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91_HB4339
LRB9111503EGfgB
1 AN ACT to amend the Illinois Pension Code and the State
2 Mandates Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 13-213, 13-302, 13-303, 13-304, 13-306,
7 13-314, and 13-603 as follows:
8 (40 ILCS 5/13-213) (from Ch. 108 1/2, par. 13-213)
9 Sec. 13-213. "Contributions": Any moneys paid or payable
10 to into the Fund by the District or by any employee, or any
11 salary deduction hereunder.
12 (Source: P.A. 87-794.)
13 (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
14 Sec. 13-302. Computation of retirement annuity.
15 (a) Computation of annuity. An employee who withdraws
16 from service on or after July 1, 1989 and who has met the age
17 and service requirements and other conditions for eligibility
18 set forth in Section 13-301 of this Article is entitled to
19 receive a retirement annuity for life equal to 2.2% of
20 average final salary for each of the first 20 years of
21 service, and 2.4% of average final salary for each year of
22 service in excess of 20. The retirement annuity shall not
23 exceed 80% of average final salary.
24 (b) Early retirement discount. If an employee retires
25 prior to attainment of age 60 with less than 30 years of
26 service, the annuity computed above shall be reduced by 1/2
27 of 1% for each full month between the date the annuity begins
28 and attainment of age 60, or each full month by which the
29 employee's service is less than 30 years, whichever is less.
30 However, where the employee first enters service after June
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1 13, 1997 the effective date of this amendatory Act of 1997
2 and does not have at least 10 years of service exclusive of
3 credit under Article 20, the annuity computed above shall be
4 reduced by 1/2 of 1% for each full month between the date the
5 annuity begins and attainment of age 60.
6 (c) (Blank). Early retirement without discount. An
7 employee who has attained age 50 and retires after December
8 31, 1987 and before June 30, 1997, and who retires within 6
9 months of the last day for which retirement contributions
10 were required, may elect at the time of application to make a
11 one-time employee contribution to the Fund and thereby avoid
12 the early retirement reduction specified in subsection (b).
13 The exercise of the election shall also obligate the employer
14 to make a one-time nonrefundable contribution to the Fund.
15 The one-time employee and employer contributions shall be
16 a percentage of the retiring employee's last full-time annual
17 salary, calculated as the total amount paid during the last
18 260 work days immediately prior to the date of withdrawal, or
19 if not full-time then the full time equivalent, and based on
20 the employee's age and service at retirement. The employee
21 contribution rate shall be 7% multiplied by the lesser of the
22 following 2 numbers: (1) the number of years, or portion
23 thereof, that the employee is less than age 60; or (2) the
24 number of years, or portion thereof, that the employee's
25 service is less than 30 years. The employer contribution
26 shall be at the rate of 20% for each year, or portion
27 thereof, that the participant is less than age 60.
28 Upon receipt of the application, the Board shall
29 determine the corresponding employee and employer
30 contributions. The annuity shall not be payable under this
31 subsection until both the required contributions have been
32 received by the Fund. However, the date the contributions
33 are received shall not be considered in determining the
34 effective date of retirement.
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1 The number of employees who may retire under this Section
2 in any year may be limited at the option of the District to a
3 specified percentage of those eligible, not lower than 30%,
4 with the right to participate to be allocated among those
5 applying on the basis of seniority in the service of the
6 employer.
7 An employee who has terminated employment and
8 subsequently re-enters service shall not be entitled to early
9 retirement without discount under this subsection unless the
10 employee continues in service for at least 4 years after
11 re-entry.
12 (c-1) Early retirement without discount; retirement
13 after June 29, 1997. An employee who (i) has attained age 55
14 (age 50 if the employee first entered service before June 13,
15 1997) the effective date of this amendatory Act of 1997),
16 (ii) has at least 10 years of service exclusive of credit
17 under Article 20, (iii) retires after June 29, 1997 and
18 before January 1, 2008 2003, and (iv) retires within 6 months
19 of the last day for which retirement annuity contributions as
20 defined in Section 13-502 were required or within 6 months of
21 the last date for which disability payments were provided,
22 may elect at the time of application to make an a one-time
23 employee contribution to the Fund and thereby avoid the early
24 retirement reduction specified in subsection (b). The
25 exercise of the election shall also obligate the employer to
26 make a one-time nonrefundable contribution to the Fund upon
27 the employee's retirement.
