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| [ Senate Amendment 002 ] |
91_HB1583sam001
LRB9101658EGfgam01
1 AMENDMENT TO HOUSE BILL 1583
2 AMENDMENT NO. . Amend House Bill 1583 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee benefits."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The State Employees Group Insurance Act of
8 1971 is amended by changing Section 6.10 as follows:
9 (5 ILCS 375/6.10)
10 Sec. 6.10. Contributions to the Community College Health
11 Insurance Security Fund.
12 (a) Beginning January 1, 1999, every active contributor
13 of the State Universities Retirement System (established
14 under Article 15 of the Illinois Pension Code) who (1) is a
15 full-time employee of a community college district (other
16 than a community college district subject to Article VII of
17 the Public Community College Act) or an association of
18 community college boards and (2) is not an employee as
19 defined in Section 3 of this Act shall make contributions
20 toward the cost of community college annuitant and survivor
21 health benefits at the rate of 0.50% of salary.
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1 These contributions shall be deducted by the employer and
2 paid to the State Universities Retirement System as service
3 agent for the Department of Central Management Services. The
4 System may use the same processes for collecting the
5 contributions required by this subsection that it uses to
6 collect the contributions received from those employees under
7 Section 15-157 of the Illinois Pension Code. An employer may
8 agree to pick up or pay the contributions required under this
9 subsection on behalf of the employee; such contributions
10 shall be deemed to have been paid by the employee.
11 A person required to make contributions under this
12 subsection (a) who purchases optional service credit under
13 Article 15 of the Illinois Pension Code must also pay the
14 contribution required under this subsection (a) with respect
15 to that optional service credit. This contribution must be
16 received by the System before that optional service credit is
17 granted.
18 The State Universities Retirement System shall promptly
19 deposit all moneys collected under this subsection (a) into
20 the Community College Health Insurance Security Fund created
21 in Section 6.9 of this Act. The moneys collected under this
22 Section shall be used only for the purposes authorized in
23 Section 6.9 of this Act and shall not be considered to be
24 assets of the State Universities Retirement System.
25 Contributions made under this Section are not transferable to
26 other pension funds or retirement systems and are not
27 refundable upon termination of service.
28 (b) Beginning January 1, 1999, every community college
29 district (other than a community college district subject to
30 Article VII of the Public Community College Act) or
31 association of community college boards that is an employer
32 under the State Universities Retirement System shall
33 contribute toward the cost of the community college health
34 benefits provided under Section 6.9 of this Act an amount
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1 equal to 0.50% of the salary paid to its full-time employees
2 who participate in the State Universities Retirement System
3 and are not members as defined in Section 3 of this Act.
4 These contributions shall be paid by the employer to the
5 State Universities Retirement System as service agent for the
6 Department of Central Management Services. The System may
7 use the same processes for collecting the contributions
8 required by this subsection that it uses to collect the
9 contributions received from those employers under Section
10 15-155 of the Illinois Pension Code.
11 The State Universities Retirement System shall promptly
12 deposit all moneys collected under this subsection (b) into
13 the Community College Health Insurance Security Fund created
14 in Section 6.9 of this Act. The moneys collected under this
15 Section shall be used only for the purposes authorized in
16 Section 6.9 of this Act and shall not be considered to be
17 assets of the State Universities Retirement System.
18 Contributions made under this Section are not transferable to
19 other pension funds or retirement systems and are not
20 refundable upon termination of service.
21 (c) On or before November 15 of each year, the Board of
22 Trustees of the State Universities Retirement System shall
23 certify to the Governor, the Director of Central Management
24 Services, and the State Comptroller its estimate of the total
25 amount of contributions to be paid under subsection (a) of
26 this Section for the next fiscal year. The certification
27 shall include a detailed explanation of the methods and
28 information that the Board relied upon in preparing its
29 estimate. As soon as possible after the effective date of
30 this Section, the Board shall submit its estimate for fiscal
31 year 1999.
32 (d) Beginning in fiscal year 1999, on the first day of
33 each month, or as soon thereafter as may be practical, the
34 State Treasurer and the State Comptroller shall transfer from
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1 the General Revenue Fund to the Community College Health
2 Insurance Security Fund 1/12 of the annual amount
3 appropriated for that fiscal year to the State Comptroller
4 for deposit into the Community College Health Insurance
5 Security Fund under Section 1.4 of the State Pension Funds
6 Continuing Appropriation Act.
7 (e) Except where otherwise specified in this Section,
8 the definitions that apply to Article 15 of the Illinois
9 Pension Code apply to this Section.
10 (Source: P.A. 90-497, eff. 8-18-97.)
11 Section 10. The Illinois Pension Code is amended by
12 changing Sections 1-113.2, 1-116, 2-121, 2-121.1, 3-110,
13 7-139, 7-141, 7-141.1, 7-145.1, 7-157, 7-164, 7-166, 7-167,
14 7-184, 7-211, 8-125, 8-139, 8-153, 8-171, 8-244, 9-149,
15 9-194, 11-124, 11-134.2, 11-148, 11-167, 11-181, 11-182,
16 11-223, 13-303, 13-309, 13-310, 13-311, 13-314, 13-603,
17 14-118, 14-120, 14-128, 14-130, 15-107, 15-111, 15-112,
18 15-120, 15-134.5, 15-136.4, 15-139, 15-140, 15-141, 15-142,
19 15-144, 15-145, 15-154, 15-158.2, 15-181, 16-133, 16-135,
20 16-136.4, 16-138, 16-140, 16-143, 16-149.4, 16-184, 17-106,
21 17-117, 17-133, 17-150, 18-128, 20-121, 20-123, 20-124,
22 20-125, and 20-131 and adding Sections 1-120, 7-224, and
23 15-132.2 as follows:
24 (40 ILCS 5/1-113.2)
25 Sec. 1-113.2. List of permitted investments for all
26 Article 3 or 4 pension funds. Any pension fund established
27 under Article 3 or 4 may invest in the following items:
28 (1) Interest bearing direct obligations of the United
29 States of America.
30 (2) Interest bearing obligations to the extent that they
31 are fully guaranteed or insured as to payment of principal
32 and interest by the United States of America.
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1 (3) Interest bearing bonds, notes, debentures, or other
2 similar obligations of agencies of the United States of
3 America. For the purposes of this Section, "agencies of the
4 United States of America" includes: (i) the Federal National
5 Mortgage Association and the Student Loan Marketing
6 Association; (ii) federal land banks, federal intermediate
7 credit banks, federal farm credit banks, and any other entity
8 authorized to issue direct debt obligations of the United
9 States of America under the Farm Credit Act of 1971 or
10 amendments to that Act; (iii) federal home loan banks and the
11 Federal Home Loan Mortgage Corporation; and (iv) any agency
12 created by Act of Congress that is authorized to issue direct
13 debt obligations of the United States of America.
14 (4) Interest bearing savings accounts or certificates of
15 deposit, issued by federally chartered banks or savings and
16 loan associations, to the extent that the deposits are
17 insured by agencies or instrumentalities of the federal
18 government.
19 (5) Interest bearing savings accounts or certificates of
20 deposit, issued by State of Illinois chartered banks or
21 savings and loan associations, to the extent that the
22 deposits are insured by agencies or instrumentalities of the
23 federal government.
24 (6) Investments in credit unions, to the extent that the
25 investments are insured by agencies or instrumentalities of
26 the federal government.
27 (7) Interest bearing bonds of the State of Illinois.
28 (8) Pooled interest bearing accounts managed by the
29 Illinois Public Treasurer's Investment Pool in accordance
30 with the Deposit of State Moneys Act and interest bearing
31 funds or pooled accounts managed, operated, and administered
32 by banks, subsidiaries of banks, or subsidiaries of bank
33 holding companies in accordance with the laws of the State of
34 Illinois.
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1 (9) Interest bearing bonds or tax anticipation warrants
2 of any county, township, or municipal corporation of the
3 State of Illinois.
4 (10) Direct obligations of the State of Israel, subject
5 to the conditions and limitations of item (5.1) of Section
6 1-113.
7 (11) Money market mutual funds managed by investment
8 companies that are registered under the federal Investment
9 Company Act of 1940 and the Illinois Securities Law of 1953
10 and are diversified, open-ended management investment
11 companies; provided that the portfolio of the money market
12 mutual fund is limited to the following:
13 (i) bonds, notes, certificates of indebtedness,
14 treasury bills, or other securities that are guaranteed
15 by the full faith and credit of the United States of
16 America as to principal and interest;
17 (ii) bonds, notes, debentures, or other similar
18 obligations of the United States of America or its
19 agencies; and
20 (iii) short term obligations of corporations
21 organized in the United States with assets exceeding
22 $400,000,000, provided that (A) the obligations mature no
23 later than 180 days from the date of purchase, (B) at the
24 time of purchase, the obligations are rated by at least 2
25 standard national rating services at one of their 3
26 highest classifications, and (C) the obligations held by
27 the mutual fund do not exceed 10% of the corporation's
28 outstanding obligations.
29 (12) General accounts of life insurance companies
30 authorized to transact business in Illinois.
31 (13) Any combination of the following, not to exceed 10%
32 of the pension fund's net assets:
33 (i) separate accounts that are managed by life
34 insurance companies authorized to transact business in
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1 Illinois and are comprised of diversified portfolios
2 consisting of common or preferred stocks, bonds, or money
3 market instruments; and
4 (ii) separate accounts that are managed by
5 insurance companies authorized to transact business in
6 Illinois, and are comprised of real estate or loans upon
7 real estate secured by first or second mortgages; and
8 (iii) mutual funds that meet the following
9 requirements:
10 (A) the mutual fund is managed by an
11 investment company as defined and registered under
12 the federal Investment Company Act of 1940 and
13 registered under the Illinois Securities Law of
14 1953;
15 (B) the mutual fund has been in operation for
16 at least 5 years;
17 (C) the mutual fund has total net assets of
18 $250 million or more; and
19 (D) the mutual fund is comprised of
20 diversified portfolios of common or preferred
21 stocks, bonds, or money market instruments.
22 (Source: P.A. 90-507, eff. 8-22-97.)
23 (40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
24 Sec. 1-116. Federal contribution and benefit limitations
25 limitation.
26 (a) This Section applies to all pension funds and
27 retirement systems established under this Code.
28 (a-5) All pension funds and retirement systems
29 established under this Code shall comply with the applicable
30 contribution and benefit limitations imposed by Section 415
31 of the U.S. Internal Revenue Code of 1986 for tax qualified
32 plans under Section 401(a) of that Code.
33 (b) If any benefit payable by a pension fund or
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1 retirement system subject to this Section exceeds the
2 applicable benefit limits set by Section 415 of the U.S.
3 Internal Revenue Code of 1986 for tax qualified plans under
4 Section 401(a) of that Code, the excess shall be payable only
5 from an excess benefit fund established under this Section in
6 accordance with federal law.
7 (c) An excess benefit fund shall be established by any
8 pension fund or retirement system subject to this Section
9 that has any member eligible to receive a benefit that
10 exceeds the applicable benefit limits set by Section 415 of
11 the U.S. Internal Revenue Code of 1986 for tax qualified
12 plans under Section 401(a) of that Code. Amounts shall be
13 credited to the excess benefit fund, and payments for excess
14 benefits made from the excess benefit fund, in a manner
15 consistent with the applicable federal law.
16 (d) For purposes of matters relating to the benefit
17 limits set by Section 415 of the U.S. Internal Revenue Code
18 of 1986, the limitation year may be defined by each affected
19 pension fund or retirement system for that fund or system.
20 (Source: P.A. 90-19, eff. 6-20-97.)
21 (40 ILCS 5/1-120 new)
22 Sec. 1-120. Payment to trust.
23 (a) If a person is a minor or has been determined by a
24 court to be under a legal disability, any benefits payable to
25 that person under this Code may be paid to the trustee of a
26 trust created for the sole benefit of that person while the
27 person is living, if the trustee of the trust has advised the
28 board of trustees of the pension fund or retirement system in
29 writing that the benefits will be held or used for the sole
30 benefit of that person. The pension fund or retirement
31 system shall not be required to determine the validity of the
32 trust or of any of the terms of the trust. The
33 representation of the trustee that the trust meets the
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1 requirements of this Section shall be conclusive as to the
2 pension fund or retirement system. Payment of benefits to
3 the trust shall be an absolute discharge of the pension fund
4 or retirement system's liability with respect to the amounts
5 so paid.
6 (b) For purposes of this Section, "minor" means an
7 unmarried person under the age of 18.
8 (c) This Section is not a limitation on any other power
9 to pay benefits to or on behalf of a minor or person under
10 legal disability that is granted under this Code or other
11 applicable law.
12 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
13 Sec. 2-121. Survivor's annuity - conditions for payment.
14 (a) A survivor's annuity shall be payable to a surviving
15 spouse or eligible child (1) upon the death in service of a
16 participant with at least 2 years of service credit, or (2)
17 upon the death of an annuitant in receipt of a retirement
18 annuity, or (3) upon the death of a participant who
19 terminated service with at least 4 years of service credit.
20 The change in this subsection (a) made by this amendatory
21 Act of 1995 applies to survivors of participants who die on
22 or after December 1, 1994, without regard to whether or not
23 the participant was in service on or after the effective date
24 of this amendatory Act of 1995.
25 (b) To be eligible for the survivor's annuity, the
26 spouse and the participant or annuitant must have been
27 married for a continuous period of at least one year
28 immediately preceding the date of death, but need not have
29 been married on the day of the participant's last termination
30 of service, regardless of whether such termination occurred
31 prior to the effective date of this amendatory Act of 1985.
32 (c) The annuity shall be payable beginning on the date
33 of a participant's death, or the first of the month following
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1 an annuitant's death, if the spouse is then age 50 or over,
2 or beginning at age 50 if the spouse is then under age 50.
3 If an eligible child or children of the participant or
4 annuitant (or a child or children of the eligible spouse
5 meeting the criteria of item (1), (2), or (3) of subsection
6 (d) of this Section) also survive, and the child or children
7 are under the care of the eligible spouse, the annuity shall
8 begin as of the date of a participant's death, or the first
9 of the month following an annuitant's death, without regard
10 to the spouse's age.
11 The change to this subsection made by this amendatory Act
12 of 1998 (relating to children of an eligible spouse) applies
13 to the eligible spouse of a participant or annuitant who dies
14 on or after the effective date of this amendatory Act,
15 without regard to whether the participant or annuitant is in
16 service on or after that effective date.
17 (d) For the purposes of this Section and Section
18 2-121.1, "eligible child" means a child of the deceased
19 participant or annuitant who is at least one of the
20 following:
21 (1) unmarried and under the age of 18;
22 (2) unmarried, a full-time student, and under the
23 age of 22;
24 (3) dependent by reason of physical or mental
25 disability.
26 The inclusion of unmarried students under age 22 in the
27 calculation of survivor's annuities by this amendatory Act of
28 1991 shall apply to all eligible students beginning January
29 1, 1992, without regard to whether the deceased participant
30 or annuitant was in service on or after the effective date of
31 this amendatory Act of 1991.
32 Adopted children shall have the same status as children
33 of the participant or annuitant, but only if the proceedings
34 for adoption are commenced at least one year prior to the
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1 date of the participant's or annuitant's death.
2 (e) Remarriage of a surviving spouse prior to attainment
3 of age 55 shall disqualify the surviving spouse from the
4 receipt of a survivor's annuity, if the remarriage occurs
5 before the effective date of this amendatory Act of the 91st
6 General Assembly.
7 The changes made to this subsection by this amendatory
8 Act of the 91st General Assembly (pertaining to remarriage
9 prior to age 55) apply without regard to whether the deceased
10 participant or annuitant was in service on or after the
11 effective date of this amendatory Act.
12 (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)
13 (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
14 Sec. 2-121.1. Survivor's annuity - amount.
15 (a) A surviving spouse shall be entitled to 66 2/3% of
16 the amount of retirement annuity to which the participant or
17 annuitant was entitled on the date of death, without regard
18 to whether the participant had attained age 55 prior to his
19 or her death, subject to a minimum payment of 10% of salary.
20 If a surviving spouse, regardless of age, has in his or her
21 care at the date of death any eligible child or children of
22 the participant, the survivor's annuity shall be the greater
23 of the following: (1) 66 2/3% of the amount of retirement
24 annuity to which the participant or annuitant was entitled on
25 the date of death, or (2) 30% of the participant's salary
26 increased by 10% of salary on account of each such child,
27 subject to a total payment for the surviving spouse and
28 children of 50% of salary. If eligible children survive but
29 there is no surviving spouse, or if the surviving spouse
30 remarries or dies or becomes disqualified by remarriage while
31 eligible children survive, each eligible child shall be
32 entitled to an annuity of 20% of salary, subject to a maximum
33 total payment for all such children of 50% of salary.
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1 However, the survivor's annuity payable under this
2 Section shall not be less than 100% of the amount of
3 retirement annuity to which the participant or annuitant was
4 entitled on the date of death, if he or she is survived by a
5 dependent disabled child.
6 The salary to be used for determining these benefits
7 shall be the salary used for determining the amount of
8 retirement annuity as provided in Section 2-119.01.
9 (b) Upon the death of a participant after the
10 termination of service or upon death of an annuitant, the
11 maximum total payment to a surviving spouse and eligible
12 children, or to eligible children alone if there is no
13 surviving spouse, shall be 75% of the retirement annuity to
14 which the participant or annuitant was entitled, unless there
15 is a dependent disabled child among the survivors.
16 (c) When a child ceases to be an eligible child, the
17 annuity to that child, or to the surviving spouse on account
18 of that child, shall thereupon cease, and the annuity payable
19 to the surviving spouse or other eligible children shall be
20 recalculated if necessary.
21 Upon the ineligibility of the last eligible child, the
22 annuity shall immediately revert to the amount payable upon
23 death of a participant or annuitant who leaves no eligible
24 children. If the surviving spouse is then under age 50, the
25 annuity as revised shall be deferred until the attainment of
26 age 50.
27 (d) Beginning January 1, 1990, every survivor's annuity
28 shall be increased (1) on each January 1 occurring on or
29 after the commencement of the annuity if the deceased member
30 died while receiving a retirement annuity, or (2) in other
31 cases, on each January 1 occurring on or after the first
32 anniversary of the commencement of the annuity, by an amount
33 equal to 3% of the current amount of the annuity, including
34 any previous increases under this Article. Such increases
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1 shall apply without regard to whether the deceased member was
2 in service on or after the effective date of this amendatory
3 Act of 1991, but shall not accrue for any period prior to
4 January 1, 1990.
5 (e) Notwithstanding any other provision of this Article,
6 beginning January 1, 1990, the minimum survivor's annuity
7 payable to any person who is entitled to receive a survivor's
8 annuity under this Article shall be $300 per month, without
9 regard to whether or not the deceased participant was in
10 service on the effective date of this amendatory Act of 1989.
11 (f) In the case of a proportional survivor's annuity
12 arising under the Retirement Systems Reciprocal Act where the
13 amount payable by the System on January 1, 1993 is less than
14 $300 per month, the amount payable by the System shall be
15 increased beginning on that date by a monthly amount equal to
16 $2 for each full year that has expired since the annuity
17 began.
18 (Source: P.A. 86-273; 86-1488; 87-794; 87-1265.)
19 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
20 Sec. 3-110. Creditable service.
21 (a) "Creditable service" is the time served by a police
22 officer as a member of a regularly constituted police force
23 of a municipality. In computing creditable service furloughs
24 without pay exceeding 30 days shall not be counted, but all
25 leaves of absence for illness or accident, regardless of
26 length, and all periods of disability retirement for which a
27 police officer has received no disability pension payments
28 under this Article shall be counted.
29 (b) Creditable service includes all periods of service
30 in the military, naval or air forces of the United States
31 entered upon while an active police officer of a
32 municipality, provided that upon applying for a permanent
33 pension, and in accordance with the rules of the board, the
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1 police officer pays into the fund the amount the officer
2 would have contributed if he or she had been a regular
3 contributor during such period, to the extent that the
4 municipality which the police officer served has not made
5 such contributions in the officer's behalf. The total amount
6 of such creditable service shall not exceed 5 years, except
7 that any police officer who on July 1, 1973 had more than 5
8 years of such creditable service shall receive the total
9 amount thereof.
10 (c) Creditable service also includes service rendered by
11 a police officer while on leave of absence from a police
12 department to serve as an executive of an organization whose
13 membership consists of members of a police department,
14 subject to the following conditions: (i) the police officer
15 is a participant of a fund established under this Article
16 with at least 10 years of service as a police officer; (ii)
17 the police officer received no credit for such service under
18 any other retirement system, pension fund, or annuity and
19 benefit fund included in this Code; (iii) pursuant to the
20 rules of the board the police officer pays to the fund the
21 amount he or she would have contributed had the officer been
22 an active member of the police department; and (iv) the
23 organization pays a contribution equal to the municipality's
24 normal cost for that period of service.
25 (d)(1) Creditable service also includes periods of
26 service originally established in another police pension fund
27 under this Article or in the Fund established under Article 7
28 of this Code for which (i) the contributions have been
29 transferred under Section 3-110.7 or Section 7-139.9 and (ii)
30 any additional contribution required under paragraph (2) of
31 this subsection has been paid in full in accordance with the
32 requirements of this subsection (d).
33 (2) If the board of the pension fund to which creditable
34 service and related contributions are transferred under
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1 Section 3-110.7 or 7-139.9 determines that the amount
2 transferred is less than the true cost to the pension fund of
3 allowing that creditable service to be established, then in
4 order to establish that creditable service the police officer
5 must pay to the pension fund, within the payment period
6 specified in paragraph (3) of this subsection, an additional
7 contribution equal to the difference, as determined by the
8 board in accordance with the rules and procedures adopted
9 under paragraph (6) of this subsection.
10 (3) Except as provided in paragraph (4), the additional
11 contribution must be paid to the board (i) within 5 years
12 from the date of the transfer of contributions under Section
13 3-110.7 or 7-139.9 and (ii) before the police officer
14 terminates service with the fund. The additional
15 contribution may be paid in a lump sum or in accordance with
16 a schedule of installment payments authorized by the board.
17 (4) If the police officer dies in service before payment
18 in full has been made and before the expiration of the 5-year
19 payment period, the surviving spouse of the officer may elect
20 to pay the unpaid amount on the officer's behalf within 6
21 months after the date of death, in which case the creditable
22 service shall be granted as though the deceased police
23 officer had paid the remaining balance on the day before the
24 date of death.
25 (5) If the additional contribution is not paid in full
26 within the required time, the creditable service shall not be
27 granted and the police officer (or the officer's surviving
28 spouse or estate) shall be entitled to receive a refund of
29 (i) any partial payment of the additional contribution that
30 has been made by the police officer and (ii) those portions
31 of the amounts transferred under subdivision (a)(1) of
32 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
33 7-139.9 that represent employee contributions paid by the
34 police officer (but not the accumulated interest on those
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1 contributions) and interest paid by the police officer to the
2 prior pension fund in order to reinstate service terminated
3 by acceptance of a refund.
4 At the time of paying a refund under this item (5), the
5 pension fund shall also repay to the pension fund from which
6 the contributions were transferred under Section 3-110.7 or
7 7-139.9 the amount originally transferred under subdivision
8 (a)(2) of that Section, plus interest at the rate of 6% per
9 year, compounded annually, from the date of the original
10 transfer to the date of repayment. Amounts repaid to the
11 Article 7 fund under this provision shall be credited to the
12 appropriate municipality.
13 Transferred credit that is not granted due to failure to
14 pay the additional contribution within the required time is
15 lost; it may not be transferred to another pension fund and
16 may not be reinstated in the pension fund from which it was
17 transferred.
18 (6) The Public Employee Pension Fund Division of the
19 Department of Insurance shall establish by rule the manner of
20 making the calculation required under paragraph (2) of this
21 subsection, taking into account the appropriate actuarial
22 assumptions; the police officer's service, age, and salary
23 history; the level of funding of the pension fund to which
24 the credits are being transferred; and any other factors that
25 the Division determines to be relevant. The rules may
26 require that all calculations made under paragraph (2) be
27 reported to the Division by the board performing the
28 calculation, together with documentation of the creditable
29 service to be transferred, the amounts of contributions and
30 interest to be transferred, the manner in which the
31 calculation was performed, the numbers relied upon in making
32 the calculation, the results of the calculation, and any
33 other information the Division may deem useful.
34 (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
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1 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
2 Sec. 7-139. Credits and creditable service to employees.
3 (a) Each participating employee shall be granted credits
4 and creditable service, for purposes of determining the
5 amount of any annuity or benefit to which he or a beneficiary
6 is entitled, as follows:
7 1. For prior service: Each participating employee
8 who is an employee of a participating municipality or
9 participating instrumentality on the effective date shall
10 be granted creditable service, but no credits under
11 paragraph 2 of this subsection (a), for periods of prior
12 service for which credit has not been received under any
13 other pension fund or retirement system established under
14 this Code, as follows:
15 If the effective date of participation for the
16 participating municipality or participating
17 instrumentality is on or before January 1, 1998,
18 creditable service shall be granted for the entire period
19 of prior service with that employer without any employee
20 contribution.
21 If the effective date of participation for the
22 participating municipality or participating
23 instrumentality is after January 1, 1998, creditable
24 service shall be granted for the last 20% of the period
25 of prior service with that employer, but no more than 5
26 years, without any employee contribution. A
27 participating employee may establish creditable service
28 for the remainder of the period of prior service with
29 that employer by making an application in writing,
30 accompanied by payment of an employee contribution in an
31 amount determined by the Fund, based on the employee
32 contribution rates in effect at the time of application
33 for the creditable service and the employee's salary rate
34 on the effective date of participation for that employer,
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1 plus interest at the effective rate from the date of the
2 prior service to the date of payment. Application for
3 this creditable service may be made at any time while the
4 employee is still in service.
5 Any person who has withdrawn from the service of a
6 participating municipality or participating
7 instrumentality prior to the effective date, who reenters
8 the service of the same municipality or participating
9 instrumentality after the effective date and becomes a
10 participating employee is entitled to creditable service
11 for prior service as otherwise provided in this
12 subdivision (a)(1) only if he or she renders 2 years of
13 service as a participating employee after the effective
14 date. Application for such service must be made while in
15 a participating status. The salary rate to be used in
16 the calculation of the required employee contribution, if
17 any, shall be the employee's salary rate at the time of
18 first reentering service with the employer after the
19 employer's effective date of participation.
20 2. For current service, each participating employee
21 shall be credited with:
22 a. Additional credits of amounts equal to each
23 payment of additional contributions received from
24 him under Section 7-173, as of the date the
25 corresponding payment of earnings is payable to him.
26 b. Normal credits of amounts equal to each
27 payment of normal contributions received from him,
28 as of the date the corresponding payment of earnings
29 is payable to him, and normal contributions made for
30 the purpose of establishing out-of-state service
31 credits as permitted under the conditions set forth
32 in paragraph 6 of this subsection (a).
33 c. Municipality credits in an amount equal to
34 1.4 times the normal credits, except those
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1 established by out-of-state service credits, as of
2 the date of computation of any benefit if these
3 credits would increase the benefit.
4 d. Survivor credits equal to each payment of
5 survivor contributions received from the
6 participating employee as of the date the
7 corresponding payment of earnings is payable, and
8 survivor contributions made for the purpose of
9 establishing out-of-state service credits.
10 3. For periods of temporary and total and permanent
11 disability benefits, each employee receiving disability
12 benefits shall be granted creditable service for the
13 period during which disability benefits are payable.
14 Normal and survivor credits, based upon the rate of
15 earnings applied for disability benefits, shall also be
16 granted if such credits would result in a higher benefit
17 to any such employee or his beneficiary.
18 4. For authorized leave of absence without pay: A
19 participating employee shall be granted credits and
20 creditable service for periods of authorized leave of
21 absence without pay under the following conditions:
22 a. An application for credits and creditable
23 service is submitted to the board while the employee
24 is in a status of active employment, and within 2
25 years after termination of the leave of absence
26 period for which credits and creditable service are
27 sought.
28 b. Not more than 12 complete months of
29 creditable service for authorized leave of absence
30 without pay shall be counted for purposes of
31 determining any benefits payable under this Article.
32 c. Credits and creditable service shall be
33 granted for leave of absence only if such leave is
34 approved by the governing body of the municipality,
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1 including approval of the estimated cost thereof to
2 the municipality as determined by the fund, and
3 employee contributions, plus interest at the
4 effective rate applicable for each year from the end
5 of the period of leave to date of payment, have been
6 paid to the fund in accordance with Section 7-173.
7 The contributions shall be computed upon the
8 assumption earnings continued during the period of
9 leave at the rate in effect when the leave began.
