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Public Act 92-0599
HB5168 Enrolled LRB9212225EGfg
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 10. The Illinois Pension Code is amended by
changing Sections 5-144, 5-167.5, 6-164.2, 8-110, 8-113,
8-120, 8-137, 8-138, 8-150.1, 8-158, 8-161, 8-164.1, 8-168,
8-171, 8-227, 8-230.7, 8-243.2, 9-121.15, 9-134, 9-134.3,
9-146.1, 9-148, 9-163, 9-179.3, 9-219, 11-125.8, 11-134,
11-134.1, 11-145.1, 11-153, 11-156, 11-160.1, 11-164, 11-167,
13-301, 13-302, 13-304, 13-502, 13-503, 14-105.7, 15-112,
17-106, 17-119.1, 17-121, 17-134, and 17-149 and adding
Sections 5-129.1, 5-233.1, 8-230.9, 8-230.10, 9-121.16,
9-134.4, 9-148.1, and 13-304.1 as follows:
(40 ILCS 5/5-129.1 new)
Sec. 5-129.1. Withdrawal at mandatory retirement age -
amount of annuity.
(a) In lieu of any annuity provided in the other
provisions of this Article, a policeman who is required to
withdraw from service due to attainment of mandatory
retirement age and has less than 20 years of service credit
may elect to receive an annuity equal to 30% of average
salary for the first 10 years of service plus 2% of average
salary for each completed year of service or fraction thereof
in excess of 10, but not to exceed a maximum of 48% of
average salary.
(b) For the purpose of this Section, "average salary"
means the average of the highest 4 consecutive years of
salary within the last 10 years of service, or such shorter
period as may be used to calculate a minimum retirement
annuity under Section 5-132.
(c) For the purpose of qualifying for the annual
increases provided in Section 5-167.1, a policeman whose
retirement annuity is calculated under this Section shall be
deemed to qualify for a minimum annuity.
(40 ILCS 5/5-144) (from Ch. 108 1/2, par. 5-144)
Sec. 5-144. Death from injury in the performance of acts
of duty; compensation annuity and supplemental annuity.
(a) Beginning January 1, 1986, and without regard to
whether or not the annuity in question began before that
date, if the annuity for the widow of a policeman whose
death, on or after January 1, 1940, results from injury
incurred in the performance of an act or acts of duty, is not
equal to the sum hereinafter stated, "compensation annuity"
equal to the difference between the annuity and an amount
equal to 75% of the policeman's salary attached to the
position he held by certification and appointment as a result
of competitive civil service examination that would
ordinarily have been paid to him as though he were in active
discharge of his duties shall be payable to the widow until
the policeman, had he lived, would have attained age 63. The
total amount of the widow's annuity and children's awards
payable to the family of such policeman shall not exceed the
amounts stated in Section 5-152.
The provisions of this Section, as amended by Public Act
84-1104, including the reference to the date upon which the
deceased policeman would have attained age 63, shall apply to
all widows of policemen whose death occurs on or after
January 1, 1940 due to injury incurred in the performance of
an act of duty, regardless of whether such death occurred
prior to September 17, 1969. For those widows of policemen
that died prior to September 17, 1969, who became eligible
for compensation annuity by the action of Public Act 84-1104,
such compensation annuity shall begin and be calculated from
January 1, 1986. The provisions of this amendatory Act of
1987 are intended to restate and clarify the intent of Public
Act 84-1104, and do not make any substantive change.
(b) Upon termination of the compensation annuity,
"supplemental annuity" shall become payable to the widow,
equal to the difference between the annuity for the widow and
an amount equal to 75% 50% of the annual salary (including
all salary increases and longevity raises) that the policeman
would have been receiving when he attained age 63 if the
policeman had continued in service at the same rank (whether
career service or exempt) that he last held in the police
department. The increase in supplemental annuity resulting
from this amendatory Act of the 92nd General Assembly 1995
applies without regard to whether the deceased policeman was
in service on or after the effective date of this amendatory
Act and is payable from July 1, 2002 January 1, 1996 or the
date upon which the supplemental annuity begins, whichever is
later.
(c) Neither compensation nor supplemental annuity shall
be paid unless the death of the policeman was a direct result
of the injury, or the injury was of such character as to
prevent him from subsequently resuming service as a
policeman; nor shall compensation or supplemental annuity be
paid unless the widow was the wife of the policeman when the
injury occurred.
(Source: P.A. 89-12, eff. 4-20-95.)
(40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
Sec. 5-167.5. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003 2002. The basic city health care plan available as of
June 30, 1988 (hereinafter called the basic city plan) shall
cease to be a plan offered by the city, except as specified
in subparagraphs (4) and (5) below, and shall be closed to
new enrollment or transfer of coverage for any non-Medicare
Plan annuitant as of June 27, the effective date of this
amendatory Act of 1997. The city shall offer non-Medicare
Plan annuitants and their eligible dependents the option of
enrolling in its Annuitant Preferred Provider Plan and may
offer additional plans for any annuitant. The city may
amend, modify, or terminate any of its additional plans at
its sole discretion. If the city offers more than one
annuitant plan, the city shall allow annuitants to convert
coverage from one city annuitant plan to another, except the
basic city plan, during times designated by the city, which
periods of time shall occur at least annually. For the
period dating from June 27, the effective date of this
amendatory Act of 1997 through June 30, 2003 2002, monthly
premium rates may be increased for annuitants during the time
of their participation in non-Medicare plans, except as
provided in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003 2002. Annuitants shall not be
allowed to enroll in or transfer into the basic city plan
for Medicare eligible annuitants on or after July 1,
1999. The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003 2002, and the city may
offer additional plans to Medicare eligible annuitants in
its sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003 2002, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 5-168; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003 2002, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/5-233.1 new)
Sec. 5-233.1. Transfer of creditable service to Article
8 or 11 fund. A person who (i) is an active participant in a
fund established under Article 8 or 11 of this Code and (ii)
has at least 10 and no more than 22 years of creditable
service in this Fund may, within the 90 days following the
effective date of this Section, apply for transfer of his or
her credits and creditable service accumulated in this Fund
to the Article 8 or 11 fund. At the time of the transfer,
this Fund shall pay to the Article 8 or 11 fund an amount
consisting of:
(1) the amounts credited to the applicant through
employee contributions for the service to be transferred,
including interest; and
(2) the corresponding municipality credits,
including interest, on the books of the Fund on the date
of transfer.
Participation in this Fund with respect to the credits
transferred shall terminate on the date of transfer.
(40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
Sec. 6-164.2. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003 2002. The basic city health care plan available as of
June 30, 1988 (hereinafter called the basic city plan) shall
cease to be a plan offered by the city, except as specified
in subparagraphs (4) and (5) below, and shall be closed to
new enrollment or transfer of coverage for any non-Medicare
Plan annuitant as of June 27, the effective date of this
amendatory Act of 1997. The city shall offer non-Medicare
Plan annuitants and their eligible dependents the option of
enrolling in its Annuitant Preferred Provider Plan and may
offer additional plans for any annuitant. The city may
amend, modify, or terminate any of its additional plans at
its sole discretion. If the city offers more than one
annuitant plan, the city shall allow annuitants to convert
coverage from one city annuitant plan to another, except the
basic city plan, during times designated by the city, which
periods of time shall occur at least annually. For the
period dating from June 27, the effective date of this
amendatory Act of 1997 through June 30, 2003 2002, monthly
premium rates may be increased for annuitants during the time
of their participation in non-Medicare plans, except as
provided in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003 2002. Annuitants shall not be
allowed to enroll in or transfer into the basic city plan
for Medicare eligible annuitants on or after July 1,
1999. The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003 2002, and the city may
offer additional plans to Medicare eligible annuitants in
its sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003 2002, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 6-165; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003 2002, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/8-110) (from Ch. 108 1/2, par. 8-110)
Sec. 8-110. Employer. "Employer":
(1) a city of more than 500,000 inhabitants;
(2) or the Board of Education of the such city, with
respect to any of its employees who participate in this Fund;
(3) the Chicago Housing Authority, with respect to any
of its employees who participate in this Fund subject to the
provisions of Section 8-230.9;
(4) the Public Building Commission of the city, with
respect to any of its employees who participate in this Fund;
and
(5) to which this Article applies, or the Retirement
Board.
(Source: Laws 1968, p. 181.)
(40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
Sec. 8-113. Municipal employee, employee, contributor,
or participant. "Municipal employee", "employee",
"contributor", or "participant":
(a) Any employee of an employer employed in the
classified civil service thereof other than by temporary
appointment or in a position excluded or exempt from the
classified service by the Civil Service Act, or in the case
of a city operating under a personnel ordinance, any employee
of an employer employed in the classified or career service
under the provisions of a personnel ordinance, other than in
a provisional or exempt position as specified in such
ordinance or in rules and regulations formulated thereunder.
(b) Any employee in the service of an employer before
the Civil Service Act came in effect for the employer.
(c) Any person employed by the board.
(d) Any person employed after December 31, 1949, but
prior to January 1, 1984, in the service of the employer by
temporary appointment or in a position exempt from the
classified service as set forth in the Civil Service Act, or
in a provisional or exempt position as specified in the
personnel ordinance, who meets the following qualifications:
(1) has rendered service during not less than 12
calendar months to an employer as an employee, officer, or
official, 4 months of which must have been consecutive full
normal working months of service rendered immediately prior
to filing application to be included; and
(2) files written application with the board, while in
the service, to be included hereunder.
(e) After December 31, 1949, any alderman or other
officer or official of the employer, who files, while in
office, written application with the board to be included
hereunder.
(f) Beginning January 1, 1984, any person employed by an
employer other than the Chicago Housing Authority or the
Public Building Commission of the city, whether or not such
person is serving by temporary appointment or in a position
exempt from the classified service as set forth in the Civil
Service Act, or in a provisional or exempt position as
specified in the personnel ordinance, provided that such
person is neither (1) an alderman or other officer or
official of the employer, nor (2) participating, on the basis
of such employment, in any other pension fund or retirement
system established under this Act.
(g) After December 31, 1959, any person employed in the
law department of the city, or municipal court or Board of
Election Commissioners of the city, who was a contributor and
participant, on December 31, 1959, in the annuity and benefit
fund in operation in the city on said date, by virtue of the
Court and Law Department Employees' Annuity Act or the Board
of Election Commissioners Employees' Annuity Act.
After December 31, 1959, the foregoing definition
includes any other person employed or to be employed in the
law department, or municipal court (other than as a judge),
or Board of Election Commissioners (if his salary is provided
by appropriation of the city council of the city and his
salary paid by the city) -- subject, however, in the case of
such persons not participants on December 31, 1959, to
compliance with the same qualifications and restrictions
otherwise set forth in this Section and made generally
applicable to employees or officers of the city concerning
eligibility for participation or membership.
(h) After December 31, 1965, any person employed in the
public library of the city -- and any other person -- who was
a contributor and participant, on December 31, 1965, in the
pension fund in operation in the city on said date, by virtue
of the Public Library Employees' Pension Act.
(i) After December 31, 1968, any person employed in the
house of correction of the city, who was a contributor and
participant, on December 31, 1968, in the pension fund in
operation in the city on said date, by virtue of the House of
Correction Employees' Pension Act.
(j) Any person employed full-time on or after the
effective date of this amendatory Act of the 92nd General
Assembly by the Chicago Housing Authority who has elected to
participate in this Fund as provided in subsection (a) of
Section 8-230.9.
(k) Any person employed full-time by the Public Building
Commission of the city who has elected to participate in this
Fund as provided in subsection (d) of Section 8-230.7.
(Source: P.A. 83-802.)
(40 ILCS 5/8-120) (from Ch. 108 1/2, par. 8-120)
Sec. 8-120. Child or children. "Child" or "children":
The natural child or children, or any child or children
legally adopted by an employee at least one year prior to the
date any benefit for the child or children accrues, and so
adopted prior to the date the employee attained age 55.
(Source: P.A. 84-1028.)
(40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
Sec. 8-137. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1959 and before January 1, 1987, having
attained age 60 or more, shall, in January of the year after
the year in which the first anniversary of retirement occurs,
have the amount of his then fixed and payable monthly annuity
increased by 1 1/2%, and such first fixed annuity as granted
at retirement increased by a further 1 1/2% in January of
each year thereafter. Beginning with January of the year
1972, such increases shall be at the rate of 2% in lieu of
the aforesaid specified 1 1/2%, and beginning with January of
the year 1984 such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this
Article. An employee who retires on annuity after December
31, 1959 and before January 1, 1987, but before age 60, shall
receive such increases beginning in January of the year after
the year in which he attains age 60.
An employee who retires from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity
on the same date each year thereafter. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
(a-5) Notwithstanding the provisions of subsection (a),
upon the first annuity payment date following (1) the third
anniversary of retirement, (2) the attainment of age 53, or
(3) the date 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, whichever occurs
latest, the monthly pension of an employee who retires on
annuity prior to the attainment of age 60 who has not
received an increase under subsection (a) shall be increased
by 3%, and such annuity shall be increased by an additional
3% of the current payable monthly annuity, including such
increases previously granted under this Article, on the same
date each year thereafter. The increases provided under this
subsection are in lieu of the increases provided in
subsection (a).
(b) Subsections (a) and (a-5) are The foregoing
provision is not applicable to an employee retiring and
receiving a term annuity, as herein defined, nor to any
otherwise qualified employee who retires before he makes
employee contributions (at the 1/2 of 1% rate as provided in
this Act) for this additional annuity for not less than the
equivalent of one full year. Such employee, however, shall
make arrangement to pay to the fund a balance of such 1/2 of
1% contributions, based on his final salary, as will bring
such 1/2 of 1% contributions, computed without interest, to
the equivalent of or completion of one year's contributions.
Beginning with January, 1960, each employee shall
contribute by means of salary deductions 1/2 of 1% of each
salary payment, concurrently with and in addition to the
employee contributions otherwise made for annuity purposes.
Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with city contributions, to defray the cost of the
specified annuity increments. Any balance in such account at
the beginning of each calendar year shall be credited with
interest at the rate of 3% per annum.
Such additional employee contributions are not
refundable, except to an employee who withdraws and applies
for refund under this Article, and in cases where a term
annuity becomes payable. In such cases his contributions
shall be refunded, without interest, and charged to such
account in the prior service annuity reserve.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with
at least 20 years of service, for whom the amount of age and
service and prior service annuity combined is less than the
amount stated in this Section, shall from the date of
withdrawal, instead of all annuities otherwise provided, be
entitled to receive an annuity for life of $150 a year, plus
1 1/2% for each year of service, to and including 20 years,
and 1 2/3% for each year of service over 20 years, of his
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
An employee who withdraws after 20 or more years of
service, before age 65, shall be entitled to such annuity, to
begin not earlier than upon attained age of 55 years if under
such age at withdrawal, reduced by 2% for each full year or
fractional part thereof that his attained age is less than
65, plus an additional 2% reduction for each full year or
fractional part thereof that his attained age when annuity is
to begin is less than 60 so that the total reduction at age
55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age
60 or over, with 20 or more years of service, for whom the
age and service and prior service annuity combined, is less
than the amount stated in this paragraph, shall, from the
date of withdrawal, instead of such annuities, be entitled to
receive an annuity for life equal to 1 2/3% for each year of
service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall receive an annuity for life equal to 1.67% for
each of the first 10 years of service; 1.90% for each of the
next 10 years of service; 2.10% for each year of service in
excess of 20 but not exceeding 30; and 2.30% for each year of
service in excess of 30, based on the highest average annual
salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60 years is entitled to annuity, to begin not earlier than
upon attained age of 55 years, if under such age at
withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof
that his attained age when annuity is to begin is less than
60 if the employee was born before January 1, 1936, or 0.5%
for each such month if the employee was born on or after
January 1, 1936.
Any employee born before January 1, 1936, who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20 but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (b) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service if
withdrawal is before 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, or 2.40% for
each year of service if withdrawal is 60 days after the
effective date of this amendatory Act of the 92nd General
Assembly or later, of the highest average annual salary for
any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, to begin not
earlier than upon attained age of 55 years, if under such age
at withdrawal, reduced 0.25% for each full month or
fractional part thereof that his attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 55 or over but less than age 60, having at least 30 years
of service, shall not be subject to the reduction in
retirement annuity because of retirement below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, if withdrawal is before
60 days after the effective date of this amendatory Act of
the 92nd General Assembly, or 2.40% for each year of service
if withdrawal is 60 days after the effective date of this
amendatory Act of the 92nd General Assembly or later, of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attainment
of age 55 (age 50 if the employee has at least 30 years of
service), reduced 0.25% for each full month or remaining
fractional part thereof that the employee's attained age when
annuity is to begin is less than 60; except that an employee
retiring at age 50 or over with at least 30 years of service
or at age 55 or over with at least 25 years of service shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
The maximum annuity payable under part (a) and (b) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971 and prior to 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, or 80% if
withdrawal is 60 days after the effective date of this
amendatory Act of the 92nd General Assembly or later. For the
purpose of the minimum annuity provided in this Section
$1,500 is considered the minimum annual salary for any year;
and the maximum annual salary for the computation of such
annuity is $4,800 for any year before 1953, $6000 for the
years 1953 to 1956, inclusive, and the actual annual salary,
as salary is defined in this Article, for any year
thereafter.
To preserve rights existing on December 31, 1959, for
participants and contributors on that date to the fund
created by the Court and Law Department Employees' Annuity
Act, who became participants in the fund provided for on
January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his
salary for annuity purposes under paragraphs (a) and (b) of
this Section, for all periods of disability benefit
subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose
entire disability benefit credit period expires before
attainment of age 55 while still disabled for service, is
entitled upon withdrawal to the larger of (1) the minimum
annuity provided above, assuming he is then age 55, and
reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from
his age and service and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any
former municipal employee receiving an annuity from the fund
who re-enters service as a municipal employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(f) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and before attainment
of age 70, who withdraws after age 65, with less than 20
years of service for whom the annuity has been fixed under
this Article shall, instead of the annuity so fixed, receive
an annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that it would have contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an
employee having attained age 65 with at least 15 years of
service who withdraws from service on or after July 1, 1971
and whose annuity computed under other provisions of this
Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to
1% of the highest average annual salary, as salary is defined
and limited in this Section for any 4 consecutive years
within the last 10 years of service for each year of service,
plus the sum of $25 for each year of service. The annuity
shall not exceed 60% of such highest average annual salary.
