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Public Act 92-0424
HB2367 Enrolled LRB9205287EGfg
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 7-132, 7-139, 7-146, 7-151, 7-152, 7-166,
7-172, 15-148, and 15-154 as follows:
(40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
Sec. 7-132. Municipalities, instrumentalities and
participating instrumentalities included and effective dates.
(A) Municipalities and their instrumentalities.
(a) The following described municipalities, but not
including any with more than 1,000,000 inhabitants, and the
instrumentalities thereof, shall be included within and be
subject to this Article beginning upon the effective dates
specified by the Board:
(1) Except as to the municipalities and
instrumentalities thereof specifically excluded under
this Article, every county shall be subject to this
Article, and all cities, villages and incorporated towns
having a population in excess of 5,000 inhabitants as
determined by the last preceding decennial or subsequent
federal census, shall be subject to this Article
following publication of the census by the Bureau of the
Census. Within 90 days after publication of the census,
the Board shall notify any municipality that has become
subject to this Article as a result of that census, and
shall provide information to the corporate authorities of
the municipality explaining the duties and consequences
of participation. The notification shall also include a
proposed date upon which participation by the
municipality will commence.
However, for any city, village or incorporated town
that attains a population over 5,000 inhabitants after
having provided social security coverage for its
employees under the Social Security Enabling Act,
participation under this Article shall not be mandatory
but may be elected in accordance with subparagraph (3) or
(4) of this paragraph (a), whichever is applicable.
(2) School districts, other than those specifically
excluded under this Article, shall be subject to this
Article, without election, with respect to all employees
thereof.
(3) Towns and all other bodies politic and
corporate which are formed by vote of, or are subject to
control by, the electors in towns and are located in
towns which are not participating municipalities on the
effective date of this Act, may become subject to this
Article by election pursuant to Section 7-132.1.
(4) Any other municipality (together with its
instrumentalities), other than those specifically
excluded from participation and those described in
paragraph (3) above, may elect to be included either by
referendum under Section 7-134 or by the adoption of a
resolution or ordinance by its governing body. A copy of
such resolution or ordinance duly authenticated and
certified by the clerk of the municipality or other
appropriate official of its governing body shall
constitute the required notice to the board of such
action.
(b) A municipality that is about to begin participation
shall submit to the Board an application to participate, in a
form acceptable to the Board, not later than 90 days prior to
the proposed effective date of participation. The Board
shall act upon the application within 90 days, and if it
finds that the application is in conformity with its
requirements and the requirements of this Article,
participation by the applicant shall commence on a date
acceptable to the municipality and specified by the Board,
but in no event more than one year from the date of
application.
(c) A participating municipality which succeeds to the
functions of a participating municipality which is dissolved
or terminates its existence shall assume and be transferred
the net accumulation balance in the municipality reserve and
the municipality account receivable balance of the terminated
municipality.
(d) In the case of a Veterans Assistance Commission
whose employees were being treated by the Fund on January 1,
1990 as employees of the county served by the Commission, the
Fund may continue to treat the employees of the Veterans
Assistance Commission as county employees for the purposes of
this Article, unless the Commission becomes a participating
instrumentality in accordance with subsection (B) of this
Section.
(B) Participating instrumentalities.
(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within and
be subject to this Article if:
(1) an application to participate, in a form
acceptable to the Board and adopted by a two-thirds vote
of the governing body, is presented to the Board not
later than 90 days prior to the proposed effective date;
and
(2) the Board finds that the application is in
conformity with its requirements, that the applicant has
reasonable expectation to continue as a political entity
for a period of at least 10 years and has the prospective
financial capacity to meet its current and future
obligations to the Fund, and that the actuarial soundness
of the Fund may be reasonably expected to be unimpaired
by approval of participation by the applicant.
The Board shall notify the applicant of its findings
within 90 days after receiving the application, and if the
Board approves the application, participation by the
applicant shall commence on the effective date specified by
the Board.
