Public Act 90-0032 of the 90th General Assembly
Public Act 90-0032
HB0313 Enrolled LRB9000555EGfg
AN ACT in relation to public employee pensions.
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 3-110.5, 3-110.6, 4-109.1, 4-115.1,
5-167.5, 5-237, 6-164.2, 7-139.8, 7-141.1, 8-138, 8-150.1,
8-159, 8-164.1, 9-101, 9-121.13, 9-133, 9-133.1, 9-179.3,
11-134, 11-145.1, 11-154, 11-160.1, 14-104, 14-110, 15-157,
15-157.1, 16-127, 16-141, 17-106, 17-115, 17-116.1, 17-117,
17-117.1, 17-120, 17-122, 17-134, 17-146, 17-146.1 and 17-149
and adding Sections 7-145.1, 7-145.2, 9-120.1, 9-134.3,
9-146.2, and 14-104.10 as follows:
(40 ILCS 5/3-110.5) (from Ch. 108 1/2, par. 3-110.5)
Sec. 3-110.5. Transfer to Article 14 system.
(a) Until January 1, 1990, any active member of the
State Employees' Retirement System who is a State policeman
and until July 1, 1998, any active member of the State
Employees' Retirement System who is a security employee of
the Department of Corrections may apply for transfer of his
or her creditable service accumulated in any police pension
fund under this Article to the State Employees' Retirement
System. Such creditable service shall be transferred only
upon payment by such police pension fund to the State
Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of
transfer; and
(2) employer contributions in an amount equal to
the amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to
reinstate service.
Participation in this Fund shall terminate on the date of
transfer.
(b) Until January 1, 1990, any such State policeman and
until July 1, 1998, any such security employee of the
Department of Corrections may reinstate service which was
terminated by receipt of a refund, by payment to the police
pension fund of the amount of the refund with interest
thereon at the rate of 6% per year, compounded annually, from
the date of refund to the date of payment.
(Source: P.A. 86-272.)
(40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
Sec. 3-110.6. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement
System who is an investigator for the Office of the State's
Attorneys Appellate Prosecutor or a controlled substance
inspector may apply for transfer of his or her creditable
service accumulated in any police pension fund under this
Article to the State Employees' Retirement System in
accordance with Section 14-110. The creditable service shall
be transferred only upon payment by the police pension fund
to the State Employees' Retirement System of an amount equal
to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of
transfer; and
(2) employer contributions in an amount equal to
the amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to
reinstate service.
Participation in the police pension fund shall terminate on
the date of transfer.
(b) Any such investigator or inspector may reinstate
service which was terminated by receipt of a refund, by
paying to the police pension fund the amount of the refund
with interest thereon at the rate of 6% per year, compounded
annually, from the date of refund to the date of payment.
(Source: P.A. 87-1265.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age
60 if it occurs after the first anniversary of retirement, be
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased, in January of the year
following the year of attaining age 65 or in January 1972, if
then over age 65, by 2% of the originally granted monthly
pension, for each year the firefighter received pension
payments. In each January thereafter, he or she shall
receive an additional increase of 2% of the original monthly
pension. Effective January 1976, the rate of the annual
increase shall be 3%.
(c) The monthly pension of a firefighter who is
receiving a disability pension under this Article shall be
increased, in January of the year following the year the
firefighter attains age 60, or in January 1974, if then over
age 60, by 2% of the originally granted monthly pension for
each year he or she received pension payments. In each
January thereafter, the firefighter shall receive an
additional increase of 2% of the original monthly pension.
Effective January 1976, the rate of the annual increase shall
be 3%.
(c-1) On January 1, 1998, every child's disability
benefit payable on that date under Section 4-110 or 4-110.1
shall be increased by an amount equal to 1/12 of 3% of the
amount of the benefit, multiplied by the number of months for
which the benefit has been payable. On each January 1
thereafter, every child's disability benefit payable under
Section 4-110 or 4-110.1 shall be increased by 3% of the
amount of the benefit then being paid, including any previous
increases received under this Article. These increases are
not subject to any limitation on the maximum benefit amount
included in Section 4-110 or 4-110.1.
(d) The monthly pension of a firefighter who retires
after January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 55 years of age or over at retirement date, or
upon the first day of the month following attainment of age
55 if it occurs after the first anniversary of retirement, be
increased by 3% of the originally granted monthly pension for
each full year that has elapsed since the pension began, and
by an additional 3% in each January thereafter.
(e) Notwithstanding the provisions of subsection (a),
upon the first day of the month following (1) the first
anniversary of the date of retirement, or (2) the attainment
of age 55, or (3) July 1, 1987, whichever occurs latest, the
monthly pension of a firefighter who retired on or after
January 1, 1977 and on or before January 1, 1986 and did not
receive an increase under subsection (a) before July 1, 1987,
shall be increased by 3% of the originally granted monthly
pension for each full year that has elapsed since the pension
began, and by an additional 3% in each January thereafter.
The increases provided under this subsection are in lieu of
the increases provided in subsection (a).
(Source: P.A. 85-941.)
(40 ILCS 5/4-115.1) (from Ch. 108 1/2, par. 4-115.1)
Sec. 4-115.1. Eligibility of children. Dependent
benefits shall be paid to each natural child of a deceased
firefighter, and to each child legally adopted before the
firefighter attains age 50, until the child's attainment of
age 18, or marriage, whichever occurs first, whether or not
the death of the firefighter occurred prior to November 21,
1975.
Benefits payable to or on account of a child under this
Article shall not be reduced or terminated by reason of the
child's adoption by a third party after the firefighter's
death.
Benefits payable to or on account of a child under this
Article to children shall not be reduced or terminated by
reason of the child's attainment of age 18 if he or she is
then dependent by reason of a physical or mental disability
but shall continue to be paid as long as such dependency
continues. Individuals over the age of 18 and adjudged as a
disabled person pursuant to Article XIa of the Probate Act of
1975, except for persons receiving benefits under Article III
of the Illinois Public Aid Code, shall be eligible to receive
benefits under this Act.
(Source: P.A. 83-1440.)
(40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
Sec. 5-167.5. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly premium
rates may be increased for annuitants during the time of
their participation in non-Medicare plans, except as provided
in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 5-168; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/5-237)
Sec. 5-237. Transfer of creditable service to Article 9
fund.
(a) Any person who is an active participant in the
pension fund established under Article 9 of this Code and who
was employed by the office of the Cook County State's
Attorney on January 1, 1995 may apply for transfer of his or
her credits and creditable service accumulated in this Fund
to that Article 9 fund. Upon receipt of a written
application to make this transfer, the Fund shall pay to the
Article 9 fund an amount consisting of:
(1) the amounts credited to the applicant through
employee contributions, plus accumulated interest; plus
(2) an amount representing municipality
contributions, equal to the amount determined under item
(1); plus
(3) any interest paid to the Fund in order to
reinstate credits and creditable service under subsection
(b).
Participation in this Fund shall terminate on the date of the
transfer.
(a-5) Until July 1, 1998, any person who is an active
participant in the pension fund established under Article 9
of this Code and a member of the county police department as
defined in Section 9-128.1 may apply for transfer of his or
her credits and creditable service accumulated in this Fund
to that Article 9 fund. Upon receipt of a written
application to make this transfer, the Fund shall pay to the
Article 9 fund an amount consisting of:
(1) the amounts credited to the applicant through
employee contributions, plus accumulated interest; plus
(2) an amount representing municipality
contributions, equal to the amount determined under item
(1); plus
(3) any interest paid to the Fund in order to
reinstate credits and creditable service under subsection
(b).
Participation in this Fund shall terminate on the date of the
transfer.
(b) As part of a transfer under subsection (a) or (a-5),
a person may reinstate credits and creditable service that
was terminated upon receipt of a refund, by paying to the
Fund the amount of the refund plus interest thereon at the
rate of 6% per year, compounded annually, from the date of
the refund to the date of payment.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
Sec. 6-164.2. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly
premium rates may be increased for annuitants during the time
of their participation in non-Medicare plans, except as
provided in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 6-165; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
Sec. 7-139.8. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement
System who is an investigator for the Office of the State's
Attorneys Appellate Prosecutor or a controlled substance
inspector may apply for transfer of his or her credits and
creditable service accumulated in this Fund for service as a
sheriff's law enforcement employee to the State Employees'
Retirement System in accordance with Section 14-110. The
creditable service shall be transferred only upon payment by
this Fund to the State Employees' Retirement System of an
amount equal to:
(1) the amounts accumulated to the credit of the
applicant for service as a sheriff's law enforcement
employee, including interest; and
(2) municipality credits based on such service,
including interest; and
(3) any interest paid by the applicant to reinstate
such service.
Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) Any such investigator or inspector may reinstate
credits and creditable service terminated upon receipt of a
separation benefit, by paying to the Fund the amount of the
separation benefit plus interest thereon at the rate of 6%
per year to the date of payment.
(Source: P.A. 87-1265.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have
been functioning under a financial crisis.
(2) This financial crisis is expected to continue.
(3) Units of local government must depend on
additional sources of revenue and, when those sources are
not forthcoming, must establish cost-saving programs.
(4) An early retirement incentive designed
specifically to target highly-paid senior employees could
result in significant annual cost savings.
(5) The early retirement incentive should be made
available only to those units of local government that
determine that an early retirement incentive is in their
best interest.
(6) A unit of local government adopting a program
of early retirement incentives under this Section is
encouraged to implement personnel procedures to prohibit,
for at least 5 years, the rehiring (whether on payroll or
by independent contract) of employees who receive early
retirement incentives.
(7) A unit of local government adopting a program
of early retirement incentives under this Section is also
encouraged to replace as few of the participating
employees as possible and to hire replacement employees
for salaries totaling no more than 80% of the total
salaries formerly paid to the employees who participate
in the early retirement program.
It is the primary purpose of this Section to encourage
units of local government that can realize true cost savings,
or have determined that an early retirement program is in
their best interest, to implement an early retirement
program.
(b) Until the effective date of this amendatory Act of
1997, this Section does not apply to any employer that is a
city, village, or incorporated town, nor to the employees of
any such employer. Beginning on the effective date of this
amendatory Act of 1997, any employer under this Article,
including an employer that is a city, village, or
incorporated town, may establish an early retirement
incentive program for its employees under this Section. The
decision of a city, village, or incorporated town to consider
or establish an early retirement program is at the sole
discretion of that city, village, or incorporated town, and
nothing in this amendatory Act of 1997 limits or otherwise
diminishes this discretion. Nothing contained in this
Section shall be construed to require a city, village, or
incorporated town to establish an early retirement program
and no city, village, or incorporated town may be compelled
to implement such a program. All references in this Section
to an "employer" or "unit of local government" are
specifically intended to exclude every employer that is a
city, village, or incorporated town.
The benefits provided in this Section are available only
to members employed by a participating employer that has
filed with the Board of the Fund a resolution or ordinance
expressly providing for the creation of an early retirement
incentive program under this Section for its employees and
specifying the effective date of the early retirement
incentive program. Subject to the limitation in subsection
(h), an employer may adopt a resolution or ordinance
providing a program of early retirement incentives under this
Section at any time, but no more often than once in 5 years.
