[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ Senate Amendment 001 ] | [ Senate Amendment 003 ] |
90_HB0110sam004
LRB9000902EGfgam26
1 AMENDMENT TO HOUSE BILL 110
2 AMENDMENT NO. . Amend House Bill 110, AS AMENDED, by
3 inserting immediately below the end of Section 10 the
4 following:
5 "Section 12. The Illinois Pension Code is amended by
6 changing Sections 15-112, 15-113.2, 15-113.3, 15-113.4,
7 15-113.5, 15-113.7, 15-125, 15-136.2, 15-143, 15-153.2,
8 15-157, 15-167.2, 15-185, 15-190, 15-191, and adding Section
9 15-168.1 as follows:
10 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
11 Sec. 15-112. Final rate of earnings. "Final rate of
12 earnings": For an employee who is paid on an hourly basis or
13 who receives an annual salary in installments during 12
14 months of each academic year, the average annual earnings
15 during the 48 consecutive calendar month period ending with
16 the last day of final termination of employment or the 4
17 consecutive academic years of service in which the employee's
18 earnings were the highest, whichever is greater. For any
19 other employee, the average annual earnings during the 4
20 consecutive academic years of service in which his or her
21 earnings were the highest. For an employee with less than 48
22 months or 4 consecutive academic years of service, the
-2- LRB9000902EGfgam26
1 average earnings during his or her entire period of service.
2 The earnings of an employee with more than 36 months of
3 service prior to the date of becoming a participant are, for
4 such period, considered equal to the average earnings during
5 the last 36 months of such service. For an employee on leave
6 of absence with pay, or on leave of absence without pay who
7 makes contributions during such leave, earnings are assumed
8 to be equal to the basic compensation on the date the leave
9 began. For an employee on disability leave, earnings are
10 assumed to be equal to the basic compensation on the date
11 disability occurs or the average earnings during the 24
12 months immediately preceding the month in which disability
13 occurs, whichever is greater.
14 If a participant is an employee for at least 6 months
15 during the academic year in which his or her employment is
16 terminated, the annual final rate of earnings shall be 25% of
17 the sum of (1) the annual basic compensation for that year,
18 and (2) the amount earned during the 36 months immediately
19 preceding that year, if this is greater than the final rate
20 of earnings as calculated under the other provisions of this
21 Section.
22 In the determination of the final rate of earnings for an
23 employee, that part of an employee's earnings for any
24 academic year beginning after June 30, 1997, which exceeds
25 the employee's earnings with that employer for the preceding
26 year by more than 20 percent shall be excluded; in the event
27 that an employee has more than one employer this limitation
28 shall be calculated separately for the earnings with each
29 employer. In making such calculation, only the basic
30 compensation of employees shall be considered, without regard
31 to vacation or overtime or to contracts for summer
32 employment.
33 The following are not considered as earnings in
34 determining final rate of earnings: separation pay,
-3- LRB9000902EGfgam26
1 retirement pay, payment in lieu of unused sick leave and
2 payments from an employer for the period used in determining
3 final rate of earnings for any purpose other than services
4 rendered, leave of absence or vacation granted during that
5 period, and vacation of up to 56 work days allowed upon
6 termination of employment under a vacation policy of an
7 employer which was in effect on or before January 1, 1977.
8 Intermittent periods of service shall be considered as
9 consecutive in determining final rate of earnings.
10 (Source: P.A. 84-1472.)
11 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
12 Sec. 15-113.2. Service for leaves of absence. "Service
13 for leaves of absence" includes those periods of leaves of
14 absence at less than 50% pay, except military leave and
15 periods of disability leave in excess of 60 days, for which
16 the employee pays the contributions required under Section
17 15-157 in accordance with rules prescribed by the board based
18 upon the employee's basic compensation on the date the leave
19 begins, or in the case of leave for service with a teacher
20 organization, based upon the actual compensation received by
21 the employee for such service after January 26, 1988, if the
22 employee so elects within 30 days of that date or the date
23 the leave for service with a teacher organization begins,
24 whichever is later; provided that the employee (1) returns to
25 employment covered by this system at the expiration of the
26 leave, or within 30 days after the termination of a
27 disability which occurs during the leave and continues this
28 employment at a percentage of time equal to or greater than
29 the percentage of time immediately preceding the leave of
30 absence for at least 8 consecutive months or a period equal
31 to the period of the leave, whichever is less, or (2) is
32 precluded from meeting the foregoing conditions because of
33 disability or death. If service credit is denied because the
-4- LRB9000902EGfgam26
1 employee fails to meet these conditions, the contributions
2 covering the leave of absence shall be refunded without
3 interest. The return to employment condition does not apply
4 if the leave of absence is for service with a teacher
5 organization and the leave of absence is in effect on the
6 effective date of this amendatory Act of 1993.
