Public Act 90-0448 of the 90th General Assembly
Public Act 90-0448
SB665 Enrolled LRB9000602EGfg
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 State Salary and Annuity Withholding Act
is amended by changing Sections 2, 4, 8, and 9 as follows:
(5 ILCS 365/2) (from Ch. 127, par. 352)
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
"Office" means the State Comptroller, the Board of
Trustees of the State Universities Retirement System, or the
Board of Trustees of any of the following institutions: the
University of Illinois, the Board of Trustees of Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, and Western Illinois University the
Board of Governors of State Colleges and Universities and the
universities and colleges under its jurisdiction and the
Board of Regents and the universities under its jurisdiction.
"Department" means any department, board, commission,
institution, officer, court, or any agency of the State
government, other than the University of Illinois, Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, and Western Illinois University,
receiving State appropriations and having the power to
certify payrolls to the Comptroller authorizing payments of
salary or wages from such appropriations from any State fund
or from trust funds held by the State Treasurer; and the
Board of Trustees of the General Assembly Retirement System,
the Board of Trustees of the State Employees' Retirement
System of Illinois, the Board of Trustees of the Teachers'
Retirement System of the State of Illinois, and the Board of
Trustees of the Judges Retirement System of Illinois created
respectively by Articles 2, 14, 16, and 18 of the "Illinois
Pension Code.", approved March 18, 1963, as heretofore
amended;
"Employee" means any regular officer or employee who
receives salary or wages for personal service rendered to the
State of Illinois and, for the purpose of deduction for the
purchase of United States Savings Bonds, includes any State
contractual employee.;
"Annuitant" means a person receiving a service retirement
annuity allowance or ordinary or accidental disability
benefits under Article 2, Article 14, 15, 16, or Article 18
of the "Illinois Pension Code.", approved March 18, 1963, as
heretofore and hereafter amended;
"Annuity" means the service retirement annuity allowance
or accidental disability benefits received by an annuitant.
(Source: P.A. 89-4, eff. 1-1-96; revised 2-7-97.)
(5 ILCS 365/4) (from Ch. 127, par. 354)
Sec. 4. Authorization of withholding. An employee or
annuitant may authorize the withholding of a portion of his
salary, wages, or annuity for any one or more of the
following purposes:
(1) for purchase of United States Savings Bonds;
(2) for payment of premiums on life or accident and
health insurance as defined in Section 4 of the "Illinois
Insurance Code", approved June 29, 1937, as amended, and for
payment of premiums on policies of automobile insurance as
defined in Section 143.13 of the "Illinois Insurance Code",
as amended, and the personal multiperil coverages commonly
known as homeowner's insurance. However, no portion of
salaries, wages or annuities may be withheld to pay premiums
on automobile, homeowner's, life or accident and health
insurance policies issued by any one insurance company or
insurance service company unless a minimum of 100 employees
or annuitants insured by that company authorize the
withholding by an Office within 6 months after such
withholding begins. If such minimum is not satisfied the
Office may discontinue withholding for such company. For any
insurance company or insurance service company which has not
previously had withholding, the Office may allow withholding
for premiums, where less than 100 policies have been written,
to cover a probationary period. An insurance company which
has discontinued withholding may reinstate it upon
presentation of facts indicating new management or
re-organization satisfactory to the Office;
(3) for payment to any labor organization designated by
the employee;
(4) for payment of dues to any association the
membership of which consists of State employees and former
State employees;
(5) for deposit in any credit union, in which State
employees are within the field of membership as a result of
their employment;
(6) for payment to or for the benefit of an institution
of higher education by an employee of that institution;
(7) for payment of parking fees at the underground
facility located south of the William G. Stratton State
Office Building in Springfield, the parking ramp located at
401 South College Street, west of the William G. Stratton
State Office Building in Springfield, or at the parking
facilities located on the Urbana-Champaign campus of the
University of Illinois;.
(8) for voluntary payment to the State of Illinois of
amounts then due and payable to the State;.
(9) for investment purchases made as a participant in
College Savings Programs established pursuant to Section
30-15.8a of the School Code;.
(10) for voluntary payment to the Illinois Department of
Revenue of amounts due or to become due under the Illinois
Income Tax Act;
(11) for payment of optional contributions to a
retirement system subject to the provisions of the Illinois
Pension Code.
(Source: P.A. 88-161.)
(5 ILCS 365/8) (from Ch. 127, par. 358)
Sec. 8. Payment of certain amounts withheld.
(a) If a withholding authorization is for the purpose of
payment of insurance premiums or for payment to a labor
union, each Office shall make payments, as soon as payroll
warrants are prepared and verified, on behalf of the employee
or annuitant to the payee named in the authorization the
amount specified in the authorization. Such payments shall
be made by warrants prepared at the time the payroll is
processed.
(b) If a withholding authorization is for the purpose of
purchasing United States Savings Bonds, each Office, whenever
a sufficient sum has accumulated in the employee's account to
purchase a bond of the denomination directed by the employee
in his authorization, shall purchase such a United States
Savings Bond in the name designated by the employee and
deliver it to the employee.
(c) If a withholding authorization is for the purpose of
payment of parking fees pursuant to paragraph 7 of Section 4,
the State Comptroller shall deposit 80% of the amount
withheld in the Capital Development Bond Retirement and
Interest Fund in the State Treasury and 20% of the amount
withheld in the State Parking Facility Maintenance Fund in
the State Treasury.
(d) If a withholding authorization is for the purpose of
payment of amounts due or to become due under the Illinois
Income Tax Act, the Office shall pay the amounts withheld
without delay directly to the Department of Revenue or to a
depositary designated by the Department of Revenue.
(Source: P.A. 83-619.)
(5 ILCS 365/9) (from Ch. 127, par. 359)
Sec. 9. Any authorization to withhold from the salary,
wages or annuity of an employee or annuitant shall terminate
and such withholding shall cease upon the happening of any of
the following events:
(1) termination of employment or termination of payment
of an annuity, as the case may be;
(2) written notice by the employee or annuitant of
cancellation of such former authorization, except that an
authorization to withhold for the payment of optional
contributions to a retirement system through an employer
pickup is irrevocable;
(3) expiration of the time during which such withholding
was authorized;
(4) when the total amount authorized to be withheld has
been so withheld.
Upon termination of authorization to purchase United
States Savings Bonds, any amount withheld from the salary or
wages of an employee for such purpose and which has not been
so used shall be immediately remitted by each Office to the
person from whose salary or wages such amount was withheld.
(Source: Laws 1965, p. 1244.)
Section 10. The State Employees Group Insurance Act of
1971 is amended by changing Sections 3 and 6.6 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
(Text of Section before amendment by P.A. 89-507)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and is receiving a retirement
annuity under the an optional retirement program established
under Section 15-158.2 and who would also be eligible for a
retirement annuity had that person been a participant in the
State University Retirement System), paragraphs (b) or (c) of
Section 16-106, or Article 18 of the Illinois Pension Code;
(2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the minimum period of service required for a
retirement annuity in the system involved; (3) any person not
otherwise covered by this Act who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person who is receiving a retirement annuity under
Article 18 of the Illinois Pension Code and who is covered
under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and
who has irrevocably elected to waive his or her coverage
under this Act and to have his or her spouse considered as
the "annuitant" under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or a qualified
rehabilitation facility or a qualified domestic violence
shelter or service. (For definition of "retired employee",
see (p) post).
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or
benefits payable under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Compensation" also means salary or wages paid to an employee
of any qualified local government or qualified rehabilitation
facility or a qualified domestic violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the Illinois Insurance
Code. For the health plan only, the term "dependent" also
includes any person enrolled prior to the effective date of
this Section who is dependent upon the member to the extent
that the member may claim such person as a dependent for
Illinois State income tax deduction purposes; no other such
person may be enrolled.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or the an optional retirement
program established under Section 15-158.2) or 18, or under
paragraph (b) or (c) of Section 16-106, of the Illinois
Pension Code, but such term does include persons who are
employed during the 6 month qualifying period under Article
14 of the Illinois Pension Code. Such term also includes any
person who (1) after January 1, 1966, is receiving ordinary
or accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, (2) receives total permanent
or total temporary disability under the Workers' Compensation
Act or Occupational Disease Act as a result of injuries
sustained or illness contracted in the course of employment
with the State of Illinois, or (3) is not otherwise covered
under this Act and has retired as a participating member
under Article 2 of the Illinois Pension Code but is
ineligible for the retirement annuity under Section 2-119 of
the Illinois Pension Code. However, a person who satisfies
the criteria of the foregoing definition of "employee" except
that such person is made ineligible to participate in the
State Universities Retirement System by clause (4) of the
first paragraph of Section 15-107 of the Illinois Pension
Code is also an "employee" for the purposes of this Act.
"Employee" also includes any person receiving or eligible for
benefits under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Employee" also includes
each officer or employee in the service of a qualified local
government, including persons appointed as trustees of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a qualified rehabilitation facility and each full-time
employee in the service of a qualified domestic violence
shelter or service, as determined according to rules
promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes of
benefiting employees by means of providing, among others,
wellness programs, utilization reviews, second opinions and
medical fee reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of the first paragraph of
Section 15-107 of the Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2) the surviving dependent of any person formerly employed
by the University of Illinois in the Cooperative Extension
Service who would be an annuitant except for the fact that
such person was made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code.
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district, special district or
other unit, designated as a unit of local government by law,
which exercises limited governmental powers or powers in
respect to limited governmental subjects, any not-for-profit
association with a membership that primarily includes
townships and township officials, that has duties that
include provision of research service, dissemination of
information, and other acts for the purpose of improving
township government, and that is funded wholly or partly in
accordance with Section 85-15 of the Township Code; any
not-for-profit corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility system, and provides research, training,
dissemination of information, or other acts to promote
cooperation between and among municipalities that provide
utility services and for the advancement of the goals and
purposes of its membership; and the Illinois Association of
Park Districts. "Qualified local government" means a unit of
local government approved by the Director and participating
in a program created under subsection (i) of Section 10 of
this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Mental Health and
Developmental Disabilities to provide services to persons
with disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Illinois Department
of Public Aid, approved by the Director and participating in
a program created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible as a dependent for Illinois
State income tax purposes, and either is under age 23 24
or was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped as
defined in the Illinois Insurance Code.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
eff. 8-9-96; revised 8-23-96.)
(Text of Section after amendment by P.A. 89-507)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and is receiving a retirement
annuity under the an optional retirement program established
under Section 15-158.2 and who would also be eligible for a
retirement annuity had that person been a participant in the
State University Retirement System), paragraphs (b) or (c) of
Section 16-106, or Article 18 of the Illinois Pension Code;
(2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the minimum period of service required for a
retirement annuity in the system involved; (3) any person not
otherwise covered by this Act who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person who is receiving a retirement annuity under
Article 18 of the Illinois Pension Code and who is covered
under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and
who has irrevocably elected to waive his or her coverage
under this Act and to have his or her spouse considered as
the "annuitant" under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or a qualified
rehabilitation facility or a qualified domestic violence
shelter or service. (For definition of "retired employee",
see (p) post).
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or
benefits payable under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Compensation" also means salary or wages paid to an employee
of any qualified local government or qualified rehabilitation
facility or a qualified domestic violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the Illinois Insurance
Code. For the health plan only, the term "dependent" also
includes any person enrolled prior to the effective date of
this Section who is dependent upon the member to the extent
that the member may claim such person as a dependent for
Illinois State income tax deduction purposes; no other such
person may be enrolled.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or the an optional retirement
program established under Section 15-158.2) or 18, or under
paragraph (b) or (c) of Section 16-106, of the Illinois
Pension Code, but such term does include persons who are
employed during the 6 month qualifying period under Article
14 of the Illinois Pension Code. Such term also includes any
person who (1) after January 1, 1966, is receiving ordinary
or accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, (2) receives total permanent
or total temporary disability under the Workers' Compensation
Act or Occupational Disease Act as a result of injuries
sustained or illness contracted in the course of employment
with the State of Illinois, or (3) is not otherwise covered
under this Act and has retired as a participating member
under Article 2 of the Illinois Pension Code but is
ineligible for the retirement annuity under Section 2-119 of
the Illinois Pension Code. However, a person who satisfies
the criteria of the foregoing definition of "employee" except
that such person is made ineligible to participate in the
State Universities Retirement System by clause (4) of the
first paragraph of Section 15-107 of the Illinois Pension
Code is also an "employee" for the purposes of this Act.
"Employee" also includes any person receiving or eligible for
benefits under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Employee" also includes
each officer or employee in the service of a qualified local
government, including persons appointed as trustees of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a qualified rehabilitation facility and each full-time
employee in the service of a qualified domestic violence
shelter or service, as determined according to rules
promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes of
benefiting employees by means of providing, among others,
wellness programs, utilization reviews, second opinions and
medical fee reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of the first paragraph of
Section 15-107 of the Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2) the surviving dependent of any person formerly employed
by the University of Illinois in the Cooperative Extension
Service who would be an annuitant except for the fact that
such person was made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code.
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district, special district or
other unit, designated as a unit of local government by law,
which exercises limited governmental powers or powers in
respect to limited governmental subjects, any not-for-profit
association with a membership that primarily includes
townships and township officials, that has duties that
include provision of research service, dissemination of
information, and other acts for the purpose of improving
township government, and that is funded wholly or partly in
accordance with Section 85-15 of the Township Code; any
not-for-profit corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility system, and provides research, training,
dissemination of information, or other acts to promote
cooperation between and among municipalities that provide
utility services and for the advancement of the goals and
purposes of its membership; and the Illinois Association of
Park Districts. "Qualified local government" means a unit of
local government approved by the Director and participating
in a program created under subsection (i) of Section 10 of
this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor
to the Department of Mental Health and Developmental
Disabilities) to provide services to persons with
disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible as a dependent for Illinois
State income tax purposes, and either is under age 23 24
or was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped as
defined in the Illinois Insurance Code.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
(5 ILCS 375/6.6)
Sec. 6.6. Contributions to the Teacher Health Insurance
Security Fund.
(a) Beginning July 1, 1995, all active contributors of
the Teachers' Retirement System (established under Article 16
of the Illinois Pension Code) who are not employees of a
department as defined in Section 3 of this Act shall make
contributions toward the cost of annuitant and survivor
health benefits at the rate of 0.5% of salary.
These contributions shall be deducted by the employer and
paid to the System as service agent for the Department of
Central Management Services. The System may use the same
processes for collecting the contributions required by this
subsection that it uses to collect contributions received
from school districts and other covered employers under
Sections 16-154 and 16-155 of the Illinois Pension Code. An
employer may agree to pick up or pay the contributions
required under this subsection on behalf of the teacher; such
contributions shall be deemed to have been paid by the
teacher.
A person required to make contributions under this
subsection (a) who purchases optional service credit under
Article 16 of the Illinois Pension Code for a period services
actually performed after June 30, 1995 must also make a
contribution under this subsection for that optional credit,
at the applicable rate of 0.5% of the salary used in
computing the optional service credit, based on the required
employee contributions for that optional service credit, plus
the interest on this those employee contribution
contributions. This contribution shall be collected by the
System as service agent for the Department of Central
Management Services. at the time of receiving The
contribution required under this subsection for the optional
service credit must be paid in full before any annuity based
on that credit begins.
(b) The Teachers' Retirement System shall promptly
deposit all moneys collected under subsection (a) of this
Section into the Teacher Health Insurance Security Fund
created in Section 6.5 of this Act. The moneys collected
under this Section shall be used only for the purposes
authorized in Section 6.5 of this Act and shall not be
considered to be assets of the Teachers' Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(c) On or before November 15 of each year, the Board of
Trustees of the Teachers' Retirement System shall certify to
the Governor, the Director of Central Management Services,
and the State Comptroller its estimate of the total amount of
contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year. The certification shall
include a detailed explanation of the methods and information
that the Board relied upon in preparing its estimate. As
soon as possible after the effective date of this Section,
the Board shall submit its estimate for fiscal year 1996.
(d) Beginning in fiscal year 1996, on the first day of
each month, or as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund to the Teacher Health Insurance
Security Fund 1/12 of the annual amount appropriated for that
fiscal year to the State Comptroller for deposit into the
Teacher Health Insurance Security Fund under Section 1.3 of
the State Pension Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section,
the definitions that apply to Article 16 of the Illinois
Pension Code apply to this Section.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
Section 15. The Illinois Income Tax Act is amended by
changing Section 804 as follows:
(35 ILCS 5/804) (from Ch. 120, par. 8-804)
Sec. 804. Failure to Pay Estimated Tax.
(a) In general. In case of any underpayment of estimated
tax by a taxpayer, except as provided in subsection (d) or
(e), the taxpayer shall be liable to a penalty in an amount
determined at the rate prescribed by Section 3-3 of the
Uniform Penalty and Interest Act upon the amount of the
underpayment (determined under subsection (b)) for each
required installment.
(b) Amount of underpayment. For purposes of subsection
(a), the amount of the underpayment shall be the excess of:
(1) the amount of the installment which would be
required to be paid under subsection (c), over
(2) the amount, if any, of the installment paid on
or before the last date prescribed for payment.
(c) Amount of Required Installments.
(1) Amount.
(A) In General. Except as provided in
paragraph (2), the amount of any required
installment shall be 25% of the required annual
payment.
(B) Required Annual Payment. For purposes of
subparagraph (A), the term "required annual payment"
means the lesser of
(i) 90% of the tax shown on the return
for the taxable year, or if no return is filed,
90% of the tax for such year, or
(ii) 100% of the tax shown on the return
of the taxpayer for the preceding taxable year
if a return showing a liability for tax was
filed by the taxpayer for the preceding taxable
year and such preceding year was a taxable year
of 12 months.
(2) Lower Required Installment where Annualized
Income Installment is Less Than Amount Determined Under
Paragraph (1).
(A) In General. In the case of any required
installment if a taxpayer establishes that the
annualized income installment is less than the
amount determined under paragraph (1),
(i) the amount of such required
installment shall be the annualized income
installment, and
(ii) any reduction in a required
installment resulting from the application of
this subparagraph shall be recaptured by
increasing the amount of the next required
installment determined under paragraph (1) by
the amount of such reduction, and by increasing
subsequent required installments to the extent
that the reduction has not previously been
recaptured under this clause.
(B) Determination of Annualized Income
Installment. In the case of any required
installment, the annualized income installment is
the excess, if any, of
(i) an amount equal to the applicable
percentage of the tax for the taxable year
computed by placing on an annualized basis the
net income for months in the taxable year
ending before the due date for the installment,
over
(ii) the aggregate amount of any prior
required installments for the taxable year.
(C) Applicable Percentage.
In the case of the following The applicable
required installments: percentage is:
1st ............................... 22.5%
2nd ............................... 45%
3rd ............................... 67.5%
4th ............................... 90%
(D) Annualized Net Income; Individuals. For
individuals, net income shall be placed on an
annualized basis by:
(i) multiplying by 12, or in the case of
a taxable year of less than 12 months, by the
number of months in the taxable year, the net
income computed without regard to the standard
exemption for the months in the taxable year
ending before the month in which the
installment is required to be paid;
(ii) dividing the resulting amount by the
number of months in the taxable year ending
before the month in which such installment date
falls; and
(iii) deducting from such amount the
standard exemption allowable for the taxable
year, such standard exemption being determined
as of the last date prescribed for payment of
the installment.
(E) Annualized Net Income; Corporations. For
corporations, net income shall be placed on an
annualized basis by multiplying by 12 the taxable
income
(i) for the first 3 months of the taxable
year, in the case of the installment required
to be paid in the 4th month,
(ii) for the first 3 months or for the
first 5 months of the taxable year, in the case
of the installment required to be paid in the
6th month,
(iii) for the first 6 months or for the
first 8 months of the taxable year, in the case
of the installment required to be paid in the
9th month, and
(iv) for the first 9 months or for the
first 11 months of the taxable year, in the
case of the installment required to be paid in
the 12th month of the taxable year,
then dividing the resulting amount by the number of
months in the taxable year (3, 5, 6, 8, 9, or 11 as
the case may be).
(d) Exceptions. Notwithstanding the provisions of the
preceding subsections, the penalty imposed by subsection (a)
shall not be imposed if the taxpayer was not required to file
an Illinois income tax return for the preceding taxable year,
or if the taxpayer has underpaid taxes solely because of the
increased rate in effect during the period from July 1, 1989
through December 1989, or, for individuals, if the taxpayer
had no tax liability for the preceding taxable year and such
year was a taxable year of 12 months.
(e) The penalty imposed for underpayment of estimated
tax by subsection (a) of this Section shall not be imposed to
the extent that the Department or his designate determines,
pursuant to Section 3-8 of the Uniform Penalty and Interest
Act that the penalty should not be imposed.
(f) Definition of tax. For purposes of subsections (b)
and (c), the term "tax" means the excess of the tax imposed
under Article 2 of this Act, over the amounts credited
against such tax under Sections 601(b) (3) and (4).
(g) Application of Section in case of tax withheld on
compensation. For purposes of applying this Section in the
case of an individual, tax withheld under Article 7 for the
taxable year shall be deemed a payment of estimated tax, and
an equal part of such amount shall be deemed paid on each
installment date for such taxable year, unless the taxpayer
establishes the dates on which all amounts were actually
withheld, in which case the amounts so withheld shall be
deemed payments of estimated tax on the dates on which such
amounts were actually withheld.
(g-5) Amounts withheld under the State Salary and
Annuity Withholding Act. An individual who has amounts
withheld under paragraph (10) of Section 4 of the State
Salary and Annuity Withholding Act may elect to have those
amounts treated as payments of estimated tax made on the
dates on which those amounts are actually withheld.
(i) Short taxable year. The application of this Section
to taxable years of less than 12 months shall be in
accordance with regulations prescribed by the Department.
The changes in this Section made by Public Act 84-127
shall apply to taxable years ending on or after January 1,
1986.
(Source: P.A. 86-678; 86-953; 86-1028; 87-205.)
