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91_HB1583enr HB1583 Enrolled LRB9101658EGfg 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Employees Group Insurance Act of 5 1971 is amended by changing Section 6.10 as follows: 6 (5 ILCS 375/6.10) 7 Sec. 6.10. Contributions to the Community College Health 8 Insurance Security Fund. 9 (a) Beginning January 1, 1999, every active contributor 10 of the State Universities Retirement System (established 11 under Article 15 of the Illinois Pension Code) who (1) is a 12 full-time employee of a community college district (other 13 than a community college district subject to Article VII of 14 the Public Community College Act) or an association of 15 community college boards and (2) is not an employee as 16 defined in Section 3 of this Act shall make contributions 17 toward the cost of community college annuitant and survivor 18 health benefits at the rate of 0.50% of salary. 19 These contributions shall be deducted by the employer and 20 paid to the State Universities Retirement System as service 21 agent for the Department of Central Management Services. The 22 System may use the same processes for collecting the 23 contributions required by this subsection that it uses to 24 collect the contributions received from those employees under 25 Section 15-157 of the Illinois Pension Code. An employer may 26 agree to pick up or pay the contributions required under this 27 subsection on behalf of the employee; such contributions 28 shall be deemed to have been paid by the employee. 29A person required to make contributions under this30subsection (a) who purchases optional service credit under31Article 15 of the Illinois Pension Code must also pay theHB1583 Enrolled -2- LRB9101658EGfg 1contribution required under this subsection (a) with respect2to that optional service credit. This contribution must be3received by the System before that optional service credit is4granted.5 The State Universities Retirement System shall promptly 6 deposit all moneys collected under this subsection (a) into 7 the Community College Health Insurance Security Fund created 8 in Section 6.9 of this Act. The moneys collected under this 9 Section shall be used only for the purposes authorized in 10 Section 6.9 of this Act and shall not be considered to be 11 assets of the State Universities Retirement System. 12 Contributions made under this Section are not transferable to 13 other pension funds or retirement systems and are not 14 refundable upon termination of service. 15 (b) Beginning January 1, 1999, every community college 16 district (other than a community college district subject to 17 Article VII of the Public Community College Act) or 18 association of community college boards that is an employer 19 under the State Universities Retirement System shall 20 contribute toward the cost of the community college health 21 benefits provided under Section 6.9 of this Act an amount 22 equal to 0.50% of the salary paid to its full-time employees 23 who participate in the State Universities Retirement System 24 and are not members as defined in Section 3 of this Act. 25 These contributions shall be paid by the employer to the 26 State Universities Retirement System as service agent for the 27 Department of Central Management Services. The System may 28 use the same processes for collecting the contributions 29 required by this subsection that it uses to collect the 30 contributions received from those employers under Section 31 15-155 of the Illinois Pension Code. 32 The State Universities Retirement System shall promptly 33 deposit all moneys collected under this subsection (b) into 34 the Community College Health Insurance Security Fund created HB1583 Enrolled -3- LRB9101658EGfg 1 in Section 6.9 of this Act. The moneys collected under this 2 Section shall be used only for the purposes authorized in 3 Section 6.9 of this Act and shall not be considered to be 4 assets of the State Universities Retirement System. 5 Contributions made under this Section are not transferable to 6 other pension funds or retirement systems and are not 7 refundable upon termination of service. 8 (c) On or before November 15 of each year, the Board of 9 Trustees of the State Universities Retirement System shall 10 certify to the Governor, the Director of Central Management 11 Services, and the State Comptroller its estimate of the total 12 amount of contributions to be paid under subsection (a) of 13 this Section for the next fiscal year. The certification 14 shall include a detailed explanation of the methods and 15 information that the Board relied upon in preparing its 16 estimate. As soon as possible after the effective date of 17 this Section, the Board shall submit its estimate for fiscal 18 year 1999. 19 (d) Beginning in fiscal year 1999, on the first day of 20 each month, or as soon thereafter as may be practical, the 21 State Treasurer and the State Comptroller shall transfer from 22 the General Revenue Fund to the Community College Health 23 Insurance Security Fund 1/12 of the annual amount 24 appropriated for that fiscal year to the State Comptroller 25 for deposit into the Community College Health Insurance 26 Security Fund under Section 1.4 of the State Pension Funds 27 Continuing Appropriation Act. 28 (e) Except where otherwise specified in this Section, 29 the definitions that apply to Article 15 of the Illinois 30 Pension Code apply to this Section. 31 (Source: P.A. 90-497, eff. 8-18-97.) 32 Section 10. The Illinois Pension Code is amended by 33 changing Sections 1-113.2, 1-116, 2-121, 2-121.1, 3-110, HB1583 Enrolled -4- LRB9101658EGfg 1 7-139, 7-141, 7-141.1, 7-145.1, 7-157, 7-164, 7-166, 7-167, 2 7-184, 7-211, 8-125, 8-139, 8-153, 8-171, 8-244, 9-149, 3 9-194, 11-124, 11-134.2, 11-148, 11-167, 11-181, 11-182, 4 11-223, 13-303, 13-309, 13-310, 13-311, 13-314, 13-603, 5 14-118, 14-120, 14-128, 14-130, 15-107, 15-111, 15-112, 6 15-120, 15-134.5, 15-136.4, 15-139, 15-140, 15-141, 15-142, 7 15-144, 15-145, 15-154, 15-158.2, 15-181, 16-133, 16-135, 8 16-136.4, 16-138, 16-140, 16-143, 16-149.4, 16-184, 17-106, 9 17-117, 17-133, 17-150, 18-128, 20-121, 20-123, 20-124, 10 20-125, and 20-131 and adding Sections 1-120, 7-224, and 11 15-132.2 as follows: 12 (40 ILCS 5/1-113.2) 13 Sec. 1-113.2. List of permitted investments for all 14 Article 3 or 4 pension funds. Any pension fund established 15 under Article 3 or 4 may invest in the following items: 16 (1) Interest bearing direct obligations of the United 17 States of America. 18 (2) Interest bearing obligations to the extent that they 19 are fully guaranteed or insured as to payment of principal 20 and interest by the United States of America. 21 (3) Interest bearing bonds, notes, debentures, or other 22 similar obligations of agencies of the United States of 23 America. For the purposes of this Section, "agencies of the 24 United States of America" includes: (i) the Federal National 25 Mortgage Association and the Student Loan Marketing 26 Association; (ii) federal land banks, federal intermediate 27 credit banks, federal farm credit banks, and any other entity 28 authorized to issue direct debt obligations of the United 29 States of America under the Farm Credit Act of 1971 or 30 amendments to that Act; (iii) federal home loan banks and the 31 Federal Home Loan Mortgage Corporation; and (iv) any agency 32 created by Act of Congress that is authorized to issue direct 33 debt obligations of the United States of America. HB1583 Enrolled -5- LRB9101658EGfg 1 (4) Interest bearing savings accounts or certificates of 2 deposit, issued by federally chartered banks or savings and 3 loan associations, to the extent that the deposits are 4 insured by agencies or instrumentalities of the federal 5 government. 6 (5) Interest bearing savings accounts or certificates of 7 deposit, issued by State of Illinois chartered banks or 8 savings and loan associations, to the extent that the 9 deposits are insured by agencies or instrumentalities of the 10 federal government. 11 (6) Investments in credit unions, to the extent that the 12 investments are insured by agencies or instrumentalities of 13 the federal government. 14 (7) Interest bearing bonds of the State of Illinois. 15 (8) Pooled interest bearing accounts managed by the 16 Illinois Public Treasurer's Investment Pool in accordance 17 with the Deposit of State Moneys Act and interest bearing 18 funds or pooled accounts managed, operated, and administered 19 by banks, subsidiaries of banks, or subsidiaries of bank 20 holding companies in accordance with the laws of the State of 21 Illinois. 22 (9) Interest bearing bonds or tax anticipation warrants 23 of any county, township, or municipal corporation of the 24 State of Illinois. 25 (10) Direct obligations of the State of Israel, subject 26 to the conditions and limitations of item (5.1) of Section 27 1-113. 28 (11) Money market mutual funds managed by investment 29 companies that are registered under the federal Investment 30 Company Act of 1940 and the Illinois Securities Law of 1953 31 and are diversified, open-ended management investment 32 companies; provided that the portfolio of the money market 33 mutual fund is limited to the following: 34 (i) bonds, notes, certificates of indebtedness, HB1583 Enrolled -6- LRB9101658EGfg 1 treasury bills, or other securities that are guaranteed 2 by the full faith and credit of the United States of 3 America as to principal and interest; 4 (ii) bonds, notes, debentures, or other similar 5 obligations of the United States of America or its 6 agencies; and 7 (iii) short term obligations of corporations 8 organized in the United States with assets exceeding 9 $400,000,000, provided that (A) the obligations mature no 10 later than 180 days from the date of purchase, (B) at the 11 time of purchase, the obligations are rated by at least 2 12 standard national rating services at one of their 3 13 highest classifications, and (C) the obligations held by 14 the mutual fund do not exceed 10% of the corporation's 15 outstanding obligations. 16 (12) General accounts of life insurance companies 17 authorized to transact business in Illinois. 18 (13) Any combination of the following, not to exceed 10% 19 of the pension fund's net assets: 20 (i) separate accounts that are managed by life 21 insurance companies authorized to transact business in 22 Illinois and are comprised of diversified portfolios 23 consisting of common or preferred stocks, bonds, or money 24 market instruments;and25 (ii) separate accounts that are managed by 26 insurance companies authorized to transact business in 27 Illinois, and are comprised of real estate or loans upon 28 real estate secured by first or second mortgages; and 29 (iii) mutual funds that meet the following 30 requirements: 31 (A) the mutual fund is managed by an 32 investment company as defined and registered under 33 the federal Investment Company Act of 1940 and 34 registered under the Illinois Securities Law of HB1583 Enrolled -7- LRB9101658EGfg 1 1953; 2 (B) the mutual fund has been in operation for 3 at least 5 years; 4 (C) the mutual fund has total net assets of 5 $250 million or more; and 6 (D) the mutual fund is comprised of 7 diversified portfolios of common or preferred 8 stocks, bonds, or money market instruments. 9 (Source: P.A. 90-507, eff. 8-22-97.) 10 (40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116) 11 Sec. 1-116. Federal contribution and benefit limitations 12limitation. 13 (a) This Section applies to all pension funds and 14 retirement systems established under this Code. 15 (a-5) All pension funds and retirement systems 16 established under this Code shall comply with the applicable 17 contribution and benefit limitations imposed by Section 415 18 of the U.S. Internal Revenue Code of 1986 for tax qualified 19 plans under Section 401(a) of that Code. 20 (b) If any benefit payable by a pension fund or 21 retirement system subject to this Section exceeds the 22 applicable benefit limits set by Section 415 of the U.S. 23 Internal Revenue Code of 1986 for tax qualified plans under 24 Section 401(a) of that Code, the excess shall be payable only 25 from an excess benefit fund established under this Section in 26 accordance with federal law. 27 (c) An excess benefit fund shall be established by any 28 pension fund or retirement system subject to this Section 29 that has any member eligible to receive a benefit that 30 exceeds the applicable benefit limits set by Section 415 of 31 the U.S. Internal Revenue Code of 1986 for tax qualified 32 plans under Section 401(a) of that Code. Amounts shall be 33 credited to the excess benefit fund, and payments for excess HB1583 Enrolled -8- LRB9101658EGfg 1 benefits made from the excess benefit fund, in a manner 2 consistent with the applicable federal law. 3 (d) For purposes of matters relating to the benefit 4 limits set by Section 415 of the U.S. Internal Revenue Code 5 of 1986, the limitation year may be defined by each affected 6 pension fund or retirement system for that fund or system. 7 (Source: P.A. 90-19, eff. 6-20-97.) 8 (40 ILCS 5/1-120 new) 9 Sec. 1-120. Payment to trust. 10 (a) If a person is a minor or has been determined by a 11 court to be under a legal disability, any benefits payable to 12 that person under this Code may be paid to the trustee of a 13 trust created for the sole benefit of that person while the 14 person is living, if the trustee of the trust has advised the 15 board of trustees of the pension fund or retirement system in 16 writing that the benefits will be held or used for the sole 17 benefit of that person. The pension fund or retirement 18 system shall not be required to determine the validity of the 19 trust or of any of the terms of the trust. The 20 representation of the trustee that the trust meets the 21 requirements of this Section shall be conclusive as to the 22 pension fund or retirement system. Payment of benefits to 23 the trust shall be an absolute discharge of the pension fund 24 or retirement system's liability with respect to the amounts 25 so paid. 26 (b) For purposes of this Section, "minor" means an 27 unmarried person under the age of 18. 28 (c) This Section is not a limitation on any other power 29 to pay benefits to or on behalf of a minor or person under 30 legal disability that is granted under this Code or other 31 applicable law. 32 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121) HB1583 Enrolled -9- LRB9101658EGfg 1 Sec. 2-121. Survivor's annuity - conditions for payment. 2 (a) A survivor's annuity shall be payable to a surviving 3 spouse or eligible child (1) upon the death in service of a 4 participant with at least 2 years of service credit, or (2) 5 upon the death of an annuitant in receipt of a retirement 6 annuity, or (3) upon the death of a participant who 7 terminated service with at least 4 years of service credit. 8 The change in this subsection (a) made by this amendatory 9 Act of 1995 applies to survivors of participants who die on 10 or after December 1, 1994, without regard to whether or not 11 the participant was in service on or after the effective date 12 of this amendatory Act of 1995. 13 (b) To be eligible for the survivor's annuity, the 14 spouse and the participant or annuitant must have been 15 married for a continuous period of at least one year 16 immediately preceding the date of death, but need not have 17 been married on the day of the participant's last termination 18 of service, regardless of whether such termination occurred 19 prior to the effective date of this amendatory Act of 1985. 20 (c) The annuity shall be payable beginning on the date 21 of a participant's death, or the first of the month following 22 an annuitant's death, if the spouse is then age 50 or over, 23 or beginning at age 50 if the spouse is then under age 50. 24 If an eligible child or children of the participant or 25 annuitant (or a child or children of the eligible spouse 26 meeting the criteria of item (1), (2), or (3) of subsection 27 (d) of this Section) also survive, and the child or children 28 are under the care of the eligible spouse, the annuity shall 29 begin as of the date of a participant's death, or the first 30 of the month following an annuitant's death, without regard 31 to the spouse's age. 32 The change to this subsection made by this amendatory Act 33 of 1998 (relating to children of an eligible spouse) applies 34 to the eligible spouse of a participant or annuitant who dies HB1583 Enrolled -10- LRB9101658EGfg 1 on or after the effective date of this amendatory Act, 2 without regard to whether the participant or annuitant is in 3 service on or after that effective date. 4 (d) For the purposes of this Section and Section 5 2-121.1, "eligible child" means a child of the deceased 6 participant or annuitant who is at least one of the 7 following: 8 (1) unmarried and under the age of 18; 9 (2) unmarried, a full-time student, and under the 10 age of 22; 11 (3) dependent by reason of physical or mental 12 disability. 13 The inclusion of unmarried students under age 22 in the 14 calculation of survivor's annuities by this amendatory Act of 15 1991 shall apply to all eligible students beginning January 16 1, 1992, without regard to whether the deceased participant 17 or annuitant was in service on or after the effective date of 18 this amendatory Act of 1991. 19 Adopted children shall have the same status as children 20 of the participant or annuitant, but only if the proceedings 21 for adoption are commenced at least one year prior to the 22 date of the participant's or annuitant's death. 23 (e) Remarriage of a surviving spouse prior to attainment 24 of age 55 shall disqualify the surviving spouse from the 25 receipt of a survivor's annuity, if the remarriage occurs 26 before the effective date of this amendatory Act of the 91st 27 General Assembly. 28 The changes made to this subsection by this amendatory 29 Act of the 91st General Assembly (pertaining to remarriage 30 prior to age 55) apply without regard to whether the deceased 31 participant or annuitant was in service on or after the 32 effective date of this amendatory Act. 33 (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.) HB1583 Enrolled -11- LRB9101658EGfg 1 (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1) 2 Sec. 2-121.1. Survivor's annuity - amount. 3 (a) A surviving spouse shall be entitled to 66 2/3% of 4 the amount of retirement annuity to which the participant or 5 annuitant was entitled on the date of death, without regard 6 to whether the participant had attained age 55 prior to his 7 or her death, subject to a minimum payment of 10% of salary. 8 If a surviving spouse, regardless of age, has in his or her 9 care at the date of death any eligible child or children of 10 the participant, the survivor's annuity shall be the greater 11 of the following: (1) 66 2/3% of the amount of retirement 12 annuity to which the participant or annuitant was entitled on 13 the date of death, or (2) 30% of the participant's salary 14 increased by 10% of salary on account of each such child, 15 subject to a total payment for the surviving spouse and 16 children of 50% of salary. If eligible children survive but 17 there is no surviving spouse, or if the surviving spouse 18remarries ordies or becomes disqualified by remarriage while 19 eligible children survive, each eligible child shall be 20 entitled to an annuity of 20% of salary, subject to a maximum 21 total payment for all such children of 50% of salary. 22 However, the survivor's annuity payable under this 23 Section shall not be less than 100% of the amount of 24 retirement annuity to which the participant or annuitant was 25 entitled on the date of death, if he or she is survived by a 26 dependent disabled child. 27 The salary to be used for determining these benefits 28 shall be the salary used for determining the amount of 29 retirement annuity as provided in Section 2-119.01. 30 (b) Upon the death of a participant after the 31 termination of service or upon death of an annuitant, the 32 maximum total payment to a surviving spouse and eligible 33 children, or to eligible children alone if there is no 34 surviving spouse, shall be 75% of the retirement annuity to HB1583 Enrolled -12- LRB9101658EGfg 1 which the participant or annuitant was entitled, unless there 2 is a dependent disabled child among the survivors. 3 (c) When a child ceases to be an eligible child, the 4 annuity to that child, or to the surviving spouse on account 5 of that child, shall thereupon cease, and the annuity payable 6 to the surviving spouse or other eligible children shall be 7 recalculated if necessary. 8 Upon the ineligibility of the last eligible child, the 9 annuity shall immediately revert to the amount payable upon 10 death of a participant or annuitant who leaves no eligible 11 children. If the surviving spouse is then under age 50, the 12 annuity as revised shall be deferred until the attainment of 13 age 50. 14 (d) Beginning January 1, 1990, every survivor's annuity 15 shall be increased (1) on each January 1 occurring on or 16 after the commencement of the annuity if the deceased member 17 died while receiving a retirement annuity, or (2) in other 18 cases, on each January 1 occurring on or after the first 19 anniversary of the commencement of the annuity, by an amount 20 equal to 3% of the current amount of the annuity, including 21 any previous increases under this Article. Such increases 22 shall apply without regard to whether the deceased member was 23 in service on or after the effective date of this amendatory 24 Act of 1991, but shall not accrue for any period prior to 25 January 1, 1990. 26 (e) Notwithstanding any other provision of this Article, 27 beginning January 1, 1990, the minimum survivor's annuity 28 payable to any person who is entitled to receive a survivor's 29 annuity under this Article shall be $300 per month, without 30 regard to whether or not the deceased participant was in 31 service on the effective date of this amendatory Act of 1989. 32 (f) In the case of a proportional survivor's annuity 33 arising under the Retirement Systems Reciprocal Act where the 34 amount payable by the System on January 1, 1993 is less than HB1583 Enrolled -13- LRB9101658EGfg 1 $300 per month, the amount payable by the System shall be 2 increased beginning on that date by a monthly amount equal to 3 $2 for each full year that has expired since the annuity 4 began. 5 (Source: P.A. 86-273; 86-1488; 87-794; 87-1265.) 6 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110) 7 Sec. 3-110. Creditable service. 8 (a) "Creditable service" is the time served by a police 9 officer as a member of a regularly constituted police force 10 of a municipality. In computing creditable service furloughs 11 without pay exceeding 30 days shall not be counted, but all 12 leaves of absence for illness or accident, regardless of 13 length, and all periods of disability retirement for which a 14 police officer has received no disability pension payments 15 under this Article shall be counted. 16 (b) Creditable service includes all periods of service 17 in the military, naval or air forces of the United States 18 entered upon while an active police officer of a 19 municipality, provided that upon applying for a permanent 20 pension, and in accordance with the rules of the board, the 21 police officer pays into the fund the amount the officer 22 would have contributed if he or she had been a regular 23 contributor during such period, to the extent that the 24 municipality which the police officer served has not made 25 such contributions in the officer's behalf. The total amount 26 of such creditable service shall not exceed 5 years, except 27 that any police officer who on July 1, 1973 had more than 5 28 years of such creditable service shall receive the total 29 amount thereof. 30 (c) Creditable service also includes service rendered by 31 a police officer while on leave of absence from a police 32 department to serve as an executive of an organization whose 33 membership consists of members of a police department, HB1583 Enrolled -14- LRB9101658EGfg 1 subject to the following conditions: (i) the police officer 2 is a participant of a fund established under this Article 3 with at least 10 years of service as a police officer; (ii) 4 the police officer received no credit for such service under 5 any other retirement system, pension fund, or annuity and 6 benefit fund included in this Code; (iii) pursuant to the 7 rules of the board the police officer pays to the fund the 8 amount he or she would have contributed had the officer been 9 an active member of the police department; and (iv) the 10 organization pays a contribution equal to the municipality's 11 normal cost for that period of service. 12 (d)(1) Creditable service also includes periods of 13 service originally established in another police pension fund 14 under this Article or in the Fund established under Article 7 15 of this Code for which (i) the contributions have been 16 transferred under Section 3-110.7 or Section 7-139.9 and (ii) 17 any additional contribution required under paragraph (2) of 18 this subsection has been paid in full in accordance with the 19 requirements of this subsection (d). 20 (2) If the board of the pension fund to which creditable 21 service and related contributions are transferred under 22 Section 3-110.7 or 7-139.9 determines that the amount 23 transferred is less than the true cost to the pension fund of 24 allowing that creditable service to be established, then in 25 order to establish that creditable service the police officer 26 must pay to the pension fund, within the payment period 27 specified in paragraph (3) of this subsection, an additional 28 contribution equal to the difference, as determined by the 29 board in accordance with the rules and procedures adopted 30 under paragraph (6) of this subsection. 31 (3) Except as provided in paragraph (4), the additional 32 contribution must be paid to the board (i) within 5 years 33 from the date of the transfer of contributions under Section 34 3-110.7 or 7-139.9 and (ii) before the police officer HB1583 Enrolled -15- LRB9101658EGfg 1 terminates service with the fund. The additional 2 contribution may be paid in a lump sum or in accordance with 3 a schedule of installment payments authorized by the board. 4 (4) If the police officer dies in service before payment 5 in full has been made and before the expiration of the 5-year 6 payment period, the surviving spouse of the officer may elect 7 to pay the unpaid amount on the officer's behalf within 6 8 months after the date of death, in which case the creditable 9 service shall be granted as though the deceased police 10 officer had paid the remaining balance on the day before the 11 date of death. 12 (5) If the additional contribution is not paid in full 13 within the required time, the creditable service shall not be 14 granted and the police officer (or the officer's surviving 15 spouse or estate) shall be entitled to receive a refund of 16 (i) any partial payment of the additional contribution that 17 has been made by the police officer and (ii) those portions 18 of the amounts transferred under subdivision (a)(1) of 19 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section 20 7-139.9 that represent employee contributions paid by the 21 police officer (but not the accumulated interest on those 22 contributions) and interest paid by the police officer to the 23 prior pension fund in order to reinstate service terminated 24 by acceptance of a refund. 25 At the time of paying a refund under this item (5), the 26 pension fund shall also repay to the pension fund from which 27 the contributions were transferred under Section 3-110.7 or 28 7-139.9 the amount originally transferred under subdivision 29 (a)(2) of that Section, plus interest at the rate of 6% per 30 year, compounded annually, from the date of the original 31 transfer to the date of repayment. Amounts repaid to the 32 Article 7 fund under this provision shall be credited to the 33 appropriate municipality. 34 Transferred credit that is not granted due to failure to HB1583 Enrolled -16- LRB9101658EGfg 1 pay the additional contribution within the required time is 2 lost; it may not be transferred to another pension fund and 3 may not be reinstated in the pension fund from which it was 4 transferred. 5 (6) The Public Employee Pension Fund Division of the 6 Department of Insurance shall establish by rule the manner of 7 making the calculation required under paragraph (2) of this 8 subsection, taking into account the appropriate actuarial 9 assumptions; the police officer's service, age, and salary 10 history; the level of funding of the pension fund to which 11 the credits are being transferred; and any other factors that 12 the Division determines to be relevant. The rules may 13 require that all calculations made under paragraph (2) be 14 reported to the Division by the board performing the 15 calculation, together with documentation of the creditable 16 service to be transferred, the amounts of contributions and 17 interest to be transferred, the manner in which the 18 calculation was performed, the numbers relied upon in making 19 the calculation, the results of the calculation, and any 20 other information the Division may deem useful. 21 (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.) 22 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139) 23 Sec. 7-139. Credits and creditable service to employees. 24 (a) Each participating employee shall be granted credits 25 and creditable service, for purposes of determining the 26 amount of any annuity or benefit to which he or a beneficiary 27 is entitled, as follows: 28 1. For prior service: Each participating employee 29 who is an employee of a participating municipality or 30 participating instrumentality on the effective date shall 31 be granted creditable service, but no credits under 32 paragraph 2 of this subsection (a), for periods of prior 33 service for which credit has not been received under any HB1583 Enrolled -17- LRB9101658EGfg 1 other pension fund or retirement system established under 2 this Code, as follows: 3 If the effective date of participation for the 4 participating municipality or participating 5 instrumentality is on or before January 1, 1998, 6 creditable service shall be granted for the entire period 7 of prior service with that employer without any employee 8 contribution. 9 If the effective date of participation for the 10 participating municipality or participating 11 instrumentality is after January 1, 1998, creditable 12 service shall be granted for the last 20% of the period 13 of prior service with that employer, but no more than 5 14 years, without any employee contribution. A 15 participating employee may establish creditable service 16 for the remainder of the period of prior service with 17 that employer by making an application in writing, 18 accompanied by payment of an employee contribution in an 19 amount determined by the Fund, based on the employee 20 contribution rates in effect at the time of application 21 for the creditable service and the employee's salary rate 22 on the effective date of participation for that employer, 23 plus interest at the effective rate from the date of the 24 prior service to the date of payment. Application for 25 this creditable service may be made at any time while the 26 employee is still in service. 27 Any person who has withdrawn from the service of a 28 participating municipality or participating 29 instrumentality prior to the effective date, who reenters 30 the service of the same municipality or participating 31 instrumentality after the effective date and becomes a 32 participating employee is entitled to creditable service 33 for prior service as otherwise provided in this 34 subdivision (a)(1) only if he or she renders 2 years of HB1583 Enrolled -18- LRB9101658EGfg 1 service as a participating employee after the effective 2 date. Application for such service must be made while in 3 a participating status. The salary rate to be used in 4 the calculation of the required employee contribution, if 5 any, shall be the employee's salary rate at the time of 6 first reentering service with the employer after the 7 employer's effective date of participation. 8 2. For current service, each participating employee 9 shall be credited with: 10 a. Additional credits of amounts equal to each 11 payment of additional contributions received from 12 him under Section 7-173, as of the date the 13 corresponding payment of earnings is payable to him. 14 b. Normal credits of amounts equal to each 15 payment of normal contributions received from him, 16 as of the date the corresponding payment of earnings 17 is payable to him, and normal contributions made for 18 the purpose of establishing out-of-state service 19 credits as permitted under the conditions set forth 20 in paragraph 6 of this subsection (a). 21 c. Municipality credits in an amount equal to 22 1.4 times the normal credits, except those 23 established by out-of-state service credits, as of 24 the date of computation of any benefit if these 25 credits would increase the benefit. 26 d. Survivor credits equal to each payment of 27 survivor contributions received from the 28 participating employee as of the date the 29 corresponding payment of earnings is payable, and 30 survivor contributions made for the purpose of 31 establishing out-of-state service credits. 32 3. For periods of temporary and total and permanent 33 disability benefits, each employee receiving disability 34 benefits shall be granted creditable service for the HB1583 Enrolled -19- LRB9101658EGfg 1 period during which disability benefits are payable. 2 Normal and survivor credits, based upon the rate of 3 earnings applied for disability benefits, shall also be 4 granted if such credits would result in a higher benefit 5 to any such employee or his beneficiary. 6 4. For authorized leave of absence without pay: A 7 participating employee shall be granted credits and 8 creditable service for periods of authorized leave of 9 absence without pay under the following conditions: 10 a. An application for credits and creditable 11 service is submitted to the board while the employee 12 is in a status of active employment, and within 2 13 years after termination of the leave of absence 14 period for which credits and creditable service are 15 sought. 16 b. Not more than 12 complete months of 17 creditable service for authorized leave of absence 18 without pay shall be counted for purposes of 19 determining any benefits payable under this Article. 20 c. Credits and creditable service shall be 21 granted for leave of absence only if such leave is 22 approved by the governing body of the municipality, 23 including approval of the estimated cost thereof to 24 the municipality as determined by the fund, and 25 employee contributions, plus interest at the 26 effective rate applicable for each year from the end 27 of the period of leave to date of payment, have been 28 paid to the fund in accordance with Section 7-173. 29 The contributions shall be computed upon the 30 assumption earnings continued during the period of 31 leave at the rate in effect when the leave began. 32 d. Benefits under the provisions of Sections 33 7-141, 7-146, 7-150 and 7-163 shall become payable 34 to employees on authorized leave of absence, or HB1583 Enrolled -20- LRB9101658EGfg 1 their designated beneficiary, only if such leave of 2 absence is creditable hereunder, and if the employee 3 has at least one year of creditable service other 4 than the service granted for leave of absence. Any 5 employee contributions due may be deducted from any 6 benefits payable. 7 e. No credits or creditable service shall be 8 allowed for leave of absence without pay during any 9 period of prior service. 10 5. For military service: The governing body of a 11 municipality or participating instrumentality may elect 12 to allow creditable service to participating employees 13 who leave their employment to serve in the armed forces 14 of the United States for all periods of such service, 15 provided that the person returns to active employment 16 within 90 days after completion of full time active duty, 17 but no creditable service shall be allowed such person 18 for any period that can be used in the computation of a 19 pension or any other pay or benefit, other than pay for 20 active duty, for service in any branch of the armed 21 forces of the United States. If necessary to the 22 computation of any benefit, the board shall establish 23 municipality credits for participating employees under 24 this paragraph on the assumption that the employee 25 received earnings at the rate received at the time he 26 left the employment to enter the armed forces. A 27 participating employee in the armed forces shall not be 28 considered an employee during such period of service and 29 no additional death and no disability benefits are 30 payable for death or disability during such period. 31 Any participating employee who left his employment 32 with a municipality or participating instrumentality to 33 serve in the armed forces of the United States and who 34 again became a participating employee within 90 days HB1583 Enrolled -21- LRB9101658EGfg 1 after completion of full time active duty by entering the 2 service of a different municipality or participating 3 instrumentality, which has elected to allow creditable 4 service for periods of military service under the 5 preceding paragraph, shall also be allowed creditable 6 service for his period of military service on the same 7 terms that would apply if he had been employed, before 8 entering military service, by the municipality or 9 instrumentality which employed him after he left the 10 military service and the employer costs arising in 11 relation to such grant of creditable service shall be 12 charged to and paid by that municipality or 13 instrumentality. 14 Notwithstanding the foregoing, any participating 15 employee shall be entitled to creditable service as 16 required by any federal law relating to re-employment 17 rights of persons who served in the United States Armed 18 Services. Such creditable service shall be granted upon 19 payment by the member of an amount equal to the employee 20 contributions which would have been required had the 21 employee continued in service at the same rate of 22 earnings during the military leave period, plus interest 23 at the effective rate. 24 5.1. In addition to any creditable service 25 established under paragraph 5 of this subsection (a), 26 creditable service may be granted for up to 24 months of 27 service in the armed forces of the United States. 28 In order to receive creditable service for military 29 service under this paragraph 5.1, a participating 30 employee must (1) apply to the Fund in writing and 31 provide evidence of the military service that is 32 satisfactory to the Board; (2) obtain the written 33 approval of the current employer; and (3) make 34 contributions to the Fund equal to (i) the employee HB1583 Enrolled -22- LRB9101658EGfg 1 contributions that would have been required had the 2 service been rendered as a member, plus (ii) an amount 3 determined by the board to be equal to the employer's 4 normal cost of the benefits accrued for that military 5 service, plus (iii) interest on items (i) and (ii) from 6 the date of first membership in the Fund to the date of 7 payment. If payment is made during the 6-month period 8 that begins 3 months after the effective date of this 9 amendatory Act of 1997, the required interest shall be at 10 the rate of 2.5% per year, compounded annually; 11 otherwise, the required interest shall be calculated at 12 the regular interest rate. 13 6. For out-of-state service: Creditable service 14 shall be granted for service rendered to an out-of-state 15 local governmental body under the following conditions: 16 The employee had participated and has irrevocably 17 forfeited all rights to benefits in the out-of-state 18 public employees pension system; the governing body of 19 his participating municipality or instrumentality 20 authorizes the employee to establish such service; the 21 employee has 2 years current service with this 22 municipality or participating instrumentality; the 23 employee makes a payment of contributions, which shall be 24 computed at 8% (normal) plus 2% (survivor) times length 25 of service purchased times the average rate of earnings 26 for the first 2 years of service with the municipality or 27 participating instrumentality whose governing body 28 authorizes the service established plus interest at the 29 effective rate on the date such credits are established, 30 payable from the date the employee completes the required 31 2 years of current service to date of payment. In no 32 case shall more than 120 months of creditable service be 33 granted under this provision. 34 7. For retroactive service: Any employee who could HB1583 Enrolled -23- LRB9101658EGfg 1 have but did not elect to become a participating 2 employee, or who should have been a participant in the 3 Municipal Public Utilities Annuity and Benefit Fund 4 before that fund was superseded, may receive creditable 5 service for the period of service not to exceed 50 6 months; however, a current or former county board member 7 may establish credit under this paragraph 7 for more than 8 50 months of service as a member of the county board if 9 the excess over 50 months is approved by resolution of 10 the affected county board filed with the Fund before 11 January 1, 1999. 12 Any employee who is a participating employee on or 13 after September 24, 1981 and who was excluded from 14 participation by the age restrictions removed by Public 15 Act 82-596 may receive creditable service for the period, 16 on or after January 1, 1979, excluded by the age 17 restriction and, in addition, if the governing body of 18 the participating municipality or participating 19 instrumentality elects to allow creditable service for 20 all employees excluded by the age restriction prior to 21 January 1, 1979, for service during the period prior to 22 that date excluded by the age restriction. Any employee 23 who was excluded from participation by the age 24 restriction removed by Public Act 82-596 and who is not a 25 participating employee on or after September 24, 1981 may 26 receive creditable service for service after January 1, 27 1979. Creditable service under this paragraph shall be 28 granted upon payment of the employee contributions which 29 would have been required had he participated, with 30 interest at the effective rate for each year from the end 31 of the period of service established to date of payment. 