10 d. Benefits under the provisions of Sections
11 7-141, 7-146, 7-150 and 7-163 shall become payable
12 to employees on authorized leave of absence, or
13 their designated beneficiary, only if such leave of
14 absence is creditable hereunder, and if the employee
15 has at least one year of creditable service other
16 than the service granted for leave of absence. Any
17 employee contributions due may be deducted from any
18 benefits payable.
19 e. No credits or creditable service shall be
20 allowed for leave of absence without pay during any
21 period of prior service.
22 5. For military service: The governing body of a
23 municipality or participating instrumentality may elect
24 to allow creditable service to participating employees
25 who leave their employment to serve in the armed forces
26 of the United States for all periods of such service,
27 provided that the person returns to active employment
28 within 90 days after completion of full time active duty,
29 but no creditable service shall be allowed such person
30 for any period that can be used in the computation of a
31 pension or any other pay or benefit, other than pay for
32 active duty, for service in any branch of the armed
33 forces of the United States. If necessary to the
34 computation of any benefit, the board shall establish
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1 municipality credits for participating employees under
2 this paragraph on the assumption that the employee
3 received earnings at the rate received at the time he
4 left the employment to enter the armed forces. A
5 participating employee in the armed forces shall not be
6 considered an employee during such period of service and
7 no additional death and no disability benefits are
8 payable for death or disability during such period.
9 Any participating employee who left his employment
10 with a municipality or participating instrumentality to
11 serve in the armed forces of the United States and who
12 again became a participating employee within 90 days
13 after completion of full time active duty by entering the
14 service of a different municipality or participating
15 instrumentality, which has elected to allow creditable
16 service for periods of military service under the
17 preceding paragraph, shall also be allowed creditable
18 service for his period of military service on the same
19 terms that would apply if he had been employed, before
20 entering military service, by the municipality or
21 instrumentality which employed him after he left the
22 military service and the employer costs arising in
23 relation to such grant of creditable service shall be
24 charged to and paid by that municipality or
25 instrumentality.
26 Notwithstanding the foregoing, any participating
27 employee shall be entitled to creditable service as
28 required by any federal law relating to re-employment
29 rights of persons who served in the United States Armed
30 Services. Such creditable service shall be granted upon
31 payment by the member of an amount equal to the employee
32 contributions which would have been required had the
33 employee continued in service at the same rate of
34 earnings during the military leave period, plus interest
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1 at the effective rate.
2 5.1. In addition to any creditable service
3 established under paragraph 5 of this subsection (a),
4 creditable service may be granted for up to 24 months of
5 service in the armed forces of the United States.
6 In order to receive creditable service for military
7 service under this paragraph 5.1, a participating
8 employee must (1) apply to the Fund in writing and
9 provide evidence of the military service that is
10 satisfactory to the Board; (2) obtain the written
11 approval of the current employer; and (3) make
12 contributions to the Fund equal to (i) the employee
13 contributions that would have been required had the
14 service been rendered as a member, plus (ii) an amount
15 determined by the board to be equal to the employer's
16 normal cost of the benefits accrued for that military
17 service, plus (iii) interest on items (i) and (ii) from
18 the date of first membership in the Fund to the date of
19 payment. If payment is made during the 6-month period
20 that begins 3 months after the effective date of this
21 amendatory Act of 1997, the required interest shall be at
22 the rate of 2.5% per year, compounded annually;
23 otherwise, the required interest shall be calculated at
24 the regular interest rate.
25 6. For out-of-state service: Creditable service
26 shall be granted for service rendered to an out-of-state
27 local governmental body under the following conditions:
28 The employee had participated and has irrevocably
29 forfeited all rights to benefits in the out-of-state
30 public employees pension system; the governing body of
31 his participating municipality or instrumentality
32 authorizes the employee to establish such service; the
33 employee has 2 years current service with this
34 municipality or participating instrumentality; the
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1 employee makes a payment of contributions, which shall be
2 computed at 8% (normal) plus 2% (survivor) times length
3 of service purchased times the average rate of earnings
4 for the first 2 years of service with the municipality or
5 participating instrumentality whose governing body
6 authorizes the service established plus interest at the
7 effective rate on the date such credits are established,
8 payable from the date the employee completes the required
9 2 years of current service to date of payment. In no
10 case shall more than 120 months of creditable service be
11 granted under this provision.
12 7. For retroactive service: Any employee who could
13 have but did not elect to become a participating
14 employee, or who should have been a participant in the
15 Municipal Public Utilities Annuity and Benefit Fund
16 before that fund was superseded, may receive creditable
17 service for the period of service not to exceed 50
18 months; however, a current or former county board member
19 may establish credit under this paragraph 7 for more than
20 50 months of service as a member of the county board if
21 the excess over 50 months is approved by resolution of
22 the affected county board filed with the Fund before
23 January 1, 1999.
24 Any employee who is a participating employee on or
25 after September 24, 1981 and who was excluded from
26 participation by the age restrictions removed by Public
27 Act 82-596 may receive creditable service for the period,
28 on or after January 1, 1979, excluded by the age
29 restriction and, in addition, if the governing body of
30 the participating municipality or participating
31 instrumentality elects to allow creditable service for
32 all employees excluded by the age restriction prior to
33 January 1, 1979, for service during the period prior to
34 that date excluded by the age restriction. Any employee
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1 who was excluded from participation by the age
2 restriction removed by Public Act 82-596 and who is not a
3 participating employee on or after September 24, 1981 may
4 receive creditable service for service after January 1,
5 1979. Creditable service under this paragraph shall be
6 granted upon payment of the employee contributions which
7 would have been required had he participated, with
8 interest at the effective rate for each year from the end
9 of the period of service established to date of payment.
10 8. For accumulated unused sick leave: A
11 participating employee who is applying for a retirement
12 annuity shall be entitled to creditable service for that
13 portion of the employee's accumulated unused sick leave
14 for which payment is not received, as follows:
15 a. Sick leave days shall be limited to those
16 accumulated under a sick leave plan established by a
17 participating municipality or participating
18 instrumentality which is available to all employees
19 or a class of employees.
20 b. Only sick leave days accumulated with a
21 participating municipality or participating
22 instrumentality with which the employee was in
23 service within 60 days of the effective date of his
24 retirement annuity shall be credited; If the
25 employee was in service with more than one employer
26 during this period only the sick leave days with the
27 employer with which the employee has the greatest
28 number of unpaid sick leave days shall be
29 considered.
30 c. The creditable service granted shall be
31 considered solely for the purpose of computing the
32 amount of the retirement annuity and shall not be
33 used to establish any minimum service period
34 required by any provision of the Illinois Pension
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1 Code, the effective date of the retirement annuity,
2 or the final rate of earnings.
3 d. The creditable service shall be at the rate
4 of 1/20 of a month for each full sick day, provided
5 that no more than 12 months may be credited under
6 this subdivision 8.
7 e. Employee contributions shall not be
8 required for creditable service under this
9 subdivision 8.
10 f. Each participating municipality and
11 participating instrumentality with which an employee
12 has service within 60 days of the effective date of
13 his retirement annuity shall certify to the board
14 the number of accumulated unpaid sick leave days
15 credited to the employee at the time of termination
16 of service.
17 9. For service transferred from another system:
18 Credits and creditable service shall be granted for
19 service under Article 3, 4, 5, 14 or 16 of this Act, to
20 any active member of this Fund, and to any inactive
21 member who has been a county sheriff, upon transfer of
22 such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
23 14-105.6 or 16-131.4, and payment by the member of the
24 amount by which (1) the employer and employee
25 contributions that would have been required if he had
26 participated in this Fund as a sheriff's law enforcement
27 employee during the period for which credit is being
28 transferred, plus interest thereon at the effective rate
29 for each year, compounded annually, from the date of
30 termination of the service for which credit is being
31 transferred to the date of payment, exceeds (2) the
32 amount actually transferred to the Fund. Such transferred
33 service shall be deemed to be service as a sheriff's law
34 enforcement employee for the purposes of Section 7-142.1.
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1 (b) Creditable service - amount:
2 1. One month of creditable service shall be allowed
3 for each month for which a participating employee made
4 contributions as required under Section 7-173, or for
5 which creditable service is otherwise granted hereunder.
6 Not more than 1 month of service shall be credited and
7 counted for 1 calendar month, and not more than 1 year of
8 service shall be credited and counted for any calendar
9 year. A calendar month means a nominal month beginning
10 on the first day thereof, and a calendar year means a
11 year beginning January 1 and ending December 31.
12 2. A seasonal employee shall be given 12 months of
13 creditable service if he renders the number of months of
14 service normally required by the position in a 12-month
15 period and he remains in service for the entire 12-month
16 period. Otherwise a fractional year of service in the
17 number of months of service rendered shall be credited.
18 3. An intermittent employee shall be given
19 creditable service for only those months in which a
20 contribution is made under Section 7-173.
21 (c) No application for correction of credits or
22 creditable service shall be considered unless the board
23 receives an application for correction while (1) the
24 applicant is a participating employee and in active
25 employment with a participating municipality or
26 instrumentality, or (2) while the applicant is actively
27 participating in a pension fund or retirement system which is
28 a participating system under the Retirement Systems
29 Reciprocal Act. A participating employee or other applicant
30 shall not be entitled to credits or creditable service unless
31 the required employee contributions are made in a lump sum or
32 in installments made in accordance with board rule.
33 (d) Upon the granting of a retirement, surviving spouse
34 or child annuity, a death benefit or a separation benefit, on
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1 account of any employee, all individual accumulated credits
2 shall thereupon terminate. Upon the withdrawal of additional
3 contributions, the credits applicable thereto shall thereupon
4 terminate. Terminated credits shall not be applied to
5 increase the benefits any remaining employee would otherwise
6 receive under this Article.
7 (Source: P.A. 90-448, eff. 8-16-97.)
8 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
9 Sec. 7-141. Retirement annuities - Conditions.
10 Retirement annuities shall be payable as hereinafter set
11 forth:
12 (a) A participating employee who, regardless of cause,
13 is separated from the service of all participating
14 municipalities and instrumentalities thereof and
15 participating instrumentalities shall be entitled to a
16 retirement annuity provided:
17 1. He is at least age 55, or in the case of a person who
18 is eligible to have his annuity calculated under Section
19 7-142.1, he is at least age 50;
20 2. He is (i) an employee who was employed by any
21 participating municipality or participating instrumentality
22 which had not elected to exclude persons employed in
23 positions normally requiring performance of duty for less
24 than 1000 hours per year or was employed in a position
25 normally requiring performance of duty for 600 hours or more
26 per year prior to such election by any participating
27 municipality or participating instrumentality included in and
28 subject to this Article on or before the effective date of
29 this amendatory Act of 1981 which made such election and is
30 not entitled to receive earnings for employment in a position
31 normally requiring performance of duty for 600 hours or more
32 per year for any participating municipality and
33 instrumentalities thereof and participating instrumentality;
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1 or (ii) an employee who was employed only by a participating
2 municipality or participating instrumentality, or
3 participating municipalities or participating
4 instrumentalities, which have elected to exclude persons in
5 positions normally requiring performance of duty for less
6 than 1000 hours per year after the effective date of such
7 exclusion or which are included under and subject to the
8 Article after the effective date of this amendatory Act of
9 1981 and elects to exclude persons in such positions, and is
10 not entitled to receive earnings for employment in a position
11 normally requiring performance of duty for 1000 hours or more
12 per year by such a participating municipality or
13 participating instrumentality;
14 3. The amount of his annuity, before the application of
15 paragraph (b) of Section 7-142 is at least $10 per month;
16 4. If he first became a participating employee after
17 December 31, 1961, he has at least 8 years of service. This
18 service requirement shall not apply to any participating
19 employee, regardless of participation date, if the General
20 Assembly terminates the Fund.
21 (b) Retirement annuities shall be payable:
22 1. As provided in Section 7-119;
23 2. Except as provided in item 3, upon receipt by the
24 fund of a written application by the board. The effective
25 date may be not more than one year prior to the date of the
26 receipt by the fund of the application;
27 3. Upon attainment of age 70 1/2 if (i) the member (i)
28 has not submitted an application for the annuity, (ii) the
29 member has at least 8 years of service credit and is no
30 longer in service, and (ii) is otherwise entitled to an
31 annuity under this Article (iii) the pension amount is at
32 least $30 per month, and (iv) the Fund is able to locate the
33 member;
34 4. To the beneficiary of the deceased annuitant for the
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1 unpaid amount accrued to date of death, if any.
2 (Source: P.A. 87-740.)
3 (40 ILCS 5/7-141.1)
4 Sec. 7-141.1. Early retirement incentive.
5 (a) The General Assembly finds and declares that:
6 (1) Units of local government across the State have
7 been functioning under a financial crisis.
8 (2) This financial crisis is expected to continue.
9 (3) Units of local government must depend on
10 additional sources of revenue and, when those sources are
11 not forthcoming, must establish cost-saving programs.
12 (4) An early retirement incentive designed
13 specifically to target highly-paid senior employees could
14 result in significant annual cost savings.
15 (5) The early retirement incentive should be made
16 available only to those units of local government that
17 determine that an early retirement incentive is in their
18 best interest.
19 (6) A unit of local government adopting a program
20 of early retirement incentives under this Section is
21 encouraged to implement personnel procedures to prohibit,
22 for at least 5 years, the rehiring (whether on payroll or
23 by independent contract) of employees who receive early
24 retirement incentives.
25 (7) A unit of local government adopting a program
26 of early retirement incentives under this Section is also
27 encouraged to replace as few of the participating
28 employees as possible and to hire replacement employees
29 for salaries totaling no more than 80% of the total
30 salaries formerly paid to the employees who participate
31 in the early retirement program.
32 It is the primary purpose of this Section to encourage
33 units of local government that can realize true cost savings,
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1 or have determined that an early retirement program is in
2 their best interest, to implement an early retirement
3 program.
4 (b) Until the effective date of this amendatory Act of
5 1997, this Section does not apply to any employer that is a
6 city, village, or incorporated town, nor to the employees of
7 any such employer. Beginning on the effective date of this
8 amendatory Act of 1997, any employer under this Article,
9 including an employer that is a city, village, or
10 incorporated town, may establish an early retirement
11 incentive program for its employees under this Section. The
12 decision of a city, village, or incorporated town to consider
13 or establish an early retirement program is at the sole
14 discretion of that city, village, or incorporated town, and
15 nothing in this amendatory Act of 1997 limits or otherwise
16 diminishes this discretion. Nothing contained in this
17 Section shall be construed to require a city, village, or
18 incorporated town to establish an early retirement program
19 and no city, village, or incorporated town may be compelled
20 to implement such a program.
21 The benefits provided in this Section are available only
22 to members employed by a participating employer that has
23 filed with the Board of the Fund a resolution or ordinance
24 expressly providing for the creation of an early retirement
25 incentive program under this Section for its employees and
26 specifying the effective date of the early retirement
27 incentive program. Subject to the limitation in subsection
28 (h), an employer may adopt a resolution or ordinance
29 providing a program of early retirement incentives under this
30 Section at any time.
31 The resolution or ordinance shall be in substantially the
32 following form:
33 RESOLUTION (ORDINANCE) NO. ....
34 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
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1 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
2 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
3 WHEREAS, Section 7-141.1 of the Illinois Pension Code
4 provides that a participating employer may elect to adopt an
5 early retirement incentive program offered by the Illinois
6 Municipal Retirement Fund by adopting a resolution or
7 ordinance; and
8 WHEREAS, The goal of adopting an early retirement program
9 is to realize a substantial savings in personnel costs by
10 offering early retirement incentives to employees who have
11 accumulated many years of service credit; and
12 WHEREAS, Implementation of the early retirement program
13 will provide a budgeting tool to aid in controlling payroll
14 costs; and
15 WHEREAS, The (name of governing body) has determined that
16 the adoption of an early retirement incentive program is in
17 the best interests of the (name of participating employer);
18 therefore be it
19 RESOLVED (ORDAINED) by the (name of governing body) of
20 (name of participating employer) that:
21 (1) The (name of participating employer) does hereby
22 adopt the Illinois Municipal Retirement Fund early retirement
23 incentive program as provided in Section 7-141.1 of the
24 Illinois Pension Code. The early retirement incentive
25 program shall take effect on (date).
26 (2) In order to help achieve a true cost savings, a
27 person who retires under the early retirement incentive
28 program shall lose those incentives if he or she later
29 accepts employment with any IMRF employer in a position for
30 which participation in IMRF is required or is elected by the
31 employee.
32 (3) In order to utilize an early retirement incentive as
33 a budgeting tool, the (name of participating employer) will
34 use its best efforts either to limit the number of employees
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1 who replace the employees who retire under the early
2 retirement program or to limit the salaries paid to the
3 employees who replace the employees who retire under the
4 early retirement program.
5 (4) The effective date of each employee's retirement
6 under this early retirement program shall be set by (name of
7 employer) and shall be no earlier than the effective date of
8 the program and no later than one year after that effective
9 date; except that the employee may require that the
10 retirement date set by the employer be no later than the June
11 30 next occurring after the effective date of the program and
12 no earlier than the date upon which the employee qualifies
13 for retirement.
14 (5) To be eligible for the early retirement incentive
15 under this Section, the employee must have attained age 50
16 and have at least 20 years of creditable service by his or
17 her retirement date.
18 (6) The (clerk or secretary) shall promptly file a
19 certified copy of this resolution (ordinance) with the Board
20 of Trustees of the Illinois Municipal Retirement Fund.
21 CERTIFICATION
22 I, (name), the (clerk or secretary) of the (name of
23 participating employer) of the County of (name), State of
24 Illinois, do hereby certify that I am the keeper of the books
25 and records of the (name of employer) and that the foregoing
26 is a true and correct copy of a resolution (ordinance) duly
27 adopted by the (governing body) at a meeting duly convened
28 and held on (date).
29 SEAL
30 (Signature of clerk or secretary)
31 (c) To be eligible for the benefits provided under an
32 early retirement incentive program adopted under this
33 Section, a member must:
34 (1) be a participating employee of this Fund who,
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1 on the effective date of the program, (i) is in active
2 payroll status as an employee of a participating employer
3 that has filed the required ordinance or resolution with
4 the Board, (ii) is on layoff status from such a position
5 with a right of re-employment or recall to service, (iii)
6 is on a leave of absence from such a position, or (iv) is
7 on disability but has not been receiving benefits under
8 Section 7-146 or 7-150 for a period of more than 2 years
9 from the date of application;
10 (2) have never previously received a retirement
11 annuity under this Article or under the Retirement
12 Systems Reciprocal Act using service credit established
13 under this Article;
14 (3) (blank); file with the Board within 60 days of
15 the effective date of the program an application
16 requesting the benefits provided in this Section;
17 (4) have at least 20 years of creditable service in
18 the Fund by the date of retirement, without the use of
19 any creditable service established under this Section;
20 (5) have attained age 50 by the date of retirement,
21 without the use of any age enhancement received under
22 this Section; and
23 (6) be eligible to receive a retirement annuity
24 under this Article by the date of retirement, for which
25 purpose the age enhancement and creditable service
26 established under this Section may be considered.
27 (d) The employer shall determine the retirement date for
28 each employee participating in the early retirement program
29 adopted under this Section. The retirement date shall be no
30 earlier than the effective date of the program and no later
31 than one year after that effective date, except that the
32 employee may require that the retirement date set by the
33 employer be no later than the June 30 next occurring after
34 the effective date of the program and no earlier than the
-34- LRB9101658EGfgam01
1 date upon which the employee qualifies for retirement. The
2 employer shall give each employee participating in the early
3 retirement program at least 30 days written notice of the
4 employee's designated retirement date, unless the employee
5 waives this notice requirement.
6 (e) An eligible person may establish up to 5 years of
7 creditable service under this Section. In addition, for each
8 period of creditable service established under this Section,
9 a person shall have his or her age at retirement deemed
10 enhanced by an equivalent period.
11 The creditable service established under this Section may
12 be used for all purposes under this Article and the
13 Retirement Systems Reciprocal Act, except for the computation
14 of final rate of earnings and the determination of earnings,
15 salary, or compensation under this or any other Article of
16 the Code.
17 The age enhancement established under this Section may be
18 used for all purposes under this Article (including
19 calculation of the reduction imposed under subdivision
20 (a)1b(iv) of Section 7-142), except for purposes of a
21 reversionary annuity under Section 7-145 and any
22 distributions required because of age. The age enhancement
23 established under this Section may be used in calculating a
24 proportionate annuity payable by this Fund under the
25 Retirement Systems Reciprocal Act, but shall not be used in
26 determining benefits payable under other Articles of this
27 Code under the Retirement Systems Reciprocal Act.
28 (f) For all creditable service established under this
29 Section, the member must pay to the Fund an employee
30 contribution consisting of 4.5% of the member's highest
31 annual salary rate used in the determination of the final
32 rate of earnings for retirement annuity purposes for each
33 year of creditable service granted under this Section. For
34 creditable service established under this Section by a person
-35- LRB9101658EGfgam01
1 who is a sheriff's law enforcement employee to be deemed
2 service as a sheriff's law enforcement employee, the employee
3 contribution shall be at the rate of 6.5% of highest annual
4 salary per year of creditable service granted. Contributions
5 for fractions of a year of service shall be prorated. Any
6 amounts that are disregarded in determining the final rate of
7 earnings under subdivision (d)(5) of Section 7-116 (the 125%
8 rule) shall also be disregarded in determining the required
9 contribution under this subsection (f).
10 The employee contribution shall be paid to the Fund as
11 follows: If the member is entitled to a lump sum payment for
12 accumulated vacation, sick leave, or personal leave upon
13 withdrawal from service, the employer shall deduct the
14 employee contribution from that lump sum and pay the deducted
15 amount directly to the Fund. If there is no such lump sum
16 payment or the required employee contribution exceeds the net
17 amount of the lump sum payment, then the remaining amount
18 due, at the option of the employee, may either be paid to the
19 Fund before the annuity commences or deducted from the
20 retirement annuity in 24 equal monthly installments.
21 (g) An annuitant who has received any age enhancement or
22 creditable service under this Section and thereafter accepts
23 employment with or enters into a personal services contract
24 with an employer under this Article thereby forfeits that age
25 enhancement and creditable service. A person forfeiting
26 early retirement incentives under this subsection (i) must
27 repay to the Fund that portion of the retirement annuity
28 already received which is attributable to the early
29 retirement incentives that are being forfeited, (ii) shall
30 not be eligible to participate in any future early retirement
31 program adopted under this Section, and (iii) is entitled to
32 a refund of the employee contribution paid under subsection
33 (f). The Board shall deduct the required repayment from the
34 refund and may impose a reasonable payment schedule for
-36- LRB9101658EGfgam01
1 repaying the amount, if any, by which the required repayment
2 exceeds the refund amount.
3 (h) The additional unfunded liability accruing as a
4 result of the adoption of a program of early retirement
5 incentives under this Section by an employer shall be
6 amortized over a period of 10 years beginning on January 1 of
7 the second calendar year following the calendar year in which
8 the latest date for beginning to receive a retirement annuity
9 under the program (as determined by the employer under
10 subsection (d) of this Section) occurs; except that the
11 employer may provide for a shorter amortization period (of no
12 less than 5 years) by adopting an ordinance or resolution
13 specifying the length of the amortization period and
14 submitting a certified copy of the ordinance or resolution to
15 the Fund no later than 6 months after the effective date of
16 the program. An employer, at its discretion, may accelerate
17 payments to the Fund.
18 An employer may provide more than one early retirement
19 incentive program for its employees under this Section.
20 However, an employer that has provided an early retirement
21 incentive program for its employees under this Section may
22 not provide another early retirement incentive program under
23 this Section until the liability arising from the earlier
24 program has been fully paid to the Fund.
25 (Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.)
26 (40 ILCS 5/7-145.1)
27 Sec. 7-145.1. Alternative annuity for county officers.
28 (a) The benefits provided in this Section and Section
29 7-145.2 are available only if the county board has filed with
30 the Board of the Fund a resolution or ordinance expressly
31 consenting to the availability of these benefits for its
32 elected county officers. The county board's consent is
33 irrevocable with respect to persons participating in the
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1 program, but may be revoked at any time with respect to
2 persons who have not paid an additional optional contribution
3 under this Section before the date of revocation.
4 An elected county officer may elect to establish
5 alternative credits for an alternative annuity by electing in
6 writing to make additional optional contributions in
7 accordance with this Section and procedures established by
8 the board. These alternative credits are available only for
9 periods of service as an elected county officer. The elected
10 county officer may discontinue making the additional optional
11 contributions by notifying the Fund in writing in accordance
12 with this Section and procedures established by the board.
13 Additional optional contributions for the alternative
14 annuity shall be as follows:
15 (1) For service as an elected county officer after
16 the option is elected, an additional contribution of 3%
17 of salary shall be contributed to the Fund on the same
18 basis and under the same conditions as contributions
19 required under Section 7-173.
20 (2) For service as an elected county officer before
21 the option is elected, an additional contribution of 3%
22 of the salary for the applicable period of service, plus
23 interest at the effective rate from the date of service
24 to the date of payment, plus any additional amount
25 required by the county board under paragraph (3). All
26 payments for past service must be paid in full before
27 credit is given.
28 (3) With respect to service as an elected county
29 officer before the option is elected, if payment is made
30 after the county board has filed with the Board of the
31 Fund a resolution or ordinance requiring an additional
32 contribution under this paragraph, then the contribution
33 required under paragraph (2) shall include an amount to
34 be determined by the Fund, equal to the actuarial present
-38- LRB9101658EGfgam01
1 value of the additional employer cost that would
2 otherwise result from the alternative credits being
3 established for that service. A county board's
4 resolution or ordinance requiring additional
5 contributions under this paragraph (3) is irrevocable.
6 No additional optional contributions may be made for any
7 period of service for which credit has been previously
8 forfeited by acceptance of a refund, unless the refund is
9 repaid in full with interest at the effective rate from the
10 date of refund to the date of repayment.
11 (b) In lieu of the retirement annuity otherwise payable
12 under this Article, an elected county officer who (1) has
13 elected to participate in the Fund and make additional
14 optional contributions in accordance with this Section, (2)
15 has held and made additional optional contributions with
16 respect to the same elected county office for at least 8
17 years, and (3) has attained age 55 with at least 8 years of
18 service credit (or has attained age 50 with at least 20 years
19 of service as a sheriff's law enforcement employee) may elect
20 to have his retirement annuity computed as follows: 3% of
21 the participant's salary for each of the first 8 years of
22 service credit, plus 4% of that salary for each of the next 4
23 years of service credit, plus 5% of that salary for each year
24 of service credit in excess of 12 years, subject to a maximum
25 of 80% of that salary.
26 This formula applies only to service in an elected county
27 office that the officer held for at least 8 years, and only
28 to service for which additional optional contributions have
29 been paid under this Section. If an elected county officer
30 qualifies to have this formula applied to service in more
31 than one elected county office, the qualifying service shall
32 be accumulated for purposes of determining the applicable
33 accrual percentages, but the salary used for each office
34 shall be the separate salary calculated for that office, as
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1 defined in subsection (g).
2 To the extent that the elected county officer has service
3 credit that does not qualify for this formula, his retirement
4 annuity will first be determined in accordance with this
5 formula with respect to the service to which this formula
6 applies, and then in accordance with the remaining Sections
7 of this Article with respect to the service to which this
8 formula does not apply.
9 (c) In lieu of the disability benefits otherwise payable
10 under this Article, an elected county officer who (1) has
11 elected to participate in the Fund, and (2) has become
12 permanently disabled and as a consequence is unable to
13 perform the duties of his office, and (3) was making optional
14 contributions in accordance with this Section at the time the
15 disability was incurred, may elect to receive a disability
16 annuity calculated in accordance with the formula in
17 subsection (b). For the purposes of this subsection, an
18 elected county officer shall be considered permanently
19 disabled only if: (i) disability occurs while in service as
20 an elected county officer and is of such a nature as to
21 prevent him from reasonably performing the duties of his
22 office at the time; and (ii) the board has received a written
23 certification by at least 2 licensed physicians appointed by
24 it stating that the officer is disabled and that the
25 disability is likely to be permanent.
26 (d) Refunds of additional optional contributions shall
27 be made on the same basis and under the same conditions as
28 provided under Section 7-166, 7-167 and 7-168. Interest
29 shall be credited at the effective rate on the same basis and
30 under the same conditions as for other contributions.
31 If an elected county officer fails to hold that same
32 elected county office for at least 8 years, he or she shall
33 be entitled after leaving office to receive a refund of the
34 additional optional contributions made with respect to that
-40- LRB9101658EGfgam01
1 office, plus interest at the effective rate.