Section 20. The Illinois Pension Code is amended by
changing Sections 2-123, 2-126.1, 7-109.3, 7-111, 7-113,
7-116, 7-118, 7-132.2, 7-139, 7-145, 7-171, 7-172, 14-103.05,
14-104, 14-108, 14-118, 14-119, 14-120, 14-128, 14-130,
14-133, 14-133.1, 15-107, 15-131, 15-134, 15-136, 15-141,
15-142, 15-145, 15-146, 15-154, 15-157, 15-157.1, 15-158.2,
15-165, 15-185, 16-106, 16-140, 16-143, 16-151, 16-152.1,
16-154, 16-155, 16-158.1, 16-179, 16-185, 16-187, 17-116.1,
18-133.1, 21-103, 21-109, and 21-115 and adding Sections
7-199.3, 15-136.4, 16-169.1, 16-181.3, 17-134.1, and 18-112.6
as follows:
(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
Sec. 2-123. Refunds.
(a) A participant who ceases to be a member, other than
an annuitant, shall, upon written request, receive a refund
of his or her total contributions, without interest. The
refund shall include the additional contributions for the
automatic increase in retirement annuity. By accepting the
refund, a participant forfeits all accrued rights and
benefits in the System and loses credit for all service.
However, if he or she again becomes a member, he or she may
resume status as a participant and reestablish any forfeited
service credit by paying to the System the full amount
refunded, together with interest at 4% per annum from the
time the refund is paid to the date the member again becomes
a participant.
A former member of the General Assembly may reestablish
any service credit forfeited by acceptance of a refund by
paying to the System on or before February 1, 1993, the full
amount refunded, together with interest at 4% per annum from
the date of payment of the refund to the date of repayment.
When a member or former member owes money to the System,
interest at the rate of 4% per annum shall accrue and be
payable on such amounts owed beginning on the date of
termination of service as a member until the contributions
due have been paid in full.
(b) A participant who has no eligible survivor upon
becoming an annuitant or who terminates service with less
than 8 years of service is entitled to a refund of the
contributions for a survivor's annuity, without interest. If
such person later marries, a survivor's annuity shall not be
payable upon his or her death, unless the amount of such
refund is repaid to the System, together with interest at the
rate of 4% per year from the date of refund to the date of
repayment.
(c) If at the date of retirement or death of a
participant who served as an officer of the General Assembly,
the total period of such service is less than 4 years, the
additional contributions made by such member on the
additional salary as an officer shall be refunded unless the
participant served as an officer for at least 2 years and has
contributed the amount he or she would have contributed if he
or she had served as an officer for 4 years as provided in
Section 2-126.
(d) Upon the termination of the last survivor's annuity
payable to a survivor of a deceased participant, the excess,
if any, of the total contributions made by the participant
for retirement and survivor's annuity, without interest, over
the total amount of retirement and survivor's annuity
payments received by the participant and the participant's
survivors shall be refunded upon request:
(i) if there was a surviving spouse of the deceased
participant who was eligible for a survivor's annuity, to
the designated beneficiary of that spouse or, if the
designated beneficiary is deceased or there is no
designated beneficiary, to that spouse's estate;
(ii) if there was no eligible surviving spouse of
the deceased participant, to the designated beneficiary
of the deceased participant or, if the designated
beneficiary is deceased or there is no designated
beneficiary, to the deceased participant's estate.
Upon death of the last survivor of a participant and his
or her spouse, a death benefit shall be payable consisting of
the excess, if any, of the contributions made by the
participant for retirement and survivor's annuity, without
interest, over the total amount of retirement and survivor's
annuity payments made by the System.
(e) Upon the death of a participant, if a survivor's
annuity is not payable under this Article, a beneficiary
designated by the participant shall be entitled to a refund
of all contributions made by the participant. If the
participant has not designated a refund beneficiary, the
surviving spouse shall be entitled to the refund of
contributions; if there is no surviving spouse, the
contributions shall be refunded to the participant's
surviving children, if any, and if no children survive, the
refund payment shall be made to the participant's estate.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
Sec. 2-126.1. Pickup Pick up of contributions.
(a) The State shall pick up the participant
contributions required under Section 2-126 for all salary
earned after December 31, 1981. The contributions so picked
up shall be treated as employer contributions in determining
tax treatment under the United States Internal Revenue Code.
The State shall pay these participant contributions from the
same source of funds which is used in paying salary to the
participant. The State may pick up these contributions by a
reduction in the cash salary of the participant. If
participant contributions are picked up they shall be treated
for all purposes of this Article 2 in the same manner as
participant contributions that were made prior to the date
that the pick up of contributions began.
(b) Subject to the requirements of federal law, a
participant may elect to have the employer pick up optional
contributions that the participant has elected to pay to the
System, and the contributions so picked up shall be treated
as employer contributions for the purposes of determining
federal tax treatment. The employer shall pick up the
contributions by a reduction in the cash salary of the
participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise.
(Source: P.A. 83-1440.)
(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
(a) "Sheriff's law enforcement employee" means:
(1) A county sheriff and all deputies, other than
special deputies, employed on a full time basis in the
office of the sheriff.
(2) A person who has elected to participate in this
Fund under Section 3-109.1 of this Code, and who is
employed by a participating municipality to perform
police duties.
(3) A law enforcement officer employed on a full
time basis by a Forest Preserve District, provided that
such officer shall be deemed a "sheriff's law enforcement
employee" for the purposes of this Article, and service
in that capacity shall be deemed to be service as a
sheriff's law enforcement employee, only if the board of
commissioners of the District have so elected by adoption
of an affirmative resolution. Such election, once made,
may not be rescinded.
(4) A person not eligible to participate in a fund
established under Article 3 of this Code who is employed
on a full-time basis by a participating municipality or
participating instrumentality to perform police duties at
an airport, but only if the governing authority of the
employer has approved sheriff's law enforcement employee
status for its airport police employees by adoption of an
affirmative resolution. Such approval, once given, may
not be rescinded.
(b) An employee who is a sheriff's law enforcement
employee and prior to the time for which he is granted
military leave or authorized leave of absence shall receive
service credit in that capacity. Sheriff's law enforcement
employees shall not be entitled to out of State service
credit under Section 7-139.
(Source: P.A. 86-273; 87-850.)
(40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
Sec. 7-111. "Prior Service": The period beginning on
the day a participating employee first became an employee of
a municipality, or of an instrumentality thereof, or of a
municipality or instrumentality that was superseded by the
employing participating municipality, or of a participating
instrumentality, and ending on the effective date of
participation of the municipality or participating
instrumentality, or upon the latest termination of service
prior to such effective date, but excluding (a) the
intervening periods during which the employee was separated
from the service of the municipality and all
instrumentalities thereof, or of the participating
instrumentality, or (b) periods during which the employee was
employed in a position normally requiring less than 600 hours
of service during a year, and or (c) periods during which the
employee served by persons beginning participating employment
in a position normally requiring performance of duty less
than 1000 hours per year, if the with a participating
municipality or participating instrumentality adopted, which
prior to its effective the date of participation, it is
included and subject to this Article adopts a resolution or
ordinance excluding persons in such positions from
participation.
(Source: P.A. 82-459.)
(40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
Sec. 7-113. "Creditable Service": All periods of prior
service or current service for which credits are granted
under the provisions of Section 7-139, including all periods
during which a participating employee was an employee of a
municipality or instrumentality which was superseded by the
employing participating municipality.
(Source: Laws 1967, p. 2091.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) the 48
consecutive months of service within the last 120 months of
service in which his total earnings were the highest, or (2)
the employee's (his total period of service,) by the number
of months of service in such period.
(b) For death benefits, the higher of the rate
determined under paragraph (a) of this Section or total
earnings received in the last 12 months of service divided by
twelve. If the deceased employee has less than 12 months of
service, the monthly final rate shall be the monthly rate of
pay the employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the
earnings rate for all periods of prior service shall be
considered equal to the average earnings rate for the last 3
calendar years of prior service for which creditable service
is received under Section 7-139 most immediately preceding
the effective date, or, if there is less than 3 years of
creditable prior service, the average for the total prior
service period for which creditable service is received under
Section 7-139; (2) for out of state service and authorized
leave, the earnings rate shall be the rate upon which service
credits are granted; (3) periods of military leave shall not
be considered; (4) the earnings rate for all periods of
disability shall be considered equal to the rate of earnings
upon which the employee's disability benefits are computed
for such periods; (5) the earnings to be considered for each
of the final three months of the final earnings period shall
not exceed 125% of the highest earnings of any other month in
the final earnings period; and (6) the annual amount of final
rate of earnings shall be the monthly amount multiplied by
the number of months of service normally required by the
position in a year.
(Source: P.A. 78-255.)
(40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
Sec. 7-118. "Beneficiary":
(a) The surviving spouse of an employee or of an
employee annuitant, or if no surviving spouse survives, the
person or persons designated by a participating employee or
employee annuitant, or if no person so designated survives,
or if no designation is on file, the estate of the employee
or employee annuitant. The person or persons designated by a
beneficiary annuitant, or if no person designated survives,
or if no designation is on file, the estate of the
beneficiary annuitant. The estate of a surviving spouse
annuitant where the employee or employee annuitant filed no
designation, or no person designated survives at the death of
a surviving spouse annuitant. Designations of beneficiaries
shall be in writing on forms prescribed by the board and
effective upon filing in the fund offices. The designation
forms shall provide for contingent beneficiaries. Divorce,
dissolution or annulment of marriage revokes the designation
of an employee's former spouse as a beneficiary on a
designation executed before entry of judgment for divorce,
dissolution or annulment of marriage.
(b) Notwithstanding the foregoing, an employee, former
employee who has not yet received a retirement annuity or
separation benefit, or employee annuitant may elect to name
any person, trust or charity to be the primary beneficiary of
any death benefit payable by reason of his death. Such
election shall state specifically whether it is his intention
to exclude the spouse, shall be in writing, and may be
revoked at any time. Such election or revocation shall take
effect upon being filed in the fund offices.
(c) If a surviving spouse annuity is payable to a former
spouse upon the death of an employee annuitant, the former
spouse, unless designated by the employee annuitant after
dissolution of the marriage, shall not be the beneficiary for
the purposes of the $3,000 death benefit payable under
subparagraph 6 of Section 7-164. This benefit shall be paid
to the designated beneficiary of the employee annuitant or,
if there is no designation, then to the estate of the
employee annuitant.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
Sec. 7-132.2. Regional office of education Educational
Service Regions.
(a) A regional office of education serving 2 Educational
Service Regions comprised of two or more counties, except
those serving including a county of 1,000,000 inhabitants or
more, formed pursuant to Article 3A of the School Code shall
be included within and be subject to this Article, effective
as of the effective date of consolidation. For the purpose
of this Article, a regional office of education serving 2 an
Educational Service Region comprised of two or more counties
shall be considered a participating instrumentality but the
requirements of Sections 7-106 and 7-132 shall not apply to
it. Each county served by a regional office of education
that serves 2 in an Educational Service Region comprised of
two or more counties shall pay its proportional cost of the
office's region's municipality contributions. This cost
shall be included in the budget prepared under and
apportioned in the manner provided by Section 3A-7 of the
School Code. Each county may include the cost for its share
of the municipality contributions required for the regional
office of education region in its appropriation and tax levy
under Section 7-171 of this Article.
(b) At the request of the county, the Board may
designate any participating regional office of education
Educational Service Region to be a separate reporting entity
distinct from the county.
(Source: P.A. 87-740.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the
amount of any annuity or benefit to which he or a beneficiary
is entitled, as follows:
1. For prior service: Each participating employee who is
an employee of a participating municipality or participating
instrumentality on the effective date shall be granted
creditable service, but no credits under paragraph 2 of this
subsection (a), for periods his entire period of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:.
If the effective date of participation for the
participating municipality or participating instrumentality
is on or before January 1, 1998, creditable service shall be
granted for the entire period of prior service with that
employer without any employee contribution.
If the effective date of participation for the
participating municipality or participating instrumentality
is after January 1, 1998, creditable service shall be granted
for the last 20% of the period of prior service with that
employer, but no more than 5 years, without any employee
contribution. A participating employee may establish
creditable service for the remainder of the period of prior
service with that employer by making an application in
writing, accompanied by payment of an employee contribution
in an amount determined by the Fund, based on the employee
contribution rates in effect at the time of application for
the creditable service and the employee's salary rate on the
effective date of participation for that employer, plus
interest at the effective rate from the date of the prior
service to the date of payment. Application for this
creditable service may be made at any time while the employee
is still in service.
Any person who has withdrawn from the service of a
participating municipality or participating instrumentality
prior to the effective date, who reenters the service of the
same municipality or participating instrumentality after the
effective date and becomes a participating employee is
entitled to creditable service for prior service as otherwise
provided in this subdivision (a)(1) only if he or she renders
2 years of service as a participating employee after the
effective date. provided Application for such service must
be is made while in a participating status. The salary rate
to be used in the calculation of the required employee
contribution, if any, shall be the employee's salary rate at
the time of first reentering service with the employer after
the employer's effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from him
under Section 7-173, as of the date the corresponding
payment of earnings is payable to him.
b. Normal credits of amounts equal to each payment
of normal contributions received from him, as of the date
the corresponding payment of earnings is payable to him,
and normal contributions made for the purpose of
establishing out-of-state service credits as permitted
under the conditions set forth in paragraph 6 of this
subsection (a).
c. Municipality credits in an amount equal to 1.4
times the normal credits, except those established by
out-of-state service credits, as of the date of
computation of any benefit if these credits would
increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the participating
employee as of the date the corresponding payment of
earnings is payable, and survivor contributions made for
the purpose of establishing out-of-state service credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the period
during which disability benefits are payable. Normal and
survivor credits, based upon the rate of earnings applied for
disability benefits, shall also be granted if such credits
would result in a higher benefit to any such employee or his
beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of absence
without pay under the following conditions:
a. An application for credits and creditable
service is shall be submitted to the board while the
employee is in a status of active employment, and within
2 years after termination of the leave of absence period
for which credits and creditable service are sought.
b. Not more than 12 complete months of creditable
service for authorized leave of absence without pay shall
be counted for purposes of determining any benefits
payable under this Article.
c. Credits and creditable service shall be granted
for leave of absence only if such leave is approved by
the governing body of the municipality, including
approval of the estimated cost thereof to the
municipality as determined by the fund, and employee
contributions, plus interest at the effective rate
applicable for each year from the end of the period of
leave to date of payment, have been paid to the fund in
accordance with Section 7-173. The contributions shall
be computed upon the assumption earnings continued during
the period of leave at the rate in effect when the leave
began.
d. Benefits under the provisions of Sections 7-141,
7-146, 7-150 and 7-163 shall become payable to employees
on authorized leave of absence, or their designated
beneficiary, only if such leave of absence is creditable
hereunder, and if the employee has at least one year of
creditable service other than the service granted for
leave of absence. Any employee contributions due may be
deducted from any benefits payable.
e. No credits or creditable service shall be
allowed for leave of absence without pay during any
period of prior service.
5. For military service: The governing body of a
municipality or participating instrumentality may elect to
allow creditable service to participating employees who leave
their employment to serve in the armed forces of the United
States for all periods of such service, provided that the
such person returns to active employment within 90 days after
completion of full time active duty, but no creditable
service shall be allowed such person for any period that can
be used in the computation of a pension or any other pay or
benefit, other than pay for active duty, for service in any
branch of the armed forces of the United States. If
necessary to the computation of any benefit, the board shall
establish municipality credits for participating employees
under this paragraph on the assumption that the employee
received earnings at the rate received at the time he left
the employment to enter the armed forces. A participating
employee in the armed forces shall not be considered an
employee during such period of service and no additional
death and no disability benefits are payable for death or
disability during such period.
Any participating employee who left his employment with a
municipality or participating instrumentality to serve in the
armed forces of the United States and who again became a
participating employee within 90 days after completion of
full time active duty by entering the service of a different
municipality or participating instrumentality, which has
elected to allow creditable service for periods of military
service under the preceding paragraph, shall also be allowed
creditable service for his period of military service on the
same terms that would apply if he had been employed, before
entering military service, by the municipality or
instrumentality which employed him after he left the military
service and the employer costs arising in relation to such
grant of creditable service shall be charged to and paid by
that municipality or instrumentality.
Notwithstanding the foregoing, any participating employee
shall be entitled to creditable service as required by any
federal law relating to re-employment rights of persons who
served in the United States Armed Services. Such creditable
service shall be granted upon payment by the member of an
amount equal to the employee contributions which would have
been required had the employee continued in service at the
same rate of earnings during the military leave period, plus
interest at the effective rate.
5.1. In addition to any creditable service established
under paragraph 5 of this subsection (a), creditable service
may be granted for up to 24 months of service in the armed
forces of the United States.
In order to receive creditable service for military
service under this paragraph 5.1, a participating employee
must (1) apply to the Fund in writing and provide evidence of
the military service that is satisfactory to the Board; (2)
obtain the written approval of the current employer; and (3)
make contributions to the Fund equal to (i) the employee
contributions that would have been required had the service
been rendered as a member, plus (ii) an amount determined by
the board to be equal to the employer's normal cost of the
benefits accrued for that military service, plus (iii)
interest on items (i) and (ii) from the date of first
membership in the Fund to the date of payment. If payment is
made during the 6-month period that begins 3 months after the
effective date of this amendatory Act of 1997, the required
interest shall be at the rate of 2.5% per year, compounded
annually; otherwise, the required interest shall be
calculated at the regular interest rate.
6. For out-of-state service: Creditable service shall be
granted for service rendered to an out-of-state local
governmental body under the following conditions: The
employee had participated and has irrevocably forfeited all
rights to benefits in the out-of-state public employees
pension system; the governing body of his participating
municipality or instrumentality authorizes the employee to
establish such service; the employee has 2 years current
service with this municipality or participating
instrumentality; the employee makes a payment of
contributions, which shall be computed at 8% (normal) plus 2%
(survivor) times length of service purchased times the
average rate of earnings for the first 2 years of service
with the municipality or participating instrumentality whose
governing body authorizes the service established plus
interest at the effective rate on the date such credits are
established, payable from the date the employee completes the
required 2 years of current service to date of payment. In
no case shall more than 120 months of creditable service be
granted under this provision.
7. For retroactive service: Any employee who could have
but did not elect to become a participating employee, or who
should have been a participant in the Municipal Public
Utilities Annuity and Benefit Fund before that fund was
superseded, may receive creditable service for the period of
service not to exceed 50 months; however, a current or former
county board member may establish credit under this paragraph
7 for more than 50 months of service as a member of the
county board if the excess over 50 months is approved by
resolution of the affected county board filed with the Fund
before January 1, 1999.
Any employee who is a participating employee on or after
September 24, 1981 and who was excluded from participation by
the age restrictions removed by Public Act 82-596 may receive
creditable service for the period, on or after January 1,
1979, excluded by the age restriction and, in addition, if
the governing body of the participating municipality or
participating instrumentality elects to allow creditable
service for all employees excluded by the age restriction
prior to January 1, 1979, for service during the period prior
to that date excluded by the age restriction. Any employee
who was excluded from participation by the age restriction
removed by Public Act 82-596 and who is not a participating
employee on or after September 24, 1981 may receive
creditable service for service after January 1, 1979.
Creditable service under this paragraph shall be granted upon
payment of the employee contributions which would have been
required had he participated, with interest at the effective
rate for each year from the end of the period of service
established to date of payment.
8. For accumulated unused sick leave: A participating
employee who is applying for a retirement annuity shall be
entitled to creditable service for that portion of the
employee's his accumulated unused sick leave for which
payment is not received, as follows:
a. Sick leave days shall be limited to those
accumulated under a sick leave plan established by a
participating municipality or participating
instrumentality which is available to all employees or a
class of employees.
b. Only sick leave days accumulated with a
participating municipality or participating
instrumentality with which the employee was in service
within 60 days of the effective date of his retirement
annuity shall be credited; If the employee was in service
with more than one employer during this period only the
sick leave days with the employer with which the employee
has the greatest number of unpaid sick leave days shall
be considered.
c. The creditable service granted shall be
considered solely for the purpose of computing the amount
of the retirement annuity and shall not be used to
establish any minimum service period required by any
provision of the Illinois Pension Code, the effective
date of the retirement annuity, or the final rate of
earnings.
d. The creditable service shall be at the rate of
1/20 of a month for each full sick day, provided that no
more than 12 months may be credited under this
subdivision 8.
e. Employee contributions shall not be required for
creditable service under this subdivision 8.
f. Each participating municipality and
participating instrumentality with which an employee has
service within 60 days of the effective date of his
retirement annuity shall certify to the board the number
of accumulated unpaid sick leave days credited to the
employee at the time of termination of service.
9. For service transferred from another system: Credits
and creditable service shall be granted for service under
Article 3, 4, 5, 14 or 16 of this Act, to any active member
of this Fund, and to any inactive member who has been a
county sheriff, upon transfer of such credits pursuant to
Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
payment by the member of the amount by which (1) the employer
and employee contributions that would have been required if
he had participated in this Fund as a sheriff's law
enforcement employee during the period for which credit is
being transferred, plus interest thereon at the effective
rate for each year, compounded annually, from the date of
termination of the service for which credit is being
transferred to the date of payment, exceeds (2) the amount
actually transferred to the Fund. Such transferred service
shall be deemed to be service as a sheriff's law enforcement
employee for the purposes of Section 7-142.1.
(b) Creditable service - amount: 1. One month of
creditable service shall be allowed for each month for which
a participating employee made contributions as required under
Section 7-173, or for which creditable service is otherwise
granted hereunder. Not more than 1 month of service shall be
credited and counted for 1 calendar month, and not more than
1 year of service shall be credited and counted for any
calendar year. A calendar month means a nominal month
beginning on the first day thereof, and a calendar year means
a year beginning January 1 and ending December 31.
2. A seasonal employee shall be given 12 months of
creditable service if he renders the number of months of
service normally required by the position in a 12-month
period and he remains in service for the entire 12-month
period. Otherwise a fractional year of service in the number
of months of service rendered shall be credited.
3. An intermittent employee shall be given creditable
service for only those months in which a contribution is made
under Section 7-173.
(c) No application for correction of credits or
creditable service shall be considered unless the board
receives an application for correction while (1) the
applicant is a participating employee and in active
employment with a participating municipality or
instrumentality, or (2) while the applicant is actively
participating in a pension fund or retirement system which is
a participating system under the Retirement Systems
Reciprocal Act. A participating employee or other applicant
shall not be entitled to credits or creditable service unless
the required employee contributions are made in a lump sum or
in installments made in accordance with board rule.
(d) Upon the granting of a retirement, surviving spouse
or child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate.
(Source: P.A. 86-273; 86-1028; 87-740.)
