Public Act 094-0621
 
HB2379 Enrolled LRB094 10173 AMC 40439 b

    AN ACT in relation to public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 13-301, 13-302, 13-305, 13-306, 13-308, 13-309,
13-310, 13-314, 13-402, 13-403, 13-502, 13-601, 13-603, and
13-706 as follows:
 
    (40 ILCS 5/13-301)  (from Ch. 108 1/2, par. 13-301)
    Sec. 13-301. Retirement annuity; eligibility. Any employee
who withdraws from service and meets the age and service
requirements and other conditions set forth in subsections (a),
(b), (c) or (d) hereof is entitled to receive a retirement
annuity.
    (a) Withdrawal on or after age 60. Any employee, upon
withdrawal from service on or after attainment of age 60 and
having at least 5 years of service, is entitled to a retirement
annuity.
    (b) Withdrawal on or after attainment of minimum retirement
qualifications and prior to age 60.
        (1) Any employee, upon withdrawal from service on or
    after attainment of age 55 (age 50 if the employee first
    entered service before June 13, 1997) but prior to age 60
    and having at least 10 years of service, is entitled to a
    retirement annuity as of the date of withdrawal or, at the
    option of the employee, at any time thereafter.
        (2) Any employee who withdraws on or after attainment
    of age 55 (age 50 if the employee first entered service
    before June 13, 1997) and prior to age 60 having at least 5
    years but less than 10 years of service is entitled to a
    retirement annuity upon attainment of age 62, subject to
    the other requirements of this Article.
        (3) Any employee who withdraws from service on or after
    attainment of age 50 but prior to age 60 and is eligible
    for early retirement without discount under the Rule of 80
    as provided in subsection (c) of Section 13-302 is entitled
    to a retirement annuity at the time of withdrawal.
    (c) Withdrawal prior to minimum retirement age. Any
employee, upon withdrawal from service prior to age 55 (age 50
if the employee first entered service before June 13, 1997) and
having at least 10 years of service, shall become entitled to a
retirement annuity upon attainment of age 55 (age 50 if the
employee first entered service before June 13, 1997) or, at the
option of the employee, at any time thereafter, subject to the
other requirements of this Article.
    (d) Withdrawal while disabled. Any employee having at least
5 years of service who has received ordinary disability
benefits on or after January 1, 1986 for the maximum period of
time hereinafter prescribed, and who continues to be disabled
and withdraws from service, shall be entitled to a retirement
annuity. In the case of an employee who enters service after
the effective date of this amendatory Act of the 94th General
Assembly, the required 5 years of service is exclusive of
service credit described in Section 13-313. The age and service
conditions as to eligibility for such annuity shall be waived
as to the employee, but the early retirement discount under
Section 13-302(b) shall apply. If the employee is under age 55
on the date of withdrawal, the retirement annuity shall be
computed by assuming that the employee is then age 55 and then
reduced to its actuarial equivalent at his attained age on that
date according to applicable mortality tables and interest
rates. The retirement annuity shall not be payable for any
period prior to the employee's attainment of age 55 during
which the employee is able to return to gainful employment.
Upon the employee's death while in receipt of a retirement
annuity, a surviving spouse or minor children shall be entitled
to receive a surviving spouse's annuity or child's annuity
subject to the conditions hereinafter prescribed in Sections
13-305 through 13-308.
(Source: P.A. 92-599, eff. 6-28-02.)
 
