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Public Act 098-0599 |
SB0001 Enrolled | LRB098 05457 JDS 35491 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Legislative statement. |
At the time of passage of this amendatory Act of the 98th |
General Assembly, Illinois has both atypically large debts and |
structural budgetary imbalances that will, unless addressed by |
the General Assembly, lead to even greater and rapidly growing |
debts and deficits. Already, Illinois has the lowest credit |
rating of any state, and it faces the prospect of future credit |
downgrades that will further increase the high cost of |
borrowing. |
The State has taken significant action to address these |
fiscal troubles, including, but not limited to, increasing the |
income tax and reducing pension benefits for future employees. |
Further, the State has enacted a series of budgets over the |
last several fiscal years that resulted in deep cuts to |
important discretionary programs that are essential to the |
people of Illinois. |
At the time of passage of this amendatory Act of the 98th |
General Assembly, the State's retirement systems have unfunded |
actuarially accrued liabilities of approximately $100 billion. |
Meanwhile, the State's annual pension contribution has |
substantially increased in recent years, and will continue to |
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increase in coming years. The General Assembly recognizes that |
without significant pension reform, the unfunded liability and |
the State's pension contribution will continue to grow, and |
further burden the fiscal stability of both the State and its |
retirement systems. |
This amendatory Act of the 98th General Assembly is |
intended to address the fiscal issues facing the State and its |
retirement systems in a manner that is feasible, consistent |
with the Illinois Constitution, and advantageous to both the |
taxpayers and employees impacted by these changes. Having |
considered other alternatives that would not involve changes to |
the retirement systems, the General Assembly has determined |
that the fiscal problems facing the State and its retirement |
systems cannot be solved without making some changes to the |
structure of the retirement systems. As a result, this |
amendatory Act requires more fiscal responsibility of the |
State, while minimizing the impact on current and retired State |
employees. |
Going forward, the automatic annual increase in retirement |
annuity will be based on a participant's years of service to |
the State and inflation, which more accurately reflects changes |
in the cost of living. For participants who have yet to receive |
an annuity, a pensionable salary cap will be imposed; however, |
it will only impact future salary increases that exceed a cap. |
Those workers 45 years of age and younger will be required to |
work an additional 4 months for each year under 46, which |
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results in a minimal increase in retirement age given that the |
life expectancy for a 45 year old is 87 years of age. Current |
employees will receive a 1% reduction in required employee |
contributions. With these changes, the State can adopt an |
actuarially sound funding formula that will result in the |
pension systems achieving 100% funding no later than 2044. The |
State will also make additional contributions that will |
considerably aid in reducing the unfunded actuarially accrued |
liability. |
The General Assembly finds that this amendatory Act of the |
98th General Assembly will lead to fiscal stability for the |
State and its pension systems. |
Section 3. The Illinois Public Labor Relations Act is |
amended by changing Sections 4 and 15 and adding Section 7.5 as |
follows: |
(5 ILCS 315/4) (from Ch. 48, par. 1604)
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Sec. 4. Management Rights. Employers shall not be |
required to bargain
over matters of inherent managerial policy, |
which shall include such areas
of discretion or policy as the |
functions of the employer, standards of
services,
its overall |
budget, the organizational structure and selection of new
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employees, examination techniques
and direction of employees. |
Employers, however, shall be required to bargain
collectively |
with regard to
policy matters directly affecting wages, hours |
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and terms and conditions of employment
as well as the impact |
thereon upon request by employee representatives , except as |
provided in Section 7.5 .
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To preserve the rights of employers and exclusive |
representatives which
have established collective bargaining |
relationships or negotiated collective
bargaining agreements |
prior to the effective date of this Act, employers
shall be |
required to bargain collectively with regard to any matter |
concerning
wages, hours or conditions of employment about which |
they have bargained
for and agreed to in a collective |
bargaining agreement
prior to the effective date of this Act , |
except as provided in Section 7.5 .
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The chief judge of the judicial circuit that employs a |
public employee who
is
a court reporter, as defined in the |
Court Reporters Act, has the authority to
hire, appoint, |
promote, evaluate, discipline, and discharge court reporters
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within that judicial circuit.
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Nothing in this amendatory Act of the 94th General Assembly |
shall
be construed to intrude upon the judicial functions of |
any court. This
amendatory Act of the 94th General Assembly |
applies only to nonjudicial
administrative matters relating to |
the collective bargaining rights of court
reporters.
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(Source: P.A. 94-98, eff. 7-1-05.)
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(5 ILCS 315/7.5 new) |
Sec. 7.5. Duty to bargain regarding pension amendments. |
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(a) Notwithstanding any provision of this Act, employers |
shall not be required to bargain over matters affected by the |
changes, the impact of changes, and the implementation of |
changes made to Article 14, 15, or 16 of the Illinois Pension |
Code, or Article 1 of that Code as it applies to those |
Articles, made by this amendatory Act of the 98th General |
Assembly, or over any other provision of Article 14, 15, or 16 |
of the Illinois Pension Code, or of Article 1 of that Code as |
it applies to those Articles, which are prohibited subjects of |
bargaining; nor shall the changes, the impact of changes, or |
the implementation of changes made to Article 14, 15, or 16 of |
the Illinois Pension Code, or to Article 1 of that Code as it |
applies to those Articles, by this amendatory Act of the 98th |
General Assembly or any other provision of Article 14, 15, or |
16 of the Illinois Pension Code, or of Article 1 of that Code |
as it applies to those Articles, be subject to interest |
arbitration or any award issued pursuant to interest |
arbitration. The provisions of this Section shall not apply to |
an employment contract or collective bargaining agreement that |
is in effect on the effective date of this amendatory Act of |
the 98th General Assembly. However, any such contract or |
agreement that is subsequently modified, amended, or renewed |
shall be subject to the provisions of this Section. The |
provisions of this Section shall also not apply to the ability |
of an employer and employee representative to bargain |
collectively with regard to the pick up of employee |
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contributions pursuant to Section 14-133.1, 15-157.1, or |
16-152.1 of the Illinois Pension Code. |
(b) Nothing in this Section, however, shall be construed as |
otherwise limiting any of the obligations and requirements |
applicable to each employer under any of the provisions of this |
Act, including, but not limited to, the requirement to bargain |
collectively with regard to policy matters directly affecting |
wages, hours and terms and conditions of employment as well as |
the impact thereon upon request by employee representatives, |
except for the matters deemed prohibited subjects of bargaining |
under subsection (a) of this Section. Nothing in this Section |
shall further be construed as otherwise limiting any of the |
rights of employees or employee representatives under the |
provisions of this Act, except for matters deemed prohibited |
subjects of bargaining under subsection (a) of this Section. |
(c) In case of any conflict between this Section and any |
other provisions of this Act or any other law, the provisions |
of this Section shall control.
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(5 ILCS 315/15) (from Ch. 48, par. 1615)
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Sec. 15. Act Takes Precedence. |
(a) In case of any conflict between the
provisions of this |
Act and any other law (other than Section 5 of the State |
Employees Group Insurance Act of 1971 and other than the |
changes made to the Illinois Pension Code by Public Act 96-889 |
and other than as provided in Section 7.5 this amendatory Act |
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of the 96th General Assembly ), executive order or |
administrative
regulation relating to wages, hours and |
conditions of employment and employment
relations, the |
provisions of this Act or any collective bargaining agreement
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negotiated thereunder shall prevail and control.
Nothing in |
this Act shall be construed to replace or diminish the
rights |
of employees established by Sections 28 and 28a of the |
Metropolitan
Transit Authority Act, Sections 2.15 through 2.19 |
of the Regional Transportation
Authority Act. The provisions of |
this Act are subject to Section 7.5 of this Act and Section 5 |
of the State Employees Group Insurance Act of 1971. Nothing in |
this Act shall be construed to replace the necessity of |
complaints against a sworn peace officer, as defined in Section |
2(a) of the Uniform Peace Officer Disciplinary Act, from having |
a complaint supported by a sworn affidavit.
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(b) Except as provided in subsection (a) above, any |
collective bargaining
contract between a public employer and a |
labor organization executed pursuant
to this Act shall |
supersede any contrary statutes, charters, ordinances, rules
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or regulations relating to wages, hours and conditions of |
employment and
employment relations adopted by the public |
employer or its agents. Any collective
bargaining agreement |
entered into prior to the effective date of this Act
shall |
remain in full force during its duration.
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(c) It is the public policy of this State, pursuant to |
paragraphs (h)
and (i) of Section 6 of Article VII of the |
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Illinois Constitution, that the
provisions of this Act are the |
exclusive exercise by the State of powers
and functions which |
might otherwise be exercised by home rule units. Such
powers |
and functions may not be exercised concurrently, either |
directly
or indirectly, by any unit of local government, |
including any home rule
unit, except as otherwise authorized by |
this Act.
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(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11 .)
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Section 5. The Governor's Office of Management and Budget |
Act is amended by changing Sections 7 and 8 as follows:
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(20 ILCS 3005/7) (from Ch. 127, par. 417)
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Sec. 7.
All statements and estimates of expenditures |
submitted to the
Office in connection with the preparation of a |
State budget, and any other
estimates of expenditures, |
supporting requests for appropriations, shall be
formulated |
according to the various functions and activities for which the
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respective department, office or institution of the State |
government
(including the elective officers in the executive |
department and including
the University of Illinois and the |
judicial department) is responsible. All
such statements and |
estimates of expenditures relating to a particular
function or |
activity shall be further formulated or subject to analysis in
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accordance with the following classification of objects:
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(1) Personal services
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(2) State contribution for employee group insurance
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(3) Contractual services
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(4) Travel
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(5) Commodities
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(6) Equipment
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(7) Permanent improvements
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(8) Land
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(9) Electronic Data Processing
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(10) Telecommunication services
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(11) Operation of Automotive Equipment
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(12) Contingencies
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(13) Reserve
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(14) Interest
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(15) Awards and Grants
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(16) Debt Retirement
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(17) Non-cost Charges .
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(18) State retirement contribution for annual normal cost |
(19) State retirement contribution for unfunded accrued |
liability. |
(Source: P.A. 93-25, eff. 6-20-03 .)
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(20 ILCS 3005/8) (from Ch. 127, par. 418)
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Sec. 8.
When used in connection with a State budget or |
expenditure or
estimate, items (1) through (16) in the |
classification of objects stated in
Section 7 shall have the |
meanings ascribed to those items in Sections 14
through 24.7, |
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respectively, of the State Finance Act. "An Act in relation to |
State finance",
approved June 10, 1919, as amended.
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When used in connection with a State budget or expenditure |
or
estimate, items (18) and (19) in the classification of |
objects stated in
Section 7 shall have the meanings ascribed to |
those items in Sections 24.12 and 24.13, respectively, of the |
State Finance Act. |
(Source: P.A. 82-325.)
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Section 7. The State Finance Act is amended by changing |
Section 13 and by adding Sections 24.12 and 24.13 as follows:
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(30 ILCS 105/13) (from Ch. 127, par. 149)
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Sec. 13.
The objects and purposes for which appropriations |
are made
are classified and standardized by items as follows:
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(1) Personal services;
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(2) State contribution for employee group insurance;
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(3) Contractual services;
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(4) Travel;
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(5) Commodities;
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(6) Equipment;
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(7) Permanent improvements;
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(8) Land;
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(9) Electronic Data Processing;
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(10) Operation of automotive equipment;
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(11) Telecommunications services;
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(12) Contingencies;
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(13) Reserve;
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(14) Interest;
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(15) Awards and Grants;
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(16) Debt Retirement;
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(17) Non-Cost Charges;
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(18) State retirement contribution for annual normal cost; |
(19) State retirement contribution for unfunded accrued |
liability; |
(20) (18) Purchase Contract for Real Estate.
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When an appropriation is made to an officer, department, |
institution,
board, commission or other agency, or to a private |
association or
corporation, in one or more of the items above |
specified, such
appropriation shall be construed in accordance |
with the definitions and
limitations specified in this Act, |
unless the appropriation act
otherwise provides.
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An appropriation for a purpose other than one specified and |
defined
in this Act may be made only as an additional, separate |
and distinct
item, specifically stating the object and purpose |
thereof.
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(Source: P.A. 84-263; 84-264.)
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(30 ILCS 105/24.12 new) |
Sec. 24.12. "State retirement contribution for annual |
normal cost" defined. The term "State retirement contribution |
for annual normal cost" means the portion of the total required |
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State contribution to a retirement system for a fiscal year |
that represents the State's portion of the System's projected |
normal cost for that fiscal year, as determined and certified |
by the board of trustees of the retirement system in |
conformance with the applicable provisions of the Illinois |
Pension Code. |
(30 ILCS 105/24.13 new) |
Sec. 24.13. "State retirement contribution for unfunded |
accrued liability" defined. The term "State retirement |
contribution for unfunded accrued liability" means the portion |
of the total required State contribution to a retirement system |
for a fiscal year that is not included in the State retirement |
contribution for annual normal cost. |
Section 10. The Budget Stabilization Act is amended by |
changing Sections 20 and 25 as follows: |
(30 ILCS 122/20) |
Sec. 20. Pension Stabilization Fund. |
(a) The Pension Stabilization Fund is hereby created as a |
special fund in the State treasury. Moneys in the fund shall be |
used for the sole purpose of making payments to the designated |
retirement systems as provided in Section 25.
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(b) For each fiscal year through State fiscal year 2014, |
when the General Assembly's
appropriations and transfers or |
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diversions as required by law
from general funds do not exceed |
99% of the
estimated general funds revenues pursuant to |
subsection (a)
of Section 10, the Comptroller shall transfer |
from the
General Revenue Fund as provided by this Section a |
total
amount equal to 0.5% of the estimated general funds |
revenues
to the Pension Stabilization Fund. |
(c) For each fiscal year through State fiscal year 2014, |
when the General Assembly's
appropriations and transfers or |
diversions as required by law
from general funds do not exceed |
98% of the
estimated general funds revenues pursuant to |
subsection (b)
of Section 10, the Comptroller shall transfer |
from the
General Revenue Fund as provided by this Section a |
total
amount equal to 1.0% of the estimated general funds |
revenues
to the Pension Stabilization Fund. |
(c-5) In addition to any other amounts required to be |
transferred under this Section, in State fiscal year 2016 and |
each fiscal year thereafter through State fiscal year 2045, or |
when each of the designated retirement systems, as
defined in |
Section 25, has achieved 100% funding, whichever occurs
first, |
the State Comptroller shall order transferred and the State |
Treasurer shall transfer from the General Revenue Fund to the |
Pension Stabilization Fund an amount equal to 10% of (1) the |
sum of the amounts certified by the designated retirement |
systems under subsection (a-5) of Section 2-134, subsection |
(a-10) of Section 14-135.08, subsection (a-10) of Section |
15-165, and subsection (a-10) of Section 16-158 of this Code |
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for that fiscal year minus (2) the sum of (i) the transfer |
required under subsection (c-10) of this Section for that |
fiscal year and (ii) the sum of the required State |
contributions certified by the retirement systems under |
subsection (a) of Section 2-134, subsection (a-5) of Section |
14-135.08, subsection (a-5) of Section 15-165, and subsection |
(a-5) of Section 16-158 of this Code for that fiscal year. The |
transferred amount is intended to represent one-tenth of the |
annual savings to the State resulting from the enactment of |
this amendatory Act of the 98th General Assembly. |
(c-10) In State fiscal year 2019, the State Comptroller |
shall order transferred and the State Treasurer shall transfer |
$364,000,000 from the General Revenue Fund to the Pension |
Stabilization Fund. In State fiscal year 2020 and each fiscal |
year thereafter until terminated under subsection (c-15), the |
State Comptroller shall order transferred and the State |
Treasurer shall transfer $1,000,000,000 from the General |
Revenue Fund to the Pension Stabilization Fund. |
(c-15) The transfers made beginning in State fiscal year |
2020 pursuant to subsection (c-10) of
this Section shall |
terminate at the end of State fiscal year
2045 or when each of |
the designated retirement systems, as
defined in Section 25, |
has achieved 100% funding, whichever occurs
first. |
(d) The Comptroller shall transfer 1/12 of the total
amount |
to be transferred each fiscal year under this Section
into the |
Pension Stabilization Fund on the first day of each
month of |
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that fiscal year or as soon thereafter as possible; except that |
the final transfer of the fiscal year shall be made as soon as |
practical after the August 31 following the end of the fiscal |
year. |
Until State fiscal year 2015, before Before the final |
transfer for a fiscal year is made, the Comptroller shall |
reconcile the estimated general funds revenues used in |
calculating the other transfers under this Section for that |
fiscal year with the actual general funds revenues for that |
fiscal year. The
final transfer for the fiscal year shall be |
adjusted so that the
total amount transferred under this |
Section for that fiscal year is equal to the percentage |
specified in subsection
(b) or (c) of this Section, whichever |
is applicable, of the actual
general funds revenues for that |
fiscal year. The actual general funds revenues for the fiscal |
year shall be calculated in a manner consistent with subsection |
(c) of
Section 10 of this Act.
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(Source: P.A. 94-839, eff. 6-6-06.) |
(30 ILCS 122/25)
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Sec. 25. Transfers from the Pension Stabilization Fund. |
(a) As used in this Section, "designated retirement |
systems" means: |
(1) the State Employees' Retirement System of
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Illinois; |
(2) the Teachers' Retirement System of the State of
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Illinois; |
(3) the State Universities Retirement System; |
(4) the Judges Retirement System of Illinois; and |
(5) the General Assembly Retirement System. |
(b) As soon as may be practical after any money is |
deposited into the Pension Stabilization Fund, the State |
Comptroller shall apportion the deposited amount among the |
designated retirement systems and the State Comptroller and |
State Treasurer shall pay the apportioned amounts to the |
designated retirement systems. The amount deposited shall be |
apportioned among the designated retirement systems in the same |
proportion as their respective portions of the
total actuarial |
reserve deficiency of the designated retirement systems, as |
most
recently determined by the Governor's Office of Management |
and
Budget. Amounts received by a designated retirement system |
under this Section shall be used for funding the unfunded |
liabilities of the retirement system. Payments under this |
Section are authorized by the continuing appropriation under |
Section 1.7 of the State Pension Funds Continuing Appropriation |
Act. |
(c) At the request of the State Comptroller, the Governor's |
Office of Management and Budget shall
determine the individual |
and total actuarial reserve deficiencies of the
designated |
retirement systems. For this purpose, the
Governor's Office of |
Management and Budget shall consider the
latest available audit |
and actuarial reports of each of the
retirement systems and the |
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relevant reports and statistics of
the Public Pension Division |
of the Department of
Insurance Financial and Professional |
Regulation . |
(d) Payments to the designated retirement systems under |
this Section shall be in addition to, and not in lieu of, any |
State contributions required under Section 2-124, 14-131, |
15-155, 16-158, or 18-131 of the Illinois Pension Code.
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Payments to the designated retirement systems under this |
Section received after the effective date of this amendatory |
Act of the 98th General Assembly, and any investment earnings |
attributable to such payments, do not reduce and do not |
constitute payment of any portion of the required State |
contribution under Article 2, 14, 15, 16, or 18 of the Illinois |
Pension Code in the current fiscal year. Such amounts shall not |
reduce, and shall not be included in the calculation of, the |
required State contribution under Article 2, 14, 15, 16, or 18 |
of the Illinois Pension Code in any future fiscal year, until |
the designated retirement system has reached the targeted |
funding ratio as prescribed by law for that retirement system. |
Such payments may be invested in the same manner as other |
assets of the designated retirement system and shall be used in |
the calculation of the system's funding ratio for the purposes |
of this Section and Section 20 of this Act. Payments under this |
Section may be used for any associated administrative costs. |
(Source: P.A. 94-839, eff. 6-6-06.) |
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Section 15. The Illinois Pension Code is amended by |
changing Sections 1-103.3, 2-108, 2-108.1, 2-119, 2-119.1, |
2-124, 2-125, 2-126, 2-134, 2-162, 7-109, 7-114, 7-116, 7-139, |
9-219, 9-220, 14-103.10, 14-104.3, 14-106, 14-107, 14-108, |
14-110, 14-114, 14-115, 14-131, 14-132, 14-133, 14-135.08, |
14-152.1, 15-106, 15-107, 15-111, 15-112, 15-113.4, 15-125, |
15-135, 15-136, 15-155, 15-156, 15-157, 15-165, 15-198, |
16-106, 16-112, 16-121, 16-127, 16-132, 16-133, 16-133.1, |
16-133.2, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-134, |
20-106, 20-121, 20-123, 20-124, and 20-125 and by adding |
Sections 2-105.1, 2-105.2, 2-126.5, 2-165, 2-166, 14-103.40, |
14-133.5, 14-155, 14-156, 15-157.5, 15-200, 15-201, 16-106.4, |
16-152.5, 16-158.2, 16-205, and 16-206 as follows:
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(40 ILCS 5/1-103.3)
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Sec. 1-103.3. Application of 1994 amendment; funding |
standard.
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(a) The provisions of Public Act 88-593 this amendatory Act |
of 1994 that change the method of
calculating, certifying, and |
paying the required State contributions to the
retirement |
systems established under Articles 2, 14, 15, 16, and 18 shall
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first apply to the State contributions required for State |
fiscal year 1996.
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(b) (Blank) The General Assembly declares that a funding |
ratio (the ratio of a
retirement system's total assets to its |
total actuarial liabilities) of 90% is
an appropriate goal for |
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State-funded retirement systems in Illinois, and it
finds that |
a funding ratio of 90% is now the generally-recognized norm
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throughout the nation for public employee retirement systems |
that are
considered to be financially secure and funded in an |
appropriate and
responsible manner .
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(c) Every 5 years, beginning in 1999, the Commission on |
Government Forecasting and Accountability, in consultation |
with the affected retirement systems and the
Governor's Office |
of Management and Budget (formerly
Bureau
of the Budget), shall |
consider and determine whether the funding goals 90% funding |
ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code |
continue subsection (b) continues to represent an appropriate |
funding goals goal for
those State-funded retirement systems in |
Illinois , and it shall report its findings
and recommendations |
on this subject to the Governor and the General Assembly.
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(Source: P.A. 93-1067, eff. 1-15-05.)
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(40 ILCS 5/2-105.1 new) |
Sec. 2-105.1. Tier 1 participant; Tier 2 participant. |
"Tier 1 participant": A participant who first became a |
participant before January 1, 2011. |
"Tier 2 participant": A participant who first became a |
participant on or after January 1, 2011. |
(40 ILCS 5/2-105.2 new) |
Sec. 2-105.2. Tier 1 retiree. "Tier 1 retiree" means a |
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former Tier 1 participant who has made the election to retire |
and has terminated service.
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(40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
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Sec. 2-108. Salary. "Salary": (1) For members of the |
General Assembly,
the total compensation paid to the member by |
the State for one
year of service, including the additional |
amounts, if any, paid to
the member as an officer pursuant to |
Section 1 of "An Act
in relation to the compensation and |
emoluments of the members of the
General Assembly", approved |
December 6, 1907, as now or hereafter
amended.
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(2) For the State executive officers specified
in Section |
2-105, the total compensation paid to the member for one year
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of service.
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(3) For members of the System who are participants under |
Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
of the House of
Representatives or Secretary or Assistant |
Secretary of the Senate, the
total compensation paid to the |
member for one year of service, but not to
exceed the salary of |
the highest salaried officer of the General Assembly.
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However, in the event that federal law results in any |
participant
receiving imputed income based on the value of |
group term life insurance
provided by the State, such imputed |
income shall not be included in salary
for the purposes of this |
Article.
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Notwithstanding any other provision of this Code, the
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annual salary of a Tier 1 participant for the purposes of this |
Code shall not
exceed, for periods of service in a term of |
office beginning on
or after the effective date of this |
amendatory Act of the 98th
General Assembly, the greater of (i) |
the annual limitation determined
from time to time under |
subsection (b-5) of Section 1-160 of
this Code or (ii) the
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annualized salary of the participant on the last day of that |
participant's last term of office beginning before that |
effective date. |
(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
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(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
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Sec. 2-108.1. Highest salary for annuity purposes.
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(a) "Highest salary for annuity purposes" means whichever |
of
the following is applicable to the participant:
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For a participant who first becomes a participant of this |
System before August 10, 2009 (the effective date of Public Act |
96-207):
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(1) For a participant who is a member of the General |
Assembly on his
or her last day of service: the highest |
salary that is prescribed by law,
on the participant's last |
day of service, for a member of the General
Assembly who is |
not an officer; plus, if the participant was elected or
|
appointed to serve as an officer of the General Assembly |
for 2 or more
years and has made contributions as required |
under subsection (d) of
Section 2-126, the highest |
|
additional amount of compensation prescribed by
law, at the |
time of the participant's service as an officer, for |
members of
the General Assembly who serve in that office.
|
(2) For a participant who holds one of the State |
executive offices
specified in Section 2-105 on his or her |
last day of service: the highest
salary prescribed by law |
for service in that office on the participant's
last day of |
service.
|
(3) For a participant who is Clerk or Assistant Clerk |
of the House of Representatives or Secretary or Assistant |
Secretary of the Senate
on his or her last day of service: |
the salary received for service in that
capacity on the |
last day of service, but not to exceed the highest salary
|
(including additional compensation for service as an |
officer) that is
prescribed by law on the participant's |
last day of service for the highest
paid officer of the |
General Assembly.
|
(4) For a participant who is a continuing participant |
under Section
2-117.1 on his or her last day of service: |
the salary received for service
in that capacity on the |
last day of service, but not to exceed the highest
salary |
(including additional compensation for service as an |
officer) that
is prescribed by law on the participant's |
last day of service for the
highest paid officer of the |
General Assembly.
|
For a participant who first becomes a participant of this |
|
System on or after August 10, 2009 (the effective date of |
Public Act 96-207) and before January 1, 2011 (the effective |
date of Public Act 96-889), the average monthly salary obtained |
by dividing the total salary of the participant during the |
period of: (1) the 48 consecutive months of service within the |
last 120 months of service in which the total compensation was |
the highest, or (2) the total period of service, if less than |
48 months, by the number of months of service in that period. |
Except as otherwise provided below, for a Tier 2 For a |
participant who first becomes a participant of this System on |
or after January 1, 2011 (the effective date of Public Act |
96-889), the average monthly salary obtained by dividing the |
total salary of the participant during the 96 consecutive |
months of service within the last 120 months of service in |
which the total compensation was the highest by the number of |
months of service in that period; however, for periods of |
service in a term of office beginning on or after January 1, |
2011 and before the effective date of this amendatory Act of |
the 98th General Assembly , the highest salary for annuity |
purposes may not exceed $106,800, except that that amount shall |
annually thereafter be increased by the lesser of (i) 3% of |
that amount, including all previous adjustments, or (ii) the |
annual unadjusted percentage increase (but not less than zero) |
in the consumer price index-u
for the 12 months ending with the |
September preceding each November 1. "Consumer price index-u" |
means
the index published by the Bureau of Labor Statistics of |
|
the United States
Department of Labor that measures the average |
change in prices of goods and
services purchased by all urban |
consumers, United States city average, all
items, 1982-84 = |
100. The new amount resulting from each annual adjustment
shall |
be determined by the Public Pension Division of the Department |
of Insurance and made available to the Board by November 1 of |
each year until there is no longer any such participant who is |
in service in a term of office that began before the effective |
date of this amendatory Act of the 98th General Assembly . |
Notwithstanding any other provision of this Section, in |
determining the highest salary for annuity purposes of a Tier 2 |
participant who is in service in a term of office beginning on |
or after the effective date of this amendatory Act of the 98th |
General Assembly, the Tier 2 participant's salary for periods |
of service in a term of office beginning on or after that |
effective date shall not exceed the limitation on salary |
determined from time to time under subsection (b-5) of Section |
1-160 of this Code. |
(b) The earnings limitations of subsection (a) apply to |
earnings
under any other participating system under the |
Retirement Systems Reciprocal
Act that are considered in |
calculating a proportional annuity under this
Article, except |
in the case of a person who first became a member of this
|
System before August 22,
1994 and has not, on or after the |
effective date of this amendatory Act of the 97th General |
Assembly, irrevocably elected to have those limitations apply. |
|
The limitations of subsection (a) shall apply, however, to |
earnings
under any other participating system under the |
Retirement Systems Reciprocal
Act that are considered in |
calculating the proportional annuity of a person who first |
became a member of this
System before August 22,
1994 if, on or |
after the effective date of this amendatory Act of the 97th |
General Assembly, that member irrevocably elects to have those |
limitations apply.
|
(c) In calculating the subsection (a) earnings limitation |
to be applied to
earnings under any other participating system |
under the Retirement Systems
Reciprocal Act for the purpose of |
calculating a proportional annuity under this
Article, the |
participant's last day of service shall be deemed to mean the |
last
day of service in any participating system from which the |
person has applied
for a proportional annuity under the |
Retirement Systems Reciprocal Act.
|
(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; |
96-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
|
(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
|
Sec. 2-119. Retirement annuity - conditions for |
eligibility. |
(a)
A participant whose service as a
member is terminated, |
regardless of age or cause, is entitled to a retirement
annuity |
beginning on the date specified by the participant in
a written |
application subject to the following conditions:
|
|
1. The date the annuity begins does not precede
the |
date of final
termination of service, or is not more than |
30 days before the receipt
of the application
by the board |
in the case of annuities based on disability or one year |
before
the receipt of the application in the case of |
annuities
based on attained age;
|
2. The participant meets one of the following |
eligibility requirements: |
For a participant who first becomes a participant of |
this System before January 1, 2011 (the effective date of |
Public Act 96-889):
|
(A) He or she has attained age 55 and has at least |
8 years of service credit;
|
(B) He or she has attained age 62 and terminated |
service after July 1,
1971 with at least 4 years of |
service credit; or
|
(C) He or she has completed 8 years of service and |
has become
permanently disabled and as a consequence, |
is unable to perform the duties
of his or her office.
|
For a participant who first becomes a participant of |
this System on or after January 1, 2011 (the effective date |
of Public Act 96-889), he or she has attained age 67 and |
has at least 8 years of service credit. |
(a-1) Notwithstanding subsection (a) of this Section, for a |
Tier 1 participant who begins receiving a retirement annuity |
under this Section on or after July 1, 2014, the required |
|
retirement age under subsection (a) is increased as follows, |
based on the Tier 1 participant's age on June 1, 2014: |
(1) If he or she is at least age 46 on June 1, 2014, |
then the required retirement ages under subsection (a) |
remain unchanged. |
(2) If he or she is at least age 45 but less than age 46 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 4 months. |
(3) If he or she is at least age 44 but less than age 45 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 8 months. |
(4) If he or she is at least age 43 but less than age 44 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 12 months. |
(5) If he or she is at least age 42 but less than age 43 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 16 months. |
(6) If he or she is at least age 41 but less than age 42 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 20 months. |
(7) If he or she is at least age 40 but less than age 41 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 24 months. |
(8) If he or she is at least age 39 but less than age 40 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 28 months. |
|
(9) If he or she is at least age 38 but less than age 39 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 32 months. |
(10) If he or she is at least age 37 but less than age |
38 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 36 months. |
(11) If he or she is at least age 36 but less than age |
37 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 40 months. |
(12) If he or she is at least age 35 but less than age |
36 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 44 months. |
(13) If he or she is at least age 34 but less than age |
35 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 48 months. |
(14) If he or she is at least age 33 but less than age |
34 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 52 months. |
(15) If he or she is at least age 32 but less than age |
33 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 56 months. |
(16) If he or she is less than age 32 on June 1, 2014, |
then the required retirement ages under subsection (a) are |
increased by 60 months. |
Notwithstanding Section 1-103.1, this subsection (a-1) |
applies without regard to whether or not the Tier 1 participant |
|
is in active service under this Article on or after the |
effective date of this amendatory Act of the 98th General |
Assembly. |
(a-5) A participant who first becomes a participant of this |
System on or after January 1, 2011 (the effective date of |
Public Act 96-889) who has attained age 62 and has at least 8 |
years of service credit may elect to receive the lower |
retirement annuity provided
in paragraph (c) of Section |
2-119.01 of this Code. |
(b) A participant shall be considered permanently disabled |
only if:
(1) disability occurs while in service and is
of such |
a nature
as to prevent him or her from reasonably performing |
the duties of his
or her office at
the time; and (2) the board |
has received a written certificate by at
least 2 licensed |
physicians appointed by the board stating that the member is
|
disabled and that the disability is likely to be permanent.
|
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
Sec. 2-119.1. Automatic increase in retirement annuity.
|
(a) Except as otherwise provided in this Section, a A |
participant who retires after June 30, 1967, and who has not
|
received an initial increase under this Section before the |
effective date
of this amendatory Act of 1991, shall, in |
January or July next following
the first anniversary of |
retirement, whichever occurs first, and in the same
month of |
|
each year thereafter, but in no event prior to age 60, have the |
amount
of the originally granted retirement annuity increased |
as follows: for each
year through 1971, 1 1/2%; for each year |
from 1972 through 1979, 2%; and for
1980 and each year |
thereafter, 3%. Annuitants who have received an initial
|
increase under this subsection prior to the effective date of |
this amendatory
Act of 1991 shall continue to receive their |
annual increases in the same month
as the initial increase.
|
(a-1) Notwithstanding subsection (a), but subject to the |
provisions of subsection (a-2), for a Tier 1 retiree, all |
automatic increases payable under subsection (a) on or after |
the effective date of this amendatory Act of the 98th General |
Assembly shall be calculated as 3% of the lesser of (1) the |
total annuity
payable at the time of the increase, including |
previous
increases granted, or (2) $1,000 multiplied by the |
number of years of creditable service upon which the annuity is |
based. |
Beginning January 1, 2016, the $1,000 referred to in item |
(2) of this subsection (a-1) shall be increased on each January |
1 by the annual unadjusted percentage increase (but not less |
than zero) in the consumer price index-u for the 12 months |
ending with the preceding September; these adjustments shall be |
cumulative and compounded.
For the purposes of this subsection |
(a-1), "consumer price index-u" means the index published by |
the Bureau of Labor Statistics of the United States Department |
of Labor that measures the average change in prices of goods |
|
and services purchased by all urban consumers, United States |
city average, all items, 1982-84 = 100. The new dollar amount |
resulting from each annual adjustment shall be determined by |
the Public Pension Division of the Department of Insurance and |
made available to the System by November 1 of each year. |
This subsection (a-1) is applicable without regard to |
whether the person is in service on or after the effective date |
of this amendatory Act of the 98th General Assembly. |
(a-2) Notwithstanding subsections (a) and (a-1), for an |
active or inactive Tier 1 participant who has not begun to |
receive a retirement annuity under this Article before July 1, |
2014: |
(1) the second automatic annual increase payable under |
subsection (a) shall be at the rate of 0% of the total |
annuity payable at the time of the increase if he or she is |
at least age 50 on the effective date of this amendatory |
Act; |
(2) the second, fourth, and sixth automatic annual |
increases payable under subsection (a) shall be at the rate |
of 0% of the total annuity payable at the time of the |
increase if he or she is at least age 47 but less than age |
50 on the effective date of this amendatory Act; |
(3) the second, fourth, sixth, and eighth automatic |
annual increases payable under subsection (a) shall be at |
the rate of 0% of the total annuity payable at the time of |
the increase if he or she is at least age 44 but less than |
|
age 47 on the effective date of this amendatory Act; and |
(4) the second, fourth, sixth, eighth, and tenth |
automatic annual increases payable under subsection (a) |
shall be at the rate of 0% of the total annuity payable at |
the time of the increase if he or she is less than age 44 on |
the effective date of this amendatory Act. |
For the purposes of Section 1-103.1, this subsection (a-2) |
is applicable without regard to whether the person is in |
service on or after the effective date of this amendatory Act |
of the 98th General Assembly. |
(b) Beginning January 1, 1990, for eligible participants |
who remain
in service after attaining 20 years of creditable |
service, the 3% increases
provided under subsection (a) shall |
begin to accrue on the January 1 next
following the date upon |
which the participant (1) attains age 55, or (2)
attains 20 |
years of creditable service, whichever occurs later, and shall
|
continue to accrue while the participant remains in service; |
such increases
shall become payable on January 1 or July 1, |
whichever occurs first, next
following the first anniversary of |
retirement. For any person who has service
credit in the System |
for the entire period from January 15, 1969 through
December |
31, 1992, regardless of the date of termination of service, the
|
reference to age 55 in clause (1) of this subsection (b) shall |
be deemed to
mean age 50. The increases accruing under this |
subsection (b) after the effective date of this amendatory Act |
of the 98th General Assembly shall accrue at the rate provided |
|
in subsection (a-1).
|
This subsection (b) does not apply to any person who first |
becomes a
member of the System after the effective date of this |
amendatory Act of
the 93rd General Assembly.
|
(b-5) Notwithstanding any other provision of this Section |
Article , a participant who first becomes a participant on or |
after January 1, 2011 (the effective date of Public Act 96-889) |
shall, in January or July next following the first anniversary |
of retirement, whichever occurs first, and in the same month of |
each year thereafter, but in no event prior to age 67, have the |
amount of the retirement annuity then being paid increased by |
an amount calculated as a percentage of the originally granted |
retirement annuity, equal to 3% or one-half of the annual |
unadjusted percentage increase (but not less than zero) in the |
Consumer Price Index for All Urban Consumers for the 12 months |
ending with the preceding September, as determined by the |
Public Pension Division of the Department of Insurance and |
reported to the System by November 1 of each year under |
subsection (a) of Section 2-108.1 , whichever is less. |
The changes made to this subsection (b-5) by this |
amendatory Act of the 98th General Assembly shall apply to |
increases provided under this subsection on or after the |
effective date of this amendatory Act without regard to whether |
service
terminated before that effective date. |
(c) The foregoing provisions relating to automatic |
increases are not
applicable to a participant who retires |
|
before having made contributions
(at the rate prescribed in |
Section 2-126) for automatic increases for less
than the |
equivalent of one full year. However, in order to be eligible |
for
the automatic increases, such a participant may make |
arrangements to pay
to the system the amount required to bring |
the total contributions for the
automatic increase to the |
equivalent of one year's contributions based upon
his or her |
last salary.
|
(d) A participant who terminated service prior to July 1, |
1967, with at
least 14 years of service is entitled to an |
increase in retirement annuity
beginning January, 1976, and to |
additional increases in January of each
year thereafter.
|
The initial increase shall be 1 1/2% of the originally |
granted retirement
annuity multiplied by the number of full |
years that the annuitant was in
receipt of such annuity prior |
to January 1, 1972, plus 2% of the originally
granted |
retirement annuity for each year after that date. The |
subsequent
annual increases shall be at the rate of 2% of the |
originally granted
retirement annuity for each year through |
1979 and at the rate of 3% for
1980 and thereafter. The |
increases provided under this subsection (d) on or after the |
effective date of this amendatory Act of the 98th General |
Assembly shall be at the rate provided in subsection (a-1), |
notwithstanding that service
terminated before that effective |
date.
|
(e) Except as may be provided in subsection (b-5), |
|
beginning Beginning January 1, 1990, all automatic annual |
increases payable
under this Section shall be calculated as a |
percentage of the total annuity
payable at the time of the |
increase, including previous increases granted
under this |
Article.
|
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
|
Sec. 2-124. Contributions by State.
|
(a) The State shall make contributions to the System by
|
appropriations of amounts which, together with the |
contributions of
participants, interest earned on investments, |
and other income
will meet the cost of maintaining and |
administering the System on a 100% 90%
funded basis in |
accordance with actuarial recommendations by the end of State |
fiscal year 2044 .
|
(b) The Board shall determine the amount of State
|
contributions required for each fiscal year on the basis of the
|
actuarial tables and other assumptions adopted by the Board and |
the
prescribed rate of interest, using the formula in |
subsection (c).
|
(c) For State fiscal years 2015 through 2044, the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
equal to the sum of (1) the State's portion of the projected |
normal cost for that fiscal year, plus (2) an amount sufficient |
|
to bring the total assets of the
System up to 100% of the total |
actuarial liabilities of the System by the end of
State fiscal |
year 2044. In making these determinations, the required State
|
contribution shall be calculated each year as a level |
percentage of payroll
over the years remaining to and including |
fiscal year 2044 and shall be
determined under the projected |
unit cost method for fiscal year 2015 and under the entry age |
normal actuarial cost method for fiscal years 2016 through |
2044. |
For State fiscal years 2012 through 2014 2045 , the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
sufficient to bring the total assets of the
System up to 90% of |
the total actuarial liabilities of the System by the end of
|
State fiscal year 2045. In making these determinations, the |
required State
contribution shall be calculated each year as a |
level percentage of payroll
over the years remaining to and |
including fiscal year 2045 and shall be
determined under the |
projected unit credit actuarial cost method.
|
For State fiscal years 1996 through 2005, the State |
contribution to
the System, as a percentage of the applicable |
employee payroll, shall be
increased in equal annual increments |
so that by State fiscal year 2011, the
State is contributing at |
the rate required under this Section.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution for State fiscal year 2006 is |
|
$4,157,000.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution for State fiscal year 2007 is |
$5,220,300.
|
For each of State fiscal years 2008 through 2009, the State |
contribution to
the System, as a percentage of the applicable |
employee payroll, shall be
increased in equal annual increments |
from the required State contribution for State fiscal year |
2007, so that by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
Notwithstanding any other provision of this Article, the |
total required State contribution for State fiscal year 2010 is |
$10,454,000 and shall be made from the proceeds of bonds sold |
in fiscal year 2010 pursuant to Section 7.2 of the General |
Obligation Bond Act, less (i) the pro rata share of bond sale |
expenses determined by the System's share of total bond |
proceeds, (ii) any amounts received from the General Revenue |
Fund in fiscal year 2010, and (iii) any reduction in bond |
proceeds due to the issuance of discounted bonds, if |
applicable. |
Notwithstanding any other provision of this Article, the
|
total required State contribution for State fiscal year 2011 is
|
the amount recertified by the System on or before April 1, 2011 |
pursuant to Section 2-134 and shall be made from the proceeds |
of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
the General
Obligation Bond Act, less (i) the pro rata share of |
|
bond sale
expenses determined by the System's share of total |
bond
proceeds, (ii) any amounts received from the General |
Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
bond
proceeds due to the issuance of discounted bonds, if
|
applicable. |
Beginning in State fiscal year 2045, the minimum State |
contribution for each fiscal year shall be the amount needed to |
maintain the total assets of the System at 100% of the total |
actuarial liabilities of the System. |
Beginning in State fiscal year 2046, the minimum State |
contribution for
each fiscal year shall be the amount needed to |
maintain the total assets of
the System at 90% of the total |
actuarial liabilities of the System.
|
Amounts received by the System pursuant to Section 25 of |
the Budget Stabilization Act or Section 8.12 of the State |
Finance Act in any fiscal year do not reduce and do not |
constitute payment of any portion of the minimum State |
contribution required under this Article in that fiscal year. |
Such amounts shall not reduce, and shall not be included in the |
calculation of, the required State contributions under this |
Article in any future year until the System has reached a |
funding ratio of at least 100% 90% . A reference in this Article |
to the "required State contribution" or any substantially |
similar term does not include or apply to any amounts payable |
to the System under Section 25 of the Budget Stabilization Act.
|
Notwithstanding any other provision of this Section, the |
|
required State
contribution for State fiscal year 2005 and for |
fiscal year 2008 and each fiscal year thereafter through State |
fiscal year 2014 , as
calculated under this Section and
|
certified under Section 2-134, shall not exceed an amount equal |
to (i) the
amount of the required State contribution that would |
have been calculated under
this Section for that fiscal year if |
the System had not received any payments
under subsection (d) |
of Section 7.2 of the General Obligation Bond Act, minus
(ii) |
the portion of the State's total debt service payments for that |
fiscal
year on the bonds issued in fiscal year 2003 for the |
purposes of that Section 7.2, as determined
and certified by |
the Comptroller, that is the same as the System's portion of
|
the total moneys distributed under subsection (d) of Section |
7.2 of the General
Obligation Bond Act. In determining this |
maximum for State fiscal years 2008 through 2010, however, the |
amount referred to in item (i) shall be increased, as a |
percentage of the applicable employee payroll, in equal |
increments calculated from the sum of the required State |
contribution for State fiscal year 2007 plus the applicable |
portion of the State's total debt service payments for fiscal |
year 2007 on the bonds issued in fiscal year 2003 for the |
purposes of Section 7.2 of the General
Obligation Bond Act, so |
that, by State fiscal year 2011, the
State is contributing at |
the rate otherwise required under this Section.
|
(d) For purposes of determining the required State |
contribution to the System, the value of the System's assets |
|
shall be equal to the actuarial value of the System's assets, |
which shall be calculated as follows: |
As of June 30, 2008, the actuarial value of the System's |
assets shall be equal to the market value of the assets as of |
that date. In determining the actuarial value of the System's |
assets for fiscal years after June 30, 2008, any actuarial |
gains or losses from investment return incurred in a fiscal |
year shall be recognized in equal annual amounts over the |
5-year period following that fiscal year. |
(e) For purposes of determining the required State |
contribution to the system for a particular year, the actuarial |
value of assets shall be assumed to earn a rate of return equal |
to the system's actuarially assumed rate of return. |
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
7-13-12.)
|
(40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
|
Sec. 2-125. Obligations of State ; funding guarantee . |
(a) The payment of (1) the required State contributions, |
(2) all benefits
granted under this system and (3) all expenses |
of administration and
operation are obligations of the State to |
the extent specified in this
Article.
|
(b) All income, interest and dividends derived from |
deposits and investments
shall be credited to the account of |
the system in the State Treasury and
used to pay benefits under |
|
this Article.
|
(c) Beginning July 1, 2014, the State shall be obligated to |
contribute to the System in each State fiscal year an amount |
not less than the sum of (i) the State's normal cost for the |
year and (ii) the portion of the unfunded accrued liability |
assigned to that year by law. Notwithstanding any other |
provision of law, if the State fails to pay an amount required |
under this subsection, it shall be the obligation of the Board |
to seek payment of the required amount in compliance with the |
provisions of this Section and, if the amount remains unpaid, |
to bring a mandamus action in the Supreme Court of Illinois to |
compel the State to make the required payment. |
If the System submits a voucher for contributions required |
under Section 2-124 and the State fails to pay that voucher |
within 90 days of its receipt, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
files the request with the Comptroller and Secretary of State, |
if the amount remains unpaid the Board shall commence a |
mandamus action in the Supreme Court of Illinois to compel the |
Comptroller to satisfy the voucher. |
This subsection (c) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
|
Illinois to compel the Comptroller to pay a voucher for the |
contributions required under Section 2-124. |
(d) Beginning in State fiscal year 2016, the State shall be |
obligated to make the transfers set forth in subsections (c-5) |
and (c-10) of Section 20 of the Budget Stabilization Act and to |
pay to the System its proportionate share of the transferred |
amounts in accordance with Section 25 of the Budget |
Stabilization Act. Notwithstanding any other provision of law, |
if the State fails to transfer an amount required under this |
subsection or to pay to the System its proportionate share of |
the transferred amount in accordance with Section 25 of the |
Budget Stabilization Act, it shall be the obligation of the |
Board to seek transfer or payment of the required amount in |
compliance with the provisions of this Section and, if the |
required amount remains untransferred or the required payment |
remains unpaid, to bring a mandamus action in the Supreme Court |
of Illinois to compel the State to make the required transfer |
or payment or both, as the case may be. |
If the State fails to make a transfer required under |
subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act or a payment to the System required under |
Section 25 of that Act, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
|
files the request with the Comptroller and Secretary of State, |
if the required amount remains untransferred or the required |
payment remains unpaid, the Board shall commence a mandamus |
action in the Supreme Court of Illinois to compel the |
Comptroller to make the required transfer or payment or both, |
as the case may be. |
This subsection (d) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
Illinois to compel the Comptroller to make a transfer required |
under subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act and to pay to the System its proportionate |
share of the transferred amount in accordance with Section 25 |
of the Budget Stabilization Act. |
The obligations created by this subsection (d) expire when |
all of the requirements of subsections (c-5) and (c-10) of |
Section 20 of the Budget Stabilization Act and Section 25 of |
the Budget Stabilization Act have been met. |
(e) Any payments and transfers required to be made by the |
State pursuant to subsection (c) or (d) are expressly |
subordinate to the payment of the principal, interest, and |
premium, if any, on any bonded debt obligation of the State or |
any other State-created entity, either currently outstanding |
or to be issued, for which the source of repayment or security |
thereon is derived directly or indirectly from tax revenues |
collected by the State or any other State-created entity. |
|
Payments on such bonded obligations include any statutory fund |
transfers or other prefunding mechanisms or formulas set forth, |
now or hereafter, in State law or bond indentures, into debt |
service funds or accounts of the State related to such bond |
obligations, consistent with the payment schedules associated |
with such obligations. |
(Source: P.A. 83-1440.)
|
(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
|
Sec. 2-126. Contributions by participants.
|
(a) Each participant shall contribute toward the cost of |
his or her
retirement annuity a percentage of each payment of |
salary received by him or
her for service as a member as |
follows: for service between October 31, 1947
and January 1, |
1959, 5%; for service between January 1, 1959 and June 30, |
1969,
6%; for service between July 1, 1969 and January 10, |
1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
service after December 31, 1981, 8 1/2%.
|
(b) Beginning August 2, 1949, each male participant, and |
from July 1,
1971, each female participant shall contribute |
towards the cost of the
survivor's annuity 2% of salary.
|
A participant who has no eligible survivor's annuity |
beneficiary may elect
to cease making contributions for |
survivor's annuity under this subsection.