(40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
Sec. 7-145. Reversionary annuities.
(a) An employee entitled to a retirement annuity may
elect to provide a reversionary annuity for a beneficiary if,
at the time such retirement annuity begins:
1. Under the provisions of paragraph (a) 1 of Section
7-142 he is entitled to an immediate annuity of at least $10
per month; and
2. His accumulated additional and optional credits are
sufficient to provide a reversionary annuity, of at least $10
per month, for the beneficiary.
(b) An election shall become effective only:
1. If a written notice thereof by the employee is
received by the board together with his application for
retirement annuity; and
2. If the amount of the beneficiary's reversionary
annuity specified in the notice is not less than $10 nor more
than that which can be provided, at the time, by the
accumulation of additional and optional credits.
(c) The amount of the reversionary annuity shall be that
specified in the notice of election.
(d) Reversionary annuity shall begin the first day of
the month following the month in which the last payment of
the employee annuity is payable because of death, provided
the beneficiary is alive at such time. If the beneficiary
does not survive the annuitant, no reversionary annuity shall
be payable, but only the death benefit as provided in
Sections 7-163 and 7-164.
(e) No reversionary annuity shall be awarded to be
effective on or after January 1, 1986, but reversionary
annuities granted prior to that date shall continue to be
paid.
(Source: P.A. 84-812.)
(40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
Sec. 7-171. Finance; taxes.
(a) Each municipality other than a school district shall
appropriate an amount sufficient to provide for the current
municipality contributions required by Section 7-172 of this
Article, for the fiscal year for which the appropriation is
made and all amounts due for municipal contributions for
previous years. Those municipalities which have been assessed
an annual amount to amortize its unfunded obligation, as
provided in subparagraph 5 of paragraph (a) of Section 7-172
of this Article, shall include in the appropriation an amount
sufficient to pay the amount assessed. The appropriation
shall be based upon an estimate of assets available for
municipality contributions and liabilities therefor for the
fiscal year for which appropriations are to be made,
including funds available from levies for this purpose in
prior years.
(b) For the purpose of providing monies for municipality
contributions, beginning for the year in which a municipality
is included in this fund:
(1) A municipality other than a school district may
levy a tax which shall not exceed the amount appropriated
for municipality contributions.
(2) A school district may levy a tax in an amount
reasonably calculated at the time of the levy to provide
for the municipality contributions required under Section
7-172 of this Article for the fiscal years for which
revenues from the levy will be received and all amounts
due for municipal contributions for previous years. Any
levy adopted before the effective date of this amendatory
Act of 1995 by a school district shall be considered
valid and authorized to the extent that the amount was
reasonably calculated at the time of the levy to provide
for the municipality contributions required under Section
7-172 for the fiscal years for which revenues from the
levy will be received and all amounts due for municipal
contributions for previous years. In no event shall a
budget adopted by a school district limit a levy of that
school district adopted under this Section.
(c) Any county which is served by a regional office of
education that serves 2 a part of an educational service
region comprised of two or more counties formed under Section
3A of the School Code may include in its appropriation an
amount sufficient to provide its proportionate share of the
municipality contributions for that regional office of
education of the region. The tax levy authorized by this
Section may include an amount necessary to provide monies for
this contribution.
(d) Any county that is a part of a multiple-county
health department or consolidated health department which is
formed under "An Act in relation to the establishment and
maintenance of county and multiple-county public health
departments", approved July 9, 1943, as amended, and which is
a participating instrumentality may include in the county's
appropriation an amount sufficient to provide its
proportionate share of municipality contributions of the
department. The tax levy authorized by this Section may
include the amount necessary to provide monies for this
contribution.
(e) Such tax shall be levied and collected in like
manner, with the general taxes of the municipality and shall
be in addition to all other taxes which the municipality is
now or may hereafter be authorized to levy upon all taxable
property therein, and shall be exclusive of and in addition
to the amount of tax levied for general purposes under
Section 8-3-1 of the "Illinois Municipal Code", approved May
29, 1961, as amended, or under any other law or laws which
may limit the amount of tax which the municipality may levy
for general purposes. The tax may be levied by the governing
body of the municipality without being authorized as being
additional to all other taxes by a vote of the people of the
municipality.
(f) The county clerk of the county in which any such
municipality is located, in reducing tax levies shall not
consider any such tax as a part of the general tax levy for
municipality purposes, and shall not include the same in the
limitation of any other tax rate which may be extended.
(g) The amount of the tax to be levied in any year
shall, within the limits herein prescribed, be determined by
the governing body of the respective municipality.
(h) The revenue derived from any such tax levy shall be
used only for the purposes specified in this Article, and, as
collected, shall be paid to the treasurer of the municipality
levying the tax. Monies received by a county treasurer for
use in making contributions to a regional office of education
consolidated educational service region for its municipality
contributions shall be held by him for that purpose and paid
to the regional office of education region in the same manner
as other monies appropriated for the expense of the regional
office region.
(Source: P.A. 89-329, eff. 8-17-95.)
(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
Sec. 7-172. Contributions by participating
municipalities and participating instrumentalities.
(a) Each participating municipality and each
participating instrumentality shall make payment to the fund
as follows:
1. municipality contributions in an amount
determined by applying the municipality contribution rate
to each payment of earnings paid to each of its
participating employees;
2. an amount equal to the employee contributions
provided by paragraphs (a) and (b) of Section 7-173,
whether or not the employee contributions are withheld as
permitted by that Section;
3. all accounts receivable, together with interest
charged thereon, as provided in Section 7-209;
4. if it has no participating employees with
current earnings, an amount payable which, over a period
of 20 years beginning with the year following an award of
benefit, will amortize, at the effective rate for that
year, any negative balance in its municipality reserve
resulting from the award. This amount when established
will be payable as a separate contribution whether or not
it later has participating employees.
(b) A separate municipality contribution rate shall be
determined for each calendar year for all participating
municipalities together with all instrumentalities thereof.
The municipality contribution rate shall be determined for
participating instrumentalities as if they were participating
municipalities. The municipality contribution rate shall be
the sum of the following percentages:
1. The percentage of earnings of all the
participating employees of all participating
municipalities and participating instrumentalities which,
if paid over the entire period of their service, will be
sufficient when combined with all employee contributions
available for the payment of benefits, to provide all
annuities for participating employees, and the $3,000
death benefit payable under Sections 7-158 and 7-164,
such percentage to be known as the normal cost rate.
2. The percentage of earnings of the participating
employees of each participating municipality and
participating instrumentalities necessary to adjust for
the difference between the present value of all benefits,
excluding temporary and total and permanent disability
and death benefits, to be provided for its participating
employees and the sum of its accumulated municipality
contributions and the accumulated employee contributions
and the present value of expected future employee and
municipality contributions pursuant to subparagraph 1 of
this paragraph (b). This adjustment shall be spread over
the remainder of the period of 40 years from the first of
the year following the date of determination.
3. The percentage of earnings of the participating
employees of all municipalities and participating
instrumentalities necessary to provide the present value
of all temporary and total and permanent disability
benefits granted during the most recent year for which
information is available.
4. The percentage of earnings of the participating
employees of all participating municipalities and
participating instrumentalities necessary to provide the
present value of the net single sum death benefits
expected to become payable from the reserve established
under Section 7-206 during the year for which this rate
is fixed.
5. The percentage of earnings necessary to meet any
deficiency arising in the Terminated Municipality
Reserve.
(c) A separate municipality contribution rate shall be
computed for each participating municipality or participating
instrumentality for its sheriff's law enforcement employees.
A separate municipality contribution rate shall be
computed for the sheriff's law enforcement employees of each
forest preserve district that elects to have such employees.
For the period from January 1, 1986 to December 31, 1986,
such rate shall be the forest preserve district's regular
rate plus 2%.
In the event that the Board determines that there is an
actuarial deficiency in the account of any municipality with
respect to a person who has elected to participate in the
Fund under Section 3-109.1 of this Code, the Board may adjust
the municipality's contribution rate so as to make up that
deficiency over such reasonable period of time as the Board
may determine.
(d) The Board may establish a separate municipality
contribution rate for all employees who are program
participants employed under the Federal Comprehensive
Employment Training Act by all of the participating
municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for
these employees, a portion of the municipality contributions
for such program participants shall be refunded or an extra
charge assessed so that the amount of municipality
contributions retained or received by the fund for all CETA
program participants shall be an amount equal to that which
would be provided by the separate municipality contribution
rate for all such program participants. Refunds shall be
made to prime sponsors of programs upon submission of a claim
therefor and extra charges shall be assessed to participating
municipalities and instrumentalities. In establishing the
municipality contribution rate as provided in paragraph (b)
of this Section, the use of a separate municipality
contribution rate for program participants or the refund of a
portion of the municipality contributions, as the case may
be, may be considered.
(e) Computations of municipality contribution rates for
the following calendar year shall be made prior to the
beginning of each year, from the information available at the
time the computations are made, and on the assumption that
the employees in each participating municipality or
participating instrumentality at such time will continue in
service until the end of such calendar year at their
respective rates of earnings at such time.
(f) Any municipality which is the recipient of State
allocations representing that municipality's contributions
for retirement annuity purposes on behalf of its employees as
provided in Section 12-21.16 of the Illinois Public Aid Code
shall pay the allocations so received to the Board for such
purpose. Estimates of State allocations to be received
during any taxable year shall be considered in the
determination of the municipality's tax rate for that year
under Section 7-171. If a special tax is levied under
Section 7-171, none of the proceeds may be used to reimburse
the municipality for the amount of State allocations received
and paid to the Board. Any multiple-county or consolidated
health department which receives contributions from a county
under Section 11.2 of "An Act in relation to establishment
and maintenance of county and multiple-county health
departments", approved July 9, 1943, as amended, or
distributions under Section 3 of the Department of Public
Health Act, shall use these only for municipality
contributions by the health department.
(g) Municipality contributions for the several purposes
specified shall, for township treasurers and employees in the
offices of the township treasurers who meet the qualifying
conditions for coverage hereunder, be allocated among the
several school districts and parts of school districts
serviced by such treasurers and employees in the proportion
which the amount of school funds of each district or part of
a district handled by the treasurer bears to the total amount
of all school funds handled by the treasurer.
From the funds subject to allocation among districts and
parts of districts pursuant to the School Code, the trustees
shall withhold the proportionate share of the liability for
municipality contributions imposed upon such districts by
this Section, in respect to such township treasurers and
employees and remit the same to the Board.
The municipality contribution rate for an educational
service center shall initially be the same rate for each year
as the regional office of education consolidated educational
service region or school district which serves as its
administrative agent. When actuarial data become available,
a separate rate shall be established as provided in
subparagraph (i) of this Section.
The municipality contribution rate for a public agency,
other than a vocational education cooperative, formed under
the Intergovernmental Cooperation Act shall initially be the
average rate for the municipalities which are parties to the
intergovernmental agreement. When actuarial data become
available, a separate rate shall be established as provided
in subparagraph (i) of this Section.
(h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts
provided in this Section in the manner prescribed from time
to time by the Board and all such contributions shall be
obligations of the respective participating municipalities
and participating instrumentalities to this fund. The
failure to deduct any employee contributions shall not
relieve the participating municipality or participating
instrumentality of its obligation to this fund. Delinquent
payments of contributions due under this Section may, with
interest, be recovered by civil action against the
participating municipalities or participating
instrumentalities. Municipality contributions, other than
the amount necessary for employee contributions and Social
Security contributions, for periods of service by employees
from whose earnings no deductions were made for employee
contributions to the fund, may be charged to the municipality
reserve for the municipality or participating
instrumentality.
(i) Contributions by participating instrumentalities
shall be determined as provided herein except that the
percentage derived under subparagraph 2 of paragraph (b) of
this Section, and the amount payable under subparagraph 5 of
paragraph (a) of this Section, shall be based on an
amortization period of 10 years.
(Source: P.A. 86-273; 87-850.)
(40 ILCS 5/7-199.3 new)
Sec. 7-199.3. To establish and administer deferred
compensation and tax-deferred annuity programs for units of
local government.
The Board may establish and administer deferred
compensation, tax deferred annuity, and similar tax-savings
programs for employees of units of local government, which
shall be known as the "IMRF-Plus" program. The program shall
provide for the Board to review proposed investment offerings
and shall require that only investments determined to be
acceptable by the Board may be used for investing
compensation contributed to the program.
The program shall include appropriate provisions
pertaining to its day to day operation, including methods of
electing to contribute income, methods of changing the amount
of income contributed, methods of selecting from among
investment options available under the program, and any other
provisions that the Board may deem appropriate.
The program shall provide for the preparation of
pamphlets describing the program and outlining the options
and opportunities available to local government employees
under the program. These pamphlets shall be distributed from
time to time to all eligible employees.
The program established under this Section shall not be
implemented or amended until the Board is satisfied that
compensation contributed under the program is not subject to
income tax for the year in which it is earned and that the
taxation of such compensation will be deferred until the time
of its distribution to the employee.
The program shall also provide for the recovery of the
expenses of its administration by charging those expenses
against the earnings from investments, by charging fees
equitably prorated among the participating local government
employees, or by some other appropriate and equitable method
determined by the Board. Different methods for recovery of
administrative expenses may be provided in relation to
different types of investment programs, and the Board may
provide for the allocation of administration expenses among
varying types of programs for this purpose.
The Board shall review and oversee the administration of
the program.
This Section does not limit the power or authority of any
unit of local government, school district, or institution
supported in whole or in part by public funds to establish
and administer any other deferred compensation plans or
tax-deferred annuity programs that may be authorized by law.
(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
Sec. 14-103.05. Employee. Any person employed by a
Department who receives salary for personal services rendered
to the Department on a warrant issued pursuant to a payroll
voucher certified by a Department and drawn by the State
Comptroller upon the State Treasurer, including an elected
official described in subparagraph (d) of Section 14-104,
shall become an employee for purpose of membership in the
Retirement System on the first day of such employment.
A person entering service on or after January 1, 1972 and
prior to January 1, 1984 shall become a member as a condition
of employment and shall begin making contributions as of the
first day of employment.
A person entering service on or after January 1, 1984
shall, upon completion of 6 months of continuous service
which is not interrupted by a break of more than 2 months,
become a member as a condition of employment. Contributions
shall begin the first of the month after completion of the
qualifying period.
The qualifying period of 6 months of service is not
applicable to: (1) a person who has been granted credit for
service in a position covered by the State Universities
Retirement System, the Teachers' Retirement System of the
State of Illinois, the General Assembly Retirement System, or
the Judges Retirement System of Illinois unless that service
has been forfeited under the laws of those systems; (2) a
person entering service on or after July 1, 1991 in a
noncovered position; or (3) a person to whom Section
14-108.2a or 14-108.2b applies.
The term "employee" does not include the following:
(1) members of the State Legislature, and persons
electing to become members of the General Assembly
Retirement System pursuant to Section 2-105;
(2) incumbents of offices normally filled by vote
of the people;
(3) except as otherwise provided in this Section,
any person appointed by the Governor with the advice and
consent of the Senate unless that person elects to
participate in this system;
(4) except as provided in Section 14-108.2, any
person who is covered or eligible to be covered by the
Teachers' Retirement System of the State of Illinois, the
State Universities Retirement System, or the Judges
Retirement System of Illinois;
(5) an employee of a municipality or any other
political subdivision of the State;
(6) any person who becomes an employee after June
30, 1979 as a public service employment program
participant under the Federal Comprehensive Employment
and Training Act and whose wages or fringe benefits are
paid in whole or in part by funds provided under such
Act;
(7) enrollees of the Illinois Young Adult
Conservation Corps program, administered by the
Department of Natural Resources, authorized grantee
pursuant to Title VIII of the "Comprehensive Employment
and Training Act of 1973", 29 USC 993, as now or
hereafter amended;
(8) enrollees and temporary staff of programs
administered by the Department of Natural Resources under
the Youth Conservation Corps Act of 1970;
(9) any person who is a member of any professional
licensing or disciplinary board created under an Act
administered by the Department of Professional Regulation
or a successor agency or created or re-created after the
effective date of this amendatory Act of 1997, and who
receives per diem compensation rather than a salary,
notwithstanding that such per diem compensation is paid
by warrant issued pursuant to a payroll voucher; such
persons have never been included in the membership of
this System, and this amendatory Act of 1987 (P.A.
84-1472) is not intended to effect any change in the
status of such persons;
(10) any person who is a member of the Illinois
Health Care Cost Containment Council, and receives per
diem compensation rather than a salary, notwithstanding
that such per diem compensation is paid by warrant issued
pursuant to a payroll voucher; such persons have never
been included in the membership of this System, and this
amendatory Act of 1987 is not intended to effect any
change in the status of such persons; or
(11) any person who is a member of the Oil and Gas
Board created by Section 1.2 of the Illinois Oil and Gas
Act, and receives per diem compensation rather than a
salary, notwithstanding that such per diem compensation
is paid by warrant issued pursuant to a payroll voucher.
(Source: P.A. 88-535; 89-246; eff. 8-4-95; 89-445, eff.
2-7-96.)
(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) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the
contributions required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. To establish credit
under this subsection, the applicant must apply to the System
by March 1, 1998.
(Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
(Text of Section before amendment by P.A. 89-507)
Sec. 14-108. Amount of retirement annuity. A member who
has contributed to the System for at least 12 months, shall
be entitled to a prior service annuity for each year of
certified prior service credited to him, except that a member
shall receive 1/3 of the prior service annuity for each year
of service for which contributions have been made and all of
such annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts
shall be payable for service of less than a full year after
completion of at least 12 months.
The total period of service to be considered in
establishing the measure of prior service annuity shall
include service credited in the Teachers' Retirement System
of the State of Illinois and the State Universities
Retirement System for which contributions have been made by
the member to such systems; provided that at least 1 year of
the total period of 3 years prescribed for the allowance of a
full measure of prior service annuity shall consist of
membership service in this system for which credit has been
granted.
(a) In the case of a member who is a noncovered
employee, the retirement annuity for membership service and
prior service shall be 1.67% of final average compensation
for each of the first 10 years of service; 1.90% for each of
the next 10 years of service; 2.10% for each year of service
in excess of 20 but not exceeding 30; and 2.30% for each year
in excess of 30. Any service credit established as a covered
employee shall be considered in determining the applicable
percentages and computed as stated in paragraph (b).
(b) In the case of a covered employee, the retirement
annuity for membership service and prior service shall be
computed as stated in paragraph (a) for all service credit
established as a noncovered employee; for service credit
established as a covered employee it shall be 1% for each of
the first 10 years of service; 1.10% for each of the next 10
years of service; 1.30% for each year of service in excess of
20 but not exceeding 30; and 1.50% for each year of service
in excess of 30. Any service credit established as a
noncovered employee shall be considered in determining the
applicable percentages.
(c) For a member with 30 but less than 35 years of
creditable service retiring after attaining age 55 but before
age 60, the retirement annuity shall be reduced by 1/2 of 1%
for each month that the member's age is under age 60 at the
time of retirement.
(d) A retirement annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
(e) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county
employment in a county Department of Public Aid in counties
of 3,000,000 or more population, under a plan of coordination
with the Old Age, Survivors and Disability provisions
thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance
provisions at the date of acceptance of a retirement annuity,
shall not be less than the amount for which the member would
have been eligible if coordination were not applicable.
(f) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments
under the Federal Social Security Act at the date of
acceptance of a retirement annuity, shall not be less than an
amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such
Federal Act, will equal the annuity which would otherwise be
payable if the coordinated plan of coverage were not
applicable.
(g) In the case of a member who is a noncovered
employee, the retirement annuity for membership service as a
full-time security employee of the Department of Corrections
or security employee of the Department of Mental Health and
Developmental Disabilities shall be 1.9% of final average
compensation for each of the first 10 years of service; 2.1%
for each of the next 10 years of service; 2.25% for each year
of service in excess of 20 but not exceeding 30; and 2.5% for
each year in excess of 30.
(h) In the case of a covered employee, the retirement
annuity for membership service as a full-time security
employee of the Department of Corrections or security
employee of the Department of Mental Health and Developmental
Disabilities shall be 1.67% of final average compensation for
each of the first 10 years of service; 1.90% for each of the
next 10 years of service; 2.10% for each year of service in
excess of 20 but not exceeding 30; and 2.30% for each year in
excess of 30.
(i) For the purposes of this Section and Section 14-133
of this Act, the term "security employee of the Department of
Corrections" and the term "security employee of the
Department of Mental Health and Developmental Disabilities"
shall have the meanings ascribed to them in subsection (c) of
Section 14-110.
(j) The retirement annuity computed pursuant to
paragraphs (g) or (h) shall be applicable only to those
security employees of the Department of Corrections and
security employees of the Department of Mental Health and
Developmental Disabilities who have at least 20 years of
membership service and who are not eligible for the
alternative retirement annuity provided under Section 14-110.
However, persons transferring to this System under Section
14-108.2 who have service credit under Article 16 of this
Code may count such service toward establishing their
eligibility under the 20-year service requirement of this
subsection; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(k) In the case of a member who has at least 10 years of
creditable service as a court reporter, the retirement
annuity for service as a court reporter shall be 2.2% of
final average compensation for each year of such service as a
noncovered employee, and 1.5% of final average compensation
for each year of such service as a covered employee.
(Source: P.A. 86-272; 86-273; 86-1028.)
(Text of Section after amendment by P.A. 89-507)
Sec. 14-108. Amount of retirement annuity. A member who
has contributed to the System for at least 12 months, shall
be entitled to a prior service annuity for each year of
certified prior service credited to him, except that a member
shall receive 1/3 of the prior service annuity for each year
of service for which contributions have been made and all of
such annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts
shall be payable for service of less than a full year after
completion of at least 12 months.
The total period of service to be considered in
establishing the measure of prior service annuity shall
include service credited in the Teachers' Retirement System
of the State of Illinois and the State Universities
Retirement System for which contributions have been made by
the member to such systems; provided that at least 1 year of
the total period of 3 years prescribed for the allowance of a
full measure of prior service annuity shall consist of
membership service in this system for which credit has been
granted.
(a) In the case of a member who is a noncovered
employee, the retirement annuity for membership service and
prior service shall be 1.67% of final average compensation
for each of the first 10 years of service; 1.90% for each of
the next 10 years of service; 2.10% for each year of service
in excess of 20 but not exceeding 30; and 2.30% for each year
in excess of 30. Any service credit established as a covered
employee shall be considered in determining the applicable
percentages and computed as stated in paragraph (b).
