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Public Act 095-0586
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| SB1653 Enrolled |
LRB095 10854 AMC 31124 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 5. The Illinois Pension Code is amended by changing |
Sections 13-215, 13-216, 13-309, 13-502, 13-601, and 13-706 as |
follows:
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(40 ILCS 5/13-215) (from Ch. 108 1/2, par. 13-215)
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Sec. 13-215. "Retirement annuity": A benefit payable as an |
annuity for
service as an employee. The annuity shall be |
payable in equal monthly
installments for life, except as |
otherwise provided in this Article,
beginning in the
one month |
after the effective date of the annuity as fixed by the
Board, |
which shall not be prior to the date of withdrawal nor more |
than one
year prior to the date of the employee's application |
for the annuity. A
pro rata amount of the annuity shall be paid |
for part of a month when the
annuity begins after the first day |
of the month or ends before
the last day of the month.
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Notwithstanding the above, all retirement annuity payments |
first payable on or after January 1, 2008, shall begin the |
first of the month following the effective date of retirement.
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Effective January 1, 2008, benefits are payable for the |
full month if the annuitant was alive on the first day of the |
month.
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(Source: P.A. 87-794.)
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(40 ILCS 5/13-216) (from Ch. 108 1/2, par. 13-216)
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Sec. 13-216. "Surviving spouse's annuity": The amount |
payable as a
surviving spouse annuity commencing on the date of |
the employee's or
retiree's death. The annuity shall be payable |
in equal monthly
installments for life, except as otherwise |
provided in this Article,
in the month after the effective date |
of the annuity
beginning one month after the effective date of |
the annuity. A pro rata
amount of the annuity shall be paid for |
part of a month when the annuity
begins after the first day of |
the month or ends before the last day of
the month.
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Notwithstanding the above, all surviving spouse annuity |
payments first payable on or after January 1, 2008, shall begin |
the first of the month following the employee's or annuitant's |
date of death.
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Effective January 1, 2008, benefits are payable for the |
full month if the annuitant was alive on the first day of the |
month.
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(Source: P.A. 87-794.)
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(40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
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Sec. 13-309. Duty disability benefit.
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(a) Any employee who becomes disabled, which disability is |
the result of an
injury or illness compensable under the |
Illinois Workers' Compensation Act or
the Illinois Workers' |
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Occupational Diseases Act, is entitled to a duty
disability |
benefit during the period of disability for which the employee |
does
not receive any part of salary, or any part of a |
retirement annuity under this
Article; except that in the case |
of an employee who first enters service on or
after June 13, |
1997 and becomes disabled before the effective date of this |
amendatory Act of the 94th General Assembly, a duty disability
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benefit is not payable for the first 3 days of disability that |
would otherwise
be payable under this Section if the disability |
does not continue for at least
11 additional days. The changes |
made to this Section by this amendatory Act of the 94th General |
Assembly are prospective only and do not entitle an employee to |
a duty disability benefit for the first 3 days of any |
disability that occurred before that effective date and did not |
continue for at least 11 additional days. This benefit shall be |
75% of salary at the date disability
begins. However, if the |
disability in any measure resulted from any physical
defect or |
disease which existed at the time such injury was sustained or |
such
illness commenced, the duty disability benefit shall be |
50% of salary.
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Unless the employer acknowledges that the disability is a |
result of
injury or illness compensable under the Workers' |
Compensation Act or the
Workers' Occupational Diseases Act, the |
duty disability benefit shall
not be payable until the issue of |
compensability under those Acts is finally
adjudicated. The |
period of disability shall be as determined by the Illinois
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Workers' Compensation Commission or acknowledged by the |
employer.
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An employee in service before June 13, 1997 shall also |
receive a child's disability
benefit during the period of |
disability of $10 per month for each
unmarried natural or |
adopted child of the employee under
18 years of age.
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The first payment shall be made not later than one month |
after the
benefit is granted, and subsequent payments shall be |
made at least monthly.
The Board shall by rule prescribe for |
the payment of such benefits on the
basis of the amount of |
salary lost during the period of disability.
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(b) The benefit shall be allowed only if the following |
requirements are
met by the employee:
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(1) Application is made to the Board within 90 days |
from the date
disability begins;
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(2) A medical report is submitted by at least one |
licensed and
practicing physician as part of the employee's |
application; and
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(3) The employee is examined by at least one licensed |
and practicing
physician appointed by the Board and found |
to be in a disabled physical
condition, and shall be |
re-examined at least annually thereafter during the
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continuance of disability. The employee need not be |
re-examined by a
licensed and practicing physician if the |
attorney for the district
certifies in writing that the |
employee is entitled to receive compensation
under the |
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Workers' Compensation Act or the Workers' Occupational |
Diseases Act.