(g-1) Instead of any other retirement annuity provided
in this Article, an employee who has at least 10 years of
service and withdraws from service on or after January 1,
1999 may elect to receive a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% if withdrawal is before 60 days after the effective date
of this amendatory Act of the 92nd General Assembly or 2.4%
if withdrawal is 60 days after the effective date of this
amendatory Act of the 92nd General Assembly or later, of
final average salary for each year of service, subject to a
maximum of 75% of final average salary if withdrawal is
before 60 days after the effective date of this amendatory
Act of the 92nd General Assembly, or 80% if withdrawal is 60
days after the effective date of this amendatory Act of the
92nd General Assembly or later. For the purpose of
calculating this annuity, "final average salary" means the
highest average annual salary for any 4 consecutive years in
the last 10 years of service.
(h) The minimum annuities provided under this Section
shall be paid in equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(j) The amendatory provisions of this amendatory Act of
1985 (P.A. 84-23) relating to the discount of annuity because
of retirement prior to attainment of age 60, and to the
retirement formula, for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(k) Beginning on January 1, 1999, the minimum amount of
employee's annuity shall be $850 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1998:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1998, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1998, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998, whose service in this fund is at
least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1998, with at least 10 years of service in this fund.
The increases granted under items (1), (2) and (3) of
this subsection (k) shall not be limited by any other Section
of this Act.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97;
90-766, eff. 8-14-98.)
(40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
Sec. 8-150.1. Minimum annuities for widows. The widow
(otherwise eligible for widow's annuity under other Sections
of this Article 8) of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of this Article is less than the
amount provided in this Section, shall, from and after the
date her otherwise provided annuity would begin, in lieu of
such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of
annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained the
age of 60 or more years on such date if the death occurs
before July 1, 1990, or age 55 or more if the death occurs on
or after July 1, 1990, or age 50 or more if the death occurs
on or after January 1, 1998 and the employee is age 50 or
over with at least 30 years of service or age 55 or over with
at least 25 years of service. Except as provided in
subsection (k), this widow's annuity shall not, however,
exceed the sum of $500 a month if the employee's death in
service occurs before January 23, 1987. The widow's annuity
shall not be limited to a maximum dollar amount if the
employee's death in service occurs on or after January 23,
1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936 or dies in service on or after January 1, 1988, or by
0.5% for each month that her then attained age is less than
60 years if the employee was born on or after July 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years;
except that if the employee dies in service on or after
January 1, 1998 at age 50 or over with at least 30 years of
service or at age 55 or over with at least 25 years of
service, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 50 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained the age of 60 or more
years if retirement occurs before July 1, 1990, or on or
after the date on which he attained age 55 if retirement
occurs on or after July 1, 1990, with at least 20 years of
service, or on or after the date on which he attained age 50
if the retirement occurs on or after the effective date of
this amendatory Act of 1997 with at least 30 years of
service, shall be entitled to an annuity equal to one-half of
the amount of annuity which her deceased husband received as
of the date of his retirement on annuity, conditional upon
such widow having attained the age of 60 or more years on the
date of her husband's retirement on annuity if retirement
occurs before July 1, 1990, or age 55 or more if retirement
occurs on or after July 1, 1990, or age 50 or more if the
retirement on annuity occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (k), this widow's annuity
shall not, however, exceed the sum of $500 a month if the
employee's death occurs before January 23, 1987. The widow's
annuity shall not be limited to a maximum dollar amount if
the employee's death occurs on or after January 23, 1987,
regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936 or withdraws from service on or
after January 1, 1988, or by 0.5% for each month that her
then attained age is less than 60 years if the employee was
born on or after January 1, 1936 and withdraws from service
before January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years; except that if the
employee retires on annuity on or after January 1, 1998 at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service, there shall be no
reduction due to the widow's age if she has attained age 50
on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of
death the amount otherwise provided in this subsection (b)
shall be reduced by 0.25% for each month that her then
attained age is less than 50 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former municipal employee receiving an annuity from the fund
on August 9, 1965 or on the effective date of this amendatory
provision, who re-enters service as a municipal employee,
unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) In computing the amount of annuity which the husband
specified in the foregoing paragraphs (a) and (b) of this
Section would have been entitled to receive, or received,
such amount shall be the annuity to which such husband would
have been, or was entitled, before reduction in the amount of
his annuity for the purposes of the voluntary optional
reversionary annuity provided for in Section Sec. 8-139 of
this Article, if such option was elected.
(e) (Blank).
(f) (Blank).
(g) The amendatory provisions of this amendatory Act of
1985 relating to annuity discount because of age for widows
of employees born before January 1, 1936, shall apply only to
qualifying widows of employees withdrawing or dying in
service on or after July 18, 1985.
(h) Beginning on January 1, 1999, the minimum amount of
widow's annuity shall be $800 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1998:
(1) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1998, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1998, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998, whose employee spouse's service
in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1998;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1998;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1998.
The increases granted under items (1), (2), (3) and (4)
of this subsection (h) shall not be limited by any other
Section of this Act.
(i) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (i) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(j) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after June 27, 1997, the widow may elect to receive, in lieu
of any other annuity provided under this Article, 50% of the
deceased employee's retirement annuity at the time of death
reduced by 0.25% for each month that the widow's age on the
date of death is less than 55; except that if the employee
dies on or after January 1, 1998 and withdrew from service on
or after June 27, 1997 at age 50 or over with at least 30
years of service or at age 55 or over with at least 25 years
of service, there shall be no reduction due to the widow's
age if she has attained age 50 on or before the employee's
date of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (j) shall be reduced by 0.25% for
each month that her age on the date of death is less than 50
years. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (j) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(k) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum
dollar amount limitation on widow's annuity shall cease to
apply, beginning with the first annuity payment after the
effective date of this amendatory Act of 1997; except that if
a refund of excess contributions for widow's annuity has been
paid by the Fund, the increase resulting from this subsection
(k) shall not begin before the refund has been repaid to the
Fund, together with interest at the effective rate from the
date of the refund to the date of repayment.
(l) In lieu of any other annuity provided in this
Article, an eligible spouse of an employee who dies in
service at least 60 days after the effective date of this
amendatory Act of the 92nd General Assembly with at least 10
years of service shall be entitled to an annuity of 50% of
the minimum formula annuity earned and accrued to the credit
of the employee at the date of death. For the purposes of
this subsection, the minimum formula annuity earned and
accrued to the credit of the employee is equal to 2.40% for
each year of service of the highest average annual salary for
any 4 consecutive years within the last 10 years of service
immediately preceding the date of death, up to a maximum of
80% of the highest average annual salary. This annuity shall
not be reduced due to the age of the employee or spouse. In
addition to any other eligibility requirements under this
Article, the spouse is eligible for this annuity only if the
marriage was in effect for 10 full years or more.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97;
90-766, eff. 8-14-98.)
(40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
Sec. 8-158. Child's annuity. A child's annuity is
payable monthly after the death of an employee parent to the
child until the child's attainment of age 18, under the
following conditions, if the child was born before the
employee attained age 65, and before he withdrew from
service:
(a) upon death resulting from injury incurred in
the performance of an act of duty;
(b) upon death in service from any cause other than
injury incurred in the performance of an act of duty, if
the employee has at least 4 years of service after the
date of his original entry into service, and at least 2
years after the date of his latest re-entry;
(b) (c) upon death of an employee who withdraws
from service after age 55 (or after age 50 with at least
30 years of service if withdrawal is on or after June 27,
1997) and who has entered upon or is eligible for
annuity.
Payment shall be made as provided in Section 8-125.
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/8-161) (from Ch. 108 1/2, par. 8-161)
Sec. 8-161. Ordinary disability benefit. An employee
while under age 65 and prior to January 1, 1979, or while
under age 70 and after January 1, 1979, who becomes disabled
after the effective date as the result of any cause other
than injury incurred in the performance of duty, shall be
entitled to ordinary disability benefit during such
disability, after the first 30 days thereof.
The first payment shall be made not later than one month
after the benefit is granted and each subsequent payment
shall be made not later than one month after the last
preceding payment.
The disability benefit prescribed herein shall cease when
the first of the following dates shall occur and the
employee, if still disabled, shall thereafter be entitled to
such annuity as is otherwise provided in this Article:
(a) the date disability ceases.
(b) the date the disabled employee attains age 65 for
disability commencing prior to January 1, 1979.
(c) the date the disabled employee attains age 65 for
disability commencing prior to attainment of age 60 in the
service and after January 1, 1979.
(d) the date the disabled employee attains the age of 70
for disability commencing after attainment of age 60 in the
service and after January 1, 1979.
(e) the date the payments of the benefit shall exceed in
the aggregate, throughout the employee's service, a period
equal to 1/4 of the total service rendered prior to the date
of disability but in no event more than 5 years. In
computing such total service any period during which the
employee received ordinary disability benefit shall be
excluded.
Any employee whose ordinary disability benefit was
terminated after January 1, 1979 by reason of his attainment
of age 65 and who continues disabled after age 65 may elect
before July 1, 1986 to have such benefits resumed beginning
at the time of such termination and continuing until
termination is required under this Section as amended by this
amendatory Act of 1985. The amount payable to any employee
for such resumed benefit for any period shall be reduced by
the amount of any retirement annuity paid to such employee
under this Article for the same period of time or by any
refund paid in lieu of annuity.
Ordinary disability benefit shall be 50% of the
employee's salary at the date of disability.
For ordinary disability benefits paid before January 1,
2001, before any payment, an amount equal to less the sum
ordinarily deducted from salary for all annuity purposes for
such period for which the ordinary disability benefit is made
shall be deducted from such payment and credited to the
employee as a deduction from salary for that period. The
sums so deducted shall be credited to the employee and shall
be regarded, for annuity and refund purposes, as an amount
contributed by him.
For ordinary disability benefits paid on or after January
1, 2001, the fund shall credit sums equal to the amounts
ordinarily contributed by an employee for annuity purposes
for any period during which the employee receives ordinary
disability, and those sums shall be deemed for annuity
purposes and purposes of Section 8-173 as amounts contributed
by the employee. These amounts credited for annuity purposes
shall not be credited for refund purposes.
If a participating employee is eligible for a disability
benefit under the federal Social Security Act, the amount of
ordinary disability benefit under this Section attributable
to employment with the Chicago Housing Authority or the
Public Building Commission of the city shall be reduced, but
not to less than $10 per month, by the amount that the
employee would be eligible to receive as a disability benefit
under the federal Social Security Act, whether or not that
federal benefit is based on service as a covered employee
under this Article. The reduction shall be effective as of
the month the employee is eligible for the social security
disability benefit. The Board may make this reduction
pending determination of eligibility for the social security
disability benefit, if it appears to the Board that the
employee may be eligible, and make an appropriate adjustment
if necessary after eligibility for the social security
disability benefit is determined. If the employee's social
security disability benefit is reduced or terminated because
of a refusal to accept rehabilitation services under the
federal Rehabilitation Act of 1973 or the federal Social
Security Act or because the employee is receiving a workers'
compensation benefit, the ordinary disability benefit under
this Section shall be reduced as if the employee were
receiving the full social security disability benefit.
The amount of ordinary disability benefit shall not be
reduced by reason of any increase in the amount of social
security disability benefit that takes effect after the month
of the initial reduction under this Section, other than an
increase resulting from a correction in the employee's wage
records.
(Source: P.A. 84-23.)
(40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
Sec. 8-164.1. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003 2002. The basic city health care plan available as of
June 30, 1988 (hereinafter called the basic city plan) shall
cease to be a plan offered by the city, except as specified
in subparagraphs (4) and (5) below, and shall be closed to
new enrollment or transfer of coverage for any non-Medicare
Plan annuitant as of June 27, the effective date of this
amendatory Act of 1997. The city shall offer non-Medicare
Plan annuitants and their eligible dependents the option of
enrolling in its Annuitant Preferred Provider Plan and may
offer additional plans for any annuitant. The city may
amend, modify, or terminate any of its additional plans at
its sole discretion. If the city offers more than one
annuitant plan, the city shall allow annuitants to convert
coverage from one city annuitant plan to another, except the
basic city plan, during times designated by the city, which
periods of time shall occur at least annually. For the
period dating from June 27, the effective date of this
amendatory Act of 1997 through June 30, 2003 2002, monthly
premium rates may be increased for annuitants during the time
of their participation in non-Medicare plans, except as
provided in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003 2002. Annuitants shall not be
allowed to enroll in or transfer into the basic city plan
for Medicare eligible annuitants on or after July 1,
1999. The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003 2002, and the city may
offer additional plans to Medicare eligible annuitants in
its sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003 2002, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
Commencing on August 23, the effective date of this
amendatory Act of 1989, the board is authorized to pay to the
board of education on behalf of each person who chooses to
participate in the board of education's plan the amounts
specified in this subsection (d) during the years indicated.
For the period January 1, 1988 through August 23, the
effective date of this amendatory Act of 1989, the board
shall pay to the board of education annuitants who
participate in the board of education's health benefits plan
for annuitants the following amounts: $10 per month to each
annuitant who is not qualified to receive medicare benefits,
and $14 per month to each annuitant who is qualified to
receive medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 8-189; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003 2002, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
Sec. 8-168. Refunds - Withdrawal before age 55 or with
less than 10 years of service.
1. An employee, without regard to length of service, who
withdraws before age 55, and any employee with less than 10
years of service who withdraws before age 60, shall be
entitled to a refund of the accumulated sums to his credit,
as of the date of withdrawal, for age and service annuity and
widow's annuity from amounts contributed by him, including
interest credited and including amounts contributed for him
for age and service and widow's annuity purposes by the city
while receiving duty disability benefits; provided that such
amounts contributed by the city after December 31, 1981,
while the employee is receiving duty disability benefits, and
amounts credited to the employee for annuity purposes by the
fund after December 31, 2000, while the employee is receiving
ordinary disability benefits, shall not be credited for
refund purposes. If he is a present employee he shall also be
entitled to a refund of the accumulations from any sums
contributed by him, and applied to any municipal pension fund
superseded by this fund.
2. Upon receipt of the refund, the employee surrenders
and forfeits all rights to any annuity or other benefits, for
himself and for any other persons who might have benefited
through him; provided that he may have such period of service
counted in computing the term of his service if he becomes an
employee before age 65, excepting as limited by the
provisions of paragraph (a) (3) of Section 8-232 of this
Article relating to the basis of computing the term of
service.
3. Any such employee shall retain such right to a refund
of such amounts when he shall apply for same until he
re-enters the service or until the amount of annuity shall
have been fixed as provided in this Article. Thereafter, no
such right shall exist in the case of any such employee.
4. Any such municipal employee who shall have served 10
or more years and who shall not withdraw the amounts
aforesaid to which he shall have a right of refund shall have
a right to annuity as stated in this Article.
5. Any such municipal employee who shall have served
less than 10 years and who shall not withdraw the amounts to
which he shall have a right to refund shall have a right to
have all such amounts and all other amounts to his credit for
annuity purposes on date of his withdrawal from service
retained to his credit and improved by interest while he
shall be out of the service at the rate of 3 1/2% or 3% per
annum (whichever rate shall apply under the provisions of
Section 8-155 of this Article) and used for annuity purposes
for his benefit and the benefit of any person who may have
any right to annuity through him because of his service,
according to the provisions of this Article in the event that
he shall subsequently re-enter the service and complete the
number of years of service necessary to attain a right to
annuity; but such sum shall be improved by interest to his
credit while he shall be out of the service only until he
shall have become 65 years of age.
(Source: P.A. 82-283.)
(40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
Sec. 8-171. Refund in lieu of annuity. In lieu of an
annuity, an employee who withdraws and whose annuity would
amount to less than $800 a month for life, may elect to
receive a refund of his accumulated contributions for annuity
purposes, based on the amounts contributed by him.
The widow of any employee, eligible for annuity upon the
death of her husband, whose widow's annuity would amount to
less than $800 a month for life, may, in lieu of widow's
annuity, elect to receive a refund of the accumulated
contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by
any amounts theretofore paid to him in the form of an annuity
or refund out of such accumulated contributions.
Accumulated contributions shall mean the amounts -
including the interest credited thereon - contributed by the
employee for age and service and widow's annuity to the date
of his withdrawal or death, whichever first occurs, including
any amounts contributed for him as salary deductions while
receiving duty disability benefits, and, if not otherwise
included, any accumulations from sums contributed by him and
applied to any pension fund superseded by this fund; provided
that such amounts contributed by the city after December 31,
1981 while the employee is receiving duty disability benefits
and amounts credited to the employee for annuity purposes by
the fund after December 31, 2000 while the employee is
receiving ordinary disability shall not be included.
The acceptance of such refund in lieu of widow's annuity,
on the part of a widow, shall not deprive a child or children
of the right to receive a child's annuity as provided for in
Sections 8-158 and 8-159 of this Article, and neither shall
the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable
to such widow electing a refund in lieu of widow's annuity.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/8-227) (from Ch. 108 1/2, par. 8-227)
Sec. 8-227. Service as police officer, firefighter or
teacher.
(a) Service rendered by an employee as a police officer
and member of the regularly constituted police department of
the city, or as a firefighter and regular member of the paid
fire department of the city, or as a teacher in the public
school system in the city shall be counted, for the purposes
of this Article, as service rendered as an employee of the
city. Salary received for any such service shall be treated,
for the purposes of this Article, as salary received for the
performance of duty as an employee.