28 The one-time employee and employer contributions shall be
29 a percentage of the retiring employee's highest full-time
30 annual salary, calculated as the total amount of salary
31 included in the highest 26 consecutive pay periods as used in
32 the average final salary calculation, and based on the
33 employee's age and service at retirement. The employee rate
34 shall be 7% multiplied by the lesser of the following 2
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1 numbers: (1) the number of years, or portion thereof, that
2 the employee is less than age 60; or (2) the number of years,
3 or portion thereof, that the employee's service is less than
4 30 years. The employer contribution shall be at the rate of
5 20% for each year, or portion thereof, that the participant
6 is less than age 60.
7 Upon receipt of the application, the Board may make a
8 preliminary determination of the required shall determine the
9 corresponding employee and employer contributions; the final
10 determination of these amounts shall be made as of the date
11 of retirement. An employee may elect to make the employee
12 contribution required under this subsection through
13 pre-retirement contributions, post-retirement contributions,
14 or a combination of both. The employee's specific payment
15 plan is subject to the Fund's approval and must be in
16 compliance with the Fund's established administrative
17 procedures and policies. The annuity shall not be payable
18 under this subsection until both the required contributions
19 have been received by the Fund, unless the employee has
20 elected to make post-retirement contributions. However, the
21 date the contributions are received shall not be considered
22 in determining the effective date of retirement.
23 Pre-retirement contributions shall accumulate without
24 interest and may commence no earlier than 36 months before
25 the employee is eligible to retire. Pre-retirement
26 contributions may be paid either directly to the Fund or on
27 the same basis and under the same conditions as contributions
28 required under Section 13-502. If, at the time of
29 retirement, the employee is ineligible or the option for
30 early retirement without discount has expired, the
31 contributions paid by the employee under this subsection
32 shall be refunded, without interest.
33 Post-retirement contributions made within 6 months after
34 retirement and before commencement of annuity payments are
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1 not subject to interest. Other post-retirement contributions
2 shall include interest at a rate equal to the Fund's
3 actuarial investment return assumption utilized in the most
4 recent Annual Actuarial Statement, computed from the date of
5 retirement to the date of payment, and must be fully paid
6 within 36 months after retirement. In the event that an
7 employee who elects to make post-retirement contributions
8 dies before making payment in full, the Fund may recover the
9 additional amounts due from any subsequent annuity payment,
10 survivor annuity, or refund.
11 The number of employees who may retire under this Section
12 in any year may be limited at the option of the District to a
13 specified percentage of those eligible, not lower than 30%,
14 with the right to participate to be allocated among those
15 applying on the basis of seniority in the service of the
16 employer.
17 An employee who has terminated employment and
18 subsequently re-enters service shall not be entitled to early
19 retirement without discount under this subsection unless the
20 employee continues in service for at least 4 years after
21 re-entry.
22 (d) Annual increase. Except for employees retiring and
23 receiving a term annuity, an employee who retires on or after
24 July 1, 1985 but before the effective date of this amendatory
25 Act of the 91st General Assembly shall, upon the first
26 payment date following the first anniversary of the date of
27 retirement, have the monthly annuity increased by 3% of the
28 amount of the monthly annuity fixed at the date of
29 retirement. Except for employees retiring and receiving a
30 term annuity, an employee who retires on or after the
31 effective date of this amendatory Act of the 91st General
32 Assembly shall, on the first day of the month in which the
33 first anniversary of the date of retirement occurs, have the
34 monthly annuity increased by 3% of the amount of the monthly
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1 annuity fixed at the date of retirement. The monthly annuity
2 shall be increased by an additional 3% on the same date each
3 year thereafter. Beginning January 1, 1993, all annual
4 increases payable under this subsection (or any predecessor
5 provision, regardless of the date of retirement) shall be
6 calculated at the rate of 3% of the monthly annuity payable
7 at the time of the increase, including any increases
8 previously granted under this Article.