    (40 ILCS 5/13-302)  (from Ch. 108 1/2, par. 13-302)
    Sec. 13-302. Computation of retirement annuity.
    (a) Computation of annuity. An employee who withdraws from
service on or after July 1, 1989 and who has met the age and
service requirements and other conditions for eligibility set
forth in Section 13-301 of this Article is entitled to receive
a retirement annuity for life equal to 2.2% of average final
salary for each of the first 20 years of service, and 2.4% of
average final salary for each year of service in excess of 20.
The retirement annuity shall not exceed 80% of average final
salary.
    (b) Early retirement discount. If an employee retires prior
to attainment of age 60 with less than 30 years of service, the
annuity computed above shall be reduced by 1/2 of 1% for each
full month between the date the annuity begins and attainment
of age 60, or each full month by which the employee's service
is less than 30 years, whichever is less. However, where the
employee first enters service after June 13, 1997 and does not
have at least 10 years of service exclusive of credit under
Article 20, the annuity computed above shall be reduced by 1/2
of 1% for each full month between the date the annuity begins
and attainment of age 60.
    (c) Rule of 80 - Early retirement without discount. For an
employee who retires on or after January 1, 2003 but on or
before December 31, 2007, if the employee is eligible for a
retirement annuity under Section 13-301 and has at least 10
years of service exclusive of credit under Article 20 and if at
the date of withdrawal the employee's age when added to the
number of years of his or her creditable service equals at
least 80, the early retirement discount in subsection (b) of
this Section does not apply. For purposes of this Rule of 80,
portions of years shall be considered in whole months.
    An employee who has terminated employment with the employer
under this Article prior to the effective date of this
amendatory Act of the 92nd General Assembly and subsequently
re-enters service must remain in service with the employer
under this Article for at least 2 years after re-entry during
the period beginning on January 1, 2003 and ending on December
31, 2007 to be entitled to early retirement without discount
under this subsection (c).
    In the case of an employee who retires under the terms of
Article 20, eligibility for early retirement without discount
under this subsection (c) shall be based upon the employee's
age and service credit at the time of withdrawal from the final
fund.
    (c-1) Early retirement without discount; retirement after
June 29, 1997 and before January 1, 2003. An employee who (i)
has attained age 55 (age 50 if the employee first entered
service before June 13, 1997), (ii) has at least 10 years of
service exclusive of credit under Article 20, (iii) retires
after June 29, 1997 and before January 1, 2003, and (iv)
retires within 6 months of the last day for which retirement
contributions were required, may elect at the time of
application to make a one-time employee contribution to the
Fund and thereby avoid the early retirement reduction specified
in subsection (b). The exercise of the election shall also
obligate the employer to make a one-time nonrefundable
contribution to the Fund.
    The one-time employee and employer contributions shall be a
percentage of the retiring employee's highest full-time annual
salary, calculated as the total amount of salary included in
the highest 26 consecutive pay periods as used in the average
final salary calculation, and based on the employee's age and
service at retirement. The employee rate shall be 7% multiplied
by the lesser of the following 2 numbers: (1) the number of
years, or portion thereof, that the employee is less than age
60; or (2) the number of years, or portion thereof, that the
employee's service is less than 30 years. The employer
contribution shall be at the rate of 20% for each year, or
portion thereof, that the participant is less than age 60.
    Upon receipt of the application, the Board shall determine
the corresponding employee and employer contributions. The
annuity shall not be payable under this subsection until both
the required contributions have been received by the Fund.
However, the date the contributions are received shall not be
considered in determining the effective date of retirement.
    The number of employees who may retire under this Section
in any year may be limited at the option of the District to a
specified percentage of those eligible, not lower than 30%,
with the right to participate to be allocated among those
applying on the basis of seniority in the service of the
employer.
    An employee who has terminated employment and subsequently
re-enters service shall not be entitled to early retirement
without discount under this subsection unless the employee
continues in service for at least 4 years after re-entry.
    (d) Annual increase. Except for employees retiring and
receiving a term annuity, an employee who retires on or after
July 1, 1985 but before July 12, 2001, shall, upon the first
payment date following the first anniversary of the date of
retirement, have the monthly annuity increased by 3% of the
amount of the monthly annuity fixed at the date of retirement.
Except for employees retiring and receiving a term annuity, an
employee who retires on or after July 12, 2001 shall, on the
first day of the month in which the first anniversary of the
date of retirement occurs, have the monthly annuity increased
by 3% of the amount of the monthly annuity fixed at the date of
retirement. The monthly annuity shall be increased by an
additional 3% on the same date each year thereafter. Beginning
January 1, 1993, all annual increases payable under this
subsection (or any predecessor provision, regardless of the
date of retirement) shall be calculated at the rate of 3% of
the monthly annuity payable at the time of the increase,
including any increases previously granted under this Article.
    Any employee who (i) retired before July 1, 1985 with at
least 10 years of creditable service, (ii) is receiving a
retirement annuity under this Article, other than a term
annuity, and (iii) has not received any annual increase under
this subsection, shall begin receiving the annual increases
provided under this subsection (d) beginning on the next
annuity payment date following June 13, 1997.
    (e) Minimum retirement annuity. Beginning January 1, 1993,
the minimum monthly retirement annuity shall be $500 for any
annuitant having at least 10 years of service under this
Article, other than a term annuitant or an annuitant who began
receiving the annuity before attaining age 60. Any such
annuitant who is receiving a monthly annuity of less than $500
shall have the annuity increased to $500 on that date.
    Beginning January 1, 1993, the minimum monthly retirement
annuity shall be $250 for any annuitant (other than a term or
reciprocal annuitant or an annuitant under subsection (d) of
Section 13-301) having less than 10 years of service under this
Article, and for any annuitant (other than a term annuitant)
having at least 10 years of service under this Article who
began receiving the annuity before attaining age 60. Any such
annuitant who is receiving a monthly annuity of less than $250
shall have the annuity increased to $250 on that date.
    Beginning August 1, 2001 on the first day of the month
following the month in which this amendatory Act of the 92nd
General Assembly takes effect (and without regard to whether
the annuitant was in service on or after that effective date),
the minimum monthly retirement annuity for any annuitant having
at least 10 years of service, other than an annuitant whose
annuity is subject to an early retirement discount, shall be
$500 plus $25 for each year of service in excess of 10, not to
exceed $750 for an annuitant with 20 or more years of service.
In the case of a reciprocal annuity, this minimum shall apply
only if the annuitant has at least 10 years of service under
this Article, and the amount of the minimum annuity shall be
reduced by the sum of all the reciprocal annuities payable to
the annuitant by other participating systems under Article 20
of this Code.
    Notwithstanding any other provision of this subsection,
beginning on the first annuity payment date following July 12,
2001, an employee who retired before August 23, 1989 with at
least 10 years of service under this Article but before
attaining age 60 (regardless of whether the retirement annuity
was subject to an early retirement discount) shall be entitled
to the same minimum monthly retirement annuity under this
subsection as an employee who retired with at least 10 years of
service under this Article and after attaining age 60.
    Notwithstanding any other provision of this subsection,
beginning on the first day of the month following the month in
which this amendatory Act of the 94th General Assembly takes
effect (and without regard to whether the annuitant was in
service on or after that effective date), an employee who
retired on or after August 23, 1989 with at least 10 years of
service under this Article but before attaining age 60
(regardless of whether the retirement annuity was subject to an
early retirement discount), except for an employee who is
eligible for an annuity under Section 13-301(d), shall be
entitled to the same minimum monthly retirement annuity under
this subsection as an employee who retired with at least 10
years of service under this Article and after attaining age 60.
(Source: P.A. 92-53, eff. 7-12-01; 92-599, eff. 6-28-02.)
 
    (40 ILCS 5/13-305)  (from Ch. 108 1/2, par. 13-305)
    Sec. 13-305. Surviving spouse's annuity; eligibility. A
surviving spouse who was married to an employee on the date of
the employee's death while in service, or was married to an
employee on the date of withdrawal from service and remained
married to that employee until the employee's death, shall be
entitled to a surviving spouse's annuity payable for life.
However, the annuity shall not be payable to the surviving
spouse of (1) an employee who withdraws from service before
attaining the minimum retirement age unless the deceased
employee had at least 55 with less than 10 years of service, or
at least less than 5 years of service if the employee was
eligible for an annuity upon attainment of age 62 pursuant to
Section 13-301(b) or had been receiving a retirement annuity
pursuant to Section 13-301(d), or (2) an employee not described
in item (1) who first enters service on or after the effective
date of this amendatory Act of 1997 and who has been employed
as an employee for (i) less than 36 months from the date of the
employee's original entry into service or (ii) less than 12
months from the employee's date of latest re-entry into
service; except as otherwise provided in Section 13-306(a) for
an employee whose death arises out of or in the course of the
employee's service to the employer.
    A dissolution of marriage after retirement shall not divest
the employee's spouse of the entitlement to a surviving
spouse's annuity upon the subsequent death of the employee,
provided that the surviving spouse and the deceased employee
had been married to each other for a period of not less than 10
continuous years on the date of retirement.
(Source: P.A. 90-12, eff. 6-13-97.)
 