(b) Subsection (a) applies The foregoing provisions
shall apply to service rendered after the effective date only
if the employee pays to the Fund, prior to his separation
from service, an amount equal to what would have accumulated
in his or her account from salary deductions as employee
contributions, including interest at the effective rate, if
such contributions had been made for age and service and
spouse's annuity during all of such service; provided, that
no service shall be counted or payments received for any
period of service for which the employee retains or has not
forfeited his or her rights to credit for the same period of
service in another annuity and benefit fund, or pension fund,
in operation in the city for the benefit of such police
officers, firefighters, or teachers. The amount transferred
to the Fund under item (1) of Section 5-233.1, if any, shall
be credited against the contributions required under this
subsection.
(Source: P.A. 81-1536.)
(40 ILCS 5/8-230.7)
Sec. 8-230.7. Service rendered to Public Building
Commission.
(a) An employee or former employee of the Public
Building Commission of the city who has established credit
under the Fund with regard to service to an employer other
than the Public Building Commission of the city may
contribute to the Fund and receive credit for all periods of
full-time employment with by the Public Building Commission
created by the employing city occurring prior to 60 days
after the effective date of this amendatory Act, except for
those periods for which the employee retains a right to
credit in another public pension fund or retirement system
established under this Code. Such service credit shall be
paid for and granted on the same basis and under the same
conditions as are applicable in the case of employees who
make payment for past service under Section 8-230, provided
that the person must also pay the corresponding employer
contributions, and further provided that the contributions
and service credit are permitted under Section 415 of the
Internal Revenue Code of 1986. The contributions shall be
based on the salary actually received by the person from the
Commission for that employment.
(b) A person establishing service credit under
subsection (a) or electing to participate in the Fund under
subsection (d) may, at the same time, reinstate service
credit that was terminated through receipt of a refund by
repaying to the Fund the amount of the refund plus interest
at the effective rate from the date of the refund to the date
of repayment.
(c) An eligible person may establish service credit
under subsection (a) and reinstate service credit under
subsection (b) without returning to active service as an
employee under this Article, but the required contributions
and repayment must be received by the Fund before the person
begins to receive a retirement annuity under this Article.
(d) Within 60 days after beginning full-time employment
with the Public Building Commission of the city (or within 60
days after the effective date of this amendatory Act of the
92nd General Assembly, whichever is later), a person having
service credits in this Fund or reinstating service credits
under subsection (b) may elect to participate in this Fund
with respect to that Public Building Commission employment.
An employee who participates in this Fund with respect to
Public Building Commission employment shall not, with respect
to the same period of employment, participate in any other
pension plan for employees of the Commission for which
contributions are made by the Commission, except that this
provision shall not prevent an employee from making elective
contributions to a plan of deferred compensation during that
period. An election under this subsection (d), once made, is
irrevocable.
Participation under this subsection shall be on the same
basis and under the same conditions as are applicable in the
case of participating employees of the city. Employee
contributions shall be based on the salary actually received
by the employee for that employment. Employer contributions
shall be paid by the Public Building Commission rather than
the city, at a rate to be determined by the Retirement Board.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/8-230.9 new)
Sec. 8-230.9. Service rendered to Chicago Housing
Authority.
(a) Within 60 days after beginning full-time employment
with the Chicago Housing Authority (or within 60 days after
the effective date of this amendatory Act of the 92nd General
Assembly, whichever is later), a person having service
credits in this Fund or reinstating service credits under
subsection (c) may elect to participate in this Fund with
respect to that Chicago Housing Authority employment. An
employee who participates in this Fund with respect to
Chicago Housing Authority employment shall not, with respect
to the same period of employment, participate in any other
pension plan for employees of the Authority for which
contributions are made by the Authority, except that this
provision shall not prevent an employee from making elective
contributions to a plan of deferred compensation during that
period. An election under this subsection (a), once made, is
irrevocable.
Participation under this subsection shall be on the same
basis and under the same conditions as are applicable in the
case of participating employees of the city. Employee
contributions shall be based on the salary actually received
by the employee for that employment. Employer contributions
shall be paid by the Chicago Housing Authority rather than
the city, at a rate to be determined by the Retirement Board.
(b) An employee or former employee of the Chicago
Housing Authority who has established credit under the Fund
with regard to service to an employer other than the Chicago
Housing Authority may contribute to the Fund and receive
credit for all periods of full-time employment with the
Chicago Housing Authority occurring prior to 60 days after
the effective date of this amendatory Act, except for those
periods for which the employee retains a right to credit in
another public pension fund or retirement system established
under this Code. Such service credit shall be paid for and
granted on the same basis and under the same conditions as
are applicable in the case of employees who make payment for
past service under Section 8-230, provided that the person
must also pay the corresponding employer contributions, and
further provided that the contributions and service credit
are permitted under Section 415 of the Internal Revenue Code
of 1986. The contributions shall be based on the salary
actually received by the person from the Authority for that
employment.
(c) A person establishing service credit under
subsection (b) or electing to participate in the Fund under
subsection (a) may, at the same time, reinstate service
credit that was terminated through receipt of a refund by
repaying to the Fund the amount of the refund plus interest
at the effective rate from the date of the refund to the date
of repayment.
(d) An eligible person may establish service credit
under subsection (b) and reinstate service credit under
subsection (c) without returning to active service as an
employee under this Article, but the required contributions
and repayment must be received by the Fund before the person
begins to receive a retirement annuity under this Article.
(40 ILCS 5/8-230.10 new)
Sec. 8-230.10. Service rendered to IHDA. An employee
with at least 10 years of creditable service in the Fund may
establish service credit for up to 7 years of full-time
employment by the Illinois Housing Development Authority for
which the employee does not have credit in another public
pension fund or retirement system.
To establish service credit under this Section, the
employee must apply to the Fund in writing by January 1, 2003
and pay to the Fund, at any time before beginning to receive
a retirement annuity under this Article, an amount to be
determined by the Fund, consisting of (i) employee
contributions based on the salary actually received by the
person from the Illinois Housing Development Authority for
that employment and the contribution rates then in effect for
employees of the Fund, (ii) the corresponding employer
contributions, and (iii) regular interest on the amounts in
items (i) and (ii) from the date of the service to the date
of payment.
(40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
Sec. 8-243.2. Alternative annuity for city officers.
(a) For the purposes of this Section and Sections
8-243.1 and 8-243.3, "city officer" means the city clerk, the
city treasurer, or an alderman of the city elected by vote of
the people, while serving in that capacity or as provided in
subsection (f), who has elected to participate in the Fund.
(b) Any elected city officer, while serving in that
capacity or as provided in subsection (f), may elect to
establish alternative credits for an alternative annuity by
electing in writing to make additional optional
contributions in accordance with this Section and the
procedures established by the board. Such elected city
officer may discontinue making the additional optional
contributions by notifying the Fund in writing in accordance
with this Section and procedures established by the board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the Fund on the same basis and under the
same conditions as contributions required under Sections
8-174 and 8-182.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in
full before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance
of a refund, unless the refund is repaid in full with
interest at the effective rate from the date of refund to
the date of repayment.
(c) In lieu of the retirement annuity otherwise payable
under this Article, any city officer elected by vote of the
people who (1) has elected to participate in the Fund and
make additional optional contributions in accordance with
this Section, and (2) has attained age 55 60 with at least 10
years of service credit, or has attained age 60 65 with at
least 8 years of service credit, may elect to have his
retirement annuity computed as follows: 3% of the
participant's salary at the time of termination of service
for each of the first 8 years of service credit, plus 4% of
such salary for each of the next 4 years of service credit,
plus 5% of such salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of such
salary. To the extent such elected city officer has made
additional optional contributions with respect to only a
portion of his years of service credit, his retirement
annuity will first be determined in accordance with this
Section to the extent such additional optional contributions
were made, and then in accordance with the remaining Sections
of this Article to the extent of years of service credit with
respect to which additional optional contributions were not
made.
(d) In lieu of the disability benefits otherwise payable
under this Article, any city officer elected by vote of the
people who (1) has elected to participate in the Fund, and
(2) has become permanently disabled and as a consequence is
unable to perform the duties of his office, and (3) was
making optional contributions in accordance with this Section
at the time the disability was incurred, may elect to receive
a disability annuity calculated in accordance with the
formula in subsection (c). For the purposes of this
subsection, such elected city officer shall be considered
permanently disabled only if: (i) disability occurs while in
service as an elected city officer and is of such a nature as
to prevent him from reasonably performing the duties of his
office at the time; and (ii) the board has received a written
certification by at least 2 licensed physicians appointed by
it stating that such officer is disabled and that the
disability is likely to be permanent.
(e) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Sections 8-168, 8-170 and 8-171. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
Optional contributions shall be accounted for in a separate
Elected City Officer Optional Contribution Reserve. Optional
contributions under this Section shall be included in the
amount of employee contributions used to compute the tax levy
under Section 8-173.
(f) The effective date of this plan of optional
alternative benefits and contributions shall be July 1, 1990,
or the date upon which approval is received from the U.S.
Internal Revenue Service, whichever is later.
The plan of optional alternative benefits and
contributions shall not be available to any former city
officer or employee receiving an annuity from the Fund on the
effective date of the plan, unless he re-enters service as an
elected city officer and renders at least 3 years of
additional service after the date of re-entry. However, a
person who holds office as a city officer on June 1, 1995
April 30, 1991 may elect to participate in the plan, to
transfer credits into the Fund from other Articles of this
Code, and to make the contributions required for prior
service, until 30 days after the effective date of this
amendatory Act of the 92nd General Assembly the plan takes
effect, notwithstanding the ending of his term of office
prior to that effective date; in the event that the person is
already receiving an annuity from this Fund or any other
Article of this Code at the time of making this election, the
annuity shall be recalculated to include any increase
resulting from participation in the plan, with such increase
taking effect on the effective date of the election plan.
(Source: P.A. 86-1488; 87-794.)
(40 ILCS 5/9-121.15)
Sec. 9-121.15. Transfer of credit from Article 14 system.
A current or former An employee shall be entitled to service
credit in the Fund for any creditable service transferred to
this Fund from the State Employees' Retirement System under
Section 14-105.7 of this Code. Credit under this Fund shall
be granted upon receipt by the Fund of the amounts required
to be transferred under Section 14-105.7; no additional
contribution is necessary.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/9-121.16 new)
Sec. 9-121.16. Contractual service to the Retirement
Board. A person who has rendered continuous contractual
services (other than legal or actuarial services) to the
Retirement Board for a period of at least 5 years may
establish creditable service in the Fund for up to 10 years
of those services by making written application to the Board
before July 1, 2003 and paying to the Fund an amount to be
determined by the Board, equal to the employee contributions
that would have been required if those services had been
performed as an employee.
For the purposes of calculating the required payment, the
Board may determine the applicable salary equivalent based on
the compensation received by the person for performing those
contractual services. The salary equivalent calculated under
this Section shall not be used for determining final average
salary under Section 9-134 or any other provisions of this
Code.
A person may not make optional contributions under
Section 9-121.6 or 9-179.3 for periods of credit established
under this Section.
(40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
Sec. 9-134. Minimum annuity - Additional provisions.
(a) An employee who withdraws after July 1, 1957 at age
60 or more with 20 or more years of service, for whom the
amount of age and service and prior service annuity combined
is less than the amount stated in this Section from the date
of withdrawal, instead of all annuities otherwise provided in
this Article, is entitled to receive an annuity for life of
an amount equal to 1 2/3% for each year of service, of his
highest average annual salary for any 5 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal; provided that in the case of any employee
who withdraws on or after July 1, 1971, such employee age 60
or over with 20 or more years of service, or who withdraws on
or after January 1, 1982 and on or after attainment of age 65
with 10 or more years of service, shall instead receive an
annuity for life equal to 1.67% for each of the first 10
years of service; 1.90% for each of the next 10 years of
service; 2.10% for each year of service in excess of 20 but
not exceeding 30; and 2.30% for each year of service in
excess of 30, based on the highest average annual salary for
any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957, but prior
to January 1, 1988, with 20 or more years of service, before
age 60 is entitled to annuity, to begin not earlier than age
55, if under such age at withdrawal, as computed in the last
preceding paragraph, reduced 1/2 of 1% for each full month or
fractional part thereof that his attained age when annuity is
to begin is less than 60 to the end that the total reduction
at age 55 shall be 30%, except that an employee retiring at
age 55 or over but less than age 60, having at least 35 years
of service, shall not be subject to the reduction in his
retirement annuity because of retirement below age 60.
An employee who withdraws on or after January 1, 1988,
with 20 or more years of service and before age 60, is
entitled to annuity as computed above, to begin not earlier
than age 50 if under such age at withdrawal, reduced 1/2 of
1% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60, to the
end that the total reduction at age 50 shall be 60%, except
that an employee retiring at age 50 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
An employee who withdraws on or after January 1, 1992 but
before January 1, 1993, at age 60 or over with 5 or more
years of service, may elect, in lieu of any other employee
annuity provided in this Section, to receive an annuity for
life equal to 2.20% for each of the first 20 years of
service, and 2.40% for each year of service in excess of 20,
based on the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal. An employee
who withdraws on or after January 1, 1992, but before January
1, 1993, on or after attainment of age 55 but before
attainment of age 60 with 5 or more years of service, is
entitled to elect such annuity, but the annuity shall be
reduced 0.25% for each full month or fractional part thereof
that his attained age when the annuity is to begin is less
than age 60, to the end that the total reduction at age 55
shall be 15%, except that an employee retiring at age 55 or
over but less than age 60, having at least 30 years of
service, shall not be subject to the reduction in retirement
annuity because of retirement below age 60. This annuity
benefit formula shall only apply to those employees who are
age 55 or over prior to January 1, 1993, and who elect to
withdraw at age 55 or over on or after January 1, 1992 but
before January 1, 1993.
An employee who withdraws on or after July 1, 1996 but
before August 1, 1996, at age 55 or over with 8 or more years
of service, may elect, in lieu of any other employee annuity
provided in this Section, to receive an annuity for life
equal to 2.20% for each of the first 20 years of service, and
2.40% for each year of service in excess of 20, based on the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, but the annuity shall be reduced by 0.25%
for each full month or fractional part thereof that the
annuitant's attained age when the annuity is to begin is less
than age 60, unless the annuitant has at least 30 years of
service.
The maximum annuity under this paragraph (a) shall not
exceed 70% of highest average annual salary for any 5
consecutive years within the last 10 years of service in the
case of an employee who withdraws prior to July 1, 1971, and
75% of the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal if withdrawal
takes place on or after July 1, 1971 and prior to January 1,
1988, and 80% of the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal if withdrawal
takes place on or after January 1, 1988. Fifteen hundred
dollars shall be considered the minimum amount of annual
salary for any year, and the maximum shall be his salary as
defined in this Article, except that for the years before
1957 and subsequent to 1952 the maximum annual salary to be
considered shall be $6,000, and for any year before the year
1953, $4,800.
(b) Any employee who withdraws on or after July 1, 1985
but prior to January 1, 1988, at age 60 or over with 10 or
more years of service, may elect in lieu of the benefit in
paragraph (a) to receive an annuity for life equal to 2.00%
for each year of service, based on the highest average annual
salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal. An
employee who withdraws on or after July 1, 1985, but prior to
January 1, 1988, with 10 or more years of service, but before
age 60, is entitled to elect such annuity, to begin not
earlier than age 55, but the annuity shall be reduced 0.5%
for each full month or fractional part thereof that his
attained age when the annuity is to begin is less than 60, to
the end that the total reduction at age 55 shall be 30%;
except that an employee retiring at age 55 or over but less
than age 60, having at least 30 years of service, shall not
be subject to the reduction in retirement annuity because of
retirement below age 60.
An employee who withdraws on or after January 1, 1988, at
age 60 or over with 10 or more years of service, may elect,
in lieu of the benefit in paragraph (a), to receive an
annuity for life equal to 2.20% for each of the first 20
years of service, and 2.4% for each year of service in excess
of 20, based on the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal. An employee who
withdraws on or after January 1, 1988, with 10 or more years
of service, but before age 60, is entitled to elect such
annuity, to begin not earlier than age 50, but the annuity
shall be reduced 0.5% for each full month or fractional part
thereof that his attained age when the annuity is to begin is
less than 60, to the end that the total reduction at age 50
shall be 60%, except that an employee retiring at age 50 or
over but less than age 60, having at least 30 years of
service, shall not be subject to the reduction in retirement
annuity because of retirement below age 60.
An employee who withdraws on or after June 30, 2002 with
10 or more years of service may elect, in lieu of any other
retirement annuity provided under this Article, to receive an
annuity for life, beginning no earlier than upon attainment
of age 50, equal to 2.40% of his or her highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding withdrawal, for each
year of service. If the employee has less than 30 years of
service, the annuity shall be reduced by 0.5% for each full
month or remaining fraction thereof that the employee's
attained age when the annuity is to begin is less than 60.
The maximum annuity under this paragraph (b) shall not
exceed 75% of the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal if withdrawal
occurs prior to January 1, 1988, or 80% of the highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of
withdrawal if withdrawal takes place on or after January 1,
1988.
The provisions of this paragraph (b) do not apply to any
former County employee receiving an annuity from the fund,
who re-enters service as a County employee, unless he renders
at least 3 years of additional service after the date of
re-entry.
(c) For an employee receiving disability benefit, the
salary for annuity purposes under paragraph (a) or (b) of
this Section shall, for all periods of disability benefit
subsequent to the year 1956, be the amount on which his
disability benefit was based.
(d) A county employee with 20 or more years of service,
whose entire disability benefit credit period expires before
attainment of age 50 (age 55 if expiration occurs before
January 1, 1988), while still disabled for service is
entitled upon withdrawal to the larger of:
(1) The minimum annuity provided above, assuming
that he is then age 50 (age 55 if expiration occurs
before January 1, 1988), and reducing such annuity to its
actuarial equivalent at his attained age on such date, or
(2) the annuity provided from his age and service
and prior service annuity credits.