A survivor's annuity |
shall not be payable upon the death of a person who has
made |
this election, unless prior to that death the election has been |
|
revoked
and the amount of the contributions that would have |
been paid under this
subsection in the absence of the election |
is paid to the System, together
with interest at the rate of 4% |
per year from the date the contributions
would have been made |
to the date of payment.
|
(c) Beginning July 1, 1967 and, in the case of Tier 1 |
participants, ending on June 30, 2014 , each participant shall |
contribute 1% of
salary towards the cost of automatic increase |
in annuity provided in
Section 2-119.1. These contributions |
shall be made concurrently with
contributions for retirement |
annuity purposes.
|
(d) In addition, each participant serving as an officer of |
the General
Assembly shall contribute, for the same purposes |
and at the same rates
as are required of a regular participant, |
on each additional payment
received as an officer. If the |
participant serves as an
officer for at least 2 but less than 4 |
years, he or she shall
contribute an amount equal to the amount |
that would have been contributed
had the participant served as |
an officer for 4 years. Persons who serve
as officers in the |
87th General Assembly but cannot receive the additional
payment |
to officers because of the ban on increases in salary during |
their
terms may nonetheless make contributions based on those |
additional payments
for the purpose of having the additional |
payments included in their highest
salary for annuity purposes; |
however, persons electing to make these
additional |
contributions must also pay an amount representing the
|
|
corresponding employer contributions, as calculated by the |
System.
|
(e) Notwithstanding any other provision of this Article, |
the required contribution of a participant who first becomes a |
participant on or after January 1, 2011 shall not exceed the |
contribution that would be due under this Article if that |
participant's highest salary for annuity purposes were |
$106,800, plus any increases in that amount under Section |
2-108.1. |
(Source: P.A. 96-1490, eff. 1-1-11.)
|
(40 ILCS 5/2-126.5 new) |
Sec. 2-126.5. Use of contributions for health care |
subsidies. The System shall not use any contribution received |
by the System under this Article to provide a subsidy for the |
cost of participation in a retiree health care program.
|
(40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
|
Sec. 2-134. To certify required State contributions and |
submit vouchers.
|
(a) The Board shall certify to the Governor on or before |
December 15 of each
year until December 15, 2011 the amount of |
the required State contribution to the System for the next
|
fiscal year and shall specifically identify the System's |
projected State normal cost for that fiscal year. The |
certification shall include a copy of the actuarial
|
|
recommendations upon which it is based and shall specifically |
identify the System's projected State normal cost for that |
fiscal year.
|
On or before November 1 of each year, beginning November 1, |
2012, the Board shall submit to the State Actuary, the |
Governor, and the General Assembly a proposed certification of |
the amount of the required State contribution to the System for |
the next fiscal year, along with all of the actuarial |
assumptions, calculations, and data upon which that proposed |
certification is based. On or before January 1 of each year |
beginning January 1, 2013, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
assumptions that the Board must consider before finalizing its |
certification of the required State contributions. On or before |
January 15, 2013 and every January 15 thereafter, the Board |
shall certify to the Governor and the General Assembly the |
amount of the required State contribution for the next fiscal |
year. The Board's certification must note any deviations from |
the State Actuary's recommended changes, the reason or reasons |
for not following the State Actuary's recommended changes, and |
the fiscal impact of not following the State Actuary's |
recommended changes on the required State contribution. |
On or before May 1, 2004, the Board shall recalculate and |
recertify to
the Governor the amount of the required State |
contribution to the System for
State fiscal year 2005, taking |
|
into account the amounts appropriated to and
received by the |
System under subsection (d) of Section 7.2 of the General
|
Obligation Bond Act.
|
On or before July 1, 2005, the Board shall recalculate and |
recertify
to the Governor the amount of the required State
|
contribution to the System for State fiscal year 2006, taking |
into account the changes in required State contributions made |
by this amendatory Act of the 94th General Assembly.
|
On or before April 1, 2011, the Board shall recalculate and |
recertify to the Governor the amount of the required State |
contribution to the System for State fiscal year 2011, applying |
the changes made by Public Act 96-889 to the System's assets |
and liabilities as of June 30, 2009 as though Public Act 96-889 |
was approved on that date. |
(a-5) For purposes of Section (c-5) of Section 20 of the |
Budget Stabilization Act, on or before November 1 of each year |
beginning November 1, 2014, the Board shall determine the |
amount of the State contribution to the System that would have |
been required for the next fiscal year if this amendatory Act |
of the 98th General Assembly had not taken effect, using the |
best and most recent available data but based on the law in |
effect on May 31, 2014. The Board shall submit to the State |
Actuary, the Governor, and the General Assembly a proposed |
certification, along with the relevant law, actuarial |
assumptions, calculations, and data upon which that |
certification is based. On or before January 1, 2015 and every |
|
January 1 thereafter, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
assumptions that the Board must consider before finalizing its |
certification. On or before January 15, 2015 and every January |
1 thereafter, the Board shall certify to the Governor and the |
General Assembly the amount of the State contribution to the |
System that would have been required for the next fiscal year |
if this amendatory Act of the 98th General Assembly had not |
taken effect, using the best and most recent available data but |
based on the law in effect on May 31, 2014. The Board's |
certification must note any deviations from the State Actuary's |
recommended changes, the reason or reasons for not following |
the State Actuary's recommended changes, and the impact of not |
following the State Actuary's recommended changes. |
(b) Beginning in State fiscal year 1996, on or as soon as |
possible after the
15th day of each month the Board shall |
submit vouchers for payment of State
contributions to the |
System, in a total monthly amount of one-twelfth of the
|
required annual State contribution certified under subsection |
(a).
From the effective date of this amendatory Act
of the 93rd |
General Assembly through June 30, 2004, the Board shall not
|
submit vouchers for the remainder of fiscal year 2004 in excess |
of the
fiscal year 2004 certified contribution amount |
determined
under this Section after taking into consideration |
the transfer to the
System under subsection (d) of Section |
|
6z-61 of the State Finance Act.
These
vouchers shall be paid by |
the State Comptroller and Treasurer by warrants drawn
on the |
funds appropriated to the System for that fiscal year. If in |
any month
the amount remaining unexpended from all other |
appropriations to the System for
the applicable fiscal year |
(including the appropriations to the System under
Section 8.12 |
of the State Finance Act and Section 1 of the State Pension |
Funds
Continuing Appropriation Act) is less than the amount |
lawfully vouchered under
this Section, the difference shall be |
paid from the General Revenue Fund under
the continuing |
appropriation authority provided in Section 1.1 of the State
|
Pension Funds Continuing Appropriation Act.
|
(c) The full amount of any annual appropriation for the |
System for
State fiscal year 1995 shall be transferred and made |
available to the System
at the beginning of that fiscal year at |
the request of the Board.
Any excess funds remaining at the end |
of any fiscal year from appropriations
shall be retained by the |
System as a general reserve to meet the System's
accrued |
liabilities.
|
(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
97-694, eff. 6-18-12.)
|
(40 ILCS 5/2-162)
|
Sec. 2-162. Application and expiration of new benefit |
increases. |
(a) As used in this Section, "new benefit increase" means |
|
an increase in the amount of any benefit provided under this |
Article, or an expansion of the conditions of eligibility for |
any benefit under this Article, that results from an amendment |
to this Code that takes effect after the effective date of this |
amendatory Act of the 94th General Assembly. "New benefit |
increase", however, does not include any benefit increase |
resulting from the changes made to this Article by this |
amendatory Act of the 98th General Assembly. |
(b) Notwithstanding any other provision of this Code or any |
subsequent amendment to this Code, every new benefit increase |
is subject to this Section and shall be deemed to be granted |
only in conformance with and contingent upon compliance with |
the provisions of this Section.
|
(c) The Public Act enacting a new benefit increase must |
identify and provide for payment to the System of additional |
funding at least sufficient to fund the resulting annual |
increase in cost to the System as it accrues. |
Every new benefit increase is contingent upon the General |
Assembly providing the additional funding required under this |
subsection. The Commission on Government Forecasting and |
Accountability shall analyze whether adequate additional |
funding has been provided for the new benefit increase and |
shall report its analysis to the Public Pension Division of the |
Department of Insurance Financial and Professional Regulation . |
A new benefit increase created by a Public Act that does not |
include the additional funding required under this subsection |
|
is null and void. If the Public Pension Division determines |
that the additional funding provided for a new benefit increase |
under this subsection is or has become inadequate, it may so |
certify to the Governor and the State Comptroller and, in the |
absence of corrective action by the General Assembly, the new |
benefit increase shall expire at the end of the fiscal year in |
which the certification is made.
|
(d) Every new benefit increase shall expire 5 years after |
its effective date or on such earlier date as may be specified |
in the language enacting the new benefit increase or provided |
under subsection (c). This does not prevent the General |
Assembly from extending or re-creating a new benefit increase |
by law. |
(e) Except as otherwise provided in the language creating |
the new benefit increase, a new benefit increase that expires |
under this Section continues to apply to persons who applied |
and qualified for the affected benefit while the new benefit |
increase was in effect and to the affected beneficiaries and |
alternate payees of such persons, but does not apply to any |
other person, including without limitation a person who |
continues in service after the expiration date and did not |
apply and qualify for the affected benefit while the new |
benefit increase was in effect.
|
(Source: P.A. 94-4, eff. 6-1-05.) |
(40 ILCS 5/2-165 new) |
|
Sec. 2-165. Defined contribution plan. |
(a) By July 1, 2015, the System shall prepare and implement |
a voluntary defined contribution plan for up to 5% of eligible |
active Tier 1 participants. The System shall determine the 5% |
cap by the number of active Tier 1 participants on the |
effective date of this Section. The defined contribution plan |
developed under this Section shall be a plan that aggregates |
employer and employee contributions in individual participant |
accounts which, after meeting any other requirements, are used |
for payouts after retirement in accordance with this Section |
and any other applicable laws. |
As used in this Section, "defined benefit plan" means the |
retirement plan available under this Article to Tier 1 |
participants who have not made the election authorized under |
this Section. |
(1) Under the defined contribution plan, an active Tier |
1 participant of this System could elect to cease accruing |
benefits in the defined benefit plan under this Article and |
begin accruing benefits for future service in the defined |
contribution plan. Service credit under the defined |
contribution plan may be used for determining retirement |
eligibility under the defined benefit plan. |
(2) Participants in the defined contribution plan |
shall pay employee contributions at the same rate as Tier 1 |
participants in this System who do not participate in the |
defined contribution plan. |
|
(3) State contributions shall be paid into the accounts |
of all participants in the defined contribution plan at a |
uniform rate, expressed as a percentage of compensation and |
determined for each year. This rate shall be no higher than |
the employer's normal cost for Tier 1 participants in the |
defined benefit plan for that year, as determined by the |
System and expressed as a percentage of compensation, and |
shall be no lower than 3% of compensation. The State shall |
adjust this rate annually. |
(4) The defined contribution plan shall require 5 years |
of participation in the defined contribution plan before |
vesting in State contributions. If the participant fails to |
vest in them, the State contributions, and the earnings |
thereon, shall be forfeited. |
(5) The defined contribution plan may provide for |
participants in the plan to be eligible for defined |
disability benefits. If it does, the System shall reduce |
the employee contributions credited to the participant's |
defined contribution plan account by an amount determined |
by the System to cover the cost of offering such benefits. |
(6) The defined contribution plan shall provide a |
variety of options for investments. These options shall |
include investments handled by the Illinois State Board of |
Investment as well as private sector investment options. |
(7) The defined contribution plan shall provide a |
variety of options for payouts to retirees and their |
|
survivors. |
(8) To the extent authorized under federal law and as |
authorized by the System, the plan shall allow former |
participants in the plan to transfer or roll over employee |
and vested State contributions, and the earnings thereon, |
into other qualified retirement plans. |
(9) The System shall reduce the employee contributions |
credited to the participant's defined contribution plan |
account by an amount determined by the System to cover the |
cost of offering these benefits and any applicable |
administrative fees. |
(b) Only persons who are active Tier 1 participants of the |
System on the effective date of this Section are eligible to |
participate in the defined contribution plan. Participation in |
the defined contribution plan shall be limited to the first 5% |
of eligible persons who elect to participate. The election to |
participate in the defined contribution plan is voluntary and |
irrevocable. |
(c) An eligible active Tier 1 participant may irrevocably |
elect to participate in the defined contribution plan by filing |
with the System a written application to participate that is |
received by the System prior to its determination that 5% of |
eligible persons have elected to participate in the defined |
contribution plan. |
When the System first determines that 5% of eligible |
persons have elected to participate in the defined contribution |
|
plan, the System shall provide notice to previously eligible |
employees that the plan is no longer available and shall cease |
accepting applications to participate. |
(d) The System shall make a good faith effort to contact |
each active Tier 1 participant who is eligible to participate |
in the defined contribution plan. The System shall mail |
information describing the option to join the defined |
contribution plan to each of these employees to his or her last |
known address on file with the System. If the employee is not |
responsive to other means of contact, it is sufficient for the |
System to publish the details of the option on its website. |
Upon request for further information describing the |
option, the System shall provide employees with information |
from the System before exercising the option to join the plan, |
including information on the impact to their vested benefits or |
non-vested service. The individual consultation shall include |
projections of the participant's defined benefits at |
retirement or earlier termination of service and the value of |
the participant's account at retirement or earlier termination |
of service. The System shall not provide advice or counseling |
with respect to whether the employee should exercise the |
option. The System shall inform Tier 1 participants who are |
eligible to participate in the defined contribution plan that |
they may also wish to obtain information and counsel relating |
to their option from any other available source, including but |
not limited to labor organizations, private counsel, and |
|
financial advisors. |
(e) In no event shall the System, its staff, its authorized |
representatives, or the Board be liable for any information |
given to an employee under this Section. The System may |
coordinate with the Illinois Department of Central Management |
Services and other retirement systems administering a defined |
contribution plan in accordance with this amendatory Act of the |
98th General Assembly to provide information concerning the |
impact of the option set forth in this Section. |
(f) Notwithstanding any other provision of this Section, no |
person shall begin participating in the defined contribution |
plan until it has attained qualified plan status and received |
all necessary approvals from the U.S. Internal Revenue Service. |
(g) The System shall report on its progress under this |
Section, including the available details of the defined |
contribution plan and the System's plans for informing eligible |
Tier 1 participants about the plan, to the Governor and the |
General Assembly on or before January 15, 2015. |
(h) The Illinois State Board of Investments shall be the |
plan sponsor for the defined contribution plan established |
under this Section. |
(i) The intent of this amendatory Act of the 98th General |
Assembly is to ensure that the State's normal cost of |
participation in the defined contribution plan is similar, and |
if possible equal, to the State's normal cost of participation |
in the defined benefit plan, unless a lower State's normal cost |
|
is necessary to ensure cost neutrality. |
(40 ILCS 5/2-166 new) |
Sec. 2-166. Defined contribution plan; termination. If the |
defined contribution plan is terminated or becomes inoperative |
pursuant to law, then each participant in the plan shall |
automatically be deemed to have been a contributing Tier 1 |
participant in the System's defined benefit plan during the |
time in which he or she participated in the defined |
contribution plan, and for that purpose the System shall be |
entitled to recover the amounts in the participant's defined |
contribution accounts.
|
(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
|
Sec. 7-109. Employee.
|
(1) "Employee" means any person who:
|
(a) 1. Receives earnings as payment for the performance |
of personal
services or official duties out of the |
general fund of a municipality,
or out of any special |
fund or funds controlled by a municipality, or by
an |
instrumentality thereof, or a participating |
instrumentality, including,
in counties, the fees or |
earnings of any county fee office; and
|
2. Under the usual common law rules applicable in |
determining the
employer-employee relationship, has |
the status of an employee with a
municipality, or any |
|
instrumentality thereof, or a participating
|
instrumentality, including aldermen, county |
supervisors and other
persons (excepting those |
employed as independent contractors) who are
paid |
compensation, fees, allowances or other emolument for |
official
duties, and, in counties, the several county |
fee offices.
|
(b) Serves as a township treasurer appointed under the |
School
Code, as heretofore or hereafter amended, and
who |
receives for such services regular compensation as |
distinguished
from per diem compensation, and any regular |
employee in the office of
any township treasurer whether or |
not his earnings are paid from the
income of the permanent |
township fund or from funds subject to
distribution to the |
several school districts and parts of school
districts as |
provided in the School Code, or from both such sources; or |
is the chief executive officer, chief educational officer, |
chief fiscal officer, or other employee of a Financial |
Oversight Panel established pursuant to Article 1H of the |
School Code, other than a superintendent or certified |
school business official, except that such person shall not |
be treated as an employee under this Section if that person |
has negotiated with the Financial Oversight Panel, in |
conjunction with the school district, a contractual |
agreement for exclusion from this Section.
|
(c) Holds an elective office in a municipality, |
|
instrumentality
thereof or participating instrumentality.
|
(2) "Employee" does not include persons who:
|
(a) Are eligible for inclusion under any of the |
following laws:
|
1. "An Act in relation to an Illinois State |
Teachers' Pension and
Retirement Fund", approved May |
27, 1915, as amended;
|
2. Articles 15 and 16 of this Code.
|
However, such persons shall be included as employees to |
the extent of
earnings that are not eligible for inclusion |
under the foregoing laws
for services not of an |
instructional nature of any kind.
|
However, any member of the armed forces who is employed |
as a teacher
of subjects in the Reserve Officers Training |
Corps of any school and who
is not certified under the law |
governing the certification of teachers
shall be included |
as an employee.
|
(b) Are designated by the governing body of a |
municipality in which a
pension fund is required by law to |
be established for policemen or
firemen, respectively, as |
performing police or fire protection duties,
except that |
when such persons are the heads of the police or fire
|
department and are not eligible to be included within any |
such pension
fund, they shall be included within this |
Article; provided, that such
persons shall not be excluded |
to the extent of concurrent service and
earnings not |
|
designated as being for police or fire protection duties.
|
However, (i) any head of a police department who was a |
participant under this
Article immediately before October |
1, 1977 and did not elect, under Section
3-109 of this Act, |
to participate in a police pension fund shall be an
|
"employee", and (ii) any chief of police who elects to |
participate in this
Fund under Section 3-109.1 of this |
Code, regardless of whether such person
continues to be |
employed as chief of police or is employed in some other
|
rank or capacity within the police department, shall be an |
employee under
this Article for so long as such person is |
employed to perform police
duties by a participating |
municipality and has not lawfully rescinded that
election. |
(c) After August 26, 2011 (the effective date of Public |
Act 97-609), are contributors to or eligible to contribute |
to a Taft-Hartley pension plan established on or before |
June 1, 2011 and are employees of a theatre, arena, or |
convention center that is located in a municipality located |
in a county with a population greater than 5,000,000, and |
to which the participating municipality is required to |
contribute as the person's employer based on earnings from |
the municipality. Nothing in this paragraph shall affect |
service credit or creditable service for any period of |
service prior to August 26, 2011, and this paragraph shall |
not apply to individuals who are participating in the Fund |
prior to August 26, 2011.
|
|
(d) Become an employee of any of the following |
participating instrumentalities on or after the effective |
date of this amendatory Act of the 98th General Assembly: |
the Illinois Municipal League; the Illinois Association of |
Park Districts; the Illinois Supervisors, County |
Commissioners and Superintendents of Highways Association; |
an association, or not-for-profit corporation, membership |
in which is authorized under Section 85-15 of the Township |
Code; the United Counties Council; or the Will County |
Governmental League. |
(3) All persons, including, without limitation, public |
defenders and
probation officers, who receive earnings from |
general or special funds
of a county for performance of |
personal services or official duties
within the territorial |
limits of the county, are employees of the county
(unless |
excluded by subsection (2) of this Section) notwithstanding |
that
they may be appointed by and are subject to the direction |
of a person or
persons other than a county board or a county |
officer. It is hereby
established that an employer-employee |
relationship under the usual
common law rules exists between |
such employees and the county paying
their salaries by reason |
of the fact that the county boards fix their
rates of |
compensation, appropriate funds for payment of their earnings
|
and otherwise exercise control over them. This finding and this
|
amendatory Act shall apply to all such employees from the date |
of
appointment whether such date is prior to or after the |
|
effective date of
this amendatory Act and is intended to |
clarify existing law pertaining
to their status as |
participating employees in the Fund.
|
(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11; |
97-813, eff. 7-13-12.)
|
(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
|
Sec. 7-114. Earnings. "Earnings":
|
(a) An amount to be determined by the board, equal to the |
sum of:
|
1. The total amount of money paid to an employee for |
personal
services or official duties as an employee (except |
those employed as
independent contractors) paid out of the |
general fund, or out of any
special funds controlled by the |
municipality, or by any instrumentality
thereof, or |
participating instrumentality, including compensation, |
fees,
allowances, or other emolument paid for official |
duties (but not
including automobile maintenance, travel |
expense, or reimbursements for
expenditures incurred in |
the performance of duties or, in the case of a person who
|
first becomes a participant on or after the effective date
|
of this amendatory Act of the 98th General Assembly,
|
payments for unused sick or vacation time ) and, for fee
|
offices, the fees or earnings of the offices to the extent |
such fees are
paid out of funds controlled by the |
municipality, or instrumentality or
participating |
|
instrumentality; and
|
2. The money value, as determined by rules prescribed |
by the
governing body of the municipality, or |
instrumentality thereof, of any
board, lodging, fuel, |
laundry, and other allowances provided an employee
in lieu |
of money.
|
(b) For purposes of determining benefits payable under this |
fund
payments to a person who is engaged in an independently |
established
trade, occupation, profession or business and who |
is paid for his
service on a basis other than a monthly or |
other regular salary, are not
earnings.
|
(c) If a disabled participating employee is eligible to |
receive Workers'
Compensation for an accidental injury and the |
participating municipality or
instrumentality which employed |
the participating employee when injured
continues to pay the |
participating employee regular salary or other
compensation or |
pays the employee an amount in excess of the Workers'
|
Compensation amount, then earnings shall be deemed to be the |
total payments,
including an amount equal to the Workers' |
Compensation payments. These
payments shall be subject to |
employee contributions and allocated as if paid to
the |
participating employee when the regular payroll amounts would |
have been
paid if the participating employee had continued |
working, and creditable
service shall be awarded for this |
period.
|
(d) If an elected official who is a participating employee |
|
becomes disabled
but does not resign and is not removed from |
office, then earnings shall include
all salary payments made |
for the remainder of that term of office and the
official shall |
be awarded creditable service for the term of office.
|
(e) If a participating employee is paid pursuant to "An Act |
to provide for
the continuation of compensation for law |
enforcement officers, correctional
officers and firemen who |
suffer disabling injury in the line of duty", approved
|
September 6, 1973, as amended, the payments shall be deemed |
earnings, and the
participating employee shall be awarded |
creditable service for this period.
|
(f) Additional compensation received by a person while |
serving as a
supervisor of assessments, assessor, deputy |
assessor or member of a board of
review from the State of |
Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax |
Code shall not be
earnings for purposes of this Article and |
shall not be included in the
contribution formula or |
calculation of benefits for such person pursuant to
this |
Article.
|
(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
|
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
|
Sec. 7-116. "Final rate of earnings":
|
(a) For retirement and survivor annuities, the monthly |
earnings obtained
by dividing the total earnings received by |
the employee during the period of
either (1) the 48 consecutive |
|
months of service within the last 120 months of
service in |
which his total earnings were the highest or (2) the
employee's |
total period of service, by the number of months
of service in |
such period.
|
(b) For death benefits, the higher of the rate determined |
under
paragraph (a) of this Section or total earnings received |
in the last 12 months
of service divided by twelve. If the |
deceased employee has less than 12 months
of service, the |
monthly final rate shall be the monthly rate of pay the
|
employee was receiving when he began service.
|
(c) For disability benefits, the total earnings of a |
participating
employee in the last 12 calendar months of |
service prior to the date he
becomes disabled divided by 12.
|
(d) In computing the final rate of earnings: (1) the |
earnings rate for
all periods of prior service shall be |
considered equal to the average
earnings rate for the last 3 |
calendar years of prior service for
which creditable service is |
received under Section 7-139 or, if there is less than 3 years |
of
creditable prior service, the average for the total prior |
service period
for which creditable service is received under |
Section 7-139; (2) for out
of state service and authorized
|
leave, the earnings rate shall be the rate upon which service |
credits are
granted; (3) periods of military leave shall not be |
considered; (4) the
earnings rate for all periods of disability |
shall be considered equal to
the rate of earnings upon which |
the employee's disability benefits are
computed for such |
|
periods; (5) the earnings to be considered for each of
the |
final three months of the final earnings period for persons who |
first became participants before January 1, 2012 and the |
earnings to be considered for each of the final 24 months for |
participants who first become participants on or after January |
1, 2012 shall not exceed 125%
of the highest earnings of any |
other month in the final earnings period;
and (6) the annual |
amount of final rate of earnings shall be the monthly
amount |
multiplied by the number of months of service normally required |
by
the position in a year ; and (7) in the case of a person who
|
first becomes a participant on or after the effective date of
|
this amendatory Act of the 98th General Assembly, payments for
|
unused sick or vacation time shall not be considered .
|
(Source: P.A. 97-609, eff. 1-1-12.)
|
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
|
Sec. 7-139. Credits and creditable service to employees.
|
(a) Each participating employee shall be granted credits |
and creditable
service, for purposes of determining the amount |
of any annuity or benefit
to which he or a beneficiary is |
entitled, as follows:
|
1. For prior service: Each participating employee who |
is an employee
of a participating municipality or |
participating instrumentality on the
effective date shall |
be granted creditable service, but no credits under
|
paragraph 2 of this subsection (a), for periods of prior |
|
service for which
credit has not been received under any |
other pension fund or retirement system
established under |
this Code, as follows:
|
If the effective date of participation for the |
participating municipality
or participating |
instrumentality is on or before January 1, 1998, creditable
|
service shall be granted for the entire period of prior |
service with that
employer without any employee |
contribution.
|
If the effective date of participation for the |
participating municipality
or participating |
instrumentality is after January 1, 1998, creditable
|
service shall be granted for the last 20% of the period of |
prior service with
that employer, but no more than 5 years, |
without any employee contribution. A
participating |
employee may establish creditable service for the |
remainder of
the period of prior service with that employer |
by making an application in
writing, accompanied by payment |
of an employee contribution in an
amount determined by the |
Fund, based on the employee contribution rates in
effect at |
the time of application for the creditable service and the |
employee's
salary rate on the effective date of |
participation for that employer, plus
interest at the |
effective rate from the date of the prior service to the |
date
of payment. Application for this creditable service |
may be made at any time
while the employee is still in |
|
service.
|
A municipality that (i) has at least 35 employees; (ii) |
is located in a county with at least 2,000,000 inhabitants; |
and (iii) maintains an independent defined benefit pension |
plan for the benefit of its eligible employees may restrict |
creditable service in whole or in part for periods of prior |
service with the employer if the governing body of the |
municipality adopts an irrevocable resolution to restrict |
that creditable service and files the resolution with the |
board before the municipality's effective date of |
participation.
|
Any person who has withdrawn from the service of a |
participating
municipality
or participating |
instrumentality prior to the effective date, who reenters
|
the service of the same municipality or participating |
instrumentality after
the effective date and becomes a |
participating employee is entitled to
creditable service |
for prior service as otherwise provided in this
subdivision |
(a)(1) only if he or she renders 2 years of service as a
|
participating employee after the effective date. |
Application
for such service must be made while in a |
participating status.
The salary rate to be used in the |
calculation of the required employee
contribution, if any, |
shall be the employee's salary rate at the time of first
|
reentering service with the employer after the employer's |
effective date of
participation.
|
|
2. For current service, each participating employee |
shall be
credited with:
|
a. Additional credits of amounts equal to each |
payment of additional
contributions received from him |
under Section 7-173, as of the
date the corresponding |
payment of earnings is payable to him.
|
b. Normal credits of amounts equal to each payment |
of normal
contributions received from him, as of the |
date the corresponding payment of
earnings is payable |
to him, and normal contributions made for the purpose |
of
establishing out-of-state service credits as |
permitted under the conditions set
forth in paragraph 6 |
of this subsection (a).
|
c. Municipality credits in an amount equal to 1.4 |
times the normal
credits, except those established by |
out-of-state service credits, as of
the date of |
computation of any benefit if these credits would |
increase
the benefit.
|
d. Survivor credits equal to each payment of |
survivor contributions
received from the participating |
employee as of the date the
corresponding payment of |
earnings is payable, and survivor contributions made
|
for the purpose of establishing out-of-state service |
credits.
|
3. For periods of temporary and total and permanent |
disability
benefits, each employee receiving disability |
|
benefits shall be granted
creditable service for the period |
during which disability benefits are
payable. Normal and |
survivor credits, based upon the rate of earnings
applied |
for disability benefits, shall also be granted if such |
credits
would result in a higher benefit to any such |
employee or his
beneficiary.
|
4. For authorized leave of absence without pay: A |
participating
employee shall be granted credits and |
creditable service for periods of
authorized leave of |
absence without pay under the following
conditions:
|
a. An application for credits and creditable |
service is submitted to the
board while the employee is |
in a status of
active employment.
|
b. Not more than 12 complete months of creditable |
service
for authorized leave of absence without pay |
shall be counted for purposes of
determining any |
benefits payable under this Article.
|
c. Credits and creditable service shall be granted |
for leave of
absence only if such leave is approved by |
the governing body of the
municipality, including |
approval of the estimated cost thereof to the
|
municipality as determined by the fund, and employee |
contributions, plus
interest at the effective rate |
applicable for each year from the end of
the period of |
leave to date of payment, have been paid to the fund in
|
accordance with Section 7-173. The contributions shall |
|
be computed upon the
assumption earnings continued |
during the period of leave at the rate in
effect when |
the leave began.
|
d. Benefits under the provisions of Sections |
7-141, 7-146, 7-150
and 7-163 shall become payable to |
employees on authorized leave of
absence, or their |
designated beneficiary, only if such leave of absence
|
is creditable hereunder, and if the employee has at |
least one year of
creditable service other than the |
service granted for leave of absence.
Any employee |
contributions due may be deducted from any benefits
|
payable.
|
e. No credits or creditable service shall be |
allowed for leave of
absence without pay during any |
period of prior service.
|
5. For military service: The governing body of a |
municipality or
participating instrumentality may elect to |
allow creditable service to
participating employees who |
leave their employment to serve in the armed
forces of the |
United States for all periods of such service, provided
|
that the person returns to active employment within 90 days |
after
completion
of full time active duty, but no |
creditable service shall be allowed such
person for any |
period that can be used in the computation of a pension
or |
any other pay or benefit, other than pay for active duty, |
for service
in any branch of the armed forces of the United |
|
States. If necessary to
the computation of any benefit, the |
board shall establish municipality
credits for |
participating employees under this paragraph on the
|
assumption that the employee received earnings at the rate |
received at
the time he left the employment to enter the |
armed forces. A
participating employee in the armed forces |
shall not be considered an
employee during such period of |
service and no additional death and no
disability benefits |
are payable for death or disability during such period.
|
Any participating employee who left his employment |
with a
municipality or participating instrumentality to |
serve in the armed
forces of the United States and who |
again became a participating
employee within 90 days after |
completion of full time active duty by
entering the service |
of a different municipality or participating
|
instrumentality, which has elected to allow creditable |
service for
periods of military service under the preceding |
paragraph, shall also be
allowed creditable service for his |
period of military service on the
same terms that would |
apply if he had been employed, before entering
military |
service, by the municipality or instrumentality which |
employed
him after he left the military service and the |
employer costs arising in
relation to such grant of |
creditable service shall be charged to and
paid by that |
municipality or instrumentality.
|
Notwithstanding the foregoing, any participating |
|
employee
shall be entitled to creditable service as |
required by any federal law
relating to re-employment |
rights of persons who served in the United States
Armed |
Services. Such creditable service shall be granted upon |
payment by
the member of an amount equal to the employee |
contributions which would
have been required had the |
employee continued in service at the same
rate of earnings |
during the military leave period, plus interest at
the |
effective rate.
|
5.1. In addition to any creditable service established |
under
paragraph 5 of this subsection (a), creditable |
service may be granted for
up to 48 months of service in |
the armed forces of the United States.
|
In order to receive creditable service for military |
service under this
paragraph 5.1, a participating employee |
must (1) apply to the Fund
in writing and provide evidence |
of the military service that is satisfactory
to the Board; |
(2) obtain the written approval of the current employer; |
and (3)
make contributions to the Fund equal to (i)
the |
employee contributions that would have been required had |
the service been
rendered as a member, plus (ii) an amount |
determined by the board to be equal
to the employer's |
normal cost of the benefits accrued for that military
|
service, plus (iii) interest on items (i) and (ii) from the |
date of first
membership in the Fund to the date of |
payment. The required interest shall be
calculated at the |
|
regular interest rate.
|
The changes made to this paragraph 5.1 by Public Acts |
95-483 and 95-486
apply only to participating employees in |
service on or after August 28, 2007 (the effective date of |
those Public Acts).
|
6. For out-of-state service: Creditable service shall |
be granted for
service rendered to an out-of-state local |
governmental body under the
following conditions: The |
employee had participated and has irrevocably
forfeited |
all rights to benefits in the out-of-state public employees
|
pension system; the governing body of his participating |
municipality or
instrumentality authorizes the employee to |
establish such service; the
employee has 2 years current |
service with this municipality or
participating |
instrumentality; the employee makes a payment of
|
contributions, which shall be computed at 8% (normal) plus |
2% (survivor)
times length of service purchased times the |
average rate of earnings for the
first 2
years of service |
with the municipality or participating
instrumentality |
whose governing body authorizes the service established
|
plus interest at the effective rate on the date such |
credits are
established, payable from the date the employee |
completes the required 2
years of current service to date |
of payment. In no case shall more than
120 months of |
creditable service be granted under this provision.
|
7. For retroactive service: Any employee who could have |
|
but did not
elect to become a participating employee, or |
who should have been a
participant in the Municipal Public |
Utilities Annuity and Benefit Fund
before that fund was |
superseded, may receive creditable service for the
period |
of service not to exceed 50 months; however, a current or |
former
elected or appointed official of a participating |
municipality may establish credit under this paragraph 7 |
for more than 50
months of service as an official of that |
municipality, if the excess over 50 months is approved by |
resolution of the
governing body of the affected |
municipality filed with
the Fund before January 1, 2002.
|
Any employee who is a
participating employee on or |
after September 24, 1981 and who was
excluded from |
participation by the age restrictions removed by Public Act
|
82-596 may receive creditable service for the period, on or |
after January
1, 1979, excluded by the age restriction and, |
in addition, if the governing
body of the participating |
municipality or participating instrumentality elects
to |
allow creditable service for all employees excluded by the |
age restriction
prior to January 1, 1979, for service |
during the period prior to that date
excluded by the age |
restriction. Any employee who was excluded from
|
participation by the age restriction removed by Public Act |
82-596 and who is
not a participating employee on or after |
September 24, 1981 may receive
creditable service for |
service after January 1,
1979. Creditable service under |
|
this paragraph
shall be granted upon payment of the |
employee contributions
which would have been required had |
he participated, with interest at the
effective rate for |
each year from the end of the period of service
established |
to date of payment.
|
8. For accumulated unused sick leave: A participating |
employee who first becomes a participating employee before |
the effective date of this amendatory Act of the 98th |
General Assembly and who is
applying for a retirement |
annuity shall be entitled to creditable service
for that |
portion of the employee's accumulated unused sick leave
for |
which payment is not received, as follows:
|
a. Sick leave days shall be limited to those |
accumulated under a sick
leave plan established by a |
participating municipality or participating
|
instrumentality which is available to all employees or |
a class of employees.
|
b. Except as provided in item b-1, only sick leave |
days accumulated with a participating municipality or
|
participating instrumentality with which the employee |
was in service within
60 days of the effective date of |
his retirement annuity shall be credited;
If the |
employee was in service with more than one employer |
during this
period only the sick leave days with the |
employer with which the employee
has the greatest |
number of unpaid sick leave days shall be considered.
|
|
b-1. If the employee was in the service of more |
than one employer as defined in item (2) of paragraph |
(a) of subsection (A) of Section 7-132, then the sick |
leave days from all such employers shall be credited, |
as long as the creditable service attributed to those |
sick leave days does not exceed the limitation in item |
f of this paragraph 8. In calculating the creditable |
service under this item b-1, the sick leave days from |
the last employer shall be considered first, then the |
remaining sick leave days shall be considered until |
there are no more days or the maximum creditable sick |
leave threshold under item f of this paragraph 8 has |
been reached.
|
c. The creditable service granted shall be |
considered solely for the
purpose of computing the |
amount of the retirement annuity and shall not be
used |
to establish any minimum service period required by any |
provision of the
Illinois Pension Code, the effective |
date of the retirement annuity, or the
final rate of |
earnings.
|
d. The creditable service shall be at the rate of |
1/20 of a month for
each full sick day, provided that |
no more than 12 months may be credited
under this |
subdivision 8.
|
e. Employee contributions shall not be required |
for creditable service
under this subdivision 8.
|
|
f. Each participating municipality and |
participating instrumentality
with which an employee |
has service within 60 days of the effective date of
his |
retirement annuity shall certify to the board the |
number of accumulated
unpaid sick leave days credited |
to the employee at the time of termination
of service.
|
9. For service transferred from another system: |
Credits and
creditable service shall be granted for service |
under Article 4, 5, 8, 14,
or 16 of this Act, to any active |
member of this Fund, and to any
inactive member who has |
been a county sheriff, upon
transfer of such credits |
pursuant to Section 4-108.3, 5-235,
8-226.7,
14-105.6, or |
16-131.4, and payment by the member of the amount by
which |
(1) the employer and employee contributions that would have |
been required
if he had participated in this Fund as a |
sheriff's law enforcement employee
during the period for |
which credit is
being transferred, plus interest thereon at |
the effective rate for each
year, compounded annually, from |
the date of termination of the service for
which credit is |
being transferred to the date of payment, exceeds (2) the
|
amount actually transferred to the Fund.
Such transferred |
service shall be deemed to be service as a sheriff's law
|
enforcement employee for the purposes of Section 7-142.1.
|
10. For service transferred from an Article 3 system |
under Section 3-110.8: Credits and
creditable service |
shall be granted for service under Article 3 of this Act as |
|
provided in Section 3-110.8, to any active member of this |
Fund upon
transfer of such credits pursuant to Section |
3-110.8. If the amount by
which (1) 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 thereon at the |
effective rate for each
year, compounded annually, from the |
date of termination of the service for
which credit is |
being transferred to the date of payment, exceeds (2) the
|
amount actually transferred to the Fund, then the amount of |
creditable service established under this paragraph 10 |
shall be reduced by a corresponding amount in accordance |
with the rules and procedures established under this |
paragraph 10.
|
The board shall establish by rule the manner of making |
the calculation required under
this paragraph 10, taking |
into account the appropriate actuarial
assumptions; the |
member's service, age, and salary history; the level
of |
funding of the employer; and
any other factors that the |
board determines to be relevant.
|
Until January 1, 2010, members who transferred service |
from an Article 3 system under the provisions of Public Act |
94-356 may establish additional credit in this Fund, but |
only up to the amount of the service credit reduction in |
that transfer, as calculated under the actuarial |
assumptions. This credit may be established upon payment by |
|
the member of an amount to be determined by the board, |
equal to (1) the amount that would have been contributed as |
employee and employer contributions had all the service |
been as an employee under this Article, plus interest |
thereon compounded annually from the date of service to the |
date of transfer, less (2) the total amount transferred |
from the Article 3 system, plus (3) interest on the |
difference at the effective rate for each year, compounded |
annually, from the date of the transfer to the date of |
payment. The additional service credit is allowed under |
this amendatory Act of the 95th General Assembly |
notwithstanding the provisions of Article 3 terminating |
all transferred credits on the date of transfer. |
11. For service transferred from an Article 3 system |
under Section 3-110.3: Credits and creditable service |
shall be granted for service under Article 3 of this Act as |
provided in Section 3-110.3, to any active member of this |
Fund, upon transfer of such credits pursuant to Section |
3-110.3. If the board determines that the amount |
transferred is less than the true cost to the Fund of |
allowing that creditable service to be established, then in |
order to establish that creditable service, the member must |
pay to the Fund an additional contribution equal to the |
difference, as determined by the board in accordance with |
the rules and procedures adopted under this paragraph. If |
the member does not make the full additional payment as |
|
required by this paragraph prior to termination of his |
participation with that employer, then his or her |
creditable service shall be reduced by an amount equal to |
the difference between the amount transferred under |
Section 3-110.3, including any payments made by the member |
under this paragraph prior to termination, and the true |
cost to the Fund of allowing that creditable service to be |
established, as determined by the board in accordance with |
the rules and procedures adopted under this paragraph. |
The board shall establish by rule the manner of making |
the calculation required under this paragraph 11, taking |
into account the appropriate actuarial assumptions; the |
member's service, age, and salary history, and any other |
factors that the board determines to be relevant. |
(b) Creditable service - amount:
|
1. One month of creditable service
shall be allowed for |
each month for which a participating employee made
|
contributions as required under Section 7-173, or for which |
creditable
service is otherwise granted hereunder. Not |
more than 1 month of
service shall be credited and counted |
for 1 calendar month, and not more
than 1 year of service |
shall be credited and counted for any calendar
year. A |
calendar month means a nominal month beginning on the first |
day
thereof, and a calendar year means a year beginning |
January 1 and ending
December 31.
|
2. A seasonal employee shall be given 12 months of |
|
creditable
service if he renders the number of months of |
service normally required
by the position in a 12-month |
period and he remains in service for the
entire 12-month |
period. Otherwise a fractional year of service in the
|
number of months of service rendered shall be credited.
|
3. An intermittent employee shall be given creditable |
service for
only those months in which a contribution is |
made under Section 7-173.
|
(c) No application for correction of credits or creditable |
service shall
be considered unless the board receives an |
application for correction while
(1) the applicant is a |
participating employee and in active employment
with a |
participating municipality or instrumentality, or (2) while |
the
applicant is actively participating in a pension fund or |
retirement
system which is a participating system under the |
Retirement Systems
Reciprocal Act. A participating employee or |
other applicant shall not be
entitled to credits or creditable |
service unless the required employee
contributions are made in |
a lump sum or in installments made in accordance
with board |
rule.
|
(d) Upon the granting of a retirement, surviving spouse or |
child
annuity, a death benefit or a separation benefit, on |
account of any
employee, all individual accumulated credits |
shall thereupon terminate.