2 (e) The plan of optional alternative benefits and
3 contributions shall be available to persons who are elected
4 county officers and active contributors to the Fund on or
5 after November 15, 1994. A person who was an elected county
6 officer and an active contributor to the Fund on November 15,
7 1994 but is no longer an active contributor may apply to make
8 additional optional contributions under this Section at any
9 time within 90 days after the effective date of this
10 amendatory Act of 1997; if the person is an annuitant, the
11 resulting increase in annuity shall begin to accrue on the
12 first day of the month following the month in which the
13 required payment is received by the Fund.
14 (f) For the purposes of this Section and Section
15 7-145.2, the terms "elected county officer" and "elected
16 county office" include, but are not limited to: (1) the
17 county clerk, recorder, treasurer, coroner, assessor (if
18 elected), auditor, sheriff, and State's Attorney; members of
19 the county board; and the clerk of the circuit court; and (2)
20 a person who has been appointed to fill a vacancy in an
21 office that is normally filled by election on a countywide
22 basis, for the duration of his or her service in that office.
23 The terms "elected county officer" and "elected county
24 office" do not include any officer or office of a county that
25 has not consented to the availability of benefits under this
26 Section and Section 7-145.2.
27 (g) For the purposes of this Section and Section
28 7-145.2, the term "salary" means the final rate of earnings
29 for the elected county office held, calculated in a manner
30 consistent with Section 7-116, but for that office only. If
31 an elected county officer qualifies to have the formula in
32 subsection (b) applied to service in more than one elected
33 county office, a separate salary shall be calculated and
34 applied with respect to each such office.
-41- LRB9101658EGfgam01
1 (h) The changes to this Section made by this amendatory
2 Act of the 91st General Assembly apply to persons who first
3 make an additional optional contribution under this Section
4 on or after the effective date of this amendatory Act.
5 (Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00.)
6 (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
7 Sec. 7-157. Surviving spouse annuities - marriage to
8 terminate. If a any surviving spouse annuitant marries,
9 before reaching age 55, the annuity shall be terminated as of
10 the end of the calendar month following the month in which
11 the marriage occurs, unless the marriage occurs after
12 December 31, 2000.
13 (Source: P.A. 81-618.)
14 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
15 Sec. 7-164. Death benefits - Amount. The amount of the
16 death benefit shall be:
17 1. Upon the death of an employee with at least one year
18 of service occurring while in an employment relationship
19 (including employees drawing disability benefits) with a
20 participating municipality or participating instrumentality,
21 an amount equal to the sum of:
22 (a) The employee's normal, additional and survivor
23 credits, including interest credited thereto through the
24 end of the preceding calendar year, but excluding credits
25 and interest thereon allowed for periods of disability.
26 (b) An amount equal to the employee's annual final
27 rate of earnings. An employee who dies as a result of
28 injuries connected with his duties shall be considered to
29 have a year of service for purposes of this benefit.
30 2. Upon the death of an employee with less than 1 year
31 of service occurring while in the service of any
32 participating municipality or instrumentality, an amount
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1 equal to the sum of his accumulated normal, additional and
2 survivor credits on the date of death, excluding those
3 credits and interest thereon allowed during periods of
4 disability.
5 3. Upon the death of an employee who has separated from
6 service and was not entitled to a retirement annuity on the
7 date of death, an amount equal to the sum of his accumulated
8 normal, survivor and additional credits on the date of death
9 excluding those credits and interest thereon allowed during
10 periods of disability.
11 4. Upon the death of an employee in an employment
12 relationship, or an employee who has service and was entitled
13 to a retirement annuity on the date of death, when a
14 surviving spouse or child annuity is awarded, $3,000.
15 5. Upon the death of an employee, who has separated from
16 service and was entitled to a retirement annuity on the date
17 of death, and no surviving spouse or child annuity is
18 awarded, $3,000 plus an amount equal to his accumulated
19 normal, survivor and additional credits on the date of death,
20 excluding those credits and interest earned thereon allowed
21 during periods of disability.
22 6. Upon the death of an employee annuitant, $3,000 and,
23 unless a surviving spouse, child or reversionary annuity is
24 payable, the sum of (i) the excess of the normal and survivor
25 credits, excluding those allowed during periods of
26 disability, which the annuitant had as of the effective date
27 of his annuity over the total annuities paid pursuant to
28 paragraph (a) 1 of Section 7-142 to the date of death, plus
29 (ii) the excess of the additional credits, excluding any such
30 credits used to create a reversionary annuity, used to
31 provide the annuity granted pursuant to paragraph (a) 2 of
32 Section 7-142 over the total annuity payments made pursuant
33 thereto to the time of death.
34 7. Upon the death of an annuitant receiving a
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1 reversionary annuity or of a person designated to receive a
2 reversionary annuity prior to the receipt of such annuity the
3 sum of the additional credits of the person creating the
4 reversionary annuity as of the effective date of his own
5 retirement annuity over the reversionary annuity payments, if
6 any, made prior to the date of death of such annuitant or
7 person designated to receive the reversionary annuity.
8 8. Upon the death of an annuitant receiving a
9 beneficiary annuity which was effective before January 1,
10 1986, the excess of the death benefit which was used to
11 provide the annuity, over the sum of all annuity payments
12 made to the beneficiary. Upon the death of an annuitant
13 receiving a beneficiary annuity effective January 1, 1986 or
14 thereafter, the sum of (i) the excess of the normal and
15 survivor credits, excluding those allowed during periods of
16 disability, which the annuitant had as of the effective date
17 of his annuity over the total annuities paid pursuant to
18 paragraph (c) of Section 7-165, to date of death, plus (ii)
19 the excess of the additional credits, excluding any such
20 credits used to create a reversionary annuity, used to
21 provide the annuity granted pursuant to paragraph (d) of
22 Section 7-165 over the total annuity payments made pursuant
23 thereto to the time of death.
24 9. Upon the marriage prior to reaching age 55 (except
25 for a surviving spouse who remarries after December 31, 2000)
26 or death of a person receiving a surviving spouse annuity,
27 unless a child annuity is payable, the sum of (i) the excess
28 of the normal and survivor credits, excluding those credits
29 and interest thereon allowed during periods of disability,
30 attributable to the employee at the effective date of the
31 annuity or date of death, whichever first occurred, over the
32 total of all annuity payments attributable to paragraph (a) 1
33 of Section 7-142 made to the employee or surviving spouse
34 plus (ii) the excess of the additional credits, excluding any
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1 such credits used to create a reversionary annuity or used to
2 provide the annuity attributable to paragraph (a) 2 of
3 Section 7-142 over the total of such payments.
4 10. Upon the marriage, death or attainment of age 18 of
5 a child receiving a child annuity, if no other child
6 annuities are payable, the sum of (i) the excess of the
7 normal and survivor credits excluding those credits and
8 interest thereon allowed during periods of disability, of the
9 employee at the effective date of the annuity or date of
10 death, whichever first occurred, over the total annuity
11 payments attributable to paragraph (a) 1 of Section 7-142
12 made to the employee, surviving spouse and children plus (ii)
13 the excess of the additional credits, excluding any such
14 credits used to create a reversionary annuity, used to
15 provide the annuity attributable to paragraph (a) 2 of
16 Section 7-142 over the total annuity payments made to the
17 employee, surviving spouse and children, pursuant thereto.
18 11. Upon the death of the participating employee whose
19 annuity was suspended upon his return to employment:
20 a. If a surviving spouse or child annuity is
21 awarded, $3,000;
22 b. If no surviving spouse or child annuity is
23 awarded and he had less than one year's service upon
24 return, $3,000 plus the excess of the normal, survivor
25 and additional credits, including interest thereon, but
26 excluding those allowed during a period of disability, at
27 the effective date of the suspended annuity, plus those
28 allowed after his return, over all annuity payments made
29 to the employee;
30 c. If no surviving spouse or child annuity is
31 awarded and he has one year or more of service upon
32 return, the higher of (a) the payment under subparagraph
33 b of this paragraph or (b) the payment under paragraph 1
34 of this Section, taking into consideration only the
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1 service and credits allowed after his return, plus the
2 excess of the normal, survivor and additional credits,
3 including interest thereon, excluding those allowed
4 during periods of disability, at the effective date of
5 his suspended annuity over all annuity payments made to
6 the employee.
7 12. The $3,000 death benefit provided in paragraphs 4
8 and 6 shall not be payable to beneficiaries of persons who
9 terminated service prior to September 8, 1971, unless the
10 payment or agreement for payment provided by Section 7-144.2
11 of this Article is made prior to the date of death.
12 13. The increase in certain death benefits from $1,000
13 to $3,000 provided by this amendatory Act of 1987 shall apply
14 only to deaths occurring on or after January 1, 1988.
15 (Source: P.A. 85-941.)
16 (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
17 Sec. 7-166. Separation benefits - Eligibility.
18 Separation benefits shall be payable as hereinafter set
19 forth:
20 1. Upon separation from the service of all participating
21 municipalities and instrumentalities thereof and
22 participating instrumentalities, any participating employee
23 upon the termination of his participation as a participating
24 employee who, on the date of application for such benefit, is
25 not entitled to a retirement annuity shall be entitled to a
26 separation benefit;
27 2. Upon separation from the service of all participating
28 municipalities and instrumentalities thereof and
29 participating instrumentalities, any participating employee
30 upon the termination of his participation as a participating
31 employee who, on the date of application for such benefit, is
32 entitled to a retirement annuity of less than $30 per month
33 for life may elect to take a separation benefit in lieu of
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1 the retirement annuity.
2 (Source: Laws 1963, p. 161.)
3 (40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
4 Sec. 7-167. Separation benefits - Payment. Separation
5 benefits shall be paid in the form of a single cash sum as
6 soon as practicable after receipt by the board of:
7 1. a written application by the employee for such
8 benefits; and
9 2. written notice from the last employing
10 participating municipality or instrumentality thereof or
11 participating instrumentality, certifying that such
12 participating employee has separated from service
13 terminated his participation.
14 (Source: Laws 1963, p. 161.)
15 (40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
16 Sec. 7-184. To determine prior service.
17 To determine the length of prior service from such
18 information as is available. Any such determination shall be
19 conclusive as to any such period of service, unless within 2
20 years of the issuance of the first individual statement to an
21 employee, the board reconsiders the case and changes the
22 determination.
23 The change to this Section made by this amendatory Act of
24 the 91st General Assembly applies without regard to whether
25 the individual is in service on or after the effective date
26 of this amendatory Act.
27 (Source: Laws 1963, p. 161.)
28 (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
29 Sec. 7-211. Authorizations.
30 (a) Each participating municipality and instrumentality
31 thereof and each participating instrumentality shall:
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1 1. Deduct all normal and additional contributions
2 and contributions for federal Social Security taxes as
3 required by the Social Security Enabling Act from each
4 payment of earnings payable to each participating
5 employee who is entitled to any earnings from such
6 municipality or instrumentality thereof or participating
7 instrumentality, and to remit all such contributions
8 immediately to the board; and
9 2. Pay to the board contributions required by this
10 Article.
11 (b) Each participating employee shall, by virtue of the
12 payment of contributions to this fund, receive a vested
13 interest in the annuities and benefits provided in this
14 Article and in consideration of such vested interest shall be
15 deemed to have agreed and authorized the deduction from
16 earnings of all contributions payable to this fund in
17 accordance with this Article.
18 (c) Payment of earnings less the amounts of
19 contributions provided in this Article and in the Social
20 Security Enabling Act shall be a full and complete discharge
21 of all claims for payment for services rendered by any
22 employee during the period covered by any such payment.
23 (d) Any covered annuitant may authorize the withholding
24 of all or a portion of his or her annuity, for the payment of
25 premiums on group accident and health insurance provided
26 pursuant to Section 7-199.1. The annuitant may revoke this
27 authorization at any time.
28 (Source: P.A. 84-812.)
29 (40 ILCS 5/7-224 new)
30 Sec. 7-224. Section 415 limitations. Notwithstanding
31 any other provisions of this Article, the combined benefits
32 and contributions provided to any participating employee by
33 all plans of any participating municipality and its
-48- LRB9101658EGfgam01
1 instrumentalities and any participating instrumentality shall
2 not exceed the limitations specified in Section 415(b), (c),
3 and (e) of the Internal Revenue Code of 1986. If a
4 participating employee's benefits or contributions under this
5 Article, combined with those under any other plan of the
6 participating municipality and its instrumentalities or
7 participating instrumentality, would otherwise violate those
8 limitations, the benefits and contributions under the other
9 plan shall be reduced, rather than the benefits and
10 contributions provided under this Article. To the extent
11 that the other plan fails to limit such benefits and
12 contributions, that plan shall be disqualified.
13 (40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
14 Sec. 8-125. Annuity.
15 "Annuity": Equal monthly payments for life, unless
16 otherwise specified.
17 For annuities taking effect before January 1, 1998, the
18 first payment shall be due and payable one month after the
19 occurrence of the event upon which payment of the annuity
20 depends, and the last payment shall be due and payable as of
21 the date of the annuitant's death and shall be prorated from
22 the date of the last preceding payment to the date of death
23 for deaths that occur on or before March 31, 2000. All
24 payments made on or after April 1, 2000 shall be made on the
25 first day of the calendar month and the last payment shall be
26 made on the first day of the calendar month in which the
27 annuity payment period ends. All payments for months
28 beginning with April of 2000 shall be for the entire calendar
29 month, without proration. A pro rata amount shall be paid for
30 that part of the month from the March 2000 annuity payment
31 date through March 31, 2000.
32 For annuities taking effect on or after January 1, 1998,
33 payments shall be made as of the first day of the calendar
-49- LRB9101658EGfgam01
1 month, with the first payment to be made as of the first day
2 of the calendar month coincidental with or next following the
3 first day of the annuity payment period, and the last payment
4 to be made as of the first day of the calendar month in which
5 the annuity payment period ends. For annuities taking effect
6 on or after January 1, 1998, all payments shall be for the
7 entire calendar month, without proration.
8 For the purposes of this Section, the "annuity payment
9 period" means the period beginning on the day after the
10 occurrence of the event upon which payment of the annuity
11 depends, and ending on the day upon which the death of the
12 annuitant or other event terminating the annuity occurs.
13 (Source: P.A. 90-31, eff. 6-27-97.)
14 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
15 Sec. 8-139. Reversionary annuity.
16 (a) An employee, prior to retirement on annuity, may
17 elect to take a lesser amount of annuity and provide, with
18 the actuarial value of the amount by which his annuity is
19 reduced, a reversionary annuity for a wife, husband, parent,
20 child, brother or sister. The option shall be exercised by
21 filing a written designation with the board prior to
22 retirement, and may be revoked by the employee at any time
23 before retirement. The death of the employee prior to his
24 retirement shall automatically void the option.
25 (b) The death of the designated reversionary annuitant
26 prior to the employee's retirement shall automatically void
27 the option. If the reversionary annuitant dies after the
28 employee's retirement, and before the death of the employee
29 annuitant, the reduced annuity being paid to the retired
30 employee annuitant shall be increased to the amount of
31 annuity before reduction for the reversionary annuity and no
32 reversionary annuity shall be payable.
33 The option is subject to the further condition that no
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1 reversionary annuity shall be paid to a parent, child,
2 brother, or sister if the employee dies before the expiration
3 of 365 days from the date his written designation was filed
4 with the board, even though he has retired and is receiving a
5 reduced annuity.
6 (c) The employee exercising this option shall not reduce
7 his retirement annuity by more than $400 a month, or elect to
8 provide a reversionary annuity of less than $50 per month.
9 No option shall be permitted if the reversionary annuity for
10 a widow, when added to the widow's annuity payable under this
11 Article, exceeds 100% of the reduced annuity payable to the
12 employee.
13 (d) A reversionary annuity shall begin on the day
14 following the death of the annuitant and shall be paid as
15 provided in Section 8-125.
16 (e) The increases in annuity provided in Section 8-137
17 of this Article shall, as to an employee so electing a
18 reduced annuity relate to the amount of the original annuity,
19 and such amount shall constitute the annuity on which such
20 automatic increases shall be based.
21 (f) For annuities elected after June 30, 1983, the
22 amount of the monthly reversionary annuity shall be
23 determined by multiplying the amount of the monthly reduction
24 in the employee's annuity by the factor in the following
25 table based on the age of the employee and the difference in
26 the age of the employee and the age of the reversionary
27 annuitant at the starting date of the employee's annuity:
28 Employee's Age
29 Reversionary
30 Annuitant's
31 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
32 Over
33 30 or
34 more
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1 years
2 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
3 25-29
4 years
5 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
6 20-24
7 years
8 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
9 15-19
10 years
11 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
12 10-14
13 years
14 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
15 5-9
16 years
17 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
18 0-4
19 years
20 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
21 1-5
22 years
23 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
24 6-10
25 years
26 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
27 11-15
28 years
29 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
30 16-20
31 years
32 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
33 21-25
34 years
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1 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
2 26-30
3 years
4 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
5 31 or
6 more
7 years
8 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
9 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
10 (40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153)
11 Sec. 8-153. Widow's remarriage marriage to terminate
12 annuity. A widow's annuity shall terminate when she remarries
13 if the marriage takes place before the date 60 days after the
14 effective date of this amendatory Act of the 91st General
15 Assembly. If a widow remarries 60 or more days after the
16 effective date of this amendatory Act of the 91st General
17 Assembly, the widow's annuity shall continue without
18 interruption.
19 When a widow dies, if she has not received, in the form
20 of an annuity, an amount equal to the total credited from
21 employee's contributions and applied for the widow's annuity,
22 the difference between such annuity credits and the amount
23 received by her shall be refunded to her, provided, that if a
24 reversionary annuity is payable to her, or to any other
25 person designated by the employee, such amount shall not be
26 refunded but the reversionary annuity shall be payable. If
27 there is any child of the employee who is under 18 years of
28 age, the part of any such amount that is required to pay an
29 annuity to the child shall be transferred to the child's
30 annuity reserve. In making refunds under this Section, no
31 interest shall be paid upon either the total of annuity
32 payments made or the amounts subject to refund. Any refund
33 shall be paid according to the provisions of Section 8-170.
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1 A subsequent change in marital status of the widow shall
2 not effect any restoration of any rights under this Article
3 except in the case of declaration of invalidity of a
4 subsequent marriage wherein the declaration of invalidity is
5 based upon charges of bigamy by the subsequent husband or the
6 legal disability of the subsequent husband to enter into a
7 marriage.
8 (Source: P.A. 83-706.)
9 (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
10 Sec. 8-171. Refund in lieu of annuity. In lieu of an
11 annuity, an employee who withdraws and whose annuity would
12 amount to less than $800 $300 a month for life, may elect to
13 receive a refund of his accumulated contributions for annuity
14 purposes, based on the amounts contributed by him.
15 The widow of any employee, eligible for annuity upon the
16 death of her husband, whose widow's annuity would amount to
17 less than $800 $300 a month for life, may, in lieu of widow's
18 annuity, elect to receive a refund of the accumulated
19 contributions for annuity purposes, based on the amounts
20 contributed by her deceased employee husband, but reduced by
21 any amounts theretofore paid to him in the form of an annuity
22 or refund out of such accumulated contributions.
23 Accumulated contributions shall mean the amounts -
24 including the interest credited thereon - contributed by the
25 employee for age and service and widow's annuity to the date
26 of his withdrawal or death, whichever first occurs, including
27 any amounts contributed for him as salary deductions while
28 receiving duty disability benefits, and, if not otherwise
29 included, any accumulations from sums contributed by him and
30 applied to any pension fund superseded by this fund.
31 The acceptance of such refund in lieu of widow's annuity,
32 on the part of a widow, shall not deprive a child or children
33 of the right to receive a child's annuity as provided for in
-54- LRB9101658EGfgam01
1 Sections 8-158 and 8-159 of this Article, and neither shall
2 the payment of a child's annuity in the case of such refund
3 to a widow reduce the amount herein set forth as refundable
4 to such widow electing a refund in lieu of widow's annuity.
5 (Source: P.A. 86-1488.)
6 (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
7 Sec. 8-244. Annuities, etc., exempt.
8 (a) All annuities, refunds, pensions, and disability
9 benefits granted under this Article, shall be exempt from
10 attachment or garnishment process and shall not be seized,
11 taken, subjected to, detained, or levied upon by virtue of
12 any judgment, or any process or proceeding whatsoever issued
13 out of or by any court in this State, for the payment and
14 satisfaction in whole or in part of any debt, damage, claim,
15 demand, or judgment against any annuitant, pensioner,
16 participant, refund applicant, or other beneficiary
17 hereunder.
18 (b) No annuitant, pensioner, refund applicant, or other
19 beneficiary shall have any right to transfer or assign his
20 annuity, refund, or disability benefit or any part thereof by
21 way of mortgage or otherwise, except that:
22 (1) an annuitant or pensioner who elects or has
23 elected to participate in a non-profit group hospital
24 care plan or group medical surgical plan may with the
25 approval of the board and in conformity with its
26 regulations authorize the board to withhold from the
27 pension or annuity the current premium for such coverage
28 and pay such premium to the organization underwriting
29 such plan;
30 (2) in the case of refunds, a participant may
31 pledge by assignment, power of attorney, or otherwise, as
32 security for a loan from a legally operating credit union
33 making loans only to participants in certain public
-55- LRB9101658EGfgam01
1 employee pension funds described in the Illinois Pension
2 Code, all or part of any refund which may become payable
3 to him in the event of his separation from service; and
4 (3) the board, in its discretion, may pay to the
5 wife of any annuitant, pensioner, refund applicant, or
6 disability beneficiary, such an amount out of her
7 husband's annuity pension, refund, or disability benefit
8 as any court of competent jurisdiction may order, or such
9 an amount as the board may consider necessary for the
10 support of his wife or children, or both in the event of
11 his disappearance or unexplained absence or of his
12 failure to support such wife or children.
13 (c) The board may retain out of any future annuity,
14 pension, refund or disability benefit payments, such amount,
15 or amounts, as it may require for the repayment of any moneys
16 paid to any annuitant, pensioner, refund applicant, or
17 disability beneficiary through misrepresentation, fraud or
18 error. Any such action of the board shall relieve and
19 release the board and the fund from any liability for any
20 moneys so withheld.
21 (d) Whenever an annuity or disability benefit is payable
22 to a minor or to a person certified by a medical doctor
23 adjudged to be under legal disability, the board, in its
24 discretion and when it is in to the best interest of the
25 person concerned, may waive guardianship proceedings and pay
26 the annuity or benefit to the person providing or caring for
27 the minor or and to the wife, parent or blood relative
28 providing or caring for the person under legal disability.
29 In the event that a person certified by a medical doctor
30 to be under legal disability (i) has no spouse, blood
31 relative, or other person providing or caring for him or
32 her, (ii) has no guardian of his or her estate, and (iii) is
33 confined to a Medicare approved, State certified nursing home
34 or to a publicly owned and operated nursing home, hospital,
-56- LRB9101658EGfgam01
1 or mental institution, the Board may pay any benefit due that
2 person to the nursing home, hospital, or mental institution,
3 to be used for the sole benefit of the person under legal
4 disability.
5 Payment in accordance with this subsection to a person,
6 nursing home, hospital, or mental institution for the benefit
7 of a minor or person under legal disability shall be an
8 absolute discharge of the Fund's liability with respect to
9 the amount so paid. Any person, nursing home, hospital, or
10 mental institution accepting payment under this subsection
11 shall notify the Fund of the death or any other relevant
12 change in the status of the minor or person under legal
13 disability.
14 (Source: P.A. 86-1488.)
15 (40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149)
16 Sec. 9-149. Widow's remarriage marriage to terminate
17 annuity. A widow's annuity shall terminate when she
18 remarries if the marriage takes place before the date 60 days
19 after the effective date of this amendatory Act of the 91st
20 General Assembly. If a widow remarries 60 or more days after
21 the effective date of this amendatory Act of the 91st General
22 Assembly, the widow's annuity shall continue without
23 interruption.
24 When a widow dies, if she has not received, in the form
25 of an annuity, an amount equal to the total sums accumulated
26 and credited from the employee's contributions and applied
27 for the widow's annuity, the difference between such
28 accumulated annuity credits and the amount received by her in
29 annuity payments shall be refunded to her; provided that if a
30 reversionary annuity is payable to her or to any other person
31 designated by the employee, this such aforesaid amount shall
32 not be refunded, but the reversionary annuity shall be
33 payable.
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1 (Source: P.A. 81-1536.)
2 (40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194)
3 Sec. 9-194. To invest the reserves. To invest the
4 reserves of the fund in accordance with Sections 1-109,
5 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
6 Investments made in accordance with Section 1-113 shall be
7 deemed to be prudent the provisions set forth in Section
8 1-113 of this Act.
9 The retirement board may sell any security held by it at
10 any time it deems it desirable.
11 The board may enter into agreements and execute documents
12 that it determines to be necessary to complete any investment
13 transaction.
14 All investments shall be clearly held and accounted for
15 to indicate ownership by the board. The board may direct the
16 registration of securities in its own name or in the name of
17 a nominee created for the express purpose of registration of
18 securities by a savings and loan association or national or
19 State bank or trust company authorized to conduct a trust
20 business in the State of Illinois.
21 Investments shall be carried at cost or at a value
22 determined in accordance with generally accepted accounting
23 principles.
24 (Source: P.A. 82-960.)
25 (40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
26 Sec. 11-124. Annuity.
27 "Annuity": Equal monthly payments for life, unless
28 terminated earlier under Section 11-148, 11-152, 11-153, or
29 11-230.
30 For annuities taking effect before January 1, 1998, the
31 first payment shall be due and payable one month after the
32 occurrence of the event upon which payment of the annuity
-58- LRB9101658EGfgam01
1 depends. Until August 1, 1999, and payment shall be made
2 for any part of a monthly period in which death of the
3 annuitant occurs. Beginning August 1, 1999, all payments
4 shall be made on the first day of the calendar month and
5 shall be for the entire calendar month, without proration.
6 The last payment shall be made on the first day of the
7 calendar month in which the annuity payment period ends. A
8 pro rata amount shall be paid for that part of the month from
9 the July 1999 annuity payment date through July 31, 1999.
10 For annuities taking effect on or after January 1, 1998,
11 payments shall be made as of the first day of the calendar
12 month, with the first payment to be made as of the first day
13 of the calendar month coincidental with or next following the
14 first day of the annuity payment period, and the last payment
15 to be made as of the first day of the calendar month in which
16 the annuity payment period ends. For annuities taking effect
17 on or after January 1, 1998, all payments shall be for the
18 entire calendar month, without proration.
19 For the purposes of this Section, the "annuity payment
20 period" means the period beginning on the day after the
21 occurrence of the event upon which payment of the annuity
22 depends, and ending on the day upon which the death of the
23 annuitant or other event terminating the annuity occurs.
24 (Source: P.A. 90-31, eff. 6-27-97.)
25 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
26 Sec. 11-134.2. Reversionary annuity.
27 (a) An employee, prior to retirement on annuity, may
28 elect to take a lesser amount of annuity and provide, with
29 the actuarial value of the amount by which his annuity is
30 reduced, a reversionary annuity for a wife, husband, parent,
31 child, brother or sister. The option shall be exercised by
32 filing a written designation with the board prior to
33 retirement, and may be revoked by the employee at any time
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1 before retirement. The death of the employee prior to his
2 retirement shall automatically void the option.
3 (b) The death of the designated reversionary annuitant
4 prior to the employee's retirement shall automatically void
5 the option. If the reversionary annuitant dies after the
6 employee's retirement, and before the death of the employee
7 annuitant, the reduced annuity being paid to the retired
8 employee annuitant shall be increased to the amount of
9 annuity before reduction for the reversionary annuity and no
10 reversionary annuity shall be payable.
11 The option is subject to the further condition that no
12 reversionary annuity shall be paid to a parent, child,
13 brother, or sister if the employee dies before the expiration
14 of 365 days from the date his written designation was filed
15 with the board, even though he has retired and is receiving a
16 reduced annuity.
17 (c) The employee exercising this option shall not reduce
18 his retirement annuity by more than $400 per month, or elect
19 to provide a reversionary annuity of less than $50 per month.
20 No option shall be permitted if the reversionary annuity for
21 a widow, when added to the widow's annuity payable under this
22 Article, exceeds 100% of the reduced annuity payable to the
23 employee.
24 (d) A reversionary annuity shall begin on the day
25 following the death of the annuitant and shall be paid as
26 provided in Section 11-124.
27 (e) The increases in annuity provided in Section
28 11-134.1 of this Article shall, as to an employee so electing
29 a reduced annuity, relate to the amount of the original
30 annuity, and such amount shall constitute the annuity on
31 which such increases shall be based.
