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90_HB0110enr
New Act
Creates the Public Employee Pension Equity Act. Contains
only the short title.
LRB9000902EGfg
HB0110 Enrolled LRB9000902EGfg
1 AN ACT in relation to public employees, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Sections 3 and 10 as follows:
7 (5 ILCS 375/3) (from Ch. 127, par. 523)
8 (Text of Section before amendment by P.A. 89-507)
9 Sec. 3. Definitions. Unless the context otherwise
10 requires, the following words and phrases as used in this Act
11 shall have the following meanings. The Department may define
12 these and other words and phrases separately for the purpose
13 of implementing specific programs providing benefits under
14 this Act.
15 (a) "Administrative service organization" means any
16 person, firm or corporation experienced in the handling of
17 claims which is fully qualified, financially sound and
18 capable of meeting the service requirements of a contract of
19 administration executed with the Department.
20 (b) "Annuitant" means (1) an employee who retires, or
21 has retired, on or after January 1, 1966 on an immediate
22 annuity under the provisions of Articles 2, 14, 15 (including
23 an employee who has retired and is receiving a retirement
24 annuity under an optional program established under Section
25 15-158.2 and who would also be eligible for a retirement
26 annuity had that person been a participant in the State
27 University Retirement System), paragraphs (b) or (c) of
28 Section 16-106, or Article 18 of the Illinois Pension Code;
29 (2) any person who was receiving group insurance coverage
30 under this Act as of March 31, 1978 by reason of his status
31 as an annuitant, even though the annuity in relation to which
HB0110 Enrolled -2- LRB9000902EGfg
1 such coverage was provided is a proportional annuity based on
2 less than the minimum period of service required for a
3 retirement annuity in the system involved; (3) any person not
4 otherwise covered by this Act who has retired as a
5 participating member under Article 2 of the Illinois Pension
6 Code but is ineligible for the retirement annuity under
7 Section 2-119 of the Illinois Pension Code; (4) the spouse of
8 any person who is receiving a retirement annuity under
9 Article 18 of the Illinois Pension Code and who is covered
10 under a group health insurance program sponsored by a
11 governmental employer other than the State of Illinois and
12 who has irrevocably elected to waive his or her coverage
13 under this Act and to have his or her spouse considered as
14 the "annuitant" under this Act and not as a "dependent"; or
15 (5) an employee who retires, or has retired, from a qualified
16 position, as determined according to rules promulgated by the
17 Director, under a qualified local government or a qualified
18 rehabilitation facility or a qualified domestic violence
19 shelter or service. (For definition of "retired employee",
20 see (p) post).
21 (b-5) "New SERS annuitant" means a person who, on or
22 after January 1, 1998, becomes an annuitant, as defined in
23 subsection (b), by virtue of beginning to receive a
24 retirement annuity under Article 14 of the Illinois Pension
25 Code, and is eligible to participate in the basic program of
26 group health benefits provided for annuitants under this Act.
27 (b-6) "New SURS annuitant" means a person who, on or
28 after January 1, 1998, becomes an annuitant, as defined in
29 subsection (b), by virtue of beginning to receive a
30 retirement annuity under Article 15 of the Illinois Pension
31 Code, and is eligible to participate in the basic program of
32 group health benefits provided for annuitants under this Act.
33 (c) "Carrier" means (1) an insurance company, a
34 corporation organized under the Limited Health Service
HB0110 Enrolled -3- LRB9000902EGfg
1 Organization Act or the Voluntary Health Services Plan Act, a
2 partnership, or other nongovernmental organization, which is
3 authorized to do group life or group health insurance
4 business in Illinois, or (2) the State of Illinois as a
5 self-insurer.
6 (d) "Compensation" means salary or wages payable on a
7 regular payroll by the State Treasurer on a warrant of the
8 State Comptroller out of any State, trust or federal fund, or
9 by the Governor of the State through a disbursing officer of
10 the State out of a trust or out of federal funds, or by any
11 Department out of State, trust, federal or other funds held
12 by the State Treasurer or the Department, to any person for
13 personal services currently performed, and ordinary or
14 accidental disability benefits under Articles 2, 14, 15
15 (including ordinary or accidental disability benefits under
16 an optional program established under Section 15-158.2),
17 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
18 Illinois Pension Code, for disability incurred after January
19 1, 1966, or benefits payable under the Workers' Compensation
20 or Occupational Diseases Act or benefits payable under a sick
21 pay plan established in accordance with Section 36 of the
22 State Finance Act. "Compensation" also means salary or wages
23 paid to an employee of any qualified local government or
24 qualified rehabilitation facility or a qualified domestic
25 violence shelter or service.
26 (e) "Commission" means the State Employees Group
27 Insurance Advisory Commission authorized by this Act.
28 Commencing July 1, 1984, "Commission" as used in this Act
29 means the Illinois Economic and Fiscal Commission as
30 established by the Legislative Commission Reorganization Act
31 of 1984.
32 (f) "Contributory", when referred to as contributory
33 coverage, shall mean optional coverages or benefits elected
34 by the member toward the cost of which such member makes
HB0110 Enrolled -4- LRB9000902EGfg
1 contribution, or which are funded in whole or in part through
2 the acceptance of a reduction in earnings or the foregoing of
3 an increase in earnings by an employee, as distinguished from
4 noncontributory coverage or benefits which are paid entirely
5 by the State of Illinois without reduction of the member's
6 salary.
7 (g) "Department" means any department, institution,
8 board, commission, officer, court or any agency of the State
9 government receiving appropriations and having power to
10 certify payrolls to the Comptroller authorizing payments of
11 salary and wages against such appropriations as are made by
12 the General Assembly from any State fund, or against trust
13 funds held by the State Treasurer and includes boards of
14 trustees of the retirement systems created by Articles 2, 14,
15 15, 16 and 18 of the Illinois Pension Code. "Department"
16 also includes the Illinois Comprehensive Health Insurance
17 Board and the Illinois Rural Bond Bank.
18 (h) "Dependent", when the term is used in the context of
19 the health and life plan, means a member's spouse and any
20 unmarried child (1) from birth to age 19 including an adopted
21 child, a child who lives with the member from the time of the
22 filing of a petition for adoption until entry of an order of
23 adoption, a stepchild or recognized child who lives with the
24 member in a parent-child relationship, or a child who lives
25 with the member if such member is a court appointed guardian
26 of the child, or (2) age 19 to 23 enrolled as a full-time
27 student in any accredited school, financially dependent upon
28 the member, and eligible as a dependent for Illinois State
29 income tax purposes, or (3) age 19 or over who is mentally or
30 physically handicapped as defined in the Illinois Insurance
31 Code. For the health plan only, the term "dependent" also
32 includes any person enrolled prior to the effective date of
33 this Section who is dependent upon the member to the extent
34 that the member may claim such person as a dependent for
HB0110 Enrolled -5- LRB9000902EGfg
1 Illinois State income tax deduction purposes; no other such
2 person may be enrolled.
3 (i) "Director" means the Director of the Illinois
4 Department of Central Management Services.
5 (j) "Eligibility period" means the period of time a
6 member has to elect enrollment in programs or to select
7 benefits without regard to age, sex or health.
8 (k) "Employee" means and includes each officer or
9 employee in the service of a department who (1) receives his
10 compensation for service rendered to the department on a
11 warrant issued pursuant to a payroll certified by a
12 department or on a warrant or check issued and drawn by a
13 department upon a trust, federal or other fund or on a
14 warrant issued pursuant to a payroll certified by an elected
15 or duly appointed officer of the State or who receives
16 payment of the performance of personal services on a warrant
17 issued pursuant to a payroll certified by a Department and
18 drawn by the Comptroller upon the State Treasurer against
19 appropriations made by the General Assembly from any fund or
20 against trust funds held by the State Treasurer, and (2) is
21 employed full-time or part-time in a position normally
22 requiring actual performance of duty during not less than 1/2
23 of a normal work period, as established by the Director in
24 cooperation with each department, except that persons elected
25 by popular vote will be considered employees during the
26 entire term for which they are elected regardless of hours
27 devoted to the service of the State, and (3) except that
28 "employee" does not include any person who is not eligible by
29 reason of such person's employment to participate in one of
30 the State retirement systems under Articles 2, 14, 15 (either
31 the regular Article 15 system or an optional program
32 established under Section 15-158.2) or 18, or under paragraph
33 (b) or (c) of Section 16-106, of the Illinois Pension Code,
34 but such term does include persons who are employed during
HB0110 Enrolled -6- LRB9000902EGfg
1 the 6 month qualifying period under Article 14 of the
2 Illinois Pension Code. Such term also includes any person
3 who (1) after January 1, 1966, is receiving ordinary or
4 accidental disability benefits under Articles 2, 14, 15
5 (including ordinary or accidental disability benefits under
6 an optional program established under Section 15-158.2),
7 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
8 Illinois Pension Code, for disability incurred after January
9 1, 1966, (2) receives total permanent or total temporary
10 disability under the Workers' Compensation Act or
11 Occupational Disease Act as a result of injuries sustained or
12 illness contracted in the course of employment with the State
13 of Illinois, or (3) is not otherwise covered under this Act
14 and has retired as a participating member under Article 2 of
15 the Illinois Pension Code but is ineligible for the
16 retirement annuity under Section 2-119 of the Illinois
17 Pension Code. However, a person who satisfies the criteria
18 of the foregoing definition of "employee" except that such
19 person is made ineligible to participate in the State
20 Universities Retirement System by clause (4) of subsection
21 (a) the first paragraph of Section 15-107 of the Illinois
22 Pension Code is also an "employee" for the purposes of this
23 Act. "Employee" also includes any person receiving or
24 eligible for benefits under a sick pay plan established in
25 accordance with Section 36 of the State Finance Act.
26 "Employee" also includes each officer or employee in the
27 service of a qualified local government, including persons
28 appointed as trustees of sanitary districts regardless of
29 hours devoted to the service of the sanitary district, and
30 each employee in the service of a qualified rehabilitation
31 facility and each full-time employee in the service of a
32 qualified domestic violence shelter or service, as determined
33 according to rules promulgated by the Director.
34 (l) "Member" means an employee, annuitant, retired
HB0110 Enrolled -7- LRB9000902EGfg
1 employee or survivor.
2 (m) "Optional coverages or benefits" means those
3 coverages or benefits available to the member on his or her
4 voluntary election, and at his or her own expense.
5 (n) "Program" means the group life insurance, health
6 benefits and other employee benefits designed and contracted
7 for by the Director under this Act.
8 (o) "Health plan" means a self-insured health insurance
9 program offered by the State of Illinois for the purposes of
10 benefiting employees by means of providing, among others,
11 wellness programs, utilization reviews, second opinions and
12 medical fee reviews, as well as for paying for hospital and
13 medical care up to the maximum coverage provided by the plan,
14 to its members and their dependents.
15 (p) "Retired employee" means any person who would be an
16 annuitant as that term is defined herein but for the fact
17 that such person retired prior to January 1, 1966. Such term
18 also includes any person formerly employed by the University
19 of Illinois in the Cooperative Extension Service who would be
20 an annuitant but for the fact that such person was made
21 ineligible to participate in the State Universities
22 Retirement System by clause (4) of subsection (a) the first
23 paragraph of Section 15-107 of the Illinois Pension Code.
24 (p-6) "New SURS retired employee" means a person who, on
25 or after January 1, 1998, becomes a retired employee, as
26 defined in subsection (p), by virtue of being a person
27 formerly employed by the University of Illinois in the
28 Cooperative Extension Service who would be an annuitant but
29 for the fact that he or she was made ineligible to
30 participate in the State Universities Retirement System by
31 clause (4) of subsection (a) of Section 15-107 of the
32 Illinois Pension Code, and who is eligible to participate in
33 the basic program of group health benefits provided for
34 retired employees under this Act.
HB0110 Enrolled -8- LRB9000902EGfg
1 (q) "Survivor" means a person receiving an annuity as a
2 survivor of an employee or of an annuitant. "Survivor" also
3 includes: (1) the surviving dependent of a person who
4 satisfies the definition of "employee" except that such
5 person is made ineligible to participate in the State
6 Universities Retirement System by clause (4) of subsection
7 (a) the first paragraph of Section 15-107 of the Illinois
8 Pension Code; and (2) the surviving dependent of any person
9 formerly employed by the University of Illinois in the
10 Cooperative Extension Service who would be an annuitant
11 except for the fact that such person was made ineligible to
12 participate in the State Universities Retirement System by
13 clause (4) of subsection (a) the first paragraph of Section
14 15-107 of the Illinois Pension Code.
15 (q-5) "New SERS survivor" means a survivor, as defined
16 in subsection (q), whose annuity is paid under Article 14 of
17 the Illinois Pension Code and is based on the death of (i) an
18 employee whose death occurs on or after January 1, 1998, or
19 (ii) a new SERS annuitant as defined in subsection (b-5).
20 (q-6) "New SURS survivor" means a survivor, as defined
21 in subsection (q), whose annuity is paid under Article 15 of
22 the Illinois Pension Code and is based on the death of (i) an
23 employee whose death occurs on or after January 1, 1998, (ii)
24 a new SURS annuitant as defined in subsection (b-6), or (iii)
25 a new SURS retired employee as defined in subsection (p-6).
26 (r) "Medical services" means the services provided
27 within the scope of their licenses by practitioners in all
28 categories licensed under the Medical Practice Act of 1987.
29 (s) "Unit of local government" means any county,
30 municipality, township, school district, special district or
31 other unit, designated as a unit of local government by law,
32 which exercises limited governmental powers or powers in
33 respect to limited governmental subjects, any not-for-profit
34 association with a membership that primarily includes
HB0110 Enrolled -9- LRB9000902EGfg
1 townships and township officials, that has duties that
2 include provision of research service, dissemination of
3 information, and other acts for the purpose of improving
4 township government, and that is funded wholly or partly in
5 accordance with Section 85-15 of the Township Code; any
6 not-for-profit corporation or association, with a membership
7 consisting primarily of municipalities, that operates its own
8 utility system, and provides research, training,
9 dissemination of information, or other acts to promote
10 cooperation between and among municipalities that provide
11 utility services and for the advancement of the goals and
12 purposes of its membership; and the Illinois Association of
13 Park Districts. "Qualified local government" means a unit of
14 local government approved by the Director and participating
15 in a program created under subsection (i) of Section 10 of
16 this Act.
17 (t) "Qualified rehabilitation facility" means any
18 not-for-profit organization that is accredited by the
19 Commission on Accreditation of Rehabilitation Facilities or
20 certified by the Department of Mental Health and
21 Developmental Disabilities to provide services to persons
22 with disabilities and which receives funds from the State of
23 Illinois for providing those services, approved by the
24 Director and participating in a program created under
25 subsection (j) of Section 10 of this Act.
26 (u) "Qualified domestic violence shelter or service"
27 means any Illinois domestic violence shelter or service and
28 its administrative offices funded by the Illinois Department
29 of Public Aid, approved by the Director and participating in
30 a program created under subsection (k) of Section 10.