(b) In the case of a covered employee, the retirement
annuity for membership service and prior service shall be
computed as stated in paragraph (a) for all service credit
established as a noncovered employee; for service credit
established as a covered employee it shall be 1% for each of
the first 10 years of service; 1.10% for each of the next 10
years of service; 1.30% for each year of service in excess of
20 but not exceeding 30; and 1.50% for each year of service
in excess of 30. Any service credit established as a
noncovered employee shall be considered in determining the
applicable percentages.
(c) For a member with 30 but less than 35 years of
creditable service retiring after attaining age 55 but before
age 60, the retirement annuity shall be reduced by 1/2 of 1%
for each month that the member's age is under age 60 at the
time of retirement.
(d) A retirement annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
(e) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county
employment in a county Department of Public Aid in counties
of 3,000,000 or more population, under a plan of coordination
with the Old Age, Survivors and Disability provisions
thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance
provisions at the date of acceptance of a retirement annuity,
shall not be less than the amount for which the member would
have been eligible if coordination were not applicable.
(f) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments
under the Federal Social Security Act at the date of
acceptance of a retirement annuity, shall not be less than an
amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such
Federal Act, will equal the annuity which would otherwise be
payable if the coordinated plan of coverage were not
applicable.
(g) In the case of a member who is a noncovered
employee, the retirement annuity for membership service as a
full-time security employee of the Department of Corrections
or security employee of the Department of Human Services
shall be 1.9% of final average compensation for each of the
first 10 years of service; 2.1% for each of the next 10 years
of service; 2.25% for each year of service in excess of 20
but not exceeding 30; and 2.5% for each year in excess of 30.
(h) In the case of a covered employee, the retirement
annuity for membership service as a full-time security
employee of the Department of Corrections or security
employee of the Department of Human Services shall be 1.67%
of final average compensation for each of the first 10 years
of service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year in excess of 30.
(i) For the purposes of this Section and Section 14-133
of this Act, the term "security employee of the Department of
Corrections" and the term "security employee of the
Department of Human Services" shall have the meanings
ascribed to them in subsection (c) of Section 14-110.
(j) The retirement annuity computed pursuant to
paragraphs (g) or (h) shall be applicable only to those
security employees of the Department of Corrections and
security employees of the Department of Human Services who
have at least 20 years of membership service and who are not
eligible for the alternative retirement annuity provided
under Section 14-110. However, persons transferring to this
System under Section 14-108.2 who have service credit under
Article 16 of this Code may count such service toward
establishing their eligibility under the 20-year service
requirement of this subsection; but such service may be used
only for establishing such eligibility, and not for the
purpose of increasing or calculating any benefit.
(k) In the case of a member who has at least 10 years of
creditable service as a court reporter, the retirement
annuity for service as a court reporter shall be 2.2% of
final average compensation for each year of such service as a
noncovered employee, and 1.5% of final average compensation
for each year of such service as a covered employee.
(Source: P.A. 89-507, eff. 7-1-97.)
(40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
Sec. 14-118. Widow's annuity - Conditions for payment.
A widow who exercises the right of election to receive an
annuity pursuant to this Section is entitled to a lump sum
payment of $500 plus a widow's annuity, if
(1) she was married to the deceased member for at
least 1 year prior to his death or retirement, whichever
first occurs, and also on the day of the last termination
of his service as a State employee;
(2) the deceased member had at least 8 years of
creditable service if death occurred while in service, or
while on leave of absence from service, or while in
receipt of a nonoccupational disability or occupational
disability benefit, or after retirement;
(3) she was nominated exclusively to receive the
entire death benefit payable under this Article;
(4) death of the member occurred after withdrawal,
and he had fulfilled the prescribed age and service
conditions for establishing a right in a retirement
annuity; and
(5) she elected to receive the widow's annuity
within 6 months from the date of death of the employee,
otherwise the survivors annuity if applicable, shall be
payable.
If a widow's annuity beneficiary becomes entitled to a
survivors annuity and a widow's annuity, she shall elect to
receive only one of such annuities.
The surviving spouse of a person who (1) died on or after
January 1, 1985, (2) withdrew from service prior to August 1,
1953, (3) was receiving an annuity from the system at the
time of death, and (4) meets all other requirements of this
Section, shall be entitled to the benefits provided under
this Section.
A widow's annuity shall be payable beginning on the first
of the month following the date of death of the member if the
widow has then attained age 50 or, if she is under age 50 on
such date, on the first of the month following her attainment
of such age; provided, that if an unmarried child or children
of the member under age 18 (or under age 22 if a full-time
student) also survive him, and the child or children are
under the care of the eligible widow, the widow's annuity
shall begin on the first of the month following the member's
death without regard to the age of the widow. If she is
under age 50 at the death of the member and she qualifies for
a widow's annuity, she is entitled to receive the lump sum
payment immediately upon application, but payment of the
widow's annuity shall be deferred as provided above.
The provision for a widow's annuity shall not be
construed to affect the payment of a reversionary annuity.
If a widow qualifies for more than one widow's annuity, or
for a widow's annuity and a survivors annuity, she shall
elect to receive only one of such annuities.
This Section shall not apply to the widow of any male
person who first became a member after July 19, 1961.
(Source: P.A. 84-1028.)
(40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
Sec. 14-119. Amount of widow's annuity.
(a) The widow's annuity shall be 50% of the amount of
retirement annuity payable to the member on the date of death
while on retirement if an annuitant, or on the date of his
death while in service if an employee, regardless of his age
on such date, or on the date of withdrawal if death occurred
after termination of service under the conditions prescribed
in the preceding Section.
(b) If an eligible widow, regardless of age, has in her
care any unmarried child or children of the member under age
18 (under age 22 if a full-time student), the widow's annuity
shall be increased in the amount of 5% of the retirement
annuity for each such child, but the combined payments for a
widow and children shall not exceed 66 2/3% of the member's
earned retirement annuity.
The amount of retirement annuity from which the widow's
annuity is derived shall be that earned by the member without
regard to whether he attained age 60 prior to his withdrawal
under the conditions stated or prior to his death.
(c) Adopted children shall be considered as children of
the member only if the proceedings for adoption were
commenced at least 1 year prior to the member's death.
Marriage of a child shall render the child ineligible for
further consideration in the increase in the amount of the
widow's annuity.
Attainment of age 18 (age 22 if a full-time student) of a
child shall render a child him ineligible for further
consideration in the increase of the widow's annuity, but the
annuity to the widow shall be continued thereafter, without
regard to her age at that time.
(d) A widow's annuity payable on account of any covered
employee who shall have been a covered employee for at least
18 months shall be reduced by 1/2 of the amount of survivors
benefits to which his beneficiaries are eligible under the
provisions of the Federal Social Security Act, except that
(1) the amount of any widow's annuity payable under this
Article shall not be reduced by reason of any increase under
that Act which occurs after the offset required by this
subsection is first applied to that annuity, and (2) for
benefits granted on or after January 1, 1992, the offset
under this subsection (d) shall not exceed 50% of the amount
of widow's annuity otherwise payable.
(e) Upon the death of a recipient of a widow's annuity
the excess, if any, of the member's accumulated
contributions plus credited interest over all annuity
payments to the member and widow, exclusive of the $500 lump
sum payment, shall be paid to the named beneficiary of the
widow, or if none has been named, to the estate of the widow,
provided no reversionary annuity is payable.
(f) On January 1, 1981, any recipient of a widow's
annuity who was receiving a widow's annuity on or before
January 1, 1971, shall have her widow's annuity then being
paid increased by 1% for each full year which has elapsed
from the date the widow's annuity began. On January 1, 1982,
any recipient of a widow's annuity who began receiving a
widow's annuity after January 1, 1971, but before January 1,
1981, shall have her widow's annuity then being paid
increased by 1% for each full year which has elapsed from the
date the widow's annuity began. On January 1, 1987, any
recipient of a widow's annuity who began receiving the
widow's annuity on or before January 1, 1977, shall have the
monthly widow's annuity increased by $1 for each full year
which has elapsed since the date the annuity began.
(g) Beginning January 1, 1990, every widow's annuity
shall be increased (1) on each January 1 occurring on or
after the commencement of the annuity if the deceased member
died while receiving a retirement annuity, or (2) in other
cases, on each January 1 occurring on or after the first
anniversary of the commencement of the annuity, by an amount
equal to 3% of the current amount of the annuity, including
any previous increases under this Article. Such increases
shall apply without regard to whether the deceased member was
in service on or after the effective date of Public Act
86-1488, but shall not accrue for any period prior to January
1, 1990.
(Source: P.A. 86-273; 86-1488; 87-794.)
(40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
Sec. 14-120. Survivors annuities - Conditions for
payments. A survivors annuity is established for all members
of the System. Upon the death of any male person who was a
member on July 19, 1961, however, his widow may have the
option of receiving the widow's annuity provided in this
Article, in lieu of the survivors annuity.
(a) A survivors annuity beneficiary, as herein defined,
is eligible for a survivors annuity if the deceased member
had completed at least 1 1/2 years of contributing creditable
service if death occurred:
(1) while in service;
(2) while on an approved or authorized leave of
absence from service, not exceeding one year
continuously; or
(3) while in receipt of a non-occupational
disability or an occupational disability benefit.
(b) If death of the member occurs after withdrawal, the
survivors annuity beneficiary is eligible for such annuity
only if the member had fulfilled at the date of withdrawal
the prescribed service conditions for establishing a right in
a retirement annuity.
(c) Payment of the survivors annuity shall begin
immediately if the beneficiary is 50 years or over, or upon
attainment of age 50 if the beneficiary is under that age at
the date of the member's death. In the case of survivors of a
member whose death occurred between November 1, 1970 and July
15, 1971, the payment of the survivors annuity shall begin
upon October 1, 1977, if the beneficiary is then 50 years of
age or older, or upon the attainment of age 50 if the
beneficiary is under that age on October 1, 1977.
If an eligible child or children, under the care of the
spouse also survive the member, the survivors annuity shall
begin immediately without regard to whether the beneficiary
has attained age 50.
Benefits under this Section shall accrue and be payable
for whole calendar months, beginning on the first day of the
month after the initiating event occurs and ending on the
last day of the month in which the terminating event occurs.
(d) A survivor annuity beneficiary means:
(1) A spouse of a member or annuitant if the
current marriage with member was in effect at least one
year at the date of the member's death or at least one
year at the date of his or her withdrawal, whichever
first occurs.;
(2) An unmarried child under age 18 (under age 22
if a full-time student) of the member or annuitant; an
unmarried stepchild under age 18 (under age 22 if a
full-time student) who has been such for at least one
year at the date of the member's death or at least one
year at the date of withdrawal, whichever first occurs;
an unmarried adopted child under age 18 (under age 22 if
a full-time student) if the adoption proceedings were
initiated at least one year prior to the death or
withdrawal of the member or annuitant, whichever first
occurs; and an unmarried child over age 18 if he or she
is dependent by reason of a physical or mental
disability, so long as the such physical or mental
disability continues. For purposes of this subsection
sub-section, disability means inability to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than
12 months.;
(3) A dependent parent of the member or annuitant;
a dependent step-parent by a marriage contracted before
the member or annuitant attained age 18; or a dependent
adopting parent by whom the member or annuitant was
adopted before he or she attained age 18.
(e) Remarriage before age 55 or death of a spouse;
marriage or death of a child; or remarriage before age 55 or
death of a parent terminates the survivors annuity payable on
account of such beneficiary. Remarriage of a prospective
beneficiary prior to the attainment of age 50 disqualifies
the beneficiary for the annuity expectancy hereunder.
Termination due to a marriage or remarriage shall be
permanent regardless of any future changes in marital status.
Any person whose survivors annuity was terminated during
1978 or 1979 due to remarriage at age 55 or over shall be
eligible to apply, not later than July 1, 1990, for a
resumption of that annuity, to begin on July 1, 1990.
(f) The term "dependent" relating to a survivors annuity
means a beneficiary of a survivors annuity who was receiving
from the member at the date of the member's death at least
1/2 of the support for maintenance including board, lodging,
medical care and like living costs.
(g) If there is no eligible spouse surviving the member,
or if a survivors annuity beneficiary includes a spouse who
dies or remarries, the annuity is payable to an unmarried
child or children. If at the date of death of the member
there is no spouse or unmarried child, payments shall be made
to a dependent parent or parents. If no eligible survivors
annuity beneficiary survives the member, the non-occupational
death benefit is payable in the manner provided in this
Article.
(h) Survivor benefits do not affect any reversionary
annuity.
(i) If a survivors annuity beneficiary becomes entitled
to a widow's annuity or one or more survivors annuities or
both such annuities, the beneficiary shall elect to receive
only one of such annuities.
(j) Contributing creditable service under the State
Universities Retirement System and the Teachers Retirement
System of the State of Illinois shall be considered in
determining whether the member has met the contributing
service requirements of this Section.
(k) In lieu of the Survivor's Annuity described in this
Section, the spouse of the member has the option to select
the Nonoccupational Death Benefit described in this Article,
provided the spouse is the sole survivor and the sole
nominated beneficiary of the member.
(l) The changes made to this Section and Sections
14-118, 14-119, and 14-128 by this amendatory Act of 1997,
relating to benefits for certain unmarried children who are
full-time students under age 22, apply without regard to
whether the deceased member was in service on or after the
effective date of this amendatory Act of 1997. These changes
do not authorize the repayment of a refund or a re-election
of benefits, and any benefit or increase in benefits
resulting from these changes is not payable retroactively for
any period before the effective date of this amendatory Act
of 1997.
(Source: P.A. 86-273.)
(40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
Sec. 14-128. Occupational death benefit. An
occupational death benefit is provided for a member of the
System whose death, prior to retirement, is the proximate
result of bodily injuries sustained or a hazard undergone
while in the performance and within the scope of the member's
duties.
(a) Conditions for payment.
Exclusive of the lump sum payment provided for herein,
all annuities under this Section shall accrue and be payable
for complete calendar months, beginning on the first day of
the month next following the month in which the initiating
event occurs and ending on the last day of the month in which
the terminating event occurs.
The following named survivors of the member may be
eligible for an annuity under this Section:
(i) The member's spouse.
(ii) An unmarried child of the member under age 18
(under age 22 if a full-time student); an unmarried
stepchild under age 18 (under age 22 if a full-time
student) who has been such for at least one year at the
date of the member's death; an unmarried adopted child
under age 18 (under age 22 if a full-time student) if the
adoption proceedings were initiated at least one year
prior to the death of the member; and an unmarried child
over age 18 who is dependent by reason of a physical or
mental disability, for so long as such physical or mental
disability continues. For the purposes of this Section
disability means inability to engage in any substantial
gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to
last for a continuous period of not less than 12 months.
(iii) If no spouse or eligible children survive: a
dependent parent of the member; a dependent step-parent
by a marriage contracted before the member attained age
18; or a dependent adopting parent by whom the member was
adopted before he or she attained age 18.
The term "dependent" relating to an Occupational Death
Benefit means a survivor of the member who was receiving from
the member at the date of the member's death at least 1/2 of
the support for maintenance including board, lodging, medical
care and like living costs.
Payment of the annuity shall continue until the
occurrence of the following:
(1) remarriage before age 55 or death, in the case
of a surviving spouse;
(2) attainment of age 18 or termination of
disability, death, or marriage, in the case of an
eligible child;
(3) remarriage before age 55 or death, in the case
of a dependent parent.
If none of the aforementioned beneficiaries is living at
the date of death of the member, no occupational death
benefit shall be payable, but the nonoccupational death
benefit shall be payable as provided in this Article.
(b) Amount of benefit.
The member's accumulated contributions plus credited
interest shall be payable in a lump sum to such person as the
member has nominated by written direction, duly acknowledged
and filed with the Board, or if no such nomination to the
estate of the member. When an annuitant is re-employed by a
Department, the accumulated contributions plus credited
interest payable on the member's account shall, if the member
has not previously elected a reversionary annuity, consist of
the excess, if any, of the member's total accumulated
contributions plus credited interest for all creditable
service over the total amount of all retirement annuity
payments received by the member prior to death.
In addition to the foregoing payment, an annuity is
provided for eligible survivors as follows:
(1) If the survivor is a spouse only, the annuity
shall be 50% of the member's final average compensation.
(2) If the spouse has in her care an eligible child
or children, the annuity shall be increased by an amount
equal to 15% of the final average compensation on account
of each such child, subject to a limitation on the
combined annuities to a surviving spouse and children of
75% of final average compensation.
(3) If there is no surviving spouse, or if the
surviving spouse dies or remarries while a child remains
eligible, then each such child shall be entitled to an
annuity of 15% of the deceased member's final average
compensation, subject to a limitation of 50% of final
average compensation to all such children.
(4) If there is no surviving spouse or eligible
children, then an annuity shall be payable to the
member's dependent parents, equal to 25% of final average
compensation to each such beneficiary.
If any annuity payable under this Section is less than
the corresponding survivors annuity, the beneficiary or
beneficiaries of the annuity under this Section may elect to
receive the survivors annuity and the Nonoccupational Death
Benefit provided for in this Article in lieu of the annuity
provided under this Section.
(c) Occupational death claims pending adjudication by
the Industrial Commission or a ruling by the agency
responsible for determining the liability of the State under
the "Workers' Compensation Act" or "Workers' Occupational
Diseases Act" shall be payable under the Survivor's Annuity
Section of this Article until a ruling or adjudication occurs
if the beneficiary or beneficiaries: (1) meet all conditions
for payment as prescribed in this Article; and (2) execute an
assignment of benefits payable as a result of adjudication by
the Industrial Commission or a ruling by the agency
responsible for determining the liability of the State under
such Acts. The assignment shall be made to the System and
shall be for an amount equal to the excess of benefits paid
under the Survivor's Annuity Section of this Article over
benefits payable as a result of adjudication of the Workers'
Compensation claim computed from the date of death of the
member.
(d) Every occupational death annuity payable under this
Section shall be increased on each January 1 occurring on or
after (i) January 1, 1990, or (ii) the first anniversary of
the commencement of the annuity, whichever occurs later, by
an amount equal to 3% of the current amount of the annuity,
including any previous increases under this Article, without
regard to whether the deceased member was in service on the
effective date of this amendatory Act of 1991.
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
Sec. 14-130. Refunds; rules.
(a) Upon withdrawal a member is entitled to receive,
upon written request, a refund of the member's contributions,
including credits granted while in receipt of disability
benefits, without credited interest. The board, in its
discretion may withhold payment of the refund of a member's
contributions for a period not to exceed 1 year after the
member has ceased to be an employee.
For purposes of this Section, a member will be considered
to have withdrawn from service if a change in, or transfer
of, his position results in his becoming ineligible for
continued membership in this System and eligible for
membership in another public retirement system under this
Act.
(b) A member receiving a refund forfeits and
relinquishes all accrued rights in the System, including all
accumulated creditable service. If the person again becomes
a member of the System and establishes at least 2 years of
creditable service, the member may repay the moneys
previously refunded. However, a former member may restore
credits previously forfeited by acceptance of a refund
without returning to service by applying in writing and
repaying to the System, by April 1, 1993, the amount of the
refund plus regular interest calculated from the date of
refund to the date of repayment.
The repayment of refunds issued prior to January 1, 1984
shall consist of the amount refunded plus 5% interest per
annum compounded annually for the period from the date of the
refund to the end of the month in which repayment is made.
The repayment of refunds issued after January 1, 1984 shall
consist of the amount refunded plus regular interest for the
period from the date of refund to the end of the month in
which repayment is made. However, in the case of a refund
that is repaid in a lump sum between January 1, 1991 and July
1, 1991, repayment shall consist of the amount refunded plus
interest at the rate of 2.5% per annum compounded annually
from the date of the refund to the end of the month in which
repayment is made.
Upon repayment, the member shall receive credit for the
service, member contributions and regular interest that was
forfeited by acceptance of the refund as well as regular
interest for the period of non-membership. Such repayment
shall be made 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.
(b-5) The Board may adopt rules governing the repayment
of refunds and establishment of credits in cases involving
awards of back pay or reinstatement. The rules may authorize
repayment of a refund in installment payments and may waive
the payment of interest on refund amounts repaid in full
within a specified period.
(c) A member who is unmarried on the date of retirement
or who does not have an eligible survivors annuity
beneficiary at that date is entitled to a refund of
contributions for widow's annuity or survivors annuity
purposes, or both, as the case may be, without interest.
(d) Any member who has service credit in any position
for which an alternative retirement annuity is provided and
in relation to which an increase in the rate of employee
contribution is required, shall be entitled to a refund,
without interest, of that part of the member's employee
contribution which results from that increase in the employee
rate if the member does not qualify for that alternative
retirement annuity at the time of retirement.
(Source: P.A. 86-1488; 87-1265.)
(40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
(Text of Section before amendment by P.A. 89-507)
Sec. 14-133. Contributions on behalf of members.
(a) Each participating employee shall make contributions
to the System, based on the employee's compensation, as
follows:
(1) Covered employees, except as indicated below,
3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
for a widow or survivors annuity;
(2) Noncovered employees, except as indicated
below, 7% for retirement annuity and 1% for a widow or
survivors annuity;
(3) Noncovered employees serving in a position in
which "eligible creditable service" as defined in Section
14-110 may be earned, 8.5% 8 1/2% for retirement annuity
and 1% for a widow or survivors annuity;
(4) Covered employees serving in a position in
which "eligible creditable service" as defined in Section
14-110 may be earned, 5% for retirement annuity and 0.5%
for a widow or survivors annuity;
(5) Each full-time security employee of the
Department of Corrections or of the Department of Mental
Health and Developmental Disabilities who is a covered
employee, 5% for retirement annuity and 0.5% 1/2 of 1%
for a widow or survivors annuity;
(6) Each full-time security employee of the
Department of Corrections or of the Department of Mental
Health and Developmental Disabilities who is not a
covered employee, 8.5% 8 1/2% for retirement annuity and
1% for a widow or survivors annuity.
(b) Contributions shall be in the form of a deduction
from compensation and shall be made notwithstanding that the
compensation paid in cash to the employee shall be reduced
thereby below the minimum prescribed by law or regulation.
Each member is deemed to consent and agree to the deductions
from compensation provided for in this Article, and shall
receipt in full for salary or compensation.