The resolution or ordinance shall be in substantially the
following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
WHEREAS, Section 7-141.1 of the Illinois Pension Code
provides that a participating employer may elect to adopt an
early retirement incentive program offered by the Illinois
Municipal Retirement Fund by adopting a resolution or
ordinance; and
WHEREAS, The goal of adopting an early retirement program
is to realize a substantial savings in personnel costs by
offering early retirement incentives to employees who have
accumulated many years of service credit; and
WHEREAS, Implementation of the early retirement program
will provide a budgeting tool to aid in controlling payroll
costs; and
WHEREAS, The (name of governing body) has determined that
the adoption of an early retirement incentive program is in
the best interests of the (name of participating employer);
therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of
(name of participating employer) that:
(1) The (name of participating employer) does hereby
adopt the Illinois Municipal Retirement Fund early retirement
incentive program as provided in Section 7-141.1 of the
Illinois Pension Code. The early retirement incentive
program shall take effect on (date).
(2) In order to help achieve a true cost savings, a
person who retires under the early retirement incentive
program shall lose those incentives if he or she later
accepts employment with any IMRF employer in a position for
which participation in IMRF is required or is elected by the
employee.
(3) In order to utilize an early retirement incentive as
a budgeting tool, the (name of participating employer) will
use its best efforts either to limit the number of employees
who replace the employees who retire under the early
retirement program or to limit the salaries paid to the
employees who replace the employees who retire under the
early retirement program.
(4) The effective date of each employee's retirement
under this early retirement program shall be set by (name of
employer) and shall be no earlier than the effective date of
the program and no later than one year after that effective
date; except that the employee may require that the
retirement date set by the employer be no later than the June
30 next occurring after the effective date of the program and
no earlier than the date upon which the employee qualifies
for retirement.
(5) To be eligible for the early retirement incentive
under this Section, the employee must have attained age 50
and have at least 20 years of creditable service by his or
her retirement date.
(6) The (clerk or secretary) shall promptly file a
certified copy of this resolution (ordinance) with the Board
of Trustees of the Illinois Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of
participating employer) of the County of (name), State of
Illinois, do hereby certify that I am the keeper of the books
and records of the (name of employer) and that the foregoing
is a true and correct copy of a resolution (ordinance) duly
adopted by the (governing body) at a meeting duly convened
and held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an
early retirement incentive program adopted under this
Section, a member must:
(1) be a participating employee of this Fund who,
on the effective date of the program, (i) is in active
payroll status as an employee of a participating employer
that has filed the required ordinance or resolution with
the Board, (ii) is on layoff status from such a position
with a right of re-employment or recall to service, (iii)
is on a leave of absence from such a position, or (iv) is
on disability but has not been receiving benefits under
Section 7-146 or 7-150 for a period of more than 2 years
from the date of application;
(2) have never previously received a retirement
annuity under this Article or under the Retirement
Systems Reciprocal Act using service credit established
under this Article;
(3) file with the Board within 60 days of the
effective date of the program an application requesting
the benefits provided in this Section;
(4) have at least 20 years of creditable service in
the Fund by the date of retirement, without the use of
any creditable service established under this Section;
(5) have attained age 50 by the date of retirement,
without the use of any age enhancement received under
this Section; and
(6) be eligible to receive a retirement annuity
under this Article by the date of retirement, for which
purpose the age enhancement and creditable service
established under this Section may be considered.
(d) The employer shall determine the retirement date for
each employee participating in the early retirement program
adopted under this Section. The retirement date shall be no
earlier than the effective date of the program and no later
than one year after that effective date, except that the
employee may require that the retirement date set by the
employer be no later than the June 30 next occurring after
the effective date of the program and no earlier than the
date upon which the employee qualifies for retirement. The
employer shall give each employee participating in the early
retirement program at least 30 days written notice of the
employee's designated retirement date, unless the employee
waives this notice requirement.
(e) An eligible person may establish up to 5 years of
creditable service under this Section. In addition, for each
period of creditable service established under this Section,
a person shall have his or her age at retirement deemed
enhanced by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final rate of earnings and the determination of earnings,
salary, or compensation under this or any other Article of
the Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of the reduction imposed under subdivision
(a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any
distributions required because of age. The age enhancement
established under this Section may be used in calculating a
proportionate annuity payable by this Fund under the
Retirement Systems Reciprocal Act, but shall not be used in
determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this
Section, the member must pay to the Fund an employee
contribution consisting of 4.5% of the member's highest
annual salary rate used in the determination of the final
rate of earnings for retirement annuity purposes for each
year of creditable service granted under this Section. For
creditable service established under this Section by a person
who is a sheriff's law enforcement employee to be deemed
service as a sheriff's law enforcement employee, the employee
contribution shall be at the rate of 6.5% of highest annual
salary per year of creditable service granted. Contributions
for fractions of a year of service shall be prorated. Any
amounts that are disregarded in determining the final rate of
earnings under subdivision (d)(5) of Section 7-116 (the 125%
rule) shall also be disregarded in determining the required
contribution under this subsection (f).
The employee contribution shall be paid to the Fund as
follows: If the member is entitled to a lump sum payment for
accumulated vacation, sick leave, or personal leave upon
withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted
amount directly to the Fund. If there is no such lump sum
payment or the required employee contribution exceeds the net
amount of the lump sum payment, then the remaining amount
due, at the option of the employee, may either be paid to the
Fund before the annuity commences or deducted from the
retirement annuity in 24 equal monthly installments.
(g) An annuitant who has received any age enhancement or
creditable service under this Section and thereafter accepts
employment with or enters into a personal services contract
with an employer under this Article thereby forfeits that age
enhancement and creditable service. A person forfeiting
early retirement incentives under this subsection (i) must
repay to the Fund that portion of the retirement annuity
already received which is attributable to the early
retirement incentives that are being forfeited, (ii) shall
not be eligible to participate in any future early retirement
program adopted under this Section, and (iii) is entitled to
a refund of the employee contribution paid under subsection
(f). The Board shall deduct the required repayment from the
refund and may impose a reasonable payment schedule for
repaying the amount, if any, by which the required repayment
exceeds the refund amount.
(h) The additional unfunded liability accruing as a
result of the adoption of a program of early retirement
incentives under this Section by an employer shall be
amortized over a period of 10 years beginning on January 1 of
the second calendar year following the calendar year in which
the latest date for beginning to receive a retirement annuity
under the program (as determined by the employer under
subsection (d) of this Section) occurs; except that the
employer may provide for a shorter amortization period (of no
less than 5 years) by adopting an ordinance or resolution
specifying the length of the amortization period and
submitting a certified copy of the ordinance or resolution to
the Fund no later than 6 months after the effective date of
the program. An employer, at its discretion, may accelerate
payments to the Fund.
An employer may provide more than one early retirement
incentive program for its employees under this Section.
However, an employer that has provided an early retirement
incentive program for its employees under this Section may
not provide another early retirement incentive program under
this Section until (1) the liability arising from the earlier
program has been fully paid to the Fund and (2) at least 6
years have elapsed from the effective date of the previous
program.
(Source: P.A. 89-329, eff. 8-17-95.)
(40 ILCS 5/7-145.1 new)
Sec. 7-145.1. Alternative annuity for county officers.
(a) The benefits provided in this Section and Section
7-145.2 are available only if the county board has filed with
the Board of the Fund a resolution or ordinance expressly
consenting to the availability of these benefits for its
elected county officers. The county board's consent is
irrevocable.
An elected county officer may elect to establish
alternative credits for an alternative annuity by electing in
writing to make additional optional contributions in
accordance with this Section and procedures established by
the board. The elected county officer may discontinue making
the additional optional contributions by notifying the Fund
in writing in accordance with this Section and procedures
established by the board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the Fund on the same basis and under the
same conditions as contributions required under Section
7-173.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in
full before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance
of a refund, unless the refund is repaid in full with
interest at the effective rate from the date of refund to
the date of repayment.
(b) In lieu of the retirement annuity otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund and make additional
optional contributions in accordance with this Section and
(2) has attained age 55 with at least 8 years of service
credit (or has attained age 50 with at least 20 years of
service as a sheriff's law enforcement employee) may elect to
have his retirement annuity computed as follows: 3% of the
participant's salary at the time of termination of service
for each of the first 8 years of service credit, plus 4% of
that salary for each of the next 4 years of service credit,
plus 5% of that salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of that
salary. To the extent that the elected county officer has
made additional optional contributions with respect to only a
portion of his years of service credit, his retirement
annuity will first be determined in accordance with this
Section to the extent that additional optional contributions
were made, and then in accordance with the remaining Sections
of this Article to the extent of years of service credit with
respect to which additional optional contributions were not
made.
(c) In lieu of the disability benefits otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to
perform the duties of his office, and (3) was making optional
contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability
annuity calculated in accordance with the formula in
subsection (b). For the purposes of this subsection, an
elected county officer shall be considered permanently
disabled only if: (i) disability occurs while in service as
an elected county officer and is of such a nature as to
prevent him from reasonably performing the duties of his
office at the time; and (ii) the board has received a written
certification by at least 2 licensed physicians appointed by
it stating that the officer is disabled and that the
disability is likely to be permanent.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Section 7-166, 7-167 and 7-168. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
(e) The plan of optional alternative benefits and
contributions shall be available to persons who are elected
county officers and active contributors to the Fund on or
after November 15, 1994. A person who was an elected county
officer and an active contributor to the Fund on November 15,
1994 but is no longer an active contributor may apply to make
additional optional contributions under this Section at any
time within 90 days after the effective date of this
amendatory Act of 1997; if the person is an annuitant, the
resulting increase in annuity shall begin to accrue on the
first day of the month following the month in which the
required payment is received by the Fund.
(f) For the purposes of this Section and Section
7-145.2, the terms "elected county officer" and "elected
county office" include, but are not limited to: (1) the
county clerk, recorder, treasurer, coroner, assessor (if
elected), auditor, sheriff, and State's Attorney; members of
the county board; and the clerk of the circuit court; and (2)
a person who has been appointed to fill a vacancy in an
office that is normally filled by election on a countywide
basis, for the duration of his or her service in that office.
The terms "elected county officer" and "elected county
office" do not include any officer or office of a county that
has not consented to the availability of benefits under this
Section and Section 7-145.2.
(40 ILCS 5/7-145.2 new)
Sec. 7-145.2. Alternative survivor's benefits for
survivors of county officers.
In lieu of the survivor's benefits otherwise payable
under this Article, the spouse or eligible child of any
deceased elected county officer who (1) had elected to
participate in the Fund, and (2) was either making additional
optional contributions in accordance with Section 7-145.1 on
the date of death, or was receiving an annuity calculated
under that Section at the time of death, may elect to receive
an annuity beginning on the date of the elected county
officer's death, provided that the spouse and officer must
have been married on the date of the last termination of his
or her service as an elected county officer and for a
continuous period of at least one year immediately preceding
his or her death.
The annuity shall be payable beginning on the date of the
elected county officer's death if the spouse is then age 50
or over, or beginning at age 50 if the age of the spouse is
less than 50 years. If a minor unmarried child or children
of the county officer, under age 18, also survive, and the
child or children are under the care of the eligible spouse,
the annuity shall begin as of the date of death of the
elected county officer without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of
retirement annuity earned by the elected county officer on
the date of death, subject to a minimum payment of 10% of
salary, provided that if an eligible spouse, regardless of
age, has in his or her care at the date of death of the
elected county officer any unmarried child or children of the
county officer, under age 18, the minimum annuity shall be
30% of the elected officer's salary, plus 10% of salary on
account of each minor child of the elected county officer,
subject to a combined total payment on account of a spouse
and minor children not to exceed 50% of the deceased
officer's salary. In the event there shall be no spouse of
the elected county officer surviving, or should a spouse
remarry or die while eligible minor children still survive
the elected county officer, each such child shall be entitled
to an annuity equal to 20% of salary of the elected officer
subject to a combined total payment on account of all such
children not to exceed 50% of salary of the elected county
officer. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining
a retirement annuity as provided in Section 7-145.1.