31 (v) "TRS benefit recipient" means a person who:
32 (1) is not a "member" as defined in this Section;
33 and
34 (2) is receiving a monthly benefit or retirement
HB0110 Enrolled -10- LRB9000902EGfg
1 annuity under Article 16 of the Illinois Pension Code;
2 and
3 (3) either (i) has at least 8 years of creditable
4 service under Article 16 of the Illinois Pension Code, or
5 (ii) was enrolled in the health insurance program offered
6 under that Article on January 1, 1996, or (iii) is the
7 survivor of a benefit recipient who had at least 8 years
8 of creditable service under Article 16 of the Illinois
9 Pension Code or was enrolled in the health insurance
10 program offered under that Article on the effective date
11 of this amendatory Act of 1995, or (iv) is a recipient or
12 survivor of a recipient of a disability benefit under
13 Article 16 of the Illinois Pension Code.
14 (w) "TRS dependent beneficiary" means a person who:
15 (1) is not a "member" or "dependent" as defined in
16 this Section; and
17 (2) is a TRS benefit recipient's: (A) spouse, (B)
18 dependent parent who is receiving at least half of his or
19 her support from the TRS benefit recipient, or (C)
20 unmarried natural or adopted child who is (i) under age
21 19, or (ii) enrolled as a full-time student in an
22 accredited school, financially dependent upon the TRS
23 benefit recipient, eligible as a dependent for Illinois
24 State income tax purposes, and either is under age 24 or
25 was, on January 1, 1996, participating as a dependent
26 beneficiary in the health insurance program offered under
27 Article 16 of the Illinois Pension Code, or (iii) age 19
28 or over who is mentally or physically handicapped as
29 defined in the Illinois Insurance Code.
30 (x) "Military leave with pay and benefits" refers to
31 individuals in basic training for reserves, special/advanced
32 training, annual training, emergency call up, or activation
33 by the President of the United States with approved pay and
34 benefits.
HB0110 Enrolled -11- LRB9000902EGfg
1 (y) "Military leave without pay and benefits" refers to
2 individuals who enlist for active duty in a regular component
3 of the U.S. Armed Forces or other duty not specified or
4 authorized under military leave with pay and benefits.
5 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
6 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
7 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
8 eff. 8-9-96; revised 8-23-96.)
9 (Text of Section after amendment by P.A. 89-507)
10 Sec. 3. Definitions. Unless the context otherwise
11 requires, the following words and phrases as used in this Act
12 shall have the following meanings. The Department may define
13 these and other words and phrases separately for the purpose
14 of implementing specific programs providing benefits under
15 this Act.
16 (a) "Administrative service organization" means any
17 person, firm or corporation experienced in the handling of
18 claims which is fully qualified, financially sound and
19 capable of meeting the service requirements of a contract of
20 administration executed with the Department.
21 (b) "Annuitant" means (1) an employee who retires, or
22 has retired, on or after January 1, 1966 on an immediate
23 annuity under the provisions of Articles 2, 14, 15 (including
24 an employee who has retired and is receiving a retirement
25 annuity under an optional program established under Section
26 15-158.2 and who would also be eligible for a retirement
27 annuity had that person been a participant in the State
28 University Retirement System), paragraphs (b) or (c) of
29 Section 16-106, or Article 18 of the Illinois Pension Code;
30 (2) any person who was receiving group insurance coverage
31 under this Act as of March 31, 1978 by reason of his status
32 as an annuitant, even though the annuity in relation to which
33 such coverage was provided is a proportional annuity based on
34 less than the minimum period of service required for a
HB0110 Enrolled -12- LRB9000902EGfg
1 retirement annuity in the system involved; (3) any person not
2 otherwise covered by this Act who has retired as a
3 participating member under Article 2 of the Illinois Pension
4 Code but is ineligible for the retirement annuity under
5 Section 2-119 of the Illinois Pension Code; (4) the spouse of
6 any person who is receiving a retirement annuity under
7 Article 18 of the Illinois Pension Code and who is covered
8 under a group health insurance program sponsored by a
9 governmental employer other than the State of Illinois and
10 who has irrevocably elected to waive his or her coverage
11 under this Act and to have his or her spouse considered as
12 the "annuitant" under this Act and not as a "dependent"; or
13 (5) an employee who retires, or has retired, from a qualified
14 position, as determined according to rules promulgated by the
15 Director, under a qualified local government or a qualified
16 rehabilitation facility or a qualified domestic violence
17 shelter or service. (For definition of "retired employee",
18 see (p) post).
19 (b-5) "New SERS annuitant" means a person who, on or
20 after January 1, 1998, becomes an annuitant, as defined in
21 subsection (b), by virtue of beginning to receive a
22 retirement annuity under Article 14 of the Illinois Pension
23 Code, and is eligible to participate in the basic program of
24 group health benefits provided for annuitants under this Act.
25 (b-6) "New SURS annuitant" means a person who, on or
26 after January 1, 1998, becomes an annuitant, as defined in
27 subsection (b), by virtue of beginning to receive a
28 retirement annuity under Article 15 of the Illinois Pension
29 Code, and is eligible to participate in the basic program of
30 group health benefits provided for annuitants under this Act.
31 (c) "Carrier" means (1) an insurance company, a
32 corporation organized under the Limited Health Service
33 Organization Act or the Voluntary Health Services Plan Act, a
34 partnership, or other nongovernmental organization, which is
HB0110 Enrolled -13- LRB9000902EGfg
1 authorized to do group life or group health insurance
2 business in Illinois, or (2) the State of Illinois as a
3 self-insurer.
4 (d) "Compensation" means salary or wages payable on a
5 regular payroll by the State Treasurer on a warrant of the
6 State Comptroller out of any State, trust or federal fund, or
7 by the Governor of the State through a disbursing officer of
8 the State out of a trust or out of federal funds, or by any
9 Department out of State, trust, federal or other funds held
10 by the State Treasurer or the Department, to any person for
11 personal services currently performed, and ordinary or
12 accidental disability benefits under Articles 2, 14, 15
13 (including ordinary or accidental disability benefits under
14 an optional program established under Section 15-158.2),
15 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
16 Illinois Pension Code, for disability incurred after January
17 1, 1966, or benefits payable under the Workers' Compensation
18 or Occupational Diseases Act or benefits payable under a sick
19 pay plan established in accordance with Section 36 of the
20 State Finance Act. "Compensation" also means salary or wages
21 paid to an employee of any qualified local government or
22 qualified rehabilitation facility or a qualified domestic
23 violence shelter or service.
24 (e) "Commission" means the State Employees Group
25 Insurance Advisory Commission authorized by this Act.
26 Commencing July 1, 1984, "Commission" as used in this Act
27 means the Illinois Economic and Fiscal Commission as
28 established by the Legislative Commission Reorganization Act
29 of 1984.
30 (f) "Contributory", when referred to as contributory
31 coverage, shall mean optional coverages or benefits elected
32 by the member toward the cost of which such member makes
33 contribution, or which are funded in whole or in part through
34 the acceptance of a reduction in earnings or the foregoing of
HB0110 Enrolled -14- LRB9000902EGfg
1 an increase in earnings by an employee, as distinguished from
2 noncontributory coverage or benefits which are paid entirely
3 by the State of Illinois without reduction of the member's
4 salary.
5 (g) "Department" means any department, institution,
6 board, commission, officer, court or any agency of the State
7 government receiving appropriations and having power to
8 certify payrolls to the Comptroller authorizing payments of
9 salary and wages against such appropriations as are made by
10 the General Assembly from any State fund, or against trust
11 funds held by the State Treasurer and includes boards of
12 trustees of the retirement systems created by Articles 2, 14,
13 15, 16 and 18 of the Illinois Pension Code. "Department"
14 also includes the Illinois Comprehensive Health Insurance
15 Board and the Illinois Rural Bond Bank.
16 (h) "Dependent", when the term is used in the context of
17 the health and life plan, means a member's spouse and any
18 unmarried child (1) from birth to age 19 including an adopted
19 child, a child who lives with the member from the time of the
20 filing of a petition for adoption until entry of an order of
21 adoption, a stepchild or recognized child who lives with the
22 member in a parent-child relationship, or a child who lives
23 with the member if such member is a court appointed guardian
24 of the child, or (2) age 19 to 23 enrolled as a full-time
25 student in any accredited school, financially dependent upon
26 the member, and eligible as a dependent for Illinois State
27 income tax purposes, or (3) age 19 or over who is mentally or
28 physically handicapped as defined in the Illinois Insurance
29 Code. For the health plan only, the term "dependent" also
30 includes any person enrolled prior to the effective date of
31 this Section who is dependent upon the member to the extent
32 that the member may claim such person as a dependent for
33 Illinois State income tax deduction purposes; no other such
34 person may be enrolled.
HB0110 Enrolled -15- LRB9000902EGfg
1 (i) "Director" means the Director of the Illinois
2 Department of Central Management Services.
3 (j) "Eligibility period" means the period of time a
4 member has to elect enrollment in programs or to select
5 benefits without regard to age, sex or health.
6 (k) "Employee" means and includes each officer or
7 employee in the service of a department who (1) receives his
8 compensation for service rendered to the department on a
9 warrant issued pursuant to a payroll certified by a
10 department or on a warrant or check issued and drawn by a
11 department upon a trust, federal or other fund or on a
12 warrant issued pursuant to a payroll certified by an elected
13 or duly appointed officer of the State or who receives
14 payment of the performance of personal services on a warrant
15 issued pursuant to a payroll certified by a Department and
16 drawn by the Comptroller upon the State Treasurer against
17 appropriations made by the General Assembly from any fund or
18 against trust funds held by the State Treasurer, and (2) is
19 employed full-time or part-time in a position normally
20 requiring actual performance of duty during not less than 1/2
21 of a normal work period, as established by the Director in
22 cooperation with each department, except that persons elected
23 by popular vote will be considered employees during the
24 entire term for which they are elected regardless of hours
25 devoted to the service of the State, and (3) except that
26 "employee" does not include any person who is not eligible by
27 reason of such person's employment to participate in one of
28 the State retirement systems under Articles 2, 14, 15 (either
29 the regular Article 15 system or an optional program
30 established under Section 15-158.2) or 18, or under paragraph
31 (b) or (c) of Section 16-106, of the Illinois Pension Code,
32 but such term does include persons who are employed during
33 the 6 month qualifying period under Article 14 of the
34 Illinois Pension Code. Such term also includes any person
HB0110 Enrolled -16- LRB9000902EGfg
1 who (1) after January 1, 1966, is receiving ordinary or
2 accidental disability benefits under Articles 2, 14, 15
3 (including ordinary or accidental disability benefits under
4 an optional program established under Section 15-158.2),
5 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
6 Illinois Pension Code, for disability incurred after January
7 1, 1966, (2) receives total permanent or total temporary
8 disability under the Workers' Compensation Act or
9 Occupational Disease Act as a result of injuries sustained or
10 illness contracted in the course of employment with the State
11 of Illinois, or (3) is not otherwise covered under this Act
12 and has retired as a participating member under Article 2 of
13 the Illinois Pension Code but is ineligible for the
14 retirement annuity under Section 2-119 of the Illinois
15 Pension Code. However, a person who satisfies the criteria
16 of the foregoing definition of "employee" except that such
17 person is made ineligible to participate in the State
18 Universities Retirement System by clause (4) of subsection
19 (a) the first paragraph of Section 15-107 of the Illinois
20 Pension Code is also an "employee" for the purposes of this
21 Act. "Employee" also includes any person receiving or
22 eligible for benefits under a sick pay plan established in
23 accordance with Section 36 of the State Finance Act.
24 "Employee" also includes each officer or employee in the
25 service of a qualified local government, including persons
26 appointed as trustees of sanitary districts regardless of
27 hours devoted to the service of the sanitary district, and
28 each employee in the service of a qualified rehabilitation
29 facility and each full-time employee in the service of a
30 qualified domestic violence shelter or service, as determined
31 according to rules promulgated by the Director.
32 (l) "Member" means an employee, annuitant, retired
33 employee or survivor.
34 (m) "Optional coverages or benefits" means those
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1 coverages or benefits available to the member on his or her
2 voluntary election, and at his or her own expense.
3 (n) "Program" means the group life insurance, health
4 benefits and other employee benefits designed and contracted
5 for by the Director under this Act.
6 (o) "Health plan" means a self-insured health insurance
7 program offered by the State of Illinois for the purposes of
8 benefiting employees by means of providing, among others,
9 wellness programs, utilization reviews, second opinions and
10 medical fee reviews, as well as for paying for hospital and
11 medical care up to the maximum coverage provided by the plan,
12 to its members and their dependents.
13 (p) "Retired employee" means any person who would be an
14 annuitant as that term is defined herein but for the fact
15 that such person retired prior to January 1, 1966. Such term
16 also includes any person formerly employed by the University
17 of Illinois in the Cooperative Extension Service who would be
18 an annuitant but for the fact that such person was made
19 ineligible to participate in the State Universities
20 Retirement System by clause (4) of subsection (a) the first
21 paragraph of Section 15-107 of the Illinois Pension Code.
22 (p-6) "New SURS retired employee" means a person who, on
23 or after January 1, 1998, becomes a retired employee, as
24 defined in subsection (p), by virtue of being a person
25 formerly employed by the University of Illinois in the
26 Cooperative Extension Service who would be an annuitant but
27 for the fact that he or she was made ineligible to
28 participate in the State Universities Retirement System by
29 clause (4) of subsection (a) of Section 15-107 of the
30 Illinois Pension Code, and who is eligible to participate in
31 the basic program of group health benefits provided for
32 retired employees under this Act.
33 (q) "Survivor" means a person receiving an annuity as a
34 survivor of an employee or of an annuitant. "Survivor" also
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1 includes: (1) the surviving dependent of a person who
2 satisfies the definition of "employee" except that such
3 person is made ineligible to participate in the State
4 Universities Retirement System by clause (4) of subsection
5 (a) the first paragraph of Section 15-107 of the Illinois
6 Pension Code; and (2) the surviving dependent of any person
7 formerly employed by the University of Illinois in the
8 Cooperative Extension Service who would be an annuitant
9 except for the fact that such person was made ineligible to
10 participate in the State Universities Retirement System by
11 clause (4) of subsection (a) the first paragraph of Section
12 15-107 of the Illinois Pension Code.
13 (q-5) "New SERS survivor" means a survivor, as defined
14 in subsection (q), whose annuity is paid under Article 14 of
15 the Illinois Pension Code and is based on the death of (i) an
16 employee whose death occurs on or after January 1, 1998, or
17 (ii) a new SERS annuitant as defined in subsection (b-5).
18 (q-6) "New SURS survivor" means a survivor, as defined
19 in subsection (q), whose annuity is paid under Article 15 of
20 the Illinois Pension Code and is based on the death of (i) an
21 employee whose death occurs on or after January 1, 1998, (ii)
22 a new SURS annuitant as defined in subsection (b-6), or (iii)
23 a new SURS retired employee as defined in subsection (p-6).
