Public Act 90-0031 of the 90th General Assembly
Public Act 90-0031
HB0015 Enrolled LRB9000177EGfg
AN ACT to amend the Illinois Pension Code by changing
Sections 8-125, 8-139, 8-158, 8-173, 8-201, 8-230, 8-233,
11-110, 11-124, 11-134.2, 11-153, 11-169, 11-190, 11-217, and
11-221 and adding Sections 8-230.6, 11-125.8, and 11-221.3
and to amend the State Mandates Act.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 8-125, 8-139, 8-158, 8-173, 8-201, 8-230,
8-233, 11-110, 11-124, 11-134.2, 11-153, 11-169, 11-190,
11-217, and 11-221 and adding Sections 8-230.6, 11-125.8, and
11-221.3 as follows:
(40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
Sec. 8-125. Annuity.
"Annuity": Equal monthly payments for life, unless
otherwise specified.
For annuities taking effect before January 1, 1998, the
first payment shall be due and payable one month after the
occurrence of the event upon which payment of the annuity
depends, and the last payment shall be due and payable as of
the date of the annuitant's death and shall be prorated from
the date of the last preceding payment to the date of death.;
provided that as to
For annuities taking effect on or after January 1, 1998
1991, payments shall be made as of the first day of the
calendar month during the annuity payment period, with the
first payment to be made as of the first day of the calendar
month coincidental with or next following the first day of
the annuity payment period, and the last payment to be made
as of the first day of the calendar month in which the
annuitant dies or the annuity payment period ends. For
annuities taking effect on or after January 1, 1998, all
payments shall be for the entire calendar month, without
proration.
For the purposes of this Section, the "annuity payment
period" means the period beginning on the day after the
occurrence of the event upon which payment of the annuity
depends, and ending on the day upon which the death of the
annuitant or other event terminating the annuity occurs.
(Source: P.A. 86-1488.)
(40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
Sec. 8-139. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may
elect to take a lesser amount of annuity and provide, with
the actuarial value of the amount by which his annuity is
reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to
retirement, and may be revoked by the employee at any time
before retirement. The death of the employee prior to his
retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void
the option. If the reversionary annuitant dies after the
employee's retirement, and before the death of the employee
annuitant, the reduced annuity being paid to the retired
employee annuitant shall be increased to the amount of
annuity before reduction for the reversionary annuity and no
reversionary annuity shall be payable.
The option is subject to the further condition that no
reversionary annuity shall be paid if the employee dies
before the expiration of 730 days from the date his written
designation was filed with the board, even though he has
retired and is receiving a reduced annuity.
(c) The employee exercising this option shall not reduce
his retirement annuity by more than $200 a month, or elect to
provide a reversionary annuity of less than $50 per month. No
option shall be permitted if the reversionary annuity for a
widow, when added to the widow's annuity payable under this
Article, exceeds 80% of the reduced annuity payable to the
employee.
(d) A reversionary annuity shall begin on the day
following the death of the annuitant and shall be paid as
provided in Section 8-125., with the first payment due and
payable one month later, and shall continue monthly
thereafter until the death of the reversionary annuitant;
provided that as to reversionary annuities taking effect on
or after January 1, 1991, the reversionary annuity shall
begin on the day following the death of the annuitant, with
the first payment to be made on the first day of the calendar
month following the death of the employee annuitant, and the
last payment to be made on the first day of the calendar
month in which the reversionary annuitant dies.
(e) The increases in annuity provided in Section 8-137
of this Article shall, as to an employee so electing a
reduced annuity relate to the amount of the original annuity,
and such amount shall constitute the annuity on which such
automatic increases shall be based.
(f) For annuities elected after June 30, 1983, the
amount of the monthly reversionary annuity shall be
determined by multiplying the amount of the monthly reduction
in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in
the age of the employee and the age of the reversionary
annuitant at the starting date of the employee's annuity:
Employee's Age
Reversionary
Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
younger
25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
older
(Source: P.A. 86-1488.)
(40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
Sec. 8-158. Child's annuity. A child's annuity is
payable monthly after the death of an employee parent to the
child until the child's attainment of age 18, under the
following conditions, if the child was born before the
employee attained age 65, and before he withdrew from
service:
(a) upon death resulting from injury incurred in
the performance of an act of duty;
(b) upon death in service from any cause other than
injury incurred in the performance of an act of duty, if
the employee has at least 4 years of service after the
date of his original entry into service, and at least 2
years after the date of his latest re-entry;
(c) upon death of an employee who withdraws from
service after age 55 and who has entered upon or is
eligible for annuity.
Payment shall be made as provided in Section 8-125. The
first payment shall become due and payable one month after
the date of death.
(Source: P.A. 84-1028.)
(40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
Sec. 8-173. Financing; tax levy.
(a) Except as provided in subsection (f) of this
Section, the city council of the city shall levy a tax
annually upon all taxable property in the city at a rate that
will produce a sum which, when added to the amounts deducted
from the salaries of the employees or otherwise contributed
by them will be sufficient for the requirements of this
Article, but which when extended will produce an amount not
to exceed the greater of the following: (a) The sum obtained
by the levy of a tax of .1093% of the value, as equalized or
assessed by the Department of Revenue, of all taxable
property within such city, or (b) the sum of $12,000,000.