    (40 ILCS 5/13-306)  (from Ch. 108 1/2, par. 13-306)
    Sec. 13-306. Computation of surviving spouse's annuity.
    (a) Computation of the annuity. The surviving spouse's
annuity shall be equal to 60% of the retirement annuity earned
and accrued to the credit of the deceased employee, whether
death occurs while in service or after withdrawal, plus 1% for
each year of total service of the employee to a maximum of 85%;
provided, however, that if the employee's death arises out of
and in the course of the employee's service to the employer and
is compensable under either the Illinois Workers' Compensation
Act or Illinois Workers' Occupational Diseases Act, the
surviving spouse's annuity is payable regardless of the
employee's length of service and shall be not less than 50% of
the employee's salary at the date of death.
    For any death in service the early retirement discount
required under Section 13-302(b) shall not be applied in
computing the retirement annuity upon which is based the
surviving spouse's annuity.
    For any death after withdrawal and prior to application for
annuity benefits, the early retirement discount required under
Section 13-302(b) shall be applied in computing the retirement
annuity upon which the surviving spouse's annuity is based. The
maximum age discount applied to the employee's retirement
annuity shall not exceed 60%.
    Further, the annuity for a surviving spouse of a withdrawn
employee who was eligible for an annuity upon attainment of age
62 pursuant to Section 13-301(b) but who died prior to age 60
shall be based upon an employee annuity that has been reduced
by 1/2% for each full month between the date the surviving
spouse's annuity begins and the employee's attainment of age
60.
    (b) Reciprocal service. For any employee or annuitant who
retires on or after July 1, 1985 and whose death occurs after
January 1, 1991, having at least 15 years of service with the
employer under this Article, and who was eligible at the time
of death or elected at the time of retirement to have his or
her retirement annuity calculated as provided in Section 20-131
of this Code, the surviving spouse benefit shall be calculated
as of the date of the employee's death as indicated in
subsection (a) as a percentage of the employee's total benefit
as if all service had been with the employer. That benefit
shall then be reduced by the amounts payable by each of the
reciprocal funds as of the date of death so that the total
surviving spouse benefit at that date will be equal to the
benefit which would have been payable had all service been with
the employer under this Article.
    (c) Discount for age differential. The annuity for a
surviving spouse shall be discounted by 0.25% for each full
month that the spouse is younger than the employee as of the
date of withdrawal from service or death in service to a
maximum discount of 60% of the surviving spouse annuity as
calculated under subsections (a), (b), and (e) of this Section.
The discount shall be reduced by 10% for each full year the
marriage has been in continuous effect as of the date of
withdrawal or death in service. There shall be no discount if
the marriage has been in continuous effect for 10 full years or
more at the time of withdrawal or death in service.
    (d) Annual increase. Effective August 23, 1989, on the
first day of each calendar month in which there occurs an
anniversary of the employee's date of retirement or date of
death, whichever occurred first, the surviving spouse's
annuity, other than a term annuity under Section 13-307, shall
be increased by an amount equal to 3% of the amount of the
annuity. Beginning January 1, 1993, all annual increases
payable under this subsection (or any predecessor provision of
this Article) shall be calculated at the rate of 3% of the
monthly annuity payable at the time of the increase, including
any increases previously granted under this Article.
    Beginning January 1, 1993, surviving spouse annuitants
whose deceased spouse died, retired or withdrew from service
before August 23, 1989 with at least 10 years of service under
this Article shall be eligible for the annual increases
provided under this subsection.
    (e) Minimum surviving spouse's annuity.
        (1) Beginning January 1, 1993, the minimum monthly
    surviving spouse's annuity shall be $500 for any annuitant
    whose deceased spouse had at least 10 years of service
    under this Article, other than a surviving spouse who is a
    term annuitant or whose deceased spouse began receiving a
    retirement annuity under this Article before attainment of
    age 60. Any such surviving spouse annuitant who is
    receiving a monthly annuity of less than $500 shall have
    the annuity increased to $500 on that date.
        Beginning January 1, 1993, the minimum monthly
    surviving spouse's annuity shall be $250 for any annuitant
    (other than a term or reciprocal annuitant or an annuitant
    survivor under subsection (d) of Section 13-301) whose
    deceased spouse had less than 10 years of service under
    this Article, and for any annuitant (other than a term
    annuitant) whose deceased spouse had at least 10 years of
    service under this Article and began receiving a retirement
    annuity under this Article before attainment of age 60. Any
    such surviving spouse annuitant who is receiving a monthly
    annuity of less than $250 shall have the annuity increased
    to $250 on that date.
        (2) Beginning August 1, 2001 on the first day of the
    month following the month in which this amendatory Act of
    the 92nd General Assembly takes effect (and without regard
    to whether the deceased spouse was in service on or after
    that effective date), the minimum monthly surviving
    spouse's annuity for any annuitant whose deceased spouse
    had at least 10 years of service shall be the greater of
    the following:
            (A) An amount equal to $500, plus $25 for each year
        of the deceased spouse's service in excess of 10, not
        to exceed $750 for an annuitant whose deceased spouse
        had 20 or more years of service. This subdivision (A)
        is not applicable if the deceased spouse received a
        retirement annuity that was subject to an early
        retirement discount.
            (B) An amount equal to (i) 50% of the retirement
        annuity earned and accrued to the credit of the
        deceased spouse at the time of death, plus (ii) the
        amount of any annual increases applicable to the
        surviving spouse's annuity (including the amount of
        any reversionary annuity) under subsection (d) before
        July 12, 2001 the effective date of this amendatory Act
        of the 92nd General Assembly. In any case in which a
        refund of excess contributions for the surviving
        spouse annuity has been paid by the Fund and the
        surviving spouse annuity is increased due to the
        application of this subdivision (B), the amount of that
        refund shall be recovered by the Fund as an offset
        against the amount of the increase in annuity arising
        from the application of this subdivision (B).
            In the case of a reciprocal annuity, the minimum
        annuity calculated under this subdivision (e)(2) shall
        apply only if the deceased spouse of the annuitant had
        at least 10 years of service under this Article, and
        the amount of the minimum annuity shall be reduced by
        the sum of all the reciprocal annuities payable to the
        annuitant by other participating systems under Article
        20 of this Code.
            The minimum annuity calculated under this
        subdivision (e)(2) is in addition to the amount of any
        reversionary annuity that may be payable.
        (3) Beginning August 1, 2001 on the first day of the
    month following the month in which this amendatory Act of
    the 92nd General Assembly takes effect (and without regard
    to whether the deceased spouse was in service on or after
    that effective date), any surviving spouse who is receiving
    a term annuity under Section 13-307 or any predecessor
    provision of this Article may have that term annuity
    recalculated and converted to a minimum surviving spouse
    annuity under this subsection (e).
        (4) Notwithstanding any other provision of this
    subsection, beginning August 1, 2001 on the first annuity
    payment date following the effective date of this
    amendatory Act of the 92nd General Assembly, an annuitant
    whose deceased spouse retired before August 23, 1989 with
    at least 10 years of service under this Article but before
    attaining age 60 (regardless of whether the retirement
    annuity was subject to an early retirement discount) shall
    be entitled to the same minimum monthly surviving spouse's
    annuity under this subsection as an annuitant whose
    deceased spouse retired with at least 10 years of service
    under this Article and after attaining age 60. Further
    notwithstanding any other provision of this subsection,
    beginning on the first day of the month following the month
    in which this amendatory Act of the 94th General Assembly
    takes effect, an annuitant whose deceased spouse retired on
    or after August 23, 1989 with at least 10 years of service
    under this Article but before attaining age 60 (regardless
    of whether the retirement annuity was subject to an early
    retirement discount) shall be entitled to the same minimum
    monthly surviving spouse's annuity under this subsection
    as an annuitant whose deceased spouse retired with at least
    10 years of service under this Article and after attaining
    age 60.
        (5) The minimum annuity provided under this subsection
    (e) shall be subject to the age discount provided under
    subsection (c) of this Section.
(Source: P.A. 92-53, eff. 7-12-01.)
 