(e) The minimum annuity provisions above do not apply to
any former county employee receiving an annuity from the
fund, who re-enters service as a county employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(f) Any employee in service on July 1, 1947, or who
enters service thereafter before attaining age 65 and
withdraws after age 65 with less than 10 years of service for
whom the annuity has been fixed under the foregoing Sections
of this Article, shall, instead of the annuity so fixed,
receive an annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of withdrawal, or to attainment of
age 70, whichever is earlier, and had the county contributed
to such earlier date for age and service annuity the amount
that it would have contributed had he been under age 65,
after the date his annuity was fixed in accordance with this
Article, and assuming his annuity were computed from such
accumulations as of his age on such earlier date. However
those employees who before July 1, 1953, made additional
contributions in accordance with this Article, the annuity so
computed under this paragraph shall not exceed the annuity
which would be payable under the other provisions of this
Section if the employee concerned was credited with 20 years
of service and would qualify for annuity thereunder.
(g) Instead of the annuity provided in this or any other
Section of this Article, an employee having attained age 65
with at least 15 years of service may elect to receive a
minimum annual annuity for life equal to 1% of the highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding retirement for
each year of service, plus the sum of $25 for each year of
service provided that no such minimum annual annuity may be
greater than 60% of such highest average annual salary.
(h) The annuity is payable in equal monthly
installments.
(i) If, by operation of law, a function of a
governmental unit, as defined by Section 20-107 of this Code,
is transferred in whole or in part to the county in which
this Article 9 is created as set forth in Section 9-101, and
employees of the governmental unit are transferred as a class
to such county, the earnings credits in the retirement system
covering the governmental unit which have been validated
under Section 20-109 of this Code shall be considered in
determining the highest average annual salary for purposes of
this Section 9-134.
(j) The annuity being paid to an employee annuitant on
July 1, 1988, shall be increased on that date by 1% for each
full year that has elapsed from the date the annuity began.
(k) Notwithstanding anything to the contrary in this
Article 9, Section 20-131 shall not apply to an employee who
withdraws on or after January 1, 1988, but prior to attaining
age 55. Therefore, no employee shall be entitled to elect to
have the alternative formula previously set forth in Section
20-122 prior to the amendatory Act of 1975 apply to any
annuity, the payment of which commenced after January 1,
1988, but prior to such employee's attainment of age 55.
(Source: P.A. 86-272; 87-794.)
(40 ILCS 5/9-134.3)
Sec. 9-134.3. Early retirement incentives.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a current contributing member of the Fund
established under this Article who, on May 1, 1997 and
within 30 days prior to the date of retirement, is (i) in
active payroll status in a position of employment under
this Article or (ii) receiving disability benefits under
Section 9-156 or 9-157; or else be eligible under
subsection (g);
(2) have not previously retired from the Fund,
except as provided under subsection (g);
(3) file with the Board before October 1, 1997 (or
the date specified in subsection (g), if applicable), a
written application requesting the benefits provided in
this Section;
(4) elect to retire under this Section on or after
September 1, 1997 and on or before February 28, 1998 (or
the date established under subsection (d) or (g), if
applicable);
(5) have attained age 55 on or before the date of
retirement and before February 28, 1998; and
(6) have at least 10 years of creditable service in
the Fund, excluding service in any of the other
participating systems under the Retirement Systems
Reciprocal Act, by the effective date of the retirement
annuity or February 28, 1998, whichever occurs first.
(b) An employee who qualifies for the benefits provided
under this Section shall be entitled to the following:
(1) The employee's retirement annuity, as
calculated under the other provisions of this Article,
shall be increased at the time of retirement by an amount
equal to 1% of the employee's average annual salary for
the highest 4 consecutive years within the last 10 years
of service, multiplied by the employee's number of years
of service credit in this Fund up to a maximum of 10
years; except that the total retirement annuity,
including any additional benefits elected under Section
9-121.6 or 9-179.3, shall not exceed 80% of that highest
average annual salary.
(2) If the employee's retirement annuity is
calculated under Section 9-134, the employee shall not be
subject to the reduction in retirement annuity because of
retirement below age 60 that is otherwise required under
that Section.
(c) A person who elects to retire under the provisions
of this Section thereby relinquishes his or her right, if
any, to have the retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122 of
the Retirement Systems Reciprocal Act.
(d) In the case of an employee whose immediate
retirement could jeopardize public safety or create hardship
for the employer, the deadline for retirement provided in
subdivision (a)(4) of this Section may be extended to a
specified date, no later than August 31, 1998, by the
employee's department head, with the approval of the
President of the County Board. In the case of an employee
who is not employed by a department of the County, the
employee's "department head", for the purposes of this
Section, shall be a person designated by the President of the
County Board.
(e) Notwithstanding Section 9-161, an annuitant who
reenters service under this Article after receiving a
retirement annuity based on benefits provided under this
Section thereby forfeits the right to continue to receive
those benefits and shall have his or her retirement annuity
recalculated without the benefits provided in this Section.
(f) This Section also applies to the Fund established
under Article 10 of this Code.
(g) A person who (1) was a participating employee on
November 30, 1996, (2) was laid off on or after December 1,
1996 and before May 1, 1997 due to the elimination of the
employee's job or position, (3) meets the requirements of
items (3) through (6) of subsection (a), and (4) has not been
reinstated as a Cook County employee since being laid off is
eligible for the benefits provided under this Section. For
such a person, the application required under subdivision
(a)(3) of this Section must be filed within 60 days after the
effective date of this amendatory Act of the 92nd General
Assembly, and the date of retirement must be within 60 days
after the effective date of this amendatory Act.
In the case of a person eligible under this subsection
(g) who began to receive a retirement annuity before the
effective date of this amendatory Act, the annuity shall be
recalculated to include the increase under this Section, and
that increase shall take effect on the first annuity payment
date following the date of application.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/9-134.4 new)
Sec. 9-134.4. Early retirement incentives.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a current contributing member of the Fund
established under this Article who, on January 1, 2001
and within 30 days prior to the date of retirement, is
(i) in active payroll status in a position of employment
under this Article or (ii) receiving disability benefits
under Section 9-156 or 9-157;
(2) have not previously retired from the Fund;
(3) file with the Board before March 1, 2003 a
written application requesting the benefits provided in
this Section;
(4) elect to retire under this Section on or after
November 30, 2002 and on or before March 31, 2003 (or the
date established under subsection (d), if applicable);
(5) have attained age 50 on or before the date of
retirement and on or before March 31, 2003; and
(6) have at least 20 years of creditable service in
the Fund, excluding service in any of the other
participating systems under the Retirement Systems
Reciprocal Act, by the effective date of the retirement
annuity or March 31, 2003, whichever occurs first.
(b) An employee who qualifies for the benefits provided
under this Section shall be entitled to the following:
(1) The employee's retirement annuity, as
calculated under the other provisions of this Article,
shall be increased at the time of retirement by an amount
equal to 1% of the employee's average annual salary for
the highest 4 consecutive years within the last 10 years
of service, multiplied by the employee's number of years
of service credit in this Fund up to a maximum of 10
years; except that the total retirement annuity,
including any additional benefits elected under Section
9-121.6 or 9-179.3, shall not exceed 80% of that highest
average annual salary.
(2) If the employee's retirement annuity is
calculated under Section 9-134, the employee shall not be
subject to the reduction in retirement annuity because of
retirement below age 60 that is otherwise required under
that Section.
(c) A person who elects to retire under the provisions
of this Section thereby relinquishes his or her right, if
any, to have the retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122 of
the Retirement Systems Reciprocal Act.
(d) In the case of an employee whose immediate
retirement could jeopardize public safety or create hardship
for the employer, the deadline for retirement provided in
subdivision (a)(4) of this Section may be extended to a
specified date, no later than September 30, 2003, by the
employee's department head, with the approval of the
President of the County Board. In the case of an employee
who is not employed by a department of the County, the
employee's "department head", for the purposes of this
Section, shall be a person designated by the President of the
County Board.
(e) Notwithstanding Section 9-161, an annuitant who
reenters service under this Article after receiving a
retirement annuity based on benefits provided under this
Section thereby forfeits the right to continue to receive
those benefits and shall have his or her retirement annuity
recalculated without the benefits provided in this Section.
(f) This Section also applies to the Fund established
under Article 10 of this Code.
(40 ILCS 5/9-146.1) (from Ch. 108 1/2, par. 9-146.1)
Sec. 9-146.1. Minimum annuities for widows. The widow of
an employee who retires from service or dies while in the
service subsequent to June 11, 1965, who is otherwise
eligible for widow's annuity under this Article and for whom
the amount of widow's annuity and widow's prior service
annuity combined, fixed or provided for such widow under
other provisions of this Article 9 is less than the amount
hereinafter provided in this Section, shall, from and after
the date her otherwise provided annuity would begin, in lieu
of such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of
annuity:
(a) The widow, of any employee who dies while in the
service on or after the date on which he attains the age of
60 or more years with at least 20 years of service, or 10 or
more years of service if death occurs on or after attainment
of age 65 and on or after January 1, 1982, shall be entitled
to an annuity equal to one-half of the amount of annuity
which her deceased husband would have been entitled to
receive had he withdrawn from the service on the day
immediately preceding the date of his death, conditional upon
such widow having attained the age of 60 or more years on
such date. Such amount of widow's annuity shall not, however,
exceed the sum of $500 a month if death in service occurs
before July 1, 1985.
If such widow of such described employee shall not be 60
or more years of age on such date of death, the amount
provided in the immediately preceding paragraph for a widow
60 or more years of age, shall, in the case of such younger
widow, be reduced by 1/2 of 1 per cent for each month that
her then attained age is less than 60 years; except that such
younger widow of an employee who dies while in service on or
after July 1, 1985 with at least 30 years of service, shall
not be subject to the reduction in widow's annuity because of
her age less than 60 on the date of the employee's death.
(b) The widow, of any employee who dies subsequent to
the date of his retirement on annuity, and who so retired on
or after the date on which he attained the age of 60 or more
years with at least 20 years of service, or 10 or more years
of service if retirement occurs on or after attainment of age
65 and on or after January 1, 1982, shall be entitled to an
annuity equal to one-half of the amount of annuity which her
deceased husband received as of the date of his retirement on
annuity, conditional upon such widow having attained the age
of 60 or more years on the date of her husband's retirement
on annuity. Such amount of widow's annuity shall not,
however, exceed the sum of $500 a month if the death occurs
before the effective date of this amendatory Act of 1991.
If such widow of such described employee shall not have
attained such age of 60 or more years on such date of her
husband's retirement on annuity, the amount provided in the
immediately preceding paragraph for a widow 60 or more years
of age on the date of her husband's retirement on annuity,
shall, in the case of such then younger widow, be reduced by
1/2 of 1 per cent for each month that her then attained age
was less than 60 years; except that such younger widow of an
employee retiring on or after July 1, 1985 with at least 30
years of service, shall not be subject to the reduction in
widow's annuity because of her age less than 60 on the date
of the employee's retirement.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former county employee receiving an annuity from the Fund on
June 11, 1965, who re-enters service as a county employee,
unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) An annuity being paid to a surviving spouse on
January 1, 1984 shall be increased by 10% and shall
thereafter be paid at the increased rate until the
termination of the annuity by death or other cause. The
annuity for a qualifying widow shall not exceed $500 per
month.
(e) The widow of any employee who dies while in service
on or after July 1, 1985 but prior to January 1, 1988, and
the widow of an employee who retires on or after July 1, 1985
but prior to January 1, 1988 with at least 10 years of
service, and the widow of an employee who retires on or after
January 1, 1984 but prior to July 1, 1985 with at least 30
years of service, shall be entitled to an annuity equal to
one-half of the amount of annuity which her deceased husband
would have received had he retired immediately prior to his
death or one-half the amount of the originally granted
retirement annuity, whichever is applicable. Such widow's
annuity will be reduced 0.5% for each month that the widow's
attained age is less than age 60 on the date of the
employee's death in service or retirement if the employee's
death in service or retirement is before January 1, 1988;
except that such younger widow of an employee with at least
30 years of service shall not be subject to the reduction in
widow's annuity because of her age less than 60 on the date
of the employee's death in service or retirement.
The widow of an employee who dies in service on or after
January 1, 1988, or retires on or after January 1, 1988 with
at least 10 years of service, shall be entitled to an annuity
equal to 1/2 of the amount of annuity which her deceased
husband would have received had he retired immediately prior
to his death or 1/2 of the amount of the annuity which her
deceased husband received as of the date of his death,
whichever is applicable. Such widow's annuity shall be
reduced 0.5% for each month that the widow's attained age is
less than age 60 on the date of the employee's death if
employee's death in service or retirement is after January 1,
1988; except that such younger widow of an employee with at
least 30 years of service shall not be subject to the
reduction in widow's annuity because of her age on the date
of the employee's death.
In lieu of any other annuity provided by this Article,
the widow of an employee who dies in service on or after
January 1, 1992, or retires on or after January 1, 1992 with
at least 10 years of service, shall be entitled to an annuity
equal to 1/2 of the amount of annuity which her deceased
husband would have received had he retired immediately prior
to his death or 1/2 of the amount of the annuity which her
deceased husband received as of the date of his death,
whichever is applicable. Such widow's annuity shall be
reduced 0.5% for each month that the widow's attained age is
less than age 55 on the date of the employee's death; except
that such younger widow of an employee with at least 30 years
of service shall not be subject to the reduction in widow's
annuity because of her age on the date of the employee's
death.
In lieu of any other annuity provided by this Article,
the widow of an employee who dies in service or withdraws
from service on or after January 1, 1992 but before January
1, 1993 at age 55 or over with at least 5 but less than 10
years of service, shall be entitled to an annuity equal to
half of the amount of annuity which her deceased husband
would have received had he retired immediately prior to his
death or half of the amount of the annuity which her deceased
husband received as of the date of his death, whichever is
applicable. This widow's annuity shall be reduced 0.5% for
each month that the widow's attained age is less than 60 on
the date of the employee's death.
However, in the case of an employee dying in service, the
amount of widow's annuity shall not be less than 10% of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal. The maximum amount of annuity under this
paragraph shall not be limited to a dollar maximum. The
provisions of this paragraph shall not apply to the widow of
any former County employee receiving an annuity from the fund
who re-enters service as a County employee, unless such
employee renders at least 3 years of additional service after
the date of re-entry.
(f) An annuity being paid to a surviving spouse on July
1, 1988, shall be increased on that date by 1% for each full
year that has elapsed from the date the annuity began.
(g) In lieu of any other annuity provided under this
Article, if the deceased employee was receiving a retirement
annuity at the time of his death and that death occurs on or
after January 1, 1993, the widow's annuity shall be 50% of
the deceased employee's retirement annuity at the time of
death, reduced by 0.5% for each month that the widow's age on
the date of death is less than 55, except that the reduction
does not apply if the deceased employee had at least 30 years
of service.
(h) In lieu of any other annuity provided under this
Article, the widow of an employee who dies in service on or
after July 1, 2002 or has at least 10 years of service and
dies on or after July 1, 2002 while receiving an annuity
shall be entitled to a widow's annuity equal to 65% of the
amount of annuity which her deceased husband would have
received had he retired immediately prior to his death or 65%
of the amount of the annuity which her deceased husband
received as of the date of his death, whichever is
applicable. This widow's annuity shall be reduced by 0.5%
for each month that the widow's age on the date of the
employee's death is less than 55, unless the deceased husband
had at least 30 years of service.
(Source: P.A. 86-273; 87-794; 87-1265.)
(40 ILCS 5/9-148) (from Ch. 108 1/2, par. 9-148)
Sec. 9-148. Widows or wives not entitled to annuity.
Except as provided in Section 9-148.1, the following widows
or wives of employees have no right to annuity from the fund:
(a) The widow or wife, married subsequent to the
effective date, of an employee who dies in service if she was
not married to him before he attained age 65;
(b) The widow or wife, married subsequent to the
effective date, of an employee who withdraws from service
whether or not he enters upon annuity, and who dies while out
of service, if she was not his wife while he was in service
and before he attained age 65;
(c) The widow or wife of an employee with 10 or more
years of service whose death occurs out of and after he has
withdrawn from service, and who has received a refund of
contributions for annuity purposes;
(d) The widow or wife of an employee with less than 10
years of service who dies out of service after he has
withdrawn from service before he attained age 60.
(Source: P.A. 81-1536.)
(40 ILCS 5/9-148.1 new)
Sec. 9-148.1. Widow's annuity for widow married to member
for at least one year. Notwithstanding Section 9-148, if a
member was not married at the time of retirement but married
after retirement, that member's widow shall be entitled to a
widow's annuity if (1) the widow was married to the member
for at least the last year prior to the member's death; (2)
the widow is otherwise eligible for a widow's annuity; and
(3) the widow repays to the Fund (i) an amount equal to the
amount of any refund paid to the member at the time of
retirement pursuant to Section 9-165 plus (ii) interest
thereon from the date of the refund until the time of
repayment at the rate of 6% per year.
(40 ILCS 5/9-163) (from Ch. 108 1/2, par. 9-163)
Sec. 9-163. Restoration of rights. An employee who has
withdrawn as a refund the amounts credited for annuity
purposes, and who re-enters service and serves for periods
comprising at least 2 years after the date of the last refund
paid to him, may have his annuity rights restored by making
application to the board in writing for the privilege of
reinstating such rights and by compliance with the following
provisions:
(a) The employee shall repay in full to the fund
while in service all refunds received, together with
interest at the effective rate from the application date
of such refund or refunds to the date of repayment.
(b) If payment is not made in a single sum, the
repayment may be made in installments by deductions from
salary or otherwise in such amounts as the employee may
elect to pay, with interest at the effective rate
accruing on unpaid balances.
(c) If the employee withdraws from service or dies
in service before full repayment is made, or during the
required return to service, the amounts repaid, including
interest repaid but without further interest, shall be
refunded in accordance with the refund provisions of this
Article.
For an employee who applies to the Fund to reinstate
credit and repay a refund between January 1, 1993 and March
1, 1993, the 2 year minimum period of subsequent service
required under item (a) shall be instead a period of 6
months.
A person who establishes service credit under Section
9-121.16 may, at the same time, reinstate credit in this Fund
and repay a refund without a return to service,
notwithstanding the other provisions of this Section.