24 (r) "Medical services" means the services provided
25 within the scope of their licenses by practitioners in all
26 categories licensed under the Medical Practice Act of 1987.
27 (s) "Unit of local government" means any county,
28 municipality, township, school district, special district or
29 other unit, designated as a unit of local government by law,
30 which exercises limited governmental powers or powers in
31 respect to limited governmental subjects, any not-for-profit
32 association with a membership that primarily includes
33 townships and township officials, that has duties that
34 include provision of research service, dissemination of
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1 information, and other acts for the purpose of improving
2 township government, and that is funded wholly or partly in
3 accordance with Section 85-15 of the Township Code; any
4 not-for-profit corporation or association, with a membership
5 consisting primarily of municipalities, that operates its own
6 utility system, and provides research, training,
7 dissemination of information, or other acts to promote
8 cooperation between and among municipalities that provide
9 utility services and for the advancement of the goals and
10 purposes of its membership; and the Illinois Association of
11 Park Districts. "Qualified local government" means a unit of
12 local government approved by the Director and participating
13 in a program created under subsection (i) of Section 10 of
14 this Act.
15 (t) "Qualified rehabilitation facility" means any
16 not-for-profit organization that is accredited by the
17 Commission on Accreditation of Rehabilitation Facilities or
18 certified by the Department of Human Services (as successor
19 to the Department of Mental Health and Developmental
20 Disabilities) to provide services to persons with
21 disabilities and which receives funds from the State of
22 Illinois for providing those services, approved by the
23 Director and participating in a program created under
24 subsection (j) of Section 10 of this Act.
25 (u) "Qualified domestic violence shelter or service"
26 means any Illinois domestic violence shelter or service and
27 its administrative offices funded by the Department of Human
28 Services (as successor to the Illinois Department of Public
29 Aid), approved by the Director and participating in a program
30 created under subsection (k) of Section 10.
31 (v) "TRS benefit recipient" means a person who:
32 (1) is not a "member" as defined in this Section;
33 and
34 (2) is receiving a monthly benefit or retirement
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1 annuity under Article 16 of the Illinois Pension Code;
2 and
3 (3) either (i) has at least 8 years of creditable
4 service under Article 16 of the Illinois Pension Code, or
5 (ii) was enrolled in the health insurance program offered
6 under that Article on January 1, 1996, or (iii) is the
7 survivor of a benefit recipient who had at least 8 years
8 of creditable service under Article 16 of the Illinois
9 Pension Code or was enrolled in the health insurance
10 program offered under that Article on the effective date
11 of this amendatory Act of 1995, or (iv) is a recipient or
12 survivor of a recipient of a disability benefit under
13 Article 16 of the Illinois Pension Code.
14 (w) "TRS dependent beneficiary" means a person who:
15 (1) is not a "member" or "dependent" as defined in
16 this Section; and
17 (2) is a TRS benefit recipient's: (A) spouse, (B)
18 dependent parent who is receiving at least half of his or
19 her support from the TRS benefit recipient, or (C)
20 unmarried natural or adopted child who is (i) under age
21 19, or (ii) enrolled as a full-time student in an
22 accredited school, financially dependent upon the TRS
23 benefit recipient, eligible as a dependent for Illinois
24 State income tax purposes, and either is under age 24 or
25 was, on January 1, 1996, participating as a dependent
26 beneficiary in the health insurance program offered under
27 Article 16 of the Illinois Pension Code, or (iii) age 19
28 or over who is mentally or physically handicapped as
29 defined in the Illinois Insurance Code.
30 (x) "Military leave with pay and benefits" refers to
31 individuals in basic training for reserves, special/advanced
32 training, annual training, emergency call up, or activation
33 by the President of the United States with approved pay and
34 benefits.
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1 (y) "Military leave without pay and benefits" refers to
2 individuals who enlist for active duty in a regular component
3 of the U.S. Armed Forces or other duty not specified or
4 authorized under military leave with pay and benefits.
5 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
6 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
7 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
8 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
9 (5 ILCS 375/10) (from Ch. 127, par. 530)
10 Sec. 10. Payments by State; premiums.
11 (a) The State shall pay the cost of basic
12 non-contributory group life insurance and, subject to member
13 paid contributions set by the Department or required by this
14 Section, the basic program of group health benefits on each
15 eligible member, except a member, not otherwise covered by
16 this Act, who has retired as a participating member under
17 Article 2 of the Illinois Pension Code but is ineligible for
18 the retirement annuity under Section 2-119 of the Illinois
19 Pension Code, and part of each eligible member's and retired
20 member's premiums for health insurance coverage for enrolled
21 dependents as provided by Section 9. The State shall pay the
22 cost of the basic program of group health benefits only after
23 benefits are reduced by the amount of benefits covered by
24 Medicare for all retired members and retired dependents aged
25 65 years or older who are entitled to benefits under Social
26 Security or the Railroad Retirement system or who had
27 sufficient Medicare-covered government employment except that
28 such reduction in benefits shall apply only to those retired
29 members or retired dependents who (1) first become eligible
30 for such Medicare coverage on or after July 1, 1992; or (2)
31 remain eligible for, but no longer receive Medicare coverage
32 which they had been receiving on or after July 1, 1992. The
33 Department may determine the aggregate level of the State's
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1 contribution on the basis of actual cost of medical services
2 adjusted for age, sex or geographic or other demographic
3 characteristics which affect the costs of such programs.
4 (a-1) Beginning January 1, 1998, for each person who
5 becomes a new SERS annuitant and participates in the basic
6 program of group health benefits, the State shall contribute
7 toward the cost of the annuitant's coverage under the basic
8 program of group health benefits an amount equal to 5% of
9 that cost for each full year of creditable service upon which
10 the annuitant's retirement annuity is based, up to a maximum
11 of 100% for an annuitant with 20 or more years of creditable
12 service. The remainder of the cost of a new SERS annuitant's
13 coverage under the basic program of group health benefits
14 shall be the responsibility of the annuitant.
15 (a-2) Beginning January 1, 1998, for each person who
16 becomes a new SERS survivor and participates in the basic
17 program of group health benefits, the State shall contribute
18 toward the cost of the survivor's coverage under the basic
19 program of group health benefits an amount equal to 5% of
20 that cost for each full year of the deceased employee's or
21 deceased annuitant's creditable service in the State
22 Employees' Retirement System of Illinois on the date of
23 death, up to a maximum of 100% for a survivor of an employee
24 or annuitant with 20 or more years of creditable service.
25 The remainder of the cost of the new SERS survivor's coverage
26 under the basic program of group health benefits shall be the
27 responsibility of the survivor.
28 (a-3) Beginning January 1, 1998, for each person who
29 becomes a new SURS annuitant and participates in the basic
30 program of group health benefits, the State shall contribute
31 toward the cost of the annuitant's coverage under the basic
32 program of group health benefits an amount equal to 5% of
33 that cost for each full year of creditable service upon which
34 the annuitant's retirement annuity is based, up to a maximum
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1 of 100% for an annuitant with 20 or more years of creditable
2 service. The remainder of the cost of a new SURS annuitant's
3 coverage under the basic program of group health benefits
4 shall be the responsibility of the annuitant.
5 (a-4) Beginning January 1, 1998, for each person who
6 becomes a new SURS retired employee and participates in the
7 basic program of group health benefits, the State shall
8 contribute toward the cost of the retired employee's coverage
9 under the basic program of group health benefits an amount
10 equal to 5% of that cost for each full year that the retired
11 employee was an employee as defined in Section 3, up to a
12 maximum of 100% for a retired employee who was an employee
13 for 20 or more years. The remainder of the cost of a new
14 SURS retired employee's coverage under the basic program of
15 group health benefits shall be the responsibility of the
16 retired employee.
17 (a-5) Beginning January 1, 1998, for each person who
18 becomes a new SURS survivor and participates in the basic
19 program of group health benefits, the State shall contribute
20 toward the cost of the survivor's coverage under the basic
21 program of group health benefits an amount equal to 5% of
22 that cost for each full year of the deceased employee's or
23 deceased annuitant's creditable service in the State
24 Employees' Retirement System of Illinois on the date of
25 death, up to a maximum of 100% for a survivor of an employee
26 or annuitant with 20 or more years of creditable service.
27 The remainder of the cost of the new SURS survivor's coverage
28 under the basic program of group health benefits shall be the
29 responsibility of the survivor.
30 (a-6) A new SERS annuitant, new SERS survivor, new SURS
31 annuitant, new SURS retired employee, or new SURS survivor
32 may waive or terminate coverage in the program of group
33 health benefits. Any such annuitant, survivor, or retired
34 employee who has waived or terminated coverage may enroll or
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1 re-enroll in the program of group health benefits only during
2 the annual benefit choice period, as determined by the
3 Director; except that in the event of termination of coverage
4 due to nonpayment of premiums, the annuitant, survivor, or
5 retired employee may not re-enroll in the program.
6 (a-7) No later than May 1 of each calendar year, the
7 Director of Central Management Services shall certify in
8 writing to the Executive Secretary of the State Employee's
9 Retirement System the amounts of the Medicare supplement
10 health care premiums and the amounts of the health care
11 premiums for all other retirees who are not Medicare
12 eligible.
13 A separate calculation of the premiums based upon the
14 actual cost of each health care plan shall be so certified.
15 The Director of Central Management Services shall provide
16 to the Executive Secretary of the State Employee's Retirement
17 System such information statistics, and other data as he/she
18 may require to review the premium amounts certified by the
19 Director of Central Management Services.
20 (b) State employees who become eligible for this program
21 on or after January 1, 1980 in positions, normally requiring
22 actual performance of duty not less than 1/2 of a normal work
23 period but not equal to that of a normal work period, shall
24 be given the option of participating in the available
25 program. If the employee elects coverage, the State shall
26 contribute on behalf of such employee to the cost of the
27 employee's benefit and any applicable dependent supplement,
28 that sum which bears the same percentage as that percentage
29 of time the employee regularly works when compared to normal
30 work period.
31 (c) The basic non-contributory coverage from the basic
32 program of group health benefits shall be continued for each
33 employee not in pay status or on active service by reason of
34 (1) leave of absence due to illness or injury, (2) authorized
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1 educational leave of absence or sabbatical leave, or (3)
2 military leave with pay and benefits. This coverage shall
3 continue until expiration of authorized leave and return to
4 active service, but not to exceed 24 months for leaves under
5 item (1) or (2). This 24-month limitation and the requirement
6 of returning to active service shall not apply to persons
7 receiving ordinary or accidental disability benefits or
8 retirement benefits through the appropriate State retirement
9 system or benefits under the Workers' Compensation or
10 Occupational Disease Act.
11 (d) The basic group life insurance coverage shall
12 continue, with full State contribution, where such person is
13 (1) absent from active service by reason of disability
14 arising from any cause other than self-inflicted, (2) on
15 authorized educational leave of absence or sabbatical leave,
16 or (3) on military leave with pay and benefits.
17 (e) Where the person is in non-pay status for a period
18 in excess of 30 days or on leave of absence, other than by
19 reason of disability, educational or sabbatical leave, or
20 military leave with pay and benefits, such person may
21 continue coverage only by making personal payment equal to
22 the amount normally contributed by the State on such person's
23 behalf. Such payments and coverage may be continued: (1)
24 until such time as the person returns to a status eligible
25 for coverage at State expense, but not to exceed 24 months,
26 (2) until such person's employment or annuitant status with
27 the State is terminated, or (3) for a maximum period of 4
28 years for members on military leave with pay and benefits and
29 military leave without pay and benefits (exclusive of any
30 additional service imposed pursuant to law).
31 (f) The Department shall establish by rule the extent
32 to which other employee benefits will continue for persons in
33 non-pay status or who are not in active service.
34 (g) The State shall not pay the cost of the basic
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1 non-contributory group life insurance, program of health
2 benefits and other employee benefits for members who are
3 survivors as defined by paragraphs (1) and (2) of subsection
4 (q) of Section 3 of this Act. The costs of benefits for
5 these survivors shall be paid by the survivors or by the
6 University of Illinois Cooperative Extension Service, or any
7 combination thereof.
8 (h) Those persons occupying positions with any
9 department as a result of emergency appointments pursuant to
10 Section 8b.8 of the Personnel Code who are not considered
11 employees under this Act shall be given the option of
12 participating in the programs of group life insurance, health
13 benefits and other employee benefits. Such persons electing
14 coverage may participate only by making payment equal to the
15 amount normally contributed by the State for similarly
16 situated employees. Such amounts shall be determined by the
17 Director. Such payments and coverage may be continued until
18 such time as the person becomes an employee pursuant to this
19 Act or such person's appointment is terminated.
20 (i) Any unit of local government within the State of
21 Illinois may apply to the Director to have its employees,
22 annuitants, and their dependents provided group health
23 coverage under this Act on a non-insured basis. To
24 participate, a unit of local government must agree to enroll
25 all of its employees, who may select coverage under either
26 the State group health insurance plan or a health maintenance
27 organization that has contracted with the State to be
28 available as a health care provider for employees as defined
29 in this Act. A unit of local government must remit the
30 entire cost of providing coverage under the State group
31 health insurance plan or, for coverage under a health
32 maintenance organization, an amount determined by the
33 Director based on an analysis of the sex, age, geographic
34 location, or other relevant demographic variables for its
HB0110 Enrolled -27- LRB9000902EGfg
1 employees, except that the unit of local government shall not
2 be required to enroll those of its employees who are covered
3 spouses or dependents under this plan or another group policy
4 or plan providing health benefits as long as (1) an
5 appropriate official from the unit of local government
6 attests that each employee not enrolled is a covered spouse
7 or dependent under this plan or another group policy or plan,
8 and (2) at least 85% of the employees are enrolled and the
9 unit of local government remits the entire cost of providing
10 coverage to those employees. Employees of a participating
11 unit of local government who are not enrolled due to coverage
12 under another group health policy or plan may enroll at a
13 later date subject to submission of satisfactory evidence of
14 insurability and provided that no benefits shall be payable
15 for services incurred during the first 6 months of coverage
16 to the extent the services are in connection with any
17 pre-existing condition. A participating unit of local
18 government may also elect to cover its annuitants. Dependent
19 coverage shall be offered on an optional basis, with the
20 costs paid by the unit of local government, its employees, or
21 some combination of the two as determined by the unit of
22 local government. The unit of local government shall be
23 responsible for timely collection and transmission of
24 dependent premiums.
25 The Director shall annually determine monthly rates of
26 payment, subject to the following constraints:
27 (1) In the first year of coverage, the rates shall
28 be equal to the amount normally charged to State
29 employees for elected optional coverages or for enrolled
30 dependents coverages or other contributory coverages, or
31 contributed by the State for basic insurance coverages on
32 behalf of its employees, adjusted for differences between
33 State employees and employees of the local government in
34 age, sex, geographic location or other relevant
HB0110 Enrolled -28- LRB9000902EGfg
1 demographic variables, plus an amount sufficient to pay
2 for the additional administrative costs of providing
3 coverage to employees of the unit of local government and
4 their dependents.