Upon the withdrawal of additional |
contributions, the credits applicable
thereto shall thereupon |
terminate. Terminated credits shall not be applied
to increase |
|
the benefits any remaining employee would otherwise receive |
under
this Article.
|
(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13.)
|
(40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
|
Sec. 9-219. Computation of service.
|
(1) In computing the term of service of an employee prior |
to the effective
date, the entire period beginning on the date |
he was first appointed and
ending on the day before the |
effective date, except any intervening period
during which he |
was separated by withdrawal from service, shall be counted
for |
all purposes of this Article.
|
(2) In computing the term of service of any employee on or |
after the
effective date, the following periods of time shall |
be counted as periods
of service for age and service, widow's |
and child's annuity purposes:
|
(a) The time during which he performed the duties of |
his position.
|
(b) Vacations, leaves of absence with whole or part |
pay, and leaves of
absence without pay not longer than 90 |
days.
|
(c) For an employee who is a member of a county police |
department or a
correctional officer with the county |
department of corrections, approved
leaves of absence |
without pay during which the
employee serves as a full-time |
officer or employee of an employee
association, the |
|
membership of which consists of other participants in the
|
Fund, provided that the employee contributes to the
Fund |
(1) the amount that he would have contributed had he |
remained an active
employee in the position he
occupied at |
the time the leave of absence was granted, (2) an amount |
calculated
by the Board representing employer |
contributions, and (3) regular interest
thereon from the |
date of service to the date of payment. However, if the
|
employee's application to establish credit under this |
subsection is received
by the Fund on or after July 1, 2002 |
and before July 1, 2003, the amount
representing employer |
contributions specified in item (2) shall be waived.
|
For a former member of a county police department who |
has received a
refund under Section 9-164, periods during |
which the employee serves as
head of an employee |
association, the membership of which consists of other
|
police officers, provided that the employee contributes to |
the Fund (1) the
amount that he would have contributed had |
he remained an active member of
the county police |
department in the position he occupied at the time he
left |
service, (2) an amount calculated by the Board representing |
employer
contributions, and (3) regular interest thereon |
from the date of service to
the date of payment. However, |
if the former member of the county police
department |
retires on or after January 1, 1993 but no later than March |
1,
1993, the amount representing employer contributions |
|
specified in item (2)
shall be waived.
|
For leaves of absence to which this item (c) applies |
and for other periods to which this item (c) applies, |
including those leaves of absence and other periods of |
service beginning before January 5, 2012 ( the effective |
date of Public Act 97-651) this amendatory Act of the 97th |
General Assembly , the employee or former member must |
continue to remain in sworn status, subject to the |
professional standards of the public employer or those |
terms established in statute.
|
(d) Any period of disability for which he received |
disability benefit or
whole or part pay.
|
(e) For a person who first becomes an employee before
|
the effective date of this amendatory Act of the 98th
|
General Assembly, accumulated Accumulated vacation or |
other time for which an employee who
retires on or after |
November 1, 1990 receives a lump sum payment at the
time of |
retirement, provided that contributions were made to the |
fund at
the time such lump sum payment was received. The |
service granted for the
lump sum payment shall not change |
the employee's date of withdrawal for
computing the |
effective date of the annuity.
|
(f) An employee who first becomes an employee before
|
the effective date of this amendatory Act of the 98th
|
General Assembly may receive service credit for annuity |
purposes for
accumulated sick leave as of the date of the |
|
employee's withdrawal from
service, not to exceed a total |
of 180 days, provided that the amount of
such accumulated |
sick leave is certified by the County Comptroller to the
|
Board and the employee pays an amount equal to 8.5% (9% for |
members
of the County Police Department who are eligible to |
receive an annuity
under Section 9-128.1) of the amount |
that would have been paid had such
accumulated sick leave |
been paid at the employee's final rate of salary.
Such |
payment shall be made within 30 days after the date of |
withdrawal and
prior to receipt of the first annuity check. |
The service credit granted
for such accumulated sick leave |
shall not change the employee's date of
withdrawal for the |
purpose of computing the effective date of the annuity.
|
(3) In computing the term of service of an employee on or |
after the
effective date for ordinary disability benefit |
purposes, the following
periods of time shall be counted as |
periods of service:
|
(a) Unless otherwise specified in Section 9-157, the |
time during which
he performed the duties of his position.
|
(b) Paid vacations and leaves of absence with whole or |
part pay.
|
(c) Any period for which he received duty disability |
benefit.
|
(d) Any period of disability for which he received |
whole or part pay.
|
(4) For an employee who on January 1, 1958, was transferred |
|
by Act
of the 70th General Assembly from his position in a |
department of welfare
of any city located in the county in |
which this Article is in force and
effect to a similar position |
in a department of such county, service shall
also be credited |
for ordinary disability benefit and child's annuity for
such |
period of department of welfare service during which period he |
was a
contributor to a statutory annuity and benefit fund in |
such city and for
which purposes service credit would otherwise |
not be credited by virtue of
such involuntary transfer.
|
(5) An employee described in subsection (e) of Section |
9-108 shall receive
credit for child's annuity and ordinary |
disability benefit for the period of
time for which he was |
credited with service in the fund from which he was
|
involuntarily separated through class or group transfer; |
provided, that no such
credit shall be allowed to the extent |
that it results in a duplication of
credits or benefits, and |
neither shall such credit be allowed to the extent
that it was |
or may be forfeited by the application for and acceptance of a
|
refund from the fund from which the employee was transferred.
|
(6) Overtime or extra service shall not be included in |
computing
service. Not more than 1 year of service shall be |
allowed for service
rendered during any calendar year.
|
(7) Unused sick or vacation time shall not be used to
|
compute the service of an employee who first becomes an
|
employee on or after the effective date of this amendatory Act
|
of the 98th General Assembly. |
|
(Source: P.A. 97-651, eff. 1-5-12.)
|
(40 ILCS 5/9-220) (from Ch. 108 1/2, par. 9-220)
|
Sec. 9-220. Basis of service credit.
|
(a) In computing the period of service of any employee for |
annuity
purposes under Section 9-134, the following provisions |
shall govern:
|
(1) All periods prior to the effective date shall be |
computed in
accordance with the provisions governing the |
computation of such
service.
|
(2) Service on or after the effective date shall |
include:
|
(i) The actual period of time the employee |
contributes or has
contributed to the fund for service |
rendered to age 65 plus the actual
period of time after |
age 65 for which the employee performs the duties of
|
his position or performs such duties and is given a |
county contribution for
age and service annuity or |
minimum annuity purposes.
|
(ii) Leaves of absence from duty, or vacation, for |
which an
employee receives all or part of his salary.
|
(iii) For a person who first becomes an employee |
before
the effective date of this amendatory Act of the |
98th
General Assembly, accumulated Accumulated |
vacation or other time for which an employee who
|
retires on or after November 1, 1990 receives a lump |
|
sum payment at the
time of retirement, provided that |
contributions were made to the fund at
the time such |
lump sum payment was received. The service granted for |
the
lump sum payment shall not change the employee's |
date of withdrawal for
computing the effective date of |
the annuity.
|
(iv) For a person who first becomes an employee |
before
the effective date of this amendatory Act of the |
98th
General Assembly, accumulated Accumulated sick |
leave as of the date of the employee's
withdrawal from |
service, not to exceed a total of 180 days, provided |
that
the amount of such accumulated sick leave is |
certified by the County
Comptroller to the Board and |
the employee pays an amount equal to 8.5% (9%
for |
members of the County Police Department who are |
eligible to receive an
annuity under Section 9-128.1) |
of the amount that would have been paid had
such |
accumulated sick leave been paid at the employee's |
final rate of
salary. Such payment shall be made within |
30 days after the date of
withdrawal and prior to |
receipt of the first annuity check. The service
credit |
granted for such accumulated sick leave shall not |
change the
employee's date of withdrawal for the |
purpose of computing the effective
date of the annuity.
|
(v) Periods during which the employee has had |
contributions for
annuity purposes made for him in |
|
accordance with law while on military
leave of absence |
during World War II.
|
(vi) Periods during which the employee receives a
|
disability benefit under this Article. |
(vii) For any person who first becomes a member on |
or after January 1, 2011, the actual period of time the |
employee contributes or has contributed to the fund for |
service rendered up to the limitation on salary in |
subsection (b-5) of Section 1-160 plus the actual |
period of time thereafter for which the employee |
performs the duties of his position and ceased |
contributing due to the salary limitation in |
subsection (b-5) of Section 1-160.
|
(3) The right to have certain periods of time
|
considered as service as stated in paragraph (2) of Section |
9-164 shall
not apply for annuity purposes unless the |
refunds shall have been repaid
in accordance with this |
Article.
|
(4) All service shall be computed
in whole calendar |
months, and at least 15 days of service in any one
calendar |
month shall constitute one calendar month of service, and 1
|
year of service shall be equal to the number of months, |
days or hours
for which an appropriation was made in the |
annual appropriation
ordinance for the position held by the |
employee.
|
(5) Unused sick or vacation time shall not be used to
|
|
compute the service of an employee who first becomes an
|
employee on or after the effective date of this amendatory |
Act
of the 98th General Assembly. |
(b) For all other annuity purposes of this Article the |
following
schedule shall govern the computation of a year of |
service of an
employee whose salary or wages is on the basis |
stated, and any
fractional part of a year of service shall be |
determined according to
said schedule:
|
Annual or Monthly Basis: Service during 4 months in any 1 |
calendar
year;
|
Weekly Basis: Service during any 17 weeks of any 1 calendar |
year, and
service during any week shall constitute a week of |
service;
|
Daily Basis: Service during 100 days in any 1 calendar |
year, and
service during any day shall constitute a day of |
service;
|
Hourly Basis: Service during 800 hours in any 1 calendar |
year, and
service during any hour shall constitute an hour of |
service.
|
(Source: P.A. 96-1490, eff. 1-1-11.)
|
(40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
|
Sec. 14-103.10. Compensation.
|
(a) For periods of service prior to January 1, 1978, the |
full rate of salary
or wages payable to an employee for |
personal services performed if he worked
the full normal |
|
working period for his position, subject to the following
|
maximum amounts: (1) prior to July 1, 1951, $400 per month or |
$4,800 per year;
(2) between July 1, 1951 and June 30, 1957 |
inclusive, $625 per month or $7,500
per year; (3) beginning |
July 1, 1957, no limitation.
|
In the case of service of an employee in a position |
involving
part-time employment, compensation shall be |
determined according to the
employees' earnings record.
|
(b) For periods of service on and after January 1, 1978, |
all
remuneration for personal services performed defined as |
"wages" under
the Social Security Enabling Act, including that |
part of such
remuneration which is in excess of any maximum |
limitation provided in
such Act, and including any benefits |
received by an employee under a sick
pay plan in effect before |
January 1, 1981, but excluding lump sum salary
payments:
|
(1) for vacation,
|
(2) for accumulated unused sick leave,
|
(3) upon discharge or dismissal,
|
(4) for approved holidays.
|
(c) For periods of service on or after December 16, 1978, |
compensation
also includes any benefits, other than lump sum |
salary payments made at
termination of employment, which an |
employee receives or is eligible to
receive under a sick pay |
plan authorized by law.
|
(d) For periods of service after September 30, 1985, |
compensation also
includes any remuneration for personal |
|
services not included as "wages"
under the Social Security |
Enabling Act, which is deducted for purposes of
participation |
in a program established pursuant to Section 125 of the
|
Internal Revenue Code or its successor laws.
|
(e) For members for which Section 1-160 applies for periods |
of service on and after January 1, 2011, all remuneration for |
personal services performed defined as "wages" under the Social |
Security Enabling Act, excluding remuneration that is in excess |
of the annual earnings, salary, or wages of a member or |
participant, as provided in subsection (b-5) of Section 1-160, |
but including any benefits received by an employee under a sick |
pay plan in effect before January 1, 1981.
Compensation shall |
exclude lump sum salary payments: |
(1) for vacation; |
(2) for accumulated unused sick leave; |
(3) upon discharge or dismissal; and |
(4) for approved holidays. |
(f) Notwithstanding the other provisions of this Section, |
for service on or after July 1, 2013, "compensation"
does not |
include any stipend payable to an employee for service on a |
board or commission. |
(g) Notwithstanding any other provision of this Section,
|
for an employee who first becomes a participant on or after the
|
effective date of this amendatory Act of the 98th General
|
Assembly, "compensation" does not include any payments or
|
reimbursements for travel vouchers submitted more than 30 days
|
|
after the last day of travel for which the voucher is
|
submitted. |
(h) Notwithstanding any other provision of this Code, the
|
annual compensation of a Tier 1 member for the purposes of this |
Code
shall not exceed, for periods of service on or after the
|
effective date of this amendatory Act of the 98th General
|
Assembly, the greater of (i) the annual limitation determined |
from
time to time under subsection (b-5) of Section 1-160 of |
this
Code, (ii) the annualized compensation of the Tier 1 |
member as of that effective date, or (iii) the annualized |
compensation of the Tier 1 member immediately preceding the |
expiration, renewal, or amendment of an employment contract or |
collective bargaining agreement in effect on that effective |
date. |
(Source: P.A. 98-449, eff. 8-16-13.)
|
(40 ILCS 5/14-103.40 new) |
Sec. 14-103.40. Tier 1 member. "Tier 1 member": A member |
of this System who first became a member or participant before |
January 1, 2011 under any reciprocal retirement system or |
pension fund established under this Code other than a |
retirement system or pension fund established under Article 2, |
3, 4, 5, 6, or 18 of this Code.
|
(40 ILCS 5/14-104.3) (from Ch. 108 1/2, par. 14-104.3)
|
Sec. 14-104.3.
Notwithstanding provisions contained in
|
|
Section 14-103.10, any person who first becomes a member before
|
the effective date of this amendatory Act of the 98th General
|
Assembly and who at the time of retirement and after December
|
6, 1983 receives compensation
in a lump sum for accumulated |
vacation, sickness, or personal business may
receive service |
credit for such periods by making contributions within 90
days |
of withdrawal, based on the rate of compensation in effect |
immediately
prior to retirement and the contribution rate then |
in effect. Any person who first becomes a member on or after
|
the effective date of this amendatory Act of the 98th General |
Assembly and who receives compensation in a lump sum for
|
accumulated vacation, sickness, or personal business may not
|
receive service credit for such periods. Exercising
the option |
provided in
this Section shall not change a member's date of |
withdrawal or final average
compensation for purposes of |
computing the amount or effective date of a
retirement annuity. |
Any annuitant who establishes service credit as herein
provided |
shall have his retirement annuity adjusted retroactively to the
|
date of retirement.
|
(Source: P.A. 83-1362.)
|
(40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
|
Sec. 14-106. Membership service credit.
|
(a) After January 1, 1944, all
service of a member since he |
last became a member with respect to which
contributions are |
made shall count as membership service; provided, that
for |
|
service on and after July 1, 1950, 12 months of service shall
|
constitute a year of membership service, the completion of 15 |
days or
more of service during any month shall constitute 1 |
month of membership
service, 8 to 15 days shall constitute 1/2 |
month of membership service
and less than 8 days shall |
constitute 1/4 month of membership service.
The payroll record |
of each department shall constitute conclusive
evidence of the |
record of service rendered by a member.
|
(b) For a member who is employed and paid on an |
academic-year basis
rather than on a 12-month annual basis, |
employment for a full academic year
shall constitute a full |
year of membership service, except that the member
shall not |
receive more than one year of membership service credit (plus |
any
additional service credit granted for unused sick leave) |
for service during
any 12-month period. This subsection (b) |
applies to all such service for which
the member has not begun |
to receive a retirement annuity before January 1,
2001.
|
(c) A person who first becomes a member before
the |
effective date of this amendatory Act of the 98th General
|
Assembly shall be entitled to additional service credit, under
|
rules prescribed by the Board, for accumulated unused sick |
leave credited
to his account in the last Department on the |
date of withdrawal from
service or for any period for which he |
would have been eligible to receive
benefits under a sick pay |
plan authorized by law, if he had suffered a
sickness or |
accident on the date of withdrawal from service. It shall be |
|
the
responsibility of the last Department to certify to the |
Board the length of
time salary or benefits would have been |
paid to the member based upon the
accumulated unused sick leave |
or the applicable sick pay plan if he had
become entitled |
thereto because of sickness on the date that his status as
an |
employee terminated. This period of service credit granted |
under this
paragraph shall not be considered in determining the |
date the retirement
annuity is to begin, or final average |
compensation.
|
(d) A person who first becomes a member on or after the |
effective date of this amendatory Act of the 98th General
|
Assembly shall not be entitled to additional service credit for
|
accumulated unused sick leave. |
(Source: P.A. 92-14, eff. 6-28-01.)
|
(40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
|
Sec. 14-107. Retirement annuity - service and age - |
conditions. |
(a) A member is entitled to a retirement annuity after |
having at least 8 years of
creditable service.
|
(b) A member who has at least 35 years of creditable |
service may claim his
or her retirement annuity at any age.
A |
member having at least 8 years of creditable service but less |
than 35 may
claim his or her retirement annuity upon or after |
attainment of age 60
or, beginning January 1, 2001, any lesser |
age which, when added to the
number of years of his or her |
|
creditable service, equals at least 85.
A member upon or after |
attainment of age 55 having at least 25 years of creditable |
service (30 years if retirement is before
January 1, 2001) may |
elect to receive the lower retirement annuity provided
in |
paragraph (c) of Section 14-108 of this Code. For purposes of |
the rule
of 85, portions of years shall be counted in whole |
months.
|
(c) Notwithstanding subsection (b) of this Section, for a |
Tier 1 member who begins receiving a retirement annuity under |
this Section on or after July 1, 2014, the required retirement |
age under subsection (b) is increased as follows, based on the |
Tier 1 member's age on June 1, 2014: |
(1) If he or she is at least age 46 on June 1, 2014, |
then the required retirement ages under subsection (b) |
remain unchanged. |
(2) If he or she is at least age 45 but less than age 46 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 4 months. |
(3) If he or she is at least age 44 but less than age 45 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 8 months. |
(4) If he or she is at least age 43 but less than age 44 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 12 months. |
(5) If he or she is at least age 42 but less than age 43 |
on June 1, 2014, then the required retirement ages under |
|
subsection (b) are increased by 16 months. |
(6) If he or she is at least age 41 but less than age 42 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 20 months. |
(7) If he or she is at least age 40 but less than age 41 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 24 months. |
(8) If he or she is at least age 39 but less than age 40 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 28 months. |
(9) If he or she is at least age 38 but less than age 39 |
on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 32 months. |
(10) If he or she is at least age 37 but less than age |
38 on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 36 months. |
(11) If he or she is at least age 36 but less than age |
37 on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 40 months. |
(12) If he or she is at least age 35 but less than age |
36 on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 44 months. |
(13) If he or she is at least age 34 but less than age |
35 on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 48 months. |
(14) If he or she is at least age 33 but less than age |
|
34 on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 52 months. |
(15) If he or she is at least age 32 but less than age |
33 on June 1, 2014, then the required retirement ages under |
subsection (b) are increased by 56 months. |
(16) If he or she is less than age 32 on June 1, 2014, |
then the required retirement ages under subsection (b) are |
increased by 60 months. |
Notwithstanding Section 1-103.1, this subsection (c) |
applies without regard to whether or not the Tier 1 member is |
in active service under this Article on or after the effective |
date of this amendatory Act of the 98th General Assembly. |
(d) The allowance shall begin with the first full calendar |
month specified in the
member's application therefor, the first |
day of which shall not be before the
date of withdrawal as |
approved by the board. Regardless of the date of
withdrawal, |
the allowance need not begin within one year of application
|
therefor.
|
(Source: P.A. 91-927, eff. 12-14-00.)
|
(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
|
Sec. 14-108. Amount of retirement annuity. A member who |
has contributed to the System for at least 12 months shall
be |
entitled to a prior service annuity for each year of certified |
prior
service credited to him, except that a member shall |
receive 1/3 of the prior
service annuity for each year of |
|
service for which contributions have been
made and all of such |
annuity shall be payable after the member has made
|
contributions for a period of 3 years. Proportionate amounts |
shall be payable
for service of less than a full year after |
completion of at least 12 months.
|
The total period of service to be considered in |
establishing the measure
of prior service annuity shall include |
service credited in the Teachers'
Retirement System of the |
State of Illinois and the State Universities
Retirement System |
for which contributions have been made by the member to
such |
systems; provided that at least 1 year of the total period of 3 |
years
prescribed for the allowance of a full measure of prior |
service annuity
shall consist of membership service in this |
system for which credit has been
granted.
|
(a) In the case of a member who retires on or after January |
1, 1998 and
is a noncovered employee, the retirement annuity |
for membership service and
prior service shall be 2.2% of final |
average compensation for each year of
service. Any service |
credit established as a covered employee shall be
computed as |
stated in
paragraph (b).
|
(b) In the case of a member who retires on or after January |
1, 1998
and is a covered employee, the retirement annuity for |
membership
service and prior service shall be computed as |
stated in paragraph (a) for
all service credit established as a |
noncovered employee; for service credit
established as a |
covered employee it shall be 1.67% of final average
|
|
compensation for each year of service.
|
(c) For a member
retiring after attaining age 55 but before |
age 60 with at least 30 but less
than 35 years of creditable |
service if retirement is before January 1, 2001, or
with at |
least 25 but less than 30 years of creditable service if |
retirement is
on or after January 1, 2001, the retirement |
annuity shall be reduced by 1/2
of 1% for each month that the |
member's age is under age 60 at the time of
retirement. For |
members to whom subsection (c) of Section 14-107 applies, the |
references to age 55 and 60 in this subsection (c) are |
increased as provided in subsection (c) of Section 14-107.
|
(d) A retirement annuity shall not exceed 75% of final |
average compensation,
subject to such extension as may result |
from the application of Section 14-114
or Section 14-115.
|
(e) The retirement annuity payable to any covered employee |
who is a member
of the System and in service on January 1, |
1969, or in service thereafter
in 1969 as a result of |
legislation enacted by the Illinois General Assembly
|
transferring the member to State employment from county |
employment in a
county Department of Public Aid in counties of |
3,000,000 or more population,
under a plan of coordination with |
the Old Age, Survivors and Disability
provisions thereof, if |
not fully insured for Old Age Insurance payments
under the |
Federal Old Age, Survivors and Disability Insurance provisions
|
at the date of acceptance of a retirement annuity, shall not be |
less than
the amount for which the member would have been |
|
eligible if coordination
were not applicable.
|
(f) The retirement annuity payable to any covered employee |
who is a member
of the System and in service on January 1, |
1969, or in service thereafter
in 1969 as a result of the |
legislation designated in the immediately preceding
paragraph, |
if fully insured for Old Age Insurance payments under the |
Federal
Social Security Act at the date of acceptance of a |
retirement annuity, shall
not be less than an amount which when |
added to the Primary Insurance Benefit
payable to the member |
upon attainment of age 65 under such Federal Act,
will equal |
the annuity which would otherwise be payable if the coordinated
|
plan of coverage were not applicable.
|
(g) In the case of a member who is a noncovered employee, |
the retirement
annuity for membership service as a security |
employee of the Department of
Corrections or security employee |
of the Department of Human Services shall
be: if retirement |
occurs on or after January 1, 2001, 3% of final average
|
compensation for each year of creditable service; or if |
retirement occurs
before January 1, 2001, 1.9% of final average |
compensation for each of the
first 10 years of service, 2.1% |
for each of the next 10 years of
service, 2.25% for each year |
of service in excess of 20 but not
exceeding 30, and 2.5% for |
each year in excess of 30; except that the
annuity may be |
calculated under subsection (a) rather than this subsection (g)
|
if the resulting annuity is greater.
|
(h) In the case of a member who is a covered employee, the |
|
retirement
annuity for membership service as a security |
employee of the Department of
Corrections or security employee |
of the Department of Human Services shall
be: if retirement |
occurs on or after January 1, 2001, 2.5% of final average
|
compensation for each year of creditable service; if retirement |
occurs before
January 1, 2001, 1.67% of final average |
compensation for each of the first
10 years of service, 1.90% |
for each of the next 10 years of
service, 2.10% for each year |
of service in excess of 20 but not
exceeding 30, and 2.30% for |
each year in excess of 30.
|
(i) For the purposes of this Section and Section 14-133 of |
this Act,
the term "security employee of the Department of |
Corrections" and the term
"security employee of the Department |
of Human Services" shall have the
meanings ascribed to them in |
subsection (c) of Section 14-110.
|
(j) The retirement annuity computed pursuant to paragraphs |
(g) or (h)
shall be applicable only to those security employees |
of the Department of
Corrections and security employees of the |
Department of Human Services who
have at least 20 years of |
membership service and who are not eligible for
the alternative |
retirement annuity provided under Section 14-110. However,
|
persons transferring to this System under Section 14-108.2 or |
14-108.2c
who have service credit under Article 16 of this Code |
may count such service
toward establishing their eligibility |
under the 20-year service requirement of
this subsection; but |
such service may be used only for establishing such
|
|
eligibility, and not for the purpose of increasing or |
calculating any benefit.
|
(k) (Blank).
|
(l) The changes to this Section made by this amendatory Act |
of 1997
(changing certain retirement annuity formulas from a |
stepped rate to a flat
rate) apply to members who retire on or |
after January 1, 1998, without regard
to whether employment |
terminated before the effective date of this amendatory
Act of |
1997. An annuity shall not be calculated in steps by using the |
new flat
rate for some steps and the superseded stepped rate |
for other steps of the same
type of service.
|
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
|
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
|
Sec. 14-110. Alternative retirement annuity.
|
(a) Any member who has withdrawn from service with not less |
than 20
years of eligible creditable service and has attained |
age 55, and any
member who has withdrawn from service with not |
less than 25 years of
eligible creditable service and has |
attained age 50, regardless of whether
the attainment of either |
of the specified ages occurs while the member is
still in |
service, shall be entitled to receive at the option of the |
member,
in lieu of the regular or minimum retirement annuity, a |
retirement annuity
computed as follows:
|
(i) for periods of service as a noncovered employee:
if |
retirement occurs on or after January 1, 2001, 3% of final
|
|
average compensation for each year of creditable service; |
if retirement occurs
before January 1, 2001, 2 1/4% of |
final average compensation for each of the
first 10 years |
of creditable service, 2 1/2% for each year above 10 years |
to
and including 20 years of creditable service, and 2 3/4% |
for each year of
creditable service above 20 years; and
|
(ii) for periods of eligible creditable service as a |
covered employee:
if retirement occurs on or after January |
1, 2001, 2.5% of final average
compensation for each year |
of creditable service; if retirement occurs before
January |
1, 2001, 1.67% of final average compensation for each of |
the first
10 years of such service, 1.90% for each of the |
next 10 years of such service,
2.10% for each year of such |
service in excess of 20 but not exceeding 30, and
2.30% for |
each year in excess of 30.
|
Such annuity shall be subject to a maximum of 75% of final |
average
compensation if retirement occurs before January 1, |
2001 or to a maximum
of 80% of final average compensation if |
retirement occurs on or after January
1, 2001.
|
These rates shall not be applicable to any service |
performed
by a member as a covered employee which is not |
eligible creditable service.
Service as a covered employee |
which is not eligible creditable service
shall be subject to |
the rates and provisions of Section 14-108.
|
(a-5) Notwithstanding subsection (a) of this Section, for a |
Tier 1 member who begins receiving a retirement annuity under |
|
this Section on or after July 1, 2014, the required retirement |
age under subsection (a) is increased as follows, based on the |
Tier 1 member's age on June 1, 2014: |
(1) If he or she is at least age 46 on June 1, 2014, |
then the required retirement ages under subsection (a) |
remain unchanged. |
(2) If he or she is at least age 45 but less than age 46 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 4 months. |
(3) If he or she is at least age 44 but less than age 45 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 8 months. |
(4) If he or she is at least age 43 but less than age 44 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 12 months. |
(5) If he or she is at least age 42 but less than age 43 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 16 months. |
(6) If he or she is at least age 41 but less than age 42 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 20 months. |
(7) If he or she is at least age 40 but less than age 41 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 24 months. |
(8) If he or she is at least age 39 but less than age 40 |
on June 1, 2014, then the required retirement ages under |
|
subsection (a) are increased by 28 months. |
(9) If he or she is at least age 38 but less than age 39 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 32 months. |
(10) If he or she is at least age 37 but less than age |
38 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 36 months. |
(11) If he or she is at least age 36 but less than age |
37 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 40 months. |
(12) If he or she is at least age 35 but less than age |
36 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 44 months. |
(13) If he or she is at least age 34 but less than age |
35 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 48 months. |
(14) If he or she is at least age 33 but less than age |
34 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 52 months. |
(15) If he or she is at least age 32 but less than age |
33 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 56 months. |
(16) If he or she is less than age 32 on June 1, 2014, |
then the required retirement ages under subsection (a) are |
increased by 60 months. |
Notwithstanding Section 1-103.1, this subsection (a-5) |
|
applies without regard to whether or not the Tier 1 member is |
in active service under this Article on or after the effective |
date of this amendatory Act of the 98th General Assembly. |
(b) For the purpose of this Section, "eligible creditable |
service" means
creditable service resulting from service in one |
or more of the following
positions:
|
(1) State policeman;
|
(2) fire fighter in the fire protection service of a |
department;
|
(3) air pilot;
|
(4) special agent;
|
(5) investigator for the Secretary of State;
|
(6) conservation police officer;
|
(7) investigator for the Department of Revenue or the |
Illinois Gaming Board;
|
(8) security employee of the Department of Human |
Services;
|
(9) Central Management Services security police |
officer;
|
(10) security employee of the Department of |
Corrections or the Department of Juvenile Justice;
|
(11) dangerous drugs investigator;
|
(12) investigator for the Department of State Police;
|
(13) investigator for the Office of the Attorney |
General;
|
(14) controlled substance inspector;
|
|
(15) investigator for the Office of the State's |
Attorneys Appellate
Prosecutor;
|
(16) Commerce Commission police officer;
|
(17) arson investigator;
|
(18) State highway maintenance worker.
|
A person employed in one of the positions specified in this |
subsection is
entitled to eligible creditable service for |
service credit earned under this
Article while undergoing the |
basic police training course approved by the
Illinois Law |
Enforcement Training
Standards Board, if
completion of that |
training is required of persons serving in that position.
For |
the purposes of this Code, service during the required basic |
police
training course shall be deemed performance of the |
duties of the specified
position, even though the person is not |
a sworn peace officer at the time of
the training.
|
(c) For the purposes of this Section:
|
(1) The term "state policeman" includes any title or |
position
in the Department of State Police that is held by |
an individual employed
under the State Police Act.
|
(2) The term "fire fighter in the fire protection |
service of a
department" includes all officers in such fire |
protection service
including fire chiefs and assistant |
fire chiefs.
|
(3) The term "air pilot" includes any employee whose |
official job
description on file in the Department of |
Central Management Services, or
in the department by which |
|
he is employed if that department is not covered
by the |
Personnel Code, states that his principal duty is the |
operation of
aircraft, and who possesses a pilot's license; |
however, the change in this
definition made by this |
amendatory Act of 1983 shall not operate to exclude
any |
noncovered employee who was an "air pilot" for the purposes |
of this
Section on January 1, 1984.
|
(4) The term "special agent" means any person who by |
reason of
employment by the Division of Narcotic Control, |
the Bureau of Investigation
or, after July 1, 1977, the |
Division of Criminal Investigation, the
Division of |
Internal Investigation, the Division of Operations, or any
|
other Division or organizational
entity in the Department |
of State Police is vested by law with duties to
maintain |
public order, investigate violations of the criminal law of |
this
State, enforce the laws of this State, make arrests |
and recover property.
The term "special agent" includes any |
title or position in the Department
of State Police that is |
held by an individual employed under the State
Police Act.
|
(5) The term "investigator for the Secretary of State" |
means any person
employed by the Office of the Secretary of |
State and vested with such
investigative duties as render |
him ineligible for coverage under the Social
Security Act |
by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and |
218(l)(1)
of that Act.
|
A person who became employed as an investigator for the |
|
Secretary of
State between January 1, 1967 and December 31, |
1975, and who has served as
such until attainment of age |
60, either continuously or with a single break
in service |
of not more than 3 years duration, which break terminated |
before
January 1, 1976, shall be entitled to have his |
retirement annuity
calculated in accordance with |
subsection (a), notwithstanding
that he has less than 20 |
years of credit for such service.
|
(6) The term "Conservation Police Officer" means any |
person employed
by the Division of Law Enforcement of the |
Department of Natural Resources and
vested with such law |
enforcement duties as render him ineligible for coverage
|
under the Social Security Act by reason of Sections |
218(d)(5)(A), 218(d)(8)(D),
and 218(l)(1) of that Act. The |
term "Conservation Police Officer" includes
the positions |
of Chief Conservation Police Administrator and Assistant
|
Conservation Police Administrator.
|
(7) The term "investigator for the Department of |
Revenue" means any
person employed by the Department of |
Revenue and vested with such
investigative duties as render |
him ineligible for coverage under the Social
Security Act |
by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and |
218(l)(1)
of that Act.
|
The term "investigator for the Illinois Gaming Board" |
means any
person employed as such by the Illinois Gaming |
Board and vested with such
peace officer duties as render |
|
the person ineligible for coverage under the Social
|
Security Act by reason of Sections 218(d)(5)(A), |
218(d)(8)(D), and 218(l)(1)
of that Act.
|
(8) The term "security employee of the Department of |
Human Services"
means any person employed by the Department |
of Human Services who (i) is
employed at the Chester Mental |
Health Center and has daily contact with the
residents |
thereof, (ii) is employed within a security unit at a |
facility
operated by the Department and has daily contact |
with the residents of the
security unit, (iii) is employed |
at a facility operated by the Department
that includes a |
security unit and is regularly scheduled to work at least
|
50% of his or her working hours within that security unit, |
or (iv) is a mental health police officer.
"Mental health |
police officer" means any person employed by the Department |
of
Human Services in a position pertaining to the |
Department's mental health and
developmental disabilities |
functions who is vested with such law enforcement
duties as |
render the person ineligible for coverage under the Social |
Security
Act by reason of Sections 218(d)(5)(A), |
218(d)(8)(D) and 218(l)(1) of that
Act. "Security unit" |
means that portion of a facility that is devoted to
the |
care, containment, and treatment of persons committed to |
the Department of
Human Services as sexually violent |
persons, persons unfit to stand trial, or
persons not |
guilty by reason of insanity. With respect to past |
|
employment,
references to the Department of Human Services |
include its predecessor, the
Department of Mental Health |
and Developmental Disabilities.
|
The changes made to this subdivision (c)(8) by Public |
Act 92-14 apply to persons who retire on or after January |
1,
2001, notwithstanding Section 1-103.1.
|
(9) "Central Management Services security police |
officer" means any
person employed by the Department of |
Central Management Services who is
vested with such law |
enforcement duties as render him ineligible for
coverage |
under the Social Security Act by reason of Sections |
218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
|
(10) For a member who first became an employee under |
this Article before July 1, 2005, the term "security |
employee of the Department of Corrections or the Department |
of Juvenile Justice"
means any employee of the Department |
of Corrections or the Department of Juvenile Justice or the |
former
Department of Personnel, and any member or employee |
of the Prisoner
Review Board, who has daily contact with |
inmates or youth by working within a
correctional facility |
or Juvenile facility operated by the Department of Juvenile |
Justice or who is a parole officer or an employee who has
|
direct contact with committed persons in the performance of |
his or her
job duties. For a member who first becomes an |
employee under this Article on or after July 1, 2005, the |
term means an employee of the Department of Corrections or |
|
the Department of Juvenile Justice who is any of the |
following: (i) officially headquartered at a correctional |
facility or Juvenile facility operated by the Department of |
Juvenile Justice, (ii) a parole officer, (iii) a member of |
the apprehension unit, (iv) a member of the intelligence |
unit, (v) a member of the sort team, or (vi) an |
investigator.
|
(11) The term "dangerous drugs investigator" means any |
person who is
employed as such by the Department of Human |
Services.
|
(12) The term "investigator for the Department of State |
Police" means
a person employed by the Department of State |
Police who is vested under
Section 4 of the Narcotic |
Control Division Abolition Act with such
law enforcement |
powers as render him ineligible for coverage under the
|
Social Security Act by reason of Sections 218(d)(5)(A), |
218(d)(8)(D) and
218(l)(1) of that Act.
|
(13) "Investigator for the Office of the Attorney |
General" means any
person who is employed as such by the |
Office of the Attorney General and
is vested with such |
investigative duties as render him ineligible for
coverage |
under the Social Security Act by reason of Sections |
218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. For |
the period before January 1,
1989, the term includes all |
persons who were employed as investigators by the
Office of |
the Attorney General, without regard to social security |
|
status.
|
(14) "Controlled substance inspector" means any person |
who is employed
as such by the Department of Professional |
Regulation and is vested with such
law enforcement duties |
as render him ineligible for coverage under the Social
|
Security Act by reason of Sections 218(d)(5)(A), |
218(d)(8)(D) and 218(l)(1) of
that Act. The term |
"controlled substance inspector" includes the Program
|
Executive of Enforcement and the Assistant Program |
Executive of Enforcement.
|
(15) The term "investigator for the Office of the |
State's Attorneys
Appellate Prosecutor" means a person |
employed in that capacity on a full
time basis under the |
authority of Section 7.06 of the State's Attorneys
|
Appellate Prosecutor's Act.
|
(16) "Commerce Commission police officer" means any |
person employed
by the Illinois Commerce Commission who is |
vested with such law
enforcement duties as render him |
ineligible for coverage under the Social
Security Act by |
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
|
218(l)(1) of that Act.
|
(17) "Arson investigator" means any person who is |
employed as such by
the Office of the State Fire Marshal |
and is vested with such law enforcement
duties as render |
the person ineligible for coverage under the Social |
Security
Act by reason of Sections 218(d)(5)(A), |
|
218(d)(8)(D), and 218(l)(1) of that
Act. A person who was |
employed as an arson
investigator on January 1, 1995 and is |
no longer in service but not yet
receiving a retirement |
annuity may convert his or her creditable service for
|
employment as an arson investigator into eligible |
creditable service by paying
to the System the difference |
between the employee contributions actually paid
for that |
service and the amounts that would have been contributed if |
the
applicant were contributing at the rate applicable to |
persons with the same
social security status earning |
eligible creditable service on the date of
application.
|
(18) The term "State highway maintenance worker" means |
a person who is
either of the following:
|
(i) A person employed on a full-time basis by the |
Illinois
Department of Transportation in the position |
of
highway maintainer,
highway maintenance lead |
worker,
highway maintenance lead/lead worker,
heavy |
construction equipment operator,
power shovel |
operator, or
bridge mechanic; and
whose principal |
responsibility is to perform, on the roadway, the |
actual
maintenance necessary to keep the highways that |
form a part of the State
highway system in serviceable |
condition for vehicular traffic.
|
(ii) A person employed on a full-time basis by the |
Illinois
State Toll Highway Authority in the position |
of
equipment operator/laborer H-4,
equipment |
|
operator/laborer H-6,
welder H-4,
welder H-6,
|
mechanical/electrical H-4,
mechanical/electrical H-6,
|
water/sewer H-4,
water/sewer H-6,
sign maker/hanger |
H-4,
sign maker/hanger H-6,
roadway lighting H-4,
|
roadway lighting H-6,
structural H-4,
structural H-6,
|
painter H-4, or
painter H-6; and
whose principal |
responsibility is to perform, on the roadway, the |
actual
maintenance necessary to keep the Authority's |
tollways in serviceable condition
for vehicular |
traffic.
|
(d) A security employee of the Department of Corrections or |
the Department of Juvenile Justice, and a security
employee of |
the Department of Human Services who is not a mental health |
police
officer, shall not be eligible for the alternative |
retirement annuity provided
by this Section unless he or she |
meets the following minimum age and service
requirements at the |
time of retirement:
|
(i) 25 years of eligible creditable service and age 55; |
or
|
(ii) beginning January 1, 1987, 25 years of eligible |
creditable service
and age 54, or 24 years of eligible |
creditable service and age 55; or
|
(iii) beginning January 1, 1988, 25 years of eligible |
creditable service
and age 53, or 23 years of eligible |
creditable service and age 55; or
|
(iv) beginning January 1, 1989, 25 years of eligible |
|
creditable service
and age 52, or 22 years of eligible |
creditable service and age 55; or
|
(v) beginning January 1, 1990, 25 years of eligible |
creditable service
and age 51, or 21 years of eligible |
creditable service and age 55; or
|
(vi) beginning January 1, 1991, 25 years of eligible |
creditable service
and age 50, or 20 years of eligible |
creditable service and age 55.
|
For members to whom subsection (a-5) of this Section |
applies, the references to age 50 and 55 in item (vi) of this |
subsection are increased as provided in subsection (a-5). |
Persons who have service credit under Article 16 of this |
Code for service
as a security employee of the Department of |
Corrections or the Department of Juvenile Justice, or the |
Department
of Human Services in a position requiring |
certification as a teacher may
count such service toward |
establishing their eligibility under the service
requirements |
of this Section; but such service may be used only for
|
establishing such eligibility, and not for the purpose of |
increasing or
calculating any benefit.
|
(e) If a member enters military service while working in a |
position in
which eligible creditable service may be earned, |
and returns to State
service in the same or another such |
position, and fulfills in all other
respects the conditions |
prescribed in this Article for credit for military
service, |
such military service shall be credited as eligible creditable
|
|
service for the purposes of the retirement annuity prescribed |
in this Section.
|
(f) For purposes of calculating retirement annuities under |
this
Section, periods of service rendered after December 31, |
1968 and before
October 1, 1975 as a covered employee in the |
position of special agent,
conservation police officer, mental |
health police officer, or investigator
for the Secretary of |
State, shall be deemed to have been service as a
noncovered |
employee, provided that the employee pays to the System prior |
to
retirement an amount equal to (1) the difference between the |
employee
contributions that would have been required for such |
service as a
noncovered employee, and the amount of employee |
contributions actually
paid, plus (2) if payment is made after |
July 31, 1987, regular interest
on the amount specified in item |
(1) from the date of service to the date
of payment.
|
For purposes of calculating retirement annuities under |
this Section,
periods of service rendered after December 31, |
1968 and before January 1,
1982 as a covered employee in the |
position of investigator for the
Department of Revenue shall be |
deemed to have been service as a noncovered
employee, provided |
that the employee pays to the System prior to retirement
an |
amount equal to (1) the difference between the employee |
contributions
that would have been required for such service as |
a noncovered employee,
and the amount of employee contributions |
actually paid, plus (2) if payment
is made after January 1, |
1990, regular interest on the amount specified in
item (1) from |
|
the date of service to the date of payment.
|
(g) A State policeman may elect, not later than January 1, |
1990, to
establish eligible creditable service for up to 10 |
years of his service as
a policeman under Article 3, by filing |
a written election with the Board,
accompanied by payment of an |
amount to be determined by the Board, equal to
(i) the |
difference between the amount of employee and employer
|
contributions transferred to the System under Section 3-110.5, |
and the
amounts that would have been contributed had such |
contributions been made
at the rates applicable to State |
policemen, plus (ii) interest thereon at
the effective rate for |
each year, compounded annually, from the date of
service to the |
date of payment.
|
Subject to the limitation in subsection (i), a State |
policeman may elect,
not later than July 1, 1993, to establish |
eligible creditable service for
up to 10 years of his service |
as a member of the County Police Department
under Article 9, by |
filing a written election with the Board, accompanied
by |
payment of an amount to be determined by the Board, equal to |
(i) the
difference between the amount of employee and employer |
contributions
transferred to the System under Section 9-121.10 |
and the amounts that would
have been contributed had those |
contributions been made at the rates
applicable to State |
policemen, plus (ii) interest thereon at the effective
rate for |
each year, compounded annually, from the date of service to the
|
date of payment.
|
|
(h) Subject to the limitation in subsection (i), a State |
policeman or
investigator for the Secretary of State may elect |
to establish eligible
creditable service for up to 12 years of |
his service as a policeman under
Article 5, by filing a written |
election with the Board on or before January
31, 1992, and |
paying to the System by January 31, 1994 an amount to be
|
determined by the Board, equal to (i) the difference between |
the amount of
employee and employer contributions transferred |
to the System under Section
5-236, and the amounts that would |
have been contributed had such
contributions been made at the |
rates applicable to State policemen, plus
(ii) interest thereon |
at the effective rate for each year, compounded
annually, from |
the date of service to the date of payment.
|
Subject to the limitation in subsection (i), a State |
policeman,
conservation police officer, or investigator for |
the Secretary of State may
elect to establish eligible |
creditable service for up to 10 years of
service as a sheriff's |
law enforcement employee under Article 7, by filing
a written |
election with the Board on or before January 31, 1993, and |
paying
to the System by January 31, 1994 an amount to be |
determined by the Board,
equal to (i) the difference between |
the amount of employee and
employer contributions transferred |
to the System under Section
7-139.7, and the amounts that would |
have been contributed had such
contributions been made at the |
rates applicable to State policemen, plus
(ii) interest thereon |
at the effective rate for each year, compounded
annually, from |
|
the date of service to the date of payment.
|
Subject to the limitation in subsection (i), a State |
policeman,
conservation police officer, or investigator for |
the Secretary of State may
elect to establish eligible |
creditable service for up to 5 years of
service as a police |
officer under Article 3, a policeman under Article 5, a |
sheriff's law enforcement employee under Article 7, a member of |
the county police department under Article 9, or a police |
officer under Article 15 by filing
a written election with the |
Board and paying
to the System an amount to be determined by |
the Board,
equal to (i) the difference between the amount of |
employee and
employer contributions transferred to the System |
under Section
3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 |
and the amounts that would have been contributed had such
|
contributions been made at the rates applicable to State |
policemen, plus
(ii) interest thereon at the effective rate for |
each year, compounded
annually, from the date of service to the |
date of payment. |
Subject to the limitation in subsection (i), an |
investigator for the Office of the Attorney General, or an |
investigator for the Department of Revenue, may elect to |
establish eligible creditable service for up to 5 years of |
service as a police officer under Article 3, a policeman under |
Article 5, a sheriff's law enforcement employee under Article |
7, or a member of the county police department under Article 9 |
by filing a written election with the Board within 6 months |
|
after August 25, 2009 (the effective date of Public Act 96-745) |
and paying to the System an amount to be determined by the |
Board, equal to (i) the difference between the amount of |
employee and employer contributions transferred to the System |
under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the |
amounts that would have been contributed had such contributions |
been made at the rates applicable to State policemen, plus (ii) |
interest thereon at the actuarially assumed rate for each year, |
compounded annually, from the date of service to the date of |
payment. |
Subject to the limitation in subsection (i), a State |
policeman, conservation police officer, investigator for the |
Office of the Attorney General, an investigator for the |
Department of Revenue, or investigator for the Secretary of |
State may elect to establish eligible creditable service for up |
to 5 years of service as a person employed by a participating |
municipality to perform police duties, or law enforcement |
officer employed on a full-time basis by a forest preserve |
district under Article 7, a county corrections officer, or a |
court services officer under Article 9, by filing a written |
election with the Board within 6 months after August 25, 2009 |
(the effective date of Public Act 96-745) and paying to the |
System an amount to be determined by the Board, equal to (i) |
the difference between the amount of employee and employer |
contributions transferred to the System under Sections 7-139.8 |
and 9-121.10 and the amounts that would have been contributed |
|
had such contributions been made at the rates applicable to |
State policemen, plus (ii) interest thereon at the actuarially |
assumed rate for each year, compounded annually, from the date |
of service to the date of payment. |
(i) The total amount of eligible creditable service |
established by any
person under subsections (g), (h), (j), (k), |
and (l) of this
Section shall not exceed 12 years.
|
(j) Subject to the limitation in subsection (i), an |
investigator for
the Office of the State's Attorneys Appellate |
Prosecutor or a controlled
substance inspector may elect to
|
establish eligible creditable service for up to 10 years of his |
service as
a policeman under Article 3 or a sheriff's law |
enforcement employee under
Article 7, by filing a written |
election with the Board, accompanied by
payment of an amount to |
be determined by the Board, equal to (1) the
difference between |
the amount of employee and employer contributions
transferred |
to the System under Section 3-110.6 or 7-139.8, and the amounts
|
that would have been contributed had such contributions been |
made at the
rates applicable to State policemen, plus (2) |
interest thereon at the
effective rate for each year, |
compounded annually, from the date of service
to the date of |
payment.
|
(k) Subject to the limitation in subsection (i) of this |
Section, an
alternative formula employee may elect to establish |
eligible creditable
service for periods spent as a full-time |
law enforcement officer or full-time
corrections officer |
|
employed by the federal government or by a state or local
|
government located outside of Illinois, for which credit is not |
held in any
other public employee pension fund or retirement |
system. To obtain this
credit, the applicant must file a |
written application with the Board by March
31, 1998, |
accompanied by evidence of eligibility acceptable to the Board |
and
payment of an amount to be determined by the Board, equal |
to (1) employee
contributions for the credit being established, |
based upon the applicant's
salary on the first day as an |
alternative formula employee after the employment
for which |
credit is being established and the rates then applicable to
|
alternative formula employees, plus (2) an amount determined by |
the Board
to be the employer's normal cost of the benefits |
accrued for the credit being
established, plus (3) regular |
interest on the amounts in items (1) and (2) from
the first day |
as an alternative formula employee after the employment for |
which
credit is being established to the date of payment.
|
(l) Subject to the limitation in subsection (i), a security |
employee of
the Department of Corrections may elect, not later |
than July 1, 1998, to
establish eligible creditable service for |
up to 10 years of his or her service
as a policeman under |
Article 3, by filing a written election with the Board,
|
accompanied by payment of an amount to be determined by the |
Board, equal to
(i) the difference between the amount of |
employee and employer contributions
transferred to the System |
under Section 3-110.5, and the amounts that would
have been |
|
contributed had such contributions been made at the rates |
applicable
to security employees of the Department of |
Corrections, plus (ii) interest
thereon at the effective rate |
for each year, compounded annually, from the date
of service to |
the date of payment.
|
(m) The amendatory changes to this Section made by this |
amendatory Act of the 94th General Assembly apply only to: (1) |
security employees of the Department of Juvenile Justice |
employed by the Department of Corrections before the effective |
date of this amendatory Act of the 94th General Assembly and |
transferred to the Department of Juvenile Justice by this |
amendatory Act of the 94th General Assembly; and (2) persons |
employed by the Department of Juvenile Justice on or after the |
effective date of this amendatory Act of the 94th General |
Assembly who are required by subsection (b) of Section 3-2.5-15 |
of the Unified Code of Corrections to have a bachelor's or |
advanced degree from an accredited college or university with a |
specialization in criminal justice, education, psychology, |
social work, or a closely related social science or, in the |
case of persons who provide vocational training, who are |
required to have adequate knowledge in the skill for which they |
are providing the vocational training.
|
(n) A person employed in a position under subsection (b) of |
this Section who has purchased service credit under subsection |
(j) of Section 14-104 or subsection (b) of Section 14-105 in |
any other capacity under this Article may convert up to 5 years |
|
of that service credit into service credit covered under this |
Section by paying to the Fund an amount equal to (1) the |
additional employee contribution required under Section |
14-133, plus (2) the additional employer contribution required |
under Section 14-131, plus (3) interest on items (1) and (2) at |
the actuarially assumed rate from the date of the service to |
the date of payment. |
(Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09; |
96-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff. |
7-2-10.)
|
(40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
|
Sec. 14-114. Automatic increase in retirement annuity.
|
(a) This subsection (a) is subject to subsections (a-1) and |
(a-2) of this Section. Any person receiving a retirement |
annuity under this Article who
retires having attained age 60, |
or who retires before age 60 having at
least 35 years of |
creditable service, or who retires on or after January
1, 2001 |
at an age which, when added to the number of years of his or her
|
creditable service, equals at least 85, shall, on January 1 |
next
following the first full year of retirement, have the |
amount of the then fixed
and payable monthly retirement annuity |
increased 3%. Any person receiving a
retirement annuity under |
this Article who retires before attainment of age 60
and with |
less than (i) 35 years of creditable service if retirement
is |
before January 1, 2001, or (ii) the number of years of |
|
creditable service
which, when added to the member's age, would |
equal 85, if retirement is on
or after January 1, 2001, shall |
have the amount of the fixed and payable
retirement annuity |
increased by 3% on the January 1 occurring on or next
following |
(1) attainment of age 60, or (2) the first anniversary of |
retirement,
whichever occurs later. However, for persons who |
receive the alternative
retirement annuity under Section |
14-110, references in this subsection (a) to
attainment of age |
60 shall be deemed to refer to attainment of age 55. For a
|
person receiving early retirement incentives under Section |
14-108.3 whose
retirement annuity began after January 1, 1992 |
pursuant to an extension granted
under subsection (e) of that |
Section, the first anniversary of retirement shall
be deemed to |
be January 1, 1993.