However any city in which a Fund has been established and in
operation under this Article for more than 3 years prior to
1970, that city shall levy for the year 1970 a tax at a rate
on the dollar of assessed valuation of all taxable property
that will produce, when extended, an amount not to exceed 1.2
times the total amount of contributions made by employees to
the Fund for annuity purposes in the calendar year 1968, and,
for the year 1971 and 1972 such levy that will produce, when
extended, an amount not to exceed 1.3 times the total amount
of contributions made by of employees to the Fund for annuity
purposes in the calendar years 1969 and 1970, respectively;
and for the year 1973 an amount not to exceed 1.365 times
such total amount of contributions made by employees for
annuity purposes in the calendar year 1971; and for the year
1974 an amount not to exceed 1.430 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1972; and for the year 1975 an amount not to
exceed 1.495 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1973; and
for the year 1976 an amount not to exceed 1.560 times such
total amount of contributions made by employees for annuity
purposes in the calendar year 1974; and for the year 1977 an
amount not to exceed 1.625 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1975; and for the year 1978 and each year
thereafter such levy that will produce, when extended, an
amount not to exceed 1.690 times the total amount of
contributions made by or on behalf of employees to the Fund
for annuity purposes in the calendar year 2 years prior to
the year for which the annual applicable tax is levied.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and
in addition to the amount of tax the city is now or may
hereafter be authorized to levy for general purposes under
any laws which may limit the amount of tax which the city may
levy for general purposes. The county clerk of the county in
which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of
taxes, shall not consider the tax herein provided for as a
part of the general tax levy for city purposes, and shall not
include the same within any limitation of the percent of the
assessed valuation upon which taxes are required to be
extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected and held by him for the
benefit of the fund.
If the payments on account of taxes are insufficient
during any year to meet the requirements of this Article, the
city may issue tax anticipation warrants against the current
tax levy.
(b) On or before January 10, annually, the board shall
notify the city council of the requirements of this Article
that the tax herein provided shall be levied for that current
year. The board shall compute the amounts necessary to be
credited to the reserves established and maintained as herein
provided, and shall make an annual determination of the
amount of the required city contributions, and certify the
results thereof to the city council.
(c) In respect to employees of the city who are
transferred to the employment of a park district by virtue of
the "Exchange of Functions Act of 1957", the corporate
authorities of the park district shall annually levy a tax
upon all the taxable property in the park district at such
rate per cent of the value of such property, as equalized or
assessed by the Department of Revenue, as shall be
sufficient, when added to the amounts deducted from their
salaries and otherwise contributed by them to provide the
benefits to which they and their dependents and beneficiaries
are entitled under this Article. The city shall not levy a
tax hereunder in respect to such employees.
The tax so levied by the park district shall be in
addition to and exclusive of all other taxes authorized to be
levied by the park district for corporate, annuity fund, or
other purposes. The county clerk of the county in which the
park district is located, in reducing any tax levied under
the provisions of any act concerning the levy and extension
of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in
any limitation of the per cent of the assessed valuation upon
which taxes are required to be extended for the park
district. The proceeds of the tax levied by the park
district, upon receipt by the district, shall be immediately
paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums, to be contributed by the city and park
district and allocated for the purposes of this Article and
any interest to be contributed by the city, shall be derived
from the revenue from said tax or otherwise as expressly
provided in this Section.
If it is not possible or practicable for the city to make
contributions for age and service annuity and widow's annuity
at the same time that employee contributions are made for
such purposes, such city contributions shall be construed to
be due and payable as of the end of the fiscal year for which
the tax is levied and shall accrue thereafter with interest
at the effective rate until paid.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the
board has elected to establish a manpower program reserve,
the board shall compute the amounts necessary to be credited
to the manpower program reserves established and maintained
as herein provided, and shall make a periodic determination
of the amount of required contributions from the City to the
reserve to be reimbursed by the federal government in
accordance with rules and regulations established by the
Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the City
Council. Any such amounts shall become a credit to the City
and will be used to reduce the amount which the City would
otherwise contribute during succeeding years for all
employees.
(e) In lieu of establishing a manpower program reserve
with respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as authorized by subsection (d), the board may
elect to establish a special municipality contribution rate
for all such employees. If this option is elected, the City
shall contribute to the Fund from federal funds provided
under the Comprehensive Employment and Training Act program
at the special rate so established and such contributions
shall become a credit to the City and be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited.
(Source: P.A. 81-1536.)
(40 ILCS 5/8-201) (from Ch. 108 1/2, par. 8-201)
Sec. 8-201. To invest the reserves. To invest the
reserves of the fund in accordance with Sections 1-109,
1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
Investments made in accordance with Section 1-113 shall be
deemed to be prudent. the provisions set forth in Section
1-113 of this Act.
The retirement board may sell any security held by it at
any time it deems it desirable.
The board may enter into agreements and execute documents
that it determines to be necessary to complete any investment
transaction.
All investments shall be clearly held and accounted for
to indicate ownership by the board. The board may direct the
registration of securities in its own name or in the name of
a nominee created for the express purpose of registration of
securities by a savings and loan association or national or
State bank or trust company authorized to conduct a trust
business in the State of Illinois.