7 Service credit provided under this Section shall not
8 exceed 3 years in any period of 10 years, unless the employee
9 is on special leave granted by the employer for service with
10 a teacher organization. Commencing with the fourth year in
11 any period of 10 years, a participant on such special leave
12 is also required to pay employer contributions equal to the
13 normal cost as defined in Section 15-155, based upon the
14 employee's basic compensation on the date the leave begins,
15 or based upon the actual compensation received by the
16 employee for service with a teacher organization if the
17 employee has so elected.
18 (Source: P.A. 86-1488; 87-1265.)
19 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
20 Sec. 15-113.3. Service for periods of military service.
21 "Service for periods of military service": Those periods,
22 not exceeding 5 years, during which a person served in the
23 armed forces of the United States, of which all but 2 years
24 must have immediately followed a period of employment with an
25 employer under this system or the State Employees' Retirement
26 System of Illinois; provided that the person received a
27 discharge other than dishonorable and again became an
28 employee under this system within one year after discharge.
29 However, for the up to 2 years of military service not
30 immediately following employment, the applicant must make
31 contributions to the System (1) at the rates provided in
32 Section 15-157 based upon the employee's basic compensation
33 on the last date as a participating employee prior to such
-5- LRB9000902EGfgam26
1 military service, or on the first date as a participating
2 employee after such military service, whichever is greater,
3 plus (2) an amount determined by the board to be equal to the
4 employer's normal cost of the benefits accrued for such
5 military service, plus (3) interest on items (1) and (2) at
6 the effective rate from the later of the date of first
7 membership in the System or the date of conclusion of
8 military service to the date of payment. The change in the
9 required contribution for purchased military credit made by
10 this amendatory Act of 1993 does not entitle any person to a
11 refund of contributions already paid.
12 The changes to this Section made by this amendatory Act
13 of 1991 shall apply not only to persons who on or after its
14 effective date are in service under the System, but also to
15 persons whose employment terminated prior to that date,
16 whether or not the person is an annuitant on that date. In
17 the case of an annuitant who applies for credit allowable
18 under this Section for a period of military service that did
19 not immediately follow employment, and who has made the
20 required contributions for such credit, the annuity shall be
21 recalculated to include the additional service credit, with
22 the increase taking effect on the date the System received
23 written notification of the annuitant's intent to purchase
24 the credit, if payment of all the required contributions is
25 made within 60 days of such notice, or else on the first
26 annuity payment date following the date of payment of the
27 required contributions. In calculating the automatic annual
28 increase for an annuity that has been recalculated under this
29 Section, the increase attributable to the additional service
30 allowable under this amendatory Act of 1991 shall be included
31 in the calculation of automatic annual increases accruing
32 after the effective date of the recalculation.
33 (Source: P.A. 87-794; 87-1265.)