(Source: P.A. 86-273.)
(Text of Section after amendment by P.A. 89-507)
Sec. 14-133. Contributions on behalf of members.
(a) Each participating employee shall make contributions
to the System, based on the employee's compensation, as
follows:
(1) Covered employees, except as indicated below,
3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
for a widow or survivors annuity;
(2) Noncovered employees, except as indicated
below, 7% for retirement annuity and 1% for a widow or
survivors annuity;
(3) Noncovered employees serving in a position in
which "eligible creditable service" as defined in Section
14-110 may be earned, 8.5% 8 1/2% for retirement annuity
and 1% for a widow or survivors annuity;
(4) Covered employees serving in a position in
which "eligible creditable service" as defined in Section
14-110 may be earned, 5% for retirement annuity and 0.5%
for a widow or survivors annuity;
(5) Each full-time security employee of the
Department of Corrections or of the Department of Human
Services who is a covered employee, 5% for retirement
annuity and 0.5% 1/2 of 1% for a widow or survivors
annuity;
(6) Each full-time security employee of the
Department of Corrections or of the Department of Human
Services who is not a covered employee, 8.5% 8 1/2% for
retirement annuity and 1% for a widow or survivors
annuity.
(b) Contributions shall be in the form of a deduction
from compensation and shall be made notwithstanding that the
compensation paid in cash to the employee shall be reduced
thereby below the minimum prescribed by law or regulation.
Each member is deemed to consent and agree to the deductions
from compensation provided for in this Article, and shall
receipt in full for salary or compensation.
(Source: P.A. 89-507, eff. 7-1-97.)
(40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
Sec. 14-133.1. Pickup of contributions.
(a) Each department shall pick up the employee
contributions required by Section 14-133 for all compensation
earned after December 31, 1981, and the contributions so
picked up shall be treated as employer contributions in
determining tax treatment under the United States Internal
Revenue Code; however, each department shall continue to
withhold federal and State income taxes based upon these
contributions until the Internal Revenue Service or the
federal courts rule that pursuant to Section 414(h) of the
United States Internal Revenue Code, these contributions
shall not be included as gross income of the employee until
such time as they are distributed or made available.
The department shall pay these employee contributions
from the same fund which is used in paying earnings to the
employee. The department may pick up these contributions by
a reduction in the cash salary of the employee or by an
offset against a future salary increase or by a combination
of a reduction in salary and offset against a future salary
increase. If employee contributions are picked up they shall
be treated for all purposes of this Article 14 in the same
manner and to the same extent as employee contributions made
prior to the date picked up.
(b) Subject to the requirements of federal law, an
employee of a department may elect to have the department
pick up optional contributions that the employee has elected
to pay to the System, and the contributions so picked up
shall be treated as employer contributions for the purposes
of determining federal tax treatment. The department shall
pick up the contributions by a reduction in the cash salary
of the employee and shall pay the contributions from the same
fund that is used to pay earnings to the employee. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise.
(Source: P.A. 87-14.)
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational,
administrative, secretarial, clerical, mechanical, labor or
other staff of an employer whose employment is permanent and
continuous or who is employed in a position in which services
are expected to be rendered on a continuous basis for at
least 4 months or one academic term, whichever is less, who
(A) receives payment for personal services on a warrant
issued pursuant to a payroll voucher certified by an employer
and drawn by the State Comptroller upon the State Treasurer
or by an employer upon trust, federal or other funds, or (B)
is on a leave of absence without pay. Employment which is
irregular, intermittent or temporary shall not be considered
continuous for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly
attending classes in a college or university which is an
employer, and is employed on a temporary basis at less
than full time;
(2) is currently receiving a retirement annuity or
a disability retirement annuity under Section 15-153.2
from this System;
(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making
contributions to that system based upon earnings paid by
an employer;
(5) is on leave of absence without pay for more
than 60 days immediately following termination of
disability benefits under this Article;
(6) is hired after June 30, 1979 as a public
service employment program participant under the Federal
Comprehensive Employment and Training Act and receives
earnings in whole or in part from funds provided under
that Act;
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or
(a)(19) of Section 210 of the federal Social Security Act
from the definition of employment given in that Section
(42 U.S.C. 410); or
(8) participates in an optional program for
part-time workers under Section 15-158.1.; or
(9) participates in an optional program for
employees under Section 15-158.2.
(b) Any employer may, by filing a written notice with
the board, exclude from the definition of "employee" all
persons employed pursuant to a federally funded contract
entered into after July 1, 1982 with a federal military
department in a program providing training in military
courses to federal military personnel on a military site
owned by the United States Government, if this exclusion is
not prohibited by the federally funded contract or federal
laws or rules governing the administration of the contract.
(c) Any person appointed by the Governor under the Civil
Administrative Code of the State is an employee, if he or she
is a participant in this system on the effective date of the
appointment.
(d) A participant on lay-off status under civil service
rules is considered an employee for not more than 120 days
from the date of the lay-off.
(e) A participant is considered an employee during (1)
the first 60 days of disability leave, (2) the period, not to
exceed one year, in which his or her eligibility for
disability benefits is being considered by the board or
reviewed by the courts, and (3) the period he or she receives
disability benefits under the provisions of Section 15-152,
workers' compensation or occupational disease benefits, or
disability income under an insurance contract financed wholly
or partially by the employer.
(f) Absences without pay, other than formal leaves of
absence, of less than 30 calendar days, are not considered as
an interruption of a person's status as an employee. If such
absences during any period of 12 months exceed 30 work days,
the employee status of the person is considered as
interrupted as of the 31st work day.
(g) A staff member whose employment contract requires
services during an academic term is to be considered an
employee during the summer and other vacation periods, unless
he or she declines an employment contract for the succeeding
academic term or his or her employment status is otherwise
terminated, and he or she receives no earnings during these
periods.
(Source: P.A. 89-430, eff. 12-15-95.)
(40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
Sec. 15-131. Survivors insurance beneficiary. "Survivors
insurance beneficiary": The spouse, dependent unmarried child
under age 18 (under age 22 if a full-time student), unmarried
child over age 18 who is dependent by reason of a physical or
mental disability which began prior to attainment of that
age, or dependent parent, who could qualify for survivors
insurance payments under this Article.
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Each person shall, as a condition of employment,
become a participant and be subject to this Article on the
date that he or she becomes an employee, makes an election to
participate in, or otherwise becomes a participant in one of
the retirement programs offered under this Article, whichever
date is later.
An employee who becomes a participant shall continue to
be a participant until he or she becomes an annuitant, dies
or accepts a refund of contributions, except that a person
shall not be deemed a participant while participating in an
optional program for part-time workers established under
Section 15-158.1 or participating in an optional program for
employees established under Section 15-158.2.
(b) A person employed concurrently by 2 or more
employers is eligible to participate in the system on
compensation received from all employers; however, his or her
combined basic compensation and combined earnings shall not
exceed the basic compensation and earnings which would have
been payable for full-time employment by the employer under
which the employee's basic compensation is the highest.
However, effective for all employment on or after July 1,
1991, where a person is employed to render service to one
employer during an academic or summer term and is employed by
another employer to render service to it during the
succeeding, nonoverlapping academic or summer term, then
exclusively for the purposes of this Section, the person
shall be considered to be successively employed by more than
one employer, rather than concurrently employed by 2 or more
employers.
(Source: P.A. 89-430, eff. 12-15-95.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount.
(a) The amount of the retirement annuity shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for
each year of service in excess of 20 but not exceeding 30,
and 2.30% for each year in excess of 30, except that the
annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under the
portable retirement benefit program pursuant to the
provisions of Section 15-136.4.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the
participant in accordance with the actuarial tables and the
prescribed rate of interest in effect at the time the
retirement annuity begins:
(i) The normal annuity which can be provided on an
actuarially actuarial equivalent basis, by the accumulated
normal contributions as of the date the annuity begins; and
(ii) an annuity from employer contributions of an amount
which can be provided on an actuarially equivalent basis from
the accumulated normal contributions made by the participant
under Section 15-113.6 and Section 15-113.7 plus 1.4 times
all other accumulated normal contributions made by the
participant, except that the annuity for those persons having
made an election under Section 15-154(a-1) shall be
calculated and payable under the portable retirement benefit
program pursuant to the provisions of Section 15-136.4.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which
his or her final rate of earnings is based, shall be equal to
the participant's years of service not to exceed 30,
multiplied by (1) $96 if the participant's final rate of
earnings is less than $3,500, (2) $108 if the final rate of
earnings is at least $3,500 but less than $4,500, (3) $120 if
the final rate of earnings is at least $4,500 but less than
$5,500, (4) $132 if the final rate of earnings is at least
$5,500 but less than $6,500, (5) $144 if the final rate of
earnings is at least $6,500 but less than $7,500, (6) $156 if
the final rate of earnings is at least $7,500 but less than
$8,500, (7) $168 if the final rate of earnings is at least
$8,500 but less than $9,500, and (8) $180 if the final rate
of earnings is $9,500 or more, except that the annuity for
those persons having made an election under Section
15-154(a-1) shall be calculated and payable under the
portable retirement benefit program pursuant to the
provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25
or more years of service as a police officer or firefighter,
and a participant who is age 55 or over and has at least 20
but less than 25 years of service as a police officer or
firefighter, shall be entitled to a retirement annuity of 2
1/4% of the final rate of earnings for each of the first 10
years of service as a police officer or firefighter, 2 1/2%
for each of the next 10 years of service as a police officer
or firefighter, and 2 3/4% for each year of service as a
police officer or firefighter in excess of 20, except that
the annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under the
portable retirement benefit program pursuant to the
provisions of Section 15-136.4. The retirement annuity for
all other service shall be computed under Rule 1, payable
under the portable retirement benefit program pursuant to the
provisions of Section 15-136.4, if applicable.
(b) The retirement annuity provided under Rules 1 and 3
above shall be reduced by 1/2 of 1% for each month the
participant is under age 60 at the time of retirement.
However, this reduction shall not apply in the following
cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under
clause (6) (5) of Section 15-152;
(2) For a participant who has at least 35 years of
service; or
(3) For that portion of a retirement annuity which
has been provided on account of service of the
participant during periods when he or she performed the
duties of a police officer or firefighter, if these
duties were performed for at least 5 years immediately
preceding the date the retirement annuity is to begin.
(c) The maximum retirement annuity provided under Rules
1, 2, and 4 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to
time and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 75% of final rate
of earnings; however, this limitation of 75% of final rate of
earnings shall not apply to a person who is a participant or
annuitant on September 15, 1977 if it results in a retirement
annuity less than that which is payable to the annuitant or
which would have been payable to the participant under the
provisions of this Article in effect on June 30, 1977.
(d) An annuitant whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in
his or her retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125%
of the monthly retirement annuity provided under Rule 1, Rule
2, Rule 3, or Rule 4, contained in this Section, multiplied
by the number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter
during the annuitant's life of 3% of the monthly annuity
provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
this Section. The change made under this subsection by P.A.
81-970 is effective January 1, 1980 and applies to each
annuitant whose status as an employee terminates before or
after that date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including all increases previously granted under
this Article. The change made in this subsection by P.A.
85-1008 is effective January 26, 1988, and is applicable
without regard to whether status as an employee terminated
before that date.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of
this Section and the automatic annual increases provided
under the preceding subsection or Section 15-136.1, amounts
to less than the retirement annuity which would be provided
by Rule 3, the retirement annuity shall be increased as of
January 1, 1987, or the date the retirement annuity payment
period begins, whichever is later, to the amount which would
be provided by Rule 3 of this Section. Such increased amount
shall be considered as the retirement annuity in determining
benefits provided under other Sections of this Article. This
paragraph applies without regard to whether status as an
employee terminated before the effective date of this
amendatory Act of 1987, provided that the annuitant was
employed at least one-half time during the period on which
the final rate of earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarially actuarial equivalent
basis, by any accumulated additional contributions to his or
her credit. However, the additional contributions made by
the participant toward the automatic increases in annuity
provided under this Section shall not be taken into account
in determining the amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit,
as defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant
under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have
his or her retirement annuity then being paid increased $1
per month for each year of creditable service. On January 1,
1982, an annuitant whose retirement annuity began on or
before January 1, 1977, shall have his or her retirement
annuity then being paid increased $1 per month for each year
of creditable service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8¢
per year of creditable service times the number of years that
have elapsed since the annuity began.
(Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
(40 ILCS 5/15-136.4 new)
Sec. 15-136.4. Portable Retirement Benefit Program.
(a) For purposes of this Section, "eligible spouse"
means the husband or wife of a participant to whom the
participant is married on the date the participant's annuity
begins. However, if the participant should die prior to the
date the annuity would have begun, then "eligible spouse"
means the husband or wife, if any, to whom the participant
was married throughout the one-year period preceding the date
of his or her death.
(b) If a participant has an eligible spouse on the date
his or her annuity payments commence, the annuity shall be
paid in the form of a 50% joint and survivor annuity unless
the participant elects otherwise in writing and his or her
eligible spouse consents to that election. Under a 50% joint
and survivor annuity, a reduced amount shall be paid to the
participant for his or her lifetime and his or her eligible
spouse, if surviving at the participant's death, shall be
entitled to receive thereafter a lifetime survivorship
annuity in a monthly amount equal to 50% of the reduced
monthly amount that was payable to the participant. The
reduced amount payable to the participant under the 50% joint
and survivor annuity shall be determined so that the
aggregate of the annuity payments expected to be made to the
participant and his or her eligible spouse is the actuarial
equivalent of a single-life annuity. The last payment of a
50% joint and survivor annuity shall be made as of the first
day of the month in which the death of the survivor occurs.
(c) Instead of the 50% joint and survivor annuity, a
participant may elect in writing, within the 90-day period
prior to the date his or her annuity payments commence, and
only with the consent of his or her eligible spouse, to
receive a monthly amount in the form of a single-life
annuity. A participant may also elect instead an optional
form of benefit under subsection (k). However, if the
participant does elect an optional form of benefit under
subsection (k) and if the contingent annuitant under the
option is not the participant's eligible spouse, then the
optional election shall be canceled and the annuity shall be
paid in the form of a 50% joint and survivor annuity unless,
within the 90-day period preceding the annuity commencement
date, the eligible spouse consents to the optional election.
(d) A participant may also revoke any election made
under this Section at any time during the 90-day period
preceding the date the participant's annuity commences if the
purpose of such revocation is to reinstate coverage under the
50% joint and survivor annuity.
(e) The eligible spouse's consent to any election made
pursuant to this Section that requires the eligible spouse's
consent shall be in writing and shall acknowledge the effect
of the consent. In addition, the eligible spouse's signature
on the written consent must be witnessed by a notary public.
The eligible spouse's consent need not be obtained if the
system is satisfied that there is no eligible spouse, that
the eligible spouse cannot be located, or because of any
other relevant circumstances. An eligible spouse's consent
under this Section is valid only with respect to the
specified alternate contingent annuitant designated by the
participant. If the alternate contingent annuitant is
subsequently changed, a new consent by the eligible spouse is
required. The eligible spouse's consent to an election made
by a participant pursuant to this Section, once made, may not
be revoked by the eligible spouse.
(f) Within a reasonable period of time preceding the
date a participant's annuity commences, a participant shall
be supplied with a written explanation of (1) the terms and
conditions of the 50% joint and survivor annuity, (2) the
participant's right, if any, to elect a single-life annuity
or an optional form of payment under subsection (k) in lieu
of the 50% joint and survivor annuity and subject, in certain
cases, to his or her eligible spouse's consent, and (3) the
participant's right to reinstate coverage under the 50% joint
and survivor annuity prior to his or her annuity commencement
date by revoking an election of a single-life annuity or an
optional form of benefit under subsection (k).
(g) If a participant does not have an eligible spouse
on the date his or her annuity payments commence, the
participant shall receive a single-life annuity, subject to
his or her right, if any, to elect an optional form of
benefit. The last payment of the single-life annuity shall be
made as of the first day of the month in which the death of
the participant occurs.
(h) A participant with a least 5 years of service whose
employment has not terminated shall be covered by the 50%
joint and survivor annuity provisions so that if he or she
dies prior to termination of employment, his or her eligible
spouse will be entitled to receive an annuity. The annuity
payable under this subsection (h) to the eligible spouse
shall be actuarially equivalent to the amount that would be
payable as a survivor annuity under subsection (b) if (1) in
the case of a participant who dies after the date on which
the participant attained the earliest retirement age, the
participant had retired with an immediate qualified joint and
survivor annuity on the day before the participant's date of
death; or (2) in the case of a participant who dies on or
before the date on which the participant would have attained
the earliest retirement age, the participant had separated
from service on the date of death, survived to the earliest
retirement age, retired with an immediate qualified joint and
survivor annuity at the earliest retirement age, and died on
the day after the day on which the participant would have
attained the earliest retirement age.
The annuity payable to an eligible spouse of a
participant shall commence as of the beginning of the month
next following the later of the date of death or the date the
participant would have met the eligibility requirements for
an annuity and shall continue through the beginning of the
month in which the death of the eligible spouse occurs.
No benefit shall be payable under this subsection (h) for
death during employment after the participant has satisfied
the requirements for retirement if an option is effective
under subsection (k).
(i) A participant who (1) has terminated employment with
at least 5 years of service, (2) has not begun receiving
annuity payments, (3) has not taken a refund under Section
15-154(a-2), and (4) has not elected an effective option
under subsection (k), shall be covered by the 50% joint and
survivor annuity provisions of subsection (b) until the date
his or her annuity payments commence. If the participant
dies before the date his or her annuity payments commence,
the participant's surviving eligible spouse shall receive an
annuity computed in accordance with the applicable provisions
of this Section as if the participant's annuity payments had
commenced on the first day of the month coincident with or
next following the later of his or her date of death or the
date the participant would have been eligible for a
retirement annuity based on service prior to his or her
death. The annuity payable to such an eligible spouse shall
commence on the first day of the month coincident with or
next following the later of the participant's date of death
or the date the participant would have been eligible for a
retirement annuity based on service prior to his death and
shall continue through the beginning of the month in which
the death of the eligible spouse occurs.
(j) The provisions of subsection (i) shall not affect
the right of a participant to elect a single-life annuity,
pursuant to the provisions of subsection (b).
(k) By filing a timely election with the system, a
participant who will be eligible to receive a retirement
annuity under this Section may designate his or her spouse or
any person approved by the system as his or her contingent
annuitant and elect to receive an annuity payable in
accordance with one of the following options, instead of the
annuity to which he or she may otherwise become entitled:
Option 1: The participant shall receive a reduced
annuity payable for life, and payments in the amount of
100% of such reduced amount shall, after the
participant's death, be continued to the contingent
annuitant during the latter's lifetime.
Option 2: The participant shall receive a reduced
annuity payable for life, and payments in the amount of
75% of such reduced annuity shall, after the
participant's death, be continued to the contingent
annuitant during the latter's lifetime.
Option 3: The participant shall receive a reduced
annuity payable for life, and payments in the amount of
50% of such reduced annuity shall, after the
participant's death, be continued to the contingent
annuitant during the latter's lifetime.
The aggregate of the annuity payments expected to be paid
to a participant and his contingent annuitant under any of
the above options shall be the actuarial equivalent of the
annuity that the participant is otherwise entitled to receive
upon retirement.
Under no circumstances may an option be elected, changed,
or revoked after the date the participant's annuity
commences. An option in favor of a contingent annuitant who
is not the participant's eligible spouse may be revoked at
any time prior to the date the participant's annuity payments
commence. If the contingent annuitant under the elected
option is not the participant's eligible spouse, then the
election is valid only if the eligible spouse consents to the
participant's optional election and to the specific
contingent annuitant within the 90-day period preceding the
date the participant's annuity commences.
An election made pursuant to this subsection (k) shall
become inoperative if the participant's employment terminates
before he or she is eligible for a retirement annuity, or if
the participant or the contingent annuitant dies before the
date the participant's annuity payments commence, or if the
eligible spouse's consent is required and not given. An
effective option under this subsection (k) takes the place of
any benefit otherwise payable under this Section, and the
form made available by the system for election of the option
shall so specify.
(1) Within the appropriate applicable period under
Section 417 of the Internal Revenue Code of 1986, as amended
from time to time, a participant shall be supplied with a
written explanation of (1) the terms and conditions of the
preretirement survivor annuity under subsections (h) and (i),
(2) the participant's right, if any, to elect a single-life
annuity or an optional form of payment under subsection (k)
in lieu of the preretirement survivor annuity and subject, in
certain cases, to his or her eligible spouse's consent, and
(3) the participant's right to reinstate coverage under the
preretirement survivor annuity by revoking an election of a
single-life annuity or an optional form of benefit under
subsection (k).
(40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
Sec. 15-141. Death benefits - Death of participant. The
beneficiary of a participant is entitled to a death benefit
equal to the sum of (1) the employee's accumulated normal and
additional contributions on the date of death, (2) the
employee's accumulated survivors insurance contributions on
the date of death, if a survivors insurance benefit is not
payable, (3) an amount equal to the employee's final rate of
earnings, but not more than $5,000 if (i) the beneficiary,
under rules of the board, was dependent upon the participant,
(ii) the participant was a participating employee immediately
prior to his or her death, and (iii) a survivors insurance
benefit is not payable, and (4) $2,500 if (i) the beneficiary
was not dependent upon the participant, (ii) the participant
was a participating employee immediately prior to his or her
death, and (iii) a survivors insurance benefit is not
payable.
However, if the participant has elected to participate in
the portable retirement benefit program by making the
election specified in Section 15-154(a-1), the death benefit
shall be calculated as follows. The death benefit shall be
equal to the employee's accumulated normal and additional
contributions on the date of death, or if the employee died
with 5 or more years of service for employment as defined in
Section 15-113.1, his or her beneficiary shall also be
entitled to employer contributions in an amount equal to the
sum of accumulated normal and additional contributions;
except that if a benefit to a surviving spouse is payable
under Section 15-136.4, the death benefit payable under this
paragraph shall be reduced, but to not less than zero, by the
actuarial value of the benefit payable to the surviving
spouse.
If payments are made under any State or Federal Workers'
Compensation or Occupational Diseases Law because of the
death of an employee, the portion of the death benefit
payable from employer contributions shall be reduced by the
total amount of the payments.
(Source: P.A. 87-8.)
