's annuity
31    has been paid by the Fund, the increase in  benefit  provided
32    by  this subsection (h) shall be contingent upon repayment of
33    the refund to the Fund with interest at  the  effective  rate
34    from the date of refund to the date of payment.
 
                            -70-               LRB9208376EGfg
 1        (i)  If  a  deceased  employee  is receiving a retirement
 2    annuity at the time of death and  that  death  occurs  on  or
 3    after  June 27, 1997, the widow may elect to receive, in lieu
 4    of any other annuity provided under this Article, 50% of  the
 5    deceased  employee's  retirement annuity at the time of death
 6    reduced by 0.25% for each month that the widow's age  on  the
 7    date  of  death  is less than 55; except that if the employee
 8    dies on or after January 1, 1998 and withdrew from service on
 9    or after June 27, 1997 at age 50 or over  with  at  least  30
10    years  of service or at age 55 or over with at least 25 years
11    of service, there shall be no reduction due  to  the  widow's
12    age  if  she  has attained age 50 on or before the employee's
13    date of death, and if the widow has not attained age 50 on or
14    before the employee's date  of  death  the  amount  otherwise
15    provided in this subsection (i) shall be reduced by 0.25% for
16    each  month that her age on the date of death is less than 50
17    years.   However,  in  cases  where  a   refund   of   excess
18    contributions  for widow's annuity has been paid by the Fund,
19    the benefit provided by this  subsection  (i)  is  contingent
20    upon repayment of the refund to the Fund with interest at the
21    effective  rate  from  the  date  of  refund  to  the date of
22    payment.
23        (j)  For widows of employees who died before January  23,
24    1987  after  retirement on annuity or in service, the maximum
25    dollar amount limitation on widow's annuity  shall  cease  to
26    apply,  beginning  with  the  first annuity payment after the
27    effective date of this amendatory Act of 1997; except that if
28    a refund of excess contributions for widow's annuity has been
29    paid by the Fund, the increase resulting from this subsection
30    (j) shall not begin before the refund has been repaid to  the
31    Fund,  together  with interest at the effective rate from the
32    date of the refund to the date of repayment.
33        (k)  In lieu  of  any  other  annuity  provided  in  this
34    Article,  an  eligible  spouse  of  an  employee  who dies in
 
                            -71-               LRB9208376EGfg
 1    service at least 60 days after the  effective  date  of  this
 2    amendatory  Act of the 92nd General Assembly with at least 10
 3    years of service shall be entitled to an annuity  of  50%  of
 4    the  minimum formula annuity earned and accrued to the credit
 5    of the employee at the date of death.  For  the  purposes  of
 6    this  subsection,  the  minimum  formula  annuity  earned and
 7    accrued to the credit of the employee is equal to  2.40%  for
 8    each year of service of the highest average annual salary for
 9    any  4  consecutive years within the last 10 years of service
10    immediately preceding the date of death, up to a  maximum  of
11    80% of the highest average annual salary.  This annuity shall
12    not  be reduced due to the age of the employee or spouse.  In
13    addition to any other  eligibility  requirements  under  this
14    Article,  the spouse is eligible for this annuity only if the
15    marriage was in effect for 10 full years or more.
16    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
17    90-766, eff. 8-14-98.)

18        (40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
19        Sec. 11-153.  Child's annuity.
20        (a)  A  "Child's  Annuity" shall be payable monthly after
21    the death of an employee parent to an unmarried  child  until
22    the child's attainment of age 18 or marriage, whichever event
23    shall  first  occur,  under  the following conditions, if the
24    child was born or in esse before the  employee  attained  age
25    65, and before he withdrew from service:
26             (1)  upon  death  resulting  from injury incurred in
27        the performance of an act of duty;
28             (2)  upon death in service from any cause other than
29        injury incurred  in  the  performance  of  duty,  if  the
30        employee  has  at least 4 years of service after the date
31        of his original entry into service, and at least 2  years
32        after the date of his latest re-entry;
33             (2)(3)  upon death of an employee who withdraws from
 
                            -72-               LRB9208376EGfg
 1        service  after  age  55 (or after age 50 with at least 30
 2        years of service if withdrawal is on or  after  June  27,
 3        1997)  and  who  has  entered  upon  or  is  eligible for
 4        annuity.
 5    Payment shall be made as provided in Section 11-124.
 6        (b)  After July 24,  1967,  an  adopted  child  shall  be
 7    entitled  to  the  same child's annuity benefits provided for
 8    natural children in this Article, if:
 9             (1)  the child was legally adopted by  the  employee
10        at least one year prior to the death of the employee; and
11             (2)  the  child  was  adopted  before  the  employee
12        withdrew from service attained age 55.
13    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