Upon the death of an elected county officer occurring
after termination of service or while in receipt of a
retirement annuity, the combined total payment to a spouse
and minor children, or to minor children alone if no eligible
spouse survives, shall be limited to 75% of the amount of
retirement annuity earned by the county officer.
Adopted children shall have status as children of the
elected county officer only if the proceedings for adoption
were commenced at least one year prior to the date of the
elected county officer's death.
Marriage of a child or attainment of age 18, whichever
first occurs, shall render the child ineligible for further
consideration in the payment of an annuity to a spouse or in
the increase in the amount thereof. Upon attainment of
ineligibility of the youngest minor child of the elected
county officer, the annuity shall immediately revert to the
amount payable upon death of an elected county officer
leaving no minor children surviving him or her. If the
spouse is under age 50 at such time, the annuity as revised
shall be deferred until such age is attained. Remarriage of
a widow or widower prior to attainment of age 55 shall
disqualify the spouse from the receipt of an annuity.
(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with
at least 20 years of service, for whom the amount of age and
service and prior service annuity combined is less than the
amount stated in this Section, shall from the date of
withdrawal, instead of all annuities otherwise provided, be
entitled to receive an annuity for life of $150 a year, plus
1 1/2% for each year of service, to and including 20 years,
and 1 2/3% for each year of service over 20 years, of his
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
An employee who withdraws after 20 or more years of
service, before age 65, shall be entitled to such annuity, to
begin not earlier than upon attained age of 55 years if under
such age at withdrawal, reduced by 2% for each full year or
fractional part thereof that his attained age is less than
65, plus an additional 2% reduction for each full year or
fractional part thereof that his attained age when annuity is
to begin is less than 60 so that the total reduction at age
55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age
60 or over, with 20 or more years of service, for whom the
age and service and prior service annuity combined, is less
than the amount stated in this paragraph, shall, from the
date of withdrawal, instead of such annuities, be entitled to
receive an annuity for life equal to 1 2/3% for each year of
service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall receive an annuity for life equal to 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 on the highest average annual
salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60 years is entitled to annuity, to begin not earlier than
upon attained age of 55 years, if under such age at
withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof
that his attained age when annuity is to begin is less than
60 if the employee was born before January 1, 1936, or 0.5%
for each such month if the employee was born on or after
January 1, 1936.
Any employee born before January 1, 1936, who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20 but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (b) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service shall not be
subject to the reduction in retirement annuity because of
retirement below age 60.
The maximum annuity payable under part (a) and (b) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971. For the purpose of the minimum annuity provided in
this Section $1,500 is considered the minimum annual salary
for any year; and the maximum annual salary for the
computation of such annuity is $4,800 for any year before
1953, $6000 for the years 1953 to 1956, inclusive, and the
actual annual salary, as salary is defined in this Article,
for any year thereafter.
To preserve rights existing on December 31, 1959, for
participants and contributors on that date to the fund
created by the Court and Law Department Employees' Annuity
Act, who became participants in the fund provided for on
January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his
salary for annuity purposes under paragraphs (a) and (b) of
this Section, for all periods of disability benefit
subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose
entire disability benefit credit period expires before
attainment of age 55 while still disabled for service, is
entitled upon withdrawal to the larger of (1) the minimum
annuity provided above, assuming he is then age 55, and
reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from
his age and service and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any
former municipal employee receiving an annuity from the fund
who re-enters service as a municipal employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(f) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and before attainment
of age 70, who withdraws after age 65, with less than 20
years of service for whom the annuity has been fixed under
this Article shall, instead of the annuity so fixed, receive
an annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that it would have contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an
employee having attained age 65 with at least 15 years of
service who withdraws from service on or after July 1, 1971
and whose annuity computed under other provisions of this
Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to
1% of the highest average annual salary, as salary is defined
and limited in this Section for any 4 consecutive years
within the last 10 years of service for each year of service,
plus the sum of $25 for each year of service. The annuity
shall not exceed 60% of such highest average annual salary.
(h) The minimum annuities provided under this Section
shall be paid in equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(j) The amendatory provisions of this amendatory Act of
1985 (P.A. 84-23) relating to the discount of annuity because
of retirement prior to attainment of age 60, and to the
retirement formula, for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(k) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of employee's
annuity shall be $550 $350 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose service in
this fund is at least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1997 January 1, 1991, with at least 10 years of service
in this fund.
The increases granted under items (1), (2) and (3) of
this subsection (k) shall not be limited by any other Section
of this Act.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
Sec. 8-150.1. Minimum annuities for widows. The widow
(otherwise eligible for widow's annuity under other Sections
of this Article 8) of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of this Article is less than the
amount provided in this Section, shall, from and after the
date her otherwise provided annuity would begin, in lieu of
such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of
annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained the
age of 60 or more years on such date if the death occurs
before July 1, 1990, or age 55 or more if the death occurs on
or after July 1, 1990. Such amount of widow's annuity shall
not, however, exceed the sum of $500 a month if the
employee's death in service occurs before January 23, 1987.
The widow's annuity shall not be limited to a maximum dollar
amount if the employee's death in service occurs on or after
January 23, 1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936 or dies in service on or after January 1, 1988, or by
0.5% for each month that her then attained age is less than
60 years if the employee was born on or after July 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained the age of 60 or more
years if retirement occurs before July 1, 1990, or on or
after the date on which he attained age 55 if retirement
occurs on or after July 1, 1990, with at least 20 years of
service, or on or after the date on which he attained age 50
if the retirement occurs on or after the effective date of
this amendatory Act of 1997 with at least 30 years of
service, shall be entitled to an annuity equal to one-half of
the amount of annuity which her deceased husband received as
of the date of his retirement on annuity, conditional upon
such widow having attained the age of 60 or more years on the
date of her husband's retirement on annuity if retirement
occurs before July 1, 1990, or age 55 or more if retirement
occurs on or after July 1, 1990. Such amount of widow's
annuity shall not, however, exceed the sum of $500 a month if
the employee's death occurs before January 23, 1987. The
widow's annuity shall not be limited to a maximum dollar
amount if the employee's death occurs on or after January 23,
1987, regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936 or withdraws from service on or
after January 1, 1988, or by 0.5% for each month that her
then attained age is less than 60 years if the employee was
born on or after January 1, 1936 and withdraws from service
before January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former municipal employee receiving an annuity from the fund
on August 9, 1965 or on the effective date of this amendatory
provision, who re-enters service as a municipal employee,
unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) In computing the amount of annuity which the husband
specified in the foregoing paragraphs (a) and (b) of this
Section would have been entitled to receive, or received,
such amount shall be the annuity to which such husband would
have been, or was entitled, before reduction in the amount of
his annuity for the purposes of the voluntary optional
reversionary annuity provided for in Sec. 8-139 of this
Article, if such option was elected.
(e) The amendatory provisions of part (a) and (b) of
this Section (increasing the maximum from $300 to $400 a
month) shall be effective as of July 1, 1971, and apply in
the case of every qualifying widow whose husband dies while
in service on or after July 1, 1971 or withdraws and enters
on annuity on or after July 1, 1971.
(f) The amendments of part (a) and (b) of this Section
by this amendatory Act of 1983 (increasing the maximum from
$400 to $500 a month) shall be effective as of January 1,
1984 and shall apply in the case of every qualifying widow
whose husband dies while in the service on or after January
1, 1984, or withdraws and enters on annuity on or after
January 1, 1984.
(g) The amendatory provisions of this amendatory Act of
1985 relating to annuity discount because of age for widows
of employees born before January 1, 1936, shall apply only to
qualifying widows of employees withdrawing or dying in
service on or after July 18, 1985.
(h) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of widow's
annuity shall be $500 $300 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1997 January 1, 1991:
(1) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose employee
spouse's service in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1997 January 1, 1991;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1997 January 1, 1991.
The increases granted under items (1), (2), (3) and (4)
of this subsection (h) shall not be limited by any other
Section of this Act.
(i) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (i) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(j) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after the effective date of this amendatory Act of 1997, the
widow may elect to receive, in lieu of any other annuity
provided under this Article, 50% of the deceased employee's
retirement annuity at the time of death reduced by 0.25% for
each month that the widow's age on the date of death is less
than 55. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (j) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
Sec. 8-159. Amount of child's annuity. Beginning on the
effective date of this amendatory Act of 1997 January 1,
1988, the amount of a child's annuity shall be $220 $120 per
month for each child while the spouse of the deceased
employee parent survives, and $250 $150 per month for each
child when no such spouse survives, and shall be subject to
the following limitations:
(1) If the combined annuities for the widow and children
of an employee whose death resulted from injury incurred in
the performance of duty, or for the children where a widow
does not exist, exceed 70% of the employee's final monthly
salary, the annuity for each child shall be reduced pro rata
so that the combined annuities for the family shall not
exceed such limitation.
(2) For the family of an employee whose death is the
result of any cause other than injury incurred in the
performance of duty, in which the combined annuities for the
family exceed 60% of the employee's final monthly salary, the
annuity for each child shall be reduced pro rata so that the
combined annuities for the family shall not exceed such
limitation.
(3) The increase in child's annuity provided by this
amendatory Act of 1997 1987 shall apply to all child's
annuities being paid on or after the effective date of this
amendatory Act of 1997. January 1, 1988, subject to The
above limitations on the combined annuities for a family in
parts (1) and (2) of this Section do not apply to families of
employees who died before the effective date of this
amendatory Act of 1997.
(4) The amendments to parts (1) and (2) of this Section
made by Public Act 84-1472 (eliminating the further
limitation that the monthly combined family amount shall not
exceed $500 plus 10% of the employee's final monthly salary)
shall apply in the case of every qualifying child whose
employee parent dies in the service or enters on annuity on
or after January 23, 1987.
(Source: P.A. 85-964.)
(40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
Sec. 8-164.1. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly premium
rates may be increased for annuitants during the time of
their participation in non-Medicare plans, except as provided
in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
Commencing on the effective date of this amendatory Act
of 1989, the board is authorized to pay to the board of
education on behalf of each person who chooses to participate
in the board of education's plan the amounts specified in
this subsection (d) during the years indicated. For the
period January 1, 1988 through the effective date of this
amendatory Act of 1989, the board shall pay to the board of
education annuitants who participate in the board of
education's health benefits plan for annuitants the following
amounts: $10 per month to each annuitant who is not qualified
to receive medicare benefits, and $14 per month to each
annuitant who is qualified to receive medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 8-189; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/9-101) (from Ch. 108 1/2, par. 9-101)
Sec. 9-101. Creation of fund. In each county of more
than 3,000,000 500,000 inhabitants a County Employees' and
Officers' Annuity and Benefit Fund shall be created, set
apart, maintained and administered, in the manner prescribed
in this Article, for the benefit of the employees and
officers herein designated and their beneficiaries.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-120.1 new)
Sec. 9-120.1. CTA - continued participation; military
service credit.