32 8. For accumulated unused sick leave: A 33 participating employee who is applying for a retirement 34 annuity shall be entitled to creditable service for that HB1583 Enrolled -24- LRB9101658EGfg 1 portion of the employee's accumulated unused sick leave 2 for which payment is not received, as follows: 3 a. Sick leave days shall be limited to those 4 accumulated under a sick leave plan established by a 5 participating municipality or participating 6 instrumentality which is available to all employees 7 or a class of employees. 8 b. Only sick leave days accumulated with a 9 participating municipality or participating 10 instrumentality with which the employee was in 11 service within 60 days of the effective date of his 12 retirement annuity shall be credited; If the 13 employee was in service with more than one employer 14 during this period only the sick leave days with the 15 employer with which the employee has the greatest 16 number of unpaid sick leave days shall be 17 considered. 18 c. The creditable service granted shall be 19 considered solely for the purpose of computing the 20 amount of the retirement annuity and shall not be 21 used to establish any minimum service period 22 required by any provision of the Illinois Pension 23 Code, the effective date of the retirement annuity, 24 or the final rate of earnings. 25 d. The creditable service shall be at the rate 26 of 1/20 of a month for each full sick day, provided 27 that no more than 12 months may be credited under 28 this subdivision 8. 29 e. Employee contributions shall not be 30 required for creditable service under this 31 subdivision 8. 32 f. Each participating municipality and 33 participating instrumentality with which an employee 34 has service within 60 days of the effective date of HB1583 Enrolled -25- LRB9101658EGfg 1 his retirement annuity shall certify to the board 2 the number of accumulated unpaid sick leave days 3 credited to the employee at the time of termination 4 of service. 5 9. For service transferred from another system: 6 Credits and creditable service shall be granted for 7 service under Article 3, 4, 5, 14 or 16 of this Act, to 8 any active member of this Fund, and to any inactive 9 member who has been a county sheriff, upon transfer of 10 such credits pursuant to Section 3-110.3, 4-108.3, 5-235, 11 14-105.6 or 16-131.4, and payment by the member of the 12 amount by which (1) the employer and employee 13 contributions that would have been required if he had 14 participated in this Fund as a sheriff's law enforcement 15 employee during the period for which credit is being 16 transferred, plus interest thereon at the effective rate 17 for each year, compounded annually, from the date of 18 termination of the service for which credit is being 19 transferred to the date of payment, exceeds (2) the 20 amount actually transferred to the Fund. Such transferred 21 service shall be deemed to be service as a sheriff's law 22 enforcement employee for the purposes of Section 7-142.1. 23 (b) Creditable service - amount: 24 1. One month of creditable service shall be allowed 25 for each month for which a participating employee made 26 contributions as required under Section 7-173, or for 27 which creditable service is otherwise granted hereunder. 28 Not more than 1 month of service shall be credited and 29 counted for 1 calendar month, and not more than 1 year of 30 service shall be credited and counted for any calendar 31 year. A calendar month means a nominal month beginning 32 on the first day thereof, and a calendar year means a 33 year beginning January 1 and ending December 31. 34 2. A seasonal employee shall be given 12 months of HB1583 Enrolled -26- LRB9101658EGfg 1 creditable service if he renders the number of months of 2 service normally required by the position in a 12-month 3 period and he remains in service for the entire 12-month 4 period. Otherwise a fractional year of service in the 5 number of months of service rendered shall be credited. 6 3. An intermittent employee shall be given 7 creditable service for only those months in which a 8 contribution is made under Section 7-173. 9 (c) No application for correction of credits or 10 creditable service shall be considered unless the board 11 receives an application for correction while (1) the 12 applicant is a participating employee and in active 13 employment with a participating municipality or 14 instrumentality, or (2) while the applicant is actively 15 participating in a pension fund or retirement system which is 16 a participating system under the Retirement Systems 17 Reciprocal Act. A participating employee or other applicant 18 shall not be entitled to credits or creditable service unless 19 the required employee contributions are made in a lump sum or 20 in installments made in accordance with board rule. 21 (d) Upon the granting of a retirement, surviving spouse 22 or child annuity, a death benefit or a separation benefit, on 23 account of any employee, all individual accumulated credits 24 shall thereupon terminate. Upon the withdrawal of additional 25 contributions, the credits applicable thereto shall thereupon 26 terminate. Terminated credits shall not be applied to 27 increase the benefits any remaining employee would otherwise 28 receive under this Article. 29 (Source: P.A. 90-448, eff. 8-16-97.) 30 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141) 31 Sec. 7-141. Retirement annuities - Conditions. 32 Retirement annuities shall be payable as hereinafter set 33 forth: HB1583 Enrolled -27- LRB9101658EGfg 1 (a) A participating employee who, regardless of cause, 2 is separated from the service of all participating 3 municipalities and instrumentalities thereof and 4 participating instrumentalities shall be entitled to a 5 retirement annuity provided: 6 1. He is at least age 55, or in the case of a person who 7 is eligible to have his annuity calculated under Section 8 7-142.1, he is at least age 50; 9 2. He is (i) an employee who was employed by any 10 participating municipality or participating instrumentality 11 which had not elected to exclude persons employed in 12 positions normally requiring performance of duty for less 13 than 1000 hours per year or was employed in a position 14 normally requiring performance of duty for 600 hours or more 15 per year prior to such election by any participating 16 municipality or participating instrumentality included in and 17 subject to this Article on or before the effective date of 18 this amendatory Act of 1981 which made such election and is 19 not entitled to receive earnings for employment in a position 20 normally requiring performance of duty for 600 hours or more 21 per year for any participating municipality and 22 instrumentalities thereof and participating instrumentality; 23 or (ii) an employee who was employed only by a participating 24 municipality or participating instrumentality, or 25 participating municipalities or participating 26 instrumentalities, which have elected to exclude persons in 27 positions normally requiring performance of duty for less 28 than 1000 hours per year after the effective date of such 29 exclusion or which are included under and subject to the 30 Article after the effective date of this amendatory Act of 31 1981 and elects to exclude persons in such positions, and is 32 not entitled to receive earnings for employment in a position 33 normally requiring performance of duty for 1000 hours or more 34 per year by such a participating municipality or HB1583 Enrolled -28- LRB9101658EGfg 1 participating instrumentality; 2 3. The amount of his annuity, before the application of 3 paragraph (b) of Section 7-142 is at least $10 per month; 4 4. If he first became a participating employee after 5 December 31, 1961, he has at least 8 years of service. This 6 service requirement shall not apply to any participating 7 employee, regardless of participation date, if the General 8 Assembly terminates the Fund. 9 (b) Retirement annuities shall be payable: 10 1. As provided in Section 7-119; 11 2. Except as provided in item 3, upon receipt by the 12 fund of a written applicationby the board. The effective 13 date may be not more than one year prior to the date of the 14 receipt by the fund of the application; 15 3. Upon attainment of age 70 1/2 if(i)the member (i) 16has not submitted an application for the annuity, (ii) the17member has at least 8 years of service credit andis no 18 longer in service, and (ii) is otherwise entitled to an 19 annuity under this Article(iii) the pension amount is at20least $30 per month, and (iv) the Fund is able to locate the21member; 22 4. To the beneficiary of the deceased annuitant for the 23 unpaid amount accrued to date of death, if any. 24 (Source: P.A. 87-740.) 25 (40 ILCS 5/7-141.1) 26 Sec. 7-141.1. Early retirement incentive. 27 (a) The General Assembly finds and declares that: 28 (1) Units of local government across the State have 29 been functioning under a financial crisis. 30 (2) This financial crisis is expected to continue. 31 (3) Units of local government must depend on 32 additional sources of revenue and, when those sources are 33 not forthcoming, must establish cost-saving programs. HB1583 Enrolled -29- LRB9101658EGfg 1 (4) An early retirement incentive designed 2 specifically to target highly-paid senior employees could 3 result in significant annual cost savings. 4 (5) The early retirement incentive should be made 5 available only to those units of local government that 6 determine that an early retirement incentive is in their 7 best interest. 8 (6) A unit of local government adopting a program 9 of early retirement incentives under this Section is 10 encouraged to implement personnel procedures to prohibit, 11 for at least 5 years, the rehiring (whether on payroll or 12 by independent contract) of employees who receive early 13 retirement incentives. 14 (7) A unit of local government adopting a program 15 of early retirement incentives under this Section is also 16 encouraged to replace as few of the participating 17 employees as possible and to hire replacement employees 18 for salaries totaling no more than 80% of the total 19 salaries formerly paid to the employees who participate 20 in the early retirement program. 21 It is the primary purpose of this Section to encourage 22 units of local government that can realize true cost savings, 23 or have determined that an early retirement program is in 24 their best interest, to implement an early retirement 25 program. 26 (b) Until the effective date of this amendatory Act of 27 1997, this Section does not apply to any employer that is a 28 city, village, or incorporated town, nor to the employees of 29 any such employer. Beginning on the effective date of this 30 amendatory Act of 1997, any employer under this Article, 31 including an employer that is a city, village, or 32 incorporated town, may establish an early retirement 33 incentive program for its employees under this Section. The 34 decision of a city, village, or incorporated town to consider HB1583 Enrolled -30- LRB9101658EGfg 1 or establish an early retirement program is at the sole 2 discretion of that city, village, or incorporated town, and 3 nothing in this amendatory Act of 1997 limits or otherwise 4 diminishes this discretion. Nothing contained in this 5 Section shall be construed to require a city, village, or 6 incorporated town to establish an early retirement program 7 and no city, village, or incorporated town may be compelled 8 to implement such a program. 9 The benefits provided in this Section are available only 10 to members employed by a participating employer that has 11 filed with the Board of the Fund a resolution or ordinance 12 expressly providing for the creation of an early retirement 13 incentive program under this Section for its employees and 14 specifying the effective date of the early retirement 15 incentive program. Subject to the limitation in subsection 16 (h), an employer may adopt a resolution or ordinance 17 providing a program of early retirement incentives under this 18 Section at any time. 19 The resolution or ordinance shall be in substantially the 20 following form: 21 RESOLUTION (ORDINANCE) NO. .... 22 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY 23 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES 24 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND 25 WHEREAS, Section 7-141.1 of the Illinois Pension Code 26 provides that a participating employer may elect to adopt an 27 early retirement incentive program offered by the Illinois 28 Municipal Retirement Fund by adopting a resolution or 29 ordinance; and 30 WHEREAS, The goal of adopting an early retirement program 31 is to realize a substantial savings in personnel costs by 32 offering early retirement incentives to employees who have 33 accumulated many years of service credit; and 34 WHEREAS, Implementation of the early retirement program HB1583 Enrolled -31- LRB9101658EGfg 1 will provide a budgeting tool to aid in controlling payroll 2 costs; and 3 WHEREAS, The (name of governing body) has determined that 4 the adoption of an early retirement incentive program is in 5 the best interests of the (name of participating employer); 6 therefore be it 7 RESOLVED (ORDAINED) by the (name of governing body) of 8 (name of participating employer) that: 9 (1) The (name of participating employer) does hereby 10 adopt the Illinois Municipal Retirement Fund early retirement 11 incentive program as provided in Section 7-141.1 of the 12 Illinois Pension Code. The early retirement incentive 13 program shall take effect on (date). 14 (2) In order to help achieve a true cost savings, a 15 person who retires under the early retirement incentive 16 program shall lose those incentives if he or she later 17 accepts employment with any IMRF employer in a position for 18 which participation in IMRF is required or is elected by the 19 employee. 20 (3) In order to utilize an early retirement incentive as 21 a budgeting tool, the (name of participating employer) will 22 use its best efforts either to limit the number of employees 23 who replace the employees who retire under the early 24 retirement program or to limit the salaries paid to the 25 employees who replace the employees who retire under the 26 early retirement program. 27 (4) The effective date of each employee's retirement 28 under this early retirement program shall be set by (name of 29 employer) and shall be no earlier than the effective date of 30 the program and no later than one year after that effective 31 date; except that the employee may require that the 32 retirement date set by the employer be no later than the June 33 30 next occurring after the effective date of the program and 34 no earlier than the date upon which the employee qualifies HB1583 Enrolled -32- LRB9101658EGfg 1 for retirement. 2 (5) To be eligible for the early retirement incentive 3 under this Section, the employee must have attained age 50 4 and have at least 20 years of creditable service by his or 5 her retirement date. 6 (6) The (clerk or secretary) shall promptly file a 7 certified copy of this resolution (ordinance) with the Board 8 of Trustees of the Illinois Municipal Retirement Fund. 9 CERTIFICATION 10 I, (name), the (clerk or secretary) of the (name of 11 participating employer) of the County of (name), State of 12 Illinois, do hereby certify that I am the keeper of the books 13 and records of the (name of employer) and that the foregoing 14 is a true and correct copy of a resolution (ordinance) duly 15 adopted by the (governing body) at a meeting duly convened 16 and held on (date). 17 SEAL 18 (Signature of clerk or secretary) 19 (c) To be eligible for the benefits provided under an 20 early retirement incentive program adopted under this 21 Section, a member must: 22 (1) be a participating employee of this Fund who, 23 on the effective date of the program, (i) is in active 24 payroll status as an employee of a participating employer 25 that has filed the required ordinance or resolution with 26 the Board, (ii) is on layoff status from such a position 27 with a right of re-employment or recall to service, (iii) 28 is on a leave of absence from such a position, or (iv) is 29 on disability but has not been receiving benefits under 30 Section 7-146 or 7-150 for a period of more than 2 years 31 from the date of application; 32 (2) have never previously received a retirement 33 annuity under this Article or under the Retirement 34 Systems Reciprocal Act using service credit established HB1583 Enrolled -33- LRB9101658EGfg 1 under this Article; 2 (3) (blank);file with the Board within 60 days of3the effective date of the program an application4requesting the benefits provided in this Section;5 (4) have at least 20 years of creditable service in 6 the Fund by the date of retirement, without the use of 7 any creditable service established under this Section; 8 (5) have attained age 50 by the date of retirement, 9 without the use of any age enhancement received under 10 this Section; and 11 (6) be eligible to receive a retirement annuity 12 under this Article by the date of retirement, for which 13 purpose the age enhancement and creditable service 14 established under this Section may be considered. 15 (d) The employer shall determine the retirement date for 16 each employee participating in the early retirement program 17 adopted under this Section. The retirement date shall be no 18 earlier than the effective date of the program and no later 19 than one year after that effective date, except that the 20 employee may require that the retirement date set by the 21 employer be no later than the June 30 next occurring after 22 the effective date of the program and no earlier than the 23 date upon which the employee qualifies for retirement. The 24 employer shall give each employee participating in the early 25 retirement program at least 30 days written notice of the 26 employee's designated retirement date, unless the employee 27 waives this notice requirement. 28 (e) An eligible person may establish up to 5 years of 29 creditable service under this Section. In addition, for each 30 period of creditable service established under this Section, 31 a person shall have his or her age at retirement deemed 32 enhanced by an equivalent period. 33 The creditable service established under this Section may 34 be used for all purposes under this Article and the HB1583 Enrolled -34- LRB9101658EGfg 1 Retirement Systems Reciprocal Act, except for the computation 2 of final rate of earnings and the determination of earnings, 3 salary, or compensation under this or any other Article of 4 the Code. 5 The age enhancement established under this Section may be 6 used for all purposes under this Article (including 7 calculation of the reduction imposed under subdivision 8 (a)1b(iv) of Section 7-142), except for purposes of a 9 reversionary annuity under Section 7-145 and any 10 distributions required because of age. The age enhancement 11 established under this Section may be used in calculating a 12 proportionate annuity payable by this Fund under the 13 Retirement Systems Reciprocal Act, but shall not be used in 14 determining benefits payable under other Articles of this 15 Code under the Retirement Systems Reciprocal Act. 16 (f) For all creditable service established under this 17 Section, the member must pay to the Fund an employee 18 contribution consisting of 4.5% of the member's highest 19 annual salary rate used in the determination of the final 20 rate of earnings for retirement annuity purposes for each 21 year of creditable service granted under this Section. For 22 creditable service established under this Section by a person 23 who is a sheriff's law enforcement employee to be deemed 24 service as a sheriff's law enforcement employee, the employee 25 contribution shall be at the rate of 6.5% of highest annual 26 salary per year of creditable service granted. Contributions 27 for fractions of a year of service shall be prorated. Any 28 amounts that are disregarded in determining the final rate of 29 earnings under subdivision (d)(5) of Section 7-116 (the 125% 30 rule) shall also be disregarded in determining the required 31 contribution under this subsection (f). 32 The employee contribution shall be paid to the Fund as 33 follows: If the member is entitled to a lump sum payment for 34 accumulated vacation, sick leave, or personal leave upon HB1583 Enrolled -35- LRB9101658EGfg 1 withdrawal from service, the employer shall deduct the 2 employee contribution from that lump sum and pay the deducted 3 amount directly to the Fund. If there is no such lump sum 4 payment or the required employee contribution exceeds the net 5 amount of the lump sum payment, then the remaining amount 6 due, at the option of the employee, may either be paid to the 7 Fund before the annuity commences or deducted from the 8 retirement annuity in 24 equal monthly installments. 9 (g) An annuitant who has received any age enhancement or 10 creditable service under this Section and thereafter accepts 11 employment with or enters into a personal services contract 12 with an employer under this Article thereby forfeits that age 13 enhancement and creditable service. A person forfeiting 14 early retirement incentives under this subsection (i) must 15 repay to the Fund that portion of the retirement annuity 16 already received which is attributable to the early 17 retirement incentives that are being forfeited, (ii) shall 18 not be eligible to participate in any future early retirement 19 program adopted under this Section, and (iii) is entitled to 20 a refund of the employee contribution paid under subsection 21 (f). The Board shall deduct the required repayment from the 22 refund and may impose a reasonable payment schedule for 23 repaying the amount, if any, by which the required repayment 24 exceeds the refund amount. 25 (h) The additional unfunded liability accruing as a 26 result of the adoption of a program of early retirement 27 incentives under this Section by an employer shall be 28 amortized over a period of 10 years beginning on January 1 of 29 the second calendar year following the calendar year in which 30 the latest date for beginning to receive a retirement annuity 31 under the program (as determined by the employer under 32 subsection (d) of this Section) occurs; except that the 33 employer may provide for a shorter amortization period (of no 34 less than 5 years) by adopting an ordinance or resolution HB1583 Enrolled -36- LRB9101658EGfg 1 specifying the length of the amortization period and 2 submitting a certified copy of the ordinance or resolution to 3 the Fund no later than 6 months after the effective date of 4 the program. An employer, at its discretion, may accelerate 5 payments to the Fund. 6 An employer may provide more than one early retirement 7 incentive program for its employees under this Section. 8 However, an employer that has provided an early retirement 9 incentive program for its employees under this Section may 10 not provide another early retirement incentive program under 11 this Section until the liability arising from the earlier 12 program has been fully paid to the Fund. 13 (Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.) 14 (40 ILCS 5/7-145.1) 15 Sec. 7-145.1. Alternative annuity for county officers. 16 (a) The benefits provided in this Section and Section 17 7-145.2 are available only if the county board has filed with 18 the Board of the Fund a resolution or ordinance expressly 19 consenting to the availability of these benefits for its 20 elected county officers. The county board's consent is 21 irrevocable with respect to persons participating in the 22 program, but may be revoked at any time with respect to 23 persons who have not paid an additional optional contribution 24 under this Section before the date of revocation. 25 An elected county officer may elect to establish 26 alternative credits for an alternative annuity by electing in 27 writing to make additional optional contributions in 28 accordance with this Section and procedures established by 29 the board. These alternative credits are available only for 30 periods of service as an elected county officer. The elected 31 county officer may discontinue making the additional optional 32 contributions by notifying the Fund in writing in accordance 33 with this Section and procedures established by the board. HB1583 Enrolled -37- LRB9101658EGfg 1 Additional optional contributions for the alternative 2 annuity shall be as follows: 3 (1) For service as an elected county officer after 4 the option is elected, an additional contribution of 3% 5 of salary shall be contributed to the Fund on the same 6 basis and under the same conditions as contributions 7 required under Section 7-173. 8 (2) For service as an elected county officer before 9 the option is elected, an additional contribution of 3% 10 of the salary for the applicable period of service, plus 11 interest at the effective rate from the date of service 12 to the date of payment, plus any additional amount 13 required by the county board under paragraph (3). All 14 payments for past service must be paid in full before 15 credit is given. 16 (3) With respect to service as an elected county 17 officer before the option is elected, if payment is made 18 after the county board has filed with the Board of the 19 Fund a resolution or ordinance requiring an additional 20 contribution under this paragraph, then the contribution 21 required under paragraph (2) shall include an amount to 22 be determined by the Fund, equal to the actuarial present 23 value of the additional employer cost that would 24 otherwise result from the alternative credits being 25 established for that service. A county board's 26 resolution or ordinance requiring additional 27 contributions under this paragraph (3) is irrevocable. 28 No additional optional contributions may be made for any 29 period of service for which credit has been previously 30 forfeited by acceptance of a refund, unless the refund is 31 repaid in full with interest at the effective rate from the 32 date of refund to the date of repayment. 33 (b) In lieu of the retirement annuity otherwise payable 34 under this Article, an elected county officer who (1) has HB1583 Enrolled -38- LRB9101658EGfg 1 elected to participate in the Fund and make additional 2 optional contributions in accordance with this Section, (2) 3 has held and made additional optional contributions with 4 respect to the same elected county office for at least 8 5 years, and (3) has attained age 55 with at least 8 years of 6 service credit (or has attained age 50 with at least 20 years 7 of service as a sheriff's law enforcement employee) may elect 8 to have his retirement annuity computed as follows: 3% of 9 the participant's salary for each of the first 8 years of 10 service credit, plus 4% of that salary for each of the next 4 11 years of service credit, plus 5% of that salary for each year 12 of service credit in excess of 12 years, subject to a maximum 13 of 80% of that salary. 14 This formula applies only to service in an elected county 15 office that the officer held for at least 8 years, and only 16 to service for which additional optional contributions have 17 been paid under this Section. If an elected county officer 18 qualifies to have this formula applied to service in more 19 than one elected county office, the qualifying service shall 20 be accumulated for purposes of determining the applicable 21 accrual percentages, but the salary used for each office 22 shall be the separate salary calculated for that office, as 23 defined in subsection (g). 24 To the extent that the elected county officer has service 25 credit that does not qualify for this formula, his retirement 26 annuity will first be determined in accordance with this 27 formula with respect to the service to which this formula 28 applies, and then in accordance with the remaining Sections 29 of this Article with respect to the service to which this 30 formula does not apply. 31 (c) In lieu of the disability benefits otherwise payable 32 under this Article, an elected county officer who (1) has 33 elected to participate in the Fund, and (2) has become 34 permanently disabled and as a consequence is unable to HB1583 Enrolled -39- LRB9101658EGfg 1 perform the duties of his office, and (3) was making optional 2 contributions in accordance with this Section at the time the 3 disability was incurred, may elect to receive a disability 4 annuity calculated in accordance with the formula in 5 subsection (b). For the purposes of this subsection, an 6 elected county officer shall be considered permanently 7 disabled only if: (i) disability occurs while in service as 8 an elected county officer and is of such a nature as to 9 prevent him from reasonably performing the duties of his 10 office at the time; and (ii) the board has received a written 11 certification by at least 2 licensed physicians appointed by 12 it stating that the officer is disabled and that the 13 disability is likely to be permanent. 14 (d) Refunds of additional optional contributions shall 15 be made on the same basis and under the same conditions as 16 provided under Section 7-166, 7-167 and 7-168. Interest 17 shall be credited at the effective rate on the same basis and 18 under the same conditions as for other contributions. 19 If an elected county officer fails to hold that same 20 elected county office for at least 8 years, he or she shall 21 be entitled after leaving office to receive a refund of the 22 additional optional contributions made with respect to that 23 office, plus interest at the effective rate. 24 (e) The plan of optional alternative benefits and 25 contributions shall be available to persons who are elected 26 county officers and active contributors to the Fund on or 27 after November 15, 1994. A person who was an elected county 28 officer and an active contributor to the Fund on November 15, 29 1994 but is no longer an active contributor may apply to make 30 additional optional contributions under this Section at any 31 time within 90 days after the effective date of this 32 amendatory Act of 1997; if the person is an annuitant, the 33 resulting increase in annuity shall begin to accrue on the 34 first day of the month following the month in which the HB1583 Enrolled -40- LRB9101658EGfg 1 required payment is received by the Fund. 2 (f) For the purposes of this Section and Section 3 7-145.2, the terms "elected county officer" and "elected 4 county office" include, but are not limited to: (1) the 5 county clerk, recorder, treasurer, coroner, assessor (if 6 elected), auditor, sheriff, and State's Attorney; members of 7 the county board; and the clerk of the circuit court; and (2) 8 a person who has been appointed to fill a vacancy in an 9 office that is normally filled by election on a countywide 10 basis, for the duration of his or her service in that office. 11 The terms "elected county officer" and "elected county 12 office" do not include any officer or office of a county that 13 has not consented to the availability of benefits under this 14 Section and Section 7-145.2. 15 (g) For the purposes of this Section and Section 16 7-145.2, the term "salary" means the final rate of earnings 17 for the elected county office held, calculated in a manner 18 consistent with Section 7-116, but for that office only. If 19 an elected county officer qualifies to have the formula in 20 subsection (b) applied to service in more than one elected 21 county office, a separate salary shall be calculated and 22 applied with respect to each such office. 23 (h) The changes to this Section made by this amendatory 24 Act of the 91st General Assembly apply to persons who first 25 make an additional optional contribution under this Section 26 on or after the effective date of this amendatory Act. 27 (Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00.) 28 (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157) 29 Sec. 7-157. Surviving spouse annuities - marriage to 30 terminate. If aanysurviving spouse annuitant marries,31 before reaching age 55, the annuity shall be terminated as of 32 the end of the calendar month following the month in which 33 the marriage occurs, unless the marriage occurs after HB1583 Enrolled -41- LRB9101658EGfg 1 December 31, 2000. 2 (Source: P.A. 81-618.) 3 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164) 4 Sec. 7-164. Death benefits - Amount. The amount of the 5 death benefit shall be: 6 1. Upon the death of an employee with at least one year 7 of service occurring while in an employment relationship 8 (including employees drawing disability benefits) with a 9 participating municipality or participating instrumentality, 10 an amount equal to the sum of: 11 (a) The employee's normal, additional and survivor 12 credits, including interest credited thereto through the 13 end of the preceding calendar year, but excluding credits 14 and interest thereon allowed for periods of disability. 15 (b) An amount equal to the employee's annual final 16 rate of earnings. An employee who dies as a result of 17 injuries connected with his duties shall be considered to 18 have a year of service for purposes of this benefit. 19 2. Upon the death of an employee with less than 1 year 20 of service occurring while in the service of any 21 participating municipality or instrumentality, an amount 22 equal to the sum of his accumulated normal, additional and 23 survivor credits on the date of death, excluding those 24 credits and interest thereon allowed during periods of 25 disability. 26 3. Upon the death of an employee who has separated from 27 service and was not entitled to a retirement annuity on the 28 date of death, an amount equal to the sum of his accumulated 29 normal, survivor and additional credits on the date of death 30 excluding those credits and interest thereon allowed during 31 periods of disability. 32 4. Upon the death of an employee in an employment 33 relationship, or an employee who has service and was entitled HB1583 Enrolled -42- LRB9101658EGfg 1 to a retirement annuity on the date of death, when a 2 surviving spouse or child annuity is awarded, $3,000. 3 5. Upon the death of an employee, who has separated from 4 service and was entitled to a retirement annuity on the date 5 of death, and no surviving spouse or child annuity is 6 awarded, $3,000 plus an amount equal to his accumulated 7 normal, survivor and additional credits on the date of death, 8 excluding those credits and interest earned thereon allowed 9 during periods of disability. 10 6. Upon the death of an employee annuitant, $3,000 and, 11 unless a surviving spouse, child or reversionary annuity is 12 payable, the sum of (i) the excess of the normal and survivor 13 credits, excluding those allowed during periods of 14 disability, which the annuitant had as of the effective date 15 of his annuity over the total annuities paid pursuant to 16 paragraph (a) 1 of Section 7-142 to the date of death, plus 17 (ii) the excess of the additional credits, excluding any such 18 credits used to create a reversionary annuity, used to 19 provide the annuity granted pursuant to paragraph (a) 2 of 20 Section 7-142 over the total annuity payments made pursuant 21 thereto to the time of death. 22 7. Upon the death of an annuitant receiving a 23 reversionary annuity or of a person designated to receive a 24 reversionary annuity prior to the receipt of such annuity the 25 sum of the additional credits of the person creating the 26 reversionary annuity as of the effective date of his own 27 retirement annuity over the reversionary annuity payments, if 28 any, made prior to the date of death of such annuitant or 29 person designated to receive the reversionary annuity. 30 8. Upon the death of an annuitant receiving a 31 beneficiary annuity which was effective before January 1, 32 1986, the excess of the death benefit which was used to 33 provide the annuity, over the sum of all annuity payments 34 made to the beneficiary. Upon the death of an annuitant HB1583 Enrolled -43- LRB9101658EGfg 1 receiving a beneficiary annuity effective January 1, 1986 or 2 thereafter, the sum of (i) the excess of the normal and 3 survivor credits, excluding those allowed during periods of 4 disability, which the annuitant had as of the effective date 5 of his annuity over the total annuities paid pursuant to 6 paragraph (c) of Section 7-165, to date of death, plus (ii) 7 the excess of the additional credits, excluding any such 8 credits used to create a reversionary annuity, used to 9 provide the annuity granted pursuant to paragraph (d) of 10 Section 7-165 over the total annuity payments made pursuant 11 thereto to the time of death. 12 9. Upon the marriage prior to reaching age 55 (except 13 for a surviving spouse who remarries after December 31, 2000) 14 or death of a person receiving a surviving spouse annuity, 15 unless a child annuity is payable, the sum of (i) the excess 16 of the normal and survivor credits, excluding those credits 17 and interest thereon allowed during periods of disability, 18 attributable to the employee at the effective date of the 19 annuity or date of death, whichever first occurred, over the 20 total of all annuity payments attributable to paragraph (a) 1 21 of Section 7-142 made to the employee or surviving spouse 22 plus (ii) the excess of the additional credits, excluding any 23 such credits used to create a reversionary annuity or used to 24 provide the annuity attributable to paragraph (a) 2 of 25 Section 7-142 over the total of such payments. 26 10. Upon the marriage, death or attainment of age 18 of 27 a child receiving a child annuity, if no other child 28 annuities are payable, the sum of (i) the excess of the 29 normal and survivor credits excluding those credits and 30 interest thereon allowed during periods of disability, of the 31 employee at the effective date of the annuity or date of 32 death, whichever first occurred, over the total annuity 33 payments attributable to paragraph (a) 1 of Section 7-142 34 made to the employee, surviving spouse and children plus (ii) HB1583 Enrolled -44- LRB9101658EGfg 1 the excess of the additional credits, excluding any such 2 credits used to create a reversionary annuity, used to 3 provide the annuity attributable to paragraph (a) 2 of 4 Section 7-142 over the total annuity payments made to the 5 employee, surviving spouse and children, pursuant thereto. 6 11. Upon the death of the participating employee whose 7 annuity was suspended upon his return to employment: 8 a. If a surviving spouse or child annuity is 9 awarded, $3,000; 10 b. If no surviving spouse or child annuity is 11 awarded and he had less than one year's service upon 12 return, $3,000 plus the excess of the normal, survivor 13 and additional credits, including interest thereon, but 14 excluding those allowed during a period of disability, at 15 the effective date of the suspended annuity, plus those 16 allowed after his return, over all annuity payments made 17 to the employee; 18 c. If no surviving spouse or child annuity is 19 awarded and he has one year or more of service upon 20 return, the higher of (a) the payment under subparagraph 21 b of this paragraph or (b) the payment under paragraph 1 22 of this Section, taking into consideration only the 23 service and credits allowed after his return, plus the 24 excess of the normal, survivor and additional credits, 25 including interest thereon, excluding those allowed 26 during periods of disability, at the effective date of 27 his suspended annuity over all annuity payments made to 28 the employee. 29 12. The $3,000 death benefit provided in paragraphs 4 30 and 6 shall not be payable to beneficiaries of persons who 31 terminated service prior to September 8, 1971, unless the 32 payment or agreement for payment provided by Section 7-144.2 33 of this Article is made prior to the date of death. 34 13. The increase in certain death benefits from $1,000 HB1583 Enrolled -45- LRB9101658EGfg 1 to $3,000 provided by this amendatory Act of 1987 shall apply 2 only to deaths occurring on or after January 1, 1988. 3 (Source: P.A. 85-941.) 4 (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166) 5 Sec. 7-166. Separation benefits - Eligibility. 6 Separation benefits shall be payable as hereinafter set 7 forth: 8 1. Upon separation from the service of all participating 9 municipalities and instrumentalities thereof and 10 participating instrumentalities, any participating employee 11upon the termination of his participation as a participating12employeewho, on the date of application for such benefit, is 13 not entitled to a retirement annuity shall be entitled to a 14 separation benefit; 15 2. Upon separation from the service of all participating 16 municipalities and instrumentalities thereof and 17 participating instrumentalities, any participating employee 18upon the termination of his participation as a participating19employeewho, on the date of application for such benefit, is 20 entitled to a retirement annuity of less than $30 per month 21 for life may elect to take a separation benefit in lieu of 22 the retirement annuity. 23 (Source: Laws 1963, p. 161.) 24 (40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167) 25 Sec. 7-167. Separation benefits - Payment. Separation 26 benefits shall be paid in the form of a single cash sum as 27 soon as practicable after receipt by the board of: 28 1. a written application by the employee for such 29 benefits; and 30 2. written notice from the last employing 31 participating municipality or instrumentality thereof or 32 participating instrumentality, certifying that such HB1583 Enrolled -46- LRB9101658EGfg 1 participating employee has separated from service 2terminated his participation. 