14        (40 ILCS 5/11-156) (from Ch. 108 1/2, par. 11-156)
15        Sec. 11-156.  Ordinary disability benefit.   An employee,
16    while  under  age  65  and prior to January 1, 1979, or while
17    under age 70 and after January 1, 1979, who becomes  disabled
18    after  the  effective  date  as the result of any cause other
19    than injury incurred in the performance of any act or acts of
20    duty, shall be entitled to ordinary disability benefit during
21    such disability, after the first 30 days thereof.
22        The disability benefit prescribed herein shall cease when
23    the  first  of  the  following  dates  shall  occur  and  the
24    employee, if still disabled, shall thereafter be entitled  to
25    such annuity as is otherwise provided in this Article:
26        (a)  the date disability ceases.
27        (b)  the  date  the  disabled employee attains age 65 for
28    disability commencing prior to January 1, 1979.
29        (c)  the  date  the  disabled  employee  attains  65  for
30    disability commencing prior to attainment of age  60  in  the
31    service and after January 1, 1979.
32        (d)  the date the disabled employee attains the age of 70
33    for  disability  commencing after attainment of age 60 in the
 
                            -73-               LRB9208376EGfg
 1    service and after January 1, 1979.
 2        (e)  the date the payments of the benefit shall exceed in
 3    the aggregate, throughout the employee's  service,  a  period
 4    equal  to 1/4 of the total service rendered prior to the date
 5    of disability but in no event more than 5 years. In computing
 6    such total the following periods shall be excluded:
 7        (i)  Any  period  during  which  the  employee   received
 8    ordinary disability benefit;
 9        (ii)  Any  period of absence from duty, whether caused by
10    layoff, leave of absence or suspension of employment, or  any
11    other  reason,  unless the board, upon satisfactory evidence,
12    finds that the disability resulted from a cause which existed
13    or occurred prior to such period of absence. No employee  who
14    becomes  disabled  and whose disability begins during absence
15    from duty (other than while on vacation with pay) shall  have
16    any  right  to  ordinary disability benefit, except as herein
17    provided, until he recovers from such disability and performs
18    the duties of his position in the service  for  at  least  15
19    consecutive  days,  Sundays and holidays excepted, after such
20    recovery.
21        The first payment shall be made not later than one  month
22    after  the  benefit  is  granted  and each subsequent payment
23    shall be made  not  later  than  one  month  after  the  last
24    preceding payment.
25        Ordinary   disability   benefit   shall  be  50%  of  the
26    employee's salary at the date of disability.
27        For ordinary disability benefits paid before  January  1,
28    2001,  before  any  payment, an amount equal to, less the sum
29    ordinarily deducted from salary for all annuity purposes  for
30    such period for which the ordinary disability benefit is made
31    shall  be  deducted  from  such  payment  and credited to the
32    employee as a deduction from salary  for  that  period.   The
33    sums  so deducted shall be credited to the employee and shall
34    be regarded, for annuity and refund purposes,  as  an  amount
 
                            -74-               LRB9208376EGfg
 1    contributed by him.
 2        For ordinary disability benefits paid on or after January
 3    1,  2001,  the  fund  shall  credit sums equal to the amounts
 4    ordinarily contributed by an employee  for  annuity  purposes
 5    for  any  period  during which the employee receives ordinary
 6    disability, and  those  sums  shall  be  deemed  for  annuity
 7    purposes   and   purposes   of   Section  11-169  as  amounts
 8    contributed by the  employee.   These  amounts  credited  for
 9    annuity purposes shall not be credited for refund purposes.
10        Any   employee  whose  ordinary  disability  benefit  was
11    terminated after January 1, 1979 by reason of his  attainment
12    of  age  65 and who continues disabled after age 65 may elect
13    before July 1, 1986 to have such benefits  resumed  beginning
14    at   the  time  of  such  termination  and  continuing  until
15    termination is required under this Section as amended by this
16    amendatory Act of 1985.  The amount payable to  any  employee
17    for  such  resumed benefit for any period shall be reduced by
18    the amount of any retirement annuity paid  to  such  employee
19    under  this  Article for the same period of time or by refund
20    paid in lieu of annuity.
21    (Source: P.A. 85-964.)