(a) A person who (i) has at least 20 years of creditable
service in the Fund, (ii) has not begun receiving a
retirement annuity under this Article, and (iii) is employed
in a position under which he or she is eligible to actively
participate in the retirement system established under
Section 22-101 of this Code may elect, after he or she ceases
to be a participant but in no event after June 1, 1998, to
continue his or her participation in this Fund while employed
by the Chicago Transit Authority, for up to 10 additional
years, by making written application to the Board.
(b) A person who elects to continue participation under
this Section shall make contributions directly to the Fund,
not less frequently than monthly, based on the person's
actual Chicago Transit Authority compensation and the rates
applicable to employees under this Fund. Creditable service
shall be granted to any person for the period, not exceeding
10 years, during which the person continues participation in
this Fund under this Section and continues to make
contributions as required. For periods of service
established under this Section, the person's actual Chicago
Transit Authority compensation shall be considered his or her
salary for purposes of calculating benefits under this
Article.
(c) A person who elects to continue participation under
this Section may cancel that election at any time.
(d) A person who elects to continue participation under
this Section may establish service credit in this Fund for
periods of employment by the Chicago Transit Authority prior
to that election, by applying in writing and paying to the
Fund an amount representing employee contributions for the
service being established, based on the person's actual
Chicago Transit Authority compensation and the rates then
applicable to employees under this Fund, without interest.
(e) A person who qualifies under this Section may elect
to purchase credit for up to 4 years of military service,
whether or not that service followed service as a county
employee. The military service need not have been served in
wartime, but the employee must not have been dishonorably
discharged. To establish this creditable service the
applicant must pay to the Fund, on or before July 1, 1998, an
amount determined by the Fund to represent the employee
contributions for the creditable service, based on the
employee's rate of compensation on his or her last day of
service as a contributor before the military service or his
or her salary on the first day of service following the
military service, whichever is greater, plus interest at the
effective rate from the date of discharge to the date of
payment. For the purposes of this subsection, "military
service" includes service in the United States armed forces
reserves.
(f) Notwithstanding any other provision of this Section,
a person may not establish creditable service under this
Section for any period for which the person receives credit
under any other public employee retirement system, including
the retirement system established under Section 22-101 of
this Code, unless the credit under that retirement system has
been irrevocably relinquished.
(40 ILCS 5/9-121.13)
Sec. 9-121.13. State's Attorney employee Transfer of
Article 5 credits.
(a) An active participant in the Fund who was employed
by the office of the Cook County State's Attorney on January
1, 1995 may transfer to this Fund credits and creditable
service accumulated under the pension fund established under
Article 5 of this Code, as provided in Section 5-237, by
submitting a written application to the Fund and paying to
the Fund the amount, if any, by which the amount transferred
to the Fund under Section 5-237 is less than the amount of
employee and employer contributions that would have been
received by the Fund if the service being transferred had
been served as a participant of this Fund, including interest
at the rate of 6% per year, compounded annually, from the
date of the service to the date of payment.
(b) Until July 1, 1998, an active participant in the
Fund who is a member of the county police department may
transfer to this Fund credits and creditable service
accumulated under the pension fund established under Article
5 of this Code, as provided in Section 5-237, by submitting a
written application to the Fund and paying to the Fund the
amount, if any, by which the amount transferred to the Fund
under Section 5-237 is less than the amount of employee and
employer contributions that would have been received by the
Fund if the service being transferred had been served as a
participant of this Fund, including interest at the rate of
6% per year, compounded annually, from the date of the
service to the date of payment.
(c) The applicant may elect to have the service
transferred be deemed service as a member of the county
police department; if the applicant so elects, the required
payment shall be calculated on the basis of the rates
applicable to members of the county police department.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
Sec. 9-133. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1959, having attained age 60 or more or,
beginning January 1, 1991, having attained 30 or more years
of creditable service, shall, in the month of January of the
year following the year in which the first anniversary of
retirement occurs, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by a further 1 1/2% in
January of each year thereafter. Beginning with January of
the year 1972, such increases shall be at the rate of 2% in
lieu of the aforesaid specified 1 1/2%. Beginning with
January of the year 1982, such increases shall be at the rate
of 3% in lieu of the aforesaid specified 2%. Beginning
January 1, 1998, these increases shall be at the rate of 3%
of the current amount of the annuity, including any previous
increases received under this Article, without regard to
whether the annuitant is in service on or after the effective
date of this amendatory Act of 1997.
An employee who retires on annuity before age 60 and,
beginning January 1, 1991, with less than 30 years of
creditable service shall receive such increases beginning
with January of the year immediately following the year in
which he attains the age of 60 years. An employee who
retires on annuity before age 60 and before January 1, 1991,
with at least 30 years of creditable service, shall be
entitled to receive the first increase under this subsection
no later than January 1, 1993.
For an employee who, in accordance with the provisions of
Section 9-108.1 of this Act, shall have become a member of
the State System established under Article 14 on February 1,
1974, the first such automatic increase shall begin in
January of 1975.
(b) Subsection (a) is not applicable to an employee
retiring and receiving a term annuity, as defined in this
Act, nor to any otherwise qualified employee who retires
before he makes employee contributions (at the 1/2 of 1% rate
as provided in this Section) for this additional annuity for
not less than the equivalent of one full year. Such
employee, however, shall make arrangement to pay to the fund
a balance of such contributions, based on his final salary,
as will bring such 1/2 of 1% contributions, computed without
interest, to the equivalent of one year's contributions.
Beginning with the month of January, 1960, each employee
shall contribute by means of salary deductions 1/2 of 1% of
each salary payment, concurrently with and in addition to the
employee contributions otherwise provided for annuity
purposes.
Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with county contributions, to defray the cost of the
specified annuity increments. Any balance in such account as
of the beginning of each calendar year shall be credited with
interest at the rate of 3% per annum.
Such additional employee contributions are not
refundable, except to an employee who withdraws and applies
for refund under this Article, or applies for annuity, and
also in cases where a term annuity becomes payable. In such
cases his contributions shall be refunded, without interest,
and charged to the prior service annuity reserve.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
Sec. 9-133.1. Automatic increases in annuity for certain
heretofore retired participants. A retired employee retired
at age 55 or over and who (a) is receiving annuity based on a
service credit of 20 or more years, and (b) does not qualify
for the automatic increases in annuity provided for in Sec.
9-133 of this Article, and (c) elects to make a contribution
to the Fund at a time and manner prescribed by the Retirement
Board, of a sum equal to 1% of the final average monthly
salary forming the basis of the calculation of their annuity
multiplied by years of credited service, or 1% of their final
monthly salary multiplied by years of credited service in any
case where the final average salary is not used in the
calculation, shall have his original fixed and payable
monthly amount of annuity increased in January of the year
following the year in which he attains the age of 65 years,
if such age of 65 years is attained in the year 1969 or
later, by an amount equal to 1 1/2%, and by an equal
additional 1 1/2% in January of each year thereafter.
Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning with January of the year 1982, such
increases shall be at the rate of 3% in lieu of the aforesaid
specified 2%. Beginning January 1, 1998, these increases
shall be at the rate of 3% of the current amount of the
annuity, including any previous increases received under this
Article, without regard to whether the annuitant is in
service on or after the effective date of this amendatory Act
of 1997.
In those cases in which the retired employee receiving
annuity has attained the age of 66 or more years in the year
1969, he shall have such annuity increased in January of the
year 1970 by an amount equal to 1 1/2% multiplied by the
number equal to the number of months of January elapsing from
and including January of the year immediately following the
year he attained the age of 65 years if retired at or prior
to age 65, or from and including January of the year
immediately following the year of retirement if retired at an
age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of
each year thereafter. Beginning with January of the year
1972, such increases shall be at the rate of 2% in lieu of
the aforesaid specified 1 1/2%. Beginning with January of
the year 1982, such increases shall be at the rate of 3% in
lieu of the aforesaid specified 2%. Beginning January 1,
1998, these increases shall be at the rate of 3% of the
current amount of the annuity, including any previous
increases received under this Article, without regard to
whether the annuitant is in service on or after the effective
date of this amendatory Act of 1997.
To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held
by the Fund, exclusive of gains or losses on sales or
exchanges of assets during the year, over and above 4% a
year, shall be used to the extent necessary and available to
finance the cost of such increases for the following year,
and such amount shall be transferred as of the end of each
year, beginning with the year 1969, to a Fund account
designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Sec. 9-214. The
sums contributed by annuitants as provided for in this
Section shall also be placed in the aforesaid Supplementary
Payment Reserve and shall be applied for and used for the
purposes of such Fund account, together with the aforesaid
interest.
In the event the monies in the Supplementary Payment
Reserve in any year arising from: (1) the available interest
income as defined hereinbefore and accruing in the preceding
year above 4% a year and (2) the contributions by retired
persons, as set forth hereinbefore, are insufficient to make
the total payments to all persons estimated to be entitled to
the annuity increases specified hereinbefore, then (3) any
interest earnings over 4% a year beginning with the year 1969
which were not previously used to finance such increases and
which were transferred to the Prior Service Annuity Reserve
may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current
year, and such sums shall be transferred from the Prior
Service Annuity Reserve.
In the event the total monies available in the
Supplementary Payment Reserve from the preceding indicated
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies
available to the total of the total payments for that year
shall be paid to each person for that year.
The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose, as specified
herein, are available.
(Source: P.A. 83-1362.)
(40 ILCS 5/9-134.3 new)
Sec. 9-134.3. Early retirement incentives.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a current contributing member of the Fund
established under this Article who, on May 1, 1997 and
within 30 days prior to the date of retirement, is (i) in
active payroll status in a position of employment under
this Article or (ii) receiving disability benefits under
Section 9-156 or 9-157;
(2) have not previously retired from the Fund;
(3) file with the Board before October 1, 1997, a
written application requesting the benefits provided in
this Section;
(4) elect to retire under this Section on or after
September 1, 1997 and on or before February 28, 1998 (or
the date established under subsection (d), if
applicable);
(5) have attained age 55 on or before the date of
retirement and before February 28, 1998; and
(6) have at least 10 years of creditable service in
the Fund, excluding service in any of the other
participating systems under the Retirement Systems
Reciprocal Act, by the effective date of the retirement
annuity or February 28, 1998, whichever occurs first.
(b) An employee who qualifies for the benefits provided
under this Section shall be entitled to the following:
(1) The employee's retirement annuity, as
calculated under the other provisions of this Article,
shall be increased at the time of retirement by an amount
equal to 1% of the employee's average annual salary for
the highest 4 consecutive years within the last 10 years
of service, multiplied by the employee's number of years
of service credit in this Fund up to a maximum of 10
years; except that the total retirement annuity,
including any additional benefits elected under Section
9-121.6 or 9-179.3, shall not exceed 80% of that highest
average annual salary.
(2) If the employee's retirement annuity is
calculated under Section 9-134, the employee shall not be
subject to the reduction in retirement annuity because of
retirement below age 60 that is otherwise required under
that Section.
(c) A person who elects to retire under the provisions
of this Section thereby relinquishes his or her right, if
any, to have the retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122 of
the Retirement Systems Reciprocal Act.
(d) In the case of an employee whose immediate
retirement could jeopardize public safety or create hardship
for the employer, the deadline for retirement provided in
subdivision (a)(4) of this Section may be extended to a
specified date, no later than August 31, 1998, by the
employee's department head, with the approval of the
President of the County Board. In the case of an employee
who is not employed by a department of the County, the
employee's "department head", for the purposes of this
Section, shall be a person designated by the President of the
County Board.