3 (Source: Laws 1963, p. 161.) 4 (40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184) 5 Sec. 7-184. To determine prior service. 6 To determine the length of prior service from such 7 information as is available. Any such determination shall be 8 conclusive as to any such period of service, unlesswithin 29years of the issuance of the first individual statement to an10employee,the board reconsiders the case and changes the 11 determination. 12 The change to this Section made by this amendatory Act of 13 the 91st General Assembly applies without regard to whether 14 the individual is in service on or after the effective date 15 of this amendatory Act. 16 (Source: Laws 1963, p. 161.) 17 (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211) 18 Sec. 7-211. Authorizations. 19 (a) Each participating municipality and instrumentality 20 thereof and each participating instrumentality shall: 21 1. Deduct all normal and additional contributions 22 and contributions for federal Social Security taxes as 23 required by the Social Security Enabling Act from each 24 payment of earnings payable to each participating 25 employee who is entitled to any earnings from such 26 municipality or instrumentality thereof or participating 27 instrumentality, andtoremit all such contributions 28 immediately to the board; and 29 2. Pay to the board contributions required by this 30 Article. 31 (b) Each participating employee shall, by virtue of the 32 payment of contributions to this fund, receive a vested HB1583 Enrolled -47- LRB9101658EGfg 1 interest in the annuities and benefits provided in this 2 Article and in consideration of such vested interest shall be 3 deemed to have agreed and authorized the deduction from 4 earnings of all contributions payable to this fund in 5 accordance with this Article. 6 (c) Payment of earnings less the amounts of 7 contributions provided in this Article and in the Social 8 Security Enabling Act shall be a full and complete discharge 9 of all claims for payment for services rendered by any 10 employee during the period covered by any such payment. 11 (d) Any covered annuitant may authorize the withholding 12 of all or a portion of his or her annuity, for the payment of 13 premiums on group accident and health insurance provided 14 pursuant to Section 7-199.1. The annuitant may revoke this 15 authorization at any time. 16 (Source: P.A. 84-812.) 17 (40 ILCS 5/7-224 new) 18 Sec. 7-224. Section 415 limitations. Notwithstanding 19 any other provisions of this Article, the combined benefits 20 and contributions provided to any participating employee by 21 all plans of any participating municipality and its 22 instrumentalities and any participating instrumentality shall 23 not exceed the limitations specified in Section 415(b), (c), 24 and (e) of the Internal Revenue Code of 1986. If a 25 participating employee's benefits or contributions under this 26 Article, combined with those under any other plan of the 27 participating municipality and its instrumentalities or 28 participating instrumentality, would otherwise violate those 29 limitations, the benefits and contributions under the other 30 plan shall be reduced, rather than the benefits and 31 contributions provided under this Article. To the extent 32 that the other plan fails to limit such benefits and 33 contributions, that plan shall be disqualified. HB1583 Enrolled -48- LRB9101658EGfg 1 (40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125) 2 Sec. 8-125. Annuity. 3 "Annuity": Equal monthly payments for life, unless 4 otherwise specified. 5 For annuities taking effect before January 1, 1998, the 6 first payment shall be due and payable one month after the 7 occurrence of the event upon which payment of the annuity 8 depends, and the last payment shall be due and payable as of 9 the date of the annuitant's death and shall be prorated from 10 the date of the last preceding payment to the date of death 11 for deaths that occur on or before March 31, 2000. All 12 payments made on or after April 1, 2000 shall be made on the 13 first day of the calendar month and the last payment shall be 14 made on the first day of the calendar month in which the 15 annuity payment period ends. All payments for months 16 beginning with April of 2000 shall be for the entire calendar 17 month, without proration. A pro rata amount shall be paid for 18 that part of the month from the March 2000 annuity payment 19 date through March 31, 2000. 20 For annuities taking effect on or after January 1, 1998, 21 payments shall be made as of the first day of the calendar 22 month, with the first payment to be made as of the first day 23 of the calendar month coincidental with or next following the 24 first day of the annuity payment period, and the last payment 25 to be made as of the first day of the calendar month in which 26 the annuity payment period ends. For annuities taking effect 27 on or after January 1, 1998, all payments shall be for the 28 entire calendar month, without proration. 29 For the purposes of this Section, the "annuity payment 30 period" means the period beginning on the day after the 31 occurrence of the event upon which payment of the annuity 32 depends, and ending on the day upon which the death of the 33 annuitant or other event terminating the annuity occurs. 34 (Source: P.A. 90-31, eff. 6-27-97.) HB1583 Enrolled -49- LRB9101658EGfg 1 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139) 2 Sec. 8-139. Reversionary annuity. 3 (a) An employee, prior to retirement on annuity, may 4 elect to take a lesser amount of annuity and provide, with 5 the actuarial value of the amount by which his annuity is 6 reduced, a reversionary annuity for a wife, husband, parent, 7 child, brother or sister. The option shall be exercised by 8 filing a written designation with the board prior to 9 retirement, and may be revoked by the employee at any time 10 before retirement. The death of the employee prior to his 11 retirement shall automatically void the option. 12 (b) The death of the designated reversionary annuitant 13 prior to the employee's retirement shall automatically void 14 the option. If the reversionary annuitant dies after the 15 employee's retirement, and before the death of the employee 16 annuitant, the reduced annuity being paid to the retired 17 employee annuitant shall be increased to the amount of 18 annuity before reduction for the reversionary annuity and no 19 reversionary annuity shall be payable. 20 The option is subject to the further condition that no 21 reversionary annuity shall be paid to a parent, child, 22 brother, or sister if the employee dies before the expiration 23 of 365 days from the date his written designation was filed 24 with the board, even though he has retired and is receiving a 25 reduced annuity. 26 (c) The employee exercising this option shall not reduce 27 his retirement annuity by more than $400 a month, or elect to 28 provide a reversionary annuity of less than $50 per month. 29 No option shall be permitted if the reversionary annuity for 30 a widow, when added to the widow's annuity payable under this 31 Article, exceeds 100% of the reduced annuity payable to the 32 employee. 33 (d) A reversionary annuity shall begin on the day 34 following the death of the annuitant and shall be paid as HB1583 Enrolled -50- LRB9101658EGfg 1 provided in Section 8-125. 2 (e) The increases in annuity provided in Section 8-137 3 of this Article shall, as to an employee so electing a 4 reduced annuity relate to the amount of the original annuity, 5 and such amount shall constitute the annuity on which such 6 automatic increases shall be based. 7 (f) For annuities elected after June 30, 1983, the 8 amount of the monthly reversionary annuity shall be 9 determined by multiplying the amount of the monthly reduction 10 in the employee's annuity by the factor in the following 11 table based on the age of the employee and the difference in 12 the age of the employee and the age of the reversionary 13 annuitant at the starting date of the employee's annuity: 14 Employee's Age 15 Reversionary 16 Annuitant's 17 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 & 18 Over 19 30 or 20 more 21 years 22 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91 23 25-29 24 years 25 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97 26 20-24 27 years 28 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06 29 15-19 30 years 31 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19 32 10-14 33 years 34 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37 HB1583 Enrolled -51- LRB9101658EGfg 1 5-9 2 years 3 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64 4 0-4 5 years 6 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02 7 1-5 8 years 9 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56 10 6-10 11 years 12 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29 13 11-15 14 years 15 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32 16 16-20 17 years 18 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87 19 21-25 20 years 21 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35 22 26-30 23 years 24 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82 25 31 or 26 more 27 years 28 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28 29 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.) 30 (40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153) 31 Sec. 8-153. Widow's remarriagemarriage to terminate32annuity. A widow's annuity shall terminate when she remarries 33 if the marriage takes place before the date 60 days after the HB1583 Enrolled -52- LRB9101658EGfg 1 effective date of this amendatory Act of the 91st General 2 Assembly. If a widow remarries 60 or more days after the 3 effective date of this amendatory Act of the 91st General 4 Assembly, the widow's annuity shall continue without 5 interruption. 6 When a widow dies, if she has not received, in the form 7 of an annuity, an amount equal to the total credited from 8 employee's contributions and applied for the widow's annuity, 9 the difference between such annuity credits and the amount 10 received by her shall be refunded to her, provided, that if a 11 reversionary annuity is payable to her, or to any other 12 person designated by the employee, such amount shall not be 13 refunded but the reversionary annuity shall be payable. If 14 there is any child of the employee who is under 18 years of 15 age, the part of any such amount that is required to pay an 16 annuity to the child shall be transferred to the child's 17 annuity reserve. In making refunds under this Section, no 18 interest shall be paid upon either the total of annuity 19 payments made or the amounts subject to refund. Any refund 20 shall be paid according to the provisions of Section 8-170. 21A subsequent change in marital status of the widow shall22not effect any restoration of any rights under this Article23except in the case of declaration of invalidity of a24subsequent marriage wherein the declaration of invalidity is25based upon charges of bigamy by the subsequent husband or the26legal disability of the subsequent husband to enter into a27marriage.28 (Source: P.A. 83-706.) 29 (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171) 30 Sec. 8-171. Refund in lieu of annuity. In lieu of an 31 annuity, an employee who withdraws and whose annuity would 32 amount to less than $800$300a month for life, may elect to 33 receive a refund of his accumulated contributions for annuity HB1583 Enrolled -53- LRB9101658EGfg 1 purposes, based on the amounts contributed by him. 2 The widow of any employee, eligible for annuity upon the 3 death of her husband, whose widow's annuity would amount to 4 less than $800$300a month for life, may, in lieu of widow's 5 annuity, elect to receive a refund of the accumulated 6 contributions for annuity purposes, based on the amounts 7 contributed by her deceased employee husband, but reduced by 8 any amounts theretofore paid to him in the form of an annuity 9 or refund out of such accumulated contributions. 10 Accumulated contributions shall mean the amounts - 11 including the interest credited thereon - contributed by the 12 employee for age and service and widow's annuity to the date 13 of his withdrawal or death, whichever first occurs, including 14 any amounts contributed for him as salary deductions while 15 receiving duty disability benefits, and, if not otherwise 16 included, any accumulations from sums contributed by him and 17 applied to any pension fund superseded by this fund. 18 The acceptance of such refund in lieu of widow's annuity, 19 on the part of a widow, shall not deprive a child or children 20 of the right to receive a child's annuity as provided for in 21 Sections 8-158 and 8-159 of this Article, and neither shall 22 the payment of a child's annuity in the case of such refund 23 to a widow reduce the amount herein set forth as refundable 24 to such widow electing a refund in lieu of widow's annuity. 25 (Source: P.A. 86-1488.) 26 (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244) 27 Sec. 8-244. Annuities, etc., exempt. 28 (a) All annuities, refunds, pensions, and disability 29 benefits granted under this Article, shall be exempt from 30 attachment or garnishment process and shall not be seized, 31 taken, subjected to, detained, or levied upon by virtue of 32 any judgment, or any process or proceeding whatsoever issued 33 out of or by any court in this State, for the payment and HB1583 Enrolled -54- LRB9101658EGfg 1 satisfaction in whole or in part of any debt, damage, claim, 2 demand, or judgment against any annuitant, pensioner, 3 participant, refund applicant, or other beneficiary 4 hereunder. 5 (b) No annuitant, pensioner, refund applicant, or other 6 beneficiary shall have any right to transfer or assign his 7 annuity, refund, or disability benefit or any part thereof by 8 way of mortgage or otherwise, except that: 9 (1) an annuitant or pensioner who elects or has 10 elected to participate in a non-profit group hospital 11 care plan or group medical surgical plan may with the 12 approval of the board and in conformity with its 13 regulations authorize the board to withhold from the 14 pension or annuity the current premium for such coverage 15 and pay such premium to the organization underwriting 16 such plan; 17 (2) in the case of refunds, a participant may 18 pledge by assignment, power of attorney, or otherwise, as 19 security for a loan from a legally operating credit union 20 making loans only to participants in certain public 21 employee pension funds described in the Illinois Pension 22 Code, all or part of any refund which may become payable 23 to him in the event of his separation from service; and 24 (3) the board, in its discretion, may pay to the 25 wife of any annuitant, pensioner, refund applicant, or 26 disability beneficiary, such an amount out of her 27 husband's annuity pension, refund, or disability benefit 28 as any court of competent jurisdiction may order, or such 29 an amount as the board may consider necessary for the 30 support of his wife or children, or both in the event of 31 his disappearance or unexplained absence or of his 32 failure to support such wife or children. 33 (c) The board may retain out of any future annuity, 34 pension, refund or disability benefit payments, such amount, HB1583 Enrolled -55- LRB9101658EGfg 1 or amounts, as it may require for the repayment of any moneys 2 paid to any annuitant, pensioner, refund applicant, or 3 disability beneficiary through misrepresentation, fraud or 4 error. Any such action of the board shall relieve and 5 release the board and the fund from any liability for any 6 moneys so withheld. 7 (d) Whenever an annuity or disability benefit is payable 8 to a minor or to a person certified by a medical doctor 9adjudgedto be under legal disability, the board, in its 10 discretion and when it is intothe best interest of the 11 person concerned, may waive guardianship proceedings and pay 12 the annuity or benefit to the person providing or caring for 13 the minor orand to the wife, parent or blood relative14providing or caring for theperson under legal disability. 15 In the event that a person certified by a medical doctor 16 to be under legal disability (i) has no spouse, blood 17 relative, or other person providing or caring for him or 18 her, (ii) has no guardian of his or her estate, and (iii) is 19 confined to a Medicare approved, State certified nursing home 20 or to a publicly owned and operated nursing home, hospital, 21 or mental institution, the Board may pay any benefit due that 22 person to the nursing home, hospital, or mental institution, 23 to be used for the sole benefit of the person under legal 24 disability. 25 Payment in accordance with this subsection to a person, 26 nursing home, hospital, or mental institution for the benefit 27 of a minor or person under legal disability shall be an 28 absolute discharge of the Fund's liability with respect to 29 the amount so paid. Any person, nursing home, hospital, or 30 mental institution accepting payment under this subsection 31 shall notify the Fund of the death or any other relevant 32 change in the status of the minor or person under legal 33 disability. 34 (Source: P.A. 86-1488.) HB1583 Enrolled -56- LRB9101658EGfg 1 (40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149) 2 Sec. 9-149. Widow's remarriagemarriageto terminate 3 annuity. A widow's annuity shall terminate when she 4 remarries if the marriage takes place before the date 60 days 5 after the effective date of this amendatory Act of the 91st 6 General Assembly. If a widow remarries 60 or more days after 7 the effective date of this amendatory Act of the 91st General 8 Assembly, the widow's annuity shall continue without 9 interruption. 10 When a widow dies, if she has not received, in the form 11 of an annuity, an amount equal to the total sums accumulated 12 and credited from the employee's contributions and applied 13 for the widow's annuity, the difference between such 14 accumulated annuity credits and the amount received by her in 15 annuity payments shall be refunded to her; provided that if a 16 reversionary annuity is payable to her or to any other person 17 designated by the employee, thissuch aforesaidamount shall 18 not be refunded, but the reversionary annuity shall be 19 payable. 20 (Source: P.A. 81-1536.) 21 (40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194) 22 Sec. 9-194. To invest the reserves. To invest the 23 reserves of the fund in accordance with Sections 1-109, 24 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act. 25 Investments made in accordance with Section 1-113 shall be 26 deemed to be prudentthe provisions set forth in Section271-113 of this Act. 28 The retirement board may sell any security held by it at 29 any time it deems it desirable. 30 The board may enter into agreements and execute documents 31 that it determines to be necessary to complete any investment 32 transaction. 33 All investments shall be clearly held and accounted for HB1583 Enrolled -57- LRB9101658EGfg 1 to indicate ownership by the board. The board may direct the 2 registration of securities in its own name or in the name of 3 a nominee created for the express purpose of registration of 4 securities by a savings and loan association or national or 5 State bank or trust company authorized to conduct a trust 6 business in the State of Illinois. 7 Investments shall be carried at cost or at a value 8 determined in accordance with generally accepted accounting 9 principles. 10 (Source: P.A. 82-960.) 11 (40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124) 12 Sec. 11-124. Annuity. 13 "Annuity": Equal monthly payments for life, unless 14 terminated earlier under Section 11-148, 11-152, 11-153, or 15 11-230. 16 For annuities taking effect before January 1, 1998, the 17 first payment shall be due and payable one month after the 18 occurrence of the event upon which payment of the annuity 19 depends. Until August 1, 1999,andpayment shall be made 20 for any part of a monthly period in which death of the 21 annuitant occurs. Beginning August 1, 1999, all payments 22 shall be made on the first day of the calendar month and 23 shall be for the entire calendar month, without proration. 24 The last payment shall be made on the first day of the 25 calendar month in which the annuity payment period ends. A 26 pro rata amount shall be paid for that part of the month from 27 the July 1999 annuity payment date through July 31, 1999. 28 For annuities taking effect on or after January 1, 1998, 29 payments shall be made as of the first day of the calendar 30 month, with the first payment to be made as of the first day 31 of the calendar month coincidental with or next following the 32 first day of the annuity payment period, and the last payment 33 to be made as of the first day of the calendar month in which HB1583 Enrolled -58- LRB9101658EGfg 1 the annuity payment period ends. For annuities taking effect 2 on or after January 1, 1998, all payments shall be for the 3 entire calendar month, without proration. 4 For the purposes of this Section, the "annuity payment 5 period" means the period beginning on the day after the 6 occurrence of the event upon which payment of the annuity 7 depends, and ending on the day upon which the death of the 8 annuitant or other event terminating the annuity occurs. 9 (Source: P.A. 90-31, eff. 6-27-97.) 10 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2) 11 Sec. 11-134.2. Reversionary annuity. 12 (a) An employee, prior to retirement on annuity, may 13 elect to take a lesser amount of annuity and provide, with 14 the actuarial value of the amount by which his annuity is 15 reduced, a reversionary annuity for a wife, husband, parent, 16 child, brother or sister. The option shall be exercised by 17 filing a written designation with the board prior to 18 retirement, and may be revoked by the employee at any time 19 before retirement. The death of the employee prior to his 20 retirement shall automatically void the option. 21 (b) The death of the designated reversionary annuitant 22 prior to the employee's retirement shall automatically void 23 the option. If the reversionary annuitant dies after the 24 employee's retirement, and before the death of the employee 25 annuitant, the reduced annuity being paid to the retired 26 employee annuitant shall be increased to the amount of 27 annuity before reduction for the reversionary annuity and no 28 reversionary annuity shall be payable. 29 The option is subject to the further condition that no 30 reversionary annuity shall be paid to a parent, child, 31 brother, or sister if the employee dies before the expiration 32 of 365 days from the date his written designation was filed 33 with the board, even though he has retired and is receiving a HB1583 Enrolled -59- LRB9101658EGfg 1 reduced annuity. 2 (c) The employee exercising this option shall not reduce 3 his retirement annuity by more than $400 per month, or elect 4 to provide a reversionary annuity of less than $50 per month. 5 No option shall be permitted if the reversionary annuity for 6 a widow, when added to the widow's annuity payable under this 7 Article, exceeds 100% of the reduced annuity payable to the 8 employee. 9 (d) A reversionary annuity shall begin on the day 10 following the death of the annuitant and shall be paid as 11 provided in Section 11-124. 12 (e) The increases in annuity provided in Section 13 11-134.1 of this Article shall, as to an employee so electing 14 a reduced annuity, relate to the amount of the original 15 annuity, and such amount shall constitute the annuity on 16 which such increases shall be based. 17 (f) For annuities elected after June 30, 1983, the 18 amount of the monthly reversionary annuity shall be 19 determined by multiplying the amount of the monthly reduction 20 in the employee's annuity by the factor in the following 21 table based on the age of the employee and the difference in 22 the age of the employee and the age of the reversionary 23 annuitant at the starting date of the employee's annuity: 24 Employee's Age 25 Reversionary 26 Annuitant's 27 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 & 28 Over 29 30 or 30 more 31 years 32 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91 33 25-29 34 years HB1583 Enrolled -60- LRB9101658EGfg 1 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97 2 20-24 3 years 4 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06 5 15-19 6 years 7 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19 8 10-14 9 years 10 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37 11 5-9 12 years 13 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64 14 0-4 15 years 16 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02 17 1-5 18 years 19 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56 20 6-10 21 years 22 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29 23 11-15 24 years 25 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32 26 16-20 27 years 28 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87 29 21-25 30 years 31 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35 32 26-30 33 years 34 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82 HB1583 Enrolled -61- LRB9101658EGfg 1 31 or 2 more 3 years 4 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28 5 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.) 6 (40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148) 7 Sec. 11-148. Widow's remarriageto terminate annuity. A 8 widow's annuity shall terminate when she remarries if the 9 marriage takes place before the date 60 days after the 10 effective date of this amendatory Act of the 91st General 11 Assembly. If a widow remarries 60 or more days after the 12 effective date of this amendatory Act of the 91st General 13 Assembly, the widow's annuity shall continue without 14 interruption. 15 When a widow dies, if she has not received, in the form 16 of an annuity, an amount equal to the total sum accumulated 17 to his credit from employee's contributions and applied for 18 the widow's annuity, the difference between such accumulated 19 annuity credits and the amount received by her in annuity 20 payments shall be refunded to her, provided, that if a 21 reversionary annuity is payable if to her, or to any other 22 person designated by the employee, such aforesaid amount 23 shall not be refunded but the reversionary annuity shall be 24 payable. If there is any child of the employee who is under 25 18 years of age, the part of any such amount that is required 26 to pay an annuity to the child shall be transferred to the 27 child's annuity reserve. In making refunds under this 28 Section, no interest shall be paid upon either the total of 29 annuity payments made or the amounts subject to refund. Any 30 refund shall be paid according to the provisions of Section 31 11-166. 32A subsequent change in marital status of the widow shall33not affect any restoration of any rights under this ArticleHB1583 Enrolled -62- LRB9101658EGfg 1except in the case of declaration of invalidity of a2subsequent marriage wherein the declaration of invalidity is3based upon charges of bigamy by the subsequent husband or the4legal disability of the subsequent husband to enter into a5marriage.6 (Source: P.A. 83-706.) 7 (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167) 8 Sec. 11-167. Refunds in lieu of annuity. In lieu of an 9 annuity, an employee who withdraws, and whose annuity would 10 amount to less than $800$300a month for life may elect to 11 receive a refund of the total sum accumulated to his credit 12 from employee contributions for annuity purposes. 13 The widow of any employee, eligible for annuity upon the 14 death of her husband, whose annuity would amount to less than 15 $800$300a month for life, may, in lieu of a widow's 16 annuity, elect to receive a refund of the accumulated 17 contributions for annuity purposes, based on the amounts 18 contributed by her deceased employee husband, but reduced by 19 any amounts theretofore paid to him in the form of an annuity 20 or refund out of such accumulated contributions. 21 Accumulated contributions shall mean the amounts 22 including interest credited thereon contributed by the 23 employee for age and service and widow's annuity to the date 24 of his withdrawal or death, whichever first occurs, and 25 including the accumulations from any amounts contributed for 26 him as salary deductions while receiving duty disability 27 benefits; provided that such amounts contributed by the city 28 after December 31, 1983 while the employee is receiving duty 29 disability benefits. 30 The acceptance of such refund in lieu of widow's annuity, 31 on the part of a widow, shall not deprive a child or children 32 of the right to receive a child's annuity as provided for in 33 Sections 11-153 and 11-154 of this Article, and neither shall HB1583 Enrolled -63- LRB9101658EGfg 1 the payment of a child's annuity in the case of such refund 2 to a widow reduce the amount herein set forth as refundable 3 to such widow electing a refund in lieu of widow's annuity. 4 (Source: P.A. 90-655, eff. 7-30-98.) 5 (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181) 6 Sec. 11-181. Board created. A board of 8 members shall 7 constitute the board of trustees authorized to carry out the 8 provisions of this Article. The board shall be known as the 9 Retirement Board of the Laborers' and Retirement Board 10 Employees' Annuity and Benefit Fund of the city. The board 11 shall consist of 5 persons appointed and 2 employees and one 12 annuitant elected in the manner hereinafter prescribed. 13 The appointed members of the board shall be appointed as 14 follows: 15 One member shall be appointed by the comptroller of the 16 city, who may be himself or anyone chosen from among 17 employees of the city who are versed in the affairs of the 18 comptroller's office; one member shall be appointed by the 19 City Treasurer of the city, who may be himself or a person 20 chosen from among employees of the city who are versed in the 21 affairs of the City Treasurer's office; one member shall be 22 an employee of the city appointed by the president of the 23 local labor organization representing a majority of the 24 employees participating in the Fund; and 2 members shall be 25 appointed by the civil service commission or the Department 26 of Personnel of the city from among employees of the city who 27 are versed in the affairs of the civil service commission's 28 office or the Department of Personnel. 29 The member appointed by the comptroller shall hold office 30 for a term ending on December 1st of the first year following 31 the year of appointment. The member appointed by the City 32 Treasurer shall hold office for a term ending on December 1st 33 of the second year following the year of appointment. The HB1583 Enrolled -64- LRB9101658EGfg 1 member appointed by the civil service commission shall hold 2 office for a term ending on the first day in the month of 3 December of the third year following the year of appointment. 4 The additional member appointed by the civil service 5 commission under this amendatory Act of 1998 shall hold 6 office for an initial term ending on December 1, 2000, and 7 the member appointed by the labor organization president 8 shall hold office for an initial term ending on December 1, 9 2001. Thereafter each appointive member shall be appointed 10 by the officer or body that appointed his predecessor, for a 11 term of 3 years. 12 The 2 employee members of the board shall be elected as 13 follows: 14 Within 30 days from and after the appointive members have 15 been appointed and have qualified, the appointive members 16 shall arrange for and hold an election. 17 One employee shall be elected for a term ending on 18 December 1st of the first year next following the effective 19 date; one for a term ending on December 1st of the following 20 year. 21 The initial annuitant member shall be appointed by the 22 other members of the board for an initial term ending on 23 December 1, 1999.Thereafter,The annuitant member elected 24 in 1999 shall be deemed to have been elected for a 3-year 252-yearterm ending on December 1, 2002. Thereafter, the 26 annuitant member shall be elected for a 3-year term ending on 27 December 1st of the third year following the election1st of28the next odd-numbered year. 29 (Source: P.A. 90-766, eff. 8-14-98.) 30 (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182) 31 Sec. 11-182. Board elections; qualification; oath. 32 (a) In each year, the board shall conduct a regular 33 election, under rules adopted by it, at least 30 days prior HB1583 Enrolled -65- LRB9101658EGfg 1 to the expiration of the term of the employee member whose 2 term next expires, for the election of a successor for a term 3 of 32years. Each employee member and his or her successor 4 shall be an employee who holds a position by certification 5 and appointment as a result of competitive civil service 6 examination as distinguished from temporary appointment, or 7 so holds a position which is not exempt from the classified 8 service or the personnel ordinance of a city that has adopted 9 a career service ordinance, for a period of not less than 5 10 years prior to date of election. At any such election, all 11 persons who are employees at the time such election is held 12 shall have a right to vote. The ballot shall be of secret 13 character. 14 (b)In each odd-numbered year,The board shall conduct a 15 regular election, under rules adopted by it, at least 30 days 16 prior to the expiration of the term of the annuitant member, 17 for the election of a successor for a term of 32years. 18 Each annuitant member and his or her successor shall be a 19 former employee receiving a retirement (age and service or 20 prior service) annuity from the Fund. At any such election, 21 all persons who are receiving a retirement (age and service 22 or prior service) annuity from the Fund at the time the 23 election is held have a right to vote. The ballot shall be 24 of secret character. 25 (c) Any appointive or elective member of the board shall 26 hold office until his or her successor is elected and 27 qualified. 28 Any person elected or appointed as a member of the board 29 shall qualify for the office by taking an oath of office to 30 be administered by the city clerk or any person designated by 31 the city clerk. A copy thereof shall be kept in the office 32 of the city clerk. 33 Any appointment shall be in writing and the written 34 instrument shall be filed with the oath. HB1583 Enrolled -66- LRB9101658EGfg 1 (Source: P.A. 90-766, eff. 8-14-98.) 2 (40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223) 3 Sec. 11-223. Annuities, etc., exempt. 4 (a) All annuities, refunds, pensions, and disability 5 benefits granted under this Article shall be exempt from 6 attachment or garnishment process and shall not be seized, 7 taken, subjected to, detained, or levied upon by virtue of 8 any judgment, or any process or proceeding whatsoever issued 9 out of or by any court in this State, for the payment and 10 satisfaction in whole or in part of any debt, damage, claim, 11 demand, or judgment against any annuitant, participant, 12 refund applicant, or other beneficiary hereunder. 13 No annuitant, refund applicant, or other beneficiary may 14 transfer or assign his annuity, refund, or disability benefit 15 or any part thereof by way of mortgage or otherwise, except 16 as provided in Section 11-223.1, and except in the case of 17 refunds, when a participant has pledged by assignment, power 18 of attorney, or otherwise, as security for a loan from a 19 legally operating credit union making loans only to 20 participants in certain public employee pension funds 21 described in the Illinois Pension Code, all or part of any 22 refund which may become payable to him in the event of his 23 separation from service. The board in its discretion may, 24 however, pay to the wife or to the unmarried child under 18 25 years of age of any annuitant, refund applicant, or 26 disability beneficiary, such an amount out of her husband's 27 annuity refund, or disability benefit as any court may order, 28 or such an amount as the board may consider necessary for the 29 support of his wife or children or both in the event of his 30 disappearance or unexplained absence or of his failure to 31 support such wife or children. 32 (b) The board may retain out of any future annuity, 33 refund, or disability benefit payments,such amount,or HB1583 Enrolled -67- LRB9101658EGfg 1 amounts as it may require for the repayment of any moneys 2 paid to any annuitant, pensioner, refund applicant, or 3 disability beneficiary through misrepresentation, fraud or 4 error. Any such action of the board shall relieve and 5 release the board and the fund from any liability for any 6 moneys so withheld. 7 (c) Whenever an annuity or disability benefit is payable 8 to a minor or to a person certified by a medical doctor 9adjudgedto be under legal disability, the board, in its 10 discretion and when it is intothe best interest of the 11 person concerned, may waive guardianship or conservatorship 12 proceedings and pay the annuity or benefit to the person 13 providing or caring for the minor orand to the wife, parent14or blood relative providing or caring for theperson under 15 legal disability. 16 In the event that a person certified by a medical doctor 17 to be under legal disability (i) has no spouse, blood 18 relative, or other person providing or caring for him or 19 her, (ii) has no guardian of his or her estate, and (iii) is 20 confined to a Medicare approved, State certified nursing home 21 or to a publicly owned and operated nursing home, hospital, 22 or mental institution, the Board may pay any benefit due that 23 person to the nursing home, hospital, or mental institution, 24 to be used for the sole benefit of the person under legal 25 disability. 26 Payment in accordance with this subsection to a person, 27 nursing home, hospital, or mental institution for the benefit 28 of a minor or person under legal disability shall be an 29 absolute discharge of the Fund's liability with respect to 30 the amount so paid. Any person, nursing home, hospital, or 31 mental institution accepting payment under this subsection 32 shall notify the Fund of the death or any other relevant 33 change in the status of the minor or person under legal 34 disability. HB1583 Enrolled -68- LRB9101658EGfg 1 (d) Whenever an annuitant, applicant for refund or 2 disability beneficiary disappears and his whereabouts are 3 unknown, and it cannot be ascertained that he is alive, there 4 shall be paid to his wife or children or both such amount as 5 will not be in excess of the amount payable to them in the 6 event such annuitant, applicant for refund or disability 7 beneficiary had died on the date of disappearance. If he 8 returns, or upon satisfactory proof of his being alive, the 9 amount theretofore paid to such beneficiaries shall be 10 charged against any moneys payable to him under this Article 11 as though such payment to such beneficiaries had been an 12 allowance to them out of the moneys payable to the employee 13 as an annuitant, applicant for refund or disability 14 beneficiary. 15 (Source: P.A. 83-706.) 16 (40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303) 17 Sec. 13-303. Reversionary annuity. 18 (a) An employee, prior to retirement on annuity, may 19 elect a lesser amount of annuity and provide, with the 20 actuarial value of the amount by which his annuity is 21 reduced, a reversionary annuity for a wife, husband, parents, 22 children, brothers or sisters. The election may be exercised 23 by filing a written designation with the Board prior to 24 retirement, and may be revoked by the employee at any time 25 before retirement. The death of the employee prior to 26 retirement shall automatically void the election. 27 (b) The death of the designated reversionary annuitant 28 prior to the employee's retirement shall automatically void 29 the election, but, if death of the designated reversionary 30 annuitant occurs after retirement, the reduced annuity being 31 paid to the retired employee annuitant shall remain unchanged 32 and no reversionary annuity shall be payable. 33 No reversionary annuity shall be paid if the employee HB1583 Enrolled -69- LRB9101658EGfg 1 dies before the expiration of 730 days from the date the 2 written designation was filed with the board, even though the 3 employee retired and was receiving a reduced annuity. 4 (c) An employee exercising this option shall not reduce 5 the annuity by more than 25%, nor elect to provide a 6 reversionary annuity of less than $100 per month. No such 7 option shall be permitted if the reversionary annuity for a 8 surviving spouse, when added to the surviving spouse's 9 annuity payable under this Article, exceeds 85% of the 10 reduced annuity payable to the employee. 11 (d) A reversionary annuity shall begin on the day 12 following the death of the annuitant, with the first payment 13 due and payable one month later, and shall continue monthly 14 thereafter until the death of the reversionary annuitant. 15 (e) The increases in annuity provided in Section 16 13-302(d) shall, as to an employee so electing a reduced 17 annuity, relate to the amount of reduced annuity, and such 18 lesser amount shall constitute the annuity on which such 19 increases shall be based. 20 (f) For determining the actuarial value under this 21 option of the employee's annuity and the reversionary 22 annuity, the Fund shall use an actuarial table recommended by 23 the Fund's actuarial consultant and approved by the Board of 24 Trusteesthe following actuarial table shall be used: "195125Group Annuity Male Table of Mortality," set back 5 years for26employees, with 3% interest. 27 (Source: P.A. 87-794.) 28 (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309) 29 Sec. 13-309. Duty disability benefit. 