32 (f) For annuities elected after June 30, 1983, the
33 amount of the monthly reversionary annuity shall be
34 determined by multiplying the amount of the monthly reduction
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1 in the employee's annuity by the factor in the following
2 table based on the age of the employee and the difference in
3 the age of the employee and the age of the reversionary
4 annuitant at the starting date of the employee's annuity:
5 Employee's Age
6 Reversionary
7 Annuitant's
8 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
9 Over
10 30 or
11 more
12 years
13 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
14 25-29
15 years
16 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
17 20-24
18 years
19 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
20 15-19
21 years
22 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
23 10-14
24 years
25 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
26 5-9
27 years
28 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
29 0-4
30 years
31 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
32 1-5
33 years
34 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
-61- LRB9101658EGfgam01
1 6-10
2 years
3 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
4 11-15
5 years
6 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
7 16-20
8 years
9 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
10 21-25
11 years
12 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
13 26-30
14 years
15 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
16 31 or
17 more
18 years
19 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
20 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
21 (40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148)
22 Sec. 11-148. Widow's remarriage to terminate annuity. A
23 widow's annuity shall terminate when she remarries if the
24 marriage takes place before the date 60 days after the
25 effective date of this amendatory Act of the 91st General
26 Assembly. If a widow remarries 60 or more days after the
27 effective date of this amendatory Act of the 91st General
28 Assembly, the widow's annuity shall continue without
29 interruption.
30 When a widow dies, if she has not received, in the form
31 of an annuity, an amount equal to the total sum accumulated
32 to his credit from employee's contributions and applied for
33 the widow's annuity, the difference between such accumulated
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1 annuity credits and the amount received by her in annuity
2 payments shall be refunded to her, provided, that if a
3 reversionary annuity is payable if to her, or to any other
4 person designated by the employee, such aforesaid amount
5 shall not be refunded but the reversionary annuity shall be
6 payable. If there is any child of the employee who is under
7 18 years of age, the part of any such amount that is required
8 to pay an annuity to the child shall be transferred to the
9 child's annuity reserve. In making refunds under this
10 Section, no interest shall be paid upon either the total of
11 annuity payments made or the amounts subject to refund. Any
12 refund shall be paid according to the provisions of Section
13 11-166.
14 A subsequent change in marital status of the widow shall
15 not affect any restoration of any rights under this Article
16 except in the case of declaration of invalidity of a
17 subsequent marriage wherein the declaration of invalidity is
18 based upon charges of bigamy by the subsequent husband or the
19 legal disability of the subsequent husband to enter into a
20 marriage.
21 (Source: P.A. 83-706.)
22 (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
23 Sec. 11-167. Refunds in lieu of annuity. In lieu of an
24 annuity, an employee who withdraws, and whose annuity would
25 amount to less than $800 $300 a month for life may elect to
26 receive a refund of the total sum accumulated to his credit
27 from employee contributions for annuity purposes.
28 The widow of any employee, eligible for annuity upon the
29 death of her husband, whose annuity would amount to less than
30 $800 $300 a month for life, may, in lieu of a widow's
31 annuity, elect to receive a refund of the accumulated
32 contributions for annuity purposes, based on the amounts
33 contributed by her deceased employee husband, but reduced by
-63- LRB9101658EGfgam01
1 any amounts theretofore paid to him in the form of an annuity
2 or refund out of such accumulated contributions.
3 Accumulated contributions shall mean the amounts
4 including interest credited thereon contributed by the
5 employee for age and service and widow's annuity to the date
6 of his withdrawal or death, whichever first occurs, and
7 including the accumulations from any amounts contributed for
8 him as salary deductions while receiving duty disability
9 benefits; provided that such amounts contributed by the city
10 after December 31, 1983 while the employee is receiving duty
11 disability benefits.
12 The acceptance of such refund in lieu of widow's annuity,
13 on the part of a widow, shall not deprive a child or children
14 of the right to receive a child's annuity as provided for in
15 Sections 11-153 and 11-154 of this Article, and neither shall
16 the payment of a child's annuity in the case of such refund
17 to a widow reduce the amount herein set forth as refundable
18 to such widow electing a refund in lieu of widow's annuity.
19 (Source: P.A. 90-655, eff. 7-30-98.)
20 (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
21 Sec. 11-181. Board created. A board of 8 members shall
22 constitute the board of trustees authorized to carry out the
23 provisions of this Article. The board shall be known as the
24 Retirement Board of the Laborers' and Retirement Board
25 Employees' Annuity and Benefit Fund of the city. The board
26 shall consist of 5 persons appointed and 2 employees and one
27 annuitant elected in the manner hereinafter prescribed.
28 The appointed members of the board shall be appointed as
29 follows:
30 One member shall be appointed by the comptroller of the
31 city, who may be himself or anyone chosen from among
32 employees of the city who are versed in the affairs of the
33 comptroller's office; one member shall be appointed by the
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1 City Treasurer of the city, who may be himself or a person
2 chosen from among employees of the city who are versed in the
3 affairs of the City Treasurer's office; one member shall be
4 an employee of the city appointed by the president of the
5 local labor organization representing a majority of the
6 employees participating in the Fund; and 2 members shall be
7 appointed by the civil service commission or the Department
8 of Personnel of the city from among employees of the city who
9 are versed in the affairs of the civil service commission's
10 office or the Department of Personnel.
11 The member appointed by the comptroller shall hold office
12 for a term ending on December 1st of the first year following
13 the year of appointment. The member appointed by the City
14 Treasurer shall hold office for a term ending on December 1st
15 of the second year following the year of appointment. The
16 member appointed by the civil service commission shall hold
17 office for a term ending on the first day in the month of
18 December of the third year following the year of appointment.
19 The additional member appointed by the civil service
20 commission under this amendatory Act of 1998 shall hold
21 office for an initial term ending on December 1, 2000, and
22 the member appointed by the labor organization president
23 shall hold office for an initial term ending on December 1,
24 2001. Thereafter each appointive member shall be appointed
25 by the officer or body that appointed his predecessor, for a
26 term of 3 years.
27 The 2 employee members of the board shall be elected as
28 follows:
29 Within 30 days from and after the appointive members have
30 been appointed and have qualified, the appointive members
31 shall arrange for and hold an election.
32 One employee shall be elected for a term ending on
33 December 1st of the first year next following the effective
34 date; one for a term ending on December 1st of the following
-65- LRB9101658EGfgam01
1 year.
2 The initial annuitant member shall be appointed by the
3 other members of the board for an initial term ending on
4 December 1, 1999. Thereafter, The annuitant member elected
5 in 1999 shall be deemed to have been elected for a 3-year
6 2-year term ending on December 1, 2002. Thereafter, the
7 annuitant member shall be elected for a 3-year term ending on
8 December 1st of the third year following the election 1st of
9 the next odd-numbered year.
10 (Source: P.A. 90-766, eff. 8-14-98.)
11 (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
12 Sec. 11-182. Board elections; qualification; oath.
13 (a) In each year, the board shall conduct a regular
14 election, under rules adopted by it, at least 30 days prior
15 to the expiration of the term of the employee member whose
16 term next expires, for the election of a successor for a term
17 of 3 2 years. Each employee member and his or her successor
18 shall be an employee who holds a position by certification
19 and appointment as a result of competitive civil service
20 examination as distinguished from temporary appointment, or
21 so holds a position which is not exempt from the classified
22 service or the personnel ordinance of a city that has adopted
23 a career service ordinance, for a period of not less than 5
24 years prior to date of election. At any such election, all
25 persons who are employees at the time such election is held
26 shall have a right to vote. The ballot shall be of secret
27 character.
28 (b) In each odd-numbered year, The board shall conduct a
29 regular election, under rules adopted by it, at least 30 days
30 prior to the expiration of the term of the annuitant member,
31 for the election of a successor for a term of 3 2 years.
32 Each annuitant member and his or her successor shall be a
33 former employee receiving a retirement (age and service or
-66- LRB9101658EGfgam01
1 prior service) annuity from the Fund. At any such election,
2 all persons who are receiving a retirement (age and service
3 or prior service) annuity from the Fund at the time the
4 election is held have a right to vote. The ballot shall be
5 of secret character.
6 (c) Any appointive or elective member of the board shall
7 hold office until his or her successor is elected and
8 qualified.
9 Any person elected or appointed as a member of the board
10 shall qualify for the office by taking an oath of office to
11 be administered by the city clerk or any person designated by
12 the city clerk. A copy thereof shall be kept in the office
13 of the city clerk.
14 Any appointment shall be in writing and the written
15 instrument shall be filed with the oath.
16 (Source: P.A. 90-766, eff. 8-14-98.)
17 (40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
18 Sec. 11-223. Annuities, etc., exempt.
19 (a) All annuities, refunds, pensions, and disability
20 benefits granted under this Article shall be exempt from
21 attachment or garnishment process and shall not be seized,
22 taken, subjected to, detained, or levied upon by virtue of
23 any judgment, or any process or proceeding whatsoever issued
24 out of or by any court in this State, for the payment and
25 satisfaction in whole or in part of any debt, damage, claim,
26 demand, or judgment against any annuitant, participant,
27 refund applicant, or other beneficiary hereunder.
28 No annuitant, refund applicant, or other beneficiary may
29 transfer or assign his annuity, refund, or disability benefit
30 or any part thereof by way of mortgage or otherwise, except
31 as provided in Section 11-223.1, and except in the case of
32 refunds, when a participant has pledged by assignment, power
33 of attorney, or otherwise, as security for a loan from a
-67- LRB9101658EGfgam01
1 legally operating credit union making loans only to
2 participants in certain public employee pension funds
3 described in the Illinois Pension Code, all or part of any
4 refund which may become payable to him in the event of his
5 separation from service. The board in its discretion may,
6 however, pay to the wife or to the unmarried child under 18
7 years of age of any annuitant, refund applicant, or
8 disability beneficiary, such an amount out of her husband's
9 annuity refund, or disability benefit as any court may order,
10 or such an amount as the board may consider necessary for the
11 support of his wife or children or both in the event of his
12 disappearance or unexplained absence or of his failure to
13 support such wife or children.
14 (b) The board may retain out of any future annuity,
15 refund, or disability benefit payments, such amount, or
16 amounts as it may require for the repayment of any moneys
17 paid to any annuitant, pensioner, refund applicant, or
18 disability beneficiary through misrepresentation, fraud or
19 error. Any such action of the board shall relieve and
20 release the board and the fund from any liability for any
21 moneys so withheld.
22 (c) Whenever an annuity or disability benefit is payable
23 to a minor or to a person certified by a medical doctor
24 adjudged to be under legal disability, the board, in its
25 discretion and when it is in to the best interest of the
26 person concerned, may waive guardianship or conservatorship
27 proceedings and pay the annuity or benefit to the person
28 providing or caring for the minor or and to the wife, parent
29 or blood relative providing or caring for the person under
30 legal disability.
31 In the event that a person certified by a medical doctor
32 to be under legal disability (i) has no spouse, blood
33 relative, or other person providing or caring for him or
34 her, (ii) has no guardian of his or her estate, and (iii) is
-68- LRB9101658EGfgam01
1 confined to a Medicare approved, State certified nursing home
2 or to a publicly owned and operated nursing home, hospital,
3 or mental institution, the Board may pay any benefit due that
4 person to the nursing home, hospital, or mental institution,
5 to be used for the sole benefit of the person under legal
6 disability.
7 Payment in accordance with this subsection to a person,
8 nursing home, hospital, or mental institution for the benefit
9 of a minor or person under legal disability shall be an
10 absolute discharge of the Fund's liability with respect to
11 the amount so paid. Any person, nursing home, hospital, or
12 mental institution accepting payment under this subsection
13 shall notify the Fund of the death or any other relevant
14 change in the status of the minor or person under legal
15 disability.
16 (d) Whenever an annuitant, applicant for refund or
17 disability beneficiary disappears and his whereabouts are
18 unknown, and it cannot be ascertained that he is alive, there
19 shall be paid to his wife or children or both such amount as
20 will not be in excess of the amount payable to them in the
21 event such annuitant, applicant for refund or disability
22 beneficiary had died on the date of disappearance. If he
23 returns, or upon satisfactory proof of his being alive, the
24 amount theretofore paid to such beneficiaries shall be
25 charged against any moneys payable to him under this Article
26 as though such payment to such beneficiaries had been an
27 allowance to them out of the moneys payable to the employee
28 as an annuitant, applicant for refund or disability
29 beneficiary.
30 (Source: P.A. 83-706.)
31 (40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
32 Sec. 13-303. Reversionary annuity.
33 (a) An employee, prior to retirement on annuity, may
-69- LRB9101658EGfgam01
1 elect a lesser amount of annuity and provide, with the
2 actuarial value of the amount by which his annuity is
3 reduced, a reversionary annuity for a wife, husband, parents,
4 children, brothers or sisters. The election may be exercised
5 by filing a written designation with the Board prior to
6 retirement, and may be revoked by the employee at any time
7 before retirement. The death of the employee prior to
8 retirement shall automatically void the election.
9 (b) The death of the designated reversionary annuitant
10 prior to the employee's retirement shall automatically void
11 the election, but, if death of the designated reversionary
12 annuitant occurs after retirement, the reduced annuity being
13 paid to the retired employee annuitant shall remain unchanged
14 and no reversionary annuity shall be payable.
15 No reversionary annuity shall be paid if the employee
16 dies before the expiration of 730 days from the date the
17 written designation was filed with the board, even though the
18 employee retired and was receiving a reduced annuity.
19 (c) An employee exercising this option shall not reduce
20 the annuity by more than 25%, nor elect to provide a
21 reversionary annuity of less than $100 per month. No such
22 option shall be permitted if the reversionary annuity for a
23 surviving spouse, when added to the surviving spouse's
24 annuity payable under this Article, exceeds 85% of the
25 reduced annuity payable to the employee.
26 (d) A reversionary annuity shall begin on the day
27 following the death of the annuitant, with the first payment
28 due and payable one month later, and shall continue monthly
29 thereafter until the death of the reversionary annuitant.
30 (e) The increases in annuity provided in Section
31 13-302(d) shall, as to an employee so electing a reduced
32 annuity, relate to the amount of reduced annuity, and such
33 lesser amount shall constitute the annuity on which such
34 increases shall be based.
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1 (f) For determining the actuarial value under this
2 option of the employee's annuity and the reversionary
3 annuity, the Fund shall use an actuarial table recommended by
4 the Fund's actuarial consultant and approved by the Board of
5 Trustees the following actuarial table shall be used: "1951
6 Group Annuity Male Table of Mortality," set back 5 years for
7 employees, with 3% interest.
8 (Source: P.A. 87-794.)
9 (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
10 Sec. 13-309. Duty disability benefit.
11 (a) Any employee who becomes disabled, which disability
12 is the result of an injury or illness compensable under the
13 Illinois Workers' Compensation Act or the Illinois Workers'
14 Occupational Diseases Act, is entitled to a duty disability
15 benefit during the period of disability for which the
16 employee does not receive any part of salary, or any part of
17 a retirement annuity under this Article; except that in the
18 case of an employee who first enters service on or after the
19 effective date of this amendatory Act of 1997, a duty
20 disability benefit is not payable for the first 3 days of
21 disability that would otherwise be payable under this Section
22 if the disability does not continue for at least 11
23 additional days. This benefit shall be 75% of salary at the
24 date disability begins. However, if the disability in any
25 measure resulted from any physical defect or disease which
26 existed at the time such injury was sustained or such illness
27 commenced, the duty disability benefit shall be 50% of
28 salary.
29 Unless the employer acknowledges that the disability is a
30 result of injury or illness compensable under the Workers'
31 Compensation Act or the Workers' Occupational Diseases Act,
32 the duty disability benefit shall not be payable until the
33 issue of compensability under those Acts is finally
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1 adjudicated. The period of disability shall be as determined
2 by the Illinois Industrial Commission or acknowledged by the
3 employer.
4 The first payment shall be made not later than one month
5 after the benefit is granted, and subsequent payments shall
6 be made at least monthly. The Board shall by rule prescribe
7 for the payment of such benefits on the basis of the amount
8 of salary lost during the period of disability.
9 (b) The benefit shall be allowed only if the following
10 requirements are met by the employee:
11 (1) Application is made to the Board within 90 days
12 from the date disability begins;
13 (2) A medical report is submitted by at least one
14 licensed and practicing physician as part of the
15 employee's application; and
16 (3) The employee is examined by at least one
17 licensed and practicing physician appointed by the Board
18 and found to be in a disabled physical condition, and
19 shall be re-examined at least annually thereafter during
20 the continuance of disability. The employee need not be
21 re-examined by a licensed and practicing physician if the
22 attorney for the district certifies in writing that the
23 employee is entitled to receive compensation under the
24 Workers' Compensation Act or the Workers' Occupational
25 Diseases Act.
26 (c) The benefit shall terminate when:
27 (1) The employee returns to work or receives a
28 retirement annuity paid wholly or in part under this
29 Article;
30 (2) The disability ceases;
31 (3) The employee attains age 65, but if the
32 employee becomes disabled at age 60 or later, benefits
33 may be extended for a period of no more than 5 years
34 after disablement;
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1 (4) The employee (i) refuses to submit to
2 reasonable examinations by physicians or other health
3 professionals appointed by the Board, (ii) fails or
4 refuses to consent to and sign an authorization allowing
5 the Board to receive copies of or to examine the
6 employee's medical and hospital records, or (iii) fails
7 or refuses to provide complete information regarding any
8 other employment for compensation he or she has received
9 since becoming disabled; or
10 (5) The employee willfully and continuously refuses
11 to follow accept medical advice and treatment to enable
12 the employee to return to work. However this provision
13 does not apply to an employee who relies in good faith on
14 treatment by prayer through spiritual means alone in
15 accordance with the tenets and practice of a recognized
16 church or religious denomination, by a duly accredited
17 practitioner thereof.
18 In the case of a duty disability recipient who returns to
19 work, the employee must make application to the Retirement
20 Board within 2 years from the date the employee last received
21 duty disability benefits in order to become again entitled to
22 duty disability benefits based on the injury for which a duty
23 disability benefit was theretofore paid.
24 (Source: P.A. 90-12, eff. 6-13-97.)
25 (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
26 Sec. 13-310. Ordinary disability benefit.
27 (a) Any employee who becomes disabled as the result of
28 any cause other than injury or illness incurred in the
29 performance of duty for the employer or any other employer,
30 or while engaged in self-employment activities, shall be
31 entitled to an ordinary disability benefit. The eligible
32 period for this benefit shall be 25% of the employee's total
33 actual service prior to the date of disability with a
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1 cumulative maximum period of 5 years.
2 (b) The benefit shall be allowed only if the employee
3 files an application in writing with the Board, and a medical
4 report is submitted by at least one licensed and practicing
5 physician as part of the employee's application.
6 The benefit is not payable for any disability which
7 begins during any period of unpaid leave of absence. No
8 benefit shall be allowed for any period of disability prior
9 to 30 days before application is made, unless the Board finds
10 good cause for the delay in filing the application. The
11 benefit shall not be paid during any period for which the
12 employee receives or is entitled to receive any part of
13 salary.
14 The benefit is not payable for any disability which
15 begins during any period of absence from duty other than
16 allowable vacation time in any calendar year. An employee
17 whose disability begins during any such ineligible period of
18 absence from service may not receive benefits until the
19 employee recovers from the disability and is in service for
20 at least 15 consecutive working days after such recovery.
21 In the case of an employee who first enters service on or
22 after the effective date of this amendatory Act of 1997, an
23 ordinary disability benefit is not payable for the first 3
24 days of disability that would otherwise be payable under this
25 Section if the disability does not continue for at least 11
26 additional days.
27 (c) The benefit shall be 50% of the employee's salary at
28 the date of disability, and shall terminate when the earliest
29 of the following occurs:
30 (1) The employee returns to work or receives a
31 retirement annuity paid wholly or in part under this
32 Article;
33 (2) The disability ceases;
34 (3) The employee willfully and continuously refuses
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1 to follow medical advice and treatment to enable the
2 employee to return to work. However this provision does
3 not apply to an employee who relies in good faith on
4 treatment by prayer through spiritual means alone in
5 accordance with the tenets and practice of a recognized
6 church or religious denomination, by a duly accredited
7 practitioner thereof (Blank);
8 (4) The employee (i) refuses to submit to a
9 reasonable physical examination within 30 days of
10 application by a physician appointed by the Board, (ii)
11 or in the case of chronic alcoholism, the employee
12 refuses to join a rehabilitation program licensed by the
13 Department of Public Health of the State of Illinois, and
14 certified by the Joint Commission on the Accreditation of
15 Hospitals, (iii) fails or refuses to consent to and sign
16 an authorization allowing the Board to receive copies of
17 or to examine the employee's medical and hospital
18 records, or (iv) fails or refuses to provide complete
19 information regarding any other employment for
20 compensation he or she has received since becoming
21 disabled; or
22 (5) The eligible period for this benefit has been
23 exhausted.
24 The first payment of the benefit shall be made not later
25 than one month after the same has been granted, and
26 subsequent payments shall be made at intervals of not more
27 than 30 days.
28 (Source: P.A. 90-12, eff. 6-13-97.)
29 (40 ILCS 5/13-311) (from Ch. 108 1/2, par. 13-311)
30 Sec. 13-311. Credit for Workers' Compensation payments.
31 If an employee, or an employee's spouse or children, receives
32 compensation under any workers' compensation or occupational
33 diseases law, the surviving spouse's or child's annuity or
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1 the disability benefit payable under this Article shall be
2 reduced by the amount of the compensation so received if the
3 amount is less than the annuity or benefit. If the
4 compensation exceeds the annuity or benefit, no payment of
5 annuity or benefit shall be made until the period of time has
6 elapsed when the annuity or benefit payable at the rates
7 provided in this Article equals the amount of such
8 compensation. However, the commutation of compensation to a
9 lump sum basis as provided in the workers' compensation or
10 occupational diseases law shall not increase the annuity or
11 benefit provided under this Article; the annuity or benefit
12 to be paid hereunder shall be based on the amount of
13 compensation awarded under such laws prior to commutation of
14 such compensation. No interest shall be considered in these
15 calculations.
16 (Source: P.A. 87-794.)
17 (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
18 Sec. 13-314. Alternative provisions for Water
19 Reclamation District commissioners.
20 (a) Transfer of credits. Any Water Reclamation District
21 commissioner elected by vote of the people and who has
22 elected to participate in this Fund may transfer to this Fund
23 credits and creditable service accumulated under any other
24 pension fund or retirement system established under Articles
25 2 through 18 of this Code, upon payment to the Fund of (1)
26 the amount by which the employer and employee contributions
27 that would have been required if he had participated in this
28 Fund during the period for which credit is being transferred,
29 plus interest, exceeds the amounts actually transferred from
30 such other fund or system to this Fund, plus (2) interest
31 thereon at 6% per year compounded annually from the date of
32 transfer to the date of payment.
33 (b) Alternative annuity. Any participant commissioner
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1 may elect to establish alternative credits for an alternative
2 annuity by electing in writing to make additional optional
3 contributions in accordance with this Section and procedures
4 established by the Board. Such commissioner may discontinue
5 making the additional optional contributions by notifying the
6 fund in writing in accordance with this Section and
7 procedures established by the Board.
8 Additional optional contributions for the alternative
9 annuity shall be as follows:
10 (1) For service after the option is elected, an
11 additional contribution of 3% of salary shall be
12 contributed to the Fund on the same basis and under the
13 same conditions as contributions required under Section
14 13-502.
15 (2) For contributions on past service before the
16 option is elected, the additional contribution shall be
17 3% of the salary for the applicable period of service,
18 plus interest at the annual rate from time to time as
19 determined by the Board, compounded annually from the
20 date of service to the date of payment. Contributions
21 for service before the option is elected may be made in a
22 lump sum payment to the Fund or by contributing to the
23 Fund on the same basis and under the same conditions as
24 contributions required under Section 13-502. All
25 payments for past service must be paid in full before
26 credit is given. No additional optional contributions
27 may be made for any period of service for which credit
28 has been previously forfeited by acceptance of a refund,
29 unless the refund is repaid in full with interest at the
30 rate specified in Section 13-603, from the date of refund
31 to the date of repayment.
32 In lieu of the retirement annuity otherwise payable under
33 this Article, any commissioner who has elected to participate
34 in the Fund and make additional optional contributions in
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1 accordance with this Section, has attained age 55, and has at
2 least 6 years of service credit, may elect to have the
3 retirement annuity computed as follows: 3% of the
4 participant's average final salary as a commissioner for each
5 of the first 8 years of service credit, plus 4% of such
6 salary for each of the next 4 years of service credit, plus
7 5% of such salary for each year of service credit in excess
8 of 12 years, subject to a maximum of 80% of such salary. To
9 the extent such commissioner has made additional optional
10 contributions with respect to only a portion of years of
11 service credit, the retirement annuity will first be
12 determined in accordance with this Section to the extent such
13 additional optional contributions were made, and then in
14 accordance with the remaining Sections of this Article to the
15 extent of years of service credit with respect to which
16 additional optional contributions were not made. The change
17 in minimum retirement age (from 60 to 55) made by this
18 amendatory Act of 1993 applies to persons who begin receiving
19 a retirement annuity under this Section on or after the
20 effective date of this amendatory Act, without regard to
21 whether they are in service on or after that date.
22 (c) Disability benefits. In lieu of the disability
23 benefits otherwise payable under this Article, any
24 commissioner who (1) has elected to participate in the Fund,
25 and (2) has become permanently disabled and as a consequence
26 is unable to perform the duties of office, and (3) was making
27 optional contributions in accordance with this Section at the
28 time the disability was incurred, may elect to receive a
29 disability annuity calculated in accordance with the formula
30 in subsection (b). For the purposes of this subsection, such
31 commissioner shall be considered permanently disabled only
32 if: (i) disability occurs while in service as a commissioner
33 and is of such a nature as to prevent the reasonable
34 performance of the duties of office at the time; and (ii) the
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1 Board has received a written certification by at least 2
2 licensed physicians appointed by it stating that such
3 commissioner is disabled and that the disability is likely to
4 be permanent.
5 (d) Alternative survivor's benefits. In lieu of the
6 survivor's benefits otherwise payable under this Article, the
7 spouse or eligible child of any deceased commissioner who (1)
8 had elected to participate in the Fund, and (2) was either
9 making additional optional contributions on the date of
10 death, or was receiving an annuity calculated under this
11 Section at the time of death, may elect to receive an annuity
12 beginning on the date of the commissioner's death, provided
13 that the spouse and commissioner must have been married on
14 the date of the last termination of a service as commissioner
15 and for a continuous period of at least one year immediately
16 preceding death.
17 The annuity shall be payable beginning on the date of the
18 commissioner's death if the spouse is then age 50 or over, or
19 beginning at age 50 if the age of the spouse is less than 50
20 years. If a minor unmarried child or children of the
21 commissioner, under age 18, also survive, and the child or
22 children are under the care of the eligible spouse, the
23 annuity shall begin as of the date of death of the
24 commissioner without regard to the spouse's age.
25 The annuity to a spouse shall be 66 2/3% of the amount of
26 retirement annuity earned by the commissioner on the date of
27 death, subject to a minimum payment of 10% of salary,
28 provided that if an eligible spouse, regardless of age, has
29 in his or her care at the date of death of the commissioner
30 any unmarried child or children of the commissioner under age
31 18, the minimum annuity shall be 30% of the commissioner's
32 salary, plus 10% of salary on account of each minor child of
33 the commissioner, subject to a combined total payment on
34 account of a spouse and minor children not to exceed 50% of
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1 the deceased commissioner's salary. In the event there shall
2 be no spouse of the commissioner surviving, or should a
3 spouse die while eligible minor children still survive the
4 commissioner, each such child shall be entitled to an annuity
5 equal to 20% of salary of the commissioner subject to a
6 combined total payment on account of all such children not to
7 exceed 50% of salary of the commissioner. The salary to be
8 used in the calculation of these benefits shall be the same
9 as that prescribed for determining a retirement annuity as
10 provided in subsection (b) of this Section.
11 Upon the death of a commissioner occurring after
12 termination of a service or while in receipt of a retirement
13 annuity, the combined total payment to a spouse and minor
14 children, or to minor children alone if no eligible spouse
15 survives, shall be limited to 75% of the amount of retirement
16 annuity earned by the commissioner.
17 Adopted children shall have status as natural children of
18 the commissioner only if the proceedings for adoption were
19 commenced at least one year prior to the date of the
20 commissioner's death.