9 Any employee who (i) retired before July 1, 1985 with at
10 least 10 years of creditable service, (ii) is receiving a
11 retirement annuity under this Article, other than a term
12 annuity, and (iii) has not received any annual increase under
13 this subsection, shall begin receiving the annual increases
14 provided under this subsection (d) beginning on the next
15 annuity payment date following the effective date of this
16 amendatory Act of 1997.
17 (e) Minimum retirement annuity. Beginning January 1,
18 1993, the minimum monthly retirement annuity shall be $500
19 for any annuitant having at least 10 years of service under
20 this Article, other than a term annuitant or an annuitant who
21 began receiving the annuity before attaining age 60. Any
22 such annuitant who is receiving a monthly annuity of less
23 than $500 shall have the annuity increased to $500 on that
24 date.
25 Beginning January 1, 1993, the minimum monthly retirement
26 annuity shall be $250 for any annuitant (other than a term or
27 reciprocal annuitant or an annuitant under subsection (d) of
28 Section 13-301) having less than 10 years of service under
29 this Article, and for any annuitant (other than a term
30 annuitant) having at least 10 years of service under this
31 Article who began receiving the annuity before attaining age
32 60. Any such annuitant who is receiving a monthly annuity of
33 less than $250 shall have the annuity increased to $250 on
34 that date.
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1 Notwithstanding any other provision of this subsection,
2 beginning on the first annuity payment date following the
3 effective date of this amendatory Act of the 91st General
4 Assembly, an employee who retired before August 23, 1989 with
5 at least 10 years of service under this Article but before
6 attaining age 60 (regardless of whether the retirement
7 annuity was subject to an early retirement discount) shall be
8 entitled to the same minimum monthly retirement annuity under
9 this subsection as an employee who retired with at least 10
10 years of service under this Article and after attaining age
11 60.
12 (Source: P.A. 90-12, eff. 6-13-97.)
13 (40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
14 Sec. 13-303. Reversionary annuity.
15 (a) An employee, prior to retirement on annuity, may
16 elect a lesser amount of annuity and provide, with the
17 actuarial value of the amount by which his annuity is
18 reduced, a reversionary annuity for a wife, husband, parents,
19 children, brothers or sisters. The election may be exercised
20 by filing a written designation with the Board prior to
21 retirement, and may be revoked by the employee at any time
22 before retirement. The death of the employee prior to
23 retirement shall automatically void the election.
24 (b) The death of the designated reversionary annuitant
25 prior to the employee's retirement shall automatically void
26 the election, but, if death of the designated reversionary
27 annuitant occurs after retirement, the reduced annuity being
28 paid to the retired employee annuitant shall remain unchanged
29 and no reversionary annuity shall be payable.
30 No reversionary annuity shall be paid if the employee
31 dies before the expiration of 730 days from the date the
32 written designation was filed with the board, even though the
33 employee retired and was receiving a reduced annuity.
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1 (c) An employee exercising this option shall not reduce
2 the annuity by more than 25%, nor elect to provide a
3 reversionary annuity of less than $100 per month. No such
4 option shall be permitted if the reversionary annuity for a
5 surviving spouse, when added to the surviving spouse's
6 annuity payable under this Article, exceeds 85% of the
7 reduced annuity payable to the employee.
8 (d) A reversionary annuity shall begin on the day
9 following the death of the annuitant, with the first payment
10 due and payable one month later, and shall continue monthly
11 thereafter until the death of the reversionary annuitant.
12 (e) The increases in annuity provided in Section
13 13-302(d) shall, as to an employee so electing a reduced
14 annuity, relate to the amount of reduced annuity, and such
15 lesser amount shall constitute the annuity on which such
16 increases shall be based.