30 (a) Any employee who becomes disabled, which disability 31 is the result of an injury or illness compensable under the 32 Illinois Workers' Compensation Act or the Illinois Workers' 33 Occupational Diseases Act, is entitled to a duty disability HB1583 Enrolled -70- LRB9101658EGfg 1 benefit during the period of disability for which the 2 employee does not receive any part of salary, or any part of 3 a retirement annuity under this Article; except that in the 4 case of an employee who first enters service on or after the 5 effective date of this amendatory Act of 1997, a duty 6 disability benefit is not payable for the first 3 days of 7 disability that would otherwise be payable under this Section 8 if the disability does not continue for at least 11 9 additional days. This benefit shall be 75% of salary at the 10 date disability begins. However, if the disability in any 11 measure resulted from any physical defect or disease which 12 existed at the time such injury was sustained or such illness 13 commenced, the duty disability benefit shall be 50% of 14 salary. 15 Unless the employer acknowledges that the disability is a 16 result of injury or illness compensable under the Workers' 17 Compensation Act or the Workers' Occupational Diseases Act, 18 the duty disability benefit shall not be payable until the 19 issue of compensability under those Acts is finally 20 adjudicated. The period of disability shall be as determined 21 by the Illinois Industrial Commission or acknowledged by the 22 employer. 23 The first payment shall be made not later than one month 24 after the benefit is granted, and subsequent payments shall 25 be made at least monthly. The Board shall by rule prescribe 26 for the payment of such benefits on the basis of the amount 27 of salary lost during the period of disability. 28 (b) The benefit shall be allowed only if the following 29 requirements are met by the employee: 30 (1) Application is made to the Board within 90 days 31 from the date disability begins; 32 (2) A medical report is submitted by at least one 33 licensed and practicing physician as part of the 34 employee's application; and HB1583 Enrolled -71- LRB9101658EGfg 1 (3) The employee is examined by at least one 2 licensed and practicing physician appointed by the Board 3 and found to be in a disabled physical condition, and 4 shall be re-examined at least annually thereafter during 5 the continuance of disability. The employee need not be 6 re-examined by a licensed and practicing physician if the 7 attorney for the district certifies in writing that the 8 employee is entitled to receive compensation under the 9 Workers' Compensation Act or the Workers' Occupational 10 Diseases Act. 11 (c) The benefit shall terminate when: 12 (1) The employee returns to work or receives a 13 retirement annuity paid wholly or in part under this 14 Article; 15 (2) The disability ceases; 16 (3) The employee attains age 65, but if the 17 employee becomes disabled at age 60 or later, benefits 18 may be extended for a period of no more than 5 years 19 after disablement; 20 (4) The employee (i) refuses to submit to 21 reasonable examinations by physicians or other health 22 professionals appointed by the Board, (ii) fails or 23 refuses to consent to and sign an authorization allowing 24 the Board to receive copies of or to examine the 25 employee's medical and hospital records, or (iii) fails 26 or refuses to provide complete information regarding any 27 other employment for compensation he or she has received 28 since becoming disabled; or 29 (5) The employee willfully and continuously refuses 30 to followacceptmedical advice and treatment to enable 31 the employee to return to work. However this provision 32 does not apply to an employee who relies in good faith on 33 treatment by prayer through spiritual means alone in 34 accordance with the tenets and practice of a recognized HB1583 Enrolled -72- LRB9101658EGfg 1 church or religious denomination, by a duly accredited 2 practitioner thereof. 3 In the case of a duty disability recipient who returns to 4 work, the employee must make application to the Retirement 5 Board within 2 years from the date the employee last received 6 duty disability benefits in order to become again entitled to 7 duty disability benefits based on the injury for which a duty 8 disability benefit was theretofore paid. 9 (Source: P.A. 90-12, eff. 6-13-97.) 10 (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310) 11 Sec. 13-310. Ordinary disability benefit. 12 (a) Any employee who becomes disabled as the result of 13 any cause other than injury or illness incurred in the 14 performance of duty for the employer or any other employer, 15 or while engaged in self-employment activities, shall be 16 entitled to an ordinary disability benefit. The eligible 17 period for this benefit shall be 25% of the employee's total 18 actual service prior to the date of disability with a 19 cumulative maximum period of 5 years. 20 (b) The benefit shall be allowed only if the employee 21 files an application in writing with the Board, and a medical 22 report is submitted by at least one licensed and practicing 23 physician as part of the employee's application. 24 The benefit is not payable for any disability which 25 begins during any period of unpaid leave of absence. No 26 benefit shall be allowed for any period of disability prior 27 to 30 days before application is made, unless the Board finds 28 good cause for the delay in filing the application. The 29 benefit shall not be paid during any period for which the 30 employee receives or is entitled to receive any part of 31 salary. 32 The benefit is not payable for any disability which 33 begins during any period of absence from duty other than HB1583 Enrolled -73- LRB9101658EGfg 1 allowable vacation time in any calendar year. An employee 2 whose disability begins during any such ineligible period of 3 absence from service may not receive benefits until the 4 employee recovers from the disability and is in service for 5 at least 15 consecutive working days after such recovery. 6 In the case of an employee who first enters service on or 7 after the effective date of this amendatory Act of 1997, an 8 ordinary disability benefit is not payable for the first 3 9 days of disability that would otherwise be payable under this 10 Section if the disability does not continue for at least 11 11 additional days. 12 (c) The benefit shall be 50% of the employee's salary at 13 the date of disability, and shall terminate when the earliest 14 of the following occurs: 15 (1) The employee returns to work or receives a 16 retirement annuity paid wholly or in part under this 17 Article; 18 (2) The disability ceases; 19 (3) The employee willfully and continuously refuses 20 to follow medical advice and treatment to enable the 21 employee to return to work. However this provision does 22 not apply to an employee who relies in good faith on 23 treatment by prayer through spiritual means alone in 24 accordance with the tenets and practice of a recognized 25 church or religious denomination, by a duly accredited 26 practitioner thereof(Blank); 27 (4) The employee (i) refuses to submit to a 28 reasonable physical examination within 30 days of 29 application by a physician appointed by the Board, (ii) 30orin the case of chronic alcoholism, the employee 31 refuses to join a rehabilitation program licensed by the 32 Department of Public Health of the State of Illinois,and 33 certified by the Joint Commission on the Accreditation of 34 Hospitals, (iii) fails or refuses to consent to and sign HB1583 Enrolled -74- LRB9101658EGfg 1 an authorization allowing the Board to receive copies of 2 or to examine the employee's medical and hospital 3 records, or (iv) fails or refuses to provide complete 4 information regarding any other employment for 5 compensation he or she has received since becoming 6 disabled; or 7 (5) The eligible period for this benefit has been 8 exhausted. 9 The first payment of the benefit shall be made not later 10 than one month after the same has been granted, and 11 subsequent payments shall be made at intervals of not more 12 than 30 days. 13 (Source: P.A. 90-12, eff. 6-13-97.) 14 (40 ILCS 5/13-311) (from Ch. 108 1/2, par. 13-311) 15 Sec. 13-311. Credit for Workers' Compensation payments. 16 If an employee, or an employee's spouse or children, receives 17 compensation under any workers' compensation or occupational 18 diseases law, thesurviving spouse's or child's annuity or19the disabilitybenefit payable under this Article shall be 20 reduced by the amount of the compensation so received if the 21 amount is less than the annuity or benefit. If the 22 compensation exceeds the annuity or benefit, no payment of 23 annuity or benefit shall be made until the period of time has 24 elapsed when the annuity or benefit payable at the rates 25 provided in this Article equals the amount of such 26 compensation. However, the commutation of compensation to a 27 lump sum basis as provided in the workers' compensation or 28 occupational diseases law shall not increase the annuity or 29 benefit provided under this Article; the annuity or benefit 30 to be paid hereunder shall be based on the amount of 31 compensation awarded under such laws prior to commutation of 32 such compensation. No interest shall be considered in these 33 calculations. HB1583 Enrolled -75- LRB9101658EGfg 1 (Source: P.A. 87-794.) 2 (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314) 3 Sec. 13-314. Alternative provisions for Water 4 Reclamation District commissioners. 5 (a) Transfer of credits. Any Water Reclamation District 6 commissioner elected by vote of the people and who has 7 elected to participate in this Fund may transfer to this Fund 8 credits and creditable service accumulated under any other 9 pension fund or retirement system established under Articles 10 2 through 18 of this Code, upon payment to the Fund of (1) 11 the amount by which the employer and employee contributions 12 that would have been required if he had participated in this 13 Fund during the period for which credit is being transferred, 14 plus interest, exceeds the amounts actually transferred from 15 such other fund or system to this Fund, plus (2) interest 16 thereon at 6% per year compounded annually from the date of 17 transfer to the date of payment. 18 (b) Alternative annuity. Any participant commissioner 19 may elect to establish alternative credits for an alternative 20 annuity by electing in writing to make additional optional 21 contributions in accordance with this Section and procedures 22 established by the Board. Such commissioner may discontinue 23 making the additional optional contributions by notifying the 24 fund in writing in accordance with this Section and 25 procedures established by the Board. 26 Additional optional contributions for the alternative 27 annuity shall be as follows: 28 (1) For service after the option is elected, an 29 additional contribution of 3% of salary shall be 30 contributed to the Fund on the same basis and under the 31 same conditions as contributions required under Section 32 13-502. 33 (2) For contributions on past servicebefore theHB1583 Enrolled -76- LRB9101658EGfg 1option is elected, the additional contribution shall be 2 3% of the salary for the applicable period of service, 3 plus interest at the annual rate from time to time as 4 determined by the Board, compounded annually from the 5 date of service to the date of payment. Contributions 6 for service before the option is elected may be made in a 7 lump sum payment to the Fund or by contributing to the 8 Fund on the same basis and under the same conditions as 9 contributions required under Section 13-502. All 10 payments for past service must be paid in full before 11 credit is given. No additional optional contributions 12 may be made for any period of service for which credit 13 has been previously forfeited by acceptance of a refund, 14 unless the refund is repaid in full with interest at the 15 rate specified in Section 13-603, from the date of refund 16 to the date of repayment. 17 In lieu of the retirement annuity otherwise payable under 18 this Article, any commissioner who has elected to participate 19 in the Fund and make additional optional contributions in 20 accordance with this Section, has attained age 55, and has at 21 least 6 years of service credit, may elect to have the 22 retirement annuity computed as follows: 3% of the 23 participant's average final salary as a commissioner for each 24 of the first 8 years of service credit, plus 4% of such 25 salary for each of the next 4 years of service credit, plus 26 5% of such salary for each year of service credit in excess 27 of 12 years, subject to a maximum of 80% of such salary. To 28 the extent such commissioner has made additional optional 29 contributions with respect to only a portion of years of 30 service credit, the retirement annuity will first be 31 determined in accordance with this Section to the extent such 32 additional optional contributions were made, and then in 33 accordance with the remaining Sections of this Article to the 34 extent of years of service credit with respect to which HB1583 Enrolled -77- LRB9101658EGfg 1 additional optional contributions were not made. The change 2 in minimum retirement age (from 60 to 55) made by this 3 amendatory Act of 1993 applies to persons who begin receiving 4 a retirement annuity under this Section on or after the 5 effective date of this amendatory Act, without regard to 6 whether they are in service on or after that date. 7 (c) Disability benefits. In lieu of the disability 8 benefits otherwise payable under this Article, any 9 commissioner who (1) has elected to participate in the Fund, 10 and (2) has become permanently disabled and as a consequence 11 is unable to perform the duties of office, and (3) was making 12 optional contributions in accordance with this Section at the 13 time the disability was incurred, may elect to receive a 14 disability annuity calculated in accordance with the formula 15 in subsection (b). For the purposes of this subsection, such 16 commissioner shall be considered permanently disabled only 17 if: (i) disability occurs while in service as a commissioner 18 and is of such a nature as to prevent the reasonable 19 performance of the duties of office at the time; and (ii) the 20 Board has received a written certification by at least 2 21 licensed physicians appointed by it stating that such 22 commissioner is disabled and that the disability is likely to 23 be permanent. 24 (d) Alternative survivor's benefits. In lieu of the 25 survivor's benefits otherwise payable under this Article, the 26 spouse or eligible child of any deceased commissioner who (1) 27 had elected to participate in the Fund, and (2) was either 28 making additional optional contributions on the date of 29 death, or was receiving an annuity calculated under this 30 Section at the time of death, may elect to receive an annuity 31 beginning on the date of the commissioner's death, provided 32 that the spouse and commissioner must have been married on 33 the date of the last termination of a service as commissioner 34 and for a continuous period of at least one year immediately HB1583 Enrolled -78- LRB9101658EGfg 1 preceding death. 2 The annuity shall be payable beginning on the date of the 3 commissioner's death if the spouse is then age 50 or over, or 4 beginning at age 50 if the age of the spouse is less than 50 5 years. If a minor unmarried child or children of the 6 commissioner, under age 18, also survive, and the child or 7 children are under the care of the eligible spouse, the 8 annuity shall begin as of the date of death of the 9 commissioner without regard to the spouse's age. 10 The annuity to a spouse shall be 66 2/3% of the amount of 11 retirement annuity earned by the commissioner on the date of 12 death, subject to a minimum payment of 10% of salary, 13 provided that if an eligible spouse, regardless of age, has 14 in his or her care at the date of death of the commissioner 15 any unmarried child or children of the commissioner under age 16 18, the minimum annuity shall be 30% of the commissioner's 17 salary, plus 10% of salary on account of each minor child of 18 the commissioner, subject to a combined total payment on 19 account of a spouse and minor children not to exceed 50% of 20 the deceased commissioner's salary. In the event there shall 21 be no spouse of the commissioner surviving, or should a 22 spouse die while eligible minor children still survive the 23 commissioner, each such child shall be entitled to an annuity 24 equal to 20% of salary of the commissioner subject to a 25 combined total payment on account of all such children not to 26 exceed 50% of salary of the commissioner. The salary to be 27 used in the calculation of these benefits shall be the same 28 as that prescribed for determining a retirement annuity as 29 provided in subsection (b) of this Section. 30 Upon the death of a commissioner occurring after 31 termination of a service or while in receipt of a retirement 32 annuity, the combined total payment to a spouse and minor 33 children, or to minor children alone if no eligible spouse 34 survives, shall be limited to 75% of the amount of retirement HB1583 Enrolled -79- LRB9101658EGfg 1 annuity earned by the commissioner. 2 Adopted children shall have status as natural children of 3 the commissioner only if the proceedings for adoption were 4 commenced at least one year prior to the date of the 5 commissioner's death. 6 Marriage of a child or attainment of age 18, whichever 7 first occurs, shall render the child ineligible for further 8 consideration in the payment of annuity to a spouse or in the 9 increase in the amount thereof. Upon attainment of 10 ineligibility of the youngest minor child of the 11 commissioner, the annuity shall immediately revert to the 12 amount payable upon death of a commissioner leaving no minor 13 children surviving. If the spouse is under age 50 at such 14 time, the annuity as revised shall be deferred until such age 15 is attained. 16 (e) Refunds. Refunds of additional optional 17 contributions shall be made on the same basis and under the 18 same conditions as provided under Section 13-601. Interest 19 shall be credited on the same basis and under the same 20 conditions as for other contributions. 21 Optional contributions shall be accounted for in a 22 separate Commission's Optional Contribution Reserve. 23 Optional contributions under this Section shall be included 24 in the amount of employee contributions used to compute the 25 tax levy under Section 13-503. 26 (f) Effective date. The effective date of this plan of 27 optional alternative benefits and contributions shall be the 28 date upon which approval was received from the U.S. Internal 29 Revenue Service. The plan of optional alternative benefits 30 and contributions shall not be available to any former 31 employee receiving an annuity from the Fund on the effective 32 date, unless said former employee re-enters service and 33 renders at least 3 years of additional service after the date 34 of re-entry as a commissioner. HB1583 Enrolled -80- LRB9101658EGfg 1 (Source: P.A. 90-12, eff. 6-13-97.) 2 (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603) 3 Sec. 13-603. Restoration of rights. If an employee who 4 has received a refund subsequently re-enters the service and 5 renders one year of contributing service from the date of 6 such re-entry, the employee shall be entitled to have 7 restored all accumulation and service credits previously 8 forfeited by making a repayment of the refund, including 9 interestof 8% per annumfrom the date of the refund to the 10 date of repayment at a rate equal to the higher of 8% per 11 annum or the actuarial investment return assumption used in 12 the Fund's most recent Annual Actuarial Statement. Repayment 13 may be made either directly to the Fund or in a manner 14 similar to that provided for the contributions required under 15 Section 13-502.The repayment must be made in a lump sum.16 The service credits represented thereby, or any part thereof, 17 shall not become effective unless the full amount due has 18 been paid by the employee, including interest. If the 19 employee fails to make a full repayment, any partial amounts 20 paid by the employee shall be refunded without interest if 21 the employee dies in service or withdraws. 22 (Source: P.A. 87-794.) 23 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118) 24 Sec. 14-118. Widow's annuity - Conditions for payment. 25 A widow who exercises the right of election to receive an 26 annuity pursuant to this Section is entitled to a lump sum 27 payment of $500 plus a widow's annuity, if: 28 (1) she was married to the deceased member: 29 (i) in the case of a member who dies before 30 the effective date of this amendatory Act of the 31 91st General Assembly, for at least one1year prior 32 to his death or retirement, whichever first occurs, HB1583 Enrolled -81- LRB9101658EGfg 1 and also on the day of the last termination of his 2 service as a State employee; or 3 (ii) in the case of a member who dies on or 4 after the effective date of this amendatory Act of 5 the 91st General Assembly, for at least one year 6 immediately prior to the date of death, regardless 7 of the date of withdrawal; 8 (2) the deceased member had at least 8 years of 9 creditable service if death occurred while in service, or 10 while on leave of absence from service, or while in 11 receipt of a nonoccupational disability or occupational 12 disability benefit, or after retirement; 13 (3) she was nominated exclusively to receive the 14 entire death benefit payable under this Article; 15 (4) death of the member occurred after withdrawal, 16 and he had fulfilled the prescribed age and service 17 conditions for establishing a right in a retirement 18 annuity; and 19 (5) she elected to receive the widow's annuity 20 within 6 months from the date of death of the employee, 21 otherwise the survivors annuity if applicable, shall be 22 payable. 23 If a widow's annuity beneficiary becomes entitled to a 24 survivors annuity and a widow's annuity, she shall elect to 25 receive only one of such annuities. 26 The surviving spouse of a person who (1) died on or after 27 January 1, 1985, (2) withdrew from service prior to August 1, 28 1953, (3) was receiving an annuity from the system at the 29 time of death, and (4) meets all other requirements of this 30 Section, shall be entitled to the benefits provided under 31 this Section. 32 A widow's annuity shall be payable beginning on the first 33 of the month following the date of death of the member if the 34 widow has then attained age 50 or, if she is under age 50 on HB1583 Enrolled -82- LRB9101658EGfg 1 such date, on the first of the month following her attainment 2 of such age; provided, that if an unmarried child or children 3 of the member under age 18 (or under age 22 if a full-time 4 student) also survive him, and the child or children are 5 under the care of the eligible widow, the widow's annuity 6 shall begin on the first of the month following the member's 7 death without regard to the age of the widow. If she is 8 under age 50 at the death of the member and she qualifies for 9 a widow's annuity, she is entitled to receive the lump sum 10 payment immediately upon application, but payment of the 11 widow's annuity shall be deferred as provided above. 12 The provision for a widow's annuity shall not be 13 construed to affect the payment of a reversionary annuity. 14 If a widow qualifies for more than one widow's annuity, or 15 for a widow's annuity and a survivors annuity, she shall 16 elect to receive only one of such annuities. 17 This Section shall not apply to the widow of any male 18 person who first became a member after July 19, 1961. 19 (Source: P.A. 90-448, eff. 8-16-97.) 20 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120) 21 Sec. 14-120. Survivors annuities - Conditions for 22 payments. A survivors annuity is established for all members 23 of the System. Upon the death of any male person who was a 24 member on July 19, 1961, however, his widow may have the 25 option of receiving the widow's annuity provided in this 26 Article, in lieu of the survivors annuity. 27 (a) A survivors annuity beneficiary, as herein defined, 28 is eligible for a survivors annuity if the deceased member 29 had completed at least 1 1/2 years of contributing creditable 30 service if death occurred: 31 (1) while in service; 32 (2) while on an approved or authorized leave of 33 absence from service, not exceeding one year HB1583 Enrolled -83- LRB9101658EGfg 1 continuously; or 2 (3) while in receipt of a non-occupational 3 disability or an occupational disability benefit. 4 (b) If death of the member occurs after withdrawal, the 5 survivors annuity beneficiary is eligible for such annuity 6 only if the member had fulfilled at the date of withdrawal 7 the prescribed service conditions for establishing a right in 8 a retirement annuity. 9 (c) Payment of the survivors annuity shall begin 10 immediately if the beneficiary is 50 years or over, or upon 11 attainment of age 50 if the beneficiary is under that age at 12 the date of the member's death. In the case of survivors of a 13 member whose death occurred between November 1, 1970 and July 14 15, 1971, the payment of the survivors annuity shall begin 15 upon October 1, 1977, if the beneficiary is then 50 years of 16 age or older, or upon the attainment of age 50 if the 17 beneficiary is under that age on October 1, 1977. 18 If an eligible child or children, under the care of the 19 spouse also survive the member, the survivors annuity shall 20 begin immediately without regard to whether the beneficiary 21 has attained age 50. 22 Benefits under this Section shall accrue and be payable 23 for whole calendar months, beginning on the first day of the 24 month after the initiating event occurs and ending on the 25 last day of the month in which the terminating event occurs. 26 (d) A survivor annuity beneficiary means: 27 (1) A spouse of a member or annuitant if: 28 (i) in the case of a member or annuitant who 29 dies before the effective date of this amendatory 30 Act of the 91st General Assembly, the current 31 marriage with the member or annuitant was in effect 32 for at least one year at the date ofthe member or33annuitant'sdeath or withdrawal, whichever first 34 occurs; or HB1583 Enrolled -84- LRB9101658EGfg 1 (ii) in the case of a member or annuitant who 2 dies on or after the effective date of this 3 amendatory Act of the 91st General Assembly, the 4 current marriage with the member or annuitant was in 5 effect for at least one year immediately prior to 6 the date of death, regardless of the date of 7 withdrawal. 8 (2) An unmarried child under age 18 (under age 22 9 if a full-time student) of the member or annuitant; an 10 unmarried stepchild under age 18 (under age 22 if a 11 full-time student) who has been such for at least one 12 year at the date of the member's death or at least one 13 year at the date of withdrawal, whichever first occurs; 14 an unmarried adopted child under age 18 (under age 22 if 15 a full-time student) if the adoption proceedings were 16 initiated at least one year prior to the death or 17 withdrawal of the member or annuitant, whichever first 18 occurs; and an unmarried child over age 18 if he or she 19 is dependent by reason of a physical or mental 20 disability, so long as the physical or mental disability 21 continues. For purposes of this subsection, disability 22 means inability to engage in any substantial gainful 23 activity by reason of any medically determinable physical 24 or mental impairment which can be expected to result in 25 death or which has lasted or can be expected to last for 26 a continuous period of not less than 12 months. 27 (3) A dependent parent of the member or annuitant; 28 a dependent step-parent by a marriage contracted before 29 the member or annuitant attained age 18; or a dependent 30 adopting parent by whom the member or annuitant was 31 adopted before he or she attained age 18. 32 (e) Payment of a survivors annuity to a beneficiary 33 terminates upon: (1) remarriage before age 55 that occurs 34 before the effective date of this amendatory Act of the 91st HB1583 Enrolled -85- LRB9101658EGfg 1 General Assembly or death, if the beneficiary is a spouse; 2 (2) marriage or death, if the beneficiary is a child; or (3) 3 remarriage before age 55 or death, if the beneficiary is a 4 parent. Remarriage of a prospective beneficiary prior to the 5 attainment of age 50 disqualifies the beneficiary for the 6 annuity expectancy hereunder, if the remarriage occurs before 7 the effective date of this amendatory Act of the 91st General 8 Assembly. Termination due toamarriage or remarriage shall 9 be permanent, regardless of any future changes in marital 10 status. 11 The substantive changes made to this subsection by this 12 amendatory Act of the 91st General Assembly (pertaining to 13 remarriage prior to age 55 or 50) apply without regard to 14 whether the deceased participant or annuitant was in service 15 on or after the effective date of this amendatory Act. 16 Any person whose survivors annuity was terminated during 17 1978 or 1979 due to remarriage at age 55 or over shall be 18 eligible to apply, not later than July 1, 1990, for a 19 resumption of that annuity, to begin on July 1, 1990. 20 (f) The term "dependent" relating to a survivors annuity 21 means a beneficiary of a survivors annuity who was receiving 22 from the member at the date of the member's death at least 23 1/2 of the support for maintenance including board, lodging, 24 medical care and like living costs. 25 (g) If there is no eligible spouse surviving the member, 26 or if a survivors annuity beneficiary includes a spouse who 27 dies or is disqualified by remarriageremarries, the annuity 28 is payable to an unmarried child or children. If at the date 29 of death of the member there is no spouse or unmarried child, 30 payments shall be made to a dependent parent or parents. If 31 no eligible survivors annuity beneficiary survives the 32 member, the non-occupational death benefit is payable in the 33 manner provided in this Article. 34 (h) Survivor benefits do not affect any reversionary HB1583 Enrolled -86- LRB9101658EGfg 1 annuity. 2 (i) If a survivors annuity beneficiary becomes entitled 3 to a widow's annuity or one or more survivors annuities or 4 both such annuities, the beneficiary shall elect to receive 5 only one of such annuities. 6 (j) Contributing creditable service under the State 7 Universities Retirement System and the Teachers' Retirement 8 System of the State of Illinois shall be considered in 9 determining whether the member has met the contributing 10 service requirements of this Section. 11 (k) In lieu of the Survivor's Annuity described in this 12 Section, the spouse of the member has the option to select 13 the Nonoccupational Death Benefit described in this Article, 14 provided the spouse is the sole survivor and the sole 15 nominated beneficiary of the member. 16 (l) The changes made to this Section and Sections 17 14-118, 14-119, and 14-128 by this amendatory Act of 1997, 18 relating to benefits for certain unmarried children who are 19 full-time students under age 22, apply without regard to 20 whether the deceased member was in service on or after the 21 effective date of this amendatory Act of 1997. These changes 22 do not authorize the repayment of a refund or a re-election 23 of benefits, and any benefit or increase in benefits 24 resulting from these changes is not payable retroactively for 25 any period before the effective date of this amendatory Act 26 of 1997. 27 (Source: P.A. 90-448, eff. 8-16-97; 91-357, eff. 7-29-99.) 28 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128) 29 Sec. 14-128. Occupational death benefit. An 30 occupational death benefit is provided for a member of the 31 System whose death, prior to retirement, is the proximate 32 result of bodily injuries sustained or a hazard undergone 33 while in the performance and within the scope of the member's HB1583 Enrolled -87- LRB9101658EGfg 1 duties. 2 (a) Conditions for payment. 3 Exclusive of the lump sum payment provided for herein, 4 all annuities under this Section shall accrue and be payable 5 for complete calendar months, beginning on the first day of 6 the month next following the month in which the initiating 7 event occurs and ending on the last day of the month in which 8 the terminating event occurs. 9 The following named survivors of the member may be 10 eligible for an annuity under this Section: 11 (i) The member's spouse. 12 (ii) An unmarried child of the member under age 18 13 (under age 22 if a full-time student); an unmarried 14 stepchild under age 18 (under age 22 if a full-time 15 student) who has been such for at least one year at the 16 date of the member's death; an unmarried adopted child 17 under age 18 (under age 22 if a full-time student) if the 18 adoption proceedings were initiated at least one year 19 prior to the death of the member; and an unmarried child 20 over age 18 who is dependent by reason of a physical or 21 mental disability, for so long as such physical or mental 22 disability continues. For the purposes of this Section 23 disability means inability to engage in any substantial 24 gainful activity by reason of any medically determinable 25 physical or mental impairment which can be expected to 26 result in death or which has lasted or can be expected to 27 last for a continuous period of not less than 12 months. 28 (iii) If no spouse or eligible children survive: a 29 dependent parent of the member; a dependent step-parent 30 by a marriage contracted before the member attained age 31 18; or a dependent adopting parent by whom the member was 32 adopted before he or she attained age 18. 33 The term "dependent" relating to an occupational death 34 benefit means a survivor of the member who was receiving from HB1583 Enrolled -88- LRB9101658EGfg 1 the member at the date of the member's death at least 1/2 of 2 the support for maintenance including board, lodging, medical 3 care and like living costs. 4 Payment of the annuity shall continue until the 5 occurrence of the following: 6 (1) remarriage before age 55 that occurs before the 7 effective date of this amendatory Act of the 91st General 8 Assembly or death, in the case of a surviving spouse; 9 (2) attainment of age 18 or termination of 10 disability, death, or marriage, in the case of an 11 eligible child; 12 (3) remarriage before age 55 or death, in the case 13 of a dependent parent. 14 If none of the aforementioned beneficiaries is living at 15 the date of death of the member, no occupational death 16 benefit shall be payable, but the nonoccupational death 17 benefit shall be payable as provided in this Article. 18 The change made to this subsection by this amendatory Act 19 of the 91st General Assembly (pertaining to remarriage prior 20 to age 55) applies without regard to whether the deceased 21 member was in service on or after the effective date of this 22 amendatory Act. 23 (b) Amount of benefit. 24 The member's accumulated contributions plus credited 25 interest shall be payable in a lump sum to such person as the 26 member has nominated by written direction, duly acknowledged 27 and filed with the Board, or if no such nomination to the 28 estate of the member. When an annuitant is re-employed by a 29 Department, the accumulated contributions plus credited 30 interest payable on the member's account shall, if the member 31 has not previously elected a reversionary annuity, consist of 32 the excess, if any, of the member's total accumulated 33 contributions plus credited interest for all creditable 34 service over the total amount of all retirement annuity HB1583 Enrolled -89- LRB9101658EGfg 1 payments received by the member prior to death. 2 In addition to the foregoing payment, an annuity is 3 provided for eligible survivors as follows: 4 (1) If the survivor is a spouse only, the annuity 5 shall be 50% of the member's final average compensation. 6 (2) If the spouse has in his or her care an 7 eligible child or children, the annuity shall be 8 increased by an amount equal to 15% of the final average 9 compensation on account of each such child, subject to a 10 limitation on the combined annuities to a surviving 11 spouse and children of 75% of final average compensation. 12 (3) If there is no surviving spouse, or if the 13 surviving spouse dies or remarries while a child remains 14 eligible, then each such child shall be entitled to an 15 annuity of 15% of the deceased member's final average 16 compensation, subject to a limitation of 50% of final 17 average compensation to all such children. 18 (4) If there is no surviving spouse or eligible 19 children, then an annuity shall be payable to the 20 member's dependent parents, equal to 25% of final average 21 compensation to each such beneficiary. 22 If any annuity payable under this Section is less than 23 the corresponding survivors annuity, the beneficiary or 24 beneficiaries of the annuity under this Section may elect to 25 receive the survivors annuity and the nonoccupational death 26 benefit provided for in this Article in lieu of the annuity 27 provided under this Section. 28 (c) Occupational death claims pending adjudication by 29 the Industrial Commission or a ruling by the agency 30 responsible for determining the liability of the State under 31 the "Workers' Compensation Act" or "Workers' Occupational 32 Diseases Act" shall be payable under Sections 14-120 and 33 14-121the Survivor's Annuity Section of this Articleuntil a 34 ruling or adjudication occurs, if the beneficiary or HB1583 Enrolled -90- LRB9101658EGfg 1 beneficiaries: (1) meet all conditions for payment as 2 prescribed in this Article; and (2) execute an assignment of 3 benefits payable as a result of adjudication by the 4 Industrial Commission or a ruling by the agency responsible 5 for determining the liability of the State under such Acts. 6 The assignment shall be made to the System and shall be for 7 an amount equal to the excess of benefits paid under Sections 8 14-120 and 14-121the Survivor's Annuity Section of this9Articleover benefits payable as a result of adjudication of 10 the workers' compensation claim computed from the date of 11 death of the member. 12 (d) Every occupational death annuity payable under this 13 Section shall be increased on each January 1 occurring on or 14 after (i) January 1, 1990, or (ii) the first anniversary of 15 the commencement of the annuity, whichever occurs later, by 16 an amount equal to 3% of the current amount of the annuity, 17 including any previous increases under this Article, without 18 regard to whether the deceased member was in service on the 19 effective date of this amendatory Act of 1991. 20 (Source: P.A. 90-448, eff. 8-16-97.) 21 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130) 22 Sec. 14-130. Refunds; rules. 23 (a) Upon withdrawal a member is entitled to receive, 24 upon written request, a refund of the member's contributions, 25 including credits granted while in receipt of disability 26 benefits, without credited interest. The board, in its 27 discretion may withhold payment of the refund of a member's 28 contributions for a period not to exceed 1 year after the 29 member has ceased to be an employee. 30 For purposes of this Section, a member will be considered 31 to have withdrawn from service if a change in, or transfer 32 of, his position results in his becoming ineligible for 33 continued membership in this System and eligible for HB1583 Enrolled -91- LRB9101658EGfg 1 membership in another public retirement system under this 2 Act. 3 (b) A member receiving a refund forfeits and 4 relinquishes all accrued rights in the System, including all 5 accumulated creditable service. If the person again becomes 6 a member of the System and establishes at least 2 years of 7 creditable service, the member may repay the moneys 8 previously refunded. However, a former member may restore 9 credits previously forfeited by acceptance of a refund 10 without returning to service by applying in writing and 11 repaying to the System, by April 1, 1993, the amount of the 12 refund plus regular interest calculated from the date of 13 refund to the date of repayment. 14 The repayment of refunds issued prior to January 1, 1984 15 shall consist of the amount refunded plus 5% interest per 16 annum compounded annually for the period from the date of the 17 refund to the end of the month in which repayment is made. 18 The repayment of refunds issued after January 1, 1984 shall 19 consist of the amount refunded plus regular interest for the 20 period from the date of refund to the end of the month in 21 which repayment is made. However, in the case of a refund 22 that is repaid in a lump sum between January 1, 1991 and July 23 1, 1991, repayment shall consist of the amount refunded plus 24 interest at the rate of 2.5% per annum compounded annually 25 from the date of the refund to the end of the month in which 26 repayment is made. 27 Upon repayment, the member shall receive credit for the 28 service, member contributions and regular interest that was 29 forfeited by acceptance of the refund as well as regular 30 interest for the period of non-membership. Such repayment 31 shall be made in full before retirement either in a lump sum 32 or in installment payments in accordance with such rules as 33 may be adopted by the board. 34 (b-5) The Board may adopt rules governing the repayment HB1583 Enrolled -92- LRB9101658EGfg 1 of refunds and establishment of credits in cases involving 2 awards of back pay or reinstatement. The rules may authorize 3 repayment of a refund in installment payments and may waive 4 the payment of interest on refund amounts repaid in full 5 within a specified period. 6 (c) A member no longer in service who is unmarried and 7on the date of retirement or whodoes not have an eligible 8 survivors annuity beneficiary on theat thatdate of 9 application therefor is entitled to a refund of contributions 10 for widow's annuity or survivors annuity purposes, or both, 11 as the case may be, without interest. A widow's annuity or 12 survivors annuity shall not be payable upon the death of a 13 person who has received this refund, unless prior to that 14 death the amount of the refund has been repaid to the System, 15 together with regular interest from the date of the refund to 16 the date of repayment. 