For a person who retires on or after June |
28, 2001 and on or before October 1, 2001,
and whose retirement |
annuity is calculated, in whole or in part, under Section
|
14-110 or subsection (g) or (h) of Section 14-108, the first |
anniversary of
retirement shall be deemed to be January 1, |
2002.
|
On each January 1 following the date of the initial |
increase under this
subsection, the employee's monthly |
retirement annuity shall be increased
by an additional 3%.
|
Beginning January 1, 1990, all automatic annual increases |
payable under
this Section shall be calculated as a percentage |
of the total annuity
payable at the time of the increase, |
including previous increases granted
under this Article.
|
|
(a-1) Notwithstanding subsection (a), but subject to the |
provisions of subsection (a-2), all automatic increases |
payable under subsection (a) on or after the effective date of |
this amendatory Act of the 98th General Assembly shall be |
calculated as 3% of the lesser of (1) the total annuity
payable |
at the time of the increase, including previous
increases |
granted, or (2) $800 ($1,000 for portions of the annuity based
|
on service as a noncovered employee) multiplied by
the number |
of years of creditable service upon which the
annuity is based. |
Beginning January 1, 2016, the $800 ($1,000 for portions of |
the annuity based
on service as a noncovered employee) referred |
in item (2) of this subsection (a-1) shall be increased on each |
January 1 by the annual unadjusted percentage increase (but not |
less than zero) in the consumer price index-u for the 12 months |
ending with the preceding September; these adjustments shall be |
cumulative and compounded.
For the purposes of this subsection |
(a-1), "consumer price index-u" means the index published by |
the Bureau of Labor Statistics of the United States Department |
of Labor that measures the average change in prices of goods |
and services purchased by all urban consumers, United States |
city average, all items, 1982-84 = 100. The new dollar amount |
resulting from each annual adjustment shall be determined by |
the Public Pension Division of the Department of Insurance and |
made available to the System by November 1 of each year. |
This subsection (a-1) is applicable without regard to |
whether the person is in service on or after the effective date |
|
of this amendatory Act of the 98th General Assembly. |
(a-2) Notwithstanding subsections (a) and (a-1), for an |
active or inactive Tier 1 member who has not begun to receive a |
retirement annuity under this Article before July 1, 2014: |
(1) the second automatic annual increase payable under |
subsection (a) shall be at the rate of 0% of the total |
annuity payable at the time of the increase if he or she is |
at least age 50 on the effective date of this amendatory |
Act; |
(2) the second, fourth, and sixth automatic annual |
increases payable under subsection (a) shall be at the rate |
of 0% of the total annuity payable at the time of the |
increase if he or she is at least age 47 but less than age |
50 on the effective date of this amendatory Act; |
(3) the second, fourth, sixth, and eighth automatic |
annual increases payable under subsection (a) shall be at |
the rate of 0% of the total annuity payable at the time of |
the increase if he or she is at least age 44 but less than |
age 47 on the effective date of this amendatory Act; and |
(4) the second, fourth, sixth, eighth, and tenth |
automatic annual increases payable under subsection (a) |
shall be at the rate of 0% of the total annuity payable at |
the time of the increase if he or she is less than age 44 on |
the effective date of this amendatory Act. |
For the purposes of Section 1-103.1, this subsection (a-2) |
is applicable without regard to whether the person is in |
|
service on or after the effective date of this amendatory Act |
of the 98th General Assembly. |
(b) The provisions of subsection (a) of this Section shall |
be
applicable to an employee only if the employee makes the |
additional
contributions required after December 31, 1969 for |
the purpose of the
automatic increases for not less than the |
equivalent of one full year.
If an employee becomes an |
annuitant before his additional contributions
equal one full |
year's contributions based on his salary at the date of
|
retirement, the employee may pay the necessary balance of the
|
contributions to the system, without interest, and be eligible |
for the
increasing annuity authorized by this Section.
|
(c) The provisions of subsection (a) of this Section shall |
not be
applicable to any annuitant who is on retirement on |
December 31, 1969, and
thereafter returns to State service, |
unless the member has established at
least one year of |
additional creditable service following reentry into service.
|
(d) In addition to other increases which may be provided by |
this Section,
on January 1, 1981 any annuitant who was |
receiving a retirement annuity
on or before January 1, 1971 |
shall have his retirement annuity then being
paid increased $1 |
per month for each year of creditable service. On January
1, |
1982, any annuitant who began receiving a retirement annuity on |
or
before January 1, 1977, shall have his retirement annuity |
then being paid
increased $1 per month for each year of |
creditable service.
|
|
On January 1, 1987, any annuitant who began receiving a |
retirement
annuity on or before January 1, 1977, shall have the |
monthly retirement annuity
increased by an amount equal to 8¢ |
per year of creditable service times the
number of years that |
have elapsed since the annuity began.
|
(e) Every person who receives the alternative retirement |
annuity under
Section 14-110 and who is eligible to receive the |
3% increase under subsection
(a) on January 1, 1986, shall also |
receive on that date a one-time increase
in retirement annuity |
equal to the difference between (1) his actual
retirement |
annuity on that date, including any increases received under
|
subsection (a), and (2) the amount of retirement annuity he |
would have
received on that date if the amendments to |
subsection (a) made by Public
Act 84-162 had been in effect |
since the date of his retirement.
|
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
|
92-651, eff. 7-11-02.)
|
(40 ILCS 5/14-115) (from Ch. 108 1/2, par. 14-115)
|
Sec. 14-115. Supplemental Annuity. |
(a) Each annuitant, who retired at age
55 or over and after |
the completion of at least 15 years of creditable
service, |
whose status as an employee terminated before January 1, 1970,
|
is entitled to a monthly supplemental annuity effective January |
1, 1970,
or on January 1 nearest the annuitant's 65th birthday, |
whichever is
later. Such supplemental annuity shall be 1-1/2% |
|
of the monthly
retirement annuity, multiplied by the number of |
full years which elapsed
from the date of the member's latest |
retirement to the effective date of
the supplemental annuity. |
This monthly supplemental annuity shall be
increased on each |
January 1 thereafter during the lifetime of the
annuitant by |
1-1/2% of the monthly retirement annuity disregarding any
|
supplemental annuity previously granted. Beginning January 1, |
1972, the
rate of increase in the supplemental annuity shall be |
2%. Beginning January
1, 1979, the rate of increase in the |
supplemental annuity shall be 3%.
|
The supplemental annuity under this subsection is payable |
only if the
annuitant pays to the System, in a single sum, an |
amount equal to 1% of his
monthly final average compensation |
multiplied by the number of full years
of creditable service.
|
(b) Any member who retired with less than 15 years of |
creditable service
whose status as an employee terminated |
before January 1, 1970, shall be
entitled to an increase of 3% |
of the original monthly retirement allowance,
effective |
January 1, 1982, or on January 1 nearest the annuitant's 65th
|
birthday, whichever is later. On each January 1 thereafter |
during the lifetime
of the member, he shall be entitled to an |
additional increase of 3% of the
original monthly retirement |
allowance. No qualifying contribution is required
for the |
supplemental annuity under this subsection.
|
(c) Beginning January 1, 1990, all automatic annual |
increases payable
under this Section shall be calculated as a |
|
percentage of the total monthly
amount of annuity payable at |
the time of the increase, including any
supplemental annuity or |
other increase previously granted under this Article.
|
(d) Notwithstanding any other provision of this Section, |
all increases payable under this Section on or after the |
effective date of this amendatory Act of the 98th General |
Assembly shall be calculated as 3% of the lesser of (1) the |
total annuity
payable at the time of the increase, including |
previous
increases granted, or (2) $800 ($1,000 for portions of |
the annuity based
on service as a noncovered employee) |
multiplied by
the number of years of creditable service upon |
which the
annuity is based. |
Beginning January 1, 2016, the $800 ($1,000 for portions of |
the annuity based
on service as a noncovered employee) referred |
in item (2) of this subsection (d) shall be increased on each |
January 1 by the annual unadjusted percentage increase (but not |
less than zero) in the consumer price index-u for the 12 months |
ending with the preceding September; these adjustments shall be |
cumulative and compounded.
For the purposes of this subsection |
(d), "consumer price index-u" means the index published by the |
Bureau of Labor Statistics of the United States Department of |
Labor that measures the average change in prices of goods and |
services purchased by all urban consumers, United States city |
average, all items, 1982-84 = 100. The new dollar amount |
resulting from each annual adjustment shall be determined by |
the Public Pension Division of the Department of Insurance and |
|
made available to the System by November 1 of each year. |
This subsection (d) is applicable without regard to whether |
the person is in service on or after the effective date of this |
amendatory Act of the 98th General Assembly. |
(Source: P.A. 86-273.)
|
(40 ILCS 5/14-131)
|
Sec. 14-131. Contributions by State.
|
(a) The State shall make contributions to the System by |
appropriations of
amounts which, together with other employer |
contributions from trust, federal,
and other funds, employee |
contributions, investment income, and other income,
will be |
sufficient to meet the cost of maintaining and administering |
the System
on a 100% 90% funded basis in accordance with |
actuarial recommendations by the end of State fiscal year 2044 .
|
For the purposes of this Section and Section 14-135.08, |
references to State
contributions refer only to employer |
contributions and do not include employee
contributions that |
are picked up or otherwise paid by the State or a
department on |
behalf of the employee.
|
(b) The Board shall determine the total amount of State |
contributions
required for each fiscal year on the basis of the |
actuarial tables and other
assumptions adopted by the Board, |
using the formula in subsection (e).
|
The Board shall also determine a State contribution rate |
for each fiscal
year, expressed as a percentage of payroll, |
|
based on the total required State
contribution for that fiscal |
year (less the amount received by the System from
|
appropriations under Section 8.12 of the State Finance Act and |
Section 1 of the
State Pension Funds Continuing Appropriation |
Act, if any, for the fiscal year
ending on the June 30 |
immediately preceding the applicable November 15
certification |
deadline), the estimated payroll (including all forms of
|
compensation) for personal services rendered by eligible |
employees, and the
recommendations of the actuary.
|
For the purposes of this Section and Section 14.1 of the |
State Finance Act,
the term "eligible employees" includes |
employees who participate in the System,
persons who may elect |
to participate in the System but have not so elected,
persons |
who are serving a qualifying period that is required for |
participation,
and annuitants employed by a department as |
described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
(c) Contributions shall be made by the several departments |
for each pay
period by warrants drawn by the State Comptroller |
against their respective
funds or appropriations based upon |
vouchers stating the amount to be so
contributed. These amounts |
shall be based on the full rate certified by the
Board under |
Section 14-135.08 for that fiscal year.
From the effective date |
of this amendatory Act of the 93rd General
Assembly through the |
payment of the final payroll from fiscal year 2004
|
appropriations, the several departments shall not make |
contributions
for the remainder of fiscal year 2004 but shall |
|
instead make payments
as required under subsection (a-1) of |
Section 14.1 of the State Finance Act.
The several departments |
shall resume those contributions at the commencement of
fiscal |
year 2005.
|
(c-1) Notwithstanding subsection (c) of this Section, for |
fiscal years 2010, 2012, 2013, and 2014 only, contributions by |
the several departments are not required to be made for General |
Revenue Funds payrolls processed by the Comptroller. Payrolls |
paid by the several departments from all other State funds must |
continue to be processed pursuant to subsection (c) of this |
Section. |
(c-2) For State fiscal years 2010, 2012, 2013, and 2014 |
only, on or as soon as possible after the 15th day of each |
month, the Board shall submit vouchers for payment of State |
contributions to the System, in a total monthly amount of |
one-twelfth of the fiscal year General Revenue Fund |
contribution as certified by the System pursuant to Section |
14-135.08 of the Illinois Pension Code. |
(d) If an employee is paid from trust funds or federal |
funds, the
department or other employer shall pay employer |
contributions from those funds
to the System at the certified |
rate, unless the terms of the trust or the
federal-State |
agreement preclude the use of the funds for that purpose, in
|
which case the required employer contributions shall be paid by |
the State.
From the effective date of this amendatory
Act of |
the 93rd General Assembly through the payment of the final
|
|
payroll from fiscal year 2004 appropriations, the department or |
other
employer shall not pay contributions for the remainder of |
fiscal year
2004 but shall instead make payments as required |
under subsection (a-1) of
Section 14.1 of the State Finance |
Act. The department or other employer shall
resume payment of
|
contributions at the commencement of fiscal year 2005.
|
(e) For State fiscal years 2015 through 2044, the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
equal to the sum of (1) the State's portion of the projected |
normal cost for that fiscal year, plus (2) an amount sufficient |
to bring the total assets of the
System up to 100% of the total |
actuarial liabilities of the System by the end of
State fiscal |
year 2044. In making these determinations, the required State
|
contribution shall be calculated each year as a level |
percentage of payroll
over the years remaining to and including |
fiscal year 2044 and shall be
determined under the projected |
unit cost method for fiscal year 2015 and under the entry age |
normal actuarial cost method for fiscal years 2016 through |
2044. |
For State fiscal years 2012 through 2014 2045 , the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
sufficient to bring the total assets of the
System up to 90% of |
the total actuarial liabilities of the System by the end
of |
State fiscal year 2045. In making these determinations, the |
|
required State
contribution shall be calculated each year as a |
level percentage of payroll
over the years remaining to and |
including fiscal year 2045 and shall be
determined under the |
projected unit credit actuarial cost method.
|
For State fiscal years 1996 through 2005, the State |
contribution to
the System, as a percentage of the applicable |
employee payroll, shall be
increased in equal annual increments |
so that by State fiscal year 2011, the
State is contributing at |
the rate required under this Section; except that
(i) for State |
fiscal year 1998, for all purposes of this Code and any other
|
law of this State, the certified percentage of the applicable |
employee payroll
shall be 5.052% for employees earning eligible |
creditable service under Section
14-110 and 6.500% for all |
other employees, notwithstanding any contrary
certification |
made under Section 14-135.08 before the effective date of this
|
amendatory Act of 1997, and (ii)
in the following specified |
State fiscal years, the State contribution to
the System shall |
not be less than the following indicated percentages of the
|
applicable employee payroll, even if the indicated percentage |
will produce a
State contribution in excess of the amount |
otherwise required under this
subsection and subsection (a):
|
9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution to the System for State |
fiscal year 2006 is $203,783,900.
|
|
Notwithstanding any other provision of this Article, the |
total required State
contribution to the System for State |
fiscal year 2007 is $344,164,400.
|
For each of State fiscal years 2008 through 2009, the State |
contribution to
the System, as a percentage of the applicable |
employee payroll, shall be
increased in equal annual increments |
from the required State contribution for State fiscal year |
2007, so that by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
Notwithstanding any other provision of this Article, the |
total required State General Revenue Fund contribution for |
State fiscal year 2010 is $723,703,100 and shall be made from |
the proceeds of bonds sold in fiscal year 2010 pursuant to |
Section 7.2 of the General Obligation Bond Act, less (i) the |
pro rata share of bond sale expenses determined by the System's |
share of total bond proceeds, (ii) any amounts received from |
the General Revenue Fund in fiscal year 2010, and (iii) any |
reduction in bond proceeds due to the issuance of discounted |
bonds, if applicable. |
Notwithstanding any other provision of this Article, the
|
total required State General Revenue Fund contribution for
|
State fiscal year 2011 is the amount recertified by the System |
on or before April 1, 2011 pursuant to Section 14-135.08 and |
shall be made from
the proceeds of bonds sold in fiscal year |
2011 pursuant to
Section 7.2 of the General Obligation Bond |
Act, less (i) the
pro rata share of bond sale expenses |
|
determined by the System's
share of total bond proceeds, (ii) |
any amounts received from
the General Revenue Fund in fiscal |
year 2011, and (iii) any
reduction in bond proceeds due to the |
issuance of discounted
bonds, if applicable. |
Beginning in State fiscal year 2045, the minimum State |
contribution for each fiscal year shall be the amount needed to |
maintain the total assets of the System at 100% of the total |
actuarial liabilities of the System. |
Beginning in State fiscal year 2046, the minimum State |
contribution for
each fiscal year shall be the amount needed to |
maintain the total assets of
the System at 90% of the total |
actuarial liabilities of the System.
|
Amounts received by the System pursuant to Section 25 of |
the Budget Stabilization Act or Section 8.12 of the State |
Finance Act in any fiscal year do not reduce and do not |
constitute payment of any portion of the minimum State |
contribution required under this Article in that fiscal year. |
Such amounts shall not reduce, and shall not be included in the |
calculation of, the required State contributions under this |
Article in any future year until the System has reached a |
funding ratio of at least 100% 90% . A reference in this Article |
to the "required State contribution" or any substantially |
similar term does not include or apply to any amounts payable |
to the System under Section 25 of the Budget Stabilization Act.
|
Notwithstanding any other provision of this Section, the |
required State
contribution for State fiscal year 2005 and for |
|
fiscal year 2008 and each fiscal year thereafter through State |
fiscal year 2014 , as
calculated under this Section and
|
certified under Section 14-135.08, shall not exceed an amount |
equal to (i) the
amount of the required State contribution that |
would have been calculated under
this Section for that fiscal |
year if the System had not received any payments
under |
subsection (d) of Section 7.2 of the General Obligation Bond |
Act, minus
(ii) the portion of the State's total debt service |
payments for that fiscal
year on the bonds issued in fiscal |
year 2003 for the purposes of that Section 7.2, as determined
|
and certified by the Comptroller, that is the same as the |
System's portion of
the total moneys distributed under |
subsection (d) of Section 7.2 of the General
Obligation Bond |
Act. In determining this maximum for State fiscal years 2008 |
through 2010, however, the amount referred to in item (i) shall |
be increased, as a percentage of the applicable employee |
payroll, in equal increments calculated from the sum of the |
required State contribution for State fiscal year 2007 plus the |
applicable portion of the State's total debt service payments |
for fiscal year 2007 on the bonds issued in fiscal year 2003 |
for the purposes of Section 7.2 of the General
Obligation Bond |
Act, so that, by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
(f) After the submission of all payments for eligible |
employees
from personal services line items in fiscal year 2004 |
have been made,
the Comptroller shall provide to the System a |
|
certification of the sum
of all fiscal year 2004 expenditures |
for personal services that would
have been covered by payments |
to the System under this Section if the
provisions of this |
amendatory Act of the 93rd General Assembly had not been
|
enacted. Upon
receipt of the certification, the System shall |
determine the amount
due to the System based on the full rate |
certified by the Board under
Section 14-135.08 for fiscal year |
2004 in order to meet the State's
obligation under this |
Section. The System shall compare this amount
due to the amount |
received by the System in fiscal year 2004 through
payments |
under this Section and under Section 6z-61 of the State Finance |
Act.
If the amount
due is more than the amount received, the |
difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
purposes of this Section, and the
Fiscal Year 2004 Shortfall |
shall be satisfied under Section 1.2 of the State
Pension Funds |
Continuing Appropriation Act. If the amount due is less than |
the
amount received, the
difference shall be termed the "Fiscal |
Year 2004 Overpayment" for purposes of
this Section, and the |
Fiscal Year 2004 Overpayment shall be repaid by
the System to |
the Pension Contribution Fund as soon as practicable
after the |
certification.
|
(g) For purposes of determining the required State |
contribution to the System, the value of the System's assets |
shall be equal to the actuarial value of the System's assets, |
which shall be calculated as follows: |
As of June 30, 2008, the actuarial value of the System's |
|
assets shall be equal to the market value of the assets as of |
that date. In determining the actuarial value of the System's |
assets for fiscal years after June 30, 2008, any actuarial |
gains or losses from investment return incurred in a fiscal |
year shall be recognized in equal annual amounts over the |
5-year period following that fiscal year. |
(h) For purposes of determining the required State |
contribution to the System for a particular year, the actuarial |
value of assets shall be assumed to earn a rate of return equal |
to the System's actuarially assumed rate of return. |
(i) After the submission of all payments for eligible |
employees from personal services line items paid from the |
General Revenue Fund in fiscal year 2010 have been made, the |
Comptroller shall provide to the System a certification of the |
sum of all fiscal year 2010 expenditures for personal services |
that would have been covered by payments to the System under |
this Section if the provisions of this amendatory Act of the |
96th General Assembly had not been enacted. Upon receipt of the |
certification, the System shall determine the amount due to the |
System based on the full rate certified by the Board under |
Section 14-135.08 for fiscal year 2010 in order to meet the |
State's obligation under this Section. The System shall compare |
this amount due to the amount received by the System in fiscal |
year 2010 through payments under this Section. If the amount |
due is more than the amount received, the difference shall be |
termed the "Fiscal Year 2010 Shortfall" for purposes of this |
|
Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
under Section 1.2 of the State Pension Funds Continuing |
Appropriation Act. If the amount due is less than the amount |
received, the difference shall be termed the "Fiscal Year 2010 |
Overpayment" for purposes of this Section, and the Fiscal Year |
2010 Overpayment shall be repaid by the System to the General |
Revenue Fund as soon as practicable after the certification. |
(j) After the submission of all payments for eligible |
employees from personal services line items paid from the |
General Revenue Fund in fiscal year 2011 have been made, the |
Comptroller shall provide to the System a certification of the |
sum of all fiscal year 2011 expenditures for personal services |
that would have been covered by payments to the System under |
this Section if the provisions of this amendatory Act of the |
96th General Assembly had not been enacted. Upon receipt of the |
certification, the System shall determine the amount due to the |
System based on the full rate certified by the Board under |
Section 14-135.08 for fiscal year 2011 in order to meet the |
State's obligation under this Section. The System shall compare |
this amount due to the amount received by the System in fiscal |
year 2011 through payments under this Section. If the amount |
due is more than the amount received, the difference shall be |
termed the "Fiscal Year 2011 Shortfall" for purposes of this |
Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
under Section 1.2 of the State Pension Funds Continuing |
Appropriation Act. If the amount due is less than the amount |
|
received, the difference shall be termed the "Fiscal Year 2011 |
Overpayment" for purposes of this Section, and the Fiscal Year |
2011 Overpayment shall be repaid by the System to the General |
Revenue Fund as soon as practicable after the certification. |
(k) For fiscal years 2012 through 2014 only, after the |
submission of all payments for eligible employees from personal |
services line items paid from the General Revenue Fund in the |
fiscal year have been made, the Comptroller shall provide to |
the System a certification of the sum of all expenditures in |
the fiscal year for personal services. Upon receipt of the |
certification, the System shall determine the amount due to the |
System based on the full rate certified by the Board under |
Section 14-135.08 for the fiscal year in order to meet the |
State's obligation under this Section. The System shall compare |
this amount due to the amount received by the System for the |
fiscal year. If the amount due is more than the amount |
received, the difference shall be termed the "Prior Fiscal Year |
Shortfall" for purposes of this Section, and the Prior Fiscal |
Year Shortfall shall be satisfied under Section 1.2 of the |
State Pension Funds Continuing Appropriation Act. If the amount |
due is less than the amount received, the difference shall be |
termed the "Prior Fiscal Year Overpayment" for purposes of this |
Section, and the Prior Fiscal Year Overpayment shall be repaid |
by the System to the General Revenue Fund as soon as |
practicable after the certification. |
(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, |
|
eff. 6-19-13.)
|
(40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
|
Sec. 14-132. Obligations of State ; funding guarantee . |
(a) The payment of the required department
contributions, |
all allowances,
annuities, benefits granted under this |
Article, and all expenses of
administration of the system are |
obligations of the State of Illinois to
the extent specified in |
this Article.
|
(b) All income of the system
shall be credited to a |
separate account for this system in the State
treasury and |
shall be used to pay allowances, annuities, benefits and
|
administration expense.
|
(c) Beginning July 1, 2014, the State shall be obligated to |
contribute to the System in each State fiscal year an amount |
not less than the sum of (i) the State's normal cost for the |
year and (ii) the portion of the unfunded accrued liability |
assigned to that year by law. Notwithstanding any other |
provision of law, if the State fails to pay an amount required |
under this subsection, it shall be the obligation of the Board |
to seek payment of the required amount in compliance with the |
provisions of this Section and, if the amount remains unpaid, |
to bring a mandamus action in the Supreme Court of Illinois to |
compel the State to make the required payment. |
If the System submits a voucher for contributions required |
under Section 14-131 and the State fails to pay that voucher |
|
within 90 days of its receipt, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
files the request with the Comptroller and Secretary of State, |
if the amount remains unpaid the Board shall commence a |
mandamus action in the Supreme Court of Illinois to compel the |
Comptroller to satisfy the voucher. |
This subsection (c) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
Illinois to compel the Comptroller to pay a voucher for the |
contributions required under Section 14-131. |
(d) Beginning in State fiscal year 2016, the State shall be |
obligated to make the transfers set forth in subsections (c-5) |
and (c-10) of Section 20 of the Budget Stabilization Act and to |
pay to the System its proportionate share of the transferred |
amounts in accordance with Section 25 of the Budget |
Stabilization Act. Notwithstanding any other provision of law, |
if the State fails to transfer an amount required under this |
subsection or to pay to the System its proportionate share of |
the transferred amount in accordance with Section 25 of the |
Budget Stabilization Act, it shall be the obligation of the |
Board to seek transfer or payment of the required amount in |
compliance with the provisions of this Section and, if the |
|
required amount remains untransferred or the required payment |
remains unpaid, to bring a mandamus action in the Supreme Court |
of Illinois to compel the State to make the required transfer |
or payment or both, as the case may be. |
If the State fails to make a transfer required under |
subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act or a payment to the System required under |
Section 25 of that Act, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
files the request with the Comptroller and Secretary of State, |
if the required amount remains untransferred or the required |
payment remains unpaid, the Board shall commence a mandamus |
action in the Supreme Court of Illinois to compel the |
Comptroller to make the required transfer or payment or both, |
as the case may be. |
This subsection (d) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
Illinois to compel the Comptroller to make a transfer required |
under subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act and to pay to the System its proportionate |
share of the transferred amount in accordance with Section 25 |
of the Budget Stabilization Act. |
|
The obligations created by this subsection (d) expire when |
all of the requirements of subsections (c-5) and (c-10) of |
Section 20 of the Budget Stabilization Act and Section 25 of |
the Budget Stabilization Act have been met. |
(e) Any payments and transfers required to be made by the |
State pursuant to subsection (c) or (d) are expressly |
subordinate to the payment of the principal, interest, and |
premium, if any, on any bonded debt obligation of the State or |
any other State-created entity, either currently outstanding |
or to be issued, for which the source of repayment or security |
thereon is derived directly or indirectly from tax revenues |
collected by the State or any other State-created entity. |
Payments on such bonded obligations include any statutory fund |
transfers or other prefunding mechanisms or formulas set forth, |
now or hereafter, in State law or bond indentures, into debt |
service funds or accounts of the State related to such bond |
obligations, consistent with the payment schedules associated |
with such obligations. |
(Source: P.A. 80-841.)
|
(40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
Sec. 14-133. Contributions on behalf of members.
|
(a) Except as provided in subsection (a-5), each Each |
participating employee shall make contributions to the System,
|
based on the employee's compensation, as follows:
|
(1) Covered employees, except as indicated below, 3.5% |
|
for
retirement annuity, and 0.5% for a widow or survivors
|
annuity;
|
(2) Noncovered employees, except as indicated below, |
7% for retirement
annuity and 1% for a widow or survivors |
annuity;
|
(3) Noncovered employees serving in a position in which |
"eligible
creditable service" as defined in Section 14-110 |
may be earned, 1% for a widow
or survivors annuity
plus the |
following amount for retirement annuity: 8.5% through |
December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
in 2004 and thereafter;
|
(4) Covered employees serving in a position in which |
"eligible creditable
service" as defined in Section 14-110 |
may be earned, 0.5% for a widow or survivors annuity
plus |
the following amount for retirement annuity: 5% through |
December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
and thereafter;
|
(5) Each security employee of the Department of |
Corrections
or of the Department of Human Services who is a |
covered employee, 0.5% for a widow or survivors annuity
|
plus the following amount for retirement annuity: 5% |
through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
in 2004 and thereafter;
|
(6) Each security employee of the Department of |
Corrections
or of the Department of Human Services who is |
not a covered employee, 1% for a widow or survivors annuity
|
|
plus the following amount for retirement annuity: 8.5% |
through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
11.5% in 2004 and thereafter.
|
(a-5) Beginning July 1, 2014, in lieu of the contributions |
otherwise required under subsection (a), each Tier 1 member who |
is a participating employee shall make contributions to the |
System,
based on his or her compensation, as follows: |
(1) Covered employees, except as indicated below, 2.5% |
for
retirement annuity, and 0.5% for a widow or survivors
|
annuity; |
(2) Noncovered employees, except as indicated below, |
6% for retirement
annuity and 1% for a widow or survivors |
annuity; |
(3) Noncovered employees serving in a position in which |
"eligible
creditable service" as defined in Section 14-110 |
may be earned, 10.5% for retirement annuity and 1% for a |
widow
or survivors annuity; |
(4) Covered employees serving in a position in which |
"eligible creditable
service" as defined in Section 14-110 |
may be earned, 7% for retirement annuity and 0.5% for a |
widow or survivors annuity; |
(5) Each security employee of the Department of |
Corrections
or of the Department of Human Services who is a |
covered employee, 7% for retirement annuity and 0.5% for a |
widow or survivors annuity; |
(6) Each security employee of the Department of |
|
Corrections
or of the Department of Human Services who is |
not a covered employee, 10.5% for retirement annuity and 1% |
for a widow or survivors annuity. |
(b) Contributions shall be in the form of a deduction from
|
compensation and shall be made notwithstanding that the |
compensation
paid in cash to the employee shall be reduced |
thereby below the minimum
prescribed by law or regulation. Each |
member is deemed to consent and
agree to the deductions from |
compensation provided for in this Article,
and shall receipt in |
full for salary or compensation.
|
(Source: P.A. 92-14, eff. 6-28-01.)
|
(40 ILCS 5/14-133.5 new) |
Sec. 14-133.5. Use of contributions for health care |
subsidies. The System shall not use any contribution received |
by the System under this Article to provide a subsidy for the |
cost of participation in a retiree health care program.
|
(40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
|
Sec. 14-135.08. To certify required State contributions. |
(a)
To certify to the Governor and to each department, on |
or before
November 15 of each year until November 15, 2011, the |
required rate for State contributions to the
System for the |
next State fiscal year, as determined under subsection (b) of
|
Section 14-131. The certification to the Governor under this |
subsection (a) shall include a copy of the
actuarial |
|
recommendations upon which the rate is based and shall |
specifically identify the System's projected State normal cost |
for that fiscal year.
|
(a-5) On or before November 1 of each year, beginning |
November 1, 2012, the Board shall submit to the State Actuary, |
the Governor, and the General Assembly a proposed certification |
of the amount of the required State contribution to the System |
for the next fiscal year, along with all of the actuarial |
assumptions, calculations, and data upon which that proposed |
certification is based. On or before January 1 of each year |
beginning January 1, 2013, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
assumptions that the Board must consider before finalizing its |
certification of the required State contributions. On or before |
January 15, 2013 and each January 15 thereafter, the Board |
shall certify to the Governor and the General Assembly the |
amount of the required State contribution for the next fiscal |
year. The Board's certification must note any deviations from |
the State Actuary's recommended changes, the reason or reasons |
for not following the State Actuary's recommended changes, and |
the fiscal impact of not following the State Actuary's |
recommended changes on the required State contribution. |
(a-10) For purposes of Section (c-5) of Section 20 of the |
Budget Stabilization Act, on or before November 1 of each year |
beginning November 1, 2014, the Board shall determine the |
|
amount of the State contribution to the System that would have |
been required for the next fiscal year if this amendatory Act |
of the 98th General Assembly had not taken effect, using the |
best and most recent available data but based on the law in |
effect on May 31, 2014. The Board shall submit to the State |
Actuary, the Governor, and the General Assembly a proposed |
certification, along with the relevant law, actuarial |
assumptions, calculations, and data upon which that |
certification is based. On or before January 1, 2015 and every |
January 1 thereafter, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
assumptions that the Board must consider before finalizing its |
certification. On or before January 15, 2015 and every January |
1 thereafter, the Board shall certify to the Governor and the |
General Assembly the amount of the State contribution to the |
System that would have been required for the next fiscal year |
if this amendatory Act of the 98th General Assembly had not |
taken effect, using the best and most recent available data but |
based on the law in effect on May 31, 2014. The Board's |
certification must note any deviations from the State Actuary's |
recommended changes, the reason or reasons for not following |
the State Actuary's recommended changes, and the impact of not |
following the State Actuary's recommended changes. |
(b) The certifications under subsections (a) and (a-5) |
shall include an additional amount necessary to pay all |
|
principal of and interest on those general obligation bonds due |
the next fiscal year authorized by Section 7.2(a) of the |
General Obligation Bond Act and issued to provide the proceeds |
deposited by the State with the System in July 2003, |
representing deposits other than amounts reserved under |
Section 7.2(c) of the General Obligation Bond Act. For State |
fiscal year 2005, the Board shall make a supplemental |
certification of the additional amount necessary to pay all |
principal of and interest on those general obligation bonds due |
in State fiscal years 2004 and 2005 authorized by Section |
7.2(a) of the General Obligation Bond Act and issued to provide |
the proceeds deposited by the State with the System in July |
2003, representing deposits other than amounts reserved under |
Section 7.2(c) of the General Obligation Bond Act, as soon as |
practical after the effective date of this amendatory Act of |
the 93rd General Assembly.
|
On or before May 1, 2004, the Board shall recalculate and |
recertify
to the Governor and to each department the amount of |
the required State
contribution to the System and the required |
rates for State contributions
to the System for State fiscal |
year 2005, taking into account the amounts
appropriated to and |
received by the System under subsection (d) of Section
7.2 of |
the General Obligation Bond Act.
|
On or before July 1, 2005, the Board shall recalculate and |
recertify
to the Governor and to each department the amount of |
the required State
contribution to the System and the required |
|
rates for State contributions
to the System for State fiscal |
year 2006, taking into account the changes in required State |
contributions made by this amendatory Act of the 94th General |
Assembly.
|
On or before April 1, 2011, the Board shall recalculate and |
recertify to the Governor and to each department the amount of |
the required State contribution to the System for State fiscal |
year 2011, applying the changes made by Public Act 96-889 to |
the System's assets and liabilities as of June 30, 2009 as |
though Public Act 96-889 was approved on that date. |
(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
97-694, eff. 6-18-12.)
|
(40 ILCS 5/14-152.1)
|
Sec. 14-152.1. Application and expiration of new benefit |
increases. |
(a) As used in this Section, "new benefit increase" means |
an increase in the amount of any benefit provided under this |
Article, or an expansion of the conditions of eligibility for |
any benefit under this Article, that results from an amendment |
to this Code that takes effect after June 1, 2005 (the |
effective date of Public Act 94-4). "New benefit increase", |
however, does not include any benefit increase resulting from |
the changes made to this Article by Public Act 96-37 or by this |
amendatory Act of the 98th 96th General Assembly.
|
(b) Notwithstanding any other provision of this Code or any |
|
subsequent amendment to this Code, every new benefit increase |
is subject to this Section and shall be deemed to be granted |
only in conformance with and contingent upon compliance with |
the provisions of this Section.
|
(c) The Public Act enacting a new benefit increase must |
identify and provide for payment to the System of additional |
funding at least sufficient to fund the resulting annual |
increase in cost to the System as it accrues. |
Every new benefit increase is contingent upon the General |
Assembly providing the additional funding required under this |
subsection. The Commission on Government Forecasting and |
Accountability shall analyze whether adequate additional |
funding has been provided for the new benefit increase and |
shall report its analysis to the Public Pension Division of the |
Department of Insurance Financial and Professional Regulation . |
A new benefit increase created by a Public Act that does not |
include the additional funding required under this subsection |
is null and void. If the Public Pension Division determines |
that the additional funding provided for a new benefit increase |
under this subsection is or has become inadequate, it may so |
certify to the Governor and the State Comptroller and, in the |
absence of corrective action by the General Assembly, the new |
benefit increase shall expire at the end of the fiscal year in |
which the certification is made.
|
(d) Every new benefit increase shall expire 5 years after |
its effective date or on such earlier date as may be specified |
|
in the language enacting the new benefit increase or provided |
under subsection (c). This does not prevent the General |
Assembly from extending or re-creating a new benefit increase |
by law. |
(e) Except as otherwise provided in the language creating |
the new benefit increase, a new benefit increase that expires |
under this Section continues to apply to persons who applied |
and qualified for the affected benefit while the new benefit |
increase was in effect and to the affected beneficiaries and |
alternate payees of such persons, but does not apply to any |
other person, including without limitation a person who |
continues in service after the expiration date and did not |
apply and qualify for the affected benefit while the new |
benefit increase was in effect.
|
(Source: P.A. 96-37, eff. 7-13-09.) |
(40 ILCS 5/14-155 new) |
Sec. 14-155. Defined contribution plan. |
(a) By July 1, 2015, the System shall prepare and implement |
a voluntary defined contribution plan for up to 5% of eligible |
active Tier 1 members. The System shall determine the 5% cap by |
the number of active Tier 1 members on the effective date of |
this Section. The defined contribution plan developed under |
this Section shall be a plan that aggregates employer and |
employee contributions in individual participant accounts |
which, after meeting any other requirements, are used for |
|
payouts after retirement in accordance with this Section and |
any other applicable laws. |
As used in this Section, "defined benefit plan" means the |
retirement plan available under this Article to Tier 1 members |
who have not made the election authorized under this Section. |
(1) Under the defined contribution plan, an active Tier |
1 member of this System could elect to cease accruing |
benefits in the defined benefit plan under this Article and |
begin accruing benefits for future service in the defined |
contribution plan. Service credit under the defined |
contribution plan may be used for determining retirement |
eligibility under the defined benefit plan. |
(2) Participants in the defined contribution plan |
shall pay employee contributions at the same rate as Tier 1 |
members in this System who do not participate in the |
defined contribution plan. |
(3) State contributions shall be paid into the accounts |
of all participants in the defined contribution plan at a |
uniform rate, expressed as a percentage of compensation and |
determined for each year. This rate shall be no higher than |
the employer's normal cost for Tier 1 members in the |
defined benefit plan for that year, as determined by the |
System and expressed as a percentage of compensation, and |
shall be no lower than 3% of compensation. The State shall |
adjust this rate annually. |
(4) The defined contribution plan shall require 5 years |
|
of participation in the defined contribution plan before |
vesting in State contributions. If the participant fails to |
vest in them, the State contributions, and the earnings |
thereon, shall be forfeited. |
(5) The defined contribution plan may provide for |
participants in the plan to be eligible for the defined |
disability benefits available to other participants under |
this Article. If it does, the System shall reduce the |
employee contributions credited to the member's defined |
contribution plan account by an amount determined by the |
System to cover the cost of offering such benefits. |
(6) The defined contribution plan shall provide a |
variety of options for investments. These options shall |
include investments handled by the Illinois State Board of |
Investment as well as private sector investment options. |
(7) The defined contribution plan shall provide a |
variety of options for payouts to retirees and their |
survivors. |
(8) To the extent authorized under federal law and as |
authorized by the System, the plan shall allow former |
participants in the plan to transfer or roll over employee |
and vested State contributions, and the earnings thereon, |
into other qualified retirement plans. |
(9) The System shall reduce the employee contributions |
credited to the member's defined contribution plan account |
by an amount determined by the System to cover the cost of |
|
offering these benefits and any applicable administrative |
fees. |
(b) Only persons who are active Tier 1 members of the |
System on the effective date of this Section are eligible to |
participate in the defined contribution plan. Participation in |
the defined contribution plan shall be limited to the first 5% |
of eligible persons who elect to participate. The election to |
participate in the defined contribution plan is voluntary and |
irrevocable. |
(c) An eligible Tier 1 employee may irrevocably elect to |
participate in the defined contribution plan by filing with the |
System a written application to participate that is received by |
the System prior to its determination that 5% of eligible |
persons have elected to participate in the defined contribution |
plan. |
When the System first determines that 5% of eligible |
persons have elected to participate in the defined contribution |
plan, the System shall provide notice to previously eligible |
employees that the plan is no longer available and shall cease |
accepting applications to participate. |
(d) The System shall make a good faith effort to contact |
each active Tier 1 member who is eligible to participate in the |
defined contribution plan. The System shall mail information |
describing the option to join the defined contribution plan to |
each of these employees to his or her last known address on |
file with the System. If the employee is not responsive to |
|
other means of contact, it is sufficient for the System to |
publish the details of the option on its website. |
Upon request for further information describing the |
option, the System shall provide employees with information |
from the System before exercising the option to join the plan, |
including information on the impact to their vested benefits or |
non-vested service. The individual consultation shall include |
projections of the member's defined benefits at retirement or |
earlier termination of service and the value of the member's |
account at retirement or earlier termination of service. The |
System shall not provide advice or counseling with respect to |
whether the employee should exercise the option. The System |
shall inform Tier 1 employees who are eligible to participate |
in the defined contribution plan that they may also wish to |
obtain information and counsel relating to their option from |
any other available source, including but not limited to labor |
organizations, private counsel, and financial advisors. |
(e) In no event shall the System, its staff, its authorized |
representatives, or the Board be liable for any information |
given to an employee under this Section. The System may |
coordinate with the Illinois Department of Central Management |
Services and other retirement systems administering a defined |
contribution plan in accordance with this amendatory Act of the |
98th General Assembly to provide information concerning the |
impact of the option set forth in this Section. |
(f) Notwithstanding any other provision of this Section, no |
|
person shall begin participating in the defined contribution |
plan until it has attained qualified plan status and received |
all necessary approvals from the U.S. Internal Revenue Service. |
(g) The System shall report on its progress under this |
Section, including the available details of the defined |
contribution plan and the System's plans for informing eligible |
Tier 1 members about the plan, to the Governor and the General |
Assembly on or before January 15, 2015. |
(h) The Illinois State Board of Investments shall be the |
plan sponsor for the defined contribution plan established |
under this Section. |
(i) The intent of this amendatory Act of the 98th General |
Assembly is to ensure that the State's normal cost of |
participation in the defined contribution plan is similar, and |
if possible equal, to the State's normal cost of participation |
in the defined benefit plan, unless a lower State's normal cost |
is necessary to ensure cost neutrality. |
(40 ILCS 5/14-156 new) |
Sec. 14-156. Defined contribution plan; termination. If |
the defined contribution plan is terminated or becomes |
inoperative pursuant to law, then each participant in the plan |
shall automatically be deemed to have been a contributing Tier |
1 member in the System's defined benefit plan during the time |
in which he or she participated in the defined contribution |
plan, and for that purpose the System shall be entitled to |
|
recover the amounts in the participant's defined contribution |
accounts.