Investments shall be carried at cost or at book value in
accordance with accounting procedures approved by the board.
No adjustments shall be made in investments carrying values
for ordinary current market price fluctuations, but reserves
may be provided to account for possible losses or unrealized
gains, as determined by the board.
The book value of investments held by the fund in
commingled investment accounts shall be the cost of its units
of participation in those commingled accounts as recorded on
the books of the board.
The board of trustees of any fund established under this
Article may not transfer its investment authority, nor
transfer the assets of the fund, to any other person or
entity for the purpose of consolidating or merging its assets
and management with any other pension fund or public
investment authority, unless the board resolution authorizing
that such transfer is submitted for approval to the
contributors and retirees of the fund at elections held not
less than 30 days after the adoption of the such resolution
by the board, and the such resolution is approved by a
majority of the votes cast on the question in both the
contributors election and the retirees election. The
election procedures and qualifications governing the election
of trustees shall govern the submission of resolutions for
approval under this paragraph, insofar as they may be made
applicable.
(Source: P.A. 83-970.)
(40 ILCS 5/8-230) (from Ch. 108 1/2, par. 8-230)
Sec. 8-230. Right of employee to contribute for all
periods of service. An employee may contribute to the fund
for all periods of service (including periods served in the
armed forces of the United States if he left the service of
the employer to enter the armed forces and returned to the
service of the employer within 180 days after his discharge
from the armed service, and if the employer has not made such
payment on his behalf) except for those periods for which he
received credit in another annuity and benefit fund or
pension fund in operation in the city for the benefit of
employees of the employer, rendered by him to the employer
after the effective date by virtue of appointment or election
to a position not covered by the provisions of this Article,
such amounts as he would have contributed for annuity
purposes had deductions from his salary been made for the
purposes of the fund, at the rates in effect and in
accordance with the provisions relating to future entrants
and present employees during the period such service was
rendered. Upon making such payments, he shall be credited
with concurrent city contributions at the rates in effect
during the time such service was rendered. Such payments and
concurrent city contributions shall be made with interest at
the effective rate and shall, together with all other amounts
contributed by or for such employee, be considered in
computing the annuities for him and his widow, and any such
service for which payment is made shall be counted as service
under this Article.
Until the effective date of this amendatory Act of 1991,
in order that the foregoing service may be counted for the
purposes of Section 8-138, payment must be made in full while
the employee is in service; if payment in full is not made,
any payments made on account shall be refunded to him when he
withdraws from service, or paid to his widow if he is dead.
If there is no widow, a refund shall be paid as provided in
this Article, with interest at the effective rate. An
employee, however, may elect to have such partial payments,
together with the concurrent city contributions and interest,
credited and applied for age and service and widow's annuity,
for himself and his wife, on the assumption that the payments
made shall apply beginning with his earliest service, or his
widow, if the employee dies in service, may elect to have
such amounts credited for widow's annuity purposes, to the
extent that they do not increase her annuity above that which
she could have received if her proportionate part of the
payments and related city contributions were included and
considered, and an annuity were fixed for her on the
assumption her deceased husband had continued in service at
the rate of his final salary until he became age 65.
Beginning on the effective date of this amendatory Act of
1991, an employee who is still in service may elect to
establish credit under this Section for only a fraction of
the service that he or she is eligible to establish under
this Section. In such cases, the credit established shall be
deemed to relate to the earliest service for which credit may
be established, and shall be counted for the purposes of
Section 8-138. However, in no event shall such credit be
granted until the corresponding employee contributions have
been paid.
Beginning on the effective date of this amendatory Act of
1997, any employee who is in service, or within 90 days after
withdrawing from service, or who is an active contributor to
a participating system as defined in the Retirement Systems
Reciprocal Act, may make payments and establish credit under
this Section.
(Source: P.A. 86-1488.)
(40 ILCS 5/8-230.6 new)
Sec. 8-230.6. Payments and rollovers.
(a) The Board may adopt rules prescribing the manner of
repaying refunds and purchasing any other credits permitted
under this Article. The rules may prescribe the manner of
calculating interest when payments or repayments are made in
installments.
(b) Rollover contributions from other retirement plans
qualified under the Internal Revenue Code of 1986 may be used
to purchase any optional credit or repay any refund permitted
under this Article.
(40 ILCS 5/8-233) (from Ch. 108 1/2, par. 8-233)
Sec. 8-233. Basis of annual salary. For the purpose of
this Article, the annual salary of an employee whose salary
or wage wages is appropriated, fixed, or arranged in the
annual appropriation ordinance upon other than an annual
basis shall be determined as follows:
(a) If the employee is paid on a monthly basis, the
annual salary is:--Weekly basis: 12 times the such monthly
salary. If the employee is paid on a weekly basis, the annual
salary is; 52 times the such weekly salary.; hereby
established as the norm.
"Monthly salary" means the amount of compensation or
salary appropriated, and payable for a normal and regular
month's work in the employee's position in the service., and
"Weekly salary" means the such amount of compensation or
salary appropriated and payable for a normal and regular
week's work in the employee's position in the service., and
If the work is on a regularly scheduled regular schedule part
time basis, then "monthly salary" and "weekly salary" refer,
respectively, to the such part time monthly or weekly salary.