17 (d) Any member who has service credit in any position 18 for which an alternative retirement annuity is provided and 19 in relation to which an increase in the rate of employee 20 contribution is required, shall be entitled to a refund, 21 without interest, of that part of the member's employee 22 contribution which results from that increase in the employee 23 rate if the member does not qualify for that alternative 24 retirement annuity at the time of retirement. 25 (Source: P.A. 90-448, eff. 8-16-97.) 26 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107) 27 Sec. 15-107. Employee. 28 (a) "Employee" means any member of the educational, 29 administrative, secretarial, clerical, mechanical, labor or 30 other staff of an employer whose employment is permanent and 31 continuous or who is employed in a position in which services 32 are expected to be rendered on a continuous basis for at 33 least 4 months or one academic term, whichever is less, who HB1583 Enrolled -93- LRB9101658EGfg 1 (A) receives payment for personal services on a warrant 2 issued pursuant to a payroll voucher certified by an employer 3 and drawn by the State Comptroller upon the State Treasurer 4 or by an employer upon trust, federal or other funds, or (B) 5 is on a leave of absence without pay. Employment which is 6 irregular, intermittent or temporary shall not be considered 7 continuous for purposes of this paragraph. 8 However, a person is not an "employee" if he or she: 9 (1) is a student enrolled in and regularly 10 attending classes in a college or university which is an 11 employer, and is employed on a temporary basis at less 12 than full time; 13 (2) is currently receiving a retirement annuity or 14 a disability retirement annuity under Section 15-153.2 15 from this System; 16 (3) is on a military leave of absence; 17 (4) is eligible to participate in the Federal Civil 18 Service Retirement System and is currently making 19 contributions to that system based upon earnings paid by 20 an employer; 21 (5) is on leave of absence without pay for more 22 than 60 days immediately following termination of 23 disability benefits under this Article; 24 (6) is hired after June 30, 1979 as a public 25 service employment program participant under the Federal 26 Comprehensive Employment and Training Act and receives 27 earnings in whole or in part from funds provided under 28 that Act; 29 (7) is employed on or after July 1, 1991 to perform 30 services that are excluded by subdivision (a)(7)(f) or 31 (a)(19) of Section 210 of the federal Social Security Act 32 from the definition of employment given in that Section 33 (42 U.S.C. 410); or 34 (8) participates in an optional program for HB1583 Enrolled -94- LRB9101658EGfg 1 part-time workers under Section 15-158.1. 2 (b) Any employer may, by filing a written notice with 3 the board, exclude from the definition of "employee" all 4 persons employed pursuant to a federally funded contract 5 entered into after July 1, 1982 with a federal military 6 department in a program providing training in military 7 courses to federal military personnel on a military site 8 owned by the United States Government, if this exclusion is 9 not prohibited by the federally funded contract or federal 10 laws or rules governing the administration of the contract. 11 (c) Any person appointed by the Governor under the Civil 12 Administrative Code of the State is an employee, if he or she 13 is a participant in this system on the effective date of the 14 appointment. 15 (d) A participant on lay-off status under civil service 16 rules is considered an employee for not more than 120 days 17 from the date of the lay-off. 18 (e) A participant is considered an employee during (1) 19 the first 60 days of disability leave, (2) the period, not to 20 exceed one year, in which his or her eligibility for 21 disability benefits is being considered by the board or 22 reviewed by the courts, and (3) the period he or she receives 23 disability benefits under the provisions of Section 15-152, 24 workers' compensation or occupational disease benefits, or 25 disability income under an insurance contract financed wholly 26 or partially by the employer. 27 (f) Absences without pay, other than formal leaves of 28 absence, of less than 30 calendar days, are not considered as 29 an interruption of a person's status as an employee. If such 30 absences during any period of 12 months exceed 30 work days, 31 the employee status of the person is considered as 32 interrupted as of the 31st work day. 33 (g) A staff member whose employment contract requires 34 services during an academic term is to be considered an HB1583 Enrolled -95- LRB9101658EGfg 1 employee during the summer and other vacation periods, unless 2 he or she declines an employment contract for the succeeding 3 academic term or his or her employment status is otherwise 4 terminated, and he or she receives no earnings during these 5 periods. 6 (h) An individual who was a participating employee 7 employed in the fire department of the University of 8 Illinois's Champaign-Urbana campus immediately prior to the 9 elimination of that fire department and who immediately after 10 the elimination of that fire department became employed by 11 the fire department of the City of Urbana or the City of 12 Champaign shall continue to be considered as an employee for 13 purposes of this Article for so long as the individual 14 remains employed as a firefighter by the City of Urbana or 15 the City of Champaign. The individual shall cease to be 16 considered an employee under this subsection (h) upon the 17 first termination of the individual's employment as a 18 firefighter by the City of Urbana or the City of Champaign. 19 (i) An individual who is employed on a full-time basis 20 as an officer or employee of a statewide teacher organization 21 that serves System participants or an officer of a national 22 teacher organization that serves System participants may 23 participate in the System and shall be deemed an employee, 24 provided that (1) the individual has previously earned 25 creditable service under this Article, (2) the individual 26 files with the System an irrevocable election to become a 27 participant, and (3) the individual does not receive credit 28 for that employment under any other Article of this Code. An 29 employee under this subsection (i) is responsible for paying 30 to the System both (A) employee contributions based on the 31 actual compensation received for service with the teacher 32 organization and (B) employer contributions equal to the 33 normal costs (as defined in Section 15-155) resulting from 34 that service; all or any part of these contributions may be HB1583 Enrolled -96- LRB9101658EGfg 1 paid on the employee's behalf or picked up for tax purposes 2 (if authorized under federal law) by the teacher 3 organization. 4 A person who is an employee as defined in this subsection 5 (i) may establish service credit for similar employment prior 6 to becoming an employee under this subsection by paying to 7 the System for that employment the contributions specified in 8 this subsection, plus interest at the effective rate from the 9 date of service to the date of payment. However, credit 10 shall not be granted under this subsection for any such prior 11 employment for which the applicant received credit under any 12 other provision of this Code, or during which the applicant 13 was on a leave of absence under Section 15-113.2. 14 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97; 15 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.) 16 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111) 17 Sec. 15-111. Earnings. "Earnings": An amount paid for 18 personal services equal to the sum of the basic compensation 19 plus extra compensation for summer teaching, overtime or 20 other extra service. For periods for which an employee 21 receives service credit under subsection (c) of Section 22 15-113.1 or Section 15-113.2, earnings are equal to the basic 23 compensation on which contributions are paid by the employee 24 during such periods. Compensation for employment which is 25 irregular, intermittent and temporary shall not be considered 26 earnings, unless the participant is also receiving earnings 27 from the employer as an employee under Section 15-107. 28 With respect to transition pay paid by the University of 29 Illinois to a person who was a participating employee 30 employed in the fire department of the University of 31 Illinois's Champaign-Urbana campus immediately prior to the 32 elimination of that fire department: 33 (1) "Earnings" includes transition pay paid to the HB1583 Enrolled -97- LRB9101658EGfg 1 employee on or after the effective date of this 2 amendatory Act of the 91st General Assembly. 3 (2) "Earnings" includes transition pay paid to the 4 employee before the effective date of this amendatory Act 5 of the 91st General Assembly only if (i) employee 6 contributions under Section 15-157 have been withheld 7 from that transition pay or (ii) the employee pays to the 8 System before January 1, 2001 an amount representing 9 employee contributions under Section 15-157 on that 10 transition pay. Employee contributions under item (ii) 11 may be paid in a lump sum, by withholding from additional 12 transition pay accruing before January 1, 2001, or in any 13 other manner approved by the System. Upon payment of the 14 employee contributions on transition pay, the 15 corresponding employer contributions become an obligation 16 of the State. 17 (Source: P.A. 87-8.) 18 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112) 19 Sec. 15-112. Final rate of earnings. "Final rate of 20 earnings": For an employee who is paid on an hourly basis or 21 who receives an annual salary in installments during 12 22 months of each academic year, the average annual earnings 23 during the 48 consecutive calendar month period ending with 24 the last day of final termination of employment or the 4 25 consecutive academic years of service in which the employee's 26 earnings were the highest, whichever is greater. For any 27 other employee, the average annual earnings during the 4 28 consecutive academic years of service in which his or her 29 earnings were the highest. For an employee with less than 48 30 months or 4 consecutive academic years of service, the 31 average earnings during his or her entire period of service. 32 The earnings of an employee with more than 36 months of 33 service prior to the date of becoming a participant are, for HB1583 Enrolled -98- LRB9101658EGfg 1 such period, considered equal to the average earnings during 2 the last 36 months of such service. For an employee on leave 3 of absence with pay, or on leave of absence without pay who 4 makes contributions during such leave, earnings are assumed 5 to be equal to the basic compensation on the date the leave 6 began. For an employee on disability leave, earnings are 7 assumed to be equal to the basic compensation on the date 8 disability occurs or the average earnings during the 24 9 months immediately preceding the month in which disability 10 occurs, whichever is greater. 11 For a participant who retires on or after the effective 12 date of this amendatory Act of 1997 with at least 20 years of 13 service as a firefighter or police officer under this 14 Article, the final rate of earnings shall be the annual rate 15 of earnings received by the participant on his or her last 16 day as a firefighter or police officer under this Article, if 17 that is greater than the final rate of earnings as calculated 18 under the other provisions of this Section. 19 If a participant is an employee for at least 6 months 20 during the academic year in which his or her employment is 21 terminated, the annual final rate of earnings shall be 25% of 22 the sum of (1) the annual basic compensation for that year, 23 and (2) the amount earned during the 36 months immediately 24 preceding that year, if this is greater than the final rate 25 of earnings as calculated under the other provisions of this 26 Section. 27 In the determination of the final rate of earnings for an 28 employee, that part of an employee's earnings for any 29 academic year beginning after June 30, 1997, which exceeds 30 the employee's earnings with that employer for the preceding 31 year by more than 20 percent shall be excluded; in the event 32 that an employee has more than one employer this limitation 33 shall be calculated separately for the earnings with each 34 employer. In making such calculation, only the basic HB1583 Enrolled -99- LRB9101658EGfg 1 compensation of employees shall be considered, without regard 2 to vacation or overtime or to contracts for summer 3 employment. 4 The following are not considered as earnings in 5 determining final rate of earnings: severance or separation 6 pay, retirement pay, payment in lieu of unused sick leave and 7 payments from an employer for the period used in determining 8 final rate of earnings for any purpose other than services 9 rendered, leave of absence or vacation granted during that 10 period, and vacation of up to 56 work days allowed upon 11 termination of employmentunder a vacation policy of an12employer which was in effect on or before January 1, 1977. 13 Intermittent periods of service shall be considered as 14 consecutive in determining final rate of earnings. 15 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.) 16 (40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120) 17 Sec. 15-120. Beneficiary; survivor annuitant under 18 portable benefit package. "Beneficiary": The person or 19 persons designated by the participant or annuitant in the 20 last written designation on file with the board; or if no 21 person so designated survives, or if no designation is on 22 file, the estate of the participant or annuitant. Acceptance 23 by the participant of a refund of accumulated contributions 24 shall result in cancellation of all beneficiary designations 25 previously filed. A spouse whose marriage was dissolved shall 26 be disqualified as beneficiary unless the spouse was 27 designated as beneficiary after the effective date of the 28 dissolution of marriage. 29 After a joint and survivor annuity commences under the 30 portable benefit package, the survivor annuitant of a joint 31 and survivor annuity is not disqualified, and may not be 32 removed, as the survivor annuitant by a dissolution of the 33 survivor's marriage with the participant or annuitant. HB1583 Enrolled -100- LRB9101658EGfg 1 (Source: P.A. 83-1440.) 2 (40 ILCS 5/15-132.2 new) 3 Sec. 15-132.2. Retire and retirement. A participant 4 "retires", and his or her "retirement" begins, when his or 5 her annuity payment period begins. 6 (40 ILCS 5/15-134.5) 7 Sec. 15-134.5. Retirement program elections. 8 (a) All participating employees are participants under 9 the traditional benefit package prior to January 1, 1998. 10 Effective as of the date that an employer elects, as 11 described in Section 15-158.2, to offer to its employees the 12 portable benefit package and the self-managed plan as 13 alternatives to the traditional benefit package, each of that 14 employer's eligible employees (as defined in subsection (b)) 15 shall be given the choice to elect which retirement program 16 he or she wishes to participate in with respect to all 17 periods of covered employment occurring on and after the 18 effective date of the employee's election. The retirement 19 program election made by an eligible employee must be made in 20 writing, in the manner prescribed by the System, and within 21 the time period described in subsection (d) or (d-1). 22 The employee election authorized by this Section is a 23 one-time, irrevocable election. If an employee terminates 24 employment after making the election provided under this 25 subsection (a), then upon his or her subsequent re-employment 26 with an employer the original election shall automatically 27 apply to him or her, provided that the employer is then a 28 participating employer as described in Section 15-158.2. 29 An eligible employee who fails to make this election 30 shall, by default, participate in the traditional benefit 31 package. 32 (b) "Eligible employee" means an employee (as defined in HB1583 Enrolled -101- LRB9101658EGfg 1 Section 15-107) who is either a currently eligible employee 2 or a newly eligible employee. For purposes of this Section, 3 a "currently eligible employee" is an employee who is 4 employed by an employer on the effective date on which the 5 employer offers to its employees the portable benefit package 6 and the self-managed plan as alternatives to the traditional 7 benefit package. A "newly eligible employee" is an employee 8 who first becomes employed by an employer after the effective 9 date on which the employer offers its employees the portable 10 benefit package and the self-managed plan as alternatives to 11 the traditional benefit package. A newly eligible employee 12 participates in the traditional benefit package until he or 13 she makes an election to participate in the portable benefit 14 package or the self-managed plan. If an employee does not 15 elect to participate in the portable benefit package or the 16 self-managed plan, he or she shall continue to participate in 17 the traditional benefit package by default. 18 (c) An eligible employee who at the time he or she is 19 first eligible to make the election described in subsection 20 (a) does not have sufficient age and service to qualify for a 21 retirement annuity under Section 15-135 may elect to 22 participate in the traditional benefit package, the portable 23 benefit package, or the self-managed plan. An eligible 24 employee who has sufficient age and service to qualify for a 25 retirement annuity under Section 15-135 at the time he or she 26 is first eligible to make the election described in 27 subsection (a) may elect to participate in the traditional 28 benefit package or the portable benefit package, but may not 29 elect to participate in the self-managed plan. 30 (d) A currently eligible employee must make this 31 election within one year after the effective date of the 32 employer's adoption of the self-managed plan. 33 A newly eligible employee must make this election within 34 6 months after the date on which the System receives the HB1583 Enrolled -102- LRB9101658EGfg 1 report of status certification from the employer60 days2after becoming an eligible employee. If an employee elects to 3 participate in the self-managed plan, no employer 4 contributions shall be remitted to the self-managed plan when 5 the employee's account balance transfer is made. Employer 6 contributions to the self-managed plan shall commence as of 7 the first pay period that begins after the System receives 8 the employee's election. 9 (d-1) A newly eligible employee who, prior to the 10 effective date of this amendatory Act of the 91st General 11 Assembly, fails to make the election within the period 12 provided under subsection (d) and participates by default in 13 the traditional benefit package may make a late election to 14 participate in the portable benefit package or the 15 self-managed plan instead of the traditional benefit package 16 at any time within 6 months after the effective date of this 17 amendatory Act of the 91st General Assembly.The employer18shall not remit contributions to the System on behalf of a19newly eligible employee until the earlier of the expiration20of the employee's 60-day election period or the date on which21the employee submits a properly completed election to the22employer or to the System.23 (e) If a currentlyaneligible employee elects the 24 portable benefit package, that election shall not become 25 effective until the one-year anniversary of the date on which 26 the election is filed with the System, provided the employee 27 remains continuously employed by the employer throughout the 28 one-year waiting period, and any benefits payable to or on 29 account of the employee before such one-year waiting period 30 has ended shall not be determined under the provisions 31 applicable to the portable benefit package but shall instead 32 be determined in accordance with the traditional benefit 33 package. If a currentlyaneligible employee who has elected 34 the portable benefit package terminates employment covered by HB1583 Enrolled -103- LRB9101658EGfg 1 the System before the one-year waiting period has ended, then 2 no benefits shall be determined under the portable benefit 3 package provisions while he or she is inactive in the System 4 and upon re-employment with an employer covered by the System 5 he or she shall begin a new one-year waiting period before 6 the provisions of the portable benefit package become 7 effective. 8 (f) An eligible employee shall be provided with written 9 information prepared or prescribed by the System which 10 describes the employee's retirement program choices. The 11 eligible employee shall be offered an opportunity to receive 12 counseling from the System prior to making his or her 13 election. This counseling may consist of videotaped 14 materials, group presentations, individual consultation with 15 an employee or authorized representative of the System in 16 person or by telephone or other electronic means, or any 17 combination of these methods. 18 (Source: P.A. 90-766, eff. 8-14-98.) 19 (40 ILCS 5/15-136.4) 20 Sec. 15-136.4. Retirement and Survivor Benefits Under 21 Portable Benefit Package. 22 (a) This Section 15-136.4 describes the form of annuity 23 and survivor benefits available to a participant who has 24 elected the portable benefit package and has completed the 25 one-year waiting period required under subsection (e) of 26 Section 15-134.5. For purposes of this Section, the term 27 "eligible spouse" means the husband or wife of a participant 28 to whom the participant is married on the date the 29 participant's retirement annuity begins, provided however, 30 that if the participant should die prior to the commencement 31 of retirement annuity benefits, then "eligible spouse" means 32 the husband or wife, if any, to whom the participant was 33 married throughout the one-year period preceding the date of HB1583 Enrolled -104- LRB9101658EGfg 1 his or her death. 2 (b) This subsection (b) describes the normal form of 3 annuity payable to a participant subject to this Section 4 15-136.4. If the participant is unmarried on the date his or 5 her annuity payments commence, then the annuity payments 6 shall be made in the form of a single-life annuity as 7 described in Section 15-118. If the participant is married 8 on the date his or her annuity payments commence, then the 9 annuity payments shall be paid in the form of a qualified 10 joint and survivor annuity that is the actuarial equivalent 11 of the single-life annuity. Under the "qualified joint and 12 survivor annuity", a reduced amount shall be paid to the 13 participant for his or her lifetime and his or her eligible 14 spouse, if surviving at the participant's death, shall be 15 entitled to receive thereafter a lifetime survivorship 16 annuity in a monthly amount equal to 50% of the reduced 17 monthly amount that was payable to the participant. The last 18 payment of a qualified joint and survivor annuity shall be 19 made as of the first day of the month in which the death of 20 the survivor occurs. 21 (c) Instead of the normal form of annuity that would be 22 paid under subsection (b), a participant may elect in writing 23 within the 90-day period prior to the date his or her annuity 24 payments commence to waive the normal form of annuity payment 25 and receive an optional form of annuity as described in 26 subsection (h). If the participant is married and elects an 27 optional form of annuity under subsection (h) other than a 28 joint and survivor annuity with the eligible spouse 29 designated as the contingent annuitant, then such election 30 shall require the consent of his or her eligible spouse in 31 the manner described in subsection (d). At any time during 32 the 90-day period preceding the date the participant's 33 annuity commences, the participant may revoke the optional 34 form elected under this subsection (c) and reinstate coverage HB1583 Enrolled -105- LRB9101658EGfg 1 under the qualified joint and survivor annuity without the 2 spouse's consent, but an election to revoke the optional form 3 elected and elect a new optional form or designate a 4 different contingent annuitant shall not be effective without 5 the eligible spouse's consent. 6 (d) The eligible spouse's consent to any election made 7 pursuant to this Section that requires the eligible spouse's 8 consent shall be in writing and shall acknowledge the effect 9 of the consent. In addition, the eligible spouse's signature 10 on the written consent must be witnessed by a notary public. 11 The eligible spouse's consent need not be obtained if the 12 system is satisfied that there is no eligible spouse, that 13 the eligible spouse cannot be located, or because of any 14 other relevant circumstances. An eligible spouse's consent 15 under this Section is valid only with respect to the 16 specified optional form of payment and, if applicable, 17 contingent annuitant designated by the participant. If the 18 optional form of payment or the contingent annuitant is 19 subsequently changed (other than by a revocation of the 20 optional form and reinstatement of the qualified joint and 21 survivor annuity), a new consent by the eligible spouse is 22 required. The eligible spouse's consent to an election made 23 by a participant pursuant to this Section, once made, may not 24 be revoked by the eligible spouse. 25 (e) Within a reasonable period of time preceding the 26 date a participant's annuity commences, a participant shall 27 be supplied with a written explanation of (1) the terms and 28 conditions of the normal form single-life annuity and 29 qualified joint and survivor annuity, (2) the participant's 30 right to elect a single-life annuity or an optional form of 31 payment under subsection (h) subject to his or her eligible 32 spouse's consent, if applicable, and (3) the participant's 33 right to reinstate coverage under the qualified joint and 34 survivor annuity prior to his or her annuity commencement HB1583 Enrolled -106- LRB9101658EGfg 1 date by revoking an election of an optional form of benefit 2 under subsection (h). 3 (f) If a married participant with at least 1.5 years54yearsof service dies prior to commencing retirement annuity 5 payments and prior to taking a refund under Section 15-154, 6 his or her eligible spouse is entitled to receive a 7 pre-retirement survivor annuity, if there is not then in 8 effect a waiver of the pre-retirement survivor annuity. The 9 pre-retirement survivor annuity payable under this subsection 10 shall be a monthly annuity payable for the eligible spouse's 11 life, commencing as of the beginning of the month next 12 following the later of the date of the participant's death or 13 the date the participant would have first met the eligibility 14 requirements for retirement, and continuing through the 15 beginning of the month in which the death of the eligible 16 spouse occurs. The monthly amount payable to the spouse 17 under the pre-retirement survivor annuity shall be equal to 18 the monthly amount that would be payable as a survivor 19 annuity under the qualified joint and survivor annuity 20 described in subsection (b) if: (1) in the case of a 21 participant who dies on or after the date on which the 22 participant has met the eligibility requirements for 23 retirement, the participant had retired with an immediate 24 qualified joint and survivor annuity on the day before the 25 participant's date of death; or (2) in the case of a 26 participant who dies before the earliest date on which the 27 participant would have met the eligibility requirements for 28 retirement age, the participant had separated from service on 29 the date of death, survived to the earliest retirement age 30 based on service prior to his or her death, retired with an 31 immediate qualified joint and survivor annuity at the 32 earliest retirement age, and died on the day after the day on 33 which the participant would have attained the earliest 34 retirement age. HB1583 Enrolled -107- LRB9101658EGfg 1 (g) A married participant who has not retired may elect 2 at any time to waive the pre-retirement survivor annuity 3 described in subsection (f). Any such election shall require 4 the consent of the participant's eligible spouse in the 5 manner described in subsection (e). A waiver of the 6 pre-retirement survivor annuity shall increase the lump sum 7 death benefit payable under subsection (b) of Section 15-141. 8 Prior to electing any waiver of the pre-retirement survivor 9 annuity, the participant shall be provided with a written 10 explanation of (1) the terms and conditions of the 11 pre-retirement survivor annuity and the death benefits 12 payable from the system both with and without the 13 pre-retirement survivor annuity, (2) the participant's right 14 to elect a waiver of the pre-retirement survivor annuity 15 coverage subject to his or her spouse's consent, and (3) the 16 participant's right to reinstate pre-retirement survivor 17 annuity coverage at any time by revoking a prior waiver of 18 such coverage. 19 (h) By filing a timely election with the system, a 20 participant who will be eligible to receive a retirement 21 annuity under this Section may waive the normal form of 22 annuity payment described in subsection (b), subject to 23 obtaining the consent of his or her eligible spouse, if 24 applicable, and elect to receive any one of the following 25 optionalannuityforms: 26 (1) Joint and Survivor Annuity Options: The 27 participant may elect to receive a reduced annuity 28 payable for his or her life and to have a lifetime 29 survivorship annuity in a monthly amount equal to 50%, 30 75%, or 100% (as elected by the participant) of that 31 reduced monthly amount, to be paid after the 32 participant's death to his or her contingent annuitant, 33 if the contingent annuitant is alive at the time of the 34 participant's death. HB1583 Enrolled -108- LRB9101658EGfg 1 (2) Single-Life Annuity Option (optional for 2 married participants). The participant may elect to 3 receive a single-life annuity payable for his or her life 4 only. 5 (3) Lump sum retirement benefit. The participant 6 may elect to receive a lump sum retirement benefit that 7 is equal to the amount of a refund payable under Section 8 15-154(a-2). 9 All optional annuity forms shall be in an amount that is the 10 actuarial equivalent of the single-life annuity. 11 For the purposes of this Section, the term "contingent 12 annuitant" means the beneficiary who is designated by a 13 participant at the time the participant elects a joint and 14 survivor annuity to receive the lifetime survivorship annuity 15 in the event the beneficiary survives the participant at the 16 participant's death. 17 (i) Under no circumstances may an option be elected, 18 changed, or revoked after the date the participant's 19 retirement annuity commences. 20 (j) An election made pursuant to subsection (h) shall 21 become inoperative if the participant or the contingent 22 annuitant dies before the date the participant's annuity 23 payments commence, or if the eligible spouse's consent is 24 required and not given. 25 (k) (Blank).For purposes of applying the provisions of26Section 20-123 of this Code, the portable benefit package27shall be treated as if it were provided by a participating28system that has no survivor's annuity benefit.29 (l) The automatic annual increases described in 30 subsection (d) of Section 15-136 shall apply to retirement 31 benefits under the portable benefit package and the automatic 32 annual increases described in subsection (j) of Section 33 15-145 shall apply to survivor benefits under the portable 34 benefit package. HB1583 Enrolled -109- LRB9101658EGfg 1 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.) 2 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139) 3 Sec. 15-139. Retirement annuities; cancellation; 4 suspended during employment. 5 (a) If an annuitant returns to employment for an 6 employer within 60 days after the beginning of the retirement 7 annuity payment period, the retirement annuity shall be 8 cancelled, and the annuitant shall refund to the System the 9 total amount of the retirement annuity payments which he or 10 she received. If the retirement annuity is cancelled, the 11 participant shall continue to participate in the System. 12 (b) If an annuitant retires prior to age 60 and receives 13 or becomes entitled to receive during any month compensation 14 in excess of the monthly retirement annuity (including any 15 automatic annual increases) for services performed after the 16 date of retirement for any employer under this System,the17State Employees' Retirement System of Illinois, or the18Teachers' Retirement System of the State of Illinois,that 19 portion of the monthly retirement annuity provided by 20 employer contributions shall not be payable. 21 If an annuitant retires at age 60 or over and receives or 22 becomes entitled to receive during any academic year 23 compensation in excess of the difference between his or her 24 highest annual earnings prior to retirement and his or her 25 annual retirement annuity computed under Rule 1, Rule 2, Rule 26 3 or Rule 4 of Section 15-136, or under Section 15-136.4, for 27 services performed after the date of retirement for any 28 employer under this System, that portion of the monthly 29 retirement annuity provided by employer contributions shall 30 be reduced by an amount equal to the compensation that 31 exceeds such difference. 32 However, any remuneration received for serving as a 33 member of the Illinois Educational Labor Relations Board HB1583 Enrolled -110- LRB9101658EGfg 1 shall be excluded from "compensation" for the purposes of 2 this subsection (b), and serving as a member of the Illinois 3 Educational Labor Relations Board shall not be deemed to be a 4 return to employment for the purposes of this Section. This 5 provision applies without regard to whether service was 6 terminated prior to the effective date of this amendatory Act 7 of 1991. 8 (c) If an employer certifies that an annuitant has been 9 reemployed on a permanent and continuous basis or in a 10 position in which the annuitant is expected to serve for at 11 least 9 months, the annuitant shall resume his or her status 12 as a participating employee and shall be entitled to all 13 rights applicable to participating employees upon filing with 14 the board an election to forego all annuity payments during 15 the period of reemployment. Upon subsequent retirement, the 16 retirement annuity shall consist of the annuity which was 17 terminated by the reemployment, plus the additional 18 retirement annuity based upon service granted during the 19 period of reemployment, but the combined retirement annuity 20 shall not exceed the maximum annuity applicable on the date 21 of the last retirement. 22 The total service and earnings credited before and after 23 the initial date of retirement shall be considered in 24 determining eligibility of the employee or the employee's 25 beneficiary to benefits under this Article, and in 26 calculating final rate of earnings. 27 In determining the death benefit payable to a beneficiary 28 of an annuitant who again becomes a participating employee 29 under this Section, accumulated normal and additional 30 contributions shall be considered as the sum of the 31 accumulated normal and additional contributions at the date 32 of initial retirement and the accumulated normal and 33 additional contributions credited after that date, less the 34 sum of the annuity payments received by the annuitant. HB1583 Enrolled -111- LRB9101658EGfg 1 The survivors insurance benefits provided under Section 2 15-145 shall not be applicable to an annuitant who resumes 3 his or her status as a participating employee, unless the 4 annuitant, at the time of initial retirement, has a survivors 5 insurance beneficiary who could qualify for such benefits. 6 If the annuitant's employment is terminated because of 7 circumstances other than death before 9 months from the date 8 of reemployment, the provisions of this Section regarding 9 resumption of status as a participating employee shall not 10 apply. The normal and survivors insurance contributions which 11 are deducted during this period shall be refunded to the 12 annuitant without interest, and subsequent benefits under 13 this Article shall be the same as those which were applicable 14 prior to the date the annuitant resumed employment. 15 The amendments made to this Section by this amendatory 16 Act of the 91st General Assembly apply without regard to 17 whether the annuitant was in service on or after the 18 effective date of this amendatory Act. 19 (Source: P.A. 86-1488.) 20 (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140) 21 Sec. 15-140. Reversionary annuities. A participant in 22 the traditional benefit package entitled to a retirement 23 annuity may, prior to retirement, elect to take a reduced 24 retirement annuity and provide with the actuarial value of 25 the reduction, a reversionary annuity to a dependent 26 beneficiary, subject to the following conditions: (1) the 27 participant's written notice of election to provide such 28 annuity is received by the board at least 30 days before the 29 retirement annuity payment period begins, and (2) the amount 30 of the reversionary annuity is not less than $10 per month, 31 and (3) the reversionary annuity is payable only if the 32 participant dies after retirement. 33 The participant may revoke the election by filing a HB1583 Enrolled -112- LRB9101658EGfg 1 written notice of revocation with the board. The 2 beneficiary's death prior to retirement of the participant 3 shall constitute a revocation of the election. 4 The amount of the reversionary annuity shall be that 5 specified in the participant's notice of election, but not 6 more than the amount which when added to the survivors 7 annuity payable to the dependent beneficiary, would equal the 8 participant's reduced retirement annuity. The participant 9 shall specify in the notice of election whether the full 10 retirement annuity is to be resumed or the reduced retirement 11 annuity is to be continued, in the event the beneficiary 12 predeceases the annuitant. 13 The reversionary annuity payment period shall begin on 14 the day following the annuitant's death. A reversionary 15 annuity shall not be payable if the beneficiary predeceases 16 the annuitant. 17 (Source: P.A. 84-1028.) 18 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141) 19 Sec. 15-141. Death benefits - Death of participant. 20 (a) The beneficiary of a participant under the 21 traditional benefit package is entitled to a death benefit 22 equal to the sum of (1) the employee's accumulated normal and 23 additional contributions on the date of death, (2) the 24 employee's accumulated survivors insurance contributions on 25 the date of death, if a survivors insurance benefit is not 26 payable, (3) an amount equal to the employee's final rate of 27 earnings, but not more than $5,000 if (i) the beneficiary, 28 under rules of the board, was dependent upon the participant, 29 (ii) the participant was a participating employee immediately 30 prior to his or her death, and (iii) a survivors insurance 31 benefit is not payable, and (4) $2,500 if (i) the beneficiary 32 was not dependent upon the participant, (ii) the participant 33 was a participating employee immediately prior to his or her HB1583 Enrolled -113- LRB9101658EGfg 1 death, and (iii) a survivors insurance benefit is not 2 payable. 3 (b) If the participant has elected to participate in the 4 portable benefit package and has completed the one-year 5 waiting period required under subsection (e) of Section 6 15-134.5, the death benefit shall be equal to the employee's 7 accumulated normal and additional contributions on the date 8 of death plus, if the employee died with 1.5 or5 ormore 9 years of service for employment as defined in Section 10 15-113.1, employer contributions in an amount equal to the 11 sum of the accumulated normal and additional contributions; 12 except that if a pre-retirement survivor annuity is payable 13 under Section 15-136.4, the death benefit payable under this 14 paragraph shall be reduced, but to not less than zero, by the 15 actuarial value of the benefit payable to the surviving 16 spouse. If the recipient of a pre-retirement survivor 17 annuity dies before an amount equal to all accumulated normal 18 and additional contributions as of the date of death have 19 been paid out, the remaining difference shall be paid to the 20 member's beneficiary. The primary beneficiary of the 21 participant must be his or her spouse unless the spouse has 22 consented to the designation of another beneficiary in the 23 manner described in subsection (d) of Section 15-136.4. 24 (c) If payments are made under any State or federal 25 workers' compensation or occupational diseases law because of 26 the death of an employee, the portion of the death benefit 27 payable from employer contributions shall be reduced by the 28 total amount of the payments. 29 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.) 30 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142) 31 Sec. 15-142. Death benefits - Death of annuitant. Upon 32 the death of an annuitant receiving a retirement annuity or 33 disability retirement annuity, the annuitant's beneficiary HB1583 Enrolled -114- LRB9101658EGfg 1 shall, if a survivor's insurance benefit is not payable under 2 Section 15-145 and ana pre-retirement survivorannuity is 3 not payable under Section 15-136.4, be entitled to a death 4 benefit equal to the greater of the following: (1) the 5 excess, if any, of the sum of the accumulated normal, 6 survivors insurance, and additional contributions as of the 7 date of retirement or the date the disability retirement 8 annuity began, whichever is earlier, over the sum of all 9 annuity payments made prior to the date of death, or (2) 10 $1,000. 