21 Marriage of a child or attainment of age 18, whichever
22 first occurs, shall render the child ineligible for further
23 consideration in the payment of annuity to a spouse or in the
24 increase in the amount thereof. Upon attainment of
25 ineligibility of the youngest minor child of the
26 commissioner, the annuity shall immediately revert to the
27 amount payable upon death of a commissioner leaving no minor
28 children surviving. If the spouse is under age 50 at such
29 time, the annuity as revised shall be deferred until such age
30 is attained.
31 (e) Refunds. Refunds of additional optional
32 contributions shall be made on the same basis and under the
33 same conditions as provided under Section 13-601. Interest
34 shall be credited on the same basis and under the same
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1 conditions as for other contributions.
2 Optional contributions shall be accounted for in a
3 separate Commission's Optional Contribution Reserve.
4 Optional contributions under this Section shall be included
5 in the amount of employee contributions used to compute the
6 tax levy under Section 13-503.
7 (f) Effective date. The effective date of this plan of
8 optional alternative benefits and contributions shall be the
9 date upon which approval was received from the U.S. Internal
10 Revenue Service. The plan of optional alternative benefits
11 and contributions shall not be available to any former
12 employee receiving an annuity from the Fund on the effective
13 date, unless said former employee re-enters service and
14 renders at least 3 years of additional service after the date
15 of re-entry as a commissioner.
16 (Source: P.A. 90-12, eff. 6-13-97.)
17 (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
18 Sec. 13-603. Restoration of rights. If an employee who
19 has received a refund subsequently re-enters the service and
20 renders one year of contributing service from the date of
21 such re-entry, the employee shall be entitled to have
22 restored all accumulation and service credits previously
23 forfeited by making a repayment of the refund, including
24 interest of 8% per annum from the date of the refund to the
25 date of repayment at a rate equal to the higher of 8% per
26 annum or the actuarial investment return assumption used in
27 the Fund's most recent Annual Actuarial Statement. Repayment
28 may be made either directly to the Fund or in a manner
29 similar to that provided for the contributions required under
30 Section 13-502. The repayment must be made in a lump sum.
31 The service credits represented thereby, or any part thereof,
32 shall not become effective unless the full amount due has
33 been paid by the employee, including interest. If the
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1 employee fails to make a full repayment, any partial amounts
2 paid by the employee shall be refunded without interest if
3 the employee dies in service or withdraws.
4 (Source: P.A. 87-794.)
5 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
6 Sec. 14-118. Widow's annuity - Conditions for payment.
7 A widow who exercises the right of election to receive an
8 annuity pursuant to this Section is entitled to a lump sum
9 payment of $500 plus a widow's annuity, if:
10 (1) she was married to the deceased member:
11 (i) in the case of a member who dies before
12 the effective date of this amendatory Act of the
13 91st General Assembly, for at least one 1 year prior
14 to his death or retirement, whichever first occurs,
15 and also on the day of the last termination of his
16 service as a State employee; or
17 (ii) in the case of a member who dies on or
18 after the effective date of this amendatory Act of
19 the 91st General Assembly, for at least one year
20 immediately prior to the date of death, regardless
21 of the date of withdrawal;
22 (2) the deceased member had at least 8 years of
23 creditable service if death occurred while in service, or
24 while on leave of absence from service, or while in
25 receipt of a nonoccupational disability or occupational
26 disability benefit, or after retirement;
27 (3) she was nominated exclusively to receive the
28 entire death benefit payable under this Article;
29 (4) death of the member occurred after withdrawal,
30 and he had fulfilled the prescribed age and service
31 conditions for establishing a right in a retirement
32 annuity; and
33 (5) she elected to receive the widow's annuity
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1 within 6 months from the date of death of the employee,
2 otherwise the survivors annuity if applicable, shall be
3 payable.
4 If a widow's annuity beneficiary becomes entitled to a
5 survivors annuity and a widow's annuity, she shall elect to
6 receive only one of such annuities.
7 The surviving spouse of a person who (1) died on or after
8 January 1, 1985, (2) withdrew from service prior to August 1,
9 1953, (3) was receiving an annuity from the system at the
10 time of death, and (4) meets all other requirements of this
11 Section, shall be entitled to the benefits provided under
12 this Section.
13 A widow's annuity shall be payable beginning on the first
14 of the month following the date of death of the member if the
15 widow has then attained age 50 or, if she is under age 50 on
16 such date, on the first of the month following her attainment
17 of such age; provided, that if an unmarried child or children
18 of the member under age 18 (or under age 22 if a full-time
19 student) also survive him, and the child or children are
20 under the care of the eligible widow, the widow's annuity
21 shall begin on the first of the month following the member's
22 death without regard to the age of the widow. If she is
23 under age 50 at the death of the member and she qualifies for
24 a widow's annuity, she is entitled to receive the lump sum
25 payment immediately upon application, but payment of the
26 widow's annuity shall be deferred as provided above.
27 The provision for a widow's annuity shall not be
28 construed to affect the payment of a reversionary annuity.
29 If a widow qualifies for more than one widow's annuity, or
30 for a widow's annuity and a survivors annuity, she shall
31 elect to receive only one of such annuities.
32 This Section shall not apply to the widow of any male
33 person who first became a member after July 19, 1961.
34 (Source: P.A. 90-448, eff. 8-16-97.)
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1 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
2 Sec. 14-120. Survivors annuities - Conditions for
3 payments. A survivors annuity is established for all members
4 of the System. Upon the death of any male person who was a
5 member on July 19, 1961, however, his widow may have the
6 option of receiving the widow's annuity provided in this
7 Article, in lieu of the survivors annuity.
8 (a) A survivors annuity beneficiary, as herein defined,
9 is eligible for a survivors annuity if the deceased member
10 had completed at least 1 1/2 years of contributing creditable
11 service if death occurred:
12 (1) while in service;
13 (2) while on an approved or authorized leave of
14 absence from service, not exceeding one year
15 continuously; or
16 (3) while in receipt of a non-occupational
17 disability or an occupational disability benefit.
18 (b) If death of the member occurs after withdrawal, the
19 survivors annuity beneficiary is eligible for such annuity
20 only if the member had fulfilled at the date of withdrawal
21 the prescribed service conditions for establishing a right in
22 a retirement annuity.
23 (c) Payment of the survivors annuity shall begin
24 immediately if the beneficiary is 50 years or over, or upon
25 attainment of age 50 if the beneficiary is under that age at
26 the date of the member's death. In the case of survivors of a
27 member whose death occurred between November 1, 1970 and July
28 15, 1971, the payment of the survivors annuity shall begin
29 upon October 1, 1977, if the beneficiary is then 50 years of
30 age or older, or upon the attainment of age 50 if the
31 beneficiary is under that age on October 1, 1977.
32 If an eligible child or children, under the care of the
33 spouse also survive the member, the survivors annuity shall
34 begin immediately without regard to whether the beneficiary
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1 has attained age 50.
2 Benefits under this Section shall accrue and be payable
3 for whole calendar months, beginning on the first day of the
4 month after the initiating event occurs and ending on the
5 last day of the month in which the terminating event occurs.
6 (d) A survivor annuity beneficiary means:
7 (1) A spouse of a member or annuitant if:
8 (i) in the case of a member or annuitant who
9 dies before the effective date of this amendatory
10 Act of the 91st General Assembly, the current
11 marriage with the member or annuitant was in effect
12 for at least one year at the date of the member or
13 annuitant's death or withdrawal, whichever first
14 occurs; or
15 (ii) in the case of a member or annuitant who
16 dies on or after the effective date of this
17 amendatory Act of the 91st General Assembly, the
18 current marriage with the member or annuitant was in
19 effect for at least one year immediately prior to
20 the date of death, regardless of the date of
21 withdrawal.
22 (2) An unmarried child under age 18 (under age 22
23 if a full-time student) of the member or annuitant; an
24 unmarried stepchild under age 18 (under age 22 if a
25 full-time student) who has been such for at least one
26 year at the date of the member's death or at least one
27 year at the date of withdrawal, whichever first occurs;
28 an unmarried adopted child under age 18 (under age 22 if
29 a full-time student) if the adoption proceedings were
30 initiated at least one year prior to the death or
31 withdrawal of the member or annuitant, whichever first
32 occurs; and an unmarried child over age 18 if he or she
33 is dependent by reason of a physical or mental
34 disability, so long as the physical or mental disability
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1 continues. For purposes of this subsection, disability
2 means inability to engage in any substantial gainful
3 activity by reason of any medically determinable physical
4 or mental impairment which can be expected to result in
5 death or which has lasted or can be expected to last for
6 a continuous period of not less than 12 months.
7 (3) A dependent parent of the member or annuitant;
8 a dependent step-parent by a marriage contracted before
9 the member or annuitant attained age 18; or a dependent
10 adopting parent by whom the member or annuitant was
11 adopted before he or she attained age 18.
12 (e) Payment of a survivors annuity to a beneficiary
13 terminates upon: (1) remarriage before age 55 that occurs
14 before the effective date of this amendatory Act of the 91st
15 General Assembly or death, if the beneficiary is a spouse;
16 (2) marriage or death, if the beneficiary is a child; or (3)
17 remarriage before age 55 or death, if the beneficiary is a
18 parent. Remarriage of a prospective beneficiary prior to the
19 attainment of age 50 disqualifies the beneficiary for the
20 annuity expectancy hereunder, if the remarriage occurs before
21 the effective date of this amendatory Act of the 91st General
22 Assembly. Termination due to a marriage or remarriage shall
23 be permanent, regardless of any future changes in marital
24 status.
25 The substantive changes made to this subsection by this
26 amendatory Act of the 91st General Assembly (pertaining to
27 remarriage prior to age 55 or 50) apply without regard to
28 whether the deceased participant or annuitant was in service
29 on or after the effective date of this amendatory Act.
30 Any person whose survivors annuity was terminated during
31 1978 or 1979 due to remarriage at age 55 or over shall be
32 eligible to apply, not later than July 1, 1990, for a
33 resumption of that annuity, to begin on July 1, 1990.
34 (f) The term "dependent" relating to a survivors annuity
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1 means a beneficiary of a survivors annuity who was receiving
2 from the member at the date of the member's death at least
3 1/2 of the support for maintenance including board, lodging,
4 medical care and like living costs.
5 (g) If there is no eligible spouse surviving the member,
6 or if a survivors annuity beneficiary includes a spouse who
7 dies or is disqualified by remarriage remarries, the annuity
8 is payable to an unmarried child or children. If at the date
9 of death of the member there is no spouse or unmarried child,
10 payments shall be made to a dependent parent or parents. If
11 no eligible survivors annuity beneficiary survives the
12 member, the non-occupational death benefit is payable in the
13 manner provided in this Article.
14 (h) Survivor benefits do not affect any reversionary
15 annuity.
16 (i) If a survivors annuity beneficiary becomes entitled
17 to a widow's annuity or one or more survivors annuities or
18 both such annuities, the beneficiary shall elect to receive
19 only one of such annuities.
20 (j) Contributing creditable service under the State
21 Universities Retirement System and the Teachers' Retirement
22 System of the State of Illinois shall be considered in
23 determining whether the member has met the contributing
24 service requirements of this Section.
25 (k) In lieu of the Survivor's Annuity described in this
26 Section, the spouse of the member has the option to select
27 the Nonoccupational Death Benefit described in this Article,
28 provided the spouse is the sole survivor and the sole
29 nominated beneficiary of the member.
30 (l) The changes made to this Section and Sections
31 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
32 relating to benefits for certain unmarried children who are
33 full-time students under age 22, apply without regard to
34 whether the deceased member was in service on or after the
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1 effective date of this amendatory Act of 1997. These changes
2 do not authorize the repayment of a refund or a re-election
3 of benefits, and any benefit or increase in benefits
4 resulting from these changes is not payable retroactively for
5 any period before the effective date of this amendatory Act
6 of 1997.
7 (Source: P.A. 90-448, eff. 8-16-97; 91-357, eff. 7-29-99.)
8 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
9 Sec. 14-128. Occupational death benefit. An
10 occupational death benefit is provided for a member of the
11 System whose death, prior to retirement, is the proximate
12 result of bodily injuries sustained or a hazard undergone
13 while in the performance and within the scope of the member's
14 duties.
15 (a) Conditions for payment.
16 Exclusive of the lump sum payment provided for herein,
17 all annuities under this Section shall accrue and be payable
18 for complete calendar months, beginning on the first day of
19 the month next following the month in which the initiating
20 event occurs and ending on the last day of the month in which
21 the terminating event occurs.
22 The following named survivors of the member may be
23 eligible for an annuity under this Section:
24 (i) The member's spouse.
25 (ii) An unmarried child of the member under age 18
26 (under age 22 if a full-time student); an unmarried
27 stepchild under age 18 (under age 22 if a full-time
28 student) who has been such for at least one year at the
29 date of the member's death; an unmarried adopted child
30 under age 18 (under age 22 if a full-time student) if the
31 adoption proceedings were initiated at least one year
32 prior to the death of the member; and an unmarried child
33 over age 18 who is dependent by reason of a physical or
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1 mental disability, for so long as such physical or mental
2 disability continues. For the purposes of this Section
3 disability means inability to engage in any substantial
4 gainful activity by reason of any medically determinable
5 physical or mental impairment which can be expected to
6 result in death or which has lasted or can be expected to
7 last for a continuous period of not less than 12 months.
8 (iii) If no spouse or eligible children survive: a
9 dependent parent of the member; a dependent step-parent
10 by a marriage contracted before the member attained age
11 18; or a dependent adopting parent by whom the member was
12 adopted before he or she attained age 18.
13 The term "dependent" relating to an occupational death
14 benefit means a survivor of the member who was receiving from
15 the member at the date of the member's death at least 1/2 of
16 the support for maintenance including board, lodging, medical
17 care and like living costs.
18 Payment of the annuity shall continue until the
19 occurrence of the following:
20 (1) remarriage before age 55 that occurs before the
21 effective date of this amendatory Act of the 91st General
22 Assembly or death, in the case of a surviving spouse;
23 (2) attainment of age 18 or termination of
24 disability, death, or marriage, in the case of an
25 eligible child;
26 (3) remarriage before age 55 or death, in the case
27 of a dependent parent.
28 If none of the aforementioned beneficiaries is living at
29 the date of death of the member, no occupational death
30 benefit shall be payable, but the nonoccupational death
31 benefit shall be payable as provided in this Article.
32 The change made to this subsection by this amendatory Act
33 of the 91st General Assembly (pertaining to remarriage prior
34 to age 55) applies without regard to whether the deceased
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1 member was in service on or after the effective date of this
2 amendatory Act.
3 (b) Amount of benefit.
4 The member's accumulated contributions plus credited
5 interest shall be payable in a lump sum to such person as the
6 member has nominated by written direction, duly acknowledged
7 and filed with the Board, or if no such nomination to the
8 estate of the member. When an annuitant is re-employed by a
9 Department, the accumulated contributions plus credited
10 interest payable on the member's account shall, if the member
11 has not previously elected a reversionary annuity, consist of
12 the excess, if any, of the member's total accumulated
13 contributions plus credited interest for all creditable
14 service over the total amount of all retirement annuity
15 payments received by the member prior to death.
16 In addition to the foregoing payment, an annuity is
17 provided for eligible survivors as follows:
18 (1) If the survivor is a spouse only, the annuity
19 shall be 50% of the member's final average compensation.
20 (2) If the spouse has in his or her care an
21 eligible child or children, the annuity shall be
22 increased by an amount equal to 15% of the final average
23 compensation on account of each such child, subject to a
24 limitation on the combined annuities to a surviving
25 spouse and children of 75% of final average compensation.
26 (3) If there is no surviving spouse, or if the
27 surviving spouse dies or remarries while a child remains
28 eligible, then each such child shall be entitled to an
29 annuity of 15% of the deceased member's final average
30 compensation, subject to a limitation of 50% of final
31 average compensation to all such children.
32 (4) If there is no surviving spouse or eligible
33 children, then an annuity shall be payable to the
34 member's dependent parents, equal to 25% of final average
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1 compensation to each such beneficiary.
2 If any annuity payable under this Section is less than
3 the corresponding survivors annuity, the beneficiary or
4 beneficiaries of the annuity under this Section may elect to
5 receive the survivors annuity and the nonoccupational death
6 benefit provided for in this Article in lieu of the annuity
7 provided under this Section.
8 (c) Occupational death claims pending adjudication by
9 the Industrial Commission or a ruling by the agency
10 responsible for determining the liability of the State under
11 the "Workers' Compensation Act" or "Workers' Occupational
12 Diseases Act" shall be payable under Sections 14-120 and
13 14-121 the Survivor's Annuity Section of this Article until a
14 ruling or adjudication occurs, if the beneficiary or
15 beneficiaries: (1) meet all conditions for payment as
16 prescribed in this Article; and (2) execute an assignment of
17 benefits payable as a result of adjudication by the
18 Industrial Commission or a ruling by the agency responsible
19 for determining the liability of the State under such Acts.
20 The assignment shall be made to the System and shall be for
21 an amount equal to the excess of benefits paid under Sections
22 14-120 and 14-121 the Survivor's Annuity Section of this
23 Article over benefits payable as a result of adjudication of
24 the workers' compensation claim computed from the date of
25 death of the member.
26 (d) Every occupational death annuity payable under this
27 Section shall be increased on each January 1 occurring on or
28 after (i) January 1, 1990, or (ii) the first anniversary of
29 the commencement of the annuity, whichever occurs later, by
30 an amount equal to 3% of the current amount of the annuity,
31 including any previous increases under this Article, without
32 regard to whether the deceased member was in service on the
33 effective date of this amendatory Act of 1991.
34 (Source: P.A. 90-448, eff. 8-16-97.)
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1 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
2 Sec. 14-130. Refunds; rules.
3 (a) Upon withdrawal a member is entitled to receive,
4 upon written request, a refund of the member's contributions,
5 including credits granted while in receipt of disability
6 benefits, without credited interest. The board, in its
7 discretion may withhold payment of the refund of a member's
8 contributions for a period not to exceed 1 year after the
9 member has ceased to be an employee.
10 For purposes of this Section, a member will be considered
11 to have withdrawn from service if a change in, or transfer
12 of, his position results in his becoming ineligible for
13 continued membership in this System and eligible for
14 membership in another public retirement system under this
15 Act.
16 (b) A member receiving a refund forfeits and
17 relinquishes all accrued rights in the System, including all
18 accumulated creditable service. If the person again becomes
19 a member of the System and establishes at least 2 years of
20 creditable service, the member may repay the moneys
21 previously refunded. However, a former member may restore
22 credits previously forfeited by acceptance of a refund
23 without returning to service by applying in writing and
24 repaying to the System, by April 1, 1993, the amount of the
25 refund plus regular interest calculated from the date of
26 refund to the date of repayment.
27 The repayment of refunds issued prior to January 1, 1984
28 shall consist of the amount refunded plus 5% interest per
29 annum compounded annually for the period from the date of the
30 refund to the end of the month in which repayment is made.
31 The repayment of refunds issued after January 1, 1984 shall
32 consist of the amount refunded plus regular interest for the
33 period from the date of refund to the end of the month in
34 which repayment is made. However, in the case of a refund
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1 that is repaid in a lump sum between January 1, 1991 and July
2 1, 1991, repayment shall consist of the amount refunded plus
3 interest at the rate of 2.5% per annum compounded annually
4 from the date of the refund to the end of the month in which
5 repayment is made.
6 Upon repayment, the member shall receive credit for the
7 service, member contributions and regular interest that was
8 forfeited by acceptance of the refund as well as regular
9 interest for the period of non-membership. Such repayment
10 shall be made in full before retirement either in a lump sum
11 or in installment payments in accordance with such rules as
12 may be adopted by the board.
13 (b-5) The Board may adopt rules governing the repayment
14 of refunds and establishment of credits in cases involving
15 awards of back pay or reinstatement. The rules may authorize
16 repayment of a refund in installment payments and may waive
17 the payment of interest on refund amounts repaid in full
18 within a specified period.
19 (c) A member no longer in service who is unmarried and
20 on the date of retirement or who does not have an eligible
21 survivors annuity beneficiary on the at that date of
22 application therefor is entitled to a refund of contributions
23 for widow's annuity or survivors annuity purposes, or both,
24 as the case may be, without interest. A widow's annuity or
25 survivors annuity shall not be payable upon the death of a
26 person who has received this refund, unless prior to that
27 death the amount of the refund has been repaid to the System,
28 together with regular interest from the date of the refund to
29 the date of repayment.
30 (d) Any member who has service credit in any position
31 for which an alternative retirement annuity is provided and
32 in relation to which an increase in the rate of employee
33 contribution is required, shall be entitled to a refund,
34 without interest, of that part of the member's employee
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1 contribution which results from that increase in the employee
2 rate if the member does not qualify for that alternative
3 retirement annuity at the time of retirement.
4 (Source: P.A. 90-448, eff. 8-16-97.)
5 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
6 Sec. 15-107. Employee.
7 (a) "Employee" means any member of the educational,
8 administrative, secretarial, clerical, mechanical, labor or
9 other staff of an employer whose employment is permanent and
10 continuous or who is employed in a position in which services
11 are expected to be rendered on a continuous basis for at
12 least 4 months or one academic term, whichever is less, who
13 (A) receives payment for personal services on a warrant
14 issued pursuant to a payroll voucher certified by an employer
15 and drawn by the State Comptroller upon the State Treasurer
16 or by an employer upon trust, federal or other funds, or (B)
17 is on a leave of absence without pay. Employment which is
18 irregular, intermittent or temporary shall not be considered
19 continuous for purposes of this paragraph.
20 However, a person is not an "employee" if he or she:
21 (1) is a student enrolled in and regularly
22 attending classes in a college or university which is an
23 employer, and is employed on a temporary basis at less
24 than full time;
25 (2) is currently receiving a retirement annuity or
26 a disability retirement annuity under Section 15-153.2
27 from this System;
28 (3) is on a military leave of absence;
29 (4) is eligible to participate in the Federal Civil
30 Service Retirement System and is currently making
31 contributions to that system based upon earnings paid by
32 an employer;
33 (5) is on leave of absence without pay for more
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1 than 60 days immediately following termination of
2 disability benefits under this Article;
3 (6) is hired after June 30, 1979 as a public
4 service employment program participant under the Federal
5 Comprehensive Employment and Training Act and receives
6 earnings in whole or in part from funds provided under
7 that Act;
8 (7) is employed on or after July 1, 1991 to perform
9 services that are excluded by subdivision (a)(7)(f) or
10 (a)(19) of Section 210 of the federal Social Security Act
11 from the definition of employment given in that Section
12 (42 U.S.C. 410); or
13 (8) participates in an optional program for
14 part-time workers under Section 15-158.1.
15 (b) Any employer may, by filing a written notice with
16 the board, exclude from the definition of "employee" all
17 persons employed pursuant to a federally funded contract
18 entered into after July 1, 1982 with a federal military
19 department in a program providing training in military
20 courses to federal military personnel on a military site
21 owned by the United States Government, if this exclusion is
22 not prohibited by the federally funded contract or federal
23 laws or rules governing the administration of the contract.
24 (c) Any person appointed by the Governor under the Civil
25 Administrative Code of the State is an employee, if he or she
26 is a participant in this system on the effective date of the
27 appointment.
28 (d) A participant on lay-off status under civil service
29 rules is considered an employee for not more than 120 days
30 from the date of the lay-off.
31 (e) A participant is considered an employee during (1)
32 the first 60 days of disability leave, (2) the period, not to
33 exceed one year, in which his or her eligibility for
34 disability benefits is being considered by the board or
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1 reviewed by the courts, and (3) the period he or she receives
2 disability benefits under the provisions of Section 15-152,
3 workers' compensation or occupational disease benefits, or
4 disability income under an insurance contract financed wholly
5 or partially by the employer.
6 (f) Absences without pay, other than formal leaves of
7 absence, of less than 30 calendar days, are not considered as
8 an interruption of a person's status as an employee. If such
9 absences during any period of 12 months exceed 30 work days,
10 the employee status of the person is considered as
11 interrupted as of the 31st work day.
12 (g) A staff member whose employment contract requires
13 services during an academic term is to be considered an
14 employee during the summer and other vacation periods, unless
15 he or she declines an employment contract for the succeeding
16 academic term or his or her employment status is otherwise
17 terminated, and he or she receives no earnings during these
18 periods.
19 (h) An individual who was a participating employee
20 employed in the fire department of the University of
21 Illinois's Champaign-Urbana campus immediately prior to the
22 elimination of that fire department and who immediately after
23 the elimination of that fire department became employed by
24 the fire department of the City of Urbana or the City of
25 Champaign shall continue to be considered as an employee for
26 purposes of this Article for so long as the individual
27 remains employed as a firefighter by the City of Urbana or
28 the City of Champaign. The individual shall cease to be
29 considered an employee under this subsection (h) upon the
30 first termination of the individual's employment as a
31 firefighter by the City of Urbana or the City of Champaign.
32 (i) An individual who is employed on a full-time basis
33 as an officer or employee of a statewide teacher organization
34 that serves System participants or an officer of a national
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1 teacher organization that serves System participants may
2 participate in the System and shall be deemed an employee,
3 provided that (1) the individual has previously earned
4 creditable service under this Article, (2) the individual
5 files with the System an irrevocable election to become a
6 participant, and (3) the individual does not receive credit
7 for that employment under any other Article of this Code. An
8 employee under this subsection (i) is responsible for paying
9 to the System both (A) employee contributions based on the
10 actual compensation received for service with the teacher
11 organization and (B) employer contributions equal to the
12 normal costs (as defined in Section 15-155) resulting from
13 that service; all or any part of these contributions may be
14 paid on the employee's behalf or picked up for tax purposes
15 (if authorized under federal law) by the teacher
16 organization.
17 A person who is an employee as defined in this subsection
18 (i) may establish service credit for similar employment prior
19 to becoming an employee under this subsection by paying to
20 the System for that employment the contributions specified in
21 this subsection, plus interest at the effective rate from the
22 date of service to the date of payment. However, credit
23 shall not be granted under this subsection for any such prior
24 employment for which the applicant received credit under any
25 other provision of this Code, or during which the applicant
26 was on a leave of absence under Section 15-113.2.
27 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
28 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
29 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
30 Sec. 15-111. Earnings. "Earnings": An amount paid for
31 personal services equal to the sum of the basic compensation
32 plus extra compensation for summer teaching, overtime or
33 other extra service. For periods for which an employee
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1 receives service credit under subsection (c) of Section
2 15-113.1 or Section 15-113.2, earnings are equal to the basic
3 compensation on which contributions are paid by the employee
4 during such periods. Compensation for employment which is
5 irregular, intermittent and temporary shall not be considered
6 earnings, unless the participant is also receiving earnings
7 from the employer as an employee under Section 15-107.
8 With respect to transition pay paid by the University of
9 Illinois to a person who was a participating employee
10 employed in the fire department of the University of
11 Illinois's Champaign-Urbana campus immediately prior to the
12 elimination of that fire department:
13 (1) "Earnings" includes transition pay paid to the
14 employee on or after the effective date of this
15 amendatory Act of the 91st General Assembly.
16 (2) "Earnings" includes transition pay paid to the
17 employee before the effective date of this amendatory Act
18 of the 91st General Assembly only if (i) employee
19 contributions under Section 15-157 have been withheld
20 from that transition pay or (ii) the employee pays to the
21 System before January 1, 2001 an amount representing
22 employee contributions under Section 15-157 on that
23 transition pay. Employee contributions under item (ii)
24 may be paid in a lump sum, by withholding from additional
25 transition pay accruing before January 1, 2001, or in any
26 other manner approved by the System. Upon payment of the
27 employee contributions on transition pay, the
28 corresponding employer contributions become an obligation
29 of the State.
30 (Source: P.A. 87-8.)
31 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
32 Sec. 15-112. Final rate of earnings. "Final rate of
33 earnings": For an employee who is paid on an hourly basis or
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1 who receives an annual salary in installments during 12
2 months of each academic year, the average annual earnings
3 during the 48 consecutive calendar month period ending with
4 the last day of final termination of employment or the 4
5 consecutive academic years of service in which the employee's
6 earnings were the highest, whichever is greater. For any
7 other employee, the average annual earnings during the 4
8 consecutive academic years of service in which his or her
9 earnings were the highest. For an employee with less than 48
10 months or 4 consecutive academic years of service, the
11 average earnings during his or her entire period of service.