If the appropriation for the position is for a shorter
period than 12 months a year, or 52 weeks a year if on a
weekly basis, or the employee is in a class, grade, or
category in which the employee his assignment calls for or he
normally works for fewer a lesser period than 12 months or 52
weeks a year, then the such basis shall be adjusted downward
according and to the extent that the appropriated or
customary work such period is in less than the normal 12
months or 52 weeks of service in a year.
Compensation for overtime, at regular or overtime rates,
that is paid in addition to the appropriated regular and
normal monthly or weekly salary shall not be considered.
(b) If the employee is paid on a daily basis, the annual
salary is: Hourly basis: 260 times the such daily wage. If
the employee is paid on an hourly basis, the annual salary
is; 2080 times the such hourly wage.; hereby established as
the norm.
The norm is based on a 12-month per year, 5-day work week
of 8 hours per day and 40 hours per week, with consideration
given only to time compensated for at the straight time rate
of compensation or wage. The norm shall be increased
(subject to a maximum of 300 days or 2400 hours per year,) or
decreased for, as respects an employee, according and to the
extent that the normal and established work period, at the
straight time compensation or wage, for the position held by
him in the class, grade, or category in which the employee he
is assigned, is for a greater or lesser number of months,
weeks, days, or hours than the period on which the
established norm is based.
"Daily wage", and "hourly wage", mean, respectively, the
normal, regular, or basic straight time rate of compensation
or wage appropriated and payable for a normal and regular
day's work, or hour's work, in the employee's position in the
service.
Any time worked in excess of the norm (or the increased
or decreased norm, whichever is applicable) that, and
compensation, salary, or wage attached to or paid for such
time, which is compensated for at overtime, premium, or other
than regular or basic straight time rates, shall not be
considered as time worked, and the compensation for that work
shall not be considered or as salary or wage. Such time and
compensation shall in every case and for all purposes be
considered overtime, and shall be excluded for all purposes
under this Section and Article. However, the straight time
portion of compensation or wage, for time worked on holidays
that which fall within an employee's established norm, shall
be included for all purposes under this Section and Article.
(c) For minimum annuity purposes under Section 8-138,
where a salary rate change occurs during the year, it shall
be considered that the annual salary wage for that any year
is (1) the annual equivalent of the at such monthly, weekly,
daily, or hourly salary or wage rate that as was applicable
for the greater number of months, weeks, days, or hours
(whichever is applicable), respectively, in the each year
under consideration, or (2) the annual equivalent of the
average salary or wage rate in effect for the employee during
the year, whichever is greater. The average salary or wage
rate shall be calculated by multiplying each salary or wage
rate in effect for the employee during the year by the number
of months, weeks, days, or hours (whichever is applicable)
during which that rate was in effect, and dividing the sum of
the resulting products by the total number of months, weeks,
days, or hours (whichever is applicable) worked by the
employee during the year.
(d) The changes to subsection (c) made by this
amendatory Act of 1997 apply to persons withdrawing from
service on or after July 1, 1990 and for each such person are
intended to be retroactive to the date upon which the
affected annuity began. The Fund shall recompute the
affected annuity and shall pay the additional amount due for
the period before the increase resulting from this amendatory
Act in a lump sum, without interest.
(Source: Laws 1963, p. 3256.)
(40 ILCS 5/11-110) (from Ch. 108 1/2, par. 11-110)
Sec. 11-110. Employee, contributory, contributor or
participant.
"Employee", "contributory", "contributor" or
"participant":
(a) Any employee of an employer in a position classified
by the civil service commission thereof as labor service and
who was appointed to such position under the Civil Service
Act, other than by temporary appointment as defined in said
Act.;
(b) Any employee in the service of an employer before
the Civil Service Act came into effect for the employer.;
(c) Any person employed by the board.;
(d) Any person employed by a retirement board of any
other annuity and benefit fund in such city which is on a
reserve basis on the effective date or thereafter in
operation for the employer, other than the fund created by
this Article., who applies for participation in this fund
within 6 months from the date of his eligibility for
participation or within 6 months from August 1, 1949,
whichever is later;
(e) Any person employed after July 31, 1951, by
temporary appointment as defined in Section 10 of the Civil
Service Act, in a position classified by the Civil Service
Commission of the employer as labor service of the employer;
or in the case of a city operating under a municipal
personnel ordinance, any employee of an employer employed
under the provisions of such municipal personnel ordinance as
labor service of the employer.
(Source: P.A. 83-499.)
(40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
Sec. 11-124. Annuity.
"Annuity": Equal monthly payments for life, unless
terminated earlier under Section 11-148, 11-152, 11-153, or
11-230 otherwise specified in Sections 11-148 and 11-152.
For annuities taking effect before January 1, 1998, the
first payment shall be due and payable one month after the
occurrence of the event upon which payment of the annuity
depends, and payment shall be made for any part of a monthly
period in which death of the annuitant occurs.; provided that
as to
For annuities taking effect on or after January 1, 1998
1991, payments shall be made as of the first day of the
calendar month during the annuity payment period, with the
first payment to be made as of the first day of the calendar
month coincidental with or next following the first day of
the annuity payment period, and the last payment to be made
as of the first day of the calendar month in which the
annuitant dies or the annuity payment period ends. For
annuities taking effect on or after January 1, 1998, all
payments shall be for the entire calendar month, without
proration.