-6- LRB9000902EGfgam26
1 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
2 Sec. 15-113.4. Service for unused sick leave. "Service
3 for unused sick leave": A participant who is an employee
4 under this System or one of the other systems subject to
5 Article 20 of this Code within 60 days immediately preceding
6 the date on which his or her retirement annuity begins, is
7 entitled to credit for service for that portion of unused
8 sick leave earned in the course of employment with an
9 employer and credited on the date of termination of
10 employment by an employer for which payment is not received,
11 in accordance with the following schedule: 30 through 90
12 full calendar days and 20 through 59 full work days of unused
13 sick leave, 1/4 of a year of service; 91 through 180 full
14 calendar days and 60 through 119 full work days, 1/2 of a
15 year of service; 181 through 270 full calendar days and 120
16 through 179 full work days, 3/4 of a year of service; 271
17 through 360 full calendar days and 180 through 240 full work
18 days, one year of service. Only uncompensated, unused sick
19 leave earned in accordance with an employer's sick leave
20 accrual policy generally applicable to employees or a class
21 of employees shall be taken into account in calculating
22 service credit under this Section. Any uncompensated, unused
23 sick leave granted by an employer to facilitate the hiring,
24 retirement, termination, or other special circumstances of an
25 employee shall not be taken into account in calculating
26 service credit under this Section. If a participant
27 transfers from one employer to another, the unused sick leave
28 credited by the previous employer shall be considered in
29 determining service to be credited under this Section, even
30 if the participant terminated service prior to the effective
31 date of P.A. 86-272 (August 23, 1989); if necessary, the
32 retirement annuity shall be recalculated to reflect such sick
33 leave credit. Each employer shall certify to the board the
34 number of days of unused sick leave accrued to the
-7- LRB9000902EGfgam26
1 participant's credit on the date that the participant's
2 status as an employee terminated. This period of unused sick
3 leave shall not be considered in determining the date the
4 retirement annuity begins.
5 (Source: P.A. 86-272; 87-794.)
6 (40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
7 Sec. 15-113.5. Service for employment with other public
8 agencies in this State. "Service for employment with other
9 public agencies in this State": includes the following
10 periods:
11 (a) periods during which a person rendered services for
12 the State of Illinois, prior to January 1, 1944, under
13 employment not covered by this Article, if (1) such periods
14 would have been considered creditable service under the State
15 Employees' Retirement System of Illinois had that system been
16 in effect at that time, and (2) service credit for such
17 periods has not been granted under the State Employees'
18 Retirement System of Illinois.
19 (b) periods credited under the State Employees'
20 Retirement System of Illinois on the date an employee became
21 eligible for participation in the State Universities
22 Retirement System as a result of a transfer of a State
23 function from a department, commission or other agency of
24 this State to an employer, excluding periods as a "covered
25 employee" as defined in Article 14 of this Code, provided the
26 employee has received a refund of his or her contributions
27 from the State Employees' Retirement System of Illinois and
28 pays to this system contributions equal to the amount of the
29 refund together with compound interest at the rate required
30 for repayment of a refund under Section 15-154 from the date
31 the refund is received to the date payment is made.
32 (c) periods credited in a retirement system covering a
33 governmental unit, as defined in Section 20-107 on the date a
-8- LRB9000902EGfgam26
1 person becomes a participant, if (1) a function of this
2 governmental unit is transferred in whole or in part to an
3 employer, and (2) the person transfers employment from the
4 governmental unit to such employer within 6 months after the
5 employer begins operation of this function, and (3) the
6 person cannot qualify for a proportional retirement annuity
7 from the retirement system covering this governmental unit,
8 and (4) the participant receives a refund of his or her
9 contributions from the retirement system covering this
10 governmental unit and pays to this system contributions equal
11 to the amount of the refund together with compound interest
12 from the date the refund is made by the system to the date
13 payment is received by the board at the rate of 6% per annum
14 through August 31, 1982, and at the effective rates after
15 that date.
16 (d) periods during which a participant contributed to
17 the Park Policemen's Annuity Fund as defined in Section
18 5-219, provided the participant and the Chicago Policemen's
19 Annuity Fund pay to this system the required employee and
20 employer contributions.
21 (e) periods during which a person rendered services for
22 an athletic association affiliated with the University of
23 Illinois, provided that (1) the employee was employed by that
24 athletic association on January 1, 1960, (2) annuity
25 contracts covering that employment have been purchased by
26 other retirement systems covering employees of the athletic
27 association, and (3) the employee files with the board an
28 election to become a participant and assigns to the board his
29 or her right, title, and interest in those annuity contracts.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