    (40 ILCS 5/13-308)  (from Ch. 108 1/2, par. 13-308)
    Sec. 13-308. Child's annuity.
    (a) Eligibility. A child's annuity shall be provided for
each unmarried child under the age of 18 years (under the age
of 23 years in the case of a full-time student) whose employee
parent dies while in service, or whose deceased parent is an
annuitant or former employee with at least 10 years of
creditable service who did not take a refund of employee
contributions. Eligibility for benefits to unmarried children
over the age of 18 but under the age of 23 begins no earlier
than the first day of the month following the month in which
this amendatory Act of the 94th General Assembly takes effect.
    For purposes of this Section, "employee" includes a former
employee, and "child" means the issue of an employee, or a
child adopted by an employee if the proceedings for adoption
were instituted at least one year prior to the employee's
death.
    Payments shall cease when a child attains the age of 18
years (age of 23 years in the case of a full-time student) or
marries, whichever first occurs. The annuity shall not be
payable unless the employee has been employed as an employee
for at least 36 months from the date of the employee's original
entry into service (at least 24 months in the case of an
employee who first entered service before June 13, the
effective date of this amendatory Act of 1997) and at least 12
months from the date of the employee's latest re-entry into
service; provided, however, that if death arises out of and in
the course of service to the employer and is compensable under
either the Illinois Workers' Compensation Act or Illinois
Workers' Occupational Diseases Act, the annuity is payable
regardless of the employee's length of service.
    (b) Amount. A child's annuity shall be $500 per month for
one child and $350 per month for each additional child, up to a
maximum of $2,500 per month for all children of the employee,
as provided in this Section, if a parent of the child is
living. The child's annuity shall be $1,000 per month for one
child and $500 per month for each additional child, up to a
maximum of $2,500 for all children of the employee, when
neither parent is alive. The total amount payable to all
children of the employee shall be divided equally among those
children. Any child's annuity which commenced prior to July 12,
2001 the effective date of this amendatory Act of the 92nd
General Assembly shall be increased upon the first day of the
month following the month in which that effective date occurs,
to the amount set forth herein.
    (c) Payment. Until a child attains the age of 18 years, a A
child's annuity shall be paid to the child's parent or other
person who shall be providing for the child without requiring
formal letters of guardianship, unless another person shall be
appointed by a court of law as guardian.
(Source: P.A. 92-53, eff. 7-12-01.)
 
    (40 ILCS 5/13-309)  (from Ch. 108 1/2, par. 13-309)
    Sec. 13-309. Duty disability benefit.
    (a) Any employee who becomes disabled, which disability is
the result of an injury or illness compensable under the
Illinois Workers' Compensation Act or the Illinois Workers'
Occupational Diseases Act, is entitled to a duty disability
benefit during the period of disability for which the employee
does not receive any part of salary, or any part of a
retirement annuity under this Article; except that in the case
of an employee who first enters service on or after June 13,
the effective date of this amendatory Act of 1997 and becomes
disabled before the effective date of this amendatory Act of
the 94th General Assembly, a duty disability benefit is not
payable for the first 3 days of disability that would otherwise
be payable under this Section if the disability does not
continue for at least 11 additional days. The changes made to
this Section by this amendatory Act of the 94th General
Assembly are prospective only and do not entitle an employee to
a duty disability benefit for the first 3 days of any
disability that occurred before that effective date and did not
continue for at least 11 additional days. This benefit shall be
75% of salary at the date disability begins. However, if the
disability in any measure resulted from any physical defect or
disease which existed at the time such injury was sustained or
such illness commenced, the duty disability benefit shall be
50% of salary.
    Unless the employer acknowledges that the disability is a
result of injury or illness compensable under the Workers'
Compensation Act or the Workers' Occupational Diseases Act, the
duty disability benefit shall not be payable until the issue of
compensability under those Acts is finally adjudicated. The
period of disability shall be as determined by the Illinois
Workers' Compensation Commission or acknowledged by the
employer.
    The first payment shall be made not later than one month
after the benefit is granted, and subsequent payments shall be
made at least monthly. The Board shall by rule prescribe for
the payment of such benefits on the basis of the amount of
salary lost during the period of disability.
    (b) The benefit shall be allowed only if the following
requirements are met by the employee:
        (1) Application is made to the Board within 90 days
    from the date disability begins;
        (2) A medical report is submitted by at least one
    licensed and practicing physician as part of the employee's
    application; and
        (3) The employee is examined by at least one licensed
    and practicing physician appointed by the Board and found
    to be in a disabled physical condition, and shall be
    re-examined at least annually thereafter during the
    continuance of disability. The employee need not be
    re-examined by a licensed and practicing physician if the
    attorney for the district certifies in writing that the
    employee is entitled to receive compensation under the
    Workers' Compensation Act or the Workers' Occupational
    Diseases Act.
    (c) The benefit shall terminate when:
        (1) The employee returns to work or receives a
    retirement annuity paid wholly or in part under this
    Article;
        (2) The disability ceases;
        (3) The employee attains age 65, but if the employee
    becomes disabled at age 60 or later, benefits may be
    extended for a period of no more than 5 years after
    disablement;
        (4) The employee (i) refuses to submit to reasonable
    examinations by physicians or other health professionals
    appointed by the Board, (ii) fails or refuses to consent to
    and sign an authorization allowing the Board to receive
    copies of or to examine the employee's medical and hospital
    records, or (iii) fails or refuses to provide complete
    information regarding any other employment for
    compensation he or she has received since becoming
    disabled; or
        (5) The employee willfully and continuously refuses to
    follow medical advice and treatment to enable the employee
    to return to work. However this provision does not apply to
    an employee who relies in good faith on treatment by prayer
    through spiritual means alone in accordance with the tenets
    and practice of a recognized church or religious
    denomination, by a duly accredited practitioner thereof.
    In the case of a duty disability recipient who returns to
work, the employee must make application to the Retirement
Board within 2 years from the date the employee last received
duty disability benefits in order to become again entitled to
duty disability benefits based on the injury for which a duty
disability benefit was theretofore paid.
(Source: P.A. 93-721, eff. 1-1-05.)
 