17 (f) For determining the actuarial value under this
18 option of the employee's annuity and the reversionary
19 annuity, the Fund shall use an actuarial table recommended by
20 the Fund's actuarial consultant and approved by the Board of
21 Trustees the following actuarial table shall be used: "1951
22 Group Annuity Male Table of Mortality," set back 5 years for
23 employees, with 3% interest.
24 (Source: P.A. 87-794.)
25 (40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
26 Sec. 13-304. Optional plan of additional benefits and
27 contributions.
28 (a) While this plan is in effect, an eligible employee
29 may establish additional optional credit for additional
30 benefits by electing in writing at any time to make
31 additional optional contributions. The employee may
32 discontinue making the additional optional contributions at
33 any time by notifying the Fund in writing.
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1 Employees first entering service after June 30, 1997 are
2 not eligible to participate in the plan established under
3 this Section.
4 (b) Additional optional contributions for the additional
5 optional benefits shall be as follows:
6 (1) For contributions on current salary through
7 December 31, 2004, the service after the option is
8 elected, an additional contribution rate is of 3% of
9 salary. Beginning January 1, 2005, the additional
10 contribution rate is 3.1% of salary. Beginning January
11 1, 2006, the additional contribution rate is 3.2% of
12 salary. Beginning January 1, 2007, the additional
13 contribution rate is 3.3% of salary. These contributions
14 shall be paid contributed to the Fund on the same basis
15 and under the same conditions as contributions required
16 under Section 13-502.
17 (2) For contributions on past service through
18 December 31, 2004, the before the option is elected, an
19 additional contribution rate is of 3% of the salary for
20 the applicable period of service, plus interest at the
21 annual rate as shall from time to time be determined by
22 the Board, compounded annually from the date of service
23 to the date of payment. Beginning January 1, 2005, the
24 additional contribution rate is 3.1% of salary, plus
25 interest. Beginning January 1, 2006, the additional
26 contribution rate is 3.2% of salary, plus interest.
27 Beginning January 1, 2007, the additional contribution
28 rate is 3.3% of salary, plus interest. The interest
29 shall be calculated at the annual rate from time to time
30 determined by the Board, compounded annually from the
31 date of service to the date of payment. Contributions
32 for service before the option is elected may be made in
33 lump sum payments to the Fund or by contributing to the
34 Fund on the same basis and under the same conditions as
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1 contributions required under Section 13-502. All
2 payments for past service must be paid in full before
3 credit is given. A person who has withdrawn from service
4 may pay the additional contribution for past service at
5 any time within 30 days after withdrawal from service, so
6 long as payment is made in full before the retirement
7 annuity commences. No additional optional contributions
8 may be made for any period of service for which credit
9 has been previously forfeited by acceptance of a refund,
10 unless the refund is repaid in full with interest at the
11 rate specified in Section 13-603, from the date of refund
12 to the date of repayment. Nothing herein may be
13 construed to allow an additional optional contribution to
14 be made on the account of a deceased employee.
15 (c) Additional optional benefit shall accrue for all
16 periods of eligible service for which additional
17 contributions are paid in full. The additional benefit shall
18 consist of an additional 1% of average final salary for each
19 year of service for which optional contributions have been
20 paid, to be added to the employee's retirement annuity as
21 otherwise computed under this Article. The calculation of
22 these additional benefits shall be subject to the same terms
23 and conditions as are used in the calculation of the
24 retirement annuity under this Article. The additional
25 benefit shall be included in the calculation of the automatic
26 annual increase in annuity under Section 13-302(d), and in
27 the calculation of surviving spouse's annuity where
28 applicable. However, no additional benefits will be granted
29 which produce a total annuity greater than the applicable
30 maximum established for that type of annuity in this Article.
31 The total additional optional benefit that may be received
32 under this Section is 15% of average final salary.
33 (d) Refunds of additional optional contributions shall
34 be made on the same basis and under the same conditions as
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1 provided under Section 13-601.