For the purposes of this Section, the "annuity payment
period" means the period beginning on the day after the
occurrence of the event upon which payment of the annuity
depends, and ending on the day upon which the death of the
annuitant or other event terminating the annuity occurs.
(Source: P.A. 86-1488.)
(40 ILCS 5/11-125.8 new)
Sec. 11-125.8. Service as police officer, firefighter, or
teacher.
(a) Service rendered by an employee as a police officer
and member of the regularly constituted police department of
the city, or as a firefighter and regular member of the paid
fire department of the city, or as a teacher in the public
school system in the city shall be counted, for the purposes
of this Article, as service rendered as an employee of the
city. Salary received for any such service shall be treated,
for the purposes of this Article, as salary received for the
performance of duty as an employee.
(b) Credit shall be granted under subsection (a) only if
(1) the employee pays to the fund prior to his or her
separation from service an amount equal to the employee
contributions that would have been payable for that service,
based on the salary actually received, plus interest at the
effective rate, and (2) the employee has terminated any
credit for that service earned in any other annuity and
benefit fund or pension fund in operation in the city for the
benefit of police officers, firefighters, or teachers.
(40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
Sec. 11-134.2. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may
elect to take a lesser amount of annuity and provide, with
the actuarial value of the amount by which his annuity is
reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to
retirement, and may be revoked by the employee at any time
before retirement. The death of the employee prior to his
retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void
the option. If the reversionary annuitant dies after the
employee's retirement, and before the death of the employee
annuitant, the reduced annuity being paid to the retired
employee annuitant shall be increased to the amount of
annuity before reduction for the reversionary annuity and no
reversionary annuity shall be payable.
The option is subject to the further condition that no
reversionary annuity shall be paid if the employee dies
before the expiration of 730 days from the date his written
designation was filed with the board, even though he has
retired and is receiving a reduced annuity.
(c) The employee exercising this option shall not reduce
his retirement annuity by more than $200 per month, or elect
to provide a reversionary annuity of less than $50 per month.
No option shall be permitted if the reversionary annuity for
a widow, when added to the widow's annuity payable under this
Article, exceeds 80% of the reduced annuity payable to the
employee.
(d) A reversionary annuity shall begin on the day
following the death of the annuitant and shall be paid as
provided in Section 11-124., with the first payment due and
payable one month later, and shall continue monthly
thereafter until the death of the reversionary annuitant;
provided that as to reversionary annuities taking effect on
or after January 1, 1991, the reversionary annuity shall
begin on the day following the death of the annuitant, with
the first payment to be made on the first day of the calendar
month following the death of the employee annuitant, and the
last payment to be made on the first day of the calendar
month in which the reversionary annuitant dies.
(e) The increases in annuity provided in Section
11-134.1 of this Article shall, as to an employee so electing
a reduced annuity, relate to the amount of the original
annuity, and such amount shall constitute the annuity on
which such increases shall be based.
(f) For annuities elected after June 30, 1983, the
amount of the monthly reversionary annuity shall be
determined by multiplying the amount of the monthly reduction
in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in
the age of the employee and the age of the reversionary
annuitant at the starting date of the employee's annuity:
Employee's Age
Reversionary
Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
younger
25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
older
(Source: P.A. 86-1488.)
(40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
Sec. 11-153. Child's annuity.
(a) A "Child's Annuity" shall be payable monthly after
the death of an employee parent to an unmarried child until
the child's attainment of age 18 or marriage, whichever event
shall first occur, under the following conditions, if the
child was born or in esse before the employee attained age
65, and before he withdrew from service:
(1) upon death resulting from injury incurred in
the performance of an act of duty;
(2) upon death in service from any cause other than
injury incurred in the performance of duty, if the
employee has at least 4 years of service after the date
of his original entry into service, and at least 2 years
after the date of his latest re-entry;
(3) upon death of an employee who withdraws from
service after age 55 and who has entered upon or is
eligible for annuity.
Payment shall be made as provided in Section 11-124. The
first payment shall become due and payable one month after
the date of death. No payment shall be made for any
fractional part of the monthly period in which the annuitant
shall die or marry or attain age 18.
(b) After July 24, 1967, an adopted child shall be
entitled to the same child's annuity benefits provided for
natural children in this Article, if:
(1) the child was legally adopted by the employee
at least one year prior to the death of the employee; and
(2) the child was adopted before the employee
attained age 55.
(Source: P.A. 84-1028.)
(40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
Sec. 11-169. Financing; tax levy.
(a) Except as provided in subsection (f) of this
Section, the city council of the city shall levy a tax
annually upon all taxable property in the city at the rate
that will produce a sum which, when added to the amounts
deducted from the salaries of the employees or otherwise
contributed by them, will be sufficient for the requirements
of this Article. For the years prior to the year 1950 the tax
rate shall be as provided for under "The 1935 Act".