    (40 ILCS 5/13-310)  (from Ch. 108 1/2, par. 13-310)
    Sec. 13-310. Ordinary disability benefit.
    (a) Any employee who becomes disabled as the result of any
cause other than injury or illness incurred in the performance
of duty for the employer or any other employer, or while
engaged in self-employment activities, shall be entitled to an
ordinary disability benefit. The eligible period for this
benefit shall be 25% of the employee's total actual service
prior to the date of disability with a cumulative maximum
period of 5 years.
    (b) The benefit shall be allowed only if the employee files
an application in writing with the Board, and a medical report
is submitted by at least one licensed and practicing physician
as part of the employee's application.
    The benefit is not payable for any disability which begins
during any period of unpaid leave of absence. No benefit shall
be allowed for any period of disability prior to 30 days before
application is made, unless the Board finds good cause for the
delay in filing the application. The benefit shall not be paid
during any period for which the employee receives or is
entitled to receive any part of salary.
    The benefit is not payable for any disability which begins
during any period of absence from duty other than allowable
vacation time in any calendar year. An employee whose
disability begins during any such ineligible period of absence
from service may not receive benefits until the employee
recovers from the disability and is in service for at least 15
consecutive working days after such recovery.
    In the case of an employee who first enters service on or
after June 13, the effective date of this amendatory Act of
1997, an ordinary disability benefit is not payable for the
first 3 days of disability that would otherwise be payable
under this Section if the disability does not continue for at
least 11 additional days.
    Beginning on the effective date of this amendatory Act of
the 94th General Assembly, an employee who first entered
service on or after June 13, 1997 is also eligible for ordinary
disability benefits on the 31st day after the last day worked,
provided all sick leave is exhausted.
    (c) The benefit shall be 50% of the employee's salary at
the date of disability, and shall terminate when the earliest
of the following occurs:
        (1) The employee returns to work or receives a
    retirement annuity paid wholly or in part under this
    Article;
        (2) The disability ceases;
        (3) The employee willfully and continuously refuses to
    follow medical advice and treatment to enable the employee
    to return to work. However this provision does not apply to
    an employee who relies in good faith on treatment by prayer
    through spiritual means alone in accordance with the tenets
    and practice of a recognized church or religious
    denomination, by a duly accredited practitioner thereof;
        (4) The employee (i) refuses to submit to a reasonable
    physical examination within 30 days of application by a
    physician appointed by the Board, (ii) in the case of
    chronic alcoholism, the employee refuses to join a
    rehabilitation program licensed by the Department of
    Public Health of the State of Illinois and certified by the
    Joint Commission on the Accreditation of Hospitals, (iii)
    fails or refuses to consent to and sign an authorization
    allowing the Board to receive copies of or to examine the
    employee's medical and hospital records, or (iv) fails or
    refuses to provide complete information regarding any
    other employment for compensation he or she has received
    since becoming disabled; or
        (5) The eligible period for this benefit has been
    exhausted.
    The first payment of the benefit shall be made not later
than one month after the same has been granted, and subsequent
payments shall be made at intervals of not more than 30 days.
(Source: P.A. 90-12, eff. 6-13-97; 91-887, eff. 7-6-00.)
 