11 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.) 12 (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144) 13 Sec. 15-144. Beneficiary annuities. This Section 14 applies only to the death benefits of persons who became 15 participants before August 22, 1997 (the effective date of 16 Public Act 90-511). 17 If a deceased participant has specified in a written 18 notice on file with the board prior to his or her death, or 19 if the participant has not so specified, but the beneficiary 20 specifies in the application for the death benefit that the 21 benefit be paid as an annuity or as a designated cash payment 22 plus an annuity, it shall be paid in the manner thus 23 specified, unless the annuity is less than $10 per month, in 24 which case the death benefit shall be paid in a single cash 25 sum. If the death benefit is paid as an annuity, the 26 beneficiary may elect to take an amount not in excess of $500 27 in a single cash sum. The annuity payable to a beneficiary 28 shall be the actuarial equivalent of the death benefit, 29 determined as of the participant's date of death, on the 30 basis of the age of the beneficiary at that time. 31 The beneficiary annuity payment period shall begin on the 32 day following the death of the deceased and shall terminate 33 on the date of the beneficiary's death. If the beneficiary HB1583 Enrolled -115- LRB9101658EGfg 1 may receive the death benefit in a single cash sum, but 2 elects to receive an annuity, he or she may, within one year 3 after the death of the participant or annuitant, revoke this 4 election and receive in a single cash sum the excess of the 5 amount of the death benefit upon which the annuity was based 6 over the sum of the annuity payments received. 7 (Source: P.A. 83-1440.) 8 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145) 9 Sec. 15-145. Survivors insurance benefits; conditions 10 and amounts. 11 (a) The survivors insurance benefits provided under this 12 Section shall be payable to the eligible survivors of a 13 participant covered under the traditional benefit package 14 upon the death of (1) a participating employee with at least 15 1 1/2 years of service, (2) a participant who terminated 16 employment with at least 10 years of service, and (3) an 17 annuitant in receipt of a retirement annuity or disability 18 retirement annuity under this Article. 19 Service under the State Employees' Retirement System of 20 Illinois, the Teachers' Retirement System of the State of 21 Illinois and the Public School Teachers' Pension and 22 Retirement Fund of Chicago shall be considered in determining 23 eligibility for survivors benefits under this Section. 24 If by law, a function of a governmental unit, as defined 25 by Section 20-107, is transferred in whole or in part to an 26 employer, and an employee transfers employment from this 27 governmental unit to such employer within 6 months after the 28 transfer of this function, the service credits in the 29 governmental unit's retirement system which have been 30 validated under Section 20-109 shall be considered in 31 determining eligibility for survivors benefits under this 32 Section. 33 (b) A surviving spouse of a deceased participant, or of HB1583 Enrolled -116- LRB9101658EGfg 1 a deceased annuitant who did not take a refund or additional 2 annuity consisting of accumulated survivors insurance 3 contributionswho had a survivors insurance beneficiary at4the time of retirement, shall receive a survivors annuity of 5 30% of the final rate of earnings. Payments shall begin on 6 the day following the participant's or annuitant's death or 7 the date the surviving spouse attains age 50, whichever is 8 later, and continue until the death of the surviving spouse. 9 The annuity shall be payable to the surviving spouse prior to 10 attainment of age 50 if the surviving spouse has in his or 11 her care a deceased participant's or annuitant's dependent 12 unmarried child under age 18 (under age 22 if a full-time 13 student) who is eligible for a survivors annuity. Remarriage 14 of a surviving spouse prior to attainment of age 55 that 15 occurs before the effective date of this amendatory Act of 16 the 91st General Assembly shall disqualify him or her for the 17 receipt of a survivors annuity. 18 (c) Each dependent unmarried child under age 18 (under 19 age 22 if a full-time student) of a deceased participant, or 20 of a deceased annuitant who did not take a refund or 21 additional annuity consisting of accumulated survivors 22 insurance contributionswho had a survivors insurance23beneficiary at the time of his or her retirement, shall 24 receive a survivors annuity equal to the sum of (1) 20% of 25 the final rate of earnings, and (2) 10% of the final rate of 26 earnings divided by the number of children entitled to this 27 benefit. Payments shall begin on the day following the 28 participant's or annuitant's death and continue until the 29 child marries, dies, or attains age 18 (age 22 if a full-time 30 student). If the child is in the care of a surviving spouse 31 who is eligible for survivors insurance benefits, the child's 32 benefit shall be paid to the surviving spouse. 33 Each unmarried child over age 18 of a deceased 34 participant or of a deceased annuitant who had a survivor's HB1583 Enrolled -117- LRB9101658EGfg 1 insurance beneficiary at the time of his or her retirement, 2 and who was dependent upon the participant or annuitant by 3 reason of a physical or mental disability which began prior 4 to the date the child attained age 18 (age 22 if a full-time 5 student), shall receive a survivor's annuity equal to the sum 6 of (1) 20% of the final rate of earnings, and (2) 10% of the 7 final rate of earnings divided by the number of children 8 entitled to survivors benefits. Payments shall begin on the 9 day following the participant's or annuitant's death and 10 continue until the child marries, dies, or is no longer 11 disabled. If the child is in the care of a surviving spouse 12 who is eligible for survivors insurance benefits, the child's 13 benefit may be paid to the surviving spouse. For the 14 purposes of this Section, disability means inability to 15 engage in any substantial gainful activity by reason of any 16 medically determinable physical or mental impairment that can 17 be expected to result in death or that has lasted or can be 18 expected to last for a continuous period of at least one 19 year. 20 (d) Each dependent parent of a deceased participant, or 21 of a deceased annuitant who did not take a refund or 22 additional annuity consisting of accumulated survivors 23 insurance contributionswho had a survivors insurance24beneficiary at the time of his or her retirement, shall 25 receive a survivors annuity equal to the sum of (1) 20% of 26 final rate of earnings, and (2) 10% of final rate of earnings 27 divided by the number of parents who qualify for the benefit. 28 Payments shall begin when the parent reaches age 55 or the 29 day following the participant's or annuitant's death, 30 whichever is later, and continue until the parent dies. 31 Remarriage of a parent prior to attainment of age 55 shall 32 disqualify the parent for the receipt of a survivors annuity. 33 (e) In addition to the survivors annuity provided above, 34 each survivors insurance beneficiary shall, upon death of the HB1583 Enrolled -118- LRB9101658EGfg 1 participant or annuitant, receive a lump sum payment of 2 $1,000 divided by the number of such beneficiaries. 3 (f) The changes made in this Section by Public Act 4 81-712 pertaining to survivors annuities in cases of 5 remarriage prior to age 55 shall apply to each survivors 6 insurance beneficiary who remarries after June 30, 1979, 7 regardless of the date that the participant or annuitant 8 terminated his employment or died. 9 The change made to this Section by this amendatory Act of 10 the 91st General Assembly, pertaining to remarriage prior to 11 age 55, applies without regard to whether the deceased 12 participant or annuitant was in service on or after the 13 effective date of this amendatory Act of the 91st General 14 Assembly. 15 (g) On January 1, 1981, any person who was receiving a 16 survivors annuity on or before January 1, 1971 shall have the 17 survivors annuity then being paid increased by 1% for each 18 full year which has elapsed from the date the annuity began. 19 On January 1, 1982, any survivor whose annuity began after 20 January 1, 1971, but before January 1, 1981, shall have the 21 survivor's annuity then being paid increased by 1% for each 22 year which has elapsed from the date the survivor's annuity 23 began. On January 1, 1987, any survivor who began receiving a 24 survivor's annuity on or before January 1, 1977, shall have 25 the monthly survivor's annuity increased by $1 for each full 26 year which has elapsed since the date the survivor's annuity 27 began. 28 (h) If the sum of the lump sum and total monthly 29 survivor benefits payable under this Section upon the death 30 of a participant amounts to less than the sum of the death 31 benefits payable under items (2) and (3) of Section 15-141, 32 the difference shall be paid in a lump sum to the beneficiary 33 of the participant who is living on the date that this 34 additional amount becomes payable. HB1583 Enrolled -119- LRB9101658EGfg 1 (i) If the sum of the lump sum and total monthly 2 survivor benefits payable under this Section upon the death 3 of an annuitant receiving a retirement annuity or disability 4 retirement annuity amounts to less than the death benefit 5 payable under Section 15-142, the difference shall be paid to 6 the beneficiary of the annuitant who is living on the date 7 that this additional amount becomes payable. 8 (j) Effective on the later of (1) January 1, 1990, or 9 (2) the January 1 on or next after the date on which the 10 survivor annuity begins, if the deceased member died while 11 receiving a retirement annuity, or in all other cases the 12 January 1 nearest the first anniversary of the date the 13 survivor annuity payments begin, every survivors insurance 14 beneficiary shall receive an increase in his or her monthly 15 survivors annuity of 3%. On each January 1 after the initial 16 increase, the monthly survivors annuity shall be increased by 17 3% of the total survivors annuity provided under this 18 Article, including previous increases provided by this 19 subsection. Such increases shall apply to the survivors 20 insurance beneficiaries of each participant and annuitant, 21 whether or not the employment status of the participant or 22 annuitant terminates before the effective date of this 23 amendatory Act of 1990. This subsection (j) also applies to 24 persons receiving a survivor annuity under the portable 25 benefit package. 26 (k) If the Internal Revenue Code of 1986, as amended, 27 requires that the survivors benefits be payable at an age 28 earlier than that specified in this Section the benefits 29 shall begin at the earlier age, in which event, the 30 survivor's beneficiary shall be entitled only to that amount 31 which is equal to the actuarial equivalent of the benefits 32 provided by this Section. 33 (l) The changes made to this Section and Section 15-131 34 by this amendatory Act of 1997, relating to benefits for HB1583 Enrolled -120- LRB9101658EGfg 1 certain unmarried children who are full-time students under 2 age 22, apply without regard to whether the deceased member 3 was in service on or after the effective date of this 4 amendatory Act of 1997. These changes do not authorize the 5 repayment of a refund or a re-election of benefits, and any 6 benefit or increase in benefits resulting from these changes 7 is not payable retroactively for any period before the 8 effective date of this amendatory Act of 1997. 9 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.) 10 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154) 11 Sec. 15-154. Refunds. 12 (a) A participant whose status as an employee is 13 terminated, regardless of cause, or who has been on lay off 14 status for more than 120 days, and who is not on leave of 15 absence, is entitled to a refund of contributions upon 16 application; except that not more than one such refund 17 application may be made during any academic year. 18 Except as set forth in subsections (a-1) and (a-2), the 19 refund shall be the sum of the accumulated normal, additional 20 and survivors insurance contributions, less the amount of 21 interest credited on these contributions each year in excess 22 of 4 1/2% of the amount on which interest was calculated. 23 (a-1) A person who elects, in accordance with the 24 requirements of Section 15-134.5, to participate in the 25 portable benefit package and who becomes a participating 26 employee under that retirement program upon the conclusion of 27 the one-year waiting period applicable to the portable 28 benefit package election shall have his or her refund 29 calculated in accordance with the provisions of subsection 30 (a-2). 31 (a-2) The refund payable to a participant described in 32 subsection (a-1) shall be the sum of the participant's 33 accumulated normal and additional contributions, as defined HB1583 Enrolled -121- LRB9101658EGfg 1 in Sections 15-116 and 15-117. If the participant terminates 2 with 5 or more years of service for employment as defined in 3 Section 15-113.1, he or she shall also be entitled to a 4 distribution of employer contributions in an amount equal to 5 the sum of the accumulated normal and additional 6 contributions, as defined in Sections 15-116 and 15-117. 7 (b) Upon acceptance of a refund, the participant 8 forfeits all accrued rights and credits in the System, and if 9 subsequently reemployed, the participant shall be considered 10 a new employee subject to all the qualifying conditions for 11 participation and eligibility for benefits applicable to new 12 employees. If such person again becomes a participating 13 employee and continues as such for 2 years, or is employed by 14 an employer and participates for at least 2 years in the 15 Federal Civil Service Retirement System, all such rights, 16 credits, and previous status as a participant shall be 17 restored upon repayment of the amount of the refund, together 18 with compound interest thereon from the date the refund was 19 received to the date of repayment at the rate of 6% per annum 20 through August 31, 1982, and at the effective rates after 21 that date. 22 (c) If a participant covered under the traditional 23transitionalbenefit package has made survivors insurance 24 contributions, but has no survivors insurance beneficiary 25 upon retirement, he or she shall be entitled to elect a 26 refund of the accumulated survivors insurance contributions, 27 or to elect an additional annuity the value of which is equal 28 to the accumulated survivors insurance contributions. This 29 election must be made prior to the date the person's 30 retirement annuity is approved by the Board of Trustees. 31 (d) A participant, upon application, is entitled to a 32 refund of his or her accumulated additional contributions 33 attributable to the additional contributions described in the 34 last sentence of subsection (c) of Section 15-157. Upon the HB1583 Enrolled -122- LRB9101658EGfg 1 acceptance of such a refund of accumulated additional 2 contributions, the participant forfeits all rights and 3 credits which may have accrued because of such contributions. 4 (e) A participant who terminates his or her employee 5 status and elects to waive service credit under Section 6 15-154.2, is entitled to a refund of the accumulated normal, 7 additional and survivors insurance contributions, if any, 8 which were credited the participant for this service, or to 9 an additional annuity the value of which is equal to the 10 accumulated normal, additional and survivors insurance 11 contributions, if any; except that not more than one such 12 refund application may be made during any academic year. Upon 13 acceptance of this refund, the participant forfeits all 14 rights and credits accrued because of this service. 15 (f) If a police officer or firefighter receives a 16 retirement annuity under Rule 1 or 3 of Section 15-136, he or 17 she shall be entitled at retirement to a refund of the 18 difference between his or her accumulated normal 19 contributions and the normal contributions which would have 20 accumulated had such person filed a waiver of the retirement 21 formula provided by Rule 4 of Section 15-136. 22 (g) If, at the time of retirement, a participant would 23 be entitled to a retirement annuity under Rule 1, 2, 3 or 4 24 of Section 15-136, or under Section 15-136.4, that exceeds 25 the maximum specified in clause (1) of subsection (c) of 26 Section 15-136, he or she shall be entitled to a refund of 27 the employee contributions, if any, paid under Section 15-157 28 after the date upon which continuance of such contributions 29 would have otherwise caused the retirement annuity to exceed 30 this maximum, plus compound interest at the effective rates. 31 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98; 32 90-766, eff. 8-14-98.) 33 (40 ILCS 5/15-158.2) HB1583 Enrolled -123- LRB9101658EGfg 1 Sec. 15-158.2. Self-managed plan. 2 (a) Purpose. The General Assembly finds that it is 3 important for colleges and universities to be able to attract 4 and retain the most qualified employees and that in order to 5 attract and retain these employees, colleges and universities 6 should have the flexibility to provide a defined contribution 7 plan as an alternative for eligible employees who elect not 8 to participate in a defined benefit retirement program 9 provided under this Article. Accordingly, the State 10 Universities Retirement System is hereby authorized to 11 establish and administer a self-managed plan, which shall 12 offer participating employees the opportunity to accumulate 13 assets for retirement through a combination of employee and 14 employer contributions that may be invested in mutual funds, 15 collective investment funds, or other investment products and 16 used to purchase annuity contracts, either fixed or variable 17 or a combination thereof. The plan must be qualified under 18 the Internal Revenue Code of 1986. 19 (b) Adoption by employers. Each employer subject to 20 this Article may elect to adopt the self-managed plan 21 established under this Section; this election is irrevocable. 22 An employer's election to adopt the self-managed plan makes 23 available to the eligible employees of that employer the 24 elections described in Section 15-134.5. 25 The State Universities Retirement System shall be the 26 plan sponsor for the self-managed plan and shall prepare a 27 plan document and prescribe such rules and procedures as are 28 considered necessary or desirable for the administration of 29 the self-managed plan. Consistent with its fiduciary duty to 30 the participants and beneficiaries of the self-managed plan, 31 the Board of Trustees of the System may delegate aspects of 32 plan administration as it sees fit to companies authorized to 33 do business in this State, to the employers, or to a 34 combination of both. HB1583 Enrolled -124- LRB9101658EGfg 1 (c) Selection of service providers and funding vehicles. 2 The System, in consultation with the employers, shall solicit 3 proposals to provide administrative services and funding 4 vehicles for the self-managed plan from insurance and annuity 5 companies and mutual fund companies, banks, trust companies, 6 or other financial institutions authorized to do business in 7 this State. In reviewing the proposals received and 8 approving and contracting with no fewer than 2 and no more 9 than 7 companies, at least 2 of which must be insurance and 10 annuity companies, the Board of Trustees of the System shall 11 consider, among other things, the following criteria: 12 (1) the nature and extent of the benefits that 13 would be provided to the participants; 14 (2) the reasonableness of the benefits in relation 15 to the premium charged; 16 (3) the suitability of the benefits to the needs 17 and interests of the participating employees and the 18 employer; 19 (4) the ability of the company to provide benefits 20 under the contract and the financial stability of the 21 company; and 22 (5) the efficacy of the contract in the recruitment 23 and retention of employees. 24 The System, in consultation with the employers, shall 25 periodically review each approved company. A company may 26 continue to provide administrative services and funding 27 vehicles for the self-managed plan only so long as it 28 continues to be an approved company under contract with the 29 Board. 30 (d) Employee Direction. Employees who are participating 31 in the program must be allowed to direct the transfer of 32 their account balances among the various investment options 33 offered, subject to applicable contractual provisions. The 34 participant shall not be deemed a fiduciary by reason of HB1583 Enrolled -125- LRB9101658EGfg 1 providing such investment direction. A person who is a 2 fiduciary shall not be liable for any loss resulting from 3 such investment direction and shall not be deemed to have 4 breached any fiduciary duty by acting in accordance with that 5 direction. Neither the System nor the employer guarantees 6 any of the investments in the employee's account balances. 7 (e) Participation. An employee eligible to participate 8 in the self-managed plan must make a written election in 9 accordance with the provisions of Section 15-134.5 and the 10 procedures established by the System. Participation in the 11 self-managed plan by an electing employee shall begin on the 12 first day of the first pay period following the later of the 13 date the employee's election is filed with the System or the 14 effective date as of which the employee's employer begins to 15 offer participation in the self-managed plan. Employers may 16 not make the self-managed plan available earlier than January 17 1, 1998. An employee's participation in any other retirement 18 program administered by the System under this Article shall 19 terminate on the date that participation in the self-managed 20 plan begins. 21 An employee who has elected to participate in the 22 self-managed plan under this Section must continue 23 participation while employed in an eligible position, and may 24 not participate in any other retirement program administered 25 by the System under this Article while employed by that 26 employer or any other employer that has adopted the 27 self-managed plan, unless the self-managed plan is terminated 28 in accordance with subsection (i). 29 Participation in the self-managed plan under this Section 30 shall constitute membership in the State Universities 31 Retirement System. 32 A participant under this Section shall be entitled to the 33 benefits of Article 20 of this Code.modified to reflect the34following principles:HB1583 Enrolled -126- LRB9101658EGfg 1(1) The amount of any retirement annuities payable2under this Section depend solely on the value of the3participant's vested account balances and are not subject4to a maximum annuity benefit limitation or any adjustment5pursuant to the proportional retirement annuity6provisions of Article 20. If a participant in the7self-managed plan under this Section elects to apply the8provisions of Article 20, the dollar amount of the9proportional retirement annuity payable from the System10shall be deemed to be zero and the provisions of the11second paragraph of Section 20-131 shall not apply with12respect to the retirement annuity benefits payable to the13participant under this Section.14(2) For purposes of Section 20-123 of this Code,15the self-managed plan shall be treated as if it were16provided by a participating system that has no survivor's17annuity benefit.18(3) Notwithstanding Section 20-125 of this Code,19upon reemployment by a participating system of a retired20participant in the self-managed plan, the retirement21annuity payment made to such participant from any annuity22contracts acquired from the participant's self-managed23plan account balances shall not be suspended.24 (f) Establishment of Initial Account Balance. If at the 25 time an employee elects to participate in the self-managed 26 plan he or she has rights and credits in the System due to 27 previous participation in the traditional benefit package, 28 the System shall establish for the employee an opening 29 account balance in the self-managed plan, equal to the amount 30 of contribution refund that the employee would be eligible to 31 receive under Section 15-154 if the employee terminated 32 employment on that date and elected a refund of 33 contributions, except that this hypothetical refund shall 34 include interest at the effective rate for the respective HB1583 Enrolled -127- LRB9101658EGfg 1 years. The System shall transfer assets from the defined 2 benefit retirement program to the self-managed plan, as a tax 3 free transfer in accordance with Internal Revenue Service 4 guidelines, for purposes of funding the employee's opening 5 account balance. 6 (g) No Duplication of Service Credit. Notwithstanding 7 any other provision of this Article, an employee may not 8 purchase or receive service or service credit applicable to 9 any other retirement program administered by the System under 10 this Article for any period during which the employee was a 11 participant in the self-managed plan established under this 12 Section. 13 (h) Contributions. The self-managed plan shall be 14 funded by contributions from employees participating in the 15 self-managed plan and employer contributions as provided in 16 this Section. 17 The contribution rate for employees participating in the 18 self-managed plan under this Section shall be equal to the 19 employee contribution rate for other participants in the 20 System, as provided in Section 15-157. This required 21 contribution shall be made as an "employer pick-up" under 22 Section 414(h) of the Internal Revenue Code of 1986 or any 23 successor Section thereof. Any employee participating in the 24 System's traditional benefit package prior to his or her 25 election to participate in the self-managed plan shall 26 continue to have the employer pick up the contributions 27 required under Section 15-157. However, the amounts picked 28 up after the election of the self-managed plan shall be 29 remitted to and treated as assets of the self-managed plan. 30 In no event shall an employee have an option of receiving 31 these amounts in cash. Employees may make additional 32 contributions to the self-managed plan in accordance with 33 procedures prescribed by the System, to the extent permitted 34 under rules prescribed by the System. HB1583 Enrolled -128- LRB9101658EGfg 1 The program shall provide for employer contributions to 2 be credited to each self-managed plan participant at a rate 3 of 7.6% of the participating employee's salary, less the 4 amount used by the System to provide disability benefits for 5 the employee. The amounts so credited shall be paid into the 6 participant's self-managed plan accounts in a manner to be 7 prescribed by the System. 8 An amount of employer contribution, not exceeding 1% of 9 the participating employee's salary, shall be used for the 10 purpose of providing the disability benefits of the System to 11 the employee. Prior to the beginning of each plan year under 12 the self-managed plan, the Board of Trustees shall determine, 13 as a percentage of salary, the amount of employer 14 contributions to be allocated during that plan year for 15 providing disability benefits for employees in the 16 self-managed plan. 17 The State of Illinois shall make contributions by 18 appropriations to the System of the employer contributions 19 required for employees who participate in the self-managed 20 plan under this Section. The amount required shall be 21 certified by the Board of Trustees of the System and paid by 22 the State in accordance with Section 15-165. The System 23 shall not be obligated to remit the required employer 24 contributions to any of the insurance and annuity companies, 25 mutual fund companies, banks, trust companies, financial 26 institutions, or other sponsors of any of the funding 27 vehicles offered under the self-managed plan until it has 28 received the required employer contributions from the State. 29 In the event of a deficiency in the amount of State 30 contributions, the System shall implement those procedures 31 described in subsection (c) of Section 15-165 to obtain the 32 required funding from the General Revenue Fund. 33 (i) Termination. The self-managed plan authorized under 34 this Section may be terminated by the System, subject to the HB1583 Enrolled -129- LRB9101658EGfg 1 terms of any relevant contracts, and the System shall have no 2 obligation to reestablish the self-managed plan under this 3 Section. This Section does not create a right to continued 4 participation in any self-managed plan set up by the System 5 under this Section. If the self-managed plan is terminated, 6 the participants shall have the right to participate in one 7 of the other retirement programs offered by the System and 8 receive service credit in such other retirement program for 9 any years of employment following the termination. 10 (j) Vesting; Withdrawal; Return to Service. A 11 participant in the self-managed plan becomes vested in the 12 employer contributions credited to his or her accounts in the 13 self-managed plan on the earliest to occur of the following: 14 (1) completion of 5 years of service with an employer 15 described in Section 15-106; (2) the death of the 16 participating employee while employed by an employer 17 described in Section 15-106, if the participant has completed 18 at least 1 1/2 years of service; or (3) the participant's 19 election to retire and apply the reciprocal provisions of 20 Article 20 of this Code. 21 A participant in the self-managed plan who receives a 22 distribution of his or her vested amounts from the 23 self-managed plan while not yet eligible for retirement under 24 this Article (and Article 20, if applicable)upon or after25termination of employmentshall forfeit all service credit 26 and accrued rights in the System; if subsequently 27 re-employed, the participant shall be considered a new 28 employee. If a former participant again becomes a 29 participating employee (or becomes employed by a 30 participating system under Article 20 of this Code) and 31 continues as such for at least 2 years, all such rights, 32 service credits, and previous status as a participant shall 33 be restored upon repayment of the amount of the distribution, 34 without interest. HB1583 Enrolled -130- LRB9101658EGfg 1 (k) Benefit amounts. If an employee who is vested in 2 employer contributions terminates employment, the employee 3 shall be entitled to a benefit which is based on the account 4 values attributable to both employer and employee 5 contributions and any investment return thereon. 6 If an employee who is not vested in employer 7 contributions terminates employment, the employee shall be 8 entitled to a benefit based solely on the account values 9 attributable to the employee's contributions and any 10 investment return thereon, and the employer contributions and 11 any investment return thereon shall be forfeited. Any 12 employer contributions which are forfeited shall be held in 13 escrow by the company investing those contributions and shall 14 be used as directed by the System for future allocations of 15 employer contributions or for the restoration of amounts 16 previously forfeited by former participants who again become 17 participating employees. 18 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97; 19 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.) 20 (40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181) 21 Sec. 15-181. Duties of employers. 22 (a) Each employer, in preparing payroll vouchers for 23 participating employees, shall indicate, in addition to other 24 information: (1) the amount of employee contributions and 25 survivors insurance contributions required under Section 26 15-157, (2) the gross earnings payable to each employee, and 27 (3) the total of all contributions required under Section 28 15-157.An additional certified copy of each payroll29certified by each employer shall be forwarded along with the30original payroll to the Director of Central Management31Services, State Comptroller, and other officer receiving the32original certified payroll for transmittal to the board.33 (b) Each employer, in drawing warrants or checks against HB1583 Enrolled -131- LRB9101658EGfg 1 trust or federal funds for items of salary on payroll 2 vouchers certified by employers, shall draw such warrants or 3 checks to participating employees for the amount of cash 4 salary or wages specified for the period, and shall draw a 5 warrant or check to this system for the total of the 6 contributions required under Section 15-157. The warrant or 7 check drawn to this system, together with the additional copy 8 of the payroll supplied by the employer, shall be transmitted 9 immediately to the board. 10 (c) The City of Champaign and the City of Urbana, as 11 employers of persons who participate in this System pursuant 12 to subsection (h) of Section 15-107, shall each collect and 13 transmit to the System from each payroll the employee 14 contributions required under Section 15-157, together with 15 such payroll documentation as the Board may require, at the 16 time that the payroll is paid. 17 (Source: P.A. 90-576, eff. 3-31-98.). 18 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133) 19 Sec. 16-133. Retirement annuity; amount. 20 (a) The amount of the retirement annuity shall be the 21 larger of the amounts determined under paragraphs (A) and (B) 22 below: 23 (A) An amount consisting of the sum of the 24 following: 25 (1) An amount that can be provided on an 26 actuarially equivalent basis by the member's 27 accumulated contributions at the time of retirement; 28 and 29 (2) The sum of (i) the amount that can be 30 provided on an actuarially equivalent basis by the 31 member's accumulated contributions representing 32 service prior to July 1, 1947, and (ii) the amount 33 that can be provided on an actuarially equivalent HB1583 Enrolled -132- LRB9101658EGfg 1 basis by the amount obtained by multiplying 1.4 2 times the member's accumulated contributions 3 covering service subsequent to June 30, 1947; and 4 (3) If there is prior service, 2 times the 5 amount that would have been determined under 6 subparagraph (2) of paragraph (A) above on account 7 of contributions which would have been made during 8 the period of prior service creditable to the member 9 had the System been in operation and had the member 10 made contributions at the contribution rate in 11 effect prior to July 1, 1947. 12 (B) An amount consisting of the greater of the 13 following: 14 (1) For creditable service earned before July 15 1, 1998 that has not been augmented under Section 16 16-129.1: 1.67% of final average salary for each of 17 the first 10 years of creditable service, 1.90% of 18 final average salary for each year in excess of 10 19 but not exceeding 20, 2.10% of final average salary 20 for each year in excess of 20 but not exceeding 30, 21 and 2.30% of final average salary for each year in 22 excess of 30; and 23 For creditable service earned on or after July 24 1, 1998 by a member who has at least 24 years of 25 creditable service on July 1, 1998 and who does not 26 elect to augment service under Section 16-129.1: 27 2.2% of final average salary for each year of 28 creditable service earned on or after July 1, 1998 29 but before the member reaches a total of 30 years of 30 creditable service and 2.3% of final average salary 31 for each year of creditable service earned on or 32 after July 1, 1998 and after the member reaches a 33 total of 30 years of creditable service; and 34 For all other creditable service: 2.2% of HB1583 Enrolled -133- LRB9101658EGfg 1 final average salary for each year of creditable 2 service; or 3 (2) 1.5% of final average salary for each year 4 of creditable service plus the sum $7.50 for each of 5 the first 20 years of creditable service. 6 The amount of the retirement annuity determined under 7 this paragraph (B) shall be reduced by 1/2 of 1% for each 8 month that the member is less than age 60 at the time the 9 retirement annuity begins. However, this reduction shall 10 not apply (i) if the member has at least 35 years of 11 creditable service, or (ii) if the member retires on 12 account of disability under Section 16-149.2 of this 13 Article with at least 20 years of creditable service. 14 (b) For purposes of this Section, final average salary 15 shall be the average salary for the highest 4 consecutive 16 years within the last 10 years of creditable service as 17 determined under rules of the board. The minimum final 18 average salary shall be considered to be $2,400 per year. 19 In the determination of final average salary for members 20 other than elected officials and their appointees when such 21 appointees are allowed by statute, that part of a member's 22 salary for any year beginning after June 30, 1979 which 23 exceeds the member's annual full-time salary rate with the 24 same employer for the preceding year by more than 20% shall 25 be excluded. The exclusion shall not apply in any year in 26 which the member's creditable earnings are less than 50% of 27 the preceding year's mean salary for downstate teachers as 28 determined by the survey of school district salaries provided 29 in Section 2-3.103 of the School Code. 30 (c) In determining the amount of the retirement annuity 31 under paragraph (B) of this Section, a fractional year shall 32 be granted proportional credit. 33 (d) The retirement annuity determined under paragraph 34 (B) of this Section shall be available only to members who HB1583 Enrolled -134- LRB9101658EGfg 1 render teaching service after July 1, 1947 for which member 2 contributions are required, and to annuitants who re-enter 3 under the provisions of Section 16-150. 4 (e) The maximum retirement annuity provided under 5 paragraph (B) of this Section shall be 75% of final average 6 salary. 7 (f) A member retiring after the effective date of this 8 amendatory Act of 1998 shall receive a pension equal to 75% 9 of final average salary if the member is qualified to receive 10 a retirement annuity equal to at least 74.6% of final average 11 salary under this Article or as proportional annuities under 12 Article 20 of this Code. 13 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.) 14 (40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135) 15 Sec. 16-135. Supplementary retirement annuity. 16 (a) An annuitant who is receiving a retirement annuity 17 on June 30, 1961 of less than $50 for each year of creditable 18 service forming the basis of the retirement annuity shall 19 have his or her retirement annuity increased to $50 per year 20 for each year of such creditable service, but not exceeding a 21 total annual retirement annuity of $2,250. 22 (b) In order to be entitled to the increase in 23 retirement annuity provided under this Section, an annuitant 24 is required to make an additional contribution of $5 for each 25 year of creditable service, not to exceed 45 years together 26 with interest at the rate of 3% per annum from August 25, 27 1961. 28 (c) The supplementary retirement annuity provided under 29 this Section shall begin to accrue on the first of the month 30 following receipt of the required contribution from the 31 annuitantand shall continue to be paid only to the extent32that funds are available in the Supplementary Annuity Reserve33established under Section 16-184. HB1583 Enrolled -135- LRB9101658EGfg 1 (Source: P.A. 83-1440.) 2 (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4) 3 Sec. 16-136.4. Single-sum retirement benefit. 4 (a) A member who has less than 5 years of creditable 5 service shall be entitled, upon written application to the 6 board, to receive a retirement benefit payable in a single 7 sum upon or after the member's attainment of age 65. 8 However, the benefit shall not be paid while the member is 9 employed as a teacher in the schools included under this 10 Article or Article 17, unless the System is required by 11 federal law to make payment due to the member's age. 12 (b) The retirement benefit shall consist of a single sum 13 that is the actuarial equivalent of a life annuity consisting 14 of 1.67% of the member's final average salary for each year 15 of creditable service. In determining the amount of the 16 benefit, a fractional year shall be granted proportional 17 credit. 18 For the purposes of this Section, final average salary 19 shall be the average salary of the member's highest 4 20 consecutive years of service as determined under rules of the 21 board. For a member with less than 4 consecutive years of 22 service, final average salary shall be the average salary 23 during the member's entire period of service. In the 24 determination of final average salary for members other than 25 elected officials and their appointees when such appointees 26 are allowed by statute, that part of a member's salary which 27 exceeds the member's annual full-time salary rate with the 28 same employer for the preceding year by more than 20% shall 29 be excluded. The exclusion shall not apply in any year in 30 which the member's creditable earnings are less than 50% of 31 the preceding year's mean salary for downstate teachers as 32 determined by the survey of school district salaries provided 33 in Section 2-3.103 of the School Code. HB1583 Enrolled -136- LRB9101658EGfg 1 (c) The retirement benefit determined under this Section 2 shall be available to all members who render teaching service 3 after July 1, 1947 for which member contributions are 4 required. 5 (d) Upon acceptance of the retirement benefit, all of 6 the member's accrued rights and credits in the System are 7 forfeited. Receipt of a single-sum retirement benefit under 8 this Section does not make a person an "annuitant" for the 9 purposes of this Article, nor a "benefit recipient" for the 10 purposes of Sections 16-153.1 through 16-153.4. 11 (Source: P.A. 87-11.) 