|
(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
|
Sec. 15-106. Employer. "Employer": The University of |
Illinois, Southern
Illinois University, Chicago State |
University, Eastern Illinois University,
Governors State |
University, Illinois State University, Northeastern Illinois
|
University, Northern Illinois University, Western Illinois |
University, the
State Board of Higher Education, the Illinois |
Mathematics and Science Academy,
the University Civil Service |
Merit Board, the Board of
Trustees of the State Universities |
Retirement System, the Illinois Community
College Board, |
community college
boards, any association of community college |
boards organized under Section
3-55 of the Public Community |
College Act, the Board of Examiners established
under the |
Illinois Public Accounting Act, and, only during the period for |
which
employer contributions required under Section 15-155 are |
paid, the following
organizations: the alumni associations, |
the foundations and the athletic
associations which are |
affiliated with the universities and colleges included
in this |
Section as employers. An individual that begins employment |
after the effective date of this amendatory Act of the 98th |
General Assembly with an entity not defined as an employer in |
this Section shall not be deemed an employee for the purposes |
of this Article with respect to that employment and shall not |
|
be eligible to participate in the System with respect to that |
employment; provided, however, that those individuals who are |
both employed and already participants in the System on the |
effective date of this amendatory Act of the 98th General |
Assembly shall be allowed to continue as participants in the |
System for the duration of that employment and continue to earn |
service credit. |
Notwithstanding any provision of law to the contrary, an |
individual who begins employment with any of the following |
employers on or after the effective date of this amendatory Act |
of the 98th General Assembly shall not be deemed an employee |
and shall not be eligible to participate in the System with |
respect to that employment: any association of community |
college boards organized under Section
3-55 of the Public |
Community College Act, the Association of Illinois |
Middle-Grade Schools, the Illinois Association of School |
Administrators, the Illinois Association for Supervision and |
Curriculum Development, the Illinois Principals Association, |
the Illinois Association of School Business Officials, or the |
Illinois Special Olympics; provided, however, that those |
individuals who are both employed and already participants in |
the System on the effective date of this amendatory Act of the |
98th General Assembly shall be allowed to continue as |
participants in the System for the duration of that employment |
and continue to earn service credit. |
A department as defined in Section 14-103.04 is
an employer |
|
for any person appointed by the Governor under the Civil
|
Administrative Code of Illinois who is a participating employee |
as defined in
Section 15-109. The Department of Central |
Management Services is an employer with respect to persons |
employed by the State Board of Higher Education in positions |
with the Illinois Century Network as of June 30, 2004 who |
remain continuously employed after that date by the Department |
of Central Management Services in positions with the Illinois |
Century Network, the Bureau of Communication and Computer |
Services, or, if applicable, any successor bureau.
|
The cities of Champaign and Urbana shall be considered
|
employers, but only during the period for which contributions |
are required to
be made under subsection (b-1) of Section |
15-155 and only with respect to
individuals described in |
subsection (h) of Section 15-107.
|
(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See |
Sec. 999 .)
|
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
|
Sec. 15-107. Employee.
|
(a) "Employee" means any member of the educational, |
administrative,
secretarial, clerical, mechanical, labor or |
other staff of an employer
whose employment is permanent and |
continuous or who is employed in a
position in which services |
are expected to be rendered on a continuous
basis for at least |
4 months or one academic term, whichever is less, who
(A) |
|
receives payment for personal services on a warrant issued |
pursuant to
a payroll voucher certified by an employer and |
drawn by the State
Comptroller upon the State Treasurer or by |
an employer upon trust, federal
or other funds, or (B) is on a |
leave of absence without pay. Employment
which is irregular, |
intermittent or temporary shall not be considered
continuous |
for purposes of this paragraph.
|
However, a person is not an "employee" if he or she:
|
(1) is a student enrolled in and regularly attending |
classes in a
college or university which is an employer, |
and is employed on a temporary
basis at less than full |
time;
|
(2) is currently receiving a retirement annuity or a |
disability
retirement annuity under Section 15-153.2 from |
this System;
|
(3) is on a military leave of absence;
|
(4) is eligible to participate in the Federal Civil |
Service Retirement
System and is currently making |
contributions to that system based upon
earnings paid by an |
employer;
|
(5) is on leave of absence without pay for more than 60 |
days
immediately following termination of disability |
benefits under this
Article;
|
(6) is hired after June 30, 1979 as a public service |
employment program
participant under the Federal |
Comprehensive Employment and Training Act
and receives |
|
earnings in whole or in part from funds provided under that
|
Act; or
|
(7) is employed on or after July 1, 1991 to perform |
services that
are excluded by subdivision (a)(7)(f) or |
(a)(19) of Section 210 of the
federal Social Security Act |
from the definition of employment given in that
Section (42 |
U.S.C. 410).
|
(b) Any employer may, by filing a written notice with the |
board, exclude
from the definition of "employee" all persons |
employed pursuant to a federally
funded contract entered into |
after July 1, 1982 with a federal military
department in a |
program providing training in military courses to federal
|
military personnel on a military site owned by the United |
States Government,
if this exclusion is not prohibited by the |
federally funded contract or
federal laws or rules governing |
the administration of the contract.
|
(c) Any person appointed by the Governor under the Civil |
Administrative
Code of the State is an employee, if he or she |
is a participant in this
system on the effective date of the |
appointment.
|
(d) A participant on lay-off status under civil service |
rules is
considered an employee for not more than 120 days from |
the date of the lay-off.
|
(e) A participant is considered an employee during (1) the |
first 60 days
of disability leave, (2) the period, not to |
exceed one year, in which his
or her eligibility for disability |
|
benefits is being considered by the board
or reviewed by the |
courts, and (3) the period he or she receives disability
|
benefits under the provisions of Section 15-152, workers' |
compensation or
occupational disease benefits, or disability |
income under an insurance
contract financed wholly or partially |
by the employer.
|
(f) Absences without pay, other than formal leaves of |
absence, of less
than 30 calendar days, are not considered as |
an interruption of a person's
status as an employee. If such |
absences during any period of 12 months
exceed 30 work days, |
the employee status of the person is considered as
interrupted |
as of the 31st work day.
|
(g) A staff member whose employment contract requires |
services during
an academic term is to be considered an |
employee during the summer and
other vacation periods, unless |
he or she declines an employment contract
for the succeeding |
academic term or his or her employment status is
otherwise |
terminated, and he or she receives no earnings during these |
periods.
|
(h) An individual who was a participating employee employed |
in the fire
department of the University of Illinois's |
Champaign-Urbana campus immediately
prior to the elimination |
of that fire department and who immediately after the
|
elimination of that fire department became employed by the fire |
department of
the City of Urbana or the City of Champaign shall |
continue to be considered as
an employee for purposes of this |
|
Article for so long as the individual remains
employed as a |
firefighter by the City of Urbana or the City of Champaign. The
|
individual shall cease to be considered an employee under this |
subsection (h)
upon the first termination of the individual's |
employment as a firefighter by
the City of Urbana or the City |
of Champaign.
|
(i) An individual who is employed on a full-time basis as |
an officer
or employee of a statewide teacher organization that |
serves System
participants or an officer of a national teacher |
organization that serves
System participants may participate |
in the System and shall be deemed an
employee, provided that |
(1) the individual has previously earned
creditable service |
under this Article, (2) the individual files with the
System an |
irrevocable election to become a participant before the |
effective date of this amendatory Act of the 97th General |
Assembly, (3) the
individual does not receive credit for that |
employment under any other Article
of this Code, and (4) the |
individual first became a full-time employee of the teacher |
organization and becomes a participant before the effective |
date of this amendatory Act of the 97th General Assembly. An |
employee under this subsection (i) is responsible for paying
to |
the System both (A) employee contributions based on the actual |
compensation
received for service with the teacher |
organization and (B) employer
contributions equal to the normal |
costs (as defined in Section 15-155)
resulting from that |
service; all or any part of these contributions may be
paid on |
|
the employee's behalf or picked up for tax purposes (if |
authorized
under federal law) by the teacher organization.
|
A person who is an employee as defined in this subsection |
(i) may establish
service credit for similar employment prior |
to becoming an employee under this
subsection by paying to the |
System for that employment the contributions
specified in this |
subsection, plus interest at the effective rate from the
date |
of service to the date of payment. However, credit shall not be |
granted
under this subsection for any such prior employment for |
which the applicant
received credit under any other provision |
of this Code, or during which
the applicant was on a leave of |
absence under Section 15-113.2.
|
(j) A person employed by the State Board of Higher |
Education in a position with the Illinois Century Network as of |
June 30, 2004 shall be considered to be an employee for so long |
as he or she remains continuously employed after that date by |
the Department of Central Management Services in a position |
with the Illinois Century Network, the Bureau of Communication |
and Computer Services, or, if applicable, any successor bureau
|
and meets the requirements of subsection (a).
|
(k) In the case of doubt as to whether any person is an |
employee within the meaning of this Section, the decision of |
the Board shall be final. |
(Source: P.A. 97-651, eff. 1-5-12.)
|
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
|
|
Sec. 15-111. Earnings.
|
(a) "Earnings": An amount paid for personal services equal |
to the sum of
the basic compensation plus extra compensation |
for summer teaching,
overtime or other extra service. For |
periods for which an employee receives
service credit under |
subsection (c) of Section 15-113.1 or Section 15-113.2,
|
earnings are equal to the basic compensation on which |
contributions are
paid by the employee during such periods. |
Compensation for employment which is
irregular, intermittent |
and temporary shall not be considered earnings, unless
the |
participant is also receiving earnings from the employer as an |
employee
under Section 15-107.
|
With respect to transition pay paid by the University of |
Illinois to a
person who was a participating employee employed |
in the fire department of
the University of Illinois's |
Champaign-Urbana campus immediately prior to
the elimination |
of that fire department:
|
(1) "Earnings" includes transition pay paid to the |
employee on or after
the effective date of this amendatory |
Act of the 91st General Assembly.
|
(2) "Earnings" includes transition pay paid to the |
employee before the
effective date of this amendatory Act |
of the 91st General Assembly only if (i)
employee |
contributions under Section 15-157 have been withheld from |
that
transition pay or (ii) the employee pays to the System |
before January 1, 2001
an amount representing employee |
|
contributions under Section 15-157 on that
transition pay. |
Employee contributions under item (ii) may be paid in a |
lump
sum, by withholding from additional transition pay |
accruing before January 1,
2001, or in any other manner |
approved by the System. Upon payment of the
employee |
contributions on transition pay, the corresponding |
employer
contributions become an obligation of the State.
|
(b) For a Tier 2 member, the annual earnings shall not |
exceed $106,800; however, that amount shall annually |
thereafter be increased by the lesser of (i) 3% of that amount, |
including all previous adjustments, or (ii) one half the annual |
unadjusted percentage increase (but not less than zero) in the |
consumer price index-u for the 12 months ending with the |
September preceding each November 1, including all previous |
adjustments. |
For the purposes of this Section, "consumer price index u" |
means the index published by the Bureau of Labor Statistics of |
the United States Department of Labor that measures the average |
change in prices of goods and services purchased by all urban |
consumers, United States city average, all items, 1982-84 = |
100. The new amount resulting from each annual adjustment shall |
be determined by the Public Pension Division of the Department |
of Insurance and made available to the boards of the retirement |
systems and pension funds by November 1 of each year. |
(c) Notwithstanding any other provision of this Code, the
|
annual earnings of a Tier 1 member for the purposes of this |
|
Code
shall not exceed, for periods of service on or after the
|
effective date of this amendatory Act of the 98th General
|
Assembly, the greater of (i) the annual limitation determined |
from
time to time under subsection (b-5) of Section 1-160 of |
this
Code, (ii) the annualized rate of earnings of the Tier 1 |
member as of that effective date, or (iii) the annualized rate |
of earnings of the Tier 1 member immediately preceding the |
expiration, renewal, or amendment of an employment contract or |
collective bargaining agreement in effect on that effective |
date. |
(Source: P.A. 98-92, eff. 7-16-13.)
|
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
|
Sec. 15-112. Final rate of earnings. "Final rate of |
earnings": |
(a) This subsection (a) applies only to a Tier 1 member. |
For an employee who is paid on an hourly basis or who |
receives an annual salary
in installments during 12 months of |
each academic year, the average annual
earnings during the 48 |
consecutive calendar month period ending with the last
day of |
final termination of employment or the 4 consecutive academic |
years of
service in which the employee's earnings were the |
highest, whichever is
greater.
For any other employee, the |
average annual earnings during the 4 consecutive
academic years |
of service in which his or her earnings were the highest.
For |
an employee with less than 48 months or 4 consecutive academic |
|
years of
service, the average earnings during his or her entire |
period of service.
The earnings of an employee with more than |
36 months of service prior to the
date of becoming a |
participant are, for such period, considered equal to the
|
average earnings during the last 36 months of such service. |
(b) This subsection (b) applies to a Tier 2 member. |
For an employee who is paid on an hourly basis or who |
receives an annual salary in installments during 12 months of |
each academic year, the average annual earnings obtained by |
dividing by 8 the total earnings of the employee during the 96 |
consecutive months in which the total earnings were the highest |
within the last 120 months prior to termination. |
For any other employee, the average annual earnings during |
the 8 consecutive academic years within the 10 years prior to |
termination in which the employee's earnings were the highest. |
For an employee with less than 96 consecutive months or 8 |
consecutive academic years of service, whichever is necessary, |
the average earnings during his or her entire period of |
service. |
(c) For an
employee on leave of absence with pay, or on |
leave of absence without pay
who makes contributions during |
such leave, earnings are assumed to be equal
to the basic |
compensation on the date the leave began. |
(d) For an employee on
disability leave, earnings are |
assumed to be equal to the basic compensation
on the date |
disability occurs or the average earnings during the 24 months
|
|
immediately preceding the month in which disability occurs, |
whichever is
greater.
|
(e) For a Tier 1 member who retires on or after the |
effective date of this
amendatory Act of 1997 with at least 20 |
years of service as a firefighter or
police officer under this |
Article, the final rate of earnings shall be the
annual rate of |
earnings received by the participant on his or her last day as |
a
firefighter or police officer under this Article, if that is |
greater than the
final rate of earnings as calculated under the |
other provisions of this
Section.
|
(f) If a Tier 1 member is an employee for at least
6 months |
during the academic year in which his or her employment
is |
terminated, the annual final rate of earnings shall be 25% of |
the sum
of (1) the annual basic compensation for that year, and |
(2) the amount
earned during the 36 months immediately |
preceding that year, if this is
greater than the final rate of |
earnings as calculated under the other
provisions of this |
Section.
|
(g) In the determination of the final rate of earnings for |
an employee, that
part of an employee's earnings for any |
academic year beginning after June 30,
1997, which exceeds the |
employee's earnings with that employer for the
preceding year |
by more than 20 percent shall be excluded; in the event
that an |
employee has more than one employer
this limitation shall be |
calculated separately for the earnings with
each employer. In |
making such calculation, only the basic compensation of
|
|
employees shall be considered, without regard to vacation or |
overtime or to
contracts for summer employment.
|
(h) The following are not considered as earnings in |
determining final rate of
earnings: (1) severance or separation |
pay, (2) retirement pay, (3)
payment for unused sick leave, and |
(4) payments from an employer for
the period used in |
determining final rate of earnings for any purpose other
than |
(i) services rendered, (ii) leave of absence or vacation |
granted
during that period, and (iii) vacation of up to 56 work |
days allowed upon
termination of employment; except that, if |
the benefit has been collectively
bargained between the |
employer and the recognized collective bargaining agent
|
pursuant to the Illinois Educational Labor Relations Act, |
payment received
during a period of up to 2 academic years for |
unused sick leave may be
considered as earnings in accordance |
with the applicable collective bargaining
agreement, subject |
to the 20% increase limitation of this Section , and if the
|
person first becomes a participant on or after the effective |
date of this amendatory Act of the 98th General Assembly,
|
payments for unused sick or vacation time shall not be
|
considered as earnings . Any unused
sick leave considered as |
earnings under this Section shall not be taken into
account in |
calculating service credit under Section 15-113.4.
|
(i) Intermittent periods of service shall be considered as |
consecutive in
determining final rate of earnings.
|
(Source: P.A. 98-92, eff. 7-16-13.)
|
|
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
|
Sec. 15-113.4. Service for unused sick leave. "Service for |
unused
sick leave": A person who first becomes a participant |
before the effective date of this amendatory Act of the 98th
|
General Assembly and who is an employee under this System or |
one of
the other systems subject to Article 20 of this Code |
within 60 days
immediately preceding the date on which his or |
her retirement annuity
begins, is entitled to credit for |
service for that portion of unused sick
leave earned in the |
course of employment with an employer and credited on
the date |
of termination of employment by an employer for which payment |
is
not received, in accordance with the following schedule: 30 |
through 90
full calendar days and 20 through 59 full work days |
of unused sick leave,
1/4 of a year of service; 91 through 180 |
full calendar days and 60 through
119 full work days, 1/2 of a |
year of service; 181 through 270 full calendar
days and 120 |
through 179 full work days, 3/4 of a year of service; 271
|
through 360 full calendar days and 180 through 240 full work |
days, one year
of service.
Only uncompensated, unused sick |
leave earned in accordance with an
employer's sick leave |
accrual policy generally applicable to employees or a
class of |
employees shall be taken into account in calculating service |
credit
under this Section. Any uncompensated, unused sick leave |
granted by an
employer to facilitate the hiring, retirement, |
termination, or other special
circumstances of an employee |
|
shall not be taken into account in calculating
service credit |
under this Section.
If a participant transfers from one |
employer to another, the
unused sick leave credited by the |
previous employer shall be considered in
determining service to |
be credited under this Section, even if the
participant |
terminated service prior to the effective date of P.A. 86-272
|
(August 23, 1989); if necessary, the retirement annuity shall |
be
recalculated to reflect such sick leave credit. Each |
employer shall
certify to the board the number of days of |
unused sick leave accrued to the
participant's credit on the |
date that the participant's status as an
employee terminated. |
This period of unused sick leave shall not be
considered in |
determining the date the retirement annuity begins. A person
|
who first becomes a participant on or after the effective date
|
of this amendatory Act of the 98th General Assembly shall not
|
receive service credit for unused sick leave.
|
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
|
(40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
|
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate |
of Interest".
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(1) "Prescribed rate of interest": The rate of interest to |
be used in
actuarial valuations and in development of actuarial |
tables as determined
by the board on the basis of the probable |
average effective rate of
interest on a long term basis , based |
on factors including the expected investment experience; |
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historical and expected fluctuations in the market value of |
investments; the desirability of minimizing volatility in the |
rate of investment earnings from year to year; and the |
provision of reserves for anticipated losses upon sales, |
redemptions, or other disposition of investments and for |
variations in interest experience .
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(2) "Effective rate of interest": For a fiscal year |
concluding no later than June 30, 2014, the The interest rate |
for all or any part of
a fiscal year that is determined by the |
board based
on factors including the system's past and expected |
investment experience;
historical and expected fluctuations in |
the market value of investments; the
desirability of minimizing |
volatility in the effective rate of interest from
year to year; |
and the provision of reserves for anticipated losses upon |
sales,
redemptions, or other disposition of investments and for |
variations in interest
experience; except that for the purpose |
of determining the accumulated normal contributions used in |
calculating retirement annuities under Rule 2 of Section |
15-136, the effective rate of interest shall be determined by |
the State Comptroller rather than the board. For a fiscal year |
concluding no later than June 30, 2014, the The State |
Comptroller shall determine the effective rate of interest to |
be used for this purpose using the factors listed above, and |
shall certify to the board and the Commission on Government |
Forecasting and Accountability the rate to be used for this |
purpose for fiscal year 2006 as soon as possible after the |
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effective date of this amendatory Act of the 94th General |
Assembly, and for each fiscal year thereafter no later than the |
January 31 immediately preceding the start of that fiscal year. |
For a fiscal year that begins on or after July 1, 2014, the |
effective rate of interest for a given fiscal year shall be |
equal to the interest rate of 30-year United States Treasury |
bonds as of the beginning of that given fiscal year, plus 75 |
basis points. This effective rate of interest shall not be used |
in determining the prescribed rate of interest as defined in |
paragraph (1) of this Section. |
(3) The change made to this Section by Public Acts 90-65 |
and 90-511 is a clarification of existing law.
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(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
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(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
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Sec. 15-135. Retirement annuities - Conditions.
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(a) This subsection (a) applies only to a Tier 1 member. A |
participant who retires in one of the following specified years |
with
the specified amount of service is entitled to a |
retirement annuity at any age
under the retirement program |
applicable to the participant:
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35 years if retirement is in 1997 or before;
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34 years if retirement is in 1998;
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33 years if retirement is in 1999;
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32 years if retirement is in 2000;
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31 years if retirement is in 2001;
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30 years if retirement is in 2002 or later.
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A participant with 8 or more years of service after |
September 1, 1941, is
entitled to a retirement annuity on or |
after attainment of age 55.
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A participant with at least 5 but less than 8 years
of |
service after September 1, 1941, is entitled to a retirement |
annuity on
or after attainment of age 62.
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A participant who has at least 25 years of service in this |
system as a
police officer or firefighter is entitled to a |
retirement
annuity on or after the attainment of age 50, if |
Rule 4 of Section
15-136 is applicable to the participant.
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(a-3) Notwithstanding subsection (a) of this Section, for a |
Tier 1 member who begins receiving a retirement annuity under |
this Section on or after July 1, 2014, the required retirement |
age under subsection (a) is increased as follows, based on the |
Tier 1 member's age on June 1, 2014: |
(1) If he or she is at least age 46 on June 1, 2014, |
then the required retirement ages under subsection (a) |
remain unchanged. |
(2) If he or she is at least age 45 but less than age 46 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 4 months. |
(3) If he or she is at least age 44 but less than age 45 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 8 months. |
(4) If he or she is at least age 43 but less than age 44 |
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on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 12 months. |
(5) If he or she is at least age 42 but less than age 43 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 16 months. |
(6) If he or she is at least age 41 but less than age 42 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 20 months. |
(7) If he or she is at least age 40 but less than age 41 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 24 months. |
(8) If he or she is at least age 39 but less than age 40 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 28 months. |
(9) If he or she is at least age 38 but less than age 39 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 32 months. |
(10) If he or she is at least age 37 but less than age |
38 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 36 months. |
(11) If he or she is at least age 36 but less than age |
37 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 40 months. |
(12) If he or she is at least age 35 but less than age |
36 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 44 months. |
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(13) If he or she is at least age 34 but less than age |
35 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 48 months. |
(14) If he or she is at least age 33 but less than age |
34 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 52 months. |
(15) If he or she is at least age 32 but less than age |
33 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 56 months. |
(16) If he or she is less than age 32 on June 1, 2014, |
then the required retirement ages under subsection (a) are |
increased by 60 months. |
Notwithstanding Section 1-103.1, this subsection (a-3) |
applies without regard to whether or not the Tier 1 member is |
in active service under this Article on or after the effective |
date of this amendatory Act of the 98th General Assembly. |
(a-5) A Tier 2 member is entitled to a retirement annuity |
upon written application if he or she has attained age 67 and |
has at least 10 years of service credit and is otherwise |
eligible under the requirements of this Article. A Tier 2 |
member who has attained age 62 and has at least 10 years of |
service credit and is otherwise eligible under the requirements |
of this Article may elect to receive the lower retirement |
annuity provided in subsection (b-5) of Section 15-136 of this |
Article. |
(b) The annuity payment period shall begin on the date |
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specified by the
participant or the recipient of a disability |
retirement annuity submitting a written application, which |
date shall not be prior
to termination of employment or more |
than one year before the application is
received by the board; |
however, if the participant is not an employee of an
employer |
participating in this System or in a participating system as |
defined
in Article 20 of this Code on April 1 of the calendar |
year next following
the calendar year in which the participant |
attains age 70 1/2, the annuity
payment period shall begin on |
that date regardless of whether an application
has been filed.
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(c) An annuity is not payable if the amount provided under |
Section
15-136 is less than $10 per month.
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(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
98-92, eff. 7-16-13.)
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(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
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Sec. 15-136. Retirement annuities - Amount. The provisions |
of this
Section 15-136 apply only to those participants who are |
participating in the
traditional benefit package or the |
portable benefit package and do not
apply to participants who |
are participating in the self-managed plan.
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(a) The amount of a participant's retirement annuity, |
expressed in the form
of a single-life annuity, shall be |
determined by whichever of the following
rules is applicable |
and provides the largest annuity:
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Rule 1: The retirement annuity shall be 1.67% of final rate |
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of earnings for
each of the first 10 years of service, 1.90% |
for each of the next 10 years of
service, 2.10% for each year |
of service in excess of 20 but not exceeding 30,
and 2.30% for |
each year in excess of 30; or for persons who retire on or
|
after January 1, 1998, 2.2% of the final rate of earnings for |
each year of
service.
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Rule 2: The retirement annuity shall be the sum of the |
following,
determined from amounts credited to the participant |
in accordance with the
actuarial tables and the effective rate |
of interest in effect at the
time the retirement annuity |
begins:
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(i) the normal annuity which can be provided on an |
actuarially
equivalent basis (using the effective rate of |
interest in effect at the time of retirement for |
retirements occurring on or after July 1, 2014) , by the |
accumulated normal contributions as of
the date the annuity |
begins;
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(ii) an annuity from employer contributions of an |
amount equal to that
which can be provided on an |
actuarially equivalent basis (using the effective rate of |
interest in effect at the time of retirement for |
retirements occurring on or after July 1, 2014) from the |
accumulated
normal contributions made by the participant |
under Section 15-113.6 and Section
15-113.7 plus 1.4 times |
all other accumulated normal contributions made by
the |
participant; and
|
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(iii) the annuity that can be provided on an |
actuarially equivalent basis
(using the effective rate of |
interest in effect at the time of retirement for |
retirements occurring on or after July 1, 2014) from the |
entire contribution made by the participant under Section |
15-113.3.
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Notwithstanding any other provision of this Rule 2, a |
participant's retirement annuity calculated under this Rule 2 |
shall not be less than the retirement annuity that participant |
would have received under this Rule 2 had he or she retired |
during the fiscal year preceding the effective date of this |
amendatory Act of the 98th General Assembly. |
With respect to a police officer or firefighter who retires |
on or after
August 14, 1998, the accumulated normal |
contributions taken into account under
clauses (i) and (ii) of |
this Rule 2 shall include the additional normal
contributions |
made by the police officer or firefighter under Section
|
15-157(a).
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The amount of a retirement annuity calculated under this |
Rule 2 shall
be computed solely on the basis of the |
participant's accumulated normal
contributions, as specified |
in this Rule and defined in Section 15-116.
Neither an employee |
or employer contribution for early retirement under
Section |
15-136.2 nor any other employer contribution shall be used in |
the
calculation of the amount of a retirement annuity under |
this Rule 2.
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This amendatory Act of the 91st General Assembly is a |
clarification of
existing law and applies to every participant |
and annuitant without regard to
whether status as an employee |
terminates before the effective date of this
amendatory Act.
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This Rule 2 does not apply to a person who first becomes an |
employee under this Article on or after July 1, 2005.
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Rule 3: The retirement annuity of a participant who is |
employed
at least one-half time during the period on which his |
or her final rate of
earnings is based, shall be equal to the |
participant's years of service
not to exceed 30, multiplied by |
(1) $96 if the participant's final rate
of earnings is less |
than $3,500, (2) $108 if the final rate of earnings is
at least |
$3,500 but less than $4,500, (3) $120 if the final rate of |
earnings
is at least $4,500 but less than $5,500, (4) $132 if |
the final rate
of earnings is at least $5,500 but less than |
$6,500, (5)
$144 if the final rate of earnings is at least |
$6,500 but less than
$7,500, (6) $156 if the final rate of |
earnings is at least $7,500 but less
than $8,500, (7) $168 if |
the final rate of earnings is at least $8,500 but
less than |
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
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more, except that the annuity for those persons having made an |
election under
Section 15-154(a-1) shall be calculated and |
payable under the portable
retirement benefit program pursuant |
to the provisions of Section 15-136.4.
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Rule 4: A participant who is at least age 50 and has 25 or |
more years of
service as a police officer or firefighter, and a |
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participant who is age 55 or
over and has at least 20 but less |
than 25 years of service as a police officer
or firefighter, |
shall be entitled to a retirement annuity of 2 1/4% of the
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final rate of earnings for each of the first 10 years of |
service as a police
officer or firefighter, 2 1/2% for each of |
the next 10 years of service as a
police officer or |
firefighter, and 2 3/4% for each year of service as a police
|
officer or firefighter in excess of 20. The retirement annuity |
for all other
service shall be computed under Rule 1. A Tier 2 |
member is eligible for a retirement annuity calculated under |
Rule 4 only if that Tier 2 member meets the service |
requirements for that benefit calculation as prescribed under |
this Rule 4 in addition to the applicable age requirement under |
subsection (a-5) of Section 15-135.
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For purposes of this Rule 4, a participant's service as a |
firefighter
shall also include the following:
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(i) service that is performed while the person is an |
employee under
subsection (h) of Section 15-107; and
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(ii) in the case of an individual who was a |
participating employee
employed in the fire department of |
the University of Illinois's
Champaign-Urbana campus |
immediately prior to the elimination of that fire
|
department and who immediately after the elimination of |
that fire department
transferred to another job with the |
University of Illinois, service performed
as an employee of |
the University of Illinois in a position other than police
|
|
officer or firefighter, from the date of that transfer |
until the employee's
next termination of service with the |
University of Illinois.
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(b) For a Tier 1 member, the retirement annuity provided |
under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each |
month the participant is under age 60 at the
time of |
retirement. However, this reduction shall not apply in the |
following
cases:
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(1) For a disabled participant whose disability |
benefits have been
discontinued because he or she has |
exhausted eligibility for disability
benefits under clause |
(6) of Section 15-152;
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(2) For a participant who has at least the number of |
years of service
required to retire at any age under |
subsection (a) of Section 15-135; or
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(3) For that portion of a retirement annuity which has |
been provided on
account of service of the participant |
during periods when he or she performed
the duties of a |
police officer or firefighter, if these duties were |
performed
for at least 5 years immediately preceding the |
date the retirement annuity
is to begin.
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(b-5) The retirement annuity of a Tier 2 member who is |
retiring after attaining age 62 with at least 10 years of |
service credit shall be reduced by 1/2 of 1% for each full |
month that the member's age is under age 67. |
(c) The maximum retirement annuity provided under Rules 1, |
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2, 4,
and 5
shall be the lesser of (1) the annual limit of |
benefits as specified in
Section 415 of the Internal Revenue |
Code of 1986, as such Section may be
amended from time to time |
and as such benefit limits shall be adjusted by
the |
Commissioner of Internal Revenue, and (2) 80% of final rate of
|
earnings.
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(d) This subsection (d) is subject to subsections (d-1) and |
(d-2). A Tier 1 member whose status as an employee terminates |
after August 14,
1969 shall receive automatic increases in his |
or her retirement annuity as
follows:
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Effective January 1 immediately following the date the |
retirement annuity
begins, the annuitant shall receive an |
increase in his or her monthly
retirement annuity of 0.125% of |
the monthly retirement annuity provided under
Rule 1, Rule 2, |
Rule 3, or Rule 4 contained in this
Section, multiplied by
the |
number of full months which elapsed from the date the |
retirement annuity
payments began to January 1, 1972, plus |
0.1667% of such annuity, multiplied by
the number of full |
months which elapsed from January 1, 1972, or the date the
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retirement annuity payments began, whichever is later, to |
January 1, 1978, plus
0.25% of such annuity multiplied by the |
number of full months which elapsed
from January 1, 1978, or |
the date the retirement annuity payments began,
whichever is |
later, to the effective date of the increase.
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The annuitant shall receive an increase in his or her |
monthly retirement
annuity on each January 1 thereafter during |
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the annuitant's life of 3% of
the monthly annuity provided |
under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this |
Section. The change made under this subsection by P.A. 81-970 |
is
effective January 1, 1980 and applies to each annuitant |
whose status as
an employee terminates before or after that |
date.
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Beginning January 1, 1990, all automatic annual increases |
payable under
this Section shall be calculated as a percentage |
of the total annuity
payable at the time of the increase, |
including all increases previously
granted under this Article.
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The change made in this subsection by P.A. 85-1008 is |
effective January
26, 1988, and is applicable without regard to |
whether status as an employee
terminated before that date.
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(d-1) Notwithstanding subsection (d), but subject to the |
provisions of subsection (d-2), all automatic increases |
payable under subsection (d) on or after the effective date of |
this amendatory Act of the 98th General Assembly shall be |
calculated as 3% of the lesser of (1) the total annuity
payable |
at the time of the increase, including previous
increases |
granted, or (2) $1,000 multiplied by the number of years of |
creditable service upon which the annuity is based; however, in |
the case of an initial increase subject to this subsection, the |
amount of that increase shall be prorated if less than one year |
has elapsed since retirement. |
Beginning January 1, 2016, the $1,000 referred to in item |
(2) of this subsection (d-1) shall be increased on each January |
|
1 by the annual unadjusted percentage increase (but not less |
than zero) in the consumer price index-u for the 12 months |
ending with the preceding September; these adjustments shall be |
cumulative and compounded.
For the purposes of this subsection |
(d-1), "consumer price index-u" means the index published by |
the Bureau of Labor Statistics of the United States Department |
of Labor that measures the average change in prices of goods |
and services purchased by all urban consumers, United States |
city average, all items, 1982-84 = 100. The new dollar amount |
resulting from each annual adjustment shall be determined by |
the Public Pension Division of the Department of Insurance and |
made available to the System by November 1 of each year. |
This subsection (d-1) is applicable without regard to |
whether the person is in service on or after the effective date |
of this amendatory Act of the 98th General Assembly. |
(d-2) Notwithstanding subsections (d) and (d-1), for an |
active or inactive Tier 1 member who has not begun to receive a |
retirement annuity under this Article before July 1, 2014: |
(1) the automatic annual increase payable under |
subsection (d) the second January following the date the |
retirement annuity begins shall be equal to 0% of the total |
annuity payable at the time of the increase, if he or she |
is at least age 50 on the effective date of this amendatory |
Act; |
(2) the automatic annual increase payable under |
subsection (d) the second, fourth, and sixth January |
|
following the date the retirement annuity begins shall be |
equal to 0% of the total annuity payable at the time of the |
increase, if he or she is at least age 47 but less than age |
50 on the effective date of this amendatory Act; |
(3) the automatic annual increase payable under |
subsection (d) the second, fourth, sixth, and eighth |
January following the date the retirement annuity begins |
shall be equal to 0% of the total annuity payable at the |
time of the increase, if he or she is at least age 44 but |
less than age 47 on the effective date of this amendatory |
Act; |
(4) the automatic annual increase payable under |
subsection (d) the second, fourth, sixth, eighth, and tenth |
January following the date the retirement annuity begins |
shall be equal to 0% of the total annuity payable at the |
time of the increase, if he or she is less than age 44 on |
the effective date of this amendatory Act. |
(d-5) A retirement annuity of a Tier 2 member shall receive |
annual increases on the January 1 occurring either on or after |
the attainment of age 67 or the first anniversary of the |
annuity start date, whichever is later. Each annual increase |
shall be calculated at 3% or one half the annual unadjusted |
percentage increase (but not less than zero) in the consumer |
price index-u for the 12 months ending with the September |
preceding each November 1, whichever is less, of the originally |
granted retirement annuity. If the annual unadjusted |
|
percentage change in the consumer price index-u for the 12 |
months ending with the September preceding each November 1 is |
zero or there is a decrease, then the annuity shall not be |
increased. |
(e) If, on January 1, 1987, or the date the retirement |
annuity payment
period begins, whichever is later, the sum of |
the retirement annuity
provided under Rule 1 or Rule 2 of this |
Section
and the automatic annual increases provided under the |
preceding subsection
or Section 15-136.1, amounts to less than |
the retirement
annuity which would be provided by Rule 3, the |
retirement
annuity shall be increased as of January 1, 1987, or |
the date the
retirement annuity payment period begins, |
whichever is later, to the amount
which would be provided by |
Rule 3 of this Section. Such increased
amount shall be |
considered as the retirement annuity in determining
benefits |
provided under other Sections of this Article. This paragraph
|
applies without regard to whether status as an employee |
terminated before the
effective date of this amendatory Act of |
1987, provided that the annuitant was
employed at least |
one-half time during the period on which the final rate of
|
earnings was based.
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(f) A participant is entitled to such additional annuity as |
may be provided
on an actuarially equivalent basis, by any |
accumulated
additional contributions to his or her credit. |
However,
the additional contributions made by the participant |
toward the automatic
increases in annuity provided under this |
|
Section shall not be taken into
account in determining the |
amount of such additional annuity.
|
(g) If, (1) by law, a function of a governmental unit, as |
defined by Section
20-107 of this Code, is transferred in whole |
or in part to an employer, and (2)
a participant transfers |
employment from such governmental unit to such employer
within |
6 months after the transfer of the function, and (3) the sum of |
(A) the
annuity payable to the participant under Rule 1, 2, or |
3 of this Section (B)
all proportional annuities payable to the |
participant by all other retirement
systems covered by Article |
20, and (C) the initial primary insurance amount to
which the |
participant is entitled under the Social Security Act, is less |
than
the retirement annuity which would have been payable if |
all of the
participant's pension credits validated under |
Section 20-109 had been validated
under this system, a |
supplemental annuity equal to the difference in such
amounts |
shall be payable to the participant.
|
(h) On January 1, 1981, an annuitant who was receiving
a |
retirement annuity on or before January 1, 1971 shall have his |
or her
retirement annuity then being paid increased $1 per |
month for
each year of creditable service. On January 1, 1982, |
an annuitant whose
retirement annuity began on or before |
January 1, 1977, shall have his or her
retirement annuity then |
being paid increased $1 per month for each year of
creditable |
service.
|
(i) On January 1, 1987, any annuitant whose retirement |
|
annuity began on or
before January 1, 1977, shall have the |
monthly retirement annuity increased by
an amount equal to 8¢ |
per year of creditable service times the number of years
that |
have elapsed since the annuity began.
|
(j) For participants to whom subsection (a-3) of Section |
15-135 applies, the references to age 50, 55, and 62 in this |
Section are increased as provided in subsection (a-3) of |
Section 15-135. |
(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; |
98-92, eff. 7-16-13.)
|
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
|
Sec. 15-155. Employer contributions.
|
(a) The State of Illinois shall make contributions by |
appropriations of
amounts which, together with the other |
employer contributions from trust,
federal, and other funds, |
employee contributions, income from investments,
and other |
income of this System, will be sufficient to meet the cost of
|
maintaining and administering the System on a 100% 90% funded |
basis in accordance
with actuarial recommendations by the end |
of State fiscal year 2044 .
|
The Board shall determine the amount of State contributions |
required for
each fiscal year on the basis of the actuarial |
tables and other assumptions
adopted by the Board and the |
recommendations of the actuary, using the formula
in subsection |
(a-1).
|
|
(a-1) For State fiscal years 2015 through 2044, the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
equal to the sum of (1) the State's portion of the projected |
normal cost for that fiscal year, plus (2) an amount sufficient |
to bring the total assets of the System up to 100% of the total |
actuarial liabilities of the System by the end of the State |
fiscal year 2044. In making these determinations, the required |
State contribution shall be calculated each year as a level |
percentage of payroll over the years remaining to and including |
fiscal year 2044 and shall be determined under the projected |
unit cost method for fiscal year 2015 and under the entry age |
normal actuarial cost method for fiscal years 2016 through |
2044. |
For State fiscal years 2012 through 2014 2045 , the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
sufficient to bring the total assets of the
System up to 90% of |
the total actuarial liabilities of the System by the end of
|
State fiscal year 2045. In making these determinations, the |
required State
contribution shall be calculated each year as a |
level percentage of payroll
over the years remaining to and |
including fiscal year 2045 and shall be
determined under the |
projected unit credit actuarial cost method.
|
For State fiscal years 1996 through 2005, the State |
contribution to
the System, as a percentage of the applicable |
|
employee payroll, shall be
increased in equal annual increments |
so that by State fiscal year 2011, the
State is contributing at |
the rate required under this Section.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution for State fiscal year 2006 is |
$166,641,900.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution for State fiscal year 2007 is |
$252,064,100.
|
For each of State fiscal years 2008 through 2009, the State |
contribution to
the System, as a percentage of the applicable |
employee payroll, shall be
increased in equal annual increments |
from the required State contribution for State fiscal year |
2007, so that by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
Notwithstanding any other provision of this Article, the |
total required State contribution for State fiscal year 2010 is |
$702,514,000 and shall be made from the State Pensions Fund and |
proceeds of bonds sold in fiscal year 2010 pursuant to Section |
7.2 of the General Obligation Bond Act, less (i) the pro rata |
share of bond sale expenses determined by the System's share of |
total bond proceeds, (ii) any amounts received from the General |
Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
proceeds due to the issuance of discounted bonds, if |
applicable. |
Notwithstanding any other provision of this Article, the
|
|
total required State contribution for State fiscal year 2011 is
|
the amount recertified by the System on or before April 1, 2011 |
pursuant to Section 15-165 and shall be made from the State |
Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
pursuant to Section
7.2 of the General Obligation Bond Act, |
less (i) the pro rata
share of bond sale expenses determined by |
the System's share of
total bond proceeds, (ii) any amounts |
received from the General
Revenue Fund in fiscal year 2011, and |
(iii) any reduction in bond
proceeds due to the issuance of |
discounted bonds, if
applicable. |
Beginning in State fiscal year 2045, the minimum |
contribution
for each fiscal year shall be the amount
needed to |
maintain the total assets of the System at 100% of the total |
liabilities of the System. |
Beginning in State fiscal year 2046, the minimum State |
contribution for
each fiscal year shall be the amount needed to |
maintain the total assets of
the System at 90% of the total |
actuarial liabilities of the System.
|
Amounts received by the System pursuant to Section 25 of |
the Budget Stabilization Act or Section 8.12 of the State |
Finance Act in any fiscal year do not reduce and do not |
constitute payment of any portion of the minimum State |
contribution required under this Article in that fiscal year. |
Such amounts shall not reduce, and shall not be included in the |
calculation of, the required State contributions under this |
Article in any future year until the System has reached a |
|
funding ratio of at least 100% 90% . A reference in this Article |
to the "required State contribution" or any substantially |
similar term does not include or apply to any amounts payable |
to the System under Section 25 of the Budget Stabilization Act. |
Notwithstanding any other provision of this Section, the |
required State
contribution for State fiscal year 2005 and for |
fiscal year 2008 and each fiscal year thereafter through State |
fiscal year 2014 , as
calculated under this Section and
|
certified under Section 15-165, shall not exceed an amount |
equal to (i) the
amount of the required State contribution that |
would have been calculated under
this Section for that fiscal |
year if the System had not received any payments
under |
subsection (d) of Section 7.2 of the General Obligation Bond |
Act, minus
(ii) the portion of the State's total debt service |
payments for that fiscal
year on the bonds issued in fiscal |
year 2003 for the purposes of that Section 7.2, as determined
|
and certified by the Comptroller, that is the same as the |
System's portion of
the total moneys distributed under |
subsection (d) of Section 7.2 of the General
Obligation Bond |
Act. In determining this maximum for State fiscal years 2008 |
through 2010, however, the amount referred to in item (i) shall |
be increased, as a percentage of the applicable employee |
payroll, in equal increments calculated from the sum of the |
required State contribution for State fiscal year 2007 plus the |
applicable portion of the State's total debt service payments |
for fiscal year 2007 on the bonds issued in fiscal year 2003 |
|
for the purposes of Section 7.2 of the General
Obligation Bond |
Act, so that, by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
(b) If an employee is paid from trust or federal funds, the |
employer
shall pay to the Board contributions from those funds |
which are
sufficient to cover the accruing normal costs on |
behalf of the employee.
However, universities having employees |
who are compensated out of local
auxiliary funds, income funds, |
or service enterprise funds are not required
to pay such |
contributions on behalf of those employees. The local auxiliary
|
funds, income funds, and service enterprise funds of |
universities shall not be
considered trust funds for the |
purpose of this Article, but funds of alumni
associations, |
foundations, and athletic associations which are affiliated |
with
the universities included as employers under this Article |
and other employers
which do not receive State appropriations |
are considered to be trust funds for
the purpose of this |
Article.
|
(b-1) The City of Urbana and the City of Champaign shall |
each make
employer contributions to this System for their |
respective firefighter
employees who participate in this |
System pursuant to subsection (h) of Section
15-107. The rate |
of contributions to be made by those municipalities shall
be |
determined annually by the Board on the basis of the actuarial |
assumptions
adopted by the Board and the recommendations of the |
actuary, and shall be
expressed as a percentage of salary for |
|
each such employee. The Board shall
certify the rate to the |
affected municipalities as soon as may be practical.