22        (40 ILCS 5/11-164) (from Ch. 108 1/2, par. 11-164)
23        Sec. 11-164. Refunds - Withdrawal before age 55  or  with
24    less than 10 years of service.
25        (1)  An  employee,  without  regard to length of service,
26    who withdraws before age 55, and any employee with less  than
27    10  years  of  service  who withdraws before age 60, shall be
28    entitled to a refund of the  total  sum  accumulated  to  his
29    credit  as  of date of withdrawal for age and service annuity
30    and widow's annuity from amounts contributed by him or by the
31    City  in  lieu  of   employee   contributions   during   duty
32    disability;  provided  that  such  amounts contributed by the
33    city after December 31, 1983 while the employee is  receiving
 
                            -75-               LRB9208376EGfg
 1    duty disability benefits and amounts credited to the employee
 2    for  annuity  purposes  by  the  fund after December 31, 2000
 3    while the employee is receiving ordinary disability  benefits
 4    shall not be credited for refund purposes.
 5        The  board  may  in  its  discretion  withhold payment of
 6    refund for a period not to exceed 6 months from the  date  of
 7    withdrawal.  Interest  at the effective rate shall be paid on
 8    any such refund withheld during such withheld period  not  to
 9    exceed 6 months.
10        (2)  Upon  receipt of the refund, the employee surrenders
11    and forfeits all rights to any annuity or other benefits, for
12    himself and for any other persons who  might  have  benefited
13    through him; provided that he may have such period of service
14    counted  in  computing  the  term  of his service for age and
15    service annuity purposes  only  if  he  becomes  an  employee
16    before age 65.
17        (3)  An employee who does not receive a refund shall have
18    all amounts to his credit for annuity purposes on the date of
19    his withdrawal improved by interest only until he becomes age
20    65,  while  out  of  service,  at the effective rate, for his
21    benefit and the benefit of any person who may have any  right
22    to  annuity  through  him  if  he  re-enters  the service and
23    attains a right to annuity.
24        (4)  Any such employee shall retain such right to  refund
25    of  such  amounts  when  he  shall  apply  for same, until he
26    re-enters the service or until the amount of annuity to which
27    he shall have a right shall have been fixed  as  provided  in
28    this  Article.  Thereafter,  no such right shall exist in the
29    case of any such employee.
30    (Source: P.A. 83-499.)

31        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
32        Sec. 11-167.  Refunds in lieu of annuity.  In lieu of  an
33    annuity,  an  employee who withdraws, and whose annuity would
 
                            -76-               LRB9208376EGfg
 1    amount to less than $800  a  month  for  life  may  elect  to
 2    receive  a  refund of the total sum accumulated to his credit
 3    from employee contributions for annuity purposes.
 4        The widow of any employee, eligible for annuity upon  the
 5    death of her husband, whose annuity would amount to less than
 6    $800  a  month  for  life, may, in lieu of a widow's annuity,
 7    elect to receive a refund of  the  accumulated  contributions
 8    for annuity purposes, based on the amounts contributed by her
 9    deceased   employee  husband,  but  reduced  by  any  amounts
10    theretofore paid to him in the form of an annuity  or  refund
11    out of such accumulated contributions.
12        Accumulated   contributions   shall   mean   the  amounts
13    including  interest  credited  thereon  contributed  by   the
14    employee  for age and service and widow's annuity to the date
15    of his withdrawal  or  death,  whichever  first  occurs,  and
16    including  the accumulations from any amounts contributed for
17    him as salary  deductions  while  receiving  duty  disability
18    benefits;  provided that such amounts contributed by the city
19    after December 31, 1983 while the employee is receiving  duty
20    disability  benefits and amounts credited to the employee for
21    annuity purposes by the fund after December  31,  2000  while
22    the employee is receiving ordinary disability benefits.
23        The acceptance of such refund in lieu of widow's annuity,
24    on the part of a widow, shall not deprive a child or children
25    of the right to receive a child's annuity as provided  for in
26    Sections 11-153 and 11-154 of this Article, and neither shall
27    the  payment  of a child's annuity in the case of such refund
28    to a widow reduce the amount herein set forth  as  refundable
29    to such widow electing a refund in lieu of widow's annuity.
30    (Source: P.A. 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)

31        (40 ILCS 5/14-105.7)
32        Sec. 14-105.7. Transfer to Article 9 fund.
33        (a)  Until  July  1,  2002  1998,  any active or inactive
 