2 (e) Optional contributions shall be accounted for in a
3 separate Optional Contribution Reserve.
4 (f) The tax levy computed under Section 13-503 shall be
5 based on employee contributions including the amount of
6 optional additional employee contributions.
7 (g) Service eligible under this Section may include only
8 service as an employee as defined in Section 13-204, and
9 subject to Section 13-401 and 13-402. No service granted
10 under Section 13-801 or 13-802 shall be eligible for optional
11 service credit. No optional service credit may be
12 established for any military service, or for any service
13 under any other Article of this Code. Optional service
14 credit may be established for any period of disability paid
15 from this Fund, if the employee makes additional optional
16 contributions for such period of disability.
17 (h) This plan of optional benefits and contributions
18 shall not apply to service prior to withdrawal rendered by
19 any former employee who re-enters service unless such
20 employee renders not less than 36 consecutive months of
21 additional service after the date of re-entry.
22 (i) (Blank). The effective date of this optional plan of
23 additional benefits and contributions shall be the date upon
24 which approval was received from the Internal Revenue
25 Service, July 31, 1987.
26 (j) This plan of additional benefits and contributions
27 shall expire December 31, 2007 2002. No additional
28 contributions may be made after that date, and no additional
29 benefits will accrue after that date.
30 (k) The maximum optional benefits for current and prior
31 service for which an employee can make contributions in a
32 single year shall be limited to 15 years of service in 1997
33 and before; 9 years of service in 1998; 6 years of service in
34 1999; and 3 years of service in any single calendar year
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1 2000, 2001, and 2002. No person may establish additional
2 optional benefits under this Section for more than 15 years
3 of service.
4 (Source: P.A. 90-12, eff. 6-13-97.)
5 (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
6 Sec. 13-306. Computation of surviving spouse's annuity.
7 (a) Computation of the annuity. The surviving spouse's
8 annuity shall be equal to 60% of the retirement annuity
9 earned and accrued to the credit of the deceased employee,
10 whether death occurs while in service or after withdrawal,
11 plus 1% for each year of total service of the employee to a
12 maximum of 85%; provided, however, that if the employee's
13 death arises out of and in the course of the employee's
14 service to the employer and is compensable under either the
15 Illinois Workers' Compensation Act or Illinois Workers'
16 Occupational Diseases Act, the surviving spouse's annuity is
17 payable regardless of the employee's length of service and
18 shall be not less than 50% of the employee's salary at the
19 date of death.
20 For any death in service the early retirement discount
21 required under Section 13-302(b) shall not be applied in
22 computing the retirement annuity upon which is based the
23 surviving spouse's annuity.
24 (b) Reciprocal service. For any employee or annuitant
25 who retires on or after July 1, 1985 and whose death occurs
26 after January 1, 1991, having at least 15 years of service
27 with the employer under this Article, and who was eligible at
28 the time of death or elected at the time of retirement to
29 have his or her retirement annuity calculated as provided in
30 Section 20-131 of this Code, the surviving spouse benefit
31 shall be calculated as of the date of the employee's death as
32 indicated in subsection (a) as a percentage of the employee's
33 total benefit as if all service had been with the employer.
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1 That benefit shall then be reduced by the amounts payable by
2 each of the reciprocal funds as of the date of death so that
3 the total surviving spouse benefit at that date will be equal
4 to the benefit which would have been payable had all service
5 been with the employer under this Article.
6 (c) Discount for age differential. The annuity for a
7 surviving spouse shall be discounted by 0.25% for each full
8 month that the spouse is younger than the employee as of the
9 date of withdrawal from service or death in service to a
10 maximum discount of 60% of the surviving spouse annuity as
11 calculated under subsections (a), (b), and (e) of this
12 Section. The discount shall be reduced by 10% for each full
13 year the marriage has been in continuous effect as of the
14 date of withdrawal or death in service. There shall be no
15 discount if the marriage has been in continuous effect for 10
16 full years or more at the time of withdrawal or death in
17 service.