(Source: P.A. 87-1265.)
(40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
Sec. 9-179.3. Optional plan of additional benefits and
contributions.
(a) While this plan is in effect, an employee may
establish additional optional credit for additional optional
benefits by electing in writing at any time to make
additional optional contributions. The employee may
discontinue making the additional optional contributions at
any time by notifying the fund in writing.
(b) Additional optional contributions for the additional
optional benefits shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the fund on the same basis and under the
same conditions as contributions required under Sections
9-170 and 9-176.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in
full before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance
of a refund, unless the refund is repaid in full with
interest at the effective rate from the date of refund to
the date of repayment.
(c) Additional optional benefits shall accrue for all
periods of eligible service for which additional
contributions are paid in full. The additional benefit shall
consist of an additional 1% for each year of service for
which optional contributions have been paid, based on the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to be added to the employee retirement
annuity benefits as otherwise computed under this Article.
The calculation of these additional benefits shall be subject
to the same terms and conditions as are used in the
calculation of retirement annuity under Section 9-134. The
additional benefit shall be included in the calculation of
the automatic annual increase in annuity, and in the
calculation of widow's annuity, where applicable. However no
additional benefits will be granted which produce a total
annuity greater than the applicable maximum established for
that type of annuity in this Article, and additional benefits
shall not apply to any benefit computed under Section
9-128.1.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Sections 9-164, 9-166 and 9-167. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
(e) Optional contributions shall be accounted for in a
separate Optional Contribution Reserve.
(f) The tax levy, computed under Section 9-169, shall be
based on employee contributions including the amount of
optional additional employee contributions.
(g) Service eligible under this Section may include only
service as an employee of the County as defined in Section
9-108, and subject to Sections 9-219 and 9-220. No service
granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
eligible for optional service credit. No optional service
credit may be established for any military service, or for
any service under any other Article of this Code. Optional
service credit may be established for any period of
disability paid from this fund, if the employee makes
additional optional contributions for such periods of
disability.
(h) This plan of optional benefits and contributions
shall not apply to any former county employee receiving an
annuity from the fund, who re-enters service as a County
employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(i) The effective date of the optional plan of
additional benefits and contributions shall be July 1, 1985,
or the date upon which approval is received from the Internal
Revenue Service, whichever is later.
(j) This plan of additional benefits and contributions
shall expire July 1, 2005 2002. No additional contributions
may be made after that date, and no additional benefits will
accrue after that date.
(Source: P.A. 90-32, eff. 6-27-97; 90-460, eff. 8-17-97.)
(40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
Sec. 9-219. Computation of service.
(1) In computing the term of service of an employee
prior to the effective date, the entire period beginning on
the date he was first appointed and ending on the day before
the effective date, except any intervening period during
which he was separated by withdrawal from service, shall be
counted for all purposes of this Article.
(2) In computing the term of service of any employee on
or after the effective date, the following periods of time
shall be counted as periods of service for age and service,
widow's and child's annuity purposes:
(a) The time during which he performed the duties
of his position.
(b) Vacations, leaves of absence with whole or part
pay, and leaves of absence without pay not longer than 90
days.
(c) For an employee who is a member of a county
police department or a correctional officer with the
county department of corrections, approved leaves of
absence without pay during which the employee serves as a
full-time officer or employee head of an employee
association, the membership of which consists of other
participants in the Fund police officers, provided that
the employee contributes to the Fund (1) the amount that
he would have contributed had he remained an active
employee member of the county police department in the
position he occupied at the time the leave of absence was
granted, (2) an amount calculated by the Board
representing employer contributions, and (3) regular
interest thereon from the date of service to the date of
payment. However, if the employee's application to
establish credit under this subsection is received by the
Fund on or after July 1, 2002 and before July 1, 2003,
the amount representing employer contributions specified
in item (2) shall be waived.
For a former member of a county police department
who has received a refund under Section 9-164, periods
during which the employee serves as head of an employee
association, the membership of which consists of other
police officers, provided that the employee contributes
to the Fund (1) the amount that he would have contributed
had he remained an active member of the county police
department in the position he occupied at the time he
left service, (2) an amount calculated by the Board
representing employer contributions, and (3) regular
interest thereon from the date of service to the date of
payment. However, if the former member of the county
police department retires on or after January 1, 1993 but
no later than March 1, 1993, the amount representing
employer contributions specified in item (2) shall be
waived.
(d) Any period of disability for which he received
disability benefit or whole or part pay.
(e) Accumulated vacation or other time for which an
employee who retires on or after November 1, 1990
receives a lump sum payment at the time of retirement,
provided that contributions were made to the fund at the
time such lump sum payment was received. The service
granted for the lump sum payment shall not change the
employee's date of withdrawal for computing the effective
date of the annuity.
(f) An employee may receive service credit for
annuity purposes for accumulated sick leave as of the
date of the employee's withdrawal from service, not to
exceed a total of 180 days, provided that the amount of
such accumulated sick leave is certified by the County
Comptroller to the Board and the employee pays an amount
equal to 8.5% (9% for members of the County Police
Department who are eligible to receive an annuity under
Section 9-128.1) of the amount that would have been paid
had such accumulated sick leave been paid at the
employee's final rate of salary. Such payment shall be
made within 30 days after the date of withdrawal and
prior to receipt of the first annuity check. The service
credit granted for such accumulated sick leave shall not
change the employee's date of withdrawal for the purpose
of computing the effective date of the annuity.
(3) In computing the term of service of an employee on
or after the effective date for ordinary disability benefit
purposes, the following periods of time shall be counted as
periods of service:
(a) Unless otherwise specified in Section 9-157,
the time during which he performed the duties of his
position.
(b) Paid vacations and leaves of absence with whole
or part pay.
(c) Any period for which he received duty
disability benefit.
(d) Any period of disability for which he received
whole or part pay.
(4) For an employee who on January 1, 1958, was
transferred by Act of the 70th General Assembly from his
position in a department of welfare of any city located in
the county in which this Article is in force and effect to a
similar position in a department of such county, service
shall also be credited for ordinary disability benefit and
child's annuity for such period of department of welfare
service during which period he was a contributor to a
statutory annuity and benefit fund in such city and for which
purposes service credit would otherwise not be credited by
virtue of such involuntary transfer.
(5) An employee described in subsection (e) of Section
9-108 shall receive credit for child's annuity and ordinary
disability benefit for the period of time for which he was
credited with service in the fund from which he was
involuntarily separated through class or group transfer;
provided, that no such credit shall be allowed to the extent
that it results in a duplication of credits or benefits, and
neither shall such credit be allowed to the extent that it
was or may be forfeited by the application for and acceptance
of a refund from the fund from which the employee was
transferred.
(6) Overtime or extra service shall not be included in
computing service. Not more than 1 year of service shall be
allowed for service rendered during any calendar year.
(Source: P.A. 86-1488; 87-794; 87-1265.)
(40 ILCS 5/11-125.8)
Sec. 11-125.8. Service as police officer, firefighter, or
teacher.
(a) Service rendered by an employee as a police officer
and member of the regularly constituted police department of
the city, or as a firefighter and regular member of the paid
fire department of the city, or as a teacher in the public
school system in the city shall be counted, for the purposes
of this Article, as service rendered as an employee of the
city. Salary received for any such service shall be treated,
for the purposes of this Article, as salary received for the
performance of duty as an employee.
(b) Credit shall be granted under subsection (a) only if
(1) the employee pays to the Fund prior to his or her
separation from service an amount equal to the employee
contributions that would have been payable for that service,
based on the salary actually received, plus interest at the
effective rate, and (2) the employee has terminated any
credit for that service earned in any other annuity and
benefit fund or pension fund in operation in the city for the
benefit of police officers, firefighters, or teachers. The
amount transferred to the Fund under item (1) of Section
5-233.1, if any, shall be credited against the contributions
required under this subsection.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
Sec. 11-134. Minimum annuities.
(a) An employee whose withdrawal occurs after July 1,
1957 at age 60 or over, with 20 or more years of service, (as
service is defined or computed in Section 11-216), for whom
the age and service and prior service annuity combined is
less than the amount stated in this Section, shall, from and
after the date of withdrawal, in lieu of all annuities
otherwise provided in this Article, be entitled to receive an
annuity for life of an amount equal to 1 2/3% for each year
of service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall be entitled to instead receive an annuity for
life equal to 1.67% for each of the first 10 years of
service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year of service in excess of
30, based on the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60, shall be entitled to an annuity, to begin not earlier
than age 55, if under such age at withdrawal, as computed in
the last preceding paragraph, reduced 0.25% if the employee
was born before January 1, 1936, or 0.5% if the employee was
born on or after January 1, 1936, for each full month or
fractional part thereof that his attained age when such
annuity is to begin is less than 60.
Any employee born before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20, but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (a) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service if
withdrawal is before 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, or 2.40% for
each year of service if withdrawal is 60 days after the
effective date of this amendatory Act of the 92nd General
Assembly or later, of the highest average annual salary for
any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, to begin not
earlier than upon attained age of 55 years, if under such age
at withdrawal, reduced 0.25% for each full month or
fractional part thereof that his attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 55 or over but less than age 60, having at least 30 years
of service, shall not be subject to the reduction in
retirement annuity because of retirement below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service if withdrawal is before 60
days after the effective date of this amendatory Act of the
92nd General Assembly, or 2.40% for each year of service if
withdrawal is 60 days after the effective date of this
amendatory Act of the 92nd General Assembly or later, of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attainment
of age 55 (age 50 if the employee has at least 30 years of
service), reduced 0.25% for each full month or remaining
fractional part thereof that the employee's attained age when
annuity is to begin is less than 60; except that an employee
retiring at age 50 or over with at least 30 years of service
or at age 55 or over with at least 25 years of service shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
The maximum annuity payable under this paragraph (a) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, 75% if withdrawal takes place on or after July 1,
1971, and prior to 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, or 80% if
withdrawal is 60 days after the effective date of this
amendatory Act of the 92nd General Assembly or later. For the
purpose of the minimum annuity provided in said paragraphs
$1,500 shall be considered the minimum annual salary for any
year; and the maximum annual salary to be considered for the
computation of such annuity shall be $4,800 for any year
prior to 1953, $6,000 for the years 1953 to 1956, inclusive,
and the actual annual salary, as salary is defined in this
Article, for any year thereafter.
(b) For an employee receiving disability benefit, his
salary for annuity purposes under this Section shall, for all
periods of disability benefit subsequent to the year 1956, be
the amount on which his disability benefit was based.
(c) An employee with 20 or more years of service, whose
entire disability benefit credit period expires prior to
attainment of age 55 while still disabled for service, shall
be entitled upon withdrawal to the larger of (1) the minimum
annuity provided above assuming that he is then age 55, and
reducing such annuity to its actuarial equivalent at his
attained age on such date, or (2) the annuity provided from
his age and service and prior service annuity credits.
(d) The minimum annuity provisions as aforesaid shall
not apply to any former employee receiving an annuity from
the fund, and who re-enters service as an employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(e) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and prior to July 1,
1950, or who shall become a contributor to the fund after
July 1, 1950 prior to attainment of age 70, who withdraws
after age 65 with less than 20 years of service, for whom the
annuity has been fixed under the foregoing Sections of this
Article shall, in lieu of the annuity so fixed, receive an
annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that would have been contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(f) In lieu of the annuity provided in this or in any
other Section of this Article, an employee having attained
age 65 with at least 15 years of service who withdraws from
service on or after July 1, 1971 and whose annuity computed
under other provisions of this Article is less than the
amount provided under this paragraph shall be entitled to
receive a minimum annual annuity for life equal to 1% of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding
retirement for each year of his service plus the sum of $25
for each year of service. Such annual annuity shall not
exceed the maximum percentages stated under paragraph (a) of
this Section of such highest average annual salary.
(f-1) Instead of any other retirement annuity provided
in this Article, an employee who has at least 10 years of
service and withdraws from service on or after January 1,
1999 may elect to receive a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% if withdrawal is before 60 days after the effective date
of this amendatory Act of the 92nd General Assembly or 2.4%
for each year of service if withdrawal is 60 days after the
effective date of this amendatory Act of the 92nd General
Assembly or later, of final average salary for each year of
service, subject to a maximum of 75% of final average salary
if withdrawal is before 60 days after the effective date of
this amendatory Act of the 92nd General Assembly, or 80% if
withdrawal is 60 days after the effective date of this
amendatory Act of the 92nd General Assembly or later. For the
purpose of calculating this annuity, "final average salary"
means the highest average annual salary for any 4 consecutive
years in the last 10 years of service.
(g) Any annuity payable under the preceding subsections
of this Section 11-134 shall be paid in equal monthly
installments.
(h) The amendatory provisions of part (a) and (f) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(i) The amendatory provisions of this amendatory Act of
1985 relating to the discount of annuity because of
retirement prior to attainment of age 60 and increasing the
retirement formula for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after August 16, 1985.
(j) Beginning on January 1, 1999, the minimum amount of
employee's annuity shall be $850 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1998:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1998, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1998, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998, whose service in this fund is at
least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1998, with at least 10 years of service in this fund.
The increases granted under items (1), (2) and (3) of
this subsection (j) shall not be limited by any other Section
of this Act.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97;
90-766, eff. 8-14-98.)
(40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
Sec. 11-134.1. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1963, and before January 1, 1987, having
attained age 60 or more, shall, in the month of January of
the year following the year in which the first anniversary of
retirement occurs, have the amount of his then fixed and
payable monthly annuity increased by 1 1/2%, and such first
fixed annuity as granted at retirement increased by a further
1 1/2% in January of each year thereafter. Beginning with
January of the year 1972, such increases shall be at the rate
of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this
Article. An employee who retires on annuity after December
31, 1963 and before January 1, 1987, but prior to age 60,
shall receive such increases beginning with January of the
year immediately following the year in which he attains the
age of 60 years.
An employee who retires from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity
on the same date each year thereafter. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
(a-5) Notwithstanding the provisions of subsection (a),
upon the first annuity payment date following (1) the third
anniversary of retirement, (2) the attainment of age 53, or
(3) the date 60 days after the effective date of this
amendatory Act of the 92nd General Assembly, whichever occurs
latest, the monthly pension of an employee who retires on
annuity prior to the attainment of age 60 who has not
received an increase under subsection (a) shall be increased
by 3%, and such annuity shall be increased by an additional
3% of the current payable monthly annuity, including such
increases previously granted under this Article, on the same
date each year thereafter. The increases provided under this
subsection are in lieu of the increases provided in
subsection (a).
(b) The foregoing provision is not applicable to an
employee retiring and receiving a term annuity, as defined in
this Article, nor to any otherwise qualified employee who
retires before he shall have made employee contributions (at
the 1/2 of 1% rate as hereinafter provided) for the purposes
of this additional annuity for not less than the equivalent
of one full year. Such employee, however, shall make
arrangement to pay to the fund a balance of such 1/2 of 1%
contributions, based on his final salary, as will bring such
1/2 of 1% contributions, computed without interest, to the
equivalent of or completion of one year's contributions.
Beginning with the month of January, 1964, each employee
shall contribute by means of salary deductions 1/2 of 1% of
each salary payment, concurrently with and in addition to the
employee contributions otherwise made for annuity purposes.
Each such additional employee contribution shall be
credited to an account in the prior service annuity reserve,
to be used, together with city contributions, to defray the
cost of the specified annuity increments. Any balance as of
the beginning of each calendar year existing in such account
shall be credited with interest at the rate of 3% per annum.
Such employee contributions shall not be subject to
refund, except to an employee who resigns or is discharged
and applies for refund under this Article, and also in cases
where a term annuity becomes payable.
In such cases the employee contributions shall be
refunded him, without interest, and charged to the
aforementioned account in the prior service annuity reserve.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
Sec. 11-145.1. Minimum annuities for widows.
The widow otherwise eligible for widow's annuity under
other Sections of this Article 11, of an employee hereinafter
described, who retires from service or dies while in the
service subsequent to the effective date of this amendatory
provision, and for which widow the amount of widow's annuity
and widow's prior service annuity combined, fixed or provided
for such widow under other provisions of said Article 11 is
less than the amount hereinafter provided in this section,
shall, from and after the date her otherwise provided annuity
would begin, in lieu of such otherwise provided widow's and
widow's prior service annuity, be entitled to the following
indicated amount of annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained age 60
on or before such date if the death occurs before July 1,
1990, or age 55 if the death occurs on or after July 1, 1990,
or age 50 if the death occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (j), the widow's annuity
shall not, however, exceed the sum of $500 a month if the
employee's death in service occurs before January 23, 1987.
The widow's annuity shall not be limited to a maximum dollar
amount if the employee's death in service occurs on or after
January 23, 1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936, or dies in service on or after January 1, 1988, or 0.5%
for each month that her then attained age is less than 60
years if the employee was born on or after January 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years;
except that if the employee dies in service on or after
January 1, 1998 at age 50 or over with at least 30 years of
service or at age 55 or over with at least 25 years of
service, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 50 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained age 60 if retirement
occurs before July 1, 1990, or on or after the date on which
he attained age 55 if retirement occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attained age 50 if the retirement occurs on
or after the effective date of this amendatory Act of 1997
with at least 30 years of service, shall be entitled to an
annuity equal to one-half of the amount of annuity which her
deceased husband received as of the date of his retirement on
annuity, conditional upon such widow having attained age 60
on or before the date of her husband's retirement on annuity
if retirement occurs before July 1, 1990, or age 55 if
retirement occurs on or after July 1, 1990, or age 50 if the
retirement on annuity occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (j), this widow's annuity
shall not, however, exceed the sum of $500 a month if the
employee's death occurs before January 23, 1987. The widow's
annuity shall not be limited to a maximum dollar amount if
the employee's death occurs on or after January 23, 1987,
regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936, or withdraws from service on or
after January 1, 1988, or 0.5% for each month that her then
attained age was less than 60 years if the employee was born
on or after January 1, 1936 and withdraws from service before
January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years; except that if the
employee retires on annuity on or after January 1, 1998 at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service, there shall be no
reduction due to the widow's age if she has attained age 50
on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of
death the amount otherwise provided in this subsection (b)
shall be reduced by 0.25% for each month that her then
attained age is less than 50 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former employee receiving an annuity from the fund on August
2, 1965 or on the effective date of this amendatory
provision, who re-enters service as a former employee, unless
such employee renders at least 3 years of additional service
after the date of re-entry.