(b) The following participating instrumentalities, so
long as they meet the requirements of Section 7-108 and the
area served by them or within their jurisdiction is not
located entirely within a municipality having more than one
million inhabitants, may be included hereunder:
i. Township School District Trustees.
ii. Multiple County and Consolidated Health
Departments created under Division 5-25 of the Counties
Code or its predecessor law.
iii. Public Building Commissions created under the
Public Building Commission Act, and located in counties
of less than 1,000,000 inhabitants.
iv. A multitype, consolidated or cooperative
library system created under the Illinois Library System
Act. Any library system created under the Illinois
Library System Act that has one or more predecessors that
participated in the Fund may participate in the Fund upon
application. The Board shall establish procedures for
implementing the transfer of rights and obligations from
the predecessor system to the successor system.
v. Regional Planning Commissions created under
Division 5-14 of the Counties Code or its predecessor
law.
vi. Local Public Housing Authorities created under
the Housing Authorities Act, located in counties of less
than 1,000,000 inhabitants.
vii. Illinois Municipal League.
viii. Northeastern Illinois Metropolitan Area
Planning Commission.
ix. Southwestern Illinois Metropolitan Area
Planning Commission.
x. Illinois Association of Park Districts.
xi. Illinois Supervisors, County Commissioners and
Superintendents of Highways Association.
xii. Tri-City Regional Port District.
xiii. An association, or not-for-profit
corporation, membership in which is authorized under
Section 85-15 of the Township Code.
xiv. Drainage Districts operating under the
Illinois Drainage Code.
xv. Local mass transit districts created under the
Local Mass Transit District Act.
xvi. Soil and water conservation districts created
under the Soil and Water Conservation Districts Law.
xvii. Commissions created to provide water supply
or sewer services or both under Division 135 or Division
136 of Article 11 of the Illinois Municipal Code.
xviii. Public water districts created under the
Public Water District Act.
xix. Veterans Assistance Commissions established
under Section 9 of the Military Veterans Assistance Act
that serve counties with a population of less than
1,000,000.
xx. The governing body of an entity, other than a
vocational education cooperative, created under an
intergovernmental cooperative agreement established
between participating municipalities under the
Intergovernmental Cooperation Act, which by the terms of
the agreement is the employer of the persons performing
services under the agreement under the usual common law
rules determining the employer-employee relationship.
The governing body of such an intergovernmental
cooperative entity established prior to July 1, 1988 may
make participation retroactive to the effective date of
the agreement and, if so, the effective date of
participation shall be the date the required application
is filed with the fund. If any such entity is unable to
pay the required employer contributions to the fund, then
the participating municipalities shall make payment of
the required contributions and the payments shall be
allocated as provided in the agreement or, if not so
provided, equally among them.
xxi. The Illinois Municipal Electric Agency.
xxii. The Waukegan Port District.
xxiii. The Fox Waterway Agency created under the
Fox Waterway Agency Act.
xxiv. The Illinois Municipal Gas Agency.
xxv. The Kaskaskia Regional Port District.
xxvi. The Southwestern Illinois Development
Authority.
(c) The governing boards of special education joint
agreements created under Section 10-22.31 of the School Code
without designation of an administrative district shall be
included within and be subject to this Article as
participating instrumentalities when the joint agreement
becomes effective. However, the governing board of any such
special education joint agreement in effect before September
5, 1975 shall not be subject to this Article unless the joint
agreement is modified by the school districts to provide that
the governing board is subject to this Article, except as
otherwise provided by this Section.
The governing board of the Special Education District of
Lake County shall become subject to this Article as a
participating instrumentality on July 1, 1997.
Notwithstanding subdivision (a)1 of Section 7-139, on the
effective date of participation, employees of the governing
board of the Special Education District of Lake County shall
receive creditable service for their prior service with that
employer, up to a maximum of 5 years, without any employee
contribution. Employees may establish creditable service for
the remainder of their prior service with that employer, if
any, by applying in writing and paying 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 must be made before July 1, 1998; the
payment may be made at any time while the employee is still
in service. The employer may elect to make the required
contribution on behalf of the employee.
The governing board of a special education joint
agreement created under Section 10-22.31 of the School Code
for which an administrative district has been designated, if
there are employees of the cooperative educational entity who
are not employees of the administrative district, may elect
to participate in the Fund and be included within this
Article as a participating instrumentality, subject to such
application procedures and rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational
programs or projects created and administered under Section
3-15.14 of the School Code, whether or not the Boards act as
their own administrative district, shall be included within
and be subject to this Article as participating
instrumentalities when the agreement establishing the
cooperative or joint educational program or project becomes
effective.