Beginning with the year 1950 to and including the year 1969
such tax shall be not more than .036% annually of the value,
as equalized or assessed by the Department of Revenue, of all
taxable property within such city. Beginning with the year
1970 and each year thereafter the city shall levy a tax
annually at a rate on the dollar of the value, as equalized
or assessed by the Department of Revenue of all taxable
property within such city that will produce, when extended,
not to exceed an amount equal to the total amount of
contributions by the employees to the fund made in the
calendar year 2 years prior to the year for which the annual
applicable tax is levied, multiplied by 1.1 for the years
1970, 1971 and 1972; 1.145 for the year 1973; 1.19 for the
year 1974; 1.235 for the year 1975; 1.280 for the year 1976;
1.325 for the year 1977; and 1.370 for the year 1978 and for
each year thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and
in addition to the amount of tax the city is now or may
hereafter be authorized to levy for general purposes under
any laws which may limit the amount of tax which the city may
levy for general purposes. The county clerk of the county in
which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of
taxes, shall not consider the tax herein provided for as a
part of the general tax levy for city purposes, and shall not
include the same within any limitation of the per cent of the
assessed valuation upon which taxes are required to be
extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected and held by him for the
benefit of the fund.
If the payments on account of taxes are insufficient
during any year to meet the requirements of this Article, the
city may issue tax anticipation warrants against the current
tax levy.
(b) On or before January 10, annually, the board shall
notify the city council of the requirement of this Article
that the tax herein provided shall be levied for that current
year. The board shall compute the amounts necessary for the
purposes of this fund to be credited to the reserves
established and maintained as herein provided, and shall make
an annual determination of the amount of the required city
contributions; and certify the results thereof to the city
council.
(c) In respect to employees of the city who are
transferred to the employment of a park district by virtue of
"Exchange of Functions Act of 1957" the corporate authorities
of the park district shall annually levy a tax upon all the
taxable property in the park district at such rate per cent
of the value of such property, as equalized or assessed by
the Department of Revenue, as shall be sufficient, when added
to the amounts deducted from their salaries and otherwise
contributed by them, to provide the benefits to which they
and their dependents and beneficiaries are entitled under
this Article. The city shall not levy a tax hereunder in
respect to such employees.
The tax so levied by the park district shall be in
addition to and exclusive of all other taxes authorized to be
levied by the park district for corporate, annuity fund, or
other purposes. The county clerk of the county in which the
park district is located, in reducing any tax levied under
the provisions of any Act concerning the levy and extension
of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in
any limitation of the per cent of the assessed valuation upon
which taxes are required to be extended for the park
district. The proceeds of the tax levied by the park
district, upon receipt by the district, shall be immediately
paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums to be contributed by the city and
allocated for the purposes of this Article and any interest
to be contributed by the city, shall be taken from the
revenue derived from the tax and no money of such city
derived from any source other than the levy and collection of
the tax or the sale of tax anticipation warrants in
accordance with the provisions of this Article shall be used
to provide revenue for this Article, except as expressly
provided in this Section.
If it is not possible for the city to make contributions
for age and service annuity and widow's annuity concurrently
with the employee's contributions made for such purposes,
such city shall make such contributions as soon as possible
and practicable thereafter with interest thereon at the
effective rate to the time they shall be made.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the
board has elected to establish a manpower program reserve,
the board shall compute the amounts necessary to be credited
to the manpower program reserves established and maintained
as herein provided, and shall make a periodic determination
of the amount of required contributions from the City to the
reserve to be reimbursed by the federal government in
accordance with rules and regulations established by the
Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the City
Council. Any such amounts shall become a credit to the City
and will be used to reduce the amount which the City would
otherwise contribute during succeeding years for all
employees.
(e) In lieu of establishing a manpower program reserve
with respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as authorized by subsection (d), the board may
elect to establish a special municipality contribution rate
for all such employees. If this option is elected, the City
shall contribute to the Fund from federal funds provided
under the Comprehensive Employment and Training Act program
at the special rate so established and such contributions
shall become a credit to the City and be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited.
(Source: P.A. 81-1536.)
(40 ILCS 5/11-190) (from Ch. 108 1/2, par. 11-190)
Sec. 11-190. To invest the reserves. To invest the
reserves of the fund in accordance with Sections 1-109,
1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
Investments made in accordance with Section 1-113 shall be
deemed to be prudent. the provisions set forth in Section
1-113 of this Act.
The retirement board may sell any security held by it at
any time it deems it desirable.
The board may enter into any agreements and execute any
documents that it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for
to indicate ownership by the board. The board may direct the
registration of securities in its own name or in the name of
a nominee created for the express purpose of registration of
securities by a savings and loan association or national or
State bank or trust company authorized to conduct a trust
business in the State of Illinois.
Investments shall be carried at cost or at book value in
accordance with accounting procedures approved by the board.
No adjustments shall be made in investment carrying values
for ordinary current market price fluctuations, but reserves
may be provided to account for possible losses or unrealized
gains, as determined by the board.
The book value of investments held by the fund in
commingled investment accounts shall be the cost of its units
of participation in those commingled accounts as recorded on
the books of the board.