                            -77-               LRB9208376EGfg
 1    member of the System who has established  creditable  service
 2    under   paragraph   (i)   of   Section  14-104  (relating  to
 3    contractual service to the General Assembly) and is an active
 4    or former contributor to the pension fund  established  under
 5    Article 9 of this Code may apply to the Board for transfer of
 6    all  of  his or her creditable service accumulated under this
 7    System to the Article 9 fund.  The creditable  service  shall
 8    be  transferred  forthwith.   Payment  by  this System to the
 9    Article 9 fund shall be made  at  the  same  time  and  shall
10    consist of:
11             (1)  the  amounts  accumulated  to the credit of the
12        applicant for that service, including  regular  interest,
13        on the books of the System on the date of transfer; plus
14             (2)  employer  contributions  in  an amount equal to
15        the amount determined under item (1).
16    Participation in this System as to  the  credits  transferred
17    under this Section terminates on the date of transfer.
18        (b)  Any  person  transferring  credit under this Section
19    may reinstate credits and creditable service terminated  upon
20    receipt  of a refund, by paying to the System, before July 1,
21    2002 1998, the amount of the  refund  plus  regular  interest
22    from the date of refund to the date of payment.
23        (c)  The  changes  to  this  Section and Section 9-121.15
24    made by this amendatory Act  of  the  92nd  General  Assembly
25    apply  without  regard  to  whether  the  person is in active
26    service, under this System or the Article 9 Fund, on or after
27    the effective date of this amendatory Act.
28    (Source: P.A. 90-511, eff. 8-22-97.)

29        Section 90.  The State Mandates Act is amended by  adding
30    Section 8.25 as follows:

31        (30 ILCS 805/8.25 new)
32        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
 
                            -78-               LRB9208376EGfg
 1    and 8 of this Act, no reimbursement by the State is  required
 2    for  the  implementation  of  any  mandate  created  by  this
 3    amendatory Act of the 92nd General Assembly.

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.
 
                            -79-               LRB9208376EGfg
 1                                INDEX
 2               Statutes amended in order of appearance
 3    40 ILCS 5/8-110           from Ch. 108 1/2, par. 8-110
 4    40 ILCS 5/8-113           from Ch. 108 1/2, par. 8-113
 5    40 ILCS 5/8-120           from Ch. 108 1/2, par. 8-120
 6    40 ILCS 5/8-137           from Ch. 108 1/2, par. 8-137
 7    40 ILCS 5/8-138           from Ch. 108 1/2, par. 8-138
 8    40 ILCS 5/8-150.1         from Ch. 108 1/2, par. 8-150.1
 9    40 ILCS 5/8-158           from Ch. 108 1/2, par. 8-158
10    40 ILCS 5/8-161           from Ch. 108 1/2, par. 8-161
11    40 ILCS 5/8-168           from Ch. 108 1/2, par. 8-168
12    40 ILCS 5/8-171           from Ch. 108 1/2, par. 8-171
13    40 ILCS 5/8-230.7
14    40 ILCS 5/8-230.9 new
15    40 ILCS 5/8-230.10 new
16    40 ILCS 5/9-121.14 new
17    40 ILCS 5/9-121.15
18    40 ILCS 5/9-121.16 new
19    40 ILCS 5/9-134           from Ch. 108 1/2, par. 9-134
20    40 ILCS 5/9-134.3
21    40 ILCS 5/9-134.4 new
22    40 ILCS 5/9-163           from Ch. 108 1/2, par. 9-163
23    40 ILCS 5/9-179.3         from Ch. 108 1/2, par. 9-179.3
24    40 ILCS 5/9-185           from Ch. 108 1/2, par. 9-185
25    40 ILCS 5/9-186           from Ch. 108 1/2, par. 9-186
26    40 ILCS 5/9-187           from Ch. 108 1/2, par. 9-187
27    40 ILCS 5/9-219           from Ch. 108 1/2, par. 9-219
28    40 ILCS 5/11-134          from Ch. 108 1/2, par. 11-134
29    40 ILCS 5/11-134.1        from Ch. 108 1/2, par. 11-134.1
30    40 ILCS 5/11-145.1        from Ch. 108 1/2, par. 11-145.1
31    40 ILCS 5/11-153          from Ch. 108 1/2, par. 11-153
32    40 ILCS 5/11-156          from Ch. 108 1/2, par. 11-156
33    40 ILCS 5/11-164          from Ch. 108 1/2, par. 11-164
34    40 ILCS 5/11-167          from Ch. 108 1/2, par. 11-167
 
                            -80-               LRB9208376EGfg
 1    40 ILCS 5/14-105.7
 2    30 ILCS 805/8.25 new

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