12 (40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138) 13 Sec. 16-138. Refund of contributions upon death of 14 member or annuitant. Upon the death of a member or 15 annuitant, the following amount shall be payable (i) to a 16 beneficiary,nominated by written designation of the member 17 or annuitant filed with the system, or (ii) if no beneficiary 18 is nominated, to the surviving spouse, or (iii) if no 19 beneficiary is nominated and there is no surviving spouse, to 20 the decedent's estate, upon receipt of proper proof of death: 21 (1) Upon the death of a member, an amount consisting of 22 the sum of the following: (A) the member's accumulated 23 contributions; (B) the sum of the contributions made by the 24 member toward the cost of the automatic increase in annuity 25 under Section 16-152, without interest thereon; and (C) 26 contributions made by the member toward prior service, 27 without interest thereon. 28 (2) Upon the death of an annuitant, unless a 29 reversionary annuity is payable under Section 16-136, an 30 amount determined by subtracting the total amount of monthly 31 annuity payments received as a result of the deceased 32 annuitant's retirement from the sum of: (A) the accumulated 33 contributions at retirement; (B) the sum of the contributions HB1583 Enrolled -137- LRB9101658EGfg 1 made by the deceased toward the cost of the automatic 2 increase in annuity under Section 16-151, without interest 3 thereon; and (C) any contributions made by the deceased for 4 prior service or other purposes, exclusive of contributions 5 toward the cost of the automatic increase in annuity, without 6 interest thereon. 7 (Source: P.A. 83-1440.) 8 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140) 9 Sec. 16-140. Survivors' benefits - definitions. 10 (a) For the purpose of Sections 16-138 through 16-143.2, 11 the following terms shall have the following meanings, unless 12 the context otherwise requires: 13 (1) "Average salary": the average salary for the 14 highest 4 consecutive years within the last 10 years of 15 creditable service immediately preceding date of death or 16 retirement, whichever is applicable, or the average 17 salary for the total creditable service if service is 18 less than 4 years. 19 (2) "Member": any teacher included in the 20 membership of the system. However, a teacher who becomes 21 an annuitant of the system or a teacher whose services 22 terminate after 20 years of service from any cause other 23 than retirement is considered a member, subject to the 24 conditions and limitations stated in this Article. 25 (3) "Dependent beneficiary": (A) a surviving spouse 26 of a member or annuitant who was married to the member or 27 annuitant for the 12 month period immediately preceding 28 and on the date of death of such member or annuitant, 29 except where a child is born of such marriage, in which 30 case the qualifying period shall not be applicable; (A-1) 31 a surviving spouse of a member or annuitant who (i) was 32 married to the member or annuitant on the date of the 33 member or annuitant's death, (ii) was married to the HB1583 Enrolled -138- LRB9101658EGfg 1 member or annuitant for a period of at least 12 months 2 (but not necessarily the 12 months immediately preceding 3 the member or annuitant's death), and (iii)first applied4for a survivor's benefit before April 1, 1997, and (iv)5 has not received a benefit under subsection (a) of 6 Section 16-141 or paragraph (1) of Section 16-142; (B) an 7 eligible child of a member or annuitant; and (C) a 8 dependent parent. 9 Unless otherwise designated by the member, 10 eligibility for benefits shall be in the order named, 11 except that a dependent parent shall be eligible only if 12 there is no other dependent beneficiary. Any benefit to 13 be received by or paid to a dependent beneficiary to be 14 determined under this paragraph as provided in Sections 15 16-141 and 16-142 may be received by or paid to a trust 16 established for such dependent beneficiary if such 17 dependent beneficiary is living at the time such benefit 18 would be received by or paid to such trust. 19 (4) "Eligible child": an unmarried natural or 20 adopted child of the member or annuitant under age 18 21 (age 22 if a full-time student). An unmarried natural or 22 adopted child, regardless of age, who is dependent by 23 reason of a physical or mental disability, except any 24 such child receiving benefits under Article III of the 25 Illinois Public Aid Code, is eligible for so long as such 26 physical or mental disability continues. An adopted 27 child, however, is eligible only if the proceedings for 28 adoption were finalized while the child was a minor. 29 For purposes of this subsection, "disability" means 30 an inability to engage in any substantial gainful 31 activity by reason of any medically determinable physical 32 or mental impairment which can be expected to result in 33 death or which has lasted or can be expected to last for 34 a continuous period of not less than 12 months. HB1583 Enrolled -139- LRB9101658EGfg 1 The changes made to this Section by Public Act 2 90-448, relating to benefits for certain unmarried 3 children who are full-time students under age 22, apply 4 without regard to whether the deceased member was in 5 service on or after the effective date of that Act. 6 These changes do not authorize the repayment of a refund 7 or a re-election of benefits, and any benefit or increase 8 in benefits resulting from these changes is not payable 9 retroactively for any period before the effective date of 10 that Act. 11 (5) "Dependent parent": a parent who was receiving 12 at least 1/2 of his or her support from a member or 13 annuitant for the 12-month period immediately preceding 14 and on the date of such member's or annuitant's death, 15 provided however, that such dependent status terminates 16 upon a member's acceptance of a refund for survivor 17 benefit contributions as provided under Section 16-142. 18 (6) "Non-dependent beneficiary": any person, 19 organization or other entity designated by the member who 20 does not qualify as a dependent beneficiary. 21 (7) "In service": the condition of a member being 22 in receipt of salary as a teacher at any time within 12 23 months immediately before his or her death, being on 24 leave of absence for which the member, upon return to 25 teaching, would be eligible to purchase service credit 26 under subsection (b)(5) of Section 16-127, or being in 27 receipt of a disability or occupational disability 28 benefit. This term does not include any annuitant or 29 member who previously accepted a refund of survivor 30 benefit contributions under paragraph (1) of Section 31 16-142 unless the conditions specified in subsection (b) 32 of Section 16-143.2 are met. 33 (b) The change to this Section made by Public Act 90-511 34 applies without regard to whether the deceased member or HB1583 Enrolled -140- LRB9101658EGfg 1 annuitant was in service on or after the effective date of 2 that Act. 3 The change to this Section made by this amendatory Act of 4 the 91st General Assembly applies without regard to whether 5 the deceased member or annuitant was in service on or after 6 the effective date of this amendatory Act. 7 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97; 8 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.) 9 (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143) 10 Sec. 16-143. Survivors' benefits - other conditions and 11 limitations. The benefits provided under Sections 16-141 and 12 16-142, shall be subject to the following further conditions 13 and limitations: 14 (1) The period during which a member was in receipt of a 15 disability or occupational disability benefit shall be 16 considered as creditable service at the annual salary rate on 17 which the member last made contributions. 18 (2) All service prior to July 24, 1959, for which 19 creditable service is granted towards a retirement annuity 20 shall be considered as creditable service. 21 (3) No benefits shall be payable unless a member, or a 22 disabled member, returning to service, has made contributions 23 to the system for at least one month after July 24, 1959, 24 except that an annuitant must have contributed to the system 25 for at least 1 year of creditable service after July 24, 26 1959. 27 (4) Creditable service under the State Employees' 28 Retirement System of Illinois, the State Universities 29 Retirement System and the Public School Teachers' Pension and 30 Retirement Fund of Chicago shall be considered in determining 31 whether the member has met the creditable service 32 requirement. 33 (5) If an eligible beneficiary qualifies for a HB1583 Enrolled -141- LRB9101658EGfg 1 survivors' benefit because of pension credits established by 2 the participant or annuitant in another system covered by 3 Article 20, and the combined survivors' benefits exceed the 4 highest survivors' benefit payable by either system based 5 upon the combined pension credits, the survivors' benefit 6 payable by this system shall be reduced to that amount which 7 when added to the survivors' benefit payable by the other 8 system would equal this highest survivors' benefit. If the 9 other system has a similar provision for adjustment of the 10 survivors' benefit, the respective proportional survivors' 11 benefits shall be reduced proportionately according to the 12 ratio which the amount of each proportional survivors' 13 benefit bears to the aggregate of all proportional survivors' 14 benefits. If a survivors' benefit is payable by another 15 system covered by Article 20, and the survivor elects to 16 waive the monthly survivors' benefit and accept a lump sum 17 payment or death benefit in lieu of the monthly survivors' 18 benefit, this system shall, for the purpose of adjusting the 19 monthly survivors' benefit under this paragraph, assume that 20 the survivor had been entitled to a monthly survivors' 21 benefit which, in accordance with actuarial tables of this 22 system, is the actuarial equivalent of the amount of the lump 23 sum payment or death benefit. 24 (6) Remarriage of a surviving spouse prior to attainment 25 of age 55 that occurs before the effective date of this 26 amendatory Act of the 91st General Assembly shall terminate 27 his or her survivors' benefits. 28 The change made to this item (6) by this amendatory Act 29 of the 91st General Assembly applies without regard to 30 whether the deceased member or annuitant was in service on or 31 after the effective date of this amendatory Act of the 91st 32 General Assembly. 33 (7) The benefits payable to an eligible child shall 34 terminate when the eligible child marries, dies, or attains HB1583 Enrolled -142- LRB9101658EGfg 1 age 18 (age 22 if a full-time student); except that benefits 2 payable to a dependent disabled eligible child shall 3 terminate only when the eligible child dies or ceases to be 4 disabled. 5 (Source: P.A. 90-448, eff. 8-16-97.) 6 (40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4) 7 Sec. 16-149.4. Supplementary disability retirement 8 annuity. 9 (a) An annuitant receiving a disability retirement 10 annuity on June 30, 1961 of less than $50 for each year of 11 creditable service forming the basis of the disability 12 retirement annuity shall have his or her disability 13 retirement annuity increased to $50 per year for each year of 14 such creditable service, with a minimum annuity of $1,000 per 15 year. 16 (b) In order to be entitled to the increase in 17 disability retirement annuity provided under this Section, an 18 annuitant is required to make an additional contribution of 19 $5 for each year of creditable service, together with 20 interest at the rate of 3% per annum from August 25, 1961. 21 (c) The supplementary retirement annuity provided under 22 this Section shall begin to accrue on the first of the month 23 following receipt of the required contributions from the 24 annuitantand shall continue to be paid only to the extent25that funds are available in the Supplementary Annuity Reserve26established under Section 16-184. 27 (Source: P.A. 83-1440.) 28 (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184) 29 Sec. 16-184. Supplementary Annuity Reserve. 30 (a) Except as provided in subsection (b), a reserve to 31 be known as the Supplementary Annuity Reserve is established 32 for the purpose of crediting funds received and charging HB1583 Enrolled -143- LRB9101658EGfg 1 disbursements made for supplementary annuities under Section 2 16-135 and Section 16-149.4. 3 This Reserve shall be credited with: 4 (1) The total of all contributions made by 5 annuitants to qualify for supplementary annuities. 6 (2) Amounts contributed to the System by the State 7 of Illinois that are sufficient to assure payment of the 8 supplementary annuities. 9 (3) Regular interest computed annually on the 10 average balance in this reserve. 11 This Reserve shall be charged with all supplemental 12 annuity payments under Section 16-135 and Section 16-149.4. 13 (b) On the July 1 next occurring after the effective 14 date of this amendatory Act of the 91st General Assembly, the 15 Supplemental Annuity Reserve is abolished and any remaining 16 balanceAfter all supplementary annuity payments have been17completed, any remaining fundsshall be transferred from that 18thisReserve to the Employer's Contribution Reserve. 19 (Source: P.A. 88-593, eff. 8-22-94.) 20 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106) 21 Sec. 17-106. Contributor, member or teacher. 22 "Contributor", "member" or "teacher": All members of the 23 teaching force of the city, including principals, assistant 24 principals, the general superintendent of schools, deputy 25 superintendents of schools, associate superintendents of 26 schools, assistant and district superintendents of schools, 27 members of the Board of Examiners, all other persons whose 28 employment requires a teaching certificate issued under the 29 laws governing the certification of teachers, any 30 educational, administrative, professional, or other staff 31 employed in a charter school operating in compliance with the 32 Charter Schools Law who is certified under the law governing 33 the certification of teachers, and employees of the Board, HB1583 Enrolled -144- LRB9101658EGfg 1 but excluding persons contributing concurrently to any other 2 public employee pension system in Illinois for the same 3 employment or receiving retirement pensions under another 4 Article of this Code for that same employment(unless the5person's eligibility to participate in that other pension6system arises from the holding of an elective public office,7and the person has held that public office for at least 108years), persons employed on an hourly basis, and persons 9 receiving pensions from the Fund who are employed temporarily 10 by an Employer for 100 days or less in any school year and 11 not on an annual basis. 12 In the case of a person who has been making contributions 13 and otherwise participating in this Fund prior to the 14 effective date of this amendatory Act of the 91st General 15 Assembly1991, and whose right to participate in the Fund is 16 established or confirmed by this amendatory Act, such prior 17 participation in the Fund, including all contributions 18 previously made and service credits previously earned by the 19 person, are hereby validated. 20 (Source: P.A. 89-450, eff. 4-10-96; 90-32, eff. 6-27-97; 21 90-566, eff. 1-2-98.) 22 (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117) 23 Sec. 17-117. Disability retirement pension. 24 (a) The conditions prescribed in items 1 and 2 in 25 Section 17-116 for computing service retirement pensions 26 shall apply in the computation of disability retirement 27 pensions. 28 (1) Each teacher retired or retiring after 10 years 29 of service and with less than 20 years of service because 30 of permanent disability not incurred as a proximate 31 result of the performance of duty shall receive a 32 disability retirement pension equal to 2.2% of average 33 salary for each year of service after June 30, 1998 and HB1583 Enrolled -145- LRB9101658EGfg 1 for each year of service on or before that date that has 2 been augmented under Section 17-119.1 and 1 2/3% of 3 average salary for each year of other service. 4 (2) If the total service is 20 years and less than 5 25 years and the teacher's age is under 55, the 6 disability retirement pension shall equal a service 7 retirement pension discounted 1/2 of 1% for each month 8 the age of the contributor is less than 55 down to a 9 minimum age of 50 years, provided the disability 10 retirement pension so computed shall not be less than the 11 amount payable under paragraph 1. 12 (3) If the total service is 20 years or more and 13 the teacher has attained age 55, and is under age 60, a 14 disability retirement pension shall equal a service 15 retirement pension without discount. 16 (4) If the total service is 25 years or more 17 regardless of age, a disability pension shall equal a 18 service retirement pension without discount. 19 (5) If the total service is 20 years or more and 20 the teacher is age 60 or over, a service retirement 21 pension shall be payable. 22 (b) For disability retirement pensions, the following 23 further conditions shall apply: 24 (1) Written application shall be submitted within 3 25 years from the date of separation. 26 (2) The applicant shall submit to examination by 27 physicians appointed by the Board within one year from 28 the date of their appointment. 29 (3) Two physicians, appointed by the Board, shall 30 declare the applicant to be suffering from a disability 31 which wholly and presumably permanently incapacitates him 32 for teaching or for service as an employee of the Board. 33 In the event of disagreement by the physicians, a third 34 physician, appointed by the Board, shall declare the HB1583 Enrolled -146- LRB9101658EGfg 1 applicant wholly and presumably permanently 2 incapacitated. 3 (c) Disability retirement pensions shall begin on the 4 effective date of resignation or the day following the close 5 of the payroll period for which credit was validated, 6 whichever is later. 7 (Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98.) 8 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133) 9 Sec. 17-133. Contributions for periods of outside and 10 other service. Regularly certified and appointed teachers 11 who desire to have the following described services credited 12 for pension purposes shall submit to the Board evidence 13 thereof and pay into the Fund the amounts prescribed herein: 14 1. For teaching service by a certified teacher in 15 the public schools of the several states or in schools 16 operated by or under the auspices of the United States, a 17 teacher shall pay the contributions at the rates in force 18 (a) on the date of appointment as a regularly certified 19 teacher after salary adjustments are completed, or (b) at 20 the time of reappointment after salary adjustments are 21 completed, whichever is later, but not less than $450 per 22 year of service. Upon the Board's approval of such 23 service and the payment of the required contributions, 24 service credit of not more than 10 years shall be 25 granted. 26 2. For service as a playground instructor in public 27 school playgrounds, teachers shall pay the contributions 28 prescribed in this Article (a) at the time of 29 appointment, as a regularly certified teacher after 30 salary adjustments are completed, or (b) on return to 31 service as a full time regularly certified teacher, as 32 the case may be, provided such rates or amounts shall not 33 be less than $450 per year. HB1583 Enrolled -147- LRB9101658EGfg 1 3. For service prior to September 1, 1955, in the 2 public schools of the City as a substitute, evening 3 school or temporary teacher, or for service as an 4 Americanization teacher prior to December 31, 1955, 5 teachers shall pay the contributions prescribed in this 6 Article (a) at the time of appointment, as a regularly 7 certified teacher after salary adjustments are completed, 8 (b) on return to service as a full time regularly 9 certified teacher, as the case may be, provided such 10 rates or amounts shall not be less than $450 per year; 11 and provided further that for teachers employed on or 12 after September 1, 1953, rates shall not include 13 contributions for widows' pensions if the service 14 described in this sub-paragraph 3 was rendered before 15 that date. Any teacher entitled to repay a refund of 16 contributions under Section 17-126126 of this Article17 may validate service described in this paragraph by 18 payment of the amounts prescribed herein, together with 19 the repayment of the refund, provided that if such 20 creditable service was the last service rendered in the 21 public schools of the City and is not automatically 22 reinstated by repayment of the refund, the rates or 23 amounts shall not be less than $450 per year. 24 4. For service after June 30, 1982 as a member of 25 the Board of Education, if required to resign from an 26 administrative or teaching position in order to qualify 27 as a member of the Board of Education. 28 5. For service during the 1986-87 school year as a 29 teacher on a special leave of absence with full loss of 30 salary, teaching for an agency under contract to the 31 Board of Education, if the teacher returned to employment 32 in September, 1987. For service under this item 5, the 33 teacher must pay the contributions at the rates in force 34 at the completion of the leave period. HB1583 Enrolled -148- LRB9101658EGfg 1 For service described in sub-paragraphs 1, 2 and 3 of 2 this Section, interest shall be charged beginning one year 3 after the effective date of appointment or reappointment. 4 Effective September 1, 1974, the interest rate to be 5 charged by the Fund on contributions provided in 6 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded 7 annually. 8 (Source: P.A. 90-566, eff. 1-2-98.) 9 (40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150) 10 Sec. 17-150. Suspension of pensions. Until July 1, 11 2000, pension payments, exclusive of those made to the 12 survivors of persons who were contributors, shall be 13 suspended while the recipient is employed in a teaching 14 capacity, outside the City in which the Fund exists, by any 15 public school or charter school in this State, unless the 16 recipient is so employed temporarily as a substitute teacher 17 for 100 days or less in a school year or on an hourly basis 18 with earnings not in excess of the sum payable for 100 days' 19 substitute service. 20 Beginning July 1, 2000, pension payments shall no longer 21 be suspended while the recipient is employed in a teaching 22 capacity, outside the City in which the Fund exists, by any 23 public school or charter school in this State, and any 24 pension that is in a state of suspension under this Section 25 on July 1, 2000 shall be reinstated on that date. 26 Notwithstanding Section 17-157, the change to this Section 27 made by this amendatory Act of the 91st General Assembly 28 applies without regard to whether or not the pensioner was in 29 service on or after the effective date of this amendatory 30 Act. 31 (Source: P.A. 90-566, eff. 1-2-98.) 32 (40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128) HB1583 Enrolled -149- LRB9101658EGfg 1 Sec. 18-128. Survivor's annuities; Conditions for 2 payment. 3 (a) A survivor's annuity shall be payable upon the death 4 of a participant while in service after June 30, 1967 if the 5 participant had at least 1 1/2 years of service credit as a 6 judge, or upon death of an inactive participant who had 7 terminated service as a judge on or after June 30, 1967 with 8 at least 10 years of service credit, or upon the death of an 9 annuitant whose retirement becomes effective after June 30, 10 1967. 11 (b) The surviving spouse of a deceased participant or 12 annuitant is entitled to a survivor's annuity beginning at 13 the date of death if the surviving spouse (1) has been 14 married to the participant or annuitant for a continuous 15 period of at least one year immediately preceding the date of 16 death, and (2) has attained age 50, or, regardless of age, 17 has in his or her care an eligible child or children of the 18 decedent as provided under subsections (c) and (d) of this 19 Section. If the surviving spouse has no such child in his or 20 her care and has not attained age 50, the survivor's annuity 21 shall begin upon attainment of age 50. When all such 22 children of the deceased who are in the care of the surviving 23 spouse no longer qualify for benefits and the surviving 24 spouse is under 50 years of age, the surviving spouse's 25 annuity shall be suspended until he or she attains age 50. 26 (c) A child's annuity is payable for an unmarried child 27 of an annuitant or participant so long as the child is (i) 28 under age 18, (ii) under age 22 and a full time student, or 29 (iii) age 18 or over if dependent by reason of physical or 30 mental disability. Disability means inability to engage in 31 any substantial gainful activity by reason of any medically 32 determinable physical or mental impairment which can expected 33 to result in death or which has lasted or can be expected to 34 last for a continuous period of not less than 12 months. HB1583 Enrolled -150- LRB9101658EGfg 1 (d) Adopted children shall have the same status as 2 natural children, but only if the proceedings for adoption 3 were commenced at least 6 months prior to the death of the 4 annuitant or participant. 5 (e) Remarriage prior to attainment of age 50 that occurs 6 before the effective date of this amendatory Act of the 91st 7 General Assembly shall disqualify a surviving spouse for the 8 receipt of a survivor's annuity. 9 The change made to this subsection by this amendatory Act 10 of the 91st General Assembly applies without regard to 11 whether the deceased judge was in service on or after the 12 effective date of this amendatory Act of the 91st General 13 Assembly. 14 (f) The changes made in survivor's annuity provisions by 15 Public Act 82-306 shall apply to the survivors of a deceased 16 participant or annuitant whose death occurs on or after 17 August 21, 1981 and whose service as a judge terminates on or 18 after July 1, 1967. 19 The provision of child's annuities for dependent students 20 under age 22 by this amendatory Act of 1991 shall apply to 21 all eligible students beginning January 1, 1992, without 22 regard to whether the deceased judge was in service on or 23 after the effective date of this amendatory Act. 24 (Source: P.A. 87-794.) 25 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121) 26 Sec. 20-121. Calculation of proportional retirement 27 annuities. Upon retirement of the employee, a proportional 28 retirement annuity shall be computed by each participating 29 system in which pension credit has been established on the 30 basis of pension credits under each system. The computation 31 shall be in accordance with the formula or method prescribed 32 by each participating system which is in effect at the date 33 of the employee's latest withdrawal from service covered by HB1583 Enrolled -151- LRB9101658EGfg 1 any of the systems in which he has pension credits which he 2 elects to have considered under this Article. However, the 3 amount of any retirement annuity payable under the 4 self-managed plan established under Section 15-158.2 of this 5 Code depends solely on the value of the participant's vested 6 account balances and is not subject to any proportional 7 adjustment under this Section. 8 Combined pension credit under all retirement systems 9 subject to this Article shall be considered in determining 10 whether the minimum qualification has been met and the 11 formula or method of computation which shall be applied. If 12 a system has a step-rate formula for calculation of the 13 retirement annuity, pension credits covering previous service 14 which have been established under another system shall be 15 considered in determining which range or ranges of the 16 step-rate formula are to be applicable to the employee. 17 Interest on pension credit shall continue to accumulate 18 in accordance with the provisions of the law governing the 19 retirement system in which the same has been established 20 during the time an employee is in the service of another 21 employer, on the assumption such employee, for interest 22 purposes for pension credit, is continuing in the service 23 covered by such retirement system. 24 (Source: P.A. 79-782.) 25 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123) 26 Sec. 20-123. Survivor's annuity. The provisions 27 governing a retirement annuity shall be applicable to a 28 survivor's annuity. Appropriate credits shall be established 29 for survivor's annuity purposes in those participating 30 systems which provide survivor's annuities, according to the 31 same conditions and subject to the same limitations and 32 restrictions herein prescribed for a retirement annuity. If 33 a participating system has no survivor's annuity benefit, or HB1583 Enrolled -152- LRB9101658EGfg 1 if the survivor's annuity benefit under that system is 2 waived, pension credit established in thatthissystem shall 3 not be considered in determining eligibility for or the 4 amount of the survivor's annuity which may be payable by any 5 other participating system. 6 For persons who participate in the self-managed plan 7 established under Section 15-158.2 or the portable benefit 8 package established under Section 15-136.4, pension credit 9 established under Article 15 may be considered in determining 10 eligibility for or the amount of the survivor's annuity that 11 is payable by any other participating system, but pension 12 credit established in any other system shall not result in 13 any right to a survivor's annuity under the Article 15 14 system. 15 (Source: P.A. 79-782.) 16 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124) 17 Sec. 20-124. Maximum benefits. In no event shall the 18 combined retirement or survivors annuities exceed the highest 19 annuity which would have been payable by any participating 20 system in which the employee has pension credits, if all of 21 his pension credits had been validated in that system. 22 If the combined annuities should exceed the highest 23 maximum as determined in accordance with this Section, the 24 respective annuities shall be reduced proportionately 25 according to the ratio which the amount of each proportional 26 annuity bears to the aggregate of all such annuities. 27 In the case of a participant in the self-managed plan 28 established under Section 15-158.2 of this Code to whom the 29 provisions of this Article apply: 30 (i) For purposes of calculating the combined 31 retirement annuity and the proportionate reduction, if 32 any, in a retirement annuity other than one payable under 33 the self-managed plan, the amount of the Article 15 HB1583 Enrolled -153- LRB9101658EGfg 1 retirement annuity shall be deemed to be the highest 2 annuity to which the annuitant would have been entitled 3 if he or she had participated in the traditional benefit 4 package as defined in Section 15-103.1 rather than the 5 self-managed plan. 6 (ii) For purposes of calculating the combined 7 survivor's annuity and the proportionate reduction, if 8 any, in a survivor's annuity other than one payable under 9 the self-managed plan, the amount of the Article 15 10 survivor's annuity shall be deemed to be the highest 11 survivor's annuity to which the survivor would have been 12 entitled if the deceased employee had participated in the 13 traditional benefit package as defined in Section 14 15-103.1 rather than the self-managed plan. 15 (iii) Benefits payable under the self-managed plan 16 are not subject to proportionate reduction under this 17 Section. 18 (Source: P.A. 79-782.) 19 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125) 20 Sec. 20-125. Return to employment - suspension of 21 benefits. If a retired employee returns to employment which 22 is covered by a system from which he is receiving a 23 proportional annuity under this Article, his proportional 24 annuity from all participating systems shall be suspended 25 during the period of re-employment, except that this 26 suspension does not apply to any distributions payable under 27 the self-managed plan established under Section 15-158.2 of 28 this Code. 29 The provisions of the Article under which such employment 30 would be covered shall govern the determination of whether 31 the employee has returned to employment, and if applicable 32 the exemption of temporary employment or employment not 33 exceeding a specified duration or frequency, for all HB1583 Enrolled -154- LRB9101658EGfg 1 participating systems from which the retired employee is 2 receiving a proportional annuity under this Article, 3 notwithstanding any contrary provisions in the other Articles 4 governing such systems. 5 (Source: P.A. 85-1008.) 6 (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131) 7 Sec. 20-131. Retirement Annuities and Survivors 8 Annuities - Guarantees. 9 (a) This amendatory Act of 1975 (P.A. 79-782) shall not 10 be applied to deprive any person or his survivor of 11 eligibility for an annuity or to reduce the annuity or to 12 deprive such person of rights to which he or his survivor 13 would have been entitled under the provisions of Article 20 14 which were in effect immediately prior to September 5, 1975, 15 if he was an employee immediately prior to that date. 16 (b) If the combined retirement annuity benefits provided 17 under Public Act 79-782 are less than the combined retirement 18 annuity benefits that would have been payable under the 19 alternative formula of Section 20-122, the system under which 20 retirement would have occurred, as provided by Section 21 20-122, shall increase the proportional retirement annuity by 22 an amount equal to the difference. 23 (c) Subsection (b) of this Section does not apply to the 24 retirement annuity benefits payable under the self-managed 25 plan established under Section 15-158.2 of this Code. 26 (Source: P.A. 86-820.) 27 (40 ILCS 5/15-158.1 rep.) 28 Section 15. The Illinois Pension Code is amended by 29 repealing Section 15-158.1. 30 Section 20. The Illinois Pension Code is amended by 31 changing Sections 15-136, 15-136.2, and 15-185 as follows: HB1583 Enrolled -155- LRB9101658EGfg 1 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136) 2 Sec. 15-136. Retirement annuities - Amount. The 3 provisions of this Section 15-136 apply only to those 4 participants who are participating in the traditional benefit 5 package or the portable benefit package and do not apply to 6 participants who are participating in the self-managed plan. 7 (a) The amount of a participant's retirement annuity, 8 expressed in the form of a single-life annuity, shall be 9 determined by whichever of the following rules is applicable 10 and provides the largest annuity: 11 Rule 1: The retirement annuity shall be 1.67% of final 12 rate of earnings for each of the first 10 years of service, 13 1.90% for each of the next 10 years of service, 2.10% for 14 each year of service in excess of 20 but not exceeding 30, 15 and 2.30% for each year in excess of 30; or for persons who 16 retire on or after January 1, 1998, 2.2% of the final rate of 17 earnings for each year of service. 18 Rule 2: The retirement annuity shall be the sum of the 19 following, determined from amounts credited to the 20 participant in accordance with the actuarial tables and the 21 prescribed rate of interest in effect at the time the 22 retirement annuity begins: 23 (i) the normal annuity which can be provided on an 24 actuarially equivalent basis, by the accumulated normal 25 contributions as of the date the annuity begins; and 26 (ii) an annuity from employer contributions of an 27 amount equal to that which can be provided on an 28 actuarially equivalent basis from the accumulated normal 29 contributions made by the participant under Section 30 15-113.6 and Section 15-113.7 plus 1.4 times all other 31 accumulated normal contributions made by the participant. 32 With respect to a police officer or firefighter who 33 retires on or after August 14,the effective date of this34amendatory Act of1998, the accumulated normal contributions HB1583 Enrolled -156- LRB9101658EGfg 1 taken into account under clauses (i) and (ii) of this Rule 2 2 shall include the additional normal contributions made by the 3 police officer or firefighter under Section 15-157(a). 4 The amount of a retirement annuity calculated under this 5 Rule 2 shall be computed solely on the basis of the 6 participant's accumulated normal contributions, as specified 7 in this Rule and defined in Section 15-116. Neither an 8 employee or employer contribution for early retirement under 9 Section 15-136.2 nor any other employer contribution shall be 10 used in the calculation of the amount of a retirement annuity 11 under this Rule 2. 12 This amendatory Act of the 91st General Assembly is a 13 clarification of existing law and applies to every 14 participant and annuitant without regard to whether status as 15 an employee terminates before the effective date of this 16 amendatory Act. 17 Rule 3: The retirement annuity of a participant who is 18 employed at least one-half time during the period on which 19 his or her final rate of earnings is based, shall be equal to 20 the participant's years of service not to exceed 30, 21 multiplied by (1) $96 if the participant's final rate of 22 earnings is less than $3,500, (2) $108 if the final rate of 23 earnings is at least $3,500 but less than $4,500, (3) $120 if 24 the final rate of earnings is at least $4,500 but less than 25 $5,500, (4) $132 if the final rate of earnings is at least 26 $5,500 but less than $6,500, (5) $144 if the final rate of 27 earnings is at least $6,500 but less than $7,500, (6) $156 if 28 the final rate of earnings is at least $7,500 but less than 29 $8,500, (7) $168 if the final rate of earnings is at least 30 $8,500 but less than $9,500, and (8) $180 if the final rate 31 of earnings is $9,500 or more, except that the annuity for 32 those persons having made an election under Section 33 15-154(a-1) shall be calculated and payable under the 34 portable retirement benefit program pursuant to the HB1583 Enrolled -157- LRB9101658EGfg 1 provisions of Section 15-136.4. 2 Rule 4: A participant who is at least age 50 and has 25 3 or more years of service as a police officer or firefighter, 4 and a participant who is age 55 or over and has at least 20 5 but less than 25 years of service as a police officer or 6 firefighter, shall be entitled to a retirement annuity of 7 2 1/4% of the final rate of earnings for each of the first 10 8 years of service as a police officer or firefighter, 2 1/2% 9 for each of the next 10 years of service as a police officer 10 or firefighter, and 2 3/4% for each year of service as a 11 police officer or firefighter in excess of 20. The 12 retirement annuity for all other service shall be computed 13 under Rule 1. 14 For purposes of this Rule 4, a participant's service as a 15 firefighter shall also include the following: 16 (i) service that is performed while the person is 17 an employee under subsection (h) of Section 15-107; and 18 (ii) in the case of an individual who was a 19 participating employee employed in the fire department of 20 the University of Illinois's Champaign-Urbana campus 21 immediately prior to the elimination of that fire 22 department and who immediately after the elimination of 23 that fire department transferred to another job with the 24 University of Illinois, service performed as an employee 25 of the University of Illinois in a position other than 26 police officer or firefighter, from the date of that 27 transfer until the employee's next termination of service 28 with the University of Illinois. 29 (b) The retirement annuity provided under Rules 1 and 3 30 above shall be reduced by 1/2 of 1% for each month the 31 participant is under age 60 at the time of retirement. 32 However, this reduction shall not apply in the following 33 cases: 34 (1) For a disabled participant whose disability HB1583 Enrolled -158- LRB9101658EGfg 1 benefits have been discontinued because he or she has 2 exhausted eligibility for disability benefits under 3 clause (6) of Section 15-152; 4 (2) For a participant who has at least the number 5 of years of service required to retire at any age under 6 subsection (a) of Section 15-135; or 7 (3) For that portion of a retirement annuity which 8 has been provided on account of service of the 9 participant during periods when he or she performed the 10 duties of a police officer or firefighter, if these 11 duties were performed for at least 5 years immediately 12 preceding the date the retirement annuity is to begin. 13 (c) The maximum retirement annuity provided under Rules 14 1, 2, and 4 shall be the lesser of (1) the annual limit of 15 benefits as specified in Section 415 of the Internal Revenue 16 Code of 1986, as such Section may be amended from time to 17 time and as such benefit limits shall be adjusted by the 18 Commissioner of Internal Revenue, and (2) 80% of final rate 19 of earnings. 20 (d) An annuitant whose status as an employee terminates 21 after August 14, 1969 shall receive automatic increases in 22 his or her retirement annuity as follows: 23 Effective January 1 immediately following the date the 24 retirement annuity begins, the annuitant shall receive an 25 increase in his or her monthly retirement annuity of 0.125% 26 of the monthly retirement annuity provided under Rule 1, Rule 27 2, Rule 3, or Rule 4, contained in this Section, multiplied 28 by the number of full months which elapsed from the date the 29 retirement annuity payments began to January 1, 1972, plus 30 0.1667% of such annuity, multiplied by the number of full 31 months which elapsed from January 1, 1972, or the date the 32 retirement annuity payments began, whichever is later, to 33 January 1, 1978, plus 0.25% of such annuity multiplied by the 34 number of full months which elapsed from January 1, 1978, or HB1583 Enrolled -159- LRB9101658EGfg 1 the date the retirement annuity payments began, whichever is 2 later, to the effective date of the increase. 