The governing board of a special education joint
agreement entered into after June 30, 1984 and prior to
September 17, 1985 which provides for representation on the
governing board by less than all the participating districts
shall be included within and subject to this Article as a
participating instrumentality. Such participation shall be
effective as of the date the joint agreement becomes
effective.
The governing boards of educational service centers
established under Section 2-3.62 of the School Code shall be
included within and subject to this Article as participating
instrumentalities. The governing boards of vocational
education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State
Board of Education shall be included within and be subject to
this Article as participating instrumentalities. If any such
governing boards or boards of control are unable to pay the
required employer contributions to the fund, then the school
districts served by such boards shall make payment of
required contributions as provided in Section 7-172. The
payments shall be allocated among the several school
districts in proportion to the number of students in average
daily attendance for the last full school year for each
district in relation to the total number of students in
average attendance for such period for all districts served.
If such educational service centers, vocational education
cooperatives or cooperative or joint educational programs or
projects created and administered under Section 3-15.14 of
the School Code are dissolved, the assets and obligations
shall be distributed among the districts in the same
proportions unless otherwise provided.
(d) The governing boards of special recreation joint
agreements created under Section 8-10b of the Park District
Code, operating without designation of an administrative
district or an administrative municipality appointed to
administer the program operating under the authority of such
joint agreement shall be included within and be subject to
this Article as participating instrumentalities when the
joint agreement becomes effective. However, the governing
board of any such special recreation joint agreement in
effect before January 1, 1980 shall not be subject to this
Article unless the joint agreement is modified, by the
districts and municipalities which are parties to the
agreement, to provide that the governing board is subject to
this Article.
If the Board returns any employer and employee
contributions to any employer which erroneously submitted
such contributions on behalf of a special recreation joint
agreement, the Board shall include interest computed from the
end of each year to the date of payment, not compounded, at
the rate of 7% per annum.
(e) Each multi-township assessment district, the board
of trustees of which has adopted this Article by ordinance
prior to April 1, 1982, shall be a participating
instrumentality included within and subject to this Article
effective December 1, 1981. The contributions required under
Section 7-172 shall be included in the budget prepared under
and allocated in accordance with Section 2-30 of the Property
Tax Code.
(f) Beginning January 1, 1992, each prospective
participating municipality or participating instrumentality
shall pay to the Fund the cost, as determined by the Board,
of a study prepared by the Fund or its actuary, detailing the
prospective costs of participation in the Fund to be expected
by the municipality or instrumentality.
(Source: P.A. 89-162, eff. 7-19-95; 90-511, eff. 8-22-97.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the
amount of any annuity or benefit to which he or a beneficiary
is entitled, as follows:
1. For prior service: Each participating employee
who is an employee of a participating municipality or
participating instrumentality on the effective date shall
be granted creditable service, but no credits under
paragraph 2 of this subsection (a), for periods of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:
If the effective date of participation for the
participating municipality or participating
instrumentality is on or before January 1, 1998,
creditable service shall be granted for the entire period
of prior service with that employer without any employee
contribution.
If the effective date of participation for the
participating municipality or participating
instrumentality is after January 1, 1998, creditable
service shall be granted for the last 20% of the period
of prior service with that employer, but no more than 5
years, without any employee contribution. A
participating employee may establish creditable service
for the remainder of the period of prior service with
that employer by making an application in writing,
accompanied by payment of an employee contribution in an
amount determined by the Fund, based on the employee
contribution rates in effect at the time of application
for the creditable service and the employee's salary rate
on the effective date of participation for that employer,
plus interest at the effective rate from the date of the
prior service to the date of payment. Application for
this creditable service may be made at any time while the
employee is still in service.