5 (2) In subsequent years, a further adjustment shall
6 be made to reflect the actual prior years' claims
7 experience of the employees of the unit of local
8 government.
9 In the case of coverage of local government employees
10 under a health maintenance organization, the Director shall
11 annually determine for each participating unit of local
12 government the maximum monthly amount the unit may contribute
13 toward that coverage, based on an analysis of (i) the age,
14 sex, geographic location, and other relevant demographic
15 variables of the unit's employees and (ii) the cost to cover
16 those employees under the State group health insurance plan.
17 The Director may similarly determine the maximum monthly
18 amount each unit of local government may contribute toward
19 coverage of its employees' dependents under a health
20 maintenance organization.
21 Monthly payments by the unit of local government or its
22 employees for group health insurance or health maintenance
23 organization coverage shall be deposited in the Local
24 Government Health Insurance Reserve Fund. The Local
25 Government Health Insurance Reserve Fund shall be a
26 continuing fund not subject to fiscal year limitations. All
27 expenditures from this fund shall be used for payments for
28 health care benefits for local government and rehabilitation
29 facility employees, annuitants, and dependents, and to
30 reimburse the Department or its administrative service
31 organization for all expenses incurred in the administration
32 of benefits. No other State funds may be used for these
33 purposes.
34 A local government employer's participation or desire to
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1 participate in a program created under this subsection shall
2 not limit that employer's duty to bargain with the
3 representative of any collective bargaining unit of its
4 employees.
5 (j) Any rehabilitation facility within the State of
6 Illinois may apply to the Director to have its employees,
7 annuitants, and their dependents provided group health
8 coverage under this Act on a non-insured basis. To
9 participate, a rehabilitation facility must agree to enroll
10 all of its employees and remit the entire cost of providing
11 such coverage for its employees, except that the
12 rehabilitation facility shall not be required to enroll those
13 of its employees who are covered spouses or dependents under
14 this plan or another group policy or plan providing health
15 benefits as long as (1) an appropriate official from the
16 rehabilitation facility attests that each employee not
17 enrolled is a covered spouse or dependent under this plan or
18 another group policy or plan, and (2) at least 85% of the
19 employees are enrolled and the rehabilitation facility remits
20 the entire cost of providing coverage to those employees.
21 Employees of a participating rehabilitation facility who are
22 not enrolled due to coverage under another group health
23 policy or plan may enroll at a later date subject to
24 submission of satisfactory evidence of insurability and
25 provided that no benefits shall be payable for services
26 incurred during the first 6 months of coverage to the extent
27 the services are in connection with any pre-existing
28 condition. A participating rehabilitation facility may also
29 elect to cover its annuitants. Dependent coverage shall be
30 offered on an optional basis, with the costs paid by the
31 rehabilitation facility, its employees, or some combination
32 of the 2 as determined by the rehabilitation facility. The
33 rehabilitation facility shall be responsible for timely
34 collection and transmission of dependent premiums.
HB0110 Enrolled -30- LRB9000902EGfg
1 The Director shall annually determine quarterly rates of
2 payment, subject to the following constraints:
3 (1) In the first year of coverage, the rates shall
4 be equal to the amount normally charged to State
5 employees for elected optional coverages or for enrolled
6 dependents coverages or other contributory coverages on
7 behalf of its employees, adjusted for differences between
8 State employees and employees of the rehabilitation
9 facility in age, sex, geographic location or other
10 relevant demographic variables, plus an amount sufficient
11 to pay for the additional administrative costs of
12 providing coverage to employees of the rehabilitation
13 facility and their dependents.
14 (2) In subsequent years, a further adjustment shall
15 be made to reflect the actual prior years' claims
16 experience of the employees of the rehabilitation
17 facility.
18 Monthly payments by the rehabilitation facility or its
19 employees for group health insurance shall be deposited in
20 the Local Government Health Insurance Reserve Fund.
21 (k) Any domestic violence shelter or service within the
22 State of Illinois may apply to the Director to have its
23 employees, annuitants, and their dependents provided group
24 health coverage under this Act on a non-insured basis. To
25 participate, a domestic violence shelter or service must
26 agree to enroll all of its employees and pay the entire cost
27 of providing such coverage for its employees. A
28 participating domestic violence shelter may also elect to
29 cover its annuitants. Dependent coverage shall be offered on
30 an optional basis, with employees, or some combination of the
31 2 as determined by the domestic violence shelter or service.
32 The domestic violence shelter or service shall be responsible
33 for timely collection and transmission of dependent premiums.
34 The Director shall annually determine quarterly rates of
HB0110 Enrolled -31- LRB9000902EGfg
1 payment, subject to the following constraints:
2 (1) In the first year of coverage, the rates shall
3 be equal to the amount normally charged to State
4 employees for elected optional coverages or for enrolled
5 dependents coverages or other contributory coverages on
6 behalf of its employees, adjusted for differences between
7 State employees and employees of the domestic violence
8 shelter or service in age, sex, geographic location or
9 other relevant demographic variables, plus an amount
10 sufficient to pay for the additional administrative costs
11 of providing coverage to employees of the domestic
12 violence shelter or service and their dependents.
13 (2) In subsequent years, a further adjustment shall
14 be made to reflect the actual prior years' claims
15 experience of the employees of the domestic violence
16 shelter or service.
17 (3) In no case shall the rate be less than the
18 amount normally charged to State employees or contributed
19 by the State on behalf of its employees.
20 Monthly payments by the domestic violence shelter or
21 service or its employees for group health insurance shall be
22 deposited in the Local Government Health Insurance Reserve
23 Fund.
24 (l) A public community college or entity organized
25 pursuant to the Public Community College Act may apply to the
26 Director initially to have only annuitants not covered prior
27 to July 1, 1992 by the district's health plan provided health
28 coverage under this Act on a non-insured basis. The
29 community college must execute a 2-year contract to
30 participate in the Local Government Health Plan. Those
31 annuitants enrolled initially under this contract shall have
32 no benefits payable for services incurred during the first 6
33 months of coverage to the extent the services are in
34 connection with any pre-existing condition. Any annuitant
HB0110 Enrolled -32- LRB9000902EGfg
1 who may enroll after this initial enrollment period shall be
2 subject to submission of satisfactory evidence of
3 insurability and to the pre-existing conditions limitation.
4 The Director shall annually determine monthly rates of
5 payment subject to the following constraints: for those
6 community colleges with annuitants only enrolled, first year
7 rates shall be equal to the average cost to cover claims for
8 a State member adjusted for demographics, Medicare
9 participation, and other factors; and in the second year, a
10 further adjustment of rates shall be made to reflect the
11 actual first year's claims experience of the covered
12 annuitants.
13 (m) The Director shall adopt any rules deemed necessary
14 for implementation of this amendatory Act of 1989 (Public Act
15 86-978).
16 (Source: P.A. 88-45; 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
17 89-324, eff. 8-13-95; 89-626, eff. 8-9-96.)
18 Section 10. The State Finance Act is amended by changing
19 Section 14a as follows:
20 (30 ILCS 105/14a) (from Ch. 127, par. 150a)
21 Sec. 14a. Payments for unused benefits; use of sick
22 leave.
23 (a) Upon the death of a State employee, his or her
24 estate is entitled to receive from the appropriation for
25 personal services available for payment of his or her
26 compensation such sum for any accrued vacation period,
27 accrued overtime, and accrued qualifying sick leave as would
28 have been paid or allowed to such employee had he or she
29 survived and terminated his or her employment.
30 The State Comptroller shall draw a his warrant or
31 warrants against the appropriation, upon receipt of a proper
32 death certificate, payable to decedent's estate, or if no
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1 estate is opened, to the person or persons entitled thereto
2 under Section 25-1 of the Probate Act of 1975 upon receipt of
3 the affidavit referred to in that Section, for the sum due.
4 (b) The Department of Central Management Services shall
5 prescribe by rule the method of computing the accrued
6 vacation period and accrued overtime for all employees,
7 including those not otherwise subject to its jurisdiction,
8 and for the purposes of this Act the Department of Central
9 Management Services may require such reports as it deems
10 necessary. Accrued sick leave shall be computed as provided
11 in subsection (f) by multiplying 1/2 of the number of days of
12 accumulated sick leave by the daily rate of compensation
13 applicable to the employee at the time of his death,
14 retirement, resignation or other termination of service
15 described in this Section.
16 (c) Upon the retirement or resignation of a State
17 employee from State service, his or her accrued vacation,
18 overtime and qualifying sick leave shall be payable to the
19 employee in a single lump sum payment. However, if the
20 employee returns to employment in any capacity with the same
21 agency or department within 30 days of the termination of his
22 or her previous State employment, the employee must, as a
23 condition of his or her new State employment, repay the lump
24 sum amount within 30 days after his or her new State
25 employment commences. The amount repaid shall be deposited
26 into the fund from which the payment was made or the General
27 Revenue Fund, and the accrued vacation, overtime and sick
28 leave upon which the lump sum payment was based shall be
29 credited to the account of the employee in accordance with
30 the rules of the jurisdiction under which he or she is
31 employed.
32 (d) Upon the movement of a State employee from a
33 position subject to the Personnel Code to another State
34 position not subject to the Personnel Code, or to a position
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1 subject to the Personnel Code from a State position not
2 subject to the Personnel Code, or upon the movement of a
3 State employee of an institution or agency subject to the
4 State Universities Civil Service System from one such
5 institution or agency to another such institution or agency,
6 his or her accrued vacation, overtime and sick leave shall be
7 credited to the employee's account in accordance with the
8 rules of the jurisdiction to which the State employee moved.
9 However, if the rules preclude crediting the State employee's
10 total accrued vacation, overtime or sick leave to his or her
11 account at the jurisdiction to which he or she is to move,
12 the nontransferable nontransferrable accrued vacation,
13 overtime, and qualifying or sick leave shall be payable to
14 the employee in a single lump sum payment by the jurisdiction
15 from which he or she moved.
16 (e) Upon the death of a State employee or the
17 retirement, indeterminate layoff or resignation of a State
18 employee from State service, the employee's retirement or
19 disability benefits shall be computed as if the employee had
20 remained in the State employment at his or her most recent
21 rate of compensation until his or her accumulated unused
22 leave for vacation, overtime, sickness and personal business
23 would have been exhausted. The employing agency shall
24 certify, in writing to the employee, the unused leaves the
25 employee has accrued. This certification may be held by the
26 employee or forwarded to the retirement fund. Employing
27 agencies not covered by the Personnel Code shall certify, in
28 writing to the employee, the unused leaves the employee has
29 accrued.
30 (f) Accrued sick leave shall be computed by multiplying
31 1/2 of the number of days of accumulated sick leave by the
32 daily rate of compensation applicable to the employee at the
33 time of his or her death, retirement, resignation, or other
34 termination of service described in this Section.
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1 The payment for qualifying accrued sick leave after the
2 employee's death, retirement, resignation, or other
3 termination of service provided by Public Act 83-976 shall be
4 for sick leave days earned on or after January 1, 1984 and
5 before January 1, 1998. Sick leave accumulated on or after
6 January 1, 1998 is not compensable under this Section at the
7 time of the employee's death, retirement, resignation, or
8 other termination of service, but may be used to establish
9 retirement system service credit as provided in the Illinois
10 Pension Code.
11 The Department of Central Management Services shall
12 prescribe by rule the method of computing the accrued sick
13 leave days for all employees, including those not otherwise
14 subject to its jurisdiction. Beginning January 1, 1998, sick
15 leave used by an employee shall be charged against his or her
16 accumulated sick leave in the following order: first, sick
17 leave accumulated before January 1, 1984; then sick leave
18 accumulated on or after January 1, 1998; and finally sick
19 leave accumulated on or after January 1, 1984 but before
20 January 1, 1998.
21 (Source: P.A. 87-384; 87-721; 87-895; 87-1234.)
22 Section 12. The Illinois Pension Code is amended by
23 changing Sections 15-112, 15-113.2, 15-113.3, 15-113.4,
24 15-113.5, 15-113.7, 15-125, 15-136.2, 15-143, 15-153.2,
25 15-157, 15-167.2, 15-185, 15-190, 15-191, and adding Section
26 15-168.1 as follows:
27 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
28 Sec. 15-112. Final rate of earnings. "Final rate of
29 earnings": For an employee who is paid on an hourly basis or
30 who receives an annual salary in installments during 12
31 months of each academic year, the average annual earnings
32 during the 48 consecutive calendar month period ending with
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1 the last day of final termination of employment or the 4
2 consecutive academic years of service in which the employee's
3 earnings were the highest, whichever is greater. For any
4 other employee, the average annual earnings during the 4
5 consecutive academic years of service in which his or her
6 earnings were the highest. For an employee with less than 48
7 months or 4 consecutive academic years of service, the
8 average earnings during his or her entire period of service.
9 The earnings of an employee with more than 36 months of
10 service prior to the date of becoming a participant are, for
11 such period, considered equal to the average earnings during
12 the last 36 months of such service. For an employee on leave
13 of absence with pay, or on leave of absence without pay who
14 makes contributions during such leave, earnings are assumed
15 to be equal to the basic compensation on the date the leave
16 began. For an employee on disability leave, earnings are
17 assumed to be equal to the basic compensation on the date
18 disability occurs or the average earnings during the 24
19 months immediately preceding the month in which disability
20 occurs, whichever is greater.
21 If a participant is an employee for at least 6 months
22 during the academic year in which his or her employment is
23 terminated, the annual final rate of earnings shall be 25% of
24 the sum of (1) the annual basic compensation for that year,
25 and (2) the amount earned during the 36 months immediately
26 preceding that year, if this is greater than the final rate
27 of earnings as calculated under the other provisions of this
28 Section.
29 In the determination of the final rate of earnings for an
30 employee, that part of an employee's earnings for any
31 academic year beginning after June 30, 1997, which exceeds
32 the employee's earnings with that employer for the preceding
33 year by more than 20 percent shall be excluded; in the event
34 that an employee has more than one employer this limitation
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1 shall be calculated separately for the earnings with each
2 employer. In making such calculation, only the basic
3 compensation of employees shall be considered, without regard
4 to vacation or overtime or to contracts for summer
5 employment.
6 The following are not considered as earnings in
7 determining final rate of earnings: separation pay,
8 retirement pay, payment in lieu of unused sick leave and
9 payments from an employer for the period used in determining
10 final rate of earnings for any purpose other than services
11 rendered, leave of absence or vacation granted during that
12 period, and vacation of up to 56 work days allowed upon
13 termination of employment under a vacation policy of an
14 employer which was in effect on or before January 1, 1977.
15 Intermittent periods of service shall be considered as
16 consecutive in determining final rate of earnings.
17 (Source: P.A. 84-1472.)