32 Sec. 15-113.7. Service for other public employment.
33 "Service for other public employment": Includes those
-9- LRB9000902EGfgam26
1 periods not exceeding the lesser of 10 years or 2/3 of the
2 service granted under other Sections of this Article dealing
3 with service credit, during which a person was employed full
4 time by the United States government, or by the government of
5 a state, or by a political subdivision of a state, or by an
6 agency or instrumentality of any of the foregoing, if the
7 person (1) cannot qualify for a retirement pension or other
8 benefit based upon employer contributions from another
9 retirement system, exclusive of federal social security,
10 based in whole or in part upon this employment, and (2) pays
11 the lesser of (A) an amount equal to 8% of his or her annual
12 basic compensation on the date of becoming a participating
13 employee subsequent to this service multiplied by the number
14 of years of such service, together with compound interest
15 from the date participation begins to the date payment is
16 received by the board at the rate of 6% per annum through
17 August 31, 1982, and at the effective rates after that date,
18 and (B) 50% of the actuarial value of the increase in the
19 retirement annuity provided by this service, and (3)
20 contributes for at least 5 years subsequent to this
21 employment to one or more of the following systems: the
22 State Universities Retirement System, the Teachers'
23 Retirement System of the State of Illinois, and the Public
24 School Teachers' Pension and Retirement Fund of Chicago. If
25 a function of a governmental unit as defined by Section
26 20-107 is transferred by law, in whole or in part to an
27 employer, and an employee transfers employment from this
28 governmental unit to such employer within 6 months of the
29 transfer of the function, the payment for service authorized
30 under this Section shall not exceed the amount which would
31 have been payable for this service to the retirement system
32 covering the governmental unit from which the function was
33 transferred.
34 The service granted under this Section shall not be
-10- LRB9000902EGfgam26
1 considered in determining whether the person has the minimum
2 of 8 years of service required to qualify for a retirement
3 annuity at age 55 or the 5 years of service required to
4 qualify for a retirement annuity at age 62, as provided in
5 Section 15-135. The maximum allowable service of 10 years
6 for this governmental employment shall be reduced by the
7 service credit which is validated under paragraph (3) of
8 Section 16-127 and paragraph one of Section 17-133.
9 Except as hereinafter provided, this Section shall not
10 apply to persons who become participants in the system after
11 September 1, 1974. Except as hereinafter provided, credit
12 for military service under this Section shall be allowed only
13 to persons who have applied for such credit before September
14 1, 1974. The foregoing September 1, 1974, limitations do not
15 apply to any person who became a participant in the system on
16 or before January 15, 1977, and prior thereto, had a minimum
17 of 20 years of service credit granted in the General Assembly
18 Retirement System.
19 (Source: P.A. 87-1265.)
20 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
21 Sec. 15-125. "Prescribed Rate of Interest; Effective
22 Rate of Interest":
23 (1) "Prescribed rate of interest": The rate of interest
24 to be used in actuarial valuations and in development of
25 actuarial tables as determined by the board on the basis of
26 the probable average effective rate of interest on a long
27 term basis.
28 (2) "Effective rate of interest": The interest rate for
29 all or any part of a fiscal year that is determined by the
30 board based on factors including the system's past and
31 expected investment experience; historical and expected
32 fluctuations in the market value of investments; the
33 desirability of minimizing volatility in the effective rate
-11- LRB9000902EGfgam26
1 of interest from year to year; the provision of reserves for
2 anticipated losses upon sales, redemptions, or other
3 disposition of investments and for variations in interest
4 experience. This amendatory Act of 1997 is a clarification
5 of existing law. The interest rate for any fiscal year
6 determined by the board from the investment experience of the
7 preceding fiscal years and the estimated investment
8 experience of the current fiscal year. In determining the
9 effective rate of interest to be credited to member
10 contribution accounts and other reserves, the board may
11 provide for reserves for anticipated losses upon sales,
12 redemptions or other disposition of investments and for
13 reserves for variations in interest experience.
14 (Source: P.A. 79-1146.)
15 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
16 Sec. 15-136.2. Early retirement without discount. A
17 participant whose retirement annuity begins after June 1,
18 1981 and on or before September 1, 2002 1997 and within six
19 months of the last day of employment for which retirement
20 contributions were required, may elect at the time of
21 application to make a one time employee contribution to the
22 System and thereby avoid the early retirement reduction in
23 retirement annuity specified under subsection (b) of Section
24 15-136. The exercise of the election shall obligate the last
25 employer to also make a one time non-refundable contribution
26 to the System.