12 The earnings of an employee with more than 36 months of
13 service prior to the date of becoming a participant are, for
14 such period, considered equal to the average earnings during
15 the last 36 months of such service. For an employee on leave
16 of absence with pay, or on leave of absence without pay who
17 makes contributions during such leave, earnings are assumed
18 to be equal to the basic compensation on the date the leave
19 began. For an employee on disability leave, earnings are
20 assumed to be equal to the basic compensation on the date
21 disability occurs or the average earnings during the 24
22 months immediately preceding the month in which disability
23 occurs, whichever is greater.
24 For a participant who retires on or after the effective
25 date of this amendatory Act of 1997 with at least 20 years of
26 service as a firefighter or police officer under this
27 Article, the final rate of earnings shall be the annual rate
28 of earnings received by the participant on his or her last
29 day as a firefighter or police officer under this Article, if
30 that is greater than the final rate of earnings as calculated
31 under the other provisions of this Section.
32 If a participant is an employee for at least 6 months
33 during the academic year in which his or her employment is
34 terminated, the annual final rate of earnings shall be 25% of
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1 the sum of (1) the annual basic compensation for that year,
2 and (2) the amount earned during the 36 months immediately
3 preceding that year, if this is greater than the final rate
4 of earnings as calculated under the other provisions of this
5 Section.
6 In the determination of the final rate of earnings for an
7 employee, that part of an employee's earnings for any
8 academic year beginning after June 30, 1997, which exceeds
9 the employee's earnings with that employer for the preceding
10 year by more than 20 percent shall be excluded; in the event
11 that an employee has more than one employer this limitation
12 shall be calculated separately for the earnings with each
13 employer. In making such calculation, only the basic
14 compensation of employees shall be considered, without regard
15 to vacation or overtime or to contracts for summer
16 employment.
17 The following are not considered as earnings in
18 determining final rate of earnings: severance or separation
19 pay, retirement pay, payment in lieu of unused sick leave and
20 payments from an employer for the period used in determining
21 final rate of earnings for any purpose other than services
22 rendered, leave of absence or vacation granted during that
23 period, and vacation of up to 56 work days allowed upon
24 termination of employment under a vacation policy of an
25 employer which was in effect on or before January 1, 1977.
26 Intermittent periods of service shall be considered as
27 consecutive in determining final rate of earnings.
28 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
29 (40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
30 Sec. 15-120. Beneficiary; survivor annuitant under
31 portable benefit package. "Beneficiary": The person or
32 persons designated by the participant or annuitant in the
33 last written designation on file with the board; or if no
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1 person so designated survives, or if no designation is on
2 file, the estate of the participant or annuitant. Acceptance
3 by the participant of a refund of accumulated contributions
4 shall result in cancellation of all beneficiary designations
5 previously filed. A spouse whose marriage was dissolved shall
6 be disqualified as beneficiary unless the spouse was
7 designated as beneficiary after the effective date of the
8 dissolution of marriage.
9 After a joint and survivor annuity commences under the
10 portable benefit package, the survivor annuitant of a joint
11 and survivor annuity is not disqualified, and may not be
12 removed, as the survivor annuitant by a dissolution of the
13 survivor's marriage with the participant or annuitant.
14 (Source: P.A. 83-1440.)
15 (40 ILCS 5/15-132.2 new)
16 Sec. 15-132.2. Retire and retirement. A participant
17 "retires", and his or her "retirement" begins, when his or
18 her annuity payment period begins.
19 (40 ILCS 5/15-134.5)
20 Sec. 15-134.5. Retirement program elections.
21 (a) All participating employees are participants under
22 the traditional benefit package prior to January 1, 1998.
23 Effective as of the date that an employer elects, as
24 described in Section 15-158.2, to offer to its employees the
25 portable benefit package and the self-managed plan as
26 alternatives to the traditional benefit package, each of that
27 employer's eligible employees (as defined in subsection (b))
28 shall be given the choice to elect which retirement program
29 he or she wishes to participate in with respect to all
30 periods of covered employment occurring on and after the
31 effective date of the employee's election. The retirement
32 program election made by an eligible employee must be made in
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1 writing, in the manner prescribed by the System, and within
2 the time period described in subsection (d) or (d-1).
3 The employee election authorized by this Section is a
4 one-time, irrevocable election. If an employee terminates
5 employment after making the election provided under this
6 subsection (a), then upon his or her subsequent re-employment
7 with an employer the original election shall automatically
8 apply to him or her, provided that the employer is then a
9 participating employer as described in Section 15-158.2.
10 An eligible employee who fails to make this election
11 shall, by default, participate in the traditional benefit
12 package.
13 (b) "Eligible employee" means an employee (as defined in
14 Section 15-107) who is either a currently eligible employee
15 or a newly eligible employee. For purposes of this Section,
16 a "currently eligible employee" is an employee who is
17 employed by an employer on the effective date on which the
18 employer offers to its employees the portable benefit package
19 and the self-managed plan as alternatives to the traditional
20 benefit package. A "newly eligible employee" is an employee
21 who first becomes employed by an employer after the effective
22 date on which the employer offers its employees the portable
23 benefit package and the self-managed plan as alternatives to
24 the traditional benefit package. A newly eligible employee
25 participates in the traditional benefit package until he or
26 she makes an election to participate in the portable benefit
27 package or the self-managed plan. If an employee does not
28 elect to participate in the portable benefit package or the
29 self-managed plan, he or she shall continue to participate in
30 the traditional benefit package by default.
31 (c) An eligible employee who at the time he or she is
32 first eligible to make the election described in subsection
33 (a) does not have sufficient age and service to qualify for a
34 retirement annuity under Section 15-135 may elect to
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1 participate in the traditional benefit package, the portable
2 benefit package, or the self-managed plan. An eligible
3 employee who has sufficient age and service to qualify for a
4 retirement annuity under Section 15-135 at the time he or she
5 is first eligible to make the election described in
6 subsection (a) may elect to participate in the traditional
7 benefit package or the portable benefit package, but may not
8 elect to participate in the self-managed plan.
9 (d) A currently eligible employee must make this
10 election within one year after the effective date of the
11 employer's adoption of the self-managed plan.
12 A newly eligible employee must make this election within
13 6 months after the date on which the System receives the
14 report of status certification from the employer 60 days
15 after becoming an eligible employee. If an employee elects to
16 participate in the self-managed plan, no employer
17 contributions shall be remitted to the self-managed plan when
18 the employee's account balance transfer is made. Employer
19 contributions to the self-managed plan shall commence as of
20 the first pay period that begins after the System receives
21 the employee's election.
22 (d-1) A newly eligible employee who, prior to the
23 effective date of this amendatory Act of the 91st General
24 Assembly, fails to make the election within the period
25 provided under subsection (d) and participates by default in
26 the traditional benefit package may make a late election to
27 participate in the portable benefit package or the
28 self-managed plan instead of the traditional benefit package
29 at any time within 6 months after the effective date of this
30 amendatory Act of the 91st General Assembly. The employer
31 shall not remit contributions to the System on behalf of a
32 newly eligible employee until the earlier of the expiration
33 of the employee's 60-day election period or the date on which
34 the employee submits a properly completed election to the
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1 employer or to the System.
2 (e) If a currently an eligible employee elects the
3 portable benefit package, that election shall not become
4 effective until the one-year anniversary of the date on which
5 the election is filed with the System, provided the employee
6 remains continuously employed by the employer throughout the
7 one-year waiting period, and any benefits payable to or on
8 account of the employee before such one-year waiting period
9 has ended shall not be determined under the provisions
10 applicable to the portable benefit package but shall instead
11 be determined in accordance with the traditional benefit
12 package. If a currently an eligible employee who has elected
13 the portable benefit package terminates employment covered by
14 the System before the one-year waiting period has ended, then
15 no benefits shall be determined under the portable benefit
16 package provisions while he or she is inactive in the System
17 and upon re-employment with an employer covered by the System
18 he or she shall begin a new one-year waiting period before
19 the provisions of the portable benefit package become
20 effective.
21 (f) An eligible employee shall be provided with written
22 information prepared or prescribed by the System which
23 describes the employee's retirement program choices. The
24 eligible employee shall be offered an opportunity to receive
25 counseling from the System prior to making his or her
26 election. This counseling may consist of videotaped
27 materials, group presentations, individual consultation with
28 an employee or authorized representative of the System in
29 person or by telephone or other electronic means, or any
30 combination of these methods.
31 (Source: P.A. 90-766, eff. 8-14-98.)
32 (40 ILCS 5/15-136.4)
33 Sec. 15-136.4. Retirement and Survivor Benefits Under
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1 Portable Benefit Package.
2 (a) This Section 15-136.4 describes the form of annuity
3 and survivor benefits available to a participant who has
4 elected the portable benefit package and has completed the
5 one-year waiting period required under subsection (e) of
6 Section 15-134.5. For purposes of this Section, the term
7 "eligible spouse" means the husband or wife of a participant
8 to whom the participant is married on the date the
9 participant's retirement annuity begins, provided however,
10 that if the participant should die prior to the commencement
11 of retirement annuity benefits, then "eligible spouse" means
12 the husband or wife, if any, to whom the participant was
13 married throughout the one-year period preceding the date of
14 his or her death.
15 (b) This subsection (b) describes the normal form of
16 annuity payable to a participant subject to this Section
17 15-136.4. If the participant is unmarried on the date his or
18 her annuity payments commence, then the annuity payments
19 shall be made in the form of a single-life annuity as
20 described in Section 15-118. If the participant is married
21 on the date his or her annuity payments commence, then the
22 annuity payments shall be paid in the form of a qualified
23 joint and survivor annuity that is the actuarial equivalent
24 of the single-life annuity. Under the "qualified joint and
25 survivor annuity", a reduced amount shall be paid to the
26 participant for his or her lifetime and his or her eligible
27 spouse, if surviving at the participant's death, shall be
28 entitled to receive thereafter a lifetime survivorship
29 annuity in a monthly amount equal to 50% of the reduced
30 monthly amount that was payable to the participant. The last
31 payment of a qualified joint and survivor annuity shall be
32 made as of the first day of the month in which the death of
33 the survivor occurs.
34 (c) Instead of the normal form of annuity that would be
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1 paid under subsection (b), a participant may elect in writing
2 within the 90-day period prior to the date his or her annuity
3 payments commence to waive the normal form of annuity payment
4 and receive an optional form of annuity as described in
5 subsection (h). If the participant is married and elects an
6 optional form of annuity under subsection (h) other than a
7 joint and survivor annuity with the eligible spouse
8 designated as the contingent annuitant, then such election
9 shall require the consent of his or her eligible spouse in
10 the manner described in subsection (d). At any time during
11 the 90-day period preceding the date the participant's
12 annuity commences, the participant may revoke the optional
13 form elected under this subsection (c) and reinstate coverage
14 under the qualified joint and survivor annuity without the
15 spouse's consent, but an election to revoke the optional form
16 elected and elect a new optional form or designate a
17 different contingent annuitant shall not be effective without
18 the eligible spouse's consent.
19 (d) The eligible spouse's consent to any election made
20 pursuant to this Section that requires the eligible spouse's
21 consent shall be in writing and shall acknowledge the effect
22 of the consent. In addition, the eligible spouse's signature
23 on the written consent must be witnessed by a notary public.
24 The eligible spouse's consent need not be obtained if the
25 system is satisfied that there is no eligible spouse, that
26 the eligible spouse cannot be located, or because of any
27 other relevant circumstances. An eligible spouse's consent
28 under this Section is valid only with respect to the
29 specified optional form of payment and, if applicable,
30 contingent annuitant designated by the participant. If the
31 optional form of payment or the contingent annuitant is
32 subsequently changed (other than by a revocation of the
33 optional form and reinstatement of the qualified joint and
34 survivor annuity), a new consent by the eligible spouse is
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1 required. The eligible spouse's consent to an election made
2 by a participant pursuant to this Section, once made, may not
3 be revoked by the eligible spouse.
4 (e) Within a reasonable period of time preceding the
5 date a participant's annuity commences, a participant shall
6 be supplied with a written explanation of (1) the terms and
7 conditions of the normal form single-life annuity and
8 qualified joint and survivor annuity, (2) the participant's
9 right to elect a single-life annuity or an optional form of
10 payment under subsection (h) subject to his or her eligible
11 spouse's consent, if applicable, and (3) the participant's
12 right to reinstate coverage under the qualified joint and
13 survivor annuity prior to his or her annuity commencement
14 date by revoking an election of an optional form of benefit
15 under subsection (h).
16 (f) If a married participant with at least 1.5 years 5
17 years of service dies prior to commencing retirement annuity
18 payments and prior to taking a refund under Section 15-154,
19 his or her eligible spouse is entitled to receive a
20 pre-retirement survivor annuity, if there is not then in
21 effect a waiver of the pre-retirement survivor annuity. The
22 pre-retirement survivor annuity payable under this subsection
23 shall be a monthly annuity payable for the eligible spouse's
24 life, commencing as of the beginning of the month next
25 following the later of the date of the participant's death or
26 the date the participant would have first met the eligibility
27 requirements for retirement, and continuing through the
28 beginning of the month in which the death of the eligible
29 spouse occurs. The monthly amount payable to the spouse
30 under the pre-retirement survivor annuity shall be equal to
31 the monthly amount that would be payable as a survivor
32 annuity under the qualified joint and survivor annuity
33 described in subsection (b) if: (1) in the case of a
34 participant who dies on or after the date on which the
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1 participant has met the eligibility requirements for
2 retirement, the participant had retired with an immediate
3 qualified joint and survivor annuity on the day before the
4 participant's date of death; or (2) in the case of a
5 participant who dies before the earliest date on which the
6 participant would have met the eligibility requirements for
7 retirement age, the participant had separated from service on
8 the date of death, survived to the earliest retirement age
9 based on service prior to his or her death, retired with an
10 immediate qualified joint and survivor annuity at the
11 earliest retirement age, and died on the day after the day on
12 which the participant would have attained the earliest
13 retirement age.
14 (g) A married participant who has not retired may elect
15 at any time to waive the pre-retirement survivor annuity
16 described in subsection (f). Any such election shall require
17 the consent of the participant's eligible spouse in the
18 manner described in subsection (e). A waiver of the
19 pre-retirement survivor annuity shall increase the lump sum
20 death benefit payable under subsection (b) of Section 15-141.
21 Prior to electing any waiver of the pre-retirement survivor
22 annuity, the participant shall be provided with a written
23 explanation of (1) the terms and conditions of the
24 pre-retirement survivor annuity and the death benefits
25 payable from the system both with and without the
26 pre-retirement survivor annuity, (2) the participant's right
27 to elect a waiver of the pre-retirement survivor annuity
28 coverage subject to his or her spouse's consent, and (3) the
29 participant's right to reinstate pre-retirement survivor
30 annuity coverage at any time by revoking a prior waiver of
31 such coverage.
32 (h) By filing a timely election with the system, a
33 participant who will be eligible to receive a retirement
34 annuity under this Section may waive the normal form of
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1 annuity payment described in subsection (b), subject to
2 obtaining the consent of his or her eligible spouse, if
3 applicable, and elect to receive any one of the following
4 optional annuity forms:
5 (1) Joint and Survivor Annuity Options: The
6 participant may elect to receive a reduced annuity
7 payable for his or her life and to have a lifetime
8 survivorship annuity in a monthly amount equal to 50%,
9 75%, or 100% (as elected by the participant) of that
10 reduced monthly amount, to be paid after the
11 participant's death to his or her contingent annuitant,
12 if the contingent annuitant is alive at the time of the
13 participant's death.
14 (2) Single-Life Annuity Option (optional for
15 married participants). The participant may elect to
16 receive a single-life annuity payable for his or her life
17 only.
18 (3) Lump sum retirement benefit. The participant
19 may elect to receive a lump sum retirement benefit that
20 is equal to the amount of a refund payable under Section
21 15-154(a-2).
22 All optional annuity forms shall be in an amount that is the
23 actuarial equivalent of the single-life annuity.
24 For the purposes of this Section, the term "contingent
25 annuitant" means the beneficiary who is designated by a
26 participant at the time the participant elects a joint and
27 survivor annuity to receive the lifetime survivorship annuity
28 in the event the beneficiary survives the participant at the
29 participant's death.
30 (i) Under no circumstances may an option be elected,
31 changed, or revoked after the date the participant's
32 retirement annuity commences.
33 (j) An election made pursuant to subsection (h) shall
34 become inoperative if the participant or the contingent
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1 annuitant dies before the date the participant's annuity
2 payments commence, or if the eligible spouse's consent is
3 required and not given.
4 (k) (Blank). For purposes of applying the provisions of
5 Section 20-123 of this Code, the portable benefit package
6 shall be treated as if it were provided by a participating
7 system that has no survivor's annuity benefit.
8 (l) The automatic annual increases described in
9 subsection (d) of Section 15-136 shall apply to retirement
10 benefits under the portable benefit package and the automatic
11 annual increases described in subsection (j) of Section
12 15-145 shall apply to survivor benefits under the portable
13 benefit package.
14 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
15 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
16 Sec. 15-139. Retirement annuities; cancellation;
17 suspended during employment.
18 (a) If an annuitant returns to employment for an
19 employer within 60 days after the beginning of the retirement
20 annuity payment period, the retirement annuity shall be
21 cancelled, and the annuitant shall refund to the System the
22 total amount of the retirement annuity payments which he or
23 she received. If the retirement annuity is cancelled, the
24 participant shall continue to participate in the System.
25 (b) If an annuitant retires prior to age 60 and receives
26 or becomes entitled to receive during any month compensation
27 in excess of the monthly retirement annuity (including any
28 automatic annual increases) for services performed after the
29 date of retirement for any employer under this System, the
30 State Employees' Retirement System of Illinois, or the
31 Teachers' Retirement System of the State of Illinois, that
32 portion of the monthly retirement annuity provided by
33 employer contributions shall not be payable.
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1 If an annuitant retires at age 60 or over and receives or
2 becomes entitled to receive during any academic year
3 compensation in excess of the difference between his or her
4 highest annual earnings prior to retirement and his or her
5 annual retirement annuity computed under Rule 1, Rule 2, Rule
6 3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
7 services performed after the date of retirement for any
8 employer under this System, that portion of the monthly
9 retirement annuity provided by employer contributions shall
10 be reduced by an amount equal to the compensation that
11 exceeds such difference.
12 However, any remuneration received for serving as a
13 member of the Illinois Educational Labor Relations Board
14 shall be excluded from "compensation" for the purposes of
15 this subsection (b), and serving as a member of the Illinois
16 Educational Labor Relations Board shall not be deemed to be a
17 return to employment for the purposes of this Section. This
18 provision applies without regard to whether service was
19 terminated prior to the effective date of this amendatory Act
20 of 1991.
21 (c) If an employer certifies that an annuitant has been
22 reemployed on a permanent and continuous basis or in a
23 position in which the annuitant is expected to serve for at
24 least 9 months, the annuitant shall resume his or her status
25 as a participating employee and shall be entitled to all
26 rights applicable to participating employees upon filing with
27 the board an election to forego all annuity payments during
28 the period of reemployment. Upon subsequent retirement, the
29 retirement annuity shall consist of the annuity which was
30 terminated by the reemployment, plus the additional
31 retirement annuity based upon service granted during the
32 period of reemployment, but the combined retirement annuity
33 shall not exceed the maximum annuity applicable on the date
34 of the last retirement.
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1 The total service and earnings credited before and after
2 the initial date of retirement shall be considered in
3 determining eligibility of the employee or the employee's
4 beneficiary to benefits under this Article, and in
5 calculating final rate of earnings.
6 In determining the death benefit payable to a beneficiary
7 of an annuitant who again becomes a participating employee
8 under this Section, accumulated normal and additional
9 contributions shall be considered as the sum of the
10 accumulated normal and additional contributions at the date
11 of initial retirement and the accumulated normal and
12 additional contributions credited after that date, less the
13 sum of the annuity payments received by the annuitant.
14 The survivors insurance benefits provided under Section
15 15-145 shall not be applicable to an annuitant who resumes
16 his or her status as a participating employee, unless the
17 annuitant, at the time of initial retirement, has a survivors
18 insurance beneficiary who could qualify for such benefits.
19 If the annuitant's employment is terminated because of
20 circumstances other than death before 9 months from the date
21 of reemployment, the provisions of this Section regarding
22 resumption of status as a participating employee shall not
23 apply. The normal and survivors insurance contributions which
24 are deducted during this period shall be refunded to the
25 annuitant without interest, and subsequent benefits under
26 this Article shall be the same as those which were applicable
27 prior to the date the annuitant resumed employment.
28 The amendments made to this Section by this amendatory
29 Act of the 91st General Assembly apply without regard to
30 whether the annuitant was in service on or after the
31 effective date of this amendatory Act.
32 (Source: P.A. 86-1488.)
33 (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
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1 Sec. 15-140. Reversionary annuities. A participant in
2 the traditional benefit package entitled to a retirement
3 annuity may, prior to retirement, elect to take a reduced
4 retirement annuity and provide with the actuarial value of
5 the reduction, a reversionary annuity to a dependent
6 beneficiary, subject to the following conditions: (1) the
7 participant's written notice of election to provide such
8 annuity is received by the board at least 30 days before the
9 retirement annuity payment period begins, and (2) the amount
10 of the reversionary annuity is not less than $10 per month,
11 and (3) the reversionary annuity is payable only if the
12 participant dies after retirement.
13 The participant may revoke the election by filing a
14 written notice of revocation with the board. The
15 beneficiary's death prior to retirement of the participant
16 shall constitute a revocation of the election.
17 The amount of the reversionary annuity shall be that
18 specified in the participant's notice of election, but not
19 more than the amount which when added to the survivors
20 annuity payable to the dependent beneficiary, would equal the
21 participant's reduced retirement annuity. The participant
22 shall specify in the notice of election whether the full
23 retirement annuity is to be resumed or the reduced retirement
24 annuity is to be continued, in the event the beneficiary
25 predeceases the annuitant.
26 The reversionary annuity payment period shall begin on
27 the day following the annuitant's death. A reversionary
28 annuity shall not be payable if the beneficiary predeceases
29 the annuitant.
30 (Source: P.A. 84-1028.)
31 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
32 Sec. 15-141. Death benefits - Death of participant.
33 (a) The beneficiary of a participant under the
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1 traditional benefit package is entitled to a death benefit
2 equal to the sum of (1) the employee's accumulated normal and
3 additional contributions on the date of death, (2) the
4 employee's accumulated survivors insurance contributions on
5 the date of death, if a survivors insurance benefit is not
6 payable, (3) an amount equal to the employee's final rate of
7 earnings, but not more than $5,000 if (i) the beneficiary,
8 under rules of the board, was dependent upon the participant,
9 (ii) the participant was a participating employee immediately
10 prior to his or her death, and (iii) a survivors insurance
11 benefit is not payable, and (4) $2,500 if (i) the beneficiary
12 was not dependent upon the participant, (ii) the participant
13 was a participating employee immediately prior to his or her
14 death, and (iii) a survivors insurance benefit is not
15 payable.
16 (b) If the participant has elected to participate in the
17 portable benefit package and has completed the one-year
18 waiting period required under subsection (e) of Section
19 15-134.5, the death benefit shall be equal to the employee's
20 accumulated normal and additional contributions on the date
21 of death plus, if the employee died with 1.5 or 5 or more
22 years of service for employment as defined in Section
23 15-113.1, employer contributions in an amount equal to the
24 sum of the accumulated normal and additional contributions;
25 except that if a pre-retirement survivor annuity is payable
26 under Section 15-136.4, the death benefit payable under this
27 paragraph shall be reduced, but to not less than zero, by the
28 actuarial value of the benefit payable to the surviving
29 spouse. If the recipient of a pre-retirement survivor
30 annuity dies before an amount equal to all accumulated normal
31 and additional contributions as of the date of death have
32 been paid out, the remaining difference shall be paid to the
33 member's beneficiary. The primary beneficiary of the
34 participant must be his or her spouse unless the spouse has
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1 consented to the designation of another beneficiary in the
2 manner described in subsection (d) of Section 15-136.4.
3 (c) If payments are made under any State or federal
4 workers' compensation or occupational diseases law because of
5 the death of an employee, the portion of the death benefit
6 payable from employer contributions shall be reduced by the
7 total amount of the payments.
8 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
9 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
10 Sec. 15-142. Death benefits - Death of annuitant. Upon
11 the death of an annuitant receiving a retirement annuity or
12 disability retirement annuity, the annuitant's beneficiary
13 shall, if a survivor's insurance benefit is not payable under
14 Section 15-145 and an a pre-retirement survivor annuity is
15 not payable under Section 15-136.4, be entitled to a death
16 benefit equal to the greater of the following: (1) the
17 excess, if any, of the sum of the accumulated normal,
18 survivors insurance, and additional contributions as of the
19 date of retirement or the date the disability retirement
20 annuity began, whichever is earlier, over the sum of all
21 annuity payments made prior to the date of death, or (2)
22 $1,000.
23 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
24 (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
25 Sec. 15-144. Beneficiary annuities. This Section
26 applies only to the death benefits of persons who became
27 participants before August 22, 1997 (the effective date of
28 Public Act 90-511).
29 If a deceased participant has specified in a written
30 notice on file with the board prior to his or her death, or
31 if the participant has not so specified, but the beneficiary
32 specifies in the application for the death benefit that the
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1 benefit be paid as an annuity or as a designated cash payment
2 plus an annuity, it shall be paid in the manner thus
3 specified, unless the annuity is less than $10 per month, in
4 which case the death benefit shall be paid in a single cash
5 sum. If the death benefit is paid as an annuity, the
6 beneficiary may elect to take an amount not in excess of $500
7 in a single cash sum. The annuity payable to a beneficiary
8 shall be the actuarial equivalent of the death benefit,
9 determined as of the participant's date of death, on the
10 basis of the age of the beneficiary at that time.
11 The beneficiary annuity payment period shall begin on the
12 day following the death of the deceased and shall terminate
13 on the date of the beneficiary's death. If the beneficiary
14 may receive the death benefit in a single cash sum, but
15 elects to receive an annuity, he or she may, within one year
16 after the death of the participant or annuitant, revoke this
17 election and receive in a single cash sum the excess of the
18 amount of the death benefit upon which the annuity was based
19 over the sum of the annuity payments received.
20 (Source: P.A. 83-1440.)
21 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
22 Sec. 15-145. Survivors insurance benefits; conditions
23 and amounts.
24 (a) The survivors insurance benefits provided under this
25 Section shall be payable to the eligible survivors of a
26 participant covered under the traditional benefit package
27 upon the death of (1) a participating employee with at least
28 1 1/2 years of service, (2) a participant who terminated
29 employment with at least 10 years of service, and (3) an
30 annuitant in receipt of a retirement annuity or disability
31 retirement annuity under this Article.
32 Service under the State Employees' Retirement System of
33 Illinois, the Teachers' Retirement System of the State of
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1 Illinois and the Public School Teachers' Pension and
2 Retirement Fund of Chicago shall be considered in determining
3 eligibility for survivors benefits under this Section.
4 If by law, a function of a governmental unit, as defined
5 by Section 20-107, is transferred in whole or in part to an
6 employer, and an employee transfers employment from this
7 governmental unit to such employer within 6 months after the
8 transfer of this function, the service credits in the
9 governmental unit's retirement system which have been
10 validated under Section 20-109 shall be considered in
11 determining eligibility for survivors benefits under this
12 Section.
13 (b) A surviving spouse of a deceased participant, or of
14 a deceased annuitant who did not take a refund or additional
15 annuity consisting of accumulated survivors insurance
16 contributions who had a survivors insurance beneficiary at
17 the time of retirement, shall receive a survivors annuity of
18 30% of the final rate of earnings. Payments shall begin on
19 the day following the participant's or annuitant's death or
20 the date the surviving spouse attains age 50, whichever is
21 later, and continue until the death of the surviving spouse.
22 The annuity shall be payable to the surviving spouse prior to
23 attainment of age 50 if the surviving spouse has in his or
24 her care a deceased participant's or annuitant's dependent
25 unmarried child under age 18 (under age 22 if a full-time
26 student) who is eligible for a survivors annuity. Remarriage
27 of a surviving spouse prior to attainment of age 55 that
28 occurs before the effective date of this amendatory Act of
29 the 91st General Assembly shall disqualify him or her for the
30 receipt of a survivors annuity.
31 (c) Each dependent unmarried child under age 18 (under
32 age 22 if a full-time student) of a deceased participant, or
33 of a deceased annuitant who did not take a refund or
34 additional annuity consisting of accumulated survivors
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1 insurance contributions who had a survivors insurance
2 beneficiary at the time of his or her retirement, shall
3 receive a survivors annuity equal to the sum of (1) 20% of
4 the final rate of earnings, and (2) 10% of the final rate of
5 earnings divided by the number of children entitled to this
6 benefit. Payments shall begin on the day following the
7 participant's or annuitant's death and continue until the
8 child marries, dies, or attains age 18 (age 22 if a full-time
9 student). If the child is in the care of a surviving spouse
10 who is eligible for survivors insurance benefits, the child's
11 benefit shall be paid to the surviving spouse.