18 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
19 Sec. 15-113.2. Service for leaves of absence. "Service
20 for leaves of absence" includes those periods of leaves of
21 absence at less than 50% pay, except military leave and
22 periods of disability leave in excess of 60 days, for which
23 the employee pays the contributions required under Section
24 15-157 in accordance with rules prescribed by the board based
25 upon the employee's basic compensation on the date the leave
26 begins, or in the case of leave for service with a teacher
27 organization, based upon the actual compensation received by
28 the employee for such service after January 26, 1988, if the
29 employee so elects within 30 days of that date or the date
30 the leave for service with a teacher organization begins,
31 whichever is later; provided that the employee (1) returns to
32 employment covered by this system at the expiration of the
33 leave, or within 30 days after the termination of a
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1 disability which occurs during the leave and continues this
2 employment at a percentage of time equal to or greater than
3 the percentage of time immediately preceding the leave of
4 absence for at least 8 consecutive months or a period equal
5 to the period of the leave, whichever is less, or (2) is
6 precluded from meeting the foregoing conditions because of
7 disability or death. If service credit is denied because the
8 employee fails to meet these conditions, the contributions
9 covering the leave of absence shall be refunded without
10 interest. The return to employment condition does not apply
11 if the leave of absence is for service with a teacher
12 organization and the leave of absence is in effect on the
13 effective date of this amendatory Act of 1993.
14 Service credit provided under this Section shall not
15 exceed 3 years in any period of 10 years, unless the employee
16 is on special leave granted by the employer for service with
17 a teacher organization. Commencing with the fourth year in
18 any period of 10 years, a participant on such special leave
19 is also required to pay employer contributions equal to the
20 normal cost as defined in Section 15-155, based upon the
21 employee's basic compensation on the date the leave begins,
22 or based upon the actual compensation received by the
23 employee for service with a teacher organization if the
24 employee has so elected.
25 (Source: P.A. 86-1488; 87-1265.)
26 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
27 Sec. 15-113.3. Service for periods of military service.
28 "Service for periods of military service": Those periods,
29 not exceeding 5 years, during which a person served in the
30 armed forces of the United States, of which all but 2 years
31 must have immediately followed a period of employment with an
32 employer under this system or the State Employees' Retirement
33 System of Illinois; provided that the person received a
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1 discharge other than dishonorable and again became an
2 employee under this System within one year after discharge.
3 However, for the up to 2 years of military service not
4 immediately following employment, the applicant must make
5 contributions to the System (1) at the rates provided in
6 Section 15-157 based upon the employee's basic compensation
7 on the last date as a participating employee prior to such
8 military service, or on the first date as a participating
9 employee after such military service, whichever is greater,
10 plus (2) an amount determined by the board to be equal to the
11 employer's normal cost of the benefits accrued for such
12 military service, plus (3) interest on items (1) and (2) at
13 the effective rate from the later of the date of first
14 membership in the System or the date of conclusion of
15 military service to the date of payment. The change in the
16 required contribution for purchased military credit made by
17 this amendatory Act of 1993 does not entitle any person to a
18 refund of contributions already paid.
19 The changes to this Section made by this amendatory Act
20 of 1991 shall apply not only to persons who on or after its
21 effective date are in service under the System, but also to
22 persons whose employment terminated prior to that date,
23 whether or not the person is an annuitant on that date. In
24 the case of an annuitant who applies for credit allowable
25 under this Section for a period of military service that did
26 not immediately follow employment, and who has made the
27 required contributions for such credit, the annuity shall be
28 recalculated to include the additional service credit, with
29 the increase taking effect on the date the System received
30 written notification of the annuitant's intent to purchase
31 the credit, if payment of all the required contributions is
32 made within 60 days of such notice, or else on the first
33 annuity payment date following the date of payment of the
34 required contributions. In calculating the automatic annual
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1 increase for an annuity that has been recalculated under this
2 Section, the increase attributable to the additional service
3 allowable under this amendatory Act of 1991 shall be included
4 in the calculation of automatic annual increases accruing
5 after the effective date of the recalculation.
6 (Source: P.A. 87-794; 87-1265.)
7 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
8 Sec. 15-113.4. Service for unused sick leave. "Service
9 for unused sick leave": A participant who is an employee
10 under this System or one of the other systems subject to
11 Article 20 of this Code within 60 days immediately preceding
12 the date on which his or her retirement annuity begins, is
13 entitled to credit for service for that portion of unused
14 sick leave earned in the course of employment with an
15 employer and credited on the date of termination of
16 employment by an employer for which payment is not received,
17 in accordance with the following schedule: 30 through 90
18 full calendar days and 20 through 59 full work days of unused
19 sick leave, 1/4 of a year of service; 91 through 180 full
20 calendar days and 60 through 119 full work days, 1/2 of a
21 year of service; 181 through 270 full calendar days and 120
22 through 179 full work days, 3/4 of a year of service; 271
23 through 360 full calendar days and 180 through 240 full work
24 days, one year of service. Only uncompensated, unused sick
25 leave earned in accordance with an employer's sick leave
26 accrual policy generally applicable to employees or a class
27 of employees shall be taken into account in calculating
28 service credit under this Section. Any uncompensated, unused
29 sick leave granted by an employer to facilitate the hiring,
30 retirement, termination, or other special circumstances of an
31 employee shall not be taken into account in calculating
32 service credit under this Section. If a participant
33 transfers from one employer to another, the unused sick leave
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1 credited by the previous employer shall be considered in
2 determining service to be credited under this Section, even
3 if the participant terminated service prior to the effective
4 date of P.A. 86-272 (August 23, 1989); if necessary, the
5 retirement annuity shall be recalculated to reflect such sick
6 leave credit. Each employer shall certify to the board the
7 number of days of unused sick leave accrued to the
8 participant's credit on the date that the participant's
9 status as an employee terminated. This period of unused sick
10 leave shall not be considered in determining the date the
11 retirement annuity begins.
12 (Source: P.A. 86-272; 87-794.)
13 (40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
14 Sec. 15-113.5. Service for employment with other public
15 agencies in this State. "Service for employment with other
16 public agencies in this State": includes the following
17 periods:
18 (a) periods during which a person rendered services for
19 the State of Illinois, prior to January 1, 1944, under
20 employment not covered by this Article, if (1) such periods
21 would have been considered creditable service under the State
22 Employees' Retirement System of Illinois had that system been
23 in effect at that time, and (2) service credit for such
24 periods has not been granted under the State Employees'
25 Retirement System of Illinois.
26 (b) periods credited under the State Employees'
27 Retirement System of Illinois on the date an employee became
28 eligible for participation in the State Universities
29 Retirement System as a result of a transfer of a State
30 function from a department, commission or other agency of
31 this State to an employer, excluding periods as a "covered
32 employee" as defined in Article 14 of this Code, provided the
33 employee has received a refund of his or her contributions
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1 from the State Employees' Retirement System of Illinois and
2 pays to this system contributions equal to the amount of the
3 refund together with compound interest at the rate required
4 for repayment of a refund under Section 15-154 from the date
5 the refund is received to the date payment is made.
6 (c) periods credited in a retirement system covering a
7 governmental unit, as defined in Section 20-107 on the date a
8 person becomes a participant, if (1) a function of this
9 governmental unit is transferred in whole or in part to an
10 employer, and (2) the person transfers employment from the
11 governmental unit to such employer within 6 months after the
12 employer begins operation of this function, and (3) the
13 person cannot qualify for a proportional retirement annuity
14 from the retirement system covering this governmental unit,
15 and (4) the participant receives a refund of his or her
16 contributions from the retirement system covering this
17 governmental unit and pays to this system contributions equal
18 to the amount of the refund together with compound interest
19 from the date the refund is made by the system to the date
20 payment is received by the board at the rate of 6% per annum
21 through August 31, 1982, and at the effective rates after
22 that date.
23 (d) periods during which a participant contributed to
24 the Park Policemen's Annuity Fund as defined in Section
25 5-219, provided the participant and the Chicago Policemen's
26 Annuity Fund pay to this system the required employee and
27 employer contributions.
28 (e) periods during which a person rendered services for
29 an athletic association affiliated with the University of
30 Illinois, provided that (1) the employee was employed by that
31 athletic association on January 1, 1960, (2) annuity
32 contracts covering that employment have been purchased by
33 other retirement systems covering employees of the athletic
34 association, and (3) the employee files with the board an
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1 election to become a participant and assigns to the board his
2 or her right, title, and interest in those annuity contracts.
3 (Source: P.A. 83-1440.)
4 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
5 Sec. 15-113.7. Service for other public employment.
6 "Service for other public employment": Includes those
7 periods not exceeding the lesser of 10 years or 2/3 of the
8 service granted under other Sections of this Article dealing
9 with service credit, during which a person was employed full
10 time by the United States government, or by the government of
11 a state, or by a political subdivision of a state, or by an
12 agency or instrumentality of any of the foregoing, if the
13 person (1) cannot qualify for a retirement pension or other
14 benefit based upon employer contributions from another
15 retirement system, exclusive of federal social security,
16 based in whole or in part upon this employment, and (2) pays
17 the lesser of (A) an amount equal to 8% of his or her annual
18 basic compensation on the date of becoming a participating
19 employee subsequent to this service multiplied by the number
20 of years of such service, together with compound interest
21 from the date participation begins to the date payment is
22 received by the board at the rate of 6% per annum through
23 August 31, 1982, and at the effective rates after that date,
24 and (B) 50% of the actuarial value of the increase in the
25 retirement annuity provided by this service, and (3)
26 contributes for at least 5 years subsequent to this
27 employment to one or more of the following systems: the
28 State Universities Retirement System, the Teachers'
29 Retirement System of the State of Illinois, and the Public
30 School Teachers' Pension and Retirement Fund of Chicago. If
31 a function of a governmental unit as defined by Section
32 20-107 is transferred by law, in whole or in part to an
33 employer, and an employee transfers employment from this
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1 governmental unit to such employer within 6 months of the
2 transfer of the function, the payment for service authorized
3 under this Section shall not exceed the amount which would
4 have been payable for this service to the retirement system
5 covering the governmental unit from which the function was
6 transferred.
7 The service granted under this Section shall not be
8 considered in determining whether the person has the minimum
9 of 8 years of service required to qualify for a retirement
10 annuity at age 55 or the 5 years of service required to
11 qualify for a retirement annuity at age 62, as provided in
12 Section 15-135. The maximum allowable service of 10 years
13 for this governmental employment shall be reduced by the
14 service credit which is validated under paragraph (3) of
15 Section 16-127 and paragraph one of Section 17-133.
16 Except as hereinafter provided, this Section shall not
17 apply to persons who become participants in the system after
18 September 1, 1974. Except as hereinafter provided, credit
19 for military service under this Section shall be allowed only
20 to persons who have applied for such credit before September
21 1, 1974. The foregoing September 1, 1974, limitations do not
22 apply to any person who became a participant in the system on
23 or before January 15, 1977, and prior thereto, had a minimum
24 of 20 years of service credit granted in the General Assembly
25 Retirement System.
26 (Source: P.A. 87-1265.)
27 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
28 Sec. 15-125. "Prescribed Rate of Interest; Effective
29 Rate of Interest":
30 (1) "Prescribed rate of interest": The rate of interest
31 to be used in actuarial valuations and in development of
32 actuarial tables as determined by the board on the basis of
33 the probable average effective rate of interest on a long
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1 term basis.
2 (2) "Effective rate of interest": The interest rate for
3 all or any part of a fiscal year that is determined by the
4 board based on factors including the system's past and
5 expected investment experience; historical and expected
6 fluctuations in the market value of investments; the
7 desirability of minimizing volatility in the effective rate
8 of interest from year to year; the provision of reserves for
9 anticipated losses upon sales, redemptions, or other
10 disposition of investments and for variations in interest
11 experience. This amendatory Act of 1997 is a clarification
12 of existing law. The interest rate for any fiscal year
13 determined by the board from the investment experience of the
14 preceding fiscal years and the estimated investment
15 experience of the current fiscal year. In determining the
16 effective rate of interest to be credited to member
17 contribution accounts and other reserves, the board may
18 provide for reserves for anticipated losses upon sales,
19 redemptions or other disposition of investments and for
20 reserves for variations in interest experience.
21 (Source: P.A. 79-1146.)
22 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
23 Sec. 15-136.2. Early retirement without discount. A
24 participant whose retirement annuity begins after June 1,
25 1981 and on or before September 1, 2002 1997 and within six
26 months of the last day of employment for which retirement
27 contributions were required, may elect at the time of
28 application to make a one time employee contribution to the
29 System and thereby avoid the early retirement reduction in
30 retirement annuity specified under subsection (b) of Section
31 15-136. The exercise of the election shall obligate the last
32 employer to also make a one time non-refundable contribution
33 to the System.
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1 The one time employee and employer contributions shall be
2 a percentage of the retiring participant's highest full time
3 annual salary rate during the academic years which were
4 considered in determining his or her final rate of earnings,
5 or if not full time then the full time equivalent. The
6 employee contribution rate shall be 7% multiplied by the
7 lesser of the following 2 sums: (1) the number of years that
8 the participant is less than age 60; or (2) the number of
9 years that the participant's creditable service is less than
10 35 years. The employer contribution shall be at the rate of
11 20% for each year the participant is less than age 60. The
12 employer shall pay the employer contribution from the same
13 source of funds which is used in paying earnings to
14 employees.
15 Upon receipt of the application and election, the System
16 shall determine the one time employee and employer
17 contributions. The provisions of this Section shall not be
18 applicable until all the above outlined contributions have
19 been received by the System; however, the date such
20 contributions are received shall not be considered in
21 determining the effective date of retirement.
22 For persons who apply to the Board after the effective
23 date of this amendatory Act of 1993 and before July 1, 1993,
24 requesting a retirement annuity to begin no earlier than July
25 1, 1993 and no later than June 30, 1994, the employer shall
26 pay both the employee and employer contributions required
27 under this Section.
28 The number of employees retiring under this Section in
29 any fiscal year may be limited at the option of the employer
30 to no less than 15% of those eligible. The right to elect
31 early retirement without discount shall be allocated among
32 those applying on the basis of seniority in the service of
33 the last employer.
34 (Source: P.A. 87-794; 87-1265.)
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1 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
2 Sec. 15-143. Death benefits - General provisions. All
3 death benefits shall be paid as a single cash sum or
4 otherwise as the beneficiary and the board mutually agree,
5 except where an annuity is payable under Section 15-144. A
6 death benefit shall be paid as soon as practicable after
7 receipt by the board of (1) a written application by the
8 beneficiary and (2) such evidence of death and identification
9 as the board shall require.
10 (Source: P.A. 83-1440.)
11 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
12 Sec. 15-153.2. Disability retirement annuity. A
13 participant whose disability benefits are discontinued under
14 the provisions of clause (6) (5) of Section 15-152, is
15 entitled to a disability retirement annuity of 35% of the
16 basic compensation which was payable to the participant at
17 the time that disability began, provided at least 2 licensed
18 and practicing physicians appointed by the board certify that
19 the participant has a medically determinable physical or
20 mental impairment which would prevent him or her from
21 engaging in any substantial gainful activity, and which can
22 be expected to result in death or which has lasted or can be
23 expected to last for a continuous period of not less than 12
24 months. The terms "medically determinable physical or mental
25 impairment" and "substantial gainful activity" shall have the
26 meanings ascribed to them in the "Social Security Act", as
27 now or hereafter amended, and the regulations issued
28 thereunder.