(e) Notwithstanding Section 9-161, an annuitant who
reenters service under this Article after receiving a
retirement annuity based on benefits provided under this
Section thereby forfeits the right to continue to receive
those benefits and shall have his or her retirement annuity
recalculated without the benefits provided in this Section.
(f) This Section also applies to the Fund established
under Article 10 of this Code.
(40 ILCS 5/9-146.2 new)
Sec. 9-146.2. Automatic annual increase in widow's
annuity.
(a) Every widow's annuity, other than a term annuity,
shall be increased on January 1, 1998 or the January 1
occurring on or immediately after the first anniversary of
the deceased employee's death, whichever occurs later, by an
amount equal to 3% of the amount of the annuity.
On each January 1 after the date of the initial increase
under this Section, the widow's annuity shall be increased by
an amount equal to 3% of the amount of the widow's annuity
payable at the time of the increase, including any increases
previously granted under this Article.
(b) Limitations on the maximum amount of widow's annuity
imposed under Section 9-150 do not apply to the annual
increases provided under this Section.
(c) The increases provided under this Section also apply
to compensation annuities and supplemental annuities payable
under Section 9-147. The increases provided under this
Section do not apply to term annuities.
(40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
Sec. 9-179.3. Optional plan of additional benefits and
contributions.
(a) While this plan is in effect, an employee may
establish additional optional credit for additional optional
benefits by electing in writing at any time to make
additional optional contributions. The employee may
discontinue making the additional optional contributions at
any time by notifying the fund in writing.
(b) Additional optional contributions for the additional
optional benefits shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the fund on the same basis and under the
same conditions as contributions required under Sections
9-170 and 9-176.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in
full before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance
of a refund, unless the refund is repaid in full with
interest at the effective rate from the date of refund to
the date of repayment.
(c) Additional optional benefits shall accrue for all
periods of eligible service for which additional
contributions are paid in full. The additional benefit shall
consist of an additional 1% for each year of service for
which optional contributions have been paid, based on the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to be added to the employee retirement
annuity benefits as otherwise computed under this Article.
The calculation of these additional benefits shall be subject
to the same terms and conditions as are used in the
calculation of retirement annuity under Section 9-134. The
additional benefit shall be included in the calculation of
the automatic annual increase in annuity, and in the
calculation of widow's annuity, where applicable. However no
additional benefits will be granted which produce a total
annuity greater than the applicable maximum established for
that type of annuity in this Article, and additional benefits
shall not apply to any benefit computed under Section
9-128.1.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Sections 9-164, 9-166 and 9-167. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
(e) Optional contributions shall be accounted for in a
separate Optional Contribution Reserve.
(f) The tax levy, computed under Section 9-169, shall be
based on employee contributions including the amount of
optional additional employee contributions.
(g) Service eligible under this Section may include only
service as an employee of the County as defined in Section
9-108, and subject to Sections 9-219 and 9-220. No service
granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
eligible for optional service credit. No optional service
credit may be established for any military service, or for
any service under any other Article of this Code. Optional
service credit may be established for any period of
disability paid from this fund, if the employee makes
additional optional contributions for such periods of
disability.
(h) This plan of optional benefits and contributions
shall not apply to any former county employee receiving an
annuity from the fund, who re-enters service as a County
employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(i) The effective date of the optional plan of
additional benefits and contributions shall be July 1, 1985,
or the date upon which approval is received from the Internal
Revenue Service, whichever is later.
(j) This plan of additional benefits and contributions
shall expire July 1, 2002 1997. No additional contributions
may be made after that date, and no additional benefits will
accrue after that date.
(Source: P.A. 86-1027; 87-794.)
(40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
Sec. 11-134. Minimum annuities.
(a) An employee whose withdrawal occurs after July 1,
1957 at age 60 or over, with 20 or more years of service, (as
service is defined or computed in Section 11-216), for whom
the age and service and prior service annuity combined is
less than the amount stated in this section, shall, from and
after the date of withdrawal, in lieu of all annuities
otherwise provided in this Article, be entitled to receive an
annuity for life of an amount equal to 1 2/3% for each year
of service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall be entitled to instead receive an annuity for
life equal to 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 on the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60, shall be entitled to an annuity, to begin not earlier
than age 55, if under such age at withdrawal, as computed in
the last preceding paragraph, reduced 0.25% if the employee
was born before January 1, 1936, or 0.5% if the employee was
born on or after January 1, 1936, for each full month or
fractional part thereof that his attained age when such
annuity is to begin is less than 60.
Any employee born before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20, but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (a) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service shall not be
subject to the reduction in retirement annuity because of
retirement below age 60.
The maximum annuity payable under this paragraph (a) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971. For the purpose of the minimum annuity provided in
said paragraphs $1,500 shall be considered the minimum annual
salary for any year; and the maximum annual salary to be
considered for the computation of such annuity shall be
$4,800 for any year prior to 1953, $6,000 for the years 1953
to 1956, inclusive, and the actual annual salary, as salary
is defined in this Article, for any year thereafter.
(b) For an employee receiving disability benefit, his
salary for annuity purposes under this section shall, for all
periods of disability benefit subsequent to the year 1956, be
the amount on which his disability benefit was based.
(c) An employee with 20 or more years of service, whose
entire disability benefit credit period expires prior to
attainment of age 55 while still disabled for service, shall
be entitled upon withdrawal to the larger of (1) the minimum
annuity provided above assuming that he is then age 55, and
reducing such annuity to its actuarial equivalent at his
attained age on such date, or (2) the annuity provided from
his age and service and prior service annuity credits.
(d) The minimum annuity provisions as aforesaid shall
not apply to any former employee receiving an annuity from
the fund, and who re-enters service as an employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(e) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and prior to July 1,
1950, or who shall become a contributor to the fund after
July 1, 1950 prior to attainment of age 70, who withdraws
after age 65 with less than 20 years of service, for whom the
annuity has been fixed under the foregoing sections of this
Article shall, in lieu of the annuity so fixed, receive an
annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that would have been contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(f) In lieu of the annuity provided in this or in any
other section of this Article, an employee having attained
age 65 with at least 15 years of service who withdraws from
service on or after July 1, 1971 and whose annuity computed
under other provisions of this Article is less than the
amount provided under this paragraph shall be entitled to
receive a minimum annual annuity for life equal to 1% of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding
retirement for each year of his service plus the sum of $25
for each year of service. Such annual annuity shall not
exceed the maximum percentages stated under paragraph (a) of
this Section of such highest average annual salary.
(g) Any annuity payable under the preceding subsections
of this Section 11-134 shall be paid in equal monthly
installments.
(h) The amendatory provisions of part (a) and (f) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(i) The amendatory provisions of this amendatory Act of
1985 relating to the discount of annuity because of
retirement prior to attainment of age 60 and increasing the
retirement formula for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after August 16, 1985.
(j) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of employee's
annuity shall be $550 $350 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose service in
this fund is at least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1997 January 1, 1991, with at least 10 years of service
in this fund.
The increases granted under items (1), (2) and (3) of
this subsection (j) shall not be limited by any other Section
of this Act.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
Sec. 11-145.1. Minimum annuities for widows. The widow
otherwise eligible for widow's annuity under other Sections
of this Article 11, of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of said Article 11 is less than the
amount hereinafter provided in this section, shall, from and
after the date her otherwise provided annuity would begin, in
lieu of such otherwise provided widow's and widow's prior
service annuity, be entitled to the following indicated
amount of annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained age 60
on or before such date if the death occurs before July 1,
1990, or age 55 if the death occurs on or after July 1, 1990.
The widow's annuity shall not, however, exceed the sum of
$500 a month if the employee's death in service occurs before
January 23, 1987. The widow's annuity shall not be limited
to a maximum dollar amount if the employee's death in service
occurs on or after January 23, 1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936, or dies in service on or after January 1, 1988, or 0.5%
for each month that her then attained age is less than 60
years if the employee was born on or after January 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained age 60 if retirement
occurs before July 1, 1990, or on or after the date on which
he attained age 55 if retirement occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attained age 50 if the retirement occurs on
or after the effective date of this amendatory Act of 1997
with at least 30 years of service, shall be entitled to an
annuity equal to one-half of the amount of annuity which her
deceased husband received as of the date of his retirement on
annuity, conditional upon such widow having attained age 60
on or before the date of her husband's retirement on annuity
if retirement occurs before July 1, 1990, or age 55 if
retirement occurs on or after July 1, 1990. Such amount of
widow's annuity shall not, however, exceed the sum of $500 a
month if the employee's death occurs before January 23, 1987.
The widow's annuity shall not be limited to a maximum dollar
amount if the employee's death occurs on or after January 23,
1987, regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936, or withdraws from service on or
after January 1, 1988, or 0.5% for each month that her then
attained age was less than 60 years if the employee was born
on or after January 1, 1936 and withdraws from service before
January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former employee receiving an annuity from the fund on August
2, 1965 or on the effective date of this amendatory
provision, who re-enters service as a former employee, unless
such employee renders at least 3 years of additional service
after the date of re-entry.
(d) The amendatory provisions of part (a) and (b) of
this Section (increasing the maximum from $300 to $400 a
month) shall be effective as of July 1, 1971, and apply in
the case of every qualifying widow whose husband dies while
in service on or after July 1, 1971 and prior to January 1,
1984, or withdraws and enters on annuity on or after July 1,
1971 and prior to January 1, 1984.
(e) The changes made in parts (a) and (b) of this
Section by this amendatory Act of 1983 (increasing the
maximum from $400 to $500 per month) shall apply to every
qualifying widow whose husband dies in the service on or
after January 1, 1984, or withdraws and enters on annuity on
or after January 1, 1984.
(f) The amendments to this Section by this amendatory
Act of 1985, relating to changing the discount because of age
from 1/2 of 1% to 0.25% per month for widows of employees
born before January 1, 1936, shall apply only to qualifying
widows whose husbands die while in the service on or after
August 16, 1985 or withdraw and enter on annuity on or after
August 16, 1985.
(g) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of widow's
annuity shall be $500 $300 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1997 January 1, 1991:
(1) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose employee
spouse's service in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1997 January 1, 1991;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1997 January 1, 1991.
The increases granted under items (1), (2), (3) and (4)
of this subsection (g) shall not be limited by any other
Section of this Act.
(h) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (h) (i) shall be contingent upon repayment
of the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(i) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after the effective date of this amendatory Act of 1997, the
widow may elect to receive, in lieu of any other annuity
provided under this Article, 50% of the deceased employee's
retirement annuity at the time of death reduced by 0.25% for
each month that the widow's age on the date of death is less
than 55. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (i) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
Sec. 11-154. Amount of child's annuity. Beginning on
the effective date of this amendatory Act of 1997 January 1,
1988, the amount of a child's annuity shall be $220 $120 per
month for each child while the spouse of the deceased
employee parent survives, and $250 $150 per month for each
child when no such spouse survives, and shall be subject to
the following limitations:
(1) If the combined annuities for the widow and children
of an employee whose death resulted from injury incurred in
the performance of duty, or for the children where a widow
does not exist, exceed 70% of the employee's final monthly
salary, the annuity for each child shall be reduced pro rata
so that the combined annuities for the family shall not
exceed such limitation;
(2) For the family of an employee whose death is the
result of any cause other than injury incurred in the
performance of duty, in which the combined annuities for the
family exceed 60% of the employee's final monthly salary, the
annuity for each child shall be reduced pro rata so that the
combined annuities for the family shall not exceed such
limitation.
A child's annuity shall be paid to the parent who is
providing for the child, unless another person has been
appointed the child's legal guardian.