27 The one time employee and employer contributions shall be
28 a percentage of the retiring participant's highest full time
29 annual salary rate during the academic years which were
30 considered in determining his or her final rate of earnings,
31 or if not full time then the full time equivalent. The
32 employee contribution rate shall be 7% multiplied by the
33 lesser of the following 2 sums: (1) the number of years that
-12- LRB9000902EGfgam26
1 the participant is less than age 60; or (2) the number of
2 years that the participant's creditable service is less than
3 35 years. The employer contribution shall be at the rate of
4 20% for each year the participant is less than age 60. The
5 employer shall pay the employer contribution from the same
6 source of funds which is used in paying earnings to
7 employees.
8 Upon receipt of the application and election, the System
9 shall determine the one time employee and employer
10 contributions. The provisions of this Section shall not be
11 applicable until all the above outlined contributions have
12 been received by the System; however, the date such
13 contributions are received shall not be considered in
14 determining the effective date of retirement.
15 For persons who apply to the Board after the effective
16 date of this amendatory Act of 1993 and before July 1, 1993,
17 requesting a retirement annuity to begin no earlier than July
18 1, 1993 and no later than June 30, 1994, the employer shall
19 pay both the employee and employer contributions required
20 under this Section.
21 The number of employees retiring under this Section in
22 any fiscal year may be limited at the option of the employer
23 to no less than 15% of those eligible. The right to elect
24 early retirement without discount shall be allocated among
25 those applying on the basis of seniority in the service of
26 the last employer.
27 (Source: P.A. 87-794; 87-1265.)
28 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
29 Sec. 15-143. Death benefits - General provisions. All
30 death benefits shall be paid as a single cash sum or
31 otherwise as the beneficiary and the board mutually agree,
32 except where an annuity is payable under Section 15-144. A
33 death benefit shall be paid as soon as practicable after
-13- LRB9000902EGfgam26
1 receipt by the board of (1) a written application by the
2 beneficiary and (2) such evidence of death and identification
3 as the board shall require.
4 (Source: P.A. 83-1440.)
5 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
6 Sec. 15-153.2. Disability retirement annuity. A
7 participant whose disability benefits are discontinued under
8 the provisions of clause (6) (5) of Section 15-152, is
9 entitled to a disability retirement annuity of 35% of the
10 basic compensation which was payable to the participant at
11 the time that disability began, provided at least 2 licensed
12 and practicing physicians appointed by the board certify that
13 the participant has a medically determinable physical or
14 mental impairment which would prevent him or her from
15 engaging in any substantial gainful activity, and which can
16 be expected to result in death or which has lasted or can be
17 expected to last for a continuous period of not less than 12
18 months. The terms "medically determinable physical or mental
19 impairment" and "substantial gainful activity" shall have the
20 meanings ascribed to them in the "Social Security Act", as
21 now or hereafter amended, and the regulations issued
22 thereunder.
23 The disability retirement annuity payment period shall
24 begin immediately following the expiration of the disability
25 benefit payments under clause (6) (5) of Section 15-152 and
26 shall be discontinued when (1) the physical or mental
27 impairment no longer prevents the participant from engaging
28 in any substantial gainful activity, (2) the participant dies
29 or (3) the participant elects to receive a retirement annuity
30 under Sections 15-135 and 15-136. If a person's disability
31 retirement annuity is discontinued under clause (1), all
32 rights and credits accrued in the system on the date that the
33 disability retirement annuity began shall be restored, and
-14- LRB9000902EGfgam26
1 the disability retirement annuity paid shall be considered as
2 disability payments under clause (6) (5) of Section 15-152.
3 (Source: P.A. 83-1440.)
4 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
5 Sec. 15-157. Employee Contributions.
6 (a) Each participating employee shall make contributions
7 towards the retirement annuity of each payment of earnings
8 applicable to employment under this system on and after the
9 date of becoming a participant as follows: Prior to
10 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
11 to August 31, 1955, 5%; from September 1, 1955 to August 31,
12 1969, 6%; from September 1, 1969, 6 1/2%. These
13 contributions are to be considered as normal contributions
14 for purposes of this Article.