    (40 ILCS 5/13-314)  (from Ch. 108 1/2, par. 13-314)
    Sec. 13-314. Alternative provisions for Water Reclamation
District commissioners.
    (a) Transfer of credits. Any Water Reclamation District
commissioner elected by vote of the people and who has elected
to participate in this Fund may transfer to this Fund credits
and creditable service accumulated under any other pension fund
or retirement system established under Articles 2 through 18 of
this Code, upon payment to the Fund of (1) the amount by which
the employer and employee contributions that would have been
required if he had participated in this Fund during the period
for which credit is being transferred, plus interest, exceeds
the amounts actually transferred from such other fund or system
to this Fund, plus (2) interest thereon at 6% per year
compounded annually from the date of transfer to the date of
payment.
    (b) Alternative annuity. Any participant commissioner may
elect to establish alternative credits for an alternative
annuity by electing in writing to make additional optional
contributions in accordance with this Section and procedures
established by the Board. Unless and until such time as the
U.S. Internal Revenue Service or the federal courts provide a
favorable ruling as described in Section 13-502(f), a such
commissioner may discontinue making the additional optional
contributions by notifying the Fund in writing in accordance
with this Section and procedures established by the Board.
    Additional optional contributions for the alternative
annuity shall be as follows:
        (1) For service after the option is elected, an
    additional contribution of 3% of salary shall be
    contributed to the Fund on the same basis and under the
    same conditions as contributions required under Section
    13-502.
        (2) For contributions on past service, the additional
    contribution shall be 3% of the salary for the applicable
    period of service, plus interest at the annual rate from
    time to time as determined by the Board, compounded
    annually from the date of service to the date of payment.
    Contributions for service before the option is elected may
    be made in a lump sum payment to the Fund or by
    contributing to the Fund on the same basis and under the
    same conditions as contributions required under Section
    13-502. All payments for past service must be paid in full
    before credit is given. No additional optional
    contributions may be made for any period of service for
    which credit has been previously forfeited by acceptance of
    a refund, unless the refund is repaid in full with interest
    at the rate specified in Section 13-603, from the date of
    refund to the date of repayment.
    In lieu of the retirement annuity otherwise payable under
this Article, any commissioner who has elected to participate
in the Fund and make additional optional contributions in
accordance with this Section, has attained age 55, and has at
least 6 years of service credit, may elect to have the
retirement annuity computed as follows: 3% of the participant's
average final salary as a commissioner for each of the first 8
years of service credit, plus 4% of such salary for each of the
next 4 years of service credit, plus 5% of such salary for each
year of service credit in excess of 12 years, subject to a
maximum of 80% of such salary. To the extent such commissioner
has made additional optional contributions with respect to only
a portion of years of service credit, the retirement annuity
will first be determined in accordance with this Section to the
extent such additional optional contributions were made, and
then in accordance with the remaining Sections of this Article
to the extent of years of service credit with respect to which
additional optional contributions were not made. The change in
minimum retirement age (from 60 to 55) made by this amendatory
Act of 1993 applies to persons who begin receiving a retirement
annuity under this Section on or after the effective date of
this amendatory Act, without regard to whether they are in
service on or after that date.
    (c) Disability benefits. In lieu of the disability benefits
otherwise payable under this Article, any commissioner who (1)
has elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform
the duties of office, and (3) was making optional contributions
in accordance with this Section at the time the disability was
incurred, may elect to receive a disability annuity calculated
in accordance with the formula in subsection (b). For the
purposes of this subsection, such commissioner shall be
considered permanently disabled only if: (i) disability occurs
while in service as a commissioner and is of such a nature as
to prevent the reasonable performance of the duties of office
at the time; and (ii) the Board has received a written
certification by at least 2 licensed physicians appointed by it
stating that such commissioner is disabled and that the
disability is likely to be permanent.
    (d) Alternative survivor's benefits. In lieu of the
survivor's benefits otherwise payable under this Article, the
spouse or eligible child of any deceased commissioner who (1)
had elected to participate in the Fund, and (2) was either
making (or had already made) additional optional contributions
on the date of death, or was receiving an annuity calculated
under this Section at the time of death, may elect to receive
an annuity beginning on the date of the commissioner's death,
provided that the spouse and commissioner must have been
married on the date of the last termination of a service as
commissioner and for a continuous period of at least one year
immediately preceding death.
    The annuity shall be payable beginning on the date of the
commissioner's death if the spouse is then age 50 or over, or
beginning at age 50 if the age of the spouse is less than 50
years. If a minor unmarried child or children of the
commissioner, under age 18 (age 23 in the case of a full-time
student), also survive, and the child or children are under the
care of the eligible spouse, the annuity shall begin as of the
date of death of the commissioner without regard to the
spouse's age.
    The annuity to a spouse shall be the greater of (i) 66 2/3%
of the amount of retirement annuity earned by the commissioner
on the date of death, subject to a minimum payment of 10% of
salary, provided that if an eligible spouse, regardless of age,
has in his or her care at the date of death of the commissioner
any unmarried child or children of the commissioner under age
18, the minimum annuity shall be 30% of the commissioner's
salary, plus 10% of salary on account of each minor child of
the commissioner, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of the
deceased commissioner's salary or (ii) for the spouse of a
commissioner whose death occurs on or after the effective date
of this amendatory Act of the 94th General Assembly, the
surviving spouse annuity shall be computed in the same manner
as described in Section 13-306(a). The number of total service
years used to calculate the commissioner's annuity shall be the
number of service years used to calculate the annuity for that
commissioner's surviving spouse. In the event there shall be no
spouse of the commissioner surviving, or should a spouse die
while eligible minor children still survive the commissioner,
each such child shall be entitled to an annuity equal to 20% of
salary of the commissioner subject to a combined total payment
on account of all such children not to exceed 50% of salary of
the commissioner. The salary to be used in the calculation of
these benefits shall be the same as that prescribed for
determining a retirement annuity as provided in subsection (b)
of this Section.
    Upon the death of a commissioner occurring after
termination of a service or while in receipt of a retirement
annuity, the combined total payment to a spouse and minor
children, or to minor children alone if no eligible spouse
survives, shall be limited to 85% 75% of the amount of
retirement annuity earned by the commissioner.
    Adopted children shall have status as natural children of
the commissioner only if the proceedings for adoption were
commenced at least one year prior to the date of the
commissioner's death.
    Marriage of a child or attainment of age 18 (age 23 in the
case of a full-time student), whichever first occurs, shall
render the child ineligible for further consideration in the
payment of annuity to a spouse or in the increase in the amount
thereof. Upon attainment of ineligibility of the youngest minor
child of the commissioner, the annuity shall immediately revert
to the amount payable upon death of a commissioner leaving no
minor children surviving. If the spouse is under age 50 at such
time, the annuity as revised shall be deferred until such age
is attained.
    (e) Refunds. Refunds of additional optional contributions
shall be made on the same basis and under the same conditions
as provided under Section 13-601. Interest shall be credited on
the same basis and under the same conditions as for other
contributions.
    Optional contributions shall be accounted for in a separate
Commission's Optional Contribution Reserve. Optional
contributions under this Section shall be included in the
amount of employee contributions used to compute the tax levy
under Section 13-503.
    (f) Effective date. The effective date of this plan of
optional alternative benefits and contributions shall be the
date upon which approval was received from the U.S. Internal
Revenue Service. The plan of optional alternative benefits and
contributions shall not be available to any former employee
receiving an annuity from the Fund on the effective date,
unless said former employee re-enters service and renders at
least 3 years of additional service after the date of re-entry
as a commissioner.
(Source: P.A. 90-12, eff. 6-13-97; 91-887, eff. 7-6-00.)
 
    (40 ILCS 5/13-402)  (from Ch. 108 1/2, par. 13-402)
    Sec. 13-402. Length of service. For the purpose of
computing the length of service for the retirement annuity,
surviving spouse's annuity, and child's annuity, and
calculating the minimum service requirement for payment of
military service under subsection (b) of Section 13-403,
service of 120 days in any one calendar year shall constitute
one year of service and service for any fractional part thereof
shall constitute an equal fractional part of one year of
service unless specifically provided otherwise. For all other
purposes under this Article, including but not limited to the
optional plans of additional benefits and contributions
provided under Sections 13-304, 13-304.1, and 13-314 of this
Article, 26 pay periods of service during any 12 consecutive
months shall constitute a year of service, and service rendered
for 50% or more of a single pay period shall constitute service
for the full pay period. Service of less than 50% of a single
pay period shall not be counted.
(Source: P.A. 93-334, eff. 7-24-03.)
 