18 (d) Annual increase. On the first day of each calendar
19 month in which there occurs an anniversary of the employee's
20 date of retirement or date of death, whichever occurred
21 first, the surviving spouse's annuity, other than a term
22 annuity under Section 13-307, shall be increased by an amount
23 equal to 3% of the amount of the annuity. Beginning January
24 1, 1993, all annual increases payable under this subsection
25 (or any predecessor provision of this Article) shall be
26 calculated at the rate of 3% of the monthly annuity payable
27 at the time of the increase, including any increases
28 previously granted under this Article.
29 Beginning January 1, 1993, surviving spouse annuitants
30 whose deceased spouse died, retired or withdrew from service
31 before August 23, 1989 with at least 10 years of service
32 under this Article shall be eligible for the annual increases
33 provided under this subsection.
34 (e) Minimum surviving spouse's annuity. Beginning
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1 January 1, 1993, the minimum monthly surviving spouse's
2 annuity shall be $500 for any annuitant whose deceased spouse
3 had at least 10 years of service under this Article, other
4 than a surviving spouse who is a term annuitant or whose
5 deceased spouse began receiving a retirement annuity under
6 this Article before attainment of age 60. Any such surviving
7 spouse annuitant who is receiving a monthly annuity of less
8 than $500 shall have the annuity increased to $500 on that
9 date.
10 Beginning January 1, 1993, the minimum monthly surviving
11 spouse's annuity shall be $250 for any annuitant (other than
12 a term or reciprocal annuitant or an annuitant survivor under
13 subsection (d) of Section 13-301) whose deceased spouse had
14 less than 10 years of service under this Article, and for any
15 annuitant (other than a term annuitant) whose deceased spouse
16 had at least 10 years of service under this Article and began
17 receiving a retirement annuity under this Article before
18 attainment of age 60. Any such surviving spouse annuitant
19 who is receiving a monthly annuity of less than $250 shall
20 have the annuity increased to $250 on that date.
21 Notwithstanding any other provision of this subsection,
22 beginning on the first annuity payment date following the
23 effective date of this amendatory Act of the 91st General
24 Assembly, an annuitant whose deceased spouse retired before
25 August 23, 1989 with at least 10 years of service under this
26 Article but before attaining age 60 (regardless of whether
27 the retirement annuity was subject to an early retirement
28 discount) shall be entitled to the same minimum monthly
29 surviving spouse's annuity under this subsection as an
30 annuitant whose deceased spouse retired with at least 10
31 years of service under this Article and after attaining age
32 60.
33 The minimum annuity provided under this subsection (e)
34 shall be subject to the age discount provided under
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1 subsection (c) of this Section.
2 (Source: P.A. 90-12, eff. 6-13-97.)
3 (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
4 Sec. 13-314. Alternative provisions for Water
5 Reclamation District commissioners.
6 (a) Transfer of credits. Any Water Reclamation District
7 commissioner elected by vote of the people and who has
8 elected to participate in this Fund may transfer to this Fund
9 credits and creditable service accumulated under any other
10 pension fund or retirement system established under Articles
11 2 through 18 of this Code, upon payment to the Fund of (1)
12 the amount by which the employer and employee contributions
13 that would have been required if he had participated in this
14 Fund during the period for which credit is being transferred,
15 plus interest, exceeds the amounts actually transferred from
16 such other fund or system to this Fund, plus (2) interest
17 thereon at 6% per year compounded annually from the date of
18 transfer to the date of payment.
19 (b) Alternative annuity. Any participant commissioner
20 may elect to establish alternative credits for an alternative
21 annuity by electing in writing to make additional optional
22 contributions in accordance with this Section and procedures
23 established by the Board. Such commissioner may discontinue
24 making the additional optional contributions by notifying the
25 fund in writing in accordance with this Section and
26 procedures established by the Board.
27 Additional optional contributions for the alternative
28 annuity shall be as follows:
29 (1) For service after the option is elected, an
30 additional contribution of 3% of salary shall be
31 contributed to the Fund on the same basis and under the
32 same conditions as contributions required under Section
33 13-502.