The |
employer contributions required under this subsection shall be |
remitted by
the municipality to the System at the same time and |
in the same manner as
employee contributions.
|
(c) Through State fiscal year 1995: The total employer |
contribution shall
be apportioned among the various funds of |
the State and other employers,
whether trust, federal, or other |
funds, in accordance with actuarial procedures
approved by the |
Board. State of Illinois contributions for employers receiving
|
State appropriations for personal services shall be payable |
from appropriations
made to the employers or to the System. The |
contributions for Class I
community colleges covering earnings |
other than those paid from trust and
federal funds, shall be |
payable solely from appropriations to the Illinois
Community |
College Board or the System for employer contributions.
|
(d) Beginning in State fiscal year 1996, the required State |
contributions
to the System shall be appropriated directly to |
the System and shall be payable
through vouchers issued in |
accordance with subsection (c) of Section 15-165, except as |
provided in subsection (g).
|
(e) The State Comptroller shall draw warrants payable to |
the System upon
proper certification by the System or by the |
employer in accordance with the
appropriation laws and this |
Code.
|
(f) Normal costs under this Section means liability for
|
|
pensions and other benefits which accrues to the System because |
of the
credits earned for service rendered by the participants |
during the
fiscal year and expenses of administering the |
System, but shall not
include the principal of or any |
redemption premium or interest on any bonds
issued by the Board |
or any expenses incurred or deposits required in
connection |
therewith.
|
(g) If the amount of a participant's earnings for any |
academic year used to determine the final rate of earnings, |
determined on a full-time equivalent basis, exceeds the amount |
of his or her earnings with the same employer for the previous |
academic year, determined on a full-time equivalent basis, by |
more than 6%, the participant's employer shall pay to the |
System, in addition to all other payments required under this |
Section and in accordance with guidelines established by the |
System, the present value of the increase in benefits resulting |
from the portion of the increase in earnings that is in excess |
of 6%. This present value shall be computed by the System on |
the basis of the actuarial assumptions and tables used in the |
most recent actuarial valuation of the System that is available |
at the time of the computation. The System may require the |
employer to provide any pertinent information or |
documentation. |
Whenever it determines that a payment is or may be required |
under this subsection (g), the System shall calculate the |
amount of the payment and bill the employer for that amount. |
|
The bill shall specify the calculations used to determine the |
amount due. If the employer disputes the amount of the bill, it |
may, within 30 days after receipt of the bill, apply to the |
System in writing for a recalculation. The application must |
specify in detail the grounds of the dispute and, if the |
employer asserts that the calculation is subject to subsection |
(h) or (i) of this Section, must include an affidavit setting |
forth and attesting to all facts within the employer's |
knowledge that are pertinent to the applicability of subsection |
(h) or (i). Upon receiving a timely application for |
recalculation, the System shall review the application and, if |
appropriate, recalculate the amount due.
|
The employer contributions required under this subsection |
(g) may be paid in the form of a lump sum within 90 days after |
receipt of the bill. If the employer contributions are not paid |
within 90 days after receipt of the bill, then interest will be |
charged at a rate equal to the System's annual actuarially |
assumed rate of return on investment compounded annually from |
the 91st day after receipt of the bill. Payments must be |
concluded within 3 years after the employer's receipt of the |
bill. |
(h) This subsection (h) applies only to payments made or |
salary increases given on or after June 1, 2005 but before July |
1, 2011. The changes made by Public Act 94-1057 shall not |
require the System to refund any payments received before July |
31, 2006 (the effective date of Public Act 94-1057). |
|
When assessing payment for any amount due under subsection |
(g), the System shall exclude earnings increases paid to |
participants under contracts or collective bargaining |
agreements entered into, amended, or renewed before June 1, |
2005.
|
When assessing payment for any amount due under subsection |
(g), the System shall exclude earnings increases paid to a |
participant at a time when the participant is 10 or more years |
from retirement eligibility under Section 15-135.
|
When assessing payment for any amount due under subsection |
(g), the System shall exclude earnings increases resulting from |
overload work, including a contract for summer teaching, or |
overtime when the employer has certified to the System, and the |
System has approved the certification, that: (i) in the case of |
overloads (A) the overload work is for the sole purpose of |
academic instruction in excess of the standard number of |
instruction hours for a full-time employee occurring during the |
academic year that the overload is paid and (B) the earnings |
increases are equal to or less than the rate of pay for |
academic instruction computed using the participant's current |
salary rate and work schedule; and (ii) in the case of |
overtime, the overtime was necessary for the educational |
mission. |
When assessing payment for any amount due under subsection |
(g), the System shall exclude any earnings increase resulting |
from (i) a promotion for which the employee moves from one |
|
classification to a higher classification under the State |
Universities Civil Service System, (ii) a promotion in academic |
rank for a tenured or tenure-track faculty position, or (iii) a |
promotion that the Illinois Community College Board has |
recommended in accordance with subsection (k) of this Section. |
These earnings increases shall be excluded only if the |
promotion is to a position that has existed and been filled by |
a member for no less than one complete academic year and the |
earnings increase as a result of the promotion is an increase |
that results in an amount no greater than the average salary |
paid for other similar positions. |
(i) When assessing payment for any amount due under |
subsection (g), the System shall exclude any salary increase |
described in subsection (h) of this Section given on or after |
July 1, 2011 but before July 1, 2014 under a contract or |
collective bargaining agreement entered into, amended, or |
renewed on or after June 1, 2005 but before July 1, 2011. |
Notwithstanding any other provision of this Section, any |
payments made or salary increases given after June 30, 2014 |
shall be used in assessing payment for any amount due under |
subsection (g) of this Section.
|
(j) The System shall prepare a report and file copies of |
the report with the Governor and the General Assembly by |
January 1, 2007 that contains all of the following information: |
(1) The number of recalculations required by the |
changes made to this Section by Public Act 94-1057 for each |
|
employer. |
(2) The dollar amount by which each employer's |
contribution to the System was changed due to |
recalculations required by Public Act 94-1057. |
(3) The total amount the System received from each |
employer as a result of the changes made to this Section by |
Public Act 94-4. |
(4) The increase in the required State contribution |
resulting from the changes made to this Section by Public |
Act 94-1057. |
(k) The Illinois Community College Board shall adopt rules |
for recommending lists of promotional positions submitted to |
the Board by community colleges and for reviewing the |
promotional lists on an annual basis. When recommending |
promotional lists, the Board shall consider the similarity of |
the positions submitted to those positions recognized for State |
universities by the State Universities Civil Service System. |
The Illinois Community College Board shall file a copy of its |
findings with the System. The System shall consider the |
findings of the Illinois Community College Board when making |
determinations under this Section. The System shall not exclude |
any earnings increases resulting from a promotion when the |
promotion was not submitted by a community college. Nothing in |
this subsection (k) shall require any community college to |
submit any information to the Community College Board.
|
(l) For purposes of determining the required State |
|
contribution to the System, the value of the System's assets |
shall be equal to the actuarial value of the System's assets, |
which shall be calculated as follows: |
As of June 30, 2008, the actuarial value of the System's |
assets shall be equal to the market value of the assets as of |
that date. In determining the actuarial value of the System's |
assets for fiscal years after June 30, 2008, any actuarial |
gains or losses from investment return incurred in a fiscal |
year shall be recognized in equal annual amounts over the |
5-year period following that fiscal year. |
(m) For purposes of determining the required State |
contribution to the system for a particular year, the actuarial |
value of assets shall be assumed to earn a rate of return equal |
to the system's actuarially assumed rate of return. |
(Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13; |
98-463, eff. 8-16-13.)
|
(40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
|
Sec. 15-156. Obligations of State ; funding guarantees . |
(a) The payment of (1) the
required State contributions, |
(2) all benefits
granted under this system and (3) all expenses |
in connection with the
administration and operation thereof are |
obligations of the State of
Illinois to the extent specified in |
this Article. The accumulated
employee normal, additional and |
survivors insurance contributions
credited to the accounts of |
active and inactive participants
shall not be used to pay the |
|
State's share of the obligations.
|
(b) Beginning July 1, 2014, the State shall be obligated to |
contribute to the System in each State fiscal year an amount |
not less than the sum of (i) the State's normal cost for the |
year and (ii) the portion of the unfunded accrued liability |
assigned to that year by law. Notwithstanding any other |
provision of law, if the State fails to pay an amount required |
under this subsection, it shall be the obligation of the Board |
to seek payment of the required amount in compliance with the |
provisions of this Section and, if the amount remains unpaid, |
to bring a mandamus action in the Supreme Court of Illinois to |
compel the State to make the required payment. |
If the System submits a voucher for contributions required |
under Section 15-155 and the State fails to pay that voucher |
within 90 days of its receipt, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
files the request with the Comptroller and Secretary of State, |
if the amount remains unpaid the Board shall commence a |
mandamus action in the Supreme Court of Illinois to compel the |
Comptroller to satisfy the voucher. |
This subsection (b) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
|
Illinois to compel the Comptroller to pay a voucher for the |
contributions required under Section 15-155. |
(c) Beginning in State fiscal year 2016, the State shall be |
obligated to make the transfers set forth in subsections (c-5) |
and (c-10) of Section 20 of the Budget Stabilization Act and to |
pay to the System its proportionate share of the transferred |
amounts in accordance with Section 25 of the Budget |
Stabilization Act. Notwithstanding any other provision of law, |
if the State fails to transfer an amount required under this |
subsection or to pay to the System its proportionate share of |
the transferred amount in accordance with Section 25 of the |
Budget Stabilization Act, it shall be the obligation of the |
Board to seek transfer or payment of the required amount in |
compliance with the provisions of this Section and, if the |
required amount remains untransferred or the required payment |
remains unpaid, to bring a mandamus action in the Supreme Court |
of Illinois to compel the State to make the required transfer |
or payment or both, as the case may be. |
If the State fails to make a transfer required under |
subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act or a payment to the System required under |
Section 25 of that Act, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
|
files the request with the Comptroller and Secretary of State, |
if the required amount remains untransferred or the required |
payment remains unpaid, the Board shall commence a mandamus |
action in the Supreme Court of Illinois to compel the |
Comptroller to make the required transfer or payment or both, |
as the case may be. |
This subsection (c) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
Illinois to compel the Comptroller to make a transfer required |
under subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act and to pay to the System its proportionate |
share of the transferred amount in accordance with Section 25 |
of the Budget Stabilization Act. |
The obligations created by this subsection (c) expire when |
all of the requirements of subsections (c-5) and (c-10) of |
Section 20 of the Budget Stabilization Act and Section 25 of |
the Budget Stabilization Act have been met. |
(d) Any payments and transfers required to be made by the |
State pursuant to subsection (b) or (c) are expressly |
subordinate to the payment of the principal, interest, and |
premium, if any, on any bonded debt obligation of the State or |
any other State-created entity, either currently outstanding |
or to be issued, for which the source of repayment or security |
thereon is derived directly or indirectly from tax revenues |
collected by the State or any other State-created entity. |
|
Payments on such bonded obligations include any statutory fund |
transfers or other prefunding mechanisms or formulas set forth, |
now or hereafter, in State law or bond indentures, into debt |
service funds or accounts of the State related to such bond |
obligations, consistent with the payment schedules associated |
with such obligations. |
(Source: P.A. 83-1440.)
|
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
|
Sec. 15-157. Employee Contributions.
|
(a) Except as provided in subsection (a-5), each Each |
participating employee
shall make contributions towards the |
retirement
benefits payable under the retirement program |
applicable to the
employee from each payment
of earnings |
applicable to employment under this system on and after the
|
date of becoming a participant as follows: Prior to September |
1, 1949,
3 1/2% of earnings; from September 1, 1949 to August |
31, 1955, 5%; from
September 1, 1955 to August 31, 1969, 6%; |
from September 1, 1969, 6 1/2%.
These contributions are to be |
considered as normal contributions for purposes
of this |
Article.
|
Except as provided in subsection (a-5), each Each |
participant who is a police officer or firefighter shall make |
normal
contributions of 8% of each payment of earnings |
applicable to employment as a
police officer or firefighter |
under this system on or after September 1, 1981,
unless he or |
|
she files with the board within 60 days after the effective |
date
of this amendatory Act of 1991 or 60 days after the board |
receives notice that
he or she is employed as a police officer |
or firefighter, whichever is later,
a written notice waiving |
the retirement formula provided by Rule 4 of Section
15-136. |
This waiver shall be irrevocable. If a participant had met the
|
conditions set forth in Section 15-132.1 prior to the effective |
date of this
amendatory Act of 1991 but failed to make the |
additional normal contributions
required by this paragraph, he |
or she may elect to pay the additional
contributions plus |
compound interest at the effective rate. If such payment
is |
received by the board, the service shall be considered as |
police officer
service in calculating the retirement annuity |
under Rule 4 of Section 15-136.
While performing service |
described in clause (i) or (ii) of Rule 4 of Section
15-136, a |
participating employee shall be deemed to be employed as a
|
firefighter for the purpose of determining the rate of employee |
contributions
under this Section.
|
(a-5) Beginning July 1, 2014, in lieu of the contribution |
otherwise required under subsection (a), each Tier 1 member, |
other than a Tier 1 member who is a police officer or |
firefighter, shall contribute 6% of earnings toward the |
retirement benefits payable under the retirement programs |
applicable to the employee from each payment of earnings |
applicable to employment under this system. |
Beginning July 1, 2014, in lieu of the contribution |
|
otherwise required under subsection (a), each Tier 1 member who |
is a police officer or firefighter shall contribute 7.5% of |
each payment of earnings applicable to employment as a police |
officer or firefighter under this system, unless he or she has |
filed a waiver with the board pursuant to subsection (a). |
The contributions required under this subsection (a-5) are |
to be considered normal contributions for the purposes of this |
Article. |
(b) Starting September 1, 1969 and, in the case of Tier 1 |
members, ending on June 30, 2014 , each participating employee |
shall make
additional contributions of 1/2 of 1% of earnings to |
finance a portion
of the cost of the annual increases in |
retirement annuity provided under
Section 15-136, except that |
with respect to participants in the
self-managed plan this |
additional contribution shall be used to finance the
benefits |
obtained under that retirement program.
|
(c) In addition to the amounts described in subsections (a) |
and (b) of this
Section, each participating employee shall make |
contributions of 1% of earnings
applicable under this system on |
and after August 1, 1959. The contributions
made under this |
subsection (c) shall be considered as survivor's insurance
|
contributions for purposes of this Article if the employee is |
covered under
the traditional benefit package, and such |
contributions shall be considered
as additional contributions |
for purposes of this Article if the employee is
participating |
in the self-managed plan or has elected to participate in the
|
|
portable benefit package and has completed the applicable |
one-year waiting
period. Contributions in excess of $80 during |
any fiscal year beginning before
August 31, 1969 and in excess |
of $120 during any fiscal year thereafter until
September 1, |
1971 shall be considered as additional contributions for |
purposes
of this Article.
|
(d) If the board by board rule so permits and subject to |
such conditions
and limitations as may be specified in its |
rules, a participant may make
other additional contributions of |
such percentage of earnings or amounts as
the participant shall |
elect in a written notice thereof received by the board.
|
(e) That fraction of a participant's total accumulated |
normal
contributions, the numerator of which is equal to the |
number of years of
service in excess of that which is required |
to qualify for the maximum
retirement annuity, and the |
denominator of which is equal to the total
service of the |
participant, shall be considered as accumulated additional
|
contributions. The determination of the applicable maximum |
annuity and
the adjustment in contributions required by this |
provision shall be made
as of the date of the participant's |
retirement.
|
(f) Notwithstanding the foregoing, a participating |
employee shall not
be required to make contributions under this |
Section after the date upon
which continuance of such |
contributions would otherwise cause his or her
retirement |
annuity to exceed the maximum retirement annuity as specified |
|
in
clause (1) of subsection (c) of Section 15-136.
|
(g) A participating employee may make contributions for the |
purchase of
service credit under this Article.
|
(h) A Tier 2 member shall not make contributions on |
earnings that exceed the limitation as prescribed under |
subsection (b) of Section 15-111 of this Article. |
(Source: P.A. 98-92, eff. 7-16-13.)
|
(40 ILCS 5/15-157.5 new) |
Sec. 15-157.5. Use of contributions for health care |
subsidies. The System shall not use any contribution received |
by the System under this Article to provide a subsidy for the |
cost of participation in a retiree health care program.
|
(40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
|
Sec. 15-165. To certify amounts and submit vouchers.
|
(a) The Board shall certify to the Governor on or before |
November 15 of each
year until November 15, 2011 the |
appropriation required from State funds for the purposes of |
this
System for the following fiscal year. The certification |
under this subsection (a) shall include a copy
of the actuarial |
recommendations upon which it is based and shall specifically |
identify the System's projected State normal cost for that |
fiscal year and the projected State cost for the self-managed |
plan for that fiscal year.
|
On or before May 1, 2004, the Board shall recalculate and |
|
recertify to
the Governor the amount of the required State |
contribution to the System for
State fiscal year 2005, taking |
into account the amounts appropriated to and
received by the |
System under subsection (d) of Section 7.2 of the General
|
Obligation Bond Act.
|
On or before July 1, 2005, the Board shall recalculate and |
recertify
to the Governor the amount of the required State
|
contribution to the System for State fiscal year 2006, taking |
into account the changes in required State contributions made |
by this amendatory Act of the 94th General Assembly.
|
On or before April 1, 2011, the Board shall recalculate and |
recertify to the Governor the amount of the required State |
contribution to the System for State fiscal year 2011, applying |
the changes made by Public Act 96-889 to the System's assets |
and liabilities as of June 30, 2009 as though Public Act 96-889 |
was approved on that date. |
(a-5) On or before November 1 of each year, beginning |
November 1, 2012, the Board shall submit to the State Actuary, |
the Governor, and the General Assembly a proposed certification |
of the amount of the required State contribution to the System |
for the next fiscal year, along with all of the actuarial |
assumptions, calculations, and data upon which that proposed |
certification is based. On or before January 1 of each year, |
beginning January 1, 2013, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
|
assumptions that the Board must consider before finalizing its |
certification of the required State contributions. On or before |
January 15, 2013 and each January 15 thereafter, the Board |
shall certify to the Governor and the General Assembly the |
amount of the required State contribution for the next fiscal |
year. The Board's certification must note, in a written |
response to the State Actuary, any deviations from the State |
Actuary's recommended changes, the reason or reasons for not |
following the State Actuary's recommended changes, and the |
fiscal impact of not following the State Actuary's recommended |
changes on the required State contribution. |
(a-10) For purposes of Section (c-5) of Section 20 of the |
Budget Stabilization Act, on or before November 1 of each year |
beginning November 1, 2014, the Board shall determine the |
amount of the State contribution to the System that would have |
been required for the next fiscal year if this amendatory Act |
of the 98th General Assembly had not taken effect, using the |
best and most recent available data but based on the law in |
effect on May 31, 2014. The Board shall submit to the State |
Actuary, the Governor, and the General Assembly a proposed |
certification, along with the relevant law, actuarial |
assumptions, calculations, and data upon which that |
certification is based. On or before January 1, 2015 and every |
January 1 thereafter, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
|
assumptions that the Board must consider before finalizing its |
certification. On or before January 15, 2015 and every January |
1 thereafter, the Board shall certify to the Governor and the |
General Assembly the amount of the State contribution to the |
System that would have been required for the next fiscal year |
if this amendatory Act of the 98th General Assembly had not |
taken effect, using the best and most recent available data but |
based on the law in effect on May 31, 2014. The Board's |
certification must note any deviations from the State Actuary's |
recommended changes, the reason or reasons for not following |
the State Actuary's recommended changes, and the impact of not |
following the State Actuary's recommended changes. |
(b) The Board shall certify to the State Comptroller or |
employer, as the
case may be, from time to time, by its |
chairperson and secretary, with its seal
attached, the amounts |
payable to the System from the various funds.
|
(c) Beginning in State fiscal year 1996, on or as soon as |
possible after the
15th day of each month the Board shall |
submit vouchers for payment of State
contributions to the |
System, in a total monthly amount of one-twelfth of the
|
required annual State contribution certified under subsection |
(a).
From the effective date of this amendatory Act
of the 93rd |
General Assembly through June 30, 2004, the Board shall not
|
submit vouchers for the remainder of fiscal year 2004 in excess |
of the
fiscal year 2004 certified contribution amount |
determined
under this Section after taking into consideration |
|
the transfer to the
System under subsection (b) of Section |
6z-61 of the State Finance Act.
These
vouchers shall be paid by |
the State Comptroller and Treasurer by warrants drawn
on the |
funds appropriated to the System for that fiscal year.
|
If in any month the amount remaining unexpended from all |
other
appropriations to the System for the applicable fiscal |
year (including the
appropriations to the System under Section |
8.12 of the State Finance Act and
Section 1 of the State |
Pension Funds Continuing Appropriation Act) is less than
the |
amount lawfully vouchered under this Section, the difference |
shall be paid
from the General Revenue Fund under the |
continuing appropriation authority
provided in Section 1.1 of |
the State Pension Funds Continuing Appropriation
Act.
|
(d) So long as the payments received are the full amount |
lawfully
vouchered under this Section, payments received by the |
System under this
Section shall be applied first toward the |
employer contribution to the
self-managed plan established |
under Section 15-158.2. Payments shall be
applied second toward |
the employer's portion of the normal costs of the System,
as |
defined in subsection (f) of Section 15-155. The balance shall |
be applied
toward the unfunded actuarial liabilities of the |
System.
|
(e) In the event that the System does not receive, as a |
result of
legislative enactment or otherwise, payments |
sufficient to
fully fund the employer contribution to the |
self-managed plan
established under Section 15-158.2 and to |
|
fully fund that portion of the
employer's portion of the normal |
costs of the System, as calculated in
accordance with Section |
15-155(a-1), then any payments received shall be
applied |
proportionately to the optional retirement program established |
under
Section 15-158.2 and to the employer's portion of the |
normal costs of the
System, as calculated in accordance with |
Section 15-155(a-1).
|
(Source: P.A. 97-694, eff. 6-18-12; 98-92, eff. 7-16-13.)
|
(40 ILCS 5/15-198)
|
Sec. 15-198. Application and expiration of new benefit |
increases. |
(a) As used in this Section, "new benefit increase" means |
an increase in the amount of any benefit provided under this |
Article, or an expansion of the conditions of eligibility for |
any benefit under this Article, that results from an amendment |
to this Code that takes effect after the effective date of this |
amendatory Act of the 94th General Assembly. "New benefit |
increase", however, does not include any benefit increase |
resulting from the changes made by this amendatory Act of the |
98th General Assembly. |
(b) Notwithstanding any other provision of this Code or any |
subsequent amendment to this Code, every new benefit increase |
is subject to this Section and shall be deemed to be granted |
only in conformance with and contingent upon compliance with |
the provisions of this Section.
|
|
(c) The Public Act enacting a new benefit increase must |
identify and provide for payment to the System of additional |
funding at least sufficient to fund the resulting annual |
increase in cost to the System as it accrues. |
Every new benefit increase is contingent upon the General |
Assembly providing the additional funding required under this |
subsection. The Commission on Government Forecasting and |
Accountability shall analyze whether adequate additional |
funding has been provided for the new benefit increase and |
shall report its analysis to the Public Pension Division of the |
Department of Insurance Financial and Professional Regulation . |
A new benefit increase created by a Public Act that does not |
include the additional funding required under this subsection |
is null and void. If the Public Pension Division determines |
that the additional funding provided for a new benefit increase |
under this subsection is or has become inadequate, it may so |
certify to the Governor and the State Comptroller and, in the |
absence of corrective action by the General Assembly, the new |
benefit increase shall expire at the end of the fiscal year in |
which the certification is made.
|
(d) Every new benefit increase shall expire 5 years after |
its effective date or on such earlier date as may be specified |
in the language enacting the new benefit increase or provided |
under subsection (c). This does not prevent the General |
Assembly from extending or re-creating a new benefit increase |
by law. |
|
(e) Except as otherwise provided in the language creating |
the new benefit increase, a new benefit increase that expires |
under this Section continues to apply to persons who applied |
and qualified for the affected benefit while the new benefit |
increase was in effect and to the affected beneficiaries and |
alternate payees of such persons, but does not apply to any |
other person, including without limitation a person who |
continues in service after the expiration date and did not |
apply and qualify for the affected benefit while the new |
benefit increase was in effect.
|
(Source: P.A. 94-4, eff. 6-1-05.) |
(40 ILCS 5/15-200 new) |
Sec. 15-200. Defined contribution plan. |
(a) By July 1, 2015, the System shall prepare and implement |
a voluntary defined contribution plan for up to 5% of eligible |
active Tier 1 members. The System shall determine the 5% cap by |
the number of active Tier 1 members on the effective date of |
this Section. The defined contribution plan developed under |
this Section shall be a plan that aggregates employer and |
employee contributions in individual participant accounts |
which, after meeting any other requirements, are used for |
payouts after retirement in accordance with this Section and |
any other applicable laws. |
As used in this Section, "defined benefit plan" means the |
retirement plan available under this Article to Tier 1 members |
|
who have not made the election authorized under this Section. |
(1) Under the defined contribution plan, an active Tier |
1 member of this System could elect to cease accruing |
benefits in the defined benefit plan under this Article and |
begin accruing benefits for future service in the defined |
contribution plan. Service credit under the defined |
contribution plan may be used for determining retirement |
eligibility under the defined benefit plan. An active Tier |
1 member who elects to cease accruing benefits in his or |
her defined benefit plan shall be prohibited from |
purchasing service credit on or after the date of his or |
her election. A Tier 1 member making the irrevocable |
election provided under this Section shall not receive |
interest accruals to his or her Rule 2 benefit on or after |
the date of his or her election. |
(2) Participants in the defined contribution plan |
shall pay employee contributions at the same rate as other |
participants under this Article as determined by the |
System. |
(3) State contributions shall be paid into the accounts |
of all participants in the defined contribution plan at a |
uniform rate, expressed as a percentage of earnings and |
determined for each year. This rate shall be no higher than |
the employer's normal cost for Tier 1 members in the |
defined benefit plan for that year, as determined by the |
System and expressed as a percentage of earnings, and shall |
|
be no lower than 3% of earnings. The State shall adjust |
this rate annually. |
(4) The defined contribution plan shall require 5 years |
of participation in the defined contribution plan before |
vesting in State contributions. If the participant fails to |
vest in them, the State contributions, and the earnings |
thereon, shall be forfeited. |
(5) The defined contribution plan may provide for |
participants in the plan to be eligible for the defined |
disability benefits available to other participants under |
this Article. If it does, the System shall reduce the |
employee contributions credited to the member's defined |
contribution plan account by an amount determined by the |
System to cover the cost of offering such benefits. |
(6) The defined contribution plan shall provide a |
variety of options for investments. These options shall |
include investments handled by the System as well as |
private sector investment options. |
(7) The defined contribution plan shall provide a |
variety of options for payouts to retirees and their |
survivors. |
(8) To the extent authorized under federal law and as |
authorized by the System, the plan shall allow former |
participants in the plan to transfer or roll over employee |
and vested State contributions, and the earnings thereon, |
into other qualified retirement plans. |
|
(9) The System shall reduce the employee contributions |
credited to the member's defined contribution plan account |
by an amount determined by the System to cover the cost of |
offering these benefits and any applicable administrative |
fees. |
(b) Only persons who are active Tier 1 members of the |
System on the effective date of this Section are eligible to |
participate in the defined contribution plan. Participation in |
the defined contribution plan shall be limited to the first 5% |
of eligible persons who elect to participate. The election to |
participate in the defined contribution plan is voluntary and |
irrevocable. |
(c) An eligible Tier 1 employee may irrevocably elect to |
participate in the defined contribution plan by filing with the |
System a written application to participate that is received by |
the System prior to its determination that 5% of eligible |
persons have elected to participate in the defined contribution |
plan. |
When the System first determines that 5% of eligible |
persons have elected to participate in the defined contribution |
plan, the System shall provide notice to previously eligible |
employees that the plan is no longer available and shall cease |
accepting applications to participate. |
(d) The System shall make a good faith effort to contact |
each active Tier 1 member who is eligible to participate in the |
defined contribution plan. The System shall mail information |
|
describing the option to join the defined contribution plan to |
each of these employees to his or her last known address on |
file with the System. If the employee is not responsive to |
other means of contact, it is sufficient for the System to |
publish the details of the option on its website. |
Upon request for further information describing the |
option, the System shall provide employees with information |
from the System before exercising the option to join the plan, |
including information on the impact to their vested benefits or |
non-vested service. The individual consultation shall include |
projections of the member's defined benefits at retirement or |
earlier termination of service and the value of the member's |
account at retirement or earlier termination of service. The |
System shall not provide advice or counseling with respect to |
whether the employee should exercise the option. The System |
shall inform Tier 1 employees who are eligible to participate |
in the defined contribution plan that they may also wish to |
obtain information and counsel relating to their option from |
any other available source, including but not limited to labor |
organizations, private counsel, and financial advisors. |
(e) In no event shall the System, its staff, its authorized |
representatives, or the Board be liable for any information |
given to an employee under this Section. The System may |
coordinate with the Illinois Department of Central Management |
Services and other retirement systems administering a defined |
contribution plan in accordance with this amendatory Act of the |
|
98th General Assembly to provide information concerning the |
impact of the option set forth in this Section. |
(f) Notwithstanding any other provision of this Section, no |
person shall begin participating in the defined contribution |
plan until it has attained qualified plan status and received |
all necessary approvals from the U.S. Internal Revenue Service. |
(g) The System shall report on its progress under this |
Section, including the available details of the defined |
contribution plan and the System's plans for informing eligible |
Tier 1 members about the plan, to the Governor and the General |
Assembly on or before January 15, 2015. |
(h) If an active Tier 1 member has not made an election |
under Section 15-134.5 of this Code, then the plan prescribed |
under this Section shall not apply to that Tier 1 member and |
that Tier 1 member shall remain eligible to make the election |
prescribed under Section 15-134.5. |
(i) The intent of this amendatory Act of the 98th General |
Assembly is to ensure that the State's normal cost of |
participation in the defined contribution plan is similar, and |
if possible equal, to the State's normal cost of participation |
in the defined benefit plan, unless a lower State's normal cost |
is necessary to ensure cost neutrality. |
(40 ILCS 5/15-201 new) |
Sec. 15-201. Defined contribution plan; termination. If |
the defined contribution plan is terminated or becomes |
|
inoperative pursuant to law, then each participant in the plan |
shall automatically be deemed to have been a contributing Tier |
1 member participating in the System's defined benefit plan |
during the time in which he or she participated in the defined |
contribution plan, and for that purpose the System shall be |
entitled to recover the amounts in the participant's defined |
contribution accounts.
|
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
|
Sec. 16-106. Teacher. "Teacher": The following |
individuals, provided
that, for employment prior to July 1, |
1990, they are employed on a
full-time basis, or if not |
full-time, on a permanent and continuous basis
in a position in |
which services are expected to be rendered for at least
one |
school term:
|
(1) Any educational, administrative, professional or |
other staff employed
in the public common schools included |
within this system in a position
requiring certification |
under the law governing the certification of
teachers;
|
(2) Any educational, administrative, professional or |
other staff employed
in any facility of the Department of |
Children and Family Services or the
Department of Human |
Services, in a position requiring certification under
the |
law governing the certification of teachers, and any person |
who (i)
works in such a position for the Department of |
Corrections, (ii) was a member
of this System on May 31, |
|
1987, and (iii) did not elect to become a member of
the |
State Employees' Retirement System pursuant to Section |
14-108.2 of this
Code; except that "teacher" does not |
include any person who (A) becomes
a security employee of |
the Department of Human Services, as defined in
Section |
14-110, after June 28, 2001 (the effective date of Public |
Act
92-14), or (B) becomes a member of the State Employees'
|
Retirement System pursuant to Section 14-108.2c of this |
Code;
|
(3) Any regional superintendent of schools, assistant |
regional
superintendent of schools, State Superintendent |
of Education; any person
employed by the State Board of |
Education as an executive; any executive of
the boards |
engaged in the service of public common school education in
|
school districts covered under this system of which the |
State
Superintendent of Education is an ex-officio member;
|
(4) Any employee of a school board association |
operating in compliance
with Article 23 of the School Code |
who is certificated under the law
governing the |
certification of teachers , provided that he or she becomes |
such an employee before the effective date of this |
amendatory Act of the 98th General Assembly ;
|
(5) Any person employed by the retirement system
who:
|
(i) was an employee of and a participant in the |
system on August 17,
2001 (the effective date of Public |
Act 92-416), or
|
|
(ii) becomes an employee of the system on or after |
August 17, 2001;
|
(6) Any educational, administrative, professional or |
other staff
employed by and under the supervision and |
control of a regional
superintendent of schools, provided |
such employment position requires the
person to be |
certificated under the law governing the certification of
|
teachers and is in an educational program serving 2 or more |
districts in
accordance with a joint agreement authorized |
by the School Code or by federal
legislation;
|
(7) Any educational, administrative, professional or |
other staff employed
in an educational program serving 2 or |
more school districts in accordance
with a joint agreement |
authorized by the School Code or by federal
legislation and |
in a position requiring certification under the laws
|
governing the certification of teachers;
|
(8) Any officer or employee of a statewide teacher |
organization or
officer of a national teacher organization |
who is certified under the law
governing certification of |
teachers, provided: (i) the individual had
previously |
established creditable service under this Article, (ii) |
the
individual files with the system an irrevocable |
election to become a member before the effective date of |
this amendatory Act of the 97th General Assembly,
(iii) the |
individual does not receive credit for such service under |
any
other Article of this Code, and (iv) the individual |
|
first became an officer or employee of the teacher |
organization and becomes a member before the effective date |
of this amendatory Act of the 97th General Assembly;
|
(9) Any educational, administrative, professional, or |
other staff
employed in a charter school operating in |
compliance with the Charter
Schools Law who is certificated |
under the law governing the certification
of teachers;
|
(10) Any person employed, on the effective date of this |
amendatory Act of the 94th General Assembly, by the |
Macon-Piatt Regional Office of Education in a |
birth-through-age-three pilot program receiving funds |
under Section 2-389 of the School Code who is required by |
the Macon-Piatt Regional Office of Education to hold a |
teaching certificate, provided that the Macon-Piatt |
Regional Office of Education makes an election, within 6 |
months after the effective date of this amendatory Act of |
the 94th General Assembly, to have the person participate |
in the system. Any service established prior to the |
effective date of this amendatory Act of the 94th General |
Assembly for service as an employee of the Macon-Piatt |
Regional Office of Education in a birth-through-age-three |
pilot program receiving funds under Section 2-389 of the |
School Code shall be considered service as a teacher if |
employee and employer contributions have been received by |
the system and the system has not refunded those |
contributions.
|
|
An annuitant receiving a retirement annuity under this |
Article or under
Article 17 of this Code who is employed by a |
board of education
or other employer as permitted under Section |
16-118
or 16-150.1 is not a "teacher" for purposes of this |
Article. A person who
has received a single-sum retirement |
benefit under Section 16-136.4 of this
Article is not a |
"teacher" for purposes of this Article.
|
(Source: P.A. 97-651, eff. 1-5-12; 98-463, eff. 8-16-13.)
|
(40 ILCS 5/16-106.4 new) |
Sec. 16-106.4. Tier 1 member. "Tier 1 member": A member |
under this Article who first became a member or participant |
before January 1, 2011 under any reciprocal retirement system |
or pension fund established under this Code other than a |
retirement system or pension fund established under Article 2, |
3, 4, 5, 6, or 18 of this Code.
|
(40 ILCS 5/16-112) (from Ch. 108 1/2, par. 16-112)
|
Sec. 16-112. Regular interest. |
"Regular interest": |
(a) For computations
based upon prior service credits, |
interest at the following rates compounded
annually: For |
periods prior to July 1, 1947, 4% per year; for periods from
|
July 1, 1947 through June 30, 1971, 3% per year; for periods |
from July 1,
1971 through June 30, 1977 at the rate of 4% per |
year; for periods from
July 1, 1977 through June 30, 1981, 5% |
|
per year; for periods after June
30, 1981 through June 30, |
2014 , 6% per year.
|
(b) For computations based upon membership service |
credits, interest at
the following rates, compounded annually: |
For periods prior to July 1,
1971, 3% per year; for periods |
from July 1, 1971 through June 30, 1977, 4%
per year; for |
periods from July 1, 1977 through June 30, 1981, 5% per year;
|
for periods after June 30, 1981 through June 30, 2014 , 6% per |
year.
|
(c) For a fiscal year that begins on or after July 1, 2014, |
for all computations, the interest rate of 30-year United |
States Treasury bonds on July 1 of that given fiscal year, plus |
75 basis points. |
(Source: P.A. 83-1440.)
|
(40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
|
Sec. 16-121. Salary. "Salary": The actual compensation |
received by a teacher during any
school year and recognized by |
the system in accordance with
rules of the board. For purposes |
of this Section, "school year" includes
the regular school term |
plus any additional period for which a teacher is
compensated |
and such compensation is recognized by the rules of the board.
|
In the case of a person who first becomes a member on or |
after
the effective date of this amendatory Act of the 98th |
General
Assembly, "salary" shall not include any payment for |
unused
sick or vacation time. |
|
Notwithstanding any other provision of this Code, the
|
annual salary of a Tier 1 member for the purposes of this Code |
shall
not exceed, for periods of service on or after the |
effective
date of this amendatory Act of the 98th General |
Assembly, the
greater of (i) the annual limitation determined |
from time to time
under subsection (b-5) of Section 1-160 of |
this Code, (ii) the annualized
salary of the Tier 1 member on |
that effective date, or (iii) the annualized salary of the Tier |
1 member immediately preceding the expiration, renewal, or |
amendment of an employment contract or collective bargaining |
agreement in effect on that effective date. |
(Source: P.A. 84-1028.)
|
(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
|
Sec. 16-127. Computation of creditable service.
|
(a) Each member shall receive regular credit for all
|
service as a teacher from the date membership begins, for which
|
satisfactory evidence is supplied and all contributions have |
been paid.
|
(b) The following periods of service shall earn optional |
credit and
each member shall receive credit for all such |
service for which
satisfactory evidence is supplied and all |
contributions have been paid as
of the date specified:
|
(1) Prior service as a teacher.
|
(2) Service in a capacity essentially similar or |
equivalent to that of a
teacher, in the public common |
|
schools in school districts in this State not
included |
within the provisions of this System, or of any other |
State,
territory, dependency or possession of the United |
States, or in schools
operated by or under the auspices of |
the United States, or under the
auspices of any agency or |
department of any other State, and service during
any |
period of professional speech correction or special |
education
experience for a public agency within this State |
or any other State,
territory, dependency or possession of |
the United States, and service prior
to February 1, 1951 as |
a recreation worker for the Illinois Department of
Public |
Safety, for a period not exceeding the lesser of 2/5 of the |
total
creditable service of the member or 10 years. The |
maximum service of 10
years which is allowable under this |
paragraph shall be reduced by the
service credit which is |
validated by other retirement systems under
paragraph (i) |
of Section 15-113 and paragraph 1 of Section 17-133. Credit
|
granted under this paragraph may not be used in |
determination of a
retirement annuity or disability |
benefits unless the member has at least 5
years of |
creditable service earned subsequent to this employment |
with one
or more of the following systems: Teachers' |
Retirement System of the State
of Illinois, State |
Universities Retirement System, and the Public School
|
Teachers' Pension and Retirement Fund of Chicago. Whenever |
such service
credit exceeds the maximum allowed for all |
|
purposes of this Article, the
first service rendered in |
point of time shall be considered.
The changes to this |
subdivision (b)(2) made by Public Act 86-272 shall
apply |
not only to persons who on or after its effective date |
(August 23,
1989) are in service as a teacher under the |
System, but also to persons
whose status as such a teacher |
terminated prior to such effective date,
whether or not |
such person is an annuitant on that date.
|
(3) Any periods immediately following teaching |
service, under this
System or under Article 17, (or |
immediately following service prior to
February 1, 1951 as |
a recreation worker for the Illinois Department of
Public |
Safety) spent in active service with the military forces of |
the
United States; periods spent in educational programs |
that prepare for
return to teaching sponsored by the |
federal government following such
active military service; |
if a teacher returns to teaching service within
one |
calendar year after discharge or after the completion of |
the
educational program, a further period, not exceeding |
one calendar year,
between time spent in military service |
or in such educational programs and
the return to |
employment as a teacher under this System; and a period of |
up
to 2 years of active military service not immediately |
following employment
as a teacher.
|
The changes to this Section and Section 16-128 relating |
to military
service made by P.A. 87-794 shall apply not |
|
only to persons who on or after its
effective date are in |
service as a teacher under the System, but also to
persons |
whose status as a teacher terminated prior to that date, |
whether or not
the person is an annuitant on that date. In |
the case of an annuitant who
applies for credit allowable |
under this Section for a period of military
service that |
did not immediately follow employment, and who has made the
|
required contributions for such credit, the annuity shall |
be recalculated to
include the additional service credit, |
with the increase taking effect on the
date the System |
received written notification of the annuitant's intent to
|
purchase the credit, if payment of all the required |
contributions is made
within 60 days of such notice, or |
else on the first annuity payment date
following the date |
of payment of the required contributions. In calculating
|
the automatic annual increase for an annuity that has been |
recalculated under
this Section, the increase attributable |
to the additional service allowable
under P.A. 87-794 shall |
be included in the calculation of automatic annual
|
increases accruing after the effective date of the |
recalculation.
|
Credit for military service shall be determined as |
follows: if entry
occurs during the months of July, August, |
or September and the member was a
teacher at the end of the |
immediately preceding school term, credit shall
be granted |
from July 1 of the year in which he or she entered service; |
|
if
entry occurs during the school term and the teacher was |
in teaching service
at the beginning of the school term, |
credit shall be granted from July 1 of
such year. In all |
other cases where credit for military service is allowed,
|
credit shall be granted from the date of entry into the |
service.
|
The total period of military service for which credit |
is granted shall
not exceed 5 years for any member unless |
the service: (A) is validated
before July 1, 1964, and (B) |
does not extend beyond July 1, 1963. Credit
for military |
service shall be granted under this Section only if not |
more
than 5 years of the military service for which credit |
is granted under this
Section is used by the member to |
qualify for a military retirement
allotment from any branch |
of the armed forces of the United States. The
changes to |
this subdivision (b)(3) made by Public Act 86-272 shall |
apply
not only to persons who on or after its effective |
date (August 23, 1989)
are in service as a teacher under |
the System, but also to persons whose
status as such a |
teacher terminated prior to such effective date, whether
or |
not such person is an annuitant on that date.
|
(4) Any periods served as a member of the General |
Assembly.
|
(5)(i) Any periods for which a teacher, as defined in |
Section
16-106, is granted a leave of absence, provided he |
or she returns to teaching
service creditable under this |
|
System or the State Universities Retirement
System |
following the leave; (ii) periods during which a teacher is
|
involuntarily laid off from teaching, provided he or she |
returns to teaching
following the lay-off; (iii) periods |
prior to July 1, 1983 during which
a teacher ceased covered |
employment due to pregnancy, provided that the teacher
|
returned to teaching service creditable under this System |
or the State
Universities Retirement System following the |
pregnancy and submits evidence
satisfactory to the Board |
documenting that the employment ceased due to
pregnancy; |
and (iv) periods prior to July 1, 1983 during which a |
teacher
ceased covered employment for the purpose of |
adopting an infant under 3 years
of age or caring for a |
newly adopted infant under 3 years of age, provided that
|
the teacher returned to teaching service creditable under |
this System or the
State Universities Retirement System |
following the adoption and submits
evidence satisfactory |
to the Board documenting that the employment ceased for
the |
purpose of adopting an infant under 3 years of age or |
caring for a newly
adopted infant under 3 years of age. |
However, total credit under this
paragraph (5) may not |
exceed 3 years.
|
Any qualified member or annuitant may apply for credit |
under item (iii)
or (iv) of this paragraph (5) without |
regard to whether service was
terminated before the |
effective date of this amendatory Act of 1997. In the case |
|
of an annuitant who establishes credit under item (iii)
or |
(iv), the annuity shall be recalculated to include the |
additional
service credit. The increase in annuity shall |
take effect on the date the
System receives written |
notification of the annuitant's intent to purchase the
|
credit, if the required evidence is submitted and the |
required contribution
paid within 60 days of that |
notification, otherwise on the first annuity
payment date |
following the System's receipt of the required evidence and
|
contribution. The increase in an annuity recalculated |
under this provision
shall be included in the calculation |
of automatic annual increases in the
annuity accruing after |
the effective date of the recalculation.
|
Optional credit may be purchased under this subsection |
(b)(5) for
periods during which a teacher has been granted |
a leave of absence pursuant
to Section 24-13 of the School |
Code. A teacher whose service under this
Article terminated |
prior to the effective date of P.A. 86-1488 shall be
|
eligible to purchase such optional credit. If a teacher who |
purchases this
optional credit is already receiving a |
retirement annuity under this Article,
the annuity shall be |
recalculated as if the annuitant had applied for the leave
|
of absence credit at the time of retirement. The difference |
between the
entitled annuity and the actual annuity shall |
be credited to the purchase of
the optional credit. The |
remainder of the purchase cost of the optional credit
shall |
|
be paid on or before April 1, 1992.
|
The change in this paragraph made by Public Act 86-273 |
shall
be applicable to teachers who retire after June 1, |
1989, as well as to
teachers who are in service on that |
date.
|
(6) For a person who first becomes a member before the
|
effective date of this amendatory Act of the 98th General
|
Assembly, any Any days of unused and uncompensated |
accumulated sick leave earned
by a teacher. The service |
credit granted under this paragraph shall be the
ratio of |
the number of unused and uncompensated accumulated sick |
leave days
to 170 days, subject to a maximum of 2 years of |
service
credit. Prior to the member's retirement, each |
former employer shall
certify to the System the number of |
unused and uncompensated accumulated
sick leave days |
credited to the member at the time of termination of |
service.