    (40 ILCS 5/13-403)  (from Ch. 108 1/2, par. 13-403)
    Sec. 13-403. Military service.
    (a) Any employee who, after commencement of service with
the Employer, enlisted, was inducted or was otherwise ordered
to serve in the military forces of the United States pursuant
to any law, shall receive full service credit for the various
purposes of this Article as though the employee were in the
active service of the Employer during the period of military
service provided that:
        (1) beginning July 1, 1963, such service credit shall
    be granted only for military service for which the employee
    volunteers or is inducted or called into military service
    pursuant to a call of a duly constituted authority or a law
    of the United States declaring a national emergency;
        (2) the employee returns to the employ of the Employer
    within 90 days after the termination of the national
    emergency; and
        (3) the total service credit for such military service
    shall not exceed 5 years except that any employee who on
    July 1, 1963 had accrued more than 5 years of such credit
    shall be entitled to the total amount thereof.
    (b) For a ten-year period following July 24, 2003 the
effective date of this amendatory Act of the 93rd General
Assembly, a contributing employee or commissioner meeting the
minimum service requirements provided under this subsection
may establish additional service credit for a period of up to 2
years of active military service in the United States Armed
Forces for which he or she does not qualify for credit under
subsection (a), provided that (1) the person was not
dishonorably discharged from the military service, and (2) the
amount of service credit established by the person under this
subsection (b), when added to the amount of any military
service credit granted to the person under subsection (a),
shall not exceed 5 years.
    The minimum service requirement for a contributing
employee is 10 years of service credit as provided in Sections
13-401 and 13-402 of this Article and exclusive of Article 20.
The minimum service requirement for a contributing
commissioner is 5 years of service credit as provided in
Sections 13-401 and 13-402 of this Article and exclusive of
Article 20.
    In order to establish military service credit under this
subsection (b), the applicant must submit a written application
to the Fund, including the applicant's discharge papers from
military service, and pay to the Fund (i) employee
contributions at the rates provided in this Article, based upon
the person's salary on the last date as a participating
employee prior to the military service or on the first date as
a participating employee after the military service, whichever
is greater, plus (ii) the current amount determined by the
board to be equal to the employer's normal cost of the benefits
accrued for such military service, plus (iii) regular interest
of 3% compounded annually on items (i) and (ii) from the date
of entry or re-entry as a participating employee following the
military service to the date of payment. Contributions must be
paid in full before the credit is granted. Credit established
under this subsection may be used for pension purposes only.
    Notwithstanding any other provision of this Section, a
person may not establish creditable service under this Section
for any period for which the person receives credit under any
other public employee retirement system, unless the credit
under that other retirement system has been irrevocably
relinquished.
(Source: P.A. 93-334, eff. 7-24-03.)
 
    (40 ILCS 5/13-502)  (from Ch. 108 1/2, par. 13-502)
    Sec. 13-502. Employee contributions; deductions from
salary.
    (a) Retirement annuity and child's annuity. There shall be
deducted from each payment of salary an amount equal to 7 1/2%
of salary as the employee's contribution for the retirement
annuity, including annual increases therefore and child's
annuity.
    (b) Surviving spouse's annuity. There shall be deducted
from each payment of salary an amount equal to 1 1/2% of salary
as the employee's contribution for the surviving spouse's
annuity and annual increases therefor.
    (c) Pickup of employee contributions. The Employer may pick
up employee contributions required under subsections (a) and
(b) of this Section. If contributions are picked up they shall
be treated as Employer contributions in determining tax
treatment under the United States Internal Revenue Code, and
shall not be included as gross income of the employee until
such time as they are distributed. The Employer shall pay these
employee contributions from the same source of funds used in
paying salary to the employee. The Employer may pick up these
contributions by a reduction in the cash salary of the employee
or by an offset against a future salary increase or by a
combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up
they shall be treated for all purposes of this Article 13,
including Sections 13-503 and 13-601, in the same manner and to
the same extent as employee contributions made prior to the
date picked up.
    (d) Subject to the requirements of federal law, the
Employer shall pick up optional contributions that the employee
has elected to pay to the Fund under Section 13-304.1, and the
contributions so picked up shall be treated as employer
contributions for the purposes of determining federal tax
treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the
contributions from the same fund that is used to pay earnings
to the employee. The Employer shall, however, continue to
withhold federal and State income taxes based upon
contributions made under Section 13-304.1 until the Internal
Revenue Service or the federal courts rule that pursuant to
Section 414(h) of the U.S. Internal Revenue Code of 1986, as
amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed
or made available.
    (e) Each employee is deemed to consent and agree to the
deductions from compensation provided for in this Article.
    (f) Subject to the requirements of federal law, the
Employer shall pick up contributions that a commissioner has
elected to pay to the Fund under Section 13-314, and the
contributions so picked up shall be treated as Employer
contributions for the purposes of determining federal tax
treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the commissioner and shall pay
the contributions from the same fund as is used to pay earnings
to the commissioner. The Employer shall, however, continue to
withhold federal and State income taxes based upon
contributions made under Section 13-314 until the U.S. Internal
Revenue Service or the federal courts rule that pursuant to
Section 414(h) of the Internal Revenue Code of 1986, as
amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed
or made available.
(Source: P.A. 92-599, eff. 6-28-02.)
 
    (40 ILCS 5/13-601)  (from Ch. 108 1/2, par. 13-601)
    Sec. 13-601. Refunds.
    (a) Withdrawal from service. Upon withdrawal from service,
an employee under age 55 (age 50 if the employee first entered
service before June 13, 1997), or an employee age 55 (age 50 if
the employee first entered service before June 13, 1997) or
over but less than 60 having less than 20 years of service, or
an employee age 60 or over having less than 5 years of service
shall be entitled, upon application, to a refund of total
contributions from salary deductions or amounts otherwise paid
under this Article by the employee. The refund shall not
include interest credited to the contributions. The Board may,
in its discretion, withhold payment of a refund for a period
not to exceed one year from the date of filing an application
for refund.
    (b) Surviving spouse's annuity contributions. A refund of
all amounts deducted from salary or otherwise contributed by an
employee for the surviving spouse's annuity shall be paid upon
retirement to any employee who on the date of retirement is
either not married or is married but whose spouse is not
eligible for a surviving spouse's annuity paid wholly or in
part under this Article. The refund shall include interest on
each contribution at the rate of 3% per annum compounded
annually from the date of the contribution to the date of the
refund.
    (c) When paid to children, estate or beneficiary. Whenever
the total accumulations, to the account of an employee from
employee contributions, including interest to the employee's
date of withdrawal, have not been paid to the employee and
surviving spouse as a retirement or spouse's annuity before the
death of the survivor of the employee and spouse, a refund
shall be paid as follows: an amount equal to the excess of such
amounts over the amounts paid on such annuities without
interest on either such amount, shall be paid to the children
of the employee, in equal parts to each, unless the employee
has directed in writing, signed by him before an officer
authorized to administer oaths, and filed with the Board before
the employee's death, that any such amount shall be refunded
and paid to any one or more of such children; and if there are
not children, such other beneficiary or beneficiaries as might
be designated by the employee. If there are no such children or
designation of beneficiary, the refund shall be paid to the
personal representative of the employee's estate.
    If a personal representative of the estate has not been
appointed within 90 days from the date on which a refund became
payable, the refund may be applied, in the discretion of the
Board, toward the payment of the employee's or the surviving
spouse's burial expenses. Any remaining balance shall be paid
to the heirs of the employee according to the law of descent
and distribution of the State of Illinois.
    If a reversionary annuity becomes payable under Section
13-303, the refund provided in this section shall not be paid
until the death of the reversionary annuitant and the refund
otherwise payable under this section shall be then further
reduced by the amount of the reversionary annuity paid.
    (d) In lieu of annuity. Notwithstanding the provisions set
forth in subsection (a) of this section, whenever an employee's
or surviving spouse's annuity will be less than $200 per month,
the employee or surviving spouse, as the case may be, may elect
to receive a refund of accumulated employee contributions;
provided, however, that if the election is made by a surviving
spouse the refund shall be reduced by any amounts theretofore
paid to the employee in the form of an annuity.
    (e) Forfeiture of rights. An employee or surviving spouse
who receives a refund forfeits the right to receive an annuity
or any other benefit payable under this Article except that if
the refund is to a surviving spouse, any child or children of
the employee shall not be deprived of the right to receive a
child's annuity as provided in Section 13-308 of this Article,
and the payment of a child's annuity shall not reduce the
amount refundable to the surviving spouse.
(Source: P.A. 87-794; 87-1265.)
 