(d) (Blank).
(e) (Blank).
(f) The amendments to this Section by this amendatory
Act of 1985, relating to changing the discount because of age
from 1/2 of 1% to 0.25% per month for widows of employees
born before January 1, 1936, shall apply only to qualifying
widows whose husbands die while in the service on or after
August 16, 1985 or withdraw and enter on annuity on or after
August 16, 1985.
(g) Beginning on January 1, 1999, the minimum amount of
widow's annuity shall be $800 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1998:
(1) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1998, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1998, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998, whose employee spouse's service
in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1998;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1998;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1998.
The increases granted under items (1), (2), (3) and (4)
of this subsection (g) shall not be limited by any other
Section of this Act.
(h) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (h) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(i) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after June 27, 1997, the widow may elect to receive, in lieu
of any other annuity provided under this Article, 50% of the
deceased employee's retirement annuity at the time of death
reduced by 0.25% for each month that the widow's age on the
date of death is less than 55; except that if the employee
dies on or after January 1, 1998 and withdrew from service on
or after June 27, 1997 at age 50 or over with at least 30
years of service or at age 55 or over with at least 25 years
of service, there shall be no reduction due to the widow's
age if she has attained age 50 on or before the employee's
date of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (i) shall be reduced by 0.25% for
each month that her age on the date of death is less than 50
years. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (i) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(j) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum
dollar amount limitation on widow's annuity shall cease to
apply, beginning with the first annuity payment after the
effective date of this amendatory Act of 1997; except that if
a refund of excess contributions for widow's annuity has been
paid by the Fund, the increase resulting from this subsection
(j) shall not begin before the refund has been repaid to the
Fund, together with interest at the effective rate from the
date of the refund to the date of repayment.
(k) In lieu of any other annuity provided in this
Article, an eligible spouse of an employee who dies in
service at least 60 days after the effective date of this
amendatory Act of the 92nd General Assembly with at least 10
years of service shall be entitled to an annuity of 50% of
the minimum formula annuity earned and accrued to the credit
of the employee at the date of death. For the purposes of
this subsection, the minimum formula annuity earned and
accrued to the credit of the employee is equal to 2.40% for
each year of service of the highest average annual salary for
any 4 consecutive years within the last 10 years of service
immediately preceding the date of death, up to a maximum of
80% of the highest average annual salary. This annuity shall
not be reduced due to the age of the employee or spouse. In
addition to any other eligibility requirements under this
Article, the spouse is eligible for this annuity only if the
marriage was in effect for 10 full years or more.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97;
90-766, eff. 8-14-98.)
(40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
Sec. 11-153. Child's annuity.
(a) A "Child's Annuity" shall be payable monthly after
the death of an employee parent to an unmarried child until
the child's attainment of age 18 or marriage, whichever event
shall first occur, under the following conditions, if the
child was born or in esse before the employee attained age
65, and before he withdrew from service:
(1) upon death resulting from injury incurred in
the performance of an act of duty;
(2) upon death in service from any cause other than
injury incurred in the performance of duty, if the
employee has at least 4 years of service after the date
of his original entry into service, and at least 2 years
after the date of his latest re-entry;
(2)(3) upon death of an employee who withdraws from
service after age 55 (or after age 50 with at least 30
years of service if withdrawal is on or after June 27,
1997) and who has entered upon or is eligible for
annuity.
Payment shall be made as provided in Section 11-124.
(b) After July 24, 1967, an adopted child shall be
entitled to the same child's annuity benefits provided for
natural children in this Article, if:
(1) the child was legally adopted by the employee
at least one year prior to the death of the employee; and
(2) the child was adopted before the employee
withdrew from service attained age 55.
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/11-156) (from Ch. 108 1/2, par. 11-156)
Sec. 11-156. Ordinary disability benefit. An employee,
while under age 65 and prior to January 1, 1979, or while
under age 70 and after January 1, 1979, who becomes disabled
after the effective date as the result of any cause other
than injury incurred in the performance of any act or acts of
duty, shall be entitled to ordinary disability benefit during
such disability, after the first 30 days thereof.
The disability benefit prescribed herein shall cease when
the first of the following dates shall occur and the
employee, if still disabled, shall thereafter be entitled to
such annuity as is otherwise provided in this Article:
(a) the date disability ceases.
(b) the date the disabled employee attains age 65 for
disability commencing prior to January 1, 1979.
(c) the date the disabled employee attains 65 for
disability commencing prior to attainment of age 60 in the
service and after January 1, 1979.
(d) the date the disabled employee attains the age of 70
for disability commencing after attainment of age 60 in the
service and after January 1, 1979.
(e) the date the payments of the benefit shall exceed in
the aggregate, throughout the employee's service, a period
equal to 1/4 of the total service rendered prior to the date
of disability but in no event more than 5 years. In computing
such total the following periods shall be excluded:
(i) Any period during which the employee received
ordinary disability benefit;
(ii) Any period of absence from duty, whether caused by
layoff, leave of absence or suspension of employment, or any
other reason, unless the board, upon satisfactory evidence,
finds that the disability resulted from a cause which existed
or occurred prior to such period of absence. No employee who
becomes disabled and whose disability begins during absence
from duty (other than while on vacation with pay) shall have
any right to ordinary disability benefit, except as herein
provided, until he recovers from such disability and performs
the duties of his position in the service for at least 15
consecutive days, Sundays and holidays excepted, after such
recovery.
The first payment shall be made not later than one month
after the benefit is granted and each subsequent payment
shall be made not later than one month after the last
preceding payment.
Ordinary disability benefit shall be 50% of the
employee's salary at the date of disability.
For ordinary disability benefits paid before January 1,
2001, before any payment, an amount equal to, less the sum
ordinarily deducted from salary for all annuity purposes for
such period for which the ordinary disability benefit is made
shall be deducted from such payment and credited to the
employee as a deduction from salary for that period. The
sums so deducted shall be credited to the employee and shall
be regarded, for annuity and refund purposes, as an amount
contributed by him.
For ordinary disability benefits paid on or after January
1, 2001, the fund shall credit sums equal to the amounts
ordinarily contributed by an employee for annuity purposes
for any period during which the employee receives ordinary
disability, and those sums shall be deemed for annuity
purposes and purposes of Section 11-169 as amounts
contributed by the employee. These amounts credited for
annuity purposes shall not be credited for refund purposes.
Any employee whose ordinary disability benefit was
terminated after January 1, 1979 by reason of his attainment
of age 65 and who continues disabled after age 65 may elect
before July 1, 1986 to have such benefits resumed beginning
at the time of such termination and continuing until
termination is required under this Section as amended by this
amendatory Act of 1985. The amount payable to any employee
for such resumed benefit for any period shall be reduced by
the amount of any retirement annuity paid to such employee
under this Article for the same period of time or by refund
paid in lieu of annuity.
(Source: P.A. 85-964.)
(40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
Sec. 11-160.1. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
by reason of previous employment by the City of Chicago
(hereinafter, in this Section, "the city"); (2) "Medicare
Plan annuitant" means an annuitant described in item (1) who
is eligible for Medicare benefits; and (3) "non-Medicare Plan
annuitant" means an annuitant described in item (1) who is
not eligible for Medicare benefits.
(b) The city shall offer group health benefits to
annuitants and their eligible dependents through June 30,
2003 2002. The basic city health care plan available as of
June 30, 1988 (hereinafter called the basic city plan) shall
cease to be a plan offered by the city, except as specified
in subparagraphs (4) and (5) below, and shall be closed to
new enrollment or transfer of coverage for any non-Medicare
Plan annuitant as of June 27, the effective date of this
amendatory Act of 1997. The city shall offer non-Medicare
Plan annuitants and their eligible dependents the option of
enrolling in its Annuitant Preferred Provider Plan and may
offer additional plans for any annuitant. The city may
amend, modify, or terminate any of its additional plans at
its sole discretion. If the city offers more than one
annuitant plan, the city shall allow annuitants to convert
coverage from one city annuitant plan to another, except the
basic city plan, during times designated by the city, which
periods of time shall occur at least annually. For the
period dating from June 27, the effective date of this
amendatory Act of 1997 through June 30, 2003 2002, monthly
premium rates may be increased for annuitants during the time
of their participation in non-Medicare plans, except as
provided in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2003 2002. Annuitants shall not be
allowed to enroll in or transfer into the basic city plan
for Medicare eligible annuitants on or after July 1,
1999. The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2003 2002, and the city may
offer additional plans to Medicare eligible annuitants in
its sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) The city shall pay 50% of the aggregated costs of
the claims or premiums, whichever is applicable, as
determined in accordance with subsection (g), of annuitants
and their dependents under all health care plans offered by
the city. The city may reduce its obligation by application
of price reductions obtained as a result of financial
arrangements with providers or plan administrators.
(d) From January 1, 1993 until June 30, 2003 2002, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $75 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $45 per month for
each such annuitant who is qualified to receive medicare
benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 11-178; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2003 2002, except with regard to
covered expenses incurred but not paid as of that date. This
subsection shall not affect other obligations that may be
imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, shall be estimated by the city,
based upon a written determination by a qualified independent
actuary to be appointed and paid by the city and the board.
If the estimated annual cost for each annuitant plan offered
by the city is more than the estimated amount to be
contributed by the city for that plan pursuant to subsections
(b) and (c) during that year plus the estimated amounts to be
paid pursuant to subsection (d) and by the other pension
boards on behalf of other participating annuitants, the
difference shall be paid by all annuitants participating in
the plan, except as provided in subsection (b). The city,
based upon the determination of the independent actuary,
shall set the monthly amounts to be paid by the participating
annuitants. The board may deduct the amounts to be paid by
its annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month, which election shall terminate
the annuitant's obligation to contribute toward payment of
the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/11-164) (from Ch. 108 1/2, par. 11-164)
Sec. 11-164. Refunds - Withdrawal before age 55 or with
less than 10 years of service.
(1) An employee, without regard to length of service,
who withdraws before age 55, and any employee with less than
10 years of service who withdraws before age 60, shall be
entitled to a refund of the total sum accumulated to his
credit as of date of withdrawal for age and service annuity
and widow's annuity from amounts contributed by him or by the
City in lieu of employee contributions during duty
disability; provided that such amounts contributed by the
city after December 31, 1983 while the employee is receiving
duty disability benefits and amounts credited to the employee
for annuity purposes by the fund after December 31, 2000
while the employee is receiving ordinary disability benefits
shall not be credited for refund purposes.
The board may in its discretion withhold payment of
refund for a period not to exceed 6 months from the date of
withdrawal. Interest at the effective rate shall be paid on
any such refund withheld during such withheld period not to
exceed 6 months.
(2) Upon receipt of the refund, the employee surrenders
and forfeits all rights to any annuity or other benefits, for
himself and for any other persons who might have benefited
through him; provided that he may have such period of service
counted in computing the term of his service for age and
service annuity purposes only if he becomes an employee
before age 65.
(3) An employee who does not receive a refund shall have
all amounts to his credit for annuity purposes on the date of
his withdrawal improved by interest only until he becomes age
65, while out of service, at the effective rate, for his
benefit and the benefit of any person who may have any right
to annuity through him if he re-enters the service and
attains a right to annuity.
(4) Any such employee shall retain such right to refund
of such amounts when he shall apply for same, until he
re-enters the service or until the amount of annuity to which
he shall have a right shall have been fixed as provided in
this Article. Thereafter, no such right shall exist in the
case of any such employee.
(Source: P.A. 83-499.)
(40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
Sec. 11-167. Refunds in lieu of annuity. In lieu of an
annuity, an employee who withdraws, and whose annuity would
amount to less than $800 a month for life may elect to
receive a refund of the total sum accumulated to his credit
from employee contributions for annuity purposes.
The widow of any employee, eligible for annuity upon the
death of her husband, whose annuity would amount to less than
$800 a month for life, may, in lieu of a widow's annuity,
elect to receive a refund of the accumulated contributions
for annuity purposes, based on the amounts contributed by her
deceased employee husband, but reduced by any amounts
theretofore paid to him in the form of an annuity or refund
out of such accumulated contributions.
Accumulated contributions shall mean the amounts
including interest credited thereon contributed by the
employee for age and service and widow's annuity to the date
of his withdrawal or death, whichever first occurs, and
including the accumulations from any amounts contributed for
him as salary deductions while receiving duty disability
benefits; provided that such amounts contributed by the city
after December 31, 1983 while the employee is receiving duty
disability benefits and amounts credited to the employee for
annuity purposes by the fund after December 31, 2000 while
the employee is receiving ordinary disability benefits.
The acceptance of such refund in lieu of widow's annuity,
on the part of a widow, shall not deprive a child or children
of the right to receive a child's annuity as provided for in
Sections 11-153 and 11-154 of this Article, and neither shall
the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable
to such widow electing a refund in lieu of widow's annuity.
(Source: P.A. 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)
(40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
Sec. 13-301. Retirement annuity; eligibility. Any
employee who withdraws from service and meets the age and
service requirements and other conditions set forth in
subsections (a), (b), (c) or (d) hereof is entitled to
receive a retirement annuity.
(a) Withdrawal on or after age 60. Any employee, upon
withdrawal from service on or after attainment of age 60 and
having at least 5 years of service, is entitled to a
retirement annuity.
(b) Withdrawal on or after attainment of minimum
retirement age qualifications and prior to age 60.
(1) Any employee, upon withdrawal from service on
or after attainment of age 55 (age 50 if the employee
first entered service before June 13, the effective date
of this amendatory Act of 1997) but prior to age 60 and
having at least 10 years of service, is entitled to a
retirement annuity as of the date of withdrawal or, at
the option of the employee, at any time thereafter.
(2) Any employee who withdraws on or after
attainment of age 55 (age 50 if the employee first
entered service before June 13, the effective date of
this amendatory Act of 1997) and prior to age 60 having
at least 5 years but less than 10 years of service is
entitled to a retirement annuity upon attainment of age
62, subject to the other requirements of this Article.
(3) Any employee who withdraws from service on or
after attainment of age 50 but prior to age 60 and is
eligible for early retirement without discount under the
Rule of 80 as provided in subsection (c) of Section
13-302 is entitled to a retirement annuity at the time of
withdrawal.
(c) Withdrawal prior to minimum retirement age. Any
employee, upon withdrawal from service prior to age 55 (age
50 if the employee first entered service before June 13, the
effective date of this amendatory Act of 1997) and having at
least 10 years of service, shall become entitled to a
retirement annuity upon attainment of age 55 (age 50 if the
employee first entered service before June 13, the effective
date of this amendatory Act of 1997) or, at the option of the
employee, at any time thereafter, subject to the other
requirements of this Article.
(d) Withdrawal while disabled. Any employee having at
least 5 years of service who has received ordinary disability
benefits on or after January 1, 1986 for the maximum period
of time hereinafter prescribed, and who continues to be
disabled and withdraws from service, shall be entitled to a
retirement annuity. The age and service conditions as to
eligibility for such annuity shall be waived as to the
employee, but the early retirement discount under Section
13-302(b) shall apply. If the employee is under age 55 on
the date of withdrawal, the retirement annuity shall be
computed by assuming that the employee is then age 55 and
then reduced to its actuarial equivalent at his attained age
on that date according to applicable mortality tables and
interest rates. The retirement annuity shall not be payable
for any period prior to the employee's attainment of age 55
during which the employee is able to return to gainful
employment. Upon the employee's death while in receipt of a
retirement annuity, a surviving spouse or minor children
shall be entitled to receive a surviving spouse's annuity or
child's annuity subject to the conditions hereinafter
prescribed in Sections 13-305 through 13-308.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
Sec. 13-302. Computation of retirement annuity.
(a) Computation of annuity. An employee who withdraws
from service on or after July 1, 1989 and who has met the age
and service requirements and other conditions for eligibility
set forth in Section 13-301 of this Article is entitled to
receive a retirement annuity for life equal to 2.2% of
average final salary for each of the first 20 years of
service, and 2.4% of average final salary for each year of
service in excess of 20. The retirement annuity shall not
exceed 80% of average final salary.
(b) Early retirement discount. If an employee retires
prior to attainment of age 60 with less than 30 years of
service, the annuity computed above shall be reduced by 1/2
of 1% for each full month between the date the annuity begins
and attainment of age 60, or each full month by which the
employee's service is less than 30 years, whichever is less.
However, where the employee first enters service after June
13, 1997 and does not have at least 10 years of service
exclusive of credit under Article 20, the annuity computed
above shall be reduced by 1/2 of 1% for each full month
between the date the annuity begins and attainment of age 60.
(c) Rule of 80 - Early retirement without discount. For
an employee who retires on or after January 1, 2003 but on or
before December 31, 2007, if the employee is eligible for a
retirement annuity under Section 13-301 and has at least 10
years of service exclusive of credit under Article 20 and if
at the date of withdrawal the employee's age when added to
the number of years of his or her creditable service equals
at least 80, the early retirement discount in subsection (b)
of this Section does not apply. For purposes of this Rule of
80, portions of years shall be considered in whole months.
An employee who has terminated employment with the
employer under this Article prior to the effective date of
this amendatory Act of the 92nd General Assembly and
subsequently re-enters service must remain in service with
the employer under this Article for at least 2 years after
re-entry during the period beginning on January 1, 2003 and
ending on December 31, 2007 to be entitled to early
retirement without discount under this subsection (c).
In the case of an employee who retires under the terms of
Article 20, eligibility for early retirement without discount
under this subsection (c) shall be based upon the employee's
age and service credit at the time of withdrawal from the
final fund. (Blank).