29 The disability retirement annuity payment period shall
30 begin immediately following the expiration of the disability
31 benefit payments under clause (6) (5) of Section 15-152 and
32 shall be discontinued when (1) the physical or mental
33 impairment no longer prevents the participant from engaging
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1 in any substantial gainful activity, (2) the participant dies
2 or (3) the participant elects to receive a retirement annuity
3 under Sections 15-135 and 15-136. If a person's disability
4 retirement annuity is discontinued under clause (1), all
5 rights and credits accrued in the system on the date that the
6 disability retirement annuity began shall be restored, and
7 the disability retirement annuity paid shall be considered as
8 disability payments under clause (6) (5) of Section 15-152.
9 (Source: P.A. 83-1440.)
10 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
11 Sec. 15-157. Employee Contributions.
12 (a) Each participating employee shall make contributions
13 towards the retirement annuity of each payment of earnings
14 applicable to employment under this system on and after the
15 date of becoming a participant as follows: Prior to
16 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
17 to August 31, 1955, 5%; from September 1, 1955 to August 31,
18 1969, 6%; from September 1, 1969, 6 1/2%. These
19 contributions are to be considered as normal contributions
20 for purposes of this Article.
21 Each participant who is a police officer or firefighter
22 shall make normal contributions of 8% of each payment of
23 earnings applicable to employment as a police officer or
24 firefighter under this system on or after September 1, 1981,
25 unless he or she files with the board within 60 days after
26 the effective date of this amendatory Act of 1991 or 60 days
27 after the board receives notice that he or she is employed as
28 a police officer or firefighter, whichever is later, a
29 written notice waiving the retirement formula provided by
30 Rule 4 of Section 15-136. This waiver shall be irrevocable.
31 If a participant had met the conditions set forth in Section
32 15-132.1 prior to the effective date of this amendatory Act
33 of 1991 but failed to make the additional normal
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1 contributions required by this paragraph, he or she may elect
2 to pay the additional contributions plus compound interest at
3 the effective rate. If such payment is received by the
4 board, the service shall be considered as police officer
5 service in calculating the retirement annuity under Rule 4 of
6 Section 15-136.
7 (b) Starting September 1, 1969, each participating
8 employee shall make additional contributions of 1/2 of 1% of
9 earnings to finance a portion of the cost of the annual
10 increases in retirement annuity provided under Section
11 15-136.
12 (c) Each participating employee shall make survivors
13 insurance contributions of 1% of earnings applicable under
14 this system on and after August 1, 1959. Contributions in
15 excess of $80 during any fiscal year beginning before August
16 31, 1969 and in excess of $120 during any fiscal year
17 thereafter until September 1, 1971 shall be considered as
18 additional contributions for purposes of this Article.
19 (d) If the board by board rule so permits and subject to
20 such conditions and limitations as may be specified in its
21 rules, a participant may make other additional contributions
22 of such percentage of earnings or amounts as the participant
23 shall elect in a written notice thereof received by the
24 board.
25 (e) That fraction of a participant's total accumulated
26 normal contributions, the numerator of which is equal to the
27 number of years of service in excess of that which is
28 required to qualify for the maximum retirement annuity, and
29 the denominator of which is equal to the total service of the
30 participant, shall be considered as accumulated additional
31 contributions. The determination of the applicable maximum
32 annuity and the adjustment in contributions required by this
33 provision shall be made as of the date of the participant's
34 retirement.
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1 (f) Notwithstanding the foregoing, a participating
2 employee shall not be required to make contributions under
3 this Section after the date upon which continuance of such
4 contributions would otherwise cause his or her retirement
5 annuity to exceed the maximum retirement annuity as specified
6 in clause (1) of subsection (c) of Section 15-136.
7 (Source: P.A. 86-272; 86-1488.)
8 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
9 Sec. 15-167.2. To issue bonds. To borrow money and, in
10 evidence of its obligation to repay the borrowing, to issue
11 bonds for the purpose of financing the cost of any project.
12 The bonds shall be authorized pursuant to a resolution to be
13 adopted by the board setting forth all details in connection
14 with the bonds.
15 The principal amount of the outstanding bonds of the
16 board shall not at any time exceed $20,000,000 $10,000,000.
17 The bonds may be issued in one or more series, bear such
18 date or dates, become due at such time or times within 40
19 years, bear interest payable at such intervals and at such
20 rate or rates, which rates may be fixed or variable, be in
21 such denominations, be in such form, either coupon,
22 registered or book-entry, carry such conversion, registration
23 and exchange privileges, be subject to defeasance upon such
24 terms, have such rank or priority, be executed in such
25 manner, be payable in such medium of payment at such place or
26 places within or without the State of Illinois, make
27 provision for a corporate trustee within or without the State
28 of Illinois with respect to such bonds, prescribe the rights,
29 powers and duties thereof to be exercised for the benefit of
30 the board, the system and the protection of the bondholders,
31 provide for the holding in trust, investment and use of
32 moneys, funds and accounts held in connection therewith, be
33 subject to such terms of redemption with or without premium,
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1 and be sold in such manner at private or public sale and at
2 such price, all as the board shall determine. Whenever bonds
3 are sold at a price less than par, they shall be sold at such
4 price and bear interest at such rate or rates that either the
5 true interest cost (yield) or the net interest rate, as may
6 be selected by the board, received upon the sale of such
7 bonds does not exceed the maximum interest rate permitted by
8 the Bond Authorization Act, as amended at the time of the
9 making of the contract.
10 Any bonds may be refunded or advance refunded upon such
11 terms as the board may determine for such term of years, not
12 exceeding 40 years, and in such principal amount, as may be
13 deemed necessary by the board. Any redemption premium
14 payable upon the redemption of bonds may be payable from the
15 proceeds of refunding bonds issued for the purpose of
16 refunding such bonds, from any lawfully available source or
17 from both refunding bond proceeds and such other sources.
18 The bonds or refunding bonds shall be obligations of the
19 board payable from the income, interest and dividends derived
20 from investments of the board, all as may be designated in
21 the resolution of the board authorizing the issuance of the
22 bonds. The bonds shall be secured as provided in the
23 authorizing resolution, which may, notwithstanding any other
24 provision of this Code, include a specific pledge or
25 assignment of and lien on or security interest in the income,
26 interest and dividends derived from investments of the board
27 and a specific pledge or assignment of and lien on or
28 security interest in any funds, reserves or accounts
29 established or provided for by the resolution of the board
30 authorizing the issuance of the bonds. The bonds or refunding
31 bonds shall not be payable from any employer or employee
32 contributions derived from State appropriations nor
33 constitute obligations or indebtedness of the State of
34 Illinois or of any municipal corporation or other body
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1 politic and corporate in the State.
2 The holder or holders of any bonds issued by the board
3 may bring suits at law or proceedings in equity to compel the
4 performance and observance by the board or any of its agents
5 or employees of any contract or covenant made with the
6 holders of the bonds, to compel the board or any of its
7 agents or employees to perform any duties required to be
8 performed for the benefit of the holders of the bonds by the
9 provisions of the resolution authorizing their issuance, and
10 to enjoin the board or any of its agents or employees from
11 taking any action in conflict with any such contract or
12 covenant.
13 Notwithstanding the provisions of Section 15-188 of this
14 Code, if the board fails to pay the principal of, premium, if
15 any, or interest on any of the bonds as they become due, a
16 civil action to compel payment may be instituted in the
17 appropriate circuit court by the holder or holders of the
18 bonds upon which such default exists or by a trustee acting
19 on behalf of the holders.
20 No bonds may be issued under this Section until a copy of
21 the resolution of the board authorizing such bonds, certified
22 by the secretary of the board, has been filed with the
23 Governor of the State of Illinois.
24 "Bonds" means any instrument evidencing the obligation to
25 pay money, including without limitation bonds, notes,
26 installment or financing contracts, leases, certificates,
27 warrants, and any other evidences of indebtedness.
28 "Project" means the acquisition, construction, equipping,
29 improving, expanding and furnishing of any office building
30 for the use of the system, including any real estate or
31 interest in real estate necessary or useful in connection
32 therewith.
33 "Cost of any project" includes all capital costs of the
34 project, an amount for expenses of issuing any bonds to
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1 finance such project, including underwriter's discount and
2 costs of bond insurance or other credit enhancement, an
3 amount necessary to provide for a reserve fund for the
4 payment of the principal of and interest on such bonds and an
5 amount to pay interest on such bonds for a period not to
6 exceed the greater of 2 years or a period ending 6 months
7 after the estimated date of completion of the project.
8 (Source: P.A. 86-1034.)
9 (40 ILCS 5/15-168.1 new)
10 Sec. 15-168.1. Testimony and the production of records.
11 The secretary of the Board shall have the power to issue
12 subpoenas to compel the attendance of witnesses and the
13 production of documents and records, including law
14 enforcement records maintained by law enforcement agencies,
15 in conjunction with a disability claim, administrative review
16 proceedings, or felony forfeiture investigation. The fees of
17 witnesses for attendance and travel shall be the same as the
18 fees of witnesses before the circuit courts of this State and
19 shall be paid by the party seeking the subpoena. The Board
20 may apply to any circuit court in the State for an order
21 requiring compliance with a subpoena issued under this
22 Section. Subpoenas issued under this Section shall be
23 subject to applicable provisions of the Code of Civil
24 Procedure.
25 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
26 Sec. 15-185. Annuities, etc. Exempt. The accumulated
27 employee and employer contributions shall be held in trust
28 for each participant and annuitant, and this trust shall be
29 treated as a spendthrift trust. Except as provided in this
30 Article, all cash, securities and other property of this
31 system, all annuities and other benefits payable under this
32 Article and all accumulated credits of participants and
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1 annuitants in this system and the right of any person to
2 receive an annuity or other benefit under this Article, or a
3 refund of contributions, shall not be subject to judgment,
4 execution, garnishment, attachment, or other seizure by
5 process, in bankruptcy or otherwise, nor to sale, pledge,
6 mortgage or other alienation, and shall not be assignable.
7 The board, however, may deduct from the benefits, refunds and
8 credits payable to the participant, annuitant or beneficiary,
9 amounts owed by the participant or annuitant to the system.
10 No attempted sale, transfer or assignment of any benefit,
11 refund or credit shall prevent the right of the board to make
12 the deduction and offset authorized in this Section. Any
13 participant or annuitant may authorize the board to deduct
14 from disability benefits or annuities, premiums due under any
15 group hospital-surgical insurance program which is sponsored
16 or approved by any employer; however, the deductions from
17 disability benefits may not begin prior to 6 months after the
18 disability occurs.
19 A person receiving an annuity or benefit may also
20 authorize withholding from such annuity or benefit for the
21 purposes enumerated in the State Salary and Annuity
22 Withholding Act.
23 This amendatory Act of 1989 is a clarification of
24 existing law and shall be applicable to every participant and
25 annuitant without regard to whether status as an employee
26 terminates before the effective date of this amendatory Act
27 of 1989.
28 (Source: P.A. 86-273; 86-1488.)
29 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
30 Sec. 15-190. Persons under legal disability. If a person
31 is under legal disability when any right or privilege accrues
32 to him or her under this Article, a guardian may be appointed
33 pursuant to law, and may, on behalf of such person, claim and
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1 exercise any such right or privilege with the same force and
2 effect as if the person had not been under a legal disability
3 and had claimed or exercised such right or privilege.
4 If a person's application for benefits or a physician's
5 certificate on file with the board shows that the person is
6 under a legal disability, and no guardian has been appointed
7 for his or her estate, the benefits payable under this
8 Article may be paid (1) directly to the person under legal
9 disability, or (2) to either parent of the person under legal
10 disability or any adult person with whom the person under
11 legal disability may at the time be living, provided only
12 that such parent or adult person to whom any amount is to be
13 paid shall have advised the board in writing that such amount
14 will be held or used for the benefit of the person under
15 legal disability, or (3) to the trustee of any trust created
16 for the sole benefit of the person under legal disability
17 while that person is living, provided only that the trustee
18 of such trust to whom any amount is to be paid shall have
19 advised the board in writing that such amount will be held or
20 used for the benefit of the person under legal disability.
21 The system shall not be required to determine the validity of
22 the trust or any of the terms thereof. The representation of
23 the trustee that the trust meets the requirements of this
24 Section shall be conclusive as to the system. The written
25 receipt of the person under legal disability or the other
26 person who receives such payment shall be an absolute
27 discharge of the system's liability in respect of the amount
28 so paid.
29 (Source: P.A. 86-1488.)
30 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
31 Sec. 15-191. Payment of benefits to minors. If any
32 benefits under this Article become payable to a minor, the
33 board may make payment (1) directly to the minor, (2) to any
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1 person who has legally qualified and is acting as guardian of
2 the minor's person or property in any jurisdiction, or (3) to
3 either parent of the minor or to any adult person with whom
4 the minor may at the time be living, provided only that the
5 parent or other person to whom any amount is to be paid shall
6 have advised the board in writing that such amount will be
7 held or used for the benefit of the minor, or (4) to the
8 trustee of any trust created for the sole benefit of the
9 minor while that minor is living, provided only that the
10 trustee of such trust to whom any amount is to be paid shall
11 have advised the board in writing that such amount will be
12 held or used for the benefit of the minor. The system shall
13 not be required to determine the validity of the trust or any
14 of the terms thereof. The representation of the trustee that
15 the trust meets the requirements of this Section shall be
16 conclusive as to the system. The written receipt of the
17 minor, parent, trustee, or other person who receives such
18 payment shall be an absolute discharge of the system's
19 liability in respect of the amount so paid.
20 (Source: P.A. 83-1440.)
21 Section 15. The Illinois Pension Code is amended by
22 changing Sections 14-103.12, 14-108, 14-431, 15-134, 15-135,
23 and 15-136 as follows:
24 (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
25 Sec. 14-103.12. Final average compensation.
26 (a) For retirement and survivor annuities, "final
27 average compensation" means the monthly compensation obtained
28 by dividing the total compensation of an employee during the
29 period of: (1) the 48 consecutive months of service within
30 the last 120 months of service in which the total
31 compensation was the highest, or (2) the total period of
32 service, if less than 48 months, by the number of months of
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1 service in such period; provided that for purposes of a
2 retirement annuity the average compensation for the last 12
3 months of the 48-month period shall not exceed the final
4 average compensation by more than 25%.
5 (b) For death and disability benefits, in the case of a
6 full-time employee, "final average compensation" means the
7 greater of (1) the rate of compensation of the employee at
8 the date of death or disability multiplied by 1 in the case
9 of a salaried employee, by 174 in the case of an hourly
10 employee, and by 22 in the case of a per diem employee, or
11 (2) for benefits commencing on or after January 1, 1991,
12 final average compensation as determined under subsection
13 (a).