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(c) The benefit shall terminate when:
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(1) The employee returns to work or receives a |
retirement annuity paid
wholly or in part under this |
Article;
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(2) The disability ceases;
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(3) The employee attains age 65, but if the employee |
becomes disabled at
age 60 or later, benefits may be |
extended for a period of no
more than 5 years after
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disablement;
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(4) The employee (i) refuses to submit to reasonable |
examinations by
physicians or other health professionals |
appointed by the Board, (ii) fails
or refuses to consent to |
and sign an authorization allowing the Board to
receive |
copies of or to examine the employee's medical and hospital |
records,
or (iii) fails or refuses to provide complete |
information regarding any other
employment for |
compensation he or she has received since becoming |
disabled;
or
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(5) The employee willfully and continuously refuses to |
follow medical advice and treatment to enable the employee |
to return to
work. However this provision does not apply to |
an employee who relies in good
faith on treatment by prayer |
through spiritual means alone in accordance with
the tenets |
and practice of a recognized church or religious |
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denomination, by a
duly accredited practitioner thereof.
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In the case of a duty disability recipient who returns to |
work, the employee
must make application to the Retirement |
Board within 2 years from the date the
employee last received |
duty disability benefits in order to become again
entitled to |
duty disability benefits based on the injury for which a duty
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disability benefit was theretofore paid.
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(Source: P.A. 93-721, eff. 1-1-05; 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
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Sec. 13-502. Employee contributions; deductions from |
salary.
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(a) Retirement annuity and child's annuity. There shall be |
deducted
from each payment of salary an amount equal to 7%
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1/2% of salary as the
employee's contribution for the |
retirement annuity, including annual
increases therefore and
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child's annuity, and 0.5% of salary as the employee's |
contribution for annual increases to the retirement annuity.
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(b) Surviving spouse's annuity. There shall be deducted |
from each
payment of salary an amount equal to 1 1/2% of salary |
as the employee's
contribution for the surviving spouse's |
annuity and annual increases therefor.
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(c) Pickup of employee contributions. The Employer may pick |
up employee
contributions required under subsections (a) and |
(b) of this Section. If
contributions are picked up they shall |
be treated as Employer contributions
in determining tax |
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treatment under the United States Internal Revenue Code,
and |
shall not be included as gross income of the employee until |
such time
as they are distributed. The Employer shall pay these |
employee
contributions from the same source of funds used in |
paying salary to the
employee. The Employer may pick up these |
contributions by a reduction in
the cash salary of the employee |
or by an offset against a future salary
increase or by a |
combination of a reduction in salary and offset against a
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future salary increase. If employee contributions are picked up |
they shall be
treated for all purposes of this Article 13, |
including Sections 13-503 and
13-601, in the same manner and to |
the same extent as employee contributions
made prior to the |
date picked up.
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(d) Subject to the requirements of federal law, the |
Employer shall
pick up optional contributions that the employee |
has elected to pay to the
Fund under Section 13-304.1, and the |
contributions so picked up
shall be treated as employer |
contributions for the purposes of determining
federal tax |
treatment. The Employer shall pick up the contributions by a
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reduction in the cash salary of the employee and shall pay the |
contributions
from the same fund that is used to pay earnings |
to the employee. The Employer
shall, however, continue to |
withhold federal and State income taxes based upon
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contributions made under Section 13-304.1 until the Internal |
Revenue Service or
the federal courts rule that pursuant to |
Section 414(h) of the U.S. Internal
Revenue Code of 1986, as |
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amended, these contributions shall not be included as
gross |
income of the employee until such time as they are distributed |
or made
available.
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(e) Each employee is deemed to consent and agree to the |
deductions from
compensation provided for in this Article.
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(f) Subject to the requirements of federal law, the |
Employer shall pick up
contributions that a commissioner has |
elected to pay to the Fund under Section
13-314, and the |
contributions so picked up shall be treated as Employer
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contributions for the purposes of determining federal tax |
treatment. The
Employer shall pick up the contributions by a |
reduction in the cash salary of
the commissioner and shall pay |
the contributions from the same fund as is
used to pay earnings |
to the commissioner. The Employer shall, however,
continue to |
withhold federal and State income taxes based upon |
contributions
made under Section 13-314 until the U.S. Internal |
Revenue Service or the
federal courts rule that pursuant to |
Section 414(h) of the Internal Revenue
Code of 1986, as |
amended, these contributions shall not be included as gross
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income of the employee until such time as they are distributed |
or made
available.