15 Each participant who is a police officer or firefighter
16 shall make normal contributions of 8% of each payment of
17 earnings applicable to employment as a police officer or
18 firefighter under this system on or after September 1, 1981,
19 unless he or she files with the board within 60 days after
20 the effective date of this amendatory Act of 1991 or 60 days
21 after the board receives notice that he or she is employed as
22 a police officer or firefighter, whichever is later, a
23 written notice waiving the retirement formula provided by
24 Rule 4 of Section 15-136. This waiver shall be irrevocable.
25 If a participant had met the conditions set forth in Section
26 15-132.1 prior to the effective date of this amendatory Act
27 of 1991 but failed to make the additional normal
28 contributions required by this paragraph, he or she may elect
29 to pay the additional contributions plus compound interest at
30 the effective rate. If such payment is received by the
31 board, the service shall be considered as police officer
32 service in calculating the retirement annuity under Rule 4 of
33 Section 15-136.
-15- LRB9000902EGfgam26
1 (b) Starting September 1, 1969, each participating
2 employee shall make additional contributions of 1/2 of 1% of
3 earnings to finance a portion of the cost of the annual
4 increases in retirement annuity provided under Section
5 15-136.
6 (c) Each participating employee shall make survivors
7 insurance contributions of 1% of earnings applicable under
8 this system on and after August 1, 1959. Contributions in
9 excess of $80 during any fiscal year beginning before August
10 31, 1969 and in excess of $120 during any fiscal year
11 thereafter until September 1, 1971 shall be considered as
12 additional contributions for purposes of this Article.
13 (d) If the board by board rule so permits and subject to
14 such conditions and limitations as may be specified in its
15 rules, a participant may make other additional contributions
16 of such percentage of earnings or amounts as the participant
17 shall elect in a written notice thereof received by the
18 board.
19 (e) That fraction of a participant's total accumulated
20 normal contributions, the numerator of which is equal to the
21 number of years of service in excess of that which is
22 required to qualify for the maximum retirement annuity, and
23 the denominator of which is equal to the total service of the
24 participant, shall be considered as accumulated additional
25 contributions. The determination of the applicable maximum
26 annuity and the adjustment in contributions required by this
27 provision shall be made as of the date of the participant's
28 retirement.
29 (f) Notwithstanding the foregoing, a participating
30 employee shall not be required to make contributions under
31 this Section after the date upon which continuance of such
32 contributions would otherwise cause his or her retirement
33 annuity to exceed the maximum retirement annuity as specified
34 in clause (1) of subsection (c) of Section 15-136.
-16- LRB9000902EGfgam26
1 (Source: P.A. 86-272; 86-1488.)
2 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
3 Sec. 15-167.2. To issue bonds. To borrow money and, in
4 evidence of its obligation to repay the borrowing, to issue
5 bonds for the purpose of financing the cost of any project.
6 The bonds shall be authorized pursuant to a resolution to be
7 adopted by the board setting forth all details in connection
8 with the bonds.
9 The principal amount of the outstanding bonds of the
10 board shall not at any time exceed $20,000,000 $10,000,000.
11 The bonds may be issued in one or more series, bear such
12 date or dates, become due at such time or times within 40
13 years, bear interest payable at such intervals and at such
14 rate or rates, which rates may be fixed or variable, be in
15 such denominations, be in such form, either coupon,
16 registered or book-entry, carry such conversion, registration
17 and exchange privileges, be subject to defeasance upon such
18 terms, have such rank or priority, be executed in such
19 manner, be payable in such medium of payment at such place or
20 places within or without the State of Illinois, make
21 provision for a corporate trustee within or without the State
22 of Illinois with respect to such bonds, prescribe the rights,
23 powers and duties thereof to be exercised for the benefit of
24 the board, the system and the protection of the bondholders,
25 provide for the holding in trust, investment and use of
26 moneys, funds and accounts held in connection therewith, be
27 subject to such terms of redemption with or without premium,
28 and be sold in such manner at private or public sale and at
29 such price, all as the board shall determine. Whenever bonds
30 are sold at a price less than par, they shall be sold at such
31 price and bear interest at such rate or rates that either the
32 true interest cost (yield) or the net interest rate, as may
33 be selected by the board, received upon the sale of such
-17- LRB9000902EGfgam26
1 bonds does not exceed the maximum interest rate permitted by
2 the Bond Authorization Act, as amended at the time of the
3 making of the contract.