14 For purposes of this paragraph, full or part-time status
15 shall be certified by the employing agency. Final rate of
16 compensation for a part-time employee shall be the total
17 compensation earned during the last full calendar month prior
18 to the date of death or disability.
19 (c) Notwithstanding the provisions of subsection (a),
20 for the purpose of calculating retirement and survivor
21 annuities of persons with at least 20 years of eligible
22 creditable service as defined in Section 14-110 a State
23 policeman, "final average compensation" means the monthly
24 rate of compensation received by the person on the last day
25 of eligible creditable service (but not to exceed 115% of the
26 average monthly compensation received by the person for the
27 last 24 months of service, unless the person was in service
28 as a State policeman before the effective date of this
29 amendatory Act of 1997), or the average monthly compensation
30 received by the person for the last 48 months of service
31 prior to retirement, whichever is greater.
32 (d) Notwithstanding the provisions of subsection (a),
33 for a person who was receiving, on the date of retirement or
34 death, a disability benefit calculated under subdivision
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1 (b)(2) of this Section, the final average compensation used
2 to calculate the disability benefit may be used for purposes
3 of calculating the retirement and survivor annuities.
4 (e) In computing the final average compensation, periods
5 of military leave shall not be considered.
6 (f) The changes to this Section made by this amendatory
7 Act of 1997 (redefining final average compensation for
8 members under the alternative formula) apply to members who
9 retire on or after January 1, 1998, without regard to whether
10 employment terminated before the effective date of this
11 amendatory Act of 1997.
12 (Source: P.A. 86-273; 86-1488.)
13 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
14 (Text of Section before amendment by P.A. 89-507)
15 Sec. 14-108. Amount of retirement annuity. A member who
16 has contributed to the System for at least 12 months, shall
17 be entitled to a prior service annuity for each year of
18 certified prior service credited to him, except that a member
19 shall receive 1/3 of the prior service annuity for each year
20 of service for which contributions have been made and all of
21 such annuity shall be payable after the member has made
22 contributions for a period of 3 years. Proportionate amounts
23 shall be payable for service of less than a full year after
24 completion of at least 12 months.
25 The total period of service to be considered in
26 establishing the measure of prior service annuity shall
27 include service credited in the Teachers' Retirement System
28 of the State of Illinois and the State Universities
29 Retirement System for which contributions have been made by
30 the member to such systems; provided that at least 1 year of
31 the total period of 3 years prescribed for the allowance of a
32 full measure of prior service annuity shall consist of
33 membership service in this System for which credit has been
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1 granted.
2 (a) In the case of a member who retires on or after
3 January 1, 1998 and is a noncovered employee, the retirement
4 annuity for membership service and prior service shall be
5 2.2% 1.67% of final average compensation for each of the
6 first 10 years of service; 1.90% for each of the next 10
7 years of service; 2.10% for each year of service in excess of
8 20 but not exceeding 30; and 2.30% for each year in excess of
9 30. Any service credit established as a covered employee
10 shall be considered in determining the applicable percentages
11 and computed as stated in paragraph (b).
12 (b) In the case of a member who retires on or after
13 January 1, 1998 and is a covered employee, the retirement
14 annuity for membership service and prior service shall be
15 computed as stated in paragraph (a) for all service credit
16 established as a noncovered employee; for service credit
17 established as a covered employee it shall be 1.67% of final
18 average compensation 1% for each of the first 10 years of
19 service; 1.10% for each of the next 10 years of service;
20 1.30% for each year of service in excess of 20 but not
21 exceeding 30; and 1.50% for each year of service in excess of
22 30. Any service credit established as a noncovered employee
23 shall be considered in determining the applicable
24 percentages.
25 (c) For a member with 30 but less than 35 years of
26 creditable service retiring after attaining age 55 but before
27 age 60, the retirement annuity shall be reduced by 1/2 of 1%
28 for each month that the member's age is under age 60 at the
29 time of retirement.
30 (d) A retirement annuity shall not exceed 75% of final
31 average compensation, subject to such extension as may result
32 from the application of Section 14-114 or Section 14-115.
33 (e) The retirement annuity payable to any covered
34 employee who is a member of the System and in service on
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1 January 1, 1969, or in service thereafter in 1969 as a result
2 of legislation enacted by the Illinois General Assembly
3 transferring the member to State employment from county
4 employment in a county Department of Public Aid in counties
5 of 3,000,000 or more population, under a plan of coordination
6 with the Old Age, Survivors and Disability provisions
7 thereof, if not fully insured for Old Age Insurance payments
8 under the Federal Old Age, Survivors and Disability Insurance
9 provisions at the date of acceptance of a retirement annuity,
10 shall not be less than the amount for which the member would
11 have been eligible if coordination were not applicable.
12 (f) The retirement annuity payable to any covered
13 employee who is a member of the System and in service on
14 January 1, 1969, or in service thereafter in 1969 as a result
15 of the legislation designated in the immediately preceding
16 paragraph, if fully insured for Old Age Insurance payments
17 under the federal Social Security Act at the date of
18 acceptance of a retirement annuity, shall not be less than an
19 amount which when added to the Primary Insurance Benefit
20 payable to the member upon attainment of age 65 under such
21 federal Act, will equal the annuity which would otherwise be
22 payable if the coordinated plan of coverage were not
23 applicable.
24 (g) In the case of a member who is a noncovered
25 employee, the retirement annuity for membership service as a
26 full-time security employee of the Department of Corrections
27 or security employee of the Department of Mental Health and
28 Developmental Disabilities shall be 1.9% of final average
29 compensation for each of the first 10 years of service; 2.1%
30 for each of the next 10 years of service; 2.25% for each year
31 of service in excess of 20 but not exceeding 30; and 2.5% for
32 each year in excess of 30; except that the annuity may be
33 calculated under subsection (a) rather than this subsection
34 (g) if the resulting annuity is greater.
HB0110 Enrolled -61- LRB9000902EGfg
1 (h) In the case of a member who is a covered employee,
2 the retirement annuity for membership service as a full-time
3 security employee of the Department of Corrections or
4 security employee of the Department of Mental Health and
5 Developmental Disabilities shall be 1.67% of final average
6 compensation for each of the first 10 years of service; 1.90%
7 for each of the next 10 years of service; 2.10% for each year
8 of service in excess of 20 but not exceeding 30; and 2.30%
9 for each year in excess of 30.
10 (i) For the purposes of this Section and Section 14-133
11 of this Act, the term "security employee of the Department of
12 Corrections" and the term "security employee of the
13 Department of Mental Health and Developmental Disabilities"
14 shall have the meanings ascribed to them in subsection (c) of
15 Section 14-110.
16 (j) The retirement annuity computed pursuant to
17 paragraphs (g) or (h) shall be applicable only to those
18 security employees of the Department of Corrections and
19 security employees of the Department of Mental Health and
20 Developmental Disabilities who have at least 20 years of
21 membership service and who are not eligible for the
22 alternative retirement annuity provided under Section 14-110.
23 However, persons transferring to this System under Section
24 14-108.2 who have service credit under Article 16 of this
25 Code may count such service toward establishing their
26 eligibility under the 20-year service requirement of this
27 subsection; but such service may be used only for
28 establishing such eligibility, and not for the purpose of
29 increasing or calculating any benefit.
30 (k) (Blank). In the case of a member who has at least 10
31 years of creditable service as a court reporter, the
32 retirement annuity for service as a court reporter shall be
33 2.2% of final average compensation for each year of such
34 service as a noncovered employee, and 1.5% of final average
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1 compensation for each year of such service as a covered
2 employee.
3 (l) The changes to this Section made by this amendatory
4 Act of 1997 (changing certain retirement annuity formulas
5 from a stepped rate to a flat rate) apply to members who
6 retire on or after January 1, 1998, without regard to whether
7 employment terminated before the effective date of this
8 amendatory Act of 1997. An annuity shall not be calculated
9 in steps by using the new flat rate for some steps and the
10 superseded stepped rate for other steps of the same type of
11 service.
12 (Source: P.A. 86-272; 86-273; 86-1028.)
13 (Text of Section after amendment by P.A. 89-507)
14 Sec. 14-108. Amount of retirement annuity. A member who
15 has contributed to the System for at least 12 months, shall
16 be entitled to a prior service annuity for each year of
17 certified prior service credited to him, except that a member
18 shall receive 1/3 of the prior service annuity for each year
19 of service for which contributions have been made and all of
20 such annuity shall be payable after the member has made
21 contributions for a period of 3 years. Proportionate amounts
22 shall be payable for service of less than a full year after
23 completion of at least 12 months.
24 The total period of service to be considered in
25 establishing the measure of prior service annuity shall
26 include service credited in the Teachers' Retirement System
27 of the State of Illinois and the State Universities
28 Retirement System for which contributions have been made by
29 the member to such systems; provided that at least 1 year of
30 the total period of 3 years prescribed for the allowance of a
31 full measure of prior service annuity shall consist of
32 membership service in this system for which credit has been
33 granted.
34 (a) In the case of a member who retires on or after
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1 January 1, 1998 and is a noncovered employee, the retirement
2 annuity for membership service and prior service shall be
3 2.2% 1.67% of final average compensation for each of the
4 first 10 years of service; 1.90% for each of the next 10
5 ears of service; 2.10% for each year of service in excess of
6 20 but not exceeding 30; and 2.30% for each year in excess of
7 30. Any service credit established as a covered employee
8 shall be considered in determining the applicable percentages
9 and computed as stated in paragraph (b).
10 (b) In the case of a member who retires on or after
11 January 1, 1998 and is a covered employee, the retirement
12 annuity for membership service and prior service shall be
13 computed as stated in paragraph (a) for all service credit
14 established as a noncovered employee; for service credit
15 established as a covered employee it shall be 1.67% of final
16 average compensation 1% for each of the first 10 years of
17 service; 1.10% for each of the next 10 years of service;
18 1.30% for each year of service in excess of 20 but not
19 exceeding 30; and 1.50% for each year of service in excess of
20 30. Any service credit established as a noncovered employee
21 shall be considered in determining the applicable
22 percentages.
23 (c) For a member with 30 but less than 35 years of
24 creditable service retiring after attaining age 55 but before
25 age 60, the retirement annuity shall be reduced by 1/2 of 1%
26 for each month that the member's age is under age 60 at the
27 time of retirement.
28 (d) A retirement annuity shall not exceed 75% of final
29 average compensation, subject to such extension as may result
30 from the application of Section 14-114 or Section 14-115.
31 (e) The retirement annuity payable to any covered
32 employee who is a member of the System and in service on
33 January 1, 1969, or in service thereafter in 1969 as a result
34 of legislation enacted by the Illinois General Assembly
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1 transferring the member to State employment from county
2 employment in a county Department of Public Aid in counties
3 of 3,000,000 or more population, under a plan of coordination
4 with the Old Age, Survivors and Disability provisions
5 thereof, if not fully insured for Old Age Insurance payments
6 under the Federal Old Age, Survivors and Disability Insurance
7 provisions at the date of acceptance of a retirement annuity,
8 shall not be less than the amount for which the member would
9 have been eligible if coordination were not applicable.
10 (f) The retirement annuity payable to any covered
11 employee who is a member of the System and in service on
12 January 1, 1969, or in service thereafter in 1969 as a result
13 of the legislation designated in the immediately preceding
14 paragraph, if fully insured for Old Age Insurance payments
15 under the Federal Social Security Act at the date of
16 acceptance of a retirement annuity, shall not be less than an
17 amount which when added to the Primary Insurance Benefit
18 payable to the member upon attainment of age 65 under such
19 Federal Act, will equal the annuity which would otherwise be
20 payable if the coordinated plan of coverage were not
21 applicable.
22 (g) In the case of a member who is a noncovered
23 employee, the retirement annuity for membership service as a
24 full-time security employee of the Department of Corrections
25 or security employee of the Department of Human Services
26 shall be 1.9% of final average compensation for each of the
27 first 10 years of service; 2.1% for each of the next 10 years
28 of service; 2.25% for each year of service in excess of 20
29 but not exceeding 30; and 2.5% for each year in excess of 30;
30 except that the annuity may be calculated under subsection
31 (a) rather than this subsection (g) if the resulting annuity
32 is greater.
33 (h) In the case of a member who is a covered employee,
34 the retirement annuity for membership service as a full-time
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1 security employee of the Department of Corrections or
2 security employee of the Department of Human Services shall
3 be 1.67% of final average compensation for each of the first
4 10 years of service; 1.90% for each of the next 10 years of
5 service; 2.10% for each year of service in excess of 20 but
6 not exceeding 30; and 2.30% for each year in excess of 30.
7 (i) For the purposes of this Section and Section 14-133
8 of this Act, the term "security employee of the Department of
9 Corrections" and the term "security employee of the
10 Department of Human Services" shall have the meanings
11 ascribed to them in subsection (c) of Section 14-110.
12 (j) The retirement annuity computed pursuant to
13 paragraphs (g) or (h) shall be applicable only to those
14 security employees of the Department of Corrections and
15 security employees of the Department of Human Services who
16 have at least 20 years of membership service and who are not
17 eligible for the alternative retirement annuity provided
18 under Section 14-110. However, persons transferring to this
19 System under Section 14-108.2 who have service credit under
20 Article 16 of this Code may count such service toward
21 establishing their eligibility under the 20-year service
22 requirement of this subsection; but such service may be used
23 only for establishing such eligibility, and not for the
24 purpose of increasing or calculating any benefit.
25 (k) (Blank). In the case of a member who has at least 10
26 years of creditable service as a court reporter, the
27 retirement annuity for service as a court reporter shall be
28 2.2% of final average compensation for each year of such
29 service as a noncovered employee, and 1.5% of final average
30 compensation for each year of such service as a covered
31 employee.
32 (l) The changes to this Section made by this amendatory
33 Act of 1997 (changing certain retirement annuity formulas
34 from a stepped rate to a flat rate) apply to members who
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1 retire on or after January 1, 1998, without regard to whether
2 employment terminated before the effective date of this
3 amendatory Act of 1997. An annuity shall not be calculated
4 in steps by using the new flat rate for some steps and the
5 superseded stepped rate for other steps of the same type of
6 service.
7 (Source: P.A. 89-507, eff. 7-1-97.)
8 (40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
9 Sec. 14-131. Contributions by State.
10 (a) The State shall make contributions to the System by
11 appropriations of amounts which, together with other employer
12 contributions from trust, federal, and other funds, employee
13 contributions, investment income, and other income, will be
14 sufficient to meet the cost of maintaining and administering
15 the System on a 90% funded basis in accordance with actuarial
16 recommendations.
17 For the purposes of this Section and Section 14-135.08,
18 references to State contributions refer only to employer
19 contributions and do not include employee contributions that
20 are picked up or otherwise paid by the State or a department
21 on behalf of the employee.