    (40 ILCS 5/13-603)  (from Ch. 108 1/2, par. 13-603)
    Sec. 13-603. Restoration of rights. If an employee who has
received a refund subsequently re-enters the service and
renders one year of contributing service from the date of such
re-entry, the employee shall be entitled to have restored all
accumulation and service credits previously forfeited by
making a repayment of the refund, including interest from the
date of the refund to the date of repayment at a rate equal to
the higher of 8% per annum or the actuarial investment return
assumption used in the Fund's most recent Annual Actuarial
Statement. Repayment may be made either directly to the Fund or
in a manner similar to that provided for the contributions
required under Section 13-502. The service credits represented
thereby, or any part thereof, shall not become effective unless
the full amount due has been paid by the employee, including
interest. The repayment must be made in full by the employee no
later than 90 days following the date of the employee's final
withdrawal from service. If the employee fails to make a full
repayment, any partial amounts paid by the employee shall be
refunded without interest if the employee dies in service or
withdraws.
(Source: P.A. 91-887, eff. 7-6-00.)
 
    (40 ILCS 5/13-706)  (from Ch. 108 1/2, par. 13-706)
    Sec. 13-706. Board powers and duties. The Board shall have
the powers and duties set forth in this Section, in addition to
such other powers and duties as may be provided in this Article
and in this Code:
    (a) To supervise collections. To see that all amounts
specified in this Article to be applied to the Fund, from any
source, are collected and applied.
    (b) To notify of deductions. To notify the Clerk of the
Water Reclamation District of the deductions to be made from
the salaries of employees.
    (c) To accept gifts. To accept by gift, grant, bequest or
otherwise any money or property of any kind and use the same
for the purposes of the Fund.
    (d) To invest the reserves. To invest the reserves of the
Fund in accordance with the provisions set forth in Section
1-113 of Article 1 of this Code. The Board is also authorized
to transfer securities to the Illinois State Board of
Investment for the purpose of participation in any commingled
investment fund as provided in Article 22A of this Code.
    (e) To authorize payments. To consider and pass upon all
applications for annuities and benefits; to authorize or
suspend the payment of any annuity or benefit; to inquire into
the validity and legality of any grant of annuity or benefit
paid from or payable out of the Fund; to increase, reduce, or
suspend any such annuity or benefit whenever the annuity or
benefit, or any part thereof, was secured or granted, or the
amount thereof fixed, as the result of misrepresentation,
fraud, or error. No such annuity or benefit shall be
permanently reduced or suspended until the affected annuitant
or beneficiary is first notified of the proposed action and
given an opportunity to be heard. No trustee of the Board shall
vote upon that trustee's own personal claim for annuity,
benefit or refund, or participate in the deliberations of the
Board as to the validity of any such claim. The Board shall
have exclusive original jurisdiction in all matters of claims
for annuities, benefits and refunds.
    (f) To submit an annual report. To submit a report in July
of each year to the Board of Commissioners of the Water
Reclamation District as of the close of business on December
31st of the preceding year. The report shall include the
following:
        (1) A balance sheet, showing the financial and
    actuarial condition of the Fund as of the end of the
    calendar year;
        (2) A statement of receipts and disbursements during
    such year;
        (3) A statement showing changes in the asset,
    liability, reserve and surplus accounts during such year;
        (4) A detailed statement of investments as of the end
    of the year; and
        (5) Any additional information as is deemed necessary
    for proper interpretation of the condition of the Fund.
    (g) To subpoena witnesses. To compel witnesses to attend
and testify before it upon any matter concerning the Fund and
allow witness fees not in excess of $6 for attendance upon any
one day. The President and other members of the Board may
administer oaths to witnesses.
    (h) To appoint employees and consultants. To appoint such
actuarial, medical, legal, investigational, clerical or
financial employees and consultants as are necessary, and fix
their compensation.
    (i) To make rules. To make rules and regulations necessary
for the administration of the affairs of the Fund.
    (j) To waive guardianship. To waive the requirement of
legal guardianship of any minor unmarried beneficiary of the
Fund living with a parent or grandparent, and legal
guardianship of any beneficiary under legal disability whose
husband, wife, or parent is managing such beneficiary's
affairs, whenever the Board deems such waiver to be in the best
interest of the beneficiary.
    (k) To collect amounts due. To collect any amounts due to
the Fund from any participant or beneficiary prior to payment
of any annuity, benefit or refund.
    (l) To invoke rule of offset. To offset against any amount
payable to an employee or to any other person such sums as may
be due to the Fund or may have been paid by the Fund due to
misrepresentation, fraud or error.
    (m) To assess and collect interest on amounts due to the
Fund using the annual rate as shall from time to time be
determined by the Board, compounded annually from the date of
notification to the date of payment.
(Source: P.A. 87-794.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.29 as follows:
 
    (30 ILCS 805/8.29 new)
    Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 94th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.