The increase in child's annuity provided by this
amendatory Act of 1997 1987 shall apply to all child's
annuities being paid on or after the effective date of this
amendatory Act of 1997. January 1, 1988, subject to The above
limitations on the combined annuities for a family in parts
(1) and (2) of this Section do not apply to families of
employees who died before the effective date of this
amendatory Act of 1997.
(Source: P.A. 85-964.)
(40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
Sec. 11-160.1. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly premium
rates may be increased for annuitants during the time of
their participation in non-Medicare plans, except as provided
in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 11-178; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted, and be based upon employee's
compensation and contribution rate in effect on the date he
last became a member of the System; provided that for all
employment prior to January 1, 1969 the contribution rate
shall be that in effect for a noncovered employee on the date
he last became a member of the System. Contributions
permitted under this Section shall include regular interest
from the date an employee last became a member of the System
to date of payment.
These contributions must be paid in full before
retirement either in a lump sum or in installment payments in
accordance with such rules as may be adopted by the board.
(a) Any member may make contributions as required in
this Section for any period of service, subsequent to the
date of establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who,
after January 1, 1944 but prior to becoming eligible for
membership, received salary from funds of insurance companies
in the process of rehabilitation, liquidation, conservation
or dissolution, may elect to make contributions as required
in this Section for such service.
(d) Any employee who rendered service in a State office
to which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by
appointment of the Governor under the Civil Administrative
Code of Illinois and did not participate in this System may
make contributions as required in this Section for such
service.
(e) Any person employed by the United States government
or any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the
United States shall be entitled to prior service credit
covering the period from January 1, 1942 through December 31,
1943 as provided for in this Article and to membership
service credit for the period from January 1, 1944 through
November 15, 1946 by making the contributions required in
this Section. A person so employed on January 1, 1944 but
whose employment began after January 1, 1942 may qualify for
prior service and membership service credit under the same
conditions.
(f) An employee of the Department of Labor of the State
of Illinois who performed services for and under the
supervision of that Department prior to January 1, 1944 but
who was compensated for those services directly by federal
funds and not by a warrant of the Auditor of Public Accounts
paid by the State Treasurer may establish credit for such
employment by making the contributions required in this
Section. An employee of the Department of Agriculture of the
State of Illinois, who performed services for and under the
supervision of that Department prior to June 1, 1963, but was
compensated for those services directly by federal funds and
not paid by a warrant of the Auditor of Public Accounts paid
by the State Treasurer, and who did not contribute to any
other public employee retirement system for such service, may
establish credit for such employment by making the
contributions required in this Section.
(g) Any employee who executed a waiver of membership
within 60 days prior to January 1, 1944 may, at any time
while in the service of a department, file with the board a
rescission of such waiver. Upon making the contributions
required by this Section, the member shall be granted the
creditable service that would have been received if the
waiver had not been executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at
least 5 continuous years may establish creditable service for
such employment by making the contributions required under
this Section, provided that any credits earned by the
employee in the commission's retirement plan have been
terminated.
(i) Any person who rendered full time contractual
services to the General Assembly as a member of a legislative
staff may establish service credit for up to 8 years of such
services by making the contributions required under this
Section, provided that application therefor is made not later
than July 1, 1991.
(j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, an employee may establish service credit for a
period of up to 2 years spent in active military service for
which he does not qualify for credit under Section 14-105,
provided that (1) he was not dishonorably discharged from
such military service, and (2) the amount of service credit
established by a member under this subsection (j), when added
to the amount of military service credit granted to the
member under subsection (b) of Section 14-105, shall not
exceed 5 years.
(k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide
Appellate Assistance Service LEAA-ILEC grant project prior to
the time that project became the State's Attorneys Appellate
Service Commission, now the Office of the State's Attorneys
Appellate Prosecutor, an agency of State government, may
establish creditable service for not more than 60 months
service for such employment by making contributions required
under this Section.
(l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods
of less than one year spent on authorized leave of absence
from service, provided that (1) the period of leave began on
or after January 1, 1982 and (2) any credit established by
the member for the period of leave in any other public
employee retirement system has been terminated. A member may
establish service credit under this subsection for more than
one period of authorized leave, and in that case the total
period of service credit established by the member under this
subsection may exceed one year.
(Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
(40 ILCS 5/14-104.10 new)
Sec. 14-104.10. Federal or out-of-state employment. A
contributing employee may establish additional service credit
for periods of full-time employment by the federal government
or a unit of state or local government located outside
Illinois for which he or she does not qualify for credit
under any other provision of this Article, provided that (i)
the amount of service credit established by a person under
this Section shall not exceed 8 years or 40% of his or her
membership service under this Article, whichever is less,
(ii) the amount of service credit established by a person
under this Section for federal employment, when added to the
amount of all military service credit granted to the person
under this Article, shall not exceed 8 years, and (iii) any
credit received for the federal or out-of-state employment in
any federal or other public employee pension fund or
retirement system has been terminated or relinquished.
Credit may not be established under this Section for any
period of military service or for any period for which credit
has been or may be established under Section 14-110 or any
other provision of this Article.
In order to establish service credit under this Section,
the applicant must submit a written application to the System
by June 30, 1998, including documentation of the federal or
out-of-state employment satisfactory to the Board, and pay to
the System (1) employee contributions at the rates provided
in this Article based upon the person's salary on the last
day as a participating employee prior to the federal or
out-of-state employment, or on the first day as a
participating employee after that employment, whichever is
greater, plus (2) an amount determined by the Board to be
equal to the employer's normal cost of the benefits accrued
for that employment, plus (3) regular interest on items (1)
and (2) from the date of conclusion of the employment to the
date of payment.
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
(Text of Section before amendment by P.A. 89-507)
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, 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, 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. 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.
(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;
(8) security employee of the Department of Mental
Health and Developmental Disabilities;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections;
(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.
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
Local Governmental Law Enforcement Officers Training 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 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.
(8) The term "security employee of the Department
of Mental Health and Developmental Disabilities" means
any person employed by the Department of Mental Health
and Developmental Disabilities who is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, or who is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Mental Health and
Developmental Disabilities 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.
(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) The term "security employee of the Department
of Corrections" means any employee of the Department of
Corrections or the former Department of Personnel, and
any member or employee of the Prisoner Review Board, who
has daily contact with inmates by working within a
correctional facility 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.
(11) The term "dangerous drugs investigator" means
any person who is employed as such by the Department of
Alcoholism and Substance Abuse.
(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.
(d) A security employee of the Department of
Corrections, and a security employee of the Department of
Mental Health and Developmental Disabilities 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.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections 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.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), and
(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.
(Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96.)
(Text of Section after amendment by P.A. 89-507)
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, 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, 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. 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.
(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;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections;
(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.
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
Local Governmental Law Enforcement Officers Training 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 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.
(8) The term "security employee of the Department
of Human Services" means any person employed by the
Department of Human Services who is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, or who 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.
(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) The term "security employee of the Department
of Corrections" means any employee of the Department of
Corrections or the former Department of Personnel, and
any member or employee of the Prisoner Review Board, who
has daily contact with inmates by working within a
correctional facility 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.
(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.
(d) A security employee of the Department of
Corrections, 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.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections 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.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), and
(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.
(Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96;
89-507, eff. 7-1-97.)
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
Sec. 15-157. Employee Contributions.
(a) Each participating employee shall make contributions
towards the retirement annuity of 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.
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.
(b) Starting September 1, 1969, 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.
(c) Each participating employee shall make survivors
insurance contributions of 1% of earnings applicable under
this system on and after August 1, 1959. Contributions in
excess of $80 during any fiscal year beginning 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.
(Source: P.A. 86-272; 86-1488.)
(40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
Sec. 15-157.1. Pickup Pick up of employee contributions.
(a) Each employer shall pick up the employee
contributions required under subsections (a), (b), and (c) of
Section 15-157 for all earnings payments made on and after
January 1, 1981, and the contributions so picked up shall be
treated as employer contributions in determining tax
treatment under the United States Internal Revenue Code.
These contributions shall not be included as gross income of
the participant until such time as they are distributed or
made available. The employer shall pay these employee
contributions from the same source of funds which is used in
paying earnings to the employee. The employer may pick up
these contributions by a reduction in the cash salary of the
participants, or by an offset against a future salary
increase, or by a combination of a reduction in salary and
offset against a future salary increase.
(b) Subject to the requirements of federal law, a
participating employee may elect to have the employer pick up
optional contributions that the participant has elected to
pay to the System under Section 15-157(g), and the
contributions so picked up shall be treated as employer
contributions for the purposes of determining federal tax
treatment under the federal Internal Revenue Code of 1986.
These contributions shall not be included as gross income of
the participant until such time as they are distributed or
made available. The employer shall pick up the contributions
by a reduction in the cash salary of the participant and
shall pay the contributions from the same source of funds
that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable.
(Source: P.A. 83-1440.)
(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; and
(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 1995.
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) 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 one year
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 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.
(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. 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. 88-45; 89-430, eff. 12-15-95.)
(40 ILCS 5/16-141) (from Ch. 108 1/2, par. 16-141)
Sec. 16-141. Survivors' benefits - death in service.
(a) Upon the death of a member in service occurring on
or after July 1, 1990, a beneficiary designated by the member
shall be entitled to receive, in a single sum, for each
completed year of service up to a maximum of 6 years, an
amount equal to 1/6 of the member's highest annual salary
rate within the last 4 years of service. If death occurs
prior to completion of the first year of service, the
beneficiary shall be entitled to receive, in a single sum,
an amount equal to 1/6 of the most recent annual salary rate.
If no beneficiary is designated by the member or if no
designated beneficiary survives the member, the single sum
benefit under this paragraph shall be paid to the eligible
dependent beneficiary or to the trust established for such
eligible dependent beneficiary, as determined under paragraph
(3) of Section 16-140, or, if there is no dependent
beneficiary, to the decedent's estate upon receipt of proper
proof of death.
(b) If the deceased member had at least 1.5 years of
creditable service, had rendered at least 60 days of
creditable service within the 18 months immediately preceding
death and had not designated a non-dependent beneficiary who
survives, a dependent beneficiary may elect to receive,
instead of the benefit under subsection (a) of this Section,
a single sum payment of $1,000, divided by the number of such
beneficiaries, together with a survivor's benefit as
specified under the following paragraphs:
(1) A surviving spouse, if no eligible children
exist, shall receive a survivor's benefit of 30% of
average salary, beginning at age 50 or upon the date of
the member's death, whichever is later, except that if
the member's death occurred before July 1, 1973 and the
surviving spouse is less than age 55 on the effective
date of this amendatory Act of 1997, the survivor's
benefit shall begin on the effective date of this
amendatory Act of 1997 or upon the surviving spouse's
attainment of age 50, whichever occurs later at age 55.
(2) A surviving spouse, regardless of age, who is
providing for the support of the deceased member's
eligible child, shall receive a survivor's benefit of 30%
of average salary, plus the sum of (A) 20% of average
salary on account of each dependent child, and (B) 10% of
average salary divided by the number of children entitled
to this benefit.
(3) Each eligible child, if there is no eligible
surviving spouse, shall receive upon the death of the
member a survivor's benefit equal to the sum of: (A) 20%
of average salary, and (B) 10% of average salary divided
by the number of children entitled to this benefit.
(4) A dependent parent shall receive upon
attainment of age 55 or the date of the member's death,
whichever is later, a survivor's benefit of 30% of
average salary, unless dependency is terminated by
remarriage or otherwise.