12 Each unmarried child over age 18 of a deceased
13 participant or of a deceased annuitant who had a survivor's
14 insurance beneficiary at the time of his or her retirement,
15 and who was dependent upon the participant or annuitant by
16 reason of a physical or mental disability which began prior
17 to the date the child attained age 18 (age 22 if a full-time
18 student), shall receive a survivor's annuity equal to the sum
19 of (1) 20% of the final rate of earnings, and (2) 10% of the
20 final rate of earnings divided by the number of children
21 entitled to survivors benefits. Payments shall begin on the
22 day following the participant's or annuitant's death and
23 continue until the child marries, dies, or is no longer
24 disabled. If the child is in the care of a surviving spouse
25 who is eligible for survivors insurance benefits, the child's
26 benefit may be paid to the surviving spouse. For the
27 purposes of this Section, disability means inability to
28 engage in any substantial gainful activity by reason of any
29 medically determinable physical or mental impairment that can
30 be expected to result in death or that has lasted or can be
31 expected to last for a continuous period of at least one
32 year.
33 (d) Each dependent parent of a deceased participant, or
34 of a deceased annuitant who did not take a refund or
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1 additional annuity consisting of accumulated survivors
2 insurance contributions who had a survivors insurance
3 beneficiary at the time of his or her retirement, shall
4 receive a survivors annuity equal to the sum of (1) 20% of
5 final rate of earnings, and (2) 10% of final rate of earnings
6 divided by the number of parents who qualify for the benefit.
7 Payments shall begin when the parent reaches age 55 or the
8 day following the participant's or annuitant's death,
9 whichever is later, and continue until the parent dies.
10 Remarriage of a parent prior to attainment of age 55 shall
11 disqualify the parent for the receipt of a survivors annuity.
12 (e) In addition to the survivors annuity provided above,
13 each survivors insurance beneficiary shall, upon death of the
14 participant or annuitant, receive a lump sum payment of
15 $1,000 divided by the number of such beneficiaries.
16 (f) The changes made in this Section by Public Act
17 81-712 pertaining to survivors annuities in cases of
18 remarriage prior to age 55 shall apply to each survivors
19 insurance beneficiary who remarries after June 30, 1979,
20 regardless of the date that the participant or annuitant
21 terminated his employment or died.
22 The change made to this Section by this amendatory Act of
23 the 91st General Assembly, pertaining to remarriage prior to
24 age 55, applies without regard to whether the deceased
25 participant or annuitant was in service on or after the
26 effective date of this amendatory Act of the 91st General
27 Assembly.
28 (g) On January 1, 1981, any person who was receiving a
29 survivors annuity on or before January 1, 1971 shall have the
30 survivors annuity then being paid increased by 1% for each
31 full year which has elapsed from the date the annuity began.
32 On January 1, 1982, any survivor whose annuity began after
33 January 1, 1971, but before January 1, 1981, shall have the
34 survivor's annuity then being paid increased by 1% for each
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1 year which has elapsed from the date the survivor's annuity
2 began. On January 1, 1987, any survivor who began receiving a
3 survivor's annuity on or before January 1, 1977, shall have
4 the monthly survivor's annuity increased by $1 for each full
5 year which has elapsed since the date the survivor's annuity
6 began.
7 (h) If the sum of the lump sum and total monthly
8 survivor benefits payable under this Section upon the death
9 of a participant amounts to less than the sum of the death
10 benefits payable under items (2) and (3) of Section 15-141,
11 the difference shall be paid in a lump sum to the beneficiary
12 of the participant who is living on the date that this
13 additional amount becomes payable.
14 (i) If the sum of the lump sum and total monthly
15 survivor benefits payable under this Section upon the death
16 of an annuitant receiving a retirement annuity or disability
17 retirement annuity amounts to less than the death benefit
18 payable under Section 15-142, the difference shall be paid to
19 the beneficiary of the annuitant who is living on the date
20 that this additional amount becomes payable.
21 (j) Effective on the later of (1) January 1, 1990, or
22 (2) the January 1 on or next after the date on which the
23 survivor annuity begins, if the deceased member died while
24 receiving a retirement annuity, or in all other cases the
25 January 1 nearest the first anniversary of the date the
26 survivor annuity payments begin, every survivors insurance
27 beneficiary shall receive an increase in his or her monthly
28 survivors annuity of 3%. On each January 1 after the initial
29 increase, the monthly survivors annuity shall be increased by
30 3% of the total survivors annuity provided under this
31 Article, including previous increases provided by this
32 subsection. Such increases shall apply to the survivors
33 insurance beneficiaries of each participant and annuitant,
34 whether or not the employment status of the participant or
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1 annuitant terminates before the effective date of this
2 amendatory Act of 1990. This subsection (j) also applies to
3 persons receiving a survivor annuity under the portable
4 benefit package.
5 (k) If the Internal Revenue Code of 1986, as amended,
6 requires that the survivors benefits be payable at an age
7 earlier than that specified in this Section the benefits
8 shall begin at the earlier age, in which event, the
9 survivor's beneficiary shall be entitled only to that amount
10 which is equal to the actuarial equivalent of the benefits
11 provided by this Section.
12 (l) The changes made to this Section and Section 15-131
13 by this amendatory Act of 1997, relating to benefits for
14 certain unmarried children who are full-time students under
15 age 22, apply without regard to whether the deceased member
16 was in service on or after the effective date of this
17 amendatory Act of 1997. These changes do not authorize the
18 repayment of a refund or a re-election of benefits, and any
19 benefit or increase in benefits resulting from these changes
20 is not payable retroactively for any period before the
21 effective date of this amendatory Act of 1997.
22 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
23 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
24 Sec. 15-154. Refunds.
25 (a) A participant whose status as an employee is
26 terminated, regardless of cause, or who has been on lay off
27 status for more than 120 days, and who is not on leave of
28 absence, is entitled to a refund of contributions upon
29 application; except that not more than one such refund
30 application may be made during any academic year.
31 Except as set forth in subsections (a-1) and (a-2), the
32 refund shall be the sum of the accumulated normal, additional
33 and survivors insurance contributions, less the amount of
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1 interest credited on these contributions each year in excess
2 of 4 1/2% of the amount on which interest was calculated.
3 (a-1) A person who elects, in accordance with the
4 requirements of Section 15-134.5, to participate in the
5 portable benefit package and who becomes a participating
6 employee under that retirement program upon the conclusion of
7 the one-year waiting period applicable to the portable
8 benefit package election shall have his or her refund
9 calculated in accordance with the provisions of subsection
10 (a-2).
11 (a-2) The refund payable to a participant described in
12 subsection (a-1) shall be the sum of the participant's
13 accumulated normal and additional contributions, as defined
14 in Sections 15-116 and 15-117. If the participant terminates
15 with 5 or more years of service for employment as defined in
16 Section 15-113.1, he or she shall also be entitled to a
17 distribution of employer contributions in an amount equal to
18 the sum of the accumulated normal and additional
19 contributions, as defined in Sections 15-116 and 15-117.
20 (b) Upon acceptance of a refund, the participant
21 forfeits all accrued rights and credits in the System, and if
22 subsequently reemployed, the participant shall be considered
23 a new employee subject to all the qualifying conditions for
24 participation and eligibility for benefits applicable to new
25 employees. If such person again becomes a participating
26 employee and continues as such for 2 years, or is employed by
27 an employer and participates for at least 2 years in the
28 Federal Civil Service Retirement System, all such rights,
29 credits, and previous status as a participant shall be
30 restored upon repayment of the amount of the refund, together
31 with compound interest thereon from the date the refund was
32 received to the date of repayment at the rate of 6% per annum
33 through August 31, 1982, and at the effective rates after
34 that date.
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1 (c) If a participant covered under the traditional
2 transitional benefit package has made survivors insurance
3 contributions, but has no survivors insurance beneficiary
4 upon retirement, he or she shall be entitled to elect a
5 refund of the accumulated survivors insurance contributions,
6 or to elect an additional annuity the value of which is equal
7 to the accumulated survivors insurance contributions. This
8 election must be made prior to the date the person's
9 retirement annuity is approved by the Board of Trustees.
10 (d) A participant, upon application, is entitled to a
11 refund of his or her accumulated additional contributions
12 attributable to the additional contributions described in the
13 last sentence of subsection (c) of Section 15-157. Upon the
14 acceptance of such a refund of accumulated additional
15 contributions, the participant forfeits all rights and
16 credits which may have accrued because of such contributions.
17 (e) A participant who terminates his or her employee
18 status and elects to waive service credit under Section
19 15-154.2, is entitled to a refund of the accumulated normal,
20 additional and survivors insurance contributions, if any,
21 which were credited the participant for this service, or to
22 an additional annuity the value of which is equal to the
23 accumulated normal, additional and survivors insurance
24 contributions, if any; except that not more than one such
25 refund application may be made during any academic year. Upon
26 acceptance of this refund, the participant forfeits all
27 rights and credits accrued because of this service.
28 (f) If a police officer or firefighter receives a
29 retirement annuity under Rule 1 or 3 of Section 15-136, he or
30 she shall be entitled at retirement to a refund of the
31 difference between his or her accumulated normal
32 contributions and the normal contributions which would have
33 accumulated had such person filed a waiver of the retirement
34 formula provided by Rule 4 of Section 15-136.
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1 (g) If, at the time of retirement, a participant would
2 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
3 of Section 15-136, or under Section 15-136.4, that exceeds
4 the maximum specified in clause (1) of subsection (c) of
5 Section 15-136, he or she shall be entitled to a refund of
6 the employee contributions, if any, paid under Section 15-157
7 after the date upon which continuance of such contributions
8 would have otherwise caused the retirement annuity to exceed
9 this maximum, plus compound interest at the effective rates.
10 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
11 90-766, eff. 8-14-98.)
12 (40 ILCS 5/15-158.2)
13 Sec. 15-158.2. Self-managed plan.
14 (a) Purpose. The General Assembly finds that it is
15 important for colleges and universities to be able to attract
16 and retain the most qualified employees and that in order to
17 attract and retain these employees, colleges and universities
18 should have the flexibility to provide a defined contribution
19 plan as an alternative for eligible employees who elect not
20 to participate in a defined benefit retirement program
21 provided under this Article. Accordingly, the State
22 Universities Retirement System is hereby authorized to
23 establish and administer a self-managed plan, which shall
24 offer participating employees the opportunity to accumulate
25 assets for retirement through a combination of employee and
26 employer contributions that may be invested in mutual funds,
27 collective investment funds, or other investment products and
28 used to purchase annuity contracts, either fixed or variable
29 or a combination thereof. The plan must be qualified under
30 the Internal Revenue Code of 1986.
31 (b) Adoption by employers. Each employer subject to
32 this Article may elect to adopt the self-managed plan
33 established under this Section; this election is irrevocable.
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1 An employer's election to adopt the self-managed plan makes
2 available to the eligible employees of that employer the
3 elections described in Section 15-134.5.
4 The State Universities Retirement System shall be the
5 plan sponsor for the self-managed plan and shall prepare a
6 plan document and prescribe such rules and procedures as are
7 considered necessary or desirable for the administration of
8 the self-managed plan. Consistent with its fiduciary duty to
9 the participants and beneficiaries of the self-managed plan,
10 the Board of Trustees of the System may delegate aspects of
11 plan administration as it sees fit to companies authorized to
12 do business in this State, to the employers, or to a
13 combination of both.
14 (c) Selection of service providers and funding vehicles.
15 The System, in consultation with the employers, shall solicit
16 proposals to provide administrative services and funding
17 vehicles for the self-managed plan from insurance and annuity
18 companies and mutual fund companies, banks, trust companies,
19 or other financial institutions authorized to do business in
20 this State. In reviewing the proposals received and
21 approving and contracting with no fewer than 2 and no more
22 than 7 companies, at least 2 of which must be insurance and
23 annuity companies, the Board of Trustees of the System shall
24 consider, among other things, the following criteria:
25 (1) the nature and extent of the benefits that
26 would be provided to the participants;
27 (2) the reasonableness of the benefits in relation
28 to the premium charged;
29 (3) the suitability of the benefits to the needs
30 and interests of the participating employees and the
31 employer;
32 (4) the ability of the company to provide benefits
33 under the contract and the financial stability of the
34 company; and
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1 (5) the efficacy of the contract in the recruitment
2 and retention of employees.
3 The System, in consultation with the employers, shall
4 periodically review each approved company. A company may
5 continue to provide administrative services and funding
6 vehicles for the self-managed plan only so long as it
7 continues to be an approved company under contract with the
8 Board.
9 (d) Employee Direction. Employees who are participating
10 in the program must be allowed to direct the transfer of
11 their account balances among the various investment options
12 offered, subject to applicable contractual provisions. The
13 participant shall not be deemed a fiduciary by reason of
14 providing such investment direction. A person who is a
15 fiduciary shall not be liable for any loss resulting from
16 such investment direction and shall not be deemed to have
17 breached any fiduciary duty by acting in accordance with that
18 direction. Neither the System nor the employer guarantees
19 any of the investments in the employee's account balances.
20 (e) Participation. An employee eligible to participate
21 in the self-managed plan must make a written election in
22 accordance with the provisions of Section 15-134.5 and the
23 procedures established by the System. Participation in the
24 self-managed plan by an electing employee shall begin on the
25 first day of the first pay period following the later of the
26 date the employee's election is filed with the System or the
27 effective date as of which the employee's employer begins to
28 offer participation in the self-managed plan. Employers may
29 not make the self-managed plan available earlier than January
30 1, 1998. An employee's participation in any other retirement
31 program administered by the System under this Article shall
32 terminate on the date that participation in the self-managed
33 plan begins.
34 An employee who has elected to participate in the
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1 self-managed plan under this Section must continue
2 participation while employed in an eligible position, and may
3 not participate in any other retirement program administered
4 by the System under this Article while employed by that
5 employer or any other employer that has adopted the
6 self-managed plan, unless the self-managed plan is terminated
7 in accordance with subsection (i).
8 Participation in the self-managed plan under this Section
9 shall constitute membership in the State Universities
10 Retirement System.
11 A participant under this Section shall be entitled to the
12 benefits of Article 20 of this Code. modified to reflect the
13 following principles:
14 (1) The amount of any retirement annuities payable
15 under this Section depend solely on the value of the
16 participant's vested account balances and are not subject
17 to a maximum annuity benefit limitation or any adjustment
18 pursuant to the proportional retirement annuity
19 provisions of Article 20. If a participant in the
20 self-managed plan under this Section elects to apply the
21 provisions of Article 20, the dollar amount of the
22 proportional retirement annuity payable from the System
23 shall be deemed to be zero and the provisions of the
24 second paragraph of Section 20-131 shall not apply with
25 respect to the retirement annuity benefits payable to the
26 participant under this Section.
27 (2) For purposes of Section 20-123 of this Code,
28 the self-managed plan shall be treated as if it were
29 provided by a participating system that has no survivor's
30 annuity benefit.
31 (3) Notwithstanding Section 20-125 of this Code,
32 upon reemployment by a participating system of a retired
33 participant in the self-managed plan, the retirement
34 annuity payment made to such participant from any annuity
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1 contracts acquired from the participant's self-managed
2 plan account balances shall not be suspended.
3 (f) Establishment of Initial Account Balance. If at the
4 time an employee elects to participate in the self-managed
5 plan he or she has rights and credits in the System due to
6 previous participation in the traditional benefit package,
7 the System shall establish for the employee an opening
8 account balance in the self-managed plan, equal to the amount
9 of contribution refund that the employee would be eligible to
10 receive under Section 15-154 if the employee terminated
11 employment on that date and elected a refund of
12 contributions, except that this hypothetical refund shall
13 include interest at the effective rate for the respective
14 years. The System shall transfer assets from the defined
15 benefit retirement program to the self-managed plan, as a tax
16 free transfer in accordance with Internal Revenue Service
17 guidelines, for purposes of funding the employee's opening
18 account balance.
19 (g) No Duplication of Service Credit. Notwithstanding
20 any other provision of this Article, an employee may not
21 purchase or receive service or service credit applicable to
22 any other retirement program administered by the System under
23 this Article for any period during which the employee was a
24 participant in the self-managed plan established under this
25 Section.
26 (h) Contributions. The self-managed plan shall be
27 funded by contributions from employees participating in the
28 self-managed plan and employer contributions as provided in
29 this Section.
30 The contribution rate for employees participating in the
31 self-managed plan under this Section shall be equal to the
32 employee contribution rate for other participants in the
33 System, as provided in Section 15-157. This required
34 contribution shall be made as an "employer pick-up" under
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1 Section 414(h) of the Internal Revenue Code of 1986 or any
2 successor Section thereof. Any employee participating in the
3 System's traditional benefit package prior to his or her
4 election to participate in the self-managed plan shall
5 continue to have the employer pick up the contributions
6 required under Section 15-157. However, the amounts picked
7 up after the election of the self-managed plan shall be
8 remitted to and treated as assets of the self-managed plan.
9 In no event shall an employee have an option of receiving
10 these amounts in cash. Employees may make additional
11 contributions to the self-managed plan in accordance with
12 procedures prescribed by the System, to the extent permitted
13 under rules prescribed by the System.
14 The program shall provide for employer contributions to
15 be credited to each self-managed plan participant at a rate
16 of 7.6% of the participating employee's salary, less the
17 amount used by the System to provide disability benefits for
18 the employee. The amounts so credited shall be paid into the
19 participant's self-managed plan accounts in a manner to be
20 prescribed by the System.
21 An amount of employer contribution, not exceeding 1% of
22 the participating employee's salary, shall be used for the
23 purpose of providing the disability benefits of the System to
24 the employee. Prior to the beginning of each plan year under
25 the self-managed plan, the Board of Trustees shall determine,
26 as a percentage of salary, the amount of employer
27 contributions to be allocated during that plan year for
28 providing disability benefits for employees in the
29 self-managed plan.
30 The State of Illinois shall make contributions by
31 appropriations to the System of the employer contributions
32 required for employees who participate in the self-managed
33 plan under this Section. The amount required shall be
34 certified by the Board of Trustees of the System and paid by
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1 the State in accordance with Section 15-165. The System
2 shall not be obligated to remit the required employer
3 contributions to any of the insurance and annuity companies,
4 mutual fund companies, banks, trust companies, financial
5 institutions, or other sponsors of any of the funding
6 vehicles offered under the self-managed plan until it has
7 received the required employer contributions from the State.
8 In the event of a deficiency in the amount of State
9 contributions, the System shall implement those procedures
10 described in subsection (c) of Section 15-165 to obtain the
11 required funding from the General Revenue Fund.
12 (i) Termination. The self-managed plan authorized under
13 this Section may be terminated by the System, subject to the
14 terms of any relevant contracts, and the System shall have no
15 obligation to reestablish the self-managed plan under this
16 Section. This Section does not create a right to continued
17 participation in any self-managed plan set up by the System
18 under this Section. If the self-managed plan is terminated,
19 the participants shall have the right to participate in one
20 of the other retirement programs offered by the System and
21 receive service credit in such other retirement program for
22 any years of employment following the termination.
23 (j) Vesting; Withdrawal; Return to Service. A
24 participant in the self-managed plan becomes vested in the
25 employer contributions credited to his or her accounts in the
26 self-managed plan on the earliest to occur of the following:
27 (1) completion of 5 years of service with an employer
28 described in Section 15-106; (2) the death of the
29 participating employee while employed by an employer
30 described in Section 15-106, if the participant has completed
31 at least 1 1/2 years of service; or (3) the participant's
32 election to retire and apply the reciprocal provisions of
33 Article 20 of this Code.
34 A participant in the self-managed plan who receives a
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1 distribution of his or her vested amounts from the
2 self-managed plan while not yet eligible for retirement under
3 this Article (and Article 20, if applicable) upon or after
4 termination of employment shall forfeit all service credit
5 and accrued rights in the System; if subsequently
6 re-employed, the participant shall be considered a new
7 employee. If a former participant again becomes a
8 participating employee (or becomes employed by a
9 participating system under Article 20 of this Code) and
10 continues as such for at least 2 years, all such rights,
11 service credits, and previous status as a participant shall
12 be restored upon repayment of the amount of the distribution,
13 without interest.
14 (k) Benefit amounts. If an employee who is vested in
15 employer contributions terminates employment, the employee
16 shall be entitled to a benefit which is based on the account
17 values attributable to both employer and employee
18 contributions and any investment return thereon.
19 If an employee who is not vested in employer
20 contributions terminates employment, the employee shall be
21 entitled to a benefit based solely on the account values
22 attributable to the employee's contributions and any
23 investment return thereon, and the employer contributions and
24 any investment return thereon shall be forfeited. Any
25 employer contributions which are forfeited shall be held in
26 escrow by the company investing those contributions and shall
27 be used as directed by the System for future allocations of
28 employer contributions or for the restoration of amounts
29 previously forfeited by former participants who again become
30 participating employees.
31 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
32 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
33 (40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
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1 Sec. 15-181. Duties of employers.
2 (a) Each employer, in preparing payroll vouchers for
3 participating employees, shall indicate, in addition to other
4 information: (1) the amount of employee contributions and
5 survivors insurance contributions required under Section
6 15-157, (2) the gross earnings payable to each employee, and
7 (3) the total of all contributions required under Section
8 15-157. An additional certified copy of each payroll
9 certified by each employer shall be forwarded along with the
10 original payroll to the Director of Central Management
11 Services, State Comptroller, and other officer receiving the
12 original certified payroll for transmittal to the board.
13 (b) Each employer, in drawing warrants or checks against
14 trust or federal funds for items of salary on payroll
15 vouchers certified by employers, shall draw such warrants or
16 checks to participating employees for the amount of cash
17 salary or wages specified for the period, and shall draw a
18 warrant or check to this system for the total of the
19 contributions required under Section 15-157. The warrant or
20 check drawn to this system, together with the additional copy
21 of the payroll supplied by the employer, shall be transmitted
22 immediately to the board.
23 (c) The City of Champaign and the City of Urbana, as
24 employers of persons who participate in this System pursuant
25 to subsection (h) of Section 15-107, shall each collect and
26 transmit to the System from each payroll the employee
27 contributions required under Section 15-157, together with
28 such payroll documentation as the Board may require, at the
29 time that the payroll is paid.
30 (Source: P.A. 90-576, eff. 3-31-98.).
31 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
32 Sec. 16-133. Retirement annuity; amount.
33 (a) The amount of the retirement annuity shall be the
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1 larger of the amounts determined under paragraphs (A) and (B)
2 below:
3 (A) An amount consisting of the sum of the
4 following:
5 (1) An amount that can be provided on an
6 actuarially equivalent basis by the member's
7 accumulated contributions at the time of retirement;
8 and
9 (2) The sum of (i) the amount that can be
10 provided on an actuarially equivalent basis by the
11 member's accumulated contributions representing
12 service prior to July 1, 1947, and (ii) the amount
13 that can be provided on an actuarially equivalent
14 basis by the amount obtained by multiplying 1.4
15 times the member's accumulated contributions
16 covering service subsequent to June 30, 1947; and
17 (3) If there is prior service, 2 times the
18 amount that would have been determined under
19 subparagraph (2) of paragraph (A) above on account
20 of contributions which would have been made during
21 the period of prior service creditable to the member
22 had the System been in operation and had the member
23 made contributions at the contribution rate in
24 effect prior to July 1, 1947.
25 (B) An amount consisting of the greater of the
26 following:
27 (1) For creditable service earned before July
28 1, 1998 that has not been augmented under Section
29 16-129.1: 1.67% of final average salary for each of
30 the first 10 years of creditable service, 1.90% of
31 final average salary for each year in excess of 10
32 but not exceeding 20, 2.10% of final average salary
33 for each year in excess of 20 but not exceeding 30,
34 and 2.30% of final average salary for each year in
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1 excess of 30; and
2 For creditable service earned on or after July
3 1, 1998 by a member who has at least 24 years of
4 creditable service on July 1, 1998 and who does not
5 elect to augment service under Section 16-129.1:
6 2.2% of final average salary for each year of
7 creditable service earned on or after July 1, 1998
8 but before the member reaches a total of 30 years of
9 creditable service and 2.3% of final average salary
10 for each year of creditable service earned on or
11 after July 1, 1998 and after the member reaches a
12 total of 30 years of creditable service; and
13 For all other creditable service: 2.2% of
14 final average salary for each year of creditable
15 service; or
16 (2) 1.5% of final average salary for each year
17 of creditable service plus the sum $7.50 for each of
18 the first 20 years of creditable service.
19 The amount of the retirement annuity determined under
20 this paragraph (B) shall be reduced by 1/2 of 1% for each
21 month that the member is less than age 60 at the time the
22 retirement annuity begins. However, this reduction shall
23 not apply (i) if the member has at least 35 years of
24 creditable service, or (ii) if the member retires on
25 account of disability under Section 16-149.2 of this
26 Article with at least 20 years of creditable service.
27 (b) For purposes of this Section, final average salary
28 shall be the average salary for the highest 4 consecutive
29 years within the last 10 years of creditable service as
30 determined under rules of the board. The minimum final
31 average salary shall be considered to be $2,400 per year.
32 In the determination of final average salary for members
33 other than elected officials and their appointees when such
34 appointees are allowed by statute, that part of a member's
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1 salary for any year beginning after June 30, 1979 which
2 exceeds the member's annual full-time salary rate with the
3 same employer for the preceding year by more than 20% shall
4 be excluded. The exclusion shall not apply in any year in
5 which the member's creditable earnings are less than 50% of
6 the preceding year's mean salary for downstate teachers as
7 determined by the survey of school district salaries provided
8 in Section 2-3.103 of the School Code.
9 (c) In determining the amount of the retirement annuity
10 under paragraph (B) of this Section, a fractional year shall
11 be granted proportional credit.
12 (d) The retirement annuity determined under paragraph
13 (B) of this Section shall be available only to members who
14 render teaching service after July 1, 1947 for which member
15 contributions are required, and to annuitants who re-enter
16 under the provisions of Section 16-150.
17 (e) The maximum retirement annuity provided under
18 paragraph (B) of this Section shall be 75% of final average
19 salary.
20 (f) A member retiring after the effective date of this
21 amendatory Act of 1998 shall receive a pension equal to 75%
22 of final average salary if the member is qualified to receive
23 a retirement annuity equal to at least 74.6% of final average
24 salary under this Article or as proportional annuities under
25 Article 20 of this Code.
26 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
27 (40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135)
28 Sec. 16-135. Supplementary retirement annuity.
29 (a) An annuitant who is receiving a retirement annuity
30 on June 30, 1961 of less than $50 for each year of creditable
31 service forming the basis of the retirement annuity shall
32 have his or her retirement annuity increased to $50 per year
33 for each year of such creditable service, but not exceeding a
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1 total annual retirement annuity of $2,250.
2 (b) In order to be entitled to the increase in
3 retirement annuity provided under this Section, an annuitant
4 is required to make an additional contribution of $5 for each
5 year of creditable service, not to exceed 45 years together
6 with interest at the rate of 3% per annum from August 25,
7 1961.
8 (c) The supplementary retirement annuity provided under
9 this Section shall begin to accrue on the first of the month
10 following receipt of the required contribution from the
11 annuitant and shall continue to be paid only to the extent
12 that funds are available in the Supplementary Annuity Reserve
13 established under Section 16-184.
14 (Source: P.A. 83-1440.)
15 (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
16 Sec. 16-136.4. Single-sum retirement benefit.
17 (a) A member who has less than 5 years of creditable
18 service shall be entitled, upon written application to the
19 board, to receive a retirement benefit payable in a single
20 sum upon or after the member's attainment of age 65.
21 However, the benefit shall not be paid while the member is
22 employed as a teacher in the schools included under this
23 Article or Article 17, unless the System is required by
24 federal law to make payment due to the member's age.
25 (b) The retirement benefit shall consist of a single sum
26 that is the actuarial equivalent of a life annuity consisting
27 of 1.67% of the member's final average salary for each year
28 of creditable service. In determining the amount of the
29 benefit, a fractional year shall be granted proportional
30 credit.
31 For the purposes of this Section, final average salary
32 shall be the average salary of the member's highest 4
33 consecutive years of service as determined under rules of the
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1 board. For a member with less than 4 consecutive years of
2 service, final average salary shall be the average salary
3 during the member's entire period of service. In the
4 determination of final average salary for members other than
5 elected officials and their appointees when such appointees
6 are allowed by statute, that part of a member's salary which
7 exceeds the member's annual full-time salary rate with the
8 same employer for the preceding year by more than 20% shall
9 be excluded. The exclusion shall not apply in any year in
10 which the member's creditable earnings are less than 50% of
11 the preceding year's mean salary for downstate teachers as
12 determined by the survey of school district salaries provided
13 in Section 2-3.103 of the School Code.