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(Source: P.A. 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
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Sec. 13-601. Refunds.
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(a) Withdrawal from service. Upon withdrawal from service, |
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an employee
under age 55 (age 50 if the employee first entered |
service before June
13, 1997), or an employee age 55 (age 50 if |
the employee first entered
service before June 13, 1997) or |
over but less than 60 having less
than 20 years of service, or |
an employee age 60 or over having less than 5
years of service |
shall be entitled, upon application, to a refund of total
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contributions from salary deductions or amounts otherwise paid |
under this
Article by the employee. The refund shall not |
include interest credited to
the contributions. The Board may, |
in its discretion, withhold payment of a
refund for a period |
not to exceed one year from the date of filing an
application |
for refund.
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(b) Surviving spouse's annuity contributions. A refund of |
all amounts
deducted from salary or otherwise contributed by an |
employee for the
surviving spouse's annuity shall be paid upon |
retirement to any employee
who on the date of retirement is |
either not married or is married but whose
spouse is not |
eligible for a surviving spouse's annuity paid wholly or in
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part under this Article. The refund shall include interest on
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each contribution at the rate of 3% per annum compounded |
annually from the
date of the contribution to the date of the |
refund.
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(c) Payment of Refunds After Death. Whenever any refund is |
payable after the death of the annuitant as provided for in |
this Article, the refund shall be paid as follows: to the |
employee's surviving spouse, but if there is no surviving |
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spouse then in accordance with the employee's written |
designation of beneficiary filed with the Board on the |
prescribed form before the employee's death. If there is no |
such designation of beneficiary, then to the employee's |
surviving children in equal parts to each. If there are no such |
children, the refund shall be paid to the heirs of the employee |
according to the law of descent and distribution of the State |
of Illinois.
When paid to children, estate or beneficiary. |
Whenever the total
accumulations, to the account of an employee |
from employee contributions,
including interest to the |
employee's date of withdrawal, have not been paid to the |
employee and surviving spouse
as a retirement or spouse's |
annuity before the death of the survivor of the
employee and |
spouse, a refund shall be paid as follows: an amount equal to
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the excess of such amounts over the amounts paid on such |
annuities without
interest on either such amount, shall be paid |
to the children of the
employee, in equal parts to each, unless |
the employee has directed in
writing, signed by him before an |
officer authorized to administer oaths,
and filed with the |
Board before the employee's death, that any such amount
shall |
be refunded and paid to any one or more of such children; and |
if
there are not children, such other beneficiary or |
beneficiaries as might be
designated by the employee. If there |
are no such children or designation
of beneficiary, the refund |
shall be paid to the personal representative of
the employee's |
estate.
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If a personal representative of the estate has not been |
appointed within
90 days from the date on which a refund became |
payable, the refund may be
applied, in the discretion of the |
Board, toward the payment of the
employee's or the surviving |
spouse's burial expenses. Any remaining
balance shall be paid |
to the heirs of the employee according to the law of
descent |
and distribution of the State of Illinois.
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Whenever the total accumulations to the account of an |
employee from employee contributions other than the |
contribution for the cost of living increase, including |
interest to the employee's date of withdrawal, have not been |
paid to the employee and surviving spouse as a retirement or |
spouse's annuity before the death of the employee and spouse, a |
refund shall be paid as follows: an amount equal to the excess |
of such amounts over the amounts paid on such annuities without |
interest on either such amount.
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If a reversionary annuity becomes payable under Section |
13-303, the
refund provided in this section shall not be paid |
until the death of the
reversionary annuitant and the refund |
otherwise payable under this section
shall be then further |
reduced by the amount of the reversionary annuity paid.
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(d) In lieu of annuity. Notwithstanding the provisions set |
forth in
subsection (a) of this section, whenever an employee's |
or surviving
spouse's annuity will be less than $200 per month, |
the employee or
surviving spouse, as the case may be, may elect |
to receive a refund of
accumulated employee contributions; |
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provided, however, that if the election
is made by a surviving |
spouse the refund shall be reduced by any amounts
theretofore |
paid to the employee in the form of an annuity.