(40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
Sec. 15-142. Death benefits - Death of annuitant. Upon
the death of an annuitant receiving a retirement annuity or
disability retirement annuity, the annuitant's beneficiary
shall, if a survivor's insurance benefit is not payable under
Section 15-145 or an annuity is not payable under Section
15-136.4, be entitled to a death benefit equal to the greater
of the following: (1) the excess, if any, of the sum of the
accumulated normal, survivors insurance and additional
contributions as of the date of retirement, or the date the
disability retirement annuity began, whichever is earlier,
over the sum of all annuity payments made prior to the date
of death, or (2) $1,000.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
Sec. 15-145. Survivors insurance benefits; Conditions
and amounts.
(a) The survivors insurance benefits provided under this
Section shall be payable upon the death of (1) a
participating employee with at least 1 1/2 years of service,
(2) a participant who terminated employment with at least 10
years of service, and (3) an annuitant in receipt of a
retirement annuity or disability retirement annuity under
this Article.
Service under the State Employees' Retirement System of
Illinois, the Teachers' Retirement System of the State of
Illinois and the Public School Teacher's Pension and
Retirement Fund of Chicago shall be considered in determining
eligibility for survivors benefits under this Section.
If by law, a function of a governmental unit, as defined
by Section 20-107, is transferred in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months after the
transfer of this function, the service credits in the
governmental unit's retirement system which have been
validated under Section 20-109 shall be considered in
determining eligibility for survivors benefits under this
Section.
(b) A surviving spouse of a deceased participant, or of
a deceased annuitant who had a survivors insurance
beneficiary at the time of retirement, shall receive a
survivors annuity of 30% of the final rate of earnings.
Payments shall begin on the day following the participant's
or annuitant's death or the date the surviving spouse attains
age 50, whichever is later, and continue until the death of
the surviving spouse. The annuity shall be payable to the
surviving spouse prior to attainment of age 50 if the
surviving spouse has in his or her care a deceased
participant's or annuitant's dependent unmarried child under
age 18 (under age 22 if a full-time student) who is eligible
for a survivors annuity. Remarriage of a surviving spouse
prior to attainment of age 55 shall disqualify him or her for
the receipt of a survivors annuity.
(c) Each dependent unmarried child under age 18 (under
age 22 if a full-time student) of a deceased participant, or
of a deceased annuitant who had a survivors insurance
beneficiary at the time of his or her retirement, shall
receive a survivors annuity equal to the sum of (1) 20% of
the final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to this
benefit. Payments shall begin on the day following the
participant's or annuitant's death and continue until the
child marries, dies, or attains age 18 (age 22 if a full-time
student). If the child is in the care of a surviving spouse
who is eligible for survivors insurance benefits, the child's
benefit shall be paid to the surviving spouse.
Each unmarried child over age 18 of a deceased
participant or of a deceased annuitant who had a survivor's
insurance beneficiary at the time of his or her retirement,
and who was dependent upon the participant or annuitant by
reason of a physical or mental disability which began prior
to the date the child attained age 18 (age 22 if a full-time
student), shall receive a survivor's annuity equal to the sum
of (1) 20% of the final rate of earnings, and (2) 10% of the
final rate of earnings divided by the number of children
entitled to survivors benefits. Payments shall begin on the
day following the participant's or annuitant's death and
continue until the child marries, dies, or is no longer
disabled. If the child is in the care of a surviving spouse
who is eligible for survivors insurance benefits, the child's
benefit may be paid to the surviving spouse. For the
purposes of this Section, disability means inability to
engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can
be expected to result in death or that has lasted or can be
expected to last for a continuous period of at least one
year.
(d) Each dependent parent of a deceased participant, or
of a deceased annuitant who had a survivors insurance
beneficiary at the time of his or her retirement, shall
receive a survivors annuity equal to the sum of (1) 20% of
final rate of earnings, and (2) 10% of final rate of earnings
divided by the number of parents who qualify for the benefit.
Payments shall begin when the parent reaches age 55 or the
day following the participant's or annuitant's death,
whichever is later, and continue until the parent dies.
Remarriage of a parent prior to attainment of age 55 shall
disqualify the parent for the receipt of a survivors annuity.
(e) In addition to the survivors annuity provided above,
each survivors insurance beneficiary shall, upon death of the
participant or annuitant, receive a lump sum payment of
$1,000 divided by the number of such beneficiaries.
(f) The changes made in this Section by Public Act
81-712 pertaining to survivors annuities in cases of
remarriage prior to age 55 shall apply to each survivors
insurance beneficiary who remarries after June 30, 1979,
regardless of the date that the participant or annuitant
terminated his employment or died.
(g) On January 1, 1981, any person who was receiving a
survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each
full year which has elapsed from the date the annuity began.
On January 1, 1982, any survivor whose annuity began after
January 1, 1971, but before January 1, 1981, shall have the
survivor's annuity then being paid increased by 1% for each
year which has elapsed from the date the survivor's annuity
began. On January 1, 1987, any survivor who began receiving a
survivor's annuity on or before January 1, 1977, shall have
the monthly survivor's annuity increased by $1 for each full
year which has elapsed since the date the survivor's annuity
began.
(h) If the sum of the lump sum and total monthly
survivor benefits payable under this Section upon the death
of a participant amounts to less than the sum of the death
benefits payable under items (2) and (3) of Section 15-141,
the difference shall be paid in a lump sum to the beneficiary
of the participant who is living on the date that this
additional amount becomes payable.
(i) If the sum of the lump sum and total monthly
survivor benefits payable under this Section upon the death
of an annuitant receiving a retirement annuity or disability
retirement annuity amounts to less than the death benefit
payable under Section 15-142, the difference shall be paid to
the beneficiary of the annuitant who is living on the date
that this additional amount becomes payable.
(j) Effective on the later of (1) January 1, 1990, or
(2) the January 1 on or next after the date on which the
survivor annuity begins, if the deceased member died while
receiving a retirement annuity, or in all other cases the
January 1 nearest the first anniversary of the date the
survivor annuity payments begin, every survivors insurance
beneficiary shall receive an increase in his or her monthly
survivors annuity of 3%. On each January 1 after the initial
increase, the monthly survivors annuity shall be increased by
3% of the total survivors annuity provided under this
Article, including previous increases provided by this
subsection. Such increases shall apply to the survivors
insurance beneficiaries of each participant and annuitant,
whether or not the employment status of the participant or
annuitant terminates before the effective date of this
amendatory Act of 1990.
(k) If the Internal Revenue Code of 1986, as amended,
requires that the survivors benefits be payable at an age
earlier than that specified in this Section the benefits
shall begin at the earlier age, in which event, the
survivor's beneficiary shall be entitled only to that amount
which is equal to the actuarial equivalent of the benefits
provided by this Section.
(l) The changes made to this Section and Section 15-131
by this amendatory Act of 1997, relating to benefits for
certain unmarried children who are full-time students under
age 22, apply without regard to whether the deceased member
was in service on or after the effective date of this
amendatory Act of 1997. These changes do not authorize the
repayment of a refund or a re-election of benefits, and any
benefit or increase in benefits resulting from these changes
is not payable retroactively for any period before the
effective date of this amendatory Act of 1997.
(Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
(40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
Sec. 15-146. Survivors insurance benefits - Minimum
amounts.
(a) The minimum total survivors annuity payable on
account of the death of a participant shall be 50% of the
retirement annuity which would have been provided under Rule
1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
attainment of the minimum age at which the penalty for early
retirement would not be applicable or the date of the
participant's death, whichever is later, on the basis of
credits earned prior to the time of death.
(b) The minimum total survivors annuity payable on
account of the death of an annuitant shall be 50% of the
retirement annuity which is payable under Section 15-136 at
the time of death or 50% of the disability retirement annuity
payable under Section 15-153.2. This minimum survivors
annuity shall apply to each participant and annuitant who
dies after September 16, 1979, whether or not his or her
employee status terminates before or after that date.
(c) If an annuitant has elected a reversionary annuity,
the retirement annuity referred to in this Section is that
which would have been payable had such election not been
filed.
(d) If a participant has made the election provided for
under Section 15-154(a-1), the minimum survivor benefit shall
be determined under Section 15-136.4.
(Source: P.A. 83-1362; 83-1440.)
(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
Sec. 15-154. Refunds.
(a) A participant whose status as an employee is
terminated, regardless of cause, or who has been on lay off
status for more than 120 days, and who is not on leave of
absence, is entitled to a refund of contributions upon
application; except that not more than one such refund
application may be made during any academic year.
Except as set forth in subsections (a-1) and (a-2), the
refund shall be the sum of the accumulated normal, additional
and survivors insurance contributions, less the amount of
interest credited on these contributions each year in excess
of 4 1/2% of the amount on which interest was calculated.
(a-1) Every person who becomes a participating employee
after the date on which his or her employer first offers an
optional retirement program under Section 15-158.2 may elect
within 60 days of becoming a participant to have any refund
calculated pursuant to subsection (a-2) by forgoing all
survivors insurance benefits to which the person's survivors
would otherwise be entitled under this Article. This
election is irrevocable and may be made by filing an election
with the system on such form as the Executive Director shall
prescribe.
Each person who is a participating employee on the date
on which his or her employer first offers an optional
retirement program under Section 15-158.2 shall have a
one-time option to elect to have his or her refund calculated
pursuant to subsection (a-2), by forgoing all survivors
insurance benefits to which the person's survivors would
otherwise be entitled under this Article. The election will
not be effective until one year after the election is filed
with the system. This election is irrevocable and may be
made by filing an election with the system, on such form as
the Executive Director shall prescribe, within one year after
the date on which his or her employer first offers an
optional retirement program under Section 15-158.2.
A person may make the one-time irrevocable election
authorized under this Section or the election authorized
under Section 15-158.2(g), but may not make both elections.
Any person interested in electing the portable retirement
benefit program provided under this Section and Section
15-136.4 must be given a consultation with the State
Universities Retirement System before making that election.
(a-2) The refund elected under subsection (a-1) shall be
the sum of the participant's accumulated normal and
additional contributions, as defined in Sections 15-116 and
15-117. If the participant terminates with 5 or more years
of service for employment as defined in Section 15-113.1, he
or she shall also be entitled to a refund of employer
contributions in an amount equal to the sum of the
accumulated normal and additional contributions, as defined
in Sections 15-116 and 15-117.
(b) Upon acceptance of a refund, the participant
forfeits all accrued rights and credits in the System, and if
subsequently reemployed, the participant shall be considered
a new employee subject to all the qualifying conditions for
participation and eligibility for benefits applicable to new
employees. If such person again becomes a participating
employee and continues as such for 2 years, or is employed by
an employer and participates for at least 2 years in the
Federal Civil Service Retirement System, all such rights,
credits, and previous status as a participant shall be
restored upon repayment of the amount of the refund, together
with compound interest thereon from the date the refund was
received to the date of repayment at the rate of 6% per annum
through August 31, 1982, and at the effective rates after
that date.
(c) If a participant has made survivors insurance
contributions, but has no survivors insurance beneficiary
upon retirement, he or she shall be entitled to a refund of
the accumulated survivors insurance contributions, or to an
additional annuity the value of which is equal to the
accumulated survivors insurance contributions.
(d) A participant, upon application, is entitled to a
refund of his or her accumulated additional contributions
except those covering the cost of the annual increase in the
retirement annuity provided under Section 15-136. Upon the
acceptance of such a refund of accumulated additional
contributions, the participant forfeits all rights and
credits which may have accrued because of such contributions.
(e) A participant who terminates his or her employee
status and elects to waive service credit under Section
15-154.2, is entitled to a refund of the accumulated normal,
additional and survivors insurance contributions, if any,
which were credited the participant for this service, or to
an additional annuity the value of which is equal to the
accumulated normal, additional and survivors insurance
contributions, if any; except that not more than one such
refund application may be made during any academic year. Upon
acceptance of this refund, the participant forfeits all
rights and credits accrued because of this service.
(f) If a police officer or firefighter receives a
retirement annuity under Rule 1, 2, or 3 of Section 15-136,
he or she shall be entitled at retirement to a refund of the
difference between his or her accumulated normal
contributions and the normal contributions which would have
accumulated had such person filed a waiver of the retirement
formula provided by Rule 4 of Section 15-136.
(g) If, at the time of retirement, a participant would
be entitled to a retirement annuity under Rule 1, 2, 3 or 4
of Section 15-136 that exceeds the maximum specified in
clause (1) of subsection (c) of Section 15-136, he or she
shall be entitled to a refund of the employee contributions,
if any, paid under Section 15-157 after the date upon which
continuance of such contributions would have otherwise caused
the retirement annuity to exceed this maximum, plus compound
interest at the effective rates.
(Source: P.A. 87-8; 87-794; 87-895; 87-1265; 88-45.)
(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 additional
survivors insurance contributions of 1% of earnings
applicable under this system on and after August 1, 1959.
The contribution made under this subsection shall be used to
finance survivors insurance benefits, unless the participant
has made an election under Section 15-154(a-1), in which case
the contribution made under this subsection shall be used to
finance the benefits obtained under that election.
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 5/15-158.2)
Sec. 15-158.2. Optional retirement program for
educational employees.
(a) Purpose. The General Assembly finds that it is
important for colleges and universities to be able to attract
and retain the most qualified employees and that in order to
attract and retain these employees, colleges and universities
should have the flexibility to provide an alternative
retirement program for eligible employees persons who elect
not to participate in the other retirement programs plan of
contributions and benefits otherwise provided under this
Article.
(b) Definitions. For the purposes of this Section,
"eligible employee person" means an employee who is eligible
to participate in the State Universities University
Retirement System without respect to Section 15-107(a)(9) and
who does not have sufficient age and service to qualify for a
retirement annuity under Section 15-135. A "currently
eligible employee person" is an employee a person who becomes
an eligible employee person on the effective date of the
optional retirement program established by the employee's
person's employer. A "newly eligible employee person" is an
employee a person who becomes an eligible employee person
after the effective date of the optional retirement program
established by the employee's person's employer.
(c) Program. Each employer subject to this Article may
elect to establish an optional retirement program under this
Section for the eligible employees whom persons that it
employs. The optional retirement program shall provide
retirement benefits for participating employees persons
through the purchase of annuity contracts, either fixed or
variable or a combination thereof, through the purchase of
mutual funds, or through both and shall may also provide for
death and disability benefits.
The State Universities Retirement System shall be the
plan sponsor for the program. Consistent with its fiduciary
duty to the participants and beneficiaries of the program,
the Board of Trustees of the System may delegate aspects of
program administration as it sees fit to The program may
provide for administration of the program by companies
authorized to do business in this State, to or the employers,
employer or to a combination of both, but shall not require
any action by the State Universities Retirement System or its
Board of Trustees. Two or more employers may agree to
establish a joint program under this Section.
The plan program must be qualified under the Internal
Revenue Code of 1986.
(d) Proposals. The System, in consultation with the
employers, An employer under this Section shall solicit
proposals to participate in the program from insurance and
annuity companies and mutual fund companies authorized to do
conduct such business in this State. In reviewing the
proposals received and approving and contracting with no
fewer than 2 and no more than 7 companies, at least 2 of
which must be insurance and annuity companies, the Board of
Trustees of the System deciding to implement a program, the
employer shall consider, among other things, the following
criteria:
(1) the nature and extent of the benefits that
would be provided to the participants;
(2) the reasonableness of the benefits in relation
to the premium charged;
(3) the suitability of the benefits to the needs
and interests of the participating employees persons and
the employer;
(4) the ability of the company to provide benefits
under the contract and the financial stability of the
company; and
(5) the efficacy of the contract in the recruitment
and retention of employees.
An employer that elects to offer an optional retirement
program under subsection (c) may only select for
participation in the program 2 or more of the companies
approved by the Board of Trustees of the System. The System,
in consultation with the employers, shall periodically review
each approved company; a company may continue to participate
in the program only so long as it continues to be an approved
company under contract with the Board.
(e) System Conflict of Interest. In order to preclude
any conflict of interest by the System, only insurance and
annuity companies and mutual fund companies that are
authorized to do business in this State may be approved, in
accordance with the procedures of subsection (d), to
participate in this program and offer investment options for
program participants.
(f) Account Balance Transfers. Employees who are
participating in the program must be allowed to transfer
their account balances from the investment options offered by
one of the companies selected by the employer to the
investment options offered by another company so selected,
subject to applicable contractual provisions.
(g) (e) Participation. Any eligible employee person
employed by an employer may elect to participate in the
optional retirement program offered by the employer under
subsection (c) that employer's optional retirement program.
The election must be made in writing and in the manner
prescribed by the System employer. A currently eligible
employee person must make take this election within one year
after the effective date of the employer's optional
retirement program. A newly eligible employee person must
make take this election within 60 days after becoming an
eligible employee person. A person may make the one-time
irrevocable election authorized under this Section or the
election authorized under Section 15-154(a-1), but may not
make both elections. The employer shall not remit
contributions on behalf of a newly eligible employee to
either the optional retirement program or to the State
Universities Retirement System until the 60-day period has
run unless an election by the employee has been made earlier.
Any eligible employee person interested in electing the
optional retirement program provided under this Section must
be given a consultation with the State Universities
Retirement System before making that an election.
Participation in the optional retirement program shall
begin on the first day of the first pay period following the
date of election, but no earlier than January 1, 1998 July 1,
1996. The employee's person's participation in any other
retirement program administered by the System under this
Article the System, if any, with respect to the qualifying
employment shall terminate on the date that participation in
the optional retirement program begins, and the employee
person shall thereby be deemed to have elected to receive a
refund of contributions as provided in Section 15-154, except
that such deemed refund shall include interest at the
effective rate for the respective years, and except that any
funds which would have been received shall instead be
transferred directly to the optional retirement program as a
tax free transfer in accordance with Internal Revenue Service
guidelines.
Notwithstanding any other provision of this Code, an
employee a person may not purchase or receive service or
service credit applicable to any other retirement program
administered by the System under this Article in this System
for any period during which the employee was a participant
person was not a participant in the System due to an election
to participate in the an optional retirement program
established under this Section.
An employee A person who has elected to participate in
the an optional retirement program under this Section must
continue participation while employed in an eligible
position, and may not participate in any other retirement
program administered by the System under this Article return
to participation in this System while employed by that
employer, unless the optional retirement program is
terminated in accordance with subsection (i) (g).
Participation in the optional retirement program under
this Section shall constitute membership in the State
Universities Retirement System, although a participant under
this Section shall not be entitled to receive any benefits
under any other provisions of Article 15 or of Article 20.
An employee who receives a disability benefit or a retirement
benefit under this Section or an employee who receives a lump
sum distribution from a mutual fund company under this
Section and uses the lump sum to purchase an annuity shall be
considered an employee or an annuitant under Article 15 for
purposes of the State Employees Group Insurance Act of 1971.
Participation in the optional retirement program under this
Section creates a contractual relationship with respect to
the investment of the employee's account balance between the
employee and the company providing the investment options for
the employee's account balance. Participation does not
create a contractual relationship between the employee and
the System or between the employee and his or her employer.
Participation in an optional retirement program
established under this Section does not constitute membership
or participation in the State Universities Retirement System
or any other pension fund or retirement system of the State.
Participation in an optional retirement program established
under this Section creates a contractual relationship only
between the person and the company providing the optional
retirement program, and not between the person and the System
or the person's employer.
(h) (f) Contributions. The contribution rate for
employees persons participating in the an optional retirement
program under this Section shall be equal to the employee
contribution rate for other participants in the System. This
required contribution may be made as an "employer pick-up"
under Section 414(h) of the Internal Revenue Code of 1986 or
any successor Section. Any employee person participating in
the System or who elects to participate in the optional
retirement program shall continue to have the employer
"pick-up" the contribution. However, amounts picked up after
the election of the optional retirement program shall be
remitted to the optional retirement plan. In no event shall
an employee have an option of receiving these amounts in
cash. The program shall provide for employer contributions
at a rate of no more than 7.6% of the participating
employee's person's salary. The An optional retirement
program shall be funded by contributions from employees
persons participating in the program and employer
contributions as required by the plan. The plan shall be
funded in a manner consistent with the requirements of the
Internal Revenue Code Section 412, and regulations
promulgated thereunder, and Proposed Regulation 412(b)-1(a)
as that Section applies those Sections apply to money
purchase plans.
The State of Illinois shall make contributions by
appropriations to the System of the employer contributions
required for employees who participate in the optional
retirement program under this Section. The amount required
shall be certified by the Board of Trustees of the System and
paid by the State in accordance with Section 15-165. The
System shall not be obligated to remit the required employer
contributions to any insurance and annuity and mutual fund
companies participating in the optional retirement program
under subsection (d) until it has received the required
employer contributions from the State. In the event of a
deficiency in the amount of State contributions, the System
shall implement those procedures described in subsection (c)
of Section 15-165 to obtain the required funding from the
General Revenue Fund.
The contributions and interest thereon, and any benefits
based upon them, shall be treated as provided in the funding
vehicles for this plan. An amount of up to 1% of each
participating employee's participant's salary shall may be
taken from the employer contribution to the optional
retirement program and shall may be contributed, on the
employee's participant's behalf, to a plan which the System
offers employer sets up to provide for life or disability
benefits.
(i) (g) Termination. An optional retirement program
authorized established under this Section may be terminated
by the employer, subject to the terms of any relevant
contracts, and the employer shall have no obligation to
reestablish an optional retirement renew any contract or
program established under this Section. This Section does
not create a right to continued continue participation in any
optional retirement program set up by an employer established
under this Section. If an optional retirement program is
terminated, the participants shall have the right to
participate in one of the other retirement programs offered
by the System and receive service credit in such other
retirement program for any years of employment following the
termination.
(j) (h) Vesting. Employer contributions shall be vested
after five years of employment. If an employee a participant
terminates employment prior to completing five years of
service, the employee participant shall be entitled to a
benefit in accordance with the terms of the employer's
retirement plan which is based on the accumulation value
attributable to the employee's participant's contributions
and any investment return experience thereon. Benefits for
employees participants who terminate with at least five years
of service shall be in accordance with the terms of the
optional employer's retirement plan and based on the
accumulation value attributable to both the employer and the
employee's participant's contributions and any investment
return experience thereon. Any employer contributions which
are forfeited shall be held in escrow by the funding company
investing those contributions and shall be used to reduce the
next premium payment due from the employer.
(Source: P.A. 89-430, eff. 12-15-95.)