14 (c) The retirement benefit determined under this Section
15 shall be available to all members who render teaching service
16 after July 1, 1947 for which member contributions are
17 required.
18 (d) Upon acceptance of the retirement benefit, all of
19 the member's accrued rights and credits in the System are
20 forfeited. Receipt of a single-sum retirement benefit under
21 this Section does not make a person an "annuitant" for the
22 purposes of this Article, nor a "benefit recipient" for the
23 purposes of Sections 16-153.1 through 16-153.4.
24 (Source: P.A. 87-11.)
25 (40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138)
26 Sec. 16-138. Refund of contributions upon death of
27 member or annuitant. Upon the death of a member or
28 annuitant, the following amount shall be payable (i) to a
29 beneficiary, nominated by written designation of the member
30 or annuitant filed with the system, or (ii) if no beneficiary
31 is nominated, to the surviving spouse, or (iii) if no
32 beneficiary is nominated and there is no surviving spouse, to
33 the decedent's estate, upon receipt of proper proof of death:
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1 (1) Upon the death of a member, an amount consisting of
2 the sum of the following: (A) the member's accumulated
3 contributions; (B) the sum of the contributions made by the
4 member toward the cost of the automatic increase in annuity
5 under Section 16-152, without interest thereon; and (C)
6 contributions made by the member toward prior service,
7 without interest thereon.
8 (2) Upon the death of an annuitant, unless a
9 reversionary annuity is payable under Section 16-136, an
10 amount determined by subtracting the total amount of monthly
11 annuity payments received as a result of the deceased
12 annuitant's retirement from the sum of: (A) the accumulated
13 contributions at retirement; (B) the sum of the contributions
14 made by the deceased toward the cost of the automatic
15 increase in annuity under Section 16-151, without interest
16 thereon; and (C) any contributions made by the deceased for
17 prior service or other purposes, exclusive of contributions
18 toward the cost of the automatic increase in annuity, without
19 interest thereon.
20 (Source: P.A. 83-1440.)
21 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
22 Sec. 16-140. Survivors' benefits - definitions.
23 (a) For the purpose of Sections 16-138 through 16-143.2,
24 the following terms shall have the following meanings, unless
25 the context otherwise requires:
26 (1) "Average salary": the average salary for the
27 highest 4 consecutive years within the last 10 years of
28 creditable service immediately preceding date of death or
29 retirement, whichever is applicable, or the average
30 salary for the total creditable service if service is
31 less than 4 years.
32 (2) "Member": any teacher included in the
33 membership of the system. However, a teacher who becomes
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1 an annuitant of the system or a teacher whose services
2 terminate after 20 years of service from any cause other
3 than retirement is considered a member, subject to the
4 conditions and limitations stated in this Article.
5 (3) "Dependent beneficiary": (A) a surviving spouse
6 of a member or annuitant who was married to the member or
7 annuitant for the 12 month period immediately preceding
8 and on the date of death of such member or annuitant,
9 except where a child is born of such marriage, in which
10 case the qualifying period shall not be applicable; (A-1)
11 a surviving spouse of a member or annuitant who (i) was
12 married to the member or annuitant on the date of the
13 member or annuitant's death, (ii) was married to the
14 member or annuitant for a period of at least 12 months
15 (but not necessarily the 12 months immediately preceding
16 the member or annuitant's death), and (iii) first applied
17 for a survivor's benefit before April 1, 1997, and (iv)
18 has not received a benefit under subsection (a) of
19 Section 16-141 or paragraph (1) of Section 16-142; (B) an
20 eligible child of a member or annuitant; and (C) a
21 dependent parent.
22 Unless otherwise designated by the member,
23 eligibility for benefits shall be in the order named,
24 except that a dependent parent shall be eligible only if
25 there is no other dependent beneficiary. Any benefit to
26 be received by or paid to a dependent beneficiary to be
27 determined under this paragraph as provided in Sections
28 16-141 and 16-142 may be received by or paid to a trust
29 established for such dependent beneficiary if such
30 dependent beneficiary is living at the time such benefit
31 would be received by or paid to such trust.
32 (4) "Eligible child": an unmarried natural or
33 adopted child of the member or annuitant under age 18
34 (age 22 if a full-time student). An unmarried natural or
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1 adopted child, regardless of age, who is dependent by
2 reason of a physical or mental disability, except any
3 such child receiving benefits under Article III of the
4 Illinois Public Aid Code, is eligible for so long as such
5 physical or mental disability continues. An adopted
6 child, however, is eligible only if the proceedings for
7 adoption were finalized while the child was a minor.
8 For purposes of this subsection, "disability" means
9 an inability to engage in any substantial gainful
10 activity by reason of any medically determinable physical
11 or mental impairment which can be expected to result in
12 death or which has lasted or can be expected to last for
13 a continuous period of not less than 12 months.
14 The changes made to this Section by Public Act
15 90-448, relating to benefits for certain unmarried
16 children who are full-time students under age 22, apply
17 without regard to whether the deceased member was in
18 service on or after the effective date of that Act.
19 These changes do not authorize the repayment of a refund
20 or a re-election of benefits, and any benefit or increase
21 in benefits resulting from these changes is not payable
22 retroactively for any period before the effective date of
23 that Act.
24 (5) "Dependent parent": a parent who was receiving
25 at least 1/2 of his or her support from a member or
26 annuitant for the 12-month period immediately preceding
27 and on the date of such member's or annuitant's death,
28 provided however, that such dependent status terminates
29 upon a member's acceptance of a refund for survivor
30 benefit contributions as provided under Section 16-142.
31 (6) "Non-dependent beneficiary": any person,
32 organization or other entity designated by the member who
33 does not qualify as a dependent beneficiary.
34 (7) "In service": the condition of a member being
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1 in receipt of salary as a teacher at any time within 12
2 months immediately before his or her death, being on
3 leave of absence for which the member, upon return to
4 teaching, would be eligible to purchase service credit
5 under subsection (b)(5) of Section 16-127, or being in
6 receipt of a disability or occupational disability
7 benefit. This term does not include any annuitant or
8 member who previously accepted a refund of survivor
9 benefit contributions under paragraph (1) of Section
10 16-142 unless the conditions specified in subsection (b)
11 of Section 16-143.2 are met.
12 (b) The change to this Section made by Public Act 90-511
13 applies without regard to whether the deceased member or
14 annuitant was in service on or after the effective date of
15 that Act.
16 The change to this Section made by this amendatory Act of
17 the 91st General Assembly applies without regard to whether
18 the deceased member or annuitant was in service on or after
19 the effective date of this amendatory Act.
20 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
21 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
22 (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
23 Sec. 16-143. Survivors' benefits - other conditions and
24 limitations. The benefits provided under Sections 16-141 and
25 16-142, shall be subject to the following further conditions
26 and limitations:
27 (1) The period during which a member was in receipt of a
28 disability or occupational disability benefit shall be
29 considered as creditable service at the annual salary rate on
30 which the member last made contributions.
31 (2) All service prior to July 24, 1959, for which
32 creditable service is granted towards a retirement annuity
33 shall be considered as creditable service.
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1 (3) No benefits shall be payable unless a member, or a
2 disabled member, returning to service, has made contributions
3 to the system for at least one month after July 24, 1959,
4 except that an annuitant must have contributed to the system
5 for at least 1 year of creditable service after July 24,
6 1959.
7 (4) Creditable service under the State Employees'
8 Retirement System of Illinois, the State Universities
9 Retirement System and the Public School Teachers' Pension and
10 Retirement Fund of Chicago shall be considered in determining
11 whether the member has met the creditable service
12 requirement.
13 (5) If an eligible beneficiary qualifies for a
14 survivors' benefit because of pension credits established by
15 the participant or annuitant in another system covered by
16 Article 20, and the combined survivors' benefits exceed the
17 highest survivors' benefit payable by either system based
18 upon the combined pension credits, the survivors' benefit
19 payable by this system shall be reduced to that amount which
20 when added to the survivors' benefit payable by the other
21 system would equal this highest survivors' benefit. If the
22 other system has a similar provision for adjustment of the
23 survivors' benefit, the respective proportional survivors'
24 benefits shall be reduced proportionately according to the
25 ratio which the amount of each proportional survivors'
26 benefit bears to the aggregate of all proportional survivors'
27 benefits. If a survivors' benefit is payable by another
28 system covered by Article 20, and the survivor elects to
29 waive the monthly survivors' benefit and accept a lump sum
30 payment or death benefit in lieu of the monthly survivors'
31 benefit, this system shall, for the purpose of adjusting the
32 monthly survivors' benefit under this paragraph, assume that
33 the survivor had been entitled to a monthly survivors'
34 benefit which, in accordance with actuarial tables of this
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1 system, is the actuarial equivalent of the amount of the lump
2 sum payment or death benefit.
3 (6) Remarriage of a surviving spouse prior to attainment
4 of age 55 that occurs before the effective date of this
5 amendatory Act of the 91st General Assembly shall terminate
6 his or her survivors' benefits.
7 The change made to this item (6) by this amendatory Act
8 of the 91st General Assembly applies without regard to
9 whether the deceased member or annuitant was in service on or
10 after the effective date of this amendatory Act of the 91st
11 General Assembly.
12 (7) The benefits payable to an eligible child shall
13 terminate when the eligible child marries, dies, or attains
14 age 18 (age 22 if a full-time student); except that benefits
15 payable to a dependent disabled eligible child shall
16 terminate only when the eligible child dies or ceases to be
17 disabled.
18 (Source: P.A. 90-448, eff. 8-16-97.)
19 (40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4)
20 Sec. 16-149.4. Supplementary disability retirement
21 annuity.
22 (a) An annuitant receiving a disability retirement
23 annuity on June 30, 1961 of less than $50 for each year of
24 creditable service forming the basis of the disability
25 retirement annuity shall have his or her disability
26 retirement annuity increased to $50 per year for each year of
27 such creditable service, with a minimum annuity of $1,000 per
28 year.
29 (b) In order to be entitled to the increase in
30 disability retirement annuity provided under this Section, an
31 annuitant is required to make an additional contribution of
32 $5 for each year of creditable service, together with
33 interest at the rate of 3% per annum from August 25, 1961.
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1 (c) The supplementary retirement annuity provided under
2 this Section shall begin to accrue on the first of the month
3 following receipt of the required contributions from the
4 annuitant and shall continue to be paid only to the extent
5 that funds are available in the Supplementary Annuity Reserve
6 established under Section 16-184.
7 (Source: P.A. 83-1440.)
8 (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
9 Sec. 16-184. Supplementary Annuity Reserve.
10 (a) Except as provided in subsection (b), a reserve to
11 be known as the Supplementary Annuity Reserve is established
12 for the purpose of crediting funds received and charging
13 disbursements made for supplementary annuities under Section
14 16-135 and Section 16-149.4.
15 This Reserve shall be credited with:
16 (1) The total of all contributions made by
17 annuitants to qualify for supplementary annuities.
18 (2) Amounts contributed to the System by the State
19 of Illinois that are sufficient to assure payment of the
20 supplementary annuities.
21 (3) Regular interest computed annually on the
22 average balance in this reserve.
23 This Reserve shall be charged with all supplemental
24 annuity payments under Section 16-135 and Section 16-149.4.
25 (b) On the July 1 next occurring after the effective
26 date of this amendatory Act of the 91st General Assembly, the
27 Supplemental Annuity Reserve is abolished and any remaining
28 balance After all supplementary annuity payments have been
29 completed, any remaining funds shall be transferred from that
30 this Reserve to the Employer's Contribution Reserve.
31 (Source: P.A. 88-593, eff. 8-22-94.)
32 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
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1 Sec. 17-106. Contributor, member or teacher.
2 "Contributor", "member" or "teacher": All members of the
3 teaching force of the city, including principals, assistant
4 principals, the general superintendent of schools, deputy
5 superintendents of schools, associate superintendents of
6 schools, assistant and district superintendents of schools,
7 members of the Board of Examiners, all other persons whose
8 employment requires a teaching certificate issued under the
9 laws governing the certification of teachers, any
10 educational, administrative, professional, or other staff
11 employed in a charter school operating in compliance with the
12 Charter Schools Law who is certified under the law governing
13 the certification of teachers, and employees of the Board,
14 but excluding persons contributing concurrently to any other
15 public employee pension system in Illinois for the same
16 employment or receiving retirement pensions under another
17 Article of this Code for that same employment (unless the
18 person's eligibility to participate in that other pension
19 system arises from the holding of an elective public office,
20 and the person has held that public office for at least 10
21 years), persons employed on an hourly basis, and persons
22 receiving pensions from the Fund who are employed temporarily
23 by an Employer for 100 days or less in any school year and
24 not on an annual basis.
25 In the case of a person who has been making contributions
26 and otherwise participating in this Fund prior to the
27 effective date of this amendatory Act of the 91st General
28 Assembly 1991, and whose right to participate in the Fund is
29 established or confirmed by this amendatory Act, such prior
30 participation in the Fund, including all contributions
31 previously made and service credits previously earned by the
32 person, are hereby validated.
33 (Source: P.A. 89-450, eff. 4-10-96; 90-32, eff. 6-27-97;
34 90-566, eff. 1-2-98.)
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1 (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
2 Sec. 17-117. Disability retirement pension.
3 (a) The conditions prescribed in items 1 and 2 in
4 Section 17-116 for computing service retirement pensions
5 shall apply in the computation of disability retirement
6 pensions.
7 (1) Each teacher retired or retiring after 10 years
8 of service and with less than 20 years of service because
9 of permanent disability not incurred as a proximate
10 result of the performance of duty shall receive a
11 disability retirement pension equal to 2.2% of average
12 salary for each year of service after June 30, 1998 and
13 for each year of service on or before that date that has
14 been augmented under Section 17-119.1 and 1 2/3% of
15 average salary for each year of other service.
16 (2) If the total service is 20 years and less than
17 25 years and the teacher's age is under 55, the
18 disability retirement pension shall equal a service
19 retirement pension discounted 1/2 of 1% for each month
20 the age of the contributor is less than 55 down to a
21 minimum age of 50 years, provided the disability
22 retirement pension so computed shall not be less than the
23 amount payable under paragraph 1.
24 (3) If the total service is 20 years or more and
25 the teacher has attained age 55, and is under age 60, a
26 disability retirement pension shall equal a service
27 retirement pension without discount.
28 (4) If the total service is 25 years or more
29 regardless of age, a disability pension shall equal a
30 service retirement pension without discount.
31 (5) If the total service is 20 years or more and
32 the teacher is age 60 or over, a service retirement
33 pension shall be payable.
34 (b) For disability retirement pensions, the following
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1 further conditions shall apply:
2 (1) Written application shall be submitted within 3
3 years from the date of separation.
4 (2) The applicant shall submit to examination by
5 physicians appointed by the Board within one year from
6 the date of their appointment.
7 (3) Two physicians, appointed by the Board, shall
8 declare the applicant to be suffering from a disability
9 which wholly and presumably permanently incapacitates him
10 for teaching or for service as an employee of the Board.
11 In the event of disagreement by the physicians, a third
12 physician, appointed by the Board, shall declare the
13 applicant wholly and presumably permanently
14 incapacitated.
15 (c) Disability retirement pensions shall begin on the
16 effective date of resignation or the day following the close
17 of the payroll period for which credit was validated,
18 whichever is later.
19 (Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98.)
20 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
21 Sec. 17-133. Contributions for periods of outside and
22 other service. Regularly certified and appointed teachers
23 who desire to have the following described services credited
24 for pension purposes shall submit to the Board evidence
25 thereof and pay into the Fund the amounts prescribed herein:
26 1. For teaching service by a certified teacher in
27 the public schools of the several states or in schools
28 operated by or under the auspices of the United States, a
29 teacher shall pay the contributions at the rates in force
30 (a) on the date of appointment as a regularly certified
31 teacher after salary adjustments are completed, or (b) at
32 the time of reappointment after salary adjustments are
33 completed, whichever is later, but not less than $450 per
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1 year of service. Upon the Board's approval of such
2 service and the payment of the required contributions,
3 service credit of not more than 10 years shall be
4 granted.
5 2. For service as a playground instructor in public
6 school playgrounds, teachers shall pay the contributions
7 prescribed in this Article (a) at the time of
8 appointment, as a regularly certified teacher after
9 salary adjustments are completed, or (b) on return to
10 service as a full time regularly certified teacher, as
11 the case may be, provided such rates or amounts shall not
12 be less than $450 per year.
13 3. For service prior to September 1, 1955, in the
14 public schools of the City as a substitute, evening
15 school or temporary teacher, or for service as an
16 Americanization teacher prior to December 31, 1955,
17 teachers shall pay the contributions prescribed in this
18 Article (a) at the time of appointment, as a regularly
19 certified teacher after salary adjustments are completed,
20 (b) on return to service as a full time regularly
21 certified teacher, as the case may be, provided such
22 rates or amounts shall not be less than $450 per year;
23 and provided further that for teachers employed on or
24 after September 1, 1953, rates shall not include
25 contributions for widows' pensions if the service
26 described in this sub-paragraph 3 was rendered before
27 that date. Any teacher entitled to repay a refund of
28 contributions under Section 17-126 126 of this Article
29 may validate service described in this paragraph by
30 payment of the amounts prescribed herein, together with
31 the repayment of the refund, provided that if such
32 creditable service was the last service rendered in the
33 public schools of the City and is not automatically
34 reinstated by repayment of the refund, the rates or
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1 amounts shall not be less than $450 per year.
2 4. For service after June 30, 1982 as a member of
3 the Board of Education, if required to resign from an
4 administrative or teaching position in order to qualify
5 as a member of the Board of Education.
6 5. For service during the 1986-87 school year as a
7 teacher on a special leave of absence with full loss of
8 salary, teaching for an agency under contract to the
9 Board of Education, if the teacher returned to employment
10 in September, 1987. For service under this item 5, the
11 teacher must pay the contributions at the rates in force
12 at the completion of the leave period.
13 For service described in sub-paragraphs 1, 2 and 3 of
14 this Section, interest shall be charged beginning one year
15 after the effective date of appointment or reappointment.
16 Effective September 1, 1974, the interest rate to be
17 charged by the Fund on contributions provided in
18 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
19 annually.
20 (Source: P.A. 90-566, eff. 1-2-98.)
21 (40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
22 Sec. 17-150. Suspension of pensions. Until July 1,
23 2000, pension payments, exclusive of those made to the
24 survivors of persons who were contributors, shall be
25 suspended while the recipient is employed in a teaching
26 capacity, outside the City in which the Fund exists, by any
27 public school or charter school in this State, unless the
28 recipient is so employed temporarily as a substitute teacher
29 for 100 days or less in a school year or on an hourly basis
30 with earnings not in excess of the sum payable for 100 days'
31 substitute service.
32 Beginning July 1, 2000, pension payments shall no longer
33 be suspended while the recipient is employed in a teaching
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1 capacity, outside the City in which the Fund exists, by any
2 public school or charter school in this State, and any
3 pension that is in a state of suspension under this Section
4 on July 1, 2000 shall be reinstated on that date.
5 Notwithstanding Section 17-157, the change to this Section
6 made by this amendatory Act of the 91st General Assembly
7 applies without regard to whether or not the pensioner was in
8 service on or after the effective date of this amendatory
9 Act.
10 (Source: P.A. 90-566, eff. 1-2-98.)
11 (40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128)
12 Sec. 18-128. Survivor's annuities; Conditions for
13 payment.
14 (a) A survivor's annuity shall be payable upon the death
15 of a participant while in service after June 30, 1967 if the
16 participant had at least 1 1/2 years of service credit as a
17 judge, or upon death of an inactive participant who had
18 terminated service as a judge on or after June 30, 1967 with
19 at least 10 years of service credit, or upon the death of an
20 annuitant whose retirement becomes effective after June 30,
21 1967.
22 (b) The surviving spouse of a deceased participant or
23 annuitant is entitled to a survivor's annuity beginning at
24 the date of death if the surviving spouse (1) has been
25 married to the participant or annuitant for a continuous
26 period of at least one year immediately preceding the date of
27 death, and (2) has attained age 50, or, regardless of age,
28 has in his or her care an eligible child or children of the
29 decedent as provided under subsections (c) and (d) of this
30 Section. If the surviving spouse has no such child in his or
31 her care and has not attained age 50, the survivor's annuity
32 shall begin upon attainment of age 50. When all such
33 children of the deceased who are in the care of the surviving
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1 spouse no longer qualify for benefits and the surviving
2 spouse is under 50 years of age, the surviving spouse's
3 annuity shall be suspended until he or she attains age 50.
4 (c) A child's annuity is payable for an unmarried child
5 of an annuitant or participant so long as the child is (i)
6 under age 18, (ii) under age 22 and a full time student, or
7 (iii) age 18 or over if dependent by reason of physical or
8 mental disability. Disability means inability to engage in
9 any substantial gainful activity by reason of any medically
10 determinable physical or mental impairment which can expected
11 to result in death or which has lasted or can be expected to
12 last for a continuous period of not less than 12 months.
13 (d) Adopted children shall have the same status as
14 natural children, but only if the proceedings for adoption
15 were commenced at least 6 months prior to the death of the
16 annuitant or participant.
17 (e) Remarriage prior to attainment of age 50 that occurs
18 before the effective date of this amendatory Act of the 91st
19 General Assembly shall disqualify a surviving spouse for the
20 receipt of a survivor's annuity.
21 The change made to this subsection by this amendatory Act
22 of the 91st General Assembly applies without regard to
23 whether the deceased judge was in service on or after the
24 effective date of this amendatory Act of the 91st General
25 Assembly.
26 (f) The changes made in survivor's annuity provisions by
27 Public Act 82-306 shall apply to the survivors of a deceased
28 participant or annuitant whose death occurs on or after
29 August 21, 1981 and whose service as a judge terminates on or
30 after July 1, 1967.
31 The provision of child's annuities for dependent students
32 under age 22 by this amendatory Act of 1991 shall apply to
33 all eligible students beginning January 1, 1992, without
34 regard to whether the deceased judge was in service on or
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1 after the effective date of this amendatory Act.
2 (Source: P.A. 87-794.)
3 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
4 Sec. 20-121. Calculation of proportional retirement
5 annuities. Upon retirement of the employee, a proportional
6 retirement annuity shall be computed by each participating
7 system in which pension credit has been established on the
8 basis of pension credits under each system. The computation
9 shall be in accordance with the formula or method prescribed
10 by each participating system which is in effect at the date
11 of the employee's latest withdrawal from service covered by
12 any of the systems in which he has pension credits which he
13 elects to have considered under this Article. However, the
14 amount of any retirement annuity payable under the
15 self-managed plan established under Section 15-158.2 of this
16 Code depends solely on the value of the participant's vested
17 account balances and is not subject to any proportional
18 adjustment under this Section.
19 Combined pension credit under all retirement systems
20 subject to this Article shall be considered in determining
21 whether the minimum qualification has been met and the
22 formula or method of computation which shall be applied. If
23 a system has a step-rate formula for calculation of the
24 retirement annuity, pension credits covering previous service
25 which have been established under another system shall be
26 considered in determining which range or ranges of the
27 step-rate formula are to be applicable to the employee.
28 Interest on pension credit shall continue to accumulate
29 in accordance with the provisions of the law governing the
30 retirement system in which the same has been established
31 during the time an employee is in the service of another
32 employer, on the assumption such employee, for interest
33 purposes for pension credit, is continuing in the service
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1 covered by such retirement system.
2 (Source: P.A. 79-782.)
3 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
4 Sec. 20-123. Survivor's annuity. The provisions
5 governing a retirement annuity shall be applicable to a
6 survivor's annuity. Appropriate credits shall be established
7 for survivor's annuity purposes in those participating
8 systems which provide survivor's annuities, according to the
9 same conditions and subject to the same limitations and
10 restrictions herein prescribed for a retirement annuity. If
11 a participating system has no survivor's annuity benefit, or
12 if the survivor's annuity benefit under that system is
13 waived, pension credit established in that this system shall
14 not be considered in determining eligibility for or the
15 amount of the survivor's annuity which may be payable by any
16 other participating system.
17 For persons who participate in the self-managed plan
18 established under Section 15-158.2 or the portable benefit
19 package established under Section 15-136.4, pension credit
20 established under Article 15 may be considered in determining
21 eligibility for or the amount of the survivor's annuity that
22 is payable by any other participating system, but pension
23 credit established in any other system shall not result in
24 any right to a survivor's annuity under the Article 15
25 system.
26 (Source: P.A. 79-782.)
27 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
28 Sec. 20-124. Maximum benefits. In no event shall the
29 combined retirement or survivors annuities exceed the highest
30 annuity which would have been payable by any participating
31 system in which the employee has pension credits, if all of
32 his pension credits had been validated in that system.
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1 If the combined annuities should exceed the highest
2 maximum as determined in accordance with this Section, the
3 respective annuities shall be reduced proportionately
4 according to the ratio which the amount of each proportional
5 annuity bears to the aggregate of all such annuities.
6 In the case of a participant in the self-managed plan
7 established under Section 15-158.2 of this Code to whom the
8 provisions of this Article apply:
9 (i) For purposes of calculating the combined
10 retirement annuity and the proportionate reduction, if
11 any, in a retirement annuity other than one payable under
12 the self-managed plan, the amount of the Article 15
13 retirement annuity shall be deemed to be the highest
14 annuity to which the annuitant would have been entitled
15 if he or she had participated in the traditional benefit
16 package as defined in Section 15-103.1 rather than the
17 self-managed plan.
18 (ii) For purposes of calculating the combined
19 survivor's annuity and the proportionate reduction, if
20 any, in a survivor's annuity other than one payable under
21 the self-managed plan, the amount of the Article 15
22 survivor's annuity shall be deemed to be the highest
23 survivor's annuity to which the survivor would have been
24 entitled if the deceased employee had participated in the
25 traditional benefit package as defined in Section
26 15-103.1 rather than the self-managed plan.
27 (iii) Benefits payable under the self-managed plan
28 are not subject to proportionate reduction under this
29 Section.
30 (Source: P.A. 79-782.)
31 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
32 Sec. 20-125. Return to employment - suspension of
33 benefits. If a retired employee returns to employment which
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1 is covered by a system from which he is receiving a
2 proportional annuity under this Article, his proportional
3 annuity from all participating systems shall be suspended
4 during the period of re-employment, except that this
5 suspension does not apply to any distributions payable under
6 the self-managed plan established under Section 15-158.2 of
7 this Code.
8 The provisions of the Article under which such employment
9 would be covered shall govern the determination of whether
10 the employee has returned to employment, and if applicable
11 the exemption of temporary employment or employment not
12 exceeding a specified duration or frequency, for all
13 participating systems from which the retired employee is
14 receiving a proportional annuity under this Article,
15 notwithstanding any contrary provisions in the other Articles
16 governing such systems.
17 (Source: P.A. 85-1008.)
18 (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
19 Sec. 20-131. Retirement Annuities and Survivors
20 Annuities - Guarantees.
21 (a) This amendatory Act of 1975 (P.A. 79-782) shall not
22 be applied to deprive any person or his survivor of
23 eligibility for an annuity or to reduce the annuity or to
24 deprive such person of rights to which he or his survivor
25 would have been entitled under the provisions of Article 20
26 which were in effect immediately prior to September 5, 1975,
27 if he was an employee immediately prior to that date.
28 (b) If the combined retirement annuity benefits provided
29 under Public Act 79-782 are less than the combined retirement
30 annuity benefits that would have been payable under the
31 alternative formula of Section 20-122, the system under which
32 retirement would have occurred, as provided by Section
33 20-122, shall increase the proportional retirement annuity by
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1 an amount equal to the difference.
2 (c) Subsection (b) of this Section does not apply to the
3 retirement annuity benefits payable under the self-managed
4 plan established under Section 15-158.2 of this Code.
5 (Source: P.A. 86-820.)
6 (40 ILCS 5/15-158.1 rep.)
7 Section 15. The Illinois Pension Code is amended by
8 repealing Section 15-158.1.
9 Section 95. The State Mandates Act is amended by adding
10 Section 8.24 as follows:
11 (30 ILCS 805/8.24 new)
12 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
13 and 8 of this Act, no reimbursement by the State is required
14 for the implementation of any mandate created by this
15 amendatory Act of the 91st General Assembly.
16 Section 99. Effective date. This Act takes effect upon
17 becoming law.".