3 The annuitant shall receive an increase in his or her 4 monthly retirement annuity on each January 1 thereafter 5 during the annuitant's life of 3% of the monthly annuity 6 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in 7 this Section. The change made under this subsection by P.A. 8 81-970 is effective January 1, 1980 and applies to each 9 annuitant whose status as an employee terminates before or 10 after that date. 11 Beginning January 1, 1990, all automatic annual increases 12 payable under this Section shall be calculated as a 13 percentage of the total annuity payable at the time of the 14 increase, including all increases previously granted under 15 this Article. 16 The change made in this subsection by P.A. 85-1008 is 17 effective January 26, 1988, and is applicable without regard 18 to whether status as an employee terminated before that date. 19 (e) If, on January 1, 1987, or the date the retirement 20 annuity payment period begins, whichever is later, the sum of 21 the retirement annuity provided under Rule 1 or Rule 2 of 22 this Section and the automatic annual increases provided 23 under the preceding subsection or Section 15-136.1, amounts 24 to less than the retirement annuity which would be provided 25 by Rule 3, the retirement annuity shall be increased as of 26 January 1, 1987, or the date the retirement annuity payment 27 period begins, whichever is later, to the amount which would 28 be provided by Rule 3 of this Section. Such increased amount 29 shall be considered as the retirement annuity in determining 30 benefits provided under other Sections of this Article. This 31 paragraph applies without regard to whether status as an 32 employee terminated before the effective date of this 33 amendatory Act of 1987, provided that the annuitant was 34 employed at least one-half time during the period on which HB1583 Enrolled -160- LRB9101658EGfg 1 the final rate of earnings was based. 2 (f) A participant is entitled to such additional annuity 3 as may be provided on an actuarially equivalent basis, by any 4 accumulated additional contributions to his or her credit. 5 However, the additional contributions made by the participant 6 toward the automatic increases in annuity provided under this 7 Section shall not be taken into account in determining the 8 amount of such additional annuity. 9 (g) If, (1) by law, a function of a governmental unit, 10 as defined by Section 20-107 of this Code, is transferred in 11 whole or in part to an employer, and (2) a participant 12 transfers employment from such governmental unit to such 13 employer within 6 months after the transfer of the function, 14 and (3) the sum of (A) the annuity payable to the participant 15 under Rule 1, 2, or 3 of this Section (B) all proportional 16 annuities payable to the participant by all other retirement 17 systems covered by Article 20, and (C) the initial primary 18 insurance amount to which the participant is entitled under 19 the Social Security Act, is less than the retirement annuity 20 which would have been payable if all of the participant's 21 pension credits validated under Section 20-109 had been 22 validated under this system, a supplemental annuity equal to 23 the difference in such amounts shall be payable to the 24 participant. 25 (h) On January 1, 1981, an annuitant who was receiving a 26 retirement annuity on or before January 1, 1971 shall have 27 his or her retirement annuity then being paid increased $1 28 per month for each year of creditable service. On January 1, 29 1982, an annuitant whose retirement annuity began on or 30 before January 1, 1977, shall have his or her retirement 31 annuity then being paid increased $1 per month for each year 32 of creditable service. 33 (i) On January 1, 1987, any annuitant whose retirement 34 annuity began on or before January 1, 1977, shall have the HB1583 Enrolled -161- LRB9101658EGfg 1 monthly retirement annuity increased by an amount equal to 8¢ 2 per year of creditable service times the number of years that 3 have elapsed since the annuity began. 4 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448, 5 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98; 6 90-766, eff. 8-14-98.) 7 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2) 8 Sec. 15-136.2. Early retirement without discount. A 9 participant whose retirement annuity begins after June 1, 10 1981 and on or before September 1, 2002 and within six months 11 of the last day of employment for which retirement 12 contributions were required, may elect at the time of 13 application to make a one time employee contribution to the 14 System and thereby avoid the early retirement reduction in 15 retirement annuity specified under subsection (b) of Section 16 15-136. The exercise of the election shall obligate the last 17 employer to also make a one time non-refundable contribution 18 to the System. 19 The one time employee and employer contributions shall be 20 a percentage of the retiring participant's highest full time 21 annual salary rate during the academic years which were 22 considered in determining his or her final rate of earnings, 23 or if not full time then the full time equivalent. The 24 employee contribution rate shall be 7% multiplied by the 25 lesser of the following 2 sums: (1) the number of years that 26 the participant is less than age 60; or (2) the number of 27 years that the participant's creditable service is less than 28 35 years. The employer contribution shall be at the rate of 29 20% for each year the participant is less than age 60. The 30 employer shall pay the employer contribution from the same 31 source of funds which is used in paying earnings to 32 employees. 33 Upon receipt of the application and election, the System HB1583 Enrolled -162- LRB9101658EGfg 1 shall determine the one time employee and employer 2 contributions. The provisions of this Section shall not be 3 applicable until all the above outlined contributions have 4 been received by the System; however, the date such 5 contributions are received shall not be considered in 6 determining the effective date of retirement. 7 Employee and employer contributions under this Section 8 shall be used only to eliminate the reduction for early 9 retirement under Rules 1 and 3 of Section 15-136 and shall 10 not be used in calculating annuities under Rules 2 or 4 set 11 forth in Section 15-136. This amendatory Act of the 91st 12 General Assembly is a clarification of existing law and 13 applies to every participant and annuitant without regard to 14 whether status as an employee terminates before the effective 15 date of this amendatory Act. 16 For persons who apply to the Board after the effective 17 date of this amendatory Act of 1993 and before July 1, 1993, 18 requesting a retirement annuity to begin no earlier than July 19 1, 1993 and no later than June 30, 1994, the employer shall 20 pay both the employee and employer contributions required 21 under this Section. 22 The number of employees retiring under this Section in 23 any fiscal year may be limited at the option of the employer 24 to no less than 15% of those eligible. The right to elect 25 early retirement without discount shall be allocated among 26 those applying on the basis of seniority in the service of 27 the last employer. 28 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.) 29 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185) 30 Sec. 15-185. Annuities, etc., exempt. The accumulated 31 employee and employer contributions shall be held in trust 32 for each participant and annuitant, and this trust shall be 33 treated as a spendthrift trust. Except as provided in this HB1583 Enrolled -163- LRB9101658EGfg 1 Article, all cash, securities and other property of this 2 system, all annuities and other benefits payable under this 3 Article and all accumulated credits of participants and 4 annuitants in this system and the right of any person to 5 receive an annuity or other benefit under this Article, or a 6 refund of contributions, shall not be subject to judgment, 7 execution, garnishment, attachment, or other seizure by 8 process, in bankruptcy or otherwise, nor to sale, pledge, 9 mortgage or other alienation, and shall not be assignable. 10 The board, however, may deduct from the benefits, refunds and 11 credits payable to the participant, annuitant or beneficiary, 12 amounts owed by the participant or annuitant to the system. 13 No attempted sale, transfer or assignment of any benefit, 14 refund or credit shall prevent the right of the board to make 15 the deduction and offset authorized in this Section. Any 16 participant or annuitant may authorize the board to deduct 17 from disability benefits or annuities, premiums due under any 18 group hospital-surgical insurance program which is sponsored 19 or approved by any employer; however, the deductions from 20 disability benefits may not begin prior to 6 months after the 21 disability occurs. 22 A person receiving an annuity or benefit under this 23 Article may also authorize withholding from that annuity or 24 benefit for the purposes enumerated in and in accordance with 25 the provisions of the State Salary and Annuity Withholding 26 Act. 27 This Section is not intended to, and does not, affect the 28 calculation of any benefit under this Article or dictate how 29 or to what extent employee or employer contributions are to 30 be taken into account in calculating benefits. This 31 amendatory Act of the 91st General Assembly is a 32 clarification of existing law and applies to every 33 participant and annuitant without regard to whether status as 34 an employee terminates before the effective date of this HB1583 Enrolled -164- LRB9101658EGfg 1 amendatory Act. 2 Public Act 86-273 is a clarification of existing law and 3 shall be applicable to every participant and annuitant 4 without regard to whether status as an employee terminates 5 before the effective date of that Act. 6 (Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97; 7 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.) 8 Section 25. The Illinois Pension Code is amended by 9 changing Sections 15-136, 15-139, 15-146, 15-146.1, and 10 15-154 as follows: 11 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136) 12 Sec. 15-136. Retirement annuities - Amount. The 13 provisions of this Section 15-136 apply only to those 14 participants who are participating in the traditional benefit 15 package or the portable benefit package and do not apply to 16 participants who are participating in the self-managed plan. 17 (a) The amount of a participant's retirement annuity, 18 expressed in the form of a single-life annuity, shall be 19 determined by whichever of the following rules is applicable 20 and provides the largest annuity: 21 Rule 1: The retirement annuity shall be 1.67% of final 22 rate of earnings for each of the first 10 years of service, 23 1.90% for each of the next 10 years of service, 2.10% for 24 each year of service in excess of 20 but not exceeding 30, 25 and 2.30% for each year in excess of 30; or for persons who 26 retire on or after January 1, 1998, 2.2% of the final rate of 27 earnings for each year of service. 28 Rule 2: The retirement annuity shall be the sum of the 29 following, determined from amounts credited to the 30 participant in accordance with the actuarial tables and the 31 prescribed rate of interest in effect at the time the 32 retirement annuity begins: HB1583 Enrolled -165- LRB9101658EGfg 1 (i) the normal annuity which can be provided on an 2 actuarially equivalent basis, by the accumulated normal 3 contributions as of the date the annuity begins; and 4 (ii) an annuity from employer contributions of an 5 amount which can be provided on an actuarially equivalent 6 basis from the accumulated normal contributions made by 7 the participant under Section 15-113.6 and Section 8 15-113.7 plus 1.4 times all other accumulated normal 9 contributions made by the participant. 10 With respect to a police officer or firefighter who retires 11 on or after the effective date of this amendatory Act of 12 1998, the accumulated normal contributions taken into account 13 under clauses (i) and (ii) of this Rule 2 shall include the 14 additional normal contributions made by the police officer or 15 firefighter under Section 15-157(a). 16 Rule 3: The retirement annuity of a participant who is 17 employed at least one-half time during the period on which 18 his or her final rate of earnings is based, shall be equal to 19 the participant's years of service not to exceed 30, 20 multiplied by (1) $96 if the participant's final rate of 21 earnings is less than $3,500, (2) $108 if the final rate of 22 earnings is at least $3,500 but less than $4,500, (3) $120 if 23 the final rate of earnings is at least $4,500 but less than 24 $5,500, (4) $132 if the final rate of earnings is at least 25 $5,500 but less than $6,500, (5) $144 if the final rate of 26 earnings is at least $6,500 but less than $7,500, (6) $156 if 27 the final rate of earnings is at least $7,500 but less than 28 $8,500, (7) $168 if the final rate of earnings is at least 29 $8,500 but less than $9,500, and (8) $180 if the final rate 30 of earnings is $9,500 or more, except that the annuity for 31 those persons having made an election under Section 32 15-154(a-1) shall be calculated and payable under the 33 portable retirement benefit program pursuant to the 34 provisions of Section 15-136.4. HB1583 Enrolled -166- LRB9101658EGfg 1 Rule 4: A participant who is at least age 50 and has 25 2 or more years of service as a police officer or firefighter, 3 and a participant who is age 55 or over and has at least 20 4 but less than 25 years of service as a police officer or 5 firefighter, shall be entitled to a retirement annuity of 6 2 1/4% of the final rate of earnings for each of the first 10 7 years of service as a police officer or firefighter, 2 1/2% 8 for each of the next 10 years of service as a police officer 9 or firefighter, and 2 3/4% for each year of service as a 10 police officer or firefighter in excess of 20. The 11 retirement annuity for all other service shall be computed 12 under Rule 1. 13 For purposes of this Rule 4, a participant's service as a 14 firefighter shall also include the following: 15 (i) service that is performed while the person is 16 an employee under subsection (h) of Section 15-107; and 17 (ii) in the case of an individual who was a 18 participating employee employed in the fire department of 19 the University of Illinois's Champaign-Urbana campus 20 immediately prior to the elimination of that fire 21 department and who immediately after the elimination of 22 that fire department transferred to another job with the 23 University of Illinois, service performed as an employee 24 of the University of Illinois in a position other than 25 police officer or firefighter, from the date of that 26 transfer until the employee's next termination of service 27 with the University of Illinois. 28 Rule 5: The retirement annuity of a participant who 29 elected early retirement under the provisions of Section 30 15-136.2 and who, on or before February 16, 1995, brought 31 administrative proceedings pursuant to the administrative 32 rules adopted by the System to challenge the calculation of 33 his or her retirement annuity shall be the sum of the 34 following, determined from amounts credited to the HB1583 Enrolled -167- LRB9101658EGfg 1 participant in accordance with the actuarial tables and the 2 prescribed rate of interest in effect at the time the 3 retirement annuity begins: 4 (i) the normal annuity which can be provided on an 5 actuarially equivalent basis, by the accumulated normal 6 contributions as of the date the annuity begins; and 7 (ii) an annuity from employer contributions of an 8 amount equal to that which can be provided on an 9 actuarially equivalent basis from the accumulated normal 10 contributions made by the participant under Section 11 15-113.6 and Section 15-113.7 plus 1.4 times all other 12 accumulated normal contributions made by the participant; 13 and 14 (iii) an annuity which can be provided on an 15 actuarially equivalent basis from the employee 16 contribution for early retirement under Section 15-136.2, 17 and an annuity from employer contributions of an amount 18 equal to that which can be provided on an actuarially 19 equivalent basis from the employee contribution for early 20 retirement under Section 15-136.2. 21 In no event shall a retirement annuity under this Rule 5 22 be lower than the amount obtained by adding (1) the monthly 23 amount obtained by dividing the combined employee and 24 employer contributions made under Section 15-136.2 by the 25 System's annuity factor for the age of the participant at the 26 beginning of the annuity payment period and (2) the amount 27 equal to the participant's annuity if calculated under Rule 28 1, reduced under Section 15-136(b) as if no contributions had 29 been made under Section 15-136.2. 30 With respect to a participant who is qualified for a 31 retirement annuity under this Rule 5 whose retirement annuity 32 began before the effective date of this amendatory Act of the 33 91st General Assembly, and for whom an employee contribution 34 was made under Section 15-136.2, the System shall recalculate HB1583 Enrolled -168- LRB9101658EGfg 1 the retirement annuity under this Rule 5 and shall pay any 2 additional amounts due in the manner provided in Section 3 15-186.1 for benefits mistakenly set too low. 4 The amount of a retirement annuity calculated under this 5 Rule 5 shall be computed solely on the basis of those 6 contributions specifically set forth in this Rule 5. Except 7 as provided in clause (iii) of this Rule 5, neither an 8 employee nor employer contribution for early retirement under 9 Section 15-136.2, nor any other employer contribution, shall 10 be used in the calculation of the amount of a retirement 11 annuity under this Rule 5. 12 The General Assembly has adopted the changes set forth in 13 Section 25 of this amendatory Act of the 91st General 14 Assembly in recognition that the decision of the Appellate 15 Court for the Fourth District in Mattis v. State Universities 16 Retirement System et al. might be deemed to give some right 17 to the plaintiff in that case. The changes made by Section 18 25 of this amendatory Act of the 91st General Assembly are a 19 legislative implementation of the decision of the Appellate 20 Court for the Fourth District in Mattis v. State Universities 21 Retirement System et al. with respect to that plaintiff. 22 The changes made by Section 25 of this amendatory Act of 23 the 91st General Assembly apply without regard to whether the 24 person is in service as an employee on or after its effective 25 date. 26 (b) The retirement annuity provided under Rules 1 and 3 27 above shall be reduced by 1/2 of 1% for each month the 28 participant is under age 60 at the time of retirement. 29 However, this reduction shall not apply in the following 30 cases: 31 (1) For a disabled participant whose disability 32 benefits have been discontinued because he or she has 33 exhausted eligibility for disability benefits under 34 clause (6) of Section 15-152; HB1583 Enrolled -169- LRB9101658EGfg 1 (2) For a participant who has at least the number 2 of years of service required to retire at any age under 3 subsection (a) of Section 15-135; or 4 (3) For that portion of a retirement annuity which 5 has been provided on account of service of the 6 participant during periods when he or she performed the 7 duties of a police officer or firefighter, if these 8 duties were performed for at least 5 years immediately 9 preceding the date the retirement annuity is to begin. 10 (c) The maximum retirement annuity provided under Rules 11 1, 2,and4, and 5 shall be the lesser of (1) the annual 12 limit of benefits as specified in Section 415 of the Internal 13 Revenue Code of 1986, as such Section may be amended from 14 time to time and as such benefit limits shall be adjusted by 15 the Commissioner of Internal Revenue, and (2) 80% of final 16 rate of earnings. 17 (d) An annuitant whose status as an employee terminates 18 after August 14, 1969 shall receive automatic increases in 19 his or her retirement annuity as follows: 20 Effective January 1 immediately following the date the 21 retirement annuity begins, the annuitant shall receive an 22 increase in his or her monthly retirement annuity of 0.125% 23 of the monthly retirement annuity provided under Rule 1, Rule 24 2, Rule 3,orRule 4, or Rule 5, contained in this Section, 25 multiplied by the number of full months which elapsed from 26 the date the retirement annuity payments began to January 1, 27 1972, plus 0.1667% of such annuity, multiplied by the number 28 of full months which elapsed from January 1, 1972, or the 29 date the retirement annuity payments began, whichever is 30 later, to January 1, 1978, plus 0.25% of such annuity 31 multiplied by the number of full months which elapsed from 32 January 1, 1978, or the date the retirement annuity payments 33 began, whichever is later, to the effective date of the 34 increase. HB1583 Enrolled -170- LRB9101658EGfg 1 The annuitant shall receive an increase in his or her 2 monthly retirement annuity on each January 1 thereafter 3 during the annuitant's life of 3% of the monthly annuity 4 provided under Rule 1, Rule 2, Rule 3,orRule 4, or Rule 5 5 contained in this Section. The change made under this 6 subsection by P.A. 81-970 is effective January 1, 1980 and 7 applies to each annuitant whose status as an employee 8 terminates before or after that date. 9 Beginning January 1, 1990, all automatic annual increases 10 payable under this Section shall be calculated as a 11 percentage of the total annuity payable at the time of the 12 increase, including all increases previously granted under 13 this Article. 14 The change made in this subsection by P.A. 85-1008 is 15 effective January 26, 1988, and is applicable without regard 16 to whether status as an employee terminated before that date. 17 (e) If, on January 1, 1987, or the date the retirement 18 annuity payment period begins, whichever is later, the sum of 19 the retirement annuity provided under Rule 1 or Rule 2 of 20 this Section and the automatic annual increases provided 21 under the preceding subsection or Section 15-136.1, amounts 22 to less than the retirement annuity which would be provided 23 by Rule 3, the retirement annuity shall be increased as of 24 January 1, 1987, or the date the retirement annuity payment 25 period begins, whichever is later, to the amount which would 26 be provided by Rule 3 of this Section. Such increased amount 27 shall be considered as the retirement annuity in determining 28 benefits provided under other Sections of this Article. This 29 paragraph applies without regard to whether status as an 30 employee terminated before the effective date of this 31 amendatory Act of 1987, provided that the annuitant was 32 employed at least one-half time during the period on which 33 the final rate of earnings was based. 34 (f) A participant is entitled to such additional annuity HB1583 Enrolled -171- LRB9101658EGfg 1 as may be provided on an actuarially equivalent basis, by any 2 accumulated additional contributions to his or her credit. 3 However, the additional contributions made by the participant 4 toward the automatic increases in annuity provided under this 5 Section shall not be taken into account in determining the 6 amount of such additional annuity. 7 (g) If, (1) by law, a function of a governmental unit, 8 as defined by Section 20-107 of this Code, is transferred in 9 whole or in part to an employer, and (2) a participant 10 transfers employment from such governmental unit to such 11 employer within 6 months after the transfer of the function, 12 and (3) the sum of (A) the annuity payable to the participant 13 under Rule 1, 2, or 3 of this Section (B) all proportional 14 annuities payable to the participant by all other retirement 15 systems covered by Article 20, and (C) the initial primary 16 insurance amount to which the participant is entitled under 17 the Social Security Act, is less than the retirement annuity 18 which would have been payable if all of the participant's 19 pension credits validated under Section 20-109 had been 20 validated under this system, a supplemental annuity equal to 21 the difference in such amounts shall be payable to the 22 participant. 23 (h) On January 1, 1981, an annuitant who was receiving a 24 retirement annuity on or before January 1, 1971 shall have 25 his or her retirement annuity then being paid increased $1 26 per month for each year of creditable service. On January 1, 27 1982, an annuitant whose retirement annuity began on or 28 before January 1, 1977, shall have his or her retirement 29 annuity then being paid increased $1 per month for each year 30 of creditable service. 31 (i) On January 1, 1987, any annuitant whose retirement 32 annuity began on or before January 1, 1977, shall have the 33 monthly retirement annuity increased by an amount equal to 8¢ 34 per year of creditable service times the number of years that HB1583 Enrolled -172- LRB9101658EGfg 1 have elapsed since the annuity began. 2 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448, 3 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98; 4 90-766, eff. 8-14-98.) 5 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139) 6 Sec. 15-139. Retirement annuities; Cancellation; 7 Suspended during employment. 8 (a) If an annuitant returns to employment for an 9 employer within 60 days after the beginning of the retirement 10 annuity payment period, the retirement annuity shall be 11 cancelled, and the annuitant shall refund to the System the 12 total amount of the retirement annuity payments which he or 13 she received. If the retirement annuity is cancelled, the 14 participant shall continue to participate in the System. 15 (b) If an annuitant retires prior to age 60 and receives 16 or becomes entitled to receive during any month compensation 17 in excess of the monthly retirement annuity for services 18 performed after the date of retirement for any employer under 19 this System, the State Employees' Retirement System of 20 Illinois, or the Teachers' Retirement System of the State of 21 Illinois, that portion of the monthly retirement annuity 22 provided by employer contributions shall not be payable. 23 If an annuitant retires at age 60 or over and receives or 24 becomes entitled to receive during any academic year 25 compensation in excess of the difference between his or her 26 highest annual earnings prior to retirement and his or her 27 annual retirement annuity computed under Rule 1, Rule 2, Rule 28 3,orRule 4, or Rule 5 of Section 15-136 for services 29 performed after the date of retirement for any employer under 30 this System, that portion of the monthly retirement annuity 31 provided by employer contributions shall be reduced by an 32 amount equal to the compensation that exceeds such 33 difference. HB1583 Enrolled -173- LRB9101658EGfg 1 However, any remuneration received for serving as a 2 member of the Illinois Educational Labor Relations Board 3 shall be excluded from "compensation" for the purposes of 4 this subsection (b), and serving as a member of the Illinois 5 Educational Labor Relations Board shall not be deemed to be a 6 return to employment for the purposes of this Section. This 7 provision applies without regard to whether service was 8 terminated prior to the effective date of this amendatory Act 9 of 1991. 10 (c) If an employer certifies that an annuitant has been 11 reemployed on a permanent and continuous basis or in a 12 position in which the annuitant is expected to serve for at 13 least 9 months, the annuitant shall resume his or her status 14 as a participating employee and shall be entitled to all 15 rights applicable to participating employees upon filing with 16 the board an election to forego all annuity payments during 17 the period of reemployment. Upon subsequent retirement, the 18 retirement annuity shall consist of the annuity which was 19 terminated by the reemployment, plus the additional 20 retirement annuity based upon service granted during the 21 period of reemployment, but the combined retirement annuity 22 shall not exceed the maximum annuity applicable on the date 23 of the last retirement. 24 The total service and earnings credited before and after 25 the initial date of retirement shall be considered in 26 determining eligibility of the employee or the employee's 27 beneficiary to benefits under this Article, and in 28 calculating final rate of earnings. 29 In determining the death benefit payable to a beneficiary 30 of an annuitant who again becomes a participating employee 31 under this Section, accumulated normal and additional 32 contributions shall be considered as the sum of the 33 accumulated normal and additional contributions at the date 34 of initial retirement and the accumulated normal and HB1583 Enrolled -174- LRB9101658EGfg 1 additional contributions credited after that date, less the 2 sum of the annuity payments received by the annuitant. 3 The survivors insurance benefits provided under Section 4 15-145 shall not be applicable to an annuitant who resumes 5 his or her status as a participating employee, unless the 6 annuitant, at the time of initial retirement, has a survivors 7 insurance beneficiary who could qualify for such benefits. 8 If the annuitant's employment is terminated because of 9 circumstances other than death before 9 months from the date 10 of reemployment, the provisions of this Section regarding 11 resumption of status as a participating employee shall not 12 apply. The normal and survivors insurance contributions which 13 are deducted during this period shall be refunded to the 14 annuitant without interest, and subsequent benefits under 15 this Article shall be the same as those which were applicable 16 prior to the date the annuitant resumed employment. 17 (Source: P.A. 86-1488.) 18 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146) 19 Sec. 15-146. Survivors insurance benefits - Minimum 20 amounts. 21 (a) The minimum total survivors annuity payable on 22 account of the death of a participant shall be 50% of the 23 retirement annuity which would have been provided under Rule 24 1, Rule 2,orRule 3, or Rule 5 of Section 15-136 upon the 25 participant's attainment of the minimum age at which the 26 penalty for early retirement would not be applicable or the 27 date of the participant's death, whichever is later, on the 28 basis of credits earned prior to the time of death. 29 (b) The minimum total survivors annuity payable on 30 account of the death of an annuitant shall be 50% of the 31 retirement annuity which is payable under Section 15-136 at 32 the time of death or 50% of the disability retirement annuity 33 payable under Section 15-153.2. This minimum survivors HB1583 Enrolled -175- LRB9101658EGfg 1 annuity shall apply to each participant and annuitant who 2 dies after September 16, 1979, whether or not his or her 3 employee status terminates before or after that date. 4 (c) If an annuitant has elected a reversionary annuity, 5 the retirement annuity referred to in this Section is that 6 which would have been payable had such election not been 7 filed. 8 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.) 9 (40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1) 10 Sec. 15-146.1. Survivors insurance benefits-Maximum 11 amounts. (a) The maximum total survivors annuity payable on 12 account of any deceased participating employee shall be the 13 lesser of: (1) 80% of the final rate of earnings; or (2) (A) 14 $400 per month if one survivors insurance beneficiary is 15 entitled to a survivors annuity, or (B) $600 per month if 16 there are 2 or more such beneficiaries. 17 (b) The maximum total survivors annuity payable on 18 account of the death of any person occurring after retirement 19 or after termination of his or her employee status shall be 20 the lesser of: (1) 80% of the final rate of earnings; (2) 21 (A) $400 per month if one survivors insurance beneficiary is 22 entitled to a survivors annuity, or (B) $600 per month if 23 there are 2 or more such beneficiaries; or (3) 80% of the 24 retirement annuity payable to the annuitant at the date of 25 retirement under the provisions of Rule 1, Rule 2,orRule 3, 26 or Rule 5 of Section 15-136, or 80% of the retirement annuity 27 which would have been payable to the participant upon 28 attainment of the minimum age at which the penalty for early 29 retirement would not be applicable or the date of death, 30 whichever is later, based upon credits earned as of the date 31 of death. 32 (c) The maximum total survivors annuity payable on 33 account of the death of any person whose death occurs while HB1583 Enrolled -176- LRB9101658EGfg 1 in receipt of a disability retirement annuity under Section 2 15-153.2 shall be the lesser of (1) 80% of his or her final 3 rate of earnings, (2) (A) $400 per month if one survivors 4 insurance beneficiary is entitled to a survivors annuity, or 5 (B) $600 per month if 2 or more survivors insurance 6 beneficiaries qualify for this benefit, or (3) 80% of the 7 retirement annuity which would have been payable upon 8 attainment of the age at which the penalty for early 9 retirement would not be applicable or the date of death, 10 whichever is later, based upon the participant's credits on 11 the date of death, or 80% of the disability retirement 12 annuity whichever is greater. 13 (d) If the minimum annuity provided under Section 15-146 14 exceeds the maximum annuity provided under this Section, the 15 minimum annuity shall be payable. 16 (e) If an annuitant has elected a reversionary annuity, 17 the retirement annuity referred to in this Section is that 18 which would have been payable had such election not been 19 filed. 20 (f) If a survivors insurance beneficiary qualifies for a 21 survivors or widows annuity because of pension credits 22 established by the participant or annuitant in another system 23 covered by Article 20, and the combined survivors annuities 24 exceed the highest survivors annuity which could be provided 25 by either system based upon the combined pension credits, the 26 survivors annuity payable by this system shall be reduced to 27 that amount which, when added to the survivors annuity 28 payable by the other system, would equal this highest 29 survivors annuity. If the other system has a similar 30 provision for adjustment of the survivors annuity, the 31 respective proportional survivors annuities shall be reduced 32 proportionately according to the ratio which the amount of 33 each proportional survivors annuity bears to the aggregate of 34 all proportional survivors annuities. If a survivors annuity HB1583 Enrolled -177- LRB9101658EGfg 1 is payable by another system covered by Article 20, and the 2 survivor elects to waive the survivors annuity and accept a 3 lump sum payment or death benefit in lieu of the survivors 4 annuity, this system shall, for the purpose of adjusting the 5 survivors annuity under this subsection, assume that the 6 survivor was entitled to a survivors annuity which, in 7 accordance with actuarial tables of this system, is the 8 actuarial equivalent of the amount of the lump sum payment or 9 death benefit. 10 (g) The total monthly survivors annuity payable to the 11 beneficiaries of any annuitant who terminated employment 12 before July 14, 1959 and whose death occurs after September 13 16, 1977 shall not exceed $200. 14 (h) Whenever a reduction in the survivors annuity is 15 made as authorized above, the survivors annuity to each 16 dependent parent shall be proportionately reduced or 17 eliminated, and if further reduction is necessary, the 18 survivors annuity payable to every other person shall be 19 proportionately decreased. 20 (Source: P.A. 86-272.) 21 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154) 22 Sec. 15-154. Refunds. 23 (a) A participant whose status as an employee is 24 terminated, regardless of cause, or who has been on lay off 25 status for more than 120 days, and who is not on leave of 26 absence, is entitled to a refund of contributions upon 27 application; except that not more than one such refund 28 application may be made during any academic year. 29 Except as set forth in subsections (a-1) and (a-2), the 30 refund shall be the sum of the accumulated normal, additional 31 and survivors insurance contributions, less the amount of 32 interest credited on these contributions each year in excess 33 of 4 1/2% of the amount on which interest was calculated. HB1583 Enrolled -178- LRB9101658EGfg 1 (a-1) A person who elects, in accordance with the 2 requirements of Section 15-134.5, to participate in the 3 portable benefit package and who becomes a participating 4 employee under that retirement program upon the conclusion of 5 the one-year waiting period applicable to the portable 6 benefit package election shall have his or her refund 7 calculated in accordance with the provisions of subsection 8 (a-2). 9 (a-2) The refund payable to a participant described in 10 subsection (a-1) shall be the sum of the participant's 11 accumulated normal and additional contributions, as defined 12 in Sections 15-116 and 15-117. If the participant terminates 13 with 5 or more years of service for employment as defined in 14 Section 15-113.1, he or she shall also be entitled to a 15 distribution of employer contributions in an amount equal to 16 the sum of the accumulated normal and additional 17 contributions, as defined in Sections 15-116 and 15-117. 18 (b) Upon acceptance of a refund, the participant 19 forfeits all accrued rights and credits in the System, and if 20 subsequently reemployed, the participant shall be considered 21 a new employee subject to all the qualifying conditions for 22 participation and eligibility for benefits applicable to new 23 employees. If such person again becomes a participating 24 employee and continues as such for 2 years, or is employed by 25 an employer and participates for at least 2 years in the 26 Federal Civil Service Retirement System, all such rights, 27 credits, and previous status as a participant shall be 28 restored upon repayment of the amount of the refund, together 29 with compound interest thereon from the date the refund was 30 received to the date of repayment at the rate of 6% per annum 31 through August 31, 1982, and at the effective rates after 32 that date. 33 (c) If a participant covered under the transitional 34 benefit package has made survivors insurance contributions, HB1583 Enrolled -179- LRB9101658EGfg 1 but has no survivors insurance beneficiary upon retirement, 2 he or she shall be entitled to a refund of the accumulated 3 survivors insurance contributions, or to an additional 4 annuity the value of which is equal to the accumulated 5 survivors insurance contributions. 6 (d) A participant, upon application, is entitled to a 7 refund of his or her accumulated additional contributions 8 attributable to the additional contributions described in the 9 last sentence of subsection (c) of Section 15-157. Upon the 10 acceptance of such a refund of accumulated additional 11 contributions, the participant forfeits all rights and 12 credits which may have accrued because of such contributions. 13 (e) A participant who terminates his or her employee 14 status and elects to waive service credit under Section 15 15-154.2, is entitled to a refund of the accumulated normal, 16 additional and survivors insurance contributions, if any, 17 which were credited the participant for this service, or to 18 an additional annuity the value of which is equal to the 19 accumulated normal, additional and survivors insurance 20 contributions, if any; except that not more than one such 21 refund application may be made during any academic year. Upon 22 acceptance of this refund, the participant forfeits all 23 rights and credits accrued because of this service. 24 (f) If a police officer or firefighter receives a 25 retirement annuity under Rule 1 or 3 of Section 15-136, he or 26 she shall be entitled at retirement to a refund of the 27 difference between his or her accumulated normal 28 contributions and the normal contributions which would have 29 accumulated had such person filed a waiver of the retirement 30 formula provided by Rule 4 of Section 15-136. 31 (g) If, at the time of retirement, a participant would 32 be entitled to a retirement annuity under Rule 1, 2, 3,or4, 33 or 5 of Section 15-136 that exceeds the maximum specified in 34 clause (1) of subsection (c) of Section 15-136, he or she HB1583 Enrolled -180- LRB9101658EGfg 1 shall be entitled to a refund of the employee contributions, 2 if any, paid under Section 15-157 after the date upon which 3 continuance of such contributions would have otherwise caused 4 the retirement annuity to exceed this maximum, plus compound 5 interest at the effective rates. 6 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98; 7 90-766, eff. 8-14-98.) 8 Section 90. Severability. 9 (a) It is the intent of the General Assembly that the 10 changes made by Section 25 of this amendatory Act of the 91st 11 General Assembly are not severable from one another, and 12 should any of the changes made by Section 25 be declared 13 invalid, then the remainder of those changes shall not remain 14 in effect. 15 (b) Except as set forth in subsection (a), the 16 provisions of this amendatory Act of the 91st General 17 Assembly are severable under Section 1.31 of the Statute on 18 Statutes. Without limiting the foregoing, it is the intent 19 of the General Assembly that should the provisions of Section 20 25 of this amendatory Act of the 91st General Assembly be 21 declared invalid, then the remainder of this Act shall remain 22 in effect. 23 Section 95. The State Mandates Act is amended by adding 24 Section 8.24 as follows: 25 (30 ILCS 805/8.24 new) 26 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6 27 and 8 of this Act, no reimbursement by the State is required 28 for the implementation of any mandate created by this 29 amendatory Act of the 91st General Assembly. 30 Section 99. Effective date. This Act takes effect upon HB1583 Enrolled -181- LRB9101658EGfg 1 becoming law.