(c-1) Early retirement without discount; retirement
after June 29, 1997 and before January 1, 2003. An employee
who (i) has attained age 55 (age 50 if the employee first
entered service before June 13, 1997), (ii) has at least 10
years of service exclusive of credit under Article 20, (iii)
retires after June 29, 1997 and before January 1, 2003, and
(iv) retires within 6 months of the last day for which
retirement contributions were required, may elect at the time
of application to make a one-time employee contribution to
the Fund and thereby avoid the early retirement reduction
specified in subsection (b). The exercise of the election
shall also obligate the employer to make a one-time
nonrefundable contribution to the Fund.
The one-time employee and employer contributions shall be
a percentage of the retiring employee's highest full-time
annual salary, calculated as the total amount of salary
included in the highest 26 consecutive pay periods as used in
the average final salary calculation, and based on the
employee's age and service at retirement. The employee rate
shall be 7% multiplied by the lesser of the following 2
numbers: (1) the number of years, or portion thereof, that
the employee is less than age 60; or (2) the number of years,
or portion thereof, that the employee's service is less than
30 years. The employer contribution shall be at the rate of
20% for each year, or portion thereof, that the participant
is less than age 60.
Upon receipt of the application, the Board shall
determine the corresponding employee and employer
contributions. The annuity shall not be payable under this
subsection until both the required contributions have been
received by the Fund. However, the date the 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 District 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.
An employee who has terminated employment and
subsequently re-enters service shall not be entitled to early
retirement without discount under this subsection unless the
employee continues in service for at least 4 years after
re-entry.
(d) Annual increase. Except for employees retiring and
receiving a term annuity, an employee who retires on or after
July 1, 1985 but before July 12, 2001, the effective date of
this amendatory Act of the 92nd General Assembly shall, upon
the first payment date following the first anniversary of the
date of retirement, have the monthly annuity increased by 3%
of the amount of the monthly annuity fixed at the date of
retirement. Except for employees retiring and receiving a
term annuity, an employee who retires on or after July 12,
2001 the effective date of this amendatory Act of the 92nd
General Assembly shall, on the first day of the month in
which the first anniversary of the date of retirement occurs,
have the monthly annuity increased by 3% of the amount of the
monthly annuity fixed at the date of retirement. The monthly
annuity shall be increased by an additional 3% on the same
date each year thereafter. Beginning January 1, 1993, all
annual increases payable under this subsection (or any
predecessor provision, regardless of the date of retirement)
shall be calculated at the rate of 3% of the monthly annuity
payable at the time of the increase, including any increases
previously granted under this Article.
Any employee who (i) retired before July 1, 1985 with at
least 10 years of creditable service, (ii) is receiving a
retirement annuity under this Article, other than a term
annuity, and (iii) has not received any annual increase under
this subsection, shall begin receiving the annual increases
provided under this subsection (d) beginning on the next
annuity payment date following June 13, effective date of
this amendatory Act of 1997.
(e) Minimum retirement annuity. Beginning January 1,
1993, the minimum monthly retirement annuity shall be $500
for any annuitant having at least 10 years of service under
this Article, other than a term annuitant or an annuitant who
began receiving the annuity before attaining age 60. Any
such annuitant who is receiving a monthly annuity of less
than $500 shall have the annuity increased to $500 on that
date.
Beginning January 1, 1993, the minimum monthly retirement
annuity shall be $250 for any annuitant (other than a term or
reciprocal annuitant or an annuitant under subsection (d) of
Section 13-301) having less than 10 years of service under
this Article, and for any annuitant (other than a term
annuitant) having at least 10 years of service under this
Article who began receiving the annuity before attaining age
60. Any such annuitant who is receiving a monthly annuity of
less than $250 shall have the annuity increased to $250 on
that date.
Beginning on the first day of the month following the
month in which this amendatory Act of the 92nd General
Assembly takes effect (and without regard to whether the
annuitant was in service on or after that effective date),
the minimum monthly retirement annuity for any annuitant
having at least 10 years of service, other than an annuitant
whose annuity is subject to an early retirement discount,
shall be $500 plus $25 for each year of service in excess of
10, not to exceed $750 for an annuitant with 20 or more years
of service. In the case of a reciprocal annuity, this
minimum shall apply only if the annuitant has at least 10
years of service under this Article, and the amount of the
minimum annuity shall be reduced by the sum of all the
reciprocal annuities payable to the annuitant by other
participating systems under Article 20 of this Code.
Notwithstanding any other provision of this subsection,
beginning on the first annuity payment date following July
12, 2001 the effective date of this amendatory Act of the
92nd General Assembly, an employee who retired before August
23, 1989 with at least 10 years of service under this Article
but before attaining age 60 (regardless of whether the
retirement annuity was subject to an early retirement
discount) shall be entitled to the same minimum monthly
retirement annuity under this subsection as an employee who
retired with at least 10 years of service under this Article
and after attaining age 60.
(Source: P.A. 92-53, eff. 7-12-01.)
(40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
Sec. 13-304. Optional plan of additional benefits and
contributions made through December 31, 2002.
(a) While this plan is in effect, an eligible employee
may establish additional optional credit for additional
benefits by electing in writing at any time to make
additional optional contributions. The employee may
discontinue making the additional optional contributions at
any time by notifying the Fund in writing.
Employees first entering service after June 30, 1997 are
not eligible to participate in the plan established under
this Section.
(b) Additional optional contributions for the additional
optional benefits shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the Fund on the same basis and under the
same conditions as contributions required under Section
13-502.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the annual
rate as shall from time to time be determined by the
Board, compounded annually from the date of service to
the date of payment. All payments for past service must
be paid in full before credit is given. A person who has
withdrawn from service may pay the additional
contribution for past service at any time within 30 days
after withdrawal from service, so long as payment is made
in full before the retirement annuity commences. No
additional optional contributions may be made for any
period of service for which credit has been previously
forfeited by acceptance of a refund, unless the refund is
repaid in full with interest at the rate specified in
Section 13-603, from the date of refund to the date of
repayment. Nothing herein may be construed to allow an
additional optional contribution to be made on the
account of a deceased employee.
(c) Additional optional benefit shall accrue for all
periods of eligible service for which additional
contributions are paid in full. The additional benefit shall
consist of an additional 1% of average final salary for each
year of service for which optional contributions have been
paid, to be added to the employee's retirement annuity as
otherwise computed under this Article. The calculation of
these additional benefits shall be subject to the same terms
and conditions as are used in the calculation of the
retirement annuity under this Article. The additional
benefit shall be included in the calculation of the automatic
annual increase in annuity under Section 13-302(d), and in
the calculation of surviving spouse's annuity where
applicable. However, no additional benefits will be granted
which produce a total annuity greater than the applicable
maximum established for that type of annuity in this Article.
The total additional optional benefit that may be received
under this Section is 15% of average final salary.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Section 13-601.
(e) Optional contributions shall be accounted for in a
separate Optional Contribution Reserve.
(f) The tax levy computed under Section 13-503 shall be
based on employee contributions including the amount of
optional additional employee contributions.
(g) Service eligible under this Section may include only
service as an employee as defined in Section 13-204, and
subject to Section 13-401 and 13-402. No service granted
under Section 13-801 or 13-802 shall be eligible for optional
service credit. No optional service credit may be
established for any military service, or for any service
under any other Article of this Code. Optional service
credit may be established for any period of disability paid
from this Fund, if the employee makes additional optional
contributions for such period of disability.
(h) This plan of optional benefits and contributions
shall not apply to service prior to withdrawal rendered by
any former employee who re-enters service unless such
employee renders not less than 36 consecutive months of
additional service after the date of re-entry.
(i) The effective date of this optional plan of
additional benefits and contributions shall be the date upon
which approval was received from the Internal Revenue
Service, July 31, 1987.
(j) This plan of additional benefits and contributions
shall expire December 31, 2002. No additional contributions
may be made after that date, and no additional benefits will
accrue after that date.
(k) The maximum optional benefits for current and prior
service for which an employee can make contributions in a
single year shall be limited to 15 years of service in 1997
and before; 9 years of service in 1998; 6 years of service in
1999; and 3 years of service in 2000, 2001, and 2002. No
person may establish additional optional benefits under this
Section for more than 15 years of service.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-304.1 new)
Sec. 13-304.1. Optional plan of additional benefits and
contributions made January 1, 2003 through December 31, 2007.
(a) While this plan is in effect, an employee may
establish optional additional credit toward additional
benefits for eligible service by making an irrevocable
written election to make additional contributions as
authorized in this Section. An employee may begin to make
additional contributions under this Section, via payroll
deduction, no earlier than the first pay period of the
calendar year in which the employee fulfills the 10-year
service requirement described in subsection (g). The
additional contributions of 4% of salary shall be paid to the
Fund on the same basis and under the same conditions as
contributions required under Section 13-502.
(b) For service before an irrevocable option is elected,
but within the same calendar year, an additional contribution
may be made of 4% of the salary for the applicable period of
service, plus interest from the date of service to the date
of contribution at a rate equal to the higher of 8% per annum
or the actuarial investment return assumption used in the
Fund's most recent annual actuarial statement. All payments
for past service must be paid within the calendar year in
which the service was earned; except that a person who has
withdrawn from service and is eligible for a retirement
annuity under Section 13-301 may pay the additional
contribution for past service within the calendar year of
withdrawal within the 30 days after withdrawal from service,
as long as payment is made in full before the retirement
annuity commences and before December 31, 2007. Nothing in
this Section may be construed to allow an additional optional
contribution to be made on the account of a deceased
employee.
(c) The maximum additional benefit for current service
for which an employee may make contributions under this
Section in a single year is limited to one year of service in
each of 2003, 2004, 2005, 2006, and 2007. The total
additional benefit that may be accumulated under this
Section, including any additional benefit accumulated under a
prior optional benefit plan, is 12% of average final salary
at retirement.
The additional benefit shall accrue for all periods of
eligible service for which additional contributions have been
paid in full in accordance with this Section, subject to the
applicable limitations on maximum annuity.
The additional benefit shall consist of an additional 1%
of average final salary for each year of service for which
optional contributions have been paid, to be added to the
employee's retirement annuity as otherwise computed under
this Article. The calculation of these additional benefits
shall be subject to the same terms and conditions as are used
in the calculation of the retirement annuity under this
Article. The additional benefit shall be included in the
calculation of the automatic annual increase in annuity under
Section 13-302(d) and in the calculation of surviving
spouse's annuity, where applicable. However, no additional
benefit may be granted which produces a total annuity greater
than the applicable maximum established for that type of
annuity in this Article.
(d) Refunds of additional optional contributions made in
accordance with the provisions and limitations of this
Section shall be made on the same basis and under the same
conditions as are provided under Section 13-601. Any refund
of contributions that exceed the limits specified in this
Section shall be made in accordance with established Fund
policy.
(e) The additional contributions shall be accounted for
in a separate Optional Contribution Reserve.
(f) The tax levy computed under Section 13-503 shall be
based on employee contributions and the amount of optional
additional employee contributions, as provided in that
Section.
(g) The service eligible for optional additional
contributions under this Section is limited to service as an
employee as defined in Section 13-204, and subject to
Sections 13-401 and 13-402, but excluding service credited
under subsections 13-401(a)4 and 13-401(d). Service granted
under Section 13-801 or 13-802 is not eligible for optional
additional contributions. Eligible service is further
limited to service rendered during or after the calendar year
in which the employee reaches 10 years of service as defined
under Section 13-402, exclusive of any credit under Article
20.
Service eligible for optional additional contributions
under this Section includes any period of disability paid
from this Fund that would have been eligible service if the
employee were in active service rather than disabled. The
additional contributions for a period of disability shall be
calculated as 4% of the salary that the employee would have
received if he or she had been in active service during the
applicable period of disability, plus interest at a rate
equal to the higher of 8% per annum or the actuarial
investment return assumption used in the Fund's most recent
annual actuarial statement, compounded annually, from the
date of the service to the date of payment. The contribution
must be paid to the Fund no later than 3 months after the
employee returns to service from disability, and in any event
prior to December 31, 2007.
(h) The minimum period for which an employee may make an
irrevocable election to make additional contributions shall
be 26 consecutive pay periods, unless the employee first
accumulates the maximum optional credit as described in
subsection (c) of this Section. The maximum period for which
an employee may make irrevocable elections for additional
contributions shall be from the date of election through the
last pay period eligible for contributions under this
Section.
(i) This plan of additional benefits and contributions
expires on December 31, 2007. No additional contributions
may be made after that date, and no additional benefits will
accrue after that date.
(40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
Sec. 13-502. Employee contributions; deductions from
salary.
(a) Retirement annuity and child's annuity. There shall
be deducted from each payment of salary an amount equal to
7 1/2% of salary as the employee's contribution for the
retirement annuity, including annual increases therefore and
child's annuity.
(b) Surviving spouse's annuity. There shall be deducted
from each payment of salary an amount equal to 1 1/2% of
salary as the employee's contribution for the surviving
spouse's annuity and annual increases therefor.
(c) Pickup of employee contributions. The Employer may
pick up employee contributions required under subsections (a)
and (b) of this Section. If contributions are picked up they
shall be treated as Employer contributions in determining tax
treatment under the United States Internal Revenue Code, and
shall not be included as gross income of the employee until
such time as they are distributed. The Employer shall pay
these employee contributions from the same source of funds
used in paying salary to the employee. The Employer may pick
up these contributions by a reduction in the cash salary of
the employee or by an offset against a future salary increase
or by a combination of a reduction in salary and offset
against a future salary increase. If employee contributions
are picked up they shall be treated for all purposes of this
Article 13, including Sections 13-503 and 13-601, in the same
manner and to the same extent as employee contributions made
prior to the date picked up.
(d) Subject to the requirements of federal law, the
Employer shall pick up optional contributions that the
employee has elected to pay to the Fund under Section
13-304.1, and the contributions so picked up shall be treated
as employer contributions for the purposes of determining
federal tax treatment. The Employer shall pick up the
contributions by a reduction in the cash salary of the
employee and shall pay the contributions from the same fund
that is used to pay earnings to the employee. The Employer
shall, however, continue to withhold federal and State income
taxes based upon contributions made under Section 13-304.1
until the Internal Revenue Service or the federal courts rule
that pursuant to Section 414(h) of the U.S. Internal Revenue
Code of 1986, as amended, these contributions shall not be
included as gross income of the employee until such time as
they are distributed or made available.
(e) Each employee is deemed to consent and agree to the
deductions from compensation provided for in this Article.
(Source: P.A. 87-794.)
(40 ILCS 5/13-503) (from Ch. 108 1/2, par. 13-503)
Sec. 13-503. Tax levy. The Water Reclamation District
shall annually levy a tax upon all the taxable real property
within the District at a rate which, when extended, will
produce a sum that (i) when added to the amounts deducted
from the salaries of employees, interest income on
investments, and other income, will be sufficient to meet the
requirements of the Fund on an actuarially funded basis, but
(ii) shall not exceed an amount equal to the total amount of
contributions by the employees to the Fund made in the
calendar year 2 years prior to the year for which the tax is
levied, multiplied by 2.19, except that the amount of
employee contributions made on or after January 1, 2003
towards the purchase of additional optional benefits under
Section 13-304.1 shall only be multiplied by 1.00. The tax
shall be levied and collected in the same manner as the
general taxes of the District.
The tax shall be exclusive of and in addition to the
amount of tax the District is now or may hereafter be
authorized to levy for general purposes under the
Metropolitan Water Reclamation District Act or under any
other laws which may limit the amount of tax for general
purposes. The county clerk of any county, in reducing tax
levies as may be authorized by law, shall not consider any
such tax as a part of the general tax levy for District
purposes, and shall not include the same in any limitation of
the percent of the assessed valuation upon which taxes are
required to be extended.
Revenues derived from the tax shall be paid to the Fund
for the benefit of the Fund.
If the funds available for the purposes of this Article
are insufficient during any year to meet the requirements of
this Article, the District may issue tax anticipation
warrants or notes, as provided by law, against the current
tax levy.
The Board shall submit annually to the Board of
Commissioners of the District an estimate of the amount
required to be raised by taxation for the purposes of the
Fund. The Board of Commissioners shall review the estimate
and determine the tax to be levied for such purposes.
(Source: P.A. 87-794.)
(40 ILCS 5/14-105.7)
Sec. 14-105.7. Transfer to Article 9 fund.
(a) Until July 1, 2003 1998, any active or inactive
member of the System who has established creditable service
under paragraph (i) of Section 14-104 (relating to
contractual service to the General Assembly) and is an active
or former contributor to the pension fund established under
Article 9 of this Code may apply to the Board for transfer of
all of his or her creditable service accumulated under this
System to the Article 9 fund. The creditable service shall
be transferred forthwith. Payment by this System to the
Article 9 fund shall be made at the same time and shall
consist of:
(1) the amounts accumulated to the credit of the
applicant for that service, including regular interest,
on the books of the System on the date of transfer; plus
(2) employer contributions in an amount equal to
the amount determined under item (1).
Participation in this System as to the credits transferred
under this Section terminates on the date of transfer.
(b) Any person transferring credit under this Section
may reinstate credits and creditable service terminated upon
receipt of a refund, by paying to the System, before July 1,
2003 1998, the amount of the refund plus regular interest
from the date of refund to the date of payment.
(c) The changes to this Section and Section 9-121.15
made by this amendatory Act of the 92nd General Assembly
apply without regard to whether the person is in active
service, under this System or the Article 9 Fund, on or after
the effective date of this amendatory Act.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings": For an employee who is paid on an hourly basis or
who receives an annual salary in installments during 12
months of each academic year, the average annual earnings
during the 48 consecutive calendar month period ending with
the last day of final termination of employment or the 4
consecutive academic years of service in which the employee's
earnings were the highest, whichever is greater. For any
other employee, the average annual earnings during the 4
consecutive academic years of service in which his or her
earnings were the highest. For an employee with less than 48
months or 4 consecutive academic years of service, the
average earnings during his or her entire period of service.