The period of unused sick leave shall not be |
considered in determining
the effective date of |
retirement. A member is not required to make
contributions |
in order to obtain service credit for unused sick leave.
|
Credit for sick leave shall, at retirement, be granted |
by the System
for any retiring regional or assistant |
regional superintendent of schools who first becomes a
|
member before the effective date of this amendatory Act of
|
the 98th General Assembly
at the rate of 6 days per year of |
creditable service or portion thereof
established while |
|
serving as such superintendent or assistant
|
superintendent.
|
(7) Periods prior to February 1, 1987 served as an |
employee of the
Illinois Mathematics and Science Academy |
for which credit has not been
terminated under Section |
15-113.9 of this Code.
|
(8) Service as a substitute teacher for work performed
|
prior to July 1, 1990.
|
(9) Service as a part-time teacher for work performed
|
prior to July 1, 1990.
|
(10) Up to 2 years of employment with Southern Illinois |
University -
Carbondale from September 1, 1959 to August |
31, 1961, or with Governors
State University from September |
1, 1972 to August 31, 1974, for which the
teacher has no |
credit under Article 15. To receive credit under this item
|
(10), a teacher must apply in writing to the Board and pay |
the required
contributions before May 1, 1993 and have at |
least 12 years of service
credit under this Article.
|
(b-1) A member may establish optional credit for up to 2 |
years of service
as a teacher or administrator employed by a |
private school recognized by the
Illinois State Board of |
Education, provided that the teacher (i) was certified
under |
the law governing the certification of teachers at the time the |
service
was rendered, (ii) applies in writing on or after |
August 1, 2009 and on or before
August 1, 2012, (iii) supplies |
satisfactory evidence of the employment, (iv)
completes at |
|
least 10 years of contributing service as a teacher as defined |
in
Section 16-106, and (v) pays the contribution required in |
subsection (d-5) of
Section 16-128. The member may apply for |
credit under this subsection and pay
the required contribution |
before completing the 10 years of contributing
service required |
under item (iv), but the credit may not be used until the
item |
(iv) contributing service requirement has been met.
|
(c) The service credits specified in this Section shall be |
granted only
if: (1) such service credits are not used for |
credit in any other statutory
tax-supported public employee |
retirement system other than the federal Social
Security |
program; and (2) the member makes the required contributions as
|
specified in Section 16-128. Except as provided in subsection |
(b-1) of
this Section, the service credit shall be effective as |
of the date the
required contributions are completed.
|
Any service credits granted under this Section shall |
terminate upon
cessation of membership for any cause.
|
Credit may not be granted under this Section covering any |
period for
which an age retirement or disability retirement |
allowance has been paid.
|
(Source: P.A. 96-546, eff. 8-17-09.)
|
(40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
|
Sec. 16-132. Retirement annuity eligibility. |
(a) A member who has at least 20 years of creditable |
service is entitled to a
retirement annuity upon or after |
|
attainment of age 55.
A member who has at least 10 but less |
than 20 years of creditable service is
entitled to a retirement |
annuity upon or after attainment of age 60.
A member who has at |
least 5 but less than 10 years of creditable service is
|
entitled to a retirement annuity upon or after attainment of |
age 62.
A member who (i) has earned during the period |
immediately preceding the last
day of service at least one year |
of contributing creditable service as an
employee of a |
department as defined in Section 14-103.04, (ii) has earned at
|
least 5 years of contributing creditable service as an employee |
of a department
as defined in Section 14-103.04, and (iii) |
retires on or after January 1, 2001
is entitled to a retirement |
annuity upon or after attainment of an age which,
when added to |
the number of years of his or her total creditable service,
|
equals at least 85. Portions of years shall be counted as |
decimal equivalents.
|
A member who is eligible to receive a retirement annuity of |
at least 74.6% of
final average salary and will attain age 55 |
on or before December 31 during the
year which commences on |
July 1 shall be deemed to attain age 55 on the
preceding June |
1.
|
(b) Notwithstanding subsection (a) of this Section, for a |
Tier 1 member who begins receiving a retirement annuity under |
this Section on or after July 1, 2014, the required retirement |
age under subsection (a) is increased as follows, based on the |
Tier 1 member's age on June 1, 2014: |
|
(1) If he or she is at least age 46 on June 1, 2014, |
then the required retirement ages under subsection (a) |
remain unchanged. |
(2) If he or she is at least age 45 but less than age 46 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 4 months. |
(3) If he or she is at least age 44 but less than age 45 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 8 months. |
(4) If he or she is at least age 43 but less than age 44 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 12 months. |
(5) If he or she is at least age 42 but less than age 43 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 16 months. |
(6) If he or she is at least age 41 but less than age 42 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 20 months. |
(7) If he or she is at least age 40 but less than age 41 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 24 months. |
(8) If he or she is at least age 39 but less than age 40 |
on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 28 months. |
(9) If he or she is at least age 38 but less than age 39 |
on June 1, 2014, then the required retirement ages under |
|
subsection (a) are increased by 32 months. |
(10) If he or she is at least age 37 but less than age |
38 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 36 months. |
(11) If he or she is at least age 36 but less than age |
37 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 40 months. |
(12) If he or she is at least age 35 but less than age |
36 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 44 months. |
(13) If he or she is at least age 34 but less than age |
35 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 48 months. |
(14) If he or she is at least age 33 but less than age |
34 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 52 months. |
(15) If he or she is at least age 32 but less than age |
33 on June 1, 2014, then the required retirement ages under |
subsection (a) are increased by 56 months. |
(16) If he or she is less than age 32 on June 1, 2014, |
then the required retirement ages under subsection (a) are |
increased by 60 months. |
Notwithstanding Section 1-103.1, this subsection (b) |
applies without regard to whether or not the Tier 1 member is |
in active service under this Article on or after the effective |
date of this amendatory Act of the 98th General Assembly. |
|
(c) A member meeting the above eligibility conditions is |
entitled to a retirement
annuity upon written application to |
the board setting forth the date the member
wishes the |
retirement annuity to commence. However, the effective date of |
the
retirement annuity shall be no earlier than the day |
following the last day of
creditable service, regardless of the |
date of official termination of
employment.
|
(d) To be eligible for a retirement annuity, a member shall |
not be employed
as a teacher in the schools included under this |
System or under Article 17,
except (i) as provided in Section |
16-118 or 16-150.1, (ii) if
the member is disabled (in which |
event, eligibility for salary must cease),
or (iii) if the |
System is required by federal law to commence
payment due to |
the member's age; the changes to this sentence made by Public |
Act 93-320 this
amendatory Act of the 93rd General Assembly |
apply without
regard to whether the member terminated |
employment before or after its
effective date.
|
(Source: P.A. 93-320, eff. 7-23-03.)
|
(40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
|
Sec. 16-133. Retirement annuity; amount.
|
(a) The amount of the retirement annuity shall be (i) in |
the case of a person who first became a teacher under this |
Article before July 1, 2005, the larger of the
amounts |
determined under paragraphs (A) and (B) below, or (ii) in the |
case of a person who first becomes a teacher under this Article |
|
on or after July 1, 2005, the amount determined under the |
applicable provisions of paragraph (B):
|
(A) An amount consisting of the sum of the following:
|
(1) An amount that can be provided on an |
actuarially equivalent basis
(using the rate of |
regular interest in effect at the time of retirement |
for retirements occurring on or after July 1, 2014) by |
the member's accumulated contributions at the time of |
retirement; and
|
(2) The sum of (i) the amount that can be provided |
on an actuarially
equivalent basis (using the rate of |
regular interest in effect at the time of retirement |
for retirements occurring on or after July 1, 2014) by |
the member's accumulated contributions representing
|
service prior to July 1, 1947, and (ii) the amount that |
can be provided on
an actuarially equivalent basis |
(using the rate of regular interest in effect at the |
time of retirement for retirements occurring on or |
after July 1, 2014) by the amount obtained by |
multiplying 1.4
times the member's accumulated |
contributions covering service subsequent to
June 30, |
1947; and
|
(3) If there is prior service, 2 times the amount |
that would have been
determined under subparagraph (2) |
of paragraph (A) above on account of
contributions |
which would have been made during the period of prior |
|
service
creditable to the member had the System been in |
operation and had the
member made contributions at the |
contribution rate in effect prior to
July 1, 1947.
|
Notwithstanding any other provision of this paragraph |
(A), a teacher's retirement annuity calculated under this |
paragraph (A) shall not be less than the retirement annuity |
that teacher would have received under this paragraph (A) |
had he or she retired during the fiscal year preceding the |
effective date of this amendatory Act of the 98th General |
Assembly. |
This paragraph (A) does not apply to a person who first |
becomes a teacher under this Article on or after July 1, |
2005.
|
(B) An amount consisting of the greater of the |
following:
|
(1) For creditable service earned before July 1, |
1998 that has not
been augmented under Section |
16-129.1: 1.67% of final average salary for
each of the |
first 10 years of creditable service, 1.90% of final |
average salary
for each year in excess of 10 but not |
exceeding 20, 2.10% of final average
salary for each |
year in excess of 20 but not exceeding 30, and 2.30% of |
final
average salary for each year in excess of 30; and
|
For creditable service earned on or after July 1, |
1998 by a member who
has at least 24 years of |
creditable service on July 1, 1998 and who
does not |
|
elect to augment service under Section 16-129.1: 2.2% |
of final
average salary for each year of creditable |
service earned on or after July 1,
1998 but before the |
member reaches a total of 30 years of creditable |
service
and 2.3% of final average salary for each year |
of creditable service earned
on or after July 1, 1998 |
and after the member reaches a total of 30 years of
|
creditable service; and
|
For all other creditable service: 2.2% of final |
average salary
for each year of creditable service; or
|
(2) 1.5% of final average salary for each year of
|
creditable service plus the sum $7.50 for each of the |
first 20 years of
creditable service.
|
The amount of the retirement annuity determined under this |
paragraph (B)
shall be reduced by 1/2 of 1% for each month |
that the member is less than
age 60 at the time the |
retirement annuity begins. However, this reduction
shall |
not apply (i) if the member has at least 35 years of |
creditable service,
or (ii) if the member retires on |
account of disability under Section 16-149.2
of this |
Article with at least 20 years of creditable service, or |
(iii) if
the member (1) has earned during the period |
immediately preceding the last
day of service at least one |
year of contributing creditable service as an
employee of a |
department as defined in Section 14-103.04, (2) has earned |
at
least 5 years of contributing creditable service as an |
|
employee of a department
as defined in Section 14-103.04, |
(3) retires on or after January 1, 2001, and
(4) retires |
having attained an age which, when added to the number of |
years of
his or her total creditable service, equals at |
least 85. Portions of years
shall be counted as decimal |
equivalents.
|
(b) For purposes of this Section, final average salary |
shall be the
average salary for the highest 4 consecutive years |
within the last 10 years
of creditable service as determined |
under rules of the board. The minimum
final average salary |
shall be considered to be $2,400 per year.
|
In the determination of final average salary for members |
other than
elected officials and their appointees when such |
appointees are allowed by
statute, that part of a member's |
salary for any year beginning after June
30, 1979 which exceeds |
the member's annual full-time salary rate with the
same |
employer for the preceding year by more than 20% shall be |
excluded.
The exclusion shall not apply in any year in which |
the member's creditable
earnings are less than 50% of the |
preceding year's mean salary for downstate
teachers as |
determined by the survey of school district salaries provided |
in
Section 2-3.103 of the School Code.
|
(c) In determining the amount of the retirement annuity |
under paragraph
(B) of this Section, a fractional year shall be |
granted proportional credit.
|
(d) The retirement annuity determined under paragraph (B) |
|
of this Section
shall be available only to members who render |
teaching service after July
1, 1947 for which member |
contributions are required, and to annuitants who
re-enter |
under the provisions of Section 16-150.
|
(e) The maximum retirement annuity provided under |
paragraph (B) of this
Section shall be 75% of final average |
salary.
|
(f) A member retiring after the effective date of this |
amendatory Act
of 1998 shall receive a pension equal to 75% of |
final average salary if the
member is qualified to receive a |
retirement annuity equal to at least 74.6%
of final average |
salary under this Article or as proportional annuities under
|
Article 20 of this Code.
|
(Source: P.A. 94-4, eff. 6-1-05.)
|
(40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
|
Sec. 16-133.1. Automatic annual increase in annuity.
|
(a) This subsection (a) is subject to subsections (a-1) and |
(a-2). Each member with creditable service and retiring on or |
after August 26,
1969 is entitled to the automatic annual |
increases in annuity provided under
this Section while |
receiving a retirement annuity or disability retirement
|
annuity from the system.
|
An annuitant shall first be entitled to an initial increase |
under this
Section on the January 1 next following the first |
anniversary of retirement,
or January 1 of the year next |
|
following attainment of age 61, whichever is
later. At such |
time, the system shall pay an initial increase determined as
|
follows:
|
(1) 1.5% of the originally granted retirement annuity |
or disability
retirement annuity multiplied by the number |
of years elapsed, if any, from the date of retirement
until |
January 1, 1972, plus
|
(2) 2% of the originally granted annuity multiplied by |
the number of
years elapsed, if any, from the date of |
retirement or January
1, 1972, whichever is later, until |
January 1, 1978, plus
|
(3) 3% of the originally granted annuity multiplied by |
the number
of years elapsed from the date of retirement or |
January 1,
1978, whichever is later, until the effective |
date of the initial
increase.
|
However, the initial annual increase calculated under this |
Section for the
recipient of a disability retirement annuity |
granted under Section 16-149.2
shall be reduced by an amount |
equal to the total of all increases in that
annuity received |
under Section 16-149.5 (but not exceeding 100% of the amount
of |
the initial increase otherwise provided under this Section).
|
Following the initial increase, automatic annual increases |
in annuity shall
be payable on each January 1 thereafter during |
the lifetime of the annuitant,
determined as a percentage of |
the originally granted retirement annuity
or disability |
retirement annuity for increases granted prior to January
1, |
|
1990, and calculated as a percentage of the total amount of |
annuity,
including previous increases under this Section, for |
increases granted on
or after January 1, 1990, as follows: 1.5% |
for periods prior to January 1,
1972, 2% for periods after |
December 31, 1971 and prior to January 1, 1978,
and 3% for |
periods after December 31, 1977.
|
(a-1) Notwithstanding subsection (a), but subject to the |
provisions of subsection (a-2), all automatic increases |
payable under subsection (a) on or after the effective date of |
this amendatory Act of the 98th General Assembly shall be |
calculated as 3% of the lesser of (1) the total annuity
payable |
at the time of the increase, including previous
increases |
granted, or (2) $1,000 multiplied by the number of years of |
creditable service upon which the annuity is based; however, in |
the case of an initial increase under subsection (a) that is |
subject to this subsection: |
(i) if more than one year has elapsed from the date of |
retirement to the effective date of the initial
increase |
under this Section, the applicable percentage shall be the |
sum of the percentages for each such elapsed year; and |
(ii) in the case of a disability retirement annuity |
granted under Section 16-149.2, the initial increase shall |
be subject to the reduction provided in subsection (a) for |
increases previously received under Section 16-149.5. |
Beginning January 1, 2016, the $1,000 referred to in item |
(2) of this subsection (a-1) shall be increased on each January |
|
1 by the annual unadjusted percentage increase (but not less |
than zero) in the consumer price index-u for the 12 months |
ending with the preceding September; these adjustments shall be |
cumulative and compounded.
For the purposes of this subsection |
(a-1), "consumer price index-u" means the index published by |
the Bureau of Labor Statistics of the United States Department |
of Labor that measures the average change in prices of goods |
and services purchased by all urban consumers, United States |
city average, all items, 1982-84 = 100. The new dollar amount |
resulting from each annual adjustment shall be determined by |
the Public Pension Division of the Department of Insurance and |
made available to the System by November 1 of each year. |
This subsection (a-1) is applicable without regard to |
whether the person is in service on or after the effective date |
of this amendatory Act of the 98th General Assembly. |
(a-2) Notwithstanding subsections (a) and (a-1), for an |
active or inactive Tier 1 member who has not begun to receive a |
retirement annuity under this Article before July 1, 2014: |
(1) the second automatic annual increase payable under |
subsection (a) shall be at the rate of 0% of the total |
annuity payable at the time of the increase if he or she is |
at least age 50 on the effective date of this amendatory |
Act; |
(2) the second, fourth, and sixth automatic annual |
increases payable under subsection (a) shall be at the rate |
of 0% of the total annuity payable at the time of the |
|
increase if he or she is at least age 47 but less than age |
50 on the effective date of this amendatory Act; |
(3) the second, fourth, sixth, and eighth automatic |
annual increases payable under subsection (a) shall be at |
the rate of 0% of the total annuity payable at the time of |
the increase if he or she is at least age 44 but less than |
age 47 on the effective date of this amendatory Act; and |
(4) the second, fourth, sixth, eighth, and tenth |
automatic annual increases payable under subsection (a) |
shall be at the rate of 0% of the total annuity payable at |
the time of the increase if he or she is less than age 44 on |
the effective date of this amendatory Act. |
For the purposes of Section 1-103.1, this subsection (a-2) |
is applicable without regard to whether the person is in |
service on or after the effective date of this amendatory Act |
of the 98th General Assembly. |
(b) The automatic annual increases in annuity provided |
under this Section
shall not be applicable unless a member has |
made contributions toward such
increases for a period |
equivalent to one full year of creditable service.
If a member |
contributes for service performed after August 26, 1969 but
the |
member becomes an annuitant before such contributions amount to |
one
full year's contributions based on the salary at the date |
of retirement,
he or she may pay the necessary balance of the |
contributions to the system
and be eligible for the automatic |
annual increases in annuity provided under
this Section.
|
|
(c) Each member shall make contributions toward the cost of |
the automatic
annual increases in annuity as provided under |
Section 16-152.
|
(d) An annuitant receiving a retirement annuity or |
disability retirement
annuity on July 1, 1969, who subsequently |
re-enters service as a teacher
is eligible for the automatic |
annual increases in annuity provided under
this Section if he |
or she renders at least one year of creditable service
|
following the latest re-entry.
|
(e) In addition to the automatic annual increases in |
annuity provided
under this Section, an annuitant who meets the |
service requirements of this
Section and whose retirement |
annuity or disability retirement annuity began
on or before |
January 1, 1971 shall receive, on January 1, 1981, an increase
|
in the annuity then being paid of one dollar per month for each |
year of
creditable service. On January 1, 1982, an annuitant |
whose retirement
annuity or disability retirement annuity |
began on or before January 1, 1977
shall receive an increase in |
the annuity then being paid of one dollar per
month for each |
year of creditable service.
|
On January 1, 1987, any annuitant whose retirement annuity |
began
on or before January 1, 1977, shall receive an increase |
in the monthly
retirement annuity equal to 8¢ per year of |
creditable service times the
number of years that have elapsed |
since the annuity began.
|
(Source: P.A. 91-927, eff. 12-14-00.)
|
|
(40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
|
Sec. 16-133.2. Early retirement without discount. |
(a) A member
retiring after June 1, 1980 and on or before |
June 30, 2005 (or as provided in subsection (b) of this |
Section), and
applying for a retirement annuity within 6 months |
of the last day of
teaching for which retirement contributions |
were required,
may elect at the time of application for a |
retirement annuity, to make
a one time member contribution to |
the System and thereby
avoid the reduction in the retirement |
annuity for retirement before age
60 specified in paragraph (B) |
of Section 16-133. The exercise of the
election shall also |
obligate the last employer to make a one time
non-refundable |
contribution to the System. Substitute teachers wishing to
|
exercise this election must teach 85 or more days in one school |
term with
one employer, who shall be deemed the last employer |
for purposes of this
Section. The last day of teaching with |
that employer must be within 6
months of the date of |
application for retirement. All substitute
teaching credit |
applied toward the required 85 days must be earned after
June |
30, 1990.
|
The one time member and employer contributions shall be a |
percentage of
the retiring member's highest annual salary rate |
used in the determination
of the average salary for retirement |
annuity purposes. However, when
determining the one-time |
member and employer contributions, that part of a
member's |
|
salary with the same employer which exceeds the annual salary |
rate
for the preceding year by more than 20% shall be excluded. |
The member
contribution shall be at the rate of 7% for the |
lesser of the following 2
periods: (1) for each year that the |
member is less than age 60; or (2) for
each year that the |
member's creditable service is less than 35 years. If a
member |
is at least age 55 and has at least 34 years of creditable |
service, no
member or employer contribution for the early |
retirement option shall be
required. The employer contribution |
shall be at the rate of 20% for each year
the member is under |
age 60.
|
Upon receipt of the application and election, the System |
shall determine
the one time employee and employer |
contributions required. The member
contribution shall be |
credited to the individual account of the member and
the |
employer contribution shall be credited to the Benefit Trust |
Reserve. The
provisions of this subsection (a) providing for |
the avoidance of the reduction in retirement annuity shall
not |
be applicable until the member's contribution, if any, has been |
received
by the System; however, the date such contributions |
are received shall not be
considered in determining the |
effective date of retirement.
|
The number of members working for a single employer who may
|
retire under this subsection or subsection (b) in any year may |
be limited at the option
of the employer to a specified |
percentage of those eligible, not less
than 30%, with the right |
|
to participate to be allocated among those
applying on the |
basis of seniority in the service of the employer.
|
(b) The provisions of subsection (a) of this Section shall |
remain in effect for a member retiring after June 30, 2005 and |
on or before July 1, 2007, provided that the member satisfies |
both of the following requirements: |
(1) the member notified his or her employer of intent |
to retire under this Article on or before the effective |
date of this amendatory Act of the 94th General Assembly |
under the terms of a contract or collective bargaining |
agreement entered into, amended, or renewed with the |
employer on or before the effective date of this amendatory |
Act of the 94th General Assembly; and
|
(2) the effective date of the member's retirement is on |
or before July 1, 2007. |
The member's employer must give evidence of the member's |
notification by providing to the System:
|
(i) a copy of the member's notification to the employer |
or the record of that notification;
|
(ii) an affidavit signed by the member and the |
employer, verifying the notification; and
|
(iii) any additional documentation that the System may |
require.
|
(c) Except as otherwise provided in subsection (b), and |
subject to the provisions of Section 16-176, a member retiring |
on or after July 1, 2005 and on or before June 30, 2013 (or |
|
January 1, 2014 in the case of a member who has filed a notice |
of intent to retire with his or her employer on or before June |
30, 2013 and attains age 55 during the period July 1, 2013 |
through December 31, 2013), and applying for a retirement |
annuity within 6 months of the last day of teaching for which |
retirement contributions were required, and whose last day of |
teaching is on or before June 30, 2013, may elect at the time |
of application for a retirement annuity, to make a one-time |
member contribution to the System and thereby avoid the |
reduction in the retirement annuity for retirement before age |
60 specified in paragraph (B) of Section 16-133. The exercise |
of the election shall also obligate the last employer to make a |
one-time nonrefundable contribution to the System. Substitute |
teachers wishing to exercise this election must teach 85 or |
more days in one school term with one employer, who shall be |
deemed the last employer for purposes of this Section. The last |
day of teaching with that employer must be within 6 months of |
the date of application for retirement. All substitute teaching |
credit applied toward the required 85 days must be earned after |
June 30, 1990. |
The one-time member and employer contributions shall be a |
percentage of the retiring member's highest annual salary rate |
used in the determination of the average salary for retirement |
annuity purposes. However, when determining the one-time |
member and employer contributions, that part of a member's |
salary with the same employer which exceeds the annual salary |
|
rate for the preceding year by more than 20% shall be excluded. |
The member contribution shall be at the rate of 11.5% for the |
lesser of the following 2 periods: (1) for each year that the |
member is less than age 60; or (2) for each year that the |
member's creditable service is less than 35 years. The employer |
contribution shall be at the rate of 23.5% for each year the |
member is under age 60. |
Upon receipt of the application and election, the System |
shall determine the one-time employee and employer |
contributions required. The member contribution shall be |
credited to the individual account of the member and the |
employer contribution shall be credited to the Benefit Trust |
Reserve. The avoidance of the reduction in retirement annuity |
provided under this subsection (c) is not applicable until the |
member's contribution, if any, has been received by the System; |
however, the date that contribution is received shall not be |
considered in determining the effective date of retirement.
|
The number of members working for a single employer who may |
retire under this subsection (c) in any year may be limited at |
the option of the employer to a specified percentage of those |
eligible, not less than 10%, with the right to participate to |
be allocated among those applying on the basis of seniority in |
the service of the employer. |
For persons not qualifying for the early retirement without |
discount option under this subsection (c), the option is |
extended for 3 years under subsection (d), but subject to the |
|
changes in eligibility, conditions, and required contributions |
provided in that subsection. |
(d) A member who is not eligible for the early retirement |
without discount option under subsection (c) may qualify for |
the early retirement without discount option under this |
subsection (d) if the member (1) retires on or after July 1, |
2013 and before July 1, 2016, (2) applies for a retirement |
annuity within 6 months of the last day of teaching for which |
retirement contributions were required, and (3) receives a |
certification of eligibility under this subsection from the |
member's last employer. Substitute teachers wishing to |
exercise this election must teach 85 or more days in one school |
term with one employer, who shall be deemed the last employer |
for purposes of this Section. The last day of teaching with |
that employer must be within 6 months of the date of |
application for retirement. All substitute teaching credit |
applied toward the required 85 days must be earned after June |
30, 1990. |
A qualifying member may elect at the time of application |
for a retirement annuity to make a one-time member contribution |
to the System and thereby avoid the reduction in the retirement |
annuity for retirement before age 60 specified in paragraph (B) |
of Section 16-133. The exercise of this election shall also |
obligate the last employer to make a one-time nonrefundable |
contribution to the System. |
The one-time member and employer contributions shall be a |
|
percentage of the retiring member's highest annual salary rate |
used in the determination of the average salary for retirement |
annuity purposes. However, when determining the one-time |
member and employer contributions, that part of a member's |
salary with the same employer which exceeds the annual salary |
rate for the preceding year by more than 20% shall be excluded. |
The member contribution shall be at the rate of 14.4% for the |
lesser of the following 2 periods: (1) for each year that the |
member is less than age 60; or (2) for each year that the |
member's creditable service is less than 35 years. The employer |
contribution shall be at the rate of 29.3% for each year the |
member is under age 60. |
Upon receipt of the application, election, and |
certification of eligibility, the System shall determine the |
one-time employee and employer contributions required. The |
member contribution shall be credited to the individual account |
of the member and the employer contribution shall be credited |
to the Benefit Trust Reserve. The avoidance of the reduction in |
retirement annuity provided under this subsection (d) is not |
applicable until the member's contribution has been received by |
the System; however, the date that contribution is received |
shall not be considered in determining the effective date of |
retirement. |
Eligibility to retire under this subsection (d) shall |
require the approval of the member's last employer under this |
Article, granted in accordance with criteria adopted by that |
|
employer with the mutual consent of the bargaining agent of a |
majority of the members employed by that employer. If the |
employer grants its approval for a member to retire under this |
subsection (d), the employer shall submit a certification of |
eligibility for the member in a manner prescribed by the |
System. |
The early retirement without discount option under this |
subsection (d) terminates on July 1, 2016. |
For participants to whom subsection (b) of Section 16-132 |
applies, the references to age 60 in this subsection are |
increased as provided in subsection (b) of Section 16-132. |
(Source: P.A. 98-42, eff. 6-28-13.)
|
(40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
|
Sec. 16-136.1. Annual increase for certain annuitants. (a) |
Any annuitant receiving a retirement annuity on June 30, 1969 |
and
any member retiring after June 30, 1969 shall be eligible |
for the annual
increases provided under this Section provided |
the annuitant is ineligible
for the automatic annual increase |
in annuity provided under Section
16-133.1, and provided |
further that (1) retirement occurred at age 55 or over
and was |
based on 5 or more years of creditable service or (2) if
|
retirement occurred prior to age 55, the retirement annuity
was |
based on 20 or more years of creditable service.
|
(b) This subsection (b) is subject to subsections (b-1) and |
(b-2). An annuitant entitled to increases under this Section |
|
shall be entitled
to the initial increase as of the later of: |
(1) January 1 following
attainment of age 65, (2) January 1 |
following the first anniversary
of retirement, or (3) the first |
day of the month following receipt of
the required qualifying |
contribution from the annuitant. The initial monthly
increase |
shall be computed on the basis of the period elapsed between
|
the later of the date of last retirement or attainment of age |
50 and the
date of qualification for the initial increase, at |
the rate of 1 1/2% of
the original monthly retirement annuity |
per year for periods
prior to September 1, 1971, and at the |
rate of 2% per year for periods between
September 1, 1971 and |
September 1, 1978, and at the rate of 3% per year
for periods |
thereafter.
|
An annuitant who has received an initial increase under |
this Section,
shall be entitled, on each January 1 following |
the granting of the
initial increase, to an increase of 3% of |
the original monthly retirement
annuity for increases granted |
prior to January 1, 1990, and equal to 3%
of the total annuity, |
including previous increases under this Section, for
increases |
granted on or after January 1, 1990. The original monthly
|
retirement annuity for computations under this subsection
(b) |
shall be considered to be $83.34 for any annuitant entitled to |
benefits
under Section 16-134. The minimum original disability |
retirement annuity
for computations under this subsection (b) |
shall be considered to be
$33.34 per month for any annuitant |
retired on account of disability.
|
|
(b-1) Notwithstanding subsection (b), but subject to the |
provisions of subsection (b-2), all automatic increases |
payable under subsection (b) on or after the effective date of |
this amendatory Act of the 98th General Assembly shall be |
calculated as 3% of the lesser of (1) the total annuity
payable |
at the time of the increase, including previous
increases |
granted, or (2) $1,000 multiplied by the number of years of |
creditable service upon which the annuity is based; however, in |
the case of an initial increase under subsection (b) that is |
subject to this subsection, if more than one year has elapsed |
from the date of retirement to the effective date of the |
initial
increase under this Section, the applicable percentage |
shall be the sum of the percentages for each such elapsed year. |
Beginning January 1, 2016, the $1,000 referred to in item |
(2) of this subsection (b-1) shall be increased on each January |
1 by the annual unadjusted percentage increase (but not less |
than zero) in the consumer price index-u for the 12 months |
ending with the preceding September; these adjustments shall be |
cumulative and compounded.
For the purposes of this subsection |
(b-1), "consumer price index-u" means the index published by |
the Bureau of Labor Statistics of the United States Department |
of Labor that measures the average change in prices of goods |
and services purchased by all urban consumers, United States |
city average, all items, 1982-84 = 100. The new dollar amount |
resulting from each annual adjustment shall be determined by |
the Public Pension Division of the Department of Insurance and |
|
made available to the System by November 1 of each year. |
This subsection (b-1) is applicable without regard to |
whether the person is in service on or after the effective date |
of this amendatory Act of the 98th General Assembly. |
(b-2) Notwithstanding subsections (b) and (b-1), for an |
active or inactive Tier 1 member who is subject to this Section |
and has not begun to receive a retirement annuity under this |
Article before July 1, 2014: |
(1) the second automatic annual increase payable under |
subsection (b) shall be at the rate of 0% of the total |
annuity payable at the time of the increase if he or she is |
at least age 50 on the effective date of this amendatory |
Act; |
(2) the second, fourth, and sixth automatic annual |
increases payable under subsection (b) shall be at the rate |
of 0% of the total annuity payable at the time of the |
increase if he or she is at least age 47 but less than age |
50 on the effective date of this amendatory Act; |
(3) the second, fourth, sixth, and eighth automatic |
annual increases payable under subsection (b) shall be at |
the rate of 0% of the total annuity payable at the time of |
the increase if he or she is at least age 44 but less than |
age 47 on the effective date of this amendatory Act; and |
(4) the second, fourth, sixth, eighth, and tenth |
automatic annual increases payable under subsection (b) |
shall be at the rate of 0% of the total annuity payable at |
|
the time of the increase if he or she is less than age 44 on |
the effective date of this amendatory Act. |
For the purposes of Section 1-103.1, this subsection (b-2) |
is applicable without regard to whether the person is in |
service on or after the effective date of this amendatory Act |
of the 98th General Assembly. |
(c) An annuitant who otherwise qualifies for annual
|
increases under this Section must make a one-time payment of
1% |
of the monthly final average salary for each full year of the |
creditable
service forming the basis of the retirement annuity |
or, if the
retirement annuity was not computed using final |
average salary, 1% of the
original monthly retirement annuity |
for each full year of service
forming the basis of the |
retirement annuity.
|
(d) In addition to other increases which may be provided by |
this Section,
regardless of creditable service, annuitants not |
meeting
the service requirements of Section 16-133.1 and whose |
retirement annuity
began on or before January 1, 1971 shall |
receive, on January
1, 1981, an increase in the retirement |
annuity then being paid
of one dollar per month for each year |
of creditable service forming
the basis of the retirement |
allowance. On January 1, 1982, annuitants
whose retirement |
annuity began on or before January 1, 1977, shall receive
an |
increase in the retirement annuity then being paid of one |
dollar per
month for each year of creditable service.
|
On January 1, 1987, any annuitant whose retirement annuity |
|
began
on or before January 1, 1977, shall receive an increase |
in the monthly
retirement annuity equal to 8¢ per year of |
creditable service times the
number of years that have elapsed |
since the annuity began.
|
(Source: P.A. 86-273.)
|
(40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
|
Sec. 16-152. Contributions by members.
|
(a) Except as provided in subsection (a-5), each Each |
member shall make contributions for membership service to this
|
System as follows:
|
(1) Effective July 1, 1998, contributions of 7.50% of |
salary towards the
cost of the retirement annuity. Such |
contributions shall be deemed "normal
contributions".
|
(2) Effective July 1, 1969 and, in the case of Tier 1 |
members, ending on June 30, 2014 , contributions of 1/2 of |
1% of salary toward
the cost of the automatic annual |
increase in retirement annuity provided
under Section |
16-133.1.
|
(3) Effective July 24, 1959, contributions of 1% of |
salary towards the
cost of survivor benefits. Such |
contributions shall not be credited to
the individual |
account of the member and shall not be subject to refund
|
except as provided under Section 16-143.2.
|
(4) Effective July 1, 2005, contributions of 0.40% of |
salary toward the cost of the early retirement without |
|
discount option provided under Section 16-133.2. This |
contribution shall cease upon termination of the early |
retirement without discount option as provided in Section |
16-133.2.
|
(a-5) Beginning July 1, 2014, in lieu of the contribution |
otherwise required under paragraph (1) of subsection (a), each |
Tier 1 member shall contribute 7% of salary towards the cost of |
the retirement annuity. Contributions made pursuant to this |
subsection (a-5) shall be deemed "normal contributions". |
(b) The minimum required contribution for any year of |
full-time
teaching service shall be $192.
|
(c) Contributions shall not be required of any annuitant |
receiving
a retirement annuity who is given employment as |
permitted under Section 16-118 or 16-150.1.
|
(d) A person who (i) was a member before July 1, 1998, (ii) |
retires with
more than 34 years of creditable service, and |
(iii) does not elect to qualify
for the augmented rate under |
Section 16-129.1 shall be entitled, at the time
of retirement, |
to receive a partial refund of contributions made under this
|
Section for service occurring after the later of June 30, 1998 |
or attainment
of 34 years of creditable service, in an amount |
equal to 1.00% of the salary
upon which those contributions |
were based.
|
(e) A member's contributions toward the cost of early |
retirement without discount made under item (a)(4) of this |
Section shall not be refunded if the member has elected early |
|
retirement without discount under Section 16-133.2 and has |
begun to receive a retirement annuity under this Article |
calculated in accordance with that election. Otherwise, a |
member's contributions toward the cost of early retirement |
without discount made under item (a)(4) of this Section shall |
be refunded according to whichever one of the following |
circumstances occurs first: |
(1) The contributions shall be refunded to the member, |
without interest, within 120 days after the member's |
retirement annuity commences, if the member does not elect |
early retirement without discount under Section 16-133.2. |
(2) The contributions shall be included, without |
interest, in any refund claimed by the member under Section |
16-151. |
(3) The contributions shall be refunded to the member's |
designated beneficiary (or if there is no beneficiary, to |
the member's estate), without interest, if the member dies |
without having begun to receive a retirement annuity under |
this Article. |
(4) The contributions shall be refunded to the member, |
without interest, if the early retirement without discount |
option provided under subsection (d) of Section 16-133.2 is |
terminated. In that event, the System shall provide to the |
member, within 120 days after the option is terminated, an |
application for a refund of those contributions. |
(Source: P.A. 98-42, eff. 6-28-13; 98-92, eff. 7-16-13; revised |
|
7-23-13.)
|
(40 ILCS 5/16-152.5 new) |
Sec. 16-152.5. Use of contributions for health care |
subsidies. The System shall not use any contribution received |
by the System under this Article to provide a subsidy for the |
cost of participation in a retiree health care program.
|
(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
|
Sec. 16-158. Contributions by State and other employing |
units.
|
(a) The State shall make contributions to the System by |
means of
appropriations from the Common School Fund and other |
State funds of amounts
which, together with other employer |
contributions, employee contributions,
investment income, and |
other income, will be sufficient to meet the cost of
|
maintaining and administering the System on a 100% 90% funded |
basis in accordance
with actuarial recommendations by the end |
of State fiscal year 2044 .
|
The Board shall determine the amount of State contributions |
required for
each fiscal year on the basis of the actuarial |
tables and other assumptions
adopted by the Board and the |
recommendations of the actuary, using the formula
in subsection |
(b-3).
|
(a-1) Annually, on or before November 15 through until |
November 15, 2011, the Board shall certify to the
Governor the |
|
amount of the required State contribution for the coming fiscal
|
year. The certification under this subsection (a-1) shall |
include a copy of the actuarial recommendations
upon which it |
is based and shall specifically identify the System's projected |
State normal cost for that fiscal year .
|
On or before May 1, 2004, the Board shall recalculate and |
recertify to
the Governor the amount of the required State |
contribution to the System for
State fiscal year 2005, taking |
into account the amounts appropriated to and
received by the |
System under subsection (d) of Section 7.2 of the General
|
Obligation Bond Act.
|
On or before July 1, 2005, the Board shall recalculate and |
recertify
to the Governor the amount of the required State
|
contribution to the System for State fiscal year 2006, taking |
into account the changes in required State contributions made |
by this amendatory Act of the 94th General Assembly.
|
On or before April 1, 2011, the Board shall recalculate and |
recertify to the Governor the amount of the required State |
contribution to the System for State fiscal year 2011, applying |
the changes made by Public Act 96-889 to the System's assets |
and liabilities as of June 30, 2009 as though Public Act 96-889 |
was approved on that date. |
(a-5) On or before November 1 of each year, beginning |
November 1, 2012, the Board shall submit to the State Actuary, |
the Governor, and the General Assembly a proposed certification |
of the amount of the required State contribution to the System |
|
for the next fiscal year, along with all of the actuarial |
assumptions, calculations, and data upon which that proposed |
certification is based. On or before January 1 of each year, |
beginning January 1, 2013, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
assumptions that the Board must consider before finalizing its |
certification of the required State contributions. |
On or before January 15, 2013 and each January 15 |
thereafter, the Board shall certify to the Governor and the |
General Assembly the amount of the required State contribution |
for the next fiscal year. The certification shall include a |
copy of the actuarial
recommendations upon which it is based |
and shall specifically identify the System's projected State |
normal cost for that fiscal year. The Board's certification |
must note any deviations from the State Actuary's recommended |
changes, the reason or reasons for not following the State |
Actuary's recommended changes, and the fiscal impact of not |
following the State Actuary's recommended changes on the |
required State contribution. |
(a-10) For purposes of Section (c-5) of Section 20 of the |
Budget Stabilization Act, on or before November 1 of each year |
beginning November 1, 2014, the Board shall determine the |
amount of the State contribution to the System that would have |
been required for the next fiscal year if this amendatory Act |
of the 98th General Assembly had not taken effect, using the |
|
best and most recent available data but based on the law in |
effect on May 31, 2014. The Board shall submit to the State |
Actuary, the Governor, and the General Assembly a proposed |
certification, along with the relevant law, actuarial |
assumptions, calculations, and data upon which that |
certification is based. On or before January 1, 2015 and every |
January 1 thereafter, the State Actuary shall issue a |
preliminary report concerning the proposed certification and |
identifying, if necessary, recommended changes in actuarial |
assumptions that the Board must consider before finalizing its |
certification. On or before January 15, 2015 and every January |
1 thereafter, the Board shall certify to the Governor and the |
General Assembly the amount of the State contribution to the |
System that would have been required for the next fiscal year |
if this amendatory Act of the 98th General Assembly had not |
taken effect, using the best and most recent available data but |
based on the law in effect on May 31, 2014. The Board's |
certification must note any deviations from the State Actuary's |
recommended changes, the reason or reasons for not following |
the State Actuary's recommended changes, and the impact of not |
following the State Actuary's recommended changes. |
(b) Through State fiscal year 1995, the State contributions |
shall be
paid to the System in accordance with Section 18-7 of |
the School Code.
|
(b-1) Beginning in State fiscal year 1996, on the 15th day |
of each month,
or as soon thereafter as may be practicable, the |
|
Board shall submit vouchers
for payment of State contributions |
to the System, in a total monthly amount of
one-twelfth of the |
required annual State contribution certified under
subsection |
(a-1).
From the
effective date of this amendatory Act of the |
93rd General Assembly
through June 30, 2004, the Board shall |
not submit vouchers for the
remainder of fiscal year 2004 in |
excess of the fiscal year 2004
certified contribution amount |
determined under this Section
after taking into consideration |
the transfer to the System
under subsection (a) of Section |
6z-61 of the State Finance Act.