4 Any bonds may be refunded or advance refunded upon such
5 terms as the board may determine for such term of years, not
6 exceeding 40 years, and in such principal amount, as may be
7 deemed necessary by the board. Any redemption premium
8 payable upon the redemption of bonds may be payable from the
9 proceeds of refunding bonds issued for the purpose of
10 refunding such bonds, from any lawfully available source or
11 from both refunding bond proceeds and such other sources.
12 The bonds or refunding bonds shall be obligations of the
13 board payable from the income, interest and dividends derived
14 from investments of the board, all as may be designated in
15 the resolution of the board authorizing the issuance of the
16 bonds. The bonds shall be secured as provided in the
17 authorizing resolution, which may, notwithstanding any other
18 provision of this Code, include a specific pledge or
19 assignment of and lien on or security interest in the income,
20 interest and dividends derived from investments of the board
21 and a specific pledge or assignment of and lien on or
22 security interest in any funds, reserves or accounts
23 established or provided for by the resolution of the board
24 authorizing the issuance of the bonds. The bonds or refunding
25 bonds shall not be payable from any employer or employee
26 contributions derived from State appropriations nor
27 constitute obligations or indebtedness of the State of
28 Illinois or of any municipal corporation or other body
29 politic and corporate in the State.
30 The holder or holders of any bonds issued by the board
31 may bring suits at law or proceedings in equity to compel the
32 performance and observance by the board or any of its agents
33 or employees of any contract or covenant made with the
34 holders of the bonds, to compel the board or any of its
-18- LRB9000902EGfgam26
1 agents or employees to perform any duties required to be
2 performed for the benefit of the holders of the bonds by the
3 provisions of the resolution authorizing their issuance, and
4 to enjoin the board or any of its agents or employees from
5 taking any action in conflict with any such contract or
6 covenant.
7 Notwithstanding the provisions of Section 15-188 of this
8 Code, if the board fails to pay the principal of, premium, if
9 any, or interest on any of the bonds as they become due, a
10 civil action to compel payment may be instituted in the
11 appropriate circuit court by the holder or holders of the
12 bonds upon which such default exists or by a trustee acting
13 on behalf of the holders.
14 No bonds may be issued under this Section until a copy of
15 the resolution of the board authorizing such bonds, certified
16 by the secretary of the board, has been filed with the
17 Governor of the State of Illinois.
18 "Bonds" means any instrument evidencing the obligation to
19 pay money, including without limitation bonds, notes,
20 installment or financing contracts, leases, certificates,
21 warrants, and any other evidences of indebtedness.
22 "Project" means the acquisition, construction, equipping,
23 improving, expanding and furnishing of any office building
24 for the use of the system, including any real estate or
25 interest in real estate necessary or useful in connection
26 therewith.
27 "Cost of any project" includes all capital costs of the
28 project, an amount for expenses of issuing any bonds to
29 finance such project, including underwriter's discount and
30 costs of bond insurance or other credit enhancement, an
31 amount necessary to provide for a reserve fund for the
32 payment of the principal of and interest on such bonds and an
33 amount to pay interest on such bonds for a period not to
34 exceed the greater of 2 years or a period ending 6 months
-19- LRB9000902EGfgam26
1 after the estimated date of completion of the project.
2 (Source: P.A. 86-1034.)
3 (40 ILCS 5/15-168.1 new)
4 Sec. 15-168.1. Testimony and the production of records.
5 The secretary of the Board shall have the power to issue
6 subpoenas to compel the attendance of witnesses and the
7 production of documents and records, including law
8 enforcement records maintained by law enforcement agencies,
9 in conjunction with a disability claim, administrative review
10 proceedings, or felony forfeiture investigation. The fees of
11 witnesses for attendance and travel shall be the same as the
12 fees of witnesses before the circuit courts of this State and
13 shall be paid by the party seeking the subpoena. The Board
14 may apply to any circuit court in the State for an order
15 requiring compliance with a subpoena issued under this
16 Section. Subpoenas issued under this Section shall be
17 subject to applicable provisions of the Code of Civil
18 Procedure.
19 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
20 Sec. 15-185. Annuities, etc. Exempt. The accumulated
21 employee and employer contributions shall be held in trust
22 for each participant and annuitant, and this trust shall be
23 treated as a spendthrift trust. Except as provided in this
24 Article, all cash, securities and other property of this
25 system, all annuities and other benefits payable under this
26 Article and all accumulated credits of participants and
27 annuitants in this system and the right of any person to
28 receive an annuity or other benefit under this Article, or a
29 refund of contributions, shall not be subject to judgment,
30 execution, garnishment, attachment, or other seizure by
31 process, in bankruptcy or otherwise, nor to sale, pledge,
32 mortgage or other alienation, and shall not be assignable.