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1 (2) For contributions on past service before the
2 option is elected, the additional contribution shall be
3 3% of the salary for the applicable period of service,
4 plus interest at the annual rate from time to time as
5 determined by the Board, compounded annually from the
6 date of service to the date of payment. Contributions
7 for service before the option is elected may be made in a
8 lump sum payment to the Fund or by contributing to the
9 Fund on the same basis and under the same conditions as
10 contributions required under Section 13-502. All
11 payments for past service must be paid in full before
12 credit is given. No additional optional contributions
13 may be made for any period of service for which credit
14 has been previously forfeited by acceptance of a refund,
15 unless the refund is repaid in full with interest at the
16 rate specified in Section 13-603, from the date of refund
17 to the date of repayment.
18 In lieu of the retirement annuity otherwise payable under
19 this Article, any commissioner who has elected to participate
20 in the Fund and make additional optional contributions in
21 accordance with this Section, has attained age 55, and has at
22 least 6 years of service credit, may elect to have the
23 retirement annuity computed as follows: 3% of the
24 participant's average final salary as a commissioner for each
25 of the first 8 years of service credit, plus 4% of such
26 salary for each of the next 4 years of service credit, plus
27 5% of such salary for each year of service credit in excess
28 of 12 years, subject to a maximum of 80% of such salary. To
29 the extent such commissioner has made additional optional
30 contributions with respect to only a portion of years of
31 service credit, the retirement annuity will first be
32 determined in accordance with this Section to the extent such
33 additional optional contributions were made, and then in
34 accordance with the remaining Sections of this Article to the
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1 extent of years of service credit with respect to which
2 additional optional contributions were not made. The change
3 in minimum retirement age (from 60 to 55) made by this
4 amendatory Act of 1993 applies to persons who begin receiving
5 a retirement annuity under this Section on or after the
6 effective date of this amendatory Act, without regard to
7 whether they are in service on or after that date.
8 (c) Disability benefits. In lieu of the disability
9 benefits otherwise payable under this Article, any
10 commissioner who (1) has elected to participate in the Fund,
11 and (2) has become permanently disabled and as a consequence
12 is unable to perform the duties of office, and (3) was making
13 optional contributions in accordance with this Section at the
14 time the disability was incurred, may elect to receive a
15 disability annuity calculated in accordance with the formula
16 in subsection (b). For the purposes of this subsection, such
17 commissioner shall be considered permanently disabled only
18 if: (i) disability occurs while in service as a commissioner
19 and is of such a nature as to prevent the reasonable
20 performance of the duties of office at the time; and (ii) the
21 Board has received a written certification by at least 2
22 licensed physicians appointed by it stating that such
23 commissioner is disabled and that the disability is likely to
24 be permanent.
25 (d) Alternative survivor's benefits. In lieu of the
26 survivor's benefits otherwise payable under this Article, the
27 spouse or eligible child of any deceased commissioner who (1)
28 had elected to participate in the Fund, and (2) was either
29 making additional optional contributions on the date of
30 death, or was receiving an annuity calculated under this
31 Section at the time of death, may elect to receive an annuity
32 beginning on the date of the commissioner's death, provided
33 that the spouse and commissioner must have been married on
34 the date of the last termination of a service as commissioner
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1 and for a continuous period of at least one year immediately
2 preceding death.
3 The annuity shall be payable beginning on the date of the
4 commissioner's death if the spouse is then age 50 or over, or
5 beginning at age 50 if the age of the spouse is less than 50
6 years. If a minor unmarried child or children of the
7 commissioner, under age 18, also survive, and the child or
8 children are under the care of the eligible spouse, the
9 annuity shall begin as of the date of death of the
10 commissioner without regard to the spouse's age.