22 (b) The Board shall determine the total amount of State
23 contributions required for each fiscal year on the basis of
24 the actuarial tables and other assumptions adopted by the
25 Board, using the formula in subsection (e).
26 The Board shall also determine a State contribution rate
27 for each fiscal year, expressed as a percentage of payroll,
28 based on the total required State contribution for that
29 fiscal year (less the amount received by the System from
30 appropriations under Section 8.12 of the State Finance Act
31 and Section 1 of the State Pension Funds Continuing
32 Appropriation Act, if any, for the fiscal year ending on the
33 June 30 immediately preceding the applicable November 15
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1 certification deadline), the estimated payroll (including all
2 forms of compensation) for personal services rendered by
3 eligible employees, and the recommendations of the actuary.
4 For the purposes of this Section and Section 14.1 of the
5 State Finance Act, the term "eligible employees" includes
6 employees who participate in the System, persons who may
7 elect to participate in the System but have not so elected,
8 persons who are serving a qualifying period that is required
9 for participation, and annuitants employed by a department as
10 described in subdivision (a)(1) or (a)(2) of Section 14-111.
11 (c) Contributions shall be made by the several
12 departments for each pay period by warrants drawn by the
13 State Comptroller against their respective funds or
14 appropriations based upon vouchers stating the amount to be
15 so contributed. These amounts shall be based on the full
16 rate certified by the Board under Section 14-135.08 for that
17 fiscal year.
18 (d) If an employee is paid from trust funds or federal
19 funds, the department or other employer shall pay employer
20 contributions from those funds to the System at the certified
21 rate, unless the terms of the trust or the federal-State
22 agreement preclude the use of the funds for that purpose, in
23 which case the required employer contributions shall be paid
24 by the State.
25 (e) For State fiscal years 2011 through 2045, the
26 minimum contribution to the System to be made by the State
27 for each fiscal year shall be an amount determined by the
28 System to be sufficient to bring the total assets of the
29 System up to 90% of the total actuarial liabilities of the
30 System by the end of State fiscal year 2045. In making these
31 determinations, the required State contribution shall be
32 calculated each year as a level percentage of payroll over
33 the years remaining to and including fiscal year 2045 and
34 shall be determined under the projected unit credit actuarial
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1 cost method.
2 For State fiscal years 1996 through 2010, the State
3 contribution to the System, as a percentage of the applicable
4 employee payroll, shall be increased in equal annual
5 increments so that by State fiscal year 2011, the State is
6 contributing at the rate required under this Section; except
7 that (i) for State fiscal year 1998, for all purposes of this
8 Code and any other law of this State, the certified
9 percentage of the applicable employee payroll shall be 5.052%
10 for employees earning eligible creditable service under
11 Section 14-110 and 6.500% for all other employees,
12 notwithstanding any contrary certification made under Section
13 14-135.08 before the effective date of this amendatory Act of
14 1997, and (ii) in the following specified State fiscal years,
15 the State contribution to the System shall not be less than
16 the following indicated percentages of the applicable
17 employee payroll, even if the indicated percentage will
18 produce a State contribution in excess of the amount
19 otherwise required under this subsection and subsection (a):
20 9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in
21 FY 2002; 10.6% in FY 2003; 10.8% in FY 2004; 11.0% in FY
22 2005; 11.2% in FY 2006; 11.4% in FY 2007; 11.6% in FY 2008;
23 and 11.8% in FY 2009.
24 Beginning in State fiscal year 2046, the minimum State
25 contribution for each fiscal year shall be the amount needed
26 to maintain the total assets of the System at 90% of the
27 total actuarial liabilities of the System.
28 (Source: P.A. 88-593, eff. 8-22-94; 89-136, eff. 7-14-95.)
29 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
30 Sec. 15-134. Participant.
31 (a) Each person shall, as a condition of employment,
32 become a participant and be subject to this Article on the
33 date that he or she becomes an employee.
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1 An employee who becomes a participant shall continue to
2 be a participant until he or she becomes an annuitant, dies
3 or accepts a refund of contributions, except that a person
4 shall not be deemed a participant while participating in an
5 optional program for part-time workers established under
6 Section 15-158.1 or participating in an optional program for
7 employees established under Section 15-158.2.
8 (b) A person employed concurrently by 2 or more
9 employers is eligible to participate in the system on
10 compensation received from all employers; however, his or her
11 combined basic compensation and combined earnings shall not
12 exceed the basic compensation and earnings which would have
13 been payable for full-time employment by the employer under
14 which the employee's basic compensation is the highest.
15 However, effective for all employment on or after July 1,
16 1991, where a person is employed to render service to one
17 employer during an academic or summer term and is employed by
18 another employer to render service to it during the
19 succeeding, nonoverlapping academic or summer term, then
20 exclusively for the purposes of this Section, the person
21 shall be considered to be successively employed by more than
22 one employer, rather than concurrently employed by 2 or more
23 employers.
24 (Source: P.A. 89-430, eff. 12-15-95.)
25 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
26 Sec. 15-135. Retirement annuities - Conditions.
27 (a) A participant who retires in one of the following
28 specified years with the specified amount of 35 or more years
29 of service is entitled to a retirement annuity at any age:
30 35 years if retirement is in 1997 or before;
31 34 years if retirement is in 1998;
32 33 years if retirement is in 1999;
33 32 years if retirement is in 2000;
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1 31 years if retirement is in 2001;
2 30 years if retirement is in 2002;
3 35 years if retirement is in 2003 or later.
4 A participant with 8 or more years of service after
5 September 1, 1941, is entitled to a retirement annuity on or
6 after attainment of age 55.
7 A participant with at least 5 but less than 8 years of
8 service after September 1, 1941, is entitled to a retirement
9 annuity on or after attainment of age 62.
10 A participant who has at least 25 years of service in
11 this system as a police officer or firefighter is entitled to
12 a retirement annuity on or after the attainment of age 50, if
13 Rule 4 of Section 15-136 is applicable to the participant.
14 (b) The annuity payment period shall begin on the date
15 specified by the participant submitting a written
16 application, which date shall not be prior to termination of
17 employment or more than one year before the application is
18 received by the board; however, if the participant is not an
19 employee on April 1 following the attainment of age 70 1/2,
20 the annuity payment period shall begin on that date.
21 (c) An annuity is not payable if the amount provided
22 under Section 15-136 is less than $10 per month.
23 (Source: P.A. 86-273.)
24 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
25 Sec. 15-136. Retirement annuities - Amount.
26 (a) The amount of the retirement annuity shall be
27 determined by whichever of the following rules is applicable
28 and provides the largest annuity:
29 Rule 1: The retirement annuity shall be 1.67% of final
30 rate of earnings for each of the first 10 years of service,
31 1.90% for each of the next 10 years of service, 2.10% for
32 each year of service in excess of 20 but not exceeding 30,
33 and 2.30% for each year in excess of 30; or for persons who
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1 retire on or after January 1, 1998, 2.2% of the final rate of
2 earnings for each year of service.
3 Rule 2: The retirement annuity shall be the sum of the
4 following, determined from amounts credited to the
5 participant in accordance with the actuarial tables and the
6 prescribed rate of interest in effect at the time the
7 retirement annuity begins:
8 (i) The normal annuity which can be provided on an
9 actuarially actuarial equivalent basis, by the
10 accumulated normal contributions as of the date the
11 annuity begins; and
12 (ii) an annuity from employer contributions of an
13 amount which can be provided on an actuarially equivalent
14 basis from the accumulated normal contributions made by
15 the participant under Section 15-113.6 and Section
16 15-113.7 plus 1.4 times all other accumulated normal
17 contributions made by the participant.
18 Rule 3: The retirement annuity of a participant who is
19 employed at least one-half time during the period on which
20 his or her final rate of earnings is based, shall be equal to
21 the participant's years of service not to exceed 30,
22 multiplied by (1) $96 if the participant's final rate of
23 earnings is less than $3,500, (2) $108 if the final rate of
24 earnings is at least $3,500 but less than $4,500, (3) $120 if
25 the final rate of earnings is at least $4,500 but less than
26 $5,500, (4) $132 if the final rate of earnings is at least
27 $5,500 but less than $6,500, (5) $144 if the final rate of
28 earnings is at least $6,500 but less than $7,500, (6) $156 if
29 the final rate of earnings is at least $7,500 but less than
30 $8,500, (7) $168 if the final rate of earnings is at least
31 $8,500 but less than $9,500, and (8) $180 if the final rate
32 of earnings is $9,500 or more.
33 Rule 4: A participant who is at least age 50 and has 25
34 or more years of service as a police officer or firefighter,
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1 and a participant who is age 55 or over and has at least 20
2 but less than 25 years of service as a police officer or
3 firefighter, shall be entitled to a retirement annuity of
4 2 1/4% of the final rate of earnings for each of the first 10
5 years of service as a police officer or firefighter, 2 1/2%
6 for each of the next 10 years of service as a police officer
7 or firefighter, and 2 3/4% for each year of service as a
8 police officer or firefighter in excess of 20. The
9 retirement annuity for all other service shall be computed
10 under Rule 1.
11 (b) The retirement annuity provided under Rules 1 and 3
12 above shall be reduced by 1/2 of 1% for each month the
13 participant is under age 60 at the time of retirement.
14 However, this reduction shall not apply in the following
15 cases:
16 (1) For a disabled participant whose disability
17 benefits have been discontinued because he or she has
18 exhausted eligibility for disability benefits under
19 clause (6) (5) of Section 15-152;
20 (2) For a participant who has at least the number
21 of 35 years of service required to retire at any age
22 under subsection (a) of Section 15-135; or
23 (3) For that portion of a retirement annuity which
24 has been provided on account of service of the
25 participant during periods when he or she performed the
26 duties of a police officer or firefighter, if these
27 duties were performed for at least 5 years immediately
28 preceding the date the retirement annuity is to begin.
29 (c) The maximum retirement annuity provided under Rules
30 1, 2, and 4 shall be the lesser of (1) the annual limit of
31 benefits as specified in Section 415 of the Internal Revenue
32 Code of 1986, as such Section may be amended from time to
33 time and as such benefit limits shall be adjusted by the
34 Commissioner of Internal Revenue, and (2) 80% 75% of final
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1 rate of earnings; however, this limitation of 75% of final
2 rate of earnings shall not apply to a person who is a
3 participant or annuitant on September 15, 1977 if it results
4 in a retirement annuity less than that which is payable to
5 the annuitant or which would have been payable to the
6 participant under the provisions of this Article in effect on
7 June 30, 1977.
8 (d) An annuitant whose status as an employee terminates
9 after August 14, 1969 shall receive automatic increases in
10 his or her retirement annuity as follows:
11 Effective January 1 immediately following the date the
12 retirement annuity begins, the annuitant shall receive an
13 increase in his or her monthly retirement annuity of 0.125%
14 of the monthly retirement annuity provided under Rule 1, Rule
15 2, Rule 3, or Rule 4, contained in this Section, multiplied
16 by the number of full months which elapsed from the date the
17 retirement annuity payments began to January 1, 1972, plus
18 0.1667% of such annuity, multiplied by the number of full
19 months which elapsed from January 1, 1972, or the date the
20 retirement annuity payments began, whichever is later, to
21 January 1, 1978, plus 0.25% of such annuity multiplied by the
22 number of full months which elapsed from January 1, 1978, or
23 the date the retirement annuity payments began, whichever is
24 later, to the effective date of the increase.
25 The annuitant shall receive an increase in his or her
26 monthly retirement annuity on each January 1 thereafter
27 during the annuitant's life of 3% of the monthly annuity
28 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
29 this Section. The change made under this subsection by P.A.
30 81-970 is effective January 1, 1980 and applies to each
31 annuitant whose status as an employee terminates before or
32 after that date.
33 Beginning January 1, 1990, all automatic annual increases
34 payable under this Section shall be calculated as a
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1 percentage of the total annuity payable at the time of the
2 increase, including all increases previously granted under
3 this Article. The change made in this subsection by P.A.
4 85-1008 is effective January 26, 1988, and is applicable
5 without regard to whether status as an employee terminated
6 before that date.
7 (e) If, on January 1, 1987, or the date the retirement
8 annuity payment period begins, whichever is later, the sum of
9 the retirement annuity provided under Rule 1 or Rule 2 of
10 this Section and the automatic annual increases provided
11 under the preceding subsection or Section 15-136.1, amounts
12 to less than the retirement annuity which would be provided
13 by Rule 3, the retirement annuity shall be increased as of
14 January 1, 1987, or the date the retirement annuity payment
15 period begins, whichever is later, to the amount which would
16 be provided by Rule 3 of this Section. Such increased amount
17 shall be considered as the retirement annuity in determining
18 benefits provided under other Sections of this Article. This
19 paragraph applies without regard to whether status as an
20 employee terminated before the effective date of this
21 amendatory Act of 1987, provided that the annuitant was
22 employed at least one-half time during the period on which
23 the final rate of earnings was based.
24 (f) A participant is entitled to such additional annuity
25 as may be provided on an actuarial equivalent basis, by any
26 accumulated additional contributions to his or her credit.
27 However, the additional contributions made by the participant
28 toward the automatic increases in annuity provided under this
29 Section shall not be taken into account in determining the
30 amount of such additional annuity.
31 (g) If, (1) by law, a function of a governmental unit,
32 as defined by Section 20-107 of this Code, is transferred in
33 whole or in part to an employer, and (2) a participant
34 transfers employment from such governmental unit to such
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1 employer within 6 months after the transfer of the function,
2 and (3) the sum of (A) the annuity payable to the participant
3 under Rule 1, 2, or 3 of this Section (B) all proportional
4 annuities payable to the participant by all other retirement
5 systems covered by Article 20, and (C) the initial primary
6 insurance amount to which the participant is entitled under
7 the Social Security Act, is less than the retirement annuity
8 which would have been payable if all of the participant's
9 pension credits validated under Section 20-109 had been
10 validated under this system, a supplemental annuity equal to
11 the difference in such amounts shall be payable to the
12 participant.
13 (h) On January 1, 1981, an annuitant who was receiving a
14 retirement annuity on or before January 1, 1971 shall have
15 his or her retirement annuity then being paid increased $1
16 per month for each year of creditable service. On January 1,
17 1982, an annuitant whose retirement annuity began on or
18 before January 1, 1977, shall have his or her retirement
19 annuity then being paid increased $1 per month for each year
20 of creditable service.
21 (i) On January 1, 1987, any annuitant whose retirement
22 annuity began on or before January 1, 1977, shall have the
23 monthly retirement annuity increased by an amount equal to 8¢
24 per year of creditable service times the number of years that
25 have elapsed since the annuity began.
26 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
27 Section 95. No acceleration or delay. Where this Act
28 makes changes in a statute that is represented in this Act by
29 text that is not yet or no longer in effect (for example, a
30 Section represented by multiple versions), the use of that
31 text does not accelerate or delay the taking effect of (i)
32 the changes made by this Act or (ii) provisions derived from
33 any other Public Act.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.