(40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
Sec. 15-165. To certify amounts and submit vouchers.
(a) The Board shall certify to the Governor on or before
November 15 of each year the appropriation required from
State funds for the purposes of this System for the following
fiscal year. The certification shall include a copy of the
actuarial recommendations upon which it is based.
(b) The Board shall certify to the State Comptroller or
employer, as the case may be, from time to time, by its
president and secretary, with its seal attached, the amounts
payable to the System from the various funds.
(c) Beginning in State fiscal year 1996, on or as soon
as possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). These vouchers shall be paid by the State Comptroller
and Treasurer by warrants drawn on the funds appropriated to
the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under
Section 8.12 of the State Finance Act and Section 1 of the
State Pension Funds Continuing Appropriation Act) is less
than the amount lawfully vouchered under this Section, the
difference shall be paid from the General Revenue Fund under
the continuing appropriation authority provided in Section
1.1 of the State Pension Funds Continuing Appropriation Act.
(d) So long as the payments received are the full amount
lawfully vouchered under this Section, payments received by
the System under this Section shall be applied first toward
the employer contribution to the optional retirement program
established under Section 15-158.2. Payments shall be
applied second toward the employer's portion of the normal
costs of the System, as defined in subsection (f) of Section
15-155. The balance shall be applied toward the unfunded
actuarial liabilities of the System.
(e) In the event that the System does not receive, as a
result of legislative enactment or otherwise, payments
sufficient to fully fund the employer contribution to the
optional retirement program established under Section
15-158.2 and to fully fund that portion of the employer's
portion of the normal costs of the System, as calculated in
accordance with Section 15-155(a-1), then any payments
received shall be applied proportionately to the optional
retirement program established under Section 15-158.2 and to
the employer's portion of the normal costs of the System, as
calculated in accordance with Section 15-155(a-1).
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
Sec. 15-185. Annuities, etc., exempt. The accumulated
employee and employer contributions shall be held in trust
for each participant and annuitant, and this trust shall be
treated as a spendthrift trust. Except as provided in this
Article, all cash, securities and other property of this
system, all annuities and other benefits payable under this
Article and all accumulated credits of participants and
annuitants in this system and the right of any person to
receive an annuity or other benefit under this Article, or a
refund of contributions, shall not be subject to judgment,
execution, garnishment, attachment, or other seizure by
process, in bankruptcy or otherwise, nor to sale, pledge,
mortgage or other alienation, and shall not be assignable.
The board, however, may deduct from the benefits, refunds and
credits payable to the participant, annuitant or beneficiary,
amounts owed by the participant or annuitant to the system.
No attempted sale, transfer or assignment of any benefit,
refund or credit shall prevent the right of the board to make
the deduction and offset authorized in this Section. Any
participant or annuitant may authorize the board to deduct
from disability benefits or annuities, premiums due under any
group hospital-surgical insurance program which is sponsored
or approved by any employer; however, the deductions from
disability benefits may not begin prior to 6 months after the
disability occurs.
A person receiving an annuity or benefit under this
Article may authorize withholding from that annuity or
benefit in accordance with the provisions of the State Salary
and Annuity Withholding Act.
This amendatory Act of 1989 is a clarification of
existing law and shall be applicable to every participant and
annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act
of 1989.
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
(Text of Section before amendment by P.A. 89-507)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position
in which services are expected to be rendered for at least
one school term:
(1) Any educational, administrative, professional
or other staff employed in the public common schools
included within this system in a position requiring
certification under the law governing the certification
of teachers;
(2) Any educational, administrative, professional
or other staff employed in any facility of the Department
of Children and Family Services, the Department of Mental
Health and Developmental Disabilities, or the Department
of Rehabilitation Services, in a position requiring
certification under the law governing the certification
of teachers, and any person who (i) works in such a
position for the Department of Corrections, (ii) was a
member of this System on May 31, 1987, and (iii) did not
elect to become a member of the State Employees'
Retirement System pursuant to Section 14-108.2 of this
Code;
(3) Any regional superintendent of schools,
assistant regional superintendent of schools, State
Superintendent of Education; any person employed by the
State Board of Education as an executive; any executive
of the boards engaged in the service of public common
school education in school districts covered under this
system of which the State Superintendent of Education is
an ex-officio member;
(4) Any employee of a school board association
operating in compliance with Article 23 of the School
Code who is certificated under the law governing the
certification of teachers;
(5) Any person employed by the retirement system as
an executive, and any person employed by the retirement
system who is certificated under the law governing the
certification of teachers;
(6) Any educational, administrative, professional
or other staff employed by and under the supervision and
control of a regional superintendent of schools, provided
such employment position requires the person to be
certificated under the law governing the certification of
teachers and is in an educational program serving 2 or
more districts in accordance with a joint agreement
authorized by the School Code or by federal legislation;
(7) Any educational, administrative, professional
or other staff employed in an educational program
serving 2 or more school districts in accordance with a
joint agreement authorized by the School Code or by
federal legislation and in a position requiring
certification under the laws governing the certification
of teachers;
(8) Any officer or employee of a statewide teacher
organization or officer of a national teacher
organization who is certified under the law governing
certification of teachers, provided: (i) the individual
had previously established creditable service under this
Article, (ii) the individual files with the system, on or
before January 1, 1990, an irrevocable election to become
a member, and (iii) the individual does not receive
credit for such service under any other Article of this
Code;
(9) Any educational, administrative, professional,
or other staff employed in a charter school operating in
compliance with the Charter Schools Law who is
certificated under the law governing the certification of
teachers.
An annuitant receiving a retirement annuity under this
Article or under Article 17 of this Code who is temporarily
employed by a board of education or other employer not
exceeding that permitted under Section 16-118 is not a
"teacher" for purposes of this Article. A person who has
received a single-sum retirement benefit under Section
16-136.4 of this Article is not a "teacher" for purposes of
this Article.
(Source: P.A. 89-450, eff. 4-10-96.)
(Text of Section after amendment by P.A. 89-507)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position
in which services are expected to be rendered for at least
one school term:
(1) Any educational, administrative, professional
or other staff employed in the public common schools
included within this system in a position requiring
certification under the law governing the certification
of teachers;
(2) Any educational, administrative, professional
or other staff employed in any facility of the Department
of Children and Family Services or the Department of
Human Services, in a position requiring certification
under the law governing the certification of teachers,
and any person who (i) works in such a position for the
Department of Corrections, (ii) was a member of this
System on May 31, 1987, and (iii) did not elect to become
a member of the State Employees' Retirement System
pursuant to Section 14-108.2 of this Code;
(3) Any regional superintendent of schools,
assistant regional superintendent of schools, State
Superintendent of Education; any person employed by the
State Board of Education as an executive; any executive
of the boards engaged in the service of public common
school education in school districts covered under this
system of which the State Superintendent of Education is
an ex-officio member;
(4) Any employee of a school board association
operating in compliance with Article 23 of the School
Code who is certificated under the law governing the
certification of teachers;
(5) Any person employed by the retirement system as
an executive, and any person employed by the retirement
system who is certificated under the law governing the
certification of teachers;
(6) Any educational, administrative, professional
or other staff employed by and under the supervision and
control of a regional superintendent of schools, provided
such employment position requires the person to be
certificated under the law governing the certification of
teachers and is in an educational program serving 2 or
more districts in accordance with a joint agreement
authorized by the School Code or by federal legislation;
(7) Any educational, administrative, professional
or other staff employed in an educational program
serving 2 or more school districts in accordance with a
joint agreement authorized by the School Code or by
federal legislation and in a position requiring
certification under the laws governing the certification
of teachers;
(8) Any officer or employee of a statewide teacher
organization or officer of a national teacher
organization who is certified under the law governing
certification of teachers, provided: (i) the individual
had previously established creditable service under this
Article, (ii) the individual files with the system, on or
before January 1, 1990, an irrevocable election to become
a member, and (iii) the individual does not receive
credit for such service under any other Article of this
Code;
(9) Any educational, administrative, professional,
or other staff employed in a charter school operating in
compliance with the Charter Schools Law who is
certificated under the law governing the certification of
teachers.
An annuitant receiving a retirement annuity under this
Article or under Article 17 of this Code who is temporarily
employed by a board of education or other employer not
exceeding that permitted under Section 16-118 is not a
"teacher" for purposes of this Article. A person who has
received a single-sum retirement benefit under Section
16-136.4 of this Article is not a "teacher" for purposes of
this Article.
(Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97;
revised 10-3-96.)
(40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
Sec. 16-140. Survivors' benefits - definitions. For the
purpose of Sections 16-138 through 16-143.2, the following
terms shall have the following meanings, unless the context
otherwise requires:
(1) "Average salary": the average salary for the highest
4 consecutive years within the last 10 years of creditable
service immediately preceding date of death or retirement,
whichever is applicable, or the average salary for the total
creditable service if service is less than 4 years.
(2) "Member": any teacher included in the membership of
the system. However, a teacher who becomes an annuitant of
the system or a teacher whose services terminate after 20
years of service from any cause other than retirement is
considered a member, subject to the conditions and
limitations stated in this Article.
(3) "Dependent beneficiary": (A) a surviving spouse of a
member or annuitant who was married to the member or
annuitant for the 12 month period immediately preceding and
on the date of death of such member or annuitant, except
where a child is born of such marriage, in which case the
qualifying period shall not be applicable; (A-1) a surviving
spouse of a member or annuitant who (i) was married to the
member or annuitant on the date of the member or annuitant's
death, (ii) was married to the member or annuitant for a
period of at least 12 months (but not necessarily the 12
months immediately preceding the member or annuitant's
death), (iii) first applied for a survivor's benefit before
January 1, 1994, and (iv) has not received a benefit under
subsection (a) of Section 16-141 or paragraph (1) of Section
16-142; (B) an eligible child of a member or annuitant; and
(C) a dependent parent.
Unless otherwise designated by the member, eligibility
for benefits shall be in the order named, except that a
dependent parent shall be eligible only if there is no other
dependent beneficiary. Any benefit to be received by or paid
to a dependent beneficiary to be determined under this
paragraph as provided in Sections 16-141 and 16-142 may be
received by or paid to a trust established for such dependent
beneficiary if such dependent beneficiary is living at the
time such benefit would be received by or paid to such trust.
(4) "Eligible child": an unmarried natural or adopted
child of the member or annuitant under age 18 (age 22 if a
full-time student). An unmarried natural or adopted child,
regardless of age, who is dependent by reason of a physical
or mental disability, except any such child receiving
benefits under Article III of the Illinois Public Aid Code,
is eligible for so long as such physical or mental disability
continues. An adopted child, however, is eligible only if
the proceedings for adoption were finalized while the child
was a minor.
For purposes of this subsection, "disability" means an
inability to engage in any substantial gainful activity by
reason of any medically determinable physical or mental
impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period
of not less than 12 months.
The changes made to this Section by this amendatory Act
of 1997, relating to benefits for certain unmarried children
who are full-time students under age 22, apply without regard
to whether the deceased member was in service on or after the
effective date of this amendatory Act of 1997. These changes
do not authorize the repayment of a refund or a re-election
of benefits, and any benefit or increase in benefits
resulting from these changes is not payable retroactively for
any period before the effective date of this amendatory Act
of 1997.
(5) "Dependent parent": a parent who was receiving at
least 1/2 of his or her support from a member or annuitant
for the 12-month period immediately preceding and on the date
of such member's or annuitant's death, provided however, that
such dependent status terminates upon a member's acceptance
of a refund for survivor benefit contributions as provided
under Section 16-142.
(6) "Non-dependent beneficiary": any person,
organization or other entity designated by the member who
does not qualify as a dependent beneficiary.
(7) "In service": the condition of a member being in
receipt of salary as a teacher at any time within 12 months
immediately before his or her death, being on leave of
absence for which the member, upon return to teaching, would
be eligible to purchase service credit under subsection
(b)(5) of Section 16-127, or being in receipt of a disability
or occupational disability benefit. This term does not
include any annuitant or member who previously accepted a
refund of survivor benefit contributions under paragraph (1)
of Section 16-142 unless the conditions specified in
subsection (b) of Section 16-143.2 are met.
(Source: P.A. 89-430, eff. 12-15-95.)
(40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
Sec. 16-143. Survivors' benefits - other conditions and
limitations. The benefits provided under Sections 16-141 and
16-142, shall be subject to the following further conditions
and limitations:
(1) The period during which a member was in receipt of a
disability or occupational disability benefit shall be
considered as creditable service at the annual salary rate on
which the member last made contributions.
(2) All service prior to July 24, 1959, for which
creditable service is granted towards a retirement annuity
shall be considered as creditable service.
(3) No benefits shall be payable unless a member, or a
disabled member, returning to service, has made contributions
to the system for at least one month after July 24, 1959,
except that an annuitant must have contributed to the system
for at least 1 year of creditable service after July 24,
1959.
(4) Creditable service under the State Employees'
Retirement System of Illinois, the State Universities
Retirement System and the Public School Teachers' Pension and
Retirement Fund of Chicago shall be considered in determining
whether the member has met the creditable service
requirement.
(5) If an eligible beneficiary qualifies for a
survivors' benefit because of pension credits established by
the participant or annuitant in another system covered by
Article 20, and the combined survivors' benefits exceed the
highest survivors' benefit payable by either system based
upon the combined pension credits, the survivors' benefit
payable by this system shall be reduced to that amount which
when added to the survivors' benefit payable by the other
system would equal this highest survivors' benefit. If the
other system has a similar provision for adjustment of the
survivors' benefit, the respective proportional survivors'
benefits shall be reduced proportionately according to the
ratio which the amount of each proportional survivors'
benefit bears to the aggregate of all proportional survivors'
benefits. If a survivors' benefit is payable by another
system covered by Article 20, and the survivor elects to
waive the monthly survivors' benefit and accept a lump sum
payment or death benefit in lieu of the monthly survivors'
benefit, this system shall, for the purpose of adjusting the
monthly survivors' benefit under this paragraph, assume that
the survivor had been entitled to a monthly survivors'
benefit which, in accordance with actuarial tables of this
system, is the actuarial equivalent of the amount of the lump
sum payment or death benefit.
(6) Remarriage of a surviving spouse prior to attainment
of age 55 shall terminate his or her survivors' benefits.
(7) The benefits payable to an eligible child shall
terminate when the eligible child marries, dies, or attains
age 18 (age 22 if a full-time student); except that benefits
payable to a dependent disabled eligible child shall
terminate only when the eligible child dies or ceases to be
disabled.
(Source: P.A. 86-1488.)
(40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
Sec. 16-151. Refund. Upon termination of employment as a
teacher for any cause other than death or retirement, a
member shall be paid the following amount upon demand made at
least not previous to 4 months after ceasing to teach:
(1) from the Members' Contribution Reserve, the
actual total contributions paid by or on behalf of the
member for membership service which have not been
previously refunded and which are then credited to the
member's individual account in the Members' Contribution
Reserve, without interest thereon, and
(2) from the Employer's Contribution Reserve, the
actual contributions not previously refunded, paid by or
on behalf of the member for prior service and towards the
cost of the automatic annual increase in retirement
annuity as provided under Section 16-152, without
interest thereon.
Any such amounts may be paid to the member either in one
sum or, at the election of the board, in 4 quarterly
payments.
Contributions credited to a member for periods of
disability as provided in Sections 16-149 and 16-149.1 are
not refundable.
Upon acceptance of a refund, all accrued rights and
credits in the System are forfeited and may be reinstated
only if the refund is repaid together with interest from the
date of the refund to the date of repayment at the following
rates compounded annually: for periods prior to July 1,
1965, regular interest; for periods from July 1, 1965 to June
30, 1977, 4% per year; for periods on and after July 1, 1977,
regular interest. Repayment shall be permitted upon return to
membership; however, service credit previously forfeited by a
refund and subsequently reinstated may not be used as a basis
for the payment of benefits, other than a refund of
contributions, prior to the completion of one year of
creditable service following the refund, except when
repayment is permitted under the provisions of the
"Retirement Systems Reciprocal Act" contained in Article 20.
(Source: P.A. 83-1440.)
(40 ILCS 5/16-152.1) (from Ch. 108 1/2, par. 16-152.1)
Sec. 16-152.1. Pickup Pick up of contributions.
(a) Each employer may pick up the member contributions
required under Section 16-152 for all salary earned after
December 31, 1981. If an employer decides not to pick up the
member contributions, the amount that would have been picked
up shall continue to be deducted from salary. If
contributions are picked up, they shall be treated as
employer contributions in determining tax treatment under the
United States Internal Revenue Code. The employer shall pay
these member contributions from the same source of funds
which is used in paying salary to the member. The employer
may pick up these contributions by a reduction in the cash
salary of the member or by an offset against a future salary
increase or by a combination of a reduction in salary and
offset against a future salary increase. If member
contributions are picked up, they shall be treated for all
purposes of this Article 16 in the same manner as member
contributions made prior to the date the pick up began.
(b) The State Board of Education shall pick up the
contributions of regional superintendents required under
Section 16-152 for all salary earned for the 1982 calendar
year and thereafter.
(c) Effective July 1, 1983, each employer shall pick up
the member contributions required under Section 16-152 for
all salary earned after such date. Contributions so picked
up shall be treated as employer contributions in determining
tax treatment under the United States Internal Revenue Code.
The employer shall pay these member contributions from the
same source of funds which is used in paying salary to the
member. The employer may pick up these contributions by a
reduction in the cash salary of the member 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. Member contributions so picked up shall be treated
for all purposes of this Article 16 in the same manner as
member contributions made prior to the date the pick up
began.
(d) Subject to the requirements of federal law and the
rules of the board, beginning July 1, 1998 a member who is
employed on a full-time basis may elect to have the employer
pick up optional contributions that the member has elected to
pay to the System, and the contributions so picked up shall
be treated as employer contributions for the purposes of
determining federal tax treatment. The election to have
optional contributions picked up is irrevocable. At the time
of making the election, the member shall execute a binding,
irrevocable payroll deduction authorization. Upon receiving
notice of the election, the employer shall pick up the
contributions by a reduction in the cash salary of the member
and shall pay the contributions from the same source of funds
that is used to pay earnings to the member.
(Source: P.A. 83-1440.)
(40 ILCS 5/16-154) (from Ch. 108 1/2, par. 16-154)
Sec. 16-154. Deductions from salary.
(a) Required contributions. The governing body of each
school district and of each employing unit State institution
coming under this System, and the State Comptroller or other
State officer certifying payroll vouchers, including payments
of salary or wages to teachers, shall pick up or retain on
every pay day the contributions required under Section 16-152
of each member. Each governing body or officer shall furnish
a statement to each member showing the amount picked up or
retained from his or her salary.
(b) Optional contributions. For the purposes of this
Section and Section 16-152.1, "optional contributions" means
contributions that a member elects to make in order to
establish optional service credit or to reinstate creditable
service that was terminated upon payment of a refund.
The governing body of each school district and of each
employing unit coming under this System and the State
Comptroller or other State officer certifying payroll
vouchers shall take the steps necessary to comply with the
requirements of Section 414(h)(2) of the Internal Revenue
Code of 1986, as amended, to permit the pickup of optional
contributions on a tax-deferred basis. Beginning July 1,
1998, a school district or other employing unit shall not
withhold optional contributions from the salary of any member
on an after-tax basis.
(Source: P.A. 83-1440.)
(40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
Sec. 16-155. Report to system and payment of deductions.
(a) The governing body of each school district shall
make two deposits each month. The deposit for member
contributions for salary paid between the first and the
fifteenth of the month is due by the 25th of the month. The
deposit of member contributions for salary paid between the
sixteenth and last day of the month is due by the 10th of the
following month. All required contributions for salary
earned during a school term are due by July 10 next following
the close of such school term.
The governing body of each State institution coming under
this retirement system, the State Comptroller or other State
officer certifying payroll vouchers including payments of
salary or wages to teachers, and any other employer of
teachers, shall, monthly, forward to the secretary of the
retirement system the member contributions required under
this Article.
Each employer specified above shall, prior to August 15
of each year, forward to the System a detailed statement,
verified in all cases of school districts by the secretary or
clerk of the district, of the amounts so contributed since
the period covered by the last previous annual statement,
together with required contributions not yet forwarded, such
payments being payable to the System.
The board may prescribe rules governing the form,
content, investigation, control, and supervision of such
statements. The governing body of each school district
shall, at the same time, send a copy of the statement to the
regional superintendent of schools for the region in which
the district under its control is located. If no teacher in
a school district comes under the provisions of this Article,
the governing body of the district shall so state under the
oath of its secretary to this system, and shall at the same
time forward a copy of the statement to the regional
superintendent of schools.
(b) If the governing body of an employer that is not a
State agency a school district fails to forward such required
contributions within the time permitted in subsection (a)
above, the System shall notify the employer district of an
additional amount due, equal to the greater of the following:
(1) an amount representing the interest lost by the system
due to late forwarding of contributions, calculated for the
number of days which the employer school district is late in
forwarding contributions at a rate of interest prescribed by
the board, based on its investment experience; or (2) $50.
(c) If the system, on August 15, is not in receipt of
the detailed statements required under this Section of any
school district or other employing unit, such school district
or other employing unit shall pay to the system an amount
equal to $250 for each day that elapses from August 15, until
the day such statement is filed with the system.
(Source: P.A. 86-273.)
(40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
Sec. 16-158.1. Actions to enforce payments by school
districts and other employing units. Any school district or
other employing unit failing to transmit to the System
contributions required of it under this Article or
contributions required of teachers, for more than 90 days
after such contributions are due is subject to the following:
after giving notice to the district or other unit, the System
may certify to the State Comptroller or the Regional
Superintendent of Schools the amounts of such delinquent
payments and the State Comptroller or the Regional
Superintendent of Schools shall deduct the amounts so
certified or any part thereof from any grants of State funds
to be remitted to the school district or other employing unit
involved and shall pay the amount so deducted to the System.
If State funds from which such deductions may be made are not
available, the System may proceed against the school district
or other employing unit to recover the amounts of such
delinquent payments in the appropriate circuit court.
The System may provide for an audit of the records of a
school district or other employing unit as may be required to
establish the amounts of required contributions. The school
district or other employing unit shall make its records
available to the System for the purpose of such audit. The
cost of such audit shall be added to the amount of the
delinquent payments and shall be recovered by the System from
the school district or other employing unit at the same time
and in the same manner as the delinquent payments are
recovered.