11 The annuity to a spouse shall be 66 2/3% of the amount of
12 retirement annuity earned by the commissioner on the date of
13 death, subject to a minimum payment of 10% of salary,
14 provided that if an eligible spouse, regardless of age, has
15 in his or her care at the date of death of the commissioner
16 any unmarried child or children of the commissioner under age
17 18, the minimum annuity shall be 30% of the commissioner's
18 salary, plus 10% of salary on account of each minor child of
19 the commissioner, subject to a combined total payment on
20 account of a spouse and minor children not to exceed 50% of
21 the deceased commissioner's salary. In the event there shall
22 be no spouse of the commissioner surviving, or should a
23 spouse die while eligible minor children still survive the
24 commissioner, each such child shall be entitled to an annuity
25 equal to 20% of salary of the commissioner subject to a
26 combined total payment on account of all such children not to
27 exceed 50% of salary of the commissioner. The salary to be
28 used in the calculation of these benefits shall be the same
29 as that prescribed for determining a retirement annuity as
30 provided in subsection (b) of this Section.
31 Upon the death of a commissioner occurring after
32 termination of a service or while in receipt of a retirement
33 annuity, the combined total payment to a spouse and minor
34 children, or to minor children alone if no eligible spouse
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1 survives, shall be limited to 75% of the amount of retirement
2 annuity earned by the commissioner.
3 Adopted children shall have status as natural children of
4 the commissioner only if the proceedings for adoption were
5 commenced at least one year prior to the date of the
6 commissioner's death.
7 Marriage of a child or attainment of age 18, whichever
8 first occurs, shall render the child ineligible for further
9 consideration in the payment of annuity to a spouse or in the
10 increase in the amount thereof. Upon attainment of
11 ineligibility of the youngest minor child of the
12 commissioner, the annuity shall immediately revert to the
13 amount payable upon death of a commissioner leaving no minor
14 children surviving. If the spouse is under age 50 at such
15 time, the annuity as revised shall be deferred until such age
16 is attained.
17 (e) Refunds. Refunds of additional optional
18 contributions shall be made on the same basis and under the
19 same conditions as provided under Section 13-601. Interest
20 shall be credited on the same basis and under the same
21 conditions as for other contributions.
22 Optional contributions shall be accounted for in a
23 separate Commission's Optional Contribution Reserve.
24 Optional contributions under this Section shall be included
25 in the amount of employee contributions used to compute the
26 tax levy under Section 13-503.
27 (f) Effective date. The effective date of this plan of
28 optional alternative benefits and contributions shall be the
29 date upon which approval was received from the U.S. Internal
30 Revenue Service. The plan of optional alternative benefits
31 and contributions shall not be available to any former
32 employee receiving an annuity from the Fund on the effective
33 date, unless said former employee re-enters service and
34 renders at least 3 years of additional service after the date
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1 of re-entry as a commissioner.
2 (Source: P.A. 90-12, eff. 6-13-97.)
3 (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
4 Sec. 13-603. Restoration of rights. If an employee who
5 has received a refund subsequently re-enters the service and
6 renders one year of contributing service from the date of
7 such re-entry, the employee shall be entitled to have
8 restored all accumulation and service credits previously
9 forfeited by making a repayment of the refund, including
10 interest of 8% per annum from the date of the refund to the
11 date of repayment at a rate equal to the higher of 8% per
12 annum or the actuarial investment return assumption used in
13 the Fund's most recent Annual Actuarial Statement. Repayment
14 may be made either directly to the Fund or in a manner
15 similar to that provided for the contributions required under
16 Section 13-502. The repayment must be made in a lump sum.
17 The service credits represented thereby, or any part thereof,
18 shall not become effective unless the full amount due has
19 been paid by the employee, including interest. If the
20 employee fails to make a full repayment, any partial amounts
21 paid by the employee shall be refunded without interest if
22 the employee dies in service or withdraws.
23 (Source: P.A. 87-794.)
24 Section 90. The State Mandates Act is amended by adding
25 Section 8.24 as follows:
26 (30 ILCS 805/8.24 new)
27 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
28 and 8 of this Act, no reimbursement by the State is required
29 for the implementation of any mandate created by this
30 amendatory Act of the 91st General Assembly.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.