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(e) Forfeiture of rights. An employee or surviving spouse |
who receives
a refund forfeits the right to receive an annuity |
or any other benefit
payable under this Article except that if |
the refund is to a surviving
spouse, any child or children of |
the employee shall not be deprived of the
right to receive a |
child's annuity as provided in Section 13-308 of this
Article, |
and the payment of a child's annuity shall not reduce the |
amount
refundable to the surviving spouse.
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(Source: P.A. 94-621, eff. 8-18-05.)
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(40 ILCS 5/13-706) (from Ch. 108 1/2, par. 13-706)
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Sec. 13-706. Board powers and duties. The Board shall have |
the powers and
duties set forth in this Section, in addition to |
such other powers and
duties as may be provided in this Article |
and in this Code:
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(a) To supervise collections. To see that all amounts |
specified in this
Article to be applied to the Fund, from |
any source, are collected and applied.
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(b) To notify of deductions. To notify the Clerk of the |
Water
Reclamation District of the deductions to be made |
from the salaries of
employees.
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(c) To accept gifts. To accept by gift, grant, bequest |
or otherwise any
money or property of any kind and use the |
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same for the purposes of the Fund.
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(d) To invest the reserves. To invest the reserves of |
the Fund in
accordance with the provisions set forth in |
Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and |
1-115 of this Code. Investments made in accordance with |
Section 1-113 of Article 1 of
this Code shall be deemed |
prudent. The Board is also authorized to transfer |
securities to the
Illinois State Board of Investment for |
the purpose of participation in any
commingled investment |
fund as provided in Article 22A of this Code.
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(e) To authorize payments. To consider and pass upon |
all applications
for annuities and benefits; to authorize |
or suspend the payment of any
annuity or benefit; to |
inquire into the validity and legality of any grant
of |
annuity or benefit paid from or payable out of the Fund; to |
increase,
reduce, or suspend any such annuity or benefit |
whenever the annuity or
benefit, or any part thereof, was |
secured or granted, or the amount thereof
fixed, as the |
result of misrepresentation, fraud, or error. No such
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annuity or benefit shall be permanently reduced or |
suspended until the
affected annuitant or beneficiary is |
first notified of the proposed action
and given an |
opportunity to be heard. No trustee of the Board shall vote
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upon that trustee's own personal claim for annuity, benefit |
or refund, or
participate in the deliberations of the Board |
as to the validity of any
such claim. The Board shall have |
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exclusive original jurisdiction in all
matters of claims |
for annuities, benefits and refunds.
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(f) To submit an annual report. To submit a report in |
July of each year
to the Board of Commissioners of the |
Water Reclamation District as of the
close of business on |
December 31st of the preceding year. The report shall
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include the following:
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(1) A balance sheet, showing the financial and |
actuarial condition of
the Fund as of the end of the |
calendar year;
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(2) A statement of receipts and disbursements |
during such year;
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(3) A statement showing changes in the asset, |
liability, reserve and
surplus accounts during such |
year;
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(4) A detailed statement of investments as of the |
end of the year; and
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(5) Any additional information as is deemed |
necessary for proper
interpretation of the condition |
of the Fund.
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(g) To subpoena witnesses. To compel witnesses to |
attend and testify
before it upon any matter concerning the |
Fund and allow witness fees not in
excess of $6 for |
attendance upon any one day. The President and other
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members of the Board may administer oaths to witnesses.
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(h) To appoint employees and consultants. To appoint |
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such actuarial,
medical, legal, investigational, clerical |
or financial employees and
consultants as are necessary, |
and fix their compensation.
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(i) To make rules. To make rules and regulations |
necessary for the
administration of the affairs of the |
Fund.
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(j) To waive guardianship. To waive the requirement of |
legal
guardianship of any minor unmarried beneficiary of |
the Fund living with a
parent or grandparent, and legal |
guardianship of any beneficiary under
legal disability |
whose husband, wife, or parent is managing such
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beneficiary's affairs, whenever the Board deems such |
waiver to be in the
best interest of the beneficiary.
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(k) To collect amounts due. To collect any amounts due |
to the Fund from
any participant or beneficiary prior to |
payment of any annuity, benefit or
refund.
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(l) To invoke rule of offset. To offset against any |
amount payable to
an employee or to any other person such |
sums as may be due to the Fund
or may have been paid by the |
Fund due to misrepresentation, fraud or error.
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(m) To assess and collect interest on amounts due to |
the Fund using the annual rate as shall from time to time |
be determined by the Board, compounded annually from the |
date of notification to the date of payment.
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(Source: P.A. 94-621, eff. 8-18-05.)
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