The board of trustees of any fund established under this
Article may not transfer its investment authority, nor
transfer the assets of the fund, to any other person or
entity for the purpose of consolidating or merging its assets
and management with any other pension fund or public
investment authority, unless the board resolution authorizing
that such transfer is submitted for approval to the
contributors and retirees of the fund at elections held not
less than 30 days after the adoption of the such resolution
by the board, and the such resolution is approved by a
majority of the votes cast on the question in both the
contributors election and the retirees election. The
election procedures and qualifications governing the election
of trustees shall govern the submission of resolutions for
approval under this paragraph, insofar as they may be made
applicable.
(Source: P.A. 83-970.)
(40 ILCS 5/11-217) (from Ch. 108 1/2, par. 11-217)
Sec. 11-217. Basis of annual salary. For the purpose of
this Article, the annual salary of an employee whose salary
or wage wages is appropriated, fixed, or arranged in the
annual appropriation ordinance upon other than an annual
basis shall be determined as follows:
(a) If the employee is paid on a monthly basis, the
annual salary is:--Weekly basis: 12 times the such monthly
salary. If the employee is paid on a weekly basis, the annual
salary is; 52 times the such weekly salary.; hereby
established as the norm.
"Monthly salary" means the amount of compensation or
salary appropriated, and payable for a normal and regular
month's work in the employee's position in the service., and
"Weekly salary" means the such amount of compensation or
salary appropriated and payable for a normal and regular
week's work in the employee's position in the service., and
If the work is on a regularly scheduled regular schedule part
time basis, then "monthly salary" and "weekly salary" refer,
respectively, to the such part time monthly or weekly salary.
If the appropriation for the position is for a shorter
period than 12 months a year, or 52 weeks a year if on a
weekly basis, or the employee is in a class, grade, or
category in which the employee his assignment calls for or he
normally works for fewer a lesser period than 12 months or 52
weeks a year, then the such basis shall be adjusted downward
according and to the extent that the appropriated or
customary work such period is less than the normal 12 months
or 52 weeks of service in a year.
Compensation for overtime, at regular or overtime rates,
that is paid in addition to the appropriated regular and
normal monthly or weekly salary shall not be considered.
(b) If the employee is paid on a daily basis, the annual
salary is: Hourly basis: 260 times the such daily wage. If
the employee is paid on an hourly basis, the annual salary
is; 2080 times the such hourly wage.; hereby established as
the norm.
The norm is based on a 12-month per year, 5-day work week
of 8 hours per day and 40 hours per week, with consideration
given only to time compensated for at the straight time rate
of compensation or wage. The norm shall be increased
(subject to a maximum of 300 days or 2400 hours per year,) or
decreased for, as respects an employee, according and to the
extent that the normal and established work period, at the
straight time compensation or wage, for the position held by
him in the class, grade, or category in which the employee he
is assigned, is for a greater or lesser number of months,
weeks, days, or hours than the period on which the
established norm is based.
"Daily wage", and "hourly wage", mean, respectively, the
normal, regular, or basic straight time rate of compensation
or wage appropriated and payable for a normal and regular
day's work, or hour's work, in the employee's position in the
service.
Any time worked in excess of the norm (or the increased
or decreased norm, whichever is applicable) that, and
compensation, salary, or wage attached to or paid for such
time, which is compensated for at overtime, premium, or other
than regular or basic straight time rates, shall not be
considered as time worked, and the compensation for that work
shall not be considered or as salary or wage. Such time and
compensation shall in every case and for all purposes be
considered overtime, and shall be excluded for all purposes
under this Section and Article. However, the straight time
portion of compensation or wage, for time worked on holidays
that which fall within an employee's established norm, shall
be included for all purposes under this Section and Article.
(c) For minimum annuity purposes under Section 11-134,
where a salary rate change occurs during the year, it shall
be considered that the annual salary wage for that any year
is (1) the annual equivalent of the at such monthly, weekly,
daily, or hourly salary or wage rate that as was applicable
for the greater number of months, weeks, days, or hours
(whichever is applicable), respectively, in the each year
under consideration, or (2) the annual equivalent of the
average salary or wage rate in effect for the employee during
the year, whichever is greater. The average salary or wage
rate shall be calculated by multiplying each salary or wage
rate in effect for the employee during the year by the number
of months, weeks, days, or hours (whichever is applicable)
during which that rate was in effect, and dividing the sum of
the resulting products by the total number of months, weeks,
days, or hours (whichever is applicable) worked by the
employee during the year.
(d) The changes to subsection (c) made by this
amendatory Act of 1997 apply to persons withdrawing from
service on or after July 1, 1990 and for each such person are
intended to be retroactive to the date upon which the
affected annuity began. The Fund shall recompute the
affected annuity and shall pay the additional amount due for
the period before the increase resulting from this amendatory
Act in a lump sum, without interest.
(Source: Laws 1963, p. 2318.)
(40 ILCS 5/11-221) (from Ch. 108 1/2, par. 11-221)
Sec. 11-221. Employees under Act.
(a) Any contributor becoming employed on or after the
effective date (except a participant in any other annuity,
retirement or pension fund in operation in such city) shall
be subject to the provisions of this Article. Any such
contributor shall continue as a contributor to this fund, in
the event that he shall be employed by an employer in any
capacity, other than as a member of the police department, or
as a member of the fire department or as a public school
teacher.