(c) No election under this Section may be made by a
dependent beneficiary if a non-dependent beneficiary
designated by the member survives such member.
(d) Notwithstanding the other provisions of this
Section, if the member is in receipt of a benefit at the time
of his or her death, a dependent beneficiary shall receive a
survivor benefit beginning the first of the month following
the death of the member.
(e) In cases where the changes to this Section or
Section 16-142 made by Public Act 87-1265 this amendatory Act
of 1993 increase the amount of a single-sum death benefit
that has already been paid by the System, the System shall
pay to the beneficiary the amount of the increase provided by
this amendatory Act.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued by the
Board of Examiners, any educational, administrative,
professional, or other staff employed in a charter school
operating in compliance with the Charter Schools Law who is
certified under the law governing the certification of
teachers, and employees of the Board of Trustees, but
excluding persons contributing concurrently to any other
public employee pension system in Illinois or receiving
retirement pensions under another Article of this Code
(unless the person's eligibility to participate in that other
pension system arises from the holding of an elective public
office, and the person has held that public office for at
least 10 years), persons employed on an hourly basis, and
persons receiving pensions from the fund who are employed
temporarily by the Board of Education for 100 75 days or less
in any school year and not on an annual basis.
In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the
effective date of this amendatory Act of 1991, and whose
right to participate in the Fund is established or confirmed
by this amendatory Act, such prior participation in the Fund,
including all contributions previously made and service
credits previously earned by the person, are hereby
validated.
(40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115)
Sec. 17-115. Eligibility for service retirement pension.
(a) The Board shall find a contributor eligible for
service retirement pension when he has:
(1) 1. Left the employment of the Board of
Education or the board after completing 5 or more years
of service, or has been retired compulsorily as a regular
teacher because of age.
(2) 2. Contributed to the fund the total sums
provided in this Article.
(3) 3. Contributed as a member of the teaching
force in the public schools of the City or to the State
Universities Retirement System or to the Teachers'
Retirement System of the State of Illinois during the
last 5 years of his term of service.
(4) 4. Filed a written application for pension.
(b) In computing the years of service for which annuity
is granted, the following conditions shall apply:
(1) 1. No more than 10 years of teaching service in
public schools of the several states or in schools
operated by or under the auspices of the United States
shall be allowed. This maximum shall be reduced by the
service credit which is validated under paragraph (i) of
Section 15-113 and paragraph (3) of Section 16-127 of
this Code. Three-fifths of the term of service for which
an annuity is granted shall have been rendered in the
public schools of the city. No portion of any such
service shall be included in the total period of service
for which a pension is payable or paid by some other
public retirement system; provided that this shall not
apply to any benefit payable only after the teacher's
death or to any compensation or annuity paid by the Board
of Education after retirement from active service.
(2) 2. Up to No more than 5 years of military
active service, if preceded by service as a teacher under
this fund or under Article 16, shall be included in the
total period of service even though it can otherwise be
used in the computation of a pension or other benefit
provided for service in any branch of the armed forces of
the United States.
(Source: P.A. 83-803.)
(40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
Sec. 17-116.1. Early retirement without discount.
(a) A member retiring after June 1, 1980 and before June
30, 1995 and within 6 months of the last day of teaching for
which retirement contributions were required, may elect at
the time of application to make a one time employee
contribution to the system and thereby avoid the early
retirement reduction in allowance specified in paragraph (4)
of Section 17-116 of this Article. The exercise of the
election shall obligate the employer to also make a one time
non-refundable contribution to the fund.
(b) Subject to authorization by the employer as provided
in subsection (c), a member retiring on or after June 30,
1995 and on or before June 30, 2000 and within 6 months of
the last day of teaching for which retirement contributions
were required may elect at the time of application to make a
one-time employee contribution to the Fund and thereby avoid
the early retirement reduction in allowance specified in
paragraph (4) of Section 17-116. The exercise of the
election shall obligate the employer to also make a one-time
nonrefundable contribution to the Fund.
(c) The benefits provided in subsection (b) are
available only to members who retire, during a specified
period, from employment with an employer that has adopted and
filed with the board of the Fund a resolution expressly
providing for the creation of an early retirement without
discount program under this Section for that period.
The employer has the full discretion and authority to
determine whether an early retirement without discount
program is in its best interest and to provide such a program
to its eligible employees in accordance with this Section.
The employer may decide to authorize such a program for one
or more of the following periods: for the period beginning
July 1, 1997 and ending June 30, 1998, in which case the
resolution must be adopted by January 1, 1998; for the period
beginning July 1, 1998 and ending June 30, 1999, in which
case the resolution must be adopted by March 31, 1998; and
for the period beginning July 1, 1999 and ending June 30,
2000, in which case the resolution must be adopted by March
31, 1999. The resolution must be filed with the board of the
Fund within 10 days after it is adopted. A single resolution
may authorize an early retirement without discount program as
provided in this Section for more than one period.
Notwithstanding Section 17-157, the employer shall also
have full discretion and authority to determine whether to
allow its employees who withdrew from service on or after
June 30, 1995 and before the effective date of this
amendatory Act of 1997 to participate in an early retirement
without discount program under subsection (b). An early
retirement without discount program for those who withdrew
from service on or after June 30, 1995 and before the
effective date of this amendatory Act of 1997 may be
authorized only by a resolution of the employer that is
adopted by January 1, 1998 and filed with the board of the
Fund within 10 days after its adoption. If such a resolution
is duly adopted and filed, a person who (i) withdrew from
service with the employer on or after June 30, 1995 and
before the effective date of this amendatory Act of 1997,
(ii) qualifies for early retirement without discount under
subsection (b), (iii) applies to the Fund within 90 days
after the authorizing resolution is adopted, and (iv) pays
the required employee contribution shall have his or her
retirement pension recalculated in accordance with subsection
(b). The resulting increase shall be effective retroactively
to the starting date of the retirement pension.
(d) The one-time employee contribution shall be equal to
7% of the retiring member's highest full-time annual salary
rate used in the determination of the average salary rate for
retirement pension, or if not full-time then the full-time
equivalent, multiplied by (1) the number of years the teacher
is under age 60, or (2) the number of years the employee's
creditable service is less than 35 years, whichever is less.
The employer contribution shall be 20% of such salary
multiplied by such number of years.
(e) Upon receipt of the application and election, the
board shall determine the one time employee and employer
contributions. The provisions of this Section shall not be
applicable until all the above outlined contributions have
been received by the fund; however, the date such
contributions are received shall not be considered in
determining the effective date of retirement.
(f) The number of employees who may retire under this
Section in any year may be limited at the option of the
employer to a specified percentage of those eligible, not
lower than 30%, with the right to participate to be allocated
among those applying on the basis of seniority in the service
of the employer.
(Source: P.A. 86-272.)
(40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
Sec. 17-117. Disability retirement pension.
(a) The conditions prescribed in items 1 and 2 in
Section 17-116 for computing service retirement pensions
shall apply in the computation of disability retirement
pensions.
(1) 1. Each teacher retired or retiring after 10
years of service and with less than 20 years of service
because of permanent disability not incurred as a
proximate result of the performance of duty shall receive
a disability retirement pension equal to 1 2/3% of
average salary for each year of service.
(2) 2. If the total service is 20 years and less
than 25 years and the teacher's age is under 55, the
disability retirement pension shall equal a service
retirement pension discounted 1/2 of 1% for each month
the age of the contributor is less than 55 down to a
minimum age of 50 years, provided the disability
retirement pension so computed shall not be less than the
amount payable under paragraph 1.
(3) 3. If the total service is 20 years or more and
the teacher has attained age 55, and is under age 60, a
disability retirement pension shall equal a service
retirement pension without discount.
(4) 4. If the total service is 25 years or more
regardless of age, a disability pension shall equal a
service retirement pension without discount.
(5) 5. If the total service is 20 years or more and
the teacher is age 60 or over, a service retirement
pension shall be payable.
(b) For disability retirement pensions, the following
further conditions shall apply:
(1) 1. Written application shall be submitted
within 3 years from the date of separation.
(2) 2. The applicant shall submit to examination by
physicians appointed by the board within one year from
the date of their appointment.
(3) 3. Two physicians, appointed by the board,
shall declare the applicant to be suffering from a
disability which wholly and presumably permanently
incapacitates him for teaching or for service as an
employee of the board. In the event of disagreement by
the physicians, a third physician, appointed by the
board, shall declare the applicant wholly and presumably
permanently incapacitated.
(c) Disability retirement pensions shall begin on the
effective date of resignation or the day following the close
of the payroll period for which credit was validated,
whichever is later.
(Source: P.A. 86-1488.)
(40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)
Sec. 17-117.1. Duty disability. A teacher who becomes
wholly and presumably permanently totally incapacitated for
duty while under age 65 as the proximate result of injuries
sustained or a hazardous condition encountered in the
performance and within the scope of his duties, if such
injury or hazard was not the result of his own negligence,
shall be entitled to a duty disability benefit, provided:
(1) application for the benefit is made to the
Board not more than 6 months after a final settlement or
an award from the Industrial Commission or within 6
months of the manifestation of an injury or illness that
can be traced directly to an injury or illness for which
a claim was filed with the Industrial Commission the
occurrence of an injury disability or 6 months after the
occurrence of disablement if an occupational disease;
(2) certification is received from 2 or more
physicians designated by the board that the teacher is
physically incapacitated for teaching service; and
(3) the teacher provides the Board with a copy of
the notice of the occurrence that was filed with the
Board of Education within the time provided by law
resulting in disability is filed with the board within 90
days of the date thereof.
The benefit shall be payable during disability and shall
be 75% of the salary in effect at date of disability, payable
until the teacher's attainment of age 65. At such time if
disability still exists, the teacher shall become entitled to
a service retirement pension. Creditable service shall accrue
during the period the disability benefit is payable.
Before any action is taken by the board on an application
for a duty disability benefit, the teacher shall file a claim
with the Industrial Commission to establish that the
disability was incurred while the teacher was acting within
the scope of and in the course of his duties under the terms
of the Workers' Compensation or Occupational Diseases Acts,
whichever may be applicable. The benefit shall be payable
after a finding by the Commission that the claim was
compensable under either of the aforesaid Acts; but if such
finding is appealed the benefit shall be payable only upon
affirmance of the Commission's finding. After the teacher has
made timely application for a duty disability benefit
supported by the certificate of two or more physicians, he
shall be entitled to a disability retirement pension provided
in Section 17-117 of this Act until such time as the
Industrial Commission award finding that his disability is
duty-connected as provided in this Section becomes final.
Any amounts provided for the teacher under such Acts
shall be applied as an offset to the duty disability benefit
payable hereunder in such manner as may be prescribed by the
rules of the board.
(Source: P.A. 81-992.)
(40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120)
Sec. 17-120. Reversionary pension. Any contributor, at
any time prior to retirement on a service retirement pension,
may exercise an option of taking a lesser amount of service
retirement pension and providing with the remainder of his
equity, determined on an actuarial equivalent basis, a
reversionary pension benefit for any person named in a
written designation filed by the contributor with the board,
provided that the pension resulting from such election is not
less than $40 per month, or more than the reduced pension
payable after the exercise of the option. If the reduced
pension to the retired teacher is less than that provided for
a beneficiary, whether or not the aforesaid minimum amount is
payable, the election shall be void.
The pension to a beneficiary shall begin on the first day
of the month next following the month in which the retired
teacher dies.