These vouchers shall be paid by |
the State Comptroller and
Treasurer by warrants drawn on the |
funds appropriated to the System for that
fiscal year.
|
If in any month the amount remaining unexpended from all |
other appropriations
to the System for the applicable fiscal |
year (including the appropriations to
the System under Section |
8.12 of the State Finance Act and Section 1 of the
State |
Pension Funds Continuing Appropriation Act) is less than the |
amount
lawfully vouchered under this subsection, the |
difference shall be paid from the
Common School Fund under the |
continuing appropriation authority provided in
Section 1.1 of |
the State Pension Funds Continuing Appropriation Act.
|
(b-2) Allocations from the Common School Fund apportioned |
to school
districts not coming under this System shall not be |
diminished or affected by
the provisions of this Article.
|
(b-3) For State fiscal years 2015 through 2044, the minimum |
contribution
to the System to be made by the State for each |
|
fiscal year shall be an amount
determined by the System to be |
equal to the sum of (1) the State's portion of the projected |
normal cost for that fiscal year, plus (2) an amount sufficient |
to bring the total assets of the
System up to 100% of the total |
actuarial liabilities of the System by the end of
State fiscal |
year 2044. In making these determinations, the required State
|
contribution shall be calculated each year as a level |
percentage of payroll
over the years remaining to and including |
fiscal year 2044 and shall be
determined under the projected |
unit cost method for fiscal year 2015 and under the entry age |
normal actuarial cost method for fiscal years 2016 through |
2044. |
For State fiscal years 2012 through 2014 2045 , the minimum |
contribution
to the System to be made by the State for each |
fiscal year shall be an amount
determined by the System to be |
sufficient to bring the total assets of the
System up to 90% of |
the total actuarial liabilities of the System by the end of
|
State fiscal year 2045. In making these determinations, the |
required State
contribution shall be calculated each year as a |
level percentage of payroll
over the years remaining to and |
including fiscal year 2045 and shall be
determined under the |
projected unit credit actuarial cost method.
|
For State fiscal years 1996 through 2005, the State |
contribution to the
System, as a percentage of the applicable |
employee payroll, shall be increased
in equal annual increments |
so that by State fiscal year 2011, the State is
contributing at |
|
the rate required under this Section; except that in the
|
following specified State fiscal years, the State contribution |
to the System
shall not be less than the following indicated |
percentages of the applicable
employee payroll, even if the |
indicated percentage will produce a State
contribution in |
excess of the amount otherwise required under this subsection
|
and subsection (a), and notwithstanding any contrary |
certification made under
subsection (a-1) before the effective |
date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
2003; and
13.56% in FY 2004.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution for State fiscal year 2006 is |
$534,627,700.
|
Notwithstanding any other provision of this Article, the |
total required State
contribution for State fiscal year 2007 is |
$738,014,500.
|
For each of State fiscal years 2008 through 2009, the State |
contribution to
the System, as a percentage of the applicable |
employee payroll, shall be
increased in equal annual increments |
from the required State contribution for State fiscal year |
2007, so that by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
Notwithstanding any other provision of this Article, the |
total required State contribution for State fiscal year 2010 is |
$2,089,268,000 and shall be made from the proceeds of bonds |
|
sold in fiscal year 2010 pursuant to Section 7.2 of the General |
Obligation Bond Act, less (i) the pro rata share of bond sale |
expenses determined by the System's share of total bond |
proceeds, (ii) any amounts received from the Common School Fund |
in fiscal year 2010, and (iii) any reduction in bond proceeds |
due to the issuance of discounted bonds, if applicable. |
Notwithstanding any other provision of this Article, the
|
total required State contribution for State fiscal year 2011 is
|
the amount recertified by the System on or before April 1, 2011 |
pursuant to subsection (a-1) of this Section and shall be made |
from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
Section 7.2 of the General
Obligation Bond Act, less (i) the |
pro rata share of bond sale
expenses determined by the System's |
share of total bond
proceeds, (ii) any amounts received from |
the Common School Fund
in fiscal year 2011, and (iii) any |
reduction in bond proceeds
due to the issuance of discounted |
bonds, if applicable. This amount shall include, in addition to |
the amount certified by the System, an amount necessary to meet |
employer contributions required by the State as an employer |
under paragraph (e) of this Section, which may also be used by |
the System for contributions required by paragraph (a) of |
Section 16-127. |
Beginning in State fiscal year 2045, the minimum State |
contribution for each fiscal year shall be the amount needed to |
maintain the total assets of the System at 100% of the total |
actuarial liabilities of the System. |
|
Beginning in State fiscal year 2046, the minimum State |
contribution for
each fiscal year shall be the amount needed to |
maintain the total assets of
the System at 90% of the total |
actuarial liabilities of the System.
|
Amounts received by the System pursuant to Section 25 of |
the Budget Stabilization Act or Section 8.12 of the State |
Finance Act in any fiscal year do not reduce and do not |
constitute payment of any portion of the minimum State |
contribution required under this Article in that fiscal year. |
Such amounts shall not reduce, and shall not be included in the |
calculation of, the required State contributions under this |
Article in any future year until the System has reached a |
funding ratio of at least 100% 90% . A reference in this Article |
to the "required State contribution" or any substantially |
similar term does not include or apply to any amounts payable |
to the System under Section 25 of the Budget Stabilization Act. |
Notwithstanding any other provision of this Section, the |
required State
contribution for State fiscal year 2005 and for |
fiscal year 2008 and each fiscal year thereafter through State |
fiscal year 2014 , as
calculated under this Section and
|
certified under subsection (a-1), shall not exceed an amount |
equal to (i) the
amount of the required State contribution that |
would have been calculated under
this Section for that fiscal |
year if the System had not received any payments
under |
subsection (d) of Section 7.2 of the General Obligation Bond |
Act, minus
(ii) the portion of the State's total debt service |
|
payments for that fiscal
year on the bonds issued in fiscal |
year 2003 for the purposes of that Section 7.2, as determined
|
and certified by the Comptroller, that is the same as the |
System's portion of
the total moneys distributed under |
subsection (d) of Section 7.2 of the General
Obligation Bond |
Act. In determining this maximum for State fiscal years 2008 |
through 2010, however, the amount referred to in item (i) shall |
be increased, as a percentage of the applicable employee |
payroll, in equal increments calculated from the sum of the |
required State contribution for State fiscal year 2007 plus the |
applicable portion of the State's total debt service payments |
for fiscal year 2007 on the bonds issued in fiscal year 2003 |
for the purposes of Section 7.2 of the General
Obligation Bond |
Act, so that, by State fiscal year 2011, the
State is |
contributing at the rate otherwise required under this Section.
|
(c) Payment of the required State contributions and of all |
pensions,
retirement annuities, death benefits, refunds, and |
other benefits granted
under or assumed by this System, and all |
expenses in connection with the
administration and operation |
thereof, are obligations of the State.
|
If members are paid from special trust or federal funds |
which are
administered by the employing unit, whether school |
district or other
unit, the employing unit shall pay to the |
System from such
funds the full accruing retirement costs based |
upon that
service, as determined by the System. Employer |
contributions, based on
salary paid to members from federal |
|
funds, may be forwarded by the distributing
agency of the State |
of Illinois to the System prior to allocation, in an
amount |
determined in accordance with guidelines established by such
|
agency and the System.
|
(d) Effective July 1, 1986, any employer of a teacher as |
defined in
paragraph (8) of Section 16-106 shall pay the |
employer's normal cost
of benefits based upon the teacher's |
service, in addition to
employee contributions, as determined |
by the System. Such employer
contributions shall be forwarded |
monthly in accordance with guidelines
established by the |
System.
|
However, with respect to benefits granted under Section |
16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
of Section 16-106, the
employer's contribution shall be 12% |
(rather than 20%) of the member's
highest annual salary rate |
for each year of creditable service granted, and
the employer |
shall also pay the required employee contribution on behalf of
|
the teacher. For the purposes of Sections 16-133.4 and |
16-133.5, a teacher
as defined in paragraph (8) of Section |
16-106 who is serving in that capacity
while on leave of |
absence from another employer under this Article shall not
be |
considered an employee of the employer from which the teacher |
is on leave.
|
(e) Beginning July 1, 1998, every employer of a teacher
|
shall pay to the System an employer contribution computed as |
follows:
|
|
(1) Beginning July 1, 1998 through June 30, 1999, the |
employer
contribution shall be equal to 0.3% of each |
teacher's salary.
|
(2) Beginning July 1, 1999 and thereafter, the employer
|
contribution shall be equal to 0.58% of each teacher's |
salary.
|
The school district or other employing unit may pay these |
employer
contributions out of any source of funding available |
for that purpose and
shall forward the contributions to the |
System on the schedule established
for the payment of member |
contributions.
|
These employer contributions are intended to offset a |
portion of the cost
to the System of the increases in |
retirement benefits resulting from this
amendatory Act of 1998.
|
Each employer of teachers is entitled to a credit against |
the contributions
required under this subsection (e) with |
respect to salaries paid to teachers
for the period January 1, |
2002 through June 30, 2003, equal to the amount paid
by that |
employer under subsection (a-5) of Section 6.6 of the State |
Employees
Group Insurance Act of 1971 with respect to salaries |
paid to teachers for that
period.
|
The additional 1% employee contribution required under |
Section 16-152 by
this amendatory Act of 1998 is the |
responsibility of the teacher and not the
teacher's employer, |
unless the employer agrees, through collective bargaining
or |
otherwise, to make the contribution on behalf of the teacher.
|
|
If an employer is required by a contract in effect on May |
1, 1998 between the
employer and an employee organization to |
pay, on behalf of all its full-time
employees
covered by this |
Article, all mandatory employee contributions required under
|
this Article, then the employer shall be excused from paying |
the employer
contribution required under this subsection (e) |
for the balance of the term
of that contract. The employer and |
the employee organization shall jointly
certify to the System |
the existence of the contractual requirement, in such
form as |
the System may prescribe. This exclusion shall cease upon the
|
termination, extension, or renewal of the contract at any time |
after May 1,
1998.
|
(f) If the amount of a teacher's salary for any school year |
used to determine final average salary exceeds the member's |
annual full-time salary rate with the same employer for the |
previous school year by more than 6%, the teacher's employer |
shall pay to the System, in addition to all other payments |
required under this Section and in accordance with guidelines |
established by the System, the present value of the increase in |
benefits resulting from the portion of the increase in salary |
that is in excess of 6%. This present value shall be computed |
by the System on the basis of the actuarial assumptions and |
tables used in the most recent actuarial valuation of the |
System that is available at the time of the computation. If a |
teacher's salary for the 2005-2006 school year is used to |
determine final average salary under this subsection (f), then |
|
the changes made to this subsection (f) by Public Act 94-1057 |
shall apply in calculating whether the increase in his or her |
salary is in excess of 6%. For the purposes of this Section, |
change in employment under Section 10-21.12 of the School Code |
on or after June 1, 2005 shall constitute a change in employer. |
The System may require the employer to provide any pertinent |
information or documentation.
The changes made to this |
subsection (f) by this amendatory Act of the 94th General |
Assembly apply without regard to whether the teacher was in |
service on or after its effective date.
|
Whenever it determines that a payment is or may be required |
under this subsection, the System shall calculate the amount of |
the payment and bill the employer for that amount. The bill |
shall specify the calculations used to determine the amount |
due. If the employer disputes the amount of the bill, it may, |
within 30 days after receipt of the bill, apply to the System |
in writing for a recalculation. The application must specify in |
detail the grounds of the dispute and, if the employer asserts |
that the calculation is subject to subsection (g) or (h) of |
this Section, must include an affidavit setting forth and |
attesting to all facts within the employer's knowledge that are |
pertinent to the applicability of that subsection. Upon |
receiving a timely application for recalculation, the System |
shall review the application and, if appropriate, recalculate |
the amount due.
|
The employer contributions required under this subsection |
|
(f) may be paid in the form of a lump sum within 90 days after |
receipt of the bill. If the employer contributions are not paid |
within 90 days after receipt of the bill, then interest will be |
charged at a rate equal to the System's annual actuarially |
assumed rate of return on investment compounded annually from |
the 91st day after receipt of the bill. Payments must be |
concluded within 3 years after the employer's receipt of the |
bill.
|
(g) This subsection (g) applies only to payments made or |
salary increases given on or after June 1, 2005 but before July |
1, 2011. The changes made by Public Act 94-1057 shall not |
require the System to refund any payments received before
July |
31, 2006 (the effective date of Public Act 94-1057). |
When assessing payment for any amount due under subsection |
(f), the System shall exclude salary increases paid to teachers |
under contracts or collective bargaining agreements entered |
into, amended, or renewed before June 1, 2005.
|
When assessing payment for any amount due under subsection |
(f), the System shall exclude salary increases paid to a |
teacher at a time when the teacher is 10 or more years from |
retirement eligibility under Section 16-132 or 16-133.2.
|
When assessing payment for any amount due under subsection |
(f), the System shall exclude salary increases resulting from |
overload work, including summer school, when the school |
district has certified to the System, and the System has |
approved the certification, that (i) the overload work is for |
|
the sole purpose of classroom instruction in excess of the |
standard number of classes for a full-time teacher in a school |
district during a school year and (ii) the salary increases are |
equal to or less than the rate of pay for classroom instruction |
computed on the teacher's current salary and work schedule.
|
When assessing payment for any amount due under subsection |
(f), the System shall exclude a salary increase resulting from |
a promotion (i) for which the employee is required to hold a |
certificate or supervisory endorsement issued by the State |
Teacher Certification Board that is a different certification |
or supervisory endorsement than is required for the teacher's |
previous position and (ii) to a position that has existed and |
been filled by a member for no less than one complete academic |
year and the salary increase from the promotion is an increase |
that results in an amount no greater than the lesser of the |
average salary paid for other similar positions in the district |
requiring the same certification or the amount stipulated in |
the collective bargaining agreement for a similar position |
requiring the same certification.
|
When assessing payment for any amount due under subsection |
(f), the System shall exclude any payment to the teacher from |
the State of Illinois or the State Board of Education over |
which the employer does not have discretion, notwithstanding |
that the payment is included in the computation of final |
average salary.
|
(h) When assessing payment for any amount due under |
|
subsection (f), the System shall exclude any salary increase |
described in subsection (g) of this Section given on or after |
July 1, 2011 but before July 1, 2014 under a contract or |
collective bargaining agreement entered into, amended, or |
renewed on or after June 1, 2005 but before July 1, 2011. |
Notwithstanding any other provision of this Section, any |
payments made or salary increases given after June 30, 2014 |
shall be used in assessing payment for any amount due under |
subsection (f) of this Section.
|
(i) The System shall prepare a report and file copies of |
the report with the Governor and the General Assembly by |
January 1, 2007 that contains all of the following information: |
(1) The number of recalculations required by the |
changes made to this Section by Public Act 94-1057 for each |
employer. |
(2) The dollar amount by which each employer's |
contribution to the System was changed due to |
recalculations required by Public Act 94-1057. |
(3) The total amount the System received from each |
employer as a result of the changes made to this Section by |
Public Act 94-4. |
(4) The increase in the required State contribution |
resulting from the changes made to this Section by Public |
Act 94-1057.
|
(j) For purposes of determining the required State |
contribution to the System, the value of the System's assets |
|
shall be equal to the actuarial value of the System's assets, |
which shall be calculated as follows: |
As of June 30, 2008, the actuarial value of the System's |
assets shall be equal to the market value of the assets as of |
that date. In determining the actuarial value of the System's |
assets for fiscal years after June 30, 2008, any actuarial |
gains or losses from investment return incurred in a fiscal |
year shall be recognized in equal annual amounts over the |
5-year period following that fiscal year. |
(k) For purposes of determining the required State |
contribution to the system for a particular year, the actuarial |
value of assets shall be assumed to earn a rate of return equal |
to the system's actuarially assumed rate of return. |
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
6-18-12; 97-813, eff. 7-13-12.)
|
(40 ILCS 5/16-158.2 new) |
Sec. 16-158.2. Obligations of State; funding guarantee. |
(a) Beginning July 1, 2014, the State shall be obligated to |
contribute to the System in each State fiscal year an amount |
not less than the sum of (i) the State's normal cost for the |
year and (ii) the portion of the unfunded accrued liability |
assigned to that year by law. Notwithstanding any other |
provision of law, if the State fails to pay an amount required |
under this subsection, it shall be the obligation of the Board |
|
to seek payment of the required amount in compliance with the |
provisions of this Section and, if the amount remains unpaid, |
to bring a mandamus action in the Supreme Court of Illinois to |
compel the State to make the required payment. |
If the System submits a voucher for contributions required |
under Section 16-158 and the State fails to pay that voucher |
within 90 days of its receipt, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
files the request with the Comptroller and Secretary of State, |
if the amount remains unpaid the Board shall commence a |
mandamus action in the Supreme Court of Illinois to compel the |
Comptroller to satisfy the voucher. |
This subsection (a) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
the Board to commence a mandamus action in the Supreme Court of |
Illinois to compel the Comptroller to pay a voucher for the |
contributions required under Section 16-158. |
(b) Beginning in State fiscal year 2016, the State shall be |
obligated to make the transfers set forth in subsections (c-5) |
and (c-10) of Section 20 of the Budget Stabilization Act and to |
pay to the System its proportionate share of the transferred |
amounts in accordance with Section 25 of the Budget |
Stabilization Act. Notwithstanding any other provision of law, |
|
if the State fails to transfer an amount required under this |
subsection or to pay to the System its proportionate share of |
the transferred amount in accordance with Section 25 of the |
Budget Stabilization Act, it shall be the obligation of the |
Board to seek transfer or payment of the required amount in |
compliance with the provisions of this Section and, if the |
required amount remains untransferred or the required payment |
remains unpaid, to bring a mandamus action in the Supreme Court |
of Illinois to compel the State to make the required transfer |
or payment or both, as the case may be. |
If the State fails to make a transfer required under |
subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act or a payment to the System required under |
Section 25 of that Act, the Board shall submit a written |
request to the Comptroller seeking payment. A copy of the |
request shall be filed with the Secretary of State, and the |
Secretary of State shall provide a copy to the Governor and |
General Assembly. No earlier than the 16th day after the System |
files the request with the Comptroller and Secretary of State, |
if the required amount remains untransferred or the required |
payment remains unpaid, the Board shall commence a mandamus |
action in the Supreme Court of Illinois to compel the |
Comptroller to make the required transfer or payment or both, |
as the case may be. |
This subsection (b) constitutes an express waiver of the |
State's sovereign immunity solely to the extent that it permits |
|
the Board to commence a mandamus action in the Supreme Court of |
Illinois to compel the Comptroller to make a transfer required |
under subsection (c-5) or (c-10) of Section 20 of the Budget |
Stabilization Act and to pay to the System its proportionate |
share of the transferred amount in accordance with Section 25 |
of the Budget Stabilization Act. |
The obligations created by this subsection (b) expire when |
all of the requirements of subsections (c-5) and (c-10) of |
Section 20 of the Budget Stabilization Act and Section 25 of |
the Budget Stabilization Act have been met. |
(c) Any payments and transfers required to be made by the |
State pursuant to subsection (a) or (b) are expressly |
subordinate to the payment of the principal, interest, and |
premium, if any, on any bonded debt obligation of the State or |
any other State-created entity, either currently outstanding |
or to be issued, for which the source of repayment or security |
thereon is derived directly or indirectly from tax revenues |
collected by the State or any other State-created entity. |
Payments on such bonded obligations include any statutory fund |
transfers or other prefunding mechanisms or formulas set forth, |
now or hereafter, in State law or bond indentures, into debt |
service funds or accounts of the State related to such bond |
obligations, consistent with the payment schedules associated |
with such obligations. |
(40 ILCS 5/16-203)
|
|
Sec. 16-203. Application and expiration of new benefit |
increases. |
(a) As used in this Section, "new benefit increase" means |
an increase in the amount of any benefit provided under this |
Article, or an expansion of the conditions of eligibility for |
any benefit under this Article, that results from an amendment |
to this Code that takes effect after June 1, 2005 (the |
effective date of Public Act 94-4). "New benefit increase", |
however, does not include any benefit increase resulting from |
the changes made to this Article by Public Act 95-910 or by |
this amendatory Act of the 98th 95th General Assembly. |
(b) Notwithstanding any other provision of this Code or any |
subsequent amendment to this Code, every new benefit increase |
is subject to this Section and shall be deemed to be granted |
only in conformance with and contingent upon compliance with |
the provisions of this Section.
|
(c) The Public Act enacting a new benefit increase must |
identify and provide for payment to the System of additional |
funding at least sufficient to fund the resulting annual |
increase in cost to the System as it accrues. |
Every new benefit increase is contingent upon the General |
Assembly providing the additional funding required under this |
subsection. The Commission on Government Forecasting and |
Accountability shall analyze whether adequate additional |
funding has been provided for the new benefit increase and |
shall report its analysis to the Public Pension Division of the |
|
Department of Insurance Financial and Professional Regulation . |
A new benefit increase created by a Public Act that does not |
include the additional funding required under this subsection |
is null and void. If the Public Pension Division determines |
that the additional funding provided for a new benefit increase |
under this subsection is or has become inadequate, it may so |
certify to the Governor and the State Comptroller and, in the |
absence of corrective action by the General Assembly, the new |
benefit increase shall expire at the end of the fiscal year in |
which the certification is made.
|
(d) Every new benefit increase shall expire 5 years after |
its effective date or on such earlier date as may be specified |
in the language enacting the new benefit increase or provided |
under subsection (c). This does not prevent the General |
Assembly from extending or re-creating a new benefit increase |
by law. |
(e) Except as otherwise provided in the language creating |
the new benefit increase, a new benefit increase that expires |
under this Section continues to apply to persons who applied |
and qualified for the affected benefit while the new benefit |
increase was in effect and to the affected beneficiaries and |
alternate payees of such persons, but does not apply to any |
other person, including without limitation a person who |
continues in service after the expiration date and did not |
apply and qualify for the affected benefit while the new |
benefit increase was in effect.
|
|
(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.) |
(40 ILCS 5/16-205 new) |
Sec. 16-205. Defined contribution plan. |
(a) By July 1, 2015, the System shall prepare and implement |
a voluntary defined contribution plan for up to 5% of eligible |
active Tier 1 members. The System shall determine the 5% cap by |
the number of active Tier 1 members on the effective date of |
this Section. The defined contribution plan developed under |
this Section shall be a plan that aggregates employer and |
employee contributions in individual participant accounts |
which, after meeting any other requirements, are used for |
payouts after retirement in accordance with this Section and |
any other applicable laws. |
As used in this Section, "defined benefit plan" means the |
retirement plan available under this Article to Tier 1 members |
who have not made the election authorized under this Section. |
(1) Under the defined contribution plan, an active Tier |
1 member of this System could elect to cease accruing |
benefits in the defined benefit plan under this Article and |
begin accruing benefits for future service in the defined |
contribution plan. Service credit under the defined |
contribution plan may be used for determining retirement |
eligibility under the defined benefit plan. An active Tier |
1 member who elects to cease accruing benefits in his or |
her defined benefit plan shall be prohibited from |
|
purchasing service credit on or after the date of his or |
her election. A Tier 1 member making the irrevocable |
election provided under this Section shall not receive |
interest accruals to his or her benefit under paragraph (A) |
of subsection (a) of Section 16-133 on or after the date of |
his or her election. |
(2) Participants in the defined contribution plan |
shall pay employee contributions at the same rate as Tier 1 |
members in this System who do not participate in the |
defined contribution plan. |
(3) State contributions shall be paid into the accounts |
of all participants in the defined contribution plan at a |
uniform rate, expressed as a percentage of salary and |
determined for each year. This rate shall be no higher than |
the employer's normal cost for Tier 1 members in the |
defined benefit plan for that year, as determined by the |
System and expressed as a percentage of salary, and shall |
be no lower than 0% of salary. The State shall adjust this |
rate annually. |
(4) The defined contribution plan shall require 5 years |
of participation in the defined contribution plan before |
vesting in State contributions. If the participant fails to |
vest in them, the State contributions, and the earnings |
thereon, shall be forfeited. |
(5) The defined contribution plan may provide for |
participants in the plan to be eligible for the defined |
|
disability benefits available to other participants under |
this Article. If it does, the System shall reduce the |
employee contributions credited to the member's defined |
contribution plan account by an amount determined by the |
System to cover the cost of offering such benefits. |
(6) The defined contribution plan shall provide a |
variety of options for investments. These options shall |
include investments in a fund created by the System and |
managed in accordance with legal and fiduciary standards, |
as well as investment options otherwise available. |
(7) The defined contribution plan shall provide a |
variety of options for payouts to retirees and their |
survivors. |
(8) To the extent authorized under federal law and as |
authorized by the System, the plan shall allow former |
participants in the plan to transfer or roll over employee |
and vested State contributions, and the earnings thereon, |
into other qualified retirement plans. |
(9) The System shall reduce the employee contributions |
credited to the member's defined contribution plan account |
by an amount determined by the System to cover the cost of |
offering these benefits and any applicable administrative |
fees. |
(b) Only persons who are active Tier 1 members of the |
System on the effective date of this Section are eligible to |
participate in the defined contribution plan. Participation in |
|
the defined contribution plan shall be limited to the first 5% |
of eligible persons who elect to participate. The election to |
participate in the defined contribution plan is voluntary and |
irrevocable. |
(c) An eligible Tier 1 employee may irrevocably elect to |
participate in the defined contribution plan by filing with the |
System a written application to participate that is received by |
the System prior to its determination that 5% of eligible |
persons have elected to participate in the defined contribution |
plan. |
When the System first determines that 5% of eligible |
persons have elected to participate in the defined contribution |
plan, the System shall provide notice to previously eligible |
employees that the plan is no longer available and shall cease |
accepting applications to participate. |
(d) The System shall make a good faith effort to contact |
each active Tier 1 member who is eligible to participate in the |
defined contribution plan. The System shall mail information |
describing the option to join the defined contribution plan to |
each of these employees to his or her last known address on |
file with the System. If the employee is not responsive to |
other means of contact, it is sufficient for the System to |
publish the details of the option on its website. |
Upon request for further information describing the |
option, the System shall provide employees with information |
from the System before exercising the option to join the plan, |
|
including information on the impact to their vested benefits or |
non-vested service. The individual consultation shall include |
projections of the member's defined benefits at retirement or |
earlier termination of service and the value of the member's |
account at retirement or earlier termination of service. The |
System shall not provide advice or counseling with respect to |
whether the employee should exercise the option. The System |
shall inform Tier 1 employees who are eligible to participate |
in the defined contribution plan that they may also wish to |
obtain information and counsel relating to their option from |
any other available source, including but not limited to labor |
organizations, private counsel, and financial advisors. |
(e) In no event shall the System, its staff, its authorized |
representatives, or the Board be liable for any information |
given to an employee under this Section. The System may |
coordinate with the Illinois Department of Central Management |
Services and other retirement systems administering a defined |
contribution plan in accordance with this amendatory Act of the |
98th General Assembly to provide information concerning the |
impact of the option set forth in this Section. |
(f) Notwithstanding any other provision of this Section, no |
person shall begin participating in the defined contribution |
plan until it has attained qualified plan status and received |
all necessary approvals from the U.S. Internal Revenue Service. |
(g) The System shall report on its progress under this |
Section, including the available details of the defined |
|
contribution plan and the System's plans for informing eligible |
Tier 1 members about the plan, to the Governor and the General |
Assembly on or before January 15, 2015. |
(h) The intent of this amendatory Act of the 98th General |
Assembly is to ensure that the State's normal cost of |
participation in the defined contribution plan is similar, and |
if possible equal, to the State's normal cost of participation |
in the defined benefit plan, unless a lower State's normal cost |
is necessary to ensure cost neutrality. |
(40 ILCS 5/16-206 new) |
Sec. 16-206. Defined contribution plan; termination. If |
the defined contribution plan is terminated or becomes |
inoperative pursuant to law, then each participant in the plan |
shall automatically be deemed to have been a contributing Tier |
1 member in the System's defined benefit plan during the time |
in which he or she participated in the defined contribution |
plan, and for that purpose the System shall be entitled to |
recover the amounts in the participant's defined contribution |
accounts.
|
(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
|
Sec. 17-116. Service retirement pension.
|
(a) Each teacher having 20 years of service upon attainment |
of age 55,
or who thereafter attains age 55 shall be entitled |
to a service retirement
pension upon or after attainment of age |
|
55; and each teacher in service on or
after July 1, 1971, with |
5 or more but less than 20 years of service shall be
entitled |
to receive a service retirement pension upon or after |
attainment of
age 62.
|
(b) The service retirement pension
for a teacher who |
retires on or after June 25, 1971, at age
60 or over, shall be |
calculated as follows:
|
(1) For creditable service earned before July 1, 1998 |
that has not been
augmented under Section 17-119.1: 1.67% |
for each of the first 10 years
of service; 1.90% for each |
of the next 10 years of service; 2.10% for
each year of |
service in excess of 20 but not exceeding 30; and 2.30% for
|
each year of service in excess of 30, based upon average |
salary as
herein defined.
|
(2) For creditable service earned on or after July 1, |
1998 by a member
who has at least 30 years of creditable |
service on July 1, 1998 and who does
not elect to augment |
service under Section 17-119.1: 2.3% of average salary
for |
each year of creditable service earned on or after July 1, |
1998.
|
(3) For all other creditable service: 2.2% of average |
salary
for each year of creditable service.
|
(c) When computing such service retirement pensions, the
|
following conditions shall apply:
|
1. Average salary shall consist of the average annual |
rate of salary
for the 4 consecutive years of validated |
|
service within the last 10 years
of service when such |
average annual rate was highest. In the determination
of |
average salary for retirement allowance purposes, for |
members who
commenced employment after August 31, 1979, |
that part of the salary for any
year shall be excluded |
which exceeds the annual full-time salary rate for
the |
preceding year by more than 20%. In the case of a member |
who commenced
employment before August 31, 1979 and who |
receives salary during any year
after September 1, 1983 |
which exceeds the annual full time salary rate for
the |
preceding year by more than 20%,
an Employer and other |
employers of
eligible contributors as defined in Section |
17-106
shall pay to the Fund an amount equal to the present |
value of the
additional service retirement pension |
resulting from such excess salary.
The present value of the |
additional service retirement pension shall be
computed by |
the Board on the basis of actuarial tables adopted by the
|
Board. If a member elects to receive a pension from this |
Fund
provided by
Section 20-121, his salary under the State |
Universities Retirement System
and the Teachers' |
Retirement System of the State of Illinois shall be
|
considered in determining such average salary. Amounts |
paid after the
effective date of this amendatory Act of |
1991 for unused vacation time
earned after that effective |
date shall not under any circumstances be
included in the |
calculation of average salary or the annual rate of salary
|
|
for the purposes of this Article.
|
2. Proportionate credit shall be given for validated |
service of less
than one year.
|
3. For retirement at age 60 or over the pension shall |
be payable at
the full rate.
|
4. For separation from service below age 60 to a |
minimum age of 55,
the pension shall be discounted at the |
rate of 1/2 of one per cent for
each month that the age of |
the contributor is less than 60, but a
teacher may elect to |
defer the effective date of pension in order to
eliminate |
or reduce this discount. This discount shall not be |
applicable
to any participant who has at least 34 years of |
service or a
retirement pension of at least 74.6% of |
average salary on the date the
retirement annuity begins.
|
5. No additional pension shall be granted for service |
exceeding 45
years. Beginning June 26, 1971 no pension |
shall exceed the greater of
$1,500 per month or 75% of |
average salary as herein defined.
|
6. Service retirement pensions shall begin on the |
effective date of
resignation, retirement, the day |
following the close of the payroll
period for which service |
credit was validated, or the time the person
resigning or |
retiring attains age 55, or on a date elected by the
|
teacher, whichever shall be latest.
|
7. A member who is eligible to receive a retirement |
pension of at least
74.6% of average salary and will attain |
|
age 55 on or before December 31
during the year which |
commences on July 1 shall be deemed to attain age 55 on
the |
preceding June 1.
|
8. A member retiring after the effective date of this |
amendatory Act
of 1998 shall receive a pension equal to 75% |
of average salary if the
member is qualified to receive a |
retirement pension equal to at least 74.6%
of average |
salary under this Article or as proportional annuities |
under
Article 20 of this Code.
|
9. In the case of a person who first becomes a |
participant on or after the effective date of this |
amendatory Act of the 98th General Assembly, payments for |
unused sick or vacation time shall not be used in the |
calculation of average salary. |
(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
|
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
|
Sec. 17-134. Contributions for leaves of absence; military |
service;
computing service. In computing service for pension |
purposes the following
periods of service shall stand in lieu |
of a like number of years of teaching
service upon payment |
therefor in the manner hereinafter provided: (a) time
spent on |
a leave of absence granted by the
employer;
(b) service with |
teacher or labor organizations based upon special
leaves of |
absence therefor granted by an Employer; (c) a maximum of 5 |
years
spent in the military service of the United States, of |
|
which up to 2 years
may have been served outside the pension |
period; (d) unused sick days at
termination of service to a |
maximum of 244 days; (e) time lost due
to layoff and |
curtailment of the school term from June 6 through June 21, |
1976;
and (f) time spent after June 30, 1982 as a member of the |
Board of Education,
if required to resign from an |
administrative or teaching position in order to
qualify as a |
member of the Board of Education.
|
(1) For time spent on or after September 6, 1948 on |
sabbatical
leaves of absence or sick leaves, for which |
salaries are paid, an Employer
shall make payroll |
deductions at the applicable rates in effect
during such |
periods.
|
(2) For time spent on a leave of absence granted by the |
employer for which no salaries are paid,
teachers desiring |
credit therefor shall pay the required contributions at the
|
rates in effect during such periods as though they were in |
teaching service.
If an Employer pays salary for vacations |
which occur during a teacher's sick
leave or maternity or |
paternity leave without salary, vacation pay for which
the |
teacher would have qualified while in active service shall |
be considered
part of the teacher's total salary for |
pension purposes. No more than 36 months of leave credit |
may be
allowed any person during the entire term of |
service. Sabbatical leave credit
shall be limited to the |
time the person on leave without salary under an
Employer's |
|
rules is allowed to engage in an activity for which he |
receives
salary or compensation.
|
(3) For time spent prior to September 6, 1948, on |
sabbatical
leaves of absence or sick leaves for which |
salaries were paid, teachers
desiring service credit |
therefor shall pay the required contributions at the
|
maximum applicable rates in effect during such periods.
|
(4) For service with teacher or labor organizations |
authorized by special
leaves of absence, for which no |
payroll deductions are made by an Employer,
teachers |
desiring service credit therefor shall contribute to the |
Fund upon
the basis of the actual salary received from such |
organizations at the
percentage rates in effect during such |
periods for certified positions with
such Employer. To the |
extent the actual salary exceeds the regular salary,
which |
shall be defined as the salary rate, as calculated by the |
Board, in
effect for the teacher's regular position in |
teaching service on September 1,
1983 or on the effective |
date of the leave with the organization, whichever is
|
later, the organization shall pay to the Fund the |
employer's normal cost as set
by the Board on the |
increment. Notwithstanding any other provision of this |
subdivision (4), teachers are only eligible for credit for |
service under this subdivision (4) if the special leave of |
absence begins before January 5, 2012 ( the effective date |
of Public Act 97-651) this amendatory Act of the 97th |
|
General Assembly .
|
(5) For time spent in the military service, teachers |
entitled to and
desiring credit therefor shall contribute |
the amount required for each year
of service or fraction |
thereof at the rates in force (a) at the date of
|
appointment, or (b) on return to teaching service as a |
regularly certified
teacher, as the case may be; provided |
such rates shall not be less than $450
per year of service. |
These conditions shall apply unless an Employer elects
to |
and does pay into the Fund the amount which would have been |
due from such
person had he been employed as a teacher |
during such time. In the case of
credit for military |
service not during the pension period, the teacher must
|
also pay to the Fund an amount determined by the Board to |
be equal to the
employer's normal cost of the benefits |
accrued from such service, plus interest
thereon at 5% per |
year, compounded annually, from the date of appointment to
|
the date of payment.
|
The changes to this Section made by Public Act 87-795 |
shall apply
not only to persons who on or after its |
effective
date are in service under the Fund, but also to |
persons whose status as a
teacher terminated prior to that |
date, whether or not the person is an
annuitant on that |
date. In the case of an annuitant who applies for credit
|
allowable under this Section for a period of military |
service that did not
immediately follow employment, and who |
|
has made the required contributions for
such credit, the |
annuity shall be recalculated to include the additional
|
service credit, with the increase taking effect on the date |
the Fund received
written notification of the annuitant's |
intent to purchase the credit, if
payment of all the |
required contributions is made within 60 days of such
|
notice, or else on the first annuity payment date following |
the date of
payment of the required contributions. In |
calculating the automatic annual
increase for an annuity |
that has been recalculated under this Section, the
increase |
attributable to the additional service allowable under |
this
amendatory Act of 1991 shall be included in the |
calculation of automatic
annual increases accruing after |
the effective date of the recalculation.
|
The total credit for military service shall not exceed |
5 years, except
that any teacher who on July 1, 1963, had |
validated credit for more than 5
years of military service |
shall be entitled to the total amount of such credit.
|
(6) For persons who first become teachers before the
|
effective date of this amendatory Act of the 98th General
|
Assembly, a A maximum of 244 unused sick days credited to |
his account
by an Employer on the date of termination of |
employment. Members, upon
verification of unused sick |
days, may add this service time to total creditable
|
service.
|
(7) In all cases where time spent on leave is |
|
creditable and
no payroll deductions therefor are made by |
an Employer, persons
desiring service credit shall make the |
required contributions directly to
the Fund.
|
(8) For time lost without pay due to layoff and |
curtailment of
the school term from June 6 through June 21, |
1976, as provided in item (e) of
the first paragraph of |
this Section, persons who were contributors on
the days |
immediately preceding such layoff shall receive credit |
upon
paying to the Fund a contribution based on the rates |
of compensation and
employee contributions in effect at the |
time of such layoff, together
with an additional amount |
equal to 12.2% of the compensation computed
for such period |
of layoff, plus interest on the entire amount at 5% per
|
annum from January 1, 1978 to the date of payment. If such |
contribution
is paid, salary for pension purposes for any |
year in which such a layoff
occurred shall include the |
compensation recognized for purposes of
computing that |
contribution.
|
(9) For time spent after June 30, 1982, as a |
nonsalaried member
of the Board of Education, if required |
to resign from an administrative or
teaching position in |
order to qualify as a member of the Board of
Education, an |
administrator or teacher desiring credit therefor shall |
pay
the required contributions at the rates and salaries in |
effect during such
periods as though the member were in |
service.
|
|
Effective September 1, 1974, the interest charged for |
validation of
service described in paragraphs (2) through (5) |
of this Section shall be
compounded annually at a rate of 5% |
commencing one
year after the termination of the leave or |
return to service.
|
(Source: P.A. 97-651, eff. 1-5-12.)
|
(40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106)
|
Sec. 20-106. Final average salary.
|
(a) "Final average salary": The average (or other) salary |
which is
considered by a participating system in determining |
the amount of the
retirement annuity or survivor's annuity.
|
(b) Earnings credits under all participating systems shall |
be
considered by each system in determining final average |
salary , but subject to the limitations imposed by this |
amendatory Act of the 98th General Assembly for a participant |
in a defined contribution plan established under Article 2, 14, |
15, or 16 of this Code . In
calculating a proportional |
retirement or survivor's annuity based on these
earnings |
credits, the participating system shall apply any limitations |
on
earnings for annuity purposes that are imposed by the |
Article governing the
system.
|
(Source: P.A. 88-593, eff. 8-22-94.)
|
(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
|
Sec. 20-121. Calculation of proportional retirement |
|
annuities. |
(a) Upon
retirement of the employee, a proportional |
retirement annuity shall be computed
by each participating |
system in which pension credit has been established on
the |
basis of pension credits under each system. The computation |
shall be in
accordance with the formula or method prescribed by |
each participating system
which is in effect at the date of the |
employee's latest withdrawal from service
covered by any of the |
systems in which he has pension credits which he elects
to have |
considered under this Article. However, the amount of any |
retirement
annuity payable under the self-managed plan |
established under Section 15-158.2
of this Code or under the |
defined contribution plan established under Article 2, 14, 15, |
or 16 of this Code depends solely on the value of the |
participant's vested account
balances and is not subject to any |
proportional adjustment under this
Section.
|
(a-5) For persons who participate in a defined contribution |
plan established under Article 2, 14, 15, or 16 of this Code to |
whom the provisions of this Article apply, the pension credits |
established under the defined contribution plan may be |
considered in
determining eligibility for or the amount of the |
defined benefit retirement annuity that is
payable by any other |
participating system. |
(b) Combined pension credit under all retirement systems |
subject to this
Article shall be considered in determining |
whether the minimum qualification
has been met and the formula |
|
or method of computation which shall be applied , except as may |
be otherwise provided with respect to vesting in State or |
employer contributions in a defined contribution plan .
If a |
system has a step-rate formula for calculation of the |
retirement annuity,
pension credits covering previous service |
which have been established under
another system shall be |
considered in determining which range or ranges of
the |
step-rate formula are to be applicable to the employee.
|
(c) Interest on pension credit shall continue to accumulate |
in accordance with
the provisions of the law governing the |
retirement system in which the same
has been established during |
the time an employee is in the service of another
employer, on |
the assumption such employee, for interest purposes for pension
|
credit, is continuing in the service covered by such retirement |
system.
|
(Source: P.A. 91-887, eff. 7-6-00.)
|
(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
|
Sec. 20-123. Survivor's annuity. The provisions governing |
a retirement
annuity shall be applicable to a survivor's |
annuity. Appropriate credits shall
be established for |
survivor's annuity purposes in those participating systems
|
which provide survivor's annuities, according to the same |
conditions and
subject to the same limitations and restrictions |
herein prescribed for a
retirement annuity. If a participating |
system has no survivor's annuity
benefit, or if the survivor's |
|
annuity benefit under that system is waived,
pension credit |
established in that system shall not be considered
in |
determining eligibility for or the amount of the survivor's |
annuity which
may be payable by any other participating system.
|
For persons who participate in the self-managed plan |
established under
Section 15-158.2 or the portable benefit |
package established under Section
15-136.4, pension credit |
established under Article 15 may be considered in
determining |
eligibility for or the amount of the survivor's annuity that is
|
payable by any other participating system, but pension credit |
established in
any other system shall not result in any right |
to a survivor's annuity under
the Article 15 system.
|
For persons who participate in a defined contribution plan |
established under Article 2, 14, 15, or 16 of this Code to whom |
the provisions of this Article apply, the pension credits |
established under the defined contribution plan may be |
considered in
determining eligibility for or the amount of the |
defined benefit survivor's annuity that is
payable by any other |
participating system, but pension credits established in
any |
other system shall not result in any right to or increase in |
the value of a survivor's annuity under
the defined |
contribution plan, which depends solely on the options chosen |
and the value of the participant's vested account
balances and |
is not subject to any proportional adjustment under this
|
Section. |
(Source: P.A. 91-887, eff. 7-6-00.)
|
|
(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
|
Sec. 20-124. Maximum benefits. |
(a) In no event shall the combined retirement
or survivors |
annuities exceed the highest annuity which would have been |
payable
by any participating system in which the employee has |
pension credits, if all
of his pension credits had been |
validated in that system.
|
If the combined annuities should exceed the highest maximum |
as determined
in accordance with this Section, the respective |
annuities shall be reduced
proportionately according to the |
ratio which the amount of each proportional
annuity bears to |
the aggregate of all such annuities.
|
(b) In the case of a participant in the self-managed plan |
established under
Section 15-158.2 of this Code to whom the |
provisions of this Article apply:
|
(i) For purposes of calculating the combined |
retirement annuity and
the proportionate reduction, if |
any, in a retirement annuity other than one
payable under |
the self-managed plan, the amount of the Article 15 |
retirement
annuity shall be deemed to be the highest |
annuity to which the annuitant would
have been entitled if |
he or she had participated in the traditional benefit
|
package as defined in Section 15-103.1 rather than the |
self-managed plan.
|
(ii) For purposes of calculating the combined |
|
survivor's annuity and
the proportionate reduction, if |
any, in a survivor's annuity other than one
payable under |
the self-managed plan, the amount of the Article 15 |
survivor's
annuity shall be deemed to be the highest |
survivor's annuity to which the
survivor would have been |
entitled if the deceased employee had participated in
the |
traditional benefit package as defined in Section 15-103.1 |
rather than the
self-managed plan.
|
(iii) Benefits payable under the self-managed plan are |
not subject to
proportionate reduction under this Section.
|
(c) In the case of a participant in a defined contribution |
plan established under
Article 2, 14, 15, or 16 of this Code to |
whom the provisions of this Article apply: |
(i) For purposes of calculating the combined |
retirement annuity and
the proportionate reduction, if |
any, in a defined benefit retirement annuity, any benefit |
payable under the defined contribution plan shall not be |
considered. |
(ii) For purposes of calculating the combined |
survivor's annuity and
the proportionate reduction, if |
any, in a defined benefit survivor's annuity, any benefit |
payable under the defined contribution plan shall not be |
considered. |
(iii) Benefits payable under a defined contribution |
plan established under Article 2, 14, 15, or 16 of this |
Code are not subject to
proportionate reduction under this |
|
Section. |
(Source: P.A. 91-887, eff. 7-6-00.)
|
(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
|
Sec. 20-125. Return to employment - suspension of |
benefits. If a retired
employee returns to employment which is |
covered by a system from which he is
receiving a proportional |
annuity under this Article, his proportional annuity
from all |
participating systems shall be suspended during the period of
|
re-employment, except that this suspension does not apply to |
any
distributions payable under the self-managed plan |
established under Section
15-158.2 or under a defined |
contribution plan established under Article 2, 14, 15, or 16 of |
this Code.
|
The provisions of the Article under which such employment |
would be
covered shall govern the determination of whether the |
employee has returned
to employment, and if applicable the |
exemption of temporary employment or
employment not exceeding a |
specified duration or frequency, for all
participating systems |
from which the retired employee is receiving a
proportional |
annuity under this Article, notwithstanding any contrary
|
provisions in the other Articles governing such systems.
|
(Source: P.A. 91-887, eff. 7-6-00.)
|
Section 20. The Illinois Educational Labor Relations Act |
is amended by changing Sections 4 and 17 and by adding Section |
|
10.5 as follows:
|
(115 ILCS 5/4) (from Ch. 48, par. 1704)
|
Sec. 4. Employer rights. Employers shall not be required |
to bargain over matters of inherent
managerial policy, which |
shall include such areas of discretion or policy
as the |
functions of the employer, standards of services, its overall
|
budget, the organizational structure and selection of new |
employees and
direction of employees. Employers, however, |
shall be required to bargain
collectively with regard to policy |
matters directly affecting wages, hours
and terms and |
conditions of employment as well as the impact thereon upon
|
request by employee representatives , except as provided in |
Section 10.5 . To preserve the rights of employers
and exclusive |
representatives which have established collective bargaining
|
relationships or negotiated collective bargaining agreements |
prior to the
effective date of this Act, employers shall be |
required to bargain
collectively with regard to any matter |
concerning wages, hours or
conditions of employment about which |
they have bargained for and agreed to
in a collective |
bargaining agreement prior to the effective date of this Act , |
except as provided in Section 10.5 .
|
(Source: P.A. 83-1014.)
|
(115 ILCS 5/10.5 new) |
Sec. 10.5. Duty to bargain regarding pension amendments. |
|
(a) Notwithstanding any provision of this Act, employers |
shall not be required to bargain over matters affected by the |
changes, the impact of changes, and the implementation of |
changes made to Article 14, 15, or 16 of the Illinois Pension |
Code, or Article 1 of that Code as it applies to those |
Articles, made by this amendatory Act of the 98th General |
Assembly, or over any other provision of Article 14, 15, or 16 |
of the Illinois Pension Code, or of Article 1 of that Code as |
it applies to those Articles, which are prohibited subjects of |
bargaining; nor shall the changes, the impact of changes, or |
the implementation of changes made to Article 14, 15, or 16 of |
the Illinois Pension Code, or to Article 1 of that Code as it |
applies to those Articles, by this amendatory Act of the 98th |
General Assembly or any other provision of Article 14, 15, or |
16 of the Illinois Pension Code, or of Article 1 of that Code |
as it applies to those Articles, be subject to interest |
arbitration or any award issued pursuant to interest |
arbitration. The provisions of this Section shall not apply to |
an employment contract or collective bargaining agreement that |
is in effect on the effective date of this amendatory Act of |
the 98th General Assembly. However, any such contract or |
agreement that is subsequently modified, amended, or renewed |
shall be subject to the provisions of this Section. The |
provisions of this Section shall also not apply to the ability |
of an employer and employee representative to bargain |
collectively with regard to the pick up of employee |
|
contributions pursuant to Section 14-133.1, 15-157.1, or |
16-152.1 of the Illinois Pension Code. |
(b) Nothing in this Section, however, shall be construed as |
otherwise limiting any of the obligations and requirements |
applicable to each employer under any of the provisions of this |
Act, including, but not limited to, the requirement to bargain |
collectively with regard to policy matters directly affecting |
wages, hours and terms and conditions of employment as well as |
the impact thereon upon request by employee representatives, |
except for the matters deemed prohibited subjects of bargaining |
under subsection (a) of this Section. Nothing in this Section |
shall further be construed as otherwise limiting any of the |
rights of employees or employee representatives under the |
provisions of this Act, except for matters deemed prohibited |
subjects of bargaining under subsection (a) of this Section. |
(c) In case of any conflict between this Section and any |
other provisions of this Act or any other law, the provisions |
of this Section shall control.
|
(115 ILCS 5/17) (from Ch. 48, par. 1717)
|
Sec. 17. Effect on other laws. Except as provided in |
Section 10.5, in In case of any conflict between the
provisions |
of this Act and any other law, executive order or |
administrative
regulation, the provisions of this Act shall |
prevail and control.
Except as provided in Section 10.5, |
nothing Nothing in this Act shall be construed to replace or |
|
diminish the rights
of employees established by Section 36d of |
"An Act to create the State Universities
Civil Service System", |
approved May 11, 1905, as amended or modified.
|
(Source: P.A. 83-1014.)
|
Section 95. The State Mandates Act is amended by adding |
Section 8.37 as follows: |
(30 ILCS 805/8.37 new) |
Sec. 8.37. 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 98th General Assembly. |
Section 97. Severability and inseverability. The |
provisions of this Act are severable under Section 1.31 of the |
Statute on Statutes, except that the changes made to Sections |
20 and 25 of the Budget Stabilization Act and to subsections |
(a), (a-1), (a-2), (b), and (d) of Section 2-119.1, subsections |
(d), (d-1), and (d-2) of Section 15-136, subsection (a-10) of |
Section 16-158, and Sections 2-124, 2-125, 2-126, 2-134,
2-165, |
14-114, 14-115, 14-131, 14-132, 14-133, 14-135.08, 14-155, |
15-155, 15-156, 15-157, 15-165, 15-200, 16-133.1, 16-136.1, |
16-152, 16-158, 16-158.2, 16-205, 20-106, 20-121, 20-123, |
20-124, and 20-125 of the Illinois Pension Code are mutually |
dependent and inseverable from one another but are severable |