(b) Beginning August 1, 1949, any contributor shall have
the right to contribute for service rendered an employer or
retirement board after July 1, 1935, by virtue of appointment
to a position which did not include him under the provisions
of "The 1935 Act". Such contributions shall be the amounts he
would have contributed for annuity purposes had deductions
from his salary been made for the purposes of the fund in
accordance with the provisions of "The 1935 Act" relating to
future entrants and present employees during the period such
service was rendered.
Periods of service for the aforesaid employee shall
include service in the armed forces of the United States if
he left the employment of an employer to enter the armed
forces and returned to the employ of the employer within 90
days after his discharge from such armed forces, and if such
employer has not made such payment on his behalf. Those
periods for which he has received and retains credit in some
other annuity or pension fund in operation in such city for
the benefit of employees of an employer shall not be
included. Upon making such payments such employee shall be
credited with concurrent city contributions at the rates in
effect for contributors during the period of time such
service was rendered. Such payments and concurrent city
contributions shall be made with interest at the effective
rate and shall together with all other amounts contributed by
or for such employee for all annuity purposes, be considered
in computing the annuity or annuities to which such employee
or his widow shall have a right. Any such period of service
for which payment is made by such employee shall be counted
as a period of service for annuity purposes under this
Article.
Until the effective date of this amendatory Act of 1991,
in order to be credited for a minimum annuity, all such
payments by a contributor must be made in full while such
contributor is still in the service; if payment is not made
in full while such contributor is in service, any payments
made shall be refunded to him when he withdraws from the
service or to his widow in the event of his death or if no
widow in accordance with the other refund provisions of this
Article. Such employee may elect to have such partial
payments together with the concurrent city contributions and
interest, credited and applied for age and service and
widow's annuity, for himself and his wife, on the assumption
that the payments made shall apply to his earliest service.
In the event of his death while in the service, his widow may
elect to have such payments and related city contributions
and interest, credited for widow's annuity, to the extent
that they do not increase her annuity above that which she
could have received if such amounts were included, and an
annuity were fixed for her on the assumption that her
deceased husband had continued in service at the rate of his
final salary until he became 65 years of age.
Beginning on the effective date of this amendatory Act of
1991, an employee who is still in service may elect to
establish credit under this Section for only a fraction of
the service that he or she is eligible to establish under
this Section. In such cases, the credit established shall be
deemed to relate to the earliest service for which credit may
be established. In no event shall such credit be granted
until the corresponding employee contributions have been
paid.
Beginning on the effective date of this amendatory Act of
1997, any employee who is in service, or within 90 days after
withdrawing from service, or who is an active contributor to
a participating system as defined in the Retirement Systems
Reciprocal Act, may make payments and establish credit under
this Section.
(c) Any employee, who shall become a participant in any
other annuity, retirement or pension fund now or hereafter in
operation in such city for the benefit of employees of an
employer, shall have the right, notwithstanding other
provisions of this Article relating to participation in other
funds, to elect to receive a refund or an annuity from this
fund in the same manner as he would if he had then resigned
from his position in the service and had not become a
participant in any such other fund. No credit shall be
allowed for any period of service as a participant in this
fund for which he shall receive credit in such other fund. No
annuity payments shall be paid to such participant during the
time he holds a position in the service which entitles him to
participation in such other fund.
(Source: P.A. 86-1488.)
(40 ILCS 5/11-221.3 new)
Sec. 11-221.3. Payments and rollovers.
(a) The Board may adopt rules prescribing the manner of
repaying refunds and purchasing any other credits permitted
under this Article. The rules may prescribe the manner of
calculating interest when payments or repayments are made in
installments.
(b) Rollover contributions from other retirement plans
qualified under the Internal Revenue Code of 1986 may be used
to purchase any optional credit or repay any refund permitted
under this Article.
Section 10. The State Mandates Act is amended by adding
Section 8.21 as follows:
(30 ILCS 805/8.21 new)
Sec. 8.21. 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 1997.
Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
40 ILCS 5/8-125 from Ch. 108 1/2, par. 8-125
40 ILCS 5/8-139 from Ch. 108 1/2, par. 8-139
40 ILCS 5/8-158 from Ch. 108 1/2, par. 8-158
40 ILCS 5/8-173 from Ch. 108 1/2, par. 8-173
40 ILCS 5/8-201 from Ch. 108 1/2, par. 8-201
40 ILCS 5/8-230 from Ch. 108 1/2, par. 8-230
40 ILCS 5/8-230.6 new
40 ILCS 5/8-233 from Ch. 108 1/2, par. 8-233
40 ILCS 5/11-110 from Ch. 108 1/2, par. 11-110
40 ILCS 5/11-124 from Ch. 108 1/2, par. 11-124
40 ILCS 5/11-125.8 new
40 ILCS 5/11-134.2 from Ch. 108 1/2, par. 11-134.2
40 ILCS 5/11-153 from Ch. 108 1/2, par. 11-153
40 ILCS 5/11-169 from Ch. 108 1/2, par. 11-169
40 ILCS 5/11-190 from Ch. 108 1/2, par. 11-190
40 ILCS 5/11-217 from Ch. 108 1/2, par. 11-217
40 ILCS 5/11-221 from Ch. 108 1/2, par. 11-221
40 ILCS 5/11-221.3 new
30 ILCS 805/8.21 new