(Source: P.A. 85-1008.)
(40 ILCS 5/16-169.1 new)
Sec. 16-169.1. Testimony and the production of records.
The secretary of the Board shall have the power to issue
subpoenas to compel the attendance of witnesses and the
production of documents and records, including law
enforcement records maintained by law enforcement agencies,
in conjunction with a disability claim, administrative review
proceeding, or felony forfeiture investigation. The fees of
witnesses for attendance and travel shall be the same as the
fees of witnesses before the circuit courts of this State and
shall be paid by the party seeking the subpoena. The Board
may apply to any circuit court in the State for an order
requiring compliance with a subpoena issued under this
Section. Subpoenas issued under this Section shall be
subject to applicable provisions of the Code of Civil
Procedure.
(40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
Sec. 16-179. To be trustee of reserves and to invest
funds. To be the trustee of the reserves created under this
Article, and to invest and reinvest such reserves, subject to
the requirements and restrictions set forth in Sections
1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
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 "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as
now or hereafter amended. The limitations set forth in such
Section 6 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 such
agreements and to execute such documents as it determines to
be necessary to complete any investment transaction.
All investments shall be clearly held and accounted for
to indicate ownership by the system. The board may direct
the registration of securities or the holding in interests in
real property in the name of the system or in the name of a
nominee created for the express purpose of registration of
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
system 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. 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 retirement
system in one or more commingled investment accounts shall be
the cost of its units of participation in such commingled
account or accounts.
(Source: P.A. 86-272.)
(40 ILCS 5/16-181.3 new)
Sec. 16-181.3. To prescribe the manner of payment. To
prescribe by rule the manner of repaying refunds and
purchasing the various optional service credits permitted
under this Article. The rules may prescribe the conditions
under which installment payments or partial payments may be
accepted and may specify the method of computing any interest
due.
(40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
Sec. 16-185. Employer's contribution reserve.
(a) The Employer's Contribution Reserve shall serve as a
clearing account for income and expenses of the System as
well as transfers to and from the other reserve accounts
established under this Article and adjustments thereto.
(b) This reserve shall be credited with:
(1) All amounts contributed by the State, except
those credited to other reserve accounts as provided in
this Article.
(2) The total member and employer contributions
except those required by other reserve accounts.
(3) The total income from invested assets of the
System, and other miscellaneous income.
(4) The interest portion of the accumulated
contributions of members granted refunds.
(5) Contributions made by annuitants to qualify for
automatic annual increases in annuity, except those
required by other reserve accounts.
(c) This reserve shall be charged with:
(1) All amounts necessary to be transferred to the
Members' Contribution Reserve.
(2) All retirement annuity, single-sum retirement
benefit and disability retirement annuity payments,
including automatic annual increases in annuities, except
as provided by other reserve accounts.
(3) All amounts necessary to be refunded to
withdrawing members except as provided by the Members'
Contribution Reserve.
(4) All benefits paid to temporarily or
accidentally disabled members of this System, and all
amounts credited to the accounts of such disabled members
in lieu of contributions.
(5) All amounts payable as death benefits except as
provided by the Members' Contribution Reserve.
(6) All amounts necessary for the payment of costs
for the health insurance program as provided under this
Article.
(7) All survivor benefit contributions refunded to
an annuitant as provided under Section 16-143.2.
(8) All amounts paid in accordance with Section
16-131.1 except as provided by the Members' Contribution
Reserve.
(9) Interest to be credited to other reserve
accounts as specified in this Article.
(10) Recognition of unrealized gains or losses in
market value, upon adoption of generally accepted
accounting principles that allow for such recognition.
(Source: P.A. 88-593, eff. 8-22-94; 89-235, eff. 8-4-95.)
(40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
Sec. 16-187. Custodian of fund - warrants and vouchers -
audits. (a) The State Treasurer is ex-officio custodian of
the funds of the retirement system. He or she may process
payments from the funds of the system for the purposes herein
specified upon warrants or direct deposit transmittals of the
State Comptroller. Commencing January 1, 1987, the State
Treasurer shall credit interest, at current rates, for any
monies directly held. Such interest shall be calculated
using an average daily cash basis. He or she shall be liable
on the Treasurer's official bond for the proper performance
of duties and be held accountable for all cash and securities
in his or her custody. He or she shall keep books and
accounts in the manner prescribed by the board, and they
shall always be subject to the inspection of the board or any
member thereof.
(b) The State Comptroller may draw warrants or prepare
direct deposit transmittals payable from the fund upon the
State Treasurer for the purposes herein provided upon the
presentation of vouchers approved by the president and the
secretary of the board. The board shall file with the State
Comptroller an attested copy of a resolution designating such
persons as his authority for making payments upon such
vouchers.
(c) At the end of each fiscal year, the board shall have
the accounts and records of the system audited by a person
authorized to practice public accounting under the laws of
this state selected by the Auditor General. Copies of all
audits performed shall be filed with the State Board of
Education and the Auditor General.
(Source: P.A. 85-1008.)
(40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
Sec. 17-116.1. Early retirement without discount. A
member retiring after June 1, 1980 and before June 30, 2005
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.
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.
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.
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.
Notwithstanding Section 17-157, the extension of the
deadline for early retirement without discount under this
Section effected by this amendatory Act of 1997 also applies
to persons who withdrew from service on or after June 30,
1995 and before the effective date of this amendatory Act of
1997. Any such person who qualifies for early retirement
without discount under this Section, applies to the Fund
within 90 days after the effective date of this amendatory
Act of 1997, and pays the required employee contribution may
have his or her retirement pension recalculated in accordance
with this Section; the resulting increase shall be effective
retroactively to the starting date of the retirement pension.
(Source: P.A. 86-272.)
(40 ILCS 5/17-134.1 new)
Sec. 17-134.1. Labor organization employees.
(a) A former teacher who is employed by a teacher or
labor organization and is not eligible to participate under
subdivision (4) of Section 17-134 because he or she is not on
a special leave of absence may elect to participate in the
Fund for the duration of that employment by so notifying the
Fund in writing. Participation shall be subject to the same
conditions as are applicable to persons participating under
that subdivision (4), and service credit shall be contingent
upon the required contributions being received by the Fund.
(b) A person who participates in the Fund under
subsection (a) may establish service credit for periods of
such employment that took place before beginning
participation under this Section by submitting a written
application to the Fund. Credit shall be granted upon
payment to the Fund of an amount to be determined by the
Fund, equal to (i) the employee contributions that would have
been paid if the person had participated under subdivision
(4) of Section 17-134 during the period for which service
credit is to be established, based on the actual salary
received, plus (ii) the employer's normal cost associated
with that service credit, plus (iii) interest on items (i)
and (ii) at the rate of 6% per year, compounded annually,
from the date of the service established to the date of
payment. Service credit under this subsection shall not be
granted until the required contribution has been paid in
full; the contribution may be paid at any time before
retirement.
(c) A person who participates in the Fund under
subsection (a) may reestablish any service credits previously
forfeited by acceptance of a refund by paying to the Fund the
amount of the refund plus interest thereon at the rate of 5%
per annum, compounded annually, from the date of the refund
to the date of payment.
(d) Rollover contributions from other retirement plans
qualified under the Internal Revenue Code of 1986 may be used
to make the payments required under subsections (b) and (c).
(e) No service credit may be established under this
Section for any period of employment for which the person
receives service credit under any other provision of this
Code.
(40 ILCS 5/18-112.6 new)
Sec. 18-112.6. Service credit for member of educational
board. Until July 1, 1998, an active participant in this
System who has at least 6 years of service as a judge may
establish up to 2 years of service credit in this System for
a period during which the participant held elective office as
a member of a board of education in this State or a member of
the board of trustees of a community college district in this
State, by applying to the Board in writing and paying to the
System an amount equal to (1) employee contributions based on
the rate in effect for a judge on the date of becoming a
participant in this System and the salary received by the
judge on that date, plus (2) the employer's share of the
normal cost of the benefits being established, plus (3)
interest thereon at the prescribed rate, compounded annually,
from the date of membership to the date of payment. However,
credit may not be established under this Section for any
period for which the judge has received credit under any
other pension fund or retirement system subject to this Code,
unless that credit has been terminated.
(40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
Sec. 18-133.1. Pickup Pick up of contributions.
(a) Each employer may pick up the participant
contributions required under Section 18-133 for all salary
earned after December 31, 1981. If an employer decides not
to pick up the contributions, the employee contributions
shall continue to be deducted from salary. If contributions
are picked up they shall be treated as employer contributions
in determining tax treatment under the United States Internal
Revenue Code. However, the employer shall continue to
withhold Federal and State income taxes based upon these
contributions until the Internal Revenue Service or the
Federal courts rule that pursuant to Section 414(h) of 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 participant contributions from
the same source of funds which is used in paying earnings to
the participant. The employer may pick up these
contributions by a reduction in the cash salary of the
participant or by an offset against a future salary increase
or by a combination of a reduction in salary and offset
against a future salary increase. If participant
contributions are picked up they shall be treated for all
purposes of this Article as participant contributions were
considered prior to the time they were picked up.
(b) Subject to the requirements of federal law, a
participant may elect to have the employer pick up optional
contributions that the participant has elected to pay to the
System, and the contributions so picked up shall be treated
as employer contributions for the purposes of determining
federal tax treatment. The employer shall pick up the
contributions by a reduction in the cash salary of the
participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise.
(Source: P.A. 83-1440.)
(40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
Sec. 21-103. Political subdivision - election of
coverage.
(a) Any political subdivision other than a school
district and other than a political subdivision which is
participating in the Illinois Municipal Retirement Fund under
Article 7 of this Code may, by resolution of the governing
body (in the case of a township, at an annual town meeting or
at a special town meeting called for that purpose), or by
referendum, elect to have its employees covered by the Social
Security Act.
Whenever a petition requesting Social Security coverage
for employees, signed by not less than 5% of the legal voters
of the political subdivision, is presented to the governing
body, such governing body shall cause such proposition to be
certified to the proper election officials who shall submit
the proposition to the voters at the next appropriate
election in accordance with the general election law, or in
the case of a township at the next annual town meeting if the
petition is received more than 15 and less than 60 days
before the annual town meeting, or else at a special town
meeting called for that purpose. In the territory of the
political subdivision every elector may vote upon the
proposition stated in the petition. Such proposition shall
be in substantially the following form:
-------------------------------------------------------------
Shall....(political subdivision)
enter into a coverage agreement with
the Social Security Division of YES
the State Employees' Retirement ----------------------
System for extension of Federal Social NO
Security coverage to employees
of....(political subdivision)?
-------------------------------------------------------------
If a majority of all of the votes cast upon the
proposition is in favor thereof, or if the governing body has
adopted a resolution or ordinance providing for coverage of
its employees, the governing body shall execute the coverage
agreement provided by the State Agency and submit such
coverage agreement to the State Agency for approval. The
coverage agreement shall be approved by the State Agency if
it meets the requirements of subsection (b).
(b) Each coverage agreement of a political subdivision
and any amendment thereof shall be approved by the State
Agency if it finds that such coverage agreement, or such
coverage agreement as amended, is in conformity with such
requirements as are provided in the regulations of the State
Agency, except that no such coverage agreement shall be
approved unless:
(1) it is in conformity with the requirements of
the Social Security Act and with the Federal-State
Agreement entered into under this Article;
(2) it provides that all services which constitute
employment and are performed in the employ of the
political subdivision by any employees thereof shall be
covered by the coverage agreement, except that such
agreement may, if the political subdivision so requests,
exclude all services in one or more classes of elective
positions, or positions the compensation for which is on
a fee basis;
(3) it provides for such methods of administration
of the coverage agreement by the political subdivision as
are found by the State Agency to be necessary for the
proper and efficient administration of the coverage
agreement; and
(4) it provides for an effective date of coverage
not earlier than the first day of the fifth calendar year
preceding the year in which the resulting modification of
the Federal-State Agreement is agreed to by the Secretary
and the State.
(c) In addition to the requirements in subsection (b),
no coverage agreement which provides for an effective date of
coverage prior to January 1, 1987 shall be approved unless:
(1) it specifies the sources from which the funds
required of it by this Article are expected to be
derived, and contains reasonable assurance that such
sources will be adequate for such purpose;
(2) it contains a promise to deliver the proper
funds to the State Agency on or before the date requested
by the State Agency;
(3) it specifies some officer to act as custodian
of all funds collected and to be responsible to the State
Agency for the delivery of such funds;
(4) it provides that the political subdivision
shall pay into the Social Security Contribution Fund
contributions on covered wages at such times as the State
Agency may by regulations prescribe, in the amounts and
at the rates provided by this Article; and
(5) it provides that the political subdivision will
make such reports as the State Agency may from time to
time require, and comply with such provisions as the
State Agency or the Secretary may from time to time find
necessary.
(Source: P.A. 85-442.)
(40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
Sec. 21-109. Payment of Contributions.
(a) Absolute coverage group: Each political subdivision
which has established Social Security coverage for its
employees under this Article shall pay into the Social
Security Contribution Fund contributions on covered wages
paid prior to January 1, 1987 in the amounts and at the rates
prescribed by subchapters A and B of the Federal Insurance
Contributions Act at the times prescribed in the regulations
of the State Agency. Taxes due on wages covered under the
Social Security Coverage Agreement paid after December 31,
1986 shall be paid by each political subdivision to the
Internal Revenue Service in the amounts and at the rates
specified in the Federal Insurance Contributions Act and at
the times prescribed in the regulations of the Internal
Revenue Service.
Every political subdivision required to make payments is
authorized in consideration of the employee's retention in,
or entry upon, employment to impose upon each of its
employees, as to services which are covered by the coverage
agreement, a contribution with respect to wages computed by
applying the rates of contribution prescribed by Subchapter A
of the Federal Insurance Contributions Act, and to deduct the
amount of such contribution from such employee's wages when
paid.
Failure to deduct such contribution shall not relieve the
employee or employer of liability therefor.
(b) Retirement system coverage group: As a condition of
its coverage agreement, the governing body or board of
trustees of any retirement system which has adopted Social
Security coverage for its members under this Article shall
assume responsibility to the State Agency for the compiling
of wage data, the collection of related contributions
prescribed by subchapters A and B of the Federal Insurance
Contributions Act, and the timely reporting and payment of
such items upon the wages of all covered employees paid prior
to January 1, 1987 in the manner and at the times prescribed
by the State Agency.
Coincident to the adoption of coverage, the governing
body or board of trustees of the retirement system shall
promulgate rules and regulations in conformity with federal
regulations, applicable to the State or local governmental
entities or to the agencies and employees participating
therein, to insure the correct application of coverage and
the timely and accurate reporting of wages and collection of
contributions.
In the event of failure by the retirement system or the
governmental entities or agencies participating therein to
comply with the timely reporting and payment requirements
imposed by this Section, the retirement system shall be
assessed any federal interest or late filing penalties
arising therefrom.
The contributions collected under this Section by any
retirement system which elects to adopt coverage shall be
remitted at such times as the State Agency shall prescribe
for deposit into the Social Security Contribution Fund.
The employees comprising the executive and administrative
staff of any retirement system which elects to adopt the
provisions of this Article shall have the contributions made
by the body employing them.
(c) If more or less than the correct amount of
contributions is paid to the State Agency, proper adjustment,
or refund without interest if adjustment is impractical,
shall be made in such manner and at such times as the State
Agency shall prescribe.
(Source: P.A. 85-442.)
(40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
Sec. 21-115. Special fund abolished; designation of
remittance agents.
(a) The Social Security Contribution Fund is abolished
at the close of business on June 30, 1997. Any balance then
remaining in that Fund shall be transferred to the Social
Security Administration Fund created under Section 21-109.1,
and any amounts thereafter designated for deposit into the
Social Security Contribution Fund shall instead be deposited
into the Social Security Administration Fund. There is
hereby established a special fund to be known as the Social
Security Contribution Fund. Such fund shall consist of and
there shall be deposited in such fund (1) all contributions,
interest, and penalties collected under this Article, except
as provided in subsection (f) of this Section, (2) all sums
recovered upon the bond of the custodian or otherwise for
losses sustained by the fund, (3) payments of Medicare taxes
in accordance with State Agency regulations, and (4) all
other moneys received for the fund from any other source. All
moneys in the fund shall be mingled and undivided. Subject to
the provisions of this Article, the State Agency is vested
with full power, authority and jurisdiction over the fund,
including all moneys and property or securities belonging
thereto, and may perform any and all acts whether or not
specifically designated, which are necessary to the
administration thereof.
(b) The Social Security Contribution Fund shall be
established and held separate and apart from any other funds
or moneys of the State of Illinois and shall be used and
administered exclusively for the purpose of this Article.
Withdrawals from such fund shall be made solely for the
following purposes:
(1) payment of amounts required to be paid to the
Secretary of the Treasury in relation to Social Security and
Medicare coverage,
(2) payment of refunds for overpayments which are not
otherwise adjustable,
(3) payment into the General Revenue Fund of the amount
by which penalties collected pursuant to Section 21-112 of
this Article exceed the federal interest charges for the
corresponding period,
(4) payment into the General Revenue Fund of the
necessary expenses collected for the performance of tax
audits for failure to pay contributions pursuant to Section
21-113 of this Article,
(5) pursuant to recovery of Social Security
contributions paid to the Secretary of the Treasury for the
period from January 1, 1979 to June 30, 1981 on sick pay
excluded from wages pursuant to Section 209(b) of the Social
Security Act, (i) payment of a fee to a private vendor,
selected by competitive bidding in accordance with The
Illinois Purchasing Act, for the performance of all necessary
administrative actions required to obtain and distribute such
recovery, the fee to be contingent upon the amount of the
recovery and determined by contract, (ii) payment to the
Secretary of the Treasury of State Social Security
contributions for nonpayroll earnings received by court
reporters between January 1, 1977 and December 31, 1986, and
(iii) refund to the General Revenue Fund of the remainder of
the employer's share of the contributions so recovered,
(6) payment of reasonable expenses incurred in locating
former State employees for the purpose of refunding the
employees' share of Social Security contributions refunded to
the State as a result of the State's actions requesting
refunds of contributions paid to the Secretary of the
Treasury on sick pay as noted in item (5) and on the amount
of voluntary salary reductions by State employees
participating in the State's cafeteria plan of fringe
benefits under Section 125 of the Internal Revenue Code,
(7) out of the employer's share of contributions
recovered as a result of the State's action to reduce
reported wages by the amount of voluntary salary reduction by
State employees participating in the State's cafeteria plan
of fringe benefits under Section 125 of the Internal Revenue
Code, (i) payment to the Secretary of the Treasury of State
Social Security contributions for nonpayroll earnings
received by court reporters between January 1, 1977 and
December 31, 1986, and (ii) payment of the remainder into the
General Revenue Fund, and
(8) payment into the Social Security Administration Fund
established by Section 21-109.1 of this Article to satisfy
the State's liability for Social Security and Medicare
contribution liability on wages paid after December 31, 1986,
and to dispose of any remaining balance in the Social
Security Contribution Fund not required to satisfy the
State's liability on wages paid prior to January 1, 1987.
(c) From the Social Security Contribution Fund the
custodian of the fund shall pay to the Secretary of the
Treasury such amounts at such times as may be directed by the
State Agency.
(d) The Treasurer of the State of Illinois shall be
ex-officio treasurer and custodian of the Social Security
Contribution Fund and shall administer such fund in
accordance with the provisions of this Article and the
directions of the State Agency, and shall pay all warrants of
the State Comptroller in accordance with the provisions of
this Section and with such regulations as the State Agency
may prescribe pursuant thereto.
(e) The Comptroller of the State of Illinois is
authorized and is directed to draw warrants upon the State
Treasurer payable from the Social Security Contribution Fund
for purposes provided for in this Article upon presentation
of vouchers approved by the State Agency.
(b) (f) The State Agency is authorized to designate any
retirement system which has adopted coverage under this
Article to act as remittance agent on behalf of the State
Agency and to make payment of the Social Security
contributions collected upon the wages of employees within
the retirement system coverage group directly to the
designated Federal Reserve Bank without the necessity of
deposit or clearance of such collections through the Social
Security Contribution Fund. Any retirement system so
designated as a remittance agent shall continue to be subject
to the regulations of the State Agency with respect to
coverage determinations, wage reporting, corrective
adjustments, and accountability for tax collections in the
same manner as any other covered entity.
(Source: P.A. 86-272.)
Section 25. The State Pension Funds Continuing
Appropriation Act is amended by changing Section 1.1 as
follows:
(40 ILCS 15/1.1)
Sec. 1.1. Appropriations to certain retirement systems.
(a) There is hereby appropriated from the General
Revenue Fund to the General Assembly Retirement System, on a
continuing monthly basis, the amount, if any, by which the
total available amount of all other appropriations to that
retirement system for the payment of State contributions is
less than the total amount of the vouchers for required State
contributions lawfully submitted by the retirement system for
that month under Section 2-134 of the Illinois Pension Code.
(b) There is hereby appropriated from the General
Revenue Fund to the State Universities Retirement System, on
a continuing monthly basis, the amount, if any, by which the
total available amount of all other appropriations to that
retirement system for the payment of State contributions,
including any deficiency in the required contributions of the
optional retirement program established under Section
15-158.2 of the Illinois Pension Code, is less than the total
amount of the vouchers for required State contributions
lawfully submitted by the retirement system for that month
under Section 15-165 of the Illinois Pension Code.
(c) There is hereby appropriated from the Common School
Fund to the Teachers' Retirement System of the State of
Illinois, on a continuing monthly basis, the amount, if any,
by which the total available amount of all other
appropriations to that retirement system for the payment of
State contributions is less than the total amount of the
vouchers for required State contributions lawfully submitted
by the retirement system for that month under Section 16-158
of the Illinois Pension Code.
(d) There is hereby appropriated from the General
Revenue Fund to the Judges Retirement System of Illinois, on
a continuing monthly basis, the amount, if any, by which the
total available amount of all other appropriations to that
retirement system for the payment of State contributions is
less than the total amount of the vouchers for required State
contributions lawfully submitted by the retirement system for
that month under Section 18-140 of the Illinois Pension Code.
(e) The continuing appropriations provided by this
Section shall first be available in State fiscal year 1996.
(Source: P.A. 88-593, eff. 8-22-94.)
Section 75. 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 80. 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 85. Effective date. This Act takes effect upon
becoming law.