If the beneficiary survives the date of retirement of the
teacher, but does not survive the retired teacher, no
reversionary pensions shall be payable, and no change shall
be made in the rate of pension granted previously to the
retired teacher if the reversionary annuity was elected prior
to January 1, 1984. If the reversionary annuity was elected
on or after January 1, 1984 and the beneficiary survives the
date of retirement of the teacher, but does not survive the
retired teacher, the teacher's service pension shall be
restored to the full service pension amount beginning on the
first day of the month next following the month in which the
beneficiary dies or on the effective date of this amendatory
Act of 1997, whichever occurs later, provided that the Board
adopts actuarial factors that take into account the
additional cost involved.
If the beneficiary dies after the such election but
before the retirement of the teacher, the election shall be
void. No change shall be permitted in the written
designation filed with the board.
In the case of a reversionary annuity elected on or after
January 1, 1984, no reversionary annuity shall be paid if the
teacher dies before the expiration of 730 days from the date
that a written designation was filed with the board, even
though the teacher was receiving a reduced annuity.
Sections 1-103.1 and 17-157 do not apply to the changes
made to this Section by this amendatory Act of 1997.
(Source: P.A. 83-812.)
(40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
Sec. 17-122. Survivor's and children's pensions - Amount.
Upon the death of a teacher who has completed at least 1 1/2
years of contributing service with either this Fund or the
State Universities Retirement System or the Teachers'
Retirement System of the State of Illinois, provided his
death occurred while (a) in active service covered by the
fund or during his first 18 months of continuous employment
without a break in service under any other participating
system as defined in the Illinois Retirement Systems
Reciprocal Act except the State Universities Retirement
System and the Teachers' Retirement System of the State of
Illinois, (b) on a creditable leave of absence, (c) on a
noncreditable leave of absence of no more than one year, or
(d) a pension was deferred or pending provided the teacher
had at least 10 years of validated service credit, or upon
the death of a pensioner otherwise qualified for such
benefit, the surviving spouse and unmarried minor children of
the deceased teacher under age 18 shall be entitled to
pensions, under the conditions stated hereinafter. Such
survivor's and children's pensions shall be based on the
average of the 4 highest consecutive years of salary in the
last 10 years of service or on the average salary for total
service, if total service has been less than 4 years,
according to the following percentages:
30% of average salary or 50% of the retirement pension
earned by the teacher, whichever is larger, subject to the
prescribed maximum monthly payment, for a surviving spouse
alone on attainment of age 50;
60% of average salary for a surviving spouse and
eligible minor children of the deceased teacher.
If no eligible spouse survives, or the surviving spouse
remarries, or the parent of the children of the deceased
member is otherwise ineligible for a survivor's pension, a
children's pension for eligible minor children under age 18
shall be paid to their parent or legal guardian for their
benefit according to the following percentages:
30% of average salary for one child;
60% of average salary for 2 or more children.
On January 1, 1981, any survivor or child who was
receiving a survivor's or children's pension on or before
January 1, 1971, shall have his survivor's or children's
pension then being paid increased by 1% for each full year
which has elapsed from the date the pension began. On January
1, 1982, any survivor or child whose pension began after
January 1, 1971, but before January 1, 1981, shall have his
survivor's or children's pension then being paid increased 1%
for each full year which has elapsed from the date the
pension began. On January 1, 1987, any survivor or child
whose pension began on or before January 1, 1977, shall have
the monthly survivor's or children's pension increased by $1
for each full year which has elapsed since the pension began.
Beginning January 1, 1990, every survivor's and
children's pension shall be increased (1) on each January 1
occurring on or after the commencement of the pension if the
deceased teacher died while receiving a retirement pension,
or (2) in other cases, on each January 1 occurring on or
after the first anniversary of the commencement of the
pension, by an amount equal to 3% of the current amount of
the pension, including all increases previously granted under
this Article, notwithstanding Section 17-157. Such increases
shall apply without regard to whether the deceased teacher
was in service on or after the effective date of this
amendatory Act of 1991, but shall not accrue for any period
prior to January 1, 1990.
Subject to the minimum established below, the maximum
amount of pension for a surviving spouse alone or one minor
child shall be $400 per month, and the maximum combined
pensions for a surviving spouse and children of the deceased
teacher shall be $600 per month, with individual pensions
adjusted for all beneficiaries pro rata to conform with this
limitation. If proration is unnecessary the minimum
survivor's and children's pensions shall be $40 per month.
The minimum total survivor's and children's pension payable
upon the death of a contributor or annuitant which occurs
after December 31, 1986, shall be 50% of the earned
retirement pension of such contributor or annuitant,
calculated without early retirement discount in the case of
death in service.
On death after retirement, the total survivor's and
children's pensions shall not exceed the monthly retirement
or disability pension paid to the deceased retirant.
Survivor's and children's benefits described in this Section
shall apply to all service and disability pensioners eligible
for a pension as of July 1, 1981.
(Source: P.A. 86-273; 86-1488.)
(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 sabbatical leaves of absence, sick leaves or
maternity or paternity leaves; (b) service with teacher or
labor organizations based upon special leaves of absence
therefor granted by the Board of Education; (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) 1. For time spent on or after September 6, 1948
on sabbatical leaves of absence or sick leaves, for which
salaries are paid, the Board of Education shall make
payroll deductions at the applicable rates in effect
during such periods.
(2) 2. For time spent on sabbatical or sick leaves
commencing on or after September 1, 1961, and for time
spent on maternity or paternity leaves, 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 the Board of Education 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 12 months
of sick leave or maternity or paternity 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 Board of Education
rules is allowed to engage in an activity for which he
receives salary or compensation.
(3) 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) 4. For service with teacher or labor
organizations authorized by special leaves of absence,
for which no payroll deductions are made by the Board of
Education, 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 the Board of Education. To the extent the
actual salary exceeds the regular salary, which shall be
defined as the salary rate, as calculated by the board of
trustees, 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 of trustees on
the increment.
(5) 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 the Board
of Education 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 conclusion of the
military service to the date of payment.
The changes to this Section made by Public Act
87-795 this amendatory Act of 1991 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) 6. A maximum of 244 unused sick days credited
to his account by the Board of Education on the date of
termination of employment. Members, upon verification of
unused sick days, may add this service time to total
creditable service.
(7) 7. In all cases where time spent on leave is
creditable and no payroll deductions therefor are made by
the Board of Education, persons desiring service credit
shall make the required contributions directly to the
fund.
(8) 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) 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)
sub-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. 86-272; 86-1488; 87-794.)
(40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146)
Sec. 17-146. To make investments. To invest the moneys
of the fund, subject to the requirements and restrictions set
forth in this Article and in Sections 1-109, 1-109.1,
1-109.2, 1-110, 1-111, 1-114 and 1-115. The total book value
of all stocks and convertible debt owned by the fund shall
not exceed 50% of the aggregate book value of all investments
of the fund, calculated on the basis of amortized cost.
No bank or savings and loan association shall receive
investment funds as permitted by this Section, unless it has
complied with the requirements established pursuant to
Section 6 of the Public Funds Investment Act. Those
requirements shall be applicable only at the time of
investment and shall not require the liquidation of any
investment at any time.
The board shall have the authority to enter into any
agreements and to 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 fund. The board may direct the
registration of securities or the holding of interests in
real property in the name of the fund or in the name of a
nominee created for the express purpose of registering
securities or holding interests in real property by a
national or state bank or trust company authorized to conduct
a trust business in the State of Illinois. The board may
hold title to interests in real property in the name of the
fund or in the name of a title holding corporation created
for the express purpose of holding title to interests in real
property.
Investments shall be carried at cost or at a book value
determined in accordance with generally accepted accounting
principles and 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.
The book value of investments held by the fund in one or
more commingled investment accounts shall be determined in
accordance with generally accepted accounting principles the
cost of its units of participation in those commingled
account or accounts.
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 such
transfer is submitted for approval to the contributors and
pensioners of the fund at elections held not less than 30
days after the adoption of such resolution by the board, and
such resolution is approved by a majority of the votes cast
on the question in both the contributors election and the
pensioners 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. 89-636, eff. 8-9-96.)
(40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1)
Sec. 17-146.1. Participation in commingled investment
funds; transfer of investment functions and securities.
(a) The retirement board may invest in any commingled
investment fund or funds established and maintained by the
Illinois State Board of Investment under the provisions of
Article 22A of this Code. The book value of all commingled
equity participations plus the book value of other stock
investments owned by this system shall not exceed the maximum
permissible percentage rate for equity investments prescribed
in Section 17-146. All commingled fund participations shall
be subject to the law governing the Illinois State Board of
Investment and the rules, policies and directives of that
Board.
(b) The retirement board may, by resolution duly adopted
by a majority vote of its membership, transfer to the
Illinois State Board of Investment created by Article 22A of
this Code, for management and administration, all investments
owned by the Fund of every kind and character. Upon
completion of such transfer, the authority of the retirement
board to make investments shall terminate. Thereafter, all
investments of the reserves of the Fund shall be made by the
Illinois State Board of Investment in accordance with the
provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day
of the fourth month next following the date of such
resolution. Before such transfer an audit of such investments
shall be completed by a certified public accountant selected
by the Illinois State Board of Investment and approved by the
Auditor General of the State of Illinois. The expense of such
audit shall be defrayed by the retirement board.
(Source: P. A. 78-645.)
(40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
Sec. 17-149. Cancellation of pensions.
If any person receiving a service or disability
retirement pension from the fund is re-employed as a teacher
by the Board of Education, the pension shall be cancelled on
the date the re-employment begins, or on the first day of a
payroll period for which service credit was validated,
whichever is earlier. However, beginning August 23, 1989,
the pension shall not be cancelled in case of a service
retirement pensioner who is temporarily re-employed for not
more than 100 75 days during any school year or on an hourly
basis and is not a contributor, provided the pensioner does
not receive salary in any school year of an amount more than
that payable to a substitute teacher for 100 75 days'
employment. A service retirement pensioner who is
temporarily re-employed for not more than 100 days during any
school year or on an hourly basis shall be entitled, at the
end of the school year, to a refund of any contributions made
to the fund during that school year.
If the pensioner does receive salary from the Board of
Education in any school year for more than 100 75 days'
employment and then is reinstated as a contributor to the
fund, the pensioner shall be deemed to have returned to
service on the first day of employment as a
pensioner-substitute. The pensioner shall reimburse the fund
for pension payments received after the return to service and
shall pay to the fund the participant's contributions
prescribed in Section 17-130 of this Article.
If the date of re-employment occurs within 5 school
months after the date of previous retirement, exclusive of
any vacation period, the member shall be deemed to have been
out of service only temporarily and not permanently retired.
Such person shall be entitled to pension payments for the
time he could have been employed as a teacher and received
salary, but shall not be entitled to pension for or during
the summer vacation prior to his return to service.
When the member again retires on pension, the time of
service and the money contributed by him during re-employment
shall be added to the time and money previously credited.
Such person must acquire 3 consecutive years of additional
contributing service before he may retire again on a pension
at a rate and under conditions other than those in force or
attained at the time of his previous retirement.
Notwithstanding Sections 1-103.1 and 17-157, the changes
to this Section made by this amendatory Act of 1997 shall
apply without regard to whether termination of service
occurred before the effective date of this amendatory Act and
shall apply retroactively to August 23, 1989.
(Source: P.A. 76-742.)
Section 90. 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 95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived from
any other Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.