-20- LRB9000902EGfgam26
1 The board, however, may deduct from the benefits, refunds and
2 credits payable to the participant, annuitant or beneficiary,
3 amounts owed by the participant or annuitant to the system.
4 No attempted sale, transfer or assignment of any benefit,
5 refund or credit shall prevent the right of the board to make
6 the deduction and offset authorized in this Section. Any
7 participant or annuitant may authorize the board to deduct
8 from disability benefits or annuities, premiums due under any
9 group hospital-surgical insurance program which is sponsored
10 or approved by any employer; however, the deductions from
11 disability benefits may not begin prior to 6 months after the
12 disability occurs.
13 A person receiving an annuity or benefit may also
14 authorize withholding from such annuity or benefit for the
15 purposes enumerated in the State Salary and Annuity
16 Withholding Act.
17 This amendatory Act of 1989 is a clarification of
18 existing law and shall be applicable to every participant and
19 annuitant without regard to whether status as an employee
20 terminates before the effective date of this amendatory Act
21 of 1989.
22 (Source: P.A. 86-273; 86-1488.)
23 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
24 Sec. 15-190. Persons under legal disability. If a person
25 is under legal disability when any right or privilege accrues
26 to him or her under this Article, a guardian may be appointed
27 pursuant to law, and may, on behalf of such person, claim and
28 exercise any such right or privilege with the same force and
29 effect as if the person had not been under a legal disability
30 and had claimed or exercised such right or privilege.
31 If a person's application for benefits or a physician's
32 certificate on file with the board shows that the person is
33 under a legal disability, and no guardian has been appointed
-21- LRB9000902EGfgam26
1 for his or her estate, the benefits payable under this
2 Article may be paid (1) directly to the person under legal
3 disability, or (2) to either parent of the person under legal
4 disability or any adult person with whom the person under
5 legal disability may at the time be living, provided only
6 that such parent or adult person to whom any amount is to be
7 paid shall have advised the board in writing that such amount
8 will be held or used for the benefit of the person under
9 legal disability, or (3) to the trustee of any trust created
10 for the sole benefit of the person under legal disability
11 while that person is living, provided only that the trustee
12 of such trust to whom any amount is to be paid shall have
13 advised the board in writing that such amount will be held or
14 used for the benefit of the person under legal disability.
15 The system shall not be required to determine the validity of
16 the trust or any of the terms thereof. The representation of
17 the trustee that the trust meets the requirements of this
18 Section shall be conclusive as to the system. The written
19 receipt of the person under legal disability or the other
20 person who receives such payment shall be an absolute
21 discharge of the system's liability in respect of the amount
22 so paid.
23 (Source: P.A. 86-1488.)
24 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
25 Sec. 15-191. Payment of benefits to minors. If any
26 benefits under this Article become payable to a minor, the
27 board may make payment (1) directly to the minor, (2) to any
28 person who has legally qualified and is acting as guardian of
29 the minor's person or property in any jurisdiction, or (3) to
30 either parent of the minor or to any adult person with whom
31 the minor may at the time be living, provided only that the
32 parent or other person to whom any amount is to be paid shall
33 have advised the board in writing that such amount will be
-22- LRB9000902EGfgam26
1 held or used for the benefit of the minor, or (4) to the
2 trustee of any trust created for the sole benefit of the
3 minor while that minor is living, provided only that the
4 trustee of such trust to whom any amount is to be paid shall
5 have advised the board in writing that such amount will be
6 held or used for the benefit of the minor. The system shall
7 not be required to determine the validity of the trust or any
8 of the terms thereof. The representation of the trustee that
9 the trust meets the requirements of this Section shall be
10 conclusive as to the system. The written receipt of the
11 minor, parent, trustee, or other person who receives such
12 payment shall be an absolute discharge of the system's
13 liability in respect of the amount so paid.
14 (Source: P.A. 83-1440.)".