The earnings of an employee with more than 36 months of
service prior to the date of becoming a participant are, for
such period, considered equal to the average earnings during
the last 36 months of such service. For an employee on leave
of absence with pay, or on leave of absence without pay who
makes contributions during such leave, earnings are assumed
to be equal to the basic compensation on the date the leave
began. For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24
months immediately preceding the month in which disability
occurs, whichever is greater.
For a participant who retires on or after the effective
date of this amendatory Act of 1997 with at least 20 years of
service as a firefighter or police officer under this
Article, the final rate of earnings shall be the annual rate
of earnings received by the participant on his or her last
day as a firefighter or police officer under this Article, if
that is greater than the final rate of earnings as calculated
under the other provisions of this Section.
If a participant is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year,
and (2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate
of earnings as calculated under the other provisions of this
Section.
In the determination of the final rate of earnings for an
employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds
the employee's earnings with that employer for the preceding
year by more than 20 percent shall be excluded; in the event
that an employee has more than one employer this limitation
shall be calculated separately for the earnings with each
employer. In making such calculation, only the basic
compensation of employees shall be considered, without regard
to vacation or overtime or to contracts for summer
employment.
The following are not considered as earnings in
determining final rate of earnings: severance or separation
pay, retirement pay, payment for in lieu of unused sick leave
and payments from an employer for the period used in
determining final rate of earnings for any purpose other than
services rendered, leave of absence or vacation granted
during that period, and vacation of up to 56 work days
allowed upon termination of employment; except that, if the
benefit has been collectively bargained between the employer
and the recognized collective bargaining agent pursuant to
the Illinois Educational Labor Relations Act, payment
received during a period of up to 2 academic years for unused
sick leave may be considered as earnings in accordance with
the applicable collective bargaining agreement, subject to
the 20% increase limitation of this Section. Any unused sick
leave considered as earnings under this Section shall not be
taken into account in calculating service credit under
Section 15-113.4.
Intermittent periods of service shall be considered as
consecutive in determining final rate of earnings.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97;
91-887, eff. 7-6-00.)
(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued under the
laws governing the certification of teachers, any
educational, administrative, professional, or other staff
employed in a charter school operating in compliance with the
Charter Schools Law who is certified under the law governing
the certification of teachers, and employees of the Board,
but excluding persons contributing concurrently to any other
public employee pension system in Illinois for the same
employment or receiving retirement pensions under another
Article of this Code for that same employment, persons
employed on an hourly basis, and persons receiving pensions
from the Fund who are employed temporarily by an Employer for
150 days or less in any school year and not on an annual
basis.
In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the
effective date of this amendatory Act of the 91st General
Assembly, and whose right to participate in the Fund is
established or confirmed by this amendatory Act, such prior
participation in the Fund, including all contributions
previously made and service credits previously earned by the
person, are hereby validated.
The changes made to this Section and Section 17-149 by
this amendatory Act of the 92nd General Assembly apply
without regard to whether the person was in service on or
after the effective date of this amendatory Act,
notwithstanding Sections 1-103.1 and 17-157.
(Source: P.A. 91-887, eff. 7-6-00; 92-416, eff. 8-17-01.)
(40 ILCS 5/17-119.1)
Sec. 17-119.1. Optional increase in retirement annuity.
(a) A member of the Fund may qualify for the augmented
rate under subdivision (b)(3) of Section 17-116 for all years
of creditable service earned before July 1, 1998 by making
the optional contribution specified in subsection (b); except
that a member who retires on or after July 1, 1998 with at
least 30 years of creditable service at retirement qualifies
for the augmented rate without making any contribution under
subsection (b). Any member who retires on or after July 1,
1998 and before the effective date of this amendatory Act of
the 92nd General Assembly with at least 30 years of
creditable service shall be paid a lump sum equal to the
amount he or she would have received under the augmented rate
minus the amount he or she actually received. A member may
not elect to qualify for the augmented rate for only a
portion of his or her creditable service earned before July
1, 1998.
(b) The contribution shall be an amount equal to 1.0% of
the member's highest salary rate in the 4 consecutive school
years immediately prior to but not including the school year
in which the application occurs, multiplied by the number of
years of creditable service earned by the member before July
1, 1998 or 20, whichever is less. This contribution shall be
reduced by 1.0% of that salary rate for every 3 full years of
creditable service earned by the member after June 30, 1998.
The contribution shall be further reduced at the rate of 25%
of the contribution (as reduced for service after June 30,
1998) for each year of the member's total creditable service
in excess of 34 years. The contribution shall not in any
event exceed 20% of that salary rate.
The member shall pay to the Fund the amount of the
contribution as calculated at the time of application under
this Section. The amount of the contribution determined
under this subsection shall be recalculated at the time of
retirement, and if the Fund determines that the amount paid
by the member exceeds the recalculated amount, the Fund shall
refund the difference to the member with regular interest
from the date of payment to the date of refund.
The contribution required by this subsection shall be
paid in one of the following ways or in a combination of the
following ways that does not extend over more than 5 years:
(i) in a lump sum on or before the date of
retirement;
(ii) in substantially equal installments over a
period of time not to exceed 5 years, as a deduction from
salary in accordance with Section 17-130.2;
(iii) if the member becomes an annuitant before
June 30, 2003, in substantially equal monthly
installments over a 24-month period, by a deduction from
the annuitant's monthly benefit.
(c) If the member fails to make the full contribution
under this Section in a timely fashion, the payments made
under this Section shall be refunded to the member, without
interest. If the member (including a member who has become
an annuitant) dies before making the full contribution, the
payments made under this Section shall be refunded to the
member's designated beneficiary if there is no survivor's or
children's pension benefit payable. If there is a survivor's
or children's benefit payable, then all payments made under
this Section shall be retained by the Fund and all such
survivor's or children's benefits payable shall be calculated
as if all contributions required under this Section have been
paid in full.
(d) For purposes of this Section and subsection (b) of
Section 17-116, optional creditable service established by a
member shall be deemed to have been earned at the time of the
employment or other qualifying event upon which the service
is based, rather than at the time the credit was established
in this Fund.
(e) The contributions required under this Section are
the responsibility of the teacher and not the teacher's
employer. However, an employer of teachers may 3ay, after
the effective date of this amendatory Act of 1998,
specifically agree, through collective bargaining or
otherwise, to make the contributions required by this Section
on behalf of those teachers.
(Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01;
revised 10-4-01.)
(40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
Sec. 17-121. Survivor's and Children's pensions -
Eligibility.
(a) A surviving spouse of a teacher shall be entitled to
a survivor's pension only if the surviving spouse he was
married to the teacher contributor for at least one year
1 1/2 years immediately prior to the teacher's his death or
retirement, whichever first occurs, and also on the date of
the last termination of his service.
The changes made to this subsection (a) by this
amendatory Act of the 92nd General Assembly apply (i) only to
the surviving spouse of a person who dies on or after the
effective date of this amendatory Act, and only if the amount
of any refund of contributions for survivor's pension is
repaid with interest in accordance with subsection (f), and
(ii) notwithstanding Section 17-157 and without regard to
whether the deceased person was in service on or after the
effective date of this amendatory Act.
(b) If the surviving spouse is under age 50 and there
are no eligible minor children born to or legally adopted by
the contributor and his or her surviving spouse, payment of
the survivor's pension shall begin when the surviving spouse
attains age 50.
(c) Beginning January 1, 2003, the remarriage of a
surviving spouse at any age does not terminate his or her
survivor's pension.
A surviving spouse whose survivor's pension (or
expectation of a survivor's pension upon attainment of age
50) was terminated before January 1, 2003 due to remarriage
and who applies for reinstatement of that pension and repays
the amount of any refund of contributions for survivor's
pension with interest in accordance with subsection (f) shall
be entitled to have the survivor's pension (or expectation of
a survivor's pension upon attainment of age 50) reinstated.
The reinstated pension shall begin to accrue on the first day
of the month following the month in which the application and
repayment, if any, are received by the Fund, but in no event
sooner than January 1, 2003 and, if subsection (b) applies,
no sooner than upon attainment of age 50. The reinstated
pension shall include any one-time or annual increases in the
survivor's pension received prior to the date of termination,
but not any increases that would otherwise have accrued from
the date of termination to the date of reinstatement.
This subsection (c) applies notwithstanding Section
17-157 and without regard to whether the deceased teacher was
in service on or after the effective date of this amendatory
Act of the 92nd General Assembly.
(d) Except as provided in subsection (c), remarriage of
the surviving spouse prior to September 1, 1983 while in
receipt of a survivor's pension shall permanently terminate
payment thereof, regardless of any subsequent change in
marital status; however, beginning September 1, 1983,
remarriage of a surviving spouse after attainment of age 55
shall not terminate the survivor's pension.
A surviving spouse whose pension was terminated on or
after September 1, 1983 due to remarriage after attainment of
age 55, and who applies for reinstatement of that pension
before January 1, 1990, shall be entitled to have the pension
reinstated effective January 1, 1990.
(e) A surviving spouse of a member or annuitant under
this Fund who is also a dependent beneficiary under the
provisions of Section 16-140 is eligible for a reciprocal
survivor's pension, provided that any refund of survivor's
pension contributions is repaid to the Fund and application
is made within 30 days after the effective date of this
amendatory Act of the 92nd General Assembly.
(f) If a refund of contributions for survivor's pension
has been paid, a person choosing to establish or reestablish
the right to receive a survivor's pension pursuant to the
changes made to this Section by this amendatory Act of the
92nd General Assembly must first repay to the Fund the amount
of the refund of contributions for survivor's pension,
together with interest thereon at the rate of 5% per year,
compounded annually, from the date of the refund to the date
of repayment.
(Source: P.A. 92-416, eff. 8-17-01.)
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
Sec. 17-134. Contributions for leaves of absence;
military service; computing service. In computing service
for pension purposes the following periods of service shall
stand in lieu of a like number of years of teaching service
upon payment therefor in the manner hereinafter provided: (a)
time spent on a leave sabbatical leaves of absence granted by
the employer, sick leaves or maternity or paternity leaves;
(b) service with teacher or labor organizations based upon
special leaves of absence therefor granted by an Employer;
(c) a maximum of 5 years spent in the military service of the
United States, of which up to 2 years may have been served
outside the pension period; (d) unused sick days at
termination of service to a maximum of 244 days; (e) time
lost due to layoff and curtailment of the school term from
June 6 through June 21, 1976; and (f) time spent after June
30, 1982 as a member of the Board of Education, if required
to resign from an administrative or teaching position in
order to qualify as a member of the Board of Education.
(1) For time spent on or after September 6, 1948 on
sabbatical leaves of absence or sick leaves, for which
salaries are paid, an Employer shall make payroll
deductions at the applicable rates in effect during such
periods.
(2) For time spent on a leave of absence granted by
the employer sabbatical or sick leaves commencing on or
after September 1, 1961, and for time spent on maternity
or paternity leaves, for which no salaries are paid,
teachers desiring credit therefor shall pay the required
contributions at the rates in effect during such periods
as though they were in teaching service. If an Employer
pays salary for vacations which occur during a teacher's
sick leave or maternity or paternity leave without
salary, vacation pay for which the teacher would have
qualified while in active service shall be considered
part of the teacher's total salary for pension purposes.
No more than 36 12 months of sick leave or maternity or
paternity leave credit may be allowed any person during
the entire term of service. Sabbatical leave credit
shall be limited to the time the person on leave without
salary under an Employer's rules is allowed to engage in
an activity for which he receives salary or compensation.
(3) For time spent prior to September 6, 1948, on
sabbatical leaves of absence or sick leaves for which
salaries were paid, teachers desiring service credit
therefor shall pay the required contributions at the
maximum applicable rates in effect during such periods.
(4) For service with teacher or labor organizations
authorized by special leaves of absence, for which no
payroll deductions are made by an Employer, teachers
desiring service credit therefor shall contribute to the
Fund upon the basis of the actual salary received from
such organizations at the percentage rates in effect
during such periods for certified positions with such
Employer. To the extent the actual salary exceeds the
regular salary, which shall be defined as the salary
rate, as calculated by the Board, in effect for the
teacher's regular position in teaching service on
September 1, 1983 or on the effective date of the leave
with the organization, whichever is later, the
organization shall pay to the Fund the employer's normal
cost as set by the Board on the increment.
(5) For time spent in the military service,
teachers entitled to and desiring credit therefor shall
contribute the amount required for each year of service
or fraction thereof at the rates in force (a) at the date
oF appointment, or (b) on return to teaching service as a
regularly certified teacher, as the case may be; provided
such rates shall not be less than $450 per year of
service. These conditions shall apply unless an Employer
elects to and does pay into the Fund the amount which
would have been due from such person had he been employed
as a teacher during such time. In the case of credit for
military service not during the pension period, the
teacher must also pay to the Fund an amount determined by
the Board to be equal to the employer's normal cost of
the benefits accrued from such service, plus interest
thereon at 5% per year, compounded annually, from the
date of appointment to the date of payment.
The changes to this Section made by Public Act
87-795 shall apply not only to persons who on or after
its effective date are in service under the Fund, but
also to persons whose status as a teacher terminated
prior to that date, whether or not the person is an
annuitant on that date. In the case of an annuitant who
applies for credit allowable under this Section for a
period of military service that did not immediately
follow employment, and who has made the required
contributions for such credit, the annuity shall be
recalculated to include the additional service credit,
with the increase taking effect on the date the Fund
received written notification of the annuitant's intent
to purchase the credit, if payment of all the required
contributions is made within 60 days of such notice, or
else on the first annuity payment date following the date
of payment of the required contributions. In calculating
the automatic annual increase for an annuity that has
been recalculated under this Section, the increase
attributable to the additional service allowable under
this amendatory Act of 1991 shall be included in the
calculation of automatic annual increases accruing after
the effective date of the recalculation.
The total credit for military service shall not
exceed 5 years, except that any teacher who on July 1,
1963, had validated credit for more than 5 years of
military service shall be entitled to the total amount of
such credit.
(6) A maximum of 244 unused sick days credited to
his account by an Employer on the date of termination of
employment. Members, upon verification of unused sick
days, may add this service time to total creditable
service.
(7) In all cases where time spent on leave is
creditable and no payroll deductions therefor are made by
an Employer, persons desiring service credit shall make
the required contributions directly to the Fund.
(8) For time lost without pay due to layoff and
curtailment of the school term from June 6 through June
21, 1976, as provided in item (e) of the first paragraph
of this Section, persons who were contributors on the
days immediately preceding such layoff shall receive
credit upon paying to the Fund a contribution based on
the rates of compensation and employee contributions in
effect at the time of such layoff, together with an
additional amount equal to 12.2% of the compensation
computed for such period of layoff, plus interest on the
entire amount at 5% per annum from January 1, 1978 to the
date of payment. If such contribution is paid, salary
for pension purposes for any year in which such a layoff
occurred shall include the compensation recognized for
purposes of computing that contribution.
(9) For time spent after June 30, 1982, as a
nonsalaried member of the Board of Education, if required
to resign from an administrative or teaching position in
order to qualify as a member of the Board of Education,
an administrator or teacher desiring credit therefor
shall pay the required contributions at the rates and
salaries in effect during such periods as though the
member were in service.
Effective September 1, 1974, the interest charged for
validation of service described in paragraphs (2) through (5)
of this Section shall be compounded annually at a rate of 5%
commencing one year after the termination of the leave or
return to service.
(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
(40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
Sec. 17-149. Cancellation of pensions.
(a) If any person receiving a service or disability
retirement pension from the Fund is re-employed as a teacher
by an Employer, the pension shall be cancelled on the date
the re-employment begins, or on the first day of a payroll
period for which service credit was validated, whichever is
earlier.
(b) If any person receiving a service retirement pension
from the Fund is re-employed as a teacher on a permanent or
annual basis by an Employer, the pension shall be cancelled
on the date the re-employment begins, or on the first day of
a payroll period for which service credit was validated,
whichever is earlier. However, the pension shall not be
cancelled in the case of a service retirement pensioner who
is temporarily re-employed on a temporary and non-annual
basis for not more than 150 days during any school year or on
an hourly basis., provided the pensioner does not receive
salary in any school year of an amount more than that payable
to a substitute teacher for 150 days' employment. A service
retirement pensioner who is temporarily re-employed for not
more than 150 days during any school year or on an hourly
basis shall be entitled, at the end of the school year, to a
refund of any contributions made to the Fund during that
school year.
If the pensioner does receive salary from an Employer in
any school year for more than 150 days' employment, the
pensioner shall be deemed to have returned to service on the
first day of employment as a pensioner-substitute. The
pensioner shall reimburse the Fund for pension payments
received after the return to service and shall pay to the
Fund the participant's contributions prescribed in Section
17-130 of this Article.
(c) If the date of re-employment on a permanent or
annual basis occurs within 5 school months after the date of
previous retirement, exclusive of any vacation period, the
member shall be deemed to have been out of service only
temporarily and not permanently retired. Such person shall
be entitled to pension payments for the time he could have
been employed as a teacher and received salary, but shall not
be entitled to pension for or during the summer vacation
prior to his return to service.
When the member again retires on pension, the time of
service and the money contributed by him during re-employment
shall be added to the time and money previously credited.
Such person must acquire 3 consecutive years of additional
contributing service before he may retire again on a pension
at a rate and under conditions other than those in force or
attained at the time of his previous retirement.
(d) Notwithstanding Sections 1-103.1 and 17-157, the
changes to this Section made by Public this amendatory Act
90-32 of 1997 shall apply without regard to whether
termination of service occurred before the effective date of
that this amendatory Act and shall apply retroactively to
August 23, 1989.
Notwithstanding Sections 1-103.1 and 17-157, the changes
to this Section and Section 17-106 made by this amendatory
Act of the 92nd General Assembly apply without regard to
whether termination of service occurred before the effective
date of this amendatory Act.
(Source: P.A. 92-416, eff. 8-17-01.)
Section 90. The State Mandates Act is amended by adding
Section 8.26 as follows:
(30 ILCS 805/8.26 new)
Sec. 8.26. 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 June 01, 2002.
Approved June 28, 2002.
Effective June 28, 2002.
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