Any person who has withdrawn from the service of a
participating municipality or participating
instrumentality prior to the effective date, who reenters
the service of the same municipality or participating
instrumentality after the effective date and becomes a
participating employee is entitled to creditable service
for prior service as otherwise provided in this
subdivision (a)(1) only if he or she renders 2 years of
service as a participating employee after the effective
date. Application for such service must be made while in
a participating status. The salary rate to be used in
the calculation of the required employee contribution, if
any, shall be the employee's salary rate at the time of
first reentering service with the employer after the
employer's effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from
him under Section 7-173, as of the date the
corresponding payment of earnings is payable to him.
b. Normal credits of amounts equal to each
payment of normal contributions received from him,
as of the date the corresponding payment of earnings
is payable to him, and normal contributions made for
the purpose of establishing out-of-state service
credits as permitted under the conditions set forth
in paragraph 6 of this subsection (a).
c. Municipality credits in an amount equal to
1.4 times the normal credits, except those
established by out-of-state service credits, as of
the date of computation of any benefit if these
credits would increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the
participating employee as of the date the
corresponding payment of earnings is payable, and
survivor contributions made for the purpose of
establishing out-of-state service credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the
period during which disability benefits are payable.
Normal and survivor credits, based upon the rate of
earnings applied for disability benefits, shall also be
granted if such credits would result in a higher benefit
to any such employee or his beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of
absence without pay under the following conditions:
a. An application for credits and creditable
service is submitted to the board while the employee
is in a status of active employment, 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 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 elected or appointed
official of a participating municipality county board
member may establish credit under this paragraph 7 for
more than 50 months of service as an official of that
municipality, a member of the county board if the excess
over 50 months is approved by resolution of the governing
body of the affected municipality county board filed with
the Fund before January 1, 2002 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 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. Terminated credits shall not be applied to
increase the benefits any remaining employee would otherwise
receive under this Article.
(Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
(40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
Sec. 7-146. Temporary disability benefits - Eligibility.
Temporary disability benefits shall be payable to
participating employees as hereinafter provided.
(a) The participating employee shall be considered
temporarily disabled if:
1. He is unable to perform the duties of any
position which might reasonably be assigned to him by his
employing municipality or instrumentality thereof or
participating instrumentality due to mental or physical
disability caused by bodily injury or disease, other than
as a result of self-inflicted injury or addiction to
narcotic drugs;
2. The Board has received written certifications
from at least one 1 licensed and practicing physician and
the governing body of the employing municipality or
instrumentality thereof or participating instrumentality
stating that the employee meets the conditions set forth
in subparagraph 1 of this paragraph (a).
(b) A temporary disability benefit shall be payable to a
temporarily disabled employee provided:
1. He:
(i) has at least one year of service
immediately preceding at the date the temporary
disability was incurred and has made contributions
to the fund for at least the number of months of
service normally required in his position during a
12-month period, or has at least 5 years of service
credit, the last year of which immediately precedes
such date; or
(ii) had qualified under clause (i) above, but
had an interruption in service with the same
participating municipality or participating
instrumentality of not more than 3 months in the 12
months preceding the date the temporary disability
was incurred and was not paid a separation benefit;
or
(iii) had qualified under clause (i) above,
but had an interruption after 20 or more years of
creditable service, was not paid a separation
benefit, and returned to service prior to the date
the disability was incurred.
Item (iii) of this subdivision shall apply to all
employees whose disabilities were incurred on or after
July 1, 1985, and any such employee who becomes eligible
for a disability benefit under item (iii) shall be
entitled to receive a lump sum payment of any accumulated
disability benefits which may accrue from the date the
disability was incurred until the effective date of this
amendatory Act of 1987.
Periods of qualified leave granted in compliance
with the federal Family and Medical Leave Act shall be
ignored for purposes of determining the number of
consecutive months of employment under this subdivision
(b)1.
2. He has been temporarily disabled for at least 30
days, except where a former temporary or permanent and
total disability has reoccurred within 6 months after the
employee has returned to service.
3. He is receiving no earnings from a participating
municipality or instrumentality thereof or participating
instrumentality, except as allowed under subsection (f)
of Section 7-152.
4. He has not refused to submit to a reasonable
physical examination by a physician appointed by the
Board.
5. His disability is not the result of a mental or
physical condition which existed on the earliest date of
service from which he has uninterrupted service,
including prior service, at the date of his disability,
provided that this limitation is not applicable if the
date of disability is after December 31, 2001, nor is it
shall not be applicable to a participating employee who:
(i) on the date of disability has 5 years of creditable
service, exclusive of creditable service for periods of
disability; or (ii) received no medical treatment for the
condition for the 3 years immediately prior to such
earliest date of service.
6. He is not separated from the service of the
participating municipality or instrumentality thereof or
participating instrumentality which employed him on the
date his temporary disability was incurred; for the
purposes of payment of temporary disability benefits, a
participating employee, whose employment relationship is
terminated by his employing municipality, shall be deemed
not to be separated from the service of his employing
municipality or participating instrumentality if he
continues disabled by the same condition and so long as
he is otherwise entitled to such disability benefit.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151)
Sec. 7-151. Total and permanent disability benefits -
Commencement and duration. Permanent disability benefits
shall be payable:
(a) As of the date temporary disability benefits are
exhausted;
(b) Once a month as of the end of each month;
(c) For less than a month in a fraction equal to that
created by making the number of days of disability in the
month the numerator and the number of the days in the month
the denominator;
(d) To the beneficiary of a deceased employee for the
unpaid amount accrued to the date of death;
(e) While total and permanent disability continues;
(f) For the period ending on the last day of the month
which is the later of the following:
1. the month that the participating employee attains the
age for a full Social Security old-age insurance benefit age
65;
2. the month which is 5 years after the month the
participating employee became disabled as provided in Section
7-146.
(Source: P.A. 86-272.)
(40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
Sec. 7-152. Disability benefits - Amount. The amount of
the monthly temporary and total and permanent disability
benefits shall be 50% of the participating employee's final
rate of earnings on the date disability was incurred, subject
to the following adjustments:
(a) If the participating employee has a reduced rate of
earnings at the time his employment ceases because of
disability, the rate of earnings shall be computed on the
basis of his last 12 month period of full-time employment.
(b) If the participating employee is eligible for a
disability benefit under the federal Social Security Act, the
amount of monthly disability benefits shall be reduced, but
not to less than $10 a month, by the amount he would be
eligible to receive as a disability benefit under the federal
Social Security Act, whether or not because of service as a
covered employee under this Article. The reduction shall be
effective as of the month the employee is eligible for Social
Security disability benefits. The Board may make such
reduction if it appears that the employee may be so eligible
pending determination of eligibility and make an appropriate
adjustment if necessary after such determination. If the
employee, because of his refusal to accept rehabilitation
services under the federal Rehabilitation Act of 1973 or the
federal Social Security Act, or because he is receiving
workers' compensation benefits, has his Social Security
benefits reduced or terminated, the disability benefit shall
be reduced as if the employee were receiving his full Social
Security disability benefit.
(c) If the employee (i) is over the age for a full
Social Security old-age insurance benefit age 65, (ii) was
not eligible for a Social Security disability benefit
immediately before reaching that age, age 65 and (iii) is
eligible for a full Social Security old-age insurance
benefit, then the amount of the monthly disability benefit
shall be reduced, but not to less than $10 a month, by the
amount of the old-age insurance benefit to which the employee
is entitled, whether or not the employee applies for the
Social Security old-age insurance benefit. This reduction
shall be made in the month after the month in which the
employee attains the age for a full Social Security old-age
insurance benefit age 65. However, if the employee was
receiving a Social Security disability benefit before
reaching the age for a full Social Security old-age insurance
benefit age 65, the disability benefits after that age age 65
shall be determined under subsection (b) of this Section.
(d) The amount of disability benefits shall not be
reduced by reason of any increase, other than one resulting
from a correction in the employee's wage records, in the
amount of disability or old-age insurance benefits under the
federal Social Security Act which takes effect after the
month of the initial reduction under paragraph (b) or (c) of
this Section.
(e) If the employee in any month receives compensation
from gainful employment which is more than 25% of the final
rate of earnings on which his disability benefits are based,
the temporary disability benefit payable for that month shall
be reduced by an amount equal to such excess.
(f) An employee who has been disabled for at least 30
days may return to work for the employer on a part-time basis
for a trial work period of up to one year, during which the
disability shall be deemed to continue. Service credit shall
continue to accrue and the disability benefit shall continue
to be paid during the trial work period, but the benefit
shall be reduced by the amount of earnings received by the
disabled employee. Return to service on a full-time basis
shall terminate the trial work period. The reduction under
this subsection (f) shall be in lieu of the reduction, if
any, required under subsection (e).
(g) Beginning January 1, 1988, every total and permanent
disability benefit shall be increased by 3% of the original
amount of the benefit, not compounded, on each January 1
following the later of (1) the date the total and permanent
disability benefit begins, or (2) the date the total and
permanent disability benefit would have begun if the employee
had been paid a temporary disability benefit for 30 months.
(Source: P.A. 87-740.)
(40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
Sec. 7-166. Separation benefits - Eligibility.
Separation benefits shall be payable as hereinafter set
forth:
1. Upon separation from the service of all
participating municipalities and instrumentalities
thereof and participating instrumentalities, any
participating employee who, on the date of application
for such benefit, is not entitled to a retirement annuity
shall be entitled to a separation benefit.;
2. Upon separation from the service of all
participating municipalities and instrumentalities
thereof and participating instrumentalities, any
participating employee who, on the date of application
for such benefit, is entitled to a retirement annuity of
less than $30 per month for life may elect to take a
separation benefit in lieu of the retirement annuity.
3. Upon separation from the service of all
participating municipalities and instrumentalities
thereof and participating instrumentalities, any
participating employee who, on the date of application
for such benefit, is entitled to a retirement annuity,
but wishes instead to use the amounts to his or her
credit in the Fund to purchase credit in another
retirement plan, may elect to take a separation benefit
in lieu of the retirement annuity.
(Source: P.A. 91-887, eff. 7-6-00.)
(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 that is allowable under
generally accepted accounting principles 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 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. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
Sec. 15-148. Survivors insurance benefits - General
provisions. The survivors annuity is payable monthly. Any
annuity due but unpaid upon the death of the annuitant, shall
be paid to the annuitant's estate.
A person who becomes entitled to more than one survivors
insurance benefit because of the death of 2 or more persons
shall receive only the largest of the benefits; except that
this limitation does not apply to a survivors insurance
beneficiary who is entitled to a survivor's annuity by reason
of a mental or physical disability.
A survivors insurance beneficiary or the personal
representative of the estate of a deceased survivors
insurance beneficiary or the personal representative of a
survivors insurance beneficiary who is under a legal
disability may waive the right to receive survivorship
benefits, provided written notice of the waiver is given by
the beneficiary or representative to the board within 6
months after the death of the participant or annuitant and
before any payment is made pursuant to an application filed
by such person.
(Source: P.A. 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) A person who elects, in accordance with the
requirements of Section 15-134.5, to participate in the
portable benefit package and who becomes a participating
employee under that retirement program upon the conclusion of
the one-year waiting period applicable to the portable
benefit package election shall have his or her refund
calculated in accordance with the provisions of subsection
(a-2).
(a-2) The refund payable to a participant described in
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
distribution 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. Notwithstanding Section 1-103.1 and the other
provisions of this Section, a person who was a participant in
the System from February 14, 1966 until March 13, 1981 may
restore credits previously forfeited by acceptance of a
refund, without returning to service, by applying in writing
and repaying to the System by July 1, 2002 the amount of the
refund plus interest at the effective rate calculated from
the date of the refund to the date of repayment.
(c) If a participant covered under the traditional
benefit package has made survivors insurance contributions,
but has no survivors insurance beneficiary upon retirement,
he or she shall be entitled to elect a refund of the
accumulated survivors insurance contributions, or to elect an
additional annuity the value of which is equal to the
accumulated survivors insurance contributions. This election
must be made prior to the date the person's retirement
annuity is approved by the Board of Trustees.
(d) A participant, upon application, is entitled to a
refund of his or her accumulated additional contributions
attributable to the additional contributions described in the
last sentence of subsection (c) of Section 15-157. 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 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, 4, or
5 of Section 15-136, or under Section 15-136.4, 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. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
90-766, eff. 8-14-98; 91-887 (Sections 10 and 25), eff.
7-6-00; revised 9-1-00.)
Section 90. The State Mandates Act is amended by adding
Section 8.25 as follows:
(30 ILCS 805/8.25 new)
Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 92nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 